-- Q1 Adjusted EPS Up 40%
-- Record Net Sales
CALHOUN, Ga., May 5, 2016 /PRNewswire/ -- Mohawk Industries,
Inc. (NYSE: MHK) today announced 2016 first quarter net earnings of
$172 million and diluted earnings per
share (EPS) of $2.30. Excluding
restructuring, acquisition and other charges, net earnings were
$177 million and EPS was $2.38, a 40% increase over last year's first
quarter adjusted EPS. Net sales for the first quarter of 2016 were
$2.2 billion, up 15.5% versus the
prior year's first quarter or approximately 19% increase on a
constant days and currency exchange rate basis. For the first
quarter of 2015, net sales were $1.9
billion, net earnings were $22
million and EPS was $0.30;
excluding restructuring, acquisition and other charges, net
earnings were $125 million and EPS
was $1.70.
Commenting on Mohawk Industries' first quarter performance,
Jeffrey S. Lorberbaum, Chairman and
CEO, stated, "We entered 2016 with an optimistic outlook, and our
results exceeded our projections with revenue growing across all
segments. We delivered our eighth consecutive quarter with record
year over year adjusted EPS, as well as the highest net sales for
any quarter in the company's history. For the period, our adjusted
operating income margin rose to a first quarter record of 11.6%, an
increase of 200 basis points over the prior year due to
acquisitions, volume, productivity and input costs. All of these
results were achieved with one less day in the period than last
year.
"Our major capital projects initiated last year are progressing
as expected, with the first production line in our Tennessee ceramic plant now operational, our
U.S. LVT production accelerating and the second phase of our
European ceramic upgrade now complete. Each of our capital
expansion projects creates significant long-term value, adding new
revenues by increasing our product offerings and customer base.
Typically, these projects take one to three years to achieve their
full benefit. All of these investments should provide higher
returns than our acquisitions, though start-up costs impact our
immediate results.
"In 2016, we have identified more opportunities to grow our
business and have already approved additional LVT production lines
in the U.S. and Europe, the
doubling of our central Mexico
ceramic plant, the final phase of our European ceramic equipment
upgrades and the expansion of our U.S. and European premium
laminate production with new technology. We anticipate investing
more than $600 million in capital
projects this year, and we are assessing further internal
opportunities.
"For the quarter, our Global Ceramic Segment sales were up
approximately 8% as reported. On a constant days and currency
basis, the segment grew 11% with the legacy business up
approximately 9%. Adjusted operating income for the segment
rose 18% on a constant currency basis over last year to an
operating margin of 13%. In our North American ceramic business,
which constitutes the majority of the segment, our service centers
grew the fastest of all our channels during the period as we
invested more in sales personnel, marketing and new product
introductions. Our new floor and wall tile products are gaining
additional placements in the home center channel as those retailers
place greater emphasis on the category. To support our growth, our
new plant in Tennessee initiated
production on schedule, and the first line is running well. The
plant's remaining two lines will be operational between now and
August. Our Mexican ceramic business is outpacing the market and is
the fastest growing part of the segment. We continue to increase
our customer base in the Mexican market, adding new distributors,
expanding home center placements and increasing our participation
in new construction projects. Our European ceramic sales grew
during the period, and we are increasing our investments in sales
personnel, merchandising, retail training and brand advertising.
Our KAI acquisition continues to progress as we enhance the product
offering, organization and reporting systems while expanding sales
to Western Europe and the U.S. Our
Russian ceramic business continues to outperform the market, which
remains challenging as the economy contracts and investments in
real estate decline.
"During the quarter, our Flooring North America Segment's sales
were up 7% as reported. On constant days basis the segment grew
approximately 9% with the legacy sales up 4%. Adjusted operating
income for the segment rose 42% over last year to an operating
margin of 9%. Last year, we began expanding our investments in
sales personnel and marketing to broaden our distribution in carpet
and hard surface products. Our profit margins have improved as a
result of more differentiated products and more efficient
operations. We continue to build on our strengths in premium
residential carpet with innovative products that should enhance our
mix as homeowners seek luxurious softness and improved
performance. Our commercial margins improved with the success
of our fashionable new product introductions and streamlined
manufacturing processes. Our U.S. hard surface sales increased
across all channels as we leverage our relationships with
independent retailers, home centers and commercial customers. Our
LVT sales are growing dramatically in both residential and
commercial sectors as we ramp up production at our new U.S. plant.
We have announced a hardwood price increase of 6% - 10% effective
on May 15th. Our manufacturing plants
are improving process efficiencies and quality as well as
implementing equipment upgrades to extend our competitive
advantages.
"For the quarter, our Flooring Rest of the World segment's sales
were up 56% as reported. On a constant days and currency basis the
segment increased 62% with legacy sales up 4%. Adjusted
operating income for the segment rose 70% on a constant currency
basis to an operating margin of 17%. Our laminate and wood business
in Europe outpaced market trends
due to our differentiated high-end products. Our deeply textured
new laminate collections are driving growth in the category, and
our engineered wood sales rose in both our Quick-Step brand and our
direct distribution. We are planning to increase laminate capacity
this year to support new product growth. Our sheet vinyl plants are
fully utilized and our mix is improving. Our LVT sales are growing
substantially as our new production expands, and we sourced
products to grow even faster. Additional equipment will be
installed in the third quarter to further increase our LVT
capacity. Our insulation panel business grew significantly during
the period, primarily through the acquisition of Xtratherm which
was completed the end of last year. Our boards and roof panel
businesses are delivering improved sales and margins as we upgrade
the mix and
equipment.
"Mohawk delivered another strong performance during the first
period with all of our segments enhancing their position in the
marketplace. In the U.S., increased investments in marketing,
products and distribution should increase our sales and margins
across all product categories. Although growth in Europe is limited and Russia remains in a recession, we anticipate
improving our market share and positioning ourselves for the
future. We are investing in our businesses at the highest rate in
our history to expand our product offerings, improve efficiency and
increase capacity. Our recent acquisitions have been significantly
integrated, and our financial leverage has been reduced, so we can
pursue additional opportunities as they become available. Taking
all of these factors into account, our guidance for the second
quarter is $3.29 to $3.38, which
would represent a 22% to 26% increase over 2015, excluding any
restructuring charges. Our first quarter performance reflects the
positive impact of the investments we have made in the business
over the past three years. Our unique products, marketing and
manufacturing position will enhance our operating results going
forward."
ABOUT MOHAWK INDUSTRIES
Mohawk Industries is the leading global flooring manufacturer that
creates products to enhance residential and commercial spaces
around the world. Mohawk's vertically integrated manufacturing and
distribution processes provide competitive advantages in the
production of carpet, rugs, ceramic tile, laminate, wood, stone and
vinyl flooring. Our industry-leading innovation has yielded
products and technologies that differentiate our brands in the
marketplace and satisfy all remodeling and new construction
requirements. Our brands are among the most recognized in the
industry and include American Olean, Bigelow, Daltile, Durkan, IVC,
Karastan, Lees, Marazzi, Mohawk, Pergo, Unilin and Quick-Step.
During the past decade, Mohawk has transformed its business from an
American carpet manufacturer into the world's largest flooring
company with operations in Australia, Brazil, Canada, Europe, India, Malaysia, Mexico, New
Zealand, Russia and
the United States.
Certain of the statements in the immediately preceding
paragraphs, particularly anticipating future performance, business
prospects, growth and operating strategies and similar matters and
those that include the words "could," "should," "believes,"
"anticipates," "expects," and "estimates," or similar expressions
constitute "forward-looking statements." 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. There can be no assurance that the
forward-looking statements will be accurate because they are based
on many assumptions, which involve risks and uncertainties. The
following important factors could cause future results to differ:
changes in economic or industry conditions; competition; inflation
and deflation in raw material prices and other input costs;
inflation and deflation in consumer markets; energy costs and
supply; timing and level of capital expenditures; timing and
implementation of price increases for the Company's products;
impairment charges; integration of acquisitions; international
operations; introduction of new products; rationalization of
operations; tax, product and other claims; litigation; and other
risks identified in Mohawk's SEC reports and public
announcements.
Conference call Friday,
May 6, 2016, at 11:00 AM Eastern
Time
The telephone number is
1-800-603-9255 for US/Canada and
1-706-634-2294 for International/Local. Conference ID # 88703650. A
replay will be available until Monday, June
6, 2016, by dialing 855-859-2056 for US/local calls and
404-537-3406 for International/Local calls and entering Conference
ID # 88703650.
MOHAWK INDUSTRIES,
INC. AND SUBSIDIARIES
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Consolidated
Statement of Operations
|
|
Three Months
Ended
|
(Amounts in
thousands, except per share data)
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
Net sales
|
|
$
2,172,046
|
|
1,881,177
|
Cost of
sales
|
|
1,532,367
|
|
1,369,234
|
Gross profit
|
|
639,679
|
|
511,943
|
Selling, general and
administrative expenses
|
|
394,007
|
|
468,169
|
Operating
income
|
|
245,672
|
|
43,774
|
Interest
expense
|
|
12,301
|
|
16,449
|
Other expense
(income), net
|
|
3,429
|
|
(1,083)
|
Earnings before income taxes
|
|
229,942
|
|
28,408
|
Income tax
expense
|
|
57,825
|
|
5,904
|
Net
earnings including noncontrolling interest
|
|
172,117
|
|
22,504
|
Net earnings
(loss) attributable to noncontrolling interest
|
|
569
|
|
158
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
$
171,548
|
|
22,346
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
2.32
|
|
0.31
|
Weighted-average
common shares outstanding - basic
|
|
73,976
|
|
72,988
|
|
|
|
|
|
Diluted earnings
per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
Diluted earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
2.30
|
|
0.30
|
Weighted-average
common shares outstanding - diluted
|
|
74,490
|
|
73,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
Depreciation and
amortization
|
|
$
100,194
|
|
85,656
|
Capital
expenditures
|
|
$
140,833
|
|
105,794
|
|
|
|
|
|
Consolidated
Balance Sheet Data
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
98,305
|
|
107,041
|
Receivables, net
|
|
1,406,725
|
|
1,158,858
|
Inventories
|
|
1,652,030
|
|
1,505,632
|
Prepaid expenses and other current assets
|
|
313,491
|
|
285,261
|
Total
current assets
|
|
3,470,551
|
|
3,056,792
|
Property, plant and
equipment, net
|
|
3,224,327
|
|
2,618,633
|
Goodwill
|
|
2,339,521
|
|
1,553,155
|
Intangible assets,
net
|
|
950,975
|
|
661,846
|
Deferred income taxes
and other non-current assets
|
|
306,941
|
|
389,635
|
Total assets
|
|
$
10,292,315
|
|
8,280,061
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
$
2,076,179
|
|
1,806,176
|
Accounts payable and
accrued expenses
|
|
1,247,489
|
|
1,074,456
|
Total
current liabilities
|
|
3,323,668
|
|
2,880,632
|
Long-term debt, less
current portion
|
|
1,173,600
|
|
601,519
|
Deferred income taxes
and other long-term liabilities
|
|
615,037
|
|
574,115
|
Total
liabilities
|
|
5,112,305
|
|
4,056,266
|
Redeemable
noncontrolling interest
|
|
23,432
|
|
-
|
Total stockholders'
equity
|
|
5,156,578
|
|
4,223,795
|
Total liabilities and stockholders' equity
|
|
$
10,292,315
|
|
8,280,061
|
|
|
|
|
|
Segment
Information (a)
|
|
As of or for the
Three Months Ended
|
(Amounts in
thousands)
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
Net sales:
|
|
|
|
|
Global Ceramic
|
|
$
773,726
|
|
719,828
|
Flooring NA
|
|
906,364
|
|
846,911
|
Flooring ROW
|
|
491,956
|
|
314,742
|
Intersegment sales
|
|
-
|
|
(304)
|
Consolidated net sales
|
|
$
2,172,046
|
|
1,881,177
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
Global Ceramic
|
|
$
99,777
|
|
85,327
|
Flooring NA
|
|
75,351
|
|
(75,192)
|
Flooring ROW
|
|
79,537
|
|
44,641
|
Corporate and eliminations
|
|
(8,993)
|
|
(11,002)
|
Consolidated operating income
|
|
$
245,672
|
|
43,774
|
|
|
|
|
|
Assets:
|
|
|
|
|
Global Ceramic
|
|
$
3,988,285
|
|
3,584,471
|
Flooring NA
|
|
3,267,529
|
|
2,631,310
|
Flooring ROW
|
|
2,926,959
|
|
1,753,404
|
Corporate and eliminations
|
|
109,542
|
|
310,876
|
Consolidated assets
|
|
$
10,292,315
|
|
8,280,061
|
Reconciliation of
Net Earnings Attributable to Mohawk Industries, Inc. to Adjusted
Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted
Diluted Earnings Per Share Attributable to Mohawk
Industries,
Inc.
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
|
|
$
171,548
|
|
22,346
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
|
|
7,718
|
|
12,529
|
|
|
|
|
Legal settlement and
reserves
|
|
|
|
-
|
|
125,000
|
|
|
|
|
Deferred loan
costs
|
|
|
|
-
|
|
651
|
|
|
|
|
Income
taxes
|
|
|
|
(2,277)
|
|
(35,554)
|
|
|
|
|
Adjusted net earnings
attributable to Mohawk Industries, Inc.
|
|
|
|
$
176,989
|
|
124,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to Mohawk Industries,
Inc.
|
|
$
2.38
|
|
1.70
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
|
|
|
74,490
|
|
73,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Total Debt to Net Debt
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
$
2,076,179
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
1,173,600
|
|
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
98,305
|
|
|
|
|
|
|
|
|
Net Debt
|
|
$
3,151,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Pro forma Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
Trailing
Twelve
|
|
|
Three Months
Ended
|
|
Months
Ended
|
|
|
July 4,
2015
|
|
October 3,
2015
|
|
December 31,
2015
|
|
April 2,
2016
|
|
April 2,
2016
|
Operating
income
|
|
$
255,816
|
|
288,734
|
|
249,242
|
|
245,672
|
|
1,039,464
|
Other (expense)
income
|
|
(2,928)
|
|
(4,249)
|
|
(11,525)
|
|
(3,429)
|
|
(22,131)
|
Net (earnings) loss
attributable to non-controlling interest
|
|
(282)
|
|
(798)
|
|
(446)
|
|
(569)
|
|
(2,095)
|
Depreciation and
amortization
|
|
88,011
|
|
94,955
|
|
94,025
|
|
100,194
|
|
377,185
|
EBITDA
|
|
340,617
|
|
378,642
|
|
331,296
|
|
341,868
|
|
1,392,423
|
Restructuring,
acquisition and integration-related and other
costs
|
|
15,275
|
|
11,690
|
|
30,820
|
|
7,718
|
|
65,503
|
Acquisitions purchase
accounting (inventory step-up)
|
|
6,156
|
|
7,160
|
|
21
|
|
-
|
|
13,337
|
Legal settlement and
reserves
|
|
2,000
|
|
-
|
|
(2,520)
|
|
-
|
|
(520)
|
Release of
indemnification asset
|
|
-
|
|
-
|
|
11,180
|
|
-
|
|
11,180
|
Acquisitions
EBITDA
|
|
40,648
|
|
3,639
|
|
7,337
|
|
-
|
|
51,624
|
Pro forma
Adjusted EBITDA
|
|
$
404,696
|
|
401,131
|
|
378,134
|
|
349,586
|
|
1,533,547
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Pro forma
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
2016 Net Sales to Net Sales on a Constant Exchange Rate and
Constant Shipping Days Excluding 2016 Q1 Acquisition
Volume
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Net sales
|
|
$
2,172,046
|
|
1,881,177
|
|
|
|
|
|
|
Adjustment to net
sales on constant shipping days
|
|
31,734
|
|
-
|
|
|
|
|
|
|
Adjustment to net
sales on a constant exchange rate
|
|
26,043
|
|
-
|
|
|
|
|
|
|
Net sales on a
constant exchange rate and constant shipping days
|
|
2,229,823
|
|
1,881,177
|
|
|
|
|
|
|
Less: 2016 Q1
impact of acquisition volume
|
|
(242,956)
|
|
-
|
-
|
|
|
|
|
|
2016 net sales on a
constant exchange rate and constant shipping days excluding
acquisition volume
|
|
$
1,986,867
|
|
1,881,177
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange Rate
and Constant Shipping Days Excluding 2016 Q1 Acquisition
Volume
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Global
Ceramic
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Net sales
|
|
$
773,726
|
|
719,828
|
|
|
|
|
|
|
Adjustment to net
sales on constant shipping days
|
|
10,189
|
|
-
|
|
|
|
|
|
|
Adjustment to segment
net sales on a constant exchange rate
|
|
16,610
|
|
-
|
|
|
|
|
|
|
2016 segment net
sales on a constant exchange rate and constant shipping
days
|
|
800,525
|
|
719,828
|
|
|
|
|
|
|
Less: 2016 Q1
impact of acquisition volume
|
|
(19,782)
|
|
-
|
-
|
|
|
|
|
|
2016 segment net
sales on a constant exchange rate and constant shipping days
excluding acquisition volume
|
|
$
780,743
|
|
719,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
2016 Segment Net Sales to Segment Net Sales on Constant Shipping
Days Excluding 2016 Q1 Acquisition Volume
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Flooring NA
(a)
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Net sales
|
|
$
906,364
|
|
846,911
|
|
|
|
|
|
|
Adjustment to net
sales on constant shipping days
|
|
12,400
|
|
-
|
|
|
|
|
|
|
2016 segment net
sales on constant shipping days
|
|
918,764
|
|
846,911
|
|
|
|
|
|
|
Less: 2016 Q1 impact
of acquisition volume
|
|
(40,400)
|
|
-
|
|
|
|
|
|
|
2016 segment net
sales on constant shipping days excluding acquisition
volume
|
|
$
878,364
|
|
846,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange Rate
and Constant Shipping Days Excluding 2016 Q1 Acquisition
Volume
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Flooring ROW
(a)
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Net sales
|
|
$
491,956
|
|
314,742
|
|
|
|
|
|
|
Adjustment to net
sales on constant shipping days
|
|
9,145
|
|
-
|
|
|
|
|
|
|
Adjustment to segment
net sales on a constant exchange rate
|
|
9,433
|
|
-
|
|
|
|
|
|
|
2016 segment net
sales on a constant exchange rate and constant shipping
days
|
|
510,534
|
|
314,742
|
|
|
|
|
|
|
Less: 2016 Q1 impact
of acquisition volume
|
|
(182,773)
|
|
-
|
|
|
|
|
|
|
2016 segment net
sales on a constant exchange rate and constant shipping days
excluding acquisition volume
|
|
$
327,761
|
|
314,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Gross Profit to Adjusted Gross Profit
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Gross
Profit
|
|
$
639,679
|
|
511,943
|
|
|
|
|
|
|
Adjustments to gross
profit:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
5,848
|
|
9,976
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$
645,527
|
|
521,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Selling, General and Administrative Expenses to Adjusted Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
$
394,007
|
|
468,169
|
|
|
|
|
|
|
Adjustments to
selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
(1,194)
|
|
(2,553)
|
|
|
|
|
|
|
Legal settlement and
reserves
|
|
-
|
|
(125,000)
|
|
|
|
|
|
|
Adjusted
selling, general and administrative expenses
|
|
$
392,813
|
|
340,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted Operating Income on a Constant
Exchange Rate
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Operating
income
|
|
$
245,672
|
|
43,774
|
|
|
|
|
|
|
Adjustments to
operating income:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
7,042
|
|
12,529
|
|
|
|
|
|
|
Legal settlement and
reserves
|
|
-
|
|
125,000
|
|
|
|
|
|
|
Adjusted operating
income
|
|
252,714
|
|
181,303
|
|
|
|
|
|
|
Adjustment to operating income on a constant exchange
rate
|
|
2,965
|
|
-
|
|
|
|
|
|
|
Adjusted
operating income on constant exchange rate
|
|
$
255,679
|
|
181,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating Income on a
Constant Exchange Rate
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Global
Ceramic
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Operating
income
|
|
$
99,777
|
|
85,327
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
766
|
|
362
|
|
|
|
|
|
|
Adjusted segment
operating income
|
|
100,543
|
|
85,689
|
|
|
|
|
|
|
Adjustment to
operating income on a constant exchange rate
|
|
337
|
|
-
|
|
|
|
|
|
|
Adjusted
segment operating income on constant exchange rate
|
|
$
100,880
|
|
85,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Flooring NA
(a)
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Operating
income
|
|
$
75,351
|
|
(75,192)
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
Legal settlement and
reserves
|
|
-
|
|
125,000
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
3,676
|
|
5,825
|
|
|
|
|
|
|
Adjusted
segment operating income
|
|
$
79,027
|
|
55,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating Income on a
Constant Exchange Rate
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Flooring ROW
(a)
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Operating
income
|
|
$
79,537
|
|
44,641
|
|
|
|
|
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
2,600
|
|
5,155
|
|
|
|
|
|
|
Adjusted segment
operating income
|
|
82,137
|
|
49,796
|
|
|
|
|
|
|
Adjustment to
operating income on a constant exchange rate
|
|
2,627
|
|
-
|
|
|
|
|
|
|
Adjusted
segment operating income on constant exchange rate
|
|
$
84,764
|
|
49,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Earnings incl Noncontrolling Interests Before Income Taxes to
Adjusted Earnings incl Noncontrolling Interests Before Income
Taxes
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
$
229,942
|
|
28,408
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
(569)
|
|
(158)
|
|
|
|
|
|
|
Adjustments to
earnings incl noncontrolling interests before income
taxes:
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related and other
costs
|
|
7,718
|
|
12,529
|
|
|
|
|
|
|
Legal settlement and
reserves
|
|
-
|
|
125,000
|
|
|
|
|
|
|
Deferred loan
costs
|
|
-
|
|
651
|
|
|
|
|
|
|
Adjusted
earnings incl noncontrolling interests before income
taxes
|
|
$
237,091
|
|
166,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax
Expense
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
Income tax
expense
|
|
$
57,825
|
|
5,904
|
|
|
|
|
|
|
Income tax effect of
adjusting items
|
|
2,277
|
|
35,554
|
|
|
|
|
|
|
Adjusted
income tax expense
|
|
$
60,102
|
|
41,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
rate
|
|
25.4%
|
|
24.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Prior year
segment data adjusted to reflect the second quarter 2015 segment
realignment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company believes
it is useful for itself and investors to review, as applicable,
both GAAP and the above non-GAAP measures in order to assess the
performance of the Company's business for planning and forecasting
in subsequent periods. In particular, the Company believes
excluding the impact of restructuring, acquisition,
integration-related and other costs, legal settlement and reserves
and acquisitions purchase accounting (inventory step-up) is useful
because it allows investors to evaluate our performance for
different periods on a more comparable basis.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mohawk-industries-reports-record-1st-quarter-earnings-300263969.html
SOURCE Mohawk Industries, Inc.