CARTHAGE, Mo., Aug. 1, 2022
/PRNewswire/ --
- 2Q sales1 were a quarterly record $1.33 billion, a 5% increase vs 2Q21
- 2Q EBIT of $143 million, down
$29 million vs 2Q21 and down
$1 million vs 2Q21
adjusted2 EBIT
- 2Q EPS of $.70, a decrease of
$.12 vs 2Q21 and an increase of
$.04 vs 2Q21 adjusted2
EPS
- 2022 guidance lowered: sales of $5.2–$5.4 billion; EPS of $2.65–$2.80
Diversified manufacturer Leggett & Platt reported record
quarterly sales1 in second quarter of $1.33 billion, a 5% increase versus second
quarter last year.
- Organic sales3 were up 5%
-
- Volume was down 6%, primarily from demand softness in
residential end markets, partially offset by growth in industrial
end markets and Automotive
- Raw material-related selling price increases added 13% to
sales
- Currency impact decreased sales 2%
- Acquisitions and divestitures offset
Second quarter EBIT was $143
million, down $29 million from
second quarter 2021, and down $1
million from second quarter adjusted2 EBIT.
- EBIT decreased primarily from the non-recurrence of last year's
$28 million gain on the sale of real
estate associated with our exited Fashion Bed business
- EBIT decreased versus prior year's adjusted2 EBIT
primarily from volume declines and lower overhead absorption as
production and inventory levels were adjusted to meet reduced
demand mostly in Bedding. These decreases were largely offset by
metal margin expansion and pricing discipline in the Furniture,
Flooring & Textile Products segment.
- EBIT margin was 10.7%, down from 13.5% in the second quarter of
2021 and down from an adjusted2 second quarter 2021 EBIT
margin of 11.3%
Second quarter EPS was $.70. EPS decreased $.12 versus second quarter 2021 primarily from
the non-recurrence of last year's real estate gain ($.16/share) partially offset by lower tax rate
($.04/share). EPS increased
$.04 versus adjusted2
second quarter 2021 primarily from lower tax rate.
CEO COMMENTS
President and CEO Mitch Dolloff
commented, "We delivered quarterly record sales1, solid
earnings, and strong cash from operations. These results are
attributable to the excellent work of our employees as they
continue to effectively navigate a dynamic operating environment
and reflects the value of the diversity of our
portfolio.
"We are lowering our full-year guidance to reflect macroeconomic
uncertainties including impacts of inflation, tightening monetary
policy, and softening consumer demand continuing through the back
half of the year. We expect solid demand in our industrial and
automotive end markets to partially offset softer consumer
markets.
"The strength of our balance sheet supports our capital
allocation discipline. We continue to invest in our businesses to
capture near- and long-term growth opportunities, both organically
and through strategic, bolt-on acquisitions. During the second
quarter, we increased our dividend and marked 51 consecutive years
of annual dividend increases. We also repurchased $35 million of our stock in the quarter. As we
move through the remainder of the year, we will continue to
evaluate our capital deployment options while monitoring the
current macroeconomic uncertainties."
DEBT, CASH FLOW, AND LIQUIDITY
- Net Debt2 was 2.39x trailing 12-month adjusted
EBITDA2
- Operating cash flow was $90
million in the second quarter, an increase of $49 million versus second quarter 2021. Working
capital increased significantly last year due to restocking efforts
following inventory depletion in 2020 but increased to a lesser
extent this year as we continue to return to levels of inventory
more reflective of current demand.
- Capital expenditures were $22
million
- Total liquidity was $1.3
billion
DIVIDEND
- In May, Leggett & Platt's Board of Directors declared a
$.44 per share second quarter
dividend, two cents higher than last
year's second quarter dividend
- At an annual indicated dividend of $1.76 per share, the yield is 4.4% based upon
Friday's closing stock price of $39.64 per share
STOCK REPURCHASES
- Repurchased 1.0 million shares at an average price of
$35.01
- Issued .1 million shares through employee benefit plans
- Shares outstanding at the end of the second quarter were 132.6
million
2022 GUIDANCE
- Full year 2022 sales and EPS guidance lowered
- Sales are expected to be $5.2–$5.4 billion, +2% to +6% versus 2021
-
- Volume is expected to be down low-to-mid single digits:
-
- Down low double digits in Bedding Products Segment
- Up low double digits in Specialized Products Segment
- Roughly flat in Furniture, Flooring & Textile Products
Segment
- Raw material-related price increases, net of currency impact,
expected to add sales growth
- Small acquisitions completed in 2021 are expected to mostly
offset divestitures
- EPS is expected to be $2.65–$2.80
- Based on this framework, EBIT margin should be 10.5% to
10.7%
- Additional expectations:
-
- Depreciation and amortization $200
million
- Net interest expense $80
million
- Effective tax rate 23%
- Operating cash flow $550–600 million
- Capital expenditures $130
million
- Dividends $230 million
- Fully diluted shares 137 million
- Prior Guidance:
-
- Sales: $5.3–$5.6 billion
- EPS: $2.70–$3.00
- Operating cash flow approximately $600
million
- Capital expenditures $150
million
SEGMENT RESULTS – Second Quarter 2022 (versus 2Q
2021)
Bedding Products –
- Trade sales increased 1%
-
- Volume decreased 15%, primarily from demand softness in U.S.
and European bedding markets partially offset by strong trade
demand in our Steel Rod and Drawn Wire businesses
- Raw material-related selling price increases added 16%
- Currency impact decreased sales 1%
- Acquisitions, net of divestitures, added 1% to sales
growth
-
- The Kayfoam acquisition completed in June 2021 contributed 2% to sales
- Divestitures of small operations in Drawn Wire and
International Bedding decreased sales by 1%
- EBIT decreased $31 million,
primarily from the non-recurrence of last year's $28 million gain on the sale of real estate
associated with our exited Fashion Bed business. Additionally,
lower volume and lower overhead absorption as production and
inventory levels were adjusted to meet reduced demand were
partially offset by higher metal margin.
Specialized Products –
- Trade sales increased 8%
-
- Volume was up 11%, driven by sales growth in Automotive,
Aerospace, and Hydraulic Cylinders
- Raw material-related price increases added 3%
- Currency impact decreased sales 6%
- EBIT decreased $6 million,
primarily from higher raw material and transportation costs, labor
inefficiencies, and currency impact, partially offset by higher
volume
Furniture, Flooring & Textile Products –
- Trade sales increased 10%
-
- Volume was down 2% with declines in Home Furniture, Textiles,
and Flooring partially offset by growth in Work Furniture
- Raw material-related selling price increases added 13%
- Currency impact decreased sales 1%
- EBIT increased $7 million,
primarily from pricing discipline partially offset by 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, August 2. The webcast can be accessed
from Leggett's website. The dial-in number is (201) 689-8341; there
is no passcode.
Third quarter results will be released after the
market closes on Monday, October 31,
2022, 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 139-year-old Company is comprised of 15
business units, approximately 20,000 employees, and 130
manufacturing facilities located in 17 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, 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, effective tax rate, amount of dividends, raw
material-related price increases, consumer demand, volume in each
of the Company's segments, and demand in industrial and automotive
end markets. 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: the adverse impact on our sales, earnings, liquidity, cash
flow, costs, and financial condition caused by the COVID-19
pandemic which has had, and depending on the length and severity of
the pandemic and the percentage of the population vaccinated and
effectiveness of any vaccines, could, in varying degrees,
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 open and fully
operational, obtain necessary raw materials and parts, maintain
appropriate labor levels and ship finished products to customers,
(c) impairment of goodwill and long-lived assets, (d)
restructuring-related costs, and (e) 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 Russia's invasion of Ukraine; adverse
impact from supply chain disruptions; our ability to deleverage;
our ability to manage working capital; increases or decreases in
our capital needs, which may vary depending on acquisition or
divestiture activity, our working capital needs and capital
expenditures; market conditions; price and product competition from
foreign and domestic competitors; cost and availability of raw
materials (including semiconductors and chemicals) due to supply
chain disruptions or otherwise, labor, and energy costs;
inflationary impacts; 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; 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; data privacy; climate change compliance costs and
market, technological and reputational impacts, and 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 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
_________________
1 Sales from continuing operations
2 Please refer to attached tables for Non-GAAP
Reconciliations
3 Trade sales excluding acquisitions/divestitures in the
last 12 months
LEGGETT &
PLATT
|
|
Page 5 of 7
|
|
|
|
|
|
August 1,
2022
|
RESULTS OF
OPERATIONS
|
|
SECOND
QUARTER
|
|
YEAR TO
DATE
|
(In millions, except
per share data)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Trade
sales
|
|
$
1,334.2
|
|
$
1,269.6
|
|
5 %
|
|
$
2,656.5
|
|
$
2,420.5
|
|
10 %
|
Cost of goods
sold
|
|
1,065.8
|
|
1,000.3
|
|
|
|
2,120.8
|
|
1,903.7
|
|
|
Gross
profit
|
|
268.4
|
|
269.3
|
|
— %
|
|
535.7
|
|
516.8
|
|
4 %
|
Selling &
administrative expenses
|
|
105.4
|
|
112.6
|
|
(6) %
|
|
217.1
|
|
218.9
|
|
(1) %
|
Amortization
|
|
16.4
|
|
18.0
|
|
|
|
33.4
|
|
33.8
|
|
|
Other expense (income),
net
|
|
3.6
|
|
(33.2)
|
|
|
|
4.6
|
|
(35.5)
|
|
|
Earnings
before interest and taxes
|
|
143.0
|
|
171.9
|
|
(17) %
|
|
280.6
|
`
|
299.6
|
|
(6) %
|
Net interest
expense
|
|
20.0
|
|
18.7
|
|
|
|
39.5
|
|
37.1
|
|
|
Earnings
before income taxes
|
|
123.0
|
|
153.2
|
|
|
|
241.1
|
|
262.5
|
|
|
Income
taxes
|
|
27.8
|
|
40.9
|
|
|
|
55.5
|
|
62.7
|
|
|
Net
earnings
|
|
95.2
|
|
112.3
|
|
|
|
185.6
|
|
199.8
|
|
|
Less net income from
noncontrolling interest
|
|
-
|
|
(0.1)
|
|
|
|
-
|
|
(0.1)
|
|
|
Net
Earnings Attributable to L&P
|
|
$
95.2
|
|
$ 112.2
|
|
(15) %
|
|
$ 185.6
|
|
$ 199.7
|
|
(7) %
|
Earnings per diluted
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
|
$ 0.70
|
|
$ 0.82
|
|
(15) %
|
|
$ 1.36
|
|
$ 1.46
|
|
(7) %
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
132.6
|
|
133.3
|
|
(0.5) %
|
|
132.6
|
|
133.3
|
|
(0.5) %
|
Basic
(average for period)
|
|
136.3
|
|
136.3
|
|
|
|
136.4
|
|
136.1
|
|
|
Diluted
(average for period)
|
|
136.7
|
|
136.8
|
|
(0.1) %
|
|
136.8
|
|
136.6
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW
|
|
SECOND
QUARTER
|
|
YEAR TO
DATE
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Net earnings
|
|
$ 95.2
|
|
$ 112.3
|
|
|
|
$ 185.6
|
|
$ 199.8
|
|
|
Depreciation and
amortization
|
|
44.5
|
|
48.1
|
|
|
|
90.2
|
|
94.2
|
|
|
Working capital
decrease (increase)
|
|
(55.7)
|
|
(111.0)
|
|
|
|
(170.1)
|
|
(263.5)
|
|
|
Impairments
|
|
-
|
|
-
|
|
|
|
-
|
|
-
|
|
|
Other operating
activities
|
|
5.8
|
|
(8.5)
|
|
|
|
23.1
|
|
(0.2)
|
|
|
Net
Cash from Operating Activities
|
|
$
89.8
|
|
$
40.9
|
|
120 %
|
|
$ 128.8
|
|
$
30.3
|
|
325 %
|
Additions to
PP&E
|
|
(22.1)
|
|
(25.0)
|
|
|
|
(40.8)
|
|
(49.0)
|
|
|
Purchase of companies,
net of cash
|
|
-
|
|
(124.6)
|
|
|
|
-
|
|
(151.9)
|
|
|
Proceeds from business
and asset sales
|
|
0.3
|
|
30.9
|
|
|
|
2.7
|
|
30.9
|
|
|
Dividends
paid
|
|
(56.1)
|
|
(53.3)
|
|
|
|
(112.1)
|
|
(106.3)
|
|
|
Repurchase of common
stock, net
|
|
(35.3)
|
|
(0.3)
|
|
|
|
(56.9)
|
|
(7.0)
|
|
|
Additions (payments) to
debt, net
|
|
(18.5)
|
|
22.1
|
|
|
|
2.4
|
|
131.3
|
|
|
Other
|
|
(15.5)
|
|
7.1
|
|
|
|
(15.9)
|
|
4.4
|
|
|
Increase (Decrease) in Cash & Equivalents
|
|
$ (57.4)
|
|
$
(102.2)
|
|
|
|
$ (91.8)
|
|
$
(117.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
Jun
30,
|
|
Dec
31,
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$ 269.9
|
|
$ 361.7
|
|
|
|
|
|
|
|
|
Receivables
|
|
722.6
|
|
651.5
|
|
|
|
|
|
|
|
|
Inventories
|
|
1,026.9
|
|
993.2
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
72.4
|
|
58.9
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
2,091.8
|
|
2,065.3
|
|
1 %
|
|
|
|
|
|
|
Net fixed
assets
|
|
750.4
|
|
781.5
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
189.3
|
|
192.6
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,430.4
|
|
1,449.6
|
|
|
|
|
|
|
|
|
Intangible assets and
deferred costs, both at net
|
|
768.7
|
|
818.3
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
5,230.6
|
|
$
5,307.3
|
|
(1) %
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$ 602.0
|
|
$ 613.8
|
|
|
|
|
|
|
|
|
Current debt
maturities
|
|
301.3
|
|
300.6
|
|
|
|
|
|
|
|
|
Current operating lease
liabilities
|
|
44.8
|
|
44.5
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
|
383.3
|
|
376.8
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
1,331.4
|
|
1,335.7
|
|
— %
|
|
|
|
|
|
|
Long-term
debt
|
|
1,789.5
|
|
1,789.7
|
|
— %
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
149.5
|
|
153.0
|
|
|
|
|
|
|
|
|
Deferred taxes and
other liabilities
|
|
345.6
|
|
380.3
|
|
|
|
|
|
|
|
|
Equity
|
|
1,614.6
|
|
1,648.6
|
|
(2) %
|
|
|
|
|
|
|
Total
Capitalization
|
|
3,899.2
|
|
3,971.6
|
|
(2) %
|
|
|
|
|
|
|
TOTAL
LIABILITIES & EQUITY
|
|
$
5,230.6
|
|
$
5,307.3
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEGGETT &
PLATT
|
|
Page 6 of 7
|
|
|
|
|
|
August 1,
2022
|
SEGMENT RESULTS 1
|
|
SECOND
QUARTER
|
|
YEAR TO
DATE
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 612.5
|
|
$ 608.7
|
|
1 %
|
|
$
1,251.9
|
|
$
1,144.5
|
|
9 %
|
EBIT
|
|
69.1
|
|
100.4
|
|
(31) %
|
|
145.3
|
|
164.2
|
|
(12) %
|
EBIT
margin
|
|
11.3 %
|
|
16.5 %
|
|
-520
bps
|
2
|
11.6 %
|
|
14.3 %
|
|
-270
bps
|
Gain on sale of real
estate
|
|
-
|
|
(28.2)
|
|
|
|
-
|
|
(28.2)
|
|
|
Adjusted
EBIT
|
|
69.1
|
|
72.2
|
|
(4) %
|
|
145.3
|
|
136.0
|
|
7 %
|
Adjusted EBIT
margin
|
|
11.3 %
|
|
11.9 %
|
|
-60
bps
|
|
11.6 %
|
|
11.9 %
|
|
-30
bps
|
Depreciation and
amortization
|
|
26.2
|
|
26.4
|
|
|
|
52.4
|
|
52.5
|
|
|
EBITDA
|
|
95.3
|
|
98.6
|
|
(3) %
|
|
197.7
|
|
188.5
|
|
5 %
|
EBITDA
margin
|
|
15.6 %
|
|
16.2 %
|
|
-60
bps
|
|
15.8 %
|
|
16.5 %
|
|
-70
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 260.1
|
|
$ 241.7
|
|
8 %
|
|
$ 524.2
|
|
$ 499.3
|
|
5 %
|
EBIT
|
|
21.4
|
|
27.4
|
|
(22) %
|
|
41.7
|
|
62.6
|
|
(33) %
|
EBIT
margin
|
|
8.2 %
|
|
11.3 %
|
|
-310
bps
|
|
8.0 %
|
|
12.5 %
|
|
-450
bps
|
Depreciation and
amortization
|
|
9.9
|
|
12.2
|
|
|
|
20.7
|
|
23.3
|
|
|
EBITDA
|
|
31.3
|
|
39.6
|
|
(21) %
|
|
62.4
|
|
85.9
|
|
(27) %
|
EBITDA
margin
|
|
12.0 %
|
|
16.4 %
|
|
-440
bps
|
|
11.9 %
|
|
17.2 %
|
|
-530
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture, Flooring
& Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 461.6
|
|
$ 419.2
|
|
10 %
|
|
$ 880.4
|
|
$ 776.7
|
|
13 %
|
EBIT
|
|
51.3
|
|
44.7
|
|
15 %
|
|
94.0
|
|
73.0
|
|
29 %
|
EBIT
margin
|
|
11.1 %
|
|
10.7 %
|
|
40
bps
|
|
10.7 %
|
|
9.4 %
|
|
130
bps
|
Depreciation and
amortization
|
|
5.9
|
|
6.0
|
|
|
|
11.8
|
|
12.1
|
|
|
EBITDA
|
|
57.2
|
|
50.7
|
|
13 %
|
|
105.8
|
|
85.1
|
|
24 %
|
EBITDA
margin
|
|
12.4 %
|
|
12.1 %
|
|
30
bps
|
|
12.0 %
|
|
11.0 %
|
|
100
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$
1,334.2
|
|
$
1,269.6
|
|
5 %
|
|
$
2,656.5
|
|
$
2,420.5
|
|
10 %
|
EBIT -
segments
|
|
141.8
|
|
172.5
|
|
(18) %
|
|
281.0
|
|
299.8
|
|
(6) %
|
Intersegment
eliminations and other
|
|
1.2
|
|
(0.6)
|
|
|
|
(0.4)
|
|
(0.2)
|
|
|
EBIT
|
|
143.0
|
|
171.9
|
|
(17) %
|
|
280.6
|
|
299.6
|
|
(6) %
|
EBIT
margin
|
|
10.7 %
|
|
13.5 %
|
|
-280
bps
|
|
10.6 %
|
|
12.4 %
|
|
-180
bps
|
Gain on
sale of real estate 4
|
|
-
|
|
(28.2)
|
|
|
|
-
|
|
(28.2)
|
|
|
Adjusted EBIT
4
|
|
143.0
|
|
143.7
|
|
— %
|
|
280.6
|
|
271.4
|
|
3 %
|
Adjusted EBIT margin 4
|
|
10.7 %
|
|
11.3 %
|
|
-60
bps
|
|
10.6 %
|
|
11.2 %
|
|
-60
bps
|
Depreciation and
amortization - segments
|
|
42.0
|
|
44.6
|
|
|
|
84.9
|
|
87.9
|
|
|
Depreciation and
amortization - unallocated 3
|
|
2.5
|
|
3.5
|
|
|
|
5.3
|
|
6.3
|
|
|
EBITDA
|
|
$ 187.5
|
|
$ 191.8
|
|
(2) %
|
|
$ 370.8
|
|
$ 365.6
|
|
1 %
|
EBITDA
margin
|
|
14.1 %
|
|
15.1 %
|
|
-100
bps
|
|
14.0 %
|
|
15.1 %
|
|
-110
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX
QUARTERS
|
|
2021
|
|
2022
|
Selected Figures (In
Millions)
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Trade sales
|
|
1,150.9
|
|
1,269.6
|
|
1,319.2
|
|
1,332.9
|
|
1,322.3
|
|
1,334.2
|
Sales growth (vs. prior
year)
|
|
10 %
|
|
50 %
|
|
9 %
|
|
13 %
|
|
15 %
|
|
5 %
|
Volume growth (same
locations vs. prior year)
|
|
4 %
|
|
31 %
|
|
(6) %
|
|
(5) %
|
|
(4) %
|
|
(6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
4
|
|
127.7
|
|
143.7
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
Cash from
operations
|
|
(10.6)
|
|
40.9
|
|
50.1
|
|
190.9
|
|
39.0
|
|
89.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 4
|
|
677.9
|
|
772.9
|
|
760.8
|
|
755.1
|
|
764.6
|
|
760.3
|
(Long-term debt +
current maturities - cash and equivalents) / adj. EBITDA
4,5
|
|
2.46
|
|
2.32
|
|
2.41
|
|
2.29
|
|
2.32
|
|
2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (Vs. Prior Year) 6
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Bedding
Products
|
|
12 %
|
|
50 %
|
|
12 %
|
|
15 %
|
|
16 %
|
|
— %
|
Specialized
Products
|
|
9 %
|
|
69 %
|
|
(4) %
|
|
(4) %
|
|
2 %
|
|
8 %
|
Furniture, Flooring
& Textile Products
|
|
12 %
|
|
43 %
|
|
12 %
|
|
17 %
|
|
17 %
|
|
10 %
|
Overall
|
|
11 %
|
|
50 %
|
|
8 %
|
|
11 %
|
|
13 %
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Consists primarily of depreciation of
non-operating assets.
|
4
Refer to next page for non-GAAP
reconciliations.
|
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
|
|
|
|
|
|
August 1,
2022
|
RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED
(Non-GAAP) FINANCIAL MEASURES 10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments 7
|
|
2021
|
|
2022
|
(In millions, except
per share data)
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Gain on sale of real
estate
|
|
-
|
|
(28.2)
|
|
-
|
|
-
|
|
-
|
|
-
|
Non-GAAP Adjustments (Pretax) 8
|
|
-
|
|
(28.2)
|
|
-
|
|
-
|
|
-
|
|
-
|
Income tax
impact
|
|
-
|
|
6.9
|
|
-
|
|
-
|
|
-
|
|
-
|
Non-GAAP Adjustments
(After Tax)
|
|
-
|
|
(21.3)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
136.3
|
|
136.8
|
|
136.9
|
|
137.0
|
|
136.9
|
|
136.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Impact of
Non-GAAP Adjustments
|
|
-
|
|
(0.16)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT, EBITDA, Margin, and EPS
7
|
|
2021
|
|
2022
|
(In millions, except
per share data)
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Trade sales
|
|
1,150.9
|
|
1,269.6
|
|
1,319.2
|
|
1,332.9
|
|
1,322.3
|
|
1,334.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
127.7
|
|
171.9
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
Non-GAAP adjustments
(pretax)
|
|
-
|
|
(28.2)
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted
EBIT
|
|
127.7
|
|
143.7
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin
|
|
11.1 %
|
|
13.5 %
|
|
10.9 %
|
|
11.4 %
|
|
10.4 %
|
|
10.7 %
|
Adjusted EBIT
Margin
|
|
11.1 %
|
|
11.3 %
|
|
10.9 %
|
|
11.4 %
|
|
10.4 %
|
|
10.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
127.7
|
|
171.9
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
Depreciation and
amortization
|
|
46.1
|
|
48.1
|
|
46.6
|
|
46.5
|
|
45.7
|
|
44.5
|
EBITDA
|
|
173.8
|
|
220.0
|
|
190.8
|
|
198.7
|
|
183.3
|
|
187.5
|
Non-GAAP adjustments
(pretax)
|
|
-
|
|
(28.2)
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted
EBITDA
|
|
173.8
|
|
191.8
|
|
190.8
|
|
198.7
|
|
183.3
|
|
187.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
15.1 %
|
|
17.3 %
|
|
14.5 %
|
|
14.9 %
|
|
13.9 %
|
|
14.1 %
|
Adjusted EBITDA
Margin
|
|
15.1 %
|
|
15.1 %
|
|
14.5 %
|
|
14.9 %
|
|
13.9 %
|
|
14.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
0.64
|
|
0.82
|
|
0.71
|
|
0.77
|
|
0.66
|
|
0.70
|
EPS impact of non-GAAP
adjustments
|
|
-
|
|
(0.16)
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted
EPS
|
|
0.64
|
|
0.66
|
|
0.71
|
|
0.77
|
|
0.66
|
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted EBITDA 9
|
|
2021
|
|
2022
|
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
Total debt
|
|
2,003.7
|
|
2,025.7
|
|
2,066.0
|
|
2,090.3
|
|
2,104.4
|
|
2,090.8
|
Less: cash and
equivalents
|
|
(333.8)
|
|
(231.6)
|
|
(234.7)
|
|
(361.7)
|
|
(327.3)
|
|
(269.9)
|
Net debt
|
|
1,669.9
|
|
1,794.1
|
|
1,831.3
|
|
1,728.6
|
|
1,777.1
|
|
1,820.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
677.9
|
|
772.9
|
|
760.8
|
|
755.1
|
|
764.6
|
|
760.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / 12-month
Adjusted EBITDA
|
|
2.46
|
|
2.32
|
|
2.41
|
|
2.29
|
|
2.32
|
|
2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Management and investors use these measures as supplemental
information to assess operational performance.
|
8
The ($28.2) 2Q 2021 non-GAAP adjustment is included in the
Other income 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
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