CARTHAGE, Mo., May 3, 2021 /PRNewswire/ --
- 1Q sales increased 10% vs 1Q20, to $1.151 billion
- 1Q EPS was a first quarter record $.64, an increase of $.31 vs 1Q20 and an increase of $.24 vs adjusted1 EPS in 1Q20
- Board of Directors increased second quarter dividend
$.02 to $.42 per share
- Increased 2021 guidance: sales of $4.8–$5.0 billion and EPS of $2.55–$2.75
- Changed methodology for valuing domestic steel-related
inventory from LIFO to FIFO
Diversified manufacturer Leggett & Platt
reported first quarter 2021 sales of $1.151 billion, a 10% increase versus first
quarter last year.
- Organic sales were up 11%
-
- Volume was up 4%; strong demand in residential end markets and
Automotive was partially offset by weakness in Aerospace
- Raw material-related selling price increases of 5% and currency
benefit of 2% added to sales growth
- Divestitures reduced sales by 1% (small operations in Drawn
Wire and former Fashion Bed business)
First quarter EBIT was $128
million, a first quarter record. EBIT increased $49 million or 62% from first quarter 2020, and
up $37 million or 41% from first
quarter 2020 adjusted1 EBIT.
- EBIT benefited primarily from volume growth, lower fixed costs,
and the non-recurrence of an $8
million impairment charge related to a note receivable and a
$4 million charge to write off stock
associated with a prior year divestiture in first quarter 2020
-
- Fixed cost reductions implemented in 2020 reduced 1Q 2021
costs by approximately $20
million
- EBIT margin was 11.1%, up from 7.5% in the first quarter of
2020 and up from an adjusted1 EBIT margin of 8.7% in
that same period
First quarter EPS was $.64, also a first quarter record. EPS increased
$.31 versus first quarter 2020 and
$.24 versus
adjusted1 EPS in first quarter 2020. Improved EBIT
was the primary driver of the increase, augmented by a lower tax
rate ($.02 per share) and lower
interest expense ($.01 per
share).
LIFO
Effective January 1,
2021, the Company changed its accounting methodology for
valuing its domestic steel-related inventory from a last-in,
first-out (LIFO) basis to a first-in, first-out (FIFO) basis.
All prior periods presented have been retrospectively adjusted
to apply the effects of the change.
CEO COMMENTS
Chairman and CEO Karl Glassman commented, "We had a very strong
start to the year, delivering better-than-expected first quarter
results thanks to the efforts of an incredible team of more than
20,000 employees who remain focused on servicing our customers and
keeping each other safe. We generated record first quarter EBIT,
EBITDA, and EPS. Our results demonstrate our agility and resilience
in dealing with inflationary pressure and supply chain constraints.
Strong demand combined with our disciplined cost control provides
us confidence to raise our full year guidance.
"We are also very pleased to be increasing our dividend for the
50th consecutive year, honoring our ongoing commitment
to return value to our shareholders. As a result of this commitment
over many decades, next year we will become a member of a select
group of companies referred to as Dividend Kings.
"Lastly, we're proud to have issued our inaugural Sustainability
Report last month, which signifies our commitment to further
enhance responsible environmental, social, and governance (ESG)
practices across our global operations."
DEBT, CASH FLOW, AND LIQUIDITY
- Net Debt was 2.46x trailing 12-month
adjusted1 EBITDA
- Operating cash flow was a negative $11 million in the first quarter, a decrease of
$21 million versus first quarter
2020, primarily from working capital investments to support growth
and inflationary impact, which more than offset higher
earnings
- Capital expenditures were $24 million
- Total liquidity was $1.4
billion
DIVIDEND
- The Company's Board of Directors increased second quarter
dividend to $.42
- Dividend will be paid on July 15,
2021 to shareholders of record on June 15, 2021
- At an annual indicated dividend of $1.68 per share, the yield is 3.4% based upon
Friday's closing stock price of $49.67 per share, one of the higher yields among
the S&P 500 Dividend Aristocrats
2021 GUIDANCE
- Increased full year 2021 guidance
- Sales are expected to be $4.8–$5.0 billion, +12% to 17% versus
2020
-
- Volume expected to grow mid-to-high-single digits
- Raw material-related price increases and currency benefit
expected to add sales growth
- Small acquisitions expected to be largely offset by prior year
divestitures
- EPS is expected to be $2.55–$2.75
-
- Reflects higher volume and higher metal margin
- Excludes potential gain from real estate sale that may occur as
early as 2Q
- Based on this guidance framework, EBIT margin should be 11.0%
to 11.5%
- Additional guidance expectations:
-
- Depreciation and amortization $195
million
- Net interest expense $75
million
- Effective tax rate 23%
- Fully diluted shares 137 million
- Operating cash flow approximately $500
million
- Capital expenditures $150
million
- Dividends $220 million
- Prior Guidance:
-
- Sales: $4.6–$4.9 billion
- EPS: $2.30–$2.60
SEGMENT RESULTS – First Quarter 2021 (versus 1Q
2020)
Bedding Products –
- Trade sales increased 9%
-
- Volume increased 2%, primarily from growth in ECS, European
Spring, and U.S. Spring
- Raw material-related selling price increases added 9%
- Currency benefit increased sales 1%
- Divestitures reduced sales by approximately 3% (small
operations in Drawn Wire and former Fashion Bed business)
- EBIT increased $36 million,
primarily from volume growth, higher metal margin, lower fixed
costs, a reduction of bad debt expense, and the non-recurrence of
an $8 million impairment charge
related to a note receivable in first quarter 2020
Specialized Products –
- Trade sales increased 10%
-
- Volume increased 3%; growth in Automotive and Hydraulic
Cylinders was partially offset by weak demand in Aerospace
- Currency benefit increased sales 6%
- An Aerospace acquisition completed in January 2021 added 1% to sales
- EBIT increased $8 million,
primarily from volume growth in Automotive and lower fixed costs,
partially offset by lower volume in Aerospace
Furniture, Flooring & Textile Products –
- Trade sales increased 12%
-
- Volume increased 8%, driven by strong demand in Geo Components,
Home Furniture, and Flooring Products' residential business
- Raw material-related selling price increases added 3%
- Currency benefit increased sales 1%
- EBIT increased $2 million,
primarily from volume growth and lower fixed costs, partially
offset by pricing lag associated with passing along higher raw
material costs
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, May 4. The webcast can be accessed from
Leggett's website. The dial-in number is (201) 689-8341; there is
no passcode.
Second quarter results will be released after the
market closes on Monday, August 2,
2021, with a conference call the next morning.
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 most
homes and automobiles. The 138-year-old Company is comprised of 15
business units, 20,000 employee-partners, and 135 manufacturing
facilities located in 17 countries. Leggett & Platt is a
member of the S&P 500 and the S&P 500 Dividend
Aristocrats, and is one of Fortune's World's Most
Admired Companies.
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, raw
material-related price increases; volume growth; acquisition and
divestiture activity; the amount of sales, EPS, capital
expenditures, depreciation and amortization, net interest expense,
fully diluted shares, operating cash flow; our EBIT margin, and
effective tax rate, amount of dividends, potential gain from real
estate sale, higher metal margins, and currency benefit. Such
forward-looking statements are expressly qualified by the
cautionary statements described in this provision and reflect only
the beliefs of Leggett or its management 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: (i) the adverse
impact on our sales, earnings, liquidity, cash flow, costs, and
financial condition caused by the COVID-19 pandemic which has, in
varying degrees, and could continue to materially negatively impact
(a) the demand for our products and our customers' products, growth
rates in the industries in which we participate, and opportunities
in those industries, (b) our manufacturing facilities' ability to
remain fully operational, obtain necessary raw materials and parts,
maintain appropriate labor levels and ship finished products to
customers, (c) operating costs related to pay and benefits for our
terminated employees, (d) our ability to collect trade and other
notes receivables in accordance with their terms, (e)
impairment of goodwill and long-lived assets, (f)
restructuring-related costs, and (g) 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; (ii) the speed at which vaccines for the COVID-19 virus are
administered, the percentage of the population vaccinated, and the
effectiveness of those vaccines; (iii) the Company's ability to
manage working capital; (iv) increases or decreases in our capital
needs, which may vary depending on acquisition or divestiture
activity, our working capital needs and capital expenditures; (v)
market conditions; (vi) price and product competition from foreign
and domestic competitors; (vii) cost and availability of raw
materials (including chemicals), labor, and energy costs; (viii)
cash generation sufficient to pay the dividend; (ix) cash
repatriation from offshore accounts; (x) changing tax rates,
increased trade costs, cybersecurity breaches, customer losses and
insolvencies, disruption to our steel rod mill, foreign currency
fluctuation, the imposition or continuation of anti-dumping duties
on innersprings, steel wire rod and mattresses, gain on the sale of
real estate; data privacy, climate change and ESG obligations, and
litigation risks; and (xi) risk factors in the "Forward-Looking
Statements" and "Risk Factors" sections in Leggett's most recent
Form 10-K and Form 10-Q reports 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
Tarah L. Sherwood, Director,
Investor Relations
1 Please
refer to the attached tables for Non-GAAP
Reconciliations
|
LEGGETT &
PLATT
|
|
|
|
|
RESULTS OF
OPERATIONS 1
|
|
FIRST
QUARTER
|
(In millions, except
per share data)
|
|
2021
|
|
2020
|
|
Change
|
Net trade
sales
|
|
$
1,150.9
|
|
$
1,045.5
|
|
10 %
|
Cost of goods
sold
|
|
903.4
|
|
824.8
|
|
|
Gross
profit
|
|
247.5
|
|
220.7
|
|
12 %
|
Selling &
administrative expenses
|
|
106.3
|
|
117.8
|
|
(10)%
|
Amortization
|
|
15.8
|
|
16.4
|
|
|
Other expense
(income), net
|
|
(2.3)
|
|
7.9
|
|
|
Earnings
before interest and taxes
|
|
127.7
|
|
78.6
|
|
62 %
|
Net interest
expense
|
|
18.4
|
|
20.0
|
|
|
Earnings
before income taxes
|
|
109.3
|
|
58.6
|
|
|
Income
taxes
|
|
21.8
|
|
14.5
|
|
|
Net
earnings (loss)
|
|
87.5
|
|
44.1
|
|
|
Less net income from
non-controlling interest
|
|
–
|
|
–
|
|
|
Net
Earnings (Loss) Attributable to L&P
|
|
$
87.5
|
|
$
44.1
|
|
98 %
|
Earnings (loss) per
diluted share
|
|
|
|
|
|
|
Net earnings (loss)
per diluted share
|
|
$
0.64
|
|
$
0.33
|
|
94 %
|
Shares
outstanding
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
133.2
|
|
132.3
|
|
0.7 %
|
Basic
(average for period)
|
|
136.0
|
|
135.4
|
|
|
Diluted
(average for period)
|
|
136.3
|
|
135.6
|
|
0.5 %
|
|
|
|
|
|
|
|
CASH FLOW
1
|
|
FIRST
QUARTER
|
(In
millions)
|
|
2021
|
|
2020
|
|
Change
|
Net
earnings
|
|
$
87.5
|
|
$
44.1
|
|
|
Depreciation and
amortization
|
|
46.1
|
|
47.5
|
|
|
Working capital
decrease (increase)
|
|
(152.5)
|
|
(108.1)
|
|
|
Impairments
|
|
–
|
|
3.5
|
|
|
Other operating
activities
|
|
8.3
|
|
23.4
|
|
|
Net
Cash from Operating Activities
|
|
$
(10.6)
|
|
$
10.4
|
|
(202)%
|
Additions to
PP&E
|
|
(24.0)
|
|
(24.2)
|
|
|
Purchase of
companies, net of cash
|
|
(27.3)
|
|
–
|
|
|
Dividends
paid
|
|
(53.0)
|
|
(52.7)
|
|
|
Repurchase of common
stock, net
|
|
(6.7)
|
|
(7.6)
|
|
|
Additions (payments)
to debt, net
|
|
109.2
|
|
340.1
|
|
|
Other
|
|
(2.7)
|
|
(7.8)
|
|
|
Increase (Decrease) in Cash & Equivalents
|
|
$
(15.1)
|
|
$
258.2
|
|
|
|
|
|
|
|
|
|
FINANCIAL POSITION
1
|
|
March
31,
|
(In
millions)
|
|
2021
|
|
2020
|
|
Change
|
Cash and
equivalents
|
|
$
333.8
|
|
$
505.8
|
|
|
Receivables
|
|
602.9
|
|
568.2
|
|
|
Inventories
|
|
801.8
|
|
692.3
|
|
|
Other current
assets
|
|
50.5
|
|
52.5
|
|
|
Total
current assets
|
|
1,789.0
|
|
1,818.8
|
|
(2)%
|
Net fixed
assets
|
|
775.3
|
|
809.5
|
|
|
Operating lease
right-of-use assets
|
|
154.9
|
|
155.3
|
|
|
Goodwill
|
|
1,392.5
|
|
1,391.4
|
|
|
Intangible assets and
deferred costs, both at net
|
|
799.9
|
|
843.8
|
|
|
TOTAL
ASSETS
|
|
$
4,911.6
|
|
$
5,018.8
|
|
(2)%
|
Trade accounts
payable
|
|
$
536.3
|
|
$
429.1
|
|
|
Current debt
maturities
|
|
50.8
|
|
51.2
|
|
|
Current operating
lease liabilities
|
|
42.8
|
|
39.6
|
|
|
Other current
liabilities
|
|
365.7
|
|
334.8
|
|
|
Total
current liabilities
|
|
995.6
|
|
854.7
|
|
16 %
|
Long-term
debt
|
|
1,952.9
|
|
2,415.2
|
|
(19)%
|
Operating lease
liabilities
|
|
115.4
|
|
117.9
|
|
|
Deferred taxes and
other liabilities
|
|
391.5
|
|
364.6
|
|
|
Equity
|
|
1,456.2
|
|
1,266.4
|
|
15 %
|
Total
Capitalization
|
|
3,916.0
|
|
4,164.1
|
|
(6)%
|
TOTAL
LIABILITIES & EQUITY
|
|
$
4,911.6
|
|
$
5,018.8
|
|
(2)%
|
|
|
|
|
|
|
|
1Effective
1/1/21: domestic steel-related inventory valuation methodology
changed from LIFO to FIFO; all prior periods presented have been
retrospectively adjusted to apply the effects of the
change.
|
LEGGETT &
PLATT
|
|
|
|
|
|
SEGMENT RESULTS
1, 2
|
|
FIRST
QUARTER
|
|
|
(In
millions)
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trade
sales
|
|
$
535.8
|
|
$
490.6
|
|
9 %
|
|
|
|
|
|
|
EBIT
|
|
63.8
|
|
28.3
|
|
125 %
|
|
|
|
|
|
|
EBIT
margin
|
|
11.9%
|
|
5.8%
|
|
610
bps
|
3
|
|
|
|
|
|
Note
impairment
|
|
–
|
|
8.4
|
|
|
|
|
|
|
|
|
Adjusted
EBIT
|
|
63.8
|
|
36.7
|
|
74 %
|
|
|
|
|
|
|
Adjusted EBIT
margin
|
|
11.9%
|
|
7.5%
|
|
440
bps
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
26.1
|
|
26.8
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
89.9
|
|
63.5
|
|
42 %
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
16.8%
|
|
12.9%
|
|
390
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trade
sales
|
|
$
257.6
|
|
$
234.5
|
|
10 %
|
|
|
|
|
|
|
EBIT
|
|
35.2
|
|
27.7
|
|
27 %
|
|
|
|
|
|
|
EBIT
margin
|
|
13.7%
|
|
11.8%
|
|
190
bps
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
11.1
|
|
11.2
|
|
|
|
|
|
|
|
|
EBITDA
|
|
46.3
|
|
38.9
|
|
19 %
|
|
|
|
|
|
|
EBITDA
margin
|
|
18.0%
|
|
16.6%
|
|
140
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture,
Flooring & Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trade
sales
|
|
$
357.5
|
|
$
320.4
|
|
12 %
|
|
|
|
|
|
|
EBIT
|
|
28.3
|
|
26.1
|
|
8 %
|
|
|
|
|
|
|
EBIT
margin
|
|
7.9%
|
|
8.1%
|
|
-20
bps
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6.1
|
|
6.5
|
|
|
|
|
|
|
|
|
EBITDA
|
|
34.4
|
|
32.6
|
|
6 %
|
|
|
|
|
|
|
EBITDA
margin
|
|
9.6%
|
|
10.2%
|
|
-60
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trade
sales
|
|
$
1,150.9
|
|
$
1,045.5
|
|
10 %
|
|
|
|
|
|
|
EBIT -
segments
|
|
127.3
|
|
82.1
|
|
55 %
|
|
|
|
|
|
|
Intersegment
eliminations and other
|
|
0.4
|
|
(3.5)
|
|
|
|
|
|
|
|
|
EBIT
|
|
127.7
|
|
78.6
|
|
62 %
|
|
|
|
|
|
|
EBIT
margin
|
|
11.1%
|
|
7.5%
|
|
360
bps
|
|
|
|
|
|
|
Note impairment
4
|
|
–
|
|
8.4
|
|
|
|
|
|
|
|
|
Stock write-off
from prior year divestiture 4
|
|
–
|
|
3.5
|
|
|
|
|
|
|
|
|
Adjusted EBIT
4
|
|
127.7
|
|
90.5
|
|
41 %
|
|
|
|
|
|
|
Adjusted EBIT
margin 4
|
|
11.1%
|
|
8.7%
|
|
240
bps
|
|
|
|
|
|
|
Depreciation and
amortization - segments
|
|
43.3
|
|
44.5
|
|
|
|
|
|
|
|
|
Depreciation and
amortization - unallocated 5
|
|
2.8
|
|
3.0
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
4
|
|
$
173.8
|
|
$
138.0
|
|
26 %
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
15.1%
|
|
13.2%
|
|
190
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX QUARTERS
1
|
|
2019
|
|
2020
|
|
2021
|
Selected Figures
(In Millions)
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
Net trade
sales
|
|
1,144.9
|
|
1,045.5
|
|
845.1
|
|
1,207.6
|
|
1,182.0
|
|
1,150.9
|
Sales growth (vs.
prior year)
|
|
9 %
|
|
(9)%
|
|
(30)%
|
|
(3)%
|
|
3 %
|
|
10 %
|
Volume growth (same
locations vs. prior year)
|
|
(1)%
|
|
(9)%
|
|
(29)%
|
|
(3)%
|
|
3 %
|
|
4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
4
|
|
125.7
|
|
90.5
|
|
50.3
|
|
155.9
|
|
156.0
|
|
127.7
|
Cash from
operations
|
|
251.4
|
|
10.4
|
|
112.1
|
|
261.3
|
|
218.8
|
|
(10.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 4
|
|
689.9
|
|
675.7
|
|
596.3
|
|
610.6
|
|
642.1
|
|
677.9
|
(Long-term debt +
current maturities - cash and equivalents) / adj. EBITDA
4,6
|
|
2.71
|
|
2.90
|
|
3.23
|
|
2.81
|
|
2.42
|
|
2.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (Vs.
Prior Year) 7
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
Bedding
Products
|
|
(10)%
|
|
(15)%
|
|
(28)%
|
|
(1)%
|
|
5 %
|
|
12 %
|
Specialized
Products
|
|
4 %
|
|
(11)%
|
|
(47)%
|
|
(9)%
|
|
1 %
|
|
9 %
|
Furniture, Flooring
& Textile Products
|
|
(2)%
|
|
(7)%
|
|
(25)%
|
|
(2)%
|
|
3 %
|
|
12 %
|
Overall
|
|
(4)%
|
|
(12)%
|
|
(31)%
|
|
(3)%
|
|
3 %
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Segment
and overall company margins calculated on net trade
sales.
|
3bps =
basis points; a unit of measure equal to 1/100th of 1%.
|
4Refer to
next page for non-GAAP reconciliations.
|
5Consists
primarily of depreciation of non-operating assets.
|
6EBITDA
based on trailing twelve months.
|
|
|
|
|
|
|
|
|
|
|
|
|
7Net trade
sales excluding sales attributable to acquisitions and divestitures
consummated in the last 12 months.
|
LEGGETT &
PLATT
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES 1,
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments 8
|
|
2019
|
|
2020
|
|
2021
|
|
(In millions, except
per share data)
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
Goodwill
impairment
|
|
–
|
|
–
|
|
25.4
|
|
–
|
|
–
|
|
–
|
|
Note
impairment
|
|
–
|
|
8.4
|
|
–
|
|
–
|
|
–
|
|
–
|
|
Stock write-off from
prior year divestiture
|
|
–
|
|
3.5
|
|
–
|
|
–
|
|
–
|
|
–
|
|
Restructuring-related
charges
|
|
2.9
|
|
–
|
|
2.2
|
|
5.7
|
|
–
|
|
–
|
|
Non-GAAP
Adjustments (Pretax) 9
|
|
2.9
|
|
11.9
|
|
27.6
|
|
5.7
|
|
–
|
|
–
|
|
Income tax
impact
|
|
0.4
|
|
(2.9)
|
|
(0.2)
|
|
(1.3)
|
|
–
|
|
–
|
|
Non-GAAP
Adjustments (After Tax)
|
|
3.3
|
|
9.0
|
|
27.4
|
|
4.4
|
|
–
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
135.8
|
|
135.6
|
|
135.7
|
|
136.1
|
|
136.2
|
|
136.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Impact of
Non-GAAP Adjustments
|
|
0.02
|
|
0.07
|
|
0.20
|
|
0.03
|
|
–
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT,
EBITDA, Margin, and EPS 8
|
|
2019
|
|
2020
|
|
2021
|
|
(In millions, except
per share data)
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
Net trade
sales
|
|
1,144.9
|
|
1,045.5
|
|
845.1
|
|
1,207.6
|
|
1,182.0
|
|
1,150.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
122.8
|
|
78.6
|
|
22.7
|
|
150.2
|
|
156.0
|
|
127.7
|
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
2.9
|
|
11.9
|
|
27.6
|
|
5.7
|
|
–
|
|
–
|
|
Adjusted
EBIT
|
|
125.7
|
|
90.5
|
|
50.3
|
|
155.9
|
|
156.0
|
|
127.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
margin
|
|
10.7%
|
|
7.5%
|
|
2.7%
|
|
12.4%
|
|
13.2%
|
|
11.1%
|
|
Adjusted EBIT
Margin
|
|
11.0%
|
|
8.7%
|
|
6.0%
|
|
12.9%
|
|
13.2%
|
|
11.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
122.8
|
|
78.6
|
|
22.7
|
|
150.2
|
|
156.0
|
|
127.7
|
|
Depreciation and
amortization
|
|
47.2
|
|
47.5
|
|
46.5
|
|
47.0
|
|
48.4
|
|
46.1
|
|
EBITDA
|
|
170.0
|
|
126.1
|
|
69.2
|
|
197.2
|
|
204.4
|
|
173.8
|
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
2.9
|
|
11.9
|
|
27.6
|
|
5.7
|
|
–
|
|
–
|
|
Adjusted
EBITDA
|
|
172.9
|
|
138.0
|
|
96.8
|
|
202.9
|
|
204.4
|
|
173.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
14.8%
|
|
12.1%
|
|
8.2%
|
|
16.3%
|
|
17.3%
|
|
15.1%
|
|
Adjusted EBITDA
Margin
|
|
15.1%
|
|
13.2%
|
|
11.5%
|
|
16.8%
|
|
17.3%
|
|
15.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
0.57
|
|
0.33
|
|
(0.05)
|
|
0.79
|
|
0.79
|
|
0.64
|
|
EPS impact of
non-GAAP adjustments
|
|
0.02
|
|
0.07
|
|
0.20
|
|
0.03
|
|
–
|
|
–
|
|
Adjusted
EPS
|
|
0.59
|
|
0.40
|
|
0.15
|
|
0.82
|
|
0.79
|
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2020
|
|
2021
|
|
Net Debt to
Adjusted EBITDA 10
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
Total debt
|
|
2,117.6
|
|
2,466.4
|
|
2,134.3
|
|
1,960.2
|
|
1,900.2
|
|
2,003.7
|
|
Less: cash and
equivalents
|
|
(247.6)
|
|
(505.8)
|
|
(208.8)
|
|
(245.0)
|
|
(348.9)
|
|
(333.8)
|
|
Net debt
|
|
1,870.0
|
|
1,960.6
|
|
1,925.5
|
|
1,715.2
|
|
1,551.3
|
|
1,669.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
689.9
|
|
675.7
|
|
596.3
|
|
610.6
|
|
642.1
|
|
677.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / Leggett
Reported 12-month Adjusted EBITDA
|
|
2.71
|
|
2.90
|
|
3.23
|
|
2.81
|
|
2.42
|
|
2.46
|
|
Net Debt / Leggett
and ECS 12-month Pro Forma Adjusted EBITDA
11
|
|
2.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
Management and investors use these measures as supplemental
information to assess operational performance.
|
|
9 The
non-GAAP adjustments affected various line items on the income
statement. Details by quarter: 4Q 2019: $2.9 million other
expense.
1Q 2020: $8.4 million SG&A, $3.5 million
other expense. 2Q 2020: ($0.2) COGS, $27.8 million other
expense. 3Q 2020: $5.1 million other expense, $0.6 million in
COGS.
|
|
10 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.
|
|
11 The
Leggett and ECS pro forma adjusted EBITDA for the 12 months ended
December 31, 2019 is presented in the table below.
Because the increase in debt from December
31, 2018 to December 31, 2019 was directly attributable to the ECS
acquisition, we believe it is more meaningful to
investors to include ECS's pre-acquisition
EBITDA for the trailing 12 months ended December 31, 2019 in the
net debt / 12-month adjusted EBITDA calculation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECS pre-acquisition
EBITDA from (amounts in millions):
|
|
1/1/19 –
1/16/19
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leggett adjusted
EBITDA, trailing 12 months (including ECS from January 16,
2019)
|
|
690
|
|
|
|
|
|
|
|
|
|
|
|
ECS pre-acquisition
EBITDA
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Leggett and ECS pro
forma adjusted EBITDA, trailing 12 months
|
|
691
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / Leggett
and ECS 12-month Pro Forma Adjusted EBITDA
|
|
2.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12Calculations impacted by
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
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SOURCE Leggett & Platt