CARTHAGE, Mo., Feb. 8, 2021 /PRNewswire/ --
- 4Q sales grew 3% vs 4Q19, to $1.182
billion
- 4Q EPS was a fourth quarter record $.76, an increase of $.12 vs 4Q19
- 2020 sales decreased 10% vs 2019, to $4.28 billion
- 2020 EPS was $1.82 and 2020
adjusted1 EPS was $2.13,
decreases vs 2019
- 2020 cash flow from operations was $603
million
- Board of Directors declared first quarter dividend of
$.40 per share
- 2021 guidance: sales of $4.6–$4.9
billion and EPS of $2.30–$2.60
Chairman and CEO Karl Glassman
commented, "We are pleased to have delivered a strong fourth
quarter to end a very challenging 2020. Fourth quarter sales, EBIT,
EBIT margin, and earnings per share increased versus the fourth
quarter of 2019. For the full year, we generated strong operating
cash flow, reduced debt levels, maintained significant liquidity,
and increased the dividend for the 49th consecutive
year.
"I would like to thank our employees for their dedication,
ingenuity, and tenacity in what was a very challenging year as a
result of the COVID-19 pandemic. Our teams across our corporate
functions and businesses came together to find solutions and
navigate the many issues that resulted from the global pandemic. I
am extremely proud of all they accomplished. We finished 2020 as a
stronger company as a result of their extraordinary
efforts.
"We expect continued recovery into 2021 as a result of strong
consumer demand for home-related items and global automotive, and
modest improvement in our businesses in industries that are
experiencing ongoing impacts from COVID-19. We also expect
continued supply chain constraints, inflation in commodity costs,
and recovery of those higher costs through selling price
increases."
FOURTH QUARTER RESULTS
Fourth quarter 2020
sales of $1.182 billion, a
3% increase versus fourth quarter 2019.
- Organic sales were up 3%
-
- Volume was up 1%2; strong demand in residential end
markets and Automotive was largely offset by weakness in Aerospace
and Work Furniture
- Raw material-related selling price increases and currency
benefit added 2%
- Acquisitions and divestitures offset each other
Fourth quarter EBIT was $150
million, up $15 million or 11%
from fourth quarter 2019, and up $10
million or 7% from fourth quarter 2019 adjusted1
EBIT.
- EBIT benefited primarily from fixed cost reductions, the
non-recurrence of a $5 million
restructuring-related charge in fourth quarter 2019, and other
smaller items partially offset by change in LIFO impact
-
- Fixed cost reductions implemented earlier in the year reduced
4Q costs by approximately $25
million
- LIFO expense was $8 million in 4Q
2020, versus a LIFO benefit of $14
million in 4Q 2019
- EBIT margin was 12.7%, up from 11.8% in the fourth quarter of
2019 and up from an adjusted1 EBIT margin of 12.2% in
that same period
Fourth quarter EPS was $.76, a fourth quarter record. EPS increased
$.12 versus fourth quarter 2019 and
$.08 versus
adjusted1 EPS in fourth quarter 2019. Improved EBIT
was the primary driver of the increase, augmented by lower interest
expense ($.01 per share) and a lower
tax rate ($.02 per share).
FULL YEAR RESULTS
2020 sales of
$4.28 billion, a 10% decrease versus
2019.
- Organic sales were down 11%
-
- Volume down 10%3, largely due to economic impact of
COVID-19
- Raw material-related selling price decreases earlier in the
year reduced sales 1%
- Acquisitions added 1% to sales
2020 EBIT was $401
million, down $113 million or
22% from 2019, and adjusted1 EBIT was
$446 million, an $83 million or 16% decrease.
- EBIT and adjusted1 EBIT declined primarily as a
result of lower volume and change in LIFO impact, partially offset
by fixed cost reductions
-
- Fixed cost reductions totaled approximately $90 million for the year
- LIFO expense was $8 million in
2020, versus a LIFO benefit of $32
million in 2019
- 2020 adjustments were $25 million
non-cash goodwill impairment charge related to our Hydraulic
Cylinders business; $9 million of
restructuring-related charges primarily from severance costs
related to the pandemic; an $8
million non-cash impairment charge related to a note
receivable; and a $4 million non-cash
charge to write off stock associated with a prior year
divestiture
- 2019 adjustments were restructuring-related charges of
$15 million and ECS transaction costs
of $1 million
- EBIT margin was 9.4%, down from 10.8% in 2019, and
adjusted1 EBIT margin was 10.4%, a decrease from 11.1%
in 2019
2020 EPS was $1.82, a
decrease of $.65 versus 2019. Full
year adjusted1 EPS was $2.13, a decrease of $.44, reflecting lower adjusted1
EBIT.
2020 DEBT, CASH FLOW, AND DIVIDEND
- Reduced debt by $228
million
- Net Debt was 2.44x trailing 12-month adjusted
EBITDA1 at year-end
- Operating cash flow was $603
million, down $65 million from
a record $668 million in 2019
- Capital expenditures were $66
million for the year
- Dividends were $1.60 per
share, up $.02 from $1.58 per share in 2019
LIQUIDITY AND BALANCE SHEET
- $1.5 billion of liquidity at
December 31
-
- $349 million of cash on hand
- $1.2 billion in capacity
remaining under revolving credit facility
- Debt at December 31
-
- Total debt of $1.9 billion; no
commercial paper outstanding
- No significant maturities until August
2022
DIVIDEND
- The Company's Board of Directors declared first quarter
dividend of $.40
- Dividend will be paid on April 15,
2021 to shareholders of record on March 15, 2021
- At an annual indicated dividend of $1.60 per share, the yield is 3.7% based upon
Friday's closing stock price of $43.02 per share, one of the highest yields among
the S&P 500 Dividend Aristocrats
2021 GUIDANCE
- Sales are expected to be $4.6–$4.9 billion, +7% to 14% versus 2020
-
- Volume expected to grow mid-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 $2.30–$2.60
-
- Reflects higher volume partially offset by increasing steel,
chemical, and other raw material costs, as well as the pricing lag
associated with passing along these costs, particularly in 1Q
2021
- Assumes no LIFO impact in 2021
- Based on this guidance framework, EBIT margin should be 10.5%
to 11.0%
- 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 $450
million
- Capital expenditures $150
million
- Dividends $220 million
SEGMENT RESULTS – Fourth Quarter 2020 (versus 4Q
2019)
Bedding Products –
- Trade sales increased 3%
-
- Volume increased 2%; growth in ECS, European Spring, and U.S.
Spring was partially offset by lower volume in Adjustable Bed and
exited volume in Drawn Wire
- Raw material-related selling price increases added 3%
- Divestitures reduced sales by approximately 2% (small
operations in Drawn Wire and former Fashion Bed business)
- EBIT increased $6 million,
primarily from fixed cost reductions and volume growth, partially
offset by change in LIFO impact
Specialized Products –
- Trade sales increased 1%
-
- Volume was down 2%; growth in Automotive was more than offset
by weak demand in Aerospace
- Currency benefit increased sales 3%
- EBIT increased $2 million,
primarily from fixed cost reductions partially offset by lower
volume
Furniture, Flooring & Textile Products –
- Trade sales increased 5%
-
- Volume increased 2%; strong demand in Fabric Converting, Geo
Components, and Home Furniture was partially offset by weak demand
in Work Furniture and Flooring Products' hospitality business
- Currency benefit increased sales 1%
- A small Geo Components acquisition completed in December 2019 added 2% to sales
- EBIT increased $6 million,
primarily from fixed cost reductions partially offset by change in
LIFO impact
SEGMENT RESULTS – Full Year 2020 (versus
2019)
Bedding Products –
- Trade sales declined 10%
-
- Volume was down 9%4, primarily due to
pandemic-related economic declines earlier in the year
- Raw material-related price decreases and currency impact
reduced sales 1%
- EBIT decreased $50 million,
primarily from lower volume, change in LIFO impact, an $8 million impairment related to a note
receivable, and lower metal margin in our rod mill partially offset
by fixed cost reductions
Specialized Products –
- Trade sales decreased 16%
-
- Volume was down 17%, primarily due to pandemic-related economic
declines earlier in the year and continued weak demand in
Aerospace
- Currency benefit increased sales 1%
- EBIT decreased $79 million,
primarily from volume declines and a $25
million goodwill impairment charge in Hydraulic Cylinders
partially offset by fixed cost reductions
Furniture, Flooring & Textile Products –
- Trade sales were down 6%
-
- Volume decreased 8%, primarily due to pandemic-related economic
declines earlier in the year and continued weak demand in Work
Furniture and Flooring Products' hospitality business
- A small Geo Components acquisition completed in December 2019 added 2% to sales
- Raw material-related selling price decreases were offset by a
currency benefit
- EBIT increased $19 million,
primarily from fixed cost reductions, improved pricing, and lower
restructuring-related charges ($5m)
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 9. 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 3, 2021,
with a conference call the next morning.
FOR MORE INFORMATION: Visit Leggett's website at
www.leggett.com.
COMPANY DESCRIPTION: At Leggett & Platt (NYSE: LEG),
we create innovative products that enhance people's lives,
generate exceptional returns for our shareholders, and
provide sought-after jobs in communities around the world.
L&P is a 138-year-old diversified manufacturer that designs and
produces engineered products found in most homes and automobiles.
The Company is comprised of 15 business units, 20,000
employee-partners, and 132 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, strong
consumer demand for home-related items and global automotive;
modest improvement in COVID-19 impacted businesses; continued
supply chain constraints, continued inflation in commodity costs;
recovery of commodity costs through selling price increases; raw
material-related price increases; volume growth; acquisition and
divestiture activity; LIFO impact; 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 and amount of dividends. 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 open or fully operational, obtain necessary raw materials
(including nonwoven fabrics) 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 attached tables for Non-GAAP Reconciliations
|
2 Includes
1% volume reduction attributable to exited business
|
3 Includes
2% volume reduction attributable to exited business
|
4 Includes
1% volume reduction attributable to exited business
|
LEGGETT &
PLATT
|
|
|
|
|
|
|
|
|
|
|
RESULTS OF
OPERATIONS
|
|
FOURTH
QUARTER
|
|
YEAR TO
DATE
|
(In millions, except
per share data)
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
Net trade
sales
|
|
$
1,182.0
|
|
$
1,144.9
|
|
3 %
|
|
$
4,280.2
|
|
$
4,752.5
|
|
(10)%
|
Cost of goods
sold
|
|
923.4
|
|
872.5
|
|
|
|
3,385.7
|
|
3,701.9
|
|
|
Gross
profit
|
|
258.6
|
|
272.4
|
|
(5)%
|
|
894.5
|
|
1,050.6
|
|
(15)%
|
Selling &
administrative expenses
|
|
103.8
|
|
117.6
|
|
(12)%
|
|
424.4
|
|
469.7
|
|
(10)%
|
Amortization
|
|
16.3
|
|
16.0
|
|
|
|
65.2
|
|
63.3
|
|
|
Other expense
(income), net
|
|
(11.2)
|
|
3.7
|
|
|
|
4.4
|
|
4.2
|
|
|
Earnings
before interest and taxes
|
|
149.7
|
|
135.1
|
|
11 %
|
|
400.5
|
`
|
513.4
|
|
(22)%
|
Net interest
expense
|
|
18.8
|
|
20.3
|
|
|
|
79.6
|
|
83.3
|
|
|
Earnings
before income taxes
|
|
130.9
|
|
114.8
|
|
|
|
320.9
|
|
430.1
|
|
|
Income
taxes
|
|
27.7
|
|
27.9
|
|
|
|
73.2
|
|
96.2
|
|
|
Net
earnings
|
|
103.2
|
|
86.9
|
|
|
|
247.7
|
|
333.9
|
|
|
Less net income from
non-controlling interest
|
|
-
|
|
(0.1)
|
|
|
|
(0.1)
|
|
(0.1)
|
|
|
Net
earnings attributable to L&P
|
|
$
103.2
|
|
$
86.8
|
|
19 %
|
|
$
247.6
|
|
$
333.8
|
|
(26)%
|
Earnings per diluted
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
|
$
0.76
|
|
$
0.64
|
|
19 %
|
|
$
1.82
|
|
$
2.47
|
|
(26)%
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
132.6
|
|
131.8
|
|
0.6 %
|
|
132.6
|
|
131.8
|
|
0.6 %
|
Basic
(average for period)
|
|
135.9
|
|
135.2
|
|
|
|
135.7
|
|
134.8
|
|
|
Diluted
(average for period)
|
|
136.2
|
|
135.8
|
|
0.3 %
|
|
135.9
|
|
135.4
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW
|
|
FOURTH
QUARTER
|
|
YEAR TO
DATE
|
(In
millions)
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
Net
earnings
|
|
$
103.2
|
|
$
86.9
|
|
|
|
$
247.7
|
|
$
333.9
|
|
|
Depreciation and
amortization
|
|
48.4
|
|
47.2
|
|
|
|
189.4
|
|
191.9
|
|
|
Working capital
decrease (increase)
|
|
69.9
|
|
101.1
|
|
|
|
92.5
|
|
80.5
|
|
|
Impairments
|
|
-
|
|
2.1
|
|
|
|
29.4
|
|
7.8
|
|
|
Other operating
activities
|
|
(2.7)
|
|
14.1
|
|
|
|
43.6
|
|
53.9
|
|
|
Net
Cash from Operating Activities
|
|
$
218.8
|
|
$
251.4
|
|
(13)%
|
|
$
602.6
|
|
$
668.0
|
|
(10)%
|
Additions to
PP&E
|
|
(13.9)
|
|
(40.1)
|
|
|
|
(66.2)
|
|
(143.1)
|
|
|
Purchase of
companies, net of cash
|
|
-
|
|
(20.8)
|
|
|
|
-
|
|
(1,265.1)
|
|
|
Proceeds from
business and asset sales
|
|
8.8
|
|
0.2
|
|
|
|
14.8
|
|
5.5
|
|
|
Dividends
paid
|
|
(53.0)
|
|
(52.6)
|
|
|
|
(211.5)
|
|
(204.6)
|
|
|
Repurchase of common
stock, net
|
|
(0.1)
|
|
(2.7)
|
|
|
|
(9.1)
|
|
(7.1)
|
|
|
Additions (payments)
to debt, net
|
|
(63.1)
|
|
(127.5)
|
|
|
|
(227.8)
|
|
947.0
|
|
|
Other
|
|
6.4
|
|
(2.3)
|
|
|
|
(1.5)
|
|
(21.1)
|
|
|
Increase (Decr.) in Cash & Equiv.
|
|
$
103.9
|
|
$
5.6
|
|
|
|
$
101.3
|
|
$
(20.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
December
31,
|
|
|
|
|
|
|
(In
millions)
|
|
2020
|
|
2019
|
|
Change
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
348.9
|
|
$
247.6
|
|
|
|
|
|
|
|
|
Receivables
|
|
563.6
|
|
591.9
|
|
|
|
|
|
|
|
|
Inventories
|
|
645.5
|
|
636.7
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
54.1
|
|
61.9
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
1,612.1
|
|
1,538.1
|
|
5 %
|
|
|
|
|
|
|
Net fixed
assets
|
|
784.8
|
|
830.8
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
161.6
|
|
158.8
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,388.8
|
|
1,406.3
|
|
|
|
|
|
|
|
|
Intangible assets and
deferred costs
|
|
806.7
|
|
882.4
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
4,754.0
|
|
$
4,816.4
|
|
(1)%
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
552.2
|
|
$
463.4
|
|
|
|
|
|
|
|
|
Current debt
maturities
|
|
50.9
|
|
51.1
|
|
|
|
|
|
|
|
|
Current operating
lease liabilities
|
|
42.4
|
|
39.3
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
|
360.5
|
|
374.3
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
1,006.0
|
|
928.1
|
|
8 %
|
|
|
|
|
|
|
Long-term
debt
|
|
1,849.3
|
|
2,066.5
|
|
(11)%
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
122.1
|
|
121.6
|
|
|
|
|
|
|
|
|
Deferred taxes and
other liabilities
|
|
386.3
|
|
387.7
|
|
|
|
|
|
|
|
|
Equity
|
|
1,390.3
|
|
1,312.5
|
|
6 %
|
|
|
|
|
|
|
Total
Capitalization
|
|
3,748.0
|
|
3,888.3
|
|
(4)%
|
|
|
|
|
|
|
TOTAL
LIABILITIES & EQUITY
|
|
$
4,754.0
|
|
$
4,816.4
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEGGETT &
PLATT
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT RESULTS
1
|
|
FOURTH
QUARTER
|
|
YEAR TO
DATE
|
|
(In
millions)
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
Sales
|
|
$
548.3
|
|
$
530.2
|
|
3 %
|
|
$
2,039.3
|
|
$
2,254.3
|
|
(10)%
|
|
EBIT
|
|
63.6
|
|
57.5
|
|
11 %
|
|
185.8
|
|
235.8
|
|
(21)%
|
|
EBIT
Margin
|
|
11.6%
|
|
10.8%
|
|
80
bps
|
2
|
9.1%
|
|
10.5%
|
|
-140
bps
|
2
|
Note
impairment
|
|
-
|
|
-
|
|
|
|
8.4
|
|
-
|
|
|
|
Restructuring-related
charges
|
|
-
|
|
2.1
|
|
|
|
3.3
|
|
9.0
|
|
|
|
ECS transaction
costs
|
|
-
|
|
-
|
|
|
|
-
|
|
0.9
|
|
|
|
Adjusted
EBIT
|
|
63.6
|
|
59.6
|
|
7 %
|
|
197.5
|
|
245.7
|
|
(20)%
|
|
Adjusted EBIT
Margin
|
|
11.6%
|
|
11.2%
|
|
40
bps
|
|
9.7%
|
|
10.9%
|
|
-120
bps
|
|
Depreciation and
amortization
|
|
27.0
|
|
26.8
|
|
|
|
106.7
|
|
107.3
|
|
|
|
Adjusted
EBITDA
|
|
90.6
|
|
86.4
|
|
5 %
|
|
304.2
|
|
353.0
|
|
(14)%
|
|
Adjusted EBITDA
Margin
|
|
16.5%
|
|
16.3%
|
|
20
bps
|
|
14.9%
|
|
15.7%
|
|
-80
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
Sales
|
|
$
273.0
|
|
$
269.7
|
|
1 %
|
|
$
891.2
|
|
$
1,066.8
|
|
(16)%
|
|
EBIT
|
|
51.2
|
|
48.9
|
|
5 %
|
|
91.9
|
|
170.5
|
|
(46)%
|
|
EBIT
Margin
|
|
18.8%
|
|
18.1%
|
|
70
bps
|
|
10.3%
|
|
16.0%
|
|
-570
bps
|
|
Restructuring-related
charges
|
|
-
|
|
-
|
|
|
|
3.8
|
|
-
|
|
|
|
Goodwill
impairment
|
|
-
|
|
-
|
|
|
|
25.4
|
|
-
|
|
|
|
Adjusted
EBIT
|
|
51.2
|
|
48.9
|
|
5 %
|
|
121.1
|
|
170.5
|
|
(29)%
|
|
Adjusted EBIT
Margin
|
|
18.8%
|
|
18.1%
|
|
70
bps
|
|
13.6%
|
|
16.0%
|
|
-240
bps
|
|
Depreciation and
amortization
|
|
11.8
|
|
10.8
|
|
|
|
44.3
|
|
41.8
|
|
|
|
Adjusted
EBITDA
|
|
63.0
|
|
59.7
|
|
6 %
|
|
165.4
|
|
212.3
|
|
(22)%
|
|
Adjusted EBITDA
Margin
|
|
23.1%
|
|
22.1%
|
|
100
bps
|
|
18.6%
|
|
19.9%
|
|
-130
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture,
Flooring & Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
Sales
|
|
$
360.7
|
|
$
345.0
|
|
5 %
|
|
$
1,349.7
|
|
$
1,431.4
|
|
(6)%
|
|
EBIT
|
|
34.6
|
|
28.2
|
|
23 %
|
|
126.2
|
|
107.4
|
|
18 %
|
|
EBIT
Margin
|
|
9.6%
|
|
8.2%
|
|
140
bps
|
|
9.4%
|
|
7.5%
|
|
190
bps
|
|
Restructuring-related
charges
|
|
-
|
|
2.9
|
|
|
|
1.5
|
|
6.1
|
|
|
|
Adjusted
EBIT
|
|
34.6
|
|
31.1
|
|
11 %
|
|
127.7
|
|
113.5
|
|
13 %
|
|
Adjusted EBIT
Margin
|
|
9.6%
|
|
9.0%
|
|
60
bps
|
|
9.5%
|
|
7.9%
|
|
160
bps
|
|
Depreciation and
amortization
|
|
6.4
|
|
6.0
|
|
|
|
25.5
|
|
25.7
|
|
|
|
Adjusted
EBITDA
|
|
41.0
|
|
37.1
|
|
11 %
|
|
153.2
|
|
139.2
|
|
10 %
|
|
Adjusted EBITDA
Margin
|
|
11.4%
|
|
10.8%
|
|
60
bps
|
|
11.4%
|
|
9.7%
|
|
170
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Trade
Sales
|
|
$
1,182.0
|
|
$
1,144.9
|
|
3 %
|
|
$
4,280.2
|
|
$
4,752.5
|
|
(10)%
|
|
EBIT -
segments
|
|
149.4
|
|
134.6
|
|
11 %
|
|
403.9
|
|
513.7
|
|
(21)%
|
|
Intersegment
eliminations and other
|
|
0.3
|
|
0.5
|
|
|
|
(3.4)
|
|
(0.3)
|
|
|
|
EBIT
|
|
149.7
|
|
135.1
|
|
11 %
|
|
400.5
|
|
513.4
|
|
(22)%
|
|
EBIT
Margin
|
|
12.7%
|
|
11.8%
|
|
90
bps
|
|
9.4%
|
|
10.8%
|
|
-140
bps
|
|
Goodwill
impairment 3
|
|
-
|
|
-
|
|
|
|
25.4
|
|
-
|
|
|
|
Note impairment
3
|
|
-
|
|
-
|
|
|
|
8.4
|
|
-
|
|
|
|
Stock write-off
from prior year divestiture 3
|
|
-
|
|
-
|
|
|
|
3.5
|
|
-
|
|
|
|
Restructuring-related
charges3
|
|
-
|
|
5.0
|
|
|
|
8.6
|
|
15.1
|
|
|
|
ECS transaction
costs 3
|
|
-
|
|
-
|
|
|
|
-
|
|
0.9
|
|
|
|
Adjusted EBIT
3
|
|
149.7
|
|
140.1
|
|
7 %
|
|
446.4
|
|
529.4
|
|
(16)%
|
|
Adjusted EBIT
Margin 3
|
|
12.7%
|
|
12.2%
|
|
50
bps
|
|
10.4%
|
|
11.1%
|
|
-70
bps
|
|
Depreciation and
amortization - segments
|
|
45.2
|
|
43.6
|
|
|
|
176.5
|
|
174.8
|
|
|
|
Depreciation and
amortization - unallocated 4
|
|
3.2
|
|
3.6
|
|
|
|
12.9
|
|
17.1
|
|
|
|
Adjusted EBITDA
3
|
|
$
198.1
|
|
$
187.3
|
|
6 %
|
|
$
635.8
|
|
$
721.3
|
|
(12)%
|
|
Adjusted EBITDA
Margin
|
|
16.8%
|
|
16.4%
|
|
40
bps
|
|
14.9%
|
|
15.2%
|
|
-30
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX
QUARTERS
|
|
2019
|
|
2020
|
|
Selected
Figures
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
Net Trade Sales ($
million)
|
|
1,239.3
|
|
1,144.9
|
|
1,045.5
|
|
845.1
|
|
1,207.6
|
|
1,182.0
|
|
Sales Growth (vs.
prior year)
|
|
14 %
|
|
9 %
|
|
(9)%
|
|
(30)%
|
|
(3)%
|
|
3 %
|
|
Volume Growth (same
locations vs. prior year)
|
|
(1)%
|
|
(1)%
|
|
(9)%
|
|
(29)%
|
|
(3)%
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
3
|
|
147.9
|
|
140.1
|
|
92.6
|
|
51.1
|
|
153.0
|
|
149.7
|
|
Cash from Operations
($ million)
|
|
212.9
|
|
251.4
|
|
10.4
|
|
112.1
|
|
261.3
|
|
218.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 3
|
|
689.1
|
|
721.3
|
|
709.7
|
|
621.3
|
|
625.0
|
|
635.8
|
|
(Long-term debt +
current maturities - cash and equivalents) / Adj. EBITDA
3,5
|
|
2.91
|
|
2.59
|
|
2.76
|
|
3.10
|
|
2.74
|
|
2.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (vs.
prior year) 6
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
Bedding
Products
|
|
(9)%
|
|
(10)%
|
|
(15)%
|
|
(28)%
|
|
(1)%
|
|
5 %
|
|
Specialized
Products
|
|
5 %
|
|
4 %
|
|
(11)%
|
|
(47)%
|
|
(9)%
|
|
1 %
|
|
Furniture, Flooring
& Textile Products
|
|
1 %
|
|
(2)%
|
|
(7)%
|
|
(25)%
|
|
(2)%
|
|
3 %
|
|
Overall
|
|
(2)%
|
|
(4)%
|
|
(12)%
|
|
(31)%
|
|
(3)%
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Segment
and overall company margins calculated on Trade sales.
|
|
2bps =
basis points; a unit of measure equal to 1/100th of 1%.
|
|
3Refer to
next page for non-GAAP reconciliations.
|
|
4Consists
primarily of depreciation of non-operating assets.
|
|
5EBITDA
based on trailing twelve months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6Trade
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
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year
|
|
2019
|
|
2020
|
Non-GAAP
adjustments 7
|
|
2019
|
|
2020
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
Goodwill
impairment
|
|
-
|
|
25.4
|
|
-
|
|
-
|
|
-
|
|
25.4
|
|
-
|
|
-
|
Note
impairment
|
|
-
|
|
8.4
|
|
-
|
|
-
|
|
8.4
|
|
-
|
|
-
|
|
-
|
Stock write-off from
prior year divestiture
|
|
-
|
|
3.5
|
|
-
|
|
-
|
|
3.5
|
|
-
|
|
-
|
|
-
|
Restructuring-related
charges
|
|
15.1
|
|
8.6
|
|
3.8
|
|
5.0
|
|
-
|
|
2.9
|
|
5.7
|
|
-
|
ECS transaction
costs
|
|
0.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Non-GAAP
adjustments (pretax) 8
|
|
16.0
|
|
45.9
|
|
3.8
|
|
5.0
|
|
11.9
|
|
28.3
|
|
5.7
|
|
-
|
Income tax
impact
|
|
(2.3)
|
|
(4.6)
|
|
(0.4)
|
|
(0.1)
|
|
(2.9)
|
|
(0.4)
|
|
(1.3)
|
|
-
|
Non-GAAP
adjustments (after tax)
|
|
13.7
|
|
41.3
|
|
3.4
|
|
4.9
|
|
9.0
|
|
27.9
|
|
4.4
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
135.4
|
|
135.9
|
|
135.4
|
|
135.8
|
|
135.6
|
|
135.7
|
|
136.1
|
|
136.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS impact of
non-GAAP adjustments
|
|
0.10
|
|
0.31
|
|
0.02
|
|
0.04
|
|
0.07
|
|
0.21
|
|
0.03
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year
|
|
2019
|
|
2020
|
Adjusted EBIT,
EBITDA, Margin, and EPS 7
|
|
2019
|
|
2020
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
Net trade
sales
|
|
4,752.5
|
|
4,280.2
|
|
1,239.3
|
|
1,144.9
|
|
1,045.5
|
|
845.1
|
|
1,207.6
|
|
1,182.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
513.4
|
|
400.5
|
|
144.1
|
|
135.1
|
|
80.7
|
|
22.8
|
|
147.3
|
|
149.7
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
16.0
|
|
45.9
|
|
3.8
|
|
5.0
|
|
11.9
|
|
28.3
|
|
5.7
|
|
-
|
Adjusted EBIT ($
millions)
|
|
529.4
|
|
446.4
|
|
147.9
|
|
140.1
|
|
92.6
|
|
51.1
|
|
153.0
|
|
149.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
margin
|
|
10.8%
|
|
9.4%
|
|
11.6%
|
|
11.8%
|
|
7.7%
|
|
2.7%
|
|
12.2%
|
|
12.7%
|
Adjusted EBIT
margin
|
|
11.1%
|
|
10.4%
|
|
11.9%
|
|
12.2%
|
|
8.9%
|
|
6.0%
|
|
12.7%
|
|
12.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
513.4
|
|
400.5
|
|
144.1
|
|
135.1
|
|
80.7
|
|
22.8
|
|
147.3
|
|
149.7
|
Depreciation and
Amortization
|
|
191.9
|
|
189.4
|
|
48.4
|
|
47.2
|
|
47.5
|
|
46.5
|
|
47.0
|
|
48.4
|
EBITDA
|
|
705.3
|
|
589.9
|
|
192.5
|
|
182.3
|
|
128.2
|
|
69.3
|
|
194.3
|
|
198.1
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
16.0
|
|
45.9
|
|
3.8
|
|
5.0
|
|
11.9
|
|
28.3
|
|
5.7
|
|
-
|
Adjusted EBITDA ($
millions)
|
|
721.3
|
|
635.8
|
|
196.3
|
|
187.3
|
|
140.1
|
|
97.6
|
|
200.0
|
|
198.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
14.8%
|
|
13.8%
|
|
15.5%
|
|
15.9%
|
|
12.3%
|
|
8.2%
|
|
16.1%
|
|
16.8%
|
Adjusted EBITDA
margin
|
|
15.2%
|
|
14.9%
|
|
15.8%
|
|
16.4%
|
|
13.4%
|
|
11.5%
|
|
16.6%
|
|
16.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
2.47
|
|
1.82
|
|
0.74
|
|
0.64
|
|
0.34
|
|
(0.05)
|
|
0.77
|
|
0.76
|
EPS impact of
non-GAAP adjustments
|
|
0.10
|
|
0.31
|
|
0.02
|
|
0.04
|
|
0.07
|
|
0.21
|
|
0.03
|
|
-
|
Adjusted EPS
($)
|
|
2.57
|
|
2.13
|
|
0.76
|
|
0.68
|
|
0.41
|
|
0.16
|
|
0.80
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year
|
|
2019
|
|
2020
|
Net Debt to
Adjusted EBITDA 9
|
|
2019
|
|
2020
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
Total Debt
|
|
2,117.6
|
|
1,900.2
|
|
2,248.3
|
|
2,117.6
|
|
2,466.4
|
|
2,134.3
|
|
1,960.2
|
|
1,900.2
|
Less: Cash and
equivalents
|
|
(247.6)
|
|
(348.9)
|
|
(242.0)
|
|
(247.6)
|
|
(505.8)
|
|
(208.8)
|
|
(245.0)
|
|
(348.9)
|
Net Debt
|
|
1,870.0
|
|
1,551.3
|
|
2,006.3
|
|
1,870.0
|
|
1,960.6
|
|
1,925.5
|
|
1,715.2
|
|
1,551.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
721.3
|
|
635.8
|
|
689.1
|
|
721.3
|
|
709.7
|
|
621.3
|
|
625.0
|
|
635.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / Leggett
Reported 12-month Adjusted EBITDA
|
|
2.59
|
|
2.44
|
|
2.91
|
|
2.59
|
|
2.76
|
|
3.10
|
|
2.74
|
|
2.44
|
Net Debt / Leggett
and ECS 12-month Pro Forma Adjusted EBITDA
10
|
|
2.59
|
|
|
|
2.81
|
|
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Management and investors use these measures as supplemental
information to assess operational performance.
|
8
The non-GAAP adjustments affected various line items on the income
statement. Details by quarter: 3Q 2019: ($0.9) million COGS,
$4.7 million other expense.
4Q 2019: $5.0 million other expense. 1Q
2020: $8.4 million SG&A, $3.5 million other expense. 2Q
2020: $0.5 COGS, $27.8 million other expense. 3Q 2020: $5.1
million
other expense, $0.6 million in COGS.
|
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.
|
10The
Leggett and ECS pro forma adjusted EBITDA for the 12 months ended
September 30, and 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
adjusted EBITDA for the trailing 12 months ended September 30, and
December 31, 2019 in the net
debt / 12-month adjusted EBITDA
calculation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECS pre-acquisition
adjusted EBITDA from:
|
|
|
|
|
|
10/1/18 –
1/16/19
|
|
1/1/19 –
1/16/19
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
-
|
|
(1)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
12
|
|
1
|
|
|
|
|
|
|
|
|
Taxes
|
|
|
|
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
13
|
|
-
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
|
|
|
5
|
|
1
|
|
|
|
|
|
|
|
|
Change in control
bonus
|
|
|
|
|
|
7
|
|
-
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
|
|
25
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leggett Adjusted
EBITDA, trailing 12 months (including ECS from January 16,
2019)
|
|
|
|
689
|
|
721
|
|
|
|
|
|
|
|
|
ECS pre-acquisition
adjusted EBITDA
|
|
|
|
|
|
25
|
|
1
|
|
|
|
|
|
|
|
|
Leggett and ECS Pro
Forma Adjusted EBITDA, trailing 12 months
|
|
|
|
|
|
714
|
|
722
|
|
|
|
|
|
|
|
|
Net Debt / Leggett
and ECS 12-month Pro Forma Adjusted EBITDA
|
|
|
|
|
|
2.81
|
|
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11Calculations impacted by
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/leggett--platt-reports-4q-and-full-year-2020-results-and-announces-1q-dividend-301224256.html
SOURCE Leggett & Platt