| BRIEFLY | |
| Tempur Sealy’s first quarter | |
| Net sales | $739.5 million |
| Net income | $23.4 million |
| Operating income | $54.4 million |
| Earnings per share | $0.38 |
Mattress major Tempur Sealy International, with headquarters in Lexington, Kentucky, reported its net sales increased 5.4% to $739.5 million in the first quarter of 2015 when compared with net sales of $701.9 million during the same period in 2014. The company traced the growth to strong sales in its North America and international business segments, with net sales rising 9.4% in both.
Earnings per diluted share were $0.38—down from $0.44 in 2014. The company attributed the change to integration costs related to the merger between Tempur-Pedic International and Sealy, additional costs related to the company’s 2015 annual meeting and a redemption value adjustment to the company’s redeemable noncontrolling interest. Adjusted EPS (a non-GAAP financial measure) increased 3.8% to $0.55 in the first quarter—up from $0.53 in 2014.
Operating income was $54.4 million, down from $62.4 million in 2014. Adjusted operating income was $68.2 million, or 9.2% of net sales, in the first quarter of 2015 as compared with $69.8 million, or 9.9% of net sales, in 2014.
First-quarter net income was $23.4 million as compared with $27.4 million in 2014. The company reported adjusted net income of $34.1 million for the first quarter, up from $32.6 million in the prior-year period. The company reported a gross margin of 37.7% in the first quarter, down from 38.4% in 2014. Earnings before interest, tax, depreciation and amortization for the first quarter of 2015 was $75.9 million, down from $85.1 million the prior year. Adjusted EBITDA for the first quarter was $90.5 million as compared with $91.4 million in 2014.
“Tempur Sealy’s 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,” said Mark Sarvary, Tempur Sealy chief executive officer.
The company revised its financial guidance for the year, projecting net sales to range from $3.1 billion to $3.175 billion and adjusted EPS to range from $2.80 to $3.15 per diluted share.
