Item 2.02 Results of Operations and Financial Condition.
On July 29, 2019, Leggett & Platt, Incorporated issued a press release announcing its financial results for the second quarter
ended June 30, 2019. The
press release
is attached as Exhibit 99.1 and is incorporated herein by reference.
This information is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section. This information shall not be incorporated by reference into any document filed under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in such filing.
On July 30, 2019, the Company will hold
an investor conference call to discuss its second quarter results, annual guidance and related matters.
The press release contains the
Companys (i) Total Debt/Leggett Reported Adjusted EBITDA (trailing twelve months) ratio; (ii) Total Debt/Pro Forma Adjusted EBITDA (trailing twelve months) ratio; (iii) Adjusted EPS; (iv) Adjusted EBIT; (v) Adjusted
EBIT Margin; (vi) EBITDA; (vii) EBITDA Margin; (viii) Adjusted EBITDA; (ix) Adjusted EBITDA Margin; (x) Adjusted EBITDA (trailing twelve months); and (xi) Pro Forma Adjusted EBITDA (trailing twelve months).
The press release also contains certain Segments (i) Adjusted EBIT; (ii) Adjusted EBIT Margin; (iii) EBITDA; (iv) EBITDA
Margin; (v) Adjusted EBITDA; and (vi) Adjusted EBITDA Margin.
Finally, the press release contains the Elite Comfort Solutions,
Inc. (ECS) EBIT and Adjusted EBITDA.
Company management believes the presentation of Total Debt/Leggett Reported Adjusted EBITDA
(trailing twelve months) and Total Debt/Pro Forma Adjusted EBITDA (trailing twelve months) provides investors a useful way to assess the time it would take the Company to pay off its debt, ignoring various factors including interest and taxes.
Management uses these ratios as supplemental information to assess its ability to pay off its incurred debt. Because we may not be able to use our earnings to reduce our debt on a
dollar-for-dollar
basis, the presentation of Total Debt/Leggett Reported Adjusted EBITDA (trailing twelve months) and Total Debt/Pro Forma Adjusted EBITDA (trailing
twelve months) may have material limitations.
Company management believes the presentation of Company Adjusted EPS, Adjusted EBIT,
Adjusted EBIT Margin, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA (trailing twelve months), Pro Forma Adjusted EBITDA (trailing twelve months), and certain Segment Adjusted EBIT, Adjusted EBIT Margin, EBITDA,
EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, and the ECS EBIT and Adjusted EBITDA is useful to investors in that it aids investors understanding of underlying operational profitability. Management uses these
non-GAAP
measures as supplemental information to assess the Companys operational performance.
The
above
non-GAAP
measures may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for, or more meaningful than, their GAAP counterparts. For
non-GAAP
reconciliations, please refer to pages 6 and 7 of the press release.