TRINITY, N.C., June 26, 2012 /PRNewswire/ -- Sealy
Corporation (NYSE: ZZ), a leading global bedding manufacturer,
today announced results for its second quarter of fiscal
2012.
Fiscal 2012 2nd Quarter Recap for Continuing Operations
- Net sales decreased by $9.3
million to $312.0 million, a
2.9% decrease compared to the second quarter of fiscal 2011.
- Gross profit increased by $1.9
million to $127.0 million
compared to the second quarter of fiscal 2011. Gross margin
increased 1.8 percentage points to 40.7%.
- Income from operations increased by $3.7
million to $26.0 million
compared to the second quarter of fiscal 2011.
- Net income from continuing operations was $2.8 million or $0.03 per diluted share, compared to net income
from continuing operations of $0.8
million or $0.01 per diluted
share in the prior year quarter. The corresponding share
counts for 2012 and 2011 second quarter earnings per share were
110.1 million and 107.9 million, respectively. For further
information on the calculation of diluted shares, please see the
attached Reconciliation of Fully Diluted Sharecount
schedule.
- Adjusted EBITDA increased by 9.7% or $3.2 million to $36.0
million compared to the prior year quarter.
"We delivered solid financial and operational performance in the
second quarter of 2012," stated Larry
Rogers, Sealy's President and Chief Executive
Officer. "Our increased gross margin and Adjusted EBITDA
performance for the quarter were driven by the successful rollout
of our Next Generation Stearns & Foster line, and our strategic
commitment to driving profitable sales."
Fiscal 2012 Second Quarter Results
Total U.S. net sales decreased 5.2% to $240.2 million from the second quarter of fiscal
2011. Excluding third party sales from the component plants,
wholesale average unit selling price increased 5.4%, while
wholesale unit volume decreased 10.4%. The increase in average unit
selling price was driven primarily by increases in all major
innerspring lines and improved product mix related to the newly
introduced Next Generation Stearns & Foster product line. The
decrease in unit volume is attributable to relatively lower sales
of Posturepedic beds, which grew 14.2% in the prior year
quarter.
International net sales increased $4.0
million, or 5.9%, from the second quarter of fiscal 2011 to
$71.8 million. This increase was
primarily due to increased sales in Canada coupled with stronger sales performance
in Argentina. In Canada, local currency sales increases of 6.1%
translated into increases of 2.7% in U.S. dollars due to a weaker
Canadian dollar. Local currency sales performance in Canada was driven by a 2.3% increase in unit
volume, coupled with a 3.7% increase in average unit selling price.
The increase in unit volume and average unit selling price was
attributable to a successful, strategic shift in promotional events
to higher priced products in the portfolio resulting in unit volume
and market share growth.
Gross profit increased by $1.9
million to $127.0 million from
the prior year quarter. Gross margin increased 1.8 percentage
points to 40.7%. The increase in percentage of net sales was
primarily due to an increase in gross profit margin in our U.S.
operations, which was partially offset by decreases in gross profit
margin in our Mexico and
Canada operations. U.S. gross
profit margin increased 2.5 percentage points to 40.8% of net
sales. The increase in the U.S. gross profit percentage was due, in
part, to advances made in the manufacturing processes, which
resulted in a 1.3 percentage point increase in U.S. gross profit
margin. A reduction in product launch costs, compared to those
experienced in the second quarter of fiscal 2011 for our Next
Generation Posturepedic product, contributed an additional 1.3
percentage point increase in U.S. gross profit margin. We also saw
an improvement of 1.0 percentage points in U.S. gross profit margin
due to improved pricing and a shift in the mix of our product sales
to higher priced Next Generation Stearns & Foster products in
the second quarter of fiscal 2012. These improvements were
partially offset by the deleveraging of costs on lower unit volume.
In local currency, the gross profit margin in Canada was 40.1% as a percentage of net sales,
which represents a decrease of 0.5 percentage points. This decrease
was primarily driven by the impact of higher raw material
costs.
Selling, general, and administrative expenses were $106.5 million for the second quarter of fiscal
2012, a decrease of $0.9 million
versus the comparable period a year earlier. As a percentage of net
sales, this expense was 34.1% and 33.4% for the quarters ended
May 27, 2012 and May 29, 2011, respectively. The increase as a
percentage of net sales was principally due to an increase in
national advertising expenses in connection with the promotion of
Sealy Posturepedic innerspring and Optimum lines of products
surrounding the Memorial Day holiday
and increases in incentive compensation and defined contribution
expenses. These increases were offset by decreases in other product
launch, cooperative advertising and promotional costs driven by the
Next Generation Posturepedic rollout in the second quarter of
fiscal 2011.
Income from operations for the second quarter of fiscal 2012
increased 16.5% or $3.7 million to
$26.0 million. Prior year results
included $1.7 million of higher
product launch costs, which were associated with the launch of the
2011 Next Generation Posturepedic line.
Net income from continuing operations for the second quarter of
fiscal 2012 was $0.03 per diluted
share.
Fiscal 2012 Six Month Results
Net sales for the six months ended May
27, 2012 decreased 0.4% to $624.3
million from $626.8 million
for the comparable period a year earlier. Gross profit was
$249.4 million, or 39.9% of net
sales, versus $243.6 million, or
38.9% of net sales, for the comparable period a year earlier.
Net income from continuing operations was $4.4 million, versus net income of $0.9 million in the prior year period. Adjusted
EBITDA increased 15.2% to $72.4
million, or 11.6% of net sales, from $62.8 million, or 10.0% of net sales, compared to
the same period in the prior year.
As of May 27, 2012, the Company's
debt net of cash was $680.9 million
and Net Debt to Adjusted EBITDA ratio (excluding the Convertible
Payment In Kind Notes) was 3.71x, compared to 4.02x at November 27, 2011. During the quarter, we
redeemed $25 million of our Senior
Secured Notes and amended and renewed our ABL facility to extend
the maturity to 2017 and take advantage of more attractive
rates.
"As we look forward in 2012, we are focused on driving continued
performance from the Next Generation Stearns & Foster line, our
value priced Sealy Promotional Line, and the premium priced Optimum
by Sealy Posturepedic line. Our Sealy Promotional and Optimum
lines began shipping in the second quarter of 2012 and we expect
both of them to perform well during the second half of the year."
stated Mr. Rogers. "Finally, we remain committed to investing
behind our recent product rollouts with our advertising
campaign. Specifically, we will be increasing our commitment
to the Optimum line in Q3 to take advantage its momentum moving
into Q4 and 2013," concluded Mr. Rogers.
Sealy Corporation Acquires a Stake in Comfort Revolution
On June 13, 2012, the company
acquired a non-controlling interest in Comfort Revolution, a
company known for innovative foam products that offer an especially
comfortable night's sleep. This latest move signals Sealy is
taking a broader approach to the entire specialty products category
and is willing to invest in new technologies and expertise to drive
growth.
Results from Discontinued Operations
During the fourth quarter of 2010, the company divested the
assets of its manufacturing operations in France and Italy, which represented all of the assets in
its Europe segment. In
addition, the company discontinued manufacturing operations in
Brazil. The company has transitioned to a license arrangement
with third parties in both of these markets. These businesses
are accounted for as discontinued operations, and accordingly, the
company has reclassified its financial data for all periods
presented to reflect these actions. Unless otherwise noted,
the reported financial data pertains to Sealy's continuing
operations.
Non-GAAP Measures
Sealy provides information regarding Adjusted EBITDA and
Adjusted EBITDA Margin which are not recognized terms under GAAP
(Generally Accepted Accounting Principles) and do not purport to be
alternatives to operating income or net income as a measure of
operating performance or to cash flows from operating activities as
a measure of liquidity. The Company presents Adjusted EBITDA,
because the covenants contained in the Company's senior debt
agreements are based upon these measures and Adjusted EBITDA is a
material component of those covenants. Additionally, management
uses Adjusted EBITDA to evaluate the Company's operating
performance. The Company also presents Adjusted EBITDA
margin, which is Adjusted EBITDA reflected as a percentage of net
sales because it believes that this measure provides useful
incremental information to investors regarding the Company's
operating performance. Additionally, these measures are not
intended to be measures of available cash flow for management's
discretionary use, as these measures do not consider certain cash
requirements such as interest payments, tax payments and debt
service requirements. Because not all companies use identical
calculations, this presentation may not be comparable to other
similarly titled measures of other companies. A
reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the
Company's net income is provided in the attached
schedule.
Additionally, the Company provides certain information on a
constant currency basis which reflects a comparison of current
period results translated at the prior period currency rates.
This information is provided because the Company believes that it
provides useful incremental information to investors regarding the
Company's operating performance.
Conference Call
The Company will hold a conference call today to discuss its
fiscal second quarter 2012 results at 5:00
p.m. (Eastern Daylight Time). The conference call
can be accessed live over the phone by dialing 1-877-941-1427, or
for international callers, 1-480-629-9664. A replay will be
available one hour after the call and can be accessed by dialing
1-877-870-5176, or for international callers, 1-858-384-5517. The
passcode for the live call and the replay is 4545946. The replay
will be available until July 3,
2012.
Interested investors and other parties may also listen to a
simultaneous webcast of the conference call by logging onto the
Investors section of the Company's website at www.sealy.com. The
on-line replay will be available for a limited time beginning
immediately following the call in the Investors section of the
Company's website at www.sealy.com.
About Sealy
Sealy owns one of the largest bedding brands in the world, with
sales of $1.2 billion in fiscal 2011.
The Company manufactures and markets a broad range of mattresses
and foundations under the Sealy®, Sealy Posturepedic®, Sealy
Embody™, Optimum™ by Sealy Posturepedic®, Stearns & Foster®,
and Bassett® brands. Sealy operates 25 plants in North America, and has the largest market
share and highest consumer awareness of any bedding brand on the
continent. In the United States,
Sealy sells its products to approximately 3,000 customers with more
than 7,000 retail outlets. Sealy is also a leading supplier to the
hospitality industry. For more information, please visit
www.sealy.com.
This document contains forward-looking statements within the
meaning of the safe harbor provisions of the Securities Litigation
Reform Act of 1995. Terms such as "expect," "believe," "continue,"
and "grow," as well as similar comments, are forward-looking in
nature. Although the Company believes its growth plans are based
upon reasonable assumptions, it can give no assurances that such
expectations can be attained. Factors that could cause actual
results to differ materially from the Company's expectations
include: general business and economic conditions, competitive
factors, raw materials purchasing, and fluctuations in demand.
Please refer to the Company's Securities and Exchange Commission
filings for further information.
The condensed consolidated statements of operations and related
information presented below have been adjusted for discontinued
operations presentation for all periods presented. However,
the condensed consolidated balance sheets and statements of cash
flows have not been adjusted for such presentation.
|
|
|
|
|
|
|
|
SEALY
CORPORATION
|
CONDENSED CONSOLIDATED BALANCE
SHEET
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
May
27,
|
|
November 27,
|
|
May
29,
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
equivalents
|
$
81,201
|
|
$
107,975
|
|
$
79,292
|
|
Accounts
receivable, net of allowances for bad debts, cash discounts and
returns
|
151,265
|
|
126,494
|
|
151,755
|
|
Inventories
|
67,636
|
|
57,002
|
|
61,443
|
|
Other
current assets
|
29,779
|
|
29,275
|
|
30,439
|
|
Deferred
income tax assets
|
21,317
|
|
21,349
|
|
20,170
|
Total
current assets
|
351,198
|
|
342,095
|
|
343,099
|
Property,
plant and equipment - at cost
|
407,406
|
|
406,115
|
|
398,925
|
Less
accumulated depreciation
|
(246,546)
|
|
(239,370)
|
|
(229,905)
|
|
|
|
160,860
|
|
166,745
|
|
169,020
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
361,645
|
|
361,026
|
|
363,498
|
|
Intangible
assets, net
|
977
|
|
1,116
|
|
1,253
|
|
Deferred
income tax assets
|
2,400
|
|
1,772
|
|
5,125
|
|
Other
assets, including debt issuance costs, net
|
46,479
|
|
46,440
|
|
50,657
|
|
|
|
411,501
|
|
410,354
|
|
420,533
|
Total
assets
|
$
923,559
|
|
$
919,194
|
|
$
932,652
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current
portion - long-term obligations
|
$
1,712
|
|
$
1,584
|
|
$
2,069
|
|
Accounts
payable
|
84,027
|
|
68,774
|
|
74,046
|
|
Accrued
incentives and advertising
|
26,150
|
|
26,038
|
|
26,028
|
|
Accrued
compensation
|
21,316
|
|
17,601
|
|
17,710
|
|
Accrued
interest
|
13,646
|
|
14,074
|
|
14,205
|
|
Other
accrued liabilities
|
30,872
|
|
28,426
|
|
32,333
|
Total
current liabilities
|
177,723
|
|
156,497
|
|
166,391
|
Long-term
obligations, net of current portion
|
760,356
|
|
790,297
|
|
784,776
|
Other
liabilities
|
49,803
|
|
52,415
|
|
51,190
|
Deferred
income tax liabilities
|
326
|
|
549
|
|
842
|
|
|
|
|
|
|
|
|
Stockholders' deficit:
|
|
|
|
|
|
|
Common
stock
|
1,014
|
|
1,010
|
|
982
|
|
Additional
paid-in capital
|
947,358
|
|
935,512
|
|
924,615
|
|
Treasury
stock
|
(180)
|
|
-
|
|
-
|
|
Accumulated deficit
|
(1,013,663)
|
|
(1,016,577)
|
|
(1,007,968)
|
|
Accumulated other comprehensive income
|
822
|
|
(509)
|
|
11,824
|
Total
shareholders' deficit
|
(64,649)
|
|
(80,564)
|
|
(70,547)
|
Total
liabilties and shareholders' deficit
|
$
923,559
|
|
$
919,194
|
|
$
932,652
|
SEALY CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
May 27,
|
May 29,
|
|
|
|
2012
|
2011
|
|
|
|
|
|
|
Net
sales
|
$
312,031
|
|
$
321,296
|
Cost of
goods sold
|
185,011
|
|
196,222
|
|
|
|
|
|
|
|
Gross
profit
|
127,020
|
|
125,074
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
106,498
|
|
107,447
|
Amortization expense
|
72
|
|
72
|
Royalty
income, net of royalty expense
|
(5,590)
|
|
(4,804)
|
|
|
|
|
|
|
|
|
Income
from operations
|
26,040
|
|
22,359
|
|
|
|
|
|
|
Interest
expense
|
22,465
|
|
21,666
|
Refinancing and extinguishment of debt
|
2,012
|
|
1,236
|
Other
income, net
|
(157)
|
|
(102)
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
1,720
|
|
(441)
|
Income tax
provision (benefit)
|
138
|
|
(568)
|
Equity in
earnings of unconsolidated affiliates
|
1,233
|
|
623
|
|
|
Income
from continuing operations
|
2,815
|
|
750
|
Loss from
discontinued operations
|
(1,137)
|
|
(1,127)
|
|
|
Net income
(loss)
|
$
1,678
|
|
$
(377)
|
|
|
|
|
|
|
Earnings
(loss) per common share—Basic
|
|
|
|
|
|
Income
(loss) from continuing operations per common share
|
$
0.03
|
|
$
0.01
|
|
|
Loss from
discontinued operations per common share
|
(0.01)
|
|
(0.01)
|
(Loss)
earnings per common share—Basic
|
$
0.02
|
|
$
-
|
|
|
|
|
|
|
Earnings
(loss) per common share—Diluted
|
|
|
|
|
|
Income
(loss) from continuing operations per common share
|
$
0.03
|
|
$
0.01
|
|
|
Loss from
discontinued operations per common share
|
(0.01)
|
|
(0.01)
|
Earnings
(loss) per common share—Diluted
|
$
0.02
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
Basic
|
101,112
|
|
98,040
|
|
Diluted
|
110,128
|
|
107,933
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALY CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
May 27,
|
|
May 29,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Net
sales
|
$
624,321
|
|
$
626,825
|
Cost of
goods sold
|
374,926
|
|
383,247
|
|
|
|
|
|
|
|
Gross
profit
|
249,395
|
|
243,578
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
206,622
|
|
211,181
|
Amortization expense
|
144
|
|
144
|
Royalty
income, net of royalty expense
|
(9,320)
|
|
(9,775)
|
|
|
|
|
|
|
|
|
Income
from operations
|
51,949
|
|
42,028
|
|
|
|
|
|
|
Interest
expense
|
44,625
|
|
43,374
|
Refinancing and extinguishment of debt
|
2,925
|
|
1,236
|
Other
income, net
|
(279)
|
|
(207)
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
4,678
|
|
(2,375)
|
Income tax
provision (benefit)
|
2,665
|
|
(1,777)
|
Equity in
earnings of unconsolidated affiliates
|
2,408
|
|
1,478
|
|
|
Income
(loss) from continuing operations
|
4,421
|
|
880
|
Loss from
discontinued operations
|
(1,507)
|
|
(2,159)
|
|
|
Net income
(loss)
|
$
2,914
|
|
$
(1,279)
|
|
|
|
|
|
|
Earnings
(loss) per common share—Basic
|
|
|
|
|
|
Income
(loss) from continuing operations per common share
|
$
0.04
|
|
$
0.01
|
|
|
Loss from
discontinued operations per common share
|
(0.01)
|
|
(0.02)
|
(Loss)
earnings per common share—Basic
|
$
0.03
|
|
$
(0.01)
|
|
|
|
|
|
|
Earnings
(loss) per common share—Diluted
|
|
|
|
|
|
Income
(loss) from continuing operations per common share
|
$
0.04
|
|
$
0.01
|
|
|
Loss from
discontinued operations per common share
|
(0.01)
|
|
(0.02)
|
Earnings
(loss) per common share—Diluted
|
$
0.03
|
|
$
(0.01)
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
Basic
|
101,014
|
|
97,928
|
|
Diluted
|
109,718
|
|
107,298
|
|
|
|
|
|
|
SEALY
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
|
|
May
27,
|
|
May
29,
|
|
|
|
|
|
2012
|
|
2011
|
Operating
activities:
|
|
|
|
|
Net income
(loss)
|
$
2,914
|
|
$
(1,279)
|
|
Adjustments to reconcile net income to
|
|
|
|
|
net
cash provided by (used in) operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
12,200
|
|
12,262
|
|
|
Deferred
income taxes
|
(704)
|
|
672
|
|
|
Amortization of deferred gain on
sale-leaseback
|
(349)
|
|
(345)
|
|
|
Paid in
kind interest on convertible notes
|
11,412
|
|
9,312
|
|
|
Amortization of discount on new senior secured
notes
|
870
|
|
728
|
|
|
Amortization of debt issuance costs and
other
|
2,302
|
|
2,351
|
|
|
Impairment
charges
|
-
|
|
288
|
|
|
Share-based compensation
|
4,767
|
|
5,773
|
|
|
Loss on
sale of assets
|
279
|
|
1
|
|
|
Write-off
of debt issuance costs related to debt extinguishments
|
1,862
|
|
326
|
|
|
Loss on
repurchase of senior notes
|
1,050
|
|
617
|
|
|
Dividends
received from unconsolidated affiliates
|
1,000
|
|
1,011
|
|
|
Equity in
earnings of unconsolidated affiliates
|
(2,408)
|
|
(1,478)
|
|
|
Loss on
disposition of subsidiary
|
-
|
|
206
|
|
|
Other,
net
|
(1,141)
|
|
(291)
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(24,553)
|
|
(8,341)
|
|
|
Inventories
|
(12,543)
|
|
(3,983)
|
|
|
Prepaid
expenses and other current assets
|
212
|
|
(8,718)
|
|
|
Other
assets
|
(698)
|
|
663
|
|
|
Accounts
payable
|
15,173
|
|
7,068
|
|
|
Accrued
expenses
|
4,335
|
|
(22,474)
|
|
|
Other
liabilities
|
(2,123)
|
|
(2,015)
|
Net cash
provided by (used in) operating activities
|
13,857
|
|
(7,646)
|
Investing
activities:
|
|
|
|
|
Purchase
of property, plant and equipment
|
(6,641)
|
|
(13,239)
|
|
Proceeds
from sale of property, plant and equipment
|
2,114
|
|
22
|
|
|
|
|
Net cash
used in investing activities
|
(4,527)
|
|
(13,217)
|
Financing
activities:
|
|
|
|
|
Proceeds
from issuance of long-term obligations
|
1,525
|
|
1,643
|
|
Repayments
of long-term obligations
|
(2,093)
|
|
(2,506)
|
|
Repayment
of senior notes, including premiums paid of $1,050 and
$300
|
(36,050)
|
|
(10,300)
|
|
Repurchase
of common stock associated with vesting of employee share-based
awards
|
(188)
|
|
(67)
|
|
Exercise
of employee stock options
|
46
|
|
583
|
|
Debt
issuance costs
|
(875)
|
|
(147)
|
|
Other
|
-
|
|
(34)
|
|
|
|
|
Net cash
used in financing activities
|
(37,635)
|
|
(10,828)
|
Effect of
exchange rate changes on cash
|
1,531
|
|
1,728
|
Change in
cash and equivalents
|
(26,774)
|
|
(29,963)
|
Cash and
equivalents:
|
|
|
|
|
Beginning
of period
|
107,975
|
|
109,255
|
|
|
|
|
|
|
|
|
|
End of
period
|
$
81,201
|
|
$
79,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF EBITDA TO NET
INCOME
|
NON
GAAP MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended:
|
|
Six
Months Ended:
|
|
|
|
May 27,
|
|
May 29,
|
|
May 27,
|
|
May 29,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(in
thousands)
|
(percentage of net sales)
|
|
(in
thousands)
|
(percentage of net sales)
|
|
(in
thousands)
|
(percentage of net sales)
|
|
(in
thousands)
|
(percentage of net sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
$
1,678
|
0.5%
|
|
$
(377)
|
-0.1%
|
|
$
2,914
|
0.5%
|
|
$
(1,279)
|
-0.2%
|
Interest
expense
|
|
|
22,465
|
7.2%
|
|
21,666
|
6.7%
|
|
44,625
|
7.1%
|
|
43,374
|
6.9%
|
Income
taxes
|
|
|
138
|
0.0%
|
|
(568)
|
-0.2%
|
|
2,665
|
0.4%
|
|
(1,777)
|
-0.3%
|
Depreciation and
amortization (a)
|
|
6,142
|
2.0%
|
|
6,208
|
1.9%
|
|
12,200
|
2.0%
|
|
12,262
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,423
|
9.7%
|
|
26,929
|
8.4%
|
|
62,404
|
10.0%
|
|
52,580
|
8.4%
|
Adjustments for debt covenants:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinancing charges
|
|
2,012
|
0.6%
|
|
1,236
|
0.4%
|
|
2,925
|
0.5%
|
|
1,236
|
0.2%
|
|
Non-cash
compensation
|
|
2,271
|
0.7%
|
|
2,894
|
0.9%
|
|
4,767
|
0.8%
|
|
5,773
|
0.9%
|
|
KKR
consulting fees
|
|
130
|
0.0%
|
|
293
|
0.1%
|
|
284
|
0.0%
|
|
659
|
0.1%
|
|
Discontinued operations
|
|
1,137
|
0.4%
|
|
1,127
|
0.4%
|
|
1,507
|
0.2%
|
|
2,159
|
0.3%
|
|
Other
(various) (b)
|
|
37
|
0.0%
|
|
337
|
0.1%
|
|
495
|
0.1%
|
|
413
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
$
36,010
|
11.5%
|
|
$
32,816
|
10.2%
|
|
$
72,382
|
11.6%
|
|
$
62,820
|
10.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Excludes depreciation from discontinued operations
|
|
|
|
|
|
|
(b)
Consists of various immaterial adjustments
|
|
|
|
|
|
|
SEALY
CORPORATION
|
SHARE
COUNT RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended:
|
|
|
May 27,
2012
|
|
May 29,
2011
|
|
May 27,
2012
|
|
May 29,
2011
|
|
|
(in
thousands)
|
|
(in
thousands)
|
Numerator:
|
|
|
|
|
|
|
|
|
Net income
from continuing operations, as reported
|
|
$
2,815
|
|
$
750
|
|
$
4,421
|
|
$
880
|
Net income
attributable to participating securities
|
|
(7)
|
|
(1)
|
|
(10)
|
|
(1)
|
Net income
from continuing operations available to common
shareholders
|
|
$
2,808
|
|
$
749
|
|
$
4,411
|
|
$
879
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Denominator for basic earnings per share—weighted
average shares
|
|
101,112
|
|
98,040
|
|
101,014
|
|
97,928
|
Effect of
dilutive securities:
|
|
|
|
|
|
|
|
|
Stock
options
|
|
717
|
|
796
|
|
703
|
|
841
|
Restricted
share units
|
|
7,724
|
|
8,669
|
|
7,444
|
|
8,112
|
Other
|
|
575
|
|
428
|
|
557
|
|
417
|
Denominator for diluted earnings per share—adjusted
weighted average shares and assumed conversions
|
|
110,128
|
|
107,933
|
|
109,718
|
|
107,298
|
|
|
|
|
|
|
|
|
SEALY
CORPORATION
|
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended:
|
|
May 27,
2012
|
|
May 29,
2011
|
|
May 27,
2012
|
|
May 29,
2011
|
|
(in
thousands)
|
|
(in
thousands)
|
Cash
interest expense
|
$
14,993
|
|
$
15,419
|
|
$
30,041
|
|
$
30,984
|
Non-cash
interest expense
|
7,472
|
|
6,247
|
|
14,584
|
|
12,390
|
Total
interest expense
|
$
22,465
|
|
$
21,666
|
|
$
44,625
|
|
$
43,374
|
|
|
|
|
|
|
|
|
SOURCE Sealy Corporation