Record Q1 Adjusted EPS; 38% Increase Over PY
Adjusted Operating Income Up 170 bps
CALHOUN, Ga., May 7, 2015 /CNW/ -- Mohawk Industries, Inc. (NYSE: MHK) today announced 2015 first quarter net earnings of $22 million and diluted earnings per share (EPS) of $.30. Excluding unusual charges, net earnings were $125 million and EPS was $1.70, a 38% increase over last year's first quarter adjusted EPS and the highest Q1 adjusted EPS in the company's history. Net sales for the first quarter of 2015 were $1.9 billion, an increase of approximately 4% versus the prior year's first quarter or 6% on a constant days and currency exchange rate basis excluding a 2014 disposition of a ceramic plant. For the first quarter of 2014, net sales were $1.8 billion, net earnings were $81 million and EPS was $1.11; excluding unusual charges, net earnings were $90 million and EPS was $1.23.
Commenting on Mohawk Industries' first quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, "For the period, our adjusted operating margin was approximately 10%, an increase of 170 basis points compared to the prior year, as a result of new products, higher volume, and numerous productivity initiatives. We improved SG&A as a percent of sales by 90 basis points across the business, even as we expanded our sales organization, introduced leading product innovation and implemented merchandising systems that showcase our product value. Throughout the business, we are introducing new products across all categories that are being well received in their markets, generating sales growth and increasing margins."
Carpet Segment net sales for the quarter were $739 million, up approximately 10% over last year as reported or 4% on a constant days basis. Our adjusted operating income increased about 20% over the prior year with a margin of 5.5% as we reduced our SG&A as a percent of sales. SmartStrand® Forever Clean™, the next generation of our exclusive SmartStrand franchise, was launched in the first quarter, and continues to gain momentum in the market. We are expanding the sales of our premium Karastan carpet brand and increasing our participation in the builder and multifamily channels. In commercial carpet, we continue to improve sales and operating margin through innovative designs, process simplification and material optimization. We have completed our Continuum™ manufacturing expansion and are increasing sales in this faster growing polyester category.
Ceramic Segment net sales for the quarter were $720 million, up approximately 4% over last year as reported or an increase of approximately 9% on a constant days and currency exchange rate basis excluding a 2014 disposition of a ceramic plant. Even with the impact of the weaker euro and ruble, the segment's adjusted operating income grew 37% over the prior year to a margin of approximately 12%, an increase of 290 basis points. Our regional ceramic organizations are outperforming our competitors on a local basis as we leverage our product innovation, manufacturing expertise and distribution advantages. Our U.S. ceramic business continues to strengthen as we introduce unique products in all of our channels. For the eleventh consecutive year, retailers voted one of our ceramic collections as the best in the industry, underscoring our leadership in design and technical innovation. In Mexico, we are gaining significant share as a result of our leading styling and expanded distribution; and our margins are improving as we enhance our product mix and lower our costs. In Europe, our focus on bringing differentiated products to market has expanded our distribution and improved our average selling price. In Russia, the strong performance of our porcelain collections improved our mix and volume, yielding a higher operating profit in local currency than last year in a difficult environment.
Laminate and Wood Segment net sales for the quarter were $448 million, decreasing approximately 4% over last year as reported and increasing approximately 5% at a constant days and currency exchange rate basis. Adjusted operating margin for the segment was 14%, growing 280 basis points over the prior year. The segment's improved results were driven by positive volume, productivity improvements and successful product introductions, partially offset by the stronger dollar. On a local currency basis, our European laminate business showed improvement, with strong growth in the U.K., Australia and Russia, partially offset by lower sales in France. Sales of our new Impressive™ laminate collection have grown rapidly due to the product's richly detailed surface and exclusive water resistant technology. We are aggressively marketing new LVT collections produced at our facility in Belgium to generate sales volume and achieve our product expansion goals. In the U.S., new laminate product launches featuring our most realistic visuals and textures drove sales across all channels, with retailers selecting one of our collections as the best new laminate product, the fifth consecutive year we've received this honor. Sales of our engineered wood collections increased, in both our retail and new construction channels; and we announced a price increase for the category during the period.
We were pleased with our progress during the first quarter and anticipate the improving U.S. economy and a stronger flooring market will benefit our business for the remainder of the year. In the U.S., continued economic and income growth, low gasoline prices and interest rates and increased home values should drive our business throughout 2015. We expect our European sales in local currency to improve slightly, with new product innovations enhancing our mix along with manufacturing and productivity initiatives improving margins. In Russia, our leading brand and product positions combined with our efficient manufacturing will improve our market share in a challenging economy, while increased inflation and competition will impact our margins. Foreign currency will continue to negatively impact our results during the second quarter, with the current euro approximately 20% weaker and ruble approximately 30% lower than last year. This will be partially mitigated by our sales and productivity initiatives, SG&A reductions and cost improvement projects. Taking all of these factors into account, our guidance for second quarter earnings is $2.51 to $2.60 per share, excluding any earnings from new acquisitions or any restructuring charges. Our second quarter earnings guidance would have been approximately $0.25 per share higher on a constant exchange rate relative to last year. Assuming the transactions close in the second quarter, we estimate the IVC and Kai acquisitions will add $0.06 to $0.08 per share to earnings in the period.
We anticipate significant opportunities with our IVC acquisition, which will expand our participation in the LVT and fiberglass sheet vinyl categories in the U.S. and Europe, and our Kai acquisition, which will increase our ceramic participation in Eastern Europe. These acquisitions will improve our future growth, broaden our geographic coverage and solidify our position as the world's largest flooring manufacturer.
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, Bigelow, Daltile, Durkan, Karastan, Lees, Marazzi, Mohawk, Pergo, Unilin and Quick-Step. 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, China, 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, May 8, 2015 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 # 21829028. A replay will be available until Friday, May 22, 2015 by dialing 855-859-2056 for US/local calls and 404-537-3406 for International/Local calls and entering Conference ID # 21829028.
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MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
|
|
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|
|
|
|
|
|
|
|
Consolidated Statement of Operations
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Three Months Ended
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(Amounts in thousands, except per share data)
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|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
Net sales
|
|
$ 1,881,177
|
|
1,813,095
|
|
Cost of sales
|
|
1,369,234
|
|
1,331,740
|
|
Gross profit
|
|
511,943
|
|
481,355
|
|
Selling, general and administrative expenses
|
|
468,169
|
|
350,620
|
|
Operating income
|
|
43,774
|
|
130,735
|
|
Interest expense
|
|
16,449
|
|
22,096
|
|
Other expense (income), net
|
|
(1,083)
|
|
4,890
|
|
Earnings from continuing operations before income taxes
|
|
28,408
|
|
103,749
|
|
Income tax expense
|
|
5,904
|
|
22,696
|
|
Net earnings including noncontrolling interest
|
|
22,504
|
|
81,053
|
|
Net earnings (loss) attributable to noncontrolling interest
|
|
158
|
|
(28)
|
|
Net earnings attributable to Mohawk Industries, Inc.
|
|
$ 22,346
|
|
81,081
|
|
|
|
|
|
|
Basic earnings per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
Basic earnings per share attributable to Mohawk Industries, Inc.
|
|
$ 0.31
|
|
1.11
|
|
Weighted-average common shares outstanding - basic
|
|
72,988
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|
72,742
|
|
|
|
|
|
|
Diluted earnings per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
Diluted earnings per share attributable to Mohawk Industries, Inc.
|
|
$ 0.30
|
|
1.11
|
|
Weighted-average common shares outstanding - diluted
|
|
73,530
|
|
73,282
|
|
|
|
|
|
|
Other Financial Information
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|
|
|
|
(Amounts in thousands)
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|
|
|
|
|
Depreciation and amortization
|
|
$ 85,656
|
|
80,984
|
|
Capital expenditures
|
|
$ 105,794
|
|
122,081
|
|
|
|
|
|
|
Consolidated Balance Sheet Data
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|
|
|
|
|
(Amounts in thousands)
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|
|
|
|
|
April 4, 2015
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|
March 29, 2014
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ASSETS
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Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 107,041
|
|
72,645
|
|
Receivables, net
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|
1,158,858
|
|
1,174,895
|
|
Inventories
|
|
1,505,632
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|
1,632,236
|
|
Prepaid expenses and other current assets
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|
285,261
|
|
249,690
|
|
Deferred income taxes
|
|
147,027
|
|
133,808
|
|
Total current assets
|
|
3,203,819
|
|
3,263,274
|
|
Property, plant and equipment, net
|
|
2,618,633
|
|
2,745,057
|
|
Goodwill
|
|
1,553,155
|
|
1,721,792
|
|
Intangible assets, net
|
|
661,846
|
|
796,896
|
|
Deferred income taxes and other non-current assets
|
|
247,169
|
|
154,469
|
|
Total assets
|
|
$ 8,284,622
|
|
8,681,488
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
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|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Current portion of long-term debt and commercial paper
|
|
$ 1,806,175
|
|
654,871
|
|
Accounts payable and accrued expenses
|
|
1,085,805
|
|
1,188,644
|
|
Total current liabilities
|
|
2,891,980
|
|
1,843,515
|
|
Long-term debt, less current portion
|
|
606,080
|
|
1,811,789
|
|
Deferred income taxes and other long-term liabilities
|
|
562,767
|
|
532,740
|
|
Total liabilities
|
|
4,060,827
|
|
4,188,044
|
|
Total stockholders' equity
|
|
4,223,795
|
|
4,493,444
|
|
Total liabilities and stockholders' equity
|
|
$ 8,284,622
|
|
8,681,488
|
|
|
|
|
|
|
Segment Information
|
|
As of and for the Three Months Ended
|
|
(Amounts in thousands)
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
Carpet
|
|
$ 739,264
|
|
674,926
|
|
Ceramic
|
|
719,828
|
|
695,094
|
|
Laminate and Wood
|
|
448,398
|
|
468,008
|
|
Intersegment sales
|
|
(26,313)
|
|
(24,933)
|
|
Consolidated net sales
|
|
$ 1,881,177
|
|
1,813,095
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
Carpet
|
|
$ (89,994)
|
|
34,271
|
|
Ceramic
|
|
85,327
|
|
60,659
|
|
Laminate and Wood
|
|
58,901
|
|
44,119
|
|
Corporate and eliminations
|
|
(10,460)
|
|
(8,314)
|
|
Consolidated operating income
|
|
$ 43,774
|
|
130,735
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Carpet
|
|
$ 2,015,550
|
|
1,920,937
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|
Ceramic
|
|
3,584,471
|
|
3,782,006
|
|
Laminate and Wood
|
|
2,406,286
|
|
2,788,839
|
|
Corporate and eliminations
|
|
278,315
|
|
189,706
|
|
Consolidated assets
|
|
$ 8,284,622
|
|
8,681,488
|
|
|
|
|
|
|
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.
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|
(Amounts in thousands, except per share data)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
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|
|
|
|
|
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
Net earnings attributable to Mohawk Industries, Inc.
|
|
|
|
|
$ 22,346
|
|
81,081
|
|
|
|
|
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
|
|
12,529
|
|
11,725
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|
|
|
|
|
Legal settlement and reserve
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|
|
|
|
125,000
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|
-
|
|
|
|
|
|
Deferred loan costs
|
|
|
|
|
651
|
|
-
|
|
|
|
|
|
Income taxes
|
|
|
|
|
(35,554)
|
|
(2,391)
|
|
|
|
|
|
Adjusted net earnings attributable to Mohawk Industries, Inc.
|
|
|
|
|
$ 124,972
|
|
90,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc.
|
|
$ 1.70
|
|
1.23
|
|
|
|
|
|
Weighted-average common shares outstanding - diluted
|
|
|
|
|
73,530
|
|
73,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Diluted Earnings Per Share on a Constant Exchange Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
April 4, 2015
|
|
|
|
|
|
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc.
|
|
|
|
$ 1.70
|
|
|
|
|
|
Adjustment to constant exchange rate
|
|
|
|
|
|
|
0.20
|
|
|
|
|
|
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. on a constant exchange rate
|
|
|
|
|
$ 1.90
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 4, 2015
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt and commercial paper
|
|
|
$ 1,806,175
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
606,080
|
|
|
|
|
|
|
|
|
|
Less: Cash and cash equivalents
|
|
|
107,041
|
|
|
|
|
|
|
|
|
|
Net Debt
|
|
|
$ 2,305,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve
|
|
|
|
Three Months Ended
|
|
Months Ended
|
|
|
|
June 28, 2014
|
|
September 27, 2014
|
|
December 31, 2014
|
|
April 4, 2015
|
|
April 4, 2015
|
|
Operating income
|
|
|
$ 222,248
|
|
213,693
|
|
206,120
|
|
43,774
|
|
685,835
|
|
Other (expense) income
|
|
|
1,555
|
|
2,374
|
|
(9,737)
|
|
1,083
|
|
(4,725)
|
|
Net (earnings) loss attributable to non-controlling interest
|
|
|
(111)
|
|
6
|
|
(212)
|
|
(158)
|
|
(475)
|
|
Depreciation and amortization
|
|
|
83,754
|
|
85,167
|
|
95,665
|
|
85,656
|
|
350,242
|
|
EBITDA
|
|
|
307,446
|
|
301,240
|
|
291,836
|
|
130,355
|
|
1,030,877
|
|
Restructuring, acquisition and integration-related costs
|
|
|
10,224
|
|
11,311
|
|
21,859
|
|
8,169
|
|
51,563
|
|
Legal settlement and reserve
|
|
|
-
|
|
10,000
|
|
-
|
|
125,000
|
|
135,000
|
|
Adjusted EBITDA
|
|
|
$ 317,670
|
|
322,551
|
|
313,695
|
|
263,524
|
|
1,217,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate and Shipping Days
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Net sales
|
|
|
$ 1,881,177
|
|
1,813,095
|
|
|
|
|
|
|
|
Adjustment to net sales on constant shipping days
|
|
|
(105,125)
|
|
-
|
|
|
|
|
|
|
|
Adjustment to net sales on a constant exchange rate
|
|
|
136,782
|
|
-
|
|
|
|
|
|
|
|
Net sales on a constant exchange rate and shipping days
|
|
|
$ 1,912,834
|
|
1,813,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and Shipping Days
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Carpet
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Net sales
|
|
|
$ 739,264
|
|
674,926
|
|
|
|
|
|
|
|
Adjustment to net sales on constant shipping days
|
|
|
(40,500)
|
|
-
|
|
|
|
|
|
|
|
Adjustment to segment net sales on a constant exchange rate
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Segment net sales on a constant exchange rate and shipping days
|
|
|
$ 698,764
|
|
674,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net Sales to Proforma Segment Net Sales on a Constant Exchange Rate and Shipping Days
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Ceramic
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Net sales
|
|
|
$ 719,828
|
|
695,094
|
|
|
|
|
|
|
|
Adjustment to net sales on constant shipping days
|
|
|
(37,449)
|
|
-
|
|
|
|
|
|
|
|
Adjustment to segment net sales on a constant exchange rate
|
|
|
66,882
|
|
-
|
|
|
|
|
|
|
|
Exclusion of sales from 2014 disposal of French Ceramic Subsidiary
|
|
|
-
|
|
(8,700)
|
|
|
|
|
|
|
|
Segment proforma net sales on a constant exchange rate and shipping days
|
|
|
$ 749,261
|
|
686,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and Shipping Days
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Laminate and Wood
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Net sales
|
|
|
$ 448,398
|
|
468,008
|
|
|
|
|
|
|
|
Adjustment to net sales on constant shipping days
|
|
|
(27,176)
|
|
-
|
|
|
|
|
|
|
|
Adjustment to segment net sales on a constant exchange rate
|
|
|
69,900
|
|
-
|
|
|
|
|
|
|
|
Segment net sales on a constant exchange rate and shipping days
|
|
|
$ 491,122
|
|
468,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Gross Profit to Adjusted Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
$ 511,943
|
|
481,355
|
|
|
|
|
|
|
|
Adjustments to gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and integration-related costs
|
|
|
9,976
|
|
5,637
|
|
|
|
|
|
|
|
Adjusted gross profit
|
|
|
$ 521,919
|
|
486,992
|
|
|
|
|
|
|
|
Adjusted gross profit as a percent of net sales
|
|
|
27.7%
|
|
26.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
$ 468,169
|
|
350,620
|
|
|
|
|
|
|
|
Adjustments to selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
(2,553)
|
|
(6,088)
|
|
|
|
|
|
|
|
Legal settlement and reserve
|
|
|
(125,000)
|
|
-
|
|
|
|
|
|
|
|
Adjusted selling, general and administrative expenses
|
|
|
$ 340,616
|
|
344,532
|
|
|
|
|
|
|
|
Adjusted selling, general and administrative expenses as a percent of net sales
|
18.1%
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income to Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Operating income
|
|
|
$ 43,774
|
|
130,735
|
|
|
|
|
|
|
|
Adjustments to operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
12,529
|
|
11,725
|
|
|
|
|
|
|
|
Legal settlement and reserve
|
|
|
125,000
|
|
-
|
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
$ 181,303
|
|
142,460
|
|
|
|
|
|
|
|
Adjusted operating income as a percent of net sales
|
|
|
9.6%
|
|
7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Operating Income on a Constant Exchange Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Operating income
|
|
|
$ 43,774
|
|
130,735
|
|
|
|
|
|
|
|
Adjustments to operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
12,529
|
|
11,725
|
|
|
|
|
|
|
|
Legal settlement and reserve
|
|
|
125,000
|
|
-
|
|
|
|
|
|
|
|
Adjustment to operating income on constant exchange rates of Euro/USD: 1.12 vs 1.37 and Ruble/USD: 61.87 vs 35.01
|
21,000
|
|
-
|
|
|
|
|
|
|
|
Adjusted operating income on a constant exchange rate
|
|
|
$ 202,303
|
|
142,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Carpet
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Operating income
|
|
|
$ (89,994)
|
|
34,271
|
|
|
|
|
|
|
|
Adjustment to segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
5,945
|
|
-
|
|
|
|
|
|
|
|
Legal settlement and reserve
|
|
|
125,000
|
|
-
|
|
|
|
|
|
|
|
Adjusted segment operating income
|
|
|
$ 40,951
|
|
34,271
|
|
|
|
|
|
|
|
Adjusted operating income as a percent of net sales
|
|
|
5.5%
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Ceramic
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Operating income
|
|
|
$ 85,327
|
|
60,659
|
|
|
|
|
|
|
|
Adjustments to segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
362
|
|
1,981
|
|
|
|
|
|
|
|
Adjusted segment operating income
|
|
|
$ 85,689
|
|
62,640
|
|
|
|
|
|
|
|
Adjusted operating income as a percent of net sales
|
|
|
11.9%
|
|
9.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Ceramic
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Operating income
|
|
|
$ 85,327
|
|
60,659
|
|
|
|
|
|
|
|
Adjustments to segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
362
|
|
1,981
|
|
|
|
|
|
|
|
Adjustment to operating income on constant exchange rates of Euro/USD: 1.12 vs 1.37 and Ruble/USD: 61.87 vs 35.01
|
10,000
|
|
-
|
|
|
|
|
|
|
|
Adjusted segment operating income on a constant exchange rate
|
|
|
$ 95,689
|
|
62,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Laminate and Wood
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Operating income
|
|
|
$ 58,901
|
|
44,119
|
|
|
|
|
|
|
|
Adjustment to segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
5,035
|
|
9,576
|
|
|
|
|
|
|
|
Adjusted segment operating income
|
|
|
$ 63,936
|
|
53,695
|
|
|
|
|
|
|
|
Adjusted operating income as a percent of net sales
|
|
|
14.3%
|
|
11.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Laminate and Wood
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Operating income
|
|
|
$ 58,901
|
|
44,119
|
|
|
|
|
|
|
|
Adjustments to segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
|
5,035
|
|
9,576
|
|
|
|
|
|
|
|
Adjustment to operating income on a constant exchange rate of Euro/USD: 1.12 vs 1.37
|
|
|
11,000
|
|
-
|
|
|
|
|
|
|
|
Adjusted segment operating income on a constant exchange rate
|
|
|
$ 74,936
|
|
53,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
April 4, 2015
|
|
March 29, 2014
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
$ 5,904
|
|
22,696
|
|
|
|
|
|
|
|
Income tax effect of adjusting items
|
|
|
35,554
|
|
2,391
|
|
|
|
|
|
|
|
Adjusted income tax expense
|
|
|
$ 41,458
|
|
25,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax rate
|
|
|
25%
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company believes it is useful for itself and investors to review, as applicable, both GAAP and the above non-GAAP measures in order to assess the performance of the Company's business for planning and forecasting in subsequent periods. In particular, the Company believes excluding the impact of restructuring, acquisition and integration-related costs is useful because it allows investors to evaluate our performance for different periods on a more comparable basis.
|
|
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mohawk-industries-inc-announces-first-quarter-earnings-300079924.html
SOURCE Mohawk Industries, Inc.
Frank H. Boykin, Chief Financial Officer (706) 624-2695, http://www.mohawkind.comCopyright CNW Group 2015