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: | November 1, 2012 | By: | /s/ James F. Brunk | |||||
James F. Brunk | ||||||||
V.P. & Corporate Controller |
Exhibit | ||
99.1. | Press release dated November 1, 2012. |
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
Consolidated Statement of Operations | Three Months Ended | Nine Months Ended | ||||||||||||
(Amounts in thousands, except per share data) | September 29, 2012 | October 1, 2011 | September 29, 2012 | October 1, 2011 | ||||||||||
Net sales | $ | 1,473,493 | 1,442,512 | 4,352,321 | 4,263,961 | |||||||||
Cost of sales | 1,100,656 | 1,084,889 | 3,231,594 | 3,182,499 | ||||||||||
Gross profit | 372,837 | 357,623 | 1,120,727 | 1,081,462 | ||||||||||
Selling, general and administrative expenses | 268,883 | 266,159 | 837,079 | 832,214 | ||||||||||
Operating income | 103,954 | 91,464 | 283,648 | 249,248 | ||||||||||
Interest expense | 17,969 | 25,132 | 59,311 | 77,487 | ||||||||||
Other expense (income), net | 322 | 13,413 | (1,063 | ) | 13,794 | |||||||||
Earnings before income taxes | 85,663 | 52,919 | 225,400 | 157,967 | ||||||||||
Income tax expense | 15,359 | 5,223 | 40,896 | 23,639 | ||||||||||
Net earnings | 70,304 | 47,696 | 184,504 | 134,328 | ||||||||||
Net earnings attributable to noncontrolling interest | — | (1,050 | ) | (635 | ) | (3,337 | ) | |||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 70,304 | 46,646 | 183,869 | 130,991 | |||||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 1.02 | 0.68 | 2.67 | 1.91 | |||||||||
Weighted-average common shares outstanding - basic | 69,010 | 68,759 | 68,952 | 68,725 | ||||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 1.01 | 0.68 | 2.66 | 1.90 | |||||||||
Weighted-average common shares outstanding - diluted | 69,337 | 68,954 | 69,247 | 68,946 | ||||||||||
Other Financial Information | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 202,971 | 109,598 | 298,547 | 138,188 | |||||||||
Depreciation and amortization | $ | 71,298 | 74,207 | 216,415 | 222,804 | |||||||||
Capital expenditures | $ | 47,311 | 69,741 | 134,998 | 182,260 | |||||||||
Consolidated Balance Sheet Data | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
September 29, 2012 | October 1, 2011 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 380,842 | 276,156 | |||||||||||
Receivables, net | 817,214 | 775,421 | ||||||||||||
Inventories | 1,139,403 | 1,132,073 | ||||||||||||
Prepaid expenses and other current assets | 146,275 | 125,007 | ||||||||||||
Deferred income taxes | 112,995 | 131,931 | ||||||||||||
Total current assets | 2,596,729 | 2,440,588 | ||||||||||||
Property, plant and equipment, net | 1,657,226 | 1,696,182 | ||||||||||||
Goodwill | 1,371,494 | 1,389,430 | ||||||||||||
Intangible assets, net | 554,257 | 634,164 | ||||||||||||
Deferred income taxes and other non-current assets | 122,906 | 117,204 | ||||||||||||
Total assets | $ | 6,302,612 | 6,277,568 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | 57,673 | 438,300 | |||||||||||
Accounts payable and accrued expenses | 761,186 | 774,939 | ||||||||||||
Total current liabilities | 818,859 | 1,213,239 | ||||||||||||
Long-term debt, less current portion | 1,467,269 | 1,173,038 | ||||||||||||
Deferred income taxes and other long-term liabilities | 421,549 | 439,798 | ||||||||||||
Total liabilities | 2,707,677 | 2,826,075 | ||||||||||||
Noncontrolling interest | — | 32,758 | ||||||||||||
Total stockholders' equity | 3,594,935 | 3,418,735 | ||||||||||||
Total liabilities and stockholders' equity | $ | 6,302,612 | 6,277,568 | |||||||||||
Segment Information | Three Months Ended | As of or for the Nine Months Ended | ||||||||||||
(Amounts in thousands) | September 29, 2012 | October 1, 2011 | September 29, 2012 | October 1, 2011 | ||||||||||
Net sales: | ||||||||||||||
Mohawk | $ | 751,787 | 754,470 | 2,186,160 | 2,203,699 | |||||||||
Dal-Tile | 417,533 | 381,891 | 1,214,746 | 1,105,775 | ||||||||||
Unilin | 328,582 | 329,514 | 1,020,380 | 1,018,443 | ||||||||||
Intersegment sales | (24,409 | ) | (23,363 | ) | (68,965 | ) | (63,956 | ) | ||||||
Consolidated net sales | $ | 1,473,493 | 1,442,512 | 4,352,321 | 4,263,961 | |||||||||
Operating income (loss): | ||||||||||||||
Mohawk | $ | 43,810 | 30,946 | 106,228 | 79,187 | |||||||||
Dal-Tile | 37,452 | 33,073 | 99,912 | 82,911 | ||||||||||
Unilin | 28,892 | 33,048 | 96,613 | 105,507 | ||||||||||
Corporate and eliminations | (6,200 | ) | (5,603 | ) | (19,105 | ) | (18,357 | ) | ||||||
Consolidated operating income | $ | 103,954 | 91,464 | 283,648 | 249,248 | |||||||||
Assets: | ||||||||||||||
Mohawk | $ | 1,760,828 | 1,810,191 | |||||||||||
Dal-Tile | 1,783,147 | 1,735,718 | ||||||||||||
Unilin | 2,586,084 | 2,569,103 | ||||||||||||
Corporate and eliminations | 172,553 | 162,556 | ||||||||||||
Consolidated assets | $ | 6,302,612 | 6,277,568 | |||||||||||
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 | Nine Months Ended | |||||||||||||||||
September 29, 2012 | October 1, 2011 | September 29, 2012 | October 1, 2011 | |||||||||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 70,304 | 46,646 | 183,869 | 130,991 | |||||||||||||
Adjusting items: | ||||||||||||||||||
Unrealized foreign currency losses (1) | — | 9,085 | — | 9,085 | ||||||||||||||
Business restructurings | 4,229 | 2,186 | 12,455 | 15,513 | ||||||||||||||
Debt extinguishment costs | — | 1,116 | — | 1,116 | ||||||||||||||
Income taxes | (2,691 | ) | (1,761 | ) | (4,892 | ) | (4,597 | ) | ||||||||||
Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 71,842 | 57,272 | 191,432 | 152,108 | |||||||||||||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 1.04 | 0.83 | 2.76 | 2.21 | |||||||||||||
Weighted-average common shares outstanding - diluted | 69,337 | 68,954 | 69,247 | 68,946 | ||||||||||||||
Reconciliation of Operating Cash Flow to Free Cash Flow | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
September 29, 2012 | ||||||||||||||||||
Net cash provided by operating activities | $ | 202,971 | ||||||||||||||||
Capital expenditures | (47,311 | ) | ||||||||||||||||
Free cash flow | $ | 155,660 | ||||||||||||||||
Reconciliation of Total Debt to Net Debt | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
September 29, 2012 | ||||||||||||||||||
Current portion of long-term debt | $ | 57,673 | ||||||||||||||||
Long-term debt, less current portion | 1,467,269 | |||||||||||||||||
Cash and cash equivalents | (380,842 | ) | ||||||||||||||||
Net Debt | $ | 1,144,100 | ||||||||||||||||
Reconciliation of Capitalization | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
September 29, 2012 | ||||||||||||||||||
Current portion of long-term debt | $ | 57,673 | ||||||||||||||||
Long-term debt, less current portion | 1,467,269 | |||||||||||||||||
Total stockholders' equity | 3,594,935 | |||||||||||||||||
Capitalization | $ | 5,119,877 | ||||||||||||||||
Net Debt to Capitalization | 22 | % | ||||||||||||||||
Reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||||
December 31, 2011 | March 31, 2012 | June 30, 2012 | September 29, 2012 | September 29, 2012 | ||||||||||||||
Operating income | $ | 66,294 | 71,976 | 107,718 | 103,954 | 349,942 | ||||||||||||
Other (expense) income | (257 | ) | 1,825 | (440 | ) | (322 | ) | 806 | ||||||||||
Net earnings attributable to noncontrolling interest | (966 | ) | (635 | ) | — | — | (1,601 | ) | ||||||||||
Depreciation and amortization | 74,930 | 73,286 | 71,831 | 71,298 | 291,345 | |||||||||||||
EBITDA | 140,001 | 146,452 | 179,109 | 174,930 | 640,492 | |||||||||||||
Operating lease correction (2) | 6,035 | — | — | — | 6,035 | |||||||||||||
Business restructurings | 7,696 | — | 8,226 | 4,229 | 20,151 | |||||||||||||
Adjusted EBITDA | $ | 153,732 | 146,452 | 187,335 | 179,159 | 666,678 | ||||||||||||
Net Debt to Adjusted EBITDA | 1.7 | |||||||||||||||||
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 29, 2012 | October 1, 2011 | September 29, 2012 | October 1, 2011 | |||||||||||||||
Net sales | $ | 1,473,493 | 1,442,512 | 4,352,321 | 4,263,961 | |||||||||||||
Adjustment to net sales on a constant exchange rate | 32,777 | — | 82,877 | — | ||||||||||||||
Net sales on a constant exchange rate | $ | 1,506,270 | 1,442,512 | 4,435,198 | 4,263,961 | |||||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Dal-Tile | September 29, 2012 | October 1, 2011 | ||||||||||||||||
Net sales | $ | 417,533 | 381,891 | |||||||||||||||
Adjustment to segment net sales on a constant exchange rate | 1,935 | — | ||||||||||||||||
Segment net sales on a constant exchange rate | $ | 419,468 | 381,891 | |||||||||||||||
Three Months Ended | ||||||||||||||||||
Unilin | September 29, 2012 | October 1, 2011 | ||||||||||||||||
Net sales | $ | 328,582 | 329,514 | |||||||||||||||
Adjustment to segment net sales on a constant exchange rate | 30,842 | — | ||||||||||||||||
Segment net sales on a constant exchange rate | $ | 359,424 | 329,514 | |||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
September 29, 2012 | October 1, 2011 | |||||||||||||||||
Operating income | $ | 103,954 | 91,464 | |||||||||||||||
Business restructurings | 4,229 | 2,186 | ||||||||||||||||
Adjusted operating income | $ | 108,183 | 93,650 | |||||||||||||||
Adjusted operating margin as a percent of net sales | 7.3 | % | 6.5 | % | ||||||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Mohawk | September 29, 2012 | October 1, 2011 | ||||||||||||||||
Operating income | $ | 43,810 | 30,946 | |||||||||||||||
Business restructurings | 3,122 | 2,186 | ||||||||||||||||
Adjusted segment operating income | $ | 46,932 | 33,132 | |||||||||||||||
Adjusted operating margin as a percent of net sales | 6.2 | % | 4.4 | % | ||||||||||||||
Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
September 29, 2012 | October 1, 2011 | |||||||||||||||||
Earnings before income taxes | $ | 85,663 | 52,919 | |||||||||||||||
Adjustments to earnings before income taxes: | ||||||||||||||||||
Unrealized foreign currency losses (1) | — | 9,085 | ||||||||||||||||
Business restructurings | 4,229 | 2,186 | ||||||||||||||||
Debt extinquishment costs | — | 1,116 | ||||||||||||||||
Adjusted earnings before income taxes | $ | 89,892 | 65,306 | |||||||||||||||
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
September 29, 2012 | October 1, 2011 | |||||||||||||||||
Income tax expense | $ | 15,359 | 5,223 | |||||||||||||||
Income tax effect of business restructurings | 2,691 | 1,761 | ||||||||||||||||
Adjusted income tax expense | $ | 18,050 | 6,984 | |||||||||||||||
Adjusted income tax rate | 20 | % | 11 | % | ||||||||||||||
(1) Unrealized foreign currency losses in Q3 2011 for certain of the Company's consolidated foreign subsidiaries that measure financial position and results using the U.S. dollar rather than the local currency. | ||||||||||||||||||
(2) Correction of an immaterial error related to accounting for operating leases | ||||||||||||||||||
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 the planning and forecasting in subsequent periods. |