LEGGETT & PLATT REPORTS 3Q RESULTS
CARTHAGE, Mo., Oct. 28, 2024 /PRNewswire/ --
-- 3Q sales of $1.1 billion, a 6% decrease vs 3Q23
-- 3Q EPS of $.33; 3Q adjusted(1) EPS of $.32, a $.04 decrease vs
adjusted(1) 3Q23 EPS
-- 2024 EPS guidance is ($3.56)-($3.71), including impact of non-cash
goodwill impairment charge, restructuring charges, real estate gains,
and certain other costs
-- 2024 guidance lowered: adjusted(1) EPS of $1.00-$1.10, sales of
$4.3-$4.4 billion
President and CEO Karl Glassman commented, "We continued to make solid progress on our restructuring and operating efficiency improvement initiatives, although demand headwinds were more challenging than anticipated in the third quarter. Despite weaker than expected results, we paid down $124 million of debt and adjusted EBIT margin improved by 60 basis points sequentially this quarter.
"We expect weak demand in our residential end markets to persist into the fourth quarter due to a more challenging macro environment and softening in consumer spending. Additionally, our Automotive business continues to face headwinds from varying impacts of the transition to electric vehicles, consumer affordability issues, and economic softness in Europe. As a result, we are reducing our sales and EPS guidance.
"We are focused on simplifying our portfolio to businesses that are the right long-term fit. As a part of this strategic review, we are exploring the potential sale of our Aerospace business. Looking forward, we are confident that the actions we are taking to strengthen our balance sheet, improve operating efficiency and margins, and position ourselves for future growth opportunities will create long-term shareholder value."
THIRD QUARTER RESULTS
Third quarter sales were $1.1 billion, a 6% decrease versus third quarter last year
-- Organic sales(2) were down 6%
-- Volume was down 4%, primarily from continued weak demand in
residential end markets, the expected loss of a customer in
Specialty Foam, and demand headwinds in Automotive and Hydraulic
Cylinders. These decreases were partially offset by higher trade
sales in Steel Rod and Wire and growth in Aerospace.
-- Raw material-related selling price decreases, net of currency
benefit, reduced sales 2%
Third quarter EBIT was $78 million, down $13 million from third quarter 2023 EBIT, and adjusted(1) EBIT was $76 million, a $10 million decrease from third quarter 2023 adjusted(1) EBIT.
-- EBIT and adjusted(1) EBIT decreased primarily from unfavorable sales mix
in Steel Rod and Specialty Foam, lower volume, metal margin compression,
and higher bad debt reserves. These decreases were partially offset by
lower amortization, operational efficiency improvements, and
restructuring benefit.
-- 3Q 2024 adjustments include $12 million of restructuring charges and
a $14 million gain from a real estate sale associated with
restructuring
-- 3Q 2023 adjustment is for a $5 million gain from a real estate sale
EBIT margin was 7.1%, down from 7.8% in the third quarter of 2023 and adjusted(1) EBIT margin was 6.9%, down from 7.3%.
Third quarter EPS was $.33, a $.06 decrease versus third quarter 2023 EPS of $.39. Third quarter adjusted(1) EPS was $.32, down $.04 versus third quarter 2023 adjusted(1) EPS of $.36.
Third Quarter Results
EBIT (millions) EPS
Bedding Specialized FF&T Total
Reported results $26 $25 $27 $78 $.33
Adjustment items:
Restructuring, restructuring- related, and impairment charges 8 4 1 12 .07
Gain from sale of restructuring-related real estate (14) (14) (.08)
Total adjustments(1) (6) 4 1 (2) (.01)
Adjusted results $20 $29 $28 $76 $.32
(1) Calculations impacted by rounding
DEBT, CASH FLOW, AND LIQUIDITY
-- Net Debt(1) was 3.78x trailing 12-month adjusted EBITDA(1)
-- Total Debt at September 30 was $1.9 billion, including $84 million of
commercial paper outstanding
-- Operating cash flow was $95 million in the third quarter, a decrease of
$48 million versus third quarter 2023, driven primarily by less benefit
from working capital and lower earnings
-- Capital expenditures were $18 million
-- Dividends were $7 million
-- On August 7, Leggett & Platt's Board of Directors declared a third
quarter dividend of $.05 per share, a decrease of $.41 per share
versus last year's third quarter dividend
-- Total liquidity at September 30 was $748 million
-- $277 million cash on hand
-- $471 million in capacity remaining under revolving credit facility
RESTRUCTURING PLAN UPDATE
-- Annualized EBIT benefit of $50-$60 million expected to be realized after
initiatives are fully implemented in late 2025 versus our prior estimate
of $40-$50 million as we now expect to realize approximately $10 million
benefit in 2025 from G&A initiatives
-- Realized $6 million in third quarter 2024 and $9 million
year-to-date; expect approximately $10-$15 million of EBIT benefit
to be realized in 2024
-- Continue to anticipate approximately $80 million of annual sales
attrition after initiatives are fully implemented in late 2025
-- Realized $4 million of sales attrition in third quarter 2024 and $7
million year-to-date; now expect approximately $15 million in 2024
versus our prior estimate of $25 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
-- Realized $17 million in third quarter 2024 and expectations are now
approximately $20 million in 2024 versus $15-$25 million
-- Majority of cash restructuring and restructuring-related costs expected
to be incurred in 2024
Actual Restructuring Expected Restructuring Plan
Plan Impacts
Impacts (millions) (millions)
3Q 2024 YTD 2024 2024 2025 Total
Net Cash Received from $17 $17 $20
$40-$60
$60-$80
Real Estate Sales
Total Costs $12 $34
$40-$50
$25-$35
$65-85
Cash Costs 11 27 25-30 5-10 30-40
Non-Cash Costs 1 7 15-20 20-25 35-45
2024 GUIDANCE
-- Full year 2024 sales and EPS guidance lowered as demand is weaker than
previously anticipated, particularly within our Specialized Products and
Furniture, Flooring & Textile Products segments
-- Sales are expected to be $4.3-$4.4 billion, down 7% to 9% versus 2023
(vs prior guidance of $4.3-$4.5 billion)
-- Volume is expected to be down mid-single digits (vs prior guidance
of down low to mid-single digits)
-- Volume at the midpoint:
-- Down high single digits in Bedding Products Segment
-- Down mid-single digits in Specialized Products Segment
-- Down mid-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 $3.56-$3.71
-- 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
-- $.17 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 $1.00-$1.10 (vs prior guidance of
$1.10-$1.25)
-- Decrease versus 2023 adjusted EPS of $1.39 is primarily from:
-- Lower expected volume in all three 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
-- Unfavorable sales mix, primarily in Bedding Products
-- 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
(9.3%)-(10.2%); adjusted EBIT margin is expected to be 6.0%-6.4%
-- Additional expectations:
-- Depreciation and amortization $135 million
-- Net interest expense $80 million
-- Effective tax rate 24%
-- Fully diluted shares 137 million
-- Operating cash flow $300 million (vs prior guidance of $300-$350
million)
-- Capital expenditures $100 million (vs prior guidance of $110
million)
-- 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
-- Implied 4Q Guidance:
-- Sales: $973-$1,073 million
-- EPS: $.12-$.27
-- Adjusted EPS: $.16-$.26
SEGMENT RESULTS - Third Quarter 2024 (versus 3Q 2023)
Bedding Products -
-- Trade sales decreased 8%
-- Volume decreased 3%, primarily due to the expected loss of a
customer in Specialty Foam and demand softness in U.S. and European
bedding markets, partially offset by higher trade rod and wire sales
-- Raw material-related selling price decreases and currency impact
reduced sales 5%
-- EBIT decreased $5 million and adjusted(1) EBIT decreased $6 million,
primarily from unfavorable sales mix in Steel Rod and Specialty Foam and
metal margin compression, partially offset by lower amortization
expense, operational efficiency improvements in Specialty Foam, and
restructuring benefit
-- 3Q 2024 adjustments include $8 million restructuring charges and a
$14 million gain on the sale of restructuring-related real estate
-- 3Q 2023 adjustment is for a $5 million gain on the sale of real
estate
Specialized Products -
-- Trade sales decreased 6%
-- Volume decreased 7% with declines in Automotive and Hydraulic
Cylinders partially offset by growth in Aerospace
-- Currency benefit and raw material-related price increases added 1%
to sales
-- EBIT decreased $6 million, primarily from lower volume and $4
million restructuring charges, partially offset by operational
efficiency improvements and disciplined cost management
-- Adjusted(1) EBIT decreased $2 million, primarily from lower volume
partially offset by operational efficiency improvements and disciplined
cost management
Furniture, Flooring & Textile Products -
-- Trade sales decreased 4%
-- Volume decreased 2%, primarily from declines in Home Furniture, Geo
Components, and Fabric Converting
-- Raw material-related selling price decreases, net of currency
benefit, reduced sales 2%
-- EBIT decreased $2 million, primarily from lower volume and $1 million
restructuring charges, partially offset by disciplined cost management
-- Adjusted(1) EBIT decreased $1 million, primarily from lower volume,
partially offset by disciplined cost management
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 Tuesday, October 29. 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; and demand headwinds in our residential end markets. 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 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 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 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; 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 October 28, 2024
RESULTS OF OPERATIONS THIRD QUARTER YEAR TO DATE
(In millions, except per share data) 2024 2023 Change 2024 2023 Change
Trade sales $1,101.7 $1,175.4 (6) % $3,327.2 $3,610.2 (8) %
Cost of goods sold 901.1 961.1 2,753.7 2,956.2
Gross profit 200.6 214.3 (6) % 573.5 654.0 (12) %
Selling & administrative expenses 127.0 109.1 16 % 384.4 344.3 12 %
Amortization 7.2 17.9 16.8 51.6
Other (income) expense, net (11.3) (4.1) 645.9 (18.3)
Earnings (loss) before interest and income taxes 77.7 91.4 (15) % (473.6) ` 276.4 NM
Net interest expense 20.0 20.5 60.6 63.5
Earnings (loss) before income taxes 57.7 70.9 (534.2) 212.9
Income taxes 12.8 18.0 (8.6) 52.3
Net earnings (loss) 44.9 52.9 (525.6) 160.6
Less net income from noncontrolling interest (0.1) (0.1) (0.1)
Net Earnings (loss) Attributable to L&P $44.9 $52.8 (15) % $(525.7) $160.5 NM
Earnings (loss) per diluted share
Net earnings (loss) per diluted share $0.33 $0.39 (15) % $(3.83) $1.18 NM
Shares outstanding
Common stock (at end of period) 134.3 133.3 0.8 % 134.3 133.3 0.8 %
Basic (average for period) 137.4 136.4 137.2 136.2
Diluted (average for period) 138.0 136.8 0.9 % 137.2 136.5 0.5 %
CASH FLOW THIRD QUARTER YEAR TO DATE
(In millions) 2024 2023 Change 2024 2023 Change
Net earnings (loss) $44.9 $52.9 $(525.6) $160.6
Depreciation and amortization 36.4 45.0 101.9 135.1
Working capital decrease (increase) 33.3 60.1 (29.1) 52.3
Impairments 0.6 678.5
Deferred income tax benefit (10.3) (10.2) (55.3) (17.3)
Other operating activities (9.4) (4.0) 13.0 20.4
Net Cash from Operating Activities $95.5 $143.8 (34) % $183.4 $351.1 (48) %
Additions to PP&E (18.4) (22.2) (59.8) (90.4)
Purchase of companies, net of cash
Proceeds from disposals of assets and businesses 17.4 7.9 40.6 13.2
Dividends paid (6.7) (61.2) (129.7) (178.1)
Repurchase of common stock, net (0.2) (0.2) (4.5) (5.5)
Additions (payments) to debt, net (122.2) (60.0) (110.3) (121.7)
Other 4.8 (6.6) (8.0) (11.2)
Increase (Decrease) in Cash & Equivalents $(29.8) $1.5 $(88.3) $(42.6)
FINANCIAL POSITION Sep 30, Dec 31,
(In millions) 2024 2023 Change
Cash and equivalents $277.2 $365.5
Receivables 638.1 637.3
Inventories 754.4 819.7
Other current assets 64.8 58.9
Total current assets 1,734.5 1,881.4 (8) %
Net fixed assets 748.9 781.2
Operating lease right-of-use assets 188.2 193.2
Goodwill 814.7 1,489.8
Intangible assets and deferred costs, both at net 293.8 288.9
TOTAL ASSETS $3,780.1 $4,634.5 (18) %
Trade accounts payable $516.0 $536.2
Current debt maturities 301.1 308.0
Current operating lease liabilities 53.7 57.3
Other current liabilities 300.9 361.1
Total current liabilities 1,171.7 1,262.6 (7) %
Long-term debt 1,578.2 1,679.6 (6) %
Operating lease liabilities 143.3 150.5
Deferred taxes and other liabilities 145.1 207.8
Equity 741.8 1,334.0 (44) %
Total Capitalization 2,608.4 3,371.9 (23) %
TOTAL LIABILITIES & EQUITY $3,780.1 $4,634.5 (18) %
LEGGETT & PLATT
Page 7 of 8 October 28, 2024
SEGMENT RESULTS
(1) THIRD QUARTER YEAR TO DATE
(In millions) 2024 2023 Change 2024 2023 Change
Bedding Products
Trade sales $445.5 $483.3 (8) % $1,331.5 $1,516.2 (12) %
EBIT 25.5 31.1 (18) % (550.6) 87.4 NM
EBIT margin 5.7 % 6.4 % -70 bps 2 -41.4 % 5.8 % NM
Goodwill impairment 587.2
Restructuring, restructuring-related, and impairment charges 8.0 27.2
Gain on sale of real estate (14.0) (5.4) (26.6) (5.4)
Gain from net insurance proceeds from tornado damage (0.6)
Adjusted EBIT (3) 19.5 25.7 (24) % 37.2 81.4 (54) %
Adjusted EBIT margin
(3) 4.4 % 5.3 % -90 bps 2.8 % 5.4 % -260 bps
Depreciation and amortization 14.8 26.2 43.7 77.3
Adjusted EBITDA 34.3 51.9 (34) % 80.9 158.7 (49) %
Adjusted EBITDA margin 7.7 % 10.7 % -300 bps 6.1 % 10.5 % -440 bps
Specialized Products
Trade sales $299.9 $319.4 (6) % $935.4 $961.3 (3) %
EBIT 24.8 31.2 (21) % 39.0 93.0 (58) %
EBIT margin 8.3 % 9.8 % -150 bps 4.2 % 9.7 % -550 bps
Goodwill impairment 43.6
Restructuring, restructuring-related, and impairment charges 3.8 5.1
Adjusted EBIT 28.6 31.2 (8) % 87.7 93.0 (6) %
Adjusted EBIT Margin 9.5 % 9.8 % -30 bps 9.4 % 9.7 % -30 bps
Depreciation and amortization 11.0 10.7 31.4 31.7
Adjusted EBITDA 39.6 41.9 (5) % 119.1 124.7 (4) %
Adjusted EBITDA margin 13.2 % 13.1 % 10 bps 12.7 % 13.0 % -30 bps
Furniture, Flooring & Textile Products
Trade sales $356.3 $372.7 (4) % $1,060.3 $1,132.7 (6) %
EBIT 27.4 29.5 (7) % 41.6 96.7 (57) %
EBIT margin 7.7 % 7.9 % (3) % 3.9 % 8.5 % -460 bps
Goodwill impairment 44.5
Restructuring, restructuring-related, and impairment charges 0.5 2.0
Gain from net insurance proceeds from tornado damage (2.2) (3.0)
Adjusted EBIT (3) 27.9 29.5 (5) % 85.9 93.7 (8) %
Adjusted EBIT Margin
(3) 7.8 % 7.9 % -10 bps 8.1 % 8.3 % -20 bps
Depreciation and amortization 5.4 5.5 16.2 17.0
Adjusted EBITDA 33.3 35.0 (5) % 102.1 110.7 (8) %
Adjusted EBITDA margin 9.3 % 9.4 % -10 bps 9.6 % 9.8 % -20 bps
Total Company
Trade sales $1,101.7 $1,175.4 (6) % $3,327.2 $3,610.2 (8) %
EBIT - segments 77.7 91.8 (15) % (470.0) 277.1 NM
Intersegment eliminations and other (0.4) (3.6) (0.7)
EBIT 77.7 91.4 (15) % (473.6) 276.4 NM
EBIT margin 7.1 % 7.8 % (9) % -14.2 % 7.7 % NM
Goodwill impairment 675.3
Restructuring, restructuring-related, and impairment charges 12.3 34.3
Gain on sale of real estate (14.0) (5.4) (26.6) (5.4)
Gain from net insurance proceeds from tornado damage (2.2) (3.6)
CEO transition compensation costs 3.7
Adjusted EBIT (3) 76.0 86.0 (12) % 210.9 267.4 (21) %
Adjusted EBIT margin
(3) 6.9 % 7.3 % -40 bps 6.3 % 7.4 % -110 bps
Depreciation and amortization - segments 31.2 42.4 91.3 126.0
Depreciation and amortization - unallocated 4 5.2 2.6 10.6 9.1
Adjusted EBITDA $112.4 $131.0 (14) % $312.8 $402.5 (22) %
Adjusted EBITDA margin 10.2 % 11.1 % -90 bps 9.4 % 11.1 % -170 bps
LAST SIX QUARTERS 2023 2024
Selected Figures (In Millions) 2Q 3Q 4Q 1Q 2Q 3Q
Trade sales 1,221.2 1,175.4 1,115.1 1,096.9 1,128.6 1,101.7
Sales growth (vs. prior year) (8) % (9) % (7) % (10) % (8) % (6) %
Volume growth (same locations vs. prior year) (6) % (6) % (3) % (6) % (4) % (4) %
Adjusted EBIT 3 92.1 86.0 66.1 63.7 71.2 76.0
Cash from operations 110.6 143.8 146.1 (6.1) 94.0 95.5
Adjusted EBITDA (trailing twelve months) (3) 565.5 539.2 513.4 475.3 442.3 423.7
(Long-term debt + current maturities - cash and equivalents) / adj. EBITDA 3,5 3.10 3.15 3.16 3.61 3.83 3.78
Organic Sales (Vs. Prior Year)
6 2Q 3Q 4Q 1Q 2Q 3Q
Bedding Products (18) % (17) % (14) % (15) % (13) % (8) %
Specialized Products 12 % 3 % 5 % (1) % - % (6) %
Furniture, Flooring & Textile Products (16) % (14) % (7) % (9) % (6) % (4) %
Overall (11) % (11) % (7) % (10) % (8) % (6) %
(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 October 28,
2024
RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES
10
Non-GAAP Adjustments
7 2023 2024
(In millions, except per share data) 2Q 3Q 4Q 1Q 2Q 3Q
Goodwill impairment 675.3
Long-lived asset impairment 443.7
Restructuring, restructuring-related, and impairment charges 10.8 11.2 12.3
Gain on sale of real estate (5.4) (5.5) (7.9) (4.7) (14.0)
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 (1.7)
Income tax impact 0.9 0.9 (99.9) (0.2) (43.6) 0.4
Non-GAAP Adjustments (After Tax) (2.7) (4.5) 333.0 0.5 641.9 (1.3)
Diluted shares outstanding 136.6 136.8 136.5 137.3 137.3 138.0
EPS Impact of Non-GAAP Adjustments (0.02) (0.03) 2.44 4.68 (0.01)
Adjusted EBIT, EBITDA, Margin, and EPS
7 2023 2024
(In millions, except per share data) 2Q 3Q 4Q 1Q 2Q 3Q
Trade sales 1,221.2 1,175.4 1,115.1 1,096.9 1,128.6 1,101.7
EBIT (earnings before interest and taxes) 95.7 91.4 (366.8) 63.0 (614.3) 77.7
Non-GAAP adjustments (pretax) (3.6) (5.4) 432.9 0.7 685.5 (1.7)
Adjusted EBIT 92.1 86.0 66.1 63.7 71.2 76.0
EBIT margin 7.8 % 7.8 % -32.9 % 5.7 % -54.4 % 7.1 %
Adjusted EBIT Margin 7.5 % 7.3 % 5.9 % 5.8 % 6.3 % 6.9 %
EBIT 95.7 91.4 (366.8) 63.0 (614.3) 77.7
Depreciation and amortization 44.7 45.0 44.8 32.9 32.6 36.4
EBITDA 140.4 136.4 (322.0) 95.9 (581.7) 114.1
Non-GAAP adjustments (pretax) (3.6) (5.4) 432.9 0.7 685.5 (1.7)
Adjusted EBITDA 136.8 131.0 110.9 96.6 103.8 112.4
EBITDA margin 11.5 % 11.6 % -28.9 % 8.7 % -51.5 % 10.4 %
Adjusted EBITDA Margin 11.2 % 11.1 % 9.9 % 8.8 % 9.2 % 10.2 %
Diluted EPS 0.40 0.39 (2.18) 0.23 (4.39) 0.33
EPS impact of non-GAAP adjustments (0.02) (0.03) 2.44 4.68 (0.01)
Adjusted EPS 0.38 0.36 0.26 0.23 0.29 0.32
Net Debt to Adjusted EBITDA
9 2023 2024
2Q 3Q 4Q 1Q 2Q 3Q
Total debt 2,024.6 1,971.9 1,987.6 2,076.7 2,003.1 1,879.3
Less: cash and equivalents (272.4) (273.9) (365.5) (361.3) (307.0) (277.2)
Net debt 1,752.2 1,698.0 1,622.1 1,715.4 1,696.1 1,602.1
Adjusted EBITDA, trailing 12 months 565.5 539.2 513.4 475.3 442.3 423.7
Net Debt / 12-month Adjusted EBITDA 3.10 3.15 3.16 3.61 3.83 3.78
7 Management and investors use these measures as supplemental information to assess operational performance.
8 The non-GAAP adjustments are included in the following lines of the income statement:
2023 2024
2Q 3Q 4Q 1Q 2Q 3Q
Cost of goods sold 2.3 1.4 0.8
Selling & administrative expenses 0.5 8.7 6.2
Other (income) expense, net (3.6) (5.4) 432.9 (2.1) 675.4 (8.7)
Total Non-GAAP Adjustments (Pretax) (3.6) (5.4) 432.9 0.7 685.5 (1.7)
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
