CALHOUN, Ga., May 1, 2014 /PRNewswire/ -- Mohawk
Industries, Inc. (NYSE: MHK) today announced 2014 first quarter net
earnings of $81 million and diluted
earnings per share (EPS) of $1.11.
Excluding unusual charges, net earnings for the quarter were
$90 million; EPS was $1.23, a 41% increase over last year's first
quarter adjusted EPS. Net sales for the first quarter of 2014 were
approximately $1.8 billion, an
increase of 22% as reported and 21% on a constant exchange basis
versus the prior year's first quarter. In addition, the first
quarter had one less shipping day when compared to prior year,
which equates to approximately 1.5% of net sales. For the first
quarter of 2013, net sales were approximately $1.5 billion, net earnings were $50 million and EPS was $0.72; excluding unusual charges, net earnings
were $61 million and EPS was
$0.87.
Commenting on Mohawk Industries' first quarter performance,
Jeffrey S. Lorberbaum, Chairman and
CEO, stated, "First quarter earnings were higher than expected due
to our 2013 acquisitions, improved productivity across our business
and stronger results outside North
America, although severe winter weather in the U.S. impacted
sales. During the period, we continued making progress with our
acquisitions, including enhancing our organizational structures,
sales strategies, product offerings and productivity. Our adjusted
operating income for the quarter increased 47% to approximately 8%
of net sales as initiatives drove higher earnings across all
divisions and operational improvements gained traction in our
acquisitions."
For the quarter, the Carpet segment's adjusted operating margins
rose 60 basis points to 5.1% of net sales as a result of
productivity improvements, cost reductions and improved pricing.
Net sales for the segment were $675
million, down 3% as reported with one less day in the
period. The period was negatively impacted by the harsh weather
conditions in the U.S., with residential outperforming the other
categories. In residential, the company's ultra-soft products
continue to capture a greater share of the premium carpet category.
New Continuum products, made from up to 100% recycled polyester,
are gaining momentum at both the value added and promotional price
points. Last year's DuraColor commercial carpet collections, that
provide greater value and improved styling, are now among our
best-selling products, with higher efficiencies and margins for the
company. Numerous productivity projects across the segment
including operational enhancements, re-engineered materials and
capital investments are generating significant savings. A price
increase for carpet and freight was announced to offset material,
energy and transportation costs.
For the quarter, the Ceramic segment's adjusted operating
margins grew 160 basis points to 9.0% of net sales as a result of
higher volumes, efficiency gains and improved mix. Net sales for
the segment were $695 million, up 69%
compared to the prior year, primarily due to the Marazzi
acquisition and legacy sales growth in North America. The company's ceramic business
in North American expanded its design offerings and enhanced its
market position with new larger sizes, rectangles and longer
planks. The company announced the construction of a new U.S.
ceramic plant to manufacture premium products, with production
scheduled to start up by the end of 2015. The company's ceramic
business in Europe increased its
profitability through new sales and manufacturing strategies that
reduced cost and improved product mix. On a local basis, the
company's ceramic business in Russia significantly grew its revenues and
operating income with higher volumes and improved mix, despite a
slowing economy. We continue to improve productivity and conversion
costs across our worldwide ceramic operations.
For the quarter, the Laminate and Wood segment's adjusted
operating margins rose 110 basis points over the prior year to
11.5% of net sales, with productivity initiatives, acquisition
synergies and price increases partially offset by higher wood
costs. Net sales in the segment were $468
million, an increase of 16% over the prior year as reported
or 13% on a constant exchange rate, with most of the increase from
the Spano acquisition, higher volume in wood flooring and growth in
insulation boards. In the U.S., price and freight increases on wood
flooring were implemented in March to offset rising wood costs and
transportation expenses, with further price increases announced in
April. In Europe, the roll out of
our new updated Pergo laminate collections with improved design,
performance and installation systems should be complete in the
second quarter and should enhance our sales and market position.
Our new wood plant in the Czech
Republic will increase capacity so we can grow our business
in Europe, Russia and Asia. Our new insulation board plant is
allowing us to significantly expand sales in the Benelux region and
France. The integration of the
Unilin and Spano board businesses has improved our position through
the consolidation of production lines and sales organizations and
lower material and energy costs.
"Across the enterprise, our management team is executing
strategic initiatives to maximize our acquisitions and is
implementing best practices and process improvements to enhance our
legacy business," said Lorberbaum. "Although the pace of economic
improvement varies across our markets, we are driving innovation,
operational excellence and sales growth to optimize our results. In
each of our businesses, we have many local advantages, including
leading market positions, highly recognized brands, diverse
distribution and efficient manufacturing that position our
businesses for growth as each market improves.
"Although the weather in the first quarter impacted our U.S.
business, orders and shipments began improving as the period ended.
Our growth outside the U.S. was higher in the first period due to
warmer weather in Europe than last
year and better performance of our Russian ceramic introductions.
Across the business, we are implementing product and freight
increases as required to offset inflation. With these factors, our
guidance for second quarter earnings is $2.14 to $2.23 per share and for the full year
$8.00 to $8.30 per share, excluding
any unusual charges.
"We remain positive about both our strategies to enhance
Mohawk's results and the overall outlook for the floor covering
industry this year. We are planning to increase capital investments
across the enterprise to an all-time high of $500 million to support the introduction of
innovative products, to sustain our growth with increased
manufacturing capacity and to drive productivity, efficiency and
cost improvements. We remain focused on enhancing shareholder value
by increasing our top line growth and improving our bottom
line."
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, 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
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.
Conference call Friday,
May 2, 2014 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 # 23642005. A replay will
be available until Thursday, May 15,
2014 by dialing 1-855-859-2056 for US/local calls and
1-404-537-3406 for International/Local calls and entering
Conference ID # 23642005.
|
MOHAWK INDUSTRIES,
INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations
|
|
Three Months
Ended
|
|
(Amounts in
thousands, except per share data)
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
Net sales
|
|
$
1,813,095
|
|
1,486,815
|
|
Cost of
sales
|
|
1,331,740
|
|
1,109,749
|
|
Gross profit
|
|
481,355
|
|
377,066
|
|
Selling, general and
administrative expenses
|
|
350,620
|
|
290,224
|
|
Operating
income
|
|
130,735
|
|
86,842
|
|
Interest
expense
|
|
22,096
|
|
19,156
|
|
Other expense,
net
|
|
4,890
|
|
6,387
|
|
Earnings from continuing operations before income taxes
|
|
103,749
|
|
61,299
|
|
Income tax
expense
|
|
22,696
|
|
10,732
|
|
Net
earnings including noncontrolling interest
|
|
81,053
|
|
50,567
|
|
Net earnings
(loss) attributable to noncontrolling interest
|
|
(28)
|
|
72
|
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
$
81,081
|
|
50,495
|
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
1.11
|
|
0.73
|
|
Weighted-average
common shares outstanding - basic
|
|
72,742
|
|
69,375
|
|
|
|
|
|
|
Diluted earnings
per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
Diluted earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
1.11
|
|
0.72
|
|
Weighted-average
common shares outstanding - diluted
|
|
73,282
|
|
69,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
80,984
|
|
60,349
|
|
Capital
expenditures
|
|
$
122,081
|
|
63,282
|
|
|
|
|
|
|
Consolidated
Balance Sheet Data
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
72,645
|
|
1,120,167
|
|
Receivables, net
|
|
1,174,895
|
|
825,659
|
|
Inventories
|
|
1,632,236
|
|
1,230,250
|
|
Prepaid expenses and other current assets
|
|
249,690
|
|
157,011
|
|
Deferred income taxes
|
|
133,808
|
|
113,519
|
|
Total
current assets
|
|
3,263,274
|
|
3,446,606
|
|
Property, plant and
equipment, net
|
|
2,745,057
|
|
1,729,916
|
|
Goodwill
|
|
1,721,792
|
|
1,394,062
|
|
Intangible assets,
net
|
|
796,896
|
|
569,356
|
|
Deferred income taxes
and other non-current assets
|
|
154,469
|
|
121,905
|
|
Total assets
|
|
$
8,681,488
|
|
7,261,845
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
$
654,871
|
|
53,496
|
|
Accounts payable and
accrued expenses
|
|
1,188,644
|
|
824,135
|
|
Total
current liabilities
|
|
1,843,515
|
|
877,631
|
|
Long-term debt, less
current portion
|
|
1,811,789
|
|
2,253,020
|
|
Deferred income taxes
and other long-term liabilities
|
|
532,740
|
|
406,610
|
|
Total
liabilities
|
|
4,188,044
|
|
3,537,261
|
|
Total stockholders'
equity
|
|
4,493,444
|
|
3,724,584
|
|
Total liabilities and stockholders' equity
|
|
$
8,681,488
|
|
7,261,845
|
|
|
|
|
|
|
Segment
Information
|
|
As of and for the
Three Months Ended
|
|
(Amounts in
thousands)
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
Carpet
|
|
$
674,926
|
|
695,334
|
|
Ceramic
|
|
695,094
|
|
411,881
|
|
Laminate and Wood
|
|
468,008
|
|
404,475
|
|
Intersegment sales
|
|
(24,933)
|
|
(24,875)
|
|
Consolidated net sales
|
|
$
1,813,095
|
|
1,486,815
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
Carpet
|
|
$
34,271
|
|
25,238
|
|
Ceramic
|
|
60,659
|
|
29,976
|
|
Laminate and Wood
|
|
44,119
|
|
38,693
|
|
Corporate and eliminations
|
|
(8,314)
|
|
(7,065)
|
|
Consolidated operating income
|
|
$
130,735
|
|
86,842
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Carpet
|
|
$
1,920,937
|
|
1,802,241
|
|
Ceramic
|
|
3,782,006
|
|
1,795,828
|
|
Laminate and Wood
|
|
2,788,839
|
|
2,469,264
|
|
Corporate and eliminations
|
|
189,706
|
|
1,194,512
|
|
Consolidated assets
|
|
$
8,681,488
|
|
7,261,845
|
|
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
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
|
|
$
81,081
|
|
50,495
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
|
|
|
11,725
|
|
9,856
|
|
|
|
|
|
Interest on 3.85%
senior notes
|
|
|
|
-
|
|
3,559
|
|
|
|
|
|
Income
taxes
|
|
|
|
|
(2,391)
|
|
(2,780)
|
|
|
|
|
|
Adjusted
net earnings attributable to Mohawk Industries, Inc.
|
|
$
90,415
|
|
61,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to Mohawk Industries,
Inc.
|
|
1.23
|
|
0.87
|
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
|
|
|
73,282
|
|
69,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Total Debt to Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
$
654,871
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
1,811,789
|
|
|
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
72,645
|
|
|
|
|
|
|
|
|
|
Net Debt
|
|
|
|
$
2,394,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Proforma Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Trailing
Twelve
|
|
|
|
|
Three Months
Ended
|
|
Months
Ended
|
|
|
|
|
June 29,
2013
|
|
September 28,
2013
|
|
December 31,
2013
|
|
March 29,
2014
|
|
March 29,
2014
|
|
Operating
income
|
|
|
$
133,198
|
|
175,903
|
|
150,988
|
|
130,735
|
|
590,824
|
|
Other (expense) income
|
|
1,097
|
|
(1,168)
|
|
(2,656)
|
|
(4,890)
|
|
(7,617)
|
|
Net (earnings) loss attributable to
noncontrolling interest
|
190
|
|
(491)
|
|
(132)
|
|
28
|
|
(405)
|
|
Depreciation and amortization
|
|
80,643
|
|
81,550
|
|
86,329
|
|
80,984
|
|
329,506
|
|
EBITDA
|
|
|
215,128
|
|
255,794
|
|
234,529
|
|
206,857
|
|
912,308
|
|
Restructuring, acquisition and integration-related costs
|
|
41,321
|
|
24,431
|
|
37,812
|
|
11,725
|
|
115,289
|
|
Acquisitions purchase accounting (inventory step-up)
|
|
18,744
|
|
12,297
|
|
-
|
|
-
|
|
31,041
|
|
Adjusted
EBITDA
|
|
|
$
275,193
|
|
292,522
|
|
272,341
|
|
218,582
|
|
1,058,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Sales to Net Sales on a Constant Exchange Rate
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
1,813,095
|
|
1,486,815
|
|
|
|
|
|
|
|
Adjustment to net
sales on a constant exchange rate
|
|
|
|
(10,446)
|
|
-
|
|
|
|
|
|
|
Net sales on a
constant exchange rate
|
|
$
1,802,649
|
|
1,486,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange
Rate
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
Laminate and
Wood
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
468,008
|
|
404,475
|
|
|
|
|
|
|
|
Adjustment to segment
net sales on a constant exchange rate
|
(12,446)
|
|
-
|
|
|
|
|
|
|
|
Segment net sales on
a constant exchange rate
|
|
$
455,562
|
|
404,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Sales to Proforma Adjusted Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
1,813,095
|
|
1,486,815
|
|
|
|
|
|
|
|
Acquisition net
sales
|
|
|
-
|
|
310,000
|
|
|
|
|
|
|
|
Proforma adjusted net
sales
|
|
$
1,813,095
|
|
1,796,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Proforma Adjusted Segment Net
Sales
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
Ceramic
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Segment net
sales
|
|
|
$
695,094
|
|
411,881
|
|
|
|
|
|
|
|
Acquisition net
sales
|
|
|
-
|
|
268,000
|
|
|
|
|
|
|
|
Proforma adjusted
segment net sales
|
|
$
695,094
|
|
679,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Proforma Adjusted Segment Net
Sales
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
Laminate and
Wood
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Segment net
sales
|
|
|
$
468,008
|
|
404,475
|
|
|
|
|
|
|
|
Acquisition net
sales
|
|
|
-
|
|
42,000
|
|
|
|
|
|
|
|
Proforma adjusted
segment net sales
|
|
$
468,008
|
|
446,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Gross Profit to Adjusted Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
$
481,355
|
|
377,066
|
|
|
|
|
|
|
|
Adjustments to gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and integration-related costs
|
|
5,637
|
|
3,411
|
|
|
|
|
|
|
|
Adjusted gross profit
|
|
|
$
486,992
|
|
380,477
|
|
|
|
|
|
|
|
Adjusted gross
profit as a percent of net sales
|
|
26.9%
|
|
25.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Selling, General and Administrative Expenses to Adjusted Selling,
General and Administrative Expenses
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
$
350,620
|
|
290,224
|
|
|
|
|
|
|
|
Adjustments to
selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
|
(6,088)
|
|
(6,445)
|
|
|
|
|
|
|
|
Adjusted selling, general and administrative expenses
|
|
$
344,532
|
|
283,779
|
|
|
|
|
|
|
|
Adjusted selling,
general and administrative expenses as a percent
of net sales
|
19.0%
|
|
19.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Operating
income
|
|
|
$
130,735
|
|
86,842
|
|
|
|
|
|
|
|
Adjustments to
operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
11,725
|
|
9,856
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
142,460
|
|
96,698
|
|
|
|
|
|
|
|
Adjusted
operating margin as a percent of net sales
|
|
7.9%
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Carpet
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Operating
income
|
|
|
$
34,271
|
|
25,238
|
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
-
|
|
6,217
|
|
|
|
|
|
|
|
Adjusted segment
operating income
|
|
$
34,271
|
|
31,455
|
|
|
|
|
|
|
|
Adjusted
operating margin as a percent of net sales
|
|
5.1%
|
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Ceramic
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Operating
income
|
|
|
$
60,659
|
|
29,976
|
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
1,981
|
|
463
|
|
|
|
|
|
|
|
Adjusted segment operating income
|
|
$
62,640
|
|
30,439
|
|
|
|
|
|
|
|
Adjusted
operating margin as a percent of net sales
|
|
9.0%
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Laminate and
Wood
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Operating
income
|
|
|
$
44,119
|
|
38,693
|
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related costs
|
|
9,576
|
|
3,176
|
|
|
|
|
|
|
|
Adjusted segment operating income
|
|
$
53,695
|
|
41,869
|
|
|
|
|
|
|
|
Adjusted
operating margin as a percent of net sales
|
|
11.5%
|
|
10.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Earnings from Continuing Operations Before Income Taxes to Adjusted
Earnings from Continuing Operations Before Income
Taxes
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
|
$
103,749
|
|
61,299
|
|
|
|
|
|
|
|
Adjustments to
earnings from continuing operations before income taxes:
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
|
11,725
|
|
9,856
|
|
|
|
|
|
|
|
Interest on
3.85% senior notes
|
|
-
|
|
3,559
|
|
|
|
|
|
|
|
|
Adjusted
earnings from continuing operations before income taxes
|
|
$
115,474
|
|
74,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax
Expense
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
$
22,696
|
|
10,732
|
|
|
|
|
|
|
|
Income tax effect of
adjusting items
|
|
|
|
2,391
|
|
2,780
|
|
|
|
|
|
|
|
Adjusted
income tax expense
|
|
$
25,087
|
|
13,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
rate
|
|
22%
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
SOURCE Mohawk Industries, Inc.