-- Record Q1 Adjusted EPS; 38% Increase Over PY
-- Adjusted Operating Income Up 170 bps
CALHOUN, Georgia, May 7, 2015 /PRNewswire/ -- 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.
MOHAWK INDUSTRIES,
INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations
|
|
Three Months
Ended
|
(Amounts in
thousands, except per share data)
|
|
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
|
|
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
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
Depreciation and
amortization
|
|
$
85,656
|
|
80,984
|
Capital
expenditures
|
|
$
105,794
|
|
122,081
|
|
|
|
|
|
Consolidated
Balance Sheet Data
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
April 4,
2015
|
|
March 29,
2014
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
107,041
|
|
72,645
|
Receivables,
net
|
|
1,158,858
|
|
1,174,895
|
Inventories
|
|
1,505,632
|
|
1,632,236
|
Prepaid expenses and
other current assets
|
|
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
|
|
|
|
|
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
|
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.
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
Legal settlement and
reserve
|
|
|
|
|
125,000
|
|
-
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|