Tempur Sealy International, Inc., the world's largest bedding provider, announced financial results for the second quarter ending June 30, 2014. The Company updated financial guidance for 2014.
Second Quarter Financial Summary:
Earnings per diluted share ("EPS") under U.S. generally accepted accounting principles ("GAAP") in the second quarter of 2014 were $(0.04) compared to GAAP EPS of $(0.03) in the second quarter of 2013.
The 2014 results reflect a $20.4 million loss on disposal of the Company's three U.S. innerspring component production facilities and $5.2 million of integration costs related to the acquisition of Sealy Corporation ("Sealy").
The 2013 results reflect $11.9 million of transaction and integration costs and a $4.5 million purchase price allocation ("PPA") inventory adjustment related to the Sealy acquisition as well as $8.7 million of costs related to the Company's refinancing of a portion of its senior secured credit facility.
Adjusted EPS were $0.39 in the second quarter of 2014 as compared to adjusted EPS of $0.36 in the second quarter of 2013.
GAAP net loss in the second quarter of 2014 was $2.2 million as compared to a GAAP net loss of $1.6 million for the second quarter of 2013. The Company reported adjusted net income of $24.0 million for the second quarter of 2014 as compared to adjusted net income of $22.3 million for the second quarter of 2013.
Total net sales increased 8.2% to $715.0 million in the second quarter of 2014 from $660.6 million in the second quarter of 2013. The net sales increase was driven by higher sales in each of the Company's three business segments.
Gross profit margin was 37.5% as compared to 38.6% in the second quarter of 2013. The gross profit margin decreased primarily as a result of product and channel mix and unfavorable changes in foreign exchange rates, offset partially by a PPA inventory adjustment related to the Sealy acquisition recorded in the second quarter of 2013.
Operating income was $50.3 million as compared to $44.0 million in the second quarter of 2013. Operating income in the second quarter of 2014 included $5.2 million of integration costs and in the second quarter of 2013 included $11.9 million of transaction and integration costs related to the Sealy acquisition.
EBITDA for the second quarter of 2014 was $52.1 million as compared to $67.8 million for the second quarter of 2013. Adjusted EBITDA (which is a non-GAAP measure) for the second quarter of 2014 was $77.7 million as compared to $84.2 million for the second quarter of 2013.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=166229
