Leggett & Platt, Incorporated · NYSE:LEG
Leggett & Platt — Q3 2023 Earnings Presentation
12 slides from Leggett & Platt's earnings presentation, Oct 31, 2023
Slide 1: Third Quarter Summary Financial Information
Third Quarter Summary Financial Information October 30, 2023 Forward-Looking Statements Statements in this presentation that are not historical in nature are “forward-looking.” These statements include future EPS, adjusted EPS, sales, volume for the Company and per segment, volume in residential end
Slide 2: Overview / Q3 2023 Financial Highlights
Overview Q3 sales of $1.18 billion, a 9% decrease vs. Q3-22 Volume was down 6% Raw material-related price decreases, net of currency benefit, reduced sales 5% Acquisitions added 2% to sales Q3 adjusted1 EBIT of $86 million, down $27 million vs. Q3-22 EBIT Adjusted1 EBIT margin 7.3%, down
Slide 3: Q3 2023 Sales & EBIT Bridge / Q3 2023 Earnings
Q3 2023 Sales & EBIT Bridge Sales: mln $’s % change 3rd Qtr 2022 $1,294 Approx volume decrease (85) (6%) Approx raw material-related pricing and currency impact (63) (5%) Organic Sales (148) (11%) Acquisitions 29 2% 3rd Qtr 2023 $1,175 (9%) EBIT: margin 3rd Qtr 2022 $113 8.7% Primarily lower metal m
Slide 4: Adjusted Working Capital / Net Debt to Adjusted EBITDA
Adjusted Working Capital 9/30 6/30 9/30 $’s in millions 2023 2023 2022 Cash & equivalents $274 $272 $226 Accounts receivable, net 711 703 730 Inventories, net 835 858 976 Other current assets 66 73 69 Total current assets 1,886 1,906 2,001 Current debt maturities (9) (8) (7) Current operating lease
Slide 5: Cash Flow / YTD 2023 Financial Highlights
Cash Flow 3rd Qtr YTD $’s in millions 2023 2022 2023 2022 Net earnings $53 $71 $161 $257 D&A 45 44 135 134 Impairment, write-offs & other (4) 3 (1) 11 Other non-cash (10) (8) 4 7 Changes in working capital: Accounts receivable 4 (16) (23) (109) Inventory 17 72 67 16 Other current assets 1 7 (6) (3)
Slide 6: YTD 2023 Sales & EBIT Bridge / YTD 2023 Earnings
YTD 2023 Sales & EBIT Bridge Sales: mln $’s % change YTD 2022 $3,951 Approx volume decrease (260) (6%) Approx raw material-related pricing and currency impact (191) (5%) Organic Sales (451) (11%) Acquisitions, net of divestitures 110 2% YTD 2023 $3,610 (9%) EBIT: margin YTD 2022 $394 10.0% Primarily
Slide 7: 2023 Sales and EPS Guidance Lowered
2023 Sales and EPS Guidance Lowered Sales: $4.7–$4.75 billion (vs. prior range of $4.75–$4.95 billion); down 8% to down 9% versus 2022 Guidance does not include impacts from the UAW strike beyond what we have experienced so far due to uncertainties around the duration and severity of the strike
Slide 8: Q3 2023 Segment Summary
Segments Q3 2023 Segment Summary Q3-23 Q3-23 ∆ vs Q3-22 Q3-23 ∆ vs Q3-22 Organic Sales Adj. EBIT 2 EBIT Adj. EBITDA 2 EBITDA 2 Growth 1, 2 Margin Margin Margin Margin Bedding Products (17%) 5.3% -220 bps 10.7% -130 bps Specialized Products 3% 9.8% -90 bps 13.1% -100 bps Furniture, Flooring & Textile
Slide 9: Bedding Products
Bedding Products Trade Sales: mln $’s % change 3rd Qtr 2022 $582 Organic Sales 1 (99) (17%) 3rd Qtr 2023 $483 (17%) 1 Raw material-related selling price decreases (10%) and lower volume (8%), partially offset by 1% currency benefit EBIT EBITDA mln $’s EBIT margin D&A EBITDA margin 3rd Qtr 2022 $44 7
Slide 10: Specialized Products
Specialized Products Trade Sales: mln $’s % change 3rd Qtr 2022 $291 Organic Sales 1 9 3% Acquisitions 19 7% 3rd Qtr 2023 $319 10% 1 Higher volume 3% EBIT EBITDA mln $’s EBIT margin D&A EBITDA margin 3rd Qtr 2022 $31 10.7% $10 $41 14.1% Change — 1 1 3rd Qtr 2023 $31 9.8% $11 $42 13.1% 19 Specialized
Slide 11: Furniture, Flooring & Textile Products
Furniture, Flooring & Textile Products Trade Sales: mln $’s % change 3rd Qtr 2022 $421 Organic Sales 1 (59) (14%) Acquisitions 11 3% 3rd Qtr 2023 $373 (11%) 1 Lower volume (11%) and raw material-related price decreases (3%) EBIT EBITDA mln $’s EBIT margin D&A EBITDA margin 3rd Qtr 2022 $38 9.1% $6 $
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