CALHOUN, Ga., Nov. 3, 2011 /PRNewswire/ -- Mohawk Industries,
Inc. (NYSE: MHK) today announced 2011 third quarter net earnings of
$47 million and diluted earnings per
share (EPS) of $0.68. Adjusted net
earnings were $57 million and EPS was
$0.83 excluding the unusual items.
For the third quarter of 2010, the net earnings were $51 million and EPS was $0.74 both as reported and excluding unusual
items. Net sales for the third quarter of 2011 were $1.4 billion increasing 10% as reported and 8%
with a constant exchange rate. Our cash position at the end of the
quarter remains strong with $276
million and our net debt to adjusted EBITDA ratio was
2.1.
For the nine months ended October 1,
2011, net sales were $4.3
billion, an increase of approximately 5% as reported and 4%
with a constant exchange rate. For the nine-month period, net
earnings and EPS were $131 million
and $1.90, respectively. Excluding
unusual items, net earnings were $152
million and EPS was $2.21. For
the nine months ended October 2,
2010, net earnings were $140
million and EPS was $1.99.
Excluding unusual items in 2010, net earnings were $128 million and EPS was $1.86.
Commenting on the third quarter results, Jeffrey S. Lorberbaum, Chairman and CEO, stated,
“The Company’s third quarter results reflect an improvement in
sales and earnings over last year even with increased raw material
costs and consumer reluctance to invest in renovation projects.
Sales in both the residential and commercial categories expanded
with commercial renovation leading the growth and new residential
continuing to lag. Each segment continues to lower costs with new
processes, reduced infrastructure and investment in more efficient
assets.”
Our Mohawk segment net sales improved 6% as we improved our
position and grew in both residential and commercial categories.
Operating margins were lower due to price increases lagging
material inflation as well as continued pressure on our product mix
as consumers remain cautious about larger discretionary
investments. During the quarter, residential sales grew across most
channels and product categories. Commercial sales momentum
continued from the previous quarter, with both broadloom and carpet
tile achieving gains. During 2011, we implemented two price
increases that were fully realized by the end of the third quarter.
During the period, raw material costs were greater than anticipated
and the higher expense will impact our fourth quarter costs and
margins. We have implemented hundreds of manufacturing initiatives
yielding significant cost savings in 2011.
Our Dal-Tile segment net sales grew almost 11% during the period
with both residential and commercial categories showing gains with
product mix continuing to decline. In the comparable 2010 period,
business was lower than expected due to the flooding in our Mexican
facility from Hurricane Alex. During the quarter, we increased
sales in all channels with particular strength in home centers due
to additional commitments for our innovative mosaics, wall tile and
porcelain tile. Our Mexican ceramic sales grew significantly on a
local basis as we enhanced our penetration with new products and
broader distribution. We have implemented new manufacturing
processes to lower raw material costs, improve efficiency, reduce
production runs and improve distribution costs.
Our Unilin net sales increased approximately 19% as reported and
11% with a constant exchange rate. Sales in Europe increased across most channels and
regions, and our price increases are beginning to catch up with the
raw material inflation. We are implementing additional price
increases for roof panels and insulation boards to offset further
inflation in those products. Innovation in board manufacturing
processes is enhancing our efficiency and material yields. Despite
challenging market conditions, our European flooring products grew
by capitalizing on the strength of our Quick-Step brand, growing
our participation in the DIY channel, and expanding our wood
flooring category. In the U.S., sales of our laminate flooring grew
through expanded programs in all channels. We completed our Russian
laminate flooring plant on schedule and are initiating production.
We acquired the largest laminate and wood flooring distributor in
Australia, which expands our
strategy of getting closer to our customers and becoming more
responsive to local markets.
Mohawk’s strategy to maximize our long term results is reflected
in our international expansion in Mexico, Russia, China
and Australia, new technologies to
increase value, innovative product categories like Didit click
furniture and process enhancements to lower our cost position
across the enterprise. We remain confident in the future of
our business and will continue to adjust our tactics as economic
conditions change. In the fourth quarter, we will be impacted
by higher third quarter raw material costs; however we are
currently seeing some moderation which will benefit next year. We
will consider further price increases as appropriate and implement
additional cost reductions to improve the business. With these
factors, our fourth quarter guidance for earnings is $0.67 to $0.76 per share, excluding any
restructuring costs.
Our strategy in this environment focuses on lowering our cost
infrastructure, creating innovative products, maintaining a strong
balance sheet and targeting new investments for future growth.
Although the macro outlook is somewhat uncertain, we believe our
results for next year will reflect continued improvement.
Mohawk is a leading supplier of flooring for both residential
and commercial applications. Mohawk offers a complete
selection of carpet, ceramic tile, laminate, wood, stone, vinyl,
and rugs. These products are marketed under the premier
brands in the industry, which include Mohawk, Karastan, Lees,
Bigelow, Durkan, Daltile, American Olean, Unilin and Quick-Step.
Mohawk’s unique merchandising and marketing assist our
customers in creating the consumers’ dream. Mohawk provides a
premium level of service with its own trucking fleet and local
distribution in the U.S. Mohawk’s operational international
presence includes China,
Europe, Malaysia, Mexico and Russia.
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
in raw material prices and other input costs; 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.
There will be a conference call Friday,
November 4, 2011 at 11:00 AM Eastern
Time.
The telephone number to call is 1-800-603-9255 for
US/Canada and 1-706-634-2294 for
International/Local.
Conference ID # 17731505. A conference call replay will
also be available until November 18,
2011 by dialing 855-859-2056 for US/local calls and
404-537-3406 for International/Local calls and entering Conference
ID # 17731505
|
MOHAWK INDUSTRIES, INC. AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of
Operations
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
(Amounts in thousands, except
per share data)
|
|
October 1,
2011
|
|
October 2,
2010
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,442,512
|
|
1,309,552
|
|
4,263,961
|
|
4,056,874
|
|
|
Cost of sales
|
|
1,084,889
|
|
964,620
|
|
3,182,499
|
|
2,995,940
|
|
|
Gross
profit
|
|
357,623
|
|
344,932
|
|
1,081,462
|
|
1,060,934
|
|
|
Selling, general and
administrative expenses
|
|
266,159
|
|
259,750
|
|
832,214
|
|
832,405
|
|
|
Operating income
|
|
91,464
|
|
85,182
|
|
249,248
|
|
228,529
|
|
|
Interest expense
|
|
25,132
|
|
30,046
|
|
77,487
|
|
102,985
|
|
|
Other (income) expense,
net
|
|
13,413
|
|
(4,641)
|
|
13,794
|
|
(8,628)
|
|
|
Earnings before
income taxes
|
|
52,919
|
|
59,777
|
|
157,967
|
|
134,172
|
|
|
Income tax expense (benefit)
|
|
5,223
|
|
7,513
|
|
23,639
|
|
(8,327)
|
|
|
Net earnings
|
|
47,696
|
|
52,264
|
|
134,328
|
|
142,499
|
|
|
Net earnings attributable to
noncontrolling interest
|
|
(1,050)
|
|
(1,170)
|
|
(3,337)
|
|
(2,786)
|
|
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
$
46,646
|
|
51,094
|
|
130,991
|
|
139,713
|
|
|
Basic earnings per share
attributable to Mohawk Industries, Inc. (1)
|
$
0.68
|
|
0.74
|
|
1.91
|
|
1.99
|
|
|
Weighted-average common shares
outstanding - basic
|
|
68,759
|
|
68,593
|
|
68,725
|
|
68,567
|
|
|
Diluted earnings per share
attributable to Mohawk Industries, Inc. (1)
|
$
0.68
|
|
0.74
|
|
1.90
|
|
1.99
|
|
|
Weighted-average common shares
outstanding - diluted
|
|
68,954
|
|
68,773
|
|
68,946
|
|
68,764
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Basic earnings per
share attributable to Mohawk Industries, Inc. for the nine months
ended October 2, 2010, includes a decrease of approximately $0.05,
and diluted earnings per share attributable to Mohawk Industries,
Inc. for the nine months ended October 2, 2010, includes a decrease
of approximately $0.04, related to the change in fair value for a
redeemable noncontrolling interest in a consolidated subsidiary of
the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
$
109,598
|
|
121,417
|
|
138,188
|
|
210,394
|
|
|
Depreciation and
amortization
|
|
$
74,207
|
|
72,956
|
|
222,804
|
|
222,251
|
|
|
Capital expenditures
|
|
$
69,741
|
|
39,101
|
|
182,260
|
|
86,240
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet
Data
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$
276,156
|
|
365,835
|
|
|
Receivables,
net
|
|
|
|
|
|
775,421
|
|
697,491
|
|
|
Inventories
|
|
|
|
|
|
1,132,073
|
|
996,271
|
|
|
Prepaid expenses
and other current assets
|
|
|
|
|
|
125,007
|
|
114,876
|
|
|
Deferred income
taxes
|
|
|
|
|
|
131,931
|
|
119,729
|
|
|
Total
current assets
|
|
|
|
|
|
2,440,588
|
|
2,294,202
|
|
|
Property, plant and equipment,
net
|
|
|
|
|
|
1,696,182
|
|
1,680,541
|
|
|
Goodwill
|
|
|
|
|
|
1,389,430
|
|
1,389,057
|
|
|
Intangible assets,
net
|
|
|
|
|
|
634,164
|
|
710,934
|
|
|
Deferred income taxes and other
non-current assets
|
|
|
|
|
|
117,204
|
|
117,176
|
|
|
|
|
|
|
|
$
6,277,568
|
|
6,191,910
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
|
|
|
$
438,300
|
|
351,486
|
|
|
Accounts payable and
accrued expenses
|
|
|
|
|
|
774,939
|
|
779,825
|
|
|
Total
current liabilities
|
|
|
|
|
|
1,213,239
|
|
1,131,311
|
|
|
Long-term debt, less current
portion
|
|
|
|
|
|
1,173,038
|
|
1,303,151
|
|
|
Deferred income taxes and other
long-term liabilities
|
|
|
|
|
|
439,798
|
|
441,948
|
|
|
Total
liabilities
|
|
|
|
|
|
2,826,075
|
|
2,876,410
|
|
|
Noncontrolling
interest
|
|
|
|
|
|
32,758
|
|
34,121
|
|
|
Total stockholders'
equity
|
|
|
|
|
|
3,418,735
|
|
3,281,379
|
|
|
|
|
|
|
|
$
6,277,568
|
|
6,191,910
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
|
Three Months
Ended
|
|
As of or for
the Nine Months Ended
|
|
|
(Amounts in
thousands)
|
|
October 1,
2011
|
|
October 2,
2010
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
Mohawk
|
|
$
754,470
|
|
713,481
|
|
2,203,699
|
|
2,177,646
|
|
|
Dal-Tile
|
|
381,891
|
|
345,074
|
|
1,105,775
|
|
1,050,088
|
|
|
Unilin
|
|
329,514
|
|
276,594
|
|
1,018,443
|
|
890,859
|
|
|
Intersegment
sales
|
|
(23,363)
|
|
(25,597)
|
|
(63,956)
|
|
(61,719)
|
|
|
Consolidated net sales
|
|
$
1,442,512
|
|
1,309,552
|
|
4,263,961
|
|
4,056,874
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
Mohawk
|
|
$
30,946
|
|
31,127
|
|
79,187
|
|
74,100
|
|
|
Dal-Tile
|
|
33,073
|
|
33,913
|
|
82,911
|
|
77,432
|
|
|
Unilin
|
|
33,048
|
|
24,640
|
|
105,507
|
|
93,434
|
|
|
Corporate and
eliminations
|
|
(5,603)
|
|
(4,498)
|
|
(18,357)
|
|
(16,437)
|
|
|
Consolidated operating income
|
|
$
91,464
|
|
85,182
|
|
249,248
|
|
228,529
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
Mohawk
|
|
|
|
|
|
$
1,810,191
|
|
1,652,737
|
|
|
Dal-Tile
|
|
|
|
|
|
1,735,718
|
|
1,677,957
|
|
|
Unilin
|
|
|
|
|
|
2,569,103
|
|
2,542,233
|
|
|
Corporate and
eliminations
|
|
|
|
|
|
162,556
|
|
318,983
|
|
|
Consolidated assets
|
|
|
|
|
|
$
6,277,568
|
|
6,191,910
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
October 1, 2011
|
|
October 2,
2010
|
|
|
Net earnings attributable to
Mohawk Industries, Inc.
|
|
|
|
$
46,646
|
|
51,094
|
|
130,991
|
|
139,713
|
|
|
Unusual items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency losses (1)
|
|
|
|
9,085
|
|
-
|
|
9,085
|
|
-
|
|
|
Business
restructurings
|
|
|
|
2,186
|
|
3,330
|
|
15,513
|
|
12,263
|
|
|
Debt extinguishment
costs
|
|
|
|
1,116
|
|
-
|
|
1,116
|
|
7,514
|
|
|
Acquisitions purchase
accounting
|
|
|
|
-
|
|
1,713
|
|
-
|
|
1,713
|
|
|
U.S. customs
refund
|
|
|
|
|
-
|
|
(5,765)
|
|
-
|
|
(5,765)
|
|
|
Discrete tax items,
net
|
|
|
|
|
-
|
|
-
|
|
-
|
|
(24,407)
|
|
|
Income taxes
|
|
|
|
|
(1,761)
|
|
760
|
|
(4,597)
|
|
(2,999)
|
|
|
Adjusted net earnings
attributable to Mohawk Industries, Inc.
|
|
|
$
57,272
|
|
51,132
|
|
152,108
|
|
128,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per
share attributable to Mohawk Industries, Inc. (2)
|
|
0.83
|
|
0.74
|
|
2.21
|
|
1.86
|
|
|
Weighted-average common shares
outstanding - diluted
|
|
|
|
68,954
|
|
68,773
|
|
68,946
|
|
68,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Unrealized
foreign currency losses for certain of the Company's consolidated
foreign subsidiaries that measure financial conditions and results
using the U.S. dollar rather than the local currency.
|
|
|
|
|
|
|
(2) Diluted earnings per
share attributable to Mohawk Industries, Inc. for the nine months
ended October 2, 2010, excludes approximately $0.04 related to the
change in fair value for a redeemable noncontrolling interest in a
consolidated subsidiary of the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to
Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1,
2011
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term
debt
|
|
$
438,300
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current
portion
|
|
1,173,038
|
|
|
|
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
276,156
|
|
|
|
|
|
|
|
|
|
|
Net Debt
|
|
|
|
$
1,335,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating
Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve
|
|
|
|
|
|
Three Months
Ended
|
|
Months Ended
|
|
|
|
|
|
December 31,
2010
|
|
April 2,
2011
|
|
July 2,
2011
|
|
October 1, 2011
|
|
October 1,
2011
|
|
|
Operating income
|
|
|
$
85,640
|
|
56,084
|
|
101,700
|
|
91,464
|
|
334,888
|
|
|
Other (expense)
income
|
|
1,037
|
|
(15)
|
|
396
|
|
(13,413)
|
|
(11,995)
|
|
|
Unrealized foreign
currency losses (1)
|
|
-
|
|
-
|
|
-
|
|
9,085
|
|
9,085
|
|
|
U.S. customs
refund
|
|
|
1,965
|
|
-
|
|
-
|
|
-
|
|
1,965
|
|
|
Net earnings attributable
to noncontrolling interest
|
|
(1,678)
|
|
(1,096)
|
|
(1,191)
|
|
(1,050)
|
|
(5,015)
|
|
|
Depreciation and
amortization
|
|
74,522
|
|
74,253
|
|
74,344
|
|
74,207
|
|
297,326
|
|
|
EBITDA
|
|
|
161,486
|
|
129,226
|
|
175,249
|
|
160,293
|
|
626,254
|
|
|
Business
restructurings
|
|
-
|
|
6,813
|
|
6,514
|
|
2,186
|
|
15,513
|
|
|
Adjusted EBITDA
|
|
|
$
161,486
|
|
136,039
|
|
181,763
|
|
162,479
|
|
641,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Unrealized
foreign currency losses for certain of the Company's consolidated
foreign subsidiaries that measure financial conditions and results
using the U.S. dollar rather than the local currency.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Sales to
Adjusted Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
October 1,
2011
|
|
October 2, 2010
|
|
|
|
|
Net sales
|
|
|
|
$
1,442,512
|
|
1,309,552
|
|
4,263,961
|
|
4,056,874
|
|
|
|
|
Adjustments to net
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
|
|
|
(22,724)
|
|
-
|
|
(57,554)
|
|
-
|
|
|
|
|
Adjusted net
sales
|
|
|
$
1,419,788
|
|
1,309,552
|
|
4,206,407
|
|
4,056,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net
Sales to Adjusted Segment Net Sales
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
Unilin
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
329,514
|
|
276,594
|
|
|
|
|
|
|
|
|
Adjustment to net
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
|
|
|
(21,205)
|
|
-
|
|
|
|
|
|
|
|
|
Adjusted net
sales
|
|
|
$
308,309
|
|
276,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating
Income to Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
91,464
|
|
85,182
|
|
|
|
|
|
|
|
|
Adjustments to operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
restructurings
|
|
2,186
|
|
3,330
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
93,650
|
|
88,512
|
|
|
|
|
|
|
|
|
Adjusted operating margin
as a percent of net sales
|
|
6.5%
|
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment
Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
Mohawk
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
30,946
|
|
31,127
|
|
|
|
|
|
|
|
|
Adjustments to operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
restructurings
|
|
2,186
|
|
1,292
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
33,132
|
|
32,419
|
|
|
|
|
|
|
|
|
Adjusted operating margin
as a percent of net sales
|
|
4.4%
|
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dal-Tile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
33,073
|
|
33,913
|
|
|
|
|
|
|
|
|
Adjustments to operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
restructurings
|
|
-
|
|
1,223
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
33,073
|
|
35,136
|
|
|
|
|
|
|
|
|
Adjusted operating margin
as a percent of net sales
|
|
8.7%
|
|
10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unilin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
33,048
|
|
24,640
|
|
|
|
|
|
|
|
|
Adjustments to operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
restructurings
|
|
-
|
|
815
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
33,048
|
|
25,455
|
|
|
|
|
|
|
|
|
Adjusted operating margin
as a percent of net sales
|
|
10.0%
|
|
9.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Earnings
Before Income Taxes to Adjusted Earnings Before Income
Taxes
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
Earnings before income
taxes
|
|
$
52,919
|
|
59,777
|
|
|
|
|
|
|
|
|
Unusual items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency losses (1)
|
|
9,085
|
|
-
|
|
|
|
|
|
|
|
|
Business
restructurings
|
|
2,186
|
|
3,330
|
|
|
|
|
|
|
|
|
Debt extinguishment
costs
|
|
1,116
|
|
-
|
|
|
|
|
|
|
|
|
Acquisitions purchase
accounting
|
|
-
|
|
1,713
|
|
|
|
|
|
|
|
|
U.S. customs
refund
|
|
|
-
|
|
(5,765)
|
|
|
|
|
|
|
|
|
Adjusted earnings before
income taxes
|
|
$
65,306
|
|
59,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Unrealized
foreign currency losses for certain of the Company's consolidated
foreign subsidiaries that measure financial conditions and results
using the U.S. dollar rather than the local currency.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Tax
Expense to Adjusted Income Tax Expense
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
$
5,223
|
|
7,513
|
|
|
|
|
|
|
|
|
Unusual items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
1,761
|
|
(760)
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
$
6,984
|
|
6,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
rate
|
|
|
11%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Selling,
General and Administrative Expenses to Adjusted Selling, General
and Administrative Expenses
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
$
266,159
|
|
259,750
|
|
|
|
|
|
|
|
|
Adjustments to selling, general
and administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
|
|
|
(3,920)
|
|
-
|
|
|
|
|
|
|
|
|
Adjusted selling, general
and administrative expenses
|
|
$
262,239
|
|
259,750
|
|
|
|
|
|
|
|
|
Adjusted selling, general
and administrative expenses as a percent of net sales
|
18.2%
|
|
19.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Mohawk Industries, Inc.