Somnigroup International Inc. · NYSE:SGI

Somnigroup International — Tempur Sealy International — Q3 2015 Earnings Presentation

19 slides from Somnigroup International's earnings presentation, Oct 29, 2015

  1. Slide 1: Tempur Sealy International, Inc. Earnings Call Presentation 3Q 2015

    1 Tempur Sealy International, Inc. October 29, 2015 Earnings Call Presentation 3Q 2015

  2. Slide 2: Forward-Looking Statements

    2 Forward-Looking Statements Note Regarding Trademarks, Trade Names and Service Marks: TEMPUR, Tempur-Pedic, TEMPUR-Cloud, TEMPUR-Choice, TEMPUR-Weightless, TEMPUR-Contour, TEMPUR-Rhapsody, TEMPUR-Flex, GrandBed, TEMPUR-Simplicity, TEMPUR-Ergo, TEMPUR-UP, TEMPUR-Neck, TEMPUR-Symphony, TEMPUR-Comfort

  3. Slide 3: 3Q 2015 – Overall Key Takeaways

    3Q 2015 – Overall Key Takeaways Note 1: For information on the methodology used to present constant currency basis please refer to “Constant Currency Information” at the end of this presentation. Note 2: Adjusted EBITDA is a non-GAAP financial measure. Please refer to the "Use of Non-GAAP Financial

  4. Slide 4: Revised FY 2015 Guidance

    4 Revised FY 2015 Guidance1 FY 2015 Guidance New Guidance Range Y/Y Chg. Old Guidance Range Net Sales $3.150 to $3.175 Billion +5% to +6% $3.125 to $3.175 Billion Adjusted EPS $3.10 to $3.20 +17% to +21% $3.00 to $3.20 Note 1: Management estimates. Please refer to “Forward Looking Statements”. Note

  5. Slide 5: 3Q 2015 – Consolidated Performance Summary

    5 3Q 2015 – Consolidated Performance Summary $827.4 38.8% 11.8% $119.5 $0.88 4.1x $880.0 41.3% 14.1% $142.3 $1.11 3.5x Net Sales Adjusted Gross Margin Adjusted Operating Margin Adjusted EBITDA Adjusted EPS Leverage 3Q-14 3Q-15  Net sales increased 6.4% (+10.6% constant currency1)  Adjusted operati

  6. Slide 6: 3Q 2015 – North America Performance Summary

    6 3Q 2015 – North America Performance Summary $685.3 35.6% 36.0% 12.6% 13.8% $741.2 38.8% 39.1% 16.0% 16.4% Net Sales GAAP Gross Margin Adjusted Gross Margin GAAP Operating Margin Adjusted Operating Margin North America 3Q-14 3Q-15  North America net sales increased 8.2% (+9.8% constant currency1)

  7. Slide 7: 3Q 2015 – International Performance Summary

    7 3Q 2015 – International Performance Summary $142.1 52.5% 52.6% 18.4% 18.9% $138.8 51.8% 52.7% 16.6% 18.5% Net Sales GAAP Gross Margin Adjusted Gross Margin GAAP Operating Margin Adjusted Operating Margin International 3Q-14 3Q-15 -2.3% Actual (+14.1% Constant Currency)  International net sales de

  8. Slide 8: 3Q 2015 – GAAP Net Income to Adjusted Net Income Bridge

    8 3Q 2015 – GAAP Net Income to Adjusted Net Income Bridge The third quarter 2015 had a number of adjustments to the reported GAAP numbers. Below is a bridge from GAAP net income to adjusted net income. These after tax adjustments are also detailed on slide 11. • The German legal settlement accounted

  9. Slide 9: Appendix

    Appendix 9

  10. Slide 10: Use of Non-GAAP Financial Measures

    Use of Non-GAAP Financial Measures In this investor presentation and certain of its press releases and SEC filings, the Company provides information regarding adjusted EPS, adjusted gross profit, adjusted gross margin, adjusted operating income (expense), adjusted operating margin, EBITDA, EBITDA in

  11. Slide 11: 3Q 2015 Adjusted EPS Reconciliation

    3Q 2015 Adjusted EPS Reconciliation 11 (1) German legal settlement represents the previously announced €15.5 million settlement the Company will pay to the FCO to fully resolve the FCO's antitrust investigation and related legal fees. (2) Interest expense and financing costs in the third quarter of

  12. Slide 12: 3Q Adjusted EBITDA Reconciliation

    3Q Adjusted EBITDA Reconciliation 12 (1) Other income includes income from a partial settlement of a legal dispute. (2) Integration costs represents costs, including legal fees, professional fees, compensation costs and other charges related to the transition of manufacturing facilities, and other c

  13. Slide 13: Adjusted EBITDA Reconciliation Footnotes

    13 (1) Integration costs represents costs, including legal fees, professional fees, compensation costs and other charges related to the transition of manufacturing facilities, and other costs related to the continued alignment of the North America business segment related to the Sealy Acquisition. (

  14. Slide 14: Twelve Months Ended September 30, 2014 Adjusted EBITDA Reconciliation

    14 (1) Loss on disposal of business represents costs associated with the disposition of the three U.S. innerspring component production facilities and related equipment. (2) Transaction and integration represents costs, including legal fees, professional fees and other charges to align the businesse

  15. Slide 15: Debt Reconciliation and Leverage Ratio Calculation

    Debt Reconciliation and Leverage Ratio Calculation Reconciliation of Total Debt to Consolidated Funded Debt Less Qualified Cash 15 (1) Qualified cash as defined in the credit agreement equals 100.0% of unrestricted domestic cash plus 60.0% of unrestricted foreign cash. For purposes of calculating le

  16. Slide 16: Leverage Ratio Calculation

    Leverage Ratio Calculation 16 Calculation of consolidated funded debt less qualified cash to adjusted EBITDA As of September 30, 2014 $ 1,598. 3 2.8 4.1 times (1) ($ in millions) As of September 30, 2015 Consolidated funded debt less qualified cash $ 1,447.0 Adjusted EBITDA 439.1 3.30 times

  17. Slide 17: 3Q 2015 Adjusted Gross And Operating Margin Reconciliation

    3Q 2015 Adjusted Gross And Operating Margin Reconciliation 17 (1) Adjustments for the North America business segment represent integration costs, which include compensation costs, professional fees and other charges related to the transition of manufacturing facilities and distribution network, and

  18. Slide 18: 3Q 2014 Adjusted Gross And Operating Margin Reconciliation

    18 3Q 2014 Adjusted Gross And Operating Margin Reconciliation (1) Adjustments for the North America business segment represent integration costs, which include severance and benefits costs, professional fees and other charges related to the transition of manufacturing facilities and distribution net

  19. Slide 19: Constant Currency Information

    Constant Currency Information In this investor presentation the Company refers to, and in other press releases and other communications with investors the Company may refer to, net sales or earnings or other historical financial information on a “constant currency basis”, which is a non-GAAP financi

Tempur Sealy International — Q3 2015 Earnings Presentation on 6ix