CARTHAGE, Mo., July 31,
2023 /PRNewswire/ --
- 2Q sales of $1.22 billion, an 8%
decrease vs 2Q22
- 2Q EPS of $.40, a decrease of
$.30 vs 2Q22; 2Q
adjusted1 EPS of $.38, down $.32 vs
2Q22
- 2Q cash from operations of $111
million, a $21 million
increase vs 2Q22
- 2023 guidance lowered: sales of $4.75–$4.95 billion; EPS of $1.50–$1.70, adjusted1 EPS of
$1.45–$1.65
President and CEO Mitch Dolloff
commented, "Second quarter earnings were in line with expectations
on lower than anticipated sales. We saw sustained strength in the
Specialized Products segment results although weak consumer demand
continued to affect results in the Bedding Products and Furniture,
Flooring & Textile Products segments.
"We are lowering our full year guidance to reflect continued
volatility in the macroeconomic environment and low visibility in
several of our end markets. Our previous guidance anticipated a
modest improvement in residential end markets in the second half of
the year. We are encouraged by the continued recovery in our
industrial businesses but have yet to see an upward trajectory in
residential end markets.
"We are maintaining our emphasis on improving areas within our
control and proactively addressing the effects of the macroeconomic
impacts on our business. Our employees are doing an excellent
job engaging with our customers on new product opportunities and
driving operational efficiency and strong cash management. Our
focused execution and enduring fundamentals position Leggett for
long-term success."
SECOND QUARTER RESULTS
Second quarter sales were $1.22
billion, an 8% decrease versus second quarter last year.
- Organic sales2 were down 11%
-
- Volume was down 6%, primarily from demand softness in
residential end markets, partially offset by growth in our
Automotive, Aerospace, and Hydraulic Cylinders businesses
- Raw material-related selling price decreases reduced sales
5%
- Currency impact was flat
- Acquisitions increased sales 3%
Second quarter EBIT was $96
million, down $47 million or
33% from second quarter 2022 EBIT, and adjusted1 EBIT
was $92 million, a $51 million decrease.
- EBIT and adjusted1 EBIT decreased primarily from
lower volume in residential end markets and lower metal margin in
our Steel Rod business
-
- 2Q 2023 adjustment is for a $4
million gain from net insurance proceeds from April tornado
damage at a shared Home Furniture and Bedding manufacturing
facility
- EBIT margin was 7.8% and adjusted1 EBIT margin was
7.5%, down from 10.7% in the second quarter of 2022
Second quarter EPS was $.40, a $.30
decrease versus second quarter 2022 EPS. Second quarter
adjusted1 EPS was $.38,
down $.32 versus second quarter 2022
EPS. EPS decreased primarily from volume declines, lower metal
margin, higher tax rate ($.02/share),
and higher interest expense ($.01/share).
DEBT, CASH FLOW, AND LIQUIDITY
- Net Debt1 was 3.1x trailing 12-month adjusted
EBITDA1
- Debt at June 30
-
- Total debt of $2.0 billion,
including $224 million of commercial
paper outstanding
- No significant maturities until November
2024
- Operating cash flow was $111
million in the second quarter, an increase of $21 million versus second quarter 2022,
reflecting working capital improvements partially offset by lower
earnings
- Capital expenditures were $30
million
- Total liquidity was $632
million at June 30
-
- $272 million cash on hand
- $360 million in capacity
remaining under revolving credit facility
DIVIDEND
- In May, Leggett & Platt's Board of Directors increased the
second quarter dividend to $.46 per
share, two cents higher than last
year's second quarter dividend
- At an annual indicated dividend of $1.84 per share, the yield is 6.2% based upon
Friday's closing stock price of $29.54 per share
STOCK REPURCHASES
- Net issuances of .1 million shares through employee benefit
plans
- Shares outstanding at the end of the second quarter were 133.2
million
2023 GUIDANCE
- Full year 2023 sales and EPS guidance lowered
- Sales are expected to be $4.75–$4.95 billion, -4% to -8% versus 2022
-
- Volume at the midpoint expected to be down mid-single
digits:
-
- Down mid to high single digits in Bedding Products Segment
- Up high single digits in Specialized Products Segment
- Down mid to high single digits in Furniture, Flooring &
Textile Products Segment
- Raw material-related price decreases and currency impact
combined expected to reduce sales mid-single digits
- Acquisitions completed in 2022 expected to add ~3% to
sales
- EPS is expected to be $1.50–$1.70
-
- Decrease is primarily from lower expected volume in residential
end markets
- Includes anticipated gain from net insurance proceeds from
tornado damage of ~$0.05 per
share
- Adjusted EPS is expected to be $1.45–$1.65
- Based on this framework, EBIT margin should be 7.5%–7.9%;
adjusted EBIT margin should be 7.3%–7.7%
- Additional expectations:
-
- Depreciation and amortization $200
million
- Net interest expense $85
million
- Effective tax rate 24%
- Fully diluted shares 137 million
- Operating cash flow $450–$500 million
- Capital expenditures $100–$130 million
- Dividends $240 million
- Minimal acquisitions and share repurchases
- Prior Guidance:
-
- Sales: $4.8–$5.2 billion
- EPS: $1.50–$1.90
SEGMENT RESULTS – Second Quarter 2023 (versus 2Q
2022)
Bedding Products –
- Trade sales decreased 18%
-
- Volume decreased 9%, primarily due to demand softness in
bedding markets and lower trade demand in our Steel Rod and Drawn
Wire businesses partially offset by growth in Specialty Foam
- Raw material-related selling price decreases reduced sales
9%
- EBIT decreased $46 million,
primarily from lower volume and lower metal margin
Specialized Products –
- Trade sales increased 23%
-
- Volume increased 13% from growth across the segment
- Raw material-related selling price increases added 1%
- Currency impact decreased sales 2%
- Hydraulic Cylinders acquisition completed in August 2022 added 11%
- EBIT increased $12 million,
primarily from higher volume
Furniture, Flooring & Textile Products –
- Trade sales decreased 14%
-
- Volume decreased 14%, with declines across the segment
- Raw material-related selling price decreases reduced sales
2%
- Textiles acquisitions added 2%
- EBIT decreased $12 million,
primarily from lower volume partially offset by a $3 million gain from net insurance proceeds from
tornado damage at a Home Furniture manufacturing facility
SLIDES AND CONFERENCE CALL
A set of slides containing summary financial information is
available from the Investor Relations section of Leggett's website
at www.leggett.com. Management will host a conference call at
7:30 a.m. Central
(8:30 a.m. Eastern) on Tuesday, August 1. The webcast can be accessed
from Leggett's website. The dial-in number is (201) 689-8341; there
is no passcode.
FOR MORE INFORMATION: Visit Leggett's website at
www.leggett.com.
COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a
diversified manufacturer that designs and produces a broad variety
of engineered components and products that can be found in many
homes and automobiles. The 140-year-old Company is comprised of 15
business units, approximately 20,000 employees, and 135
manufacturing facilities located in 18 countries.
Leggett & Platt is the leading U.S.-based manufacturer of:
a) bedding components; b) automotive seat support and lumbar
systems; c) specialty bedding foams and private label finished
mattresses; d) components for home furniture and work furniture; e)
flooring underlayment; f) adjustable beds; and g) bedding industry
machinery.
FORWARD-LOOKING STATEMENTS: This press release contains
"forward-looking statements," including, but not limited to the
amount of the Company's forecasted 2023 full-year volume; volume in
residential end markets; insurance proceeds from tornado damage;
acquisition sales growth; sales, EPS, adjusted EPS; capital
expenditures; depreciation and amortization; net interest expense;
fully diluted shares; operating cash flow; EBIT margin; adjusted
EBIT margin; effective tax rate; amount of dividends; raw material
related price decreases; currency impact; volume in each of the
Company's segments; and minimal acquisitions and share repurchases.
Such forward-looking statements are expressly qualified by the
cautionary statements described in this provision and reflect only
the beliefs of Leggett at the time the statement is made. Because
all forward-looking statements deal with the future, they are
subject to risks, uncertainties and developments which might cause
actual events or results to differ materially from those envisioned
or reflected in any forward-looking statement. Moreover, we do not
have, and do not undertake, any duty to update or revise any
forward-looking statement to reflect events or circumstances after
the date on which the statement was made. Some of these risks and
uncertainties include: the adverse impact on our sales, earnings,
our liquidity impacting our ability to pay our obligations as they
come due, margins, cash flow, costs, and financial condition caused
by: the Russian invasion of Ukraine; global inflationary and deflationary
impacts; macro-economic impacts; the demand for our products and
our customers' products; growth rates in the industries in which we
participate and opportunities in those industries; our
manufacturing facilities' ability to remain fully operational and
obtain necessary raw materials and parts, maintain appropriate
labor levels and ship finished products to customers; the
impairment of goodwill and long-lived assets; restructuring-related
costs; our ability to access the commercial paper market or borrow
under our revolving credit facility, including compliance with
restrictive covenants that may limit our operational flexibility
and our ability to timely pay our debt; adverse impact from supply
chain shortages and disruptions; our ability to manage working
capital; increases or decreases in our capital needs, which may
vary depending on acquisition or divestiture activity; our ability
to collect trade receivables; market conditions; price and product
competition from foreign and domestic competitors; cost and
availability of raw materials due to supply chain disruptions or
otherwise; labor and energy costs; cash generation sufficient to
pay the dividend; cash repatriation from foreign accounts; our
ability to pass along raw material cost increases through increased
selling prices; conflict between China and Taiwan; our ability to maintain profit margins
if customers change the quantity or mix of our components in their
finished products; our ability to maintain and grow the
profitability of acquired companies; political risks; changing tax
rates; increased trade costs; risks related to operating in foreign
countries; cybersecurity incidents; customer bankruptcies, losses
and insolvencies; disruption to our steel rod mill and other
operations and supply chain because of severe weather-related
events, natural disaster, fire, explosion, terrorism, pandemic,
governmental action or labor strikes; ability to develop innovative
products; bank failures; foreign currency fluctuation; the amount
of share repurchases; the imposition or continuation of
anti-dumping duties on innersprings, steel wire rod and mattresses;
data privacy; climate change compliance costs and regulatory,
market, technological and reputational impacts; our ESG
obligations; litigation risks; and risk factors in the
"Forward-Looking Statements" and "Risk Factors" sections in
Leggett's most recent Form 10-K and Form 10-Q filed with the
SEC.
CONTACT: Investor Relations,
(417) 358-8131 or invest@leggett.com
Susan R. McCoy, Senior Vice
President, Investor Relations
Cassie J. Branscum, Senior Director,
Investor Relations
Kolina A. Talbert, Manager, Investor
Relations
1 Please refer to attached tables for
Non-GAAP Reconciliations
2 Trade sales excluding acquisitions/divestitures in the
last 12 months
LEGGETT &
PLATT
|
|
Page 5 of 7
|
|
|
|
|
|
July 31,
2023
|
RESULTS OF
OPERATIONS
|
|
SECOND
QUARTER
|
|
YEAR TO DATE
|
(In millions, except
per share data)
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Trade
sales
|
|
$
1,221.2
|
|
$
1,334.2
|
|
(8) %
|
|
$
2,434.8
|
|
$
2,656.5
|
|
(8) %
|
Cost of goods
sold
|
|
1,000.1
|
|
1,065.8
|
|
|
|
1,995.1
|
|
2,120.8
|
|
|
Gross
profit
|
|
221.1
|
|
268.4
|
|
(18) %
|
|
439.7
|
|
535.7
|
|
(18) %
|
Selling &
administrative expenses
|
|
119.2
|
|
105.4
|
|
13 %
|
|
235.2
|
|
217.1
|
|
8 %
|
Amortization
|
|
16.8
|
|
16.4
|
|
|
|
33.7
|
|
33.4
|
|
|
Other (income) expense,
net
|
|
(10.6)
|
|
3.6
|
|
|
|
(14.2)
|
|
4.6
|
|
|
Earnings
before interest and taxes
|
|
95.7
|
|
143.0
|
|
(33) %
|
|
185.0
|
`
|
280.6
|
|
(34) %
|
Net interest
expense
|
|
22.0
|
|
20.0
|
|
|
|
43.0
|
|
39.5
|
|
|
Earnings
before income taxes
|
|
73.7
|
|
123.0
|
|
|
|
142.0
|
|
241.1
|
|
|
Income
taxes
|
|
19.5
|
|
27.8
|
|
|
|
34.3
|
|
55.5
|
|
|
Net
earnings
|
|
54.2
|
|
95.2
|
|
|
|
107.7
|
|
185.6
|
|
|
Less net income from
noncontrolling interest
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Net
Earnings Attributable to L&P
|
|
$ 54.2
|
|
$ 95.2
|
|
(43) %
|
|
$ 107.7
|
|
$ 185.6
|
|
(42) %
|
Earnings per diluted
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
|
$ 0.40
|
|
$ 0.70
|
|
(43) %
|
|
$ 0.79
|
|
$ 1.36
|
|
(42) %
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
133.2
|
|
132.6
|
|
0.5 %
|
|
133.2
|
|
132.6
|
|
0.5 %
|
Basic
(average for period)
|
|
136.2
|
|
136.3
|
|
|
|
136.1
|
|
136.4
|
|
|
Diluted
(average for period)
|
|
136.6
|
|
136.7
|
|
(0.1) %
|
|
136.4
|
|
136.8
|
|
(0.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW
|
|
SECOND
QUARTER
|
|
YEAR TO DATE
|
(In
millions)
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Net earnings
|
|
$ 54.2
|
|
$ 95.2
|
|
|
|
$ 107.7
|
|
$ 185.6
|
|
|
Depreciation and
amortization
|
|
44.7
|
|
44.5
|
|
|
|
90.1
|
|
90.2
|
|
|
Working capital
decrease (increase)
|
|
11.0
|
|
(55.7)
|
|
|
|
(7.8)
|
|
(170.1)
|
|
|
Impairments
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Other operating
activities
|
|
0.7
|
|
5.8
|
|
|
|
17.3
|
|
23.1
|
|
|
Net Cash
from Operating Activities
|
|
$ 110.6
|
|
$ 89.8
|
|
23 %
|
|
$ 207.3
|
|
$ 128.8
|
|
61 %
|
Additions to
PP&E
|
|
(30.5)
|
|
(22.1)
|
|
|
|
(68.2)
|
|
(40.8)
|
|
|
Purchase of companies,
net of cash
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Proceeds from disposals
of assets and businesses
|
|
4.8
|
|
0.3
|
|
|
|
5.3
|
|
2.7
|
|
|
Dividends
paid
|
|
(58.6)
|
|
(56.1)
|
|
|
|
(116.9)
|
|
(112.1)
|
|
|
Repurchase of common
stock, net
|
|
(0.1)
|
|
(35.3)
|
|
|
|
(5.3)
|
|
(56.9)
|
|
|
Additions (payments) to
debt, net
|
|
(90.2)
|
|
(18.5)
|
|
|
|
(61.7)
|
|
2.4
|
|
|
Other
|
|
(8.1)
|
|
(15.5)
|
|
|
|
(4.6)
|
|
(15.9)
|
|
|
Increase
(Decrease) in Cash & Equivalents
|
|
$ (72.1)
|
|
$ (57.4)
|
|
|
|
$ (44.1)
|
|
$ (91.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
Jun 30,
|
|
Dec 31,
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$ 272.4
|
|
$ 316.5
|
|
|
|
|
|
|
|
|
Receivables
|
|
702.7
|
|
675.0
|
|
|
|
|
|
|
|
|
Inventories
|
|
857.8
|
|
907.5
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
72.9
|
|
59.0
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
1,905.8
|
|
1,958.0
|
|
(3) %
|
|
|
|
|
|
|
Net fixed
assets
|
|
789.2
|
|
772.4
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
212.0
|
|
195.0
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,477.1
|
|
1,474.4
|
|
|
|
|
|
|
|
|
Intangible assets and
deferred costs, both at net
|
|
760.2
|
|
786.3
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
5,144.3
|
|
$
5,186.1
|
|
(1) %
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$ 507.4
|
|
$ 518.4
|
|
|
|
|
|
|
|
|
Current debt
maturities
|
|
8.2
|
|
9.4
|
|
|
|
|
|
|
|
|
Current operating lease
liabilities
|
|
56.3
|
|
49.5
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
|
383.7
|
|
390.8
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
955.6
|
|
968.1
|
|
(1) %
|
|
|
|
|
|
|
Long-term
debt
|
|
2,016.4
|
|
2,074.2
|
|
(3) %
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
167.2
|
|
153.6
|
|
|
|
|
|
|
|
|
Deferred taxes and
other liabilities
|
|
336.5
|
|
348.8
|
|
|
|
|
|
|
|
|
Equity
|
|
1,668.6
|
|
1,641.4
|
|
2 %
|
|
|
|
|
|
|
Total
Capitalization
|
|
4,188.7
|
|
4,218.0
|
|
(1) %
|
|
|
|
|
|
|
TOTAL
LIABILITIES & EQUITY
|
|
$
5,144.3
|
|
$
5,186.1
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEGGETT &
PLATT
|
|
Page 6 of 7
|
|
|
|
|
|
July 31,
2023
|
SEGMENT RESULTS
1
|
|
SECOND
QUARTER
|
|
YEAR TO DATE
|
(In
millions)
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 504.4
|
|
$ 612.5
|
|
(18) %
|
|
$
1,032.9
|
|
$
1,251.9
|
|
(17) %
|
EBIT
|
|
23.0
|
|
69.1
|
|
(67) %
|
|
56.3
|
|
145.3
|
|
(61) %
|
EBIT margin
|
|
4.6 %
|
|
11.3 %
|
|
-670 bps
|
2
|
5.5 %
|
|
11.6 %
|
|
-610 bps
|
Gain from net insurance
proceeds from tornado damage
|
|
(0.6)
|
|
—
|
|
|
|
(0.6)
|
|
—
|
|
|
Adjusted EBIT
3
|
|
22.4
|
|
69.1
|
|
(68) %
|
|
55.7
|
|
145.3
|
|
(62) %
|
Adjusted EBIT
margin3
|
|
4.4 %
|
|
11.3 %
|
|
-690 bps
|
|
5.4 %
|
|
11.6 %
|
|
-620 bps
|
Depreciation and
amortization
|
|
25.5
|
|
26.2
|
|
|
|
51.1
|
|
52.4
|
|
|
Adjusted
EBITDA
|
|
47.9
|
|
95.3
|
|
(50) %
|
|
106.8
|
|
197.7
|
|
(46) %
|
Adjusted EBITDA
margin
|
|
9.5 %
|
|
15.6 %
|
|
-610 bps
|
|
10.3 %
|
|
15.8 %
|
|
-550 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 321.2
|
|
$ 260.1
|
|
23 %
|
|
$ 641.9
|
|
$ 524.2
|
|
22 %
|
EBIT
|
|
33.1
|
|
21.4
|
|
55 %
|
|
61.8
|
|
41.7
|
|
48 %
|
EBIT margin
|
|
10.3 %
|
|
8.2 %
|
|
210 bps
|
|
9.6 %
|
|
8.0 %
|
|
160 bps
|
Depreciation and
amortization
|
|
10.3
|
|
9.9
|
|
|
|
21.0
|
|
20.7
|
|
|
EBITDA
|
|
43.4
|
|
31.3
|
|
39 %
|
|
82.8
|
|
62.4
|
|
33 %
|
EBITDA
margin
|
|
13.5 %
|
|
12.0 %
|
|
150 bps
|
|
12.9 %
|
|
11.9 %
|
|
100 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture, Flooring
& Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 395.6
|
|
$ 461.6
|
|
(14) %
|
|
$ 760.0
|
|
$ 880.4
|
|
(14) %
|
EBIT
|
|
38.9
|
|
51.3
|
|
(24) %
|
|
67.2
|
|
94.0
|
|
(29) %
|
EBIT margin
|
|
9.8 %
|
|
11.1 %
|
|
-130 bps
|
|
8.8 %
|
|
10.7 %
|
|
-190 bps
|
Gain from net insurance
proceeds from tornado damage
|
|
(3.0)
|
|
—
|
|
|
|
(3.0)
|
|
—
|
|
|
Adjusted EBIT
3
|
|
35.9
|
|
51.3
|
|
(30) %
|
|
64.2
|
|
94.0
|
|
(32) %
|
Adjusted EBIT
Margin3
|
|
9.1 %
|
|
11.1 %
|
|
-200 bps
|
|
8.4 %
|
|
10.7 %
|
|
-230 bps
|
Depreciation and
amortization
|
|
5.7
|
|
5.9
|
|
|
|
11.5
|
|
11.8
|
|
|
Adjusted
EBITDA
|
|
41.6
|
|
57.2
|
|
(27) %
|
|
75.7
|
|
105.8
|
|
(28) %
|
Adjusted EBITDA
margin
|
|
10.5 %
|
|
12.4 %
|
|
-190 bps
|
|
10.0 %
|
|
12.0 %
|
|
-200 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$
1,221.2
|
|
$
1,334.2
|
|
(8) %
|
|
$
2,434.8
|
|
$
2,656.5
|
|
(8) %
|
EBIT -
segments
|
|
95.0
|
|
141.8
|
|
(33) %
|
|
185.3
|
|
281.0
|
|
(34) %
|
Intersegment
eliminations and other
|
|
0.7
|
|
1.2
|
|
|
|
(0.3)
|
|
(0.4)
|
|
|
EBIT
|
|
95.7
|
|
143.0
|
|
(33) %
|
|
185.0
|
|
280.6
|
|
(34) %
|
EBIT margin
|
|
7.8 %
|
|
10.7 %
|
|
-290 bps
|
|
7.6 %
|
|
10.6 %
|
|
-300 bps
|
Gain from net insurance
proceeds from tornado damage3
|
|
(3.6)
|
|
—
|
|
|
|
(3.6)
|
|
—
|
|
|
Adjusted EBIT
3
|
|
92.1
|
|
143.0
|
|
(36) %
|
|
181.4
|
|
280.6
|
|
(35) %
|
Adjusted EBIT
margin3
|
|
7.5 %
|
|
10.7 %
|
|
-320 bps
|
|
7.5 %
|
|
10.6 %
|
|
-310 bps
|
Depreciation and
amortization - segments
|
|
41.5
|
|
42.0
|
|
|
|
83.6
|
|
84.9
|
|
|
Depreciation and
amortization - unallocated 4
|
|
3.2
|
|
2.5
|
|
|
|
6.5
|
|
5.3
|
|
|
Adjusted
EBITDA
|
|
$ 136.8
|
|
$ 187.5
|
|
(27) %
|
|
$ 271.5
|
|
$ 370.8
|
|
(27) %
|
Adjusted EBITDA
margin
|
|
11.2 %
|
|
14.1 %
|
|
-290 bps
|
|
11.2 %
|
|
14.0 %
|
|
-280 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX
QUARTERS
|
|
2022
|
|
2023
|
Selected Figures (In
Millions)
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Trade sales
|
|
1,322.3
|
|
1,334.2
|
|
1,294.4
|
|
1,195.8
|
|
1,213.6
|
|
1,221.2
|
Sales growth (vs. prior
year)
|
|
15 %
|
|
5 %
|
|
(2) %
|
|
(10) %
|
|
(8) %
|
|
(8) %
|
Volume growth (same
locations vs. prior year)
|
|
(4) %
|
|
(6) %
|
|
(8) %
|
|
(12) %
|
|
(7) %
|
|
(6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
3
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
92.1
|
Cash from
operations
|
|
39.0
|
|
89.8
|
|
65.5
|
|
247.1
|
|
96.7
|
|
110.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 3
|
|
764.6
|
|
760.3
|
|
726.8
|
|
664.8
|
|
616.2
|
|
565.5
|
(Long-term debt +
current maturities - cash and equivalents) / adj. EBITDA
3,5
|
|
2.32
|
|
2.39
|
|
2.63
|
|
2.66
|
|
2.88
|
|
3.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (Vs.
Prior Year) 6
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Bedding
Products
|
|
16 %
|
|
— %
|
|
(12) %
|
|
(19) %
|
|
(17) %
|
|
(18) %
|
Specialized
Products
|
|
2 %
|
|
8 %
|
|
19 %
|
|
5 %
|
|
8 %
|
|
12 %
|
Furniture, Flooring
& Textile Products
|
|
17 %
|
|
10 %
|
|
— %
|
|
(13) %
|
|
(15) %
|
|
(16) %
|
Overall
|
|
13 %
|
|
5 %
|
|
(3) %
|
|
(12) %
|
|
(11) %
|
|
(11) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Segment and overall company margins
calculated on net trade sales.
|
2
bps = basis points; a unit of measure
equal to 1/100th of 1%.
|
3
Refer to next page for non-GAAP
reconciliations.
|
4
Consists primarily of depreciation of
non-operating assets.
|
5
EBITDA based on trailing twelve
months.
|
|
|
|
|
|
|
|
|
|
|
|
|
6
Trade sales excluding sales attributable
to acquisitions and divestitures consummated in the last 12
months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEGGETT &
PLATT
|
|
Page 7 of 7
|
|
|
|
|
|
July 31,
2023
|
RECONCILIATION OF
REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments 7
|
|
2022
|
|
2023
|
(In millions, except
per share data)
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Gain from net insurance
proceeds from tornado damage
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
Non-GAAP Adjustments
(Pretax) 8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
Income tax
impact
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.9
|
Non-GAAP Adjustments
(After Tax)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
136.9
|
|
136.7
|
|
136.1
|
|
136.1
|
|
136.3
|
|
136.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Impact of Non-GAAP
Adjustments
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT, EBITDA,
Margin, and EPS 7
|
|
2022
|
|
2023
|
(In millions, except
per share data)
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Trade sales
|
|
1,322.3
|
|
1,334.2
|
|
1,294.4
|
|
1,195.8
|
|
1,213.6
|
|
1,221.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
95.7
|
Non-GAAP adjustments
(pretax)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
Adjusted
EBIT
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
92.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin
|
|
10.4 %
|
|
10.7 %
|
|
8.7 %
|
|
7.6 %
|
|
7.4 %
|
|
7.8 %
|
Adjusted EBIT
Margin
|
|
10.4 %
|
|
10.7 %
|
|
8.7 %
|
|
7.6 %
|
|
7.4 %
|
|
7.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
95.7
|
Depreciation and
amortization
|
|
45.7
|
|
44.5
|
|
44.1
|
|
45.5
|
|
45.4
|
|
44.7
|
EBITDA
|
|
183.3
|
|
187.5
|
|
157.3
|
|
136.7
|
|
134.7
|
|
140.4
|
Non-GAAP adjustments
(pretax)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
Adjusted
EBITDA
|
|
183.3
|
|
187.5
|
|
157.3
|
|
136.7
|
|
134.7
|
|
136.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
13.9 %
|
|
14.1 %
|
|
12.2 %
|
|
11.4 %
|
|
11.1 %
|
|
11.5 %
|
Adjusted EBITDA
Margin
|
|
13.9 %
|
|
14.1 %
|
|
12.2 %
|
|
11.4 %
|
|
11.1 %
|
|
11.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
0.66
|
|
0.70
|
|
0.52
|
|
0.39
|
|
0.39
|
|
0.40
|
EPS impact of non-GAAP
adjustments
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.02)
|
Adjusted EPS
|
|
0.66
|
|
0.70
|
|
0.52
|
|
0.39
|
|
0.39
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA 9
|
|
2022
|
|
2023
|
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Total debt
|
|
2,104.4
|
|
2,090.8
|
|
2,141.0
|
|
2,083.6
|
|
2,117.8
|
|
2,024.6
|
Less: cash and
equivalents
|
|
(327.3)
|
|
(269.9)
|
|
(226.2)
|
|
(316.5)
|
|
(344.5)
|
|
(272.4)
|
Net debt
|
|
1,777.1
|
|
1,820.9
|
|
1,914.8
|
|
1,767.1
|
|
1,773.3
|
|
1,752.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
764.6
|
|
760.3
|
|
726.8
|
|
664.8
|
|
616.2
|
|
565.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / 12-month
Adjusted EBITDA
|
|
2.32
|
|
2.39
|
|
2.63
|
|
2.66
|
|
2.88
|
|
3.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Management and investors use these
measures as supplemental information to assess operational
performance.
|
8
The ($3.6) 2023 non-GAAP adjustment is included in the
Other (income) expense, net
line on
the income statement.
|
|
|
9
Management and investors use this ratio
as supplemental information to assess ability to pay off
debt. These ratios are calculated differently than the
Company's credit
facility covenant ratio.
|
10
Calculations impacted by
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
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SOURCE Leggett & Platt