Mohawk(MHK)2025-02-06 21:16Financial Performance - Fourth quarter 2024 net earnings were $93 million, with an EPS of $1.48; adjusted net earnings were $123 million, and adjusted EPS was $1.95[2] - For the year ended December 31, 2024, net sales were $10.8 billion, a decrease of 2.7% compared to the prior year; adjusted net earnings were $617 million, and adjusted EPS was $9.70[3] - Consolidated net sales for the three months ended December 31, 2024, were $2,637.2 million, slightly up from $2,612.3 million in the same period of 2023[22] - Adjusted net sales for the three months ended December 31, 2024, were $2,585.7 million, after adjustments for constant shipping days and exchange rates[26] - Adjusted diluted earnings per share for the twelve months ended December 31, 2024, increased to $9.70 from $9.19 in 2023, representing a growth of 5.5%[23] Segment Performance - The Global Ceramic Segment's net sales increased by 1.5% as reported, with an operating margin of 3.4%[8] - Flooring North America Segment's net sales increased by 2.8% as reported, with an operating margin of 4.5%[10] - Global Ceramic segment adjusted operating income increased to $53.5 million, up from $48.0 million, marking a growth of 10.4%[30] - Flooring North America segment operating income fell to $42.2 million from $74.6 million, a decline of 43.4%[30] - Flooring ROW segment adjusted operating income decreased to $68.9 million from $74.6 million, a drop of 7.6%[31] Cash Flow and Liquidity - The company generated free cash flow of $680 million and repurchased 1.3 million shares for $161 million[7] - Net cash provided by operating activities for the three months ended December 31, 2024, was $397.0 million, an increase from $296.3 million in the same period of 2023[19] - Free cash flow for the twelve months ended December 31, 2024, was $679.5 million, compared to $716.3 million in 2023, reflecting a decrease of 5.5%[19] - The company ended 2024 with available liquidity of approximately $1.6 billion and a debt leverage of 1.1 times[7] Cost and Expenses - Selling, general and administrative expenses for the three months ended December 31, 2024, were $491.8 million, up from $473.6 million in 2023, reflecting an increase of 3.0%[29] - Adjusted operating income for Mohawk Consolidated was $159.8 million, down from $175.4 million year-over-year, representing a decrease of 8.9%[30] - Adjusted operating income as a percent of net sales for Mohawk Consolidated was 6.1%, down from 6.7% in the previous year[30] Tax and Liabilities - Income tax expense increased to $18.3 million from $14.2 million, an increase of 28.8%[33] - Adjusted income tax expense was $26.6 million, down from $33.9 million, a decrease of 21.5%[33] - Total liabilities reduced to $5,221.7 million as of December 31, 2024, down from $5,930.7 million in 2023, indicating a decrease of about 12%[21] Future Outlook - Restructuring actions are expected to generate annualized savings of approximately $285 million by 2026[11] - The first quarter adjusted EPS guidance is projected to be between $1.34 and $1.44, including an estimated impact of $0.35 due to system issues[12] - The U.S. dollar's strength is expected to negatively impact translated results in 2025[12]