Tempur Sealy 4Q sales jump 98.8% with acquisition
Jay McIntosh -- Furniture Today, February 19, 2014
Lexington, Ky. - Tempur Sealy International reported slightly lower net income in the fourth quarter as the company's sales jumped 98.8% to $678.1 million with the addition of Sealy.
The company acquired Sealy in March and said the brand's fourth-quarter sales were $333.5 million, including $305.3 million in bedding. Comparable numbers for 2012 weren't given.
Tempur North America sales decreased 0.7% from the 2012 fourth quarter to $226.2 million, with bedding sales down the same amount to $205.7 million.
Tempur International sales grew 4.5% to $118.4 million, including $88 million in bedding, also up 4.5% from a year ago.
Net income of $22.9 million was down 2.6% from a year earlier. The company said its adjusted net income, excluding transaction costs and certain other expenses, rose 12.6% to $41.1 million. Adjusted earnings per share were 66 cents, up from 60 cents a year ago.
The gross profit margin for the quarter fell to 40.2% from 50% a year earlier, mainly because Sealy's margins are lower than those of the Tempur divisions, the company said.
For the year, Tempur Sealy International sales of $2.5 billion were up 75.7% from 2012. Net income of $74 million or $1.20 per share was down 30.7% from $106.8 million or $1.70 per share the previous year. Adjusted net income was $146.4 million or $2.38 per share, compared with $164.1 million or $2.61 per share in 2012.
"Overall our fourth quarter was in line with our expectations," company CEO Mark Sarvary said in a release. "Sealy's fourth quarter sales were above our expectations and Tempur International returned to growth with sales increases in Europe, Asia and Latin America. Tempur North America showed continued stability with sales down 1% as compared to last year."
He added that since the acquisition of Sealy in March, the company has "integrated all of the key functions, which has led to greater cost synergies than initially projected."
For 2014, the company said it expects sales of $2.8 billion to $2.9 billion, adjusted earnings before interest, taxes, depreciation and amortization of $415 million to $435 million, and adjusted earnings per share of $2.60 to $2.85.
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