Tempur Sealy International, Inc. (TPX) has reported a 93.53 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $77.80 million, or $1.32 a share in the quarter, compared with $40.20 million, or $0.64 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $77.80 million, or $1.32 a share compared with $69.90 million or $1.11 a share, a year ago. Revenue during the quarter dropped 5.41 percent to $832.40 million from $880 million in the previous year period. Gross margin for the quarter expanded 264 basis points over the previous year period to 43.50 percent. Total expenses were 84.25 percent of quarterly revenues, down from 87.40 percent for the same period last year. This has led to an improvement of 315 basis points in operating margin to 15.75 percent.
Operating income for the quarter was $131.10 million, compared with $110.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $155 million compared with $142.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 245 basis points in the quarter to 18.62 percent from 16.17 percent in the last year period.
Tempur Sealy International, Inc. chairman and chief executive officer Scott Thompson commented, "We are pleased to report record EBITDA and GAAP EPS for the quarter. The flexibility of our business model was displayed this quarter as our top line sales were below our original expectations yet we delivered significant margin expansion and 19% EPS growth. We continue to effectively execute on our core strategy to drive our long term operating performance."
Operating cash flow declines
Tempur Sealy International, Inc. has generated cash of $109.80 million from operating activities during the nine month period, down 17.57 percent or $23.40 million, when compared with the last year period. The company has spent $41.90 million cash to meet investing activities during the nine month period as against cash outgo of $44.20 million in the last year period.
The company has spent $124.20 million cash to carry out financing activities during the nine month period as against cash outgo of $87.40 million in the last year period.
Cash and cash equivalents stood at $89 million as on Sep. 30, 2016, up 23.96 percent or $17.20 million from $71.80 million on Sep. 30, 2015.
Working capital increases sharply
Tempur Sealy International, Inc. has recorded an increase in the working capital over the last year. It stood at $157.10 million as at Sep. 30, 2016, up 58.69 percent or $58.10 million from $99 million on Sep. 30, 2015. Current ratio was at 1.26 as on Sep. 30, 2016, up from 1.13 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 39 days for the last year period. Days sales outstanding were almost stable at 46 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 21 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding went up to 49 days for the quarter from 47 for the same period last year.
Debt moves up
Tempur Sealy International, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,685.10 million as on Sep. 30, 2016, up 13.38 percent or $198.80 million from $1,486.30 million on Sep. 30, 2015. Total debt was 61.36 percent of total assets as on Sep. 30, 2016, compared with 54.26 percent on Sep. 30, 2015. Debt to equity ratio was at 11.14 as on Sep. 30, 2016, up from 4.97 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 6.40 for the quarter from 3.34 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
