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Tempur-Pedic sales jump 19% in 4Q, 12.9% for year

By Larry Thomas -- Furniture Today, February 4, 2007

Lexington, Ky. — Paced by its rapidly growing U.S. mattress operations, specialty bedding producer Tempur-Pedic reported double-digit sales gains for the fourth quarter and the 2006 calendar year.

The company, which manufactures visco-elastic foam mattresses, pillows and related products, said worldwide sales rose 19% to $256.6 million in the quarter. For the full year, sales jumped 12.9% to $945 million.

In the United States, fourth-quarter sales were $115.8 million, 23.9% ahead of the final quarter of 2005. For the full year, U.S. sales totaled $455.7 million, a gain of 16.3% over 2005.

"Tempur-Pedic delivered a great year during what was a challenging environment for our industry," said Thomas Bryant, chairman and CEO. "In the fourth quarter, our U.S. operations continued to demonstrate outstanding performance. We continued to grow market share and gained retail floor space."

In a conference call with securities analysts, Bryant said a new factory opened this month in Albuquerque, N.M., will help meet growing demand in the United States. The 800,000-square-foot plant, which Tempur-Pedic believes is the world's largest bedding factory, is the company's second U.S. plant.

"We are happy to have Albuquerque up and running," Bryant said. "We have accelerated our production plans there."

Fourth-quarter net income was essentially even with the same period in 2005, largely due to one-time charges stemming from early retirement of debt. The company had a profit of $30.45 million in the most recent quarter, compared with $30.36 million a year earlier.

For the full year, net income was $112.3 million, up 13.1% from 2005.

Separately, the company announced it will begin paying a quarterly dividend of 6 cents per share. The first payment will be distributed March 14 to stockholders of record Feb. 27.

Tempur-Pedic
Earnings per share are fully diluted.
Quarter ended 12/31	2006	2005	Change
(a) Includes pretax losses on debt extinguishment of $10.7 million in the 2006 periods, $3.5 million in the 2005 quarter and $4.2 million in the 2005 year. (b) Based on average shares outstanding of 85.7 million in the 2006 quarter, 99.6 million in the 2005 quarter, 87.5 million in the 2006 year and 102.1 million in the 2005 year.
Sales	$256,580,000	$215,643,000	19.0%
Operating income	61,991,000	54,996,000	12.7%
Net income (a)	30,454,000	30,361,000	0.3%
Earnings per share (b)	0.36	0.30	20.0%
Year ended 12/31	2006	2005	Change
Sales	$945,045,000	$836,732,000	12.9%
Operating income	213,033,000	193,311,000	10.2%
Net income (a)	112,322,000	99,329,000	13.1%
Earnings per share (b)	1.28	0.97	32.0%

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Tempur-Pedic sales rise 19% in fourth quarter

Feb 1, 2007

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