CARTHAGE, Mo., Nov. 1, 2021 /PRNewswire/ --
- 3Q sales were a quarterly record1 $1.32 billion, a 9% increase vs 3Q20
- 3Q EBIT was $144 million, down
$6 million vs 3Q20 and down
$12 million vs 3Q20
adjusted2 EBIT
- 3Q EPS was $.71, a decrease of
$.08 vs 3Q20 and a decrease of
$.11 vs 3Q20 adjusted2
EPS
- Narrowing 2021 guidance: sales of $5.0–$5.1 billion; EPS of $2.86–$2.96; adjusted2 EPS of
$2.70–$2.80
Diversified manufacturer Leggett & Platt reported
record1 quarterly sales in third quarter of
$1.32 billion, a 9% increase versus
third quarter last year.
- Organic sales were up 8%
-
- Volume was down 6%, largely due to supply chain constraints
impacting the Bedding and Automotive markets
- Raw material-related selling price increases of 13% and
currency benefit of 1% added to sales growth
- Acquisitions, net of divestitures, increased sales 1%
Third quarter EBIT was $144
million, down $6 million or 4%
from third quarter 2020 and down $12
million or 8% from third quarter 2020
adjusted2 EBIT. EBIT declined primarily from lower
volume partially offset by metal margin expansion in our Steel Rod
business.
-
- 3Q 2020 adjustments include $6
million of restructuring-related charges
- EBIT margin was 10.9%, down from 12.4% in the third quarter of
2020 and down from an adjusted2 EBIT margin of
12.9%
Third quarter EPS was $.71, a decrease of $.08 versus third quarter 2020 and a decrease of
$.11 versus third quarter 2020
adjusted2 EPS. The decline reflects lower EBIT and a
higher tax rate ($.05/share),
primarily from retroactive benefits related to certain tax
regulations issued in the third quarter of last year.
CEO COMMENTS
Chairman and CEO Karl Glassman commented, "Like many other
companies, our teams continue to navigate a myriad of macro market
challenges, including supply chain issues related to semiconductor
shortages, foam chemical shortages, labor availability, freight
challenges, as well as higher costs associated with each of these
issues. Despite these headwinds, we delivered record1
quarterly sales and solid operating results in the third
quarter.
"Leggett remains well-positioned, both competitively and
financially, to capitalize on long-term opportunities in our
various end markets. Our enduring long-term fundamentals give us
confidence in our ability to continue creating long-term value for
our shareholders."
DEBT, CASH FLOW, AND LIQUIDITY
- Net Debt was 2.41x trailing 12-month
adjusted2 EBITDA
- Operating cash flow was $50
million in the third quarter, a decrease of $211 million versus third quarter 2020, primarily
from working capital investments in Bedding to rebuild inventory
following severe depletion in 2020 and support anticipated growth,
as well as from significant inflationary impacts
- Capital expenditures were $27
million
- Total liquidity was $965
million
DIVIDEND
- In August, Leggett & Platt's Board of Directors declared a
$.42 third quarter dividend,
two cents higher than last year's
third quarter dividend
- At an annual indicated dividend of $1.68 per share, the yield is 3.6% based upon
Friday's closing stock price of $46.85 per share, one of the higher yields among
the S&P 500 Dividend Aristocrats
2021 GUIDANCE
- Full year 2021 sales and EPS guidance narrowed
-
- Change primarily reflects higher raw material-related price
increases and lower expected volume in Automotive
- Sales are expected to be $5.0–$5.1 billion, +17% to +19% versus 2020
-
- Volume expected to grow mid-single digits
- Raw material-related price increases expected to add
significant sales growth
- Acquisitions, net of divestitures, expected to add 1%
- EPS is expected to be $2.86–$2.96
-
- Reflects higher volume and higher metal margin
- Includes 2Q gain from real estate sale of $0.16 per share
- Adjusted EPS is expected to be $2.70–$2.80
- Based on this guidance framework, EBIT margin should be
11.7%–11.8%; adjusted EBIT margin should be 11.1%–11.2%
- Operating cash flow expected to be approximately $350 million
-
- Reflects inflationary impacts and planned working capital
investments to build and maintain higher inventory levels in our
Rod, Wire, and U.S. Spring businesses
- Additional guidance expectations:
-
- Depreciation and amortization $190
million
- Net interest expense $75
million
-
- Effective tax rate 23%
- Fully diluted shares 137 million
- Capital expenditures $120
million
- Dividends approximately $220
million
- Prior Guidance:
-
- Sales: $4.9–$5.1 billion
- EPS: $2.86–$3.06
- Adjusted EPS: $2.70–$2.90
- Operating cash flow: approximately $450
million
- Implied 4Q Guidance:
-
- Sales are expected to be $1.26–$1.36 billion
- EPS is expected to be $.69–$.79
SEGMENT RESULTS – Third Quarter 2021 (versus 3Q
2020)
Bedding Products –
- Trade sales increased 13%
-
- Volume decreased 8%, primarily from challenges with chemical
and labor availability in the U.S. bedding market and European
demand returning to more normal seasonal levels
- Raw material-related selling price increases added 19%
- Currency benefit increased sales 1%
- Acquisitions, net of divestitures, added 1% to sales
growth
-
- The Kayfoam acquisition completed in June 2021 contributed 3% to sales
- Divestitures of small operations in Drawn Wire decreased sales
by 2%
- EBIT increased $5 million,
primarily from higher metal margin, partially offset by lower
volume, production inefficiencies driven by supply chain
constraints, and higher freight costs
Specialized Products –
- Trade sales decreased 3%
-
- Volume decreased 7% from lower sales in Automotive due to
semiconductor shortages impacting global automotive production,
partially offset by sales growth in Hydraulic Cylinders and
Aerospace
- Currency benefit increased sales 3%
- Small Aerospace acquisition added 1% to sales
- EBIT decreased $10 million,
primarily from lower volume in Automotive
Furniture, Flooring & Textile Products –
- Trade sales increased 12%
-
- Volume decreased 1%, with growth in Work Furniture and Home
Furniture more than offset by declines in Textiles and
Flooring
- Raw material-related selling price increases added 13%
- EBIT decreased $1 million,
primarily from 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, November 2. 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 7,
2022, with a conference call the next morning.
FOR MORE INFORMATION: Visit Leggett's website at
www.leggett.com.
COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a
diversified manufacturer that designs and produces a broad variety
of engineered components and products that can be found in most
homes and automobiles. The 138-year-old Company is comprised of 15
business units, approximately 20,000 employees, and over 130
manufacturing facilities located in 18 countries. Leggett
& Platt is a member of the S&P 500 and the S&P 500
Dividend Aristocrats, and is one of Fortune's
World's Most Admired Companies.
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, raw
material-related price increases; volume growth; acquisition and
divestiture activity; the amount of sales, EPS, capital
expenditures, depreciation and amortization, net interest expense,
fully diluted shares, operating cash flow; our EBIT margin,
adjusted EBIT margin, effective tax rate, amount of dividends, and
higher metal margins. 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 had, and depending on the length and severity of
the pandemic and the percentage of the population vaccinated and
effectiveness of any vaccines, could, in varying degrees,
negatively impact (a) the demand for our products and our
customers' products, growth rates in the industries in which we
participate, and opportunities in those industries, (b) our
manufacturing facilities' ability to remain fully operational,
obtain necessary raw materials 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) our ability to deleverage;
(iii) our 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 microchips and chemicals)
due to supply chain disruptions or otherwise, labor, and energy
costs; (viii) cash generation sufficient to pay the dividend; (ix)
cash repatriation from foreign accounts; (x) our ability to pass
along raw material cost increases through increased selling prices;
(xi) changing tax rates, increased trade costs, cybersecurity
breaches, customer losses and insolvencies, disruption to our steel
rod mill, foreign currency fluctuation, the imposition or
continuation of anti-dumping duties on innersprings, steel wire rod
and mattresses; data privacy, climate change and ESG obligations,
and litigation risks; and (xii) 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
|
LEGGETT &
PLATT
|
|
|
|
|
|
|
|
November 1,
2021
|
RESULTS OF
OPERATIONS 1
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
(In millions, except
per share data)
|
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
Trade
sales
|
|
$
1,319.2
|
|
$
1,207.6
|
|
9%
|
|
$
3,739.7
|
|
$
3,098.2
|
|
21%
|
Cost of goods
sold
|
|
1,063.1
|
|
937.9
|
|
|
|
2,966.8
|
|
2,461.2
|
|
|
Gross
profit
|
|
256.1
|
|
269.7
|
|
(5)%
|
|
772.9
|
|
637.0
|
|
21%
|
Selling &
administrative expenses
|
|
103.6
|
|
105.6
|
|
(2)%
|
|
322.5
|
|
320.6
|
|
1%
|
Amortization
|
|
17.8
|
|
16.2
|
|
|
|
51.6
|
|
48.9
|
|
|
Other expense
(income), net
|
|
(9.5)
|
|
(2.3)
|
|
|
|
(45.0)
|
|
16.0
|
|
|
Earnings
before interest and taxes
|
|
144.2
|
|
150.2
|
|
(4)%
|
|
443.8
|
`
|
251.5
|
|
76%
|
Net interest
expense
|
|
18.4
|
|
20.4
|
|
|
|
55.5
|
|
60.8
|
|
|
Earnings
before income taxes
|
|
125.8
|
|
129.8
|
|
|
|
388.3
|
|
190.7
|
|
|
Income
taxes
|
|
28.6
|
|
22.7
|
|
|
|
91.3
|
|
45.6
|
|
|
Net
earnings
|
|
97.2
|
|
107.1
|
|
|
|
297.0
|
|
145.1
|
|
|
Less net income from
non-controlling interest
|
|
-
|
|
(0.1)
|
|
|
|
(0.1)
|
|
(0.1)
|
|
|
Net
Earnings Attributable to L&P
|
|
$
97.2
|
|
$
107.0
|
|
(9)%
|
|
$
296.9
|
|
$
145.0
|
|
105%
|
Earnings per diluted
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
|
$
0.71
|
|
$
0.79
|
|
(10)%
|
|
$
2.17
|
|
$
1.07
|
|
103%
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock (at end of period)
|
|
133.4
|
|
132.5
|
|
.7%
|
|
133.4
|
|
132.5
|
|
.7%
|
Basic
(average for period)
|
|
136.4
|
|
135.8
|
|
|
|
136.2
|
|
135.6
|
|
|
Diluted
(average for period)
|
|
136.9
|
|
136.1
|
|
.6%
|
|
136.7
|
|
135.8
|
|
.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW
1
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
(In
millions)
|
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
Net
earnings
|
|
$
97.2
|
|
$
107.1
|
|
|
|
$
297.0
|
|
$
145.1
|
|
|
Depreciation and
amortization
|
|
46.6
|
|
47.0
|
|
|
|
140.8
|
|
141.0
|
|
|
Working capital
decrease (increase)
|
|
(104.4)
|
|
107.8
|
|
|
|
(367.9)
|
|
20.4
|
|
|
Impairments
|
|
-
|
|
-
|
|
|
|
-
|
|
29.4
|
|
|
Other operating
activities
|
|
10.7
|
|
(0.6)
|
|
|
|
10.5
|
|
47.9
|
|
|
Net
Cash from Operating Activities
|
|
$
50.1
|
|
$
261.3
|
|
(81)%
|
|
$
80.4
|
|
$
383.8
|
|
(79)%
|
Additions to
PP&E
|
|
(26.8)
|
|
(9.3)
|
|
|
|
(75.8)
|
|
(52.3)
|
|
|
Purchase of
companies, net of cash
|
|
(0.4)
|
|
-
|
|
|
|
(152.3)
|
|
-
|
|
|
Proceeds from
business and asset sales
|
|
7.7
|
|
2.4
|
|
|
|
38.6
|
|
6.0
|
|
|
Dividends
paid
|
|
(56.0)
|
|
(52.9)
|
|
|
|
(162.3)
|
|
(158.5)
|
|
|
Repurchase of common
stock, net
|
|
0.4
|
|
(1.4)
|
|
|
|
(6.6)
|
|
(9.0)
|
|
|
Additions (payments)
to debt, net
|
|
33.6
|
|
(172.7)
|
|
|
|
164.9
|
|
(164.7)
|
|
|
Other
|
|
(5.5)
|
|
8.8
|
|
|
|
(1.1)
|
|
(7.9)
|
|
|
Increase (Decrease) in Cash & Equivalents
|
|
$
3.1
|
|
$
36.2
|
|
|
|
$
(114.2)
|
|
$
(2.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL POSITION
1
|
|
Sep
30,
|
|
Dec
31,
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
234.7
|
|
$
348.9
|
|
|
|
|
|
|
|
|
Receivables
|
|
699.1
|
|
563.6
|
|
|
|
|
|
|
|
|
Inventories
|
|
970.2
|
|
691.5
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
79.6
|
|
54.1
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
1,983.6
|
|
1,658.1
|
|
20%
|
|
|
|
|
|
|
Net fixed
assets
|
|
780.3
|
|
784.8
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
189.0
|
|
161.6
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,456.7
|
|
1,388.8
|
|
|
|
|
|
|
|
|
Intangible assets and
deferred costs, both at net
|
|
825.5
|
|
806.7
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
5,235.1
|
|
$
4,800.0
|
|
9%
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
607.1
|
|
$
552.2
|
|
|
|
|
|
|
|
|
Current debt
maturities
|
|
300.4
|
|
50.9
|
|
|
|
|
|
|
|
|
Current operating
lease liabilities
|
|
43.6
|
|
42.4
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
|
386.9
|
|
360.5
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
1,338.0
|
|
1,006.0
|
|
33%
|
|
|
|
|
|
|
Long-term
debt
|
|
1,765.6
|
|
1,849.3
|
|
(5)%
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
149.1
|
|
122.1
|
|
|
|
|
|
|
|
|
Deferred taxes and
other liabilities
|
|
404.8
|
|
397.5
|
|
|
|
|
|
|
|
|
Equity
|
|
1,577.6
|
|
1,425.1
|
|
11%
|
|
|
|
|
|
|
Total
Capitalization
|
|
3,897.1
|
|
3,794.0
|
|
3%
|
|
|
|
|
|
|
TOTAL
LIABILITIES & EQUITY
|
|
$
5,235.1
|
|
$
4,800.0
|
|
9%
|
|
|
|
|
|
|
|
1
Effective 1/1/21: domestic steel-related inventory valuation
methodology changed from LIFO to FIFO; all prior periods presented
have been retrospectively adjusted to apply the effects of the
change.
|
LEGGETT &
PLATT
|
|
|
|
|
|
|
|
November 1,
2021
|
|
SEGMENT RESULTS
1, 2
|
|
THIRD
QUARTER
|
|
YEAR TO
DATE
|
|
(In
millions)
|
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
Bedding
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
sales
|
|
$
664.1
|
|
$
589.8
|
|
13%
|
|
$
1,808.6
|
|
$
1,491.0
|
|
21%
|
|
EBIT
|
|
81.1
|
|
75.8
|
|
7%
|
|
245.3
|
|
123.0
|
|
99%
|
|
EBIT
margin
|
|
12.2%
|
|
12.9%
|
|
-70
bps
|
3
|
13.6%
|
|
8.2%
|
|
540
bps
|
3
|
Note
impairment
|
|
-
|
|
-
|
|
|
|
-
|
|
8.4
|
|
|
|
Restructuring-related
charges
|
|
-
|
|
0.7
|
|
|
|
-
|
|
2.6
|
|
|
|
Gain on sale of real
estate
|
|
-
|
|
-
|
|
|
|
(28.2)
|
|
-
|
|
|
|
Adjusted
EBIT
|
|
81.1
|
|
76.5
|
|
6%
|
|
217.1
|
|
134.0
|
|
62%
|
|
Adjusted EBIT
margin
|
|
12.2%
|
|
13.0%
|
|
-80
bps
|
|
12.0%
|
|
9.0%
|
|
300
bps
|
|
Depreciation and
amortization
|
|
27.3
|
|
26.6
|
|
|
|
79.8
|
|
79.7
|
|
|
|
Adjusted
EBITDA
|
|
108.4
|
|
103.1
|
|
5%
|
|
296.9
|
|
213.7
|
|
39%
|
|
Adjusted EBITDA
margin
|
|
16.3%
|
|
17.5%
|
|
-120
bps
|
|
16.4%
|
|
14.3%
|
|
210
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
sales
|
|
$
235.6
|
|
$
242.9
|
|
(3)%
|
|
$
734.9
|
|
$
618.2
|
|
19%
|
|
EBIT
|
|
22.4
|
|
32.6
|
|
31%
|
|
85.0
|
|
40.6
|
|
109%
|
|
EBIT
margin
|
|
9.5%
|
|
13.4%
|
|
-390
bps
|
|
11.6%
|
|
6.6%
|
|
500
bps
|
|
Restructuring-related
charges
|
|
-
|
|
3.8
|
|
|
|
-
|
|
3.8
|
|
|
|
Goodwill
impairment
|
|
-
|
|
-
|
|
|
|
-
|
|
25.4
|
|
|
|
Adjusted
EBIT
|
|
22.4
|
|
36.4
|
|
(38)%
|
|
85.0
|
|
69.8
|
|
22 %
|
|
Adjusted EBIT
Margin
|
|
9.5%
|
|
15.0%
|
|
-550
bps
|
|
11.6%
|
|
11.3%
|
|
30
bps
|
|
Depreciation and
amortization
|
|
11.7
|
|
10.7
|
|
|
|
35.0
|
|
32.5
|
|
|
|
Adjusted
EBITDA
|
|
34.1
|
|
47.1
|
|
(28)%
|
|
120.0
|
|
102.3
|
|
17%
|
|
Adjusted EBITDA
margin
|
|
14.5%
|
|
19.4%
|
|
-490
bps
|
|
16.3%
|
|
16.5%
|
|
-20
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture,
Flooring & Textile Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
sales
|
|
$
419.5
|
|
$
374.9
|
|
12%
|
|
$
1,196.2
|
|
$
989.0
|
|
21%
|
|
EBIT
|
|
41.1
|
|
42.5
|
|
(3)%
|
|
114.1
|
|
91.6
|
|
25%
|
|
EBIT
margin
|
|
9.8%
|
|
11.3%
|
|
-150
bps
|
|
9.5%
|
|
9.3%
|
|
20
bps
|
|
Restructuring-related
charges
|
|
-
|
|
1.2
|
|
|
|
-
|
|
1.5
|
|
|
|
Adjusted
EBIT
|
|
41.1
|
|
43.7
|
|
(6)%
|
|
114.1
|
|
93.1
|
|
23%
|
|
Adjusted EBIT
Margin
|
|
9.8%
|
|
11.7%
|
|
-190
bps
|
|
9.5%
|
|
9.4%
|
|
10
bps
|
|
Depreciation and
amortization
|
|
6.0
|
|
6.3
|
|
|
|
18.1
|
|
19.1
|
|
|
|
Adjusted
EBITDA
|
|
47.1
|
|
50.0
|
|
(6)%
|
|
132.2
|
|
112.2
|
|
18%
|
|
Adjusted EBITDA
margin
|
|
11.2%
|
|
13.3%
|
|
-210
bps
|
|
11.1%
|
|
11.3%
|
|
-20
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
sales
|
|
$
1,319.2
|
|
$
1,207.6
|
|
9%
|
|
$
3,739.7
|
|
$
3,098.2
|
|
21%
|
|
EBIT -
segments
|
|
144.6
|
|
150.9
|
|
(4)%
|
|
444.4
|
|
255.2
|
|
74%
|
|
Intersegment
eliminations and other
|
|
(0.4)
|
|
(0.7)
|
|
|
|
(0.6)
|
|
(3.7)
|
|
|
|
EBIT
|
|
144.2
|
|
150.2
|
|
(4)%
|
|
443.8
|
|
251.5
|
|
76%
|
|
EBIT
margin
|
|
10.9%
|
|
12.4%
|
|
-150
bps
|
|
11.9%
|
|
8.1%
|
|
380
bps
|
|
Goodwill impairment
4
|
|
-
|
|
-
|
|
|
|
-
|
|
25.4
|
|
|
|
Note impairment
4
|
|
-
|
|
-
|
|
|
|
-
|
|
8.4
|
|
|
|
Stock write-off from
prior year divestiture 4
|
|
-
|
|
-
|
|
|
|
-
|
|
3.5
|
|
|
|
Restructuring-related charges4
|
|
-
|
|
5.7
|
|
|
|
-
|
|
7.9
|
|
|
|
Gain on
sale of real estate 4
|
|
-
|
|
-
|
|
|
|
(28.2)
|
|
-
|
|
|
|
Adjusted EBIT
4
|
|
144.2
|
|
155.9
|
|
(8)%
|
|
415.6
|
|
296.7
|
|
40%
|
|
Adjusted EBIT
margin 4
|
|
10.9%
|
|
12.9%
|
|
-200
bps
|
|
11.1%
|
|
9.6%
|
|
150
bps
|
|
Depreciation and
amortization - segments
|
|
45.0
|
|
43.6
|
|
|
|
132.9
|
|
131.3
|
|
|
|
Depreciation and
amortization - unallocated 5
|
|
1.6
|
|
3.4
|
|
|
|
7.9
|
|
9.7
|
|
|
|
Adjusted EBITDA
4
|
|
$
190.8
|
|
$
202.9
|
|
(6)%
|
|
$
556.4
|
|
$
437.7
|
|
27%
|
|
Adjusted EBITDA
margin
|
|
14.5%
|
|
16.8%
|
|
-230
bps
|
|
14.9%
|
|
14.1%
|
|
80
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAST SIX QUARTERS
1
|
|
2020
|
|
2021
|
|
Selected Figures
(In Millions)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
Trade
sales
|
|
845.1
|
|
1,207.6
|
|
1,182.0
|
|
1,150.9
|
|
1,269.6
|
|
1,319.2
|
|
Sales growth (vs.
prior year)
|
|
(30)%
|
|
(3)%
|
|
3%
|
|
10%
|
|
50%
|
|
9%
|
|
Volume growth (same
locations vs. prior year)
|
|
(29)%
|
|
(3)%
|
|
3%
|
|
4%
|
|
31%
|
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
4
|
|
50.3
|
|
155.9
|
|
156.0
|
|
127.7
|
|
143.7
|
|
144.2
|
|
Cash from
operations
|
|
112.1
|
|
261.3
|
|
218.8
|
|
(10.6)
|
|
40.9
|
|
50.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(trailing twelve months) 4
|
|
596.3
|
|
610.6
|
|
642.1
|
|
677.9
|
|
772.9
|
|
760.8
|
|
(Long-term debt +
current maturities - cash and equivalents) / adj. EBITDA
4,6
|
|
3.23
|
|
2.81
|
|
2.42
|
|
2.46
|
|
2.32
|
|
2.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales (Vs.
Prior Year) 7
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
Bedding
Products
|
|
(28)%
|
|
(1)%
|
|
5%
|
|
12%
|
|
50%
|
|
12%
|
|
Specialized
Products
|
|
(47)%
|
|
(9)%
|
|
1%
|
|
9%
|
|
69%
|
|
(4)%
|
|
Furniture, Flooring
& Textile Products
|
|
(25)%
|
|
(2)%
|
|
3%
|
|
12%
|
|
43%
|
|
12%
|
|
Overall
|
|
(31)%
|
|
(3)%
|
|
3%
|
|
11%
|
|
50%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Segment
and overall company margins calculated on net trade
sales.
|
|
3 bps =
basis points; a unit of measure equal to 1/100th of 1%.
|
|
4 Refer to
next page for non-GAAP reconciliations.
|
|
5 Consists
primarily of depreciation of non-operating assets.
|
|
6 EBITDA
based on trailing twelve months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 Trade
sales excluding sales attributable to acquisitions and divestitures
consummated in the last 12 months.
|
|
LEGGETT &
PLATT
|
|
|
|
|
|
|
|
November 1,
2021
|
RECONCILIATION OF
REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES 1,
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments 8
|
|
2020
|
|
2021
|
(In millions, except
per share data)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
Goodwill
impairment
|
|
25.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Restructuring-related
charges
|
|
2.2
|
|
5.7
|
|
-
|
|
-
|
|
-
|
|
-
|
Gain on sale of real
estate
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(28.2)
|
|
-
|
Non-GAAP
Adjustments (Pretax) 9
|
|
27.6
|
|
5.7
|
|
-
|
|
-
|
|
(28.2)
|
|
-
|
Income tax
impact
|
|
(0.2)
|
|
(1.3)
|
|
-
|
|
-
|
|
6.9
|
|
-
|
Non-GAAP
Adjustments (After Tax)
|
|
27.4
|
|
4.4
|
|
-
|
|
-
|
|
(21.3)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
135.7
|
|
136.1
|
|
136.2
|
|
136.3
|
|
136.8
|
|
136.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Impact of
Non-GAAP Adjustments
|
|
0.2
|
|
0.0
|
|
-
|
|
-
|
|
(0.2)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT,
EBITDA, Margin, and EPS 8
|
|
2020
|
|
2021
|
(In millions, except
per share data)
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
Trade
sales
|
|
845.1
|
|
1,207.6
|
|
1,182.0
|
|
1,150.9
|
|
1,269.6
|
|
1,319.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (earnings before
interest and taxes)
|
|
22.7
|
|
150.2
|
|
156.0
|
|
127.7
|
|
171.9
|
|
144.2
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
27.6
|
|
5.7
|
|
-
|
|
-
|
|
(28.2)
|
|
-
|
Adjusted
EBIT
|
|
50.3
|
|
155.9
|
|
156.0
|
|
127.7
|
|
143.7
|
|
144.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
margin
|
|
2.7%
|
|
12.4%
|
|
13.2%
|
|
11.1%
|
|
13.5%
|
|
10.9%
|
Adjusted EBIT
Margin
|
|
6.0%
|
|
12.9%
|
|
13.2%
|
|
11.1%
|
|
11.3%
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
22.7
|
|
150.2
|
|
156.0
|
|
127.7
|
|
171.9
|
|
144.2
|
Depreciation and
amortization
|
|
46.5
|
|
47.0
|
|
48.4
|
|
46.1
|
|
48.1
|
|
46.6
|
EBITDA
|
|
69.2
|
|
197.2
|
|
204.4
|
|
173.8
|
|
220.0
|
|
190.8
|
Non-GAAP adjustments
(pretax and excluding interest)
|
|
27.6
|
|
5.7
|
|
-
|
|
-
|
|
(28.2)
|
|
-
|
Adjusted
EBITDA
|
|
96.8
|
|
202.9
|
|
204.4
|
|
173.8
|
|
191.8
|
|
190.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
8.2%
|
|
16.3%
|
|
17.3%
|
|
15.1%
|
|
17.3%
|
|
14.5%
|
Adjusted EBITDA
Margin
|
|
11.5%
|
|
16.8%
|
|
17.3%
|
|
15.1%
|
|
15.1%
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
(0.05)
|
|
0.79
|
|
0.79
|
|
0.64
|
|
0.82
|
|
0.71
|
EPS impact of
non-GAAP adjustments
|
|
0.20
|
|
0.03
|
|
-
|
|
-
|
|
(0.16)
|
|
-
|
Adjusted
EPS
|
|
0.15
|
|
0.82
|
|
0.79
|
|
0.64
|
|
0.66
|
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to
Adjusted EBITDA 10
|
|
2020
|
|
2021
|
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
Total debt
|
|
2,134.3
|
|
1,960.2
|
|
1,900.2
|
|
2,003.7
|
|
2,025.7
|
|
2,066.0
|
Less: cash and
equivalents
|
|
(208.8)
|
|
(245.0)
|
|
(348.9)
|
|
(333.8)
|
|
(231.6)
|
|
(234.7)
|
Net debt
|
|
1,925.5
|
|
1,715.2
|
|
1,551.3
|
|
1,669.9
|
|
1,794.1
|
|
1,831.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing 12 months
|
|
596.3
|
|
610.6
|
|
642.1
|
|
677.9
|
|
772.9
|
|
760.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt / Leggett
Reported 12-month Adjusted EBITDA
|
|
3.23
|
|
2.81
|
|
2.42
|
|
2.46
|
|
2.32
|
|
2.41
|
|
8 Management and investors use these
measures as supplemental information to assess operational
performance.
|
9 The
non-GAAP adjustments affected various line items on the income
statement. Details by quarter: 2Q 2020: ($0.2) COGS, $27.8 million
other expense. 3Q 2020: $5.1 million other expense,
$0.6 million COGS. 2Q 2021: ($28.2) million other
income.
|
10
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.
|
11
Calculations impacted by rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/leggett--platt-reports-record-3q-sales-301413315.html
SOURCE Leggett & Platt