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Sealy Sales Rise 4.2% in 3Q

Larry Thomas -- Furniture Today, October 12, 2011

ARCHDALE, N.C. - Aided by the launch of its revamped Posturepedic line, bedding major Sealy said its sales in the fiscal third quarter rose 4.2%.
     Worldwide sales for the quarter ended Aug. 28 totaled $334.1 million, up from $320.5 million in the same quarter last year.
     U.S. sales rose 2.5% to $257.3 million. The company said the average unit selling price increased 3.9% but unit volume dropped 0.8%.
     Net income from continuing operations was $7.45 million or 4 cents per share. That was down 18.8% from $9.23 million or 5 cents per share, in the same quarter last year.
     The company said it believes the product launch, which it described as "the largest and fastest rollout in the company's history," has resulted in innerspring market share gains.
     "We continued to reap the benefits of both our recent Next Generation Posturepedic launch and our new advertising campaign in the third quarter, as we delivered year-over-year sales growth, sequential gross margin improvement, year-over-year U.S. gross margin improvement, and year-over-year adjusted EBITDA growth," said Larry Rogers, president and CEO.
     "These results were achieved despite a more challenging macroeconomic environment as well as volatility and increases in the costs of our raw materials," he said.
     Net income for the quarter, including a loss of $891,000 from discontinued operations in Europe and Brazil, was $6.6 million or 4 cents per share. That reversed a net loss of $15.8 million, or 4 cents per share, in last year's fiscal third quarter. The prior year quarter included a loss of $25 million from discontinued operations.
     For the nine months ended Aug. 28, sales rose 4.1% to $960.9 million. Income from continuing operations was $8.37 million or 8 cents per share. That compares with income of $21.2 million or 22 cents per share in the first nine months of the previous fiscal year.
     Including losses from discontinued operations, nine-month net income was $5.32 million. That compares with a net loss of $9.26 million in the same period the previous year.

Sealy
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
Quarter ended 8/28	2011	2010	Change
Sales	$334,067,000	$320,503,000	4.2%
Operating income	32,873,000	31,689,000	3.7%
Net income (a)	6,598,000	(15,823,000)	-
Earnings per share	0.04	(0.04)	-
9 months ended 8/28	2011	2010	Change
Sales	$960,892,000	$922,916,000	4.1%
Operating income	65,270,000	87,560,000	(25.5%)
Net income (b)	5,319,000	(9,259,000)	-
Earnings per share (c)	0.07	0.01	600.0%
(a) Includes loss from discontinued operations of $891,000 in 2011 and $25 million in 2010. (b) Includes loss from discontinued operations of $3.05 million in 2011 and $30.4 million in 2010. (c) Calculated after interest on convertible notes is added to net income from continuing operations. Interest was $14.55 million in 2011 and $11.93 million in 2010.

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Sealy's sales rise 4.2% as new Posturepedic rolls out

Sep 28, 2011

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