Sealy 1Q sales rise 10.2%
By Furniture Today Staff -- Furniture Today, April 16, 2006
Archdale, N.C. — Bedding major Sealy said sales rose 10.2% in its first quarter ended Feb. 26 as net income jumped 11.2%.
Worldwide sales totaled $395.7 million in the quarter, compared with $359 million in last year's first quarter. Net income came to $24.3 million, compared with $21.9 million a year earlier.
"We are pleased with our start to 2006," said Chairman and CEO David McIlquham. "During the quarter, we saw continued strong demand for our brands worldwide."
Sealy didn't break out U.S. sales.
McIlquham said the majority of the new Stearns & Foster product rollout has been completed, and the new Sealy Posturepedic line began shipping in late March. That rollout should be completed by the end of the fourth quarter, he said.
Sealy completed an initial public stock offering earlier this month, and the company said it soon will begin filing quarterly financial reports with the Securities and Exchange Commission. The first quarter report, known as Form 10-Q, will be filed by May 21, and the company said a conference call will be held after the filing.
The company said it will use $54.3 million from the public offering to retire its 8.25% senior subordinated notes due 2014. In addition, some $11 million will be paid to majority owner Kohlberg Kravis Roberts to terminate a management services agreement, and another $17.2 million will be used to pay a "transaction bonus" to management.
| Sealy | |||
|---|---|---|---|
| Quarter ended 2/26 | 2006 | 2005 | Change |
| (a) Includes a $287,000 net charge for the cumulative effect of a change in an accounting principle affecting years prior to Nov. 28, 2005. |
|||
| Sales | $395,735,000 | $359,023,000 | 10.2% |
| Operating income | 53,093,000 | 50,719,000 | 4.7% |
| Net income (a) | 24,298,000 | 21,853,000 | 11.2% |
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Sealy 1Q sales rise 10.2%, profits jump 11.2%
Apr 14, 2006
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