CALHOUN, Ga., April 27, 2017 /PRNewswire/ -- Mohawk
Industries, Inc. (NYSE: MHK) today announced 2017 first quarter
record net earnings of $201 million
and diluted earnings per share (EPS) of $2.68, a 16.5% increase versus prior year.
Excluding restructuring, acquisition expenses and other charges,
net earnings were $203 million, and
EPS was $2.72, a 14% increase over
last year's first quarter adjusted EPS. Net sales for the first
quarter of 2017 were $2.22 billion,
up 2% versus the prior year's first quarter as reported and 4%
applying constant days and currency rates. For the first quarter of
2016, net sales were $2.17 billion,
net earnings were $172 million and
EPS was $2.30; excluding
restructuring, acquisition and other charges, net earnings were
$177 million and EPS was $2.38.
Commenting on Mohawk Industries' first quarter performance,
Jeffrey S. Lorberbaum, Chairman and
CEO, stated, "Our sales and earnings per share set records for the
first quarter with volume, mix and productivity adding
approximately $60 million to
operating income. Our operating margin for the quarter rose to
12.4%, a 110 basis point improvement over the prior year and the
highest first quarter result in the company's history. Our first
quarter sales grew as expected, with Flooring North America and
Rest of the World outpacing Global Ceramic growth on a constant
days and currency basis. This year around the world, we plan to
invest more than $750 million to
expand our production in most product categories. In addition, we
are entering the European carpet tile and counter top markets as
well as the Russian sheet vinyl business. In April, we completed
the acquisition of two small ceramic manufacturers in Europe and a carpet nylon polymerization plant
in the U.S.; in May, we anticipate purchasing a mine for our U.S.
ceramic operations. We are initiating many price increases across
our portfolio which should cover our material costs in the third
quarter.
"For the quarter, our Global Ceramic Segment sales increased
approximately 2% as reported and on a constant days and currency
basis. Operating income for the segment rose approximately 16% as
reported to a margin of 15%. In the period, the growth rate was
lower due to customer inventory adjustments and postponed
product transitions in North
America, severe weather in Russia and Eastern
Europe and a weaker Mexican Peso. Purchasing patterns have
now returned to normal, and our sales growth is increasing. To
recover increasing costs, we announced a general price increase in
North America, which should be
implemented by the end of the second quarter. Our recent
investments in our North American ceramic business will propel our
growth through the remainder of the year. Our new Tennessee facility is operating at planned
volume and quality levels, and we are using the plant's advanced
technology to introduce premium products, such as sophisticated
metallic and glazed color body collections. In the U.S. this year,
we are planning to open 18 to 20 new ceramic tile or stone centers
to expand our distribution. Our ceramic sales in Mexico continue to outpace the growing market,
and we are developing new collections and distribution to utilize
the additional capacity when our Salamanca expansion becomes operational later
this year. In Europe, our ceramic
business increased our profitability as a result of improved
product mix, productivity and equipment upgrades. With the
investments we have made in Russia, our domestic ceramic collections with
award-winning designs and large sizes up to ten-feet long are
replacing premium imported products.
"During the quarter, our Flooring North America Segment's sales
increased 4% as reported or 5% on a constant day's basis. Operating
income grew 22% to a margin of 10% as reported. Our raw materials
have risen, and we are increasing prices as necessary. Sales of our
hard surface products continue to outpace our carpet category, with
our LVT and premium laminate growing the fastest. Our residential
carpet sales performed well in the period with ongoing strength
from our proprietary SmartStrand franchise. During the quarter, we
introduced SmartStrand Silk Reserve, the next generation of
ultra-soft carpet, which has extended our leadership in premium
carpet. We anticipate continued sales improvement with our new
tufted, printed and woven commercial carpet technologies, and we
are extending our design leadership in carpet tile. With
their superior design and performance, our flexible, rigid and
commercial LVT collections are being well accepted across all
channels of the market. Our sheet vinyl sales strategy has improved
our position with Mohawk retailers, independent distributors and
home centers. Sales of our laminate collections remained strong
with our unique styling and performance features and our new
production line should be operational in the fourth quarter. We
have upgraded our wood offering to meet the growing demand for
wider planks with rich textures and sophisticated colors. After
implementing residential and commercial carpet price increases, we
announced additional pricing actions in carpet and sheet vinyl in
May due to unforeseen increases in our raw materials. We anticipate
that these increases will cover our costs in the third quarter.
"For the quarter, our Flooring Rest of the World Segment's sales
increased 1% as reported and 3% on a constant days and currency
basis and operating margin was 15% as reported. The segment's
operating margin was down versus prior year due to higher material
costs and currency changes. We are increasing prices across most
product categories to offset higher material costs, which should
cover the costs in the third quarter. All of our LVT brands grew
significantly during the period as we increased our production and
expanded our distribution and product offering. Our new LVT product
introductions are being well received across all channels due to
their unique design and performance attributes. Our sheet vinyl
sales lagged compared to last year as low inventories from earlier
plant disruptions limited our service. We anticipate normalized
sheet vinyl sales in the second quarter. Our laminate production in
Europe is running at capacity, and
we are preparing for the installation of new equipment that will
give us additional capabilities to extend our lead in the category.
Our insulation board sales continued to increase during the period,
and our wood panel sales are growing with expanded margins as we
improve our mix, capacity and efficiencies.
"We remain optimistic about the economy, the flooring industry
and Mohawk's potential. Our second quarter sales growth should
accelerate sequentially on a local basis, and our operating income
should improve despite inflation, expiring patents and a weaker
British Pound. We are implementing product price increases across
the enterprise due to escalating material costs. Our capital
investments and process improvements will continue to yield higher
productivity. This quarter, we will finalize four acquisitions that
will broaden our product offering, geographic penetration and
competitive position. Taking all of this into account, our adjusted
EPS guidance for the second quarter is $3.53
to $3.62, including our acquisitions. In the third quarter,
higher pricing and productivity as well as lower currency headwinds
should improve our results. As we stated last quarter, this year's
sales growth, prior to acquisitions, will be similar to last year,
and our adjusted operating margin will increase slightly. We are
investing at record levels with upfront start-up and marketing
costs this year to enhance our long-term growth and make Mohawk a
more profitable company."
ABOUT MOHAWK INDUSTRIES
Mohawk Industries is the leading global flooring manufacturer
that creates products to enhance residential and commercial spaces
around the world. Mohawk's vertically integrated manufacturing and
distribution processes provide competitive advantages in the
production of carpet, rugs, ceramic tile, laminate, wood, stone and
vinyl flooring. Our industry-leading innovation has yielded
products and technologies that differentiate our brands in the
marketplace and satisfy all remodeling and new construction
requirements. Our brands are among the most recognized in the
industry and include American Olean, Daltile, Durkan, IVC,
Karastan, Marazzi, Mohawk, Mohawk Group, Pergo, Quick-Step and
Unilin. During the past decade, Mohawk has transformed its business
from an American carpet manufacturer into the world's largest
flooring company with operations in Australia, Brazil, Canada, Europe, India, Malaysia, Mexico, New
Zealand, Russia and
the United States.
Certain of the statements in the immediately preceding
paragraphs, particularly anticipating future performance, business
prospects, growth and operating strategies and similar matters and
those that include the words "could," "should," "believes,"
"anticipates," "expects," and "estimates," or similar expressions
constitute "forward-looking statements." For those statements,
Mohawk claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. There can be no assurance that the
forward-looking statements will be accurate because they are based
on many assumptions, which involve risks and uncertainties. The
following important factors could cause future results to differ:
changes in economic or industry conditions; competition; inflation
and deflation in raw material prices and other input costs;
inflation and deflation in consumer markets; energy costs and
supply; timing and level of capital expenditures; timing and
implementation of price increases for the Company's products;
impairment charges; integration of acquisitions; international
operations; introduction of new products; rationalization of
operations; tax, product and other claims; litigation; and other
risks identified in Mohawk's SEC reports and public
announcements.
Conference call Friday, April 28,
2017, at 11:00 AM Eastern
Time
The telephone number is
1-800-603-9255 for US/Canada and
1-706-634-2294 for International/Local. Conference ID # 5364682. A
replay will be available until Friday, May
26, 2017, by dialing 855-859-2056 for US/local calls and
404-537-3406 for International/Local calls and entering Conference
ID # 5364682.
MOHAWK INDUSTRIES,
INC. AND SUBSIDIARIES
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Consolidated
Statement of Operations Data
|
|
|
Three Months
Ended
|
(Amounts in
thousands, except per share data)
|
|
|
April 1,
2017
|
|
April 2,
2016
|
|
|
|
|
|
|
Net sales
|
|
|
$
2,220,645
|
|
2,172,046
|
Cost of
sales
|
|
|
1,540,292
|
|
1,532,367
|
Gross profit
|
|
|
680,353
|
|
639,679
|
Selling, general and
administrative expenses
|
|
|
405,569
|
|
394,007
|
Operating
income
|
|
|
274,784
|
|
245,672
|
Interest
expense
|
|
|
8,202
|
|
12,301
|
Other expense
(income), net
|
|
|
(2,832)
|
|
3,429
|
Earnings before income taxes
|
|
|
269,414
|
|
229,942
|
Income tax
expense
|
|
|
68,358
|
|
57,825
|
Net
earnings including noncontrolling interest
|
|
|
201,056
|
|
172,117
|
Net earnings
attributable to noncontrolling interest
|
|
|
502
|
|
569
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
|
$
200,554
|
|
171,548
|
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
$
2.70
|
|
2.32
|
Weighted-average
common shares outstanding - basic
|
|
|
74,212
|
|
73,976
|
|
|
|
|
|
|
Diluted earnings
per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
Diluted earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
$
2.68
|
|
2.30
|
Weighted-average
common shares outstanding - diluted
|
|
|
74,754
|
|
74,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
$
105,024
|
|
100,194
|
Capital
expenditures
|
|
|
$
201,270
|
|
140,833
|
Consolidated
Balance Sheet Data
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
188,436
|
|
98,305
|
Receivables, net
|
|
|
1,497,908
|
|
1,406,725
|
Inventories
|
|
|
1,740,880
|
|
1,652,030
|
Prepaid expenses and other current assets
|
|
|
307,758
|
|
313,491
|
Total
current assets
|
|
|
3,734,982
|
|
3,470,551
|
Property, plant and
equipment, net
|
|
|
3,506,154
|
|
3,224,327
|
Goodwill
|
|
|
2,293,107
|
|
2,339,521
|
Intangible assets,
net
|
|
|
835,761
|
|
950,975
|
Deferred income taxes
and other non-current assets
|
|
|
357,513
|
|
306,941
|
Total assets
|
|
|
$
10,727,517
|
|
10,292,315
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current
portion of long-term debt and commercial paper
|
|
|
$
1,497,986
|
|
2,076,179
|
Accounts
payable and accrued expenses
|
|
|
1,330,341
|
|
1,247,489
|
Total
current liabilities
|
|
|
2,828,327
|
|
3,323,668
|
Long-term debt, less
current portion
|
|
|
1,132,268
|
|
1,173,600
|
Deferred income taxes
and other long-term liabilities
|
|
|
677,897
|
|
615,037
|
Total
liabilities
|
|
|
4,638,492
|
|
5,112,305
|
Redeemable
noncontrolling interest
|
|
|
24,201
|
|
23,432
|
Total stockholders'
equity
|
|
|
6,064,824
|
|
5,156,578
|
Total liabilities and stockholders' equity
|
|
|
$
10,727,517
|
|
10,292,315
|
Segment
Information
|
|
|
As of or for the
Three Months Ended
|
(Amounts in
thousands)
|
|
|
April 1,
2017
|
|
April 2,
2016
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
Global Ceramic
|
|
|
$
784,969
|
|
773,726
|
Flooring NA
|
|
|
939,496
|
|
906,364
|
Flooring ROW
|
|
|
496,180
|
|
491,956
|
Intersegment sales
|
|
|
-
|
|
-
|
Consolidated net sales
|
|
|
$
2,220,645
|
|
2,172,046
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
Global Ceramic
|
|
|
$
116,036
|
|
99,777
|
Flooring NA
|
|
|
92,142
|
|
75,351
|
Flooring ROW
|
|
|
76,095
|
|
79,537
|
Corporate and eliminations
|
|
|
(9,489)
|
|
(8,993)
|
Consolidated operating income
|
|
|
$
274,784
|
|
245,672
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Global Ceramic
|
|
|
$
4,229,183
|
|
3,988,285
|
Flooring NA
|
|
|
3,528,062
|
|
3,267,529
|
Flooring ROW
|
|
|
2,801,782
|
|
2,926,959
|
Corporate and eliminations
|
|
|
168,490
|
|
109,542
|
Consolidated assets
|
|
|
$
10,727,517
|
|
10,292,315
|
Reconciliation of
Net Earnings Attributable to Mohawk Industries, Inc. to Adjusted
Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted
Diluted Earnings Per Share Attributable to Mohawk Industries,
Inc.
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
|
|
|
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
|
|
$
200,554
|
|
171,548
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other
costs
|
|
|
|
3,978
|
|
7,718
|
|
|
|
|
Acquisitions purchase accounting (inventory step-up)
|
|
|
|
192
|
|
-
|
|
|
|
|
Income
taxes
|
|
|
|
|
|
(1,415)
|
|
(2,277)
|
|
|
|
|
Adjusted
net earnings attributable to Mohawk Industries, Inc.
|
|
|
|
|
$
203,309
|
|
176,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to Mohawk Industries,
Inc.
|
|
$
2.72
|
|
2.38
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
|
|
|
74,754
|
|
74,490
|
|
|
|
|
Reconciliation of
Total Debt to Net Debt
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
April 1,
2017
|
Current portion of
long-term debt and commercial paper
|
|
$
1,497,986
|
Long-term debt, less
current portion
|
|
|
1,132,268
|
Less: Cash and cash
equivalents
|
|
|
188,436
|
Net Debt
|
|
|
|
$
2,441,818
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Trailing
Twelve
|
|
|
|
|
Three Months
Ended
|
|
Months
Ended
|
|
|
|
|
July 2,
2016
|
|
October 1,
2016
|
|
December 31,
2016
|
|
April 1,
2017
|
|
April 1,
2017
|
Operating
income
|
|
|
|
$
350,692
|
|
378,307
|
|
305,272
|
|
274,784
|
|
1,309,055
|
Other (expense)
income
|
|
|
|
5,807
|
|
(3,839)
|
|
3,190
|
|
2,832
|
|
7,990
|
Net (earnings) loss
attributable to non-controlling interest
|
|
(926)
|
|
(949)
|
|
(760)
|
|
(502)
|
|
(3,137)
|
Depreciation and
amortization
|
|
|
101,215
|
|
103,680
|
|
104,379
|
|
105,024
|
|
414,298
|
EBITDA
|
|
|
|
456,788
|
|
477,199
|
|
412,081
|
|
382,138
|
|
1,728,206
|
Restructuring,
acquisition and integration-related and other
costs
|
|
6,020
|
|
30,572
|
|
16,214
|
|
3,978
|
|
56,784
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
-
|
|
-
|
|
192
|
|
192
|
Legal settlement and
reserves
|
|
|
-
|
|
(90,000)
|
|
-
|
|
-
|
|
(90,000)
|
Release of
indemnification asset
|
|
|
-
|
|
2,368
|
|
3,004
|
|
-
|
|
5,372
|
Tradename
impairment
|
|
|
|
-
|
|
47,905
|
|
-
|
|
-
|
|
47,905
|
Adjusted
EBITDA
|
|
|
|
$
462,808
|
|
468,044
|
|
431,299
|
|
386,308
|
|
1,748,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
1.4
|
Reconciliation of
Net Sales to Net Sales on a Constant Exchange Rate and Constant
Shipping Days
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Net sales
|
|
|
|
$
2,220,645
|
|
2,172,046
|
Adjustment to net
sales on constant shipping days
|
|
11,930
|
|
-
|
Adjustment to net
sales on a constant exchange rate
|
|
18,180
|
|
-
|
Net sales on a
constant exchange rate and constant shipping days
|
|
$
2,250,755
|
|
2,172,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange Rate
and Constant Shipping Days
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Global
Ceramic
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Net sales
|
|
|
|
$
784,969
|
|
773,726
|
Adjustment to net
sales on constant shipping days
|
|
5,160
|
|
-
|
Adjustment to segment
net sales on a constant exchange rate
|
|
(498)
|
|
-
|
Segment net sales on
a constant exchange rate and constant shipping
days
|
|
$
789,631
|
|
773,726
|
Reconciliation of
Segment Net Sales to Segment Net Sales on Constant Shipping
Days
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Flooring
NA
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Net sales
|
|
|
|
$
939,496
|
|
906,364
|
Adjustment to net
sales on constant shipping days
|
|
14,680
|
|
-
|
Segment net sales on
constant shipping days
|
|
$
954,176
|
|
906,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange Rate
and Constant Shipping Days
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Flooring
ROW
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Net sales
|
|
|
|
$
496,180
|
|
491,956
|
Adjustment to net
sales on constant shipping days
|
|
(7,910)
|
|
-
|
Adjustment to segment
net sales on a constant exchange rate
|
|
18,678
|
|
-
|
Segment net sales on
a constant exchange rate and constant shipping
days
|
|
$
506,948
|
|
491,956
|
Reconciliation of
Gross Profit to Adjusted Gross Profit
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Gross
Profit
|
|
|
|
$
680,353
|
|
639,679
|
Adjustments to gross
profit:
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
2,813
|
|
5,848
|
Acquisitions
purchase accounting (inventory step-up)
|
|
192
|
|
-
|
Adjusted gross
profit
|
|
|
|
$
683,358
|
|
645,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Selling, General and Administrative Expenses to Adjusted Selling,
General and Administrative Expenses
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Selling, general and
administrative expenses
|
|
|
$
405,569
|
|
394,007
|
Adjustments to
selling, general and administrative expenses:
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
(1,165)
|
|
(1,194)
|
Adjusted
selling, general and administrative expenses
|
|
$
404,404
|
|
392,813
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted Operating Income
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Operating
income
|
|
|
|
$
274,784
|
|
245,672
|
Adjustments to
operating income:
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
3,978
|
|
7,042
|
Acquisitions purchase
accounting (inventory step-up)
|
|
192
|
|
-
|
Adjusted operating
income
|
|
|
|
$
278,954
|
|
252,714
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Global
Ceramic
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Operating
income
|
|
|
|
$
116,036
|
|
99,777
|
Adjustments to
segment operating income:
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
204
|
|
766
|
Adjusted segment
operating income
|
|
|
$
116,240
|
|
100,543
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Flooring
NA
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Operating
income
|
|
|
|
$
92,142
|
|
75,351
|
Adjustments to
segment operating income:
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
2,313
|
|
3,676
|
Adjusted
segment operating income
|
|
|
$
94,455
|
|
79,027
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Flooring
ROW
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Operating
income
|
|
|
|
$
76,095
|
|
79,537
|
Adjustments to
segment operating income:
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other
costs
|
|
1,460
|
|
2,600
|
Acquisitions purchase accounting (inventory step-up)
|
|
192
|
|
-
|
Adjusted
segment operating income
|
|
|
$
77,747
|
|
82,137
|
|
|
|
|
|
|
|
Reconciliation of
Earnings including Noncontrolling Interests Before Income Taxes to
Adjusted Earnings including Noncontrolling Interests Before Income
Taxes
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Earnings before
income taxes
|
|
|
|
$
269,414
|
|
229,942
|
Noncontrolling
interests
|
|
|
|
(502)
|
|
(569)
|
Adjustments to
earnings including noncontrolling interests before income
taxes:
|
|
|
|
|
Restructuring,
acquisition and integration-related & other
costs
|
|
3,978
|
|
7,718
|
Acquisitions purchase
accounting (inventory step-up)
|
|
192
|
|
-
|
Adjusted
earnings including noncontrolling interests before income
taxes
|
|
$
273,082
|
|
237,091
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax
Expense
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
Income tax
expense
|
|
|
|
$
68,358
|
|
57,825
|
Income tax effect of
adjusting items
|
|
|
|
1,415
|
|
2,277
|
Adjusted
income tax expense
|
|
|
$
69,773
|
|
60,102
|
|
|
|
|
|
|
|
Adjusted income tax
rate
|
|
|
|
25.6%
|
|
25.4%
|
|
|
|
|
|
|
|
|
The Company
supplements its consolidated financial statements, which are
prepared and presented in accordance with US GAAP, with certain
non-GAAP financial measures. As required by the Securities and
Exchange Commission rules, the tables above present a
reconciliation of the Company's non-GAAP financial measures to the
most directly comparable US GAAP measure. Each of the non-GAAP
measures set forth above should be considered in addition to the
comparable US GAAP measure, and may not be comparable to similarly
titled measures reported by other companies. The Company believes
these non-GAAP measures, when reconciled to the corresponding US
GAAP measure, help its investors as follows: Non-GAAP revenue
measures that assist in identifying growth trends and in
comparisons of revenue with prior and future periods and non-GAAP
profitability measures that assist in understanding the long-term
profitability trends of the Company's business and in comparisons
of its profits with prior and future periods.
|
|
The Company excludes
certain items from its non-GAAP revenue measures because these
items can vary dramatically between periods and can obscure
underlying business trends. Items excluded from the Company's
non-GAAP revenue measures include: foreign currency transactions
and translation, more or fewer shipping days in a period and the
impact of acquisitions.
|
|
The Company excludes
certain items from its non-GAAP profitability measures because
these items may not be indicative of, or are unrelated to, the
Company's core operating performance. Items excluded from the
Company's non-GAAP profitability measures include: restructuring,
acquisition and integration-related and other costs, legal
settlements and reserves, tradename impairments, acquisition
purchase accounting (inventory step-up), release of indemnification
assets and the reversal of uncertain tax positions.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mohawk-industries-reports-record-q1-results-300447557.html
SOURCE Mohawk Industries, Inc.