-----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, HVcDX8Uu/CWdTTkUwSotZDYqJu0sT5ok3Il9SL7EJ56qyps/dWFkhuKRNPMW0z4D 5xB3PxppbJhEI8cu67y4sQ== 0000950109-96-007303.txt : 19961113 0000950109-96-007303.hdr.sgml : 19961113 ACCESSION NUMBER: 0000950109-96-007303 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960928 FILED AS OF DATE: 19961112 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: 96658039 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 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 September 28, 1996 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 incorporation (I.R.S. Employer or organization) Identification No.) Post Office Box 12069, 160 South Industrial 30703 Boulevard, Calhoun, Georgia (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 November 5, 1996, the latest practicable date, is as follows: 34,460,484 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 - September 28, 1996 and December 31, 1995 3 Condensed Consolidated Statements of Earnings - Three months ended September 28, 1996 and September 30, 1995 5 Nine months ended September 28, 1996 and September 30, 1995 6 Condensed Consolidated Statements of Cash Flows - Nine months ended September 28, 1996 and September 30, 1995 7 Notes to Condensed Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Part II. Other Information 13
2 PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (In thousands) (Unaudited)
September 28, 1996 December 31, 1995 ----------------------- ---------------------- Current assets: Receivables $ 258,803 177,778 Inventories 328,034 299,191 Prepaid expenses 18,131 17,607 Deferred income taxes 12,858 12,858 ----------------------- ---------------------- Total current assets 617,826 507,434 ----------------------- ---------------------- Property, plant and equipment, at cost 522,150 471,048 Less accumulated depreciation and amortization 191,612 153,082 ----------------------- ---------------------- Net property, plant and equipment 330,538 317,966 ----------------------- ---------------------- Other assets 76,451 77,752 ----------------------- ---------------------- Total assets $ 1,024,815 903,152 ======================= ======================
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)
September 28, 1996 December 31, 1995 ------------------ ----------------- Current liabilities: Current portion of long-term debt and notes payable $ 41,822 61,262 Accounts payable and accrued expenses 235,400 201,372 ------------------ ----------------- Total current liabilities 277,222 262,634 Deferred income taxes 21,742 21,742 Long-term debt 400,911 341,775 Other long-term liabilities 5,073 2,098 ------------------ ----------------- Total liabilities 704,948 628,249 ------------------ ----------------- Stockholders' equity: Preferred stock, $.01 par value; 60,000 shares authorized; no shares issued - - Common stock, $.01 par value; 75,000 shares authorized; 34,442 and 34,394 shares issued in 1996 and 1995, respectively 344 344 Additional paid-in capital 130,824 122,747 Retained earnings 188,777 152,244 ------------------ ----------------- 319,945 275,335 Less: Treasury stock, at cost; 1,302 shares in 1995 - 115 Deferred compensation from stock options 78 317 ------------------ ----------------- Total stockholders' equity 319,867 274,903 ------------------ ----------------- Total liabilities and stockholders' equity $ 1,024,815 903,152 ================== =================
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 --------------------------------------------------- September 28, 1996 September 30, 1995 --------------------- ---------------------- Net sales $ 471,199 425,594 Cost of sales 361,870 330,683 --------------------- ---------------------- Gross profit 109,329 94,911 Selling, general and administrative expenses 74,782 72,345 Restructuring costs - 2,936 Carrying value reduction of property, plant and equipment 1,350 - --------------------- ---------------------- Operating income 33,197 19,630 --------------------- ---------------------- Other expense: Interest expense 7,944 8,603 Other expense, net 795 212 --------------------- ---------------------- 8,739 8,815 --------------------- ---------------------- Earnings before income taxes 24,458 10,815 Income taxes 9,658 4,186 --------------------- ---------------------- Net earnings $ 14,800 6,629 ===================== ====================== Earnings per common and common equivalent share $ 0.43 0.20 ===================== ====================== Weighted average common and common equivalent shares outstanding 34,823 33,994 ===================== ======================
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)
Nine Months Ended ----------------------------------------------- September 28, 1996 September 30, 1995 ------------------ ------------------- Net sales $ 1,329,418 1,233,596 Cost of sales 1,015,791 962,670 ------------------ ------------------- Gross profit 313,627 270,926 Selling, general and administrative expenses 224,134 206,964 Restructuring costs - 5,610 Carrying value reduction of property, plant and equipment 1,350 2,711 ------------------ ------------------- Operating income 88,143 55,641 ------------------ ------------------- Other expense: Interest expense 25,126 27,081 Other expense, net 2,640 1,553 ------------------ ------------------- 27,766 28,634 ------------------ ------------------- Earnings before income taxes 60,377 27,007 Income taxes 23,844 10,452 ------------------ ------------------- Net earnings $ 36,533 16,555 ================== =================== Earnings per common and common equivalent share $ 1.06 0.49 ================== =================== Weighted average common and common equivalent shares outstanding 34,479 33,809 ================== ===================
See accompanying notes to condensed consolidated financial statements. 6 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Nine Months Ended --------------------------------------------------- September 28, 1996 September 30, 1995 --------------------- --------------------- Cash flows from operating activities: Net earnings $ 36,533 16,555 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 41,375 40,991 Provision for doubtful accounts 8,939 5,514 Carrying value reduction of property, plant and equipment 1,350 2,711 Changes in operating assets and liabilities, net of effect of acquisition: Receivables (95,994) (11,282) Inventories (28,843) (6,857) Accounts payable and accrued expenses 38,793 49,238 Other assets and prepaid expenses (1,592) 4,825 Other liabilities (112) (9,638) --------------------- --------------------- Net cash provided by operating activities 449 92,057 --------------------- --------------------- Cash flows from investing activities: Additions to property, plant and equipment, net (28,952) (33,257) Acquisition, net of cash acquired - (44,000) --------------------------------------------------- Net cash used in investing activities (28,952) (77,257) --------------------- --------------------- Cash flows from financing activities: Net change in revolving line of credit 26,536 43,152 Payments on term loans (8,040) (5,081) Redemption of Galaxy indebtedness - (44,487) Change in outstanding checks in excess of cash 1,576 (12,546) Common stock transactions 8,431 4,162 --------------------- --------------------- Net cash provided by (used in) financing activities 28,503 (14,800) --------------------- --------------------- Net change in cash - - Cash, beginning of year - - --------------------------------------------------- Cash, end of period $ - - =================================================== Net cash paid (received) during the period for: Interest $ 25,417 27,979 ===================== ===================== Income taxes $ 18,187 (331) ===================== =====================
See accompanying notes to condensed consolidated financial statements. 7 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except per share data) (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 1995 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, 1995. 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 nine months ended September 28, 1996, the Company recorded a direct increase in stockholders' equity of $7,158 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:
September 28, 1996 December 31, 1995 ----------------------- --------------------- Customers, trade $ 287,402 206,015 Income tax receivable 3,001 1,298 Other 3,311 2,610 ----------------------- --------------------- 293,714 209,923 Less allowance for discounts, returns, claims and doubtful accounts 34,911 32,145 ----------------------- --------------------- Net receivables $ 258,803 177,778 ======================= =====================
3. Inventories The components of inventories are as follows:
September 28, 1996 December 31, 1995 ----------------------- --------------------- Finished goods $ 172,459 165,137 Work in process 48,228 47,125 Raw materials 107,347 86,929 ----------------------- --------------------- Total inventories $ 328,034 299,191 ======================= =====================
8 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED (In thousands, except per share data) (Unaudited) 4. Other assets Other assets are as follows:
September 28, 1996 December 31, 1995 ----------------------- --------------------- Goodwill, net of accumulated amortization of $5,219 and $4,108, respectively $ 54,049 55,160 Other assets 22,402 22,592 ----------------------- --------------------- Total other assets $ 76,451 77,752 ======================= =====================
5. Accounts payable and accrued expenses Accounts payable and accrued expenses are as follows:
September 28, 1996 December 31, 1995 ----------------------- --------------------- Outstanding checks in excess of cash $ 32,457 30,881 Accounts payable, trade 115,341 98,122 Accrued expenses 72,292 53,574 Accrued compensation 15,310 18,795 ------------------- --------------------- Total accounts payable and accrued expenses $ 235,400 201,372 ======================= =====================
6. Notes payable and long-term debt In June 1996, the Company amended and restated its revolving credit agreement to decrease its credit availability from $300,000 to $250,000 due to decreasing external financing needs. During the second quarter of 1996, the Company acquired certain equipment, primarily used for the extrusion of polypropylene yarn, valued at $21,200 in exchange for a promissory note due in April 1997. The promissory note pays interest at a variable rate that ranges from 0.25% to 0.875% above LIBOR. 7. Nonrecurring costs In the third quarter of 1996, the Company recorded a charge of $1,350 arising from a revision in the estimate of fair value of certain land, buildings and equipment based on current market conditions related to the mill closings that occurred in 1995. The after-tax effect of the charge for the three months and nine months ended September 28, 1996 was $817, or $0.02 per share. During the three months and nine months ended September 30, 1995, the Company recorded restructuring costs of $2,936 and $5,610, respectively, related to employee termination benefits, relocating inventories and equipment and other costs associated with certain mill closings. In connection with the adoption of FAS No. 121, the Company also recorded an impairment loss of $2,711 during the nine months ended September 30, 1995 for the write-down of property, plant and equipment to be disposed of related to these mill closings. The after-tax effect of the restructuring costs and the impairment loss for the three months and nine months ended September 30, 1995 was $1,800, or $0.05 per share, and $5,101, or $0.15 per share, respectively. 9 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED (In thousands, except per share data) (Unaudited) 8. Acquisition On October 11, 1996, the Company announced it signed a letter of intent to acquire certain assets of Diamond Rug & Carpet Mills, Inc. ("Diamond"). The proposed purchase price will be a maximum of $43,000 in cash, subject to adjustment based on the level of inventory at closing. Under the letter of intent, Mohawk has agreed to purchase selected facilities owned by Diamond's principal shareholders. If completed, the acquisition will be accomplished through a prepackaged or other plan of reorganization under Chapter 11 of the United Stated Bankruptcy Code. 10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Quarter Ended September 28, 1996 As Compared With Quarter Ended - --------------------------------------------------------------- September 30, 1995 - ------------------ Net sales for the quarter ended September 28, 1996 were $471.2 million, which represented an increase of 11% from the $425.6 million reported for the third quarter of 1995. This sales increase was attributable to an improvement in the Company's market share which the Company believes primarily resulted from changes in the retail segment of the industry and Mohawk's realignment of its residential sales forces under a regional structure. Additionally, American Rug Craftsmen continued to experience strong sales growth. Gross profit for the third quarter of the current year was $109.3 million (23.2% of net sales). In the third quarter of 1995, gross profit was $94.9 million (22.3% of net sales). This increase is due to product mix, manufacturing improvements from restructuring the residential operations, higher production levels resulting in better absorption of fixed costs and manufacturing improvements in other divisions. The manufacturing consolidations include the closing of five residential manufacturing facilities during 1995 as well as the realignment of the remaining residential mills to better utilize the strengths of each mill. The Company's integration of its manufacturing, distribution and information systems areas is progressing as planned and continues to contribute to the margin improvement. Selling, general and administrative expenses for the current quarter were $74.8 million (15.9% of net sales) compared to $72.3 million (17.0% of net sales) for the prior year's third quarter. The percentage decrease was primarily due to better control of discretionary spending and better leveraging of costs on strong sales growth. During the third quarter of 1996, the Company recorded an additional $1.4 million charge for nonrecurring costs related to the mill closings that occurred in 1995. The additional charge arises from a revision in the estimate of the fair value of certain land, buildings and equipment based upon current market conditions. The after tax effect of the charge is $.8 million, or $0.02 per share. Interest expense for the current period was $7.9 million compared to $8.6 million in the third quarter of 1995. The primary factors contributing to the decrease were a reduction in debt levels and lower interest rates on the Company's revolving credit agreement. In the current period, income tax expense was $9.7 million, or 39.5% of earnings before income taxes. In the third quarter of 1995, income tax expense was $4.2 million, or 38.7% of earnings before income taxes. The primary reason for the lower effective tax rate in 1995 was certain nonrecurring deductions that were treated as permanent differences in 1995. Nine Months Ended September 28, 1996 As Compared With Nine Months Ended - ----------------------------------------------------------------------- September 30, 1995 - ------------------ Net sales for the nine months ended September 28, 1996 were $1,329.4 million, which represented an increase of 8% from the $1,233.6 million reported for the first nine months of 1995. This sales increase was attributable to an improvement in the Company's market share which the Company believes primarily resulted from changes in the retail segment of the industry and Mohawk's realignment of its residential sales forces under a regional structure. Additionally, American Rug Craftsmen continued to experience strong sales growth. Gross profit for the first nine months of the current year was $313.6 million (23.6% of net sales). In the first nine months of 1995, gross profit was $270.9 million (22.0% of net sales). This increase is due to product mix, manufacturing improvements from restructuring the residential operations, higher production levels resulting in better absorption of fixed costs and manufacturing improvements in other divisions. Selling, general and administrative expenses for the first nine months of the current year were $224.1 million (16.9% of net sales) compared to $207.0 million (16.8% of net sales) for the prior year's first nine months. The higher percentage in 1996 is primarily due to higher sample costs incurred in the first and second quarters of 1996 as compared to 1995, which the Company believes are the result of increased dealer sample orders in response to a competitor's recent move into retail operations. Additionally, a higher provision for bad debts was recorded in the first and second quarters of 1996 due to increased sales volume. During the third quarter of 1996, the Company recorded an additional $1.4 million charge for nonrecurring costs related to the mill closings that occurred in 1995. The additional charge arises from a revision in the estimate of the fair 11 value of certain land, buildings and equipment based upon current market conditions. During the second and third quarters of 1995, the Company recorded restructuring costs totalling of $5.6 million related to employee termination benefits, relocating inventories and equipment and other costs associated with certain mill closings. In connection with the adoption of FAS No. 121, the Company also recorded an impairment loss to operating income of $2.7 million during the second quarter of 1995 for the write-down of property, plant and equipment to be disposed of related to these mill closings. The after-tax effect of the restructuring costs and the impairment loss for the nine months ended September 30, 1995 was $5.1 million, or $0.15 per share. Interest expense for the current period was $25.1 million compared to $27.1 million in the first nine months of 1995. The primary factors for the decrease were a reduction in debt levels and lower interest rates on the Company's revolving credit agreement. In the current period, income tax expense was $23.8 million, or 39.5% of earnings before income taxes. In the first nine months of 1995, income tax expense was $10.5 million, or 38.7% of earnings before income taxes. The primary reason for the lower effective tax rate in 1995 was certain nonrecurring deductions that were treated as permanent differences in 1995. 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. On June 6, 1996, the Company amended and restated its revolving credit agreement to decrease its credit availability from $300 million to $250 million due to decreasing external financing needs. The level of accounts receivable increased from $177.8 million at the beginning of 1996 to $258.8 million at September 28, 1996. The $81.0 million increase resulted primarily from strong sales growth and from seasonally higher sales volume in September as compared to December. Inventories rose from $299.2 million at the beginning of 1996 to $328.0 million at September 28, 1996, due to requirements to meet seasonal customer demand. Capital expenditures totaled $50.2 million in the first nine months of 1996, which included $21.2 million of equipment used primarily for the extrusion of polypropylene yarn that was acquired in a noncash transaction in exchange for a promissory note due in April 1997. The promissory note pays interest at a variable rate that ranges from 0.25% to 0.875% above LIBOR. The capital expenditures made during the first nine months of 1996 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 for the remainder of 1996 is expected to range from $5 million to $15 million, the majority of which will be used to purchase equipment and expand existing plants. On October 11, 1996, the Company announced that it signed a letter of intent to acquire certain assets of Diamond Rug & Carpet Mills, Inc. The proposed purchase price will be a maximum of $43.0 million in cash, subject to adjustment based on the level of inventory at closing. Under the letter of intent, Mohawk has agreed to purchase selected facilities owned by Diamond's principal shareholders. If completed, the acquisition will be accomplished through a prepackaged or other plan of reorganization under Chapter 11 of the United States Bankruptcy Code and will be primarily financed through existing credit facilities. From time to time, the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, proposed acquisitions, new products, and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward- looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect the operations, performance, development and results of the Company's business include market conditions in the carpet industry, raw material prices, timing of capital expenditures, the successful integration of acquisitions and other risk factors. 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. 12 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. 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 consolidation 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 earlier this year. 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 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 27 Financial Data Schedule
(b) Reports on Form 8-K None. 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: November 6, 1996 By: /s/ David L. Kolb ------------------------------------ DAVID L. KOLB, Chairman of the Board and Chief Executive Officer (principal executive officer) Dated: November 6, 1996 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 - --- ------------------------------------------------------------------------- 11 Statement re: Computation of Per Share Earnings 27 Financial Data Schedule
15 EX-11 2 STATEMENT OF 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)(11) and APB Opinion No. 15.
Three Months Ended Nine Months Ended ----------------------------------- ---------------------------------- September 28, September 30, September 28, September 30, 1996 1995 1996 1995 ----------------- ---------------- ---------------- ---------------- Net earnings $ 14,800 6,629 36,533 16,555 ================ ================ ================ ================ Weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 34,392 33,017 34,074 32,698 Add weighted average common equivalent shares - options to purchase common shares, net 431 977 405 1,111 ---------------- ---------------- ---------------- ---------------- Weighted average common and common equivalent shares outstanding $ 34,823 33,994 34,479 33,809 ================ ================ ================ ================ Earnings per common and common equivalent share $ 0.43 0.20 1.06 0.49 ================ ================ ================ ================
EX-27 3 FDS - ARTICLE 5
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MOHAWK INDUSTRIES, INC.'S QUARTERLY REPORT TO STOCKHOLDERS FOR THE QUARTER ENDED SEPTEMBER 28, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1996 JAN-01-1996 SEP-28-1996 0 0 293,714 34,911 328,034 617,826 522,150 191,612 1,024,815 277,222 400,911 0 0 344 319,523 1,024,815 1,329,418 1,329,418 1,015,791 1,015,791 1,350 8,939 25,395 60,377 23,844 36,533 0 0 0 36,533 1.06 1.06 CARRYING VALUE REDUCTION OF PROPERTY, PLANT AND EQUIPMENT FROM REVISED FAIR VALUE ESTIMATE BASED ON CURRENT MARKET CONDITIONS RELATING TO PRIOR YEAR'S MILL CLOSINGS.
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