Mohawk Industries Reports Q2 Results
For the six months ending
Commenting on Mohawk Industries’ second quarter performance,
“Given the uncertainties in our markets, we are taking actions to improve our business. We are streamlining our operations, consolidating facilities and taking out higher cost assets. We are reducing production to control inventory levels, introducing new product categories and increasing promotions to address changing markets. We are reducing overhead structures and controlling investments. We benefited in the period from lower material costs offset by labor and energy costs that continue to rise. We are improving our administrative costs while investing in sales to support new products and enter new geographies. To recover inflation, we have implemented price increases in the first half of the year, though much of the benefit has been offset by mix and competitive pressures.
“While managing these challenges, we are enhancing the long-term value of our business. The utilization of our new investments in the U.S.,
“For the quarter, our Global Ceramic Segment sales increased 3% as reported and 5% on a constant currency and days basis. The segment’s operating margin was 12% as reported, declining year over year due to inflation, temporary shutdown costs and marketing investments partially offset by productivity. We believe our ceramic sales are in line with the U.S. market, with our pricing and mix impacted from increased competition and excess inventory. We expect the U.S. ceramic market to remain soft in the second half of the year, and we are taking many actions to improve our sales and costs. We are installing equipment for our new ceramic click installation system, expanding the distribution of our porcelain roofing system and introducing thick porcelain tiles for outdoor applications. We are initiating promotions to increase volume, and we are introducing lower price points to align with the market. Our new quartz countertop plant in
“During the quarter, our Flooring North America Segment’s sales decreased 7%. The segment’s operating margin was 6% as reported. As expected, operating income for the segment declined due to lower volume, inflation and ramp up cost of LVT.
“For the quarter, our Flooring Rest of the World Segment’s sales increased 9% as reported and 15% on a constant currency basis. The segment’s operating margin was 16% as reported and 17% on an adjusted basis, due to volume growth and lower inflation partially offset by price and mix. Even with softening economies, the segment is performing well due to our investments in product innovation, cost improvements and new businesses, including European LVT and carpet tile and Russian sheet vinyl. Our European laminate business is growing due to our unique surface technologies and water-resistance in our premium Quick-Step and Pergo brands. Our two original European LVT lines are performing well and are providing us with competitive advantages. Our new third LVT line dramatically improved during the period, with production speeds, efficiency and yields increasing substantially. The higher output is supporting new introductions that will expand our business. Our new sheet vinyl plant in
“The general conditions in our flooring markets around the world have become more challenging, and competition is more intense. We are taking actions to improve our sales, reduce our costs, manage our inventory and adjust our offerings. The U.S. flooring market is the most difficult, and we are taking actions to increase our volume and reduce our cost. In U.S. ceramic, lower demand and purchases ahead of tariffs have created excess inventory in the market, which is impacting sales and margins. Our LVT production has increased substantially in the U.S. and
“As we manage through the current conditions impacting the flooring sector, we are focused on optimizing the long-term growth and profitability of our business. We are implementing numerous changes that will enhance our future results. We have leading positions in our products and markets and our new investments will provide solid returns when further developed. Our balance sheet and cashflow are strong with our net debt to adjusted EBITDA at 1.8X, which will further decrease by the end of the year.”
ABOUT
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 and deflation in raw material prices and other input costs; inflation and deflation in consumer markets; 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; taxes and tax reform, product and other claims; litigation; and other risks identified in Mohawk’s
Conference call
The telephone number is 1-800-603-9255 for US/
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
(Unaudited) | ||||||||||||||
Condensed Consolidated Statement of Operations Data | Three Months Ended | Six Months Ended | ||||||||||||
(Amounts in thousands, except per share data) | June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||
Net sales | $ | 2,584,485 | 2,577,014 | 5,026,975 | 4,989,216 | |||||||||
Cost of sales | 1,847,867 | 1,810,459 | 3,665,430 | 3,517,969 | ||||||||||
Gross profit | 736,618 | 766,555 | 1,361,545 | 1,471,247 | ||||||||||
Selling, general and administrative expenses | 469,758 | 440,248 | 929,355 | 876,541 | ||||||||||
Operating income | 266,860 | 326,307 | 432,190 | 594,706 | ||||||||||
Interest expense | 10,521 | 7,863 | 20,994 | 15,391 | ||||||||||
Other (income) expense, net | (3,048 | ) | 2,090 | (6,784 | ) | 6,088 | ||||||||
Earnings before income taxes | 259,387 | 316,354 | 417,980 | 573,227 | ||||||||||
Income tax expense | 56,733 | 118,809 | 93,751 | 166,441 | ||||||||||
Net earnings including noncontrolling interest | 202,654 | 197,545 | 324,229 | 406,786 | ||||||||||
Net income attributable to noncontrolling interest | 213 | 959 | 203 | 1,434 | ||||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 202,441 | 196,586 | 324,026 | 405,352 | |||||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | ||||||||||||||
Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 2.80 | 2.64 | 4.50 | 5.44 | |||||||||
Weighted-average common shares outstanding - basic | 72,402 | 74,597 | 71,970 | 74,525 | ||||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | ||||||||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.79 | 2.62 | 4.48 | 5.41 | |||||||||
Weighted-average common shares outstanding - diluted | 72,680 | 74,937 | 72,250 | 74,928 | ||||||||||
Other Financial Information | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 396,190 | 437,758 | 566,327 | 620,986 | |||||||||
Depreciation and amortization | $ | 140,482 | 127,048 | 277,773 | 249,702 | |||||||||
Capital expenditures | $ | 144,111 | 247,418 | 281,059 | 498,354 | |||||||||
Condensed Consolidated Balance Sheet Data | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 128,096 | 518,226 | |||||||||||
Receivables, net | 1,819,474 | 1,737,935 | ||||||||||||
Inventories | 2,367,631 | 2,061,204 | ||||||||||||
Prepaid expenses and other current assets | 493,116 | 456,315 | ||||||||||||
Total current assets | 4,808,317 | 4,773,680 | ||||||||||||
Property, plant and equipment, net | 4,714,306 | 4,421,073 | ||||||||||||
Right of use operating lease assets |
343,716 | - | ||||||||||||
Goodwill | 2,565,702 | 2,447,046 | ||||||||||||
Intangible assets, net | 950,624 | 858,532 | ||||||||||||
Deferred income taxes and other non-current assets | 423,437 | 393,708 | ||||||||||||
Total assets | $ | 13,806,102 | 12,894,039 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt and commercial paper | $ | 1,891,512 | 1,146,511 | |||||||||||
Accounts payable and accrued expenses | 1,713,934 | 1,589,561 | ||||||||||||
Current operating lease liabilities | 100,345 | - | ||||||||||||
Total current liabilities | 3,705,791 | 2,736,072 | ||||||||||||
Long-term debt, less current portion | 1,169,489 | 1,884,023 | ||||||||||||
Non-current operating lease liabilities | 249,844 | - | ||||||||||||
Deferred income taxes and other long-term liabilities | 859,387 | 870,467 | ||||||||||||
Total liabilities | 5,984,511 | 5,490,562 | ||||||||||||
Redeemable noncontrolling interest | - | 30,043 | ||||||||||||
Total stockholders' equity | 7,821,591 | 7,373,434 | ||||||||||||
Total liabilities and stockholders' equity | $ | 13,806,102 | 12,894,039 | |||||||||||
Segment Information | Three Months Ended | As of or for the Six Months Ended | ||||||||||||
(Amounts in thousands) | June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||
Net sales: | ||||||||||||||
Global Ceramic | $ | 958,031 | 929,297 | 1,856,383 | 1,805,845 | |||||||||
Flooring NA | 983,439 | 1,057,570 | 1,905,419 | 2,007,928 | ||||||||||
Flooring ROW | 643,015 | 590,147 | 1,265,173 | 1,175,443 | ||||||||||
Intersegment sales | - | - | - | - | ||||||||||
Consolidated net sales | $ | 2,584,485 | 2,577,014 | 5,026,975 | 4,989,216 | |||||||||
Operating income (loss): | ||||||||||||||
Global Ceramic | $ | 118,141 | 134,760 | 202,476 | 248,177 | |||||||||
Flooring NA | 59,502 | 100,662 | 60,151 | 175,410 | ||||||||||
Flooring ROW | 101,533 | 100,166 | 191,964 | 189,226 | ||||||||||
Corporate and intersegment eliminations | (12,316 | ) | (9,281 | ) | (22,401 | ) | (18,107 | ) | ||||||
Consolidated operating income | $ | 266,860 | 326,307 | 432,190 | 594,706 | |||||||||
Assets: | ||||||||||||||
Global Ceramic | $ | 5,661,364 | 4,974,791 | |||||||||||
Flooring NA | 4,024,428 | 3,927,190 | ||||||||||||
Flooring ROW | 3,858,264 | 3,701,419 | ||||||||||||
Corporate and intersegment eliminations | 262,046 | 290,639 | ||||||||||||
Consolidated assets | $ | 13,806,102 | 12,894,039 |
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 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ | 202,441 | 196,586 | 324,026 | 405,352 | |||||||||||||
Adjusting items: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | 8,840 | 16,042 | 48,335 | 38,146 | ||||||||||||||
Acquisitions purchase accounting , including inventory step-up | 1,164 | 194 | 3,716 | 1,548 | ||||||||||||||
Release of indemnification asset | - | - | - | 1,749 | ||||||||||||||
Income taxes - reversal of uncertain tax position | - | - | - | (1,749 | ) | |||||||||||||
Income taxes | (2,701 | ) | 50,106 | (11,853 | ) | 43,166 | ||||||||||||
Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 209,744 | 262,928 | 364,224 | 488,212 | |||||||||||||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.89 | 3.51 | 5.04 | 6.52 | |||||||||||||
Weighted-average common shares outstanding - diluted | 72,680 | 74,937 | 72,250 | 74,928 | ||||||||||||||
Reconciliation of Total Debt to Net Debt | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
June 29, 2019 | ||||||||||||||||||
Current portion of long-term debt and commercial paper | $ | 1,891,512 | ||||||||||||||||
Long-term debt, less current portion | 1,169,489 | |||||||||||||||||
Less: Cash and cash equivalents | 128,096 | |||||||||||||||||
Net Debt | $ | 2,932,905 | ||||||||||||||||
Reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||||||||
(Amounts in thousands) | Trailing Twelve | |||||||||||||||||
Three Months Ended | Months Ended | |||||||||||||||||
September 29, 2018 | December 31, 2018 | March 30, 2019 | June 29, 2019 | June 29, 2019 | ||||||||||||||
Operating income | $ | 287,244 | 213,376 | 165,330 | 266,860 | 932,810 | ||||||||||||
Other (Expense)/ Income | (706 | ) | (504 | ) | 3,736 | 3,048 | 5,574 | |||||||||||
Net (income) loss attributable to noncontrolling interest | (1,013 | ) | (704 | ) | 10 | (213 | ) | (1,920 | ) | |||||||||
Depreciation and amortization | 132,972 | 139,092 | 137,291 | 140,482 | 549,837 | |||||||||||||
EBITDA | 418,497 | 351,260 | 306,367 | 410,177 | 1,486,301 | |||||||||||||
Restructuring, acquisition and integration-related and other costs | 19,890 | 20,412 | 39,495 | 8,840 | 88,637 | |||||||||||||
Acquisitions purchase accounting, including inventory step-up | 7,090 | 6,721 | 2,552 | 1,164 | 17,527 | |||||||||||||
Release of indemnification asset | - | 2,857 | - | - | 2,857 | |||||||||||||
Adjusted EBITDA | $ | 445,477 | 381,250 | 348,414 | 420,181 | 1,595,322 | ||||||||||||
Net Debt to Adjusted EBITDA | 1.8 | |||||||||||||||||
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate and on Constant Shipping Days Excluding Acquisition Volume | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||||
Net sales | $ | 2,584,485 | 2,577,014 | 5,026,975 | 4,989,216 | |||||||||||||
Adjustment to net sales on constant shipping days | 2,833 | - | 38,514 | - | ||||||||||||||
Adjustment to net sales on a constant exchange rate | 51,209 | - | 124,354 | - | ||||||||||||||
Net sales on a constant exchange rate and constant shipping days | 2,638,527 | 2,577,014 | 5,189,843 | 4,989,216 | ||||||||||||||
Less: impact of acquisition volume | (135,104 | ) | - | (254,995 | ) | - | ||||||||||||
Net sales on a constant exchange rate and constant shipping days excluding acquisition volume | $ | 2,503,423 | 2,577,014 | 4,934,848 | 4,989,216 | |||||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and on Constant Shipping Days Excluding Acquisition Volume | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
Global Ceramic | June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||||
Net sales | $ | 958,031 | 929,297 | 1,856,383 | 1,805,845 | |||||||||||||
Adjustment to net sales on constant shipping days | 2,833 | - | 14,382 | - | ||||||||||||||
Adjustment to segment net sales on a constant exchange rate | 17,235 | - | 44,114 | - | ||||||||||||||
Segment net sales on a constant exchange rate and constant shipping days | 978,099 | 929,297 | 1,914,879 | 1,805,845 | ||||||||||||||
Less: impact of acquisition volume | (53,722 | ) | - | (104,718 | ) | - | ||||||||||||
Segment net sales on a constant exchange rate and constant shipping days excluding acquisition volume | $ | 924,377 | 929,297 | 1,810,161 | 1,805,845 | |||||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on Constant Shipping Days | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
Flooring NA | June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||||
Net sales | $ | 983,439 | 1,057,570 | 1,905,419 | 2,007,928 | |||||||||||||
Adjustment to net sales on constant shipping days | - | - | 14,635 | - | ||||||||||||||
Segment net sales on constant shipping days | $ | 983,439 | 1,057,570 | 1,920,054 | 2,007,928 | |||||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and on Constant Shipping Days Excluding Acquisition Volume | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
Flooring ROW | June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||||
Net sales | $ | 643,015 | 590,147 | 1,265,173 | 1,175,443 | |||||||||||||
Adjustment to net sales on constant shipping days | - | - | 9,497 | - | ||||||||||||||
Adjustment to segment net sales on a constant exchange rate | 33,975 | - | 80,240 | - | ||||||||||||||
Segment net sales on a constant exchange rate and constant shipping days | 676,990 | 590,147 | 1,354,910 | 1,175,443 | ||||||||||||||
Less: impact of acquisition volume | (81,382 | ) | - | (150,277 | ) | - | ||||||||||||
Segment net sales on a constant exchange rate and constant shipping days excluding acquisition volume | $ | 595,608 | 590,147 | 1,204,633 | 1,175,443 | |||||||||||||
Reconciliation of Gross Profit to Adjusted Gross Profit | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||||||
Gross Profit | $ | 736,618 | 766,555 | |||||||||||||||
Adjustments to gross profit: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | 5,867 | 12,018 | ||||||||||||||||
Acquisitions purchase accounting, including inventory step-up | 1,164 | 194 | ||||||||||||||||
Adjusted gross profit | $ | 743,649 | 778,767 | |||||||||||||||
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||||||
Selling, general and administrative expenses | $ | 469,758 | 440,248 | |||||||||||||||
Adjustments to selling, general and administrative expenses: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | (3,068 | ) | (4,024 | ) | ||||||||||||||
Adjusted selling, general and administrative expenses | $ | 466,690 | 436,224 | |||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||||||
Operating income | $ | 266,860 | 326,307 | |||||||||||||||
Adjustments to operating income: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | 8,935 | 16,042 | ||||||||||||||||
Acquisitions purchase accounting, including inventory step-up | 1,164 | 194 | ||||||||||||||||
Adjusted operating income | $ | 276,959 | 342,543 | |||||||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Global Ceramic | June 29, 2019 | June 30, 2018 | ||||||||||||||||
Operating income | $ | 118,141 | 134,760 | |||||||||||||||
Adjustments to segment operating income: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | 653 | 5,408 | ||||||||||||||||
Adjusted segment operating income | $ | 118,794 | 140,168 | |||||||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Flooring NA | June 29, 2019 | June 30, 2018 | ||||||||||||||||
Operating income | $ | 59,502 | 100,662 | |||||||||||||||
Adjustments to segment operating income: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | 3,352 | 8,881 | ||||||||||||||||
Adjusted segment operating income | $ | 62,854 | 109,543 | |||||||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income and Adjusted Segment Operating Income on a Constant Exchange Rate | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Flooring ROW | June 29, 2019 | June 30, 2018 | ||||||||||||||||
Operating income | $ | 101,533 | 100,166 | |||||||||||||||
Adjustments to segment operating income: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | 4,412 | 1,338 | ||||||||||||||||
Acquisitions purchase accounting, including inventory step-up | 1,164 | 194 | ||||||||||||||||
Adjusted segment operating income | $ | 107,109 | 101,698 | |||||||||||||||
Adjustment to operating income on a constant exchange rate | 5,765 | - | ||||||||||||||||
Adjusted segment operating income on a constant exchange rate | $ | 112,874 | 101,698 | |||||||||||||||
Reconciliation of Earnings including Noncontrolling Interests Before Income Taxes to Adjusted Earnings Including Noncontrolling Interests Before Income Taxes | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||||||
Earnings before income taxes | $ | 259,387 | 316,354 | |||||||||||||||
Noncontrolling interests | (213 | ) | (959 | ) | ||||||||||||||
Adjustments to earnings including noncontrolling interests before income taxes: | ||||||||||||||||||
Restructuring, acquisition and integration-related and other costs | 8,840 | 16,042 | ||||||||||||||||
Acquisitions purchase accounting, including inventory step-up | 1,164 | 194 | ||||||||||||||||
Adjusted earnings including noncontrolling interests before income taxes | $ | 269,178 | 331,631 | |||||||||||||||
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||||||
Income tax expense | $ | 56,733 | 118,809 | |||||||||||||||
Income tax effect of adjusting items | 2,701 | (50,106 | ) | |||||||||||||||
Adjusted income tax expense | $ | 59,434 | 68,703 | |||||||||||||||
Adjusted income tax rate | 22.1 | % | 20.7 | % | ||||||||||||||
The Company supplements its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, with certain non-GAAP financial measures. As required by the Securities and Exchange Commission rules, the tables above present a reconciliation of the Company's non-GAAP financial measures to the most directly comparable US GAAP measure. Each of the non-GAAP measures set forth above should be considered in addition to the comparable US GAAP measure, and may not be comparable to similarly titled measures reported by other companies. The Company believes these non-GAAP measures, when reconciled to the corresponding US GAAP measure, help its investors as follows: Non-GAAP revenue measures that assist in identifying growth trends and in comparisons of revenue with prior and future periods and non-GAAP profitability measures that assist in understanding the long-term profitability trends of the Company's business and in comparisons of its profits with prior and future periods. | ||||||||||||||||||
The Company excludes certain items from its non-GAAP revenue measures because these items can vary dramatically between periods and can obscure underlying business trends. Items excluded from the Company's non-GAAP revenue measures include: foreign currency transactions and translation and the impact of acquisitions. | ||||||||||||||||||
The Company excludes certain items from its non-GAAP profitability measures because these items may not be indicative of, or are unrelated to, the Company's core operating performance. Items excluded from the Company's non-GAAP profitability measures include: restructuring, acquisition and integration-related and other costs, acquisition purchase accounting, including inventory step-up, release of indemnification assets and the reversal of uncertain tax positions. |
Contact:
Source: Mohawk Industries, Inc.