LEGGETT & PLATT REPORTS 2Q RESULTS
CARTHAGE, Mo., Aug. 1, 2024 /PRNewswire/ --
-- 2Q sales of $1.1 billion, an 8% decrease vs 2Q23
-- 2Q EPS of ($4.39), primarily due to a non-cash goodwill impairment
charge
-- 2Q adjusted(1) EPS of $.29, a $.09 decrease vs adjusted(1) 2Q23 EPS
-- 2024 EPS guidance is ($3.43)-($3.58), including impact of non-cash
goodwill impairment charge, restructuring charges, real estate gains,
and certain other costs
-- 2024 adjusted(1) EPS narrowed to $1.10-$1.25; sales guidance lowered to
$4.3-$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 $73 million of debt and adjusted EBIT margin improved by 50 basis points sequentially this quarter. We remain committed to investing in our key businesses to drive profitable growth when market conditions improve.
"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 $1.1 billion, an 8% decrease versus second quarter last year
-- Organic sales(2) 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%
Second quarter EBIT was a loss of $614 million, down $710 million from second quarter 2023 EBIT.
-- EBIT decreased primarily from a $675 million 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.
Adjusted(1) EBIT was $71 million, a $21 million decrease from second quarter 2023 adjusted(1) EBIT.
-- Adjusted(1) 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 (54.4%), down from 7.8% in the second quarter of 2023 and adjusted(1) EBIT margin was 6.3%, down from 7.5%.
Second quarter EPS was a loss of $4.39, a $4.79 decrease versus second quarter 2023 EPS of $.40. Second quarter adjusted(1) EPS was $.29, down $.09 versus second quarter 2023 adjusted(1) EPS of $.38.
Second Quarter Results
EBIT (millions) EPS
Bedding Specialized FF&T Other Total
Reported results(1) ($592) ($10) ($9) ($4) ($614) ($4.39)
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 $35 $35
$- $71 $.29
(1) Calculations impacted by rounding
DEBT, CASH FLOW, AND LIQUIDITY
-- Net Debt1 was 3.83x trailing 12-month adjusted EBITDA(1)
-- Debt at June 30
-- Total debt of $2.0 billion, including $208 million of commercial
paper outstanding
-- Operating cash flow was $94 million in the second quarter, a decrease of
$17 million versus second quarter 2023, driven primarily by lower
earnings partially offset by working capital improvement
-- Capital expenditures were $15 million
-- Dividends were $62 million (paid 1(st) quarter dividend of $.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
-- Total liquidity was $705 million at June 30
-- $307 million cash on hand
-- $398 million in capacity remaining under revolving credit facility
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 $3 million in second quarter 2024 and now expect
approximately $10-$15 million of EBIT benefit to be realized in 2024
versus our initial estimate of $5-$10 million
-- We now anticipate approximately $80 million of annual sales attrition
after initiatives are fully implemented in late 2025 versus our initial
estimate of $100 million
-- Realized $3 million of sales attrition in second quarter 2024 and
now expect approximately $25 million in 2024 versus our initial
estimate of $40 million
-- 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
-- Majority of cash restructuring and restructuring-related costs expected
to be incurred in 2024
Actual Restructuring Expected Restructuring Plan
Plan Impacts
Impacts (millions) (millions)
2Q 2024 YTD 2024 2024 2025 Total
Net Cash Received from
$-
$-
$15-$25
$45-$55
$60-$80
Real Estate Sales
Total Costs $11 $22
$40-$50
$25-$35
$65-85
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 $4.3-$4.5 billion, down 5% to 9% versus 2023
(vs prior guidance of $4.35-$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 $3.43-$3.58
-- Earnings expectations include:
-- $4.61 per share impact from goodwill impairment
-- $.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
-- Adjusted EPS is now expected to be $1.10-$1.25 (vs prior guidance of
$1.05-$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
-- Based on this framework, 2024 EBIT margin is expected to be
(12.1%)-(13.3%); adjusted EBIT margin is expected to be 6.5%-6.9%
-- Additional expectations:
-- Depreciation and amortization $135 million
-- Net interest expense $80 million (vs prior guidance of $85 million)
-- Effective tax rate 24% (vs prior guidance of 25%)
-- Fully diluted shares 137 million (vs prior guidance of 138 million
shares)
-- Operating cash flow $300-$350 million
-- Capital expenditures $110 million (vs prior guidance of $100-$120)
-- Dividends $135 million
-- Minimal acquisitions and share repurchases
-- Expect to predominantly use commercial paper to repay $300 million of
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 in U.S. and European bedding markets, partially offset by
higher trade rod sales
-- Raw material-related selling price decreases reduced sales 6%
-- EBIT decreased $615 million, primarily from a $587 million non-cash
goodwill impairment charge
-- Adjusted(1) EBIT decreased $22 million, 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
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 $43 million, primarily from a $44 million non-cash
goodwill impairment charge
-- Adjusted(1) EBIT increased $2 million, primarily from operational
efficiency improvements partially offset by currency impact
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%
-- EBIT decreased $48 million, primarily from a $44 million non-cash
goodwill impairment charge
-- Adjusted(1) EBIT decreased $1 million, primarily from lower volume
partially offset by pricing discipline and restructuring benefit
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 China and Taiwan; our ability to maintain profit margins if customers change the quantity or mix of our products; political risks; tax rates; increased trade costs; foreign operating risks; cybersecurity incidents; customer losses and insolvencies; disruption to our steel rod mill and other operations because of severe weather-related events, natural disaster, fire, explosion, terrorism, pandemic, or governmental action; ability to develop innovative products; foreign currency fluctuation; share repurchases; anti-dumping duties on innersprings, steel wire rod and mattresses; data privacy; climate change costs and impacts; ESG obligations; litigation risks; and risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's Form 10-K and subsequent Form 10-Qs.
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 1%.
(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 $432.9, $(5.4), and $(3.6) 2023 non-GAAP adjustments are included in the Other (income) expense, net line on the income statement. The non-GAAP 1Q and 2Q 2024 adjustments
are shown on the income statement as follows: $.7 for 1Q is $2.3 Cost of goods sold, $.5 Selling and administrative expense, and $(2.1) Other (income) expense, net. $685.5 for 2Q is
$1.4 Cost of goods sold, $8.7 Selling and administrative expense, and $675.4 Other (income) expense, net.
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
covenant ratio.
10 Calculations impacted by rounding.
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SOURCE Leggett & Platt Incorporated
