0001193125-23-266233.txt : 20231030 0001193125-23-266233.hdr.sgml : 20231030 20231030164353 ACCESSION NUMBER: 0001193125-23-266233 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20231030 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20231030 DATE AS OF CHANGE: 20231030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEGGETT & PLATT INC CENTRAL INDEX KEY: 0000058492 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD FURNITURE [2510] IRS NUMBER: 440324630 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07845 FILM NUMBER: 231360914 BUSINESS ADDRESS: STREET 1: NO. 1 LEGGETT ROAD CITY: CARTHAGE STATE: MO ZIP: 64836 BUSINESS PHONE: (417) 358-8131 MAIL ADDRESS: STREET 1: NO. 1 LEGGETT ROAD CITY: CARTHAGE STATE: MO ZIP: 64836 8-K 1 d578661d8k.htm FORM 8-K FORM 8-K
LEGGETT & PLATT INC false 0000058492 0000058492 2023-10-30 2023-10-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 30, 2023

 

 

LEGGETT & PLATT, INCORPORATED

(Exact name of registrant as specified in its charter)

 

 

 

Missouri   001-07845   44-0324630

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

No. 1 Leggett Road,  
CarthageMO   64836
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code 417-358-8131

N/A

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $.01 par value   LEG   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition.

On October 30, 2023, Leggett & Platt, Incorporated issued a press release announcing its financial results for the third quarter of 2023 and related matters. The press release is attached as Exhibit 99.1 and is incorporated herein by reference.

This information is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. This information shall not be incorporated by reference into any document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

On October 31, 2023, the Company will hold an investor conference call to discuss its third quarter results, annual earnings guidance, market conditions and related matters.

The press release contains the Company (i) Net Debt/Adjusted EBITDA (trailing twelve months) ratio; (ii) Adjusted EPS; (iii) Adjusted EBIT; (iv) Adjusted EBIT Margin; (v) EBITDA; (vi) EBITDA Margin; (vii) Adjusted EBITDA; (viii) Adjusted EBITDA Margin; (ix) Adjusted EBITDA (trailing twelve months); and (x) Organic Sales.

The press release also contains certain Segments’ (i) adjusted EBIT; (ii) adjusted EBIT Margin; (iii) EBITDA; (iv) Adjusted EBITDA; (v) EBITDA Margin; (vi) Adjusted EBITDA Margin; and (vii) change in Organic Sales.

Company management believes the presentation of Net Debt/Adjusted EBITDA (trailing twelve months) provides investors a useful way to assess the time it would take the Company to pay off its debt, ignoring various factors including interest and taxes. Management uses this ratio as supplemental information to assess its ability to pay off its incurred debt. Because we may not be able to use our earnings to reduce our debt on a dollar-for-dollar basis, the presentation of Net Debt/Adjusted EBITDA (trailing twelve months) may have material limitations.

Company management believes the presentation of Company Adjusted EPS, Adjusted EBIT, Adjusted EBIT Margin, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA (trailing twelve months), and Segment adjusted EBIT, adjusted EBIT Margin, EBITDA, adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin is useful to investors in that it aids investors’ understanding of underlying operational profitability. Management uses these non-GAAP measures as supplemental information to assess the Company’s operational performance.

Organic Sales is calculated as trade sales excluding sales attributable to acquisitions and divestitures consummated within the last twelve months. Company management believes the presentation of Organic Sales, or change in Organic Sales, is useful to investors, and is used by management, as supplemental information to analyze our underlying sales performance from period to period in our legacy businesses.

The above non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for, or more meaningful than, their GAAP counterparts. For non-GAAP reconciliations, please refer to pages 6 and 7 of the press release.

 

Item 7.01

Regulation FD Disclosure.

The information provided in Item 2.02, including Exhibit 99.1, is incorporated herein by reference.

 

2


Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

EXHIBIT INDEX

 

Exhibit
No.
  

Description

99.1*    Press Release dated October 30, 2023
101.INS    Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document)
101.SCH**    Inline XBRL Taxonomy Extension Schema
101.LAB**    Inline XBRL Taxonomy Extension Label Linkbase
101.PRE**    Inline XBRL Taxonomy Extension Presentation Linkbase
104    Cover Page Interactive Data File (embedded within the inline XBRL document contained in Exhibit 101)

 

*

Denotes furnished herewith.

**

Denotes filed herewith.

 

3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    LEGGETT & PLATT, INCORPORATED
Date: October 30, 2023     By:  

/s/ SCOTT S. DOUGLAS

            Scott S. Douglas
            Senior Vice President –
            General Counsel & Secretary

 

4

EX-99.1 2 d578661dex991.htm PRESS RELEASE DATED OCTOBER 30, 2023 PRESS RELEASE DATED OCTOBER 30, 2023

Exhibit 99.1

 

LOGO    LOGO

FOR IMMEDIATE RELEASE: OCTOBER 30, 2023

LEGGETT & PLATT REPORTS 3Q RESULTS

Carthage, MO, October 30, 2023 —

 

   

3Q sales of $1.18 billion, a 9% decrease vs 3Q22

 

   

3Q EPS of $.39, a decrease of $.13 vs 3Q22; 3Q adjusted1 EPS of $.36, down $.16 vs 3Q22

 

   

3Q cash from operations of $144 million, a $78 million increase vs 3Q22

 

   

2023 guidance lowered: sales of $4.7–$4.75 billion; EPS of $1.45–$1.55, adjusted1 EPS of $1.35–$1.45

President and CEO Mitch Dolloff commented, “I would like to thank our employees for their tremendous efforts in what was another challenging quarter. Ongoing weak demand impacted our Bedding Products and Furniture, Flooring, & Textile Products segments but was partially offset by continued demand strength in our Specialized Products segment.

“We are lowering our full year guidance to reflect continued volatility in the macroeconomic environment, continued low consumer demand in residential end markets, and the modest impact we have experienced so far from the UAW strike on several North American automakers. The UAW strike had minimal impact on our Automotive business in the third quarter. So far in the fourth quarter, the sales impact has been approximately $5 million, which may not be indicative of future impacts. Due to uncertainties around the duration and severity of the strike, our updated full year guidance does not include impacts beyond what we have experienced so far.

“We are focused on anticipating and adapting to market changes, improving operating efficiency, driving strong cash management, and engaging with our customers on new product opportunities. We are evaluating opportunities across our businesses, including further integration of our specialty foam and innerspring operations, that are expected to support improved profitability, a strong balance sheet, and continued shareholder returns.”

THIRD QUARTER RESULTS

Third quarter sales were $1.18 billion, a 9% decrease versus third quarter last year.

 

   

Organic sales2 were down 11%

 

   

Volume was down 6%, primarily from demand softness in domestic residential end markets, partially offset by growth in our Aerospace and Automotive businesses

 

   

Raw material-related selling price decreases, net of currency benefit, reduced sales 5%

 

   

Acquisitions increased sales 2%

Third quarter EBIT was $91 million, down $22 million or 19% from third quarter 2022 EBIT, and adjusted1 EBIT was $86 million, a $27 million decrease.

 

1 

Please refer to attached tables for Non-GAAP Reconciliations

2 

Trade sales excluding acquisitions/divestitures in the last 12 months


   

EBIT and adjusted1 EBIT decreased primarily from lower metal margin in our Steel Rod business and lower volume in residential end markets. These decreases were partially offset by lower incentive compensation and lower bad debt expense.

 

   

3Q 2023 adjustment is for a $5 million gain from a real estate sale within our Bedding segment

 

   

EBIT margin was 7.8% and adjusted1 EBIT margin was 7.3%, down from 8.7% in the third quarter of 2022

Third quarter EPS was $.39, a $.13 decrease versus third quarter 2022 EPS. Third quarter adjusted1 EPS was $.36, down $.16 versus third quarter 2022 EPS.

DEBT, CASH FLOW, AND LIQUIDITY

 

   

Net Debt1 was 3.15x trailing 12-month adjusted EBITDA1

 

   

Debt at September 30

 

   

Total debt of $2.0 billion, including $171 million of commercial paper outstanding

 

   

No significant maturities until November 2024

 

   

Operating cash flow was $144 million in the third quarter, an increase of $78 million versus third quarter 2022, reflecting working capital improvements partially offset by lower earnings

 

   

Capital expenditures were $22 million

 

   

Total liquidity was $595 million at September 30

 

   

$274 million cash on hand

 

   

$321 million in capacity remaining under revolving credit facility

DIVIDEND

 

   

In August, Leggett & Platt’s Board of Directors declared a $.46 per share third quarter dividend, two cents higher than last year’s third quarter dividend

STOCK REPURCHASES

 

   

Net issuances of .1 million shares through employee benefit plans

 

   

Shares outstanding at the end of the third quarter were 133.3 million

2023 GUIDANCE

 

   

Full year 2023 sales and EPS guidance lowered. Guidance does not include impacts from the UAW strike beyond what we have experienced so far due to uncertainties around the duration and severity of the strike.

 

   

Sales are expected to be $4.7–$4.75 billion, -8% to -9% versus 2022

 

   

Volume at the midpoint expected to be down mid-single digits:

 

   

Down high single digits in Bedding Products Segment

 

   

Up high single digits in Specialized Products Segment

 

   

Down low double digits in Furniture, Flooring & Textile Products Segment

 

   

Raw material-related price decreases and currency impact combined expected to reduce sales mid-single digits

 

   

Acquisitions completed in 2022 expected to add ~2% to sales

 

   

EPS is expected to be $1.45–$1.55

 

   

Decrease is primarily from lower expected volume in our Furniture, Flooring & Textile Products and Bedding Products segments

 

   

Includes anticipated gain from net insurance proceeds from tornado damage of ~$.07 per share and gain on the sale of real estate of $.03 per share

 

   

Adjusted EPS is expected to be $1.35–$1.45

 

   

Based on this framework, EBIT margin should be 7.4%–7.7%; adjusted EBIT margin should be 7.0%–7.3%

 

2 of 7


   

Additional expectations:

 

   

Depreciation and amortization $185 million

 

   

Net interest expense $85 million

 

   

Effective tax rate 24%

 

   

Fully diluted shares 137 million

 

   

Operating cash flow $450–$500 million

 

   

Capital expenditures $110–$130 million

 

   

Dividends $240 million

 

   

Minimal acquisitions and share repurchases

 

   

Implied 4Q Guidance:

 

   

Sales: $1.09–$1.14 billion

 

   

EPS: $.27–$.37

 

   

Adjusted EPS: $.22–$.32

 

   

Prior Full Year Guidance:

 

   

Sales: $4.75–$4.95 billion

 

   

EPS: $1.50–$1.70

 

   

Adjusted EPS: $1.45–$1.65

SEGMENT RESULTS – Third Quarter 2023 (versus 3Q 2022)

Bedding Products

 

   

Trade sales decreased 17%

 

   

Volume decreased 8%, primarily due to demand softness in domestic markets

 

   

Raw material-related selling price decreases reduced sales 10%

 

   

Currency benefit increased sales 1%

 

   

EBIT decreased $13 million, primarily from lower metal margin and lower volume, partially offset by a $5 million gain from a real estate sale

Specialized Products

 

   

Trade sales increased 10%

 

   

Volume increased 3% from growth in Aerospace and Automotive

 

   

Raw material-related selling price decreases were offset by currency benefit

 

   

Hydraulic Cylinders acquisition completed in August 2022 added 7%

 

   

EBIT was flat on higher sales primarily offset by consolidation costs at an Automotive facility and the lag associated with passing through raw material-related pricing changes in Hydraulic Cylinders

Furniture, Flooring & Textile Products

 

   

Trade sales decreased 11%

 

   

Volume decreased 11%, with declines across the segment

 

   

Raw material-related selling price decreases, net of currency benefit, reduced sales 3%

 

   

Textiles acquisitions added 3%

 

   

EBIT decreased $9 million, primarily from lower volume

SLIDES AND CONFERENCE CALL

A set of slides containing summary financial information is available from the Investor Relations section of Leggett’s website at www.leggett.com. Management will host a conference call at 7:30 a.m. Central (8:30 a.m. Eastern) on Tuesday, October 31. The webcast can be accessed from Leggett’s website. The dial-in number is (201) 689-8341; there is no passcode.

 

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FOR MORE INFORMATION: Visit Leggett’s website at www.leggett.com.

COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 140-year-old Company is comprised of 15 business units, approximately 20,000 employees, and 135 manufacturing facilities located in 18 countries.

Leggett & Platt is the leading U.S.-based manufacturer of: a) bedding components; b) automotive seat support and lumbar systems; c) specialty bedding foams and private label finished mattresses; d) components for home furniture and work furniture; e) flooring underlayment; f) adjustable beds; and g) bedding industry machinery.

FORWARD-LOOKING STATEMENTS: This press release contains “forward-looking statements,” including, but not limited to the amount of the Company’s forecasted 2023 full-year volume; acquisition sales growth; sales, EPS, adjusted EPS; capital expenditures; depreciation and amortization; net interest expense; fully diluted shares; operating cash flow; EBIT margin; adjusted EBIT margin; effective tax rate; amount of dividends; raw material related price decreases; currency impact; volume in each of the Company’s segments; minimal acquisitions and share repurchases; gain from net insurance proceeds from tornado damage; gains from sale of real estate. Such forward-looking statements are expressly qualified by the cautionary statements described in this provision and reflect only the beliefs of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks and uncertainties include: the adverse impact on our sales, earnings, our liquidity impacting our ability to pay our obligations as they come due, margins, cash flow, costs, and financial condition caused by: the United Auto Workers strike; actions arising from our evaluation of opportunities across our businesses; the Russian invasion of Ukraine; global inflationary and deflationary impacts; macro-economic impacts; the demand for our products and our customers’ products; growth rates in the industries in which we participate and opportunities in those industries; our manufacturing facilities’ ability to remain fully operational and obtain necessary raw materials and parts, maintain appropriate labor levels and ship finished products to customers; the impairment of goodwill and long-lived assets; restructuring-related costs; our ability to access the commercial paper market or borrow under our revolving credit facility, including compliance with restrictive covenants that may limit our operational flexibility and our ability to timely pay our debt; adverse impact from supply chain shortages and disruptions; our ability to manage working capital; increases or decreases in our capital needs, which may vary depending on acquisition or divestiture activity; our ability to collect trade receivables; market conditions; price and product competition from foreign and domestic competitors; cost and availability of raw materials due to supply chain disruptions or otherwise; labor and energy costs; cash generation sufficient to pay the dividend; cash repatriation from foreign accounts; our ability to pass along raw material cost increases through increased selling prices; conflict between China and Taiwan; our ability to maintain profit margins if customers change the quantity or mix of our components in their finished products; our ability to maintain and grow the profitability of acquired companies; political risks; changing tax rates; increased trade costs; risks related to operating in foreign countries; cybersecurity incidents; customer bankruptcies, losses and insolvencies; disruption to our steel rod mill and other operations and supply chain because of severe weather-related events, natural disaster, fire, explosion, terrorism, pandemic, governmental action; ability to develop innovative products; bank failures; foreign currency fluctuation; the amount of share repurchases; the imposition or continuation of anti-dumping duties on innersprings, steel wire rod and mattresses; data privacy; climate change compliance costs and regulatory, market, technological and reputational impacts; our ESG obligations; litigation risks; and risk factors in the “Forward-Looking Statements” and “Risk Factors” sections in Leggett’s most recent Form 10-K and Form 10-Q filed with the SEC.

CONTACT: Investor Relations, (417) 358-8131 or invest@leggett.com

Susan R. McCoy, Senior Vice President, Investor Relations

Cassie J. Branscum, Senior Director, Investor Relations

Kolina A. Talbert, Manager, Investor Relations

 

4 of 7


LEGGETT & PLATT    Page 5 of 7    October 30, 2023

 

RESULTS OF OPERATIONS

   THIRD QUARTER     YEAR TO DATE  

(In millions, except per share data)

   2023     2022     Change     2023     2022     Change  

Trade sales

   $ 1,175.4     $ 1,294.4       (9 )%    $ 3,610.2     $ 3,950.9       (9 )% 

Cost of goods sold

     961.1       1,063.9         2,956.2       3,184.7    
  

 

 

   

 

 

     

 

 

   

 

 

   

Gross profit

     214.3       230.5       (7 )%      654.0       766.2       (15 )% 

Selling & administrative expenses

     109.1       100.4       9     344.3       317.5       8

Amortization

     17.9       16.6         51.6       50.0    

Other (income) expense, net

     (4.1     0.3         (18.3     4.9    
  

 

 

   

 

 

     

 

 

   

 

 

   

Earnings before interest and taxes

     91.4       113.2       (19 )%      276.4       `393.8       (30 )% 

Net interest expense

     20.5       19.7         63.5       59.2    
  

 

 

   

 

 

     

 

 

   

 

 

   

Earnings before income taxes

     70.9       93.5         212.9       334.6    

Income taxes

     18.0       22.0         52.3       77.5    
  

 

 

   

 

 

     

 

 

   

 

 

   

Net earnings

     52.9       71.5         160.6       257.1    

Less net income from noncontrolling interest

     (0.1     (0.1       (0.1     (0.1  
  

 

 

   

 

 

     

 

 

   

 

 

   

Net Earnings Attributable to L&P

   $ 52.8     $ 71.4       (26 )%    $ 160.5     $ 257.0       (38 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

Earnings per diluted share

            

Net earnings per diluted share

   $ 0.39     $ 0.52       (25 )%    $ 1.18     $ 1.88       (37 )% 

Shares outstanding

            

Common stock (at end of period)

     133.3       132.6       0.5     133.3       132.6       0.5

Basic (average for period)

     136.4       135.7         136.2       136.2    

Diluted (average for period)

     136.8       136.1       0.5     136.5       136.6       (0.1 )% 

CASH FLOW

   THIRD QUARTER     YEAR TO DATE  

(In millions)

   2023     2022     Change     2023     2022     Change  

Net earnings

   $ 52.9     $ 71.5       $ 160.6     $ 257.1    

Depreciation and amortization

     45.0       44.1         135.1       134.3    

Working capital decrease (increase)

     60.1       (44.8       52.3       (214.9  

Impairments

     —        —          —        —     

Other operating activities

     (14.2     (5.3       3.1       17.8    
  

 

 

   

 

 

     

 

 

   

 

 

   

Net Cash from Operating Activities

   $ 143.8     $ 65.5       120   $ 351.1     $ 194.3       81

Additions to PP&E

     (22.2     (24.7       (90.4     (65.5  

Purchase of companies, net of cash

     —        (62.5       —        (62.5  

Proceeds from disposals of assets and businesses

     7.9       0.3         13.2       3.0    

Dividends paid

     (61.2     (58.7       (178.1     (170.8  

Repurchase of common stock, net

     (0.2     (3.4       (5.5     (60.3  

Additions (payments) to debt, net

     (60.0     50.5         (121.7     52.9    

Other

     (6.6     (10.7       (11.2     (26.6  
  

 

 

   

 

 

     

 

 

   

 

 

   

Increase (Decrease) in Cash & Equivalents

   $ 1.5     $ (43.7     $ (42.6   $ (135.5  
  

 

 

   

 

 

     

 

 

   

 

 

   

 

FINANCIAL POSITION

   Sep 30,      Dec 31,         

(In millions)

   2023      2022      Change  

Cash and equivalents

   $ 273.9      $ 316.5     

Receivables

     711.3        675.0     

Inventories

     834.9        907.5     

Other current assets

     66.1        59.0     
  

 

 

    

 

 

    

Total current assets

     1,886.2        1,958.0        (4 )% 

Net fixed assets

     776.7        772.4     

Operating lease right-of-use assets

     200.1        195.0     

Goodwill

     1,475.4        1,474.4     

Intangible assets and deferred costs, both at net

     739.2        786.3     
  

 

 

    

 

 

    

TOTAL ASSETS

   $ 5,077.6      $ 5,186.1        (2 )% 
  

 

 

    

 

 

    

Trade accounts payable

   $ 534.1      $ 518.4     

Current debt maturities

     8.9        9.4     

Current operating lease liabilities

     55.9        49.5     

Other current liabilities

     410.2        390.8     
  

 

 

    

 

 

    

Total current liabilities

     1,009.1        968.1        4
  

 

 

    

 

 

    

Long-term debt

     1,963.0        2,074.2        (5 )% 

Operating lease liabilities

     156.5        153.6     

Deferred taxes and other liabilities

     313.1        348.8     

Equity

     1,635.9        1,641.4        — 
  

 

 

    

 

 

    

Total Capitalization

     4,068.5        4,218.0        (4 )% 
  

 

 

    

 

 

    

TOTAL LIABILITIES & EQUITY

   $ 5,077.6      $ 5,186.1        (2 )% 
  

 

 

    

 

 

    


LEGGETT & PLATT    Page 6 of 7    October 30, 2023

 

SEGMENT RESULTS 1

   THIRD QUARTER     YEAR TO DATE  

(In millions)

   2023     2022     Change     2023     2022     Change  

Bedding Products

            

Trade sales

   $ 483.3     $ 582.0       (17 )%    $ 1,516.2     $ 1,833.9       (17 )% 

EBIT

     31.1       43.9       (29 )%      87.4       189.2       (54 )% 

EBIT margin

     6.4     7.5     -110 bps 2      5.8     10.3     -450 bps 2 

Gain on sale of real estate

     (5.4     —          (5.4     —     

Gain from net insurance proceeds from tornado damage

     —        —          (0.6     —     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted EBIT 3

     25.7       43.9       (41 )%      81.4       189.2       (57 )% 

Adjusted EBIT margin3

     5.3     7.5     -220 bps       5.4     10.3     -490 bps  

Depreciation and amortization

     26.2       25.7         77.3       78.1    
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted EBITDA

     51.9       69.6       (25 )%      158.7       267.3       (41 )% 

Adjusted EBITDA margin

     10.7     12.0     -130 bps       10.5     14.6     -410 bps  

Specialized Products

            

Trade sales

   $ 319.4     $ 291.3       10   $ 961.3     $ 815.5       18

EBIT

     31.2       31.3       —      93.0       73.0       27

EBIT margin

     9.8     10.7     -90 bps       9.7     9.0     70 bps  

Depreciation and amortization

     10.7       9.7         31.7       30.4    
  

 

 

   

 

 

     

 

 

   

 

 

   

EBITDA

     41.9       41.0       2     124.7       103.4       21

EBITDA margin

     13.1     14.1     -100 bps       13.0     12.7     30 bps  

Furniture, Flooring & Textile Products

            

Trade sales

   $ 372.7     $ 421.1       (11 )%    $ 1,132.7     $ 1,301.5       (13 )% 

EBIT

     29.5       38.3       (23 )%      96.7       132.3       (27 )% 

EBIT margin

     7.9     9.1     -120 bps       8.5     10.2     -170 bps  

Gain from net insurance proceeds from tornado damage

     —        —          (3.0     —     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted EBIT 3

     29.5       38.3       (23 )%      93.7       132.3       (29 )% 

Adjusted EBIT Margin3

     7.9     9.1     -120 bps       8.3     10.2     -190 bps  

Depreciation and amortization

     5.5       5.7         17.0       17.5    
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted EBITDA

     35.0       44.0       (20 )%      110.7       149.8       (26 )% 

Adjusted EBITDA margin

     9.4     10.4     -100 bps       9.8     11.5     -170 bps  

Total Company

            

Trade sales

   $ 1,175.4     $ 1,294.4       (9 )%    $ 3,610.2     $ 3,950.9       (9 )% 

EBIT - segments

     91.8       113.5       (19 )%      277.1       394.5       (30 )% 

Intersegment eliminations and other

     (0.4     (0.3       (0.7     (0.7  
  

 

 

   

 

 

     

 

 

   

 

 

   

EBIT

     91.4       113.2       (19 )%      276.4       393.8       (30 )% 

EBIT margin

     7.8     8.7     -90 bps       7.7     10.0     -230 bps  

Gain from sale of real estate3

     (5.4     —          (5.4     —     

Gain from net insurance proceeds from tornado damage3

     —        —          (3.6     —     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted EBIT 3

     86.0       113.2       (24 )%      267.4       393.8       (32 )% 

Adjusted EBIT margin3

     7.3     8.7     -140 bps       7.4     10.0     -260 bps  

Depreciation and amortization - segments

     42.4       41.1         126.0       126.0    

Depreciation and amortization - unallocated 4

     2.6       3.0         9.1       8.3    
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted EBITDA

   $ 131.0     $ 157.3       (17 )%    $ 402.5     $ 528.1       (24 )% 

Adjusted EBITDA margin

     11.1     12.2     -110 bps       11.1     13.4     -230 bps  

LAST SIX QUARTERS

   2022     2023  

Selected Figures (In Millions)

   2Q     3Q     4Q     1Q     2Q     3Q  

Trade sales

     1,334.2       1,294.4       1,195.8       1,213.6       1,221.2       1,175.4  

Sales growth (vs. prior year)

     5     (2 )%      (10 )%      (8 )%      (8 )%      (9 )% 

Volume growth (same locations vs. prior year)

     (6 )%      (8 )%      (12 )%      (7 )%      (6 )%      (6 )% 

Adjusted EBIT 3

     143.0       113.2       91.2       89.3       92.1       86.0  

Cash from operations

     89.8       65.5       247.1       96.7       110.6       143.8  

Adjusted EBITDA (trailing twelve months) 3

     760.3       726.8       664.8       616.2       565.5       539.2  

(Long-term debt + current maturities - cash and equivalents) / adj. EBITDA 3,5

     2.39       2.63       2.66       2.88       3.10       3.15  

Organic Sales (Vs. Prior Year) 6

   2Q     3Q     4Q     1Q     2Q     3Q  

Bedding Products

     —      (12 )%      (19 )%      (17 )%      (18 )%      (17 )% 

Specialized Products

     8     19     5     8     12     3

Furniture, Flooring & Textile Products

     10     —      (13 )%      (15 )%      (16 )%      (14 )% 

Overall

     5     (3 )%      (12 )%      (11 )%      (11 )%      (11 )% 

 

1 

Segment and overall company margins calculated on net trade sales.

2 

bps = basis points; a unit of measure equal to 1/100th of 1%.

3 

Refer to next page for non-GAAP reconciliations.

4 

Consists primarily of depreciation of non-operating assets.

5 

EBITDA based on trailing twelve months.

6 

Trade sales excluding sales attributable to acquisitions and divestitures consummated in the last 12 months.


LEGGETT & PLATT    Page 7 of 7    October 30, 2023

 

RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES 10

 

Non-GAAP Adjustments 7

   2022     2023  

(In millions, except per share data)

   2Q     3Q     4Q     1Q     2Q     3Q  

Gain on sale of real estate

     —        —        —        —        —        (5.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gain from net insurance proceeds from tornado damage

     —        —        —        —        (3.6     —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Adjustments (Pretax) 8

     —        —        —        —        (3.6     (5.4

Income tax impact

     —        —        —        —        0.9       0.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Adjustments (After Tax)

     —        —        —        —        (2.7     (4.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted shares outstanding

     136.7       136.1       136.1       136.3       136.6       136.8  

EPS Impact of Non-GAAP Adjustments

     —        —        —        —        (0.02     (0.03
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBIT, EBITDA, Margin, and EPS 7

   2022     2023  

(In millions, except per share data)

   2Q     3Q     4Q     1Q     2Q     3Q  

Trade sales

     1,334.2       1,294.4       1,195.8       1,213.6       1,221.2       1,175.4  

EBIT (earnings before interest and taxes)

     143.0       113.2       91.2       89.3       95.7       91.4  

Non-GAAP adjustments (pretax)

     —        —        —        —        (3.6     (5.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBIT

     143.0       113.2       91.2       89.3       92.1       86.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBIT margin

     10.7     8.7     7.6     7.4     7.8     7.8

Adjusted EBIT Margin

     10.7     8.7     7.6     7.4     7.5     7.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

     143.0       113.2       91.2       89.3       95.7       91.4  

Depreciation and amortization

     44.5       44.1       45.5       45.4       44.7       45.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     187.5       157.3       136.7       134.7       140.4       136.4  

Non-GAAP adjustments (pretax)

     —        —        —        —        (3.6     (5.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     187.5       157.3       136.7       134.7       136.8       131.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

     14.1     12.2     11.4     11.1     11.5     11.6

Adjusted EBITDA Margin

     14.1     12.2     11.4     11.1     11.2     11.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted EPS

     0.70       0.52       0.39       0.39       0.40       0.39  

EPS impact of non-GAAP adjustments

     —        —        —        —        (0.02     (0.03
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EPS

     0.70       0.52       0.39       0.39       0.38       0.36  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Debt to Adjusted EBITDA 9

   2022     2023  
     2Q     3Q     4Q     1Q     2Q     3Q  

Total debt

     2,090.8       2,141.0       2,083.6       2,117.8       2,024.6       1,971.9  

Less: cash and equivalents

     (269.9     (226.2     (316.5     (344.5     (272.4     (273.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net debt

     1,820.9       1,914.8       1,767.1       1,773.3       1,752.2       1,698.0  

Adjusted EBITDA, trailing 12 months

     760.3       726.8       664.8       616.2       565.5       539.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Debt / 12-month Adjusted EBITDA

     2.39       2.63       2.66       2.88       3.10       3.15  

 

7 

Management and investors use these measures as supplemental information to assess operational performance.

8 

The ($5.4) and ($3.6) 2023 non-GAAP adjustments are included in the Other (income) expense, net line on the income statement.

9 

Management and investors use this ratio as supplemental information to assess ability to pay off debt. These ratios are calculated differently than the Company’s credit facility covenant ratio.

10 

Calculations impacted by rounding.

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Document and Entity Information
Oct. 30, 2023
Cover [Abstract]  
Entity Registrant Name LEGGETT & PLATT INC
Amendment Flag false
Entity Central Index Key 0000058492
Document Type 8-K
Document Period End Date Oct. 30, 2023
Entity Incorporation State Country Code MO
Entity File Number 001-07845
Entity Tax Identification Number 44-0324630
Entity Address, Address Line One No. 1 Leggett Road
Entity Address, City or Town Carthage
Entity Address, State or Province MO
Entity Address, Postal Zip Code 64836
City Area Code 417
Local Phone Number 358-8131
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock, $.01 par value
Trading Symbol LEG
Security Exchange Name NYSE
Entity Emerging Growth Company false
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