LEXINGTON, Ky., Feb. 13, 2020 /PRNewswire/ -- Tempur Sealy
International, Inc. (NYSE: TPX, "Company" or "Tempur
Sealy") today announced that its Board of Directors has
increased the authorization under the Company's share repurchase
program by over $190 million to a
total of $300 million.
Since the program was announced in 2016, the Company has
repurchased approximately 10.8 million shares for a total
investment of approximately $691.6
million at an average price per share of $63.84. The Company expects to purchase at least
$50 million of its common stock per
quarter in the near term. At the Company's current market
capitalization, that would represent approximately 4% of
outstanding shares in 2020.
Tempur Sealy International, Inc. Chairman and CEO Scott Thompson commented, "Today I am pleased to
announce that our Board of Directors, as a part of our capital
allocation process, has once again authorized an increase to our
share repurchase authorization. This is a continuation of our
long-term disciplined strategy to return excess capital to our
shareholders while simultaneously investing in our people and
business. Our financial leverage is currently the lowest in
the Company's history while at the same time we expect record
full-year revenues in 2020. Future operating cash flow should
easily fully fund the stock repurchase program."
In a separate press release issued today, Tempur Sealy
reported its record fourth quarter and full year 2019 results. The
Company announced that fourth quarter net sales increased 29%, full
year net income increased 89% and full year EPS increased 88% to
$3.42.
Stock repurchases under this program may be made through open
market transactions, negotiated purchases or otherwise, at times
and in such amounts as management deems appropriate. The
timing and actual number of shares repurchased will depend on a
variety of factors including price, financing and regulatory
requirements and other market conditions. The program does not
require the purchase of any minimum number of shares and may be
suspended, modified or discontinued at any time without prior
notice. Repurchases may be made under a Rule 10b5-1 plan, which
would permit shares to be repurchased when the Company might
otherwise be precluded from doing so under federal securities
laws.
Forward-Looking Statements
This press release contains statements that may be characterized
as "forward-looking" within the meaning of the federal securities
laws, which includes information concerning one or more of the
Company's plans, objectives, goals, strategies, and other
information that is not historical information. When used in this
release, the words "expects," "will," "should," "would" and
variations of such words or similar expressions are intended to
identify such statements. These forward-looking statements include,
without limitation, statements relating to the Company's share
repurchase program and the Company's expectations regarding future
performance and operating cash flow. Any forward-looking statements
contained herein are based upon current expectations and beliefs
and various assumptions. There can be no assurance that the Company
will realize these expectations or that these beliefs will prove
correct.
Numerous factors, many of which are beyond the Company's
control, could cause actual results to differ materially from any
that may be expressed as forward-looking statements. These risk
factors include risks associated with general economic, financial
and industry conditions, particularly conditions relating to the
financial performance and related credit issues present in the
retail sector, as well as consumer confidence and the availability
of consumer financing; the Company's ability to execute on its
acquisition, integration and expansion strategies; the impact of
the macroeconomic environment in both the U.S. and internationally
on the Company; uncertainties arising from national and global
events; the effect of future legislative or regulatory changes,
including changes in international trade, duties, tariffs and other
aspects of international trade policy; industry competition; the
effects of consolidation of retailers on revenues and costs; and
consumer acceptance of and changes in demand for the Company's
products.
Other potential risk factors include the risk factors discussed
under the heading "Risk Factors" in ITEM 1A of Part 1 of the
Company's Annual Report on Form 10-K for the year ended
December 31, 2018. There may be other
factors that may cause actual results to differ materially from the
forward-looking statements contained herein. The Company undertakes
no obligation to update any forward-looking statement contained
herein to reflect events or circumstances after the date on which
such statement is made.
About Tempur Sealy International, Inc.
Tempur Sealy International, Inc. (NYSE: TPX) develops,
manufactures, and markets mattresses, foundations, pillows and
other products. The Company's products are sold worldwide
through third-party retailers, its own stores, and online. The
Company's brand portfolio includes many highly recognized brands in
the industry, including Tempur®, Tempur-Pedic®, Sealy® featuring
Posturepedic® Technology, and Stearns & Foster®. World
headquarters for Tempur Sealy International is in Lexington, KY. For more information,
visit http://www.tempursealy.com or call
800-805-3635.
Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
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SOURCE Tempur Sealy International, Inc.