CALHOUN, Georgia, April 26, 2018 /PRNewswire/ -- Mohawk
Industries, Inc. (NYSE: MHK) today announced 2018 first quarter net
earnings of $209 million and diluted
earnings per share (EPS) of $2.78.
Adjusted net earnings were $225
million and EPS was $3.01,
excluding restructuring, acquisition and other charges, an 11%
increase over last year. Net sales for the first quarter of 2018
were $2.4 billion, up 9% in the
quarter and 4% on a constant currency basis. For the first quarter
of 2017, net sales were $2.2 billion,
net earnings were $201 million and
EPS was $2.68; adjusted net earnings
were $203 million and EPS was
$2.72, excluding restructuring,
acquisition and other charges.
Commenting on Mohawk Industries' first quarter performance,
Jeffrey S. Lorberbaum, Chairman and
CEO, stated, "Mohawk is benefiting from its diverse geographical
footprint and product portfolio. Our performance in the first
quarter accentuated this strength as we realized significant growth
in LVT in our largest markets and sales and profits grew strongly
in our ceramic business outside the U.S. We are leveraging our
global organization's strength to initiate manufacturing in new
markets and extend our development of innovative products. Our
global decentralized structure enables us to simultaneously manage
numerous internal investments while also executing new
acquisitions.
"For the quarter, our operating income grew at a greater rate
when adjusted for the loss of income from expired patents and
higher start-up costs of new facilities and sales initiatives. In
the first quarter, material and freight inflation increased more
than we anticipated and impacted our costs. We are initiating
selective pricing actions by product and region that, combined with
improving mix and cost reductions, will offset expected
inflation.
"For the quarter, our Global Ceramic Segment sales increased 12%
as reported and 8% on a constant currency basis. Our sales in
Russia and Mexico grew the fastest, and our European
acquisitions added approximately 6% to our sales. Operating margin
was approximately 13% both as reported and on an adjusted basis,
decreasing year over year due to inflation, product mix and
start-up cost. First quarter segment sales sequentially
improved, and we anticipate increased growth throughout the balance
of the year, supported by greater capacity and new product
introductions. We are implementing sales actions to increase our
customer base and market share in both the residential and
commercial sectors. In the U.S., we are launching innovative slip
resistant tile, introducing higher styled designs in all price
points and marketing ceramic's durability and ease of care to
consumers. Our new service centers and countertop distribution are
ramping up and will enhance our results as sales increase. The
building for our new quartz plant is nearing completion, and
equipment installation should begin this quarter. In Mexico, the increased capacity and new
capabilities of our Salamanca
plant are allowing us to expand our customer base domestically and
grow exports to Central and South
America. In Europe, our
product mix is improving as we capture a larger share of the
premium market, and our new product launches increase our average
price. Our two acquisitions in Italy and Poland are progressing as planned as we
integrate their operations and expand their product offering. In
Russia, we continue to grow our
leading market position in a challenging economic environment.
"During the quarter, our Flooring North America Segment's sales
increased 1%. The segment's operating margin was 8% as reported,
absorbing increased inflation, restructuring and LVT start-up
costs. On an adjusted basis, the operating margin was approximately
10% including the higher inflation and start-up costs. Our
residential carpet sales increased during the quarter, led by the
retail replacement channel. Our sales benefited from the strength
of our innovative products, including super soft SmartStrand Silk
Reserve, luxury Karastan collections, patented Continuum polyester
offerings and propriety, hypoallergenic Air.o unified soft
flooring. In the first quarter, we implemented the carpet price
increase we announced last fall. In addition, our raw material and
freight costs escalated more than we anticipated, and we announced
another carpet price increase of 6% to 7% to cover these
costs. We have realigned our commercial sales structure, so that we
can provide greater expertise with complete flooring solutions for
each end-use market. LVT sales continue to expand in both
residential and commercial. To support our increasing manufacturing
capabilities, we are expanding our collections of both flexible and
rigid LVT. Our new laminate production line is working well and has
unique capabilities to make products indistinguishable from natural
wood with superior visuals and performance. Our revolutionary
RevWood Plus, a new water-proof wood product, is rapidly gaining
acceptance with longer planks and contemporary finishes. Our
investments in new technologies and hundreds of productivity
projects are enhancing our service levels, quality and cost
structures.
"For the quarter, our Flooring Rest of the World Segment's sales
increased 18% as reported and 4% on a constant currency basis, as
local economies improved and the Euro strengthened. As reported,
our operating income increased 17% as a result of improved price
and mix, productivity and the strengthening Euro, overcoming
inflation, start-up costs and expired patents. On an adjusted
basis, the operating margin was approximately 16%, a slight
improvement even with higher start-up costs and lower patent
income. We are starting new LVT and laminate production in
Belgium, and we are launching new
carpet tile and rigid LVT products. The price increases we
implemented last fall are covering raw material increases from
2017, and we are selectively increasing prices to offset further
inflation. LVT in Europe is
growing in acceptance, and we are the market leader. Our new LVT
production line is ramping up, and we are expanding our product
offering to fully utilize its capacity. Our sheet vinyl assets in
Europe are running at capacity,
and we are seeding the Russian market to build demand for our new
plant, which should initiate production by the end of this year. To
expand our sales across Europe, we
are assembling an experienced commercial sales force for our LVT,
sheet vinyl and carpet tile. Our laminate business continues to
perform well, and we lead the premium market in realistic design
and water-resistant products. Our new laminate press is operating,
and we are introducing additional premium products to extend our
market leadership. Our wood panel sales are performing well as a
result of investments that expanded capacity and improved our
costs. Our insulation business is recovering as raw material supply
increases and costs moderate.
"Around the globe, we are starting up a number of large
investments that will significantly enhance our long-term results
by expanding existing sales, adding product categories and entering
new markets. Many of these operations are currently initiating new
production, including Mexican, Italian and Russian ceramic; U.S.
and European premium laminate; U.S. and European LVT; Italian
porcelain slabs; and European carpet tile. In addition, by the end
of this year, we anticipate commencing production of quartz
countertops in the U.S. and sheet vinyl in Russia, as well as expanding polyester carpet
in the U.S.; ceramic tile in Poland; and laminate and ceramic wall tile in
Russia. We anticipate finalizing
the acquisition of Godfrey Hirst as early as the end of May, adding
the largest flooring producer in Australia and New
Zealand to our global portfolio. To prepare for the
integration, we are assessing the sales, product and raw material
strategies for both companies to optimize performance.
"As anticipated this year, we will have a non-recurring
reduction of operating income of $70-75 million, comprised of $30-35 million from higher start-up costs and
$40 million from patents that expired
in 2017. In 2018, incremental depreciation of $75 million will curtail our operating margins
until our sales reach a level to fully absorb these investments.
Changes in the U.S. tax law will reduce our adjusted tax rate from
26% last year to an estimated 21% this year. Taking all of this
into account, our EPS guidance for the second quarter is
$3.89 to $3.98, excluding any one-time charges.
"During the balance of 2018, our sales growth should improve as
we increase the use of our new production, introduce additional
products and complete the acquisition of Godfrey Hirst. This year,
the Godfrey Hirst acquisition is estimated to increase revenue by
$180 million and EPS by $0.25. In the third quarter, higher prices, mix
and productivity should increase our adjusted operating income
above last year, even with a lower operating margin. In the fourth
quarter, our adjusted operating income and margin should exceed
2017, as the impact from start-ups and patents decline. Next year,
with higher utilization and lower start-up costs, we will see
further enhancements of our sales and profitability. With the
strength of our organization, we can execute additional
acquisitions if appropriate risk and return can be achieved."
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, Daltile, Durkan, IVC,
Karastan, Marazzi, Mohawk, Mohawk Group, Pergo, Quick-Step and
Unilin. 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; taxes and tax reform, product and other claims;
litigation; and other risks identified in Mohawk's SEC reports and
public announcements.
Conference call Friday, April 27,
2018, 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 # 6659539. A
replay will be available until May 27,
2018, by dialing 1-855-859-2056 for US/local calls and
1-404-537-3406 for International/Local calls and entering
Conference ID # 6659539.
MOHAWK INDUSTRIES,
INC. AND SUBSIDIARIES
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Consolidated
Statement of Operations Data
|
|
Quarter
Ended
|
(Amounts in
thousands, except per share data)
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
Net sales
|
|
$
2,412,202
|
|
2,220,645
|
Cost of
sales
|
|
1,707,510
|
|
1,540,292
|
Gross profit
|
|
704,692
|
|
680,353
|
Selling, general and
administrative expenses
|
|
436,293
|
|
405,569
|
Operating
income
|
|
268,399
|
|
274,784
|
Interest
expense
|
|
7,528
|
|
8,202
|
Other expense
(income), net
|
|
3,998
|
|
(2,832)
|
Earnings before income taxes
|
|
256,873
|
|
269,414
|
Income tax
expense
|
|
47,632
|
|
68,358
|
Net
earnings including noncontrolling interest
|
|
209,241
|
|
201,056
|
Net income
attributable to noncontrolling interest
|
|
475
|
|
502
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
$
208,766
|
|
200,554
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
2.80
|
|
2.70
|
Weighted-average
common shares outstanding - basic
|
|
74,453
|
|
74,212
|
|
|
|
|
|
Diluted earnings
per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
Diluted earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
2.78
|
|
2.68
|
Weighted-average
common shares outstanding - diluted
|
|
74,929
|
|
74,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
Depreciation and
amortization
|
|
$
122,654
|
|
105,024
|
Capital
expenditures
|
|
$
250,936
|
|
201,270
|
|
|
|
|
|
Consolidated
Balance Sheet Data
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
114,843
|
|
188,436
|
Receivables, net
|
|
1,689,912
|
|
1,497,908
|
Inventories
|
|
2,044,962
|
|
1,740,880
|
Prepaid expenses and other current assets
|
|
447,322
|
|
307,758
|
Total
current assets
|
|
4,297,039
|
|
3,734,982
|
Property, plant and
equipment, net
|
|
4,460,793
|
|
3,506,154
|
Goodwill
|
|
2,512,615
|
|
2,293,107
|
Intangible assets,
net
|
|
899,989
|
|
835,761
|
Deferred income taxes
and other non-current assets
|
|
389,936
|
|
357,513
|
Total assets
|
|
$
12,560,372
|
|
10,727,517
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
$
1,331,917
|
|
1,497,986
|
Accounts payable and
accrued expenses
|
|
1,463,993
|
|
1,330,341
|
Total
current liabilities
|
|
2,795,910
|
|
2,828,327
|
Long-term debt, less
current portion
|
|
1,585,651
|
|
1,132,268
|
Deferred income taxes
and other long-term liabilities
|
|
801,878
|
|
677,897
|
Total
liabilities
|
|
5,183,439
|
|
4,638,492
|
Redeemable
noncontrolling interest
|
|
30,924
|
|
24,201
|
Total stockholders'
equity
|
|
7,346,009
|
|
6,064,824
|
Total liabilities and stockholders' equity
|
|
$
12,560,372
|
|
10,727,517
|
|
|
|
|
|
Segment
Information
|
|
As of or for the
Quarter Ended
|
(Amounts in
thousands)
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
Net sales:
|
|
|
|
|
Global Ceramic
|
|
$
876,548
|
|
784,969
|
Flooring NA
|
|
950,358
|
|
939,496
|
Flooring ROW
|
|
585,296
|
|
496,180
|
Intersegment sales
|
|
-
|
|
-
|
Consolidated net sales
|
|
$
2,412,202
|
|
2,220,645
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
Global Ceramic
|
|
$
113,417
|
|
116,036
|
Flooring NA
|
|
74,748
|
|
92,142
|
Flooring ROW
|
|
89,060
|
|
76,095
|
Corporate and intersegment eliminations
|
|
(8,826)
|
|
(9,489)
|
Consolidated operating income
|
|
$
268,399
|
|
274,784
|
|
|
|
|
|
Assets:
|
|
|
|
|
Global Ceramic
|
|
$
5,029,225
|
|
4,229,183
|
Flooring NA
|
|
3,847,555
|
|
3,528,062
|
Flooring ROW
|
|
3,410,958
|
|
2,801,782
|
Corporate and intersegment eliminations
|
|
272,634
|
|
168,490
|
Consolidated assets
|
|
$
12,560,372
|
|
10,727,517
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
|
|
$
208,766
|
|
200,554
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other costs
|
|
|
|
22,104
|
|
3,978
|
|
|
|
|
Acquisitions purchase
accounting , including inventory step-up
|
|
|
|
1,354
|
|
192
|
|
|
|
|
Release of
indemnification asset
|
|
|
|
|
1,749
|
|
-
|
|
|
|
|
Income taxes -
reversal of uncertain tax position
|
|
|
|
(1,749)
|
|
-
|
|
|
|
|
Income
taxes
|
|
|
|
|
|
(6,940)
|
|
(1,415)
|
|
|
|
|
Adjusted net
earnings attributable to Mohawk Industries, Inc.
|
|
|
|
$
225,284
|
|
203,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to Mohawk Industries,
Inc.
|
|
|
|
$
3.01
|
|
2.72
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
|
|
|
|
74,929
|
|
74,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Total Debt to Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
$
1,331,917
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
1,585,651
|
|
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
|
114,843
|
|
|
|
|
|
|
|
|
Net Debt
|
|
|
|
$
2,802,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Trailing
Twelve
|
|
|
|
|
Quarters
Ended
|
|
Months
Ended
|
|
|
|
|
July 1,
2017
|
|
September 30,
2017
|
|
December 31,
2017
|
|
March 31,
2018
|
|
March 31,
2018
|
Operating
income
|
|
|
|
$
355,825
|
|
380,098
|
|
343,466
|
|
268,399
|
|
1,347,788
|
Other (expense)
income
|
|
|
|
(3,002)
|
|
(1,285)
|
|
(3,750)
|
|
(3,998)
|
|
(12,035)
|
Net (income) loss
attributable to noncontrolling interest
|
|
(1,067)
|
|
(997)
|
|
(488)
|
|
(475)
|
|
(3,027)
|
Depreciation and
amortization
|
|
|
109,761
|
|
113,515
|
|
118,372
|
|
122,654
|
|
464,302
|
EBITDA
|
|
|
|
461,517
|
|
491,331
|
|
457,600
|
|
386,580
|
|
1,797,028
|
Restructuring,
acquisition and integration-related and other costs
|
|
15,878
|
|
13,853
|
|
15,231
|
|
22,104
|
|
67,066
|
Acquisitions purchase
accounting, including inventory step-up
|
|
9,571
|
|
3,551
|
|
-
|
|
1,354
|
|
14,476
|
Release of
indemnification asset
|
|
|
-
|
|
-
|
|
4,459
|
|
1,749
|
|
6,208
|
Adjusted
EBITDA
|
|
|
|
$
486,966
|
|
508,735
|
|
477,290
|
|
411,787
|
|
1,884,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Sales to Net Sales on a Constant Exchange Rate Excluding
Acquisition Volume
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
2,412,202
|
|
2,220,645
|
|
|
|
|
|
|
Adjustment to net
sales on a constant exchange rate
|
|
(98,832)
|
|
-
|
|
|
|
|
|
|
Net sales on a
constant exchange rate
|
|
|
2,313,370
|
|
2,220,645
|
|
|
|
|
|
|
Less: impact of
acquisition volume
|
|
|
(45,276)
|
|
-
|
|
|
|
|
|
|
Net sales on a
constant exchange rate excluding acquisition volume
|
|
$
2,268,094
|
|
2,220,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange Rate
Excluding Acquisition Volume
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
Global
Ceramic
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
876,548
|
|
784,969
|
|
|
|
|
|
|
Adjustment to segment
net sales on a constant exchange rate
|
|
(28,623)
|
|
-
|
|
|
|
|
|
|
Segment net sales on
a constant exchange rate
|
|
847,925
|
|
784,969
|
|
|
|
|
|
|
Less: impact of
acquisition volume
|
|
|
(45,276)
|
|
-
|
|
|
|
|
|
|
Segment net sales on
a constant exchange rate excluding acquisition volume
|
|
$
802,649
|
|
784,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange
Rate
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
Flooring
ROW
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
585,296
|
|
496,180
|
|
|
|
|
|
|
Adjustment to segment
net sales on a constant exchange rate
|
|
(70,209)
|
|
-
|
|
|
|
|
|
|
Segment net sales on
a constant exchange rate
|
|
$
515,087
|
|
496,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Gross Profit to Adjusted Gross Profit
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
$
704,692
|
|
680,353
|
|
|
|
|
|
|
Adjustments to gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other costs
|
|
14,498
|
|
2,813
|
|
|
|
|
|
|
Acquisitions purchase
accounting, including inventory step-up
|
|
1,354
|
|
192
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
|
|
$
720,544
|
|
683,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Selling, General and Administrative Expenses to Adjusted Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
$
436,293
|
|
405,569
|
|
|
|
|
|
|
Adjustments to
selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other costs
|
|
(7,606)
|
|
(1,165)
|
|
|
|
|
|
|
Adjusted
selling, general and administrative expenses
|
|
$
428,687
|
|
404,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Operating
income
|
|
|
|
$
268,399
|
|
274,784
|
|
|
|
|
|
|
Adjustments to
operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other costs
|
|
22,104
|
|
3,978
|
|
|
|
|
|
|
Acquisitions purchase
accounting, including inventory step-up
|
|
1,354
|
|
192
|
|
|
|
|
|
|
Adjusted operating
income
|
|
|
|
$
291,857
|
|
278,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
Global
Ceramic
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Operating
income
|
|
|
|
$
113,417
|
|
116,036
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other costs
|
|
3,561
|
|
204
|
|
|
|
|
|
|
Adjusted segment
operating income
|
|
|
$
116,978
|
|
116,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
Flooring
NA
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Operating
income
|
|
|
|
$
74,748
|
|
92,142
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other costs
|
|
16,204
|
|
2,313
|
|
|
|
|
|
|
Adjusted
segment operating income
|
|
|
$
90,952
|
|
94,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
Flooring
ROW
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Operating
income
|
|
|
|
$
89,060
|
|
76,095
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other costs
|
|
2,094
|
|
1,460
|
|
|
|
|
|
|
Acquisitions purchase
accounting , including inventory step-up
|
|
1,354
|
|
192
|
|
|
|
|
|
|
Adjusted segment
operating income
|
|
|
$
92,508
|
|
77,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Earnings including Noncontrolling Interests Before Income Taxes to
Adjusted Earnings Including Noncontrolling Interests Before Income
Taxes
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
|
|
$
256,873
|
|
269,414
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
|
(475)
|
|
(502)
|
|
|
|
|
|
|
Adjustments to
earnings including noncontrolling interests before income
taxes:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related & other costs
|
|
22,104
|
|
3,978
|
|
|
|
|
|
|
Acquisitions purchase
accounting, including inventory step-up
|
|
1,354
|
|
192
|
|
|
|
|
|
|
Release of
indemnification asset
|
|
|
1,749
|
|
-
|
|
|
|
|
|
|
Adjusted
earnings including noncontrolling interests before income
taxes
|
|
$
281,605
|
|
273,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax
Expense
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
$
47,632
|
|
68,358
|
|
|
|
|
|
|
Income taxes -
reversal of uncertain tax position
|
|
1,749
|
|
-
|
|
|
|
|
|
|
Income tax effect of
adjusting items
|
|
|
|
6,940
|
|
1,415
|
|
|
|
|
|
|
Adjusted
income tax expense
|
|
|
$
56,321
|
|
69,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
rate
|
|
|
|
20.0%
|
|
25.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company
supplements its consolidated financial statements, which are
prepared and presented in accordance with US GAAP, with certain
non-GAAP financial measures. As required by the Securities and
Exchange Commission rules, the tables above present a
reconciliation of the Company's non-GAAP financial measures to the
most directly comparable US GAAP measure. Each of the non-GAAP
measures set forth above should be considered in addition to the
comparable US GAAP measure, and may not be comparable to similarly
titled measures reported by other companies. The Company believes
these non-GAAP measures, when reconciled to the corresponding US
GAAP measure, help its investors as follows: Non-GAAP revenue
measures that assist in identifying growth trends and in
comparisons of revenue with prior and future periods and non-GAAP
profitability measures that assist in understanding the long-term
profitability trends of the Company's business and in comparisons
of its profits with prior and future periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company excludes
certain items from its non-GAAP revenue measures because these
items can vary dramatically between periods and can obscure
underlying business trends. Items excluded from the Company's
non-GAAP revenue measures include: foreign currency transactions
and translation and the impact of acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company excludes
certain items from its non-GAAP profitability measures because
these items may not be indicative of, or are unrelated to, the
Company's core operating performance. Items excluded from the
Company's non-GAAP profitability measures include: restructuring,
acquisition and integration-related and other costs,
acquisition purchase accounting, including inventory step-up,
release of indemnification assets and the reversal of uncertain tax
positions.
|
|
|