Tempur-Pedic profits surge 34.5%; sales up 22.1%
By Larry Thomas -- Furniture Today, October 29, 2007
Lexington, Ky. — Mattress manufacturer Tempur-Pedic continues to ignore the industry sales slump, reporting third-quarter sales that were 22.1% ahead of last year's third quarter.
The company, which specializes in high-end visco-elastic foam mattresses and pillows, said net income during the quarter rose even faster — some 34.5% above the same period in 2006.
"Tempur-Pedic delivered outstanding results in the third quarter, with growth across all products and geographic segments," said Thomas Bryant, president and CEO. "We are pleased with our year-to-date results and continue to see abundant opportunities to gain bedding market share around the globe."
The company said worldwide revenues were $294.1 million in the quarter, compared with $240.9 million in last year's third period. U.S. mattress sales, which make up about half the company's worldwide total, rose 22.2% to $149.2 million.
Net income totaled $38.8 million or 49 cents per share, up from $28.9 million or 34 cents per share a year ago.
"While Tempur-Pedic already is the industry leader for profitability, we believe our year-to-date financial results are consistent with our goal of ultimately becoming the worldwide leader in both sales and profitability," said Bryant.
He said U.S. retail demand exceeded expectations during the quarter, which resulted in spot shortages of certain mattress models. However, those shortages were eliminated by the end of the quarter, he said.
For the first nine months of the year, worldwide sales totaled $817.8 million, an 18.8% increase from the comparable 2006 period.
Nine-month net income was $101.5 million or $1.22 per share. For the same period last year, the figures were $81.9 million or 92 cents per share.
The company is projecting sales for all of 2007 to be $1.105 billion to $1.115 billion, an increase of 17% to 18% from 2006 sales of $945 million.
Tempur-Pedic also increased its earnings projections for the year to $1.74 to $1.76 per share. The company had been forecasting $1.63 to $1.66 per share. In 2006, earnings were $1.28 per share.
| Tempur-Pedic | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 9/30 | 2007 | 2006 | Change |
| (a) Based on average shares outstanding of 79.2 million in the 2007 three months, 85.7 million in the 2006 three months, 83.1 million in the 2007 nine months and 88.7 million in the 2006 nine months. (b) Includes a loss of $126,000 for extinguishment of debt in the 2006 nine months. | |||
| Sales | $294,094,000 | $240,917,000 | 22.1% |
| Operating income | 69,152,000 | 54,961,000 | 25.8% |
| Net income | 38,818,000 | 28,863,000 | 34.5% |
| Earnings per share (a) | 0.49 | 0.34 | 44.1% |
| 9 months ended 9/30 | 2007 | 2006 | Change |
| Sales | $817,768,000 | $688,465,000 | 18.8% |
| Operating income | 180,711,000 | 151,042,000 | 19.6% |
| Net income (b) | 101,529,000 | 81,868,000 | 24.0% |
| Earnings per share (a) | 1.22 | 0.92 | 32.6% |
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