Delaware | 01-13697 | 52-1604305 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
160 South Industrial Blvd., Calhoun, Georgia | 30701 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Mohawk Industries, Inc. | ||||||||
Date: August 2, 2012 | By: | /s/ James F. Brunk | ||||||
James F. Brunk | ||||||||
V.P. & Corporate Controller |
Exhibit | ||
99.1. | Press release dated August 2, 2012. |
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
Consolidated Statement of Operations | Three Months Ended | Six Months Ended | ||||||||||||
(Amounts in thousands, except per share data) | June 30, 2012 | July 2, 2011 | June 30, 2012 | July 2, 2011 | ||||||||||
Net sales | $ | 1,469,793 | 1,477,854 | 2,878,828 | 2,821,449 | |||||||||
Cost of sales | 1,081,329 | 1,095,607 | 2,130,938 | 2,097,610 | ||||||||||
Gross profit | 388,464 | 382,247 | 747,890 | 723,839 | ||||||||||
Selling, general and administrative expenses | 280,746 | 280,547 | 568,196 | 566,055 | ||||||||||
Operating income | 107,718 | 101,700 | 179,694 | 157,784 | ||||||||||
Interest expense | 18,844 | 25,760 | 41,342 | 52,355 | ||||||||||
Other (income) expense, net | 440 | 396 | (1,385 | ) | 381 | |||||||||
Earnings before income taxes | 88,434 | 75,544 | 139,737 | 105,048 | ||||||||||
Income tax expense | 15,246 | 13,450 | 25,537 | 18,416 | ||||||||||
Net earnings | 73,188 | 62,094 | 114,200 | 86,632 | ||||||||||
Net earnings attributable to noncontrolling interest | — | (1,191 | ) | (635 | ) | (2,287 | ) | |||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 73,188 | 60,903 | 113,565 | 84,345 | |||||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 1.06 | 0.89 | 1.65 | 1.23 | |||||||||
Weighted-average common shares outstanding - basic | 68,984 | 68,744 | 68,923 | 68,709 | ||||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 1.06 | 0.88 | 1.64 | 1.22 | |||||||||
Weighted-average common shares outstanding - diluted | 69,259 | 68,981 | 69,204 | 68,942 | ||||||||||
Other Financial Information | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 140,046 | 96,003 | 95,576 | 28,590 | |||||||||
Depreciation and amortization | $ | 71,831 | 74,344 | 145,117 | 148,597 | |||||||||
Capital expenditures | $ | 44,436 | 59,708 | 87,687 | 112,519 | |||||||||
Consolidated Balance Sheet Data | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
June 30, 2012 | July 2, 2011 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 319,463 | 285,422 | |||||||||||
Receivables, net | 782,122 | 797,893 | ||||||||||||
Inventories | 1,161,073 | 1,102,769 | ||||||||||||
Prepaid expenses and other current assets | 144,915 | 125,815 | ||||||||||||
Deferred income taxes | 126,613 | 135,338 | ||||||||||||
Total current assets | 2,534,186 | 2,447,237 | ||||||||||||
Property, plant and equipment, net | 1,652,444 | 1,730,914 | ||||||||||||
Goodwill | 1,363,356 | 1,418,830 | ||||||||||||
Intangible assets, net | 564,948 | 681,178 | ||||||||||||
Deferred income taxes and other non-current assets | 149,843 | 110,841 | ||||||||||||
$ | 6,264,777 | 6,389,000 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | 57,158 | 453,185 | |||||||||||
Accounts payable and accrued expenses | 733,411 | 771,297 | ||||||||||||
Total current liabilities | 790,569 | 1,224,482 | ||||||||||||
Long-term debt, less current portion | 1,570,530 | 1,155,150 | ||||||||||||
Deferred income taxes and other long-term liabilities | 427,360 | 460,109 | ||||||||||||
Total liabilities | 2,788,459 | 2,839,741 |
Noncontrolling interest | — | 32,300 | ||||||||||||
Total stockholders' equity | 3,476,318 | 3,516,959 | ||||||||||||
$ | 6,264,777 | 6,389,000 | ||||||||||||
Segment Information | Three Months Ended | As of or for the Six Months Ended | ||||||||||||
(Amounts in thousands) | June 30, 2012 | July 2, 2011 | June 30, 2012 | July 2, 2011 | ||||||||||
Net sales: | ||||||||||||||
Mohawk | $ | 734,493 | 758,064 | 1,434,373 | 1,449,229 | |||||||||
Dal-Tile | 404,288 | 379,469 | 797,213 | 723,884 | ||||||||||
Unilin | 354,374 | 363,097 | 691,798 | 688,929 | ||||||||||
Intersegment sales | (23,362 | ) | (22,776 | ) | (44,556 | ) | (40,593 | ) | ||||||
Consolidated net sales | $ | 1,469,793 | 1,477,854 | 2,878,828 | 2,821,449 | |||||||||
Operating income (loss): | ||||||||||||||
Mohawk | $ | 37,136 | 31,201 | 62,418 | 48,241 | |||||||||
Dal-Tile | 36,432 | 32,138 | 62,460 | 49,838 | ||||||||||
Unilin | 40,575 | 46,209 | 67,721 | 72,459 | ||||||||||
Corporate and eliminations | (6,425 | ) | (7,848 | ) | (12,905 | ) | (12,754 | ) | ||||||
Consolidated operating income | $ | 107,718 | 101,700 | 179,694 | 157,784 | |||||||||
Assets: | ||||||||||||||
Mohawk | $ | 1,791,376 | 1,783,630 | |||||||||||
Dal-Tile | 1,742,563 | 1,700,482 | ||||||||||||
Unilin | 2,539,997 | 2,717,032 | ||||||||||||
Corporate and eliminations | 190,841 | 187,856 | ||||||||||||
Consolidated assets | $ | 6,264,777 | 6,389,000 | |||||||||||
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 | ||||||||||||||||||
June 30, 2012 | July 2, 2011 | June 30, 2012 | July 2, 2011 | ||||||||||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 73,188 | 60,903 | 113,565 | 84,345 | ||||||||||||||
Adjusting items: | |||||||||||||||||||
Business restructurings | 8,226 | 6,514 | 8,226 | 13,327 | |||||||||||||||
Income taxes | (2,201 | ) | (1,818 | ) | (2,201 | ) | (2,836 | ) | |||||||||||
Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 79,213 | 65,599 | 119,590 | 94,836 | ||||||||||||||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 1.14 | 0.95 | 1.73 | 1.38 | ||||||||||||||
Weighted-average common shares outstanding - diluted | 69,259 | 68,981 | 69,204 | 68,942 | |||||||||||||||
Reconciliation of Operating Cash Flow to Free Cash Flow | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Three Months Ended June 30, 2012 | |||||||||||||||||||
Net cash provided by operating activities | $ | 140,046 | |||||||||||||||||
Additions to property, plant and equipment | (44,436 | ) | |||||||||||||||||
Free cash flow | $ | 95,610 | |||||||||||||||||
Reconciliation of Net Earnings to Adjusted EBITDA | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
June 30, 2012 | |||||||||||||||||||
Net earnings | $ | 73,188 | |||||||||||||||||
Income tax expense | 15,246 | ||||||||||||||||||
Interest expense | 18,844 | ||||||||||||||||||
Depreciation and amortization | 71,831 | ||||||||||||||||||
EBITDA | 179,109 | ||||||||||||||||||
Business restructurings | 8,226 | ||||||||||||||||||
Adjusted EBITDA | $ | 187,335 | |||||||||||||||||
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, 2012 | July 2, 2011 | June 30, 2012 | July 2, 2011 | ||||||||||||||||
Net sales | $ | 1,469,793 | 1,477,854 | 2,878,828 | 2,821,449 | ||||||||||||||
Adjustment to net sales on a constant exchange rate: | |||||||||||||||||||
Exchange rate | 36,326 | — | 49,962 | — | |||||||||||||||
Net sales on a constant exchange rate | $ | 1,506,119 | 1,477,854 | 2,928,790 | 2,821,449 | ||||||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate | |||||||||
(Amounts in thousands) | |||||||||
Three Months Ended | |||||||||
Dal-Tile | June 30, 2012 | July 2, 2011 | |||||||
Net sales | $ | 404,288 | 379,469 | ||||||
Adjustment to segment net sales on a constant exchange rate: | |||||||||
Exchange rate | 3,555 | — | |||||||
Segment net sales on a constant exchange rate | $ | 407,843 | 379,469 | ||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate | |||||||||
(Amounts in thousands) | |||||||||
Three Months Ended | |||||||||
Unilin | June 30, 2012 | July 2, 2011 | |||||||
Net sales | $ | 354,374 | 363,097 | ||||||
Adjustment to segment net sales on a constant exchange rate: | |||||||||
Exchange rate | 32,771 | — | |||||||
Segment net sales on a constant exchange rate | $ | 387,145 | 363,097 | ||||||
Reconciliation of Gross Profit to Adjusted Gross Profit | |||||||||
(Amounts in thousands) | |||||||||
Three Months Ended | |||||||||
June 30, 2012 | July 2, 2011 | ||||||||
Gross Profit | $ | 388,464 | 382,247 | ||||||
Adjustment to gross profit: | |||||||||
Business restructurings | 6,636 | 5,532 | |||||||
Adjusted gross profit | $ | 395,100 | 387,779 | ||||||
Adjusted gross profit as a percent of net sales | 26.9 | % | 26.2 | % | |||||
Reconciliation of Operating Income to Adjusted Operating Income | |||||||||
(Amounts in thousands) | |||||||||
Three Months Ended | |||||||||
June 30, 2012 | July 2, 2011 | ||||||||
Operating income | $ | 107,718 | 101,700 | ||||||
Adjustment to operating income: | |||||||||
Business restructurings | 8,226 | 6,514 | |||||||
Adjusted operating income | $ | 115,944 | 108,214 | ||||||
Adjusted operating margin as a percent of net sales | 7.9 | % | 7.3 | % | |||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | |||||||||
(Amounts in thousands) | |||||||||
Three Months Ended | |||||||||
Mohawk | June 30, 2012 | July 2, 2011 | |||||||
Operating income | $ | 37,136 | 31,201 | ||||||
Adjustment to segment operating income: | |||||||||
Business restructurings | 7,383 | 6,514 | |||||||
Adjusted segment operating income | $ | 44,519 | 37,715 | ||||||
Adjusted operating margin as a percent of net sales | 6.1 | % | 5 | % | |||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | |||||||||
(Amounts in thousands) | |||||||||
Three Months Ended | |||||||||
Unilin | June 30, 2012 | July 2, 2011 | |||||||
Operating income | $ | 40,575 | 46,209 |
Adjustment to segment operating income: | |||||||||
Business restructurings | 843 | — | |||||||
Adjusted segment operating income | $ | 41,418 | 46,209 | ||||||
Adjusted operating margin as a percent of net sales | 11.7 | % | 12.7 | % | |||||
Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes | |||||||||||||
(Amounts in thousands) | |||||||||||||
Three Months Ended | |||||||||||||
June 30, 2012 | July 2, 2011 | ||||||||||||
Earnings before income taxes | $ | 88,434 | 75,544 | ||||||||||
Adjustment to earnings before income taxes: | |||||||||||||
Business restructurings | 8,226 | 6,514 | |||||||||||
Adjusted earnings before income taxes | $ | 96,660 | 82,058 | ||||||||||
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | |||||||||||||
(Amounts in thousands) | |||||||||||||
Three Months Ended | |||||||||||||
June 30, 2012 | July 2, 2011 | ||||||||||||
Income tax expense | $ | 15,246 | 13,450 | ||||||||||
Adjustment to income tax expense: | |||||||||||||
Income tax effect of business restructurings | 2,201 | 1,818 | |||||||||||
Adjusted income tax expense | $ | 17,447 | 15,268 | ||||||||||
Adjusted income tax rate | 18 | % | 19 | % | |||||||||
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses | |||||||||||||
(Amounts in thousands) | |||||||||||||
Three Months Ended | |||||||||||||
June 30, 2012 | July 2, 2011 | ||||||||||||
Selling, general and administrative expenses | $ | 280,746 | 280,547 | ||||||||||
Adjustments to selling, general and administrative expenses: | |||||||||||||
Business restructurings | (1,590 | ) | (982 | ) | |||||||||
Exchange rate | (6,042 | ) | — | ||||||||||
Adjusted selling, general and administrative expenses | $ | 273,114 | 279,565 | ||||||||||
Adjusted selling, general and administrative expenses as a percent of net sales | 18.6 | % | 18.9 | % | |||||||||
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. |
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