Sealy sales fall at least 19%, but margins firmer

Company reports preliminary results for quarter

Larry Thomas -- Furniture Today, June 19, 2009

ARCHDALE, N.C. — Bedding major Sealy Corp. said its second-quarter sales fell at least 19%, but gross margins improved as the company continued to control costs and enhance operating efficiencies.

According to preliminary financial results released Thursday, sales for the second quarter ended May 31 were $294 million to $301 million. That represents a decline of 19.1% to 21.7% from last year's second quarter, when sales totaled $375.4 million.

Sealy didn't disclose net income projections, but said its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, were $40 million to $42 million. That's down from $49.8 million in last year's second quarter.

Gross margin for the most recent quarter was 40.1% to 41.1%, up from 39.5% in the same quarter last year.

Sealy said it announced preliminary financial information in connection with a refinancing plan that was announced May 13 and is expected to be completed in July. Complete second quarter results will be announced June 30.

Once the refinancing is completed, Sealy said it will no longer announce preliminary financial results.