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: | May 7, 2015 | By: | /s/ James F. Brunk | |||
James F. Brunk | ||||||
V.P. & Corporate Controller |
Exhibit | |||
99.1 | Press release dated | May 7, 2015 |
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | |||||||
Consolidated Statement of Operations | Three Months Ended | ||||||
(Amounts in thousands, except per share data) | April 4, 2015 | March 29, 2014 | |||||
Net sales | $ | 1,881,177 | 1,813,095 | ||||
Cost of sales | 1,369,234 | 1,331,740 | |||||
Gross profit | 511,943 | 481,355 | |||||
Selling, general and administrative expenses | 468,169 | 350,620 | |||||
Operating income | 43,774 | 130,735 | |||||
Interest expense | 16,449 | 22,096 | |||||
Other expense (income), net | (1,083 | ) | 4,890 | ||||
Earnings from continuing operations before income taxes | 28,408 | 103,749 | |||||
Income tax expense | 5,904 | 22,696 | |||||
Net earnings including noncontrolling interest | 22,504 | 81,053 | |||||
Net earnings (loss) attributable to noncontrolling interest | 158 | (28 | ) | ||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 22,346 | 81,081 | ||||
Basic earnings per share attributable to Mohawk Industries, Inc. | |||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 0.31 | 1.11 | ||||
Weighted-average common shares outstanding - basic | 72,988 | 72,742 | |||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | |||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 0.30 | 1.11 | ||||
Weighted-average common shares outstanding - diluted | 73,530 | 73,282 |
Other Financial Information | |||||||
(Amounts in thousands) | |||||||
Depreciation and amortization | $ | 85,656 | 80,984 | ||||
Capital expenditures | $ | 105,794 | 122,081 |
Consolidated Balance Sheet Data | |||||||
(Amounts in thousands) | |||||||
April 4, 2015 | March 29, 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 107,041 | 72,645 | ||||
Receivables, net | 1,158,858 | 1,174,895 | |||||
Inventories | 1,505,632 | 1,632,236 | |||||
Prepaid expenses and other current assets | 285,261 | 249,690 | |||||
Deferred income taxes | 147,027 | 133,808 | |||||
Total current assets | 3,203,819 | 3,263,274 | |||||
Property, plant and equipment, net | 2,618,633 | 2,745,057 | |||||
Goodwill | 1,553,155 | 1,721,792 | |||||
Intangible assets, net | 661,846 | 796,896 | |||||
Deferred income taxes and other non-current assets | 247,169 | 154,469 | |||||
Total assets | $ | 8,284,622 | 8,681,488 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt and commercial paper | $ | 1,806,175 | 654,871 | ||||
Accounts payable and accrued expenses | 1,085,805 | 1,188,644 | |||||
Total current liabilities | 2,891,980 | 1,843,515 | |||||
Long-term debt, less current portion | 606,080 | 1,811,789 | |||||
Deferred income taxes and other long-term liabilities | 562,767 | 532,740 | |||||
Total liabilities | 4,060,827 | 4,188,044 | |||||
Total stockholders' equity | 4,223,795 | 4,493,444 | |||||
Total liabilities and stockholders' equity | $ | 8,284,622 | 8,681,488 |
Segment Information | As of and for the Three Months Ended | ||||||
(Amounts in thousands) | April 4, 2015 | March 29, 2014 | |||||
Net sales: | |||||||
Carpet | $ | 739,264 | 674,926 | ||||
Ceramic | 719,828 | 695,094 | |||||
Laminate and Wood | 448,398 | 468,008 | |||||
Intersegment sales | (26,313 | ) | (24,933 | ) | |||
Consolidated net sales | $ | 1,881,177 | 1,813,095 | ||||
Operating income (loss): | |||||||
Carpet | $ | (89,994 | ) | 34,271 | |||
Ceramic | 85,327 | 60,659 | |||||
Laminate and Wood | 58,901 | 44,119 | |||||
Corporate and eliminations | (10,460 | ) | (8,314 | ) | |||
Consolidated operating income | $ | 43,774 | 130,735 | ||||
Assets: | |||||||
Carpet | $ | 2,015,550 | 1,920,937 | ||||
Ceramic | 3,584,471 | 3,782,006 | |||||
Laminate and Wood | 2,406,286 | 2,788,839 | |||||
Corporate and eliminations | 278,315 | 189,706 | |||||
Consolidated assets | $ | 8,284,622 | 8,681,488 |
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 | ||||||
April 4, 2015 | March 29, 2014 | |||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 22,346 | 81,081 | |||
Adjusting items: | ||||||
Restructuring, acquisition and integration-related costs | 12,529 | 11,725 | ||||
Legal settlement and reserve | 125,000 | — | ||||
Deferred loan costs | 651 | — | ||||
Income taxes | (35,554 | ) | (2,391 | ) | ||
Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 124,972 | 90,415 | |||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 1.70 | 1.23 | |||
Weighted-average common shares outstanding - diluted | 73,530 | 73,282 |
Reconciliation of Adjusted Diluted Earnings Per Share on a Constant Exchange Rate | ||||
Three Months Ended | ||||
April 4, 2015 | ||||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 1.70 | ||
Adjustment to constant exchange rate | 0.20 | |||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. on a constant exchange rate | $ | 1.90 |
Reconciliation of Total Debt to Net Debt | |||
(Amounts in thousands) | |||
April 4, 2015 | |||
Current portion of long-term debt and commercial paper | $ | 1,806,175 | |
Long-term debt, less current portion | 606,080 | ||
Less: Cash and cash equivalents | 107,041 | ||
Net Debt | $ | 2,305,214 |
Reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||||||
(Amounts in thousands) | Trailing Twelve | |||||||||||||||
Three Months Ended | Months Ended | |||||||||||||||
June 28, 2014 | September 27, 2014 | December 31, 2014 | April 4, 2015 | April 4, 2015 | ||||||||||||
Operating income | $ | 222,248 | 213,693 | 206,120 | 43,774 | 685,835 | ||||||||||
Other (expense) income | 1,555 | 2,374 | (9,737 | ) | 1,083 | (4,725 | ) | |||||||||
Net (earnings) loss attributable to non-controlling interest | (111 | ) | 6 | (212 | ) | (158 | ) | (475 | ) | |||||||
Depreciation and amortization | 83,754 | 85,167 | 95,665 | 85,656 | 350,242 | |||||||||||
EBITDA | 307,446 | 301,240 | 291,836 | 130,355 | 1,030,877 | |||||||||||
Restructuring, acquisition and integration-related costs | 10,224 | 11,311 | 21,859 | 8,169 | 51,563 | |||||||||||
Legal settlement and reserve | — | 10,000 | — | 125,000 | 135,000 | |||||||||||
Adjusted EBITDA | $ | 317,670 | 322,551 | 313,695 | 263,524 | 1,217,440 | ||||||||||
Net Debt to Adjusted EBITDA | 1.9 |
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate and Shipping Days | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
April 4, 2015 | March 29, 2014 | ||||||
Net sales | $ | 1,881,177 | 1,813,095 | ||||
Adjustment to net sales on constant shipping days | (105,125 | ) | — | ||||
Adjustment to net sales on a constant exchange rate | 136,782 | — | |||||
Net sales on a constant exchange rate and shipping days | $ | 1,912,834 | 1,813,095 |
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and Shipping Days | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Carpet | April 4, 2015 | March 29, 2014 | |||||
Net sales | $ | 739,264 | 674,926 | ||||
Adjustment to net sales on constant shipping days | (40,500 | ) | — | ||||
Adjustment to segment net sales on a constant exchange rate | — | — | |||||
Segment net sales on a constant exchange rate and shipping days | $ | 698,764 | 674,926 |
Reconciliation of Segment Net Sales to Proforma Segment Net Sales on a Constant Exchange Rate and Shipping Days | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Ceramic | April 4, 2015 | March 29, 2014 | |||||
Net sales | $ | 719,828 | 695,094 | ||||
Adjustment to net sales on constant shipping days | (37,449 | ) | — | ||||
Adjustment to segment net sales on a constant exchange rate | 66,882 | — | |||||
Exclusion of sales from 2014 disposal of French Ceramic Subsidiary | — | (8,700 | ) | ||||
Segment proforma net sales on a constant exchange rate and shipping days | $ | 749,261 | 686,394 |
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and Shipping Days | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Laminate and Wood | April 4, 2015 | March 29, 2014 | |||||
Net sales | $ | 448,398 | 468,008 | ||||
Adjustment to net sales on constant shipping days | (27,176 | ) | — | ||||
Adjustment to segment net sales on a constant exchange rate | 69,900 | — | |||||
Segment net sales on a constant exchange rate and shipping days | $ | 491,122 | 468,008 |
Reconciliation of Gross Profit to Adjusted Gross Profit | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
April 4, 2015 | March 29, 2014 | |||||
Gross Profit | $ | 511,943 | 481,355 | |||
Adjustments to gross profit: | ||||||
Restructuring and integration-related costs | 9,976 | 5,637 | ||||
Adjusted gross profit | $ | 521,919 | 486,992 | |||
Adjusted gross profit as a percent of net sales | 27.7 | % | 26.9 | % |
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
April 4, 2015 | March 29, 2014 | |||||
Selling, general and administrative expenses | $ | 468,169 | 350,620 | |||
Adjustments to selling, general and administrative expenses: | ||||||
Restructuring, acquisition and integration-related costs | (2,553 | ) | (6,088 | ) | ||
Legal settlement and reserve | (125,000 | ) | — | |||
Adjusted selling, general and administrative expenses | $ | 340,616 | 344,532 | |||
Adjusted selling, general and administrative expenses as a percent of net sales | 18.1 | % | 19.0 | % |
Reconciliation of Operating Income to Adjusted Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
April 4, 2015 | March 29, 2014 | |||||
Operating income | $ | 43,774 | 130,735 | |||
Adjustments to operating income: | ||||||
Restructuring, acquisition and integration-related costs | 12,529 | 11,725 | ||||
Legal settlement and reserve | 125,000 | — | ||||
Adjusted operating income | $ | 181,303 | 142,460 | |||
Adjusted operating income as a percent of net sales | 9.6 | % | 7.9 | % |
Reconciliation of Adjusted Operating Income on a Constant Exchange Rate | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
April 4, 2015 | March 29, 2014 | |||||
Operating income | $ | 43,774 | 130,735 | |||
Adjustments to operating income: | ||||||
Restructuring, acquisition and integration-related costs | 12,529 | 11,725 | ||||
Legal settlement and reserve | 125,000 | — | ||||
Adjustment to operating income on constant exchange rates of Euro/USD: 1.12 vs 1.37 and Ruble/USD: 61.87 vs 35.01 | 21,000 | — | ||||
Adjusted operating income on a constant exchange rate | $ | 202,303 | 142,460 |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Carpet | April 4, 2015 | March 29, 2014 | ||||
Operating income | $ | (89,994 | ) | 34,271 | ||
Adjustment to segment operating income: | ||||||
Restructuring, acquisition and integration-related costs | 5,945 | — | ||||
Legal settlement and reserve | 125,000 | — | ||||
Adjusted segment operating income | $ | 40,951 | 34,271 | |||
Adjusted operating income as a percent of net sales | 5.5 | % | 5.1 | % |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Ceramic | April 4, 2015 | March 29, 2014 | ||||
Operating income | $ | 85,327 | 60,659 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related costs | 362 | 1,981 | ||||
Adjusted segment operating income | $ | 85,689 | 62,640 | |||
Adjusted operating income as a percent of net sales | 11.9 | % | 9.0 | % |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Ceramic | April 4, 2015 | March 29, 2014 | ||||
Operating income | $ | 85,327 | 60,659 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related costs | 362 | 1,981 | ||||
Adjustment to operating income on constant exchange rates of Euro/USD: 1.12 vs 1.37 and Ruble/USD: 61.87 vs 35.01 | 10,000 | — | ||||
Adjusted segment operating income on a constant exchange rate | $ | 95,689 | 62,640 |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Laminate and Wood | April 4, 2015 | March 29, 2014 | ||||
Operating income | $ | 58,901 | 44,119 | |||
Adjustment to segment operating income: | ||||||
Restructuring, acquisition and integration-related costs | 5,035 | 9,576 | ||||
Adjusted segment operating income | $ | 63,936 | 53,695 | |||
Adjusted operating income as a percent of net sales | 14.3 | % | 11.5 | % |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Laminate and Wood | April 4, 2015 | March 29, 2014 | ||||
Operating income | $ | 58,901 | 44,119 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related costs | 5,035 | 9,576 | ||||
Adjustment to operating income on a constant exchange rate of Euro/USD: 1.12 vs 1.37 | 11,000 | — | ||||
Adjusted segment operating income on a constant exchange rate | $ | 74,936 | 53,695 |
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
April 4, 2015 | March 29, 2014 | |||||
Income tax expense | $ | 5,904 | 22,696 | |||
Income tax effect of adjusting items | 35,554 | 2,391 | ||||
Adjusted income tax expense | $ | 41,458 | 25,087 | |||
Adjusted income tax rate | 25 | % | 22 | % |