-- Record Adjusted EPS; 20% Increase Over PY
-- Adjusted Operating Income Up 160 bps
CALHOUN, Georgia, July 31, 2014 /PRNewswire/ -- Mohawk
Industries, Inc. (NYSE:MHK) today announced 2014 second quarter
net earnings of $153 million and
diluted earnings per share (EPS) of $2.08. Excluding unusual charges, net earnings
were $162 million and EPS was
$2.21, a 20% increase over last
year's second quarter adjusted EPS and the highest quarterly
adjusted EPS in the company's history. Net sales for the second
quarter of 2014 were $2.05 billion,
an increase of approximately 4% versus the prior year's second
quarter or 3% on a constant exchange basis. For the second quarter
of 2013, net sales were $1.98
billion, net earnings were $85
million and EPS was $1.16;
excluding unusual charges, net earnings were $134 million and EPS was $1.84.
For the six months ending June 28,
2014, net sales were $3.9
billion, an increase of 12% versus the prior year. Net
earnings and EPS for the six-month period were $234 million and $3.19, respectively. Net earnings excluding
unusual charges were $252 million and
adjusted EPS was $3.44, an increase
of 26% over the six-month adjusted EPS results in 2013. For the six
months ending June 29, 2013, net
sales were $3.5 billion, net earnings
were $135 million and EPS was
$1.89. Excluding unusual charges, net
earnings and EPS were $195 million
and $2.73, respectively.
Commenting on Mohawk Industries' second quarter performance,
Jeffrey S. Lorberbaum, Chairman and
CEO, stated, "Our adjusted operating income increased 160 basis
points as productivity initiatives, cost reductions, price
increases and manufacturing consolidation drove higher earnings
across the business. Top line growth was less than we anticipated
due to slower improvement in U.S. housing and remodeling; however,
profits were in line with expectations as a result of successful
product introductions, productivity improvements and better cost
controls. We reduced SG&A compared to last year across the
enterprise, even as we reinvested into the business to promote new
product collections and enhance our sales strategies. We are
continuing to invest in our acquisitions to improve profitability,
increase mix and streamline the business; and we anticipate that
these actions will result in even higher earnings as the European
and Russian economies improve."
Carpet segment net sales for the quarter were $780 million, up 1% over last year. Adjusted
operating income for the segment rose 15% as a result of increased
productivity, improved quality and cost reductions in operations
and administration. Mohawk's patented Continuum technology is
stimulating growth in our new polyester collections, and our
state-of-the-art yarn project to support it is 75% complete. We are
also expanding the distribution of our premium Karastan carpets by
providing a broader offering and increasing the number of retailers
selling our high-end brand. Commercial orders are growing now that
we have substantially completed the product transition to our own
fibers, and we have reorganized our commercial sales organization
into smaller regions segmented by customer type with a complete
portfolio for each channel. The carpet price increase announced in
April was fully implemented at the end of the quarter to cover raw
material inflation.
Ceramic segment net sales were $797
million, up 5% over last year as reported and with a
constant exchange rate. The segment's adjusted operating income
rose 21% due to productivity, volume, pricing and mix. In the U.S.,
the business benefited from innovative new collections that are
leading the market shift to larger sizes, planks and rectangles.
The new ceramic production line in Dallas has begun operation, and the additional
capacity will satisfy the increasing demand for ceramic wood planks
and larger sizes. Sales in Mexico
are growing significantly with expanded distribution of new
products from our Salamanca plant
that provide market-leading style and value with superior
availability. In Russia, sales and
profitability increased on a local basis, but the decline of the
ruble reduced our sales and income when translated to U.S. dollars.
In the region, specialized products tailored for the new
construction and DIY channels drove growth, offsetting slower
retail sales. In Europe, sales and
margins continue to progress due to increased sales outside of
Southern Europe, as well as growth
in Spain and improved mix from
larger sizes with unique styling.
Laminate and Wood segment sales were $501
million, up 6% over last year, or 3% on a constant exchange
rate. Adjusted operating income for the segment increased 21% from
acquisition synergies, productivity improvements and cost
reductions. In the U.S., greater participation in new construction
increased sales of wood flooring. The second wood flooring price
increase this year was implemented in July to cover higher wood and
transportation costs. In Europe,
stronger sales in the Nordic countries and the U.K. outpaced the
softer Western European markets, with growth in the wood and luxury
vinyl tile categories offsetting slower laminate sales. At the
recently acquired plant in the Czech
Republic, new equipment has been installed to produce higher
value wood flooring under the Pergo and Quick-Step brands for the
European and Russian markets. The segment's insulation business
continued to expand, supported by additional production in our new
French facility. The integration of the Unilin and Spano businesses
progressed with a single sales force providing a comprehensive
product offering for all customers.
During the period, we once again demonstrated our ability to
deliver earnings growth through sales improvement, productivity
initiatives and leveraging acquisitions. In each of our segments,
we are optimizing the efficiency of our operations, the advantages
of our leading market positions, the breadth of our distribution
and the strength of our brands to grow our business. We anticipate
that our sales will strengthen as we move through the second half
of the year supported by continued U.S. job creation and improved
economic growth. In the third quarter, we anticipate further
improvement in the U.S. market with limited growth in Europe and Russia. With these factors, our guidance for
third quarter earnings is $2.38 to
$2.47 per share and, for the full year, $8.09 to $8.25 per share, excluding any
restructuring charges. We remain committed to enhancing Mohawk's
results, and we are optimistic about the improvement of the floor
covering industry and our participation in it.
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,
Karastan, Lees, Marazzi, Kerama 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, China, Europe, India, Malaysia, Mexico, 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 in raw
material prices and other input costs; 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,
August 1, 2014 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 # 65483474. A replay will be available until
Friday August 15, 2014 by dialing
+1-855-859-2056 for US/local calls and +1-404-537-3406 for
International/Local calls and entering Conference ID #
65483474.
MOHAWK INDUSTRIES,
INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(Amounts in
thousands, except per share data)
|
|
June 28,
2014
|
|
June 29,
2013
|
|
June 28,
2014
|
|
June 29,
2013
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,048,247
|
|
1,976,299
|
|
3,861,342
|
|
3,463,114
|
Cost of
sales
|
|
1,473,435
|
|
1,462,243
|
|
2,805,175
|
|
2,571,992
|
Gross profit
|
|
574,812
|
|
514,056
|
|
1,056,167
|
|
891,122
|
Selling, general and
administrative expenses
|
|
352,564
|
|
380,858
|
|
703,184
|
|
671,082
|
Operating
income
|
|
222,248
|
|
133,198
|
|
352,983
|
|
220,040
|
Interest
expense
|
|
20,702
|
|
25,312
|
|
42,798
|
|
44,468
|
Other (income)
expense, net
|
|
(1,555)
|
|
(1,097)
|
|
3,335
|
|
5,290
|
Earnings from continuing operations before income taxes
|
|
203,101
|
|
108,983
|
|
306,850
|
|
170,282
|
Income tax
expense
|
|
50,240
|
|
23,240
|
|
72,936
|
|
33,972
|
Earnings
from continuing operations
|
|
152,861
|
|
85,743
|
|
233,914
|
|
136,310
|
Loss from
discontinued operations, net of income tax benefit of
$485
|
|
-
|
|
(1,361)
|
|
-
|
|
(1,361)
|
Net
earnings including noncontrolling interest
|
|
152,861
|
|
84,382
|
|
233,914
|
|
134,949
|
Net earnings
(loss) attributable to noncontrolling interest
|
|
111
|
|
(190)
|
|
83
|
|
(118)
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
$
152,750
|
|
84,572
|
|
233,831
|
|
135,067
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
2.10
|
|
1.19
|
|
3.21
|
|
1.92
|
Loss from
discontinued operations, net of income taxes
|
|
-
|
|
(0.02)
|
|
-
|
|
(0.02)
|
Basic earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
2.10
|
|
1.17
|
|
3.21
|
|
1.90
|
Weighted-average
common shares outstanding - basic
|
|
72,832
|
|
72,406
|
|
72,788
|
|
70,907
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to Mohawk Industries, Inc.
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
2.08
|
|
1.18
|
|
3.19
|
|
1.91
|
Loss from
discontinued operations, net of income taxes
|
|
-
|
|
(0.02)
|
|
-
|
|
(0.02)
|
Diluted earnings per
share attributable to Mohawk Industries, Inc.
|
|
$
2.08
|
|
1.16
|
|
3.19
|
|
1.89
|
Weighted-average
common shares outstanding - diluted
|
|
73,297
|
|
72,867
|
|
73,302
|
|
71,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
83,754
|
|
80,643
|
|
164,738
|
|
140,992
|
Capital
expenditures
|
|
$
127,616
|
|
82,815
|
|
249,697
|
|
146,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheet Data
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 28,
2014
|
|
June 29,
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$
70,044
|
|
168,745
|
Receivables, net
|
|
|
|
|
|
1,261,808
|
|
1,145,550
|
Inventories
|
|
|
|
|
|
1,644,768
|
|
1,591,552
|
Prepaid expenses and other current assets
|
|
|
|
|
|
267,210
|
|
229,859
|
Deferred income taxes
|
|
|
|
|
|
135,259
|
|
134,489
|
Total
current assets
|
|
|
|
|
|
3,379,089
|
|
3,270,195
|
Property, plant and
equipment, net
|
|
|
|
|
|
2,830,202
|
|
2,594,256
|
Goodwill
|
|
|
|
|
|
1,730,713
|
|
1,690,622
|
Intangible assets,
net
|
|
|
|
|
|
792,260
|
|
800,529
|
Deferred income taxes
and other non-current assets
|
|
|
|
|
|
149,417
|
|
153,362
|
Total assets
|
|
|
|
|
|
$
8,881,681
|
|
8,508,964
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt and commercial paper
|
|
|
|
|
|
$
619,229
|
|
83,171
|
Accounts payable and
accrued expenses
|
|
|
|
|
|
1,253,291
|
|
1,261,791
|
Total
current liabilities
|
|
|
|
|
|
1,872,520
|
|
1,344,962
|
Long-term debt, less
current portion
|
|
|
|
|
|
1,807,609
|
|
2,450,584
|
Deferred income taxes
and other long-term liabilities
|
|
|
|
|
|
528,252
|
|
609,125
|
Total
liabilities
|
|
|
|
|
|
4,208,381
|
|
4,404,671
|
Total stockholders'
equity
|
|
|
|
|
|
4,673,300
|
|
4,104,293
|
Total liabilities and stockholders' equity
|
|
|
|
|
|
$
8,881,681
|
|
8,508,964
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
|
Three Months
Ended
|
|
As of or for the Six
Months Ended
|
(Amounts in
thousands)
|
|
June 28,
2014
|
|
June 29,
2013
|
|
June 28,
2014
|
|
June 29,
2013
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
Carpet
|
|
$
780,308
|
|
770,868
|
|
1,455,234
|
|
1,466,202
|
Ceramic
|
|
796,724
|
|
760,168
|
|
1,491,818
|
|
1,172,049
|
Laminate and Wood
|
|
501,257
|
|
470,980
|
|
969,265
|
|
875,455
|
Intersegment sales
|
|
(30,042)
|
|
(25,717)
|
|
(54,975)
|
|
(50,592)
|
Consolidated net sales
|
|
$
2,048,247
|
|
1,976,299
|
|
3,861,342
|
|
3,463,114
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
Carpet
|
|
$
62,826
|
|
54,862
|
|
97,097
|
|
80,100
|
Ceramic
|
|
106,407
|
|
46,304
|
|
167,066
|
|
76,280
|
Laminate and Wood
|
|
60,843
|
|
41,362
|
|
104,962
|
|
80,055
|
Corporate and eliminations
|
|
(7,828)
|
|
(9,330)
|
|
(16,142)
|
|
(16,395)
|
Consolidated operating income
|
|
$
222,248
|
|
133,198
|
|
352,983
|
|
220,040
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
Carpet
|
|
|
|
|
|
$
1,960,106
|
|
1,803,212
|
Ceramic
|
|
|
|
|
|
3,900,387
|
|
3,832,888
|
Laminate and Wood
|
|
|
|
|
|
2,818,129
|
|
2,691,553
|
Corporate and eliminations
|
|
|
|
|
|
203,059
|
|
181,311
|
Consolidated assets
|
|
|
|
|
|
$
8,881,681
|
|
8,508,964
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
June 28,
2014
|
|
June 29,
2013
|
|
June 28,
2014
|
|
June 29,
2013
|
Net earnings
attributable to Mohawk Industries, Inc.
|
|
$
152,750
|
|
84,572
|
|
233,831
|
|
135,067
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
|
11,169
|
|
41,321
|
|
22,894
|
|
51,177
|
Acquisitions purchase
accounting (inventory step-up)
|
|
-
|
|
18,744
|
|
-
|
|
18,744
|
Discontinued
operations
|
|
-
|
|
1,845
|
|
-
|
|
1,845
|
Interest on 3.85%
senior notes
|
|
-
|
|
-
|
|
-
|
|
3,559
|
Income
taxes
|
|
(2,229)
|
|
(12,668)
|
|
(4,620)
|
|
(15,448)
|
Adjusted net earnings
attributable to Mohawk Industries, Inc.
|
|
$
161,690
|
|
133,814
|
|
252,105
|
|
194,944
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to Mohawk Industries,
Inc.
|
|
2.21
|
|
1.84
|
|
3.44
|
|
2.73
|
Weighted-average
common shares outstanding - diluted
|
|
73,297
|
|
72,867
|
|
73,302
|
|
71,405
|
|
Reconciliation of
Total Debt to Net Debt
|
(Amounts in
thousands)
|
|
|
June 28,
2014
|
Current portion of
long-term debt and commercial paper
|
$
619,229
|
Long-term debt, less
current portion
|
1,807,609
|
Less: Cash and cash
equivalents
|
70,044
|
Net Debt
|
$
2,356,794
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
(Amounts in
thousands)
|
Three Months
Ended
|
|
Trailing Twelve
Months
Ended
|
|
September 28,
2013
|
|
December 31,
2013
|
|
March 29,
2014
|
|
June 28,
2014
|
|
June 28,
2014
|
Operating
income
|
$
175,903
|
|
150,988
|
|
130,735
|
|
222,248
|
|
679,874
|
Other (expense)
income
|
(1,168)
|
|
(2,656)
|
|
(4,890)
|
|
1,555
|
|
(7,159)
|
|
|
|
|
|
|
|
|
|
|
Net (earnings) loss attributable to noncontrolling
interest
|
(491)
|
|
(132)
|
|
28
|
|
(111)
|
|
(706)
|
Depreciation and
amortization
|
81,550
|
|
86,329
|
|
80,984
|
|
83,754
|
|
332,617
|
EBITDA
|
255,794
|
|
234,529
|
|
206,857
|
|
307,446
|
|
1,004,626
|
Restructuring,
acquisition and integration-related costs
|
24,431
|
|
37,812
|
|
11,725
|
|
11,169
|
|
85,137
|
Acquisitions purchase
accounting (inventory step-up)
|
12,297
|
|
-
|
|
-
|
|
-
|
|
12,297
|
Adjusted
EBITDA
|
$
292,522
|
|
272,341
|
|
218,582
|
|
318,615
|
|
1,102,060
|
|
|
|
|
|
|
|
|
|
|
Net Debt to
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
2.1
|
|
|
|
Reconciliation of
Net Sales to Net Sales on a Constant Exchange Rate
|
(Amounts in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
June 28,
2014
|
|
June 29,
2013
|
|
Net sales
|
$
2,048,247
|
|
1,976,299
|
|
Adjustment to net
sales on a constant exchange rate
|
(14,171)
|
|
-
|
|
Net sales on a
constant exchange rate
|
$
2,034,076
|
|
1,976,299
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange
Rate
|
(Amounts in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
Ceramic
|
June 28,
2014
|
|
June 29,
2013
|
|
Net sales
|
$
796,724
|
|
760,168
|
|
Adjustment to segment
net sales on a constant exchange rate
|
2,144
|
|
-
|
|
Segment net sales on
a constant exchange rate
|
$
798,868
|
|
760,168
|
|
|
|
|
|
|
Reconciliation of
Segment Net Sales to Segment Net Sales on a Constant Exchange
Rate
|
(Amounts in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
Laminate and
Wood
|
June 28,
2014
|
|
June 29,
2013
|
|
Net sales
|
$
501,257
|
|
470,980
|
|
Adjustment to segment
net sales on a constant exchange rate
|
(16,315)
|
|
-
|
|
Segment net sales on
a constant exchange rate
|
$
484,942
|
|
470,980
|
|
|
|
|
|
|
Reconciliation of
Gross Profit to Adjusted Gross Profit
|
(Amounts in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 28,
2014
|
|
June 29,
2013
|
|
Gross
Profit
|
$
574,812
|
|
514,056
|
|
Adjustments to gross
profit:
|
|
|
|
|
Restructuring and
integration-related costs
|
6,755
|
|
14,334
|
|
Acquisitions purchase
accounting (inventory step-up)
|
-
|
|
18,744
|
|
Adjusted gross
profit
|
$
581,567
|
|
547,134
|
|
Adjusted
gross profit as a percent of net sales
|
28.4%
|
|
27.7%
|
|
|
|
|
|
|
Reconciliation of
Selling, General and Administrative Expenses to Adjusted Selling,
General and Administrative Expenses
|
(Amounts in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 28,
2014
|
|
June 29,
2013
|
|
Selling, general and
administrative expenses
|
$
352,564
|
|
380,858
|
|
Adjustments to
selling, general and administrative expenses:
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
(4,414)
|
|
(26,987)
|
|
Adjusted
selling, general and administrative expenses
|
$
348,150
|
|
353,871
|
|
Adjusted selling,
general and administrative expenses as a percent of net
sales
|
17.0%
|
|
17.9%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted Operating Income
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 28,
2014
|
|
June 29,
2013
|
|
June 28,
2014
|
|
June 29,
2013
|
|
Operating
income
|
$
222,248
|
|
133,198
|
|
352,983
|
|
220,040
|
|
Adjustments to
operating income:
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
11,169
|
|
41,321
|
|
22,895
|
|
51,177
|
|
Acquisitions purchase
accounting (inventory step-up)
|
-
|
|
18,744
|
|
-
|
|
18,744
|
|
Adjusted
operating income
|
$
233,417
|
|
193,263
|
|
375,878
|
|
289,961
|
|
Adjusted
operating margin as a percent of net sales
|
11.4%
|
|
9.8%
|
|
9.7%
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Carpet
|
June 28,
2014
|
|
June 29,
2013
|
|
June 28,
2014
|
|
June 29,
2013
|
|
Operating
income
|
$
62,826
|
|
54,862
|
|
97,097
|
|
80,100
|
|
Adjustment to segment
operating income:
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
-
|
|
-
|
|
-
|
|
6,217
|
|
Adjusted
segment operating income
|
$
62,826
|
|
54,862
|
|
97,097
|
|
86,317
|
|
Adjusted
operating margin as a percent of net sales
|
8.1%
|
|
7.1%
|
|
6.7%
|
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Ceramic
|
June 28,
2014
|
|
June 29,
2013
|
|
June 28,
2014
|
|
June 29,
2013
|
|
Operating
income
|
$
106,407
|
|
46,304
|
|
167,066
|
|
76,280
|
|
Adjustments to
segment operating income:
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
196
|
|
23,361
|
|
2,177
|
|
23,823
|
|
Acquisitions purchase
accounting (inventory step-up)
|
-
|
|
18,744
|
|
-
|
|
18,744
|
|
Adjusted
segment operating income
|
$
106,603
|
|
88,409
|
|
169,243
|
|
118,847
|
|
Adjusted
operating margin as a percent of net sales
|
13.4%
|
|
11.6%
|
|
11.3%
|
|
10.1%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Income to Adjusted Segment Operating
Income
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Laminate and
Wood
|
June 28,
2014
|
|
June 29,
2013
|
|
June 28,
2014
|
|
June 29,
2013
|
|
Operating
income
|
$
60,843
|
|
41,362
|
|
104,962
|
|
80,055
|
|
Adjustment to segment
operating income:
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
10,773
|
|
17,960
|
|
20,348
|
|
21,137
|
|
Adjusted
segment operating income
|
$
71,616
|
|
59,322
|
|
125,310
|
|
101,192
|
|
Adjusted
operating margin as a percent of net sales
|
14.3%
|
|
12.6%
|
|
12.9%
|
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Earnings from Continuing Operations Before Income Taxes to Adjusted
Earnings from Continuing Operations Before Income
Taxes
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June 28,
2014
|
|
June 29,
2013
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
$
203,101
|
|
108,983
|
|
|
|
|
|
|
Adjustments to
earnings from continuing operations before income taxes:
|
|
|
|
|
|
|
|
|
|
Restructuring,
acquisition and integration-related costs
|
11,169
|
|
41,321
|
|
|
|
|
|
|
Acquisitions purchase
accounting (inventory step-up)
|
-
|
|
18,744
|
|
|
|
|
|
|
Adjusted
earnings before income taxes
|
$
214,270
|
|
169,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax
Expense
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June 28,
2014
|
|
June 29,
2013
|
|
|
|
|
|
|
Income tax
expense
|
$
50,240
|
|
23,240
|
|
|
|
|
|
|
Income tax effect of
adjusting items
|
2,229
|
|
12,183
|
|
|
|
|
|
|
Adjusted income tax
expense
|
$
52,469
|
|
35,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
rate
|
24%
|
|
21%
|
|
|
|
|
|
|
|
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 and
integration-related costs is useful because it allows investors to
evaluate our performance for different periods on a more comparable
basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|