-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D6xaFmhZ1c15/lP6skDRoIns62rACGdcQ4tZUGl/wzSuSQ+h1BU9GeInq9n94vbs NbBsUIGmq1sfGhFJnRathw== 0000931763-00-001180.txt : 20000508 0000931763-00-001180.hdr.sgml : 20000508 ACCESSION NUMBER: 0000931763-00-001180 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000401 FILED AS OF DATE: 20000505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOHAWK INDUSTRIES INC CENTRAL INDEX KEY: 0000851968 STANDARD INDUSTRIAL CLASSIFICATION: CARPETS AND RUGS [2273] IRS NUMBER: 521604305 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-13697 FILM NUMBER: 620899 BUSINESS ADDRESS: STREET 1: 160 S INDUSTRIAL BLVD STREET 2: PO BOX 12069 CITY: CALHOUN STATE: GA ZIP: 30701 BUSINESS PHONE: 7066297721 MAIL ADDRESS: STREET 1: P O BOX 12069 CITY: CALHOUN STATE: GA ZIP: 30703 10-Q 1 FORM 10-Q ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [Mark One] [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 2000 OR [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 01-19826 MOHAWK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 52-1604305 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) P. O. Box 12069, 160 S. Industrial Blvd., Calhoun, Georgia 30701 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (706) 629-7721 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [_] The number of shares outstanding of the issuer's classes of capital stock as of May 4, 2000, the latest practicable date, is as follows: 54,146,786 shares of Common Stock, $.01 par value. - -------------------------------------------------------------------------------- MOHAWK INDUSTRIES, INC. INDEX Page No. ------- Part I. Financial Information: Item 1. Financial Statements Condensed Consolidated Balance Sheets - April 1, 2000 and December 31, 1999 3 Condensed Consolidated Statements of Earnings - Three months ended April 1, 2000 and April 3, 1999 5 Condensed Consolidated Statements of Cash Flows - Three months ended April 1, 2000 and April 3, 1999 6 Notes to Condensed Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 3. Quantitative and Qualitative Disclosures About Market Risks 12 Part II. Other Information 12 PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (In thousands) (Unaudited)
April 1, 2000 December 31, 1999 ------------- ----------------- Current assets: Receivables $ 371,329 337,824 Inventories 553,267 494,774 Prepaid expenses 14,985 25,184 Deferred income taxes 76,628 76,628 ---------- --------- Total current assets 1,016,209 934,410 ---------- --------- Property, plant and equipment, at cost 1,159,992 1,139,660 Less accumulated depreciation and amortization 533,716 514,846 ---------- --------- Net property, plant and equipment 626,276 624,814 ---------- --------- Other assets 119,215 123,649 ---------- --------- Total assets $1,761,700 1,682,873 ========== =========
See accompanying notes to condensed consolidated financial statements. 3 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY (In thousands) (Unaudited)
April 1, 2000 December 31, 1999 ------------- ----------------- Current liabilities: Current portion of long-term debt $ 33,920 33,961 Accounts payable and accrued expenses 420,400 340,392 ---------- --------- Total current liabilities 454,320 374,353 Deferred income taxes 53,783 53,783 Long-term debt, less current portion 572,074 562,104 Other long-term liabilities 192 87 ---------- --------- Total liabilities 1,080,369 990,327 ---------- --------- Stockholders' equity: Preferred stock, $.01 par value; 60 shares authorized; no shares issued - - Common stock, $.01 par value; 150,000 shares authorized; 60,675 and 60,657 shares issued in 2000 and 1999, respectively 607 607 Additional paid-in capital 180,630 179,993 Retained earnings 629,929 595,932 ---------- --------- 811,166 776,532 Less treasury stock at cost; 6,075 in shares in 2000 and 3,952 in 1999 129,835 83,986 ---------- --------- Total stockholders' equity 681,331 692,546 ---------- --------- Total liabilities and stockholders' equity $1,761,700 1,682,873 ========== =========
See accompanying notes to condensed consolidated financial statements. 4 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited)
Three Months Ended ----------------------------------------------- April 1, 2000 April 3, 1999 ------------- ------------- Net sales $765,083 707,167 Cost of sales 574,520 528,838 -------- ------- Gross profit 190,563 178,329 Selling, general and administrative expenses 124,857 122,665 -------- ------- Operating income 65,706 55,664 -------- ------- Other expense: Interest expense 8,740 7,854 Other expense, net 773 1,708 -------- ------- 9,513 9,562 -------- ------- Earnings before income taxes 56,193 46,102 Income taxes 22,196 18,210 -------- ------- Net earnings $ 33,997 27,892 ======== ======= Basic earnings per share $ 0.61 0.46 ======== ======= Weighted-average common shares outstanding 55,611 60,565 ======== ======= Diluted earnings per share $ 0.61 0.46 ======== ======= Weighted-average common and dilutive potential common shares outstanding 56,097 61,285 ======== =======
See accompanying notes to condensed consolidated financial statements. 5 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Three Months Ended ------------------------------------------------- April 1, 2000 April 3, 1999 -------------- ------------- Cash flows from operating activities: Net earnings $ 33,997 27,892 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 20,875 23,473 Provision for doubtful accounts 4,204 3,408 (Gain) loss on sale of property, plant and equipment (45) 44 Changes in operating assets and liabilities, net of effects of acquisitions: Receivables (37,709) (7,906) Inventories (58,493) (37,138) Accounts payable and accrued expenses 89,504 (14,700) Other assets and prepaid expenses 10,400 16,441 Other liabilities 105 (475) -------- ------- Net cash provided by operating activities 62,838 11,039 -------- ------- Cash flows from investing activities: Additions to property, plant and equipment, (18,059) (30,449) net Acquisitions - (162,463) -------- ------- Net cash used in investing activities (18,059) (192,912) -------- ------- Cash flows from financing activities: Net change in revolving line of credit 7,524 184,864 Redemption of acquisition indebtedness - (20,917) Proceeds (redemption) of IRBs and other, net of proceeds 2,405 (4,951) Change in outstanding checks in excess of cash (9,496) 13,737 Acquisition of treasury stock (45,849) - Common stock transactions 637 6,756 -------- ------- Net cash (used in) provided by financing activities (44,779) 179,489 -------- ------- Net change in cash - (2,384) Cash, beginning of period - 2,384 -------- ------- Cash, end of period $ - - ======== ======= Net cash paid during the period for: Interest $ 7,983 10,621 ======== ======= Income taxes $ 9,825 16,088 ======== =======
See accompanying notes to condensed consolidated financial statements. 6 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In thousands) (Unaudited) 1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the financial statements and notes thereto included in the Company's 1999 Annual Report filed on Form 10-K, as filed with the Securities and Exchange Commission, which includes consolidated financial statements for the fiscal year ended December 31, 1999. The Company's basic earnings per share are computed by dividing net earnings by the weighted-average common shares outstanding, and diluted earnings per share are computed by dividing net earnings by the weighted-average common and dilutive potential common shares outstanding. Dilutive common stock options are included in the diluted earnings per share calculation using the treasury stock method. 2. Receivables Receivables are as follows:
April 1, 2000 December 31, 1999 ------------- ----------------- Customers, trade $446,740 405,477 Other 1,545 2,826 -------- ------- 448,285 408,303 Less allowance for discounts, returns, claims and doubtful accounts 76,956 70,479 -------- ------- Net receivables $371,329 337,824 ======== =======
3. Inventories The components of inventories are as follows:
April 1, 2000 December 31, 1999 ------------- ----------------- Finished goods $280,307 254,179 Work in process 74,309 65,456 Raw materials 198,651 175,139 -------- ------- Total inventories $553,267 494,774 ======== =======
4. Other assets Other assets are as follows:
April 1, 2000 December 31, 1999 ------------- ----------------- Goodwill, net of accumulated amortization of $13,961 and $13,171, respectively $112,770 113,560 Other assets 6,445 10,089 -------- ------- Total other assets $119,215 123,649 ======== =======
7 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In thousands) (Unaudited) 5. Accounts payable and accrued expenses Accounts payable and accrued expenses are as follows:
April 1, 2000 December 31, 1999 ------------- ----------------- Outstanding checks in excess of cash $ 32,877 42,373 Accounts payable, trade 203,076 159,812 Accrued expenses 113,204 83,253 Accrued compensation 71,243 54,954 -------- ------- Total accounts payable and accrued expenses $420,400 340,392 ======== =======
6. Property, Plant and Equipment Effective January 1, 2000, the Company changed the estimated useful lives of buildings (25 years to 35 years), tufting equipment (7 years to 10 years), extrusion equipment (7 years to 15 years) and furniture and fixtures (5 years to 7 years). Management believes the change more accurately reflects the actual lives of these assets and is more consistent with industry practice. The prospective change is estimated to reduce annual depreciation expense by approximately $20,000 in 2000. 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Effective January 1, 2000, the Company changed the estimated useful lives of certain property, plant and equipment. Management believes this change more accurately reflects the actual lives of these assets and is more consistent with industry practice. The prospective change is estimated to reduce annual depreciation expense by approximately $20 million in 2000. Results of Operations Quarter Ended April 1, 2000 as Compared with Quarter Ended April 3, 1999 - ------------------------------------------------------------------------ Net sales for the quarter ended April 1, 2000 were $765.1 million, reflecting an increase of $57.9 million, or approximately 8%, over the $707.2 million reported in the quarter ended April 3, 1999. All major product categories achieved sales increases for the first quarter of 2000 as compared to 1999. The Company believes that the first quarter of 2000 net sales increase was attributable to internal growth and the impact of the acquisition of certain assets of Image Industries, Inc. on January 29, 1999. Gross profit for the first quarter of the current year was $190.6 million (24.9% of net sales) and represented an increase over the gross profit of $178.3 million (25.2% of net sales) for the prior year's quarter. Gross profit as a percentage of sales was unfavorably impacted by raw material price increases, resulting from rising oil prices, which were partially offset by productivity improvements, selling price increases and an increase in the estimated useful lives of property, plant and equipment which was effective January 1, 2000. Selling, general and administrative expenses for the current quarter were $124.9 million (16.3% of net sales) compared to $122.7 million (17.3% of net sales) for the prior year's first quarter. The decrease was primarily due to better cost control and better leveraging of these expenses against higher sales volume in the current quarter. Interest expense for the current quarter was $8.7 million compared to $7.9 million in the first quarter of 1999. The primary factor contributing to the increase was an increase in debt levels, which was attributable to the stock repurchase program, capital expenditures, and an increase in the weighted average borrowing rate compared to the first quarter of 1999. Income tax expense was $22.2 million, or 39.5% of earnings before income taxes in the current quarter compared to $18.2 million, or 39.5% of earnings before income taxes for the prior year's first quarter. Liquidity and Capital Resources The Company's primary capital requirements are for working capital, capital expenditures and acquisitions. The Company's capital needs are met through a combination of internally generated funds, bank credit lines and credit terms from suppliers. The level of accounts receivable increased from $337.8 million at the beginning of 2000 to $371.3 million at April 1, 2000. The $33.5 million increase was attributable to strong sales growth. Inventories increased from $494.8 million at the beginning of 2000 to $553.3 million at April 1, 2000, due primarily to the need for a higher level of inventory to meet the increased sales volume and seasonal demand. Capital expenditures totaled $18.1 million for the first three months of 2000, and were incurred primarily to modernize and expand manufacturing facilities and equipment. The Company's capital projects are primarily focused on increasing capacity, improving productivity and reducing costs. Capital spending during 2000 is expected to range from $87 million to $102 million, the majority of which will be used to purchase equipment to increase production capacity and productivity. During 1999, the Company's Board of Directors authorized the repurchase of up to 10 million shares of its outstanding common shares. For the quarter ended April 1, 2000, a total of approximately 2.1 million shares of the Company's common stock has been purchased at an aggregate cost of approximately $45.8 million. Since the inception of the program, a total of approximately 6.1 million shares has been purchased at an aggregate cost of 9 approximately $129.8 million. All of this repurchase has been financed through the Company's operations and revolving line of credit. Impact of Inflation Inflation affects the Company's manufacturing costs and operating expenses. The carpet industry has experienced moderate inflation in the prices of raw materials and outside processing for the last three years. The Company has generally passed along nylon fiber price increases to its customers. Seasonality The carpet business is seasonal, with the Company's second, third and fourth quarters typically producing higher net sales and operating income. By comparison, results for the first quarter tend to be the weakest. This seasonality is primarily attributable to consumer residential spending patterns and higher installation levels during the spring and summer months. Certain factors affecting the Company's performance In addition to the other information provided in this Form 10-Q, the following risk factors should be considered when evaluating an investment in shares of Mohawk common stock. A failure by Mohawk to complete acquisitions and successfully integrate acquired - -------------------------------------------------------------------------------- operations could materially and adversely affect its business. - -------------------------------------------------------------- Management intends to pursue acquisitions of complementary businesses as part of its business and growth strategies. Although management regularly evaluates acquisition opportunities, it cannot offer assurance that it will be able to: . successfully identify suitable acquisition candidates; . obtain sufficient financing on acceptable terms to fund acquisitions; . complete acquisitions; . integrate acquired operations into Mohawk's existing operations; or . profitably manage acquired businesses. Acquired operations may not achieve levels of sales, operating income or productivity comparable to those of Mohawk's existing operations, or otherwise perform as expected. Acquisitions may also involve a number of special risks, some or all of which could have a material adverse effect on Mohawk's business, results of operations and financial condition, including, among others: . possible adverse effects on Mohawk's operating results; . diversion of Mohawk management's attention and its resources; and . dependence on retaining and training acquired key personnel. The carpet industry is cyclical and a downturn in the overall economy could - --------------------------------------------------------------------------- lessen the demand for Mohawk's products and impair growth and profitability. - ---------------------------------------------------------------------------- The carpet industry is cyclical and is influenced by a number of general economic factors. Prevailing interest rates, consumer confidence, spending for durable goods, disposable income, turnover in housing and the condition of the residential and commercial construction industries (including the number of new housing starts and the level of new commercial construction) all have an impact on Mohawk's growth and profitability. In addition, sales of Mohawk's principal products are related to construction and renovation of commercial and residential buildings. Any adverse cycle could lessen the overall demand for Mohawk's products and could, in turn, impair Mohawk's growth and profitability. The carpet business is seasonal and this seasonality causes Mohawk's results of - ------------------------------------------------------------------------------- operations to fluctuate on a quarterly basis. - --------------------------------------------- Mohawk is a calendar year end company and its results of operations for the first quarter tend to be the weakest. Mohawk's second, third and fourth quarters typically produce higher net sales and operating income. These results are primarily due to consumer residential spending patterns and more carpet being installed in the spring and summer months. 10 Mohawk's business is competitive and a failure by Mohawk to compete effectively - ------------------------------------------------------------------------------- could have a material and adverse impact on Mohawk's results of operations. - --------------------------------------------------------------------------- Mohawk operates in a highly competitive industry. Mohawk and other manufacturers in the carpet industry compete on the basis of price, style, quality and service. Some of Mohawk's competitors may have greater financial resources at their disposal. Mohawk has one competitor whose size could allow it certain manufacturing cost advantages compared to other industry participants. If competitors substantially increase production and marketing of competing products, then Mohawk might be required to lower its prices or spend more on product development, marketing and sales, which could adversely affect Mohawk's profitability. An increase in the cost of raw materials could negatively impact Mohawk's - ------------------------------------------------------------------------- profitability. - -------------- The cost of raw materials has a significant impact on the profitability of Mohawk. In particular, Mohawk's business requires it to purchase large volumes of nylon fiber and polypropylene resin, which is used to manufacture fiber. The cost of these raw materials is related to oil prices. Mohawk does not have any long-term supply contracts for any of these products. While Mohawk generally attempts to match cost increases with price increases, large increases in the cost of such raw materials could adversely affect its business, results of operations and financial condition if it is unable to pass these costs through to its customers. Mohawk may be responsible for environmental cleanup, which could negatively - --------------------------------------------------------------------------- impact profitability. - --------------------- Various federal, state and local environmental laws govern the use of Mohawk's facilities. Such laws govern: . discharges to air and water; . handling and disposal of solid and hazardous substances and waste; and . remediation of contamination from releases of hazardous substances in Mohawk's facilities and off-site disposal locations. Mohawk's operations are also governed by the laws relating to workplace safety and worker health, which, among other things, establish asbestos and noise standards and regulate the use of hazardous chemicals in the workplace. Mohawk has taken and will continue to take steps to comply with these laws. Based upon current available information, Mohawk believes that complying with environmental and safety and health requirements will not require material capital expenditures in the foreseeable future. However, Mohawk cannot provide assurance that complying with these environmental or health and safety laws and requirements will not adversely affect its business, results of operations and financial condition. Future laws, ordinances or regulations could give rise to additional compliance or remediation costs, which could have a material adverse effect on its business, results of operations and financial condition. Forward-Looking Information Certain of the matters discussed in the preceding pages, particularly regarding anticipating future financial performance, business prospects, growth and operating strategies, proposed acquisitions, new products and similar matters, and those preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "estimates" or similar expressions constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward- looking statements involve a number of risks and uncertainties. The following important factors, in addition to those discussed elsewhere in this document, affect the future results of Mohawk and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic conditions generally in the carpet, rug and floorcovering markets served by Mohawk; competition from other carpet, rug and floorcovering manufacturers; oil price increases; raw material prices; timing and level of capital expenditures; the successful integration of acquisitions, including the challenges inherent in diverting Mohawk management's attention and resources from other strategic matters and from operational matters for an extended period of time; the successful introduction of new products; the successful rationalization of existing operations; and other risks identified from time to time in the Company's SEC reports and public announcements. 11 Item 3. Quantitative and Qualitative Disclosures About Market Risk The Company's market risk-sensitive instruments do not subject the Company to material market risk exposures. PART II. OTHER INFORMATION Item 1. Legal Proceedings The Company is involved in routine litigation from time to time in the regular course of its business. Except as noted below, there are no material legal proceedings pending or known to be contemplated to which the Company is a party or to which any of its property is subject. In December 1995, the Company and four other carpet manufacturers were added as defendants in a purported class action lawsuit, In re Carpet Antitrust Litigation, pending in the United States District Court for the Northern District of Georgia, Rome Division. The amended complaint alleges price-fixing regarding polypropylene products in violation of Section One of the Sherman Act. In September 1997, the Court determined that the plaintiffs met their burden of establishing the requirements for class certification and granted the plaintiffs' motion to certify the class. The Company is a party to two consolidated lawsuits captioned Gaehwiler v. Sunrise Carpet Industries, Inc. et al. and Patco Enterprises, Inc. v. Sunrise Carpet Industries, Inc. et al., both of which were filed in the Superior Court of the State of California, City and County of San Francisco, in 1996. Both complaints were brought on behalf of a purported class of indirect purchasers of carpet in the State of California and seek damages for alleged violations of California antitrust and unfair competition laws. The complaints filed do not specify any amount of damages but do request for any unlawful conduct to be enjoined and treble damages plus reimbursement for fees and costs. In October 1998, two plaintiffs, on behalf of an alleged class of purchasers of nylon carpet products, filed a complaint in the United States District Court for the Northern District of Georgia against the Company and two of its subsidiaries, as well as a competitor and one of its subsidiaries. The complaint alleges that the Company acted in concert with other carpet manufacturers to restrain competition in the sale of certain nylon carpet products. The Company has filed an answer, denied the allegations in the complaint and set forth its defenses. In February 1999, a similar complaint was filed in the Superior Court of the State of California, City and County of San Francisco, on behalf of a purported class based on indirect purchases of nylon carpet in the State of California and alleges violations of California antitrust and unfair competition laws. The complaints described above do not specify any specific amount of damages but do request injunctive relief and treble damages plus reimbursement for fees and costs. The Company believes it has meritorious defenses and intends to vigorously defend against these actions. Item 2. Changes in Securities None. Item 3. Defaults Upon Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders None. Item 5. Other Information None. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits No. Description - --- ----------- 11 Statement re: Computation of Per Share Earnings 12 27 Financial Data Schedule (b) Reports on Form 8-K Current Report on Form 8-K: Fourth quarter earnings press release, dated February 10, 2000 13 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MOHAWK INDUSTRIES, INC. Dated: May 5, 2000 By: /s/ David L. Kolb ----------------- DAVID L. KOLB, Chairman of the Board and Chief Executive Officer (principal executive officer) Dated: May 5, 2000 By: /s/ John D. Swift ----------------- JOHN D. SWIFT, Chief Financial Officer, Vice President-Finance and Assistant Secretary (principal financial and accounting officer) 14 EXHIBIT INDEX No. Description - --- ----------- (a) Exhibits 11 Statement re: Computation of Per Share Earnings 27 Financial Data Schedule 15 EX-11 2 STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS EXHIBIT 11 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS (In thousands, except per share data) (Unaudited) Note: Earnings per share are presented in accordance with Regulation S-K Item 601 (b) and FAS No. 128.
Three Months Ended --------------------------------------------- April 1, 2000 April 3, 1999 ------------- ------------- Net earnings $33,997 27,892 ======= ====== Weighted-average common and dilutive potential common shares outstanding: Weighted-average common shares outstanding 55,611 60,565 Add weighted-average dilutive potential common shares - options to purchase common shares, 486 720 net ------- ------ Weighted-average common and dilutive potential common shares outstanding 56,097 61,285 Basic earnings per share $ 0.61 0.46 ======= ====== Diluted earnings per share $ 0.61 0.46 ======= ======
EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MOHAWK INDUSTRIES, INC. QUARTERLY REPORT TO STOCKHOLDERS FOR QUARTER ENDED APRIL 1, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-2000 JAN-01-2000 APR-01-2000 0 0 448,285 76,956 553,267 1,016,209 1,159,992 533,716 1,761,700 454,320 572,074 0 0 607 810,559 1,761,700 765,083 765,083 574,520 574,520 0 4,204 8,740 56,193 22,196 33,997 0 0 0 33,997 .61 .61
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