| BRIEFLY | |
| Sealy’s year | |
| Net sales | $1.35 billion |
| Gross profit | $539.5 million |
| Adjusted EBITDA | $150.1 million |
Mattress major Sealy, with headquarters in Trinity, N.C., reported net sales for fiscal year 2012 rose 9.6% to $1.35 billion from $1.23 billion in 2011. Sealy’s fiscal year ended Dec. 2.
Gross profit in 2012 was $539.5 million, or 40% of net sales, versus $478.7 million, or 38.9% of net sales, in 2011.
For fiscal 2012, net income attributable to common shareholders from continuing operations was $2 million and net loss from discontinued operations was $2 million, resulting in overall net income for the fiscal year of zero. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 18.9% to $150.1 million, or 11.1% of net sales, from $126.3 million, or 10.3% of net sales, in 2011.
“We were pleased with our performance in 2012 as we continued to execute on our strategic initiatives,” said Larry Rogers, Sealy president and chief executive officer. “Strong product offerings in both the specialty and innerspring lines, compelling advertising and continued financial discipline led to these financial results and we are working to ensure these trends continue. As we move into 2013, we expect to drive growth across our entire portfolio in both our domestic and international markets.”
In the fourth quarter of 2012, Sealy’s total net sales increased by $88.9 million, or 33%, to $358.1 million, compared with prior-year quarter. Gross profit increased by $43.8 million to $141.9 million and gross profit margin increased to 39.6% of sales, compared with 36.4% in the prior-year quarter.
In fourth-quarter 2012, income from operations increased by $12.3 million to $16.1 million.
Net loss from continuing operations attributable to common shareholders was $2.7 million or $0.03 per diluted share, compared with net loss from continuing operations of $14 million or $0.14 per diluted share in the prior-year quarter.
In the fourth quarter, Sealy’s total U.S. net sales increased 32.9% to $269.7 million from prior-year period. Sealy attributed the gains, in part, to a 13.3% increase in wholesale unit volume, coupled with a 15.8% increase in wholesale average unit selling price.
“The significant improvement in both of these metrics was primarily driven by the success of the Optimum by Sealy Posturepedic and Next Generation Stearns & Foster product lines, both of which sell at higher price points in the market,” the company said in a news release.
International net sales increased $22.1 million, or 33.3%, from the fourth quarter of fiscal 2011 to $88.4 million. Sealy said it enjoyed particularly strong sales in Canada, Mexico and South America. Excluding the effects of currency fluctuation, international net sales increased 32.1% from the fourth quarter of fiscal 2011.
Gross profit for the fourth quarter increased by $43.8 million to $141.9 million. Gross margin increased 3.2 percentage points to 39.6%.
Cash flow from operations was $50.7 million for the fourth quarter of fiscal 2012.
This story was updated Feb. 14, 2013 at 4 p.m. EST.
