Financial Performance - Net income for the three months ended September 30, 2024, was $129.8 million, compared to $113.9 million for the same period in 2023, representing a 14.5% increase[12]. - Comprehensive income attributable to Tempur Sealy International, Inc. for the three months ended September 30, 2024, was $167.0 million, up from $81.8 million in 2023, reflecting a significant increase of 104.9%[12]. - The net income for the nine months ended September 30, 2023, was $312.4 million, compared to $291.0 million for the same period in 2022, reflecting a year-over-year increase of approximately 10.5%[19]. - For the three months ended September 30, 2024, consolidated net sales were $1,300.0 million, an increase from $1,277.1 million in the same period of 2023, representing a growth of 1.8%[42]. - For the nine months ended September 30, 2024, consolidated net sales reached $3,723.0 million, compared to $3,754.9 million for the same period in 2023, indicating a decrease of 0.8%[44]. - Gross profit for the three months ended September 30, 2024, was $589.9 million, compared to $573.7 million for the same period in 2023, reflecting a 2.9% increase[76]. - Operating income for the nine months ended September 30, 2024, was $506.6 million, slightly down from $485.3 million in 2023, indicating a year-over-year increase of 4.3%[80]. - Net income for the third quarter of 2024 increased by 14.7% to $130.0 million compared to $113.3 million in the third quarter of 2023[102]. - Adjusted net income for Q3 2024 was $146.5 million, compared to $136.8 million in Q3 2023, reflecting an increase of 7.1%[164]. Assets and Liabilities - Total assets as of September 30, 2024, amounted to $4,568.0 million, a slight increase from $4,553.9 million at the end of 2023[14]. - Current liabilities increased to $1,011.8 million as of September 30, 2024, compared to $908.2 million at the end of 2023, indicating a rise of 11.4%[14]. - Long-term debt decreased to $2,227.1 million as of September 30, 2024, down from $2,527.0 million at the end of 2023, showing a reduction of 11.9%[14]. - Total debt was $2,287.8 million, down from $2,593.6 million as of December 31, 2023, representing a decrease of approximately 11.8%[46]. - The Company had no outstanding borrowings under the revolving credit facility as of September 30, 2024, with total availability under the revolving facility at $1,189.2 million[54]. - The Company’s accrued expenses and other current liabilities totaled $466.8 million as of September 30, 2024, compared to $427.1 million as of December 31, 2023, an increase of approximately 9.2%[60]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $537.4 million, an increase from $479.2 million in the prior year[23]. - The company had net repayments of $307.3 million on credit facilities for the nine months ended September 30, 2024, compared to $198.4 million in the same period in 2023[144]. - Cash used in investing activities decreased by $76.9 million to $(75.9) million for the nine months ended September 30, 2024, down from $(152.8) million in 2023[143]. - Capital expenditures totaled $76.4 million for the nine months ended September 30, 2024, down from $153.3 million in 2023, with expectations of approximately $125 million for the full year 2024[145]. Dividends and Share Repurchase - The company declared dividends of $0.13 per share, totaling $22.9 million for the period[16]. - The company declared dividends on common stock of $0.39 per share, totaling $68.8 million for the period[19]. - The Company had approximately $774.5 million remaining under its share repurchase authorization as of September 30, 2024, with no shares repurchased during the three and nine months ended September 30, 2024[57]. - The company temporarily suspended its share repurchase program in advance of the pending Mattress Firm acquisition, with $774.5 million remaining under the authorization as of September 30, 2024[152]. Acquisition and Market Strategy - The pending merger with Mattress Firm is expected to enhance market share and sales growth, with ongoing litigation with the U.S. Federal Trade Commission impacting the acquisition timeline[3]. - The proposed acquisition of Mattress Firm is valued at approximately $4.0 billion, expected to be funded by $2.7 billion in cash and $1.3 billion in stock consideration[38]. - The company expects the acquisition of Mattress Firm to close in late 2024 or early 2025, pending successful litigation outcomes[41]. - The company aims to successfully integrate Mattress Firm into its operations to realize synergies from the transaction, although there are risks associated with the integration process[3]. Tax and Compliance - The effective tax rates for the three months ended September 30, 2024, and 2023 were 23.9% and 24.4%, respectively, while for the nine months ended September 30, 2024, and 2023, they were 23.4% and 24.3%[65]. - The Company is evaluating the potential consequences of the OECD's proposed global minimum effective tax of 15.0% on its long-term financial position, but does not expect a material impact in 2024[66]. - The company has maintained compliance with the 2023 Credit Agreement, which requires a ratio of consolidated indebtedness less netted cash to adjusted EBITDA of less than 5.00 times[177]. Operational Highlights - North America segment net sales for the three months ended September 30, 2024, were $1,015.3 million, while the International segment reported $284.7 million, leading to consolidated net sales of $1,300.0 million[76]. - The International segment completed the rollout of a new line of Tempur® products in over 90 markets, broadening its price range and global addressable market[99]. - The company expects to outperform the bedding industry despite macroeconomic pressures, driven by successful new product launches and distribution gains in the U.S.[92]. - In 2024, the company launched a new portfolio of Tempur-Pedic® Adapt mattresses, enhancing its product offerings in the North America segment[98].

Financial Data and Key Metrics - Net sales grew 2% to $1.3 billion in Q3 2024 compared to the same period last year [8] - Adjusted EBITDA grew 6% to $275 million, with an adjusted EBITDA margin of 21.1%, the strongest margin in 10 quarters [8][11] - GAAP EPS grew 14% to $0.73 per share, while adjusted EPS grew 7% to $0.82 per share [8] - Free cash flow was $240 million, the strongest quarter since Q3 2021 [10] - Adjusted EBITDA to net debt leverage ratio declined to 2.4x, below the midpoint of the targeted range of 2-3x [9] Business Line Performance - US business performed well compared to the broader market, driven by new product launches and distribution wins [13][17] - Stearns & Foster was the strongest performing brand in the quarter, with growth in both wholesale and direct-to-consumer channels [17] - International sales grew 12% on a reported basis and 11% on a constant currency basis, with a 200 basis point expansion in operating margins [23][31] - The newly-launched International Tempur collection drove growth in key markets like the UK, Germany, China, and Australia [24] Market Performance - The US bedding industry remains significantly below historical volumes, with unit volumes down high-single-digits in 2024 [35] - International markets showed strong momentum, with double-digit growth in sales and improved operating margins [23][31] - The company expects market normalization to begin in 2025, led by the launch of the new Sealy Posturepedic product line [12][18] Strategy and Industry Competition - The company is preparing for the planned acquisition of Mattress Firm, with a Federal Court hearing scheduled for November 12, 2024 [39] - The new Sealy Posturepedic product line, launching in 2025, targets the mid to entry-level market and features proprietary coil technology [18][19] - The company continues to invest in advertising and consumer-centric innovation, with a focus on premium, health, and wellness-focused customers [12][16] Management Commentary on Operating Environment and Future Outlook - The bedding industry has been in a prolonged downturn, with volumes down approximately 30% from peak levels in 2021 [48] - The company expects a recovery or normalization in the market, driven by lower interest rates, improved housing formation, and increased consumer confidence [48] - International markets are expected to sustain strong growth, supported by new product launches and expanded distribution [23][80] Other Important Information - The company executed a $1.6 billion Term Loan B to fund the Mattress Firm acquisition [33] - Advertising spend in Q3 was $119 million, consistent with prior years, and is expected to increase in 2025 [66][69] - The company expects full-year 2024 adjusted EPS to be between $2.45 and $2.55, representing 4% growth year-over-year [34] Q&A Session Summary Question: How will consumer demand trend in late 2024 and early 2025? - The company expects market normalization in 2025, driven by lower interest rates, improved housing formation, and the launch of the new Sealy Posturepedic product line [48] Question: What is the contribution margin outlook for North America and International? - International contribution margins are expected to be higher than the US, with North America around 30-35% [52] Question: What is the state of the industry heading into 2025? - The industry is expected to recover, with product innovation and advertising driving growth, though full normalization may take time [57] Question: How will the new Sealy Posturepedic launch impact earnings in 2025? - The launch is not expected to have incremental costs, as advertising will be offset by cost reductions [78] Question: Why is international growth sustainable? - Growth is driven by new product launches, expanded distribution, and strong execution in key markets like the UK [80] Question: What drove the strong performance of Stearns & Foster in Q3? - Strong performance was due to sales focus, SKU optimization, and effective execution [83]

For the quarter ended September 2024, Tempur Sealy (TPX) reported revenue of $1.3 billion, up 1.8% over the same period last year. EPS came in at $0.82, compared to $0.77 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.29 billion, representing a surprise of +0.54%. The company delivered an EPS surprise of +1.23%, with the consensus EPS estimate being $0.81.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Tempur Sealy (TPX) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.23%. A quarter ago, it was expected that this mattress maker would post earnings of $0.63 per share when it actually produced earnings of $0.63, delivering no surprise.Over the last four quarters, the company has sur ...

LEXINGTON, Ky., Nov. 7, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today announced that its Board of Directors has declared a fourth quarter cash dividend on its common stock of $0.13 per share. The dividend is payable on December 5, 2024, to shareholders of record as of November 21, 2024. About Tempur Sealy International, Inc.Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a leading designer, manufact ...

- Consolidated Sales Growth of 2%- Consolidated Gross Margins Expands- EPS Growth of 14% and Adjusted EPS(1) Growth of 7%- Robust Third Quarter Cash Flow from Operations of $257 MillionLEXINGTON, Ky., Nov. 7, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX) announced financial results for the third quarter ended September 30, 2024 and narrowed financial guidance for the full year 2024.THIRD QUARTER 2024 FINANCIAL SUMMARY Total net sales increased 1.8% to $1,300.0 million as compared to $1,2 ...

#1 in Customer Satisfaction for both Mattresses Purchased In-Store and Online for 2024*LEXINGTON, Ky., Nov. 6, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Company" or "Tempur Sealy"), the company synonymous with innovation in the mattress industry, today announced that its Tempur-Pedic® brand was ranked #1 in Customer Satisfaction for Mattresses Purchased In-Store in the J.D. Power 2024 U.S. Mattress Satisfaction Study*, marking the fifth time in six years the Company has won the awar ...

–  Expects to use Term Loan B proceeds to fund the expected acquisition of Mattress Firm–  Aligns availability period of Delayed Draw Term A Loan commitmentsLEXINGTON, Ky., Oct. 25, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today announced that it has successfully closed on a senior secured Term Loan B facility in an aggregate principal amount of $1.6 billion (the "Term Loan B"). The Term Loan B will mature seven years after the date of closing. The Compa ...

LEXINGTON, Ky., Oct. 15, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX) will release its financial results for the third quarter ended September 30, 2024, before the NYSE opening of regular trading on Thursday, November 7, 2024. The Company will hold a conference call at 8:00 a.m. Eastern Time. The call will be webcast and can be accessed on the Company's investor relations website at investor.tempursealy.com. After the conference call, a webcast replay will remain available on the websit ...

– Expects to use Term Loan B proceeds to fund the proposed acquisition of Mattress Firm LEXINGTON, Ky., Oct. 4, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today announced that it has successfully priced its previously announced senior secured Term Loan B facility in an aggregate principal amount of $1.6 billion (the "Term Loan B"). The Term Loan B will mature seven years after the date of closing of the Term Loan B, which is expected to occur in the next f ...