Tempur Sealy Provides Improved Second Quarter Expectations
Additionally, the Company now expects in the second quarter to achieve at least
Tempur Sealy Chairman and CEO Scott Thompson commented, "This has been a very difficult period to forecast as shelter-in-place orders and other COVID-19 related issues impact the bedding market. But there is no question that post-April order trends have been strong. Internationally, trends have improved as the majority of our markets have returned to growth. Additionally, I am pleased to highlight that in the
Thompson continued, "Our flexible operating model has quickly adjusted to the improved trends and increased volume. In the
The Company noted its expectations are based on information available at the time of this release, and are subject to changing conditions, many of which are outside of the Company's control. The Company also noted that it was providing this update due to the unusual circumstances resulting from the COVID-19 pandemic and related economic downturn. The Company is not adopting any policy or practice of providing any mid-quarter updates on net sales, monthly net sales, unadjusted EBITDA, ratio of consolidated indebtedness less netted cash to adjusted EBITDA, operating cash or other aspects of its financial performance.
Non-GAAP Financial Measures
Unadjusted EBITDA and ratio of consolidated indebtedness less netted cash to adjusted EBITDA are non-GAAP financial measures. Amounts shown for the Company's second quarter 2020 financial targets represent management estimates of performance based on the Company's guidance provided on the date of this press release. The Company notes that it is unable to reconcile forward-looking unadjusted EBITDA to GAAP net income, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP net income in the second quarter of 2020 but would not impact unadjusted EBITDA. These items that impact comparability may include income taxes and other items. For additional information regarding unadjusted EBITDA and the Company's ratio of consolidated indebtedness less netted cash to adjusted EBITDA, please refer to the Company's press release dated
This press release may be deemed to include statements that are "forward-looking" within the meaning of the federal securities laws, which include information concerning one or more of the Company's plans, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "expects", "estimates", "believes" and variations of such words or similar expressions are intended to identify such statements. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. These forward-looking statements include, without limitation, statements relating to the Company's expectations regarding net sales, unadjusted EBITDA, ratio of consolidated indebtedness less netted cash to adjusted EBITDA, operating cash and performance generally for the second quarter of 2020 and subsequent periods and the Company's expectations for emerging from the market downturn. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct.
Numerous factors, many of which are beyond the Company's control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These risk factors include the duration, scope and severity of COVID-19 and its effects on the Company's business and operations, including the disruption or delay of production and delivery of materials and products in the Company's supply chain; the impact of the macroeconomic environment in both the
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