-----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, Wks0DQ98XcGP54AxcMxYv7b6HrRCDkX/nbF6MRxeOrR0twamUV34lRlgnvJOzpLb vg3ZG6/VnLVJC8h7ADdoiw== 0000931763-99-002936.txt : 19991025 0000931763-99-002936.hdr.sgml : 19991025 ACCESSION NUMBER: 0000931763-99-002936 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991021 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991022 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: 99732302 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 CURRENT FINANCIAL 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): October 21, 1999 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 October 21, 1999, Mohawk Industries, Inc. ("Mohawk") issued a press release announcing third quarter earnings. A copy of such press release is included as an exhibit to this report and incorporated herein by reference. Item 7. Financial Statements. Pro Forma Financial Information and Exhibits. ------------------------------------------------------------------- C. Exhibits 99.1 Press Release dated October 21, 1999 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: October 21, 1999 By: /s/ Frank H. Boykin ------------------------ Frank H. Boykin Corporate Controller INDEX TO EXHIBITS ----------------- Exhibit - ------- 99.1 Press Release dated October 21, 1999 EX-99.1 2 PRESS RELEASE NEWS RELEASE [MOHAWK LOGO APPEARS HERE] - ------------------------------------------------- Post Office Box 12069 South Industrial Blvd. Calhoun, GA 30703 (706) 629-7721 For Release: Immediately Contact: John D. Swift, Chief Financial Officer MOHAWK INDUSTRIES, INC. ANNOUNCES RECORD THIRD QUARTER AND FIRST NINE MONTHS RESULTS Calhoun, Georgia, October 21, 1999 -- Mohawk Industries, Inc. (NYSE:MHK) today announced its highest quarterly earnings per share attained by the Company since its stock first publicly traded in 1992. Net earnings for the quarter ended October 2, 1999 increased 22% to $45,079,000, ($0.74 diluted earnings per share) compared to $37,060,000 ($0.61 diluted earnings per share) for the third quarter of 1998. This improvement in net earnings was the result of higher sales, stronger gross profit and lower selling, general and administrative expenses as a percentage of sales. Net sales for the quarter increased 13% to $809,933,000 compared to $718,772,000 for the third quarter 1998. The sales increase was attributable to internal growth and the impact of the 1999 acquisition of Image Industries. Net earnings for the first nine months of 1999 were the highest first nine months earnings in the Company's history with net earnings of $117,064,000 or $1.91 diluted earnings per share. This is a 30% increase over the first nine months of 1998 net earnings of $90,142,000 or $1.48 diluted earnings per share. This improvement in net earnings was attributable to increased sales and stronger gross profit. Net sales for the first nine months of 1999 were $2,307,717,000 representing a 16% increase from the first nine months 1998 sales of $1,997,733,000. This increase was primarily due to the impact of 1998 and 1999 acquisitions, internal growth and four additional business days in the first quarter of 1999. In commenting on the third quarter performance, David L. Kolb, Chairman and CEO, stated, "This quarter was another record period that included strong sales and improved operating margins for our Company. Mohawk's residential flooring products, including broadloom carpet and rugs, provided the sales growth for the quarter. Shipments for the commercial industry continue to be soft just as our commercial flooring products have shown weakness this quarter, but we are encouraged by some areas of the commercial business. The realignments of our various operations to efficiently integrate the recent acquisitions into our manufacturing, sales, marketing, and administrative efforts are progressing effectively. Our goal is to integrate the acquisitions on an orderly basis so as to maximize returns to the Company while minimizing the disruption to operations. All of our recent acquisitions continue to contribute positively to our earnings and we believe the Company will see continued benefits in improved operating earnings in future periods. As announced earlier in the third quarter we completed the acquisitions of two yarn processing facilities that will allow us to reduce our yarn processing costs and supply additional capacity for future growth. Both of these acquisitions were fully integrated into our Company at the end of the third quarter. In addition to the solid financial results for the quarter, we are pleased to inform our investors of some other very positive items for our Company: 1. Mohawk received in October the Home Depot 1999 Partner of the Year Award for floor covering for consistent high level of service over the past year. 2. Patricia Durkan, President of Mohawk Hospitality Carpets, was selected 1999 Woman of the Year by the Network of Executive Women in Hospitality (NEWH). In addition, Mohawk's Merit and Durkan divisions received the top two awards for excellence in floorcovering design at the Hospitality Design '99 Show. This show included products from more than 20 top international manufacturers of hospitality floorcoverings. 3. Standard & Poor's upgraded our corporate credit rating in September to BBB. 4. Our previously announced stock repurchase program is progressing with over 3.0 million shares having been purchased through October 20, 1999." 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 successfully integrate the yarn processing facilities and its other recent acquisitions, to achieve strong returns on its investments in Image and 1999 capital expenditures and the success of the stock buy-back program. 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," "Alexander Smith," "Bigelow," "Durkan," "Galaxy," "Harbinger," "Helios," "Horizon," "Image," "Karastan," "Mohawk Commercial" and "World." Mohawk offers a broad line of washable accent and bath rugs through Aladdin and Newmark & James; area rugs through Karastan, American Rug Craftsmen and American Weavers; and decorative throws, placemats, table runners and kitchen chair pads through American Weavers. Mohawk also offers a complete laminate product line under the INSIGNIA brand name and distributes carpet padding and ceramic tile. The Company markets its products primarily through retailers and commercial dealers. ##### There will be a conference call Friday, October 22, 1999 -------------------------------------------------------- at 11:00 AM Eastern Time ------------------------ The telephone number to call is 1-800-603-9255. ----------------------------------------------- MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
Three Months Ended Nine Months Ended -------------------------- -------------------------- Consolidated Statement of Earnings Data October 2, September 26, October 2, September 26, (Amounts in thousands. except per share data) 1999 1998(1) 1999 1998(1) ---------- ------------- ---------- ------------- Net sales $809,933 718,772 2,307,717 1,997,733 Cost of Sales 606,687 541,010 1,725,231 1,505,976 -------- ------- ---------- --------- Gross profit 203,246 177,762 592,486 491,757 Selling, general and administrative expenses 119,258 108,279 361,920 316,102 -------- ------- ---------- --------- Operating income 83,988 69,483 220,566 175,655 Interest expense 8,335 7,245 23,942 23,336 Other expense, net 1,142 805 3,130 1,624 -------- ------- ---------- --------- Earnings before income taxes 74,511 61,433 193,494 150,695 Income taxes 29,432 24,373 76,430 60,553 -------- ------- ---------- --------- Net earnings $ 45,079 37,060 117,064 90,142 -------- ------- ---------- --------- Basic earnings per share $ 0.74 0.61 1.93 1.49 -------- ------- ---------- --------- Weighted-average common shares outstanding 60,600 60,435 60,586 60,359 -------- ------- ---------- --------- Diluted earnings per share $ 0.74 0.61 1.91 1.48 -------- ------- ---------- --------- Weighted-average common and dilutive potential common shares outstanding 61,114 61,169 61,218 61,107 -------- ------- ---------- --------- Consolidated Balance Sheet Data (Amounts in thousands) October 2, September 26, 1999 1998(1) ---------- ------------- ASSETS Current assets: Cash $ - 72 Receivables 385,344 371,367 Inventories 537,579 443,107 Prepaid expenses 13,444 7,873 Deferred income taxes 52,568 37,576 ---------- --------- Total current assets 988,935 859,995 Property, plant and equipment, net 619,993 446,662 Other assets 107,310 99,479 ---------- --------- $1,716,238 1,406,136 ---------- --------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 197,013 40,262 Accounts payable and accrued expenses 401,869 384,279 ---------- --------- Total current liabilities 598,882 424,541 Long-term debt, less current portion 363,252 360,216 Deferred income taxes and other long-term liabilities 31,889 36,541 ---------- --------- Total liabilities 994,023 821,298 ---------- --------- Total stockholders' equity 722,215 584,838 ---------- --------- $1,716,238 1,406,136 ---------- ---------
(1) Restated to give retroactive effect to the merger with Durkan Patterned Carpets, Inc which was accounted for under the pooling of interests method of accounting and certain prior year financial balances have been reclassified to conform with the current year's presentation. - -------------------------------------------------------------------------------- Dates for Future Press Releases and Conference Calls: Press Release Conference Call 3rd Qtr. 1999 October 21 October 22 11:00 a.m. (800-603-9255) 4th Qtr. 1999 February 10 February 11 11:00 a.m. " 1st Qtr. 2000 April 24 April 25 11.00 a.m. " 2nd Qtr. 2000 July 20 July 21 11:00 a.m. " - -------------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----