- Consolidated Sales Decreased 3%, Direct Channel Sales Increased 1% - Consolidated Gross Margins Expanded 2.2% to 44.9% - Strong EPS Growth of 15% and Adjusted EPS(1) Growth of 9% LEXINGTON, Ky., Aug. 6, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX) announced financial results for the second quarter ended June 30, 2024 and revised financial guidance for the full year 2024. SECOND QUARTER 2024 FINANCIAL SUMMARY Total net sales decreased 2.8% to $1,233.6 million as compared to $1,269.7 mi ...

Estimate Revisions Trend Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. For the last reported quarter, it was expected that Tempur Sealy would post earnings of $0.48 per share when it actually produced earnings of $0.50, delivering a surprise of +4.17%. The consensus EPS estimate for the quarter has been revised 3.05% lower o ...

Tempur Sealy International, Inc. (NYSE:TPX) Special Call July 8, 2024 8:00 AM ET Company Participants Aubrey Moore - Investor Relations Scott Thompson - Chairman, President & Chief Executive Officer Conference Call Participants Operator Good day, everyone and welcome to today's Tempur Sealy International Business Update Call. At this time, all participants are in a listen-only mode. Please note, this call is being recorded. I will be standing by if you should need any assistance. It is now my pleasure to tu ...

Tempur Sealy International, Inc. (NYSE:TPX) Special Call July 8, 2024 8:00 AM ET Good day, everyone and welcome to today's Tempur Sealy International Business Update Call. At this time, all participants are in a listen-only mode. Please note, this call is being recorded. I will be standing by if you should need any assistance. Aubrey Moore - Investor Relations Scott Thompson - Chairman, President & Chief Executive Officer It is now my pleasure to turn the conference over to Aubrey Moore, Investor Relations. ...

"We continue to believe the combination of Tempur Sealy and Mattress Firm will unlock incremental benefits for all stakeholders, particularly consumers. Mattress Firm's strong retail presence complements Tempur Sealy's manufacturing capabilities, facilitating more targeted innovation, improving the customer experience, and broadening our U.S. omni-channel platform. Additionally, we expect to achieve synergies by leveraging our global scale and vertically integrated infrastructure to drive efficiencies throu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-31922 TEMPUR SEALY INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Tempur Sealy International, Inc. (NYSE:TPX) Q1 2024 Earnings Conference Call May 7, 2024 8:00 AM ET Company Participants Aubrey Moore - Investor Relations Scott Thompson - Chairman, President & Chief Executive Officer Bhaskar Rao - Executive Vice President & Chief Financial Officer Conference Call Participants Susan Maklari - Goldman Sachs Bobby Griffin - Raymond James Rafe Jadrosich - Bank of America Peter Keith - Piper Sandler Seth Basham - Wedbush Michael Lasser - UBS Brad Thomas - KeyBanc Capital Market ...

Financial Performance - First Quarter 2024 net sales were $1.2 billion, consistent with the prior year, with a reported decrease of 1.5% from $1.208 billion in Q1 2023[3] - Net income decreased by 10.6% to $76.3 million, down from $85.3 million in Q1 2023[3] - Adjusted EPS for Q1 2024 was $0.50, a decrease of 5.7% from $0.53 in Q1 2023[3] - North America net sales decreased by 2.0% to $901.1 million, while International net sales remained relatively stable with a decrease of 0.1% to $288.3 million[9] - Net sales for the three months ended March 31, 2024, were $1,189.4 million, a decrease of 1.5% compared to $1,208.1 million in the same period of 2023[24] - Basic earnings per share decreased by 12.0% to $0.44, compared to $0.50 in the same quarter of 2023[24] - Adjusted net income for the quarter was $89.7 million, compared to $92.9 million in the same period last year[39] - Consolidated net sales for Q1 2024 were $1,189.4 million, a decrease from $1,208.1 million in Q1 2023[44] Profitability Metrics - Consolidated gross margin improved by 1.7% to 43.1%, compared to 41.4% in Q1 2023[7] - Gross profit increased by 2.5% to $512.6 million from $499.9 million year-over-year[24] - Operating income decreased by 8.2% to $131.5 million, down from $143.3 million in the prior year[24] - Adjusted gross profit for Q1 2024 was $515.7 million, with a margin of 43.4%, compared to $504.8 million and a margin of 41.8% in Q1 2023[44] - Operating income for Q1 2024 was $131.5 million, representing an 11.1% margin, while Q1 2023 reported $143.3 million with an 11.9% margin[44] - EBITDA for Q1 2024 was $180.3 million, down from $187.6 million in Q1 2023[46] Cash Flow and Assets - Record cash flow from operations reached $130 million in Q1 2024[1] - Cash and cash equivalents increased to $92.5 million from $74.9 million at the end of December 2023[27] - Total assets rose to $4,585.8 million, up from $4,553.9 million at the end of the previous year[27] Debt and Leverage - Total debt at the end of Q1 2024 was $2.6 billion, with a leverage ratio of 2.85 times based on consolidated indebtedness less netted cash to adjusted EBITDA[12] - The ratio of consolidated indebtedness less netted cash to adjusted EBITDA was 2.85 times for the trailing twelve months ended March 31, 2024, below the 5.00 times requirement[49] - Total debt, net as of March 31, 2024, was $2,573.7 million, with consolidated indebtedness less netted cash at $2,501.9 million[51] Acquisition and Expenses - The pending acquisition of Mattress Firm is expected to close in 2024, pending FTC approval, which is anticipated to be completed in Q2 2024[6] - Corporate operating expenses increased to $47.7 million, primarily due to transaction costs related to the Mattress Firm acquisition[12] - The company incurred $14.8 million in transaction costs in Q1 2024 related to the pending acquisition of Mattress Firm[53] - Operational start-up costs in Q1 2024 amounted to $3.1 million, up from $1.7 million in Q1 2023[53] - The company recognized $58.6 million in transaction costs associated with the pending acquisition of Mattress Firm over the trailing twelve months ended March 31, 2024[53] Sales Channels - The wholesale channel generated $885.8 million in sales, down from $912.6 million in the prior year, while the direct channel saw an increase to $303.6 million from $295.5 million[30]

Financial Risks and Liabilities - The company's variable-rate debt as of December 31, 2023, was $901.5 million, and a 10% increase in floating interest rates would reduce income before taxes by $9.0 million annually[264] - The company's estimated gross unrecognized tax benefits as of December 31, 2023, were $4.5 million, which could favorably impact future earnings if recognized[256] - A hypothetical 10.0% adverse change in foreign currency exchange rates could result in a potential loss of $1.7 million on foreign exchange forward contracts[265] - The company's income tax provision decreased by $15.6 million in 2023 due to lower income before taxes and favorable discrete items[193] - The company's leverage could limit its flexibility and ability to respond to changing business and economic conditions[100][101] - The company's pension plans are underfunded, with several plans in the Red Zone (Critical) for 2023, indicating a funded percentage of less than 65.0%[107] - The company faces potential liabilities from multi-employer pension plans, including withdrawal liability if it ceases contributions[107] Customer and Market Concentration - The top five customers accounted for approximately 32% of net sales in 2023, with Mattress Firm contributing over 15%[82] - The pending Mattress Firm acquisition could reduce customer concentration, but regulatory approvals and divestiture obligations remain uncertain[77] Product and Operational Strategy - The company's gross margin is impacted by the mix of premium and value products, with value products having significantly lower margins[177] - The company's omni-channel strategy includes expanding its presence with existing retail partners and entering new key retailers[162] - The company launched new product lines in 2023, including the refreshed Stearns & Foster® product line, a new line of Tempur® mattresses internationally, and a new portfolio of Tempur-Pedic® Breeze mattresses and Tempur-Ergo® Smart Bases[81] - The company expects to complete the multi-year refresh of Tempur-Pedic® products in 2024 with a new portfolio of Tempur-Pedic® Adapt mattresses and accessories in North America[81] Cybersecurity and Risk Management - The company faces risks from cybersecurity incidents, which could disrupt operations and cause financial or reputational harm[84] - The company identified a cybersecurity event on July 23, 2023, which resulted in the temporary interruption of operations[86] - The company implemented additional cybersecurity measures, including stronger privileged access policies and expanded multi-factor authentication[118] - The company engages external advisors, including cybersecurity experts, to assist in risk management[123] International Operations and Geopolitical Risks - Approximately 27.7% of the company's net sales were generated outside of the U.S. in 2023, with foreign currency exchange rate changes positively impacting net income by 1.5% and adjusted EBITDA by 0.8%[97] - The company's international operations are subject to risks such as foreign exchange exposure, tariffs, political risks, and geopolitical conflicts[103][104] - Geopolitical developments, such as the Russia-Ukraine conflict and Middle East tensions, have impacted raw material and transportation costs[76] Regulatory and Environmental Compliance - The company is subject to various regulatory requirements, including trade, environmental, health, and safety regulations, which could result in costly expenditures and liability exposure[105] - Climate change-related events could result in physical damage to facilities, supply disruptions, increased insurance costs, and reputational harm[110] - The company is focusing on strategies to reduce greenhouse gas emissions and packaging waste to mitigate long-term climate-related risks[111] Employee and Labor Relations - The company had approximately 12,000 full-time employees as of December 31, 2023, with 15% represented by labor unions[89] Shareholder Returns and Capital Allocation - The company increased its quarterly dividend to $0.13 per share, effective for the first quarter of 2024[112] - From 2016 through December 31, 2023, the company repurchased 55.3 million shares for approximately $2,388.9 million under its share repurchase program[113] - As of December 31, 2023, the company had approximately $774.5 million remaining under its share repurchase authorization[113] - The company suspended its share repurchase program following the announcement of its pending acquisition of Mattress Firm[113] Legal and Product Liability Risks - The company faces risks related to product liability claims and premises liability claims, which could reduce liquidity and profitability[90][91] - The company relies on patents and trade secrets to protect its intellectual property, but the principal product formula and manufacturing processes for Tempur® material are not patented[92]

Tempur Sealy International, Inc. (NYSE:TPX) Q4 2023 Earnings Conference Call February 8, 2024 8:00 AM ET Company Participants Aubrey Moore - Investor Relations Scott Thompson - Chairman, President & Chief Executive Officer Bhaskar Rao - Executive Vice President & Chief Financial Officer Conference Call Participants Susan Maklari - Goldman Sachs Group Peter Keith - Piper Sandler Bobby Griffin - Raymond James Jason Haas - Bank of America Seth Basham - Wedbush Brad Thomas - KeyBanc Capital Markets Michael L ...