CARTHAGE, Mo., Feb. 6, 2023
/PRNewswire/ --
- 4Q sales were $1.2 billion, a 10%
decrease vs 4Q21
- 4Q EPS was $.39, a decrease of
$.38 vs 4Q21
- 2022 sales were a record1 $5.15 billion, a 1% increase vs 2021
- 2022 EPS was $2.27, a decrease of
$.67 vs 2021 EPS and a decrease of
$.51 vs 2021 adjusted2
EPS
- 2022 cash flow from operations was $441
million, a 63% increase vs 2021
- 2023 guidance: sales of $4.8–$5.2
billion and EPS of $1.50–$1.90
President and CEO Mitch Dolloff
commented, "Leggett & Platt's diverse portfolio of businesses,
strong cash discipline, and the ingenuity and agility of our
employees helped deliver solid results in 2022 despite weak demand
in residential end markets. As we moved through the year, the
dynamic macroeconomic and geopolitical environment pressured our
markets and affected our results. We anticipate 2023 to be a
challenging year driven by continued economic uncertainty.
"We are focused on improving the things that we can control and
continuing to mitigate the impacts of market challenges on our
business. We are working with our customers on new product
opportunities, continuing our focus on improving operating
efficiency, and driving strong cash management. Our financial
strength gives us confidence in our ability to successfully
navigate challenging markets while investing in long-term
opportunities.
"Finally, I would like to thank our dedicated employees for
continually making Leggett & Platt a better company. Your
collaboration, dedication, and commitment to our values helped us
navigate the many recent challenges and obstacles and will help us
to capitalize on opportunities in the future."
FOURTH QUARTER RESULTS
Fourth quarter 2022 sales were $1.2
billion, a 10% decrease versus fourth quarter 2021
- Organic sales3 were down 12%
-
- Volume was down 12%, primarily from continued demand softness
in residential end markets, partially offset by growth in our
Automotive, Aerospace, and Hydraulic Cylinders businesses
- Negative currency impact of 2% was offset by raw
material-related selling price increases of 2%
- Acquisitions, net of divestitures, added 2% to sales
Fourth quarter EBIT was $91
million, down $61 million or
40% from fourth quarter 2021
- EBIT declined primarily from lower volume and lower overhead
absorption as we intentionally cut production in our Steel Rod
business below demand to reduce inventory levels. These declines
were partially offset by metal margin expansion.
- As a result of these impacts and inflation, EBIT margin was
7.6%, down from 11.4% in the fourth quarter of 2021
Fourth quarter EPS was $.39, a $.38
decrease versus fourth quarter 2021 primarily from lower EBIT,
higher tax rate ($.02/share), and
higher interest expense ($.02/share).
FULL YEAR RESULTS
2022 sales a record1 $5.15
billion, a 1% increase versus 2021
- Organic3 sales were flat
-
- Volume down 7% from demand softness in residential end markets,
partially offset by growth in automotive and industrial end
markets
- Raw material-related selling price increases added 9%
- Currency impact decreased sales 2%
- Acquisitions, net of small divestitures, added 1% to sales
2022 EBIT was $485
million, down $111 million or
19% from 2021, and down $83 million
or 15% versus 2021 adjusted2 EBIT.
- EBIT decreased primarily from lower volume, lower overhead
absorption from reduced production, operational inefficiencies in
Specialty Foam, and higher raw material and transportation costs
and operational inefficiencies in Automotive. These decreases were
partially offset by metal margin expansion in our Steel Rod
business and pricing discipline in the Furniture, Flooring &
Textile segment.
-
- 2021 adjustment was a $28 million
gain on the sale of real estate associated with our exited Fashion
Bed business
- EBIT margin was 9.4%, down from 2021 EBIT margin of 11.7% and
adjusted2 EBIT margin of 11.2%
2022 EPS was $2.27, a
$.67 decrease versus 2021 EPS of
$2.94 and a $.51 decrease versus adjusted2 EPS of
$2.78 primarily from lower EBIT and
higher interest expense ($.04/share).
2022 DEBT, CASH FLOW, AND LIQUIDITY
- Net debt2 was 2.66x trailing 12-month
adjusted EBITDA2 at year-end
- Operating cash flow was $441
million, up from $271 million
in 2021
- Capital expenditures were $100
million
- Total liquidity was $1.0
billion at year-end
DIVIDEND
- Dividends were $1.74 per share in
2022, up $.08 from $1.66 per share in 2021
- In November, Leggett & Platt's Board of Directors declared
a $.44 per share fourth quarter
dividend, two cents higher than last
year's fourth quarter dividend
- At an annual indicated dividend of $1.76 per share, the yield is 4.7% based upon
Friday's closing stock price of $37.23 per share
2022 STOCK REPURCHASES
- Repurchased 1.7 million shares at an average price of
$35.94
- Issued .9 million shares through employee benefit plans
- Shares outstanding at the end of the year were 132.6
million
2023 GUIDANCE
- Sales are expected to be $4.8–$5.2 billion, -7% to +1% versus 2022
-
- Volume at the midpoint expected to be down low single
digits:
-
- Down low single digits in Bedding Products Segment
- Up high single digits in Specialized Products Segment
- Down low single 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 ~3% to
sales
- EPS is expected to be $1.50–$1.90
-
- Earnings at the midpoint primarily reflects:
-
- Lower metal margins in our Steel Rod business
- Lower volume in some businesses
- Moderate pricing pressure from deflation
- 1Q 2023 earnings expected to be down meaningfully vs 4Q 2022,
primarily due to:
-
- Timing of performance-based compensation accruals
- Normal seasonality in some of our businesses
- Based on this framework, 2023 EBIT margin is expected to be
7.5% to 8.0%
- Additional expectations:
-
- Depreciation and amortization $200
million
- Net interest expense $85
million
- Effective tax rate 24%
- Fully diluted shares 137 million
- Operating cash flow $450–$500 million
- Capital expenditures $100
million
- Dividends $240 million
- Minimal acquisitions and share repurchases
SEGMENT RESULTS – Fourth Quarter 2022 (versus 4Q
2021)
Bedding Products –
- Trade sales decreased 19%
-
- Volume decreased 19% from continued demand softness in U.S. and
European bedding markets and lower demand in our Steel Rod and
Drawn Wire businesses
- Currency impact of 1% offset by raw material-related selling
price increases of 1%
- EBIT decreased $46 million,
primarily from lower volume and lower overhead absorption as we
intentionally cut production in our Steel Rod business below demand
to reduce inventory levels. These decreases were partially offset
by metal margin expansion.
Specialized Products –
- Trade sales increased 15%
-
- Volume increased 10% from growth across the segment
- Raw material-related selling price increases added 4%
- Currency impact decreased sales 9%
- Hydraulic Cylinders acquisition added 10%
- EBIT decreased $5 million,
primarily from currency impact and higher raw material and labor
costs, partially offset by higher volume
Furniture, Flooring & Textile Products –
- Trade sales decreased 12%
-
- Volume decreased 14%, primarily from declines in Home
Furniture, Fabric Converting, and Work Furniture
- Raw material-related selling price increases added 2%
- Currency impact decreased sales 1%
- Textiles acquisitions added 1%
- EBIT decreased $13 million,
primarily from lower volume partially offset by pricing
discipline
SEGMENT RESULTS – Full Year 2022 (versus
2021)
Bedding Products –
- Trade sales decreased 4%
-
- Volume decreased 16% from 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 12% to
sales
- Currency impact decreased sales by 1%
- Kayfoam acquisition, net of divestitures of small operations in
Drawn Wire and International Bedding, added 1%
- EBIT decreased $102 million,
primarily from lower volume, lower overhead absorption as
production and inventories were adjusted to meet reduced demand,
operating inefficiencies in Specialty Foam, and the non-recurrence
of prior year gain from sale of real estate associated with exited
Fashion Bed business ($28 million).
These decreases were partially offset by higher metal margin.
Specialized Products –
- Trade sales increased 12%
-
- Volume increased 11% with growth across the segment
- Raw material-related selling price increases added 3%
- Currency impact decreased sales 6%
- Hydraulic Cylinders acquisition completed in August 2022 added 4%
- EBIT decreased $17 million,
primarily from higher raw material and transportation costs,
operational inefficiencies and related premium freight costs in a
North American Automotive facility primarily in the first half of
the year, and currency impact. These decreases were partially
offset by higher volume.
Furniture, Flooring & Textile Products –
- Trade sales increased 3%
-
- Volume decreased 6% from declines in Home Furniture, Flooring,
and Fabric Converting, partially offset by growth in Work
Furniture
- Raw material-related selling price increases added 10%
- Currency impact decreased sales 1%
- EBIT increased $6 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, February 7. The webcast can be accessed
from Leggett's website. The dial-in number is (201) 689-8341; there
is no passcode.
First quarter results will be released after the
market closes on Monday, May 1, 2023,
with a conference call the next morning.
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 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 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 decreases; currency
impact; volume in each of the Company's segments; and the
description of 2023 as another challenging year. 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 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 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 Record is 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
|
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Page 6 of 8
|
|
|
|
|
|
February 6,
2023
|
|
RESULTS OF
OPERATIONS
|
|
FOURTH
QUARTER
|
|
YEAR TO
DATE
|
|
(In millions, except
per share data)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
|
Trade
sales
|
|
$
1,195.8
|
|
$
1,332.9
|
|
(10) %
|
|
$
5,146.7
|
|
$
5,072.6
|
|
1 %
|
|
Cost of goods
sold
|
|
985.2
|
|
1,067.5
|
|
|
|
4,169.9
|
|
4,034.3
|
|
|
|
Gross
profit
|
|
210.6
|
|
265.4
|
|
(21) %
|
|
976.8
|
|
1,038.3
|
|
(6) %
|
|
Selling &
administrative expenses
|
|
109.8
|
|
99.6
|
|
10 %
|
|
427.3
|
|
422.1
|
|
1 %
|
|
Amortization
|
|
16.8
|
|
15.9
|
|
|
|
66.8
|
|
67.5
|
|
|
|
Other expense (income),
net
|
|
(7.2)
|
|
(2.3)
|
|
|
|
(2.3)
|
|
(47.3)
|
|
|
|
Earnings
before interest and taxes
|
|
91.2
|
|
152.2
|
|
(40) %
|
|
485.0
|
`
|
596.0
|
|
(19) %
|
|
Net interest
expense
|
|
22.2
|
|
18.4
|
|
|
|
81.4
|
|
73.9
|
|
|
|
Earnings
before income taxes
|
|
69.0
|
|
133.8
|
|
|
|
403.6
|
|
522.1
|
|
|
|
Income
taxes
|
|
16.2
|
|
28.2
|
|
|
|
93.7
|
|
119.5
|
|
|
|
Net
earnings
|
|
52.8
|
|
105.6
|
|
|
|
309.9
|
|
402.6
|
|
|
|
Less net income from
noncontrolling interest
|
|
—
|
|
(0.1)
|
|
|
|
(0.1)
|
|
(0.2)
|
|
|
|
Net
Earnings Attributable to L&P
|
|
$
52.8
|
|
$ 105.5
|
|
(50) %
|
|
$ 309.8
|
|
$ 402.4
|
|
(23) %
|
|
Earnings per diluted
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
|
$ 0.39
|
|
$ 0.77
|
|
(49) %
|
|
$ 2.27
|
|
$ 2.94
|
|
(23) %
|
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
132.6
|
|
133.4
|
|
(.6) %
|
|
132.6
|
|
133.4
|
|
(.6) %
|
|
Basic
(average for period)
|
|
135.8
|
|
136.5
|
|
|
|
136.1
|
|
136.3
|
|
|
|
Diluted
(average for period)
|
|
136.1
|
|
137.0
|
|
(.7) %
|
|
136.5
|
|
136.7
|
|
(.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW
|
|
FOURTH
QUARTER
|
|
YEAR TO
DATE
|
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
|
Net earnings
|
|
$ 52.8
|
|
$ 105.6
|
|
|
|
$ 309.9
|
|
$ 402.6
|
|
|
|
Depreciation and
amortization
|
|
45.5
|
|
46.5
|
|
|
|
179.8
|
|
187.3
|
|
|
|
Working capital
decrease (increase)
|
|
136.9
|
|
30.3
|
|
|
|
(78.0)
|
|
(337.6)
|
|
|
|
Impairments
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
Other operating
activities
|
|
11.9
|
|
8.5
|
|
|
|
29.7
|
|
19.0
|
|
|
|
Net
Cash from Operating Activities
|
|
$ 247.1
|
|
$ 190.9
|
|
29 %
|
|
$ 441.4
|
|
$ 271.3
|
|
63 %
|
|
Additions to
PP&E
|
|
(34.8)
|
|
(30.8)
|
|
|
|
(100.3)
|
|
(106.6)
|
|
|
|
Purchase of companies,
net of cash
|
|
(20.8)
|
|
(0.3)
|
|
|
|
(83.3)
|
|
(152.6)
|
|
|
|
Proceeds from business
and asset sales
|
|
1.2
|
|
—
|
|
|
|
4.2
|
|
38.5
|
|
|
|
Dividends
paid
|
|
(58.4)
|
|
(56.0)
|
|
|
|
(229.2)
|
|
(218.3)
|
|
|
|
Repurchase of common
stock, net
|
|
—
|
|
0.3
|
|
|
|
(60.3)
|
|
(6.3)
|
|
|
|
Additions (payments) to
debt, net
|
|
(47.9)
|
|
20.0
|
|
|
|
5.0
|
|
184.9
|
|
|
|
Other
|
|
3.9
|
|
2.9
|
|
|
|
(22.7)
|
|
1.9
|
|
|
|
Increase (Decrease) in Cash & Equivalents
|
|
$
90.3
|
|
$ 127.0
|
|
|
|
$
(45.2)
|
|
$
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
Dec
31,
|
|
Dec
31,
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$ 316.5
|
|
$ 361.7
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
675.0
|
|
651.5
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
907.5
|
|
993.2
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
59.0
|
|
58.9
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
1,958.0
|
|
2,065.3
|
|
(5) %
|
|
|
|
|
|
|
|
Net fixed
assets
|
|
772.4
|
|
781.5
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
195.0
|
|
192.6
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,474.4
|
|
1,449.6
|
|
|
|
|
|
|
|
|
|
Intangible assets and
deferred costs, both at net
|
|
786.3
|
|
818.3
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
5,186.1
|
|
$
5,307.3
|
|
(2) %
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$ 518.4
|
|
$ 613.8
|
|
|
|
|
|
|
|
|
|
Current debt
maturities
|
|
9.4
|
|
300.6
|
|
|
|
|
|
|
|
|
|
Current operating lease
liabilities
|
|
49.5
|
|
44.5
|
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
|
390.8
|
|
376.8
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
968.1
|
|
1,335.7
|
|
(28) %
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,074.2
|
|
1,789.7
|
|
16 %
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
153.6
|
|
153.0
|
|
|
|
|
|
|
|
|
|
Deferred taxes and
other liabilities
|
|
348.8
|
|
380.3
|
|
|
|
|
|
|
|
|
|
Equity
|
|
1,641.4
|
|
1,648.6
|
|
— %
|
|
|
|
|
|
|
|
Total
Capitalization
|
|
4,218.0
|
|
3,971.6
|
|
6 %
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES & EQUITY
|
|
$
5,186.1
|
|
$
5,307.3
|
|
(2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEGGETT &
PLATT
|
|
Page 7 of 8
|
|
|
|
|
|
|
February 6,
2023
|
|
SEGMENT RESULTS
1
|
|
FOURTH
QUARTER
|
|
YEAR TO
DATE
|
|
(In
millions)
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 522.4
|
|
$ 647.3
|
|
(19) %
|
|
$
2,356.3
|
|
$
2,455.9
|
|
(4) %
|
|
EBIT
|
|
30.4
|
|
76.0
|
|
(60) %
|
|
219.6
|
|
321.3
|
|
(32) %
|
|
EBIT
margin
|
|
5.8 %
|
|
11.7 %
|
|
-590
bps
|
2
|
9.3 %
|
|
13.1 %
|
|
-380
bps
|
2
|
Gain on sale of real
estate
|
|
—
|
|
—
|
|
|
|
—
|
|
(28.2)
|
|
|
|
Adjusted
EBIT
|
|
30.4
|
|
76.0
|
|
(60) %
|
|
219.6
|
|
293.1
|
|
(25) %
|
|
Adjusted EBIT
margin
|
|
5.8 %
|
|
11.7 %
|
|
-590
bps
|
|
9.3 %
|
|
11.9 %
|
|
-260
bps
|
|
Depreciation and
amortization
|
|
26.0
|
|
27.0
|
|
|
|
104.1
|
|
106.8
|
|
|
|
Adjusted
EBITDA
|
|
56.4
|
|
103.0
|
|
(45) %
|
|
323.7
|
|
399.9
|
|
(19) %
|
|
Adjusted EBITDA
margin
|
|
10.8 %
|
|
15.9 %
|
|
-510
bps
|
|
13.7 %
|
|
16.3 %
|
|
-260
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 302.8
|
|
$ 264.0
|
|
15 %
|
|
$
1,118.3
|
|
$ 998.9
|
|
12 %
|
|
EBIT
|
|
26.4
|
|
30.9
|
|
(15) %
|
|
99.4
|
|
115.9
|
|
(14) %
|
|
EBIT
margin
|
|
8.7 %
|
|
11.7 %
|
|
-300
bps
|
|
8.9 %
|
|
11.6 %
|
|
-270
bps
|
|
Depreciation and
amortization
|
|
10.1
|
|
9.8
|
|
|
|
40.5
|
|
44.8
|
|
|
|
EBITDA
|
|
36.5
|
|
40.7
|
|
(10) %
|
|
139.9
|
|
160.7
|
|
(13) %
|
|
EBITDA
margin
|
|
12.1 %
|
|
15.4 %
|
|
-330
bps
|
|
12.5 %
|
|
16.1 %
|
|
-360
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture, Flooring
& Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$ 370.6
|
|
$ 421.6
|
|
(12) %
|
|
$
1,672.1
|
|
$
1,617.8
|
|
3 %
|
|
EBIT
|
|
32.7
|
|
45.4
|
|
(28) %
|
|
165.0
|
|
159.5
|
|
3 %
|
|
EBIT
margin
|
|
8.8 %
|
|
10.8 %
|
|
-200
bps
|
|
9.9 %
|
|
9.9 %
|
|
—
bps
|
|
Depreciation and
amortization
|
|
5.7
|
|
5.9
|
|
|
|
23.2
|
|
24.0
|
|
|
|
EBITDA
|
|
38.4
|
|
51.3
|
|
(25) %
|
|
188.2
|
|
183.5
|
|
3 %
|
|
EBITDA
margin
|
|
10.4 %
|
|
12.2 %
|
|
-180
bps
|
|
11.3 %
|
|
11.3 %
|
|
—
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$
1,195.8
|
|
$
1,332.9
|
|
(10) %
|
|
$
5,146.7
|
|
$
5,072.6
|
|
1 %
|
|
EBIT -
segments
|
|
89.5
|
|
152.3
|
|
(41) %
|
|
484.0
|
|
596.7
|
|
(19) %
|
|
Intersegment
eliminations and other
|
|
1.7
|
|
(0.1)
|
|
|
|
1.0
|
|
(0.7)
|
|
|
|
EBIT
|
|
91.2
|
|
152.2
|
|
(40) %
|
|
485.0
|
|
596.0
|
|
(19) %
|
|
EBIT
margin
|
|
7.6 %
|
|
11.4 %
|
|
-380
bps
|
|
9.4 %
|
|
11.7 %
|
|
-230
bps
|
|
Gain on
sale of real estate 3
|
|
—
|
|
—
|
|
|
|
—
|
|
(28.2)
|
|
|
|
Adjusted EBIT
3
|
|
91.2
|
|
152.2
|
|
(40) %
|
|
485.0
|
|
567.8
|
|
(15) %
|
|
Adjusted EBIT margin
3
|
|
7.6 %
|
|
11.4 %
|
|
-380
bps
|
|
9.4 %
|
|
11.2 %
|
|
-180
bps
|
|
Depreciation and
amortization - segments
|
|
41.8
|
|
42.7
|
|
|
|
167.8
|
|
175.6
|
|
|
|
Depreciation and
amortization - unallocated 4
|
|
3.7
|
|
3.8
|
|
|
|
12.0
|
|
11.7
|
|
|
|
Adjusted EBITDA
3
|
|
$ 136.7
|
|
$ 198.7
|
|
(31) %
|
|
$ 664.8
|
|
$ 755.1
|
|
(12) %
|
|
Adjusted EBITDA
margin
|
|
11.4 %
|
|
14.9 %
|
|
-350
bps
|
|
12.9 %
|
|
14.9 %
|
|
-200
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX
QUARTERS
|
|
2021
|
|
2022
|
|
Selected Figures (In
Millions)
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
Trade sales
|
|
1,319.2
|
|
1,332.9
|
|
1,322.3
|
|
1,334.2
|
|
1,294.4
|
|
1,195.8
|
|
Sales growth (vs. prior
year)
|
|
9 %
|
|
13 %
|
|
15 %
|
|
5 %
|
|
(2) %
|
|
(10) %
|
|
Volume growth (same
locations vs. prior year)
|
|
(6) %
|
|
(5) %
|
|
(4) %
|
|
(6) %
|
|
(8) %
|
|
(12) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
3
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
|
Cash from
operations
|
|
50.1
|
|
190.9
|
|
39.0
|
|
89.8
|
|
65.5
|
|
247.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 3
|
|
760.8
|
|
755.1
|
|
764.6
|
|
760.3
|
|
726.8
|
|
664.8
|
|
(Long-term debt +
current maturities - cash and equivalents) / adj. EBITDA
3,5
|
|
2.41
|
|
2.29
|
|
2.32
|
|
2.39
|
|
2.63
|
|
2.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (Vs.
Prior Year) 6
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
Bedding
Products
|
|
12 %
|
|
15 %
|
|
16 %
|
|
— %
|
|
(12) %
|
|
(19) %
|
|
Specialized
Products
|
|
(4) %
|
|
(4) %
|
|
2 %
|
|
8 %
|
|
19 %
|
|
5 %
|
|
Furniture, Flooring
& Textile Products
|
|
12 %
|
|
17 %
|
|
17 %
|
|
10 %
|
|
— %
|
|
(13) %
|
|
Overall
|
|
8 %
|
|
11 %
|
|
13 %
|
|
5 %
|
|
(3) %
|
|
(12) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 8 of 8
|
|
|
|
|
|
|
|
|
|
February 6,
2023
|
RECONCILIATION OF
REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
7
|
|
Full
Year
|
|
2021
|
|
2022
|
(In millions, except
per share data)
|
|
2021
|
|
2022
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
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
|
|
136.7
|
|
136.5
|
|
136.9
|
|
137.0
|
|
136.9
|
|
136.7
|
|
136.1
|
|
136.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Impact of
Non-GAAP Adjustments
|
|
(0.16)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT,
EBITDA, Margin, and EPS 7
|
|
Full
Year
|
|
2021
|
|
2022
|
(In millions, except
per share data)
|
|
2021
|
|
2022
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
Trade sales
|
|
5,072.6
|
|
5,146.7
|
|
1,319.2
|
|
1,332.9
|
|
1,322.3
|
|
1,334.2
|
|
1,294.4
|
|
1,195.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
596.0
|
|
485.0
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
Non-GAAP adjustments
(pretax)
|
|
(28.2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted
EBIT
|
|
567.8
|
|
485.0
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin
|
|
11.7 %
|
|
9.4 %
|
|
10.9 %
|
|
11.4 %
|
|
10.4 %
|
|
10.7 %
|
|
8.7 %
|
|
7.6 %
|
Adjusted EBIT
Margin
|
|
11.2 %
|
|
9.4 %
|
|
10.9 %
|
|
11.4 %
|
|
10.4 %
|
|
10.7 %
|
|
8.7 %
|
|
7.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
596.0
|
|
485.0
|
|
144.2
|
|
152.2
|
|
137.6
|
|
143.0
|
|
113.2
|
|
91.2
|
Depreciation and
amortization
|
|
187.3
|
|
179.8
|
|
46.6
|
|
46.5
|
|
45.7
|
|
44.5
|
|
44.1
|
|
45.5
|
EBITDA
|
|
783.3
|
|
664.8
|
|
190.8
|
|
198.7
|
|
183.3
|
|
187.5
|
|
157.3
|
|
136.7
|
Non-GAAP adjustments
(pretax)
|
|
(28.2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted
EBITDA
|
|
755.1
|
|
664.8
|
|
190.8
|
|
198.7
|
|
183.3
|
|
187.5
|
|
157.3
|
|
136.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
15.4 %
|
|
12.9 %
|
|
14.5 %
|
|
14.9 %
|
|
13.9 %
|
|
14.1 %
|
|
12.2 %
|
|
11.4 %
|
Adjusted EBITDA
Margin
|
|
14.9 %
|
|
12.9 %
|
|
14.5 %
|
|
14.9 %
|
|
13.9 %
|
|
14.1 %
|
|
12.2 %
|
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
2.94
|
|
2.27
|
|
0.71
|
|
0.77
|
|
0.66
|
|
0.70
|
|
0.52
|
|
0.39
|
EPS impact of non-GAAP
adjustments
|
|
(0.16)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted
EPS
|
|
2.78
|
|
2.27
|
|
0.71
|
|
0.77
|
|
0.66
|
|
0.70
|
|
0.52
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA 9
|
|
Full
Year
|
|
2021
|
|
2022
|
|
|
2021
|
|
2022
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
Total debt
|
|
2,090.3
|
|
2,083.6
|
|
2,066.0
|
|
2,090.3
|
|
2,104.4
|
|
2,090.8
|
|
2,141.0
|
|
2,083.6
|
Less: cash and
equivalents
|
|
(361.7)
|
|
(316.5)
|
|
(234.7)
|
|
(361.7)
|
|
(327.3)
|
|
(269.9)
|
|
(226.2)
|
|
(316.5)
|
Net debt
|
|
1,728.6
|
|
1,767.1
|
|
1,831.3
|
|
1,728.6
|
|
1,777.1
|
|
1,820.9
|
|
1,914.8
|
|
1,767.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
755.1
|
|
664.8
|
|
760.8
|
|
755.1
|
|
764.6
|
|
760.3
|
|
726.8
|
|
664.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / Leggett
Reported 12-month Adjusted EBITDA
|
|
2.29
|
|
2.66
|
|
2.41
|
|
2.29
|
|
2.32
|
|
2.39
|
|
2.63
|
|
2.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Management and investors use these measures as supplemental
information to assess operational performance.
|
8
The ($28.2) 2021 non-GAAP
adjustment is included in the Other expense (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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View original content to download
multimedia:https://www.prnewswire.com/news-releases/leggett--platt-reports-fourth-quarter-and-full-year-results-301739692.html
SOURCE Leggett & Platt