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 6, 2015 | By: | /s/ James F. Brunk | |||
James F. Brunk | ||||||
V.P. & Corporate Controller |
Exhibit | |||
99.1 | Press release dated | August 6, 2015 |
NEWS RELEASE |
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||
(Unaudited) | ||||||||||||
Consolidated Statement of Operations | Three Months Ended | Six Months Ended | ||||||||||
(Amounts in thousands, except per share data) | July 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | ||||||||
Net sales | $ | 2,041,733 | 2,048,247 | 3,922,910 | 3,861,342 | |||||||
Cost of sales | 1,426,604 | 1,473,435 | 2,795,838 | 2,805,175 | ||||||||
Gross profit | 615,129 | 574,812 | 1,127,072 | 1,056,167 | ||||||||
Selling, general and administrative expenses | 359,313 | 352,564 | 827,482 | 703,184 | ||||||||
Operating income | 255,816 | 222,248 | 299,590 | 352,983 | ||||||||
Interest expense | 16,838 | 20,702 | 33,287 | 42,798 | ||||||||
Other expense (income), net | 2,928 | (1,555 | ) | 1,845 | 3,335 | |||||||
Earnings from continuing operations before income taxes | 236,050 | 203,101 | 264,458 | 306,850 | ||||||||
Income tax expense | 49,276 | 50,240 | 55,180 | 72,936 | ||||||||
Net earnings including noncontrolling interest | 186,774 | 152,861 | 209,278 | 233,914 | ||||||||
Net earnings attributable to noncontrolling interest | 282 | 111 | 440 | 83 | ||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 186,492 | 152,750 | 208,838 | 233,831 | |||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | ||||||||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 2.54 | 2.10 | 2.85 | 3.21 | |||||||
Weighted-average common shares outstanding - basic | 73,264 | 72,832 | 73,123 | 72,788 | ||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | ||||||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.53 | 2.08 | 2.83 | 3.19 | |||||||
Weighted-average common shares outstanding - diluted | 73,756 | 73,297 | 73,644 | 73,302 |
Other Financial Information | |||||||||||||
(Amounts in thousands) | |||||||||||||
Depreciation and amortization | $ | 88,011 | 83,754 | 173,667 | 164,738 | ||||||||
Capital expenditures | $ | 122,628 | 127,616 | 228,422 | 249,697 |
Consolidated Balance Sheet Data | |||||||
(Amounts in thousands) | |||||||
July 4, 2015 | June 28, 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 171,087 | 70,044 | ||||
Receivables, net | 1,387,687 | 1,261,808 | |||||
Inventories | 1,592,403 | 1,644,768 | |||||
Prepaid expenses and other current assets | 303,871 | 267,210 | |||||
Deferred income taxes | 153,574 | 135,259 | |||||
Total current assets | 3,608,622 | 3,379,089 | |||||
Property, plant and equipment, net | 3,014,751 | 2,830,202 | |||||
Goodwill | 2,294,214 | 1,730,713 | |||||
Intangible assets, net | 931,296 | 792,260 | |||||
Deferred income taxes and other non-current assets | 316,787 | 149,417 | |||||
Total assets | $ | 10,165,670 | 8,881,681 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt and commercial paper | $ | 1,698,044 | 619,229 | ||||
Accounts payable and accrued expenses | 1,303,487 | 1,253,291 | |||||
Total current liabilities | 3,001,531 | 1,872,520 | |||||
Long-term debt, less current portion | 1,777,828 | 1,807,609 | |||||
Deferred income taxes and other long-term liabilities | 750,125 | 528,252 | |||||
Total liabilities | 5,529,484 | 4,208,381 | |||||
Redeemable noncontrolling interest | 21,304 | — | |||||
Total stockholders' equity | 4,614,882 | 4,673,300 | |||||
Total liabilities and stockholders' equity | $ | 10,165,670 | 8,881,681 |
Segment Information | Three Months Ended | As of or for the Six Months Ended | ||||||||||||
(Amounts in thousands) | July 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | ||||||||||
Net sales: | ||||||||||||||
Global Ceramic | $ | 789,802 | 796,724 | 1,509,630 | 1,491,818 | |||||||||
Flooring NA | 920,337 | 895,912 | 1,767,248 | 1,676,243 | ||||||||||
Flooring ROW | 331,622 | 357,738 | 646,364 | 695,804 | ||||||||||
Intersegment sales | (28 | ) | (2,127 | ) | (332 | ) | (2,523 | ) | ||||||
Consolidated net sales | $ | 2,041,733 | 2,048,247 | 3,922,910 | 3,861,342 | |||||||||
Operating income (loss): | ||||||||||||||
Global Ceramic | $ | 121,189 | 106,407 | 206,516 | 167,066 | |||||||||
Flooring NA | 95,143 | 76,602 | 19,951 | 123,955 | ||||||||||
Flooring ROW | 53,052 | 47,398 | 97,693 | 78,864 | ||||||||||
Corporate and eliminations | (13,568 | ) | (8,159 | ) | (24,570 | ) | (16,902 | ) | ||||||
Consolidated operating income | $ | 255,816 | 222,248 | 299,590 | 352,983 | |||||||||
Assets: | ||||||||||||||
Global Ceramic | $ | 3,950,088 | 3,900,387 | |||||||||||
Flooring NA | 3,182,465 | 2,587,409 | ||||||||||||
Flooring ROW | 2,710,895 | 2,174,546 | ||||||||||||
Corporate and eliminations | 322,222 | 219,339 | ||||||||||||
Consolidated assets | $ | 10,165,670 | 8,881,681 |
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 | |||||||||||
July 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | |||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 186,492 | 152,750 | 208,838 | 233,831 | |||||||
Adjusting items: | ||||||||||||
Restructuring, acquisition and integration-related and other costs | 20,485 | 11,169 | 33,014 | 22,894 | ||||||||
Acquisitions purchase accounting (inventory step-up) | 6,156 | — | 6,156 | — | ||||||||
Legal settlement and reserves | — | — | 125,000 | — | ||||||||
Deferred loan costs | — | — | 651 | — | ||||||||
Income taxes | (14,490 | ) | (2,229 | ) | (50,044 | ) | (4,620 | ) | ||||
Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 198,643 | 161,690 | 323,615 | 252,105 | |||||||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.69 | 2.21 | 4.39 | 3.44 | |||||||
Weighted-average common shares outstanding - diluted | 73,756 | 73,297 | 73,644 | 73,302 |
Reconciliation of Total Debt to Net Debt | |||
(Amounts in thousands) | |||
July 4, 2015 | |||
Current portion of long-term debt and commercial paper | $ | 1,698,044 | |
Long-term debt, less current portion | 1,777,828 | ||
Less: Cash and cash equivalents | 171,087 | ||
Net Debt | $ | 3,304,785 |
Reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||||||
(Amounts in thousands) | Trailing Twelve | |||||||||||||||
Three Months Ended | Months Ended | |||||||||||||||
September 27, 2014 | December 31, 2014 | April 4, 2015 | July 4, 2015 | July 4, 2015 | ||||||||||||
Operating income | $ | 213,693 | 206,120 | 43,774 | 255,816 | 719,403 | ||||||||||
Other (expense) income | 2,374 | (9,737 | ) | 1,083 | (2,928 | ) | (9,208 | ) | ||||||||
Net (earnings) loss attributable to non-controlling interest | 6 | (212 | ) | (158 | ) | (282 | ) | (646 | ) | |||||||
Depreciation and amortization | 85,167 | 95,665 | 85,656 | 88,011 | 354,499 | |||||||||||
EBITDA | 301,240 | 291,836 | 130,355 | 340,617 | 1,064,048 | |||||||||||
Restructuring, acquisition and integration-related and other costs | 11,311 | 21,859 | 8,169 | 17,275 | 58,614 | |||||||||||
Acquisitions purchase accounting (inventory step-up) | — | — | — | 6,156 | 6,156 | |||||||||||
Legal settlement and reserves | 10,000 | — | 125,000 | — | 135,000 | |||||||||||
Adjusted EBITDA | $ | 322,551 | 313,695 | 263,524 | 364,048 | 1,263,818 | ||||||||||
Net Debt to Adjusted EBITDA | 2.6 |
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate | ||||||||||||
(Amounts in thousands) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
July 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | |||||||||
Net sales | $ | 2,041,733 | 2,048,247 | 3,922,910 | 3,861,342 | |||||||
Adjustment to net sales on a constant exchange rate | 140,913 | — | 277,616 | — | ||||||||
Net sales on a constant exchange rate | $ | 2,182,646 | 2,048,247 | 4,200,526 | 3,861,342 |
Reconciliation of 2015 Net Sales to Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q2 Acquisition Volume | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
July 4, 2015 | June 28, 2014 | ||||||
Net sales | $ | 2,041,733 | 2,048,247 | ||||
Adjustment to net sales on a constant exchange rate | 140,913 | — | |||||
Less: 2015 Q2 impact of acquisition volume | (55,672 | ) | — | ||||
2015 proforma net sales on a constant exchange rate excluding acquisition volume | $ | 2,126,974 | 2,048,247 |
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Global Ceramic | July 4, 2015 | June 28, 2014 | |||||
Net sales | $ | 789,802 | 796,724 | ||||
Adjustment to segment net sales on a constant exchange rate | 68,957 | — | |||||
Segment net sales on a constant exchange rate | $ | 858,759 | 796,724 |
Reconciliation of 2015 Segment Net Sales to Segment Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q2 Acquisition Volume | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Global Ceramic | July 4, 2015 | June 28, 2014 | |||||
Net sales | $ | 789,802 | 796,724 | ||||
Adjustment to segment net sales on a constant exchange rate | 68,957 | — | |||||
Less: 2015 Q2 impact of acquisition volume | (17,675 | ) | — | ||||
2015 Segment pro forma net sales on a constant exchange rate excluding acquisition volume | $ | 841,084 | 796,724 |
Reconciliation of 2015 Segment Net Sales to Segment Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q2 Acquisition Volume | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Flooring NA | July 4, 2015 | June 28, 2014 | |||||
Net sales | $ | 920,337 | 895,912 | ||||
Adjustment to segment net sales on a constant exchange rate | — | — | |||||
Less: 2015 Q2 impact of acquisition volume | (10,036 | ) | — | ||||
2015 Segment pro forma net sales on a constant exchange rate excluding acquisition volume | $ | 910,301 | 895,912 |
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Flooring ROW | July 4, 2015 | June 28, 2014 | |||||
Net sales | $ | 331,622 | 357,738 | ||||
Adjustment to segment net sales on a constant exchange rate | 71,955 | — | |||||
Segment net sales on a constant exchange rate | $ | 403,577 | 357,738 |
Reconciliation of 2015 Segment Net Sales to Segment Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q2 Acquisition Volume | |||||||
(Amounts in thousands) | |||||||
Three Months Ended | |||||||
Flooring ROW | July 4, 2015 | June 28, 2014 | |||||
Net sales | $ | 331,622 | 357,738 | ||||
Adjustment to segment net sales on a constant exchange rate | 71,955 | — | |||||
Less: 2015 Q2 impact of acquisition volume | (27,961 | ) | — | ||||
2015 Segment pro forma net sales on a constant exchange rate excluding acquisition volume | $ | 375,616 | 357,738 |
Reconciliation of Gross Profit to Adjusted Gross Profit | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
July 4, 2015 | June 28, 2014 | |||||
Gross Profit | $ | 615,129 | 574,812 | |||
Adjustments to gross profit: | ||||||
Restructuring, acquisition and integration-related and other costs | 12,341 | 6,755 | ||||
Acquisitions purchase accounting (inventory step-up) | 6,156 | — | ||||
Adjusted gross profit | $ | 633,626 | 581,567 | |||
Adjusted gross profit as a percent of net sales | 31.0 | % | 28.4 | % |
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
July 4, 2015 | June 28, 2014 | |||||
Selling, general and administrative expenses | $ | 359,313 | 352,564 | |||
Adjustment to selling, general and administrative expenses: | ||||||
Restructuring, acquisition and integration-related and other costs | (8,144 | ) | (4,414 | ) | ||
Adjusted selling, general and administrative expenses | $ | 351,169 | 348,150 | |||
Adjusted selling, general and administrative expenses as a percent of net sales | 17.2 | % | 17.0 | % |
Reconciliation of Operating Income to Adjusted Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
July 4, 2015 | June 28, 2014 | |||||
Operating income | $ | 255,816 | 222,248 | |||
Adjustments to operating income: | ||||||
Restructuring, acquisition and integration-related and other costs | 20,485 | 11,169 | ||||
Acquisitions purchase accounting (inventory step-up) | 6,156 | — | ||||
Adjusted operating income | $ | 282,457 | 233,417 | |||
Adjusted operating income as a percent of net sales | 13.8 | % | 11.4 | % |
Reconciliation of Adjusted Operating Income on a Constant Exchange Rate | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
July 4, 2015 | June 28, 2014 | |||||
Operating income | $ | 255,816 | 222,248 | |||
Adjustments to operating income: | ||||||
Restructuring, acquisition and integration-related and other costs | 20,485 | 11,169 | ||||
Acquisitions purchase accounting (inventory step-up) | 6,156 | — | ||||
Adjustment to operating income on a constant exchange rate | 24,955 | — | ||||
Adjusted operating income on a constant exchange rate | $ | 307,412 | 233,417 |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Global Ceramic | July 4, 2015 | June 28, 2014 | ||||
Operating income | $ | 121,189 | 106,407 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related and other costs | 77 | 196 | ||||
Acquisitions purchase accounting (inventory step-up) | 1,932 | — | ||||
Adjusted segment operating income | $ | 123,198 | 106,603 | |||
Adjusted operating income as a percent of net sales | 15.6 | % | 13.4 | % |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Global Ceramic | July 4, 2015 | June 28, 2014 | ||||
Operating income | $ | 121,189 | 106,407 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related and other costs | 77 | 196 | ||||
Acquisitions purchase accounting (inventory step-up) | 1,932 | — | ||||
Adjustment to operating income on a constant exchange rate | 11,919 | — | ||||
Adjusted segment operating income on a constant exchange rate | $ | 135,117 | 106,603 |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Flooring NA | July 4, 2015 | June 28, 2014 | ||||
Operating income | $ | 95,143 | 76,602 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related and other costs | 11,465 | 869 | ||||
Acquisitions purchase accounting (inventory step-up) | 1,167 | — | ||||
Adjusted segment operating income | $ | 107,775 | 77,471 | |||
Adjusted operating income as a percent of net sales | 11.7 | % | 8.6 | % |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Flooring ROW | July 4, 2015 | June 28, 2014 | ||||
Operating income | $ | 53,052 | 47,398 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related and other costs | 5,109 | 9,904 | ||||
Acquisitions purchase accounting (inventory step-up) | 3,057 | — | ||||
Adjusted segment operating income | $ | 61,218 | 57,302 | |||
Adjusted operating income as a percent of net sales | 18.5 | % | 16.0 | % |
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
Flooring ROW | July 4, 2015 | June 28, 2014 | ||||
Operating income | $ | 53,052 | 47,398 | |||
Adjustments to segment operating income: | ||||||
Restructuring, acquisition and integration-related and other costs | 5,109 | 9,904 | ||||
Acquisitions purchase accounting (inventory step-up) | 3,057 | — | ||||
Adjustment to operating income on a constant exchange rate | 12,541 | — | ||||
Adjusted segment operating income on a constant exchange rate | $ | 73,759 | 57,302 |
Reconciliation of Earnings from Continuing Operations incl Non Controlling Interest Before Income Taxes to Adjusted Earnings from Continuing Operations incl Non Controlling Interest Before Income Taxes | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
July 4, 2015 | June 28, 2014 | |||||
Earnings before income taxes | $ | 236,050 | 203,101 | |||
Noncontrolling interest | (282 | ) | (111 | ) | ||
Adjustments from continuing operations before income taxes: | ||||||
Restructuring, acquisition and integration-related & other costs | 20,485 | 11,169 | ||||
Acquisitions purchase accounting (inventory step-up) | 6,156 | — | ||||
Adjusted earnings before income taxes | $ | 262,409 | 214,159 |
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | ||||||
(Amounts in thousands) | ||||||
Three Months Ended | ||||||
July 4, 2015 | June 28, 2014 | |||||
Income tax expense | $ | 49,276 | 50,240 | |||
Income tax effect of adjusting items | 14,490 | 2,229 | ||||
Adjusted income tax expense | $ | 63,766 | 52,469 | |||
Adjusted income tax rate | 24.3 | % | 24.5 | % |