1Q sales increased 10% vs 1Q20, to $1.151 billion

1Q EPS was a first quarter record $.64, an increase of $.31 vs 1Q20 and an increase of $.24 vs adjusted¹ EPS in 1Q20

Board of Directors increased second quarter dividend $.02 to $.42 per share

Increased 2021 guidance: sales of $4.8–$5.0 billion and EPS of $2.55–$2.75

Changed methodology for valuing domestic steel-related inventory from LIFO to FIFO

Organic sales were up 11%

Volume was up 4%; strong demand in residential end markets and Automotive was partially offset by weakness in Aerospace

Raw material-related selling price increases of 5% and currency benefit of 2% added to sales growth

Divestitures reduced sales by 1% (small operations in Drawn Wire and former Fashion Bed business)

EBIT benefited primarily from volume growth, lower fixed costs, and the non-recurrence of an $8 million impairment charge related to a note receivable and a $4 million charge to write off stock associated with a prior year divestiture in first quarter 2020

Fixed cost reductions implemented in 2020 reduced 1Q 2021 costs by approximately $20 million

EBIT margin was 11.1%, up from 7.5% in the first quarter of 2020 and up from an adjusted¹ EBIT margin of 8.7% in that same period

Please refer to the attached tables for Non-GAAP Reconciliations

Net Debt was 2.46x trailing 12-month adjusted¹ EBITDA

Operating cash flow was a negative $11 million in the first quarter, a decrease of $21 million versus first quarter 2020, primarily from working capital investments to support growth and inflationary impact, which more than offset higher earnings

Capital expenditures were $24 million

Total liquidity was $1.4 billion

The Company’s Board of Directors increased second quarter dividend to $.42

Dividend will be paid on July 15, 2021 to shareholders of record on June 15, 2021

At an annual indicated dividend of $1.68 per share, the yield is 3.4% based upon Friday’s closing stock price of $49.67 per share, one of the higher yields among the S&P 500 Dividend Aristocrats

Increased full year 2021 guidance

Sales are expected to be $4.8–$5.0 billion, +12% to 17% versus 2020

Volume expected to grow mid-to-high-single digits

Raw material-related price increases and currency benefit expected to add sales growth

Small acquisitions expected to be largely offset by prior year divestitures

EPS is expected to be $2.55–$2.75

Reflects higher volume and higher metal margin

Excludes potential gain from real estate sale that may occur as early as 2Q

Based on this guidance framework, EBIT margin should be 11.0% to 11.5%

Additional guidance expectations:

Depreciation and amortization $195 million

Net interest expense $75 million

Effective tax rate 23%

Fully diluted shares 137 million

Operating cash flow approximately $500 million

Capital expenditures $150 million

Dividends $220 million

Prior Guidance:

Sales: $4.6–$4.9 billion

EPS: $2.30–$2.60

Trade sales increased 9%

Volume increased 2%, primarily from growth in ECS, European Spring, and U.S. Spring

Raw material-related selling price increases added 9%

Currency benefit increased sales 1%

Divestitures reduced sales by approximately 3% (small operations in Drawn Wire and former Fashion Bed business)

EBIT increased $36 million, primarily from volume growth, higher metal margin, lower fixed costs, a reduction of bad debt expense, and the non-recurrence of an $8 million impairment charge related to a note receivable in first quarter 2020

Trade sales increased 10%

Volume increased 3%; growth in Automotive and Hydraulic Cylinders was partially offset by weak demand in Aerospace

Currency benefit increased sales 6%

An Aerospace acquisition completed in January 2021 added 1% to sales

EBIT increased $8 million, primarily from volume growth in Automotive and lower fixed costs, partially offset by lower volume in Aerospace

Trade sales increased 12%

Volume increased 8%, driven by strong demand in Geo Components, Home Furniture, and Flooring Products’ residential business

Raw material-related selling price increases added 3%

Currency benefit increased sales 1%

EBIT increased $2 million, primarily from volume growth and lower fixed costs, partially offset by pricing lag associated with passing along higher raw material costs

RESULTS OF OPERATIONS ¹

(In millions, except per share data)

Net trade sales

Cost of goods sold

Gross profit

Selling & administrative expenses

Amortization

Other expense (income), net

Earnings before interest and taxes

Net interest expense

Earnings before income taxes

Income taxes

Net earnings (loss)

Less net income from non-controlling interest

Net Earnings (Loss) Attributable to L&P

Net earnings (loss) per diluted share

Shares outstanding

Common stock (at end of period)

Basic (average for period)

Diluted (average for period)

CASH FLOW ¹

(In millions)

Net earnings

Depreciation and amortization

Working capital decrease (increase)

Impairments

Other operating activities

Net Cash from Operating Activities

Additions to PP&E

Purchase of companies, net of cash

Dividends paid

Repurchase of common stock, net

Additions (payments) to debt, net

Other

Increase (Decrease) in Cash & Equivalents

FINANCIAL POSITION ¹

(In millions)

Cash and equivalents

Receivables

Inventories

Other current assets

Total current assets

Net fixed assets

Operating lease right-of-use assets

Goodwill

Intangible assets and deferred costs, both at net

TOTAL ASSETS

Trade accounts payable

Current debt maturities

Current operating lease liabilities

Other current liabilities

Total current liabilities

Long-term debt

Operating lease liabilities

Deferred taxes and other liabilities

Equity

Total Capitalization

TOTAL LIABILITIES & EQUITY

Effective 1/1/21: domestic steel-related inventory valuation methodology changed from LIFO to FIFO; all prior periods presented have been retrospectively adjusted to apply the effects of the change.

SEGMENT RESULTS ^{1, 2}

Bedding Products

Net trade sales

EBIT

EBIT margin

Note impairment

Adjusted EBIT

Adjusted EBIT margin

Depreciation and amortization

Adjusted EBITDA

Adjusted EBITDA margin

Specialized Products

Net trade sales

EBIT

EBIT margin

Depreciation and amortization

EBITDA

EBITDA margin

Furniture, Flooring & Textile Products

Net trade sales

EBIT

EBIT margin

Depreciation and amortization

EBITDA

EBITDA margin

Total Company

Net trade sales

EBIT - segments

Intersegment eliminations and other

EBIT

EBIT margin

Note impairment ⁴

Stock write-off from prior year divestiture ⁴

Adjusted EBIT ⁴

Adjusted EBIT margin ⁴

Depreciation and amortization - segments

Depreciation and amortization - unallocated ⁵

Adjusted EBITDA ⁴

Adjusted EBITDA margin

LAST SIX QUARTERS ¹

Selected Figures (In Millions)

Net trade sales

Sales growth (vs. prior year)

Volume growth (same locations vs. prior year)

Adjusted EBIT ⁴

Cash from operations

Adjusted EBITDA (trailing twelve months) ⁴

(Long-term debt + current maturities - cash and equivalents) / adj. EBITDA ^4,6

Organic Sales (Vs. Prior Year) ⁷

Bedding Products

Specialized Products

Furniture, Flooring & Textile Products

Overall

Segment and overall company margins calculated on net trade sales.

bps = basis points; a unit of measure equal to 1/100th of 1%.

Refer to next page for non-GAAP reconciliations.

Consists primarily of depreciation of non-operating assets.

EBITDA based on trailing twelve months.

Net trade sales excluding sales attributable to acquisitions and divestitures consummated in the last 12 months.

Non-GAAP Adjustments ⁸

(In millions, except per share data)

Goodwill impairment

Note impairment

Stock write-off from prior year divestiture

Restructuring-related charges

Non-GAAP Adjustments (Pretax) ⁹

Income tax impact

Non-GAAP Adjustments (After Tax)

Diluted shares outstanding

EPS Impact of Non-GAAP Adjustments

Adjusted EBIT, EBITDA, Margin, and EPS ⁸

(In millions, except per share data)

Net trade sales

EBIT (earnings before interest and taxes)

Non-GAAP adjustments (pretax and excluding interest)

Adjusted EBIT

EBIT margin

Adjusted EBIT Margin

EBIT

Depreciation and amortization

EBITDA

Non-GAAP adjustments (pretax and excluding interest)

Adjusted EBITDA

EBITDA margin

Adjusted EBITDA Margin

Diluted EPS

EPS impact of non-GAAP adjustments

Adjusted EPS

Net Debt to Adjusted EBITDA ¹⁰

Total debt

Less: cash and equivalents

Net debt

Adjusted EBITDA, trailing 12 months

Net Debt / Leggett Reported 12-month Adjusted EBITDA

Net Debt / Leggett and ECS 12-month Pro Forma Adjusted EBITDA ¹¹

Management and investors use these measures as supplemental information to assess operational performance.

The non-GAAP adjustments affected various line items on the income statement. Details by quarter: 4Q 2019: $2.9 million other expense. 1Q 2020: $8.4 million SG&A, $3.5 million other expense. 2Q 2020: ($0.2) COGS, $27.8 million other expense. 3Q 2020: $5.1 million other expense, $0.6 million in COGS.

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 covenant ratio.

The Leggett and ECS pro forma adjusted EBITDA for the 12 months ended December 31, 2019 is presented in the table below. Because the increase in 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 EBITDA for the trailing 12 months ended December 31, 2019 in the net debt / 12-month adjusted EBITDA calculation.

Net earnings

Interest expense

Taxes

EBIT

Depreciation and amortization

EBITDA

Leggett adjusted EBITDA, trailing 12 months (including ECS from January 16, 2019)

ECS pre-acquisition EBITDA

Leggett and ECS pro forma adjusted EBITDA, trailing 12 months

Net Debt / Leggett and ECS 12-month Pro Forma Adjusted EBITDA

Calculations impacted by rounding.