TRINITY, N.C., Sept. 27,
2012 /PRNewswire/ -- Sealy Corporation (NYSE: ZZ), a leading
global bedding manufacturer, today announced results for its third
quarter of fiscal 2012. While the Company had originally planned to
host a conference call to discuss the recent third quarter results
this afternoon at 5pm ET, due to the
recent transaction announcement with Tempur-Pedic International,
Inc., this call has been cancelled.
Fiscal 2012 3rd Quarter Recap for Continuing Operations
- Net sales increased by $31.4
million to $365.4 million, a
9.4% increase compared to the third quarter of fiscal 2011.
- Gross profit increased by $11.2
million to $148.2 million
compared to the third quarter of fiscal 2011. Gross margin
decreased 0.4 percentage points to 40.6%.
- Incremental investment in national advertising of $6.6 million over the third quarter of fiscal
2011 to support the Optimum by Sealy Posturepedic Line of specialty
bedding.
- Income from operations of $32.6
million, a decrease of $5.2
million compared to the third quarter of fiscal 2011.
- Net income from continuing operations was $0.1 million, compared to net income from
continuing operations of $7.5 million
in the third quarter of fiscal 2011.
- Adjusted EBITDA of $42.6 million,
a decrease of $5.8 million compared
to the third quarter of fiscal 2011.
"Our investments in new products and national advertising
delivered strong U.S. sales growth," stated Larry Rogers, Sealy's President and Chief
Executive Officer. "Our Adjusted EBITDA and Gross Margin
results were in line with our expectations, as we executed on our
enhanced advertising campaign surrounding our successful Sealy
Posturepedic Optimum specialty bedding launch."
Fiscal 2012 Third Quarter Results
Total U.S. net sales increased 11.2% to $286.2 million from the third quarter of fiscal
2011. Excluding third party sales from the component plants,
wholesale average unit selling prices increased 7.6%, while
wholesale unit volume increased 2.7%. The increase in our average
unit selling price was driven primarily by increases in all major
innerspring lines, improved product mix related to the newly
introduced Next Generation Stearns & Foster product line, and
our Optimum by Sealy Posturepedic line. The increase in unit volume
is attributable to increased sales volume for our Optimum by Sealy
Posturepedic, Stearns & Foster and Sealy branded product lines
partially offset by lower sales volumes for our Posturepedic
innerspring beds.
International net sales increased $2.5
million, or 3.2%, from the third quarter of fiscal 2011 to
$79.2 million. This increase was
primarily due to increased sales in Mexico and Argentina partially offset by lower sales in
Canada. In Canada, local currency sales increases of 1.2%
translated into decreases of 3.2% in U.S. dollars due to a weaker
Canadian dollar. Local currency sales performance in Canada was driven by a 3.8% increase in
average unit selling price, offset by a 2.5% decrease in unit
volume.
Gross profit increased by $11.2
million to $148.2 million from
the prior year quarter. Gross margin decreased 0.4 percentage
points to 40.6%. The decrease in percentage of net sales was
primarily due to decreases in gross profit margin in our
International operations. The gross profit margin in Canada was 40.3% as a percentage of net sales,
which represents a decrease of 2.3 percentage points. This decrease
was primarily driven by the impact of higher raw material costs.
U.S. gross profit margin decreased 0.3 percentage points to 40.5%
of net sales.
Selling, general, and administrative expenses were $120.6 million for the third quarter of fiscal
2012, an increase of $16.5 million
versus the comparable period a year earlier. As a percentage of net
sales, this expense was 33.0% and 31.2% for the quarters ended
August 26, 2012 and August 28, 2011, respectively. During the third
quarter of fiscal 2012, the Company increased its level of spending
for national advertising promoting its new Optimum by Sealy
Posturepedic line of specialty products in connection with the
Independence and Labor Day holidays
in the U.S. Operational fixed expenses have experienced increases
due to higher compensation costs coupled with higher product
development expenses. Additionally, incentive compensation and
defined contribution expenses have increased based on our higher
projected achievement of incentive targets relative to the prior
year. A decrease in non cash compensation and promotional costs
partially offset these increases.
Income from operations for the third quarter of fiscal 2012
decreased 13.8% or $5.2 million to
$32.6 million. This year's results
included $6.6 million of higher
national advertising costs, which primarily related to the rollout
of our Optimum by Sealy Posturepedic line as well as higher
compensation related expense.
Net income from continuing operations for the third quarter was
$0.1 million.
Fiscal 2012 Nine Month Results
Net sales for the nine months ended August 26, 2012 increased 3.0% to $989.8 million from $960.9
million for the comparable period a year earlier. Gross
profit was $397.6 million, or 40.2%
of net sales, versus $380.6 million,
or 39.6% of net sales, for the comparable period a year
earlier. Net income from continuing operations was
$4.5 million, versus net income from
continuing operations of $8.4 million
in the prior year period. Adjusted EBITDA increased 3.4% to
$115.0 million, or 11.6% of net
sales, from $111.2 million, or 11.6%
of net sales, compared to the same period in the prior
year.
As of August 26, 2012, the
Company's debt net of cash was $671.7
million and Net Debt to Adjusted EBITDA ratio (excluding the
Convertible Payment In Kind Notes) was 3.78x, compared to 4.02x at
November 27, 2011.
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 EBTIDA 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.
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 11,000 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," and
"continue," as well as similar comments, are forward-looking in
nature. Factors that could cause actual results to differ
materially from the Company's expectations include: the
consummation of the Company's transaction with Tempur-Pedic
International, Inc., 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)
|
|
|
|
|
|
|
|
|
|
|
|
August
26,
|
|
November 27,
|
|
August
28,
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
equivalents
|
$
88,833
|
|
$
107,975
|
|
$
85,934
|
|
Accounts
receivable (net of allowance for doubtful accounts,
discounts and returns, 2012—$31,390;
2011—$30,104)
|
177,954
|
|
126,494
|
|
171,495
|
|
Inventories
|
70,819
|
|
57,002
|
|
58,491
|
|
Other
current assets
|
21,345
|
|
29,275
|
|
25,385
|
|
Deferred
income tax assets
|
21,770
|
|
21,349
|
|
21,823
|
Total
current assets
|
380,721
|
|
342,095
|
|
363,128
|
|
|
|
|
|
|
|
|
Property,
plant and equipment
|
418,124
|
|
406,115
|
|
404,645
|
Less
accumulated depreciation
|
(253,445)
|
|
(239,370)
|
|
(235,162)
|
|
|
|
164,679
|
|
166,745
|
|
169,483
|
Goodwill
|
363,305
|
|
361,026
|
|
363,340
|
Intangible
assets, net
|
16,001
|
|
1,116
|
|
1,190
|
Deferred
income tax assets
|
1,377
|
|
1,772
|
|
2,360
|
Other
assets, including debt issuance costs, net
|
45,426
|
|
46,440
|
|
48,351
|
|
|
|
426,109
|
|
410,354
|
|
415,241
|
Total
assets
|
$
971,509
|
|
$
919,194
|
|
$
947,852
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current
portion - long-term obligations
|
$
2,324
|
|
$
1,584
|
|
$
1,249
|
|
Accounts
payable
|
96,184
|
|
68,774
|
|
75,466
|
|
Accrued
incentives and advertising
|
29,267
|
|
26,038
|
|
27,376
|
|
Accrued
compensation
|
26,224
|
|
17,601
|
|
15,998
|
|
Accrued
interest
|
15,369
|
|
14,074
|
|
16,873
|
|
Other
accrued liabilities
|
32,516
|
|
28,426
|
|
31,414
|
Total
current liabilities
|
201,884
|
|
156,497
|
|
168,376
|
|
|
|
|
|
|
|
|
Long-term
obligations, net of current portion
|
758,204
|
|
790,297
|
|
784,905
|
Other
liabilities
|
51,927
|
|
52,415
|
|
50,851
|
Deferred
income tax liabilities
|
326
|
|
549
|
|
823
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
12,131
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Stockholders' deficit:
|
|
|
|
|
|
|
Common
stock, $0.01 par value; Authorized 600,000 shares
|
|
|
|
|
|
|
Issued and
outstanding: 2012—104,066; 2011—100,916
|
1,043
|
|
1,010
|
|
1,009
|
|
Additional
paid-in capital
|
953,598
|
|
935,512
|
|
932,555
|
|
Treasury
stock, at cost: 2012—102; 2011—0
|
(180)
|
|
-
|
|
-
|
|
Accumulated deficit
|
(1,013,769)
|
|
(1,016,577)
|
|
(1,001,370)
|
|
Accumulated other comprehensive income (loss),
net
|
6,345
|
|
(509)
|
|
10,703
|
Total
stockholders' deficit
|
(52,963)
|
|
(80,564)
|
|
(57,103)
|
Total
liabilities and stockholders' deficit
|
$
971,509
|
|
$
919,194
|
|
$
947,852
|
SEALY
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
August
26,
|
August
28,
|
|
|
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
365,434
|
|
$
334,067
|
Cost of
goods sold
|
217,229
|
|
197,067
|
|
Gross
profit
|
148,205
|
|
137,000
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
120,632
|
|
104,127
|
Amortization expense
|
73
|
|
73
|
Royalty
income, net of royalty expense
|
(5,105)
|
|
(5,021)
|
|
|
|
|
|
|
|
|
Income
from operations
|
32,605
|
|
37,821
|
|
|
|
|
|
|
Interest
expense
|
20,929
|
|
21,935
|
Refinancing and extinguishment of debt
|
416
|
|
28
|
Other
income, net
|
(131)
|
|
(130)
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
11,391
|
|
15,988
|
Income tax
provision
|
12,156
|
|
9,556
|
Equity in
earnings of unconsolidated affiliates
|
875
|
|
1,057
|
|
|
Income
from continuing operations
|
110
|
|
7,489
|
Loss from
discontinued operations
|
(307)
|
|
(891)
|
|
|
Net (loss)
income
|
(197)
|
|
6,598
|
Net loss
attributable to noncontrolling interests
|
91
|
|
-
|
|
|
Net (loss)
income attributable to common shareholders
|
$
(106)
|
|
$
6,598
|
|
|
|
|
|
|
Earnings
(loss) per common share attributable to common
shareholders—Basic
|
|
|
|
|
Income
from continuing operations per common share
|
$
-
|
|
$
0.07
|
|
Loss from
discontinued operations per common share
|
-
|
|
-
|
Earnings
(loss) per common share attributable to common
shareholders—Basic
|
$
-
|
|
$
0.07
|
|
|
|
|
|
|
Earnings
(loss) per common share attributable to common
shareholders—Diluted
|
|
|
|
|
Income
from continuing operations per common share
|
$
-
|
|
$
0.04
|
|
Loss from
discontinued operations per common share
|
-
|
|
-
|
Earnings
(loss) per common share attributable to common
shareholders—Diluted
|
$
-
|
|
$
0.04
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
Basic
|
103,534
|
|
100,334
|
|
Diluted
|
109,800
|
|
308,566
|
SEALY
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
August
26,
|
|
August
28,
|
|
2012
|
|
2011
|
|
|
|
|
Net
sales
|
$
989,755
|
|
$
960,892
|
Cost of
goods sold
|
592,155
|
|
580,314
|
|
|
|
|
Gross profit
|
397,600
|
|
380,578
|
|
|
|
|
Selling,
general and administrative expenses
|
327,254
|
|
315,308
|
Amortization expense
|
217
|
|
217
|
Royalty
income, net of royalty expense
|
(14,425)
|
|
(14,796)
|
|
|
|
|
Income from operations
|
84,554
|
|
79,849
|
|
|
|
|
Interest
expense
|
65,554
|
|
65,309
|
Refinancing and extinguishment of
debt
|
3,341
|
|
1,264
|
Other
income, net
|
(410)
|
|
(337)
|
|
|
|
|
Income before income taxes
|
16,069
|
|
13,613
|
Income tax
provision
|
14,821
|
|
7,779
|
Equity in
earnings of unconsolidated affiliates
|
3,283
|
|
2,535
|
Income from continuing operations
|
4,531
|
|
8,369
|
Loss from
discontinued operations
|
(1,814)
|
|
(3,050)
|
|
|
|
|
Net income
|
2,717
|
|
5,319
|
Net loss
attributable to noncontrolling interests
|
91
|
|
-
|
Net income attributable to common shareholders
|
$
2,808
|
|
$
5,319
|
|
|
|
|
Earnings
per common share attributable to common
shareholders—Basic
|
|
|
|
Income from continuing operations per
common share
|
$
0.05
|
|
$
0.08
|
Loss from discontinued operations per
common share
|
(0.02)
|
|
(0.03)
|
Earnings
per common share attributable to common
shareholders—Basic
|
$
0.03
|
|
$
0.05
|
|
|
|
|
Earnings
per common share attributable to common
shareholders—Diluted
|
|
|
|
Income from continuing operations per
common share
|
$
0.04
|
|
$
0.08
|
Loss from discontinued operations per
common share
|
(0.02)
|
|
(0.01)
|
Earnings
per common share attributable to common
shareholders—Diluted
|
$
0.02
|
|
$
0.07
|
|
|
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
Basic
|
101,849
|
|
98,725
|
Diluted
|
109,329
|
|
304,659
|
SEALY
CORPORATION
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
August 26,
|
|
August 28,
|
|
|
|
|
|
2012
|
|
2011
|
Operating
activities:
|
|
|
|
|
Net
income
|
$
2,717
|
|
$
5,319
|
|
Adjustments to reconcile net income to cash provided
by (used in) operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
18,753
|
|
18,001
|
|
|
Deferred
income taxes
|
348
|
|
946
|
|
|
Amortization of deferred gain on
sale-leaseback
|
(260)
|
|
(515)
|
|
|
Paid in
kind interest on convertible notes
|
17,064
|
|
14,551
|
|
|
Amortization of discount on new senior secured
notes
|
1,250
|
|
1,101
|
|
|
Amortization of debt issuance costs and
other
|
3,139
|
|
3,511
|
|
|
Impairment
charges
|
-
|
|
288
|
|
|
Share-based compensation
|
6,566
|
|
9,239
|
|
|
Loss
(gain) on sale of assets
|
197
|
|
(30)
|
|
|
Write-off
of debt issuance costs related to debt extinguishments
|
1,862
|
|
643
|
|
|
Loss on
repurchase of senior notes
|
1,050
|
|
300
|
|
|
Dividends
received from unconsolidated affiliates
|
2,500
|
|
1,011
|
|
|
Equity in
earnings of unconsolidated affiliates
|
(3,283)
|
|
(2,535)
|
|
|
Loss on
disposition of subsidiary
|
-
|
|
206
|
|
|
Other,
net
|
(2,252)
|
|
(532)
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(45,686)
|
|
(29,787)
|
|
|
Inventories
|
(20,201)
|
|
(1,224)
|
|
|
Other
current assets
|
6,554
|
|
(2,750)
|
|
|
Other
assets
|
482
|
|
2,361
|
|
|
Accounts
payable
|
25,321
|
|
9,255
|
|
|
Accrued
expenses
|
15,101
|
|
(20,338)
|
|
|
Other
liabilities
|
180
|
|
(2,159)
|
|
|
|
|
Net cash
provided by operating activities
|
31,402
|
|
6,862
|
Investing
activities:
|
|
|
|
|
Purchase
of property, plant and equipment
|
(10,011)
|
|
(17,692)
|
|
Acquisition of Comfort Revolution, inclusive of cash
acquired of $159
|
159
|
|
-
|
|
Proceeds
from sale of property, plant and equipment
|
2,544
|
|
24
|
|
|
|
|
Net cash
used in investing activities
|
(7,308)
|
|
(17,668)
|
Financing
activities:
|
|
|
|
|
Proceeds
from issuance of long-term obligations
|
1,269
|
|
2,568
|
|
Repayments
of long-term obligations
|
(9,009)
|
|
(3,882)
|
|
Repayment
of senior secured notes, including premium of
$1,050
|
(36,050)
|
|
(10,300)
|
|
Repurchase
of common stock associated with vesting of employee share-based
awards
|
(2,905)
|
|
(3,674)
|
|
Exercise
of employee stock options
|
62
|
|
621
|
|
Debt
issuance costs
|
(1,120)
|
|
(147)
|
|
Other
|
-
|
|
(34)
|
|
|
|
|
Net cash
used in financing activities
|
(47,753)
|
|
(14,848)
|
Effect of
exchange rate changes on cash
|
4,517
|
|
2,333
|
Change in
cash and equivalents
|
(19,142)
|
|
(23,321)
|
Cash and
equivalents:
|
|
|
|
|
Beginning
of period
|
107,975
|
|
109,255
|
|
End of
period
|
$
88,833
|
|
$
85,934
|
|
|
|
|
|
|
|
|
Noncash
investing transaction:
|
|
|
|
|
Investment
in Comfort Revolution
|
$
10,000
|
|
$
-
|
|
Inventory
items transferred to property, plant and equipment
|
$
8,454
|
|
$
-
|
RECONCILIATION OF EBITDA TO NET INCOME
NON GAAP MEASURE
|
|
|
|
|
|
|
|
|
|
Three
Months Ended:
|
|
Nine
Months Ended:
|
|
|
|
August
26, 2012
|
|
August
28, 2011
|
|
August
26, 2012
|
|
August
28, 2011
|
|
|
|
(in
thousands)
|
|
(in
thousands)
|
Net (loss)
income
|
$
(197)
|
|
$
6,598
|
|
$
2,717
|
|
$
5,319
|
Interest
expense
|
20,929
|
|
21,935
|
|
65,554
|
|
65,309
|
Income
taxes
|
12,156
|
|
9,556
|
|
14,821
|
|
7,779
|
Depreciation and
amortization
|
6,554
|
|
5,739
|
|
18,753
|
|
18,001
|
|
|
|
|
|
|
|
|
|
|
|
39,442
|
|
43,828
|
|
101,845
|
|
96,408
|
Adjustments for debt covenants:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinancing charges
|
416
|
|
28
|
|
3,341
|
|
1,264
|
|
Non-cash
compensation
|
1,799
|
|
3,466
|
|
6,566
|
|
9,239
|
|
KKR
consulting fees
|
130
|
|
323
|
|
284
|
|
981
|
|
Discontinued operations
|
307
|
|
891
|
|
1,814
|
|
3,050
|
|
Other
(various) (a)
|
487
|
|
(149)
|
|
1,113
|
|
246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
42,581
|
|
$
48,387
|
|
$
114,963
|
|
$
111,188
|
|
|
|
|
|
|
|
|
|
|
(a)
Consists of various immaterial adjustments
|
|
|
|
|
SEALY
CORPORATION
|
SHARE
COUNT RECONCILIATION
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
August
26, 2012
|
|
August
28, 2011
|
|
August
26, 2012
|
|
August
28, 2011
|
|
(in
thousands)
|
|
(in
thousands)
|
Numerator:
|
|
|
|
|
|
|
|
Net income
from continuing operations, as reported
|
$
201
|
|
$
7,489
|
|
$
4,622
|
|
$
8,369
|
Net income
attributable to participating securities
|
(1)
|
|
(4)
|
|
(12)
|
|
(7)
|
Interest
on convertible notes
|
-
|
|
5,239
|
|
-
|
|
14,551
|
Net income
from continuing operations available to common
shareholders
|
$
200
|
|
$
12,724
|
|
$
4,610
|
|
$
22,913
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
Denominator for basic earnings per share—weighted
average shares
|
103,534
|
|
100,334
|
|
101,849
|
|
98,725
|
Effect of
dilutive securities:
|
|
|
|
|
|
|
|
Convertible debt
|
-
|
|
200,455
|
|
-
|
|
196,576
|
Stock
options
|
679
|
|
747
|
|
693
|
|
811
|
Restricted
share units
|
4,977
|
|
6,561
|
|
6,213
|
|
8,117
|
Other
|
610
|
|
469
|
|
574
|
|
430
|
Denominator for diluted earnings per share—adjusted
weighted average shares and assumed conversions
|
109,800
|
|
308,566
|
|
109,329
|
|
304,659
|
SEALY
CORPORATION
|
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
Three
Months Ended:
|
|
Nine
Months Ended:
|
|
August
26, 2012
|
|
August
28, 2011
|
|
August
26, 2012
|
|
August
28, 2011
|
Cash
interest expense
|
$
14,061
|
|
$
15,161
|
|
$
44,102
|
|
$
46,145
|
Non-cash
interest expense
|
6,868
|
|
6,774
|
|
21,452
|
|
19,164
|
|
$
20,929
|
|
$
21,935
|
|
$
65,554
|
|
$
65,309
|
SOURCE Sealy Corporation