image0a75.gif

TEMPUR SEALY REPORTS FOURTH QUARTER AND FULL YEAR 2018 RESULTS
- Net Sales Grew 7% in the Fourth Quarter
- Tempur-Pedic Mattress Units Grew 36% in North America in the Fourth Quarter
- Company Settled All Litigation with Mattress Firm

LEXINGTON, KY, February 14, 2019 - Tempur Sealy International, Inc. (NYSE: TPX) announced financial results for the fourth quarter and year ended December 31, 2018. The Company also issued financial guidance for the full year 2019.

FOURTH QUARTER 2018 FINANCIAL SUMMARY(1) 

Total net sales increased 7.1% to $676.1 million as compared to $631.4 million in the fourth quarter of 2017. On a constant currency basis(2), total net sales increased 8.2%, with an increase of 9.1% in the North America business segment and an increase of 5.2% in the International business segment.
Gross margin under U.S. generally accepted accounting principles ("GAAP") was 41.9% as compared to 42.4% in the fourth quarter of 2017. Adjusted gross margin(2) was 42.4% in the fourth quarters of 2018 and 2017.
GAAP operating income decreased 29.7% to $57.9 million, or 8.6% of net sales, as compared to $82.4 million, or 13.1% of net sales, in the fourth quarter of 2017. Operating income in the fourth quarter included $21.2 million of charges associated with a wholesale customer bankruptcy and other adjustments. Adjusted operating income(2) increased 9.0% to $90.8 million, or 13.4% of net sales, as compared to $83.3 million, or 13.2% of net sales, in the fourth quarter of 2017.
GAAP net income decreased 74.6% to $12.3 million as compared to $48.4 million in the fourth quarter of 2017. Adjusted net income(2) increased 4.0% to $49.7 million as compared to $47.8 million in the fourth quarter of 2017.
Earnings before interest, tax, depreciation and amortization ("EBITDA")(2) decreased 16.2% to $77.9 million as compared to $93.0 million for the fourth quarter of 2017. Adjusted EBITDA(2) increased 5.5% to $117.9 million as compared to $111.8 million in the fourth quarter of 2017.
GAAP earnings per diluted share ("EPS") decreased to $0.22 as compared to $0.88 in the fourth quarter of 2017. Adjusted EPS(2) increased 3.4% to $0.90 as compared to $0.87 in the fourth quarter of 2017.
The Company ended the fourth quarter of 2018 with total debt of $1.7 billion and consolidated funded debt less qualified cash(2) of $1.6 billion. Leverage based on the ratio of consolidated funded debt less qualified cash to adjusted EBITDA(2) was 3.87 times for the trailing twelve months ended December 31, 2018.

FULL YEAR 2018 FINANCIAL SUMMARY(1) 

Total net sales increased 0.1% to $2,702.9 million from $2,700.6 million in 2017.
GAAP gross margin was 41.5% in both 2018 and 2017. Adjusted gross margin(2) was 41.9% as compared to 42.0% in 2017.
GAAP operating income was $256.3 million, or 9.5% of net sales, as compared to $295.5 million, or 10.9% of net sales, in 2017. Adjusted operating income(2) was $307.6 million, or 11.4% of net sales, as compared to $325.3 million, or 12.0% of net sales, in 2017.
GAAP net income was $100.5 million as compared to $151.4 million in 2017. Adjusted net income(2) was $163.0 million as compared to $179.2 million in 2017.
GAAP EPS was $1.82 as compared to $2.77 in 2017. Adjusted EPS(2) was $2.96 as compared to $3.28 in 2017.


KEY HIGHLIGHTS
(in millions, except percentages and per common share amounts)
Three Months Ended
 
% Reported Change
 
% Constant Currency Change(2)
 
Year Ended
 
% Reported Change
 
% Constant Currency Change(2)
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
Net sales
$
676.1

 
$
631.4

 
7.1
 %
 
8.2
 %
 
$
2,702.9


$
2,700.6


0.1
 %

(0.3
)%
Net income
12.3

 
48.4

 
(74.6
)%
 
(72.1
)%
 
100.5

 
151.4

 
(33.6
)%
 
(32.7
)%
Adjusted net income(2)
49.7

 
47.8

 
4.0
 %
 
6.5
 %
 
163.0

 
179.2

 
(9.0
)%
 
(8.3
)%
EBITDA (2)
77.9

 
93.0

 
(16.2
)%
 
(14.2
)%
 
356.1


376.5


(5.4
)%

(5.0
)%
Adjusted EBITDA (2)
117.9

 
111.8

 
5.5
 %
 
7.1
 %
 
424.7


445.6


(4.7
)%

(4.4
)%



(1) All amounts presented for 2017 reflect reclassifications to previously reported amounts to adjust for discontinued operations.
(2) This is a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures and Constant Currency Information" below.
1

The following information was filed by Tempur Sealy International, Inc. (TPX) on Thursday, February 14, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Tempur Sealy International, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Tempur Sealy International, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account