- Net Sales Increased 19%, North America Direct Channel Net Sales Increased 60%
- Net Income Increased 110%, EPS Increased 118%
- Leverage Ratio Declined by Over 20% Compared to Prior Year

LEXINGTON, KY, April 30, 2020 - Tempur Sealy International, Inc. (NYSE: TPX) announced financial results for the first quarter ended March 31, 2020. As previously announced, the Company has withdrawn its previously-issued full-year financial guidance for 2020 and will not provide updated full-year financial guidance until the operating environment becomes clear.


Total net sales increased 19.0% to $822.4 million as compared to $690.9 million in the first quarter of 2019. On a constant currency basis(1), total net sales increased 19.8%, with an increase of 24.5% in the North America business segment and an increase of 2.0% in the International business segment.
Gross margin was 43.4% as compared to 40.8% in the first quarter of 2019.
Operating income increased 74.0% to $105.3 million as compared to $60.5 million in the first quarter of 2019. Operating income in the first quarter of 2020 included $11.7 million of charges associated with a wholesale customer bankruptcy. Adjusted operating income(1) increased 89.3% to $120.8 million as compared to $63.8 million in the first quarter of 2019.
Net income increased 110.2% to $59.7 million as compared to $28.4 million in the first quarter of 2019. Adjusted net income(1) increased 143.3% to $72.5 million as compared to $29.8 million in the first quarter of 2019.
Earnings before interest, tax, depreciation and amortization ("EBITDA")(1) increased 39.7% to $134.5 million as compared to $96.3 million for the first quarter of 2019. Adjusted EBITDA(1) increased 62.9% to $151.2 million as compared to $92.8 million in the first quarter of 2019.
Earnings per diluted share ("EPS") increased 117.6% to $1.11 as compared to $0.51 in the first quarter of 2019. Adjusted EPS(1) increased 148.1% to $1.34 as compared to $0.54 in the first quarter of 2019.
For the trailing twelve months ended March 31, 2020, leverage based on the ratio of consolidated indebtedness less netted cash(1) to adjusted EBITDA(1) was 3.03 times as compared to 3.84 times in the corresponding prior year period.

(in millions, except percentages and per common share amounts)Three Months Ended% Reported Change
% Constant Currency Change(1)
March 31, 2020March 31, 2019
Net sales$822.4  $690.9  19.0 %19.8 %
Net income$59.7  $28.4  110.2 %111.3 %
$134.5  $96.3  39.7 %40.2 %
Adjusted EBITDA (1)
$151.2  $92.8  62.9 %63.5 %
EPS$1.11  $0.51  117.6 %119.6 %
Adjusted EPS (1)
$1.34  $0.54  148.1 %150.0 %

Company Chairman and CEO Scott Thompson commented, "This is the fourth consecutive quarter of double-digit adjusted EBITDA growth. We are especially pleased with these results in light of COVID-19 having a material impact on our Asian business throughout the quarter, and a material impact on our North American and European markets during the second half of March. While there are significant challenges that lie ahead, our strong operating momentum heading into this crisis gives us confidence that we will emerge even stronger on the other side."

(1) This is a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures and Constant Currency Information" below.

The following information was filed by Tempur Sealy International, Inc. (TPX) on Thursday, April 30, 2020 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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