-----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, BA7u43NtkyyNcLa3F3iQZFAOkOWawuxqCKy1sNl0fj6JfTWqUBt3jxBlWL8Nst06 Ifn1ppEILtJ3E0hZRiOQCw== 0000931763-01-000183.txt : 20010214 0000931763-01-000183.hdr.sgml : 20010214 ACCESSION NUMBER: 0000931763-01-000183 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010208 ITEM INFORMATION: ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010213 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: 8-K SEC ACT: SEC FILE NUMBER: 001-13697 FILM NUMBER: 1535528 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 8-K 1 0001.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 8, 2001 MOHAWK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 01-19826 52-1604305 -------- -------- ---------- (State or other (Commission File (IRS Employer Jurisdiction of Number) Identification No.) Incorporation) 160 South Industrial Blvd., Calhoun, Georgia 30701 --------------------------------------------------------------- (Address, including zip code, of principal executive offices) (706) 629-7721 --------------------------------------------------------------- (Registrant's telephone number, including area code) Item 5. Other Events. ------------ On February 8, 2001, Mohawk Industries, Inc. ("Mohawk") issued a press release announcing earnings for the fourth quarter and year ended December 31, 2000. A copy of such press release is included as an exhibit to this report and, other than the sixth paragraph thereof, incorporated herein by reference under this Item 5. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. ------------------------------------------------------------------ C. Exhibits 99.1 Press Release dated February 8, 2001 Item 9. Regulation FD Disclosure. ------------------------ On February 8, 2001, Mohawk Industries, Inc. ("Mohawk") issued a press release announcing earnings for the fourth quarter and year ended December 31, 2000. A copy of such press release is included as an exhibit to this report and sixth paragraph thereof is incorporated herein by reference under this Item 9. SIGNATURE 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 hereunto duly authorized. Mohawk Industries, Inc. Date: February 8, 2001 By: /s/ Frank H. Boykin ------------------- Frank H. Boykin VP & Corporate Controller INDEX TO EXHIBITS ----------------- Exhibit - ------- 99.1 Press Release dated February 8, 2001 EX-99.1 2 0002.txt PRESS RELEASE DATED FEBRUARY 8, 2001 EXHIBIT 99.1 For Release: Immediately Contact: John D. Swift, Chief Financial Officer MOHAWK INDUSTRIES, INC. ANNOUNCES RECORD EPS RESULTS FOR THE 2000 FOURTH QUARTER AND YEAR Calhoun, Georgia, February 8, 2001 - Mohawk Industries, Inc. (NYSE:MHK) today announced that diluted earnings per share (EPS) were a fourth quarter record of $0.74 per share (6% above last year) or $39,262,000 in net earnings. This compares to EPS of $0.70 per share or $40,175,000 in net earnings for the fourth quarter of 1999. This improvement in EPS was the result of higher sales and gross profits and the Company's stock repurchase program. Net sales for the quarter increased 3% to $799,441,000 compared to $775,547,000 for the fourth quarter of 1999. The sales increase was primarily attributable to internal growth. The gross profit improvement was the result of favorable product mix and the change in the depreciable lives of fixed assets as of the beginning of the year 2000 partially offset by higher raw material and fuel costs as compared to 1999. EPS for the year 2000 was the highest in the Company's history with EPS of $3.08 per share (18% above last year) or $166,852,000 in net earnings before the pre- tax charge of $7,000,000 related to an anti-trust litigation settlement which was recorded in the third quarter of 2000. After the pre-tax charge, EPS was $3.00 per share or $162,599,000 in net earnings. This compares to EPS of $2.61 or $157,239,000 in net earnings for the year 1999. This improvement in EPS was attributable to increased sales resulting primarily from internal growth and improved gross margins which resulted from product mix and the change in depreciable lives. Net sales for the year 2000 were $3,255,846,000 representing a 6% increase from the year 1999 sales of $3,083,264,000. This increase was primarily due to internal growth. In commenting on the fourth quarter performance, Jeffrey S. Lorberbaum, President and Chief Executive Officer stated, "We have again reported record performance in both sales and earnings per share this quarter. We are happy with our results, especially in light of the slowing economy and rising costs. Our success this quarter is the result of continued focus on cost reduction and internal growth through strong marketing and merchandising. We are continuing the rollout of our new vinyl, laminate, ceramic tile and wood products to all of our regions throughout the U.S. We believe our stock continues to trade at an attractive valuation and is a strong long-term investment. We have supported this view by repurchasing 902,900 shares of our stock during the fourth quarter and 8,764,999 shares since the inception of the repurchase program in the fourth quarter of 1999. We will continue to repurchase shares under this program, which authorizes the company to repurchase up to 15,000,000 shares under the conditions established by the Board of Directors. We were very pleased to be selected in January of this year for the Forbes Platinum 400 List. This list included industry leaders in long- term and short-term return on capital and growth in both sales and earnings. Although the results this quarter were ahead of last year, and our market share has increased, our sales growth has softened from previous quarters and we have continued to experience higher costs. We will continue to focus heavily on cost control and hard surface flooring growth." As the Company looks forward at this time, it sees the impact of a slowing economy. In May 2000, industry unit shipments turned negative when compared to the prior year and have remained negative for each subsequent month through December. Raw material prices rose over the last twelve months but appear to have peaked while natural gas and utility costs continue to increase. On the positive side, the Company announced a price increase for selected residential carpet for March 2001. The Company's hard surface products expansion is progressing very favorably with it's customers but significant sampling and personnel costs will be incurred during the first half of 2001 without the offsetting growth in sales and margins. The Company is encouraged by it's customers' acceptance of it's product programs and brand recognition efforts. In addition, the Company is pleased by the Federal Reserve's recent move to lower interest rates and congressional consideration of potential tax reductions. These actions are expected to have a long-term favorable impact on the economy. After considering all of these factors, the Company believes the first quarter 2001 EPS will be below last year's first quarter by 15% to 20%. The Company also anticipates the second quarter 2001 EPS will be 5% to 10% below last year. It is too early to anticipate the change in the economy for the second half 2001, but economic forecasters are currently anticipating improvement. The industry historically leads these economic cycles. Certain of the statements in the immediately preceding paragraphs, particularly 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. Those statements are based on assumptions regarding the Company's ability to maintain its sales growth and gross margins and to control costs and on assumptions regarding the performance of the economy. These or other assumptions could prove inaccurate and therefore, there can be no assurance that the "forward-looking statements" will prove to be accurate. Forward-looking statements involve a number of risks and uncertainties. The following important factors 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; raw material prices; timing and level of capital expenditures; the successful integration of acquisitions including the challenges inherent in diverting Mohawk's management 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. Mohawk is a leading producer of woven and tufted broadloom carpet and rugs for residential and commercial applications. The Company designs, manufactures and markets carpet in a broad range of colors, textures and patterns and is widely recognized through its premier brand names, some of which include "Mohawk," "Aladdin," "Bigelow," "Custom Weave," "Durkan," "Galaxy," "Harbinger," "Helios," "Horizon," "Image," "Karastan," "Mohawk Commercial," "World," and "Wunda Weve." Mohawk offers a broad line of area and washable rugs branded by Karastan, Aladdin, Newmark & James and American Rug Craftsmen and decorative throw blankets, placemats, pillows and chair pads branded by American Weavers. Mohawk also offers a complete laminate product line and distributes carpet padding, wood and vinyl products and ceramic tile. The Company markets its products primarily through retailers and dealers. ##### There will be a conference call Friday, February 9, 2001 at 11:00 AM Eastern ---------------------------------------------------------------------------- Time ---- The telephone number to call is 1-800-603-9255. ----------------------------------------------- A replay of the call will be available two hours after the completion of the ---------------------------------------------------------------------------- conference from 2/9/2001 through 2/14/2001. To access the call, please call 800- - ------------------------------------------------------------------------------- 642-1687 or for local participants, call 706-645-9291 and enter Conference I.D. - ------------------------------------------------------------------------------- # 572582. --------- MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
Three Months Ended Twelve Months Ended ------------------------------- -------------------------------- December 31, December 31, December 31, December 31, 2000 1999 2000 1999 ------------- ------------ ------------ ------------ Consolidated Statement of Earnings Data (Amounts in thousands, except per share data) Net sales $799,441 775,547 3,255,846 3,083,264 Cost of sales 597,257 581,174 2,432,997 2,306,405 - --------------------------------------------------------------------------------------------------------------------------- Gross profit 202,184 194,373 822,849 776,859 Selling, general and administrative expenses 126,755 120,142 505,734 482,062 Class action legal settlement - - 7,000 - - --------------------------------------------------------------------------------------------------------------------------- Operating income 75,429 74,231 310,115 294,797 Interest expense 9,457 8,690 38,044 32,632 Other expense, net 1,608 (864) 4,442 2,266 - --------------------------------------------------------------------------------------------------------------------------- Earnings before income taxes 64,364 66,405 267,629 259,899 Income taxes 25,102 26,230 105,030 102,660 - --------------------------------------------------------------------------------------------------------------------------- Net earnings $ 39,262 40,175 162,599 157,239 - --------------------------------------------------------------------------------------------------------------------------- Basic earnings per share $ 0.75 0.70 3.02 2.63 - --------------------------------------------------------------------------------------------------------------------------- Weighted-average common shares outstanding 52,535 57,163 53,769 59,730 - --------------------------------------------------------------------------------------------------------------------------- Diluted earnings per share $ 0.74 0.70 3.00 2.61 - --------------------------------------------------------------------------------------------------------------------------- Weighted-average common and dilutive potential common shares outstanding 52,953 57,730 54,255 60,349 - --------------------------------------------------------------------------------------------------------------------------- Other Financial Information (Amounts in thousands) Depreciation & Amortization $ 20,935 26,100 82,346 105,297 - --------------------------------------------------------------------------------------------------------------------------- Capital Expenditures $ 19,937 30,405 73,475 145,621 - --------------------------------------------------------------------------------------------------------------------------- Consolidated Balance Sheet Data (Amounts in thousands) December 31, December 31, 2000 1999 ------------ ------------ ASSETS Current assets: Receivables $ 356,072 337,824 Inventories 574,595 494,774 Prepaid expenses 26,973 25,184 Deferred income taxes 66,474 76,628 - --------------------------------------------------------------------------------------------------------------------------- Total current assets 1,024,114 934,410 Property, plant and equipment, net 650,053 624,814 Other assets 118,474 123,649 - --------------------------------------------------------------------------------------------------------------------------- $1,792,641 1,682,873 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 224,391 33,961 Accounts payable and accrued expenses 372,531 340,392 - --------------------------------------------------------------------------------------------------------------------------- Total current liabilities 596,922 374,353 Long-term debt, less current portion 365,437 562,104 Deferred income taxes and other long-term liabilities 75,922 53,870 - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,038,281 990,327 - --------------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 754,360 692,546 - --------------------------------------------------------------------------------------------------------------------------- $1,792,641 1,682,873 - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Dates for Future Press Releases and Conference Calls: Press Release Conference Call 4th Qtr. 2001 February 8 February 9 11:00 a.m. (800-603-9255) 1st Qtr. 2001 April 16 April 17 11:00 a.m. " 2nd Qtr. 2001 July 16 July 17 11:00 a.m. " 3rd Qtr. 2001 October 15 October 16 11:00 a.m. " Conference call replay is (800) 642-1687 and is available for five days after the conference call. Enter conference ID number 572582. - -------------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----