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: | February 21, 2013 | By: | /s/ James F. Brunk | |||||
James F. Brunk | ||||||||
V.P. & Corporate Controller |
Exhibit | ||
99.1. | Press release dated February 21, 2013 |
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
Consolidated Statement of Operations | Three Months Ended | Twelve Months Ended | ||||||||||||
(Amounts in thousands, except per share data) | December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||
Net sales | $ | 1,435,659 | 1,378,297 | 5,787,980 | 5,642,258 | |||||||||
Cost of sales | 1,066,329 | 1,042,880 | 4,297,922 | 4,225,379 | ||||||||||
Gross profit | 369,330 | 335,417 | 1,490,058 | 1,416,879 | ||||||||||
Selling, general and administrative expenses | 273,470 | 269,123 | 1,110,550 | 1,101,337 | ||||||||||
Operating income | 95,860 | 66,294 | 379,508 | 315,542 | ||||||||||
Interest expense | 15,402 | 24,130 | 74,713 | 101,617 | ||||||||||
Other expense, net | 1,366 | 257 | 303 | 14,051 | ||||||||||
Earnings before income taxes | 79,092 | 41,907 | 304,492 | 199,874 | ||||||||||
Income tax expense | 12,703 | (1,990 | ) | 53,599 | 21,649 | |||||||||
Net earnings | 66,389 | 43,897 | 250,893 | 178,225 | ||||||||||
Net earnings attributable to noncontrolling interest | — | (966 | ) | (635 | ) | (4,303 | ) | |||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 66,389 | 42,931 | 250,258 | 173,922 | |||||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 0.96 | 0.62 | 3.63 | 2.53 | |||||||||
Weighted-average common shares outstanding - basic | 69,095 | 68,768 | 68,988 | 68,736 | ||||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 0.95 | 0.62 | 3.61 | 2.52 | |||||||||
Weighted-average common shares outstanding - diluted | 69,536 | 69,016 | 69,306 | 68,964 | ||||||||||
Other Financial Information | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 289,043 | 162,805 | 587,590 | 300,993 | |||||||||
Depreciation and amortization | $ | 63,878 | 74,930 | 280,293 | 297,734 | |||||||||
Capital expenditures | $ | 73,296 | 93,313 | 208,294 | 275,573 | |||||||||
Consolidated Balance Sheet Data | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 477,672 | 311,945 | |||||||||||
Receivables, net | 679,473 | 686,165 | ||||||||||||
Inventories | 1,133,736 | 1,113,630 | ||||||||||||
Prepaid expenses and other current assets | 147,580 | 135,514 | ||||||||||||
Deferred income taxes | 111,585 | 150,910 | ||||||||||||
Total current assets | 2,550,046 | 2,398,164 | ||||||||||||
Property, plant and equipment, net | 1,692,852 | 1,712,154 | ||||||||||||
Goodwill | 1,385,771 | 1,375,175 | ||||||||||||
Intangible assets, net | 553,799 | 605,100 | ||||||||||||
Deferred income taxes and other non-current assets | 121,216 | 115,635 | ||||||||||||
Total assets | $ | 6,303,684 | 6,206,228 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | 55,213 | 386,255 | |||||||||||
Accounts payable and accrued expenses | 773,436 | 715,091 | ||||||||||||
Total current liabilities | 828,649 | 1,101,346 | ||||||||||||
Long-term debt, less current portion | 1,327,729 | 1,200,184 | ||||||||||||
Deferred income taxes and other long-term liabilities | 427,689 | 455,190 | ||||||||||||
Total liabilities | 2,584,067 | 2,756,720 | ||||||||||||
Noncontrolling interest | — | 33,723 | ||||||||||||
Total stockholders' equity | 3,719,617 | 3,415,785 | ||||||||||||
Total liabilities and stockholders' equity | $ | 6,303,684 | 6,206,228 | |||||||||||
Segment Information | Three Months Ended | As of and for the Twelve Months Ended | ||||||||||||
(Amounts in thousands) | December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||
Net sales: | ||||||||||||||
Mohawk | $ | 725,895 | 723,975 | 2,912,055 | 2,927,674 | |||||||||
Dal-Tile | 401,637 | 348,541 | 1,616,383 | 1,454,316 | ||||||||||
Unilin | 329,969 | 326,321 | 1,350,349 | 1,344,764 | ||||||||||
Intersegment sales | (21,842 | ) | (20,540 | ) | (90,807 | ) | (84,496 | ) | ||||||
Consolidated net sales | $ | 1,435,659 | 1,378,297 | 5,787,980 | 5,642,258 | |||||||||
Operating income (loss): | ||||||||||||||
Mohawk | $ | 51,968 | 30,687 | 158,196 | 109,874 | |||||||||
Dal-Tile | 21,039 | 18,387 | 120,951 | 101,298 | ||||||||||
Unilin | 29,796 | 21,640 | 126,409 | 127,147 | ||||||||||
Corporate and eliminations | (6,943 | ) | (4,420 | ) | (26,048 | ) | (22,777 | ) | ||||||
Consolidated operating income | $ | 95,860 | 66,294 | 379,508 | 315,542 | |||||||||
Assets: | ||||||||||||||
Mohawk | $ | 1,721,214 | 1,769,065 | |||||||||||
Dal-Tile | 1,731,258 | 1,732,818 | ||||||||||||
Unilin | 2,672,389 | 2,533,070 | ||||||||||||
Corporate and eliminations | 178,823 | 171,275 | ||||||||||||
Consolidated assets | $ | 6,303,684 | 6,206,228 | |||||||||||
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 | Twelve Months Ended | |||||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | |||||||||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 66,389 | 42,931 | 250,258 | 173,922 | |||||||||||||
Adjusting items: | ||||||||||||||||||
Unrealized foreign currency losses (1) | — | — | — | 9,085 | ||||||||||||||
Operating lease correction (2) | — | 6,035 | — | 6,035 | ||||||||||||||
Business restructurings | 6,109 | 7,696 | 18,564 | 23,209 | ||||||||||||||
Debt extinguishment costs | — | — | — | 1,116 | ||||||||||||||
Income taxes | (2,111 | ) | (7,152 | ) | (7,003 | ) | (11,749 | ) | ||||||||||
Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 70,387 | 49,510 | 261,819 | 201,618 | |||||||||||||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 1.01 | 0.72 | 3.78 | 2.92 | |||||||||||||
Weighted-average common shares outstanding - diluted | 69,536 | 69,016 | 69,306 | 68,964 | ||||||||||||||
Reconciliation of Operating Cash Flow to Free Cash Flow | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||
Net cash provided by operating activities | $ | 289,043 | ||||||||||||||||
Capital expenditures | 73,296 | |||||||||||||||||
Free cash flow | $ | 215,747 | ||||||||||||||||
Reconciliation of Total Debt to Net Debt | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||
Current portion of long-term debt | $ | 55,213 | 386,255 | |||||||||||||||
Long-term debt, less current portion | 1,327,729 | 1,200,184 | ||||||||||||||||
Less: Cash and cash equivalents | 477,672 | 311,945 | ||||||||||||||||
Net Debt | $ | 905,270 | 1,274,494 | |||||||||||||||
Reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||||
March 31, 2012 | June 30, 2012 | September 29, 2012 | December 31, 2012 | December 31, 2012 | ||||||||||||||
Operating income | $ | 71,976 | 107,718 | 103,954 | 95,860 | 379,508 | ||||||||||||
Other (expense) income | 1,825 | (440 | ) | (322 | ) | (1,366 | ) | (303 | ) | |||||||||
Net earnings attributable to noncontrolling interest | (635 | ) | — | — | — | (635 | ) | |||||||||||
Depreciation and amortization | 73,286 | 71,831 | 71,298 | 63,878 | 280,293 | |||||||||||||
EBITDA | 146,452 | 179,109 | 174,930 | 158,372 | 658,863 | |||||||||||||
Business restructurings | — | 8,226 | 4,229 | 6,109 | 18,564 | |||||||||||||
Adjusted EBITDA | $ | 146,452 | 187,335 | 179,159 | 164,481 | 677,427 | ||||||||||||
Net Debt to Adjusted EBITDA | 1.3 | |||||||||||||||||
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | |||||||||||||||
Net sales | $ | 1,435,659 | 1,378,297 | 5,787,980 | 5,642,258 | |||||||||||||
Adjustment to net sales on a constant exchange rate | 9,423 | — | 92,300 | — | ||||||||||||||
Net sales on a constant exchange rate | $ | 1,445,082 | 1,378,297 | 5,880,280 | 5,642,258 | |||||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Dal-Tile | December 31, 2012 | December 31, 2011 | ||||||||||||||||
Net sales | $ | 401,637 | 348,541 | |||||||||||||||
Adjustment to segment net sales on a constant exchange rate | (1,635 | ) | — | |||||||||||||||
Segment net sales on a constant exchange rate | $ | 400,002 | 348,541 | |||||||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Unilin | December 31, 2012 | December 31, 2011 | ||||||||||||||||
Net sales | $ | 329,969 | 326,321 | |||||||||||||||
Adjustment to segment net sales on a constant exchange rate | 11,058 | — | ||||||||||||||||
Segment net sales on a constant exchange rate | $ | 341,027 | 326,321 | |||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | |||||||||||||||
Operating income | $ | 95,860 | 66,294 | 379,508 | 315,542 | |||||||||||||
Operating lease correction (2) | — | 6,035 | — | 6,035 | ||||||||||||||
Business restructurings | 6,109 | 7,696 | 18,564 | 23,209 | ||||||||||||||
Adjusted operating income | $ | 101,969 | 80,025 | 398,072 | 344,786 | |||||||||||||
Adjusted operating margin as a percent of net sales | 7.1 | % | 5.8 | % | 6.9 | % | 6.1 | % | ||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
Mohawk | December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||||
Operating income | $ | 51,968 | 30,687 | 158,196 | 109,874 | |||||||||||||
Operating lease correction (2) | — | 2,761 | — | 2,761 | ||||||||||||||
Business restructurings | — | 7,696 | 10,504 | 23,209 | ||||||||||||||
Adjusted segment operating income | $ | 51,968 | 41,144 | 168,700 | 135,844 | |||||||||||||
Adjusted operating margin as a percent of net sales | 7.2 | % | 5.7 | % | 5.8 | % | 4.6 | % | ||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
Dal-Tile | December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||||
Operating income | $ | 21,039 | 18,387 | 120,951 | 101,298 | |||||||||||||
Operating lease correction (2) | — | 3,274 | — | 3,274 | ||||||||||||||
Business restructurings | 6,109 | — | 6,109 | — | ||||||||||||||
Adjusted segment operating income | $ | 27,148 | 21,661 | 127,060 | 104,572 | |||||||||||||
Adjusted operating margin as a percent of net sales | 6.8 | % | 6.2 | % | 7.9 | % | 7.2 | % | ||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
Unilin | December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||||
Operating income | 29,796 | 21,640 | 126,409 | 127,147 | ||||||||||||||
Business restructurings | — | — | 1,951 | — | ||||||||||||||
Adjusted segment operating income | $ | 29,796 | 21,640 | 128,360 | 127,147 | |||||||||||||
Adjusted operating margin as a percent of net sales | 9.0 | % | 6.6 | % | 9.5 | % | 9.5 | % | ||||||||||
Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||
Earnings before income taxes | $ | 79,092 | 41,907 | |||||||||||||||
Adjustments to earnings before income taxes: | ||||||||||||||||||
Operating lease correction (2) | — | 6,035 | ||||||||||||||||
Business restructurings | 6,109 | 7,696 | ||||||||||||||||
Adjusted earnings before income taxes | $ | 85,201 | 55,638 | |||||||||||||||
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||
Income tax expense | $ | 12,703 | (1,990 | ) | ||||||||||||||
Income tax effect of adjusting items | 2,111 | 7,152 | ||||||||||||||||
Adjusted income tax expense | $ | 14,814 | 5,162 | |||||||||||||||
Adjusted income tax rate | 17 | % | 9 | % | ||||||||||||||
(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. |