Leggett & Platt Reports 4Q And Full Year 2019 Results
- 4Q sales grew 9%, to
$1.14 billion - 4Q EPS was
$.64 and 4Q adjusted1 EPS was$.68 , increases vs 4Q18 - 2019 sales increased 11%, to
$4.75 billion - 2019 EPS was
$2.47 and 2019 adjusted1 EPS was$2.57 , increases vs 2018 - 2019 cash flow from operations was a record
$668 million - 2020 guidance: EPS of
$2 .40–$2.60 on sales of$4 .7–$4.9 billion
Diversified manufacturer
- Acquisitions added 13% to sales growth (primarily ECS)
- Organic sales were down 4%:
- Volume up 2% absent declines from exited business (which reduced sales 3%)
- Raw material-related selling price decreases and negative currency impact -3%
Fourth quarter EBIT was
- EBIT and adjusted1 EBIT benefited from:
- ECS acquisition
- Lower raw material costs (including LIFO benefit)
- Improved earnings performance in Furniture Products
- EBIT margin was 11.8%, up from 8.0% in the fourth quarter of 2018, and adjusted1 EBIT margin was 12.2%, up from 11.5%
Fourth quarter EPS was
Full-Year Results:
2019 sales of
- Acquisitions added 14% to sales growth (ECS and other smaller acquisitions)
- Organic sales were down 3%:
- Volume down 3% due to exited business
- Raw material-related selling price increases 1%
- Currency impact -1%
2019 EBIT was
- EBIT and adjusted1 EBIT benefited from:
- ECS acquisition
- Lower raw material costs (including LIFO benefit)
- Improved earnings performance in Furniture Products
- EBIT margin was 10.8%, up from 10.2% in 2018, and adjusted1 EBIT margin was 11.1%, flat with 2018
2019 EPS was
Adjustments to Earnings:
- Fourth quarter included
$5 million (pretax), or$.04 per share, of restructuring-related charges $3 million cash and$2 million non-cash- Full-year adjustments included restructuring-related charges of
$15 million (pretax) and ECS transaction costs of$1 million (pretax), or$.10 per share $9 million cash and$7 million non-cash
CEO Comments
Chairman and CEO
"Portfolio management remains a strategic priority. Over the past several years we have enhanced our business portfolio and improved margins by growing our stronger businesses and exiting or restructuring businesses that consistently struggled to deliver acceptable margins and returns. During 2019 we acquired two businesses: ECS, which contributed meaningfully to EBIT and operating cash flow, and a small Geo Components operation. We also completed the restructuring of
"During 2019, sales grew 11% primarily from the ECS acquisition. Sales were stronger in U.S. Spring, Automotive,
"In 2020, we expect mid-single-digit volume growth from Automotive, U.S. Spring, ECS, Aerospace, Geo Components and
Debt and Cash Flow
- Debt was 2.9x trailing 12-months pro forma adjusted1 EBITDA; we expect to be at debt to trailing 12-months adjusted EBITDA of approximately 2.5x by the end of 2020
- Operating cash flow was a record
$668 million during 2019, an increase of$228 million versus last year
2020 Guidance
- Sales are expected to be
$4 .7–$4.9 billion, -1% to +3% versus 2019 - Organic sales are expected to be -2% to +2%
- Volume expected to be -1% to +3%, including -1% from exited business
- Raw material-related selling price decreases should reduce sales by 1%
- Prior year acquisitions should add 1% to sales growth
- EPS is expected to be
$2 .40–$2.60 - Based on this guidance range, EBIT margin should be 10.7%–11.0%
- Additional guidance expectations:
- Depreciation and amortization
$200 million - Net interest expense
$80 million - Effective tax rate 23%
- Fully diluted shares of 136 million
- Operating cash flow
$550 million - Capital expenditures
$160 million
LIFO
- In 2019, lower steel costs resulted in a LIFO benefit of
$32 million (pretax) - In 2018, increasing steel costs resulted in LIFO expense of
$31 million (pretax)
SEGMENT RESULTS – Fourth Quarter 2019 (versus 4Q 2018)
Residential Products –
- Total sales grew 32%; acquisitions added 33%
- Organic sales decreased 1%
- Volume was up 2%, primarily from continued market share and content gains in U.S. Spring
- Raw material-related price decreases reduced sales 3%
- EBIT increased
$26 million , primarily from the non-recurrence of a$16 million non-cash impairment charge related to a note receivable and$4 million in costs incurred with the ECS acquisition in the fourth quarter of 2018. EBIT also benefited from ECS acquisition earnings (after$12 million of amortization expense).
Industrial Products –
- Total sales decreased 24%
- Volume was down 14% from weak trade demand for steel rod and wire
- Raw material-related selling price decreases reduced sales 10%
- EBIT increased
$1 million , primarily from lower raw material costs (including LIFO benefit) largely offset by lower metal margin and lower trade steel rod and wire volume
Furniture Products –
- Total sales were down 5%
- Volume decreased 4%, primarily from our decision to exit Fashion Bed and planned declines in
Home Furniture , partially offset by growth in Adjustable Bed - Currency impact and raw material-related selling price decreases reduced sales 1%
- EBIT increased
$20 million , primarily from lower restructuring-related charges ($3 million in 4Q 2019 versus$15 million in 4Q 2018) as well as lower raw material costs (including LIFO benefit) and lower fixed costs attributable to restructuring activity
Specialized Products –
- Total sales increased 4%
- Volume was up 5%, primarily from growth in
Automotive and Aerospace - Currency impact decreased sales 1%
- EBIT increased
$1 million , primarily from higher volume inAutomotive and Aerospace partially offset by lower volume in Hydraulic Cylinders
SEGMENT RESULTS – Full Year 2019 (versus 2018)
Residential Products –
- Total sales grew 36%; acquisitions added 35%
- Organic sales increased 1%
- Volume was up 1%, with growth in U.S. Spring, European Spring and Geo Components offset by lower sales in other businesses, primarily Flooring Products and Machinery
- Raw material-related price increases were offset by a negative currency impact
- EBIT increased
$38 million , primarily from earnings from the ECS acquisition (after$45 million of amortization expense and a$5 million non-recurring charge related to acquired inventories) and the non-recurrence of a$16 million non-cash impairment charge related to a note receivable in the fourth quarter of 2018
Industrial Products –
- Total sales decreased 10%
- Volume was down 13% from weak trade demand for steel rod and wire
- Raw material-related selling price increases added 3% to sales
- EBIT increased
$29 million , primarily from lower raw material costs (including LIFO benefit) partially offset by lower trade steel rod and wire volume
Furniture Products –
- Total sales were down 8%
- Volume decreased 8%, primarily from our decision to exit Fashion Bed and planned declines in
Home Furniture , partially offset by growth inWork Furniture - Raw material-related selling price increases were offset by a negative currency impact
- EBIT increased
$24 million , primarily from improved pricing and lower fixed costs attributable to restructuring activity and lower restructuring-related charges ($10 million in 2019 versus$15 million in 2018)
Specialized Products –
- Total sales were up 1% from the PHC acquisition in early 2018; organic sales were flat
- Volume was up 2%, from growth in
Automotive and Aerospace - Currency impact, net of raw material-related price increases in Hydraulic Cylinders, decreased sales 2%
- EBIT decreased
$18 million , with earnings from higher volume offset by higher operating costs in Aerospace and Hydraulic Cylinders, negative currency impact, and investments to support future growth in Automotive
Slides and Conference Call
A set of slides containing summary financial information is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at
First quarter results will be released after the market closes on
FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.
COMPANY DESCRIPTION: At
FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," including, but not limited to, the 2020 total sales, organic sales, volume growth from Automotive, U.S. Spring, ECS, Aerospace, Geo Components and
CONTACT: Investor Relations, (417) 358-8131 or invest@leggett.com
1 Please refer to attached tables for Non-GAAP reconciliations.
LEGGETT & PLATT |
||||||||||||
RESULTS OF OPERATIONS |
FOURTH QUARTER |
YEAR TO DATE |
||||||||||
(In millions, except per share data) |
2019 |
2018 |
Change |
2019 |
2018 |
Change |
||||||
Net sales |
$1,144.9 |
$1,046.7 |
9% |
$4,752.5 |
$4,269.5 |
11% |
||||||
Cost of goods sold |
872.5 |
833.5 |
3,701.9 |
3,380.8 |
||||||||
Gross profit |
272.4 |
213.2 |
28% |
1,050.6 |
888.7 |
18% |
||||||
Selling & administrative expenses |
117.6 |
111.9 |
5% |
469.7 |
425.1 |
10% |
||||||
Amortization |
16.0 |
5.2 |
63.3 |
20.5 |
||||||||
Other expense (income), net |
3.7 |
12.1 |
4.2 |
6.2 |
||||||||
Earnings before interest and taxes |
135.1 |
84.0 |
61% |
513.4 |
436.9 |
18% |
||||||
Net interest expense |
20.3 |
15.8 |
83.3 |
52.5 |
||||||||
Earnings before income taxes |
114.8 |
68.2 |
430.1 |
384.4 |
||||||||
Income taxes |
27.9 |
15.1 |
96.2 |
78.3 |
||||||||
Net earnings |
86.9 |
53.1 |
333.9 |
306.1 |
||||||||
Less net income from non-controlling interest |
(0.1) |
(0.1) |
(0.1) |
(0.2) |
||||||||
Net earnings attributable to L&P |
$ 86.8 |
$ 53.0 |
64% |
$ 333.8 |
$ 305.9 |
9% |
||||||
Earnings per diluted share |
||||||||||||
Net earnings per diluted share |
$0.64 |
$0.39 |
64% |
$2.47 |
$2.26 |
9% |
||||||
Shares outstanding |
||||||||||||
Common stock (at end of period) |
131.8 |
130.5 |
1.0% |
131.8 |
130.5 |
|||||||
Basic (average for period) |
135.2 |
134.0 |
134.8 |
134.3 |
||||||||
Diluted (average for period) |
135.8 |
134.7 |
0.8% |
135.4 |
135.2 |
|||||||
CASH FLOW |
FOURTH QUARTER |
YEAR TO DATE |
||||||||||
(In millions) |
2019 |
2018 |
Change |
2019 |
2018 |
Change |
||||||
Net earnings |
$ 86.9 |
$ 53.1 |
$ 333.9 |
$ 306.1 |
||||||||
Depreciation and amortization |
47.2 |
35.1 |
191.9 |
136.1 |
||||||||
Working capital decrease (increase) |
101.1 |
75.5 |
80.5 |
(46.0) |
||||||||
Impairments |
2.1 |
5.1 |
7.8 |
5.4 |
||||||||
Other operating activity |
14.1 |
20.4 |
53.9 |
38.7 |
||||||||
Net Cash from Operating Activity |
$ 251.4 |
$ 189.2 |
33% |
$ 668.0 |
$ 440.3 |
52% |
||||||
Additions to PP&E |
(40.1) |
(37.0) |
(143.1) |
(159.6) |
(10%) |
|||||||
Purchase of companies, net of cash |
(20.8) |
(1.3) |
(1,265.1) |
(109.2) |
||||||||
Proceeds from business and asset sales |
0.2 |
1.2 |
5.5 |
4.9 |
||||||||
Dividends paid |
(52.6) |
(49.5) |
(204.6) |
(193.7) |
||||||||
Repurchase of common stock, net |
(2.7) |
0.3 |
(7.1) |
(107.6) |
||||||||
Additions (payments) to debt, net |
(127.5) |
(185.3) |
947.0 |
(85.8) |
||||||||
Other |
(2.3) |
(13.0) |
(21.1) |
(47.3) |
||||||||
Increase (Decr.) in Cash & Equiv. |
$ 5.6 |
$ (95.4) |
$ (20.5) |
$ (258.0) |
||||||||
FINANCIAL POSITION |
31-Dec |
|||||||||||
(In millions) |
2019 |
2018 |
Change |
|||||||||
Cash and equivalents |
$ 247.6 |
$ 268.1 |
||||||||||
Receivables |
591.9 |
571.6 |
||||||||||
Inventories |
636.7 |
633.9 |
||||||||||
Other current assets |
61.9 |
51.0 |
||||||||||
Total current assets |
1,538.1 |
1,524.6 |
1% |
|||||||||
Net fixed assets |
830.8 |
728.5 |
||||||||||
Operating lease right-of-use assets |
158.8 |
— |
||||||||||
Goodwill |
1,406.3 |
833.8 |
||||||||||
Intangible assets and deferred costs |
764.0 |
178.7 |
||||||||||
Other assets |
118.4 |
116.4 |
||||||||||
TOTAL ASSETS |
$4,816.4 |
$3,382.0 |
42% |
|||||||||
Trade accounts payable |
$ 463.4 |
$ 465.4 |
||||||||||
Current debt maturities |
51.1 |
1.2 |
||||||||||
Current operating lease liabilities |
39.3 |
— |
||||||||||
Other current liabilities |
374.3 |
349.1 |
||||||||||
Total current liabilities |
928.1 |
815.7 |
14% |
|||||||||
Long-term debt |
2,066.5 |
1,167.8 |
77% |
|||||||||
Operating lease liabilities |
121.6 |
— |
||||||||||
Deferred taxes and other liabilities |
387.7 |
240.9 |
||||||||||
Equity |
1,312.5 |
1,157.6 |
13% |
|||||||||
Total Capitalization |
3,888.3 |
2,566.3 |
52% |
|||||||||
TOTAL LIABILITIES & EQUITY |
$4,816.4 |
$3,382.0 |
42% |
LEGGETT & PLATT |
|||||||||||||
SEGMENT RESULTS1 |
FOURTH QUARTER |
YEAR TO DATE |
|||||||||||
(In millions) |
2019 |
2018 |
Change |
2019 |
2018 |
Change |
|||||||
Residential Products |
|||||||||||||
External Sales |
$ 556.0 |
$ 420.3 |
32.3% |
$2,331.0 |
$1,703.7 |
36.8% |
|||||||
Total Sales (External + Inter-segment) |
559.1 |
424.7 |
31.6% |
2,344.2 |
1,720.8 |
36.2% |
|||||||
EBIT |
41.1 |
14.8 |
178% |
170.6 |
132.8 |
28% |
|||||||
EBIT Margin |
7.4% |
3.5% |
390 bps |
2 |
7.3% |
7.7% |
(40) bps |
2 |
|||||
Restructuring-related charges |
2.0 |
0.8 |
4.1 |
0.8 |
|||||||||
ECS transaction costs |
— |
3.7 |
0.9 |
3.7 |
|||||||||
Note impairment |
— |
15.9 |
— |
15.9 |
|||||||||
Adjusted EBIT |
43.1 |
35.2 |
22% |
175.6 |
153.2 |
15% |
|||||||
Adjusted EBIT Margin |
7.7% |
8.3% |
(60) bps |
7.5% |
8.9% |
(140) bps |
|||||||
Depreciation and amortization |
26.6 |
12.2 |
104.2 |
46.6 |
|||||||||
Adjusted EBITDA |
69.7 |
47.4 |
47% |
279.8 |
199.8 |
40% |
|||||||
Adjusted EBITDA Margin |
12.5% |
11.2% |
130 bps |
11.9% |
11.6% |
30 bps |
|||||||
Industrial Products |
|||||||||||||
External Sales |
$ 57.5 |
$ 91.6 |
(37.2%) |
$ 295.6 |
$ 367.4 |
(19.5%) |
|||||||
Total Sales (External + Inter-segment) |
126.8 |
166.1 |
(23.7%) |
595.2 |
662.4 |
(10.1%) |
|||||||
EBIT |
21.6 |
20.8 |
4% |
97.5 |
68.4 |
43% |
|||||||
EBIT Margin |
17.0% |
12.5% |
450 bps |
16.4% |
10.3% |
610 bps |
|||||||
Restructuring-related charges |
0.4 |
— |
1.0 |
— |
|||||||||
Adjusted EBIT |
22.0 |
20.8 |
6% |
98.5 |
68.4 |
44% |
|||||||
Adjusted EBIT Margin |
17.4% |
12.5% |
490 bps |
16.5% |
10.3% |
620 bps |
|||||||
Depreciation and amortization |
2.8 |
2.6 |
11.0 |
10.3 |
|||||||||
Adjusted EBITDA |
24.8 |
23.4 |
6% |
109.5 |
78.7 |
39% |
|||||||
Adjusted EBITDA Margin |
19.6% |
14.1% |
550 bps |
18.4% |
11.9% |
650 bps |
|||||||
Furniture Products |
|||||||||||||
External Sales |
$ 261.7 |
$ 275.3 |
(4.9%) |
$1,059.1 |
$1,142.1 |
(7.3%) |
|||||||
Total Sales (External + Inter-segment) |
263.8 |
278.7 |
(5.3%) |
1,068.6 |
1,155.9 |
(7.6%) |
|||||||
EBIT |
21.5 |
1.3 |
1554% |
73.4 |
49.6 |
48% |
|||||||
EBIT Margin |
8.2% |
0.5% |
770 bps |
6.9% |
4.3% |
260 bps |
|||||||
Restructuring-related charges |
2.6 |
15.5 |
10.0 |
15.5 |
|||||||||
Adjusted EBIT |
24.1 |
16.8 |
43% |
83.4 |
65.1 |
28% |
|||||||
Adjusted EBIT Margin |
9.1% |
6.0% |
310 bps |
7.8% |
5.6% |
220 bps |
|||||||
Depreciation and amortization |
3.4 |
4.4 |
17.8 |
17.4 |
|||||||||
Adjusted EBITDA |
27.5 |
21.2 |
30% |
101.2 |
82.5 |
23% |
|||||||
Adjusted EBITDA Margin |
10.4% |
7.6% |
280 bps |
9.5% |
7.1% |
240 bps |
|||||||
Specialized Products |
|||||||||||||
External Sales |
$ 269.7 |
$ 259.5 |
3.9% |
$1,066.8 |
$1,056.3 |
1.0% |
|||||||
Total Sales (External + Inter-segment) |
270.4 |
260.2 |
3.9% |
1,070.0 |
1,059.0 |
1.0% |
|||||||
EBIT |
48.9 |
47.5 |
3% |
170.5 |
189.0 |
(10%) |
|||||||
EBIT Margin |
18.1% |
18.3% |
(20) bps |
15.9% |
17.8% |
(190) bps |
|||||||
Depreciation and amortization |
10.8 |
10.3 |
41.8 |
39.0 |
|||||||||
EBITDA |
59.7 |
57.8 |
3% |
212.3 |
228.0 |
(7%) |
|||||||
EBITDA Margin |
22.1% |
22.2% |
(10) bps |
19.8% |
21.5% |
(170) bps |
|||||||
Total Company |
|||||||||||||
External Sales |
$1,144.9 |
$1,046.7 |
9.4% |
$4,752.5 |
$4,269.5 |
11.3% |
|||||||
EBIT - segments |
133.1 |
84.4 |
58% |
512.0 |
439.8 |
16% |
|||||||
Intersegment eliminations and other |
2.0 |
(0.4) |
1.4 |
(2.9) |
|||||||||
EBIT |
135.1 |
84.0 |
61% |
513.4 |
436.9 |
18% |
|||||||
EBIT Margin |
11.8% |
8.0% |
380 bps |
10.8% |
10.2% |
60 bps |
|||||||
Restructuring-related charges 3 |
5.0 |
16.3 |
15.1 |
16.3 |
|||||||||
ECS transaction costs 3 |
— |
3.7 |
0.9 |
3.7 |
|||||||||
Note impairment 3 |
— |
15.9 |
— |
15.9 |
|||||||||
Adjusted EBIT 3 |
140.1 |
120.0 |
17% |
529.4 |
472.9 |
12% |
|||||||
Adjusted EBIT Margin3 |
12.2% |
11.5% |
70 bps |
11.1% |
11.1% |
0 bps |
|||||||
Depreciation and amortization - segments |
43.6 |
29.5 |
174.8 |
113.3 |
|||||||||
Depreciation and amortization - unallocated 4 |
3.6 |
5.6 |
17.1 |
22.8 |
|||||||||
Adjusted EBITDA 3 |
187.3 |
155.1 |
21% |
721.3 |
609.0 |
18% |
|||||||
Adjusted EBITDA Margin3 |
16.4% |
14.8% |
160 bps |
15.2% |
14.3% |
90 bps |
|||||||
LAST SIX QUARTERS |
2018 |
2019 |
|||||||||||
Selected Figures |
3Q |
4Q |
1Q |
2Q |
3Q |
4Q |
|||||||
Net Sales ($ million) |
1,092 |
1,047 |
1,155 |
1,213 |
1,239 |
1,145 |
|||||||
Sales Growth (vs. prior year) |
8% |
6% |
12% |
10% |
14% |
9% |
|||||||
Volume Growth (same locations vs. prior year) |
3% |
—% |
(3%) |
(6%) |
(1%) |
(1%) |
|||||||
Adjusted EBIT 3($ million) |
124 |
120 |
105 |
136 |
148 |
140 |
|||||||
Cash from Operations ($ million) |
127 |
189 |
31 |
172 |
213 |
251 |
|||||||
Adjusted EBITDA (trailing twelve months) 3($ million) |
598 |
609 |
620 |
651 |
689 |
721 |
|||||||
(Long-term debt + current maturities) / Adj. EBITDA 3,5 |
2.3 |
1.9 |
4.0 |
3.7 |
3.3 |
2.9 |
|||||||
Organic Sales (vs. prior year) |
3Q |
4Q |
1Q |
2Q |
3Q |
4Q |
|||||||
Residential Products |
3% |
5% |
3% |
(1%) |
3% |
(1%) |
|||||||
Industrial Products |
28% |
22% |
10% |
(9%) |
(17%) |
(24%) |
|||||||
Furniture Products |
4% |
(1%) |
(5%) |
(11%) |
(8%) |
(5%) |
|||||||
Specialized Products |
3% |
—% |
(5%) |
(3%) |
6% |
4% |
|||||||
Overall |
6% |
3% |
(1%) |
(6%) |
(2%) |
(4%) |
1Segment margins calculated on Total Sales. Overall company margin calculated on External Sales. |
2bps = basis points; a unit of measure equal to 1/100thof 1%. |
3Refer to next page for non-GAAP reconciliations. |
4Consists primarily of depreciation of non-operating assets and amortization of debt issuance costs. |
5EBITDA based on trailing twelve months. |
LEGGETT & PLATT |
||||||||||||||||
RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES 11 |
||||||||||||||||
Full Year |
2018 |
2019 |
||||||||||||||
Non-GAAP adjustments 6 |
2018 |
2019 |
3Q |
4Q |
1Q |
2Q |
3Q |
4Q |
||||||||
Restructuring-related charges |
16.3 |
15.1 |
- |
16.3 |
6.3 |
- |
3.8 |
5.0 |
||||||||
Note impairment |
15.9 |
- |
- |
15.9 |
- |
- |
- |
- |
||||||||
ECS transaction costs |
6.9 |
0.9 |
- |
6.9 |
0.9 |
- |
- |
- |
||||||||
Non-GAAP adjustments (pretax) 7 |
39.1 |
16.0 |
- |
39.1 |
7.2 |
- |
3.8 |
5.0 |
||||||||
Income tax impact |
(7.5) |
(2.3) |
- |
(7.5) |
(1.8) |
- |
(0.4) |
(0.1) |
||||||||
Tax Cuts and Jobs Act impact |
(1.8) |
- |
(1.8) |
- |
- |
- |
- |
- |
||||||||
Non-GAAP adjustments (after tax) |
29.8 |
13.7 |
(1.8) |
31.6 |
5.4 |
- |
3.4 |
4.9 |
||||||||
Diluted shares outstanding |
135.2 |
135.4 |
134.7 |
134.7 |
135.0 |
135.2 |
135.4 |
135.8 |
||||||||
EPS impact of non-GAAP adjustments |
0.22 |
0.10 |
(0.01) |
0.23 |
0.04 |
- |
0.02 |
0.04 |
||||||||
Full Year |
2018 |
2019 |
||||||||||||||
Adjusted EBIT, EBITDA, Margin, and EPS 6 |
2018 |
2019 |
3Q |
4Q |
1Q |
2Q |
3Q |
4Q |
||||||||
Net sales |
4,270 |
4,753 |
1,092 |
1,047 |
1,155 |
1,213 |
1,239 |
1,145 |
||||||||
EBIT (earnings before interest and taxes) |
436.9 |
513.4 |
124.4 |
84.0 |
98.2 |
136.0 |
144.1 |
135.1 |
||||||||
Non-GAAP adjustments (pretax and excluding interest) 8 |
36.0 |
16.0 |
- |
36.0 |
7.2 |
- |
3.8 |
5.0 |
||||||||
Adjusted EBIT ($ millions) |
472.9 |
529.4 |
124.4 |
120.0 |
105.4 |
136.0 |
147.9 |
140.1 |
||||||||
EBIT margin |
10.2% |
10.8% |
11.4% |
8.0% |
8.5% |
11.2% |
11.6% |
11.8% |
||||||||
Adjusted EBIT margin |
11.1% |
11.1% |
11.4% |
11.5% |
9.1% |
11.2% |
11.9% |
12.2% |
||||||||
EBIT |
436.9 |
513.4 |
124.4 |
84.0 |
98.2 |
136.0 |
144.1 |
135.1 |
||||||||
Depreciation and Amortization |
136.1 |
191.9 |
33.8 |
35.1 |
46.3 |
50.0 |
48.4 |
47.2 |
||||||||
EBITDA |
573.0 |
705.3 |
158.2 |
119.1 |
144.5 |
186.0 |
192.5 |
182.3 |
||||||||
Non-GAAP adjustments (pretax and excluding interest) 8 |
36.0 |
16.0 |
- |
36.0 |
7.2 |
- |
3.8 |
5.0 |
||||||||
Adjusted EBITDA ($ millions) |
609.0 |
721.3 |
158.2 |
155.1 |
151.7 |
186.0 |
196.3 |
187.3 |
||||||||
EBITDA margin |
13.4% |
14.8% |
14.5% |
11.4% |
12.5% |
15.3% |
15.5% |
15.9% |
||||||||
Adjusted EBITDA margin |
14.3% |
15.2% |
14.5% |
14.8% |
13.1% |
15.3% |
15.8% |
16.4% |
||||||||
Diluted EPS |
2.26 |
2.47 |
0.67 |
0.39 |
0.45 |
0.64 |
0.74 |
0.64 |
||||||||
EPS impact of non-GAAP adjustments |
0.22 |
0.10 |
(0.01) |
0.23 |
0.04 |
- |
0.02 |
0.04 |
||||||||
Adjusted EPS ($) |
2.48 |
2.57 |
0.66 |
0.62 |
0.49 |
0.64 |
0.76 |
0.68 |
||||||||
Full Year |
2018 |
2019 |
||||||||||||||
Total Debt to Adjusted EBITDA 9 |
2018 |
2019 |
3Q |
4Q |
1Q |
2Q |
3Q |
4Q |
||||||||
Total Debt |
1,169 |
2,118 |
1,357 |
1,169 |
2,461 |
2,415 |
2,248 |
2,118 |
||||||||
Adjusted EBITDA, trailing 12 months |
609 |
721 |
598 |
609 |
620 |
651 |
689 |
721 |
||||||||
Total Debt / Leggett Reported 12-month Adjusted EBITDA |
1.9 |
2.9 |
2.3 |
1.9 |
4.0 |
3.7 |
3.3 |
2.9 |
||||||||
Total Debt / Leggett and ECS 12-month Pro Forma Adjusted EBITDA 10 |
3.56 |
3.45 |
3.15 |
2.93 |
6Management and investors use these measures as supplemental information to assess operational performance. |
||||||||||||||||
7The non-GAAP adjustments affected various line items on the income statement. Details by quarter: 4Q 2018: $4.4 million COGS, $19.6 million SG&A, $11.9 million other expense, $3.2 million interest expense. 1Q 2019: $2.4 million COGS, $0.9 million SG&A, $3.9 million other expense. 3Q 2019: ($0.9) million COGS, $4.7 million other expense. 4Q 2019: $4.9 million other expense. |
||||||||||||||||
84Q 2018 excludes $3.2 million of financing-related charges recognized in interest expense. |
||||||||||||||||
9Management 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 covenant ratio. |
||||||||||||||||
10The Leggett and ECS pro forma adjusted EBITDA for the 12 months ended March 31, June 30, September 30, and December 31, 2019 is presented in the table below. Because the increase in total debt from December 31, 2018 to December 31, 2019 was directly attributable to the ECS acquisition, we believe it is more meaningful to investors to include ECS's pre-acquisition adjusted EBITDA for the trailing 12 months ended March 31, June 30, September 30, and December 31, 2019 in the total debt / 12-month adjusted EBITDA calculation. |
ECS pre-acquisition adjusted EBITDA from: |
4/1/18 – |
7/1/18 – |
10/1/18 – |
1/1/19 – |
||||
Net earnings |
12 |
6 |
- |
(1) |
||||
Interest expense |
33 |
22 |
12 |
1 |
||||
Taxes |
6 |
4 |
1 |
0 |
||||
EBIT |
51 |
32 |
13 |
- |
||||
Depreciation and Amortization |
14 |
10 |
5 |
1 |
||||
Change in control bonus |
7 |
7 |
7 |
- |
||||
Adjusted EBITDA |
72 |
49 |
25 |
1 |
||||
Leggett Adjusted EBITDA, trailing 12 months (including ECS from January 16, 2019) |
620 |
651 |
689 |
721 |
||||
ECS pre-acquisition adjusted EBITDA |
72 |
49 |
25 |
1 |
||||
Leggett and ECS Pro Forma Adjusted EBITDA, trailing 12 months |
692 |
700 |
714 |
722 |
||||
Total Debt / Leggett and ECS 12-month Pro Forma Adjusted EBITDA |
3.56 |
3.45 |
3.15 |
2.93 |
11Calculations impacted by rounding. |
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