CARTHAGE, Mo., Oct. 30,
2023 /PRNewswire/ --
- 3Q sales of $1.18 billion, a 9%
decrease vs 3Q22
- 3Q EPS of $.39, a decrease of
$.13 vs 3Q22; 3Q
adjusted1 EPS of $.36, down $.16 vs
3Q22
- 3Q cash from operations of $144
million, a $78 million
increase vs 3Q22
- 2023 guidance lowered: sales of $4.7–$4.75 billion; EPS of $1.45–$1.55, adjusted1 EPS of
$1.35–$1.45
President and CEO Mitch Dolloff
commented, "I would like to thank our employees for their
tremendous efforts in what was another challenging quarter. Ongoing
weak demand impacted our Bedding Products and Furniture, Flooring,
& Textile Products segments but was partially offset by
continued demand strength in our Specialized Products segment.
"We are lowering our full year guidance to reflect continued
volatility in the macroeconomic environment, continued low consumer
demand in residential end markets, and the modest impact we have
experienced so far from the UAW strike on several North American
automakers. The UAW strike had minimal impact on our Automotive
business in the third quarter. So far in the fourth quarter, the
sales impact has been approximately $5
million, which may not be indicative of future impacts. Due
to uncertainties around the duration and severity of the strike,
our updated full year guidance does not include impacts beyond what
we have experienced so far.
"We are focused on anticipating and adapting to market changes,
improving operating efficiency, driving strong cash management, and
engaging with our customers on new product opportunities. We are
evaluating opportunities across our businesses, including further
integration of our specialty foam and innerspring operations, that
are expected to support improved profitability, a strong balance
sheet, and continued shareholder returns."
THIRD QUARTER RESULTS
Third quarter sales were $1.18
billion, a 9% decrease versus third quarter last year.
- Organic sales2 were down 11%
- Volume was down 6%, primarily from demand softness in domestic
residential end markets, partially offset by growth in our
Aerospace and Automotive businesses
- Raw material-related selling price decreases, net of currency
benefit, reduced sales 5%
- Acquisitions increased sales 2%
Third quarter EBIT was $91
million, down $22 million or
19% from third quarter 2022 EBIT, and adjusted1 EBIT was
$86 million, a $27 million decrease.
- EBIT and adjusted1 EBIT decreased primarily from
lower metal margin in our Steel Rod business and lower volume in
residential end markets. These decreases were partially offset by
lower incentive compensation and lower bad debt expense.
- 3Q 2023 adjustment is for a $5
million gain from a real estate sale within our Bedding
segment
- EBIT margin was 7.8% and adjusted1 EBIT margin was
7.3%, down from 8.7% in the third quarter of 2022
Third quarter EPS was $.39, a $.13
decrease versus third quarter 2022 EPS. Third quarter
adjusted1 EPS was $.36,
down $.16 versus third quarter 2022
EPS.
DEBT, CASH FLOW, AND LIQUIDITY
- Net Debt1 was 3.15x trailing 12-month
adjusted EBITDA1
- Debt at September 30
- Total debt of $2.0 billion,
including $171 million of commercial
paper outstanding
- No significant maturities until November
2024
- Operating cash flow was $144
million in the third quarter, an increase of $78 million versus third quarter 2022, reflecting
working capital improvements partially offset by lower
earnings
- Capital expenditures were $22
million
- Total liquidity was $595
million at September 30
- $274 million cash on hand
- $321 million in capacity
remaining under revolving credit facility
DIVIDEND
- In August, Leggett & Platt's Board of Directors declared a
$.46 per share third quarter
dividend, two cents higher than last
year's third quarter dividend
STOCK REPURCHASES
- Net issuances of .1 million shares through employee benefit
plans
- Shares outstanding at the end of the third quarter were 133.3
million
2023 GUIDANCE
- Full year 2023 sales and EPS guidance lowered. Guidance does
not include impacts from the UAW strike beyond what we have
experienced so far due to uncertainties around the duration and
severity of the strike.
- Sales are expected to be $4.7–$4.75 billion, -8% to -9% versus 2022
- Volume at the midpoint expected to be down mid-single digits:
- Down high single digits in Bedding Products Segment
- Up high single digits in Specialized Products Segment
- Down low double 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 ~2% to
sales
- EPS is expected to be $1.45–$1.55
- Decrease is primarily from lower expected volume in our
Furniture, Flooring & Textile Products and Bedding Products
segments
- Includes anticipated gain from net insurance proceeds from
tornado damage of ~$.07 per share and
gain on the sale of real estate of $.03 per share
- Adjusted EPS is expected to be $1.35–$1.45
- Based on this framework, EBIT margin should be 7.4%–7.7%;
adjusted EBIT margin should be 7.0%–7.3%
- Additional expectations:
- Depreciation and amortization $185
million
- Net interest expense $85
million
- Effective tax rate 24%
- Fully diluted shares 137 million
- Operating cash flow $450–$500 million
- Capital expenditures $110–$130 million
- Dividends $240 million
- Minimal acquisitions and share repurchases
- Implied 4Q Guidance:
- Sales: $1.09–$1.14 billion
- EPS: $.27–$.37
- Adjusted EPS: $.22–$.32
- Prior Full Year Guidance:
- Sales: $4.75–$4.95 billion
- EPS: $1.50–$1.70
- Adjusted EPS: $1.45–$1.65
SEGMENT RESULTS – Third Quarter 2023 (versus 3Q
2022)
Bedding Products –
- Trade sales decreased 17%
- Volume decreased 8%, primarily due to demand softness in
domestic markets
- Raw material-related selling price decreases reduced sales
10%
- Currency benefit increased sales 1%
- EBIT decreased $13 million,
primarily from lower metal margin and lower volume, partially
offset by a $5 million gain from a
real estate sale
Specialized Products –
- Trade sales increased 10%
- Volume increased 3% from growth in Aerospace and
Automotive
- Raw material-related selling price decreases were offset by
currency benefit
- Hydraulic Cylinders acquisition completed in August 2022 added 7%
- EBIT was flat on higher sales primarily offset by consolidation
costs at an Automotive facility and the lag associated with passing
through raw material-related pricing changes in Hydraulic
Cylinders
Furniture, Flooring & Textile Products –
- Trade sales decreased 11%
- Volume decreased 11%, with declines across the segment
- Raw material-related selling price decreases, net of currency
benefit, reduced sales 3%
- Textiles acquisitions added 3%
- EBIT decreased $9 million,
primarily from lower volume
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, October 31. 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;
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; minimal acquisitions and share repurchases;
gain from net insurance proceeds from tornado damage; gains from
sale of real estate. 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 United Auto Workers strike;
actions arising from our evaluation of opportunities across our
businesses; 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; 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
|
|
|
|
|
|
October 30,
2023
|
|
RESULTS OF
OPERATIONS
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
|
(In millions, except
per share data)
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
Trade
sales
|
|
$
1,175.4
|
|
$
1,294.4
|
|
(9) %
|
|
$
3,610.2
|
|
$
3,950.9
|
|
(9) %
|
|
Cost of goods
sold
|
|
961.1
|
|
1,063.9
|
|
|
|
2,956.2
|
|
3,184.7
|
|
|
|
Gross
profit
|
|
214.3
|
|
230.5
|
|
(7) %
|
|
654.0
|
|
766.2
|
|
(15) %
|
|
Selling &
administrative expenses
|
|
109.1
|
|
100.4
|
|
9 %
|
|
344.3
|
|
317.5
|
|
8 %
|
|
Amortization
|
|
17.9
|
|
16.6
|
|
|
|
51.6
|
|
50.0
|
|
|
|
Other (income) expense,
net
|
|
(4.1)
|
|
0.3
|
|
|
|
(18.3)
|
|
4.9
|
|
|
|
Earnings
before interest and taxes
|
|
91.4
|
|
113.2
|
|
(19) %
|
|
276.4
|
`
|
393.8
|
|
(30) %
|
|
Net interest
expense
|
|
20.5
|
|
19.7
|
|
|
|
63.5
|
|
59.2
|
|
|
|
Earnings
before income taxes
|
|
70.9
|
|
93.5
|
|
|
|
212.9
|
|
334.6
|
|
|
|
Income
taxes
|
|
18.0
|
|
22.0
|
|
|
|
52.3
|
|
77.5
|
|
|
|
Net
earnings
|
|
52.9
|
|
71.5
|
|
|
|
160.6
|
|
257.1
|
|
|
|
Less net income from
noncontrolling interest
|
|
(0.1)
|
|
(0.1)
|
|
|
|
(0.1)
|
|
(0.1)
|
|
|
|
Net
Earnings Attributable to L&P
|
|
$
52.8
|
|
$
71.4
|
|
(26) %
|
|
$ 160.5
|
|
$ 257.0
|
|
(38) %
|
|
Earnings per diluted
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
|
$ 0.39
|
|
$ 0.52
|
|
(25) %
|
|
$ 1.18
|
|
$ 1.88
|
|
(37) %
|
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
133.3
|
|
132.6
|
|
0.5 %
|
|
133.3
|
|
132.6
|
|
0.5 %
|
|
Basic
(average for period)
|
|
136.4
|
|
135.7
|
|
|
|
136.2
|
|
136.2
|
|
|
|
Diluted
(average for period)
|
|
136.8
|
|
136.1
|
|
0.5 %
|
|
136.5
|
|
136.6
|
|
(0.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
|
(In
millions)
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
Net earnings
|
|
$ 52.9
|
|
$ 71.5
|
|
|
|
$ 160.6
|
|
$ 257.1
|
|
|
|
Depreciation and
amortization
|
|
45.0
|
|
44.1
|
|
|
|
135.1
|
|
134.3
|
|
|
|
Working capital
decrease (increase)
|
|
60.1
|
|
(44.8)
|
|
|
|
52.3
|
|
(214.9)
|
|
|
|
Impairments
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
Other operating
activities
|
|
(14.2)
|
|
(5.3)
|
|
|
|
3.1
|
|
17.8
|
|
|
|
Net
Cash from Operating Activities
|
|
$ 143.8
|
|
$
65.5
|
|
120 %
|
|
$ 351.1
|
|
$ 194.3
|
|
81 %
|
|
Additions to
PP&E
|
|
(22.2)
|
|
(24.7)
|
|
|
|
(90.4)
|
|
(65.5)
|
|
|
|
Purchase of companies,
net of cash
|
|
—
|
|
(62.5)
|
|
|
|
—
|
|
(62.5)
|
|
|
|
Proceeds from disposals
of assets and businesses
|
|
7.9
|
|
0.3
|
|
|
|
13.2
|
|
3.0
|
|
|
|
Dividends
paid
|
|
(61.2)
|
|
(58.7)
|
|
|
|
(178.1)
|
|
(170.8)
|
|
|
|
Repurchase of common
stock, net
|
|
(0.2)
|
|
(3.4)
|
|
|
|
(5.5)
|
|
(60.3)
|
|
|
|
Additions (payments) to
debt, net
|
|
(60.0)
|
|
50.5
|
|
|
|
(121.7)
|
|
52.9
|
|
|
|
Other
|
|
(6.6)
|
|
(10.7)
|
|
|
|
(11.2)
|
|
(26.6)
|
|
|
|
Increase (Decrease) in Cash & Equivalents
|
|
$
1.5
|
|
$ (43.7)
|
|
|
|
$ (42.6)
|
|
$
(135.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
Sep
30,
|
|
Dec
31,
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$ 273.9
|
|
$ 316.5
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
711.3
|
|
675.0
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
834.9
|
|
907.5
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
66.1
|
|
59.0
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
1,886.2
|
|
1,958.0
|
|
(4) %
|
|
|
|
|
|
|
|
Net fixed
assets
|
|
776.7
|
|
772.4
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
200.1
|
|
195.0
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,475.4
|
|
1,474.4
|
|
|
|
|
|
|
|
|
|
Intangible assets and
deferred costs, both at net
|
|
739.2
|
|
786.3
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
5,077.6
|
|
$
5,186.1
|
|
(2) %
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$ 534.1
|
|
$ 518.4
|
|
|
|
|
|
|
|
|
|
Current debt
maturities
|
|
8.9
|
|
9.4
|
|
|
|
|
|
|
|
|
|
Current operating lease
liabilities
|
|
55.9
|
|
49.5
|
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
|
410.2
|
|
390.8
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
1,009.1
|
|
968.1
|
|
4 %
|
|
|
|
|
|
|
|
Long-term
debt
|
|
1,963.0
|
|
2,074.2
|
|
(5) %
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
156.5
|
|
153.6
|
|
|
|
|
|
|
|
|
|
Deferred taxes and
other liabilities
|
|
313.1
|
|
348.8
|
|
|
|
|
|
|
|
|
|
Equity
|
|
1,635.9
|
|
1,641.4
|
|
— %
|
|
|
|
|
|
|
|
Total
Capitalization
|
|
4,068.5
|
|
4,218.0
|
|
(4) %
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES & EQUITY
|
|
$
5,077.6
|
|
$
5,186.1
|
|
(2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEGGETT &
PLATT
|
|
Page 6 of 7
|
|
|
|
|
|
October 30,
2023
|
|
SEGMENT
RESULTS 1
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
|
(In
millions)
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 483.3
|
|
$ 582.0
|
|
(17) %
|
|
$
1,516.2
|
|
$
1,833.9
|
|
(17) %
|
|
EBIT
|
|
31.1
|
|
43.9
|
|
(29) %
|
|
87.4
|
|
189.2
|
|
(54) %
|
|
EBIT
margin
|
|
6.4 %
|
|
7.5 %
|
|
-110
bps
|
2
|
5.8 %
|
|
10.3 %
|
|
-450
bps
|
2
|
Gain on sale of real
estate
|
|
(5.4)
|
|
—
|
|
|
|
(5.4)
|
|
—
|
|
|
|
Gain from net insurance
proceeds from tornado damage
|
|
—
|
|
—
|
|
|
|
(0.6)
|
|
—
|
|
|
|
Adjusted EBIT
3
|
|
25.7
|
|
43.9
|
|
(41) %
|
|
81.4
|
|
189.2
|
|
(57) %
|
|
Adjusted EBIT
margin3
|
|
5.3 %
|
|
7.5 %
|
|
-220
bps
|
|
5.4 %
|
|
10.3 %
|
|
-490
bps
|
|
Depreciation and
amortization
|
|
26.2
|
|
25.7
|
|
|
|
77.3
|
|
78.1
|
|
|
|
Adjusted
EBITDA
|
|
51.9
|
|
69.6
|
|
(25) %
|
|
158.7
|
|
267.3
|
|
(41) %
|
|
Adjusted EBITDA
margin
|
|
10.7 %
|
|
12.0 %
|
|
-130
bps
|
|
10.5 %
|
|
14.6 %
|
|
-410
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 319.4
|
|
$ 291.3
|
|
10 %
|
|
$ 961.3
|
|
$ 815.5
|
|
18 %
|
|
EBIT
|
|
31.2
|
|
31.3
|
|
— %
|
|
93.0
|
|
73.0
|
|
27 %
|
|
EBIT
margin
|
|
9.8 %
|
|
10.7 %
|
|
-90
bps
|
|
9.7 %
|
|
9.0 %
|
|
70
bps
|
|
Depreciation and
amortization
|
|
10.7
|
|
9.7
|
|
|
|
31.7
|
|
30.4
|
|
|
|
EBITDA
|
|
41.9
|
|
41.0
|
|
2 %
|
|
124.7
|
|
103.4
|
|
21 %
|
|
EBITDA
margin
|
|
13.1 %
|
|
14.1 %
|
|
-100
bps
|
|
13.0 %
|
|
12.7 %
|
|
30
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture, Flooring
& Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 372.7
|
|
$ 421.1
|
|
(11) %
|
|
$
1,132.7
|
|
$
1,301.5
|
|
(13) %
|
|
EBIT
|
|
29.5
|
|
38.3
|
|
(23) %
|
|
96.7
|
|
132.3
|
|
(27) %
|
|
EBIT
margin
|
|
7.9 %
|
|
9.1 %
|
|
-120
bps
|
|
8.5 %
|
|
10.2 %
|
|
-170
bps
|
|
Gain from net insurance
proceeds from tornado damage
|
|
—
|
|
—
|
|
|
|
(3.0)
|
|
—
|
|
|
|
Adjusted EBIT
3
|
|
29.5
|
|
38.3
|
|
(23) %
|
|
93.7
|
|
132.3
|
|
(29) %
|
|
Adjusted EBIT
Margin3
|
|
7.9 %
|
|
9.1 %
|
|
-120
bps
|
|
8.3 %
|
|
10.2 %
|
|
-190
bps
|
|
Depreciation and
amortization
|
|
5.5
|
|
5.7
|
|
|
|
17.0
|
|
17.5
|
|
|
|
Adjusted
EBITDA
|
|
35.0
|
|
44.0
|
|
(20) %
|
|
110.7
|
|
149.8
|
|
(26) %
|
|
Adjusted EBITDA
margin
|
|
9.4 %
|
|
10.4 %
|
|
-100
bps
|
|
9.8 %
|
|
11.5 %
|
|
-170
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$
1,175.4
|
|
$
1,294.4
|
|
(9) %
|
|
$
3,610.2
|
|
$
3,950.9
|
|
(9) %
|
|
EBIT -
segments
|
|
91.8
|
|
113.5
|
|
(19) %
|
|
277.1
|
|
394.5
|
|
(30) %
|
|
Intersegment
eliminations and other
|
|
(0.4)
|
|
(0.3)
|
|
|
|
(0.7)
|
|
(0.7)
|
|
|
|
EBIT
|
|
91.4
|
|
113.2
|
|
(19) %
|
|
276.4
|
|
393.8
|
|
(30) %
|
|
EBIT
margin
|
|
7.8 %
|
|
8.7 %
|
|
-90
bps
|
|
7.7 %
|
|
10.0 %
|
|
-230
bps
|
|
Gain from sale of real
estate3
|
|
(5.4)
|
|
—
|
|
|
|
(5.4)
|
|
—
|
|
|
|
Gain from net insurance
proceeds from tornado damage3
|
|
—
|
|
—
|
|
|
|
(3.6)
|
|
—
|
|
|
|
Adjusted EBIT
3
|
|
86.0
|
|
113.2
|
|
(24) %
|
|
267.4
|
|
393.8
|
|
(32) %
|
|
Adjusted EBIT
margin3
|
|
7.3 %
|
|
8.7 %
|
|
-140
bps
|
|
7.4 %
|
|
10.0 %
|
|
-260
bps
|
|
Depreciation and
amortization - segments
|
|
42.4
|
|
41.1
|
|
|
|
126.0
|
|
126.0
|
|
|
|
Depreciation and
amortization - unallocated 4
|
|
2.6
|
|
3.0
|
|
|
|
9.1
|
|
8.3
|
|
|
|
Adjusted
EBITDA
|
|
$ 131.0
|
|
$ 157.3
|
|
(17) %
|
|
$ 402.5
|
|
$ 528.1
|
|
(24) %
|
|
Adjusted EBITDA
margin
|
|
11.1 %
|
|
12.2 %
|
|
-110
bps
|
|
11.1 %
|
|
13.4 %
|
|
-230
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX
QUARTERS
|
|
2022
|
|
2023
|
|
Selected Figures (In
Millions)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
Trade sales
|
|
1,334.2
|
|
1,294.4
|
|
1,195.8
|
|
1,213.6
|
|
1,221.2
|
|
1,175.4
|
|
Sales growth (vs. prior
year)
|
|
5 %
|
|
(2) %
|
|
(10) %
|
|
(8) %
|
|
(8) %
|
|
(9) %
|
|
Volume growth (same
locations vs. prior year)
|
|
(6) %
|
|
(8) %
|
|
(12) %
|
|
(7) %
|
|
(6) %
|
|
(6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
3
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
92.1
|
|
86.0
|
|
Cash from
operations
|
|
89.8
|
|
65.5
|
|
247.1
|
|
96.7
|
|
110.6
|
|
143.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 3
|
|
760.3
|
|
726.8
|
|
664.8
|
|
616.2
|
|
565.5
|
|
539.2
|
|
(Long-term debt +
current maturities - cash and equivalents) / adj. EBITDA
3,5
|
|
2.39
|
|
2.63
|
|
2.66
|
|
2.88
|
|
3.10
|
|
3.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (Vs.
Prior Year) 6
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
Bedding
Products
|
|
— %
|
|
(12) %
|
|
(19) %
|
|
(17) %
|
|
(18) %
|
|
(17) %
|
|
Specialized
Products
|
|
8 %
|
|
19 %
|
|
5 %
|
|
8 %
|
|
12 %
|
|
3 %
|
|
Furniture, Flooring
& Textile Products
|
|
10 %
|
|
— %
|
|
(13) %
|
|
(15) %
|
|
(16) %
|
|
(14) %
|
|
Overall
|
|
5 %
|
|
(3) %
|
|
(12) %
|
|
(11) %
|
|
(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
|
|
|
|
|
|
October 30,
2023
|
|
RECONCILIATION OF
REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL
MEASURES 10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments 7
|
|
2022
|
|
2023
|
|
(In millions, except
per share data)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
Gain on sale of real
estate
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5.4)
|
|
Gain from net insurance
proceeds from tornado damage
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
|
—
|
|
Non-GAAP Adjustments
(Pretax) 8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
|
(5.4)
|
|
Income tax
impact
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.9
|
|
0.9
|
|
Non-GAAP Adjustments
(After Tax)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.7)
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
136.7
|
|
136.1
|
|
136.1
|
|
136.3
|
|
136.6
|
|
136.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Impact of
Non-GAAP Adjustments
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.02)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT,
EBITDA, Margin, and EPS 7
|
|
2022
|
|
2023
|
|
(In millions, except
per share data)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
Trade sales
|
|
1,334.2
|
|
1,294.4
|
|
1,195.8
|
|
1,213.6
|
|
1,221.2
|
|
1,175.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
95.7
|
|
91.4
|
|
Non-GAAP adjustments
(pretax)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
|
(5.4)
|
|
Adjusted
EBIT
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
92.1
|
|
86.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin
|
|
10.7 %
|
|
8.7 %
|
|
7.6 %
|
|
7.4 %
|
|
7.8 %
|
|
7.8 %
|
|
Adjusted EBIT
Margin
|
|
10.7 %
|
|
8.7 %
|
|
7.6 %
|
|
7.4 %
|
|
7.5 %
|
|
7.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
143.0
|
|
113.2
|
|
91.2
|
|
89.3
|
|
95.7
|
|
91.4
|
|
Depreciation and
amortization
|
|
44.5
|
|
44.1
|
|
45.5
|
|
45.4
|
|
44.7
|
|
45.0
|
|
EBITDA
|
|
187.5
|
|
157.3
|
|
136.7
|
|
134.7
|
|
140.4
|
|
136.4
|
|
Non-GAAP adjustments
(pretax)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.6)
|
|
(5.4)
|
|
Adjusted
EBITDA
|
|
187.5
|
|
157.3
|
|
136.7
|
|
134.7
|
|
136.8
|
|
131.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
14.1 %
|
|
12.2 %
|
|
11.4 %
|
|
11.1 %
|
|
11.5 %
|
|
11.6 %
|
|
Adjusted EBITDA
Margin
|
|
14.1 %
|
|
12.2 %
|
|
11.4 %
|
|
11.1 %
|
|
11.2 %
|
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
0.70
|
|
0.52
|
|
0.39
|
|
0.39
|
|
0.40
|
|
0.39
|
|
EPS impact of non-GAAP
adjustments
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.02)
|
|
(0.03)
|
|
Adjusted
EPS
|
|
0.70
|
|
0.52
|
|
0.39
|
|
0.39
|
|
0.38
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA 9
|
|
2022
|
|
2023
|
|
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
Total debt
|
|
2,090.8
|
|
2,141.0
|
|
2,083.6
|
|
2,117.8
|
|
2,024.6
|
|
1,971.9
|
|
Less: cash and
equivalents
|
|
(269.9)
|
|
(226.2)
|
|
(316.5)
|
|
(344.5)
|
|
(272.4)
|
|
(273.9)
|
|
Net debt
|
|
1,820.9
|
|
1,914.8
|
|
1,767.1
|
|
1,773.3
|
|
1,752.2
|
|
1,698.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
760.3
|
|
726.8
|
|
664.8
|
|
616.2
|
|
565.5
|
|
539.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / 12-month
Adjusted EBITDA
|
|
2.39
|
|
2.63
|
|
2.66
|
|
2.88
|
|
3.10
|
|
3.15
|
|
|
|
|
|
|
|
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7
Management and investors use these
measures as supplemental information to assess operational
performance.
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8
The ($5.4) and ($3.6) 2023 non-GAAP
adjustment is included in the Other (income) expense, net line on
the income statement.
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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.
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10
Calculations impacted by
rounding.
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SOURCE Leggett & Platt