LEGGETT & PLATT REPORTS 2Q RESULTS
Leggett & Platt (NYSE: LEG) reported Q2 2024 results with sales of $1.1 billion, an 8% decrease from Q2 2023. The company reported a loss of $4.39 per share, primarily due to a $675 million non-cash goodwill impairment charge. Adjusted EPS was $0.29, down $0.09 from Q2 2023. LEG lowered its 2024 sales guidance to $4.3-$4.5 billion and narrowed adjusted EPS guidance to $1.10-$1.25. The company is progressing with its restructuring plan, expecting $40-$50 million in annualized EBIT benefit by late 2025. LEG paid down $73 million of debt and improved adjusted EBIT margin by 50 basis points sequentially. The company is conducting a strategic review of its portfolio to focus on more profitable opportunities.
Leggett & Platt (NYSE: LEG) ha riportato i risultati del secondo trimestre 2024 con vendite pari a 1,1 miliardi di dollari, con una diminuzione dell'8% rispetto al secondo trimestre 2023. L'azienda ha registrato una perdita di 4,39 dollari per azione, principalmente a causa di un onere per impairment di goodwill non monetario di 675 milioni di dollari. L'utile per azione rettificato è stato di 0,29 dollari, in calo di 0,09 dollari rispetto al secondo trimestre 2023. LEG ha ridotto le previsioni di vendita per il 2024 a 4,3-4,5 miliardi di dollari e ha ristretto le previsioni di utile per azione rettificato a 1,10-1,25 dollari. L'azienda sta proseguendo con il suo piano di ristrutturazione, prevedendo un beneficio di 40-50 milioni di dollari nella EBIT annualizzata entro la fine del 2025. LEG ha ridotto il debito di 73 milioni di dollari e migliorato il margine EBIT rettificato di 50 punti base rispetto al trimestre precedente. L'azienda sta conducendo una revisione strategica del suo portafoglio per concentrarsi su opportunità più redditizie.
Leggett & Platt (NYSE: LEG) reportó los resultados del segundo trimestre de 2024 con ventas de 1,1 mil millones de dólares, una disminución del 8% en comparación con el segundo trimestre de 2023. La empresa reportó una pérdida de 4,39 dólares por acción, principalmente debido a un cargo por deterioro de goodwill no monetario de 675 millones de dólares. El EPS ajustado fue de 0,29 dólares, una disminución de 0,09 dólares respecto al segundo trimestre de 2023. LEG bajó su guía de ventas para 2024 a entre 4,3 y 4,5 mil millones de dólares y acortó la guía de EPS ajustado a entre 1,10 y 1,25 dólares. La empresa está avanzando con su plan de reestructuración, esperando un beneficio de EBIT anualizado de 40 a 50 millones de dólares para finales de 2025. LEG pagó 73 millones de dólares de deuda y mejoró el margen de EBIT ajustado en 50 puntos básicos secuencialmente. La empresa está realizando una revisión estratégica de su cartera para centrarse en oportunidades más rentables.
레게트 앤 플랫(Leggett & Platt, NYSE: LEG)은 2024년 2분기 실적을 발표했으며, 매출은 11억 달러로 2023년 2분기 대비 8% 감소했습니다. 회사는 주당 4.39달러의 손실을 기록했으며, 이는 주로 6억 7,500만 달러의 비현금 goodwill 손상차손2024년 매출 가이던스를 43억~45억 달러로 하향 조정했으며, 조정된 EPS 가이던스를 1.10~1.25달러로 좁혔습니다. 회사는 재구성 계획을 진행 중이며, 2025년 말까지 연간 4천만~5천만 달러의 EBIT 혜택을 예상하고 있습니다. LEG는 7천3백만 달러의 부채를 상환하고, 조정된 EBIT 마진을 전분기 대비 50bp 개선했습니다. 회사는 포트폴리오의 전략적 검토를 수행하여 더 수익성 있는 기회에 집중하고 있습니다.
Leggett & Platt (NYSE: LEG) a annoncé ses résultats du deuxième trimestre 2024, avec des ventes de 1,1 milliard de dollars, soit une baisse de 8 % par rapport au deuxième trimestre 2023. L'entreprise a enregistré une perte de 4,39 dollars par action, principalement en raison d'une provision pour dépréciation de goodwill non monétaire de 675 millions de dollars. Le bénéfice par action ajusté était de 0,29 dollar, en baisse de 0,09 dollar par rapport au deuxième trimestre 2023. LEG a révisé à la baisse ses prévisions de ventes pour 2024, à entre 4,3 et 4,5 milliards de dollars, et a restricté ses prévisions de bénéfice par action ajusté à entre 1,10 et 1,25 dollar. L'entreprise progresse dans son plan de restructuration, anticipant un bénéfice EBIT annualisé de 40 à 50 millions de dollars d'ici fin 2025. LEG a remboursé 73 millions de dollars de dettes et a amélioré sa marge EBIT ajustée de 50 points de base par rapport au trimestre précédent. L'entreprise réalise un examen stratégique de son portefeuille pour se concentrer sur des opportunités plus rentables.
Leggett & Platt (NYSE: LEG) hat die Q2 2024-Ergebnisse bekannt gegeben, mit einem Umsatz von 1,1 Milliarden Dollar, was einem Rückgang von 8% im Vergleich zu Q2 2023 entspricht. Das Unternehmen meldete einen Verlust von 4,39 Dollar pro Aktie, hauptsächlich aufgrund eines nicht zahlungswirksamen Goodwill-Abschreibungsaufwands von 675 Millionen Dollar. Das bereinigte EPS betrug 0,29 Dollar, was einem Rückgang von 0,09 Dollar im Vergleich zu Q2 2023 entspricht. LEG senkte die Umsatzprognose für 2024 auf 4,3-4,5 Milliarden Dollar und verengte die Prognose für das bereinigte EPS auf 1,10-1,25 Dollar. Das Unternehmen arbeitet an seinem Restrukturierungsplan und erwartet bis Ende 2025 einen jährlichen EBIT-Vorteil von 40-50 Millionen Dollar. LEG hat 73 Millionen Dollar an Schulden zurückgezahlt und die bereinigte EBIT-Marge um 50 Basispunkte im Vergleich zum vorherigen Quartal verbessert. Das Unternehmen führt eine strategische Überprüfung seines Portfolios durch, um sich auf profitablere Möglichkeiten zu konzentrieren.
- Restructuring plan on track, with some elements progressing ahead of schedule
- Paid down $73 million of debt
- Adjusted EBIT margin improved by 50 basis points sequentially
- Expecting $40-$50 million in annualized EBIT benefit from restructuring by late 2025
- Conducting strategic review to focus on more profitable opportunities
- $675 million non-cash goodwill impairment charge
- Q2 sales decreased 8% year-over-year to $1.1 billion
- Reported loss of $4.39 per share in Q2
- Adjusted EPS decreased by $0.09 to $0.29 in Q2
- Lowered 2024 sales guidance to $4.3-$4.5 billion
- Weak demand in residential end markets
- Slower than expected shift to electric vehicles in automotive market
- Increased inventory write-downs/reserves and higher bad debt reserves
Insights
Leggett & Platt's Q2 results paint a challenging picture, with significant headwinds impacting the company's performance. The 8% decrease in sales to
The most striking aspect of this report is the
On a positive note, the company's restructuring efforts are progressing well, with some elements ahead of schedule. The expected annualized EBIT benefit of
The revised 2024 guidance, with sales now expected to be
Leggett & Platt's Q2 results reflect broader market trends that investors should closely monitor. The company's performance is a barometer for consumer discretionary spending and housing market health.
The 4% volume decline, primarily due to weak demand in residential end markets, aligns with the broader trend of consumers delaying big-ticket, discretionary purchases. This suggests ongoing caution in consumer spending, potentially impacting other companies in the home furnishings and improvement sectors.
In the automotive sector, Leggett & Platt's experience of volatility due to a slower than expected shift to electric vehicles and disruption from new Chinese market entrants is noteworthy. This indicates that the transition to EVs may not be as smooth or rapid as some analysts have predicted, which could have implications for the entire automotive supply chain.
The company's strategic review of its diverse portfolio is a trend we're seeing across many industrial conglomerates. The focus on becoming "more focused and more profitable" suggests potential divestitures or significant restructuring in the future, which could reshape the competitive landscape in Leggett & Platt's various markets.
Lastly, the deflationary pressure mentioned in the report is a trend to watch. If this continues, it could impact pricing power across various industries, potentially squeezing margins for companies unable to offset lower prices with increased volume or cost reductions.
- 2Q sales of
, an$1.1 billion 8% decrease vs 2Q23 - 2Q EPS of (
), primarily due to a non-cash goodwill impairment charge$4.39 - 2Q adjusted1 EPS of
$.29 , a$.09 decrease vs adjusted1 2Q23 EPS - 2024 EPS guidance is (
.43)–($3 ), including impact of non-cash goodwill impairment charge, restructuring charges, real estate gains, and certain other costs$3.58 - 2024 adjusted1 EPS narrowed to
.10–$1 $1.25 ; sales guidance lowered to .3–$4 $4.5 billion
President and CEO Karl Glassman commented, "While our second quarter results reflect the ongoing challenging macro environment, I am immensely proud of our team's execution. The restructuring plan is on track, with some elements of the plan progressing ahead of schedule and exceeding expectations. We paid down
"Demand in our residential end markets remains weak as consumers continue to delay big-ticket, discretionary purchases. Additionally, the global automotive market remains volatile due to a slower than expected shift to electric vehicles and disruption from new Chinese market entrants. Due to these factors and continued deflationary pressure, we are lowering our full year sales guidance. We are also narrowing our adjusted EPS guidance, with a slightly lower mid-point. This revision reflects the impacts of lower volume, increased inventory write-downs/reserves, and higher bad debt reserves, partially offset by continued strong execution of our restructuring plan, operational efficiency improvements, and pricing discipline.
"We are currently conducting a strategic review of our diverse portfolio, assessing how each business fits into our long-term vision. This review, in addition to our restructuring plan and operational improvement initiatives, is leading to a clearer vision of the opportunities ahead. We fully expect the future Leggett & Platt to be more focused and more profitable."
SECOND QUARTER RESULTS
Second quarter sales were
- Organic sales2 were down
8% - Volume was down
4% , primarily from continued weak demand in residential end markets and the earlier than expected loss of a customer in Specialty Foam - Raw material-related selling price decreases and currency impact reduced sales
4%
- Volume was down
Second quarter EBIT was a loss of
- EBIT decreased primarily from a
non-cash goodwill impairment charge. In connection with the preparation of the second quarter 2024 financial statements, the Company performed an impairment analysis and concluded that an impairment existed as a result of the significant decline in stock price and current market conditions.$675 million
Adjusted1 EBIT was
- Adjusted1 EBIT decreased primarily from lower volume, increased inventory write-downs/reserves, raw material-related pricing adjustments, metal margin compression, and higher bad debt reserves partially offset by lower amortization expense, operational efficiency improvements, and restructuring benefit.
EBIT margin was (
Second quarter EPS was a loss of
Second Quarter Results | |||||||
EBIT (millions) | EPS | ||||||
Bedding | Specialized | FF&T | Other | Total | |||
Reported results1 | ( | ( | ( | ( | ( | ( | |
Adjustment items: | |||||||
Goodwill impairment | 587 | 44 | 44 | — | 675 | 4.61 | |
Restructuring, restructuring- related, and impairment charges | 10 | 1 | — | — | 11 | .06 | |
Gain from sale of idle real estate | (5) | — | — | — | (5) | (.02) | |
CEO transition compensation costs | — | — | — | 4 | 4 | .03 | |
Total adjustments | 592 | 45 | 44 | 4 | 685 | 4.68 | |
Adjusted results | $— | ||||||
1 Calculations impacted by rounding |
DEBT, CASH FLOW, AND LIQUIDITY
- Net Debt1 was 3.83x trailing 12-month adjusted EBITDA1
- Debt at June 30
- Total debt of
, including$2.0 billion of commercial paper outstanding$208 million
- Total debt of
- Operating cash flow was
in the second quarter, a decrease of$94 million versus second quarter 2023, driven primarily by lower earnings partially offset by working capital improvement$17 million - Capital expenditures were
$15 million - Dividends were
(paid 1st quarter dividend of$62 million $.46 per share on April 15)- On April 30, Leggett & Platt's Board of Directors declared a second quarter dividend of
$.05 per share, a decrease of$.41 per share versus last year's second quarter dividend
- On April 30, Leggett & Platt's Board of Directors declared a second quarter dividend of
- Total liquidity was
at June 30$705 million cash on hand$307 million in capacity remaining under revolving credit facility$398 million
RESTRUCTURING PLAN UPDATE
The restructuring plan in our Bedding Products segment and in our Furniture, Flooring & Textile Products segment is progressing as planned. Additionally, we initiated a small restructuring opportunity in our Specialized Products segment during second quarter 2024.
- Annualized EBIT benefit of
$40 –$50 million expected to be realized after initiatives are fully implemented in late 2025- Realized
in second quarter 2024 and now expect approximately$3 million $10 –$15 million of EBIT benefit to be realized in 2024 versus our initial estimate of$5 –$10 million
- Realized
- We now anticipate approximately
of annual sales attrition after initiatives are fully implemented in late 2025 versus our initial estimate of$80 million $100 million - Realized
of sales attrition in second quarter 2024 and now expect approximately$3 million in 2024 versus our initial estimate of$25 million $40 million
- Realized
- Also expect to receive cash from the sale of real estate associated with the plan, with transactions largely complete by the end of 2025
- 2024 expectations are now
$15 –$25 million versus$0 –$10 million as real estate sales are anticipated to be realized sooner than initially expected
- 2024 expectations are now
- Majority of cash restructuring and restructuring-related costs expected to be incurred in 2024
Actual Restructuring Plan Impacts (millions) | Expected Restructuring Plan Impacts (millions) | ||||
2Q 2024 | YTD 2024 | 2024 | 2025 | Total | |
Net Cash Received from | $— | $— | |||
Total Costs | |||||
Cash Costs | 9 | 16 | 25–30 | 5–10 | 30-40 |
Non-Cash Costs | 2 | 6 | 15–20 | 20–25 | 35-45 |
2024 GUIDANCE
- Full year 2024 sales guidance lowered and adjusted EPS guidance narrowed
- Sales are expected to be
.3–$4 $4.5 billion , down5% to9% versus 2023 (vs prior guidance of .35–$4 $4.65 billion )- Volume is expected to be down low to mid-single digits
- Volume at the midpoint:
- Down high single digits in Bedding Products Segment
- Flat in Specialized Products Segment
- Down low single digits in Furniture, Flooring & Textile Products Segment
- Raw material-related price decreases and currency impact combined expected to reduce sales low single digits
- EPS is expected to be a loss of
.43–$3 $3.58 - Earnings expectations include:
per share impact from goodwill impairment$4.61 $.20 to$.25 per share impact from restructuring costs$.03 per share impact from CEO transition compensation costs$.15 to$.20 per share gain from sales of real estate, consisting of idle real estate and real estate exited from restructuring initiatives$.01 per share gain from net insurance proceeds from tornado damage
- Earnings expectations include:
- Adjusted EPS is now expected to be
.10–$1 $1.25 (vs prior guidance of .05–$1 $1.35) - Decrease versus 2023 is primarily from:
- Lower expected volume in our Bedding Products and Furniture, Flooring & Textile Products segments
- Pricing responses related to global steel cost differentials
- Modest metal margin compression
- Several expense items that were abnormally low in 2023 and are expected to normalize in 2024
- Increased inventory write-downs/reserves realized in the second quarter 2024
- Decreases are partially offset by lower amortization resulting from the 2023 long-lived asset impairment, restructuring benefit, operational efficiency improvements, and pricing discipline
- Decrease versus 2023 is primarily from:
- Based on this framework, 2024 EBIT margin is expected to be (
12.1% )–(13.3% ); adjusted EBIT margin is expected to be6.5% –6.9% - Additional expectations:
- Depreciation and amortization
$135 million - Net interest expense
(vs prior guidance of$80 million )$85 million - Effective tax rate
24% (vs prior guidance of25% ) - Fully diluted shares 137 million (vs prior guidance of 138 million shares)
- Operating cash flow
$300 –$350 million - Capital expenditures
(vs prior guidance of$110 million $100 –$120) - Dividends
$135 million - Minimal acquisitions and share repurchases
- Depreciation and amortization
- Expect to predominantly use commercial paper to repay
of$300 million 3.8% , 10-year notes maturing in November 2024
SEGMENT RESULTS – Second Quarter 2024 (versus 2Q 2023)
Bedding Products –
- Trade sales decreased
13% - Volume decreased
7% , primarily due to the earlier than anticipated loss of a customer in our Specialty Foam business and demand softness inU.S. and European bedding markets, partially offset by higher trade rod sales - Raw material-related selling price decreases reduced sales
6%
- Volume decreased
- EBIT decreased
, primarily from a$615 million non-cash goodwill impairment charge$587 million - Adjusted1 EBIT decreased
, primarily from lower volume, increased inventory write-downs/reserves, raw material-related pricing adjustments, metal margin compression, and higher bad debt reserves, partially offset by lower amortization expense, operational efficiency improvements in Specialty Foam, and restructuring benefit$22 million
Specialized Products –
- Trade sales were flat
- Volume was flat with growth in Aerospace offset by declines in Hydraulic Cylinders and Automotive
- Raw material-related price increases added
1% to sales - Currency impact reduced sales
1%
- EBIT decreased
, primarily from a$43 million non-cash goodwill impairment charge$44 million - Adjusted1 EBIT increased
, primarily from operational efficiency improvements partially offset by currency impact$2 million
Furniture, Flooring & Textile Products –
- Trade sales decreased
6% - Volume decreased
3% , primarily from declines in Geo Components and continued weak demand in residential end markets - Raw material-related selling price decreases reduced sales
3%
- Volume decreased
- EBIT decreased
, primarily from a$48 million non-cash goodwill impairment charge$44 million - Adjusted1 EBIT decreased
, primarily from lower volume partially offset by pricing discipline and restructuring benefit$1 million
SLIDES AND CONFERENCE CALL
A set of slides containing summary financial information and a restructuring update is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at 7:30 a.m. Central (8:30 a.m. Eastern) on Friday, August 2. The webcast can be accessed from Leggett's website. The dial-in number is (201) 689-8341; there is no passcode.
FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.
COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 141-year-old Company is a leading supplier of bedding components and private label finished goods; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; hydraulic cylinders for material handling and heavy construction applications; and aerospace tubing and fabricated assemblies.
FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," identified by the context in which they appear or words such as "expect," "anticipated," and "guidance," including, but not limited to volume; sales, EPS, adjusted EPS; capital expenditures; depreciation and amortization; net interest expense; fully diluted shares; operating cash; EBIT margin; adjusted EBIT margin; effective tax rate; dividends; raw material related price decreases; currency impact; metal margin compression, normalized expenses, pricing related to global steel differentials, mattress import volumes, minimal acquisitions and share repurchases; use of commercial paper to retire debt; Restructuring Plan financial impacts including the timing and amount of sales attrition, annualized EBIT benefit, proceeds from real estate sales, and cash and non-cash costs. Such statements are expressly qualified by cautionary statements described in this provision and reflect only the beliefs, expectations, and assumptions of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks and uncertainties include: regarding the Restructuring Plan (i) the preliminary nature of the estimates and the possibility that all or some of the estimates may change (ii) our ability to timely implement it or receive anticipated benefits (iii) our ability to timely receive expected proceeds from real estate sales and (iv) the impact on employees, customers and vendors; our ability to accurately forecast sales and earnings; the adverse impact on our sales, earnings, liquidity, margins, cash flow, costs, and financial condition caused by: global inflationary and deflationary impacts; the demand for our products and our customers' products; our manufacturing facilities' ability to obtain necessary raw materials, parts, and labor, and to ship finished products; the impairment of goodwill and long-lived assets; our ability to access the commercial paper market or borrow under our revolving credit facility; supply chain shortages and disruptions; our ability to manage working capital; increases or decreases in our capital needs; our ability to collect receivables; market conditions; price and product competition; cost and availability of raw materials, labor and energy costs; cash generation sufficient to pay the dividend, or a Board decision to reduce or suspend the dividend; cash repatriation from foreign accounts; our ability to pass along cost increases through increased selling prices; conflict between
CONTACT: Investor Relations, (417) 358-8131 or invest@leggett.com
Cassie J. Branscum, Vice President, Investor Relations
Kolina A. Talbert, Manager, Investor Relations
____________ | |
1 | Please refer to attached tables for Non-GAAP Reconciliations |
2 | Trade sales excluding acquisitions/divestitures in the last 12 months |
LEGGETT & PLATT | Page 6 of 8 | August 1, 2024 | ||||||||||
RESULTS OF OPERATIONS | SECOND QUARTER | YEAR TO DATE | ||||||||||
(In millions, except per share data) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Trade sales | $ 1,128.6 | $ 1,221.2 | (8) % | $ 2,225.5 | $ 2,434.8 | (9) % | ||||||
Cost of goods sold | 942.1 | 1,000.1 | 1,852.6 | 1,995.1 | ||||||||
Gross profit | 186.5 | 221.1 | (16) % | 372.9 | 439.7 | (15) % | ||||||
Selling & administrative expenses | 131.5 | 119.2 | 10 % | 257.4 | 235.2 | 9 % | ||||||
Amortization | 4.7 | 16.8 | 9.6 | 33.7 | ||||||||
Other (income) expense, net | 664.6 | (10.6) | 657.2 | (14.2) | ||||||||
Earnings (loss) before interest and income taxes | (614.3) | 95.7 | NM | (551.3) | ` | 185.0 | NM | |||||
Net interest expense | 20.0 | 22.0 | 40.6 | 43.0 | ||||||||
Earnings (loss) before income taxes | (634.3) | 73.7 | (591.9) | 142.0 | ||||||||
Income taxes | (32.2) | 19.5 | (21.4) | 34.3 | ||||||||
Net earnings (loss) | (602.1) | 54.2 | (570.5) | 107.7 | ||||||||
Less net income from noncontrolling interest | (0.1) | — | (0.1) | — | ||||||||
Net Earnings (loss) Attributable to L&P | $ (602.2) | $ 54.2 | NM | $ (570.6) | $ 107.7 | NM | ||||||
Earnings (loss) per diluted share | ||||||||||||
Net earnings (loss) per diluted share | $ (4.39) | $ 0.40 | NM | $ (4.16) | $ 0.79 | NM | ||||||
Shares outstanding | ||||||||||||
Common stock (at end of period) | 134.1 | 133.2 | 0.7 % | 134.1 | 133.2 | 0.7 % | ||||||
Basic (average for period) | 137.3 | 136.2 | 137.0 | 136.1 | ||||||||
Diluted (average for period) | 137.3 | 136.6 | 0.5 % | 137.0 | 136.4 | 0.4 % | ||||||
CASH FLOW | SECOND QUARTER | YEAR TO DATE | ||||||||||
(In millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Net earnings (loss) | $ (602.1) | $ 54.2 | $ (570.5) | $ 107.7 | ||||||||
Depreciation and amortization | 32.6 | 44.7 | 65.5 | 90.1 | ||||||||
Working capital decrease (increase) | 19.7 | 11.0 | (62.4) | (7.8) | ||||||||
Impairments | 675.6 | — | 677.9 | — | ||||||||
Deferred income tax benefit | (46.0) | (5.9) | (45.0) | (7.1) | ||||||||
Other operating activities | 14.2 | 6.6 | 22.4 | 24.4 | ||||||||
Net Cash from Operating Activities | $ 94.0 | $ 110.6 | (15) % | $ 87.9 | $ 207.3 | (58) % | ||||||
Additions to PP&E | (15.5) | (30.5) | (41.4) | (68.2) | ||||||||
Purchase of companies, net of cash | — | — | — | — | ||||||||
Proceeds from disposals of assets and businesses | 8.0 | 4.8 | 23.2 | 5.3 | ||||||||
Dividends paid | (61.7) | (58.6) | (123.0) | (116.9) | ||||||||
Repurchase of common stock, net | (0.2) | (0.1) | (4.3) | (5.3) | ||||||||
Additions (payments) to debt, net | (73.0) | (90.2) | 11.9 | (61.7) | ||||||||
Other | (5.9) | (8.1) | (12.8) | (4.6) | ||||||||
Increase (Decrease) in Cash & Equivalents | $ (54.3) | $ (72.1) | $ (58.5) | $ (44.1) | ||||||||
FINANCIAL POSITION | Jun 30, | Dec 31, | ||||||||||
(In millions) | 2024 | 2023 | Change | |||||||||
Cash and equivalents | $ 307.0 | $ 365.5 | ||||||||||
Receivables | 648.7 | 637.3 | ||||||||||
Inventories | 755.4 | 819.7 | ||||||||||
Other current assets | 77.5 | 58.9 | ||||||||||
Total current assets | 1,788.6 | 1,881.4 | (5) % | |||||||||
Net fixed assets | 756.6 | 781.2 | ||||||||||
Operating lease right-of-use assets | 192.2 | 193.2 | ||||||||||
Goodwill | 804.1 | 1,489.8 | ||||||||||
Intangible assets and deferred costs, both at net | 297.3 | 288.9 | ||||||||||
TOTAL ASSETS | $ 3,838.8 | $ 4,634.5 | (17) % | |||||||||
Trade accounts payable | $ 521.8 | $ 536.2 | ||||||||||
Current debt maturities | 301.0 | 308.0 | ||||||||||
Current operating lease liabilities | 57.1 | 57.3 | ||||||||||
Other current liabilities | 288.0 | 361.1 | ||||||||||
Total current liabilities | 1,167.9 | 1,262.6 | (8) % | |||||||||
Long-term debt | 1,702.1 | 1,679.6 | 1 % | |||||||||
Operating lease liabilities | 148.7 | 150.5 | ||||||||||
Deferred taxes and other liabilities | 151.8 | 207.8 | ||||||||||
Equity | 668.3 | 1,334.0 | (50) % | |||||||||
Total Capitalization | 2,670.9 | 3,371.9 | (21) % | |||||||||
TOTAL LIABILITIES & EQUITY | $ 3,838.8 | $ 4,634.5 | (17) % | |||||||||
LEGGETT & PLATT | Page 7 of 8 | August 1, 2024 | ||||||||||
SEGMENT RESULTS 1 | SECOND QUARTER | YEAR TO DATE | ||||||||||
(In millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Bedding Products | ||||||||||||
Trade sales | $ 438.0 | $ 504.4 | (13) % | $ 886.0 | $ 1,032.9 | (14) % | ||||||
EBIT | (591.8) | 23.0 | NM | (576.1) | 56.3 | NM | ||||||
EBIT margin | -135.1 % | 4.6 % | NM | -65.0 % | 5.5 % | NM | ||||||
Goodwill impairment | 587.2 | — | 587.2 | — | ||||||||
Restructuring, restructuring-related, and impairment charges | 9.9 | — | 19.2 | — | ||||||||
Gain on sale of real estate | (4.7) | — | (12.6) | — | ||||||||
Gain from net insurance proceeds from tornado damage | — | (0.6) | — | (0.6) | ||||||||
Adjusted EBIT 3 | 0.6 | 22.4 | (97) % | 17.7 | 55.7 | (68) % | ||||||
Adjusted EBIT margin 3 | 0.1 % | 4.4 % | -430 bps | 2 | 2.0 % | 5.4 % | -340 bps | |||||
Depreciation and amortization | 14.3 | 25.5 | 28.9 | 51.1 | ||||||||
Adjusted EBITDA | 14.9 | 47.9 | (69) % | 46.6 | 106.8 | (56) % | ||||||
Adjusted EBITDA margin | 3.4 % | 9.5 % | -610 bps | 5.3 % | 10.3 % | -500 bps | ||||||
Specialized Products | ||||||||||||
Trade sales | $ 319.6 | $ 321.2 | — % | $ 635.5 | $ 641.9 | (1) % | ||||||
EBIT | (9.5) | 33.1 | NM | 14.2 | 61.8 | (77) % | ||||||
EBIT margin | -3.0 % | 10.3 % | NM | 2.2 % | 9.6 % | -740 bps | ||||||
Goodwill impairment | 43.6 | — | 43.6 | — | ||||||||
Restructuring, restructuring-related, and impairment charges | 1.3 | — | 1.3 | — | ||||||||
Adjusted EBIT 3 | 35.4 | 33.1 | 7 % | 59.1 | 61.8 | (4) % | ||||||
Adjusted EBIT margin 3 | 11.1 % | 10.3 % | 80 bps | 9.3 % | 9.6 % | -30 bps | ||||||
Depreciation and amortization | 10.3 | 10.3 | 20.4 | 21.0 | ||||||||
Adjusted EBITDA | 45.7 | 43.4 | 5 % | 79.5 | 82.8 | (4) % | ||||||
Adjusted EBITDA margin | 14.3 % | 13.5 % | 80 bps | 12.5 % | 12.9 % | -40 bps | ||||||
Furniture, Flooring & Textile Products | ||||||||||||
Trade sales | $ 371.0 | $ 395.6 | (6) % | $ 704.0 | $ 760.0 | (7) % | ||||||
EBIT | (9.4) | 38.9 | NM | 14.2 | 67.2 | (79) % | ||||||
EBIT margin | -2.5 % | 9.8 % | NM | 2.0 % | 8.8 % | -680 bps | ||||||
Goodwill impairment | 44.5 | — | 44.5 | — | ||||||||
Restructuring, restructuring-related, and impairment charges | — | — | 1.5 | — | ||||||||
Gain from net insurance proceeds from tornado damage | — | (3.0) | (2.2) | (3.0) | ||||||||
Adjusted EBIT 3 | 35.1 | 35.9 | (2) % | 58.0 | 64.2 | (10) % | ||||||
Adjusted EBIT Margin 3 | 9.5 % | 9.1 % | 40 bps | 8.2 % | 8.4 % | -20 bps | ||||||
Depreciation and amortization | 5.5 | 5.7 | 10.8 | 11.5 | ||||||||
Adjusted EBITDA | 40.6 | 41.6 | (2) % | 68.8 | 75.7 | (9) % | ||||||
Adjusted EBITDA margin | 10.9 % | 10.5 % | 40 bps | 9.8 % | 10.0 % | -20 bps | ||||||
Total Company | ||||||||||||
Trade sales | $ 1,128.6 | $ 1,221.2 | (8) % | $ 2,225.5 | $ 2,434.8 | (9) % | ||||||
EBIT - segments | (610.7) | 95.0 | NM | (547.7) | 185.3 | NM | ||||||
Intersegment eliminations and other | (3.6) | 0.7 | (3.6) | (0.3) | ||||||||
EBIT | (614.3) | 95.7 | NM | (551.3) | 185.0 | NM | ||||||
EBIT margin | -54.4 % | 7.8 % | NM | -24.8 % | 7.6 % | NM | ||||||
Goodwill impairment | 675.3 | — | 675.3 | — | ||||||||
Restructuring, restructuring-related, and impairment charges | 11.2 | — | 22.0 | — | ||||||||
Gain on sale of real estate | (4.7) | — | (12.6) | — | ||||||||
Gain from net insurance proceeds from tornado damage | — | (3.6) | (2.2) | (3.6) | ||||||||
CEO transition compensation costs | 3.7 | — | 3.7 | — | ||||||||
Adjusted EBIT 3 | 71.2 | 92.1 | (23) % | 134.9 | 181.4 | (26) % | ||||||
Adjusted EBIT margin 3 | 6.3 % | 7.5 % | -120 bps | 6.1 % | 7.5 % | -140 bps | ||||||
Depreciation and amortization - segments | 30.1 | 41.5 | 60.1 | 83.6 | ||||||||
Depreciation and amortization - unallocated 4 | 2.5 | 3.2 | 5.4 | 6.5 | ||||||||
Adjusted EBITDA | $ 103.8 | $ 136.8 | (24) % | $ 200.4 | $ 271.5 | (26) % | ||||||
Adjusted EBITDA margin | 9.2 % | 11.2 % | -200 bps | 9.0 % | 11.2 % | -220 bps | ||||||
LAST SIX QUARTERS | 2023 | 2024 | ||||||||||
Selected Figures (In Millions) | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||
Trade sales | 1,213.6 | 1,221.2 | 1,175.4 | 1,115.1 | 1,096.9 | 1,128.6 | ||||||
Sales growth (vs. prior year) | (8) % | (8) % | (9) % | (7) % | (10) % | (8) % | ||||||
Volume growth (same locations vs. prior year) | (7) % | (6) % | (6) % | (3) % | (6) % | (4) % | ||||||
Adjusted EBIT 3 | 89.3 | 92.1 | 86.0 | 66.1 | 63.7 | 71.2 | ||||||
Cash from operations | 96.7 | 110.6 | 143.8 | 146.1 | (6.1) | 94.0 | ||||||
Adjusted EBITDA (trailing twelve months) 3 | 616.2 | 565.5 | 539.2 | 513.4 | 475.3 | 442.3 | ||||||
(Long-term debt + current maturities - cash and equivalents) / adj. EBITDA 3,5 | 2.88 | 3.10 | 3.15 | 3.16 | 3.61 | 3.83 | ||||||
Organic Sales (Vs. Prior Year) 6 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||
Bedding Products | (17) % | (18) % | (17) % | (14) % | (15) % | (13) % | ||||||
Specialized Products | 8 % | 12 % | 3 % | 5 % | (1) % | — % | ||||||
Furniture, Flooring & Textile Products | (15) % | (16) % | (14) % | (7) % | (9) % | (6) % | ||||||
Overall | (11) % | (11) % | (11) % | (7) % | (10) % | (8) % | ||||||
1 Segment and overall company margins calculated on net trade sales. | ||||||||||||
2 bps = basis points; a unit of measure equal to 1/100th of | ||||||||||||
3 Refer to next page for non-GAAP reconciliations. | ||||||||||||
4 Consists primarily of depreciation of non-operating assets. | ||||||||||||
5 EBITDA based on trailing twelve months. | ||||||||||||
6 Trade sales excluding sales attributable to acquisitions and divestitures consummated in the last 12 months. | ||||||||||||
LEGGETT & PLATT | Page 8 of 8 | August 1, 2024 | ||||||||||
RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES 10 | ||||||||||||
Non-GAAP Adjustments 7 | 2023 | 2024 | ||||||||||
(In millions, except per share data) | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||
Goodwill impairment | — | — | — | — | — | 675.3 | ||||||
Long-lived asset impairment | — | — | — | 443.7 | — | — | ||||||
Restructuring, restructuring-related, and impairment charges | — | — | — | — | 10.8 | 11.2 | ||||||
Gain on sale of real estate | — | — | (5.4) | (5.5) | (7.9) | (4.7) | ||||||
Gain from net insurance proceeds from tornado damage | — | (3.6) | — | (5.3) | (2.2) | — | ||||||
CEO transition compensation costs | — | — | — | — | — | 3.7 | ||||||
Non-GAAP Adjustments (Pretax) 8 | — | (3.6) | (5.4) | 432.9 | 0.7 | 685.5 | ||||||
Income tax impact | — | 0.9 | 0.9 | (99.9) | (0.2) | (43.6) | ||||||
Non-GAAP Adjustments (After Tax) | — | (2.7) | (4.5) | 333.0 | 0.5 | 641.9 | ||||||
Diluted shares outstanding | 136.3 | 136.6 | 136.8 | 136.5 | 137.3 | 137.3 | ||||||
EPS Impact of Non-GAAP Adjustments | — | (0.02) | (0.03) | 2.44 | — | 4.68 | ||||||
Adjusted EBIT, EBITDA, Margin, and EPS 7 | 2023 | 2024 | ||||||||||
(In millions, except per share data) | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||
Trade sales | 1,213.6 | 1,221.2 | 1,175.4 | 1,115.1 | 1,096.9 | 1,128.6 | ||||||
EBIT (earnings before interest and taxes) | 89.3 | 95.7 | 91.4 | (366.8) | 63.0 | (614.3) | ||||||
Non-GAAP adjustments (pretax) | — | (3.6) | (5.4) | 432.9 | 0.7 | 685.5 | ||||||
Adjusted EBIT | 89.3 | 92.1 | 86.0 | 66.1 | 63.7 | 71.2 | ||||||
EBIT margin | 7.4 % | 7.8 % | 7.8 % | (32.9) % | 5.7 % | (54.4) % | ||||||
Adjusted EBIT Margin | 7.4 % | 7.5 % | 7.3 % | 5.9 % | 5.8 % | 6.3 % | ||||||
EBIT | 89.3 | 95.7 | 91.4 | (366.8) | 63.0 | (614.3) | ||||||
Depreciation and amortization | 45.4 | 44.7 | 45.0 | 44.8 | 32.9 | 32.6 | ||||||
EBITDA | 134.7 | 140.4 | 136.4 | (322.0) | 95.9 | (581.7) | ||||||
Non-GAAP adjustments (pretax) | — | (3.6) | (5.4) | 432.9 | 0.7 | 685.5 | ||||||
Adjusted EBITDA | 134.7 | 136.8 | 131.0 | 110.9 | 96.6 | 103.8 | ||||||
EBITDA margin | 11.1 % | 11.5 % | 11.6 % | (28.9) % | 8.7 % | (51.5) % | ||||||
Adjusted EBITDA Margin | 11.1 % | 11.2 % | 11.1 % | 9.9 % | 8.8 % | 9.2 % | ||||||
Diluted EPS | 0.39 | 0.40 | 0.39 | (2.18) | 0.23 | (4.39) | ||||||
EPS impact of non-GAAP adjustments | — | (0.02) | (0.03) | 2.44 | — | 4.68 | ||||||
Adjusted EPS | 0.39 | 0.38 | 0.36 | 0.26 | 0.23 | 0.29 | ||||||
Net Debt to Adjusted EBITDA 9 | 2023 | 2024 | ||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |||||||
Total debt | 2,117.8 | 2,024.6 | 1,971.9 | 1,987.6 | 2,076.7 | 2,003.1 | ||||||
Less: cash and equivalents | (344.5) | (272.4) | (273.9) | (365.5) | (361.3) | (307.0) | ||||||
Net debt | 1,773.3 | 1,752.2 | 1,698.0 | 1,622.1 | 1,715.4 | 1,696.1 | ||||||
Adjusted EBITDA, trailing 12 months | 616.2 | 565.5 | 539.2 | 513.4 | 475.3 | 442.3 | ||||||
Net Debt / 12-month Adjusted EBITDA | 2.88 | 3.10 | 3.15 | 3.16 | 3.61 | 3.83 | ||||||
7 Management and investors use these measures as supplemental information to assess operational performance. | ||||||||||||
8 The | ||||||||||||
9 Management and investors use this ratio as supplemental information to assess ability to pay off debt. These ratios are calculated differently than the Company's credit facility | ||||||||||||
10 Calculations impacted by rounding. |
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SOURCE Leggett & Platt Incorporated
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