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Q1 sales up 5.4% but net down 14.5% at Tempur Sealy
May '15
Net sales at US based bedding provider and NYSE listed Tempur Sealy International rose 5.4 per cent year on year, while its net income dipped 14.5 per cent for the first quarter ended March 31, 2015.

Total net sales increased 5.4 per cent to $739.5 million in the first quarter of 2015 from $701.9 million in the first quarter of 2014.

While, GAAP net income in the quarter under review amounted to $23.4 million as compared to GAAP net income of $27.4 million for the first quarter of 2014.

Its reported adjusted net income at $34.1 million for the first quarter of 2015, was however higher by 4.6 per cent when compared to adjusted net income of $32.6 million for the first quarter of 2014.

“Net sales hike was driven by strong sales growth in the North America business segment,” Tempur Sealy noted in a press release.

On a constant currency basis, total net sales went up by 9.4 per cent from a year ago quarter, with increased net sales in both the North America and international business segments.

GAAP earnings per diluted share (EPS) in the reporting quarter stood at $0.38 as compared to GAAP EPS of $0.44 in the corresponding quarter of the previous year.

“The 2015 results reflect integration costs and a redemption value adjustment to the company's redeemable non-controlling interest,” it said.

GAAP gross margin dipped to 37.7 per cent in the quarter under review as against 38.4 per cent in the first quarter of 2014, while adjusted gross margin in the corresponding periods was 38.5 per cent and 38.7 per cent, respectively.

Tempur attributed the reduction in gross margin to decreased gross margin in the international business segment, offset by a solid improvement in gross margin of the North America business segment.

GAAP operating income was $54.4 million in the first quarter of 2015 as compared to $62.4 million in the prior year first quarter.

“Operating income in the first quarter of 2015 included $11.7 million of integration costs and $2.1 million of additional costs related to the Company's 2015 Annual Meeting,” it added.

The Company ended the first quarter of 2015 with consolidated funded debt less qualified cash of $1.6 billion and ratio of consolidated funded debt less qualified cash to adjusted EBITDA was 3.93 times.

Tempur Sealy CEO Mark Sarvary said, "Our first quarter growth in sales and adjusted EPS, and the improved operating margins in North America, continue our momentum from the fourth quarter of 2014.”

“They underscore the important progress we are making in driving enhanced financial results in 2015 and beyond,” Sarvary too added.

“We delivered growth across Europe, Asia-Pacific and Latin America; however, as expected, foreign exchange headwinds impacted year-over-yearsales and put pressure on margins,” he observed. (AR)

Fibre2fashion News Desk - India

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