Tempur-Pedic 4Q sales up 45.1%
Janice Chamberlain -- Furniture Today, January 30, 2005
Lexington, Ky. — Tempur-Pedic International, maker and marketer of visco-elastic mattresses and pillows, said fourth-quarter sales jumped 45.1% as net income surged 106.1%.
Sales in the quarter were $198.4 million, compared with $136.8 million in the comparable 2003 quarter. Quarterly profits were $23.9 million, up from $11.6 million a year ago.
On a pro-forma basis, excluding certain expenses and charges, Tempur-Pedic said net earnings in the latest quarter were $25.7 million, measured against $13.9 million in the comparable 2003 period.
For all of 2004, Tempur-Pedic sales soared 42.9% to $684.9 million from $479.1 million for 2003. Net income nearly doubled to $75 million from $37.6 million in 2003.
Pro-forma income was $84.4 million in 2004, up 62.2% from 2003's $52.1 million.
In a conference call with analysts, President Thomas Bryant said that all four distribution channels had strong growth, with fourth-quarter retail sales up 52%, direct sales up 17%, healthcare sales up 14% and third-party sales up 103%.
In the fourth quarter, Bryant said mattress unit sales were up 47%, with dollar sales jumping 59%. In the U.S. market, mattress revenue growth was 62%, with unit sales up 54%.
"Overall, net sales in the United States climbed an impressive 53% in the fourth quarter, while international net sales also increased sharply, rising 33%," said Bryant.
CEO Robert Trussell Jr. said, "In 2005, we plan to continue to expand our furniture retail base in both the United States and internationally. We will also continue the rollout of our futon product, which began shipping to stores in the Japanese market in December, and plan to introduce at least one more new mattress model in both the United States and Europe in 2005.
"Additionally, we will continue to build global brand awareness by expanding our targeted marketing and advertising campaigns," he said.
Trussell said the company is raising its guidance for 2005.
"Based on the many initiatives we have under way to add new accounts, new stores and new products, we now expect the company's net sales for 2005 to range from $830 million to $850 million, rather than the previous $810 million to $830 million," he said.
| Tempur-Pedic | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 12/31 | 2004 | 2003 | Change |
| (a) Based on average shares outstanding of 103.2 million in the 2004 quarter, 97.3 million in the 2003 quarter, 102.9 million in the 2004 year and 95.3 million in the 2003 year. (b) Includes net losses on debt extinguishment of $3.3 million in the 2004 year and $10.4 million in the 2003 year. |
|||
| Sales | $198,406,000 | $136,776,000 | 45.1% |
| Operating income | 45,579,000 | 25,170,000 | 81.1% |
| Net income | 23,880,000 | 11,585,000 | 106.1% |
| Earnings per share (a) | 0.23 | 0.12 | 91.7% |
| Year ended 12/31 | 2004 | 2003 | Change |
| Sales | $684,866,000 | $479,135,000 | 42.9% |
| Operating income | 153,318,000 | 98,569,000 | 55.5% |
| Net income (b) | 75,007,000 | 37,575,000 | 99.6% |
| Earnings per share (a) | 0.73 | 0.39 | 87.2% |
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Tempur-Pedic 4Q sales up 45.1%
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