From Home Furnishing Business
Sealy Acquisition Boosts Tempur Sealy Sales
Propelled by its March acquisition of Sealy, bedding major Tempur Sealy reported a 98.8 percent increase in fourth-quarter sales, which totaled $678.1 million.
The net sales increase was due to the inclusion of $333.5 million of Sealy net sales for the fourth quarter of 2013.
GAAP net income in the fourth quarter of 2013 was $22.9 million as compared with GAAP net income of $23.5 million for the fourth quarter of 2012. The Company reported adjusted net income of $41.1 million for the fourth quarter of 2013 as compared with adjusted net income of $36.4 million for the fourth quarter of 2012.
"Overall our fourth quarter was in line with our expectations," said Mark Sarvary, CEO of Tempur Sealy International, Lexington, Ky. "Sealy's fourth-quarter sales were above our expectations, and Tempur International returned to growth with sales increases in Europe, Asia and Latin America. Tempur North America showed continued stability with sales down 1 percent as compared to last year.
"Our company accomplished a great deal in 2013--we successfully completed the Sealy acquisition in March and since then have integrated all of the key functions, which has led to greater cost synergies than initially projected. We enter 2014 unified and coordinated and expect to further execute on each of our four key strategic growth initiatives. Our recent new product introductions in Tempur North America, Sealy and Tempur International are just a few of the initiatives we have in place to drive growth in 2014."
For the full year of 2013, net sales increased 75.7 percent to $2.5 billion. The net sales increase was due to the inclusion of $1.1 billion of Sealy net sales for the period of March 18 to Dec. 31.
GAAP net income for the full year 2013 was $74 million as compared to GAAP net income of $106.8 million for the full year 2012. The company reported adjusted net income of $146.4 million for the full year 2013 as compared to adjusted net income of $164.1 million for the full year 2012.
Tempur-Sealy currently expects the following for 2014:
* Net sales to range from $2.8 billion to $2.9 billion.
* Adjusted EBITDA to range from $415 million to $435 million.
* Adjusted EPS to range from $2.60 to $2.85 per diluted share, including depreciation and amortization of approximately $0.19 per share associated with the Sealy purchase price allocation.
Click here for the entire Tempur Sealy fourth-quarter and 2013 performance release.