CALHOUN, Ga., Aug. 4, 2016 /CNW/ -- Mohawk Industries,
Inc. (NYSE: MHK) today announced 2016 second quarter record net
earnings of $255 million and diluted
earnings per share (EPS) of $3.42, a
35% increase versus prior year. Excluding restructuring,
acquisition and other charges, net earnings were $259 million and EPS was $3.47, a 29% increase over last year's second
quarter adjusted EPS. Net sales for the second quarter of 2016 were
$2.3 billion, up 13.2% versus the
prior year's second quarter or approximately 12.1% increase on a
constant days and currency exchange rate basis. For the second
quarter of 2015, net sales were $2.0
billion, net earnings were $186
million and EPS was $2.53;
excluding restructuring, acquisition and other charges, net
earnings were $199 million and EPS
was $2.69.
For the six months ending July 2,
2016, net earnings and EPS were $427
million and $5.73,
respectively. Net earnings excluding restructuring, acquisition and
other charges were $436 million and
EPS was $5.85, an increase of 33%
over the six-month period adjusted EPS result in 2015. For the six
month period, net sales were $4.5
billion, an increase of 14% versus prior year as reported or
15% on a constant currency basis. For the six-month period ending
July 4, 2015, net sales were
$3.9 billion, net earnings were
$209 million and EPS was $2.83; excluding restructuring, acquisition and
other charges, net earnings and EPS were $324 million and $4.39.
Commenting on Mohawk Industries' second quarter performance,
Jeffrey S. Lorberbaum, Chairman and
CEO, stated, "We delivered our highest sales for any quarter in the
company's history, and our earnings per share set an all-time
record for the company, marking the ninth consecutive quarter that
Mohawk has delivered a year over year record quarterly adjusted
EPS. Our operating margin rose to a second quarter record of 15.2%,
an increase of 270 basis points, or 15.4% on an adjusted basis, an
increase of 160 basis points, as a result of productivity, sales
volume, acquisitions and lower inputs, partially offset by
investments in SG&A and unfavorable price-mix.
"Our innovations in products and processes, investments in
efficiencies and integration of our acquisitions enhanced our
performance during the quarter and provide a foundation for
long-term growth. Our recent acquisitions are progressing as we
broaden their strategies, leverage their distribution and provide
additional resources. Across the enterprise, we are investing in
marketing to support our product introductions and expand our
distribution and sales.
"To optimize growth, we have initiated many capital projects
that will enhance our performance this year and beyond by expanding
our capacity and improving our efficiencies. We are in the final
stages of the start-up of our new U.S. ceramic, LVT and outdoor rug
operations as well as our European LVT plant. We have begun
additional expansion projects to support growth across our product
categories: LVT and premium laminate in the U.S. and Europe; ceramic tile in Mexico, Europe and Russia; and Continuum polyester carpet,
engineered wood and utility mats in the U.S. This year, we
anticipate our capital expenditures will exceed $600 million and will lead to higher future sales
and profits.
"For the quarter, our Global Ceramic Segment sales were up 5% as
reported; on a constant days and currency basis legacy sales were
up 4%. Operating income for the segment rose approximately
16% to an operating margin of 17%, which benefited from higher
volume, productivity and mix. Our North American ceramic business
continued to grow as we increased sales personnel and distribution
points. Our new Tennessee ceramic
plant is ahead of schedule with the last line becoming operational
in the third quarter. We are manufacturing higher value products at
the facility, including 48-inch wood planks and color body
porcelain tiles. We are focusing each of our North American plants
on specific products to optimize productivity and increase their
efficiency and quality. All of our Mexican ceramic capacity is
being utilized, and we will double the capacity of our Salamanca plant by fall of next year. Our
European ceramic sales continue to improve with expanded margins
and improved mix. We have initiated the final phase of our Italian
asset modernization, which will be completed during the first half
of next year. We are enhancing our Bulgarian product offering,
improving efficiencies and supplying product to Western European
and U.S. markets. Despite the decline of the Russian economy and
ceramic industry, our sales rose on a local currency basis with
improvements in volume, price and mix.
"During the quarter, our Flooring North America Segment's sales
were up 7% as reported; the legacy sales were up 1% on a constant
days basis. Operating income grew 25% to a margin of 12% as
reported and grew 16% excluding restructuring charges to a margin
of 13%, versus prior year. The segment's profitability improved, as
we increased investments in sales personnel, retail merchandising
and samples. Residential carpet margins expanded as a result of our
differentiated products, process innovations and investments that
lowered our cost structure. We continue to strengthen our
manufacturing performance with many process advances, higher yields
and material enhancements. Commercial carpet sales increased as we
strengthened our product offering and expanded our sales in all
channels. New innovations in laminate are differentiating our
products and expanding our market share. Our European operations
are providing product to support our laminate growth until our new
U.S. capacity is operational in the second half of next year. By
the end of this year, we will install more engineered wood
production to satisfy greater demand and produce higher value
products. Our vinyl business continues to expand as we increase the
product assortment and distribution of our LVT and sheet vinyl. By
the end of next year, we will double our U.S. LVT capacity and
enhance our capabilities in this fast growing category.
"For the quarter, our Flooring Rest of the World segment's sales
were up 51% as reported; on a constant days and currency basis
legacy sales were up 5%. Operating income grew 91% as
reported to a margin of 20% and grew 67% on a constant currency
basis, excluding restructuring and integration charges, to a margin
of 21%. Our flooring business continued to improve significantly,
led by growth in premium laminate and LVT. Our laminate mix
benefited from higher sales of our innovative new collections
featuring more realistic visuals and water resistance. We are
adding laminate capacity in Europe
to support the next generation of this unique technology. We are
expanding sheet vinyl sales in commercial channels to improve our
mix. LVT sales and margins increased as our mix and efficiencies
improved. To satisfy our anticipated LVT growth, a new production
line should be operational by the end of next year. During the
period, our panel sales and margins expanded, and the integration
of Xtratherm has enhanced our results.
"We are optimistic about our future performance as a result of
our ongoing investments in people, products and assets. Our current
booking trends have improved, and we anticipate that third quarter
sales growth will be higher on a local basis. We expect continued
margin expansion in all of our segments due to process
improvements, operational innovations and greater efficiencies.
Across the business, we are introducing differentiated new products
and leveraging customer relationships to increase our market
position. We are making significant investments to expand our
capacity and grow sales in all of our products and geographies. Our
LVT sales growth is accelerating, and our new plants are making
gains in capacity, productivity and efficiency. Taking these
factors into account, our third quarter EPS guidance is
$3.40 to $3.49, excluding any
restructuring charges.
"From 2013 through 2016, we will have invested about
$2 billion in new assets to drive
Mohawk's profitability. We have substantially integrated our recent
acquisitions, and with our strong organization and balance sheet we
can exploit additional opportunities. In every region, our
differentiated product collections, operational excellence and
extensive customer relationships give us advantages so we can
deliver strong results."
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, IVC, 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, 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, August 5,
2016, 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 # 47343802. A replay will be
available until Friday, September 2,
2016, by dialing 855-859-2056 for US/local calls and
404-537-3406 for International/Local calls and entering Conference
ID # 47343802.
MOHAWK INDUSTRIES,
INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(Amounts in
thousands, except per share data)
|
|
July 2,
2016
|
|
July 4,
2015
|
|
July 2,
2016
|
|
July 4,
2015
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,310,336
|
|
2,041,733
|
|
4,482,382
|
|
3,922,910
|
Cost of
sales
|
|
1,554,748
|
|
1,426,604
|
|
3,087,115
|
|
2,795,838
|
Gross profit
|
|
755,588
|
|
615,129
|
|
1,395,267
|
|
1,127,072
|
Selling, general and
administrative expenses
|
|
404,896
|
|
359,313
|
|
798,903
|
|
827,482
|
Operating
income
|
|
350,692
|
|
255,816
|
|
596,364
|
|
299,590
|
Interest
expense
|
|
10,351
|
|
16,838
|
|
22,652
|
|
33,287
|
Other expense
(income), net
|
|
(5,807)
|
|
2,928
|
|
(2,378)
|
|
1,845
|
Earnings before income taxes
|
|
346,148
|
|
236,050
|
|
576,090
|
|
264,458
|
Income tax
expense
|
|
90,034
|
|
49,276
|
|
147,859
|
|
55,180
|
Net
earnings including noncontrolling interest
|
|
256,114
|
|
186,774
|
|
428,231
|
|
209,278
|
Net earnings
attributable to noncontrolling interest
|
|
926
|
|
282
|
|
1,495
|
|
440
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
$
255,188
|
|
186,492
|
|
426,736
|
|
208,838
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
3.44
|
|
2.54
|
|
5.76
|
|
2.85
|
Weighted-average
common shares outstanding - basic
|
|
74,123
|
|
73,264
|
|
74,049
|
|
73,123
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
3.42
|
|
2.53
|
|
5.73
|
|
2.83
|
Weighted-average
common shares outstanding - diluted
|
|
74,574
|
|
73,756
|
|
74,526
|
|
73,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
411,620
|
|
317,165
|
|
549,380
|
|
267,519
|
Depreciation and
amortization
|
|
$
101,215
|
|
88,011
|
|
201,408
|
|
173,667
|
Capital
expenditures
|
|
$
136,081
|
|
122,628
|
|
276,914
|
|
228,422
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheet Data
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 2,
2016
|
|
July 4,
2015
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$
112,049
|
|
171,087
|
Receivables, net
|
|
|
|
|
|
1,448,898
|
|
1,387,687
|
Inventories
|
|
|
|
|
|
1,660,131
|
|
1,592,403
|
Prepaid expenses and other current assets
|
|
|
|
|
|
298,125
|
|
303,871
|
Total
current assets
|
|
|
|
|
|
3,519,203
|
|
3,455,048
|
Property, plant and
equipment, net
|
|
|
|
|
|
3,243,838
|
|
3,014,751
|
Goodwill
|
|
|
|
|
|
2,322,735
|
|
2,294,214
|
Intangible assets,
net
|
|
|
|
|
|
930,323
|
|
931,296
|
Deferred income taxes
and other non-current assets
|
|
|
|
|
|
296,732
|
|
461,774
|
Total assets
|
|
|
|
|
|
$
10,312,831
|
|
10,157,083
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
|
|
|
|
$
1,795,584
|
|
1,698,044
|
Accounts payable and
accrued expenses
|
|
|
|
|
|
1,334,150
|
|
1,282,831
|
Total
current liabilities
|
|
|
|
|
|
3,129,734
|
|
2,980,875
|
Long-term debt, less
current portion
|
|
|
|
|
|
1,160,700
|
|
1,769,241
|
Deferred income taxes
and other long-term liabilities
|
|
|
|
|
|
613,131
|
|
770,782
|
Total
liabilities
|
|
|
|
|
|
4,903,565
|
|
5,520,898
|
Redeemable
noncontrolling interest
|
|
|
|
|
|
23,683
|
|
21,304
|
Total stockholders'
equity
|
|
|
|
|
|
5,385,583
|
|
4,614,881
|
Total liabilities and stockholders' equity
|
|
|
|
|
|
$
10,312,831
|
|
10,157,083
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
|
Three Months
Ended
|
|
As of or for the Six
Months Ended
|
(Amounts in
thousands)
|
|
July 2,
2016
|
|
July 4,
2015
|
|
July 2,
2016
|
|
July 4,
2015
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
Global Ceramic
|
|
$
829,794
|
|
789,802
|
|
1,603,520
|
|
1,509,630
|
Flooring NA
|
|
980,693
|
|
920,337
|
|
1,887,057
|
|
1,767,248
|
Flooring ROW
|
|
499,849
|
|
331,622
|
|
991,805
|
|
646,364
|
Intersegment sales
|
|
-
|
|
(28)
|
|
-
|
|
(332)
|
Consolidated net sales
|
|
$
2,310,336
|
|
2,041,733
|
|
4,482,382
|
|
3,922,910
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
Global Ceramic
|
|
$
140,606
|
|
121,189
|
|
240,383
|
|
206,516
|
Flooring NA
|
|
118,946
|
|
95,143
|
|
194,297
|
|
19,951
|
Flooring ROW
|
|
101,062
|
|
53,052
|
|
180,599
|
|
97,693
|
Corporate and eliminations
|
|
(9,922)
|
|
(13,568)
|
|
(18,915)
|
|
(24,570)
|
Consolidated operating income
|
|
$
350,692
|
|
255,816
|
|
596,364
|
|
299,590
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
Global Ceramic
|
|
|
|
|
|
$
4,054,351
|
|
3,950,088
|
Flooring NA
|
|
|
|
|
|
3,316,048
|
|
3,182,465
|
Flooring ROW
|
|
|
|
|
|
2,835,497
|
|
2,710,895
|
Corporate and eliminations
|
|
|
|
|
|
106,935
|
|
313,635
|
Consolidated assets
|
|
|
|
|
|
$
10,312,831
|
|
10,157,083
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
|
|
July 2,
2016
|
|
July 4,
2015
|
|
July 2,
2016
|
|
July 4,
2015
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
|
|
$
255,188
|
|
186,492
|
|
426,736
|
|
208,838
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
|
|
6,020
|
|
18,485
|
|
13,738
|
|
31,014
|
Acquisitions purchase
accounting (inventory step-up)
|
|
|
|
-
|
|
6,156
|
|
-
|
|
6,156
|
Legal settlement and
reserves
|
|
|
|
-
|
|
2,000
|
|
-
|
|
127,000
|
Deferred loan
costs
|
|
|
|
-
|
|
-
|
|
-
|
|
651
|
Income
taxes
|
|
|
|
(2,342)
|
|
(14,490)
|
|
(4,620)
|
|
(50,043)
|
Adjusted net earnings
attributable to Mohawk Industries, Inc.
|
|
|
|
$
258,866
|
|
198,643
|
|
435,854
|
|
323,616
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to Mohawk Industries,
Inc.
|
|
$
3.47
|
|
2.69
|
|
5.85
|
|
4.39
|
Weighted-average
common shares outstanding - diluted
|
|
|
|
74,574
|
|
73,756
|
|
74,526
|
|
73,644
|
Reconciliation of
Total Debt to Net Debt
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
July 2,
2016
|
|
Current portion of
long-term debt and commercial paper
|
|
$
1,795,584
|
|
Long-term debt, less
current portion
|
|
1,160,700
|
|
Less: Cash and cash
equivalents
|
|
112,049
|
|
Net Debt
|
|
$
2,844,235
|
|
Reconciliation of
Operating Income to Pro forma Adjusted EBITDA
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
Trailing
Twelve
|
|
|
Three Months
Ended
|
|
Months
Ended
|
|
|
October 3,
2015
|
|
December 31,
2015
|
|
April 2,
2016
|
|
July 2,
2016
|
|
July 2,
2016
|
Operating
income
|
|
$
288,734
|
|
249,242
|
|
245,672
|
|
350,692
|
|
1,134,340
|
Other (expense)
income
|
|
(4,249)
|
|
(11,525)
|
|
(3,429)
|
|
5,807
|
|
(13,396)
|
Net (earnings) loss
attributable to non-controlling interest
|
|
(798)
|
|
(446)
|
|
(569)
|
|
(926)
|
|
(2,739)
|
Depreciation and
amortization
|
|
94,955
|
|
94,025
|
|
100,194
|
|
101,215
|
|
390,389
|
EBITDA
|
|
378,642
|
|
331,296
|
|
341,868
|
|
456,788
|
|
1,508,594
|
Restructuring,
acquisition and integration-related and other
costs
|
|
11,690
|
|
30,820
|
|
7,718
|
|
6,020
|
|
56,248
|
Acquisitions purchase
accounting (inventory step-up)
|
|
7,160
|
|
21
|
|
-
|
|
-
|
|
7,181
|
Legal settlement and
reserves
|
|
-
|
|
(2,520)
|
|
-
|
|
-
|
|
(2,520)
|
Release of
indemnification asset
|
|
-
|
|
11,180
|
|
-
|
|
-
|
|
11,180
|
Acquisitions
EBITDA
|
|
3,639
|
|
7,337
|
|
-
|
|
-
|
|
10,976
|
Pro forma
Adjusted EBITDA
|
|
$
401,131
|
|
378,134
|
|
349,586
|
|
462,808
|
|
1,591,659
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Pro forma
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Sales to Net Sales on a Constant Exchange Rate and Constant
Shipping Days Excluding Acquisition Volume
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
July 2,
2016
|
|
July 4,
2015
|
|
July 2,
2016
|
|
July 4,
2015
|
Net sales
|
|
$
2,310,336
|
|
2,041,733
|
|
4,482,382
|
|
3,922,910
|
Adjustment to net
sales on constant shipping days
|
|
(37,849)
|
|
-
|
|
-
|
|
-
|
Adjustment to net
sales on a constant exchange rate
|
|
16,048
|
|
-
|
|
41,928
|
|
-
|
Net sales on a
constant exchange rate and constant shipping days
|
|
2,288,535
|
|
2,041,733
|
|
4,524,310
|
|
3,922,910
|
Less: impact of
acquisition volume
|
|
(242,439)
|
|
(55,672)
|
|
(485,332)
|
|
(55,672)
|
Net sales on a
constant exchange rate and constant shipping days excluding
acquisition volume
|
$
2,046,096
|
|
1,986,061
|
|
4,038,978
|
|
3,867,238
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange Rate
and Constant Shipping Days Excluding Acquisition
Volume
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Global
Ceramic
|
|
July 2,
2016
|
|
July 4,
2015
|
Net sales
|
|
$
829,794
|
|
789,802
|
Adjustment to net
sales on constant shipping days
|
|
(12,940)
|
|
-
|
Adjustment to segment
net sales on a constant exchange rate
|
|
15,730
|
|
-
|
Segment net sales on
a constant exchange rate and constant shipping
days
|
|
832,584
|
|
789,802
|
Less: impact of
acquisition volume
|
|
(26,634)
|
|
(17,675)
|
Segment net sales on
a constant exchange rate and constant shipping days excluding
acquisition volume
|
$
805,950
|
|
772,127
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on Constant Shipping Days
Excluding Acquisition Volume
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Flooring
NA
|
|
July 2,
2016
|
|
July 4,
2015
|
|
Net sales
|
|
$
980,693
|
|
920,337
|
|
Adjustment to net
sales on constant shipping days
|
|
(14,639)
|
|
-
|
|
Segment net sales on
constant shipping days
|
|
966,054
|
|
920,337
|
|
Less: impact of
acquisition volume
|
|
(45,100)
|
|
(10,036)
|
|
Segment net sales on
constant shipping days excluding acquisition volume
|
$
920,954
|
|
910,301
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange Rate
and Constant Shipping Days Excluding Acquisition
Volume
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Flooring
ROW
|
|
July 2,
2016
|
|
July 4,
2015
|
Net sales
|
|
$
499,849
|
|
331,622
|
Adjustment to net
sales on constant shipping days
|
|
(10,269)
|
|
-
|
Adjustment to segment
net sales on a constant exchange rate
|
|
317
|
|
-
|
Segment net sales on
a constant exchange rate and constant shipping
days
|
|
489,897
|
|
331,622
|
Less: impact of
acquisition volume
|
|
(170,705)
|
|
(27,961)
|
Segment net sales on
a constant exchange rate and constant shipping days excluding
acquisition volume
|
$
319,192
|
|
303,661
|
|
|
|
|
|
Reconciliation of
Gross Profit to Adjusted Gross Profit
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
July 2,
2016
|
|
July 4,
2015
|
Gross
Profit
|
|
$
755,588
|
|
615,129
|
Adjustments to gross
profit:
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
2,778
|
|
12,341
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
6,156
|
Adjusted gross
profit
|
|
$
758,366
|
|
633,626
|
|
|
|
|
|
Reconciliation of
Selling, General and Administrative Expenses to Adjusted Selling,
General and Administrative Expenses
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
July 2,
2016
|
|
July 4,
2015
|
Selling, general and
administrative expenses
|
|
$
404,896
|
|
359,313
|
Adjustments to
selling, general and administrative expenses:
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
(3,241)
|
|
(6,144)
|
Legal settlement and
reserves
|
|
-
|
|
(2,000)
|
Adjusted
selling, general and administrative expenses
|
|
$
401,655
|
|
351,169
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted Operating Income on a Constant
Exchange Rate
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
July 2,
2016
|
|
July 4,
2015
|
Operating
income
|
|
$
350,692
|
|
255,816
|
Adjustments to
operating income:
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
6,020
|
|
18,485
|
Legal settlement and
reserves
|
|
-
|
|
2,000
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
6,156
|
Adjusted operating
income
|
|
356,712
|
|
282,457
|
Adjustment to operating income on a constant exchange
rate
|
|
4,372
|
|
-
|
Adjusted
operating income on constant exchange rate
|
|
$
361,084
|
|
282,457
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating Income on a
Constant Exchange Rate
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Global
Ceramic
|
|
July 2,
2016
|
|
July 4,
2015
|
|
Operating
income
|
|
$
140,606
|
|
121,189
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
381
|
|
77
|
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
1,932
|
|
Adjusted segment
operating income
|
|
140,987
|
|
123,198
|
|
Adjustment to
operating income on a constant exchange rate
|
|
2,420
|
|
-
|
|
Adjusted
segment operating income on constant exchange rate
|
|
$
143,407
|
|
123,198
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Flooring
NA
|
|
July 2,
2016
|
|
July 4,
2015
|
Operating
income
|
|
$
118,946
|
|
95,143
|
Adjustments to
segment operating income:
|
|
|
|
|
Legal settlement and
reserves
|
|
-
|
|
2,000
|
Restructuring,
acquisition and integration-related and other
costs
|
|
6,146
|
|
9,465
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
1,167
|
Adjusted
segment operating income
|
|
$
125,092
|
|
107,775
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating Income on a
Constant Exchange Rate
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Flooring
ROW
|
|
July 2,
2016
|
|
July 4,
2015
|
Operating
income
|
|
$
101,062
|
|
53,052
|
Adjustments to
segment operating income:
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
(507)
|
|
5,109
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
3,057
|
Adjusted segment
operating income
|
|
100,555
|
|
61,218
|
Adjustment to
operating income on a constant exchange rate
|
|
1,951
|
|
-
|
Adjusted
segment operating income on constant exchange rate
|
|
$
102,506
|
|
61,218
|
|
|
|
|
|
Reconciliation of
Earnings incl Noncontrolling Interests Before Income Taxes to
Adjusted Earnings incl Noncontrolling Interests Before Income
Taxes
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
July 2,
2016
|
|
July 4,
2015
|
Earnings before
income taxes
|
|
$
346,148
|
|
236,050
|
Noncontrolling
interests
|
|
(926)
|
|
(282)
|
Adjustments to
earnings including noncontrolling interests before income
taxes:
|
|
|
|
|
Restructuring,
acquisition and integration-related & other
costs
|
|
6,020
|
|
18,485
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
6,156
|
Legal settlement and
reserves
|
|
-
|
|
2,000
|
Adjusted
earnings including noncontrolling interests before income
taxes
|
|
$
351,242
|
|
262,409
|
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax
Expense
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
July 2,
2016
|
|
July 4,
2015
|
Income tax
expense
|
|
$
90,034
|
|
49,276
|
Income tax effect of
adjusting items
|
|
2,342
|
|
14,490
|
Adjusted
income tax expense
|
|
$
92,376
|
|
63,766
|
|
|
|
|
|
Adjusted income tax
rate
|
|
26.4%
|
|
24.3%
|
|
|
|
|
|
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, integration-related and other costs, legal settlement
and reserves and acquisitions purchase accounting (inventory
step-up) 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-reports-record-second-quarter-300309512.html
SOURCE Mohawk Industries, Inc.