CARTHAGE, Mo., Oct. 31,
2022 /PRNewswire/ --
- 3Q sales were $1.29 billion, a 2%
decrease vs 3Q21
- 3Q EBIT of $113 million, down
$31 million vs 3Q21
- 3Q EPS of $.52, a decrease of
$.19 vs 3Q21
- 2022 guidance unchanged from October
10 announcement: sales of $5.1–$5.2 billion; EPS of $2.30–$2.45
Diversified manufacturer Leggett & Platt reported third
quarter sales of $1.29 billion, a
2% decrease versus third quarter last year.
- Organic sales1 were down 3%
-
- Volume was down 8%, primarily from continued demand softness in
residential end markets, partially offset by growth in automotive
and industrial end markets
- Raw material-related selling price increases added 8% to
sales
- Currency impact decreased sales 3%
- Previously announced Hydraulic Cylinders and Textile
acquisitions completed in August, net of small divestitures, added
1% to sales
Third quarter EBIT was $113
million, down $31 million from
third quarter 2021.
- EBIT decreased primarily from lower volume, lower overhead
absorption from reduced production, and operational inefficiencies
in Specialty Foam, partially offset by metal margin expansion
- EBIT margin was 8.7%, down from 10.9% in the third quarter of
2021
Third quarter EPS was $.52. EPS decreased $.19 versus third quarter 2021 primarily
reflecting lower EBIT.
CEO COMMENTS
President and CEO Mitch Dolloff commented, "The current global
economic environment and its effect on the consumer negatively
impacted our third quarter results. As anticipated, we continue to
experience demand and margin recovery in our Specialized Products
segment. The U.S. bedding market remains fairly stable but at
relatively weak levels, and we began to see slowing in other
markets such as European bedding, home furniture, work furniture,
and steel. As a result of these lower demand levels and the
increasingly challenging macroeconomic environment, we lowered our
full year guidance on October
10th.
"Third quarter earnings per share were slightly better than
expected primarily due to incentive compensation adjustments. At
the midpoint of guidance, fourth quarter is now expected to be
slightly lower than third quarter primarily due to further
reductions in steel rod production in response to the slowing steel
market.
"We continue to focus on things we can control and are taking
action to mitigate the impact of these challenges by aligning
costs, production levels, and inventory with demand; evaluating
near-term opportunities with our customers and working with them on
new product developments; and continuing to build out our existing
businesses through acquisitions. Our strong balance sheet and cash
flow give us confidence in our ability to navigate challenging
markets while investing in long-term opportunities."
DEBT, CASH FLOW, AND LIQUIDITY
- Net Debt2 was 2.63x trailing 12-month
adjusted EBITDA2
- Operating cash flow was $65
million in the third quarter, an increase of $15 million versus third quarter 2021, reflecting
a smaller use of working capital partially offset by lower
earnings
- Capital expenditures were $25
million
- Total liquidity was $1.0
billion
DIVIDEND
- In August, Leggett & Platt's Board of Directors declared a
$.44 per share third quarter
dividend, two cents higher than last
year's third quarter dividend
- At an annual indicated dividend of $1.76 per share, the yield is 5.3% based upon
Friday's closing stock price of $33.42 per share
STOCK REPURCHASES
- Repurchased .1 million shares at an average price of
$38.42
- Issued .05 million shares through employee benefit plans
- Shares outstanding at the end of the third quarter were 132.6
million
2022 GUIDANCE
- Full year 2022 sales and EPS guidance unchanged from
October 10 announcement
- Sales are expected to be $5.1–$5.2 billion, roughly flat to +2% versus
2021
-
- Volume is expected to be down high single digits:
-
- Down mid-teens in Bedding Products Segment
- Up low double digits in Specialized Products Segment
- Down low single digits in Furniture, Flooring & Textile
Products Segment
- Raw material-related price increases, net of currency impact,
expected to mostly offset volume declines
- Acquisitions, net of small divestitures, expected to add ~1% to
sales
- EPS is expected to be $2.30–$2.45
- Based on this framework, EBIT margin should be 9.5% to
10.0%
- Additional expectations:
-
- Depreciation and amortization $180
million
- Net interest expense $80
million
- Effective tax rate 23%
- Operating cash flow $400–$450 million
- Capital expenditures $115
million
- Dividends $230 million
- Fully diluted shares 137 million
- Implied 4Q Guidance:
-
- Sales: $1.15–$1.25 billion
- EPS: $.42–$.57
SEGMENT RESULTS – Third Quarter 2022 (versus 3Q
2021)
Bedding Products –
- Trade sales decreased 12%
-
- Volume decreased 20% from continued demand softness in U.S. and
European bedding markets partially offset by trade sales growth in
our Steel Rod and Drawn Wire businesses
- Raw material-related selling price increases added 9%
- Currency impact decreased sales 1%
- EBIT decreased $37 million,
primarily from lower volume, lower overhead absorption as
production and inventory levels were adjusted to meet reduced
demand, and operational inefficiencies in Specialty Foam. These
decreases were partially offset by higher metal margin.
Specialized Products –
- Trade sales increased 24%
-
- Volume was up 22%, driven by sales growth in Automotive,
Aerospace, and Hydraulic Cylinders
- Raw material-related price increases added 5%
- Currency impact decreased sales 8%
- Hydraulic Cylinders acquisition completed on August 26 added 5% to sales growth
- EBIT increased $9 million,
primarily from higher volume partially offset by currency impact,
higher raw material costs, and labor inefficiencies
Furniture, Flooring & Textile Products –
- Trade sales were flat
-
- Volume was down 6% with declines in Home Furniture, Fabric
Converting, and Flooring partially offset by growth in Geo
Components and Work Furniture
- Raw material-related selling price increases added 7%
- Currency impact decreased sales 1%
- EBIT decreased $3 million,
primarily from lower volume partially offset by pricing
discipline
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, November 1. The webcast can be accessed
from Leggett's website. The dial-in number is (201) 689-8341; there
is no passcode.
Fourth quarter results will be released after the
market closes on Monday, February 6,
2023, 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 over 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 the
amount of the Company's forecasted 2022 full-year volume growth;
acquisition sales growth; sales, EPS, capital expenditures;
depreciation and amortization; net interest expense; fully diluted
shares; operating cash flow; EBIT margin; effective tax rate;
amount of dividends; raw material related price increases (net of
currency impact); volume in each of the Company's segments; and
implied fourth quarter 2022 sales and EPS. 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, liquidity,
margins, cash flow, costs, and financial condition caused by: the
Russian invasion of Ukraine;
global inflationary impacts; macro-economic impacts; the COVID-19
pandemic; 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 disruptions;
our ability to manage working capital; increases or decreases in
our capital needs, which may vary depending on acquisition or
divestiture activity; our capital expenditures; our ability to
collect trade receivables; 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; 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 breaches; customer 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; 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 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 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 Trade sales excluding
acquisitions/divestitures in the last 12 months
2 Please refer to attached tables for Non-GAAP
Reconciliations
LEGGETT &
PLATT
|
|
Page 5 of 7
|
|
|
|
|
|
October 31,
2022
|
RESULTS OF
OPERATIONS
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
(In millions, except
per share data)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Trade
sales
|
|
$
1,294.4
|
|
$
1,319.2
|
|
(2) %
|
|
$
3,950.9
|
|
$
3,739.7
|
|
6 %
|
Cost of goods
sold
|
|
1,063.9
|
|
1,063.1
|
|
|
|
3,184.7
|
|
2,966.8
|
|
|
Gross
profit
|
|
230.5
|
|
256.1
|
|
(10) %
|
|
766.2
|
|
772.9
|
|
(1) %
|
Selling &
administrative expenses
|
|
100.4
|
|
103.6
|
|
(3) %
|
|
317.5
|
|
322.5
|
|
(2) %
|
Amortization
|
|
16.6
|
|
17.8
|
|
|
|
50.0
|
|
51.6
|
|
|
Other expense (income),
net
|
|
0.3
|
|
(9.5)
|
|
|
|
4.9
|
|
(45.0)
|
|
|
Earnings
before interest and taxes
|
|
113.2
|
|
144.2
|
|
(21) %
|
|
393.8
|
`
|
443.8
|
|
(11) %
|
Net interest
expense
|
|
19.7
|
|
18.4
|
|
|
|
59.2
|
|
55.5
|
|
|
Earnings
before income taxes
|
|
93.5
|
|
125.8
|
|
|
|
334.6
|
|
388.3
|
|
|
Income
taxes
|
|
22.0
|
|
28.6
|
|
|
|
77.5
|
|
91.3
|
|
|
Net
earnings
|
|
71.5
|
|
97.2
|
|
|
|
257.1
|
|
297.0
|
|
|
Less net income from
non-controlling interest
|
|
(0.1)
|
|
-
|
|
|
|
(0.1)
|
|
(0.1)
|
|
|
Net
Earnings Attributable to L&P
|
|
$
71.4
|
|
$
97.2
|
|
(27) %
|
|
$ 257.0
|
|
$ 296.9
|
|
(13) %
|
Earnings per diluted
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
|
$ 0.52
|
|
$ 0.71
|
|
(27) %
|
|
$ 1.88
|
|
$ 2.17
|
|
(13) %
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
132.6
|
|
133.4
|
|
(0.6) %
|
|
132.6
|
|
133.4
|
|
(0.6) %
|
Basic
(average for period)
|
|
135.7
|
|
136.4
|
|
|
|
136.2
|
|
136.2
|
|
|
Diluted
(average for period)
|
|
136.1
|
|
136.9
|
|
(0.6) %
|
|
136.6
|
|
136.7
|
|
(0.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Net earnings
|
|
$ 71.5
|
|
$ 97.2
|
|
|
|
$ 257.1
|
|
$ 297.0
|
|
|
Depreciation and
amortization
|
|
44.1
|
|
46.6
|
|
|
|
134.3
|
|
140.8
|
|
|
Working capital
decrease (increase)
|
|
(44.8)
|
|
(104.4)
|
|
|
|
(214.9)
|
|
(367.9)
|
|
|
Impairments
|
|
-
|
|
-
|
|
|
|
-
|
|
-
|
|
|
Other operating
activities
|
|
(5.3)
|
|
10.7
|
|
|
|
17.8
|
|
10.5
|
|
|
Net
Cash from Operating Activities
|
|
$
65.5
|
|
$
50.1
|
|
31 %
|
|
$ 194.3
|
|
$
80.4
|
|
142 %
|
Additions to
PP&E
|
|
(24.7)
|
|
(26.8)
|
|
|
|
(65.5)
|
|
(75.8)
|
|
|
Purchase of companies,
net of cash
|
|
(62.5)
|
|
(0.4)
|
|
|
|
(62.5)
|
|
(152.3)
|
|
|
Proceeds from business
and asset sales
|
|
0.3
|
|
7.7
|
|
|
|
3.0
|
|
38.6
|
|
|
Dividends
paid
|
|
(58.7)
|
|
(56.0)
|
|
|
|
(170.8)
|
|
(162.3)
|
|
|
Repurchase of common
stock, net
|
|
(3.4)
|
|
0.4
|
|
|
|
(60.3)
|
|
(6.6)
|
|
|
Additions (payments) to
debt, net
|
|
50.5
|
|
33.6
|
|
|
|
52.9
|
|
164.9
|
|
|
Other
|
|
(10.7)
|
|
(5.5)
|
|
|
|
(26.6)
|
|
(1.1)
|
|
|
Increase (Decrease) in Cash & Equivalents
|
|
$
(43.7)
|
|
$
3.1
|
|
|
|
$
(135.5)
|
|
$
(114.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
Sep
30,
|
|
Dec
31,
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$ 226.2
|
|
$ 361.7
|
|
|
|
|
|
|
|
|
Receivables
|
|
730.3
|
|
651.5
|
|
|
|
|
|
|
|
|
Inventories
|
|
976.0
|
|
993.2
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
68.5
|
|
58.9
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
2,001.0
|
|
2,065.3
|
|
(3) %
|
|
|
|
|
|
|
Net fixed
assets
|
|
741.2
|
|
781.5
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
190.8
|
|
192.6
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,449.6
|
|
1,449.6
|
|
|
|
|
|
|
|
|
Intangible assets and
deferred costs, both at net
|
|
792.6
|
|
818.3
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
5,175.2
|
|
$
5,307.3
|
|
(2) %
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$ 512.5
|
|
$ 613.8
|
|
|
|
|
|
|
|
|
Current debt
maturities
|
|
7.4
|
|
300.6
|
|
|
|
|
|
|
|
|
Current operating lease
liabilities
|
|
44.7
|
|
44.5
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
|
400.4
|
|
376.8
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
965.0
|
|
1,335.7
|
|
(28) %
|
|
|
|
|
|
|
Long-term
debt
|
|
2,133.6
|
|
1,789.7
|
|
19 %
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
151.1
|
|
153.0
|
|
|
|
|
|
|
|
|
Deferred taxes and
other liabilities
|
|
362.7
|
|
380.3
|
|
|
|
|
|
|
|
|
Equity
|
|
1,562.8
|
|
1,648.6
|
|
(5) %
|
|
|
|
|
|
|
Total
Capitalization
|
|
4,210.2
|
|
3,971.6
|
|
6 %
|
|
|
|
|
|
|
TOTAL
LIABILITIES & EQUITY
|
|
$
5,175.2
|
|
$
5,307.3
|
|
(2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEGGETT &
PLATT
|
|
Page 6 of 7
|
|
|
|
|
|
October 31,
2022
|
SEGMENT RESULTS
1
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 582.0
|
|
$ 664.1
|
|
(12) %
|
|
$
1,833.9
|
|
$
1,808.6
|
|
1 %
|
EBIT
|
|
43.9
|
|
81.1
|
|
(46) %
|
|
189.2
|
|
245.3
|
|
(23) %
|
EBIT
margin
|
|
7.5 %
|
|
12.2 %
|
|
-470
bps
|
2
|
10.3 %
|
|
13.6 %
|
|
-330
bps
|
Gain on sale of real
estate
|
|
-
|
|
-
|
|
|
|
-
|
|
(28.2)
|
|
|
Adjusted
EBIT
|
|
43.9
|
|
81.1
|
|
(46) %
|
|
189.2
|
|
217.1
|
|
(13) %
|
Adjusted EBIT
margin
|
|
7.5 %
|
|
12.2 %
|
|
-470
bps
|
|
10.3 %
|
|
12.0 %
|
|
-170
bps
|
Depreciation and
amortization
|
|
25.7
|
|
27.3
|
|
|
|
78.1
|
|
79.8
|
|
|
Adjusted
EBITDA
|
|
69.6
|
|
108.4
|
|
(36) %
|
|
267.3
|
|
296.9
|
|
(10) %
|
Adjusted EBITDA
margin
|
|
12.0 %
|
|
16.3 %
|
|
-430
bps
|
|
14.6 %
|
|
16.4 %
|
|
-180
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 291.3
|
|
$ 235.6
|
|
24 %
|
|
$ 815.5
|
|
$ 734.9
|
|
11 %
|
EBIT
|
|
31.3
|
|
22.4
|
|
40 %
|
|
73.0
|
|
85.0
|
|
(14) %
|
EBIT
margin
|
|
10.7 %
|
|
9.5 %
|
|
120
bps
|
|
9.0 %
|
|
11.6 %
|
|
-260
bps
|
Depreciation and
amortization
|
|
9.7
|
|
11.7
|
|
|
|
30.4
|
|
35.0
|
|
|
Adjusted
EBITDA
|
|
41.0
|
|
34.1
|
|
20 %
|
|
103.4
|
|
120.0
|
|
(14) %
|
Adjusted EBITDA
margin
|
|
14.1 %
|
|
14.5 %
|
|
-40
bps
|
|
12.7 %
|
|
16.3 %
|
|
-360
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture, Flooring
& Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 421.1
|
|
$ 419.5
|
|
— %
|
|
$
1,301.5
|
|
$
1,196.2
|
|
9 %
|
EBIT
|
|
38.3
|
|
41.1
|
|
(7) %
|
|
132.3
|
|
114.1
|
|
16 %
|
EBIT margin
|
|
9.1 %
|
|
9.8 %
|
|
-70
bps
|
|
10.2 %
|
|
9.5 %
|
|
70
bps
|
Depreciation and
amortization
|
|
5.7
|
|
6.0
|
|
|
|
17.5
|
|
18.1
|
|
|
Adjusted
EBITDA
|
|
44.0
|
|
47.1
|
|
(7) %
|
|
149.8
|
|
132.2
|
|
13 %
|
Adjusted EBITDA
margin
|
|
10.4 %
|
|
11.2 %
|
|
-80
bps
|
|
11.5 %
|
|
11.1 %
|
|
40
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$
1,294.4
|
|
$
1,319.2
|
|
(2) %
|
|
$
3,950.9
|
|
$
3,739.7
|
|
6 %
|
EBIT -
segments
|
|
113.5
|
|
144.6
|
|
(22) %
|
|
394.5
|
|
444.4
|
|
(11) %
|
Intersegment
eliminations and other
|
|
(0.3)
|
|
(0.4)
|
|
|
|
(0.7)
|
|
(0.6)
|
|
|
EBIT
|
|
113.2
|
|
144.2
|
|
(21) %
|
|
393.8
|
|
443.8
|
|
(11) %
|
EBIT
margin
|
|
8.7 %
|
|
10.9 %
|
|
-220
bps
|
|
10.0 %
|
|
11.9 %
|
|
-190
bps
|
Gain on
sale of real estate 3
|
|
-
|
|
-
|
|
|
|
-
|
|
(28.2)
|
|
|
Adjusted EBIT
3
|
|
113.2
|
|
144.2
|
|
(21) %
|
|
393.8
|
|
415.6
|
|
(5) %
|
Adjusted EBIT margin
3
|
|
8.7 %
|
|
10.9 %
|
|
-220
bps
|
|
10.0 %
|
|
11.1 %
|
|
-110
bps
|
Depreciation and
amortization - segments
|
|
41.1
|
|
45.0
|
|
|
|
126.0
|
|
132.9
|
|
|
Depreciation and
amortization - unallocated 4
|
|
3.0
|
|
1.6
|
|
|
|
8.3
|
|
7.9
|
|
|
Adjusted EBITDA
3
|
|
$ 157.3
|
|
$ 190.8
|
|
(18) %
|
|
$ 528.1
|
|
$ 556.4
|
|
(5) %
|
Adjusted EBITDA
margin
|
|
12.2 %
|
|
14.5 %
|
|
-230
bps
|
|
13.4 %
|
|
14.9 %
|
|
-150
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX
QUARTERS
|
|
2021
|
|
2022
|
Selected Figures (In
Millions)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
Trade sales
|
|
1,269.6
|
|
1,319.2
|
|
1,332.9
|
|
1,322.3
|
|
1,334.2
|
|
1,294.4
|
Sales growth (vs. prior
year)
|
|
50 %
|
|
9 %
|
|
13 %
|
|
15 %
|
|
5 %
|
|
(2) %
|
Volume growth (same
locations vs. prior year)
|
|
31 %
|
|
(6) %
|
|
(5) %
|
|
(4) %
|
|
(6) %
|
|
(8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
3
|
|
143.7
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
Cash from
operations
|
|
40.9
|
|
50.1
|
|
190.9
|
|
39.0
|
|
89.8
|
|
65.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 3
|
|
772.9
|
|
760.8
|
|
755.1
|
|
764.6
|
|
760.3
|
|
726.8
|
(Long-term debt +
current maturities - cash and equivalents) / adj. EBITDA
3,5
|
|
2.32
|
|
2.41
|
|
2.29
|
|
2.32
|
|
2.39
|
|
2.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (Vs.
Prior Year) 6
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
Bedding
Products
|
|
50 %
|
|
12 %
|
|
15 %
|
|
16 %
|
|
— %
|
|
(12) %
|
Specialized
Products
|
|
69 %
|
|
(4) %
|
|
(4) %
|
|
2 %
|
|
8 %
|
|
19 %
|
Furniture, Flooring
& Textile Products
|
|
43 %
|
|
12 %
|
|
17 %
|
|
17 %
|
|
10 %
|
|
— %
|
Overall
|
|
50 %
|
|
8 %
|
|
11 %
|
|
13 %
|
|
5 %
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 31,
2022
|
RECONCILIATION OF
REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
7
|
|
2021
|
|
2022
|
(In millions, except
per share data)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
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
|
|
136.8
|
|
136.9
|
|
137.0
|
|
136.9
|
|
136.7
|
|
136.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Impact of
Non-GAAP Adjustments
|
|
(0.16)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT,
EBITDA, Margin, and EPS 7
|
|
2021
|
|
2022
|
(In millions, except
per share data)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
Trade sales
|
|
1,269.6
|
|
1,319.2
|
|
1,332.9
|
|
1,322.3
|
|
1,334.2
|
|
1,294.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
171.9
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
(28.2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted
EBIT
|
|
143.7
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin
|
|
13.5 %
|
|
10.9 %
|
|
11.4 %
|
|
10.4 %
|
|
10.7 %
|
|
8.7 %
|
Adjusted EBIT
Margin
|
|
11.3 %
|
|
10.9 %
|
|
11.4 %
|
|
10.4 %
|
|
10.7 %
|
|
8.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
171.9
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
Depreciation and
amortization
|
|
48.1
|
|
46.6
|
|
46.5
|
|
45.7
|
|
44.5
|
|
44.1
|
EBITDA
|
|
220.0
|
|
190.8
|
|
198.7
|
|
183.3
|
|
187.5
|
|
157.3
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
(28.2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted
EBITDA
|
|
191.8
|
|
190.8
|
|
198.7
|
|
183.3
|
|
187.5
|
|
157.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
17.3 %
|
|
14.5 %
|
|
14.9 %
|
|
13.9 %
|
|
14.1 %
|
|
12.2 %
|
Adjusted EBITDA
Margin
|
|
15.1 %
|
|
14.5 %
|
|
14.9 %
|
|
13.9 %
|
|
14.1 %
|
|
12.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
0.82
|
|
0.71
|
|
0.77
|
|
0.66
|
|
0.70
|
|
0.52
|
EPS impact of non-GAAP
adjustments
|
|
(0.16)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted
EPS
|
|
0.66
|
|
0.71
|
|
0.77
|
|
0.66
|
|
0.70
|
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA 9
|
|
2021
|
|
2022
|
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
Total debt
|
|
2,025.7
|
|
2,066.0
|
|
2,090.3
|
|
2,104.4
|
|
2,090.8
|
|
2,141.0
|
Less: cash and
equivalents
|
|
(231.6)
|
|
(234.7)
|
|
(361.7)
|
|
(327.3)
|
|
(269.9)
|
|
(226.2)
|
Net debt
|
|
1,794.1
|
|
1,831.3
|
|
1,728.6
|
|
1,777.1
|
|
1,820.9
|
|
1,914.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
772.9
|
|
760.8
|
|
755.1
|
|
764.6
|
|
760.3
|
|
726.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / Leggett
Reported 12-month Adjusted EBITDA
|
|
2.32
|
|
2.41
|
|
2.29
|
|
2.32
|
|
2.39
|
|
2.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
![Leggett & Platt logo Leggett & Platt logo](https://mma.prnewswire.com/media/361284/Leggett__Platt_Logo.jpg)
View original content to download
multimedia:https://www.prnewswire.com/news-releases/leggett--platt-reports-3q-results-301663501.html
SOURCE Leggett & Platt