Leggett & Platt, Incorporated · NYSE:LEG
Leggett & Platt — Q3 2020 Earnings Presentation
12 slides from Leggett & Platt's earnings presentation, Nov 3, 2020
Slide 1: Third Quarter Summary Financial Information
Third Quarter Summary Financial Information November 2, 2020 Forward-Looking Statements Statements in this presentation that are not historical in nature are “forward-looking.” These statements are identified either by the context in which they appear or by the use of words such as “anticipate,” “be
Slide 2: Overview; Q3 2020 Financial Highlights
Overview Quarterly record¹ EBIT, EBITDA, EPS and Operating Cash Flow Adj. 2 EPS of $.80, up $.04 vs. adj. 2 EPS of $.76 in Q3-19 Operating Cash Flow of $261 million vs. $213 million in Q3-19 Adj. 2 EBIT of $153 million, up $5 million vs. Q3-19 Adj. 2 EBIT margin up 80 bps, to 12.7%, vs. 11
Slide 3: Q3 2020 Sales & EBIT Bridge; Non-Operating & Taxes
Q3 2020 Sales & EBIT Bridge Sales: mln $’s % change 3rd Qtr 2019 $1,239 Approx volume decline 1 (41) (3%) Approx raw material-related pricing and currency benefit 1 ─% Organic Sales (40) (3%) Acquisitions, net of divestitures 9 ─% 3rd Qtr 2020 $1,208 (3%) EBIT: margin Adjusted 3rd Qtr 2019 $148 11.9
Slide 4: Adjusted Working Capital; Net Debt to Adjusted EBITDA
Adjusted Working Capital 9/30 6/30 9/30 $’s in millions 2020 2020 2019 Cash & equivalents $245 $209 $242 Accounts receivable, net 642 577 677 Inventories, net 585 574 636 Other current assets 46 50 50 Total current assets 1,518 1,410 1,605 Current debt maturities (51) (51) (51) Current operating lea
Slide 5: Cash Flow; YTD 2020 Financial Summary
Cash Flow 3rd Qtr YTD $’s in millions 2020 2019 2020 2019 Net earnings $105 $100 $145 $247 D&A 47 48 141 145 Impairment, write-offs & other 1 3 57 16 Other non-cash (1) 7 19 30 Changes in working capital: Accounts receivable (57) 13 (70) (45) Inventory (8) 14 39 48 Other current assets 5 4 6 (0) Acc
Slide 6: YTD 2020 Sales & EBIT Bridge; Non-Operating & Taxes
YTD 2020 Sales & EBIT Bridge Sales: mln $’s % change YTD 2019 $3,608 Approx volume decline 1 (498) (14%) Approx raw material-related pricing and currency impact (58) (1%) Organic Sales (556) (15%) Acquisitions, net of divestitures 46 1% YTD 2020 $3,098 (14%) EBIT: margin Adjusted YTD 2019 2 $389 10.
Slide 7: Other Financial Details
Other Financial Details Liquidity Profile (as of 9/30/20) $1.4 billion of liquidity $245 million cash + $1.2 billion available under revolving credit facility 2.74x net debt to trailing 12-months adjusted EBITDA Covenant requirement ≤ 4.75x No significant debt maturities until August 2022
Slide 8: Q3 2020 Segment Summary
Segments Q3 2020 Segment Summary Q3-20 Q3-20 Q3-20 Organic Sales Adj. EBIT ∆ vs Adj. EBITDA ∆ vs Growth ¹ Margin 2 Q3-19 Margin 2 Q3-19 Bedding Products (1%) 12.6% 40 bps 17.1% 30 bps Specialized Products (9%) 15.0% -160 bps 19.4% -110 bps Furniture, Flooring & Textile Products (2%) 11.4% 320 bps 13
Slide 9: Bedding Products; Bedding – Key Points
Bedding Products Trade Sales: mln $’s % change 3rd Qtr 2019 $601 Divestitures (4) (1%) Adjusted Q3-20 Sales 597 Organic Sales 1 (7) (1%) 3rd Qtr 2020 $590 (2%) 1 Lower volume (1%) EBIT EBITDA mln $’s EBIT margin D&A EBITDA margin Adjusted 3rd Qtr 2019 2 $73 12.2% $28 $101 16.8% Change 1 (1) ─ Adjust
Slide 10: Specialized Products; Specialized – Key Points
Specialized Products Trade Sales: mln $’s % change 3rd Qtr 2019 $267 Organic Sales 1 (24) (9%) 3rd Qtr 2020 $243 (9%) 1 Lower volume (10%) and currency benefit 1% EBIT EBITDA mln $’s EBIT margin D&A EBITDA margin 3rd Qtr 2019 $44 16.6% $10 $55 20.5% Change (8) 1 (8) Adjusted 3rd Qtr 2020 2 $36 15.0%
Slide 11: Furniture, Flooring & Textile Products – Key Points
Furniture, Flooring & Textile Products Trade Sales: mln $’s % change 3rd Qtr 2019 $371 Acquisitions 13 3% Organic Sales 1 (8) (2%) 3rd Qtr 2020 $375 1% 1 Lower volume (2%) EBIT EBITDA mln $’s EBIT margin D&A EBITDA margin Adjusted 3rd Qtr 2019 2 $30 8.2% $6 $37 9.9% Change 13 ─ 13 Adjusted 3rd Qtr 2
Slide 12: For Additional Information; Non-GAAP Adjustments
Webcast replay is available at www.leggett.com FOR ADDITIONAL INFORMATION Ticker: LEG (NYSE) Website: www.leggett.com Email: invest@leggett.com Phone: (417) 358-8131 Find our Fact Book at www.leggett.com Susan McCoy Senior Vice President, Investor Relations Cassie Branscum Senior Director, Investor