-----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, UFDdNF3elXcUzxBAJgYgVVCi1vJKsc6/Zj+7lZlhe0xYA0k4cOz72Q77OPTbiR3o z5PsUQtJljINo0SzjQNfuA== 0000931763-97-001290.txt : 19970808 0000931763-97-001290.hdr.sgml : 19970808 ACCESSION NUMBER: 0000931763-97-001290 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970628 FILED AS OF DATE: 19970807 SROS: NASD 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: 1934 Act SEC FILE NUMBER: 000-19826 FILM NUMBER: 97653213 BUSINESS ADDRESS: STREET 1: 160 S INDUSTRIAL BLVD 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 FOR 2ND QTR ENDED JUNE 28, 1997 UNITED STATES 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 June 28, 1997 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 INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) Post Office Box 12069, 160 South 30703 Industrial Boulevard, Calhoun, Georgia (ZIP CODE) (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) 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 July 30, 1997, the latest practicable date, is as follows: 34,580,142 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 - June 28, 1997 and December 31, 1996 3 Condensed Consolidated Statements of Earnings - Three months ended June 28, 1997 and June 29, 1996 5 Six months ended June 28, 1997 and June 29, 1996 6 Condensed Consolidated Statements of Cash Flows - Six months ended June 28, 1997 and June 29, 1996 7 Notes to Condensed Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Item 3. Quantitative and Qualitative Disclosure About Market Risks 11 Part II. Other Information 12
2 PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (In thousands) (Unaudited)
June 28, 1997 December 31, 1996 ------------- ----------------- Current assets: Receivables $234,252 215,111 Inventories 326,004 302,723 Prepaid expenses 15,370 20,221 Deferred income taxes 18,186 18,186 -------- -------- Total current assets 593,812 556,241 -------- -------- Property, plant and equipment, at cost 539,652 529,961 Less accumulated depreciation and amortization 233,058 205,263 -------- -------- Net property, plant and equipment 306,594 324,698 -------- -------- Other assets 75,588 74,836 -------- -------- Total assets $975,994 955,775 ======== ========
See accompanying notes to condensed consolidated financial statements. 3 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS, CONTINUED LIABILITIES AND STOCKHOLDERS' EQUITY (In thousands, except per share data) (Unaudited)
June 28, 1997 December 31, 1996 ------------- ----------------- Current liabilities: Current portion of long-term debt and note payable 20,500 41,832 Accounts payable and accrued expenses 225,387 202,741 -------- -------- Total current liabilities 245,887 244,573 Deferred income taxes 24,136 27,530 Long-term debt 339,532 345,748 Other long-term liabilities 4,553 4,725 -------- -------- Total liabilities 614,108 622,576 -------- -------- Stockholders' equity: Preferred stock, $.01 par value; 60,000 shares authorized; no shares issued - - Common stock, $.01 par value; 75,000 shares authorized; 34,555 and 34,471 shares issued in 1997 and 1996, respectively 346 345 Additional paid-in capital 132,392 131,560 Retained earnings 229,148 201,294 -------- -------- Total stockholders' equity 361,886 333,199 -------- -------- Total liabilities and stockholders' equity $975,994 955,775 ======== ========
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 ------------------------------ June 28, 1997 June 29, 1996 ------------- ------------- Net sales $479,164 474,552 Cost of sales 364,330 358,617 -------- -------- Gross profit 114,834 115,935 Selling, general and administrative expenses 74,487 79,034 -------- -------- Operating income 40,347 36,901 -------- -------- Other expense: Interest expense 7,504 8,691 Other expense, net 939 1,114 -------- -------- 8,443 9,805 -------- -------- Earnings before income taxes 31,904 27,096 Income taxes 12,597 10,701 -------- -------- Net earnings $ 19,307 16,395 ======== ======== Earnings per common and common equivalent share $ 0.56 0.48 ======== ======== Weighted average common and common equivalent shares outstanding 34,785 34,514 ======== ========
See accompanying notes to condensed consolidated financial statements. 5 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited)
Six Months Ended ------------------------------ June 28, 1997 June 29, 1996 ------------- ------------- Net sales $891,993 858,219 Cost of sales 683,250 656,111 -------- ------- Gross profit 208,743 202,108 Selling, general and administrative expenses 146,448 147,162 -------- ------- Operating income 62,295 54,946 -------- ------- Other expense: Interest expense 15,027 17,182 Other expense, net 1,239 1,845 -------- ------- 16,266 19,027 -------- ------- Earnings before income taxes 46,029 35,919 Income taxes 18,175 14,186 -------- ------- Net earnings $ 27,854 21,733 ======== ======= Earnings per common and common equivalent share $ 0.80 0.63 ======== ======= Weighted average common and common equivalent shares outstanding $ 34,830 34,306 ======== =======
See accompanying notes to condensed consolidated financial statements. 6 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Six Months Ended -------------------------------- June 28, 1997 June 29, 1996 ------------- ------------- Cash flows from operating activities: Net earnings $ 27,854 21,733 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 29,993 27,061 Provision for doubtful accounts 3,659 6,315 Changes in operating assets and liabilities: Receivables (22,800) (62,889) Inventories (23,281) (27,011) Accounts payable and accrued expenses 31,633 48,814 Other assets and prepaid expenses 4,202 (343) Other liabilities (2,380) (123) -------- -------- Net cash provided by operating activities 48,880 13,557 -------- -------- Cash flows used in investing activities: Additions to property, plant and equipment, net (12,609) (16,350) -------- -------- Cash flows from financing activities: Net change in revolving line of credit (6,292) 17,999 Payment of note payable (21,200) - Payments on term loans (3,750) (7,900) Proceeds from IRBs and other, net of payments 3,694 - Change in outstanding checks in excess of cash (9,556) (14,626) Common stock transactions 833 7,320 -------- -------- Net cash provided by (used in) financing activities (36,271) 2,793 -------- -------- Net change in cash - - Cash, beginning of year - - -------- -------- Cash, end of period $ - - ======== ======== Net cash paid (received) during the period for: Interest $ 14,695 15,392 ======== ======== Income taxes $ 20,124 6,616 ======== ========
See accompanying notes to condensed consolidated financial statements. 7 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 the 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 1996 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, 1996. The Company's earnings per share are computed by dividing net earnings by the weighted average common and common equivalent shares outstanding. Dilutive common stock options are included in the earnings per share calculation using the treasury stock method. During the six months ended June 29, 1996, the Company recorded a direct increase in stockholders' equity of $6,809 as a result of the tax benefit from the exercise of stock options that were granted primarily in 1988 and 1989 in connection with the Company's 1988 leveraged buyout. Certain prior year financial statement balances have been reclassified to conform with the current year's presentation.
2. Receivables Receivables are as follows: June 28, 1997 December 31, 1996 ------------- ----------------- Customers, trade $268,017 247,485 Other 2,021 2,470 -------- -------- 270,038 249,955 Less allowance for discounts, returns, claims and doubtful accounts 35,786 34,844 -------- -------- Net receivables $234,252 215,111 ======== ======== 3. Inventories The components of inventories are as follows: June 28, 1997 December 31, 1996 ------------- ----------------- Finished goods $168,358 151,068 Work in process 49,502 45,428 Raw materials 108,144 106,227 -------- -------- Total inventories $326,004 302,723 ======== ========
8 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED (In thousands) (Unaudited)
4. Other assets Other assets are as follows: June 28, 1997 December 31, 1996 ------------- ----------------- Goodwill, net of accumulated amortization of $6,333 and $5,589, respectively $ 52,935 53,679 Other assets 22,653 21,157 -------- -------- Total other assets $ 75,588 74,836 ======== ======== 5. Accounts payable and accrued expenses Accounts payable and accrued expenses are as follows: June 28, 1997 December 31, 1996 ------------- ----------------- Outstanding checks in excess of cash $ 22,244 31,800 Accounts payable, trade 114,356 86,369 Accrued expenses 69,646 64,942 Accrued compensation 19,141 19,630 -------- -------- Total accounts payable and accrued expenses $225,387 202,741 ======== ========
6. Credit agreement On April 15, 1997, the Company amended and restated its credit agreement to provide for an interest rate of either (i) LIBOR plus 0.2% to 0.5%, depending upon the Company's performance measured against certain financial ratios, or (ii) the prime rate less 1.0%. Additionally, the termination date of the credit agreement was extended to May 15, 2002. 7. Acquisition On July 23, 1997, the Company acquired certain assets of Diamond Rug & Carpet Mills, Inc. and other assets owned by Diamond's principal shareholders for approximately $36,000 which consisted of $19,600 in cash, at closing, $7,000 in cash over the six-month period following closing and a $9,350 note payable in seven annual installments of principal plus interest at 6%. The acquisition was accomplished through a plan of reorganization under Chapter 11 of the United States Bankruptcy Code. 8. Effect of accounting pronouncement not yet adopted The Financial Accounting Standards Board issued FAS No. 128, Earnings per Share, which will supersede APB No. 15, Earnings per Share. This statement, which the Company is required to adopt in the fourth quarter of 1997, requires companies to replace the presentation of primary EPS and fully diluted EPS with basic EPS and diluted EPS. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the company. The Company does not believe the implementation of FAS No.128 will have a material effect on the Company's consolidated financial statements. 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Quarter Ended June 28, 1997 As Compared With Quarter Ended June 29, 1996 - ------------------------------------------------------------------------- Net sales for the quarter ended June 28, 1997 were $479.2 million, which represented an increase of 1% from the $474.6 million reported for the second quarter of 1996. The Company believes the second quarter 1997 net sales comparison to the second quarter of 1996 was unfavorably impacted by an April 1997 price increase that prompted some customers to accelerate their purchases from the second quarter to the first quarter of 1997. In addition, a price increase in July 1996 prompted some acceleration of sales from the third quarter to the second quarter of 1996. Gross profit for the second quarter of the current year was $114.8 million (24.0% of net sales). In the second quarter of 1996, gross profit was $115.9 million (24.4% of net sales). Selling, general and administrative expenses for the current quarter were $74.5 million (15.5% of net sales) compared to $79.0 million (16.7% of net sales) for the prior year's second period. The percentage decrease was primarily due to lower sample and bad debt expense in the second quarter of 1997. Interest expense for the current period was $7.5 million compared to $8.7 million in the second quarter of 1996. The primary factor for the decrease was a reduction in debt levels in the second quarter of 1997 as compared to the second quarter of 1996. In the current period, income tax expense was $12.6 million, compared to $10.7 million in the second quarter of 1996, or 39.5% of earnings before income taxes for both periods. Six Months Ended June 28, 1997 As Compared With Six Months Ended June 29, 1996 - ------------------------------------------------------------------------------- Net sales for the first six months ended June 28, 1997 were $892.0 million, which represented an increase of 4% from the $858.2 million reported for the first six months of 1996. This sales increase was in line with the overall industry growth rate. Gross profit for the first six months of the current year was $208.7 million (23.4% of net sales). In the first six months of 1996, gross profit was $202.1 million (23.5% of net sales). Selling, general and administrative expenses for the current period were $146.4 million (16.4% of net sales) compared to $147.2 million (17.1% of net sales) for the prior year's first six months. The percentage decrease was primarily due to lower sample and bad debt expense in the first half of 1997. Interest expense for the current period was $15.0 million compared to $17.2 million in the first six months of 1996. The primary factor for the decrease was a reduction in debt levels in the first six months of 1997 as compared to the first six months of 1996. In the current period, income tax expense was $18.2 million, compared to $14.2 million in the first six months of 1996, or 39.5% of earnings before income taxes for both periods. 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 $215.1 million at the beginning of 1997 to $234.3 million at June 28, 1997. The $19.2 million increase resulted primarily from seasonally higher sales volume in the second quarter as compared to December. Inventories rose from $302.7 million at the beginning of 1997 to $326.0 million at June 28, 1997, due to requirements to meet seasonal customer demand. Capital expenditures totaled $12.6 million in the first half of 1997 and were incurred primarily to modernize and expand manufacturing facilities and 10 equipment. The Company's capital projects are primarily focused on increasing capacity, improving productivity and reducing costs. Capital spending, including the purchase of certain property, plant and equipment from Diamond Rug & Carpet Mills, Inc., for the remainder of 1997 is expected to range from $52.0 million to $57.0 million, the majority of which will be used to increase capacity and productivity. On April 15, 1997, the Company amended and restated its credit agreement to provide for an interest rate of either (i) LIBOR plus 0.2% to 0.5%, depending upon the Company's performance measured against certain financial ratios, or (ii) the prime rate less 1.0%. Additionally, the termination date of the credit agreement was extended to May 15, 2002. On July 23, 1997, the Company acquired certain assets of Diamond Rug & Carpet Mills, Inc. and other assets owned by Diamond's principal shareholders for approximately $36.0 million which consisted of $19.6 million in cash, at closing, $7.0 million in cash over the six-month period following closing and a $9.4 million note payable in seven annual installments of principal plus interest at 6%. The acquisition was accomplished through a plan of reorganization under Chapter 11 of the United States Bankruptcy Code and was financed primarily through existing credit facilities. IMPACT OF INFLATION Inflation affects the Company's manufacturing costs and operating expenses. The carpet industry has experienced moderate inflation in the prices of certain raw materials and outside processing for the last three years. The Company has generally passed along nylon fiber cost 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. EFFECT OF ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED The Financial Accounting Standards Board issued FAS No. 128, Earnings Per Share, which will supersede APB No. 15, Earnings Per Share. This statement, which the Company is required to adopt in the fourth quarter of 1997, requires companies to replace the presentation of primary EPS and fully diluted EPS with basic EPS and diluted EPS. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the company. The Company does not believe the implementation of FAS No. 128 will have a material effect on the Company's consolidated financial statements. FORWARD-LOOKING INFORMATION Certain of the matters discussed in the preceding pages, including but not limited to, the effects of changes to manufacturing, distribution and systems, levels of capital expenditures and the Diamond acquisition, may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve a number of risks and uncertainties. Factors that may cause actual results to differ materially include, but are not limited to, the following: market conditions in the carpet industry, raw material prices, timing and level of capital expenditures, the successful integration of acquisitions, the successful introduction of new products and other risks identified from time to time in the Company's SEC reports and public announcements. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS Not applicable. 11 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 threatened against the Company or any of its property. In June 1994, the Company and several other carpet manufacturers received subpoenas to produce documents from a grand jury of the United States District Court in Atlanta. The subpoenas were requested by the Antitrust Division of the U. S. Department of Justice in connection with an investigation of the industry. The Company believes that the results of this investigation will not have a material adverse impact on the financial condition of the Company. 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. 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 early 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 Company believes both of these lawsuits are without merit and intends to vigorously defend against them. ITEM 2. CHANGES IN SECURITIES None. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Annual Meeting of Stockholders was held on May 22, 1997, at which time stockholders were asked to elect a class of directors to serve a three-year term beginning in 1997 and to consider and vote upon the Mohawk Industries, Inc. 1997 Long-Term Incentive Plan (the "Plan"). Messrs. Bruce C. Bruckmann, Alan S. Lorberbaum and Larry W. McCurdy were elected as Class II directors of the Company for a term expiring in 2000. Mr. Bruckmann was elected by stockholders owning 26,072,329 shares of common stock, with stockholders owning 37,335 shares withholding authority. With respect to Mr. Bruckmann's election, there were 6,200,004 broker nonvotes. Mr. Lorberbaum was elected by stockholders owning 26,072,084 shares of common stock, with stockholders owning 37,580 shares withholding authority. With respect to Mr. Lorberbaum's election, there wee 6,200,004 broker nonvotes. Mr. McCurdy was elected by stockholders owning 26,072,329 shares of common stock, with stockholders owning 37,335 shares withholding authority. With respect to Mr. McCurdy's election, there were 6,200,004 broker nonvotes. Messrs. David L. Kolb, Leo Benatar, Robert N. Pokelwaldt and Jeffrey S. Lorberbaum continued their terms of office as directors. The Plan, a description of which is contained in the Company's Proxy Statement dated April 9, 1997, was approved by stockholders owning 22,827,027 shares of common stock, with stockholders owning 3,162,626 shares voting against the Plan and 36,705 shares abstaining. There were 6,283,310 broker nonvotes with respect to the Plan. 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 27 Financial Data Schedule (b) REPORTS ON FORM 8-K None. 12 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: August 5, 1997 By: /s/ David L. Kolb ------------------------------------- DAVID L. KOLB, Chairman of the Board and Chief Executive Officer (principal executive officer) Dated: August 5, 1997 By: /s/ John D. Swift ------------------------------------- JOHN D. SWIFT, Chief Financial Officer, Vice President-Finance and Assistant Secretary (principal financial and accounting officer) 13 EXHIBIT INDEX NO. DESCRIPTION - --- ----------------------------------------------------------------------- 11 Statement re: Computation of Per Share Earnings 27 Financial Data Schedule 14 EX-11 2 STATEMENT RE: COMPUTATUON 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)(11) and APB Opinion No. 15,
Three Months Ended Six Months Ended ----------------------------- ---------------------------- June 28, 1997 June 29,1996 June 28,1997 June 29,1996 ------------- ------------ ------------ ------------ Net earnings $ 19,307 16,395 27,854 21,733 ============= ============ ============ ============ Weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 34,538 34,360 34,528 33,915 Add weighted average common equivalent shares - options to purchase common shares, net 247 154 302 391 ------------- ------------ ------------ ------------ Weighted average common and common equivalent shares outstanding 34,785 34,514 34,830 34,306 ============= ============ ============ ============ Earnings per common and common equivalent share $ 0.56 0.48 0.80 0.63 ============= ============ ============ ============
EX-27 3 ARTICLE 5 FINANCIAL DATA SCHEDULE
5 Mohawk Industries, Inc.'s Quarterly Report to stockholders for the quarter ended June 28, 1997. 1,000 6-MOS DEC-31-1997 JAN-01-1997 JUN-28-1997 0 0 270,038 35,786 326,004 593,812 539,652 233,058 975,994 245,887 339,532 346 0 0 361,540 975,994 891,993 891,993 683,250 683,250 0 3,659 15,027 46,029 18,175 27,854 0 0 0 27,854 0.80 0.80
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