Yeti IPO

tonyled

http://www.mystatesman.com/news/business/austin-based-yeti-files-initial-paperwork-for-ipo/nrrBh/

Austin-based Yeti, the fast-growing premium cooler and drinkware company with a fervent following, has filed preliminary documents for an initial public offering of stock.

The securities filing does not list how many shares Yeti Holdings, the parent of the Yeti Coolers LLC, plans to sell or how much it hopes to raise. It also gave no timetable for the public offering.

The company said it would use the proceeds of the public offering to pay down existing debt, with the rest going toward general business operations. It will trade under the ticker symbol YETI on the New York Stock Exchange, according to securities filings.

The company was founded in Austin in 2006 by brothers Roy Seiders and Ryan Seiders and quickly became a top brand in the premium cooler category. In recent years, it has expanded into premium drinkware, soft coolers and branded apparel. The company’s revenue has surged dramatically since its founding, jumping to $468.9 million in 2015, according to securities filings.

In 2006, Yeti’s first retail client was McBride’s outdoor specialty store. Today Yeti’s products are sold at major chains including REI, Cabela’s and ****’s Sporting Goods, as well as smaller, independent retailers.

Yeti has built a loyal fan base among sporting enthusiasts such as hunters and anglers who have embraced the brand for its range of products, including its heavily insulated, nearly indestructible coolers. And those fans willing to pay for it: Yeti’s smaller coolers can start at $250 and can reach more than $1,000 depending on size and style.

In 2012, Yeti sold majority ownership to New York private equity firm Cortec Group for an undisclosed amount. The deal allowed the Seiders brothers to cash out some of their equity stake in the company. The Seiders remain shareholders in the company, according to securities filings.

Yeti’s sales have skyrocketed in recent years. According to the filing, the company reported revenue of $468.9 million for 2015, more than triple the $147.7 million it reported the prior year.

Through 2015, most of the Yeti’s sales ran through a network of about 6,000 retailers, including 15 percent of its revenue from Academy Sports and Outdoors stores, according to the securities filing. In recent years, the company has limited its direct sales on Yeti.com in order to satisfy demand at those retailers, but the company said it hopes to expand its direct-to-consumer sales and expand into more international markets going forward.

Perhaps even more attractive for potential investors, the company has posted profits in each of the past three years, earning $74.2 million in 2015, an increase from $14.2 million the year before.

However, Yeti did report a sharp loss for the first quarter of 2016, thanks largely to a $104.4 million expense related to the early vesting of stock options for four employees, including the company founders. While the company reported sales of $191.3 million in the first quarter — more than triple the $52.2 million during the same period last year — it reported a net loss of $38.2 million, according to the filing. During the first quarter of 2015, Yeti posted a profit of $4.6 million.

In May, the company paid a special dividend of $451.3 million to its existing stockholders, according to securities filings.

A year ago, Matt Reintjes joined the company as CEO from Vista Outdoor Inc., where he ran that company’s $900 million outdoor products division.

Yeti in March announced plans for a new 175,000-square-foot headquarters in Southwest Austin. The campus at Lantana Ridge off Southwest Parkway, will include two 87,500-square-foot buildings with amenities including an archery range, sports courts, barbecue pits, a rooftop terrace and a jogging trail.

The company said the building would accommodate its current workforce with room for future headcount growth. The new headquarters is expected to be finished by summer 2017, officials said.

The company said it also has signed leases in Austin for an “innovation center” and a “brand experience center.”

As of the end of March the company had 312 employees, according to securities filings.

fishlessman

yeti needs to raise their prices

Legume

fishlessman said:

yeti needs to raise their prices

Or just make the coolers smaller.

bud812

I wonder if they have a bucket.

fishlessman

Legume said:

fishlessman said:

yeti needs to raise their prices

Or just make the coolers smaller.

they already make them smaller

BigWings

I hear the RTIC initial stock price will be less than half!

Photo Egg

"The company said it would use the proceeds of the public offering to pay down existing debt"...at their prices, they have debt? Give me a break...

tonyled

debt is good in some business cases.  especially right now while rates are so low

HeavyG

Photo Egg said:

"The company said it would use the proceeds of the public offering to pay down existing debt"...at their prices, they have debt? Give me a break...

They sure seem to spend a lot on marketing. 

Acn

Legume said:

fishlessman said:

yeti needs to raise their prices

Or just make the coolers smaller.

@legume wins the thread crossover award.

I'm also amused that the shorter version of Richard's Sporting Goods got asterisks.

nolaegghead

fishlessman said:

Legume said:

fishlessman said:

yeti needs to raise their prices

Or just make the coolers smaller.

they already make them smaller

cssmd27

I would definitely go public now, if I were them!  Their market is in the process of being completely eroded by all the MUCH cheaper, but just as good competition.  Right now, the biggest thing they are selling is their great name. When that gets eaten away, the value will be a lot less.  Sell now and let public shareholders take that risk instead of the founders.

Caveat emptor to anyone wanting to buy the stock on the open market.

Lit

cssmd27 said:

I would definitely go public now, if I were them!  Their market is in the process of being completely eroded by all the MUCH cheaper, but just as good competition.  Right now, the biggest thing they are selling is their great name. When that gets eaten away, the value will be a lot less.  Sell now and let public shareholders take that risk instead of the founders.

Caveat emptor to anyone wanting to buy the stock on the open market.

Yeah I was thinking the same thing. This market is really flooded. I saw a brand new company I had never seen before with wheels in Costco the other day called Kytex or something like that. It wasn't any cheaper than Yeti is was like $375 but everyone is selling these coolers now.

YEMTrey

Sounds like a short opportunity for the both of you!

DieselkW

This is what bothers me about the nanny in charge of making sure we don't swear:

"sold at major chains including REI, Cabela’s and ****’s Sporting Goods,"

Really, does anyone wonder why D.ick's Sporting Goods needs to be a series of asterisks?

You can prick your finger, but you can't finger your *****

SmokeyPitt

DieselkW said:

This is what bothers me about the nanny in charge of making sure we don't swear:

"sold at major chains including REI, Cabela’s and ****’s Sporting Goods,"

Really, does anyone wonder why D.ick's Sporting Goods needs to be a series of asterisks?

You can prick your finger, but you can't finger your *****

**** Van Dyke would have hated it here.  

<edit> I thought I might get 2 there.

DoubleEgger

Maybe Scottie will write a song about the suckers that buy Yeti stock. 

blasting

Not sure I'd be buying an IPO of a company where the purpose is to pay down debt, as the owners are cashing out.  Low price competition, as well as a big spending mentality would cause me to take a pass on this one.  

Toxarch

312 employees in an 87,500 sq ft building (280+ sq ft per person), $104.4 million paid for 4 people's stock options, $451.3 million to its existing stockholders in a dividend, and $38.2 million loss in the first quarter. I guess we now know what debts they will be paying off.

YukonRon

Thinking they are trying to squeeze the last bit of blood, as much as they can, from both investors and customers, before bankruptcy. Fleecing the flock.

Austin Egghead

Yep, Yeti moving into our hood. We have been watching the building going up.  It is alot nicer than the orginal location.  
At the SpaceCity egg fest cooks were given Orca SS Chaser and it holds ice just as good as the Yeti.
i still think the Pelican 45 was the best ice keeper we have owned.  It downfall for us was it is heavy when empty and really to heavy when full.  #1 son very happy with the Pelican

hondabbq

This is every entrepreneurs dream.

DoubleEgger

hondabbq said:

This is every entrepreneurs dream.

Absolutely.

McStew

hondabbq said:

This is every entrepreneurs dream.


Absolutely!  My wife and I just had our first offer from a  substantially larger brand to buy us out and we turned it down.  It defiantly is a thrill if you can dream big.    

BuckeyeBob

What is interesting to me is that we are on a website for a product that is definitely the highest price in the market.  There are a number of competitors that have come in with allegedly the same product and at a lower price.  But the BGE keeps chugging along and hasn't seen their sales or market eroded and they haven't gone into bankruptcy.  The market is flooded with Visions and Akorns and Primos and Kamado Joes but BGE is still here.  I look at both of them as similar, top of the line products and there will usually be a longer term demand for that sector of the market.

As for the stock to the original owners and employees, that's what happens when companies grow and go public.  You start with the original guys putting a lot of their own money on the line.  They then bring in Private Equity for additional capital to manage their tremendous growth.  Eventually they go public and the original, founding team gets to cash out, or at least reduce their investment.  I say good for these guys. They had a vision and went for it.  They have had competition for a couple of years now and other than the 1st quarter that had a bunch of extraordinary financial items, they are still growing sales and making a lot of money. 

SkinnyV

BuckeyeBob said:

What is interesting to me is that we are on a website for a product that is definitely the highest price in the market.  

Shhhh.....you will stir the #RTIC tards into a frenzy.....watch out for the nest...

nolaegghead

HeavyG

BuckeyeBob said:

What is interesting to me is that we are on a website for a product that is definitely the highest price in the market... 

Uhhh...have you heard of Komodo Kamados?

BuckeyeBob

HeavyG said:

BuckeyeBob said:

What is interesting to me is that we are on a website for a product that is definitely the highest price in the market... 

Uhhh...have you heard of Komodo Kamados?

Okay, second highest. But definitely upper end of the brands that are easily available. 

MattBTI

Austin Egghead said:

Yep, Yeti moving into our hood. We have been watching the building going up.  It is alot nicer than the orginal location.  
At the SpaceCity egg fest cooks were given Orca SS Chaser and it holds ice just as good as the Yeti.
i still think the Pelican 45 was the best ice keeper we have owned.  It downfall for us was it is heavy when empty and really to heavy when full.  #1 son very happy with the Pelican

I've got 2. Wouldn't ever trade them. Pelican has a no questions asked warranty and free shipping. 

XC242

BuckeyeBob said:

What is interesting to me is that we are on a website for a product that is definitely the highest price in the market.  There are a number of competitors that have come in with allegedly the same product and at a lower price.  But the BGE keeps chugging along and hasn't seen their sales or market eroded and they haven't gone into bankruptcy.  The market is flooded with Visions and Akorns and Primos and Kamado Joes but BGE is still here.  I look at both of them as similar, top of the line products and there will usually be a longer term demand for that sector of the market.

I bought my Egg 4 years ago. At the time there were 2 dealers within 25 miles of me, now there are a dozen (including our local hometown hardware store). In that same area KJ has 2 and Primo has 3...