Leggett & Platt(LEG) - 2024 Q4 - Annual Results

Sales Performance - 2024 sales were $4.4 billion, a 7% decrease compared to 2023[6] - Fourth quarter sales were$ 1.1 billion, a 5% decrease versus fourth quarter last year[5] - Trade sales decreased by 5% in Q4 2024 compared to Q4 2023, totaling $1,056.4 million, and decreased by 7% year-to-date, totaling$ 4,383.6 million[34] - Trade sales for Bedding Products decreased by 6% in Q4 2024 compared to Q4 2023, totaling $420.2 million, and year-to-date sales fell by 11% to$ 1,751.7 million[35] - In 2023, the company reported trade sales of $4,725.3 million, while the forecast for 2024 is$ 4,383.6 million, indicating a decline of approximately 7.2%[38] Earnings and Profitability - 2024 adjusted EPS was $1.05, down$ 0.34 versus 2023 adjusted EPS[14] - 2024 EBIT was a loss of $430 million, down$ 340 million from 2023 EBIT[13] - Fourth quarter EBIT was $44 million, up from a loss of$ 367 million in fourth quarter 2023[8] - Net earnings attributable to Leggett & Platt for Q4 2024 were $14.2 million, a significant recovery from a loss of$ 297.3 million in Q4 2023, while year-to-date net loss was $511.5 million compared to a loss of$ 136.8 million in 2023[34] - Adjusted EBIT decreased by $6 million in the Bedding Products segment, primarily due to lower volume and raw material-related pricing adjustments[28] - The company recorded a$ 588 million non-cash goodwill impairment charge in 2024, contributing to a $205 million decrease in EBIT for the Specialized Products segment[28] - Adjusted EBIT for the total company dropped by 16% in Q4 2024, amounting to$ 55.6 million, with an adjusted EBIT margin of 5.3%, down from 5.9% in Q4 2023[35] - The company experienced a 51% decrease in adjusted EBIT for Bedding Products year-to-date, falling to $45.4 million[35] - The adjusted EBIT for 2023 was$ 333.5 million, with a projected decrease to $266.5 million in 2024, reflecting a decline of about 20.1%[38] - The adjusted EBIT margin for 2023 was 7.1%, projected to decrease to 6.1% in 2024, indicating a decline in operational efficiency[38] Cash Flow and Debt - Operating cash flow was$ 306 million, a decrease of $191 million versus 2023[21] - Debt at December 31 was$ 1.9 billion, with a reduction of $126 million in 2024[18] - Long-term debt increased by 11% from$ 1,679.6 million in 2023 to $1,862.8 million in 2024[34] - Cash and equivalents decreased from$ 365.5 million in 2023 to $350.2 million in 2024[34] - Long-term debt to adjusted EBITDA ratio was reported at 3.76, indicating a stable leverage position[36] - The net debt to adjusted EBITDA ratio increased from 3.16 in 2023 to 3.76 in 2024, suggesting a higher leverage position[38] - The company reported a net debt of$ 1,622.1 million in 2023, which is expected to decrease to $1,513.9 million in 2024[38] Future Outlook - 2025 guidance expects sales of$ 4.0– $4.3 billion, with EPS of$ 0.83– $1.24[6] - Anticipated cash proceeds from real estate sales related to restructuring are expected to be$ 15– $40 million in 2025[21] - Management will host a conference call on February 14, 2025, to discuss the financial results and future outlook[29] Operational Efficiency - The company plans to continue focusing on operational efficiency improvements and disciplined cost management to mitigate the impact of raw material price fluctuations[32] - The company incurred restructuring and impairment charges totaling$ 49.8 million in 2024, impacting overall profitability[38] Asset Management - Total assets decreased by 21% from $4,634.5 million in 2023 to$ 3,661.6 million in 2024, with total current assets down 10%[34] - The company recorded a gain on the sale of real estate of $(30.9) million in 2024, which may affect cash flow and liquidity[39]