– Expects to use proceeds to fund the proposed acquisition of Mattress Firm – Anticipates drawing on the loan concurrent with closing the proposed acquisition LEXINGTON, Ky., Sept. 23, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today announced that it is launching a proposed senior secured Term Loan B facility in an aggregate principal amount of up to $1.6 billion (the "Term Loan B"). The Term Loan B will mature seven years after the date of closing. Tempu ...

The litigation process is progressing; hearing dates set to begin in November 2024 Executed agreement with Mattress Warehouse to divest certain Mattress Firm and Sleep Outfitters retail locations, subject to closing the Mattress Firm acquisition LEXINGTON, Ky., Sept. 23, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today provided an update with respect to the Company's agreement to acquire Mattress Firm Group Inc. ("Mattress Firm"), which is currently being ...

Financial Performance - Net income for the three months ended June 30, 2024, was $106.5 million, an increase from $93.2 million in the same period of 2023, representing a growth of 35.4%[10] - Comprehensive income attributable to Tempur Sealy International, Inc. for the three months ended June 30, 2024, was $98.6 million, down from $109.6 million in 2023, reflecting a decrease of 10.0%[10] - Net income for the six months ended June 30, 2024, was $182.4 million, compared to $177.7 million for the same period in 2023, reflecting a growth of 0.4%[17] - Net income attributable to Tempur Sealy International for Q2 2024 was $106.1 million, up from $92.4 million in Q2 2023, representing a 14.5% increase[10] - Basic earnings per common share for Q2 2024 was $0.61, compared to $0.54 in Q2 2023, reflecting a 12.9% increase[10] - Diluted earnings per common share for Q2 2024 was $0.60, an increase from $0.52 in Q2 2023, marking a 15.4% rise[10] - Adjusted net income for the three months ended June 30, 2024, was $111.7 million, with adjusted earnings per share of $0.63[135] Sales and Revenue - The company reported net sales of $1,233.6 million for the three months ended June 30, 2024, compared to $1,269.7 million for the same period in 2023, reflecting a decrease of approximately 2.8%[36] - For the six months ended June 30, 2024, net sales were $2,423.0 million, down from $2,477.8 million in the same period of 2023, indicating a decline of about 2.2%[37] - Total net sales for the six months ended June 30, 2024, reached $2,423.0 million, compared to $2,269.7 million for the same period in 2023, indicating a 6.7% growth[66] - The North America segment's net sales for Q2 2024 were $978.4 million, while the International segment reported $255.2 million[64] - Total net sales decreased 2.8% to $1,233.6 million compared to $1,269.7 million in Q2 2023, with a 3.8% decrease in North America and consistent sales in International[82] Assets and Liabilities - Total current assets as of June 30, 2024, increased to $1,161.7 million from $1,103.2 million as of December 31, 2023, marking a rise of 5.3%[12] - Total assets reached $4,578.0 million as of June 30, 2024, compared to $4,553.9 million at the end of 2023, indicating a slight increase of 0.5%[12] - Total liabilities decreased to $4,157.3 million as of June 30, 2024, from $4,220.5 million at the end of 2023, a reduction of 1.5%[12] - The company’s long-term debt, net, was $2,438.1 million as of June 30, 2024, down from $2,527.0 million at the end of 2023, a decrease of 3.5%[12] - As of June 30, 2024, the Company had total debt of $2,438.1 million, a decrease from $2,527.0 million as of December 31, 2023, representing a reduction of approximately 3.5%[39] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2024, was $280.8 million, up from $250.5 million in 2023, indicating a 12.2% increase[21] - Cash and cash equivalents rose to $95.8 million as of June 30, 2024, up from $74.9 million at the end of 2023, representing an increase of 27.0%[12] - The company’s net cash used in investing activities was $(59.7) million, compared to $(112.3) million in the previous year[21] - Cash used in investing activities decreased by $52.6 million to $59.7 million for the six months ended June 30, 2024, primarily due to reduced capital expenditures[120] Mergers and Acquisitions - The company is pursuing a merger with Mattress Firm Group Inc., which is expected to enhance market share and sales growth, pending regulatory approvals[3] - The company entered into a merger agreement with Mattress Firm valued at approximately $4.0 billion, expected to be funded by $2.7 billion in cash and $1.3 billion in stock[34] - The company anticipates that the acquisition of Mattress Firm will close in late 2024 or early 2025, pending successful litigation outcomes[35] - The company is involved in a pending acquisition of Mattress Firm, which is currently under scrutiny by the FTC, potentially delaying or preventing the acquisition[51][52] Operational Efficiency - Gross profit for Q2 2024 was $554.2 million, up from $542.3 million in Q2 2023, showing a 2.5% increase[64] - Operating income for the North America segment in Q2 2024 was $180.4 million, compared to $174.1 million in Q2 2023, a 1.9% increase[64] - Operating income increased 9.1% to $173.3 million compared to $158.8 million in Q2 2023[82] - Total operating expenses decreased by $3.7 million, or 1.0%, totaling $384.0 million for the quarter[95] - The company has maintained a strong focus on cost management and efficiency improvements to enhance profitability moving forward[138] Market Outlook - The company anticipates continued macroeconomic challenges but expects to outperform the bedding industry due to successful new product launches[78] - The company expects continued growth and operational improvements, driven by strategic initiatives and market expansion efforts[138] Stockholder Returns - The company declared dividends on common stock of $0.26 per share, totaling $45.9 million for the period[17] - The Board of Directors declared a dividend of $0.13 per share for the third quarter of 2024, payable on August 29, 2024[129] - The Company had approximately $774.5 million remaining under its share repurchase authorization as of June 30, 2024, with no shares repurchased during the three and six months ended June 30, 2024[44] Tax and Regulatory - The effective tax rate for the three months ended June 30, 2024, was 24.2%, compared to 25.7% for the same period in 2023[53] - The income tax provision decreased by $2.0 million, with an effective tax rate of 23.0% for the six months ended June 30, 2024, down from 24.1% in the prior year[117]

Core Insights - Tempur Sealy reported disappointing second-quarter results, with sales impacted by macroeconomic pressures on consumers [1][2] - The company adjusted its full-year profit guidance downward, reflecting a challenging market environment [3] - CEO Scott Thompson expressed confidence in overcoming the FTC's challenge regarding the $4 billion acquisition of Mattress Firm [4] Financial Performance - Second-quarter adjusted EPS was $0.63, below analyst expectations, with sales declining 2.8% year-over-year to $1.23 billion [2] - North American sales decreased by 3.8% to $978.4 million, attributed to macroeconomic pressures affecting consumer behavior [3] - Full-year adjusted EPS guidance was revised to a range of $2.45 to $2.65, down from the previous estimate of $2.60 to $2.90 [3] Market Reaction - Following the earnings report, shares of Tempur Sealy initially fell from $48.60 to $45.58 but later rebounded to $48.83 [5] - The stock has experienced a decline of approximately 4% year-to-date in 2024 [5] Regulatory Outlook - CEO Thompson is optimistic about the company's ability to fend off the FTC's challenge to the Mattress Firm acquisition, citing a "pro-competitive rationale" [4] - The company anticipates that the litigation will conclude favorably, allowing the acquisition to close by late 2024 or early 2025 [4]

For the quarter ended June 2024, Tempur Sealy (TPX) reported revenue of $1.23 billion, down 2.8% over the same period last year. EPS came in at $0.63, compared to $0.58 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.27 billion, representing a surprise of -3.07%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.63. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

Tempur Sealy (TPX) came out with quarterly earnings of $0.63 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this mattress maker would post earnings of $0.48 per share when it actually produced earnings of $0.50, delivering a surprise of 4.17%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Tempur Sealy, which belong ...

LEXINGTON, Ky., Aug. 6, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today announced that its Board of Directors has declared a third quarter cash dividend on its common stock of $0.13 per share. The dividend is payable on August 29, 2024, to shareholders of record as of August 15, 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, manufacture ...

- Consolidated Sales Decreased 3%, Direct Channel Sales Increased 1% - Consolidated Gross Margins Expanded 2.2% to 44.9% - Strong EPS Growth of 15% and Adjusted EPS(1) Growth of 9% LEXINGTON, Ky., Aug. 6, 2024 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX) announced financial results for the second quarter ended June 30, 2024 and revised financial guidance for the full year 2024. SECOND QUARTER 2024 FINANCIAL SUMMARY Total net sales decreased 2.8% to $1,233.6 million as compared to $1,269.7 mi ...

Estimate Revisions Trend Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. For the last reported quarter, it was expected that Tempur Sealy would post earnings of $0.48 per share when it actually produced earnings of $0.50, delivering a surprise of +4.17%. The consensus EPS estimate for the quarter has been revised 3.05% lower o ...

Tempur Sealy International, Inc. (NYSE:TPX) Special Call July 8, 2024 8:00 AM ET Good day, everyone and welcome to today's Tempur Sealy International Business Update Call. At this time, all participants are in a listen-only mode. Please note, this call is being recorded. I will be standing by if you should need any assistance. Aubrey Moore - Investor Relations Scott Thompson - Chairman, President & Chief Executive Officer It is now my pleasure to turn the conference over to Aubrey Moore, Investor Relations. ...