MOHAWK INDUSTRIES ANNOUNCES RECORD THIRD QUARTER EARNINGS

QUARTERLY ADJUSTED EPS 22% INCREASE OVER PRIOR YEAR

Nov 05, 2015, 16:01 ET from Mohawk Industries, Inc.

CALHOUN, Ga., Nov. 5, 2015 /PRNewswire/ -- Mohawk Industries, Inc. (NYSE: MHK) today announced 2015 third quarter net earnings of $215 million and diluted earnings per share (EPS) of $2.89. Excluding restructuring and acquisition charges, net earnings were $222 million and EPS was $2.98, a 22% increase over last year's third quarter adjusted EPS and the highest adjusted quarterly EPS in the company's history. Net sales for the third quarter of 2015 were $2.2 billion, up 8% versus the prior year's third quarter or a 15% increase on a constant currency exchange rate basis. For the third quarter of 2014, net sales were $2.0 billion, net earnings were $151 million and EPS was $2.06; excluding restructuring and acquisition charges, net earnings were $179 million and EPS was $2.44.

For the nine months ending October 3, 2015, net sales were $6.1 billion, an increase of approximately 4% versus prior year or an increase of approximately 11% on a constant currency exchange rate basis. Net earnings and EPS for the nine-month period were $424 million and $5.73, respectively. Net earnings excluding restructuring and acquisition charges were $546 million and adjusted EPS was $7.38, an increase of 26% over the nine-month period adjusted EPS result in 2014. For the nine-months ending September 27, 2014, net sales were $5.9 billion, net earnings were $385 million and EPS was $5.25; excluding restructuring and acquisition charges, net earnings and EPS were $431 million and $5.88.

Commenting on Mohawk Industries' third quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, "In addition to our record earnings per share, our adjusted operating income reached a record level at $309 million, up 30% over the same quarter last year. All segments contributed to our sales and operating income improvements. Our new segment structure that we announced last quarter has benefited our performance, enabling us to optimize our regional businesses by enhancing our product offerings, manufacturing assets and distribution strategies. During the period, we made significant progress in aligning our IVC acquisition with our European and U.S. flooring businesses and our KAI acquisition with our European ceramic operations. We are introducing products to take advantage of the unique capabilities and customer relationships of each organization. As we leverage the strength of these businesses, we anticipate greater market penetration and continued earnings growth in the future."

"For the quarter, our Global Ceramic segment sales were up 2% as reported. On a constant exchange rate basis, sales grew 11% and adjusted operating income rose 15% versus prior year with adjusted operating margin increasing to 15% as a result of improved productivity, volume, price and mix and the KAI acquisition partially offset by currency headwinds. Our U.S. ceramic sales continued to improve, as we increased our investments in new products, additional sales representatives and new service centers and galleries. The residential new construction sector remains the strongest part of our U.S. ceramic business. To satisfy increased demand in the U.S. market, we have begun importing ceramic tile from both our Russian and Bulgarian businesses, leveraging our global footprint to optimize our profitability. Growth in the Mexican ceramic market remains strong as we improved our position, and we are adding new sales representatives to expand our distribution base in all channels. In Europe, our ceramic sales are outpacing the market. We are benefiting from the upgraded assets at our manufacturing facilities, which are increasing our competitiveness and yielding more differentiated products, such as 3-dimensional wall tiles, hexagons and brick visuals. Our Bulgarian ceramic business is increasing its product mix, improving its manufacturing and expanding sales outside the local market. Though Russia is in a recession, we are increasing our share of the ceramic market. Our sales in Russia grew on a local basis, though our margin contracted as inflation outpaced our price increases.

"During the quarter, our Flooring North America segment's sales were up 8% over last year with adjusted operating income increasing 41%. The adjusted operating margin increased to almost 14% due to improved volume, productivity, input costs and the IVC acquisition partially offset by price and mix. The new structure of our North American carpet and hard surface businesses is improving our performance as we leverage the strength of our brands, marketing strategies and customer relationships across all categories. During the period, we increased our investments in sales personnel, merchandising and promotions in both carpet and hard surfaces categories to enhance our position in the marketplace. In our carpet business, we are beginning to see improved margin from our recent product introductions and the expansion of our Karastan customer base. Our commercial carpet margins continue to expand with the introduction of more stylized products, improved manufacturing efficiencies and enhanced service. We are improving our efficiency and reducing costs by closing two commercial carpet plants and consolidating the operations. Our rug sales and margins were up during the period as our new product introductions gained traction in the market. Sales of our hard surface products are growing faster than carpet across all channels, with builder and commercial sectors expanding the fastest. Our sheet vinyl and LVT sales continue to grow, and we are introducing new Mohawk branded products from IVC to expand our vinyl offering in all channels.

"For the quarter, our Flooring Rest of the World segment's sales rose 24% as reported or 41% on a constant exchange rate with adjusted operating income improving 48% over the prior year. The adjusted operating margin increased to almost 16% due to improved volume, input costs and the IVC acquisition partially offset by currency headwinds. Our laminate sales increased during the period, and our new product collection is one of our most successful ever due to its differentiated features and performance benefits such as our water resistant technology that is unique to the marketplace. Our wood sales improved along with our mix as we enhanced our Quick-Step and Pergo products with matt finishes, rustic visuals and brushed planks. Our vinyl business also improved with significant growth in LVT. We are introducing new LVT sizes with embossing, enhanced scratch resistance and superior click installation systems to add more value to our offering and participate in the commercial sector. As our Russian sheet vinyl business declined, we increased sales in other geographies to fully utilize our capacity. Our non-flooring product categories are up slightly with improving margins due to some relief in material costs. One of our chip board lines experienced an unplanned stop and will be down for four weeks, impacting operating income by approximately $3-4 million in our fourth quarter.

"Mohawk's performance benefited from strategic acquisitions, new investments in sales and operations and improved manufacturing and logistics. The U.S. residential and commercial flooring markets have improved throughout 2015, with hard surface sales growing faster. Looking to the fourth quarter, we anticipate that the U.S. economy will continue its gradual growth. We expect year-over-year margin growth to continue in all segments as a result of our strategies and acquisitions. We are selectively increasing our SG&A relative to sales to optimize future market share. Our recent acquisitions are being integrated into our businesses and are positively impacting our earnings. The costs associated with new plant start-ups, interruption of our board production and four fewer days will be absorbed in the period. Taking all these factors into account, our guidance for the fourth quarter is $2.66 - $2.75 per share, which would be a 17 -21% increase over 2014, excluding any restructuring charges. Our fourth quarter earnings guidance would have been approximately $0.15 per share higher on a constant exchange rate relative to last year."

ABOUT MOHAWK INDUSTRIES

Mohawk Industries is the leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world. Mohawk's vertically integrated manufacturing and distribution processes provide competitive advantages in the production of carpet, rugs, ceramic tile, laminate, wood, stone and vinyl flooring. Our industry-leading innovation has yielded products and technologies that differentiate our brands in the marketplace and satisfy all remodeling and new construction requirements. Our brands are among the most recognized in the industry and include American Olean, Bigelow, Daltile, Durkan, IVC, Karastan, Lees, Marazzi, Mohawk, Pergo, Unilin and Quick-Step. During the past decade, Mohawk has transformed its business from an American carpet manufacturer into the world's largest flooring company with operations in Australia, Brazil, Canada, Europe, India, Malaysia, Mexico, New Zealand, Russia and the United States.

Certain of the statements in the immediately preceding paragraphs, particularly anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words "could," "should," "believes," "anticipates," "expects," and "estimates," or similar expressions constitute "forward-looking statements." For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. The following important factors could cause future results to differ: changes in economic or industry conditions; competition; inflation and deflation in raw material prices and other input costs; inflation and deflation in consumer markets; energy costs and supply; timing and level of capital expenditures; timing and implementation of price increases for the Company's products; impairment charges; integration of acquisitions; international operations; introduction of new products; rationalization of operations; tax, product and other claims; litigation; and other risks identified in Mohawk's SEC reports and public announcements.

Conference call Friday, November 6, 2015 at 11:00 AM Eastern Time

The telephone number is 1-800-603-9255 for US/Canada and 1-706-634-2294 for International/Local. Conference ID # 53645820.  A replay will be available until Friday, December 4, 2015 by dialing 855-859-2056 for US/local calls and 404-537-3406 for International/Local calls and entering Conference ID # 53645820.

 

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES

(Unaudited)

Consolidated Statement of Operations

 Three Months Ended 

 Nine Months Ended 

(Amounts in thousands, except per share data)

October 3, 2015

September 27, 2014

October 3, 2015

September 27, 2014

Net sales

$                    2,150,656

1,990,658

6,073,566

5,852,000

Cost of sales

1,489,252

1,434,236

4,285,090

4,239,411

    Gross profit

661,404

556,422

1,788,476

1,612,589

Selling, general and administrative expenses

372,670

342,729

1,200,152

1,045,913

Operating income

288,734

213,693

588,324

566,676

Interest expense

19,319

34,786

52,606

77,584

Other expense (income), net

4,249

(2,374)

6,094

961

    Earnings before income taxes

265,166

181,281

529,624

488,131

Income tax expense

49,463

30,021

104,643

102,957

        Net earnings including noncontrolling interest

215,703

151,260

424,981

385,174

Net earnings (loss)  attributable to noncontrolling interest

798

(6)

1,238

77

Net earnings attributable to Mohawk Industries, Inc.

$                       214,905

151,266

423,743

385,097

Basic earnings per share attributable to Mohawk Industries, Inc.

Basic earnings per share attributable to Mohawk Industries, Inc.

$                             2.91

2.08

5.77

5.29

Weighted-average common shares outstanding - basic

73,915

72,864

73,384

72,814

Diluted earnings per share attributable to Mohawk Industries, Inc.

Diluted earnings per share attributable to Mohawk Industries, Inc.

$                             2.89

2.06

5.73

5.25

Weighted-average common shares outstanding - diluted

74,438

73,376

73,907

73,332

Other Financial Information

(Amounts in thousands)

Depreciation and amortization

$                           94,955

85,167

268,622

249,905

Capital expenditures

$                        123,648

141,883

352,070

391,580

Consolidated Balance Sheet Data

(Amounts in thousands)

October 3, 2015

September 27, 2014

ASSETS

Current assets:

    Cash and cash equivalents

$                        110,716

105,569

    Receivables, net

1,340,650

1,209,557

    Inventories

1,621,154

1,640,487

    Prepaid expenses and other current assets

273,775

275,981

    Deferred income taxes 

152,899

137,220

        Total current assets

3,499,194

3,368,814

Property, plant and equipment, net

3,046,491

2,772,722

Goodwill

2,280,722

1,668,520

Intangible assets, net

918,655

746,304

Deferred income taxes and other non-current assets

319,420

145,100

    Total assets

$                 10,064,482

8,701,460

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt and commercial paper

$                    1,927,815

583,495

Accounts payable and accrued expenses

1,371,969

1,247,862

        Total current liabilities

3,299,784

1,831,357

Long-term debt, less current portion

1,263,176

1,806,821

Deferred income taxes and other long-term liabilities

723,489

486,764

        Total liabilities

5,286,449

4,124,942

Redeemable noncontrolling interest

22,150

-

Total stockholders' equity

4,755,883

4,576,518

    Total liabilities and stockholders' equity

$                 10,064,482

8,701,460

Segment Information

 Three Months Ended 

 As of or for the Nine Months Ended 

(Amounts in thousands)

October 3, 2015

September 27, 2014

October 3, 2015

September 27, 2014

Net sales:

    Global Ceramic

$                        791,538

779,842

2,301,168

2,271,660

    Flooring NA

955,099

886,317

2,722,347

2,562,560

    Flooring ROW

404,026

326,146

1,050,390

1,021,951

    Intersegment sales

(7)

(1,647)

(339)

(4,171)

        Consolidated net sales

$                    2,150,656

1,990,658

6,073,566

5,852,000

Operating income (loss):

    Global Ceramic

$                        120,055

101,254

326,571

268,320

    Flooring NA

125,910

83,623

145,861

207,578

    Flooring ROW

55,471

35,046

153,164

113,909

    Corporate and eliminations

(12,702)

(6,230)

(37,272)

(23,131)

        Consolidated operating income

$                        288,734

213,693

588,324

566,676

Assets:

    Global Ceramic

$                    3,938,242

3,788,164

    Flooring NA

3,195,904

2,641,171

    Flooring ROW

2,699,255

2,033,718

    Corporate and eliminations

231,081

238,407

        Consolidated assets

$                 10,064,482

8,701,460

 

 

Reconciliation of Net Earnings Attributable to Mohawk Industries, Inc. to Adjusted Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted Diluted Earnings Per Share Attributable to Mohawk Industries, Inc.

(Amounts in thousands, except per share data)

 Three Months Ended 

 Nine Months Ended 

October 3, 2015

September 27, 2014

October 3, 2015

September 27, 2014

Net earnings attributable to Mohawk Industries, Inc.

$                        214,905

151,266

423,743

385,097

Adjusting items:

Restructuring, acquisition and integration-related and other costs 

12,770

14,013

43,784

36,907

Acquisitions purchase accounting (inventory step-up)

7,160

-

13,316

-

Legal settlement and reserves

-

10,000

127,000

10,000

Bond redemption

-

15,450

-

15,450

Deferred loan costs

-

1,080

651

1,080

Income taxes

(12,940)

(12,792)

(62,984)

(17,412)

Adjusted net earnings attributable to Mohawk Industries, Inc.

$                        221,895

179,017

545,510

431,122

Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. 

$                               2.98

2.44

7.38

5.88

Weighted-average common shares outstanding - diluted

74,438

73,376

73,907

73,332

Reconciliation of Total Debt to Net Debt

(Amounts in thousands)

October 3, 2015

Current portion of long-term debt and commercial paper

$                  1,927,815

Long-term debt, less current portion

1,263,176

Less: Cash and cash equivalents

110,716

Net Debt

$                  3,080,275

Reconciliation of Operating Income to Adjusted EBITDA

(Amounts in thousands)

 Trailing Twelve 

 Three Months Ended 

 Months Ended 

December 31, 2014

April 4, 2015

July 4, 2015

October 3, 2015

October 3, 2015

Operating income

$                       206,120

43,774

255,816

288,734

794,444

Other (expense) income

(9,737)

1,083

(2,928)

(4,249)

(15,831)

Net (earnings) loss attributable to non-controlling interest

(212)

(158)

(282)

(798)

(1,450)

Depreciation and amortization

95,665

85,656

88,011

94,955

364,287

EBITDA

291,836

130,355

340,617

378,642

1,141,450

Restructuring, acquisition and integration-related and other costs 

21,859

8,169

17,275

11,690

58,993

Acquisitions purchase accounting (inventory step-up)

-

-

6,156

7,160

13,316

Legal settlement and reserves

-

125,000

-

-

125,000

Adjusted EBITDA

$                       313,695

263,524

364,048

397,492

1,338,759

Net Debt to  Adjusted EBITDA

2.3

Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate

(Amounts in thousands)

 Three Months Ended 

 Nine Months Ended 

October 3, 2015

September 27, 2014

October 3, 2015

September 27, 2014

Net sales

$                  2,150,656

1,990,658

6,073,566

5,852,000

Adjustment to net sales on a constant exchange rate

131,068

-

408,745

-

Net sales on a constant exchange rate 

$                  2,281,724

1,990,658

6,482,311

5,852,000

Reconciliation of 2015 Net Sales to Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume

(Amounts in thousands)

 Three Months Ended 

October 3, 2015

September 27, 2014

Net sales

$                  2,150,656

1,990,658

Adjustment to net sales on a constant exchange rate

131,068

-

Less: 2015 Q3 impact of acquisition volume

(178,560)

-

2015 pro forma net sales on a constant exchange rate excluding acquisition volume

$                  2,103,164

1,990,658

Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate 

(Amounts in thousands)

 Three Months Ended 

Global Ceramic

October 3, 2015

September 27, 2014

Net sales

$                       791,538

779,842

Adjustment to segment net sales on a constant exchange rate

75,785

-

Segment net sales on a constant exchange rate 

$                       867,323

779,842

Reconciliation of 2015 Segment Net Sales to Segment Pro Forma Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume

(Amounts in thousands)

 Three Months Ended 

Global Ceramic

October 3, 2015

September 27, 2014

Net sales

$                       791,538

779,842

Adjustment to segment net sales on a constant exchange rate

75,785

-

Less: 2015 Q3 impact of acquisition volume

(26,827)

-

2015 segment pro forma net sales on a constant exchange rate excluding acquisition volume

$                       840,496

779,842

Reconciliation of 2015 Segment Net Sales to Segment Pro Forma  Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume

(Amounts in thousands)

 Three Months Ended 

Flooring NA

October 3, 2015

September 27, 2014

Net sales

$                       955,099

886,317

Adjustment to segment net sales on a constant exchange rate

-

-

Less: 2015 Q3 impact of acquisition volume

(37,779)

-

2015 segment pro forma net sales on a constant exchange rate excluding acquisition volume

$                       917,320

886,317

Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate 

(Amounts in thousands)

 Three Months Ended 

Flooring ROW

October 3, 2015

September 27, 2014

Net sales

$                       404,026

326,146

Adjustment to segment net sales on a constant exchange rate

55,283

-

Segment net sales on a constant exchange rate 

$                       459,309

326,146

Reconciliation of 2015 Segment Net Sales to Pro Forma Segment Net Sales on a Constant Exchange Rate Excluding 2015 Q3 Acquisition Volume

(Amounts in thousands)

 Three Months Ended 

Flooring ROW

October 3, 2015

September 27, 2014

Net sales

$                       404,026

326,146

Adjustment to segment net sales on a constant exchange rate

55,283

-

Less: 2015 Q3 impact of acquisition volume

(113,955)

-

2015 Segment Pro forma net sales on a constant exchange rate excluding acquisition volume

$                       345,354

326,146

Reconciliation of Gross Profit to Adjusted Gross Profit 

(Amounts in thousands)

 Three Months Ended 

October 3, 2015

September 27, 2014

Gross Profit

$                       661,404

556,422

Adjustments to gross profit:

Restructuring, acquisition and integration-related and other costs 

7,291

7,261

Acquisitions purchase accounting (inventory step-up)

7,160

-

  Adjusted gross profit

$                       675,855

563,683

Adjusted gross profit as a percent of net sales

31.4%

28.3%

Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses

(Amounts in thousands)

 Three Months Ended 

October 3, 2015

September 27, 2014

Selling, general and administrative expenses

$                       372,670

342,729

Adjustment to selling, general and administrative expenses:

Restructuring, acquisition and integration-related and other costs 

(5,479)

(6,752)

Legal settlement and reserves

-

(10,000)

  Adjusted selling, general and administrative expenses

$                       367,191

325,977

Adjusted selling, general and administrative expenses as a percent of net sales

17.1%

16.4%

Reconciliation of Operating Income to Adjusted Operating Income 

(Amounts in thousands)

 Three Months Ended 

October 3, 2015

September 27, 2014

Operating income

$                       288,734

213,693

Adjustments to operating income:

Restructuring, acquisition and integration-related and other costs 

12,770

14,013

Legal settlement and reserves

-

10,000

Acquisitions purchase accounting (inventory step-up)

7,160

-

  Adjusted operating income

$                       308,664

237,706

   Adjusted operating income as a percent of net sales

14.4%

11.9%

Reconciliation of Adjusted Operating Income on a Constant Exchange Rate

(Amounts in thousands)

 Three Months Ended 

October 3, 2015

September 27, 2014

Operating income

$                       288,734

213,693

Adjustments to operating income:

Restructuring, acquisition and integration-related and other costs 

12,770

14,013

Legal settlement and reserves

-

10,000

Acquisitions purchase accounting (inventory step-up)

7,160

-

Adjustments to operating income on a constant exchange rate

21,392

-

Adjusted operating income on constant exchange rate

$                       330,056

237,706

Reconciliation of Segment Operating Income to Adjusted Segment Operating Income 

(Amounts in thousands)

 Three Months Ended 

Global Ceramic

October 3, 2015

September 27, 2014

Operating income

$                       120,055

101,254

Adjustments to segment operating income:

Restructuring, acquisition and integration-related and other costs 

118

4,248

Acquisitions purchase accounting (inventory step-up)

949

-

  Adjusted segment operating income

$                       121,122

105,502

Adjusted operating income as a percent of net sales

15.3%

13.5%

Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate

(Amounts in thousands)

 Three Months Ended 

Global Ceramic

October 3, 2015

September 27, 2014

Operating income

$                       120,055

101,254

Adjustments to segment operating income:

Restructuring, acquisition and integration-related and other costs 

118

4,248

Acquisitions purchase accounting (inventory step-up)

949

-

Adjustments to operating income on a constant exchange rate

12,701

-

  Adjusted  segment operating income on constant exchange rate

$                       133,823

105,502

Reconciliation of Segment Operating Income to Adjusted Segment Operating Income 

(Amounts in thousands)

 Three Months Ended 

Flooring NA

October 3, 2015

September 27, 2014

Operating income

$                       125,910

83,623

Adjustments to segment operating income:

Restructuring, acquisition and integration-related and other costs 

5,148

10,578

Acquisitions purchase accounting (inventory step-up)

1,527

-

  Adjusted segment operating income

$                       132,585

94,201

Adjusted operating income as a percent of net sales

13.9%

10.6%

Reconciliation of Segment Operating Income to Adjusted Segment Operating Income 

(Amounts in thousands)

 Three Months Ended 

Flooring ROW

October 3, 2015

September 27, 2014

Operating income

$                          55,471

35,046

Adjustment to segment operating income:

Restructuring, acquisition and integration-related and other costs 

4,030

8,437

Acquisitions purchase accounting (inventory step-up)

4,683

-

  Adjusted segment operating income

$                          64,184

43,483

Adjusted operating income as a percent of net sales

15.9%

13.3%

Reconciliation of Segment Operating Income to Adjusted Segment Operating Income on a Constant Exchange Rate

(Amounts in thousands)

 Three Months Ended 

Flooring ROW

October 3, 2015

September 27, 2014

Operating income

$                          55,471

35,046

Adjustment to segment operating income:

Restructuring, acquisition and integration-related and other costs 

4,030

8,437

Acquisitions purchase accounting (inventory step-up)

4,683

-

Adjustments to operating income on a constant exchange rate

8,691

-

Adjusted segment operating income on constant exchange rate

$                          72,875

43,483

Reconciliation of Earnings from Continuing Operations Including Noncontrolling Interest Before Income Taxes to Adjusted Earnings from Continuing Operations Including Noncontrolling Interest Before Income Taxes

(Amounts in thousands)

 Three Months Ended 

October 3, 2015

September 27, 2014

Earnings before income taxes

$                       265,166

181,281

Noncontrolling interest

(798)

6

Adjustments to earnings from continuing operations before income taxes:

Restructuring, acquisition and integration-related and other costs 

12,770

14,013

Acquisitions purchase accounting (inventory step-up)

7,160

-

Legal settlement and reserves

-

10,000

Bond redemption

-

15,450

Deferred loan costs

-

1,080

Adjusted earnings before income taxes

$                       284,298

221,830

Reconciliation of Income Tax Expense to Adjusted Income Tax Expense 

(Amounts in thousands)

 Three Months Ended 

October 3, 2015

September 27, 2014

Income tax expense 

$                          49,463

30,021

Income tax effect of adjusting items

12,940

12,792

Adjusted income tax expense

$                          62,403

42,813

Adjusted income tax rate

21.9%

19.3%

The Company believes it is useful for itself and investors to review, as applicable, both GAAP and the above non-GAAP measures in order to assess the performance of the Company's business for planning and forecasting in subsequent periods.  In particular, the Company believes excluding the impact of restructuring, acquisition, integration-related and other costs, legal settlement and reserves, and acquisitions purchase accounting (inventory step-up) is useful because it allows investors to evaluate our performance for different periods on a more comparable basis.

 

 

SOURCE Mohawk Industries, Inc.



RELATED LINKS

http://www.mohawkind.com