MOHAWK INDUSTRIES ANNOUNCES RECORD THIRD QUARTER EARNINGS
For the nine months ending
Commenting on
"For the quarter, our Global Ceramic segment sales were up 2% as reported. On a constant exchange rate basis, sales grew 11% and adjusted operating income rose 15% versus prior year with adjusted operating margin increasing to 15% as a result of improved productivity, volume, price and mix and the KAI acquisition partially offset by currency headwinds. Our U.S. ceramic sales continued to improve, as we increased our investments in new products, additional sales representatives and new service centers and galleries. The residential new construction sector remains the strongest part of our U.S. ceramic business. To satisfy increased demand in the U.S. market, we have begun importing ceramic tile from both our Russian and Bulgarian businesses, leveraging our global footprint to optimize our profitability. Growth in the Mexican ceramic market remains strong as we improved our position, and we are adding new sales representatives to expand our distribution base in all channels. In
"During the quarter, our
"For the quarter, our Flooring Rest of the World segment's sales rose 24% as reported or 41% on a constant exchange rate with adjusted operating income improving 48% over the prior year. The adjusted operating margin increased to almost 16% due to improved volume, input costs and the IVC acquisition partially offset by currency headwinds. Our laminate sales increased during the period, and our new product collection is one of our most successful ever due to its differentiated features and performance benefits such as our water resistant technology that is unique to the marketplace. Our wood sales improved along with our mix as we enhanced our Quick-Step and Pergo products with matt finishes, rustic visuals and brushed planks. Our vinyl business also improved with significant growth in LVT. We are introducing new LVT sizes with embossing, enhanced scratch resistance and superior click installation systems to add more value to our offering and participate in the commercial sector. As our Russian sheet vinyl business declined, we increased sales in other geographies to fully utilize our capacity. Our non-flooring product categories are up slightly with improving margins due to some relief in material costs. One of our chip board lines experienced an unplanned stop and will be down for four weeks, impacting operating income by approximately
"Mohawk's performance benefited from strategic acquisitions, new investments in sales and operations and improved manufacturing and logistics. The U.S. residential and commercial flooring markets have improved throughout 2015, with hard surface sales growing faster. Looking to the fourth quarter, we anticipate that the U.S. economy will continue its gradual growth. We expect year-over-year margin growth to continue in all segments as a result of our strategies and acquisitions. We are selectively increasing our SG&A relative to sales to optimize future market share. Our recent acquisitions are being integrated into our businesses and are positively impacting our earnings. The costs associated with new plant start-ups, interruption of our board production and four fewer days will be absorbed in the period. Taking all these factors into account, our guidance for the fourth quarter is
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; tax, 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) |
||||||||
Consolidated Statement of Operations |
Three Months Ended |
Nine Months Ended |
||||||
(Amounts in thousands, except per share data) |
October 3, 2015 |
September 27, 2014 |
October 3, 2015 |
September 27, 2014 |
||||
Net sales |
$ 2,150,656 |
1,990,658 |
6,073,566 |
5,852,000 |
||||
Cost of sales |
1,489,252 |
1,434,236 |
4,285,090 |
4,239,411 |
||||
Gross profit |
661,404 |
556,422 |
1,788,476 |
1,612,589 |
||||
Selling, general and administrative expenses |
372,670 |
342,729 |
1,200,152 |
1,045,913 |
||||
Operating income |
288,734 |
213,693 |
588,324 |
566,676 |
||||
Interest expense |
19,319 |
34,786 |
52,606 |
77,584 |
||||
Other expense (income), net |
4,249 |
(2,374) |
6,094 |
961 |
||||
Earnings before income taxes |
265,166 |
181,281 |
529,624 |
488,131 |
||||
Income tax expense |
49,463 |
30,021 |
104,643 |
102,957 |
||||
Net earnings including noncontrolling interest |
215,703 |
151,260 |
424,981 |
385,174 |
||||
Net earnings (loss) attributable to noncontrolling interest |
798 |
(6) |
1,238 |
77 |
||||
Net earnings attributable to Mohawk Industries, Inc. |
$ 214,905 |
151,266 |
423,743 |
385,097 |
||||
Basic earnings per share attributable to Mohawk Industries, Inc. |
||||||||
Basic earnings per share attributable to Mohawk Industries, Inc. |
$ 2.91 |
2.08 |
5.77 |
5.29 |
||||
Weighted-average common shares outstanding - basic |
73,915 |
72,864 |
73,384 |
72,814 |
||||
Diluted earnings per share attributable to Mohawk Industries, Inc. |
||||||||
Diluted earnings per share attributable to Mohawk Industries, Inc. |
$ 2.89 |
2.06 |
5.73 |
5.25 |
||||
Weighted-average common shares outstanding - diluted |
74,438 |
73,376 |
73,907 |
73,332 |
||||
Other Financial Information |
||||||||
(Amounts in thousands) |
||||||||
Depreciation and amortization |
$ 94,955 |
85,167 |
268,622 |
249,905 |
||||
Capital expenditures |
$ 123,648 |
141,883 |
352,070 |
391,580 |
||||
Consolidated Balance Sheet Data |
||||||||
(Amounts in thousands) |
||||||||
October 3, 2015 |
September 27, 2014 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ 110,716 |
105,569 |
||||||
Receivables, net |
1,340,650 |
1,209,557 |
||||||
Inventories |
1,621,154 |
1,640,487 |
||||||
Prepaid expenses and other current assets |
273,775 |
275,981 |
||||||
Deferred income taxes |
152,899 |
137,220 |
||||||
Total current assets |
3,499,194 |
3,368,814 |
||||||
Property, plant and equipment, net |
3,046,491 |
2,772,722 |
||||||
Goodwill |
2,280,722 |
1,668,520 |
||||||
Intangible assets, net |
918,655 |
746,304 |
||||||
Deferred income taxes and other non-current assets |
319,420 |
145,100 |
||||||
Total assets |
$ 10,064,482 |
8,701,460 |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt and commercial paper |
$ 1,927,815 |
583,495 |
||||||
Accounts payable and accrued expenses |
1,371,969 |
1,247,862 |
||||||
Total current liabilities |
3,299,784 |
1,831,357 |
||||||
Long-term debt, less current portion |
1,263,176 |
1,806,821 |
||||||
Deferred income taxes and other long-term liabilities |
723,489 |
486,764 |
||||||
Total liabilities |
5,286,449 |
4,124,942 |
||||||
Redeemable noncontrolling interest |
22,150 |
- |
||||||
Total stockholders' equity |
4,755,883 |
4,576,518 |
||||||
Total liabilities and stockholders' equity |
$ 10,064,482 |
8,701,460 |
||||||
Segment Information |
Three Months Ended |
As of or for the Nine Months Ended |
||||||
(Amounts in thousands) |
October 3, 2015 |
September 27, 2014 |
October 3, 2015 |
September 27, 2014 |
||||
Net sales: |
||||||||
Global Ceramic |
$ 791,538 |
779,842 |
2,301,168 |
2,271,660 |
||||
Flooring NA |
955,099 |
886,317 |
2,722,347 |
2,562,560 |
||||
Flooring ROW |
404,026 |
326,146 |
1,050,390 |
1,021,951 |
||||
Intersegment sales |
(7) |
(1,647) |
(339) |
(4,171) |
||||
Consolidated net sales |
$ 2,150,656 |
1,990,658 |
6,073,566 |
5,852,000 |
||||
Operating income (loss): |
||||||||
Global Ceramic |
$ 120,055 |
101,254 |
326,571 |
268,320 |
||||
Flooring NA |
125,910 |
83,623 |
145,861 |
207,578 |
||||
Flooring ROW |
55,471 |
35,046 |
153,164 |
113,909 |
||||
Corporate and eliminations |
(12,702) |
(6,230) |
(37,272) |
(23,131) |
||||
Consolidated operating income |
$ 288,734 |
213,693 |
588,324 |
566,676 |
||||
Assets: |
||||||||
Global Ceramic |
$ 3,938,242 |
3,788,164 |
||||||
Flooring NA |
3,195,904 |
2,641,171 |
||||||
Flooring ROW |
2,699,255 |
2,033,718 |
||||||
Corporate and eliminations |
231,081 |
238,407 |
||||||
Consolidated assets |
$ 10,064,482 |
8,701,460 |
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 |
Nine Months Ended |
|||||||||||
October 3, 2015 |
September 27, 2014 |
October 3, 2015 |
September 27, 2014 |
|||||||||
Net earnings attributable to Mohawk Industries, Inc. |
$ 214,905 |
151,266 |
423,743 |
385,097 |
||||||||
Adjusting items: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
12,770 |
14,013 |
43,784 |
36,907 |
||||||||
Acquisitions purchase accounting (inventory step-up) |
7,160 |
- |
13,316 |
- |
||||||||
Legal settlement and reserves |
- |
10,000 |
127,000 |
10,000 |
||||||||
Bond redemption |
- |
15,450 |
- |
15,450 |
||||||||
Deferred loan costs |
- |
1,080 |
651 |
1,080 |
||||||||
Income taxes |
(12,940) |
(12,792) |
(62,984) |
(17,412) |
||||||||
Adjusted net earnings attributable to Mohawk Industries, Inc. |
$ 221,895 |
179,017 |
545,510 |
431,122 |
||||||||
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. |
$ 2.98 |
2.44 |
7.38 |
5.88 |
||||||||
Weighted-average common shares outstanding - diluted |
74,438 |
73,376 |
73,907 |
73,332 |
||||||||
Reconciliation of Total Debt to Net Debt |
||||||||||||
(Amounts in thousands) |
||||||||||||
October 3, 2015 |
||||||||||||
Current portion of long-term debt and commercial paper |
$ 1,927,815 |
|||||||||||
Long-term debt, less current portion |
1,263,176 |
|||||||||||
Less: Cash and cash equivalents |
110,716 |
|||||||||||
Net Debt |
$ 3,080,275 |
|||||||||||
Reconciliation of Operating Income to Adjusted EBITDA |
||||||||||||
(Amounts in thousands) |
Trailing Twelve |
|||||||||||
Three Months Ended |
Months Ended |
|||||||||||
December 31, 2014 |
April 4, 2015 |
July 4, 2015 |
October 3, 2015 |
October 3, 2015 |
||||||||
Operating income |
$ 206,120 |
43,774 |
255,816 |
288,734 |
794,444 |
|||||||
Other (expense) income |
(9,737) |
1,083 |
(2,928) |
(4,249) |
(15,831) |
|||||||
Net (earnings) loss attributable to non-controlling interest |
(212) |
(158) |
(282) |
(798) |
(1,450) |
|||||||
Depreciation and amortization |
95,665 |
85,656 |
88,011 |
94,955 |
364,287 |
|||||||
EBITDA |
291,836 |
130,355 |
340,617 |
378,642 |
1,141,450 |
|||||||
Restructuring, acquisition and integration-related and other costs |
21,859 |
8,169 |
17,275 |
11,690 |
58,993 |
|||||||
Acquisitions purchase accounting (inventory step-up) |
- |
- |
6,156 |
7,160 |
13,316 |
|||||||
Legal settlement and reserves |
- |
125,000 |
- |
- |
125,000 |
|||||||
Adjusted EBITDA |
$ 313,695 |
263,524 |
364,048 |
397,492 |
1,338,759 |
|||||||
Net Debt to Adjusted EBITDA |
2.3 |
|||||||||||
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
October 3, 2015 |
September 27, 2014 |
October 3, 2015 |
September 27, 2014 |
|||||||||
Net sales |
$ 2,150,656 |
1,990,658 |
6,073,566 |
5,852,000 |
||||||||
Adjustment to net sales on a constant exchange rate |
131,068 |
- |
408,745 |
- |
||||||||
Net sales on a constant exchange rate |
$ 2,281,724 |
1,990,658 |
6,482,311 |
5,852,000 |
||||||||
Reconciliation of 2015 Net Sales to Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
October 3, 2015 |
September 27, 2014 |
|||||||||||
Net sales |
$ 2,150,656 |
1,990,658 |
||||||||||
Adjustment to net sales on a constant exchange rate |
131,068 |
- |
||||||||||
Less: 2015 Q3 impact of acquisition volume |
(178,560) |
- |
||||||||||
2015 pro forma net sales on a constant exchange rate excluding acquisition volume |
$ 2,103,164 |
1,990,658 |
||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Global Ceramic |
October 3, 2015 |
September 27, 2014 |
||||||||||
Net sales |
$ 791,538 |
779,842 |
||||||||||
Adjustment to segment net sales on a constant exchange rate |
75,785 |
- |
||||||||||
Segment net sales on a constant exchange rate |
$ 867,323 |
779,842 |
||||||||||
Reconciliation of 2015 Segment Net Sales to Segment Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Global Ceramic |
October 3, 2015 |
September 27, 2014 |
||||||||||
Net sales |
$ 791,538 |
779,842 |
||||||||||
Adjustment to segment net sales on a constant exchange rate |
75,785 |
- |
||||||||||
Less: 2015 Q3 impact of acquisition volume |
(26,827) |
- |
||||||||||
2015 segment pro forma net sales on a constant exchange rate excluding acquisition volume |
$ 840,496 |
779,842 |
||||||||||
Reconciliation of 2015 Segment Net Sales to Segment Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Flooring NA |
October 3, 2015 |
September 27, 2014 |
||||||||||
Net sales |
$ 955,099 |
886,317 |
||||||||||
Adjustment to segment net sales on a constant exchange rate |
- |
- |
||||||||||
Less: 2015 Q3 impact of acquisition volume |
(37,779) |
- |
||||||||||
2015 segment pro forma net sales on a constant exchange rate excluding acquisition volume |
$ 917,320 |
886,317 |
||||||||||
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Flooring ROW |
October 3, 2015 |
September 27, 2014 |
||||||||||
Net sales |
$ 404,026 |
326,146 |
||||||||||
Adjustment to segment net sales on a constant exchange rate |
55,283 |
- |
||||||||||
Segment net sales on a constant exchange rate |
$ 459,309 |
326,146 |
||||||||||
Reconciliation of 2015 Segment Net Sales to Pro Forma Segment Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Flooring ROW |
October 3, 2015 |
September 27, 2014 |
||||||||||
Net sales |
$ 404,026 |
326,146 |
||||||||||
Adjustment to segment net sales on a constant exchange rate |
55,283 |
- |
||||||||||
Less: 2015 Q3 impact of acquisition volume |
(113,955) |
- |
||||||||||
2015 Segment Pro forma net sales on a constant exchange rate excluding acquisition volume |
$ 345,354 |
326,146 |
||||||||||
Reconciliation of Gross Profit to Adjusted Gross Profit |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
October 3, 2015 |
September 27, 2014 |
|||||||||||
Gross Profit |
$ 661,404 |
556,422 |
||||||||||
Adjustments to gross profit: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
7,291 |
7,261 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
7,160 |
- |
||||||||||
Adjusted gross profit |
$ 675,855 |
563,683 |
||||||||||
Adjusted gross profit as a percent of net sales |
31.4% |
28.3% |
||||||||||
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
October 3, 2015 |
September 27, 2014 |
|||||||||||
Selling, general and administrative expenses |
$ 372,670 |
342,729 |
||||||||||
Adjustment to selling, general and administrative expenses: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
(5,479) |
(6,752) |
||||||||||
Legal settlement and reserves |
- |
(10,000) |
||||||||||
Adjusted selling, general and administrative expenses |
$ 367,191 |
325,977 |
||||||||||
Adjusted selling, general and administrative expenses as a percent of net sales |
17.1% |
16.4% |
||||||||||
Reconciliation of Operating Income to Adjusted Operating Income |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
October 3, 2015 |
September 27, 2014 |
|||||||||||
Operating income |
$ 288,734 |
213,693 |
||||||||||
Adjustments to operating income: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
12,770 |
14,013 |
||||||||||
Legal settlement and reserves |
- |
10,000 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
7,160 |
- |
||||||||||
Adjusted operating income |
$ 308,664 |
237,706 |
||||||||||
Adjusted operating income as a percent of net sales |
14.4% |
11.9% |
||||||||||
Reconciliation of Adjusted Operating Income on a Constant Exchange Rate |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
October 3, 2015 |
September 27, 2014 |
|||||||||||
Operating income |
$ 288,734 |
213,693 |
||||||||||
Adjustments to operating income: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
12,770 |
14,013 |
||||||||||
Legal settlement and reserves |
- |
10,000 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
7,160 |
- |
||||||||||
Adjustments to operating income on a constant exchange rate |
21,392 |
- |
||||||||||
Adjusted operating income on constant exchange rate |
$ 330,056 |
237,706 |
||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Global Ceramic |
October 3, 2015 |
September 27, 2014 |
||||||||||
Operating income |
$ 120,055 |
101,254 |
||||||||||
Adjustments to segment operating income: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
118 |
4,248 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
949 |
- |
||||||||||
Adjusted segment operating income |
$ 121,122 |
105,502 |
||||||||||
Adjusted operating income as a percent of net sales |
15.3% |
13.5% |
||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Global Ceramic |
October 3, 2015 |
September 27, 2014 |
||||||||||
Operating income |
$ 120,055 |
101,254 |
||||||||||
Adjustments to segment operating income: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
118 |
4,248 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
949 |
- |
||||||||||
Adjustments to operating income on a constant exchange rate |
12,701 |
- |
||||||||||
Adjusted segment operating income on constant exchange rate |
$ 133,823 |
105,502 |
||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Flooring NA |
October 3, 2015 |
September 27, 2014 |
||||||||||
Operating income |
$ 125,910 |
83,623 |
||||||||||
Adjustments to segment operating income: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
5,148 |
10,578 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
1,527 |
- |
||||||||||
Adjusted segment operating income |
$ 132,585 |
94,201 |
||||||||||
Adjusted operating income as a percent of net sales |
13.9% |
10.6% |
||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Flooring ROW |
October 3, 2015 |
September 27, 2014 |
||||||||||
Operating income |
$ 55,471 |
35,046 |
||||||||||
Adjustment to segment operating income: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
4,030 |
8,437 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
4,683 |
- |
||||||||||
Adjusted segment operating income |
$ 64,184 |
43,483 |
||||||||||
Adjusted operating income as a percent of net sales |
15.9% |
13.3% |
||||||||||
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
Flooring ROW |
October 3, 2015 |
September 27, 2014 |
||||||||||
Operating income |
$ 55,471 |
35,046 |
||||||||||
Adjustment to segment operating income: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
4,030 |
8,437 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
4,683 |
- |
||||||||||
Adjustments to operating income on a constant exchange rate |
8,691 |
- |
||||||||||
Adjusted segment operating income on constant exchange rate |
$ 72,875 |
43,483 |
||||||||||
Reconciliation of Earnings from Continuing Operations Including Noncontrolling Interest Before Income Taxes to Adjusted Earnings from Continuing Operations Including Noncontrolling Interest Before Income Taxes |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
October 3, 2015 |
September 27, 2014 |
|||||||||||
Earnings before income taxes |
$ 265,166 |
181,281 |
||||||||||
Noncontrolling interest |
(798) |
6 |
||||||||||
Adjustments to earnings from continuing operations before income taxes: |
||||||||||||
Restructuring, acquisition and integration-related and other costs |
12,770 |
14,013 |
||||||||||
Acquisitions purchase accounting (inventory step-up) |
7,160 |
- |
||||||||||
Legal settlement and reserves |
- |
10,000 |
||||||||||
Bond redemption |
- |
15,450 |
||||||||||
Deferred loan costs |
- |
1,080 |
||||||||||
Adjusted earnings before income taxes |
$ 284,298 |
221,830 |
||||||||||
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense |
||||||||||||
(Amounts in thousands) |
||||||||||||
Three Months Ended |
||||||||||||
October 3, 2015 |
September 27, 2014 |
|||||||||||
Income tax expense |
$ 49,463 |
30,021 |
||||||||||
Income tax effect of adjusting items |
12,940 |
12,792 |
||||||||||
Adjusted income tax expense |
$ 62,403 |
42,813 |
||||||||||
Adjusted income tax rate |
21.9% |
19.3% |
||||||||||
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, integration-related and other costs, legal settlement and reserves, and acquisitions purchase accounting (inventory step-up) is useful because it allows investors to evaluate our performance for different periods on a more comparable basis. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mohawk-industries-announces-record-third-quarter-earnings-300173534.html
SOURCE
Frank H. Boykin, Chief Financial Officer, (706) 624-2695