[Mohawk Industries Q1 2024 Earnings Release](index=1&type=section&id=Mohawk%20Industries%20Q1%202024%20Earnings%20Release) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a 4.5% year-over-year decrease in net sales to $2.7 billion but increased net earnings to $105 million Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $2.7 billion | $2.8 billion | -4.5% | | Net Earnings | $105 million | $80 million | +31.3% | | EPS | $1.64 | $1.26 | +30.2% | | Adjusted Net Earnings | $119 million | $112 million | +6.3% | | Adjusted EPS | $1.86 | $1.75 | +6.3% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes improved Q1 results to restructuring and lower costs, which offset pricing pressures amid soft residential demand - Year-over-year earnings per share increased as a result of **restructuring, productivity initiatives, and benefits from lower raw material and energy costs**, which were partially offset by weaker pricing and product mix[3](index=3&type=chunk) - Market conditions show **significant pricing and mix pressure**, with the commercial channel outperforming the soft residential remodeling sector[4](index=4&type=chunk) - Strategic priorities include managing production levels to align inventories with demand, stimulating sales through new product introductions, and **reducing the cost structure**[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) All business segments saw sales declines, but operating income performance varied, with significant improvement in Flooring North America Q1 2024 Segment Net Sales and Operating Income | Segment | Net Sales (in millions) | Operating Income (in millions) | | :--- | :--- | :--- | | Global Ceramic | $1,044.8 | $48.8 | | Flooring NA | $900.2 | $45.0 | | Flooring ROW | $734.4 | $70.9 | [Global Ceramic Segment](index=2&type=section&id=Global%20Ceramic%20Segment) The segment's net sales declined 1.4% to $1.04 billion, with adjusted operating margin impacted by unfavorable price and mix Global Ceramic Q1 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales | $1,044.8 M | $1,059.3 M | | Operating Income | $48.8 M | $63.3 M | | Adjusted Operating Margin | 5.0% | 6.3% | - The U.S. ceramic tile industry has filed an **anti-dumping petition against India**, with expected tariffs between 400-800% plus additional duties[6](index=6&type=chunk) [Flooring Rest of the World Segment](index=2&type=section&id=Flooring%20Rest%20of%20the%20World%20Segment) Net sales decreased 7.4% to $734.4 million, though volumes increased from prior-year lows and LVT restructuring showed positive results Flooring ROW Q1 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales | $734.4 M | $793.5 M | | Operating Income | $70.9 M | $75.2 M | | Adjusted Operating Margin | 10.1% | 12.6% | - **Volumes increased from the prior year's low levels**, which may indicate improving trends in the segment's categories[7](index=7&type=chunk) - The restructuring of the residential LVT program is complete, resulting in **substantial growth in sales of rigid LVT**, which is replacing discontinued flexible products[7](index=7&type=chunk) [Flooring North America Segment](index=2&type=section&id=Flooring%20North%20America%20Segment) Despite a 5.6% sales decline to $900.2 million, the segment's adjusted operating margin improved dramatically due to cost efficiencies Flooring NA Q1 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales (Loss) | $900.2 M | $953.4 M | | Operating Income | $45.0 M | ($2.0 M) | | Adjusted Operating Margin | 5.3% | 0.5% | - New residential product launches, including **PetPremier carpet and award-winning PureTech resilient planks**, are being embraced by retailers[9](index=9&type=chunk) - The **West Coast LVT facility is increasing production**, and restructuring initiatives for the Georgia LVT facility are being implemented[9](index=9&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) Management projects Q2 adjusted EPS of $2.68 to $2.78 and anticipates long-term growth from a housing market recovery - The company anticipates **second quarter adjusted EPS to be between $2.68 and $2.78**, excluding any restructuring or other one-time charges[10](index=10&type=chunk) - The company is completing major expansion projects for LVT, quartz countertops, and premium laminate to support products with the **greatest growth potential when the market recovers**[10](index=10&type=chunk) - Long-term catalysts for the flooring industry include the **normalization of existing home sales**, the need for substantial new home construction, and increased remodeling investments[11](index=11&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations and balance sheets for the first quarter of 2024 [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) Q1 net sales were $2.68 billion, with operating income increasing to $146.6 million and net earnings rising to $105.0 million Q1 2024 Condensed Consolidated Statements of Operations (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $2,679.4 | $2,806.2 | | Gross profit | $649.5 | $643.4 | | Operating income | $146.6 | $125.7 | | Net earnings attributable to Mohawk | $105.0 | $80.2 | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) Total assets decreased to $13.53 billion as of March 30, 2024, with a corresponding decline in total liabilities to $5.88 billion Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 30, 2024 | April 1, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $658.5 | $572.9 | | Inventories | $2,527.7 | $2,729.9 | | Total assets | $13,531.5 | $14,763.5 | | Total liabilities | $5,883.7 | $6,657.8 | | Total stockholders' equity | $7,647.8 | $8,105.7 | [Other Financial Information](index=6&type=section&id=Other%20Financial%20Information) The company generated $183.7 million in operating cash flow and $96.9 million in free cash flow during the first quarter Q1 Cash Flow and Other Metrics (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $183.7 | $257.3 | | Capital expenditures | $86.8 | $128.5 | | Free cash flow | $96.9 | $128.8 | | Depreciation and amortization | $154.2 | $169.9 | [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section details the reconciliation of GAAP measures to non-GAAP figures to clarify core operating performance [Reconciliation of Net Earnings and EPS](index=8&type=section&id=Reconciliation%20of%20Net%20Earnings%20and%20EPS) Q1 GAAP net earnings of $105.0 million were adjusted to $118.8 million, resulting in an adjusted EPS of $1.86 Q1 2024 Reconciliation of Net Earnings to Adjusted Net Earnings (in millions) | Description | Amount | | :--- | :--- | | Net earnings attributable to Mohawk | $105.0 | | Restructuring, acquisition and other costs | $7.9 | | Legal settlements, reserves and fees | $8.8 | | Other adjustments & tax effects | ($3.9) | | **Adjusted net earnings** | **$118.8** | [Reconciliation of Segment Operating Income](index=11&type=section&id=Reconciliation%20of%20Segment%20Operating%20Income) Adjusted operating income is presented for each segment after excluding restructuring and other non-recurring costs Q1 2024 Adjusted Segment Operating Income (in millions) | Segment | GAAP Operating Income | Adjustments | Adjusted Operating Income | | :--- | :--- | :--- | :--- | | Global Ceramic | $48.8 | $3.9 | $52.7 | | Flooring NA | $45.0 | $2.8 | $47.8 | | Flooring ROW | $70.9 | $3.1 | $74.0 | [Reconciliation of EBITDA and Net Debt](index=9&type=section&id=Reconciliation%20of%20EBITDA%20and%20Net%20Debt) The company reported net debt of $1.97 billion and a Net Debt to Adjusted EBITDA ratio of 1.4x for the trailing twelve months - **Net debt** as of March 30, 2024 was calculated to be **$1,967.5 million**[23](index=23&type=chunk) - The **Net Debt to Adjusted EBITDA ratio** for the trailing twelve months ended March 30, 2024, was **1.4x**[24](index=24&type=chunk)

The upcoming report from Mohawk Industries (MHK) is expected to reveal quarterly earnings of $1.69 per share, indicating a decline of 3.4% compared to the year-ago period. Analysts forecast revenues of $2.69 billion, representing a decrease of 4.1% year over year.The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior t ...

Mohawk Industries, Inc. (MHK) is scheduled to report first-quarter 2024 results on Apr 25, after market close.In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 6% and increased 48.5% year over year. Net sales beat the consensus estimate by 1.3% but dropped 1.5% from the year-ago quarter’s levels.MHK’s earnings surpassed expectations in each of the trailing four quarters, with an average of 12.5%.Trend in Estimate RevisionThe Zacks Consensus Estimate for Moh ...

Core Insights - Mohawk Industries, Inc. is scheduled to announce its Q1 2024 earnings on April 26, 2024, at 11:00 AM ET [1] Group 1: Company Overview - Mohawk Industries is a leading manufacturer of flooring products, including brands such as American Olean, Daltile, and Pergo [1] - The company has a significant presence in North America, Europe, and Australia, indicating a broad market reach [1] Group 2: Financial Reporting - The upcoming earnings report will provide insights into the company's financial performance for the first quarter of 2024 [1] - Investors and analysts are expected to closely monitor the results for indications of growth and market trends [1]

Part I [Business](index=4&type=section&id=Item%201.%20Business) Mohawk Industries is the world's largest flooring company, operating through three segments: Global Ceramic (39% of 2023 net sales), Flooring North America (34%), and Flooring Rest of the World (27%), manufacturing and distributing a wide range of flooring products globally | Segment | 2023 Net Sales % | Key Products | Primary Markets | | :--- | :--- | :--- | :--- | | **Global Ceramic** | 39% | Ceramic, porcelain, natural stone tile, countertops | North America, Europe, Latin America | | **Flooring NA** | 34% | Carpet, rugs, laminate, LVT, wood flooring | North America | | **Flooring ROW** | 27% | Laminate, LVT, wood, carpet, insulation boards | Europe, Australasia | - The company's business strategy is built on **five key points**: being the preferred provider, retaining the best employees, driving innovation, taking calculated risks for growth, and enhancing communities[15](index=15&type=chunk)[17](index=17&type=chunk) - Mohawk has expanded its global presence through strategic acquisitions, including **Elizabeth Revestimentos in Brazil** and **Vitromex in Mexico in 2023**, solidifying its market position in Latin America[16](index=16&type=chunk) - As of December 31, 2023, the company employed approximately **43,300 people** worldwide, with about 17,100 in the US and Canada, 14,900 in Europe, and 11,300 in other countries[54](index=54&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company identifies several key risks to its business, including sensitivity to general economic conditions, intense industry competition, various international risks, operational challenges, litigation, intellectual property, cybersecurity threats, asset impairment, and financial risks - The flooring industry is highly sensitive to economic downturns, which reduce consumer spending on remodeling and new home construction, the primary drivers of the company's sales[59](index=59&type=chunk)[60](index=60&type=chunk) - The ongoing military conflict between Russia and Ukraine poses risks of supply chain disruption, increased energy and raw material costs, and potential adverse effects on the company's Russian operations, which accounted for approximately **4% of net sales in 2023**[69](index=69&type=chunk)[70](index=70&type=chunk) - The company faces risks from rising costs for raw materials, labor, and energy, with its ability to pass these increases to customers limited by competitive pressures and market conditions[73](index=73&type=chunk)[74](index=74&type=chunk) - Cybersecurity threats to the company's information systems pose a significant risk, potentially leading to operational disruptions, data breaches, and financial losses, prompting increased investment to mitigate these sophisticated threats[100](index=100&type=chunk) - Declines in business conditions or market capitalization could lead to impairment of goodwill and other assets, resulting in material non-cash charges, as experienced in the past[107](index=107&type=chunk) [Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[114](index=114&type=chunk) [Cybersecurity](index=23&type=section&id=Item%201C.%20Cybersecurity) The company has a comprehensive cybersecurity program led by a Senior Director of Cybersecurity (CISO), with governance provided by the Audit Committee and Board of Directors, and has not experienced any material incidents to date - The cybersecurity program is managed by a **CISO** and includes an Incident Response Plan and Team to handle potential incidents[115](index=115&type=chunk)[116](index=116&type=chunk) - Oversight is provided by the **Audit Committee** and the **Board of Directors**, with the CIO reporting quarterly on the cybersecurity landscape and risk management[120](index=120&type=chunk) - The company has not experienced any cybersecurity incidents that have had a material effect on its business, strategy, or financial condition[119](index=119&type=chunk) [Properties](index=25&type=section&id=Item%202.%20Properties) As of December 31, 2023, the company owns and leases 77 manufacturing facilities and 71 distribution/warehouse facilities across North America, Europe, Russia, and other regions, with its corporate headquarters in Calhoun, Georgia | Facility Type | North America | Europe and Russia | Other | Total | | :--- | :--- | :--- | :--- | :--- | | **Manufacturing** | 34 | 32 | 11 | **77** | | **Distribution / Warehouse** | 32 | 32 | 7 | **71** | [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal matters in the ordinary course of business, with no material proceedings pending, and further details provided in Note 16 - For a detailed discussion of legal proceedings, refer to Note 16, Commitments and Contingencies, and Note 15, Income Taxes[126](index=126&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters is included in Exhibit 95.1 of this Form 10-K - Mine safety disclosures are provided in Exhibit 95.1 to this annual report[127](index=127&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Mohawk's common stock trades on the NYSE under the symbol "MHK", the company has not paid cash dividends since its IPO, and a $500 million share repurchase program had $229.2 million remaining as of December 31, 2023, with no shares repurchased in Q4 2023 - The company's common stock is listed on the New York Stock Exchange under the symbol "**MHK**"[128](index=128&type=chunk) - The company has not paid any cash dividends on its common stock since its initial public offering[129](index=129&type=chunk) - As of December 31, 2023, **$229.2 million** remained authorized for repurchase under the 2022 Share Repurchase Program, with no shares purchased during the fourth quarter of 2023[130](index=130&type=chunk)[132](index=132&type=chunk) [Reserved](index=26&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, Mohawk faced challenging macroeconomic conditions, resulting in a 5.1% decrease in net sales to $11.1 billion and a net loss of $439.5 million, primarily due to lower volumes and significant goodwill impairment charges, despite an increase in cash from operations to $1.33 billion and ongoing cost reduction initiatives | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $11,135.1 M | $11,737.1 M | (5.1)% | | **Gross Profit** | $2,709.7 M | $2,943.4 M | (8.0)% | | **Operating Income (Loss)** | ($287.8 M) | $244.2 M | (217.8)% | | **Net Earnings (Loss)** | ($439.5 M) | $25.2 M | (1840.8)% | - The decrease in 2023 net sales was primarily due to lower legacy sales volume (approx. **$743 million**), unfavorable price/mix (approx. **$143 million**), and unfavorable foreign exchange rates (approx. **$72 million**), partially offset by sales from acquisitions (approx. **$389 million**)[146](index=146&type=chunk) - The company recorded goodwill and indefinite-lived intangible impairment charges of **$877.7 million in 2023**, compared to **$695.8 million in 2022**, driven by a decrease in market capitalization and macroeconomic conditions[153](index=153&type=chunk) - Cash from operating activities increased to **$1,329.2 million in 2023** from **$669.2 million in 2022**, mainly due to better management of inventory and accounts receivable[162](index=162&type=chunk) - The company is implementing global restructuring actions, including facility and product rationalizations, which are expected to deliver annual savings of approximately **$150 million** at an estimated cost of **$215 million**[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and commodity prices, with a one-percentage-point change in interest rates impacting annual interest expense by approximately $10 million and a hypothetical 10% change in the U.S. dollar against foreign currencies resulting in a translational adjustment of about $4 million - A one-percentage point change in interest rates on the company's variable-rate debt would result in an approximate **$10 million** annual impact on interest expense[185](index=185&type=chunk) - A hypothetical **10% change** in the U.S. dollar against all foreign currencies would lead to a translational adjustment of approximately **$4 million** on operating income[189](index=189&type=chunk) [Consolidated Financial Statements and Supplementary Data](index=37&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) This section contains audited consolidated financial statements for 2021-2023, including a net loss of $439.5 million in 2023, total assets of $13.56 billion, and total liabilities of $5.93 billion, with detailed notes on accounting policies, acquisitions, segment performance, debt, and significant goodwill impairment charges Consolidated Statement of Operations Highlights (in millions) | (In millions) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Net sales** | $11,135.1 | $11,737.1 | $11,200.6 | | **Operating income (loss)** | $(287.8) | $244.2 | $1,335.0 | | **Net earnings (loss) attributable to Mohawk** | $(439.5) | $25.2 | $1,033.2 | | **Diluted EPS** | $(6.90) | $0.39 | $14.94 | Consolidated Balance Sheet Highlights (in millions) | (In millions) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $5,604.2 | $5,895.1 | | **Total assets** | $13,559.9 | $14,120.4 | | **Total current liabilities** | $3,145.9 | $3,070.3 | | **Total liabilities** | $5,930.7 | $6,102.5 | | **Total stockholders' equity** | $7,629.1 | $8,017.9 | - In Q1 2023, the company acquired two ceramic tile businesses in Brazil and Mexico for **$515.5 million**, resulting in **$87.5 million** of goodwill[278](index=278&type=chunk) - The company recorded pre-tax, non-cash goodwill impairment charges of **$870.8 million in 2023** across all three reporting units, following a **$688.5 million charge in 2022** for the Global Ceramic unit[304](index=304&type=chunk) - As a subsequent event, the company prepaid its entire Term Loan Facility in January and February 2024, totaling **$675 million** and **€220 million**[401](index=401&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=81&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - Not applicable[403](index=403&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2023, with no material changes during the year - The **CEO** and **CFO** concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal year 2023[404](index=404&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023[407](index=407&type=chunk) [Other Information](index=81&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[411](index=411&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=81&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[412](index=412&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=83&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required for this item, including details on directors, executive officers, the audit committee, and corporate governance policies, is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - All required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[8](index=8&type=chunk)[414](index=414&type=chunk) [Executive Compensation](index=83&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation, including the Compensation Discussion and Analysis, is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - All required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[8](index=8&type=chunk)[415](index=415&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=83&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management, as well as details on equity compensation plans, is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - All required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[8](index=8&type=chunk)[416](index=416&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=83&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning related party transactions and director independence is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - All required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[8](index=8&type=chunk)[416](index=416&type=chunk) [Principal Accounting Fees and Services](index=83&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding fees paid to and services provided by the principal independent registered public accounting firm, KPMG LLP, is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - All required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[8](index=8&type=chunk)[417](index=417&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=84&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the consolidated financial statements, which are included in Item 8, and all exhibits filed with the Form 10-K, noting that omitted schedules are either not applicable or the required information is included elsewhere in the report - The Consolidated Financial Statements are incorporated by reference from Part II, Item 8 of this Form 10-K[419](index=419&type=chunk) - A comprehensive list of exhibits filed with the report is provided, including governance documents, debt agreements, and executive compensation plans[421](index=421&type=chunk)[422](index=422&type=chunk) [Form 10-K Summary](index=86&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no Form 10-K summary - None[425](index=425&type=chunk)

Core Insights - Mohawk Industries, Inc. reported a net sales of $2.61 billion for Q4 2023, a decrease of 1.4% compared to $2.65 billion in Q4 2022 [1] - The company achieved a net income of $139.49 million in Q4 2023, significantly up from $33.46 million in the same quarter of the previous year [1][7] - For the full year 2023, net sales totaled $11.14 billion, down 5.1% from $11.74 billion in 2022 [1] - The gross profit for Q4 2023 was $642.29 million, compared to $554.44 million in Q4 2022, indicating a strong improvement in profitability [1] Financial Performance - Q4 2023 earnings per share (EPS) were $2.19, up from $0.53 in Q4 2022 [1] - The operating income for Q4 2023 was $167.10 million, a significant increase from $61.08 million in Q4 2022 [1] - The company reported a free cash flow of $55.96 million for Q4 2023, down from $91.06 million in Q4 2022 [6] Segment Performance - The Global Ceramic segment reported net sales of $993.74 million in Q4 2023, slightly up from $987.70 million in Q4 2022 [6] - The Flooring North America segment saw a decline in net sales to $912.05 million in Q4 2023 from $945.96 million in Q4 2022 [6] - The Flooring Rest of World segment reported net sales of $706.49 million in Q4 2023, down from $717.02 million in Q4 2022 [6] Balance Sheet Highlights - As of December 31, 2023, total assets were $13.56 billion, down from $14.12 billion a year earlier [6] - Cash and cash equivalents increased to $642.55 million from $509.62 million year-over-year [6] - Total liabilities decreased to $5.93 billion from $6.10 billion in the previous year [6]

The Long View Q4 2023 Investor Presentation Acquisitions 2013-2023 $9.19 $716M Countries with Sales mohawkind.com NYSE: MHK February 2024 Forward-looking | --- | --- | --- | |------------------------------------------|-------|-------| | Statements | | | | This presentation may include | | | | forward-looking statements as | | | | defined in the Private Securities | | | | Litigation Reform Act of 1995, which | | | | are subject to various risks and | | | | uncertainties including, but not limited | | | | to, ...

喬治亞州，卡爾霍恩市, Jan. 09, 2024 (GLOBE NEWSWIRE) -- 與 Mohawk Industries, Inc. (NYSE: MHK) 協力的 2023 年第四季度業績報告將於 2024 年 2 月 8 日星期四發布，誠邀您收聽於美國東部時間 2024 年 2 月 9 日星期五上午 11:00 召開的直播電話會議。 主題： Mohawk Industries, Inc. 2023 年第四季度業績電話會議 時間： 美國東部時間2024 年 2 月 9 日上午 11:00 場所： www.mohawkind.com選擇投資者資訊 方式： 透過互聯網現場直播 - 只需登入上述網址或透過以下連結註冊參加電話會議：https://dpregister.com/sreg/10185489/fb57257e00電話會議直播：撥打 1-833-630-1962（美國/加拿大） 撥打 1-412-317-1843（國際） 若無法在指定時間收聽直播，可於 2024 年 3 月 8 日前透過撥打以下電話收聽電話會議重播：美國：1-877-344-7529，加拿大：1-855-66 ...

佐治亞州，卡爾霍恩, Oct. 28, 2023 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK）今日宣布，在 8.76 億美元的非現金減值費用的影響下，2023 年第三季度淨虧損為 7.6 億美元，每股虧損 11.94 美元。該公司當前的市值以及持續充滿挑戰的宏觀經濟條件和較高的折現率促使其對其商譽和無形資產餘額進行審查，從而產生了減值費用。調整後淨利為 1.74 億美元，調整後每股盈餘 (「EPS」) 為 2.72 美元，減損和其他非經常性費用不包括在內。2023 年第三季度的淨銷售額為 28 億美元，較前一年相比，據報導下降 5.2%，而以既往數據、固定貨幣和天數為基準則下降 8.1%。2022 年第三季度，該公司報告淨銷售額為 29 億美元，淨虧損 5.34 億美元，每股虧損 8.40 美元。調整後淨利為 2.12 億美元，調整後 EPS 為 3.34 美元，減損和其他非經常性費用不包括在內。 截至 2023 年 9 月 30 日的九個月期間，公司報告的淨虧損和每股虧損分別為 5.79 億美元和 9.10 美元。調整後淨利為 4.62 億美 ...

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The company reported a significant net loss for Q3 and the first nine months of 2023, primarily driven by an **$876.1 million impairment charge**, while also completing acquisitions and improving operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Mohawk reported a net loss of **$760.5 million** in Q3 2023 and **$579.0 million** for the nine-month period, primarily due to an **$876.1 million impairment charge**, alongside decreased net sales Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Oct 1, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Oct 1, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $2,766,186 | $2,917,539 | $8,522,837 | $9,086,390 | | **Gross profit** | $692,007 | $713,661 | $2,067,358 | $2,388,986 | | **Impairment of goodwill and intangibles** | $876,108 | $695,771 | $876,108 | $695,771 | | **Operating (loss) income** | $(733,742) | $(505,589) | $(454,906) | $183,139 | | **Net earnings (loss) attributable to Mohawk** | $(760,459) | $(533,969) | $(579,004) | $(8,209) | | **Diluted earnings (loss) per share** | $(11.94) | $(8.40) | $(9.10) | $(0.13) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets decreased to **$13.14 billion** from **$14.12 billion** at year-end 2022, primarily due to a significant reduction in goodwill following impairment charges Key Balance Sheet Items (in thousands) | Metric | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $5,504,325 | $5,895,099 | | **Goodwill** | $1,125,434 | $1,927,759 | | **Total assets** | $13,138,495 | $14,120,432 | | **Total current liabilities** | $3,188,574 | $3,070,285 | | **Total liabilities** | $5,867,105 | $6,102,518 | | **Total stockholders' equity** | $7,271,390 | $8,017,914 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$1.03 billion** for the nine months ended September 30, 2023, driven by favorable working capital changes, despite increased cash used in investing and financing activities Cash Flow Summary (in thousands) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Oct 1, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,032,907 | $427,435 | | **Net cash used in investing activities** | $(729,970) | $(374,358) | | **Net cash provided by (used in) financing activities** | $(273,756) | $(2,978) | | **Net change in cash and cash equivalents** | $8,829 | $58,076 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail significant events including the **$515.5 million** Q1 2023 acquisition, an **$869.1 million** Q3 goodwill impairment, **$108.2 million** in restructuring costs, issuance of **$600 million** senior notes, and a **$60 million** securities class action settlement - In Q1 2023, the company acquired two ceramic tile businesses in Brazil and Mexico for **$515.5 million**, resulting in **$85.9 million** of goodwill[21](index=21&type=chunk) - A triggering event in Q3 2023 led to a pre-tax, non-cash goodwill impairment charge of **$869.1 million** and an indefinite-lived intangible impairment of **$7.0 million** across all three reporting units[41](index=41&type=chunk)[42](index=42&type=chunk) - For the nine months ended September 30, 2023, the company incurred total restructuring costs of **$108.2 million**, primarily related to asset write-downs and other costs in the Global Ceramic, Flooring NA, and Flooring ROW segments[34](index=34&type=chunk) - In September 2023, the company issued **$600 million** of **5.850% Senior Notes** due 2028[87](index=87&type=chunk) - The company reached an agreement to settle a securities class action for **$60 million**, with the SEC staff separately notifying the company of no recommended enforcement action following an investigation into similar matters[68](index=68&type=chunk)[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes declining sales and profitability to a challenging macroeconomic environment and a significant **$876.1 million** impairment charge, while implementing restructuring for **$135 million** in annual savings and maintaining strong operating cash flow - The company is facing headwinds from **higher interest rates**, **consumer inflation**, and **reduced homebuilder confidence**, leading to decreased discretionary spending on flooring[105](index=105&type=chunk)[106](index=106&type=chunk) - Global restructuring and cost-reduction initiatives are anticipated to deliver annual savings of approximately **$135 million**, with an estimated cost of **$215 million**[106](index=106&type=chunk) - Capital investment for 2023 is planned at approximately **$600 million**, focusing on LVT, premium laminate, quartz countertops, and porcelain slab expansion[109](index=109&type=chunk) - A decrease in the company's market capitalization, macroeconomic conditions, and a higher WACC triggered an interim impairment test, resulting in a pre-tax, non-cash goodwill impairment charge of **$869.1 million** in Q3 2023[154](index=154&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Net sales declined by **5.2%** to **$2.77 billion** in Q3 2023 and **6.2%** to **$8.52 billion** for the nine-month period, with operating losses widening due to an **$876.1 million** impairment charge Q3 2023 vs Q3 2022 Performance (in millions) | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $2,766.2 | $2,917.5 | -5.2% | | **Gross Profit** | $692.0 | $713.7 | -3.0% | | **Operating Loss** | $(733.7) | $(505.6) | +45.1% | Nine Months 2023 vs 2022 Performance (in millions) | Metric | YTD 2023 | YTD 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $8,522.8 | $9,086.4 | -6.2% | | **Gross Profit** | $2,067.4 | $2,389.0 | -13.5% | | **Operating (Loss) Income** | $(454.9) | $183.1 | N/A | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with net cash from operating activities increasing to **$1.03 billion** for the first nine months of 2023, supported by **$518.5 million** cash on hand and remaining share repurchase authorization - Net cash provided by operating activities increased by **$605.5 million** in the first nine months of 2023 compared to the same period in 2022, primarily due to favorable changes in inventory and accounts receivable[144](index=144&type=chunk) - The company's Board of Directors approved a **$500 million** share repurchase program in February 2022, with **$229.2 million** remaining authorized as of September 30, 2023[148](index=148&type=chunk) - The company believes its cash on hand, cash from operations, and available credit will be sufficient to meet its capital expenditure, working capital, and debt servicing needs for at least the next twelve months[147](index=147&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure remains largely unchanged, with a **1.0 percentage point** increase in floating-rate debt interest rates potentially increasing interest expense by **$6.8 million** for the nine months ended September 30, 2023 - A **1.0 percentage point** increase in the interest rate on floating-rate debt would have increased interest expense by **$2.3 million** for Q3 2023 and **$6.8 million** for the nine months ended September 30, 2023[160](index=160&type=chunk) - There have been no significant changes to the Company's exposure to market risk as disclosed in the 2022 Annual Report on Form 10-K[161](index=161&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO have concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[162](index=162&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[163](index=163&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters, with detailed discussions available in Note 17 of the Condensed Consolidated Financial Statements - For a detailed discussion of legal proceedings, refer to Note 17, Commitments and Contingencies, in Part I, Item 1 of this report[167](index=167&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the company's risk factors since the filing of the 2022 Annual Report on Form 10-K - No material changes have occurred in the company's risk factors since the filing of the 2022 Annual Report on Form 10-K[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q3 2023, with **$229.2 million** remaining available under the **$500 million** share repurchase program - The company did not purchase any of its common stock in the third quarter of 2023[170](index=170&type=chunk) Share Repurchase Activity (Q3 2023) | Period | Total Number of Shares Purchased (in Millions) | Average Price Paid per Share | Approximate Dollar Value of Shares That May Yet Be Purchased (in Millions) | | :--- | :--- | :--- | :--- | | **Q3 2023 Total** | 0.0 | $ — | $229.2 | [Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - The company reports no defaults upon senior securities[173](index=173&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, as required by the Dodd-Frank Act, are included in Exhibit 95.1 of this quarterly report - Mine safety disclosures are provided in Exhibit 95.1 to this Form 10-Q[174](index=174&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this item - The company reports no other information for this item[176](index=176&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including bylaws, debt indentures, officer certifications, mine safety disclosures, and XBRL data files - Key exhibits filed include debt agreements, CEO/CFO certifications, and XBRL interactive data files[177](index=177&type=chunk)