UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
report (Date of earliest event reported): January 26, 2010
TEMPUR-PEDIC
INTERNATIONAL INC.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
001-31922
|
33-1022198
|
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(I.R.S.
Employer Identification No.)
|
1713
Jaggie Fox Way
Lexington,
Kentucky 40511
(Address
of principal executive offices) (Zip Code)
(800)
878-8889
(Registrant’s
telephone number, including area code)
N/A
(Former
name or former address, if changed since last report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction
A.2. below):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
|
Item
2.02 Results from Operations and Financial
Condition
|
On January
26, 2010, Tempur-Pedic International Inc. issued a press release to announce its
financial results for the quarter and full year ending December 31, 2009 and to
confirm previously announced 2010 guidance for net sales and earnings per share.
Additionally, the Company announced a new stock repurchase authorization for
$100.0 million which replaces a previous authorization. A copy of the press
release is attached as Exhibit 99.1 to this current report on Form 8-K and is
incorporated herein by reference.
The
information in this report (including Exhibit 99.1) shall not be deemed to be
“filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), or otherwise subject to the liability of that
section, and shall not be incorporated by reference into any registration
statement or other document filed under the Securities Act of 1933, as amended,
or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
|
|
Item
7.01 Regulation FD Disclosure
|
|
The
information furnished under Item 2.02 of this Form 8-K (including Exhibit
99.1 furnished herewith) is hereby incorporated by reference under this
Item 7.01 as if fully set forth
herein.
|
Item
9.01 Financial Statements and Exhibits
|
(d)
|
Exhibits
|
|
Exhibit
|
Description
|
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
|
Tempur-Pedic
International Inc.
|
|||
|
Date:
January 26, 2010
|
By:
|
/s/
DALE E. WILLIAMS
|
|
|
Name:
Dale E. Williams
|
|||
|
Title:
Executive Vice President, Chief Financial Officer &
Secretary
|
|||
EXHIBIT
LIST
|
Exhibit
|
Description
|
TEMPUR-PEDIC
REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS
|
|
|
–
Reports Fourth Quarter EPS of
$0.38
|
|
|
|
–
Company Announces $100 Million Share Repurchase
Program
|
LEXINGTON, KY, January 26,
2010 – Tempur-Pedic International Inc. (NYSE: TPX), the leading
manufacturer, marketer and distributor of premium mattresses and pillows
worldwide, today announced financial results for the fourth quarter and year
ended December 31, 2009. The Company also announced a $100 million share
repurchase program and confirmed its financial guidance for 2010.
FOURTH
QUARTER FINANCIAL SUMMARY
|
·
|
Earnings
per share (EPS) were $0.38 per diluted share in the fourth quarter of 2009
as compared to adjusted EPS of $0.17 per diluted share in the fourth
quarter of 2008. GAAP EPS in the fourth quarter of 2008 was $0.01, and
reflects the $11.6 million tax provision related to the Company’s
repatriation of foreign earnings. The Company reported net income of $29.1
million for the fourth quarter of 2009 as compared to adjusted net income
of $12.7 million in the fourth quarter of 2008. GAAP net income in the
fourth quarter of 2008 was $1.1 million. For additional information
regarding adjusted EPS and adjusted net income (which are non-GAAP
measures), please refer to the reconciliation and other information
included in the attached schedule.
|
|
·
|
Net
sales increased 29% to $244.8 million in the fourth quarter of 2009 from
$189.1 million in the fourth quarter of 2008. On a constant currency
basis, net sales increased 24%. Net sales in the domestic segment
increased 40%, while international segment net sales increased 15%. On a
constant currency basis, international segment net sales increased
3%.
|
|
·
|
Mattress
sales increased 26% globally. Mattress sales increased 34% in the domestic
segment and 12% in the international segment. On a constant currency
basis, international mattress sales were essentially unchanged. Pillow
sales increased 23% globally. Pillow sales increased 39% domestically and
13% internationally. On a constant currency basis, international pillow
sales increased 1%.
|
|
·
|
Gross
profit margin was 48.5% as compared to 43.0% in the fourth quarter of
2008. The gross profit margin increased as a result of improved
efficiencies in manufacturing, lower commodity costs, fixed cost leverage
related to higher production volumes and improved pricing, partially
offset by geographic mix and new product
introductions.
|
|
·
|
Operating
profit margin was 19.3% as compared to 13.4% in the fourth quarter of
2008.
|
|
·
|
The
Company generated $14.6 million of operating cash flow in the fourth
quarter of
2009.
|
|
·
|
During
the quarter, the Company reduced Total debt by $17.5 million to $297.5
million. As of December 31, 2009, the Company’s ratio of Funded debt to
EBITDA was 1.68 times, well within the covenant in its credit facility,
which requires that this ratio not exceed 3.00 times. For additional
information about EBITDA and Funded debt (which are non-GAAP measures)
please refer to the reconciliation and other information included in the
attached
schedule.
|
FULL
YEAR 2009 FINANCIAL SUMMARY
|
·
|
Earnings
per share (EPS) were $1.12 per diluted share for the full year 2009 as
compared to adjusted EPS of $0.94 per diluted share for the full year
2008. GAAP EPS was $0.79 for the full year 2008, and includes the $11.6
million tax provision related to the repatriation of foreign
earnings.
|
|
·
|
Net
sales declined 10% to $831.2 million for the full year 2009 from $927.8
million for the full year 2008. On a constant currency basis, net sales
declined 9%. Net sales in the domestic segment declined 8%, while
international segment net sales declined 14%. On a constant currency
basis, international segment net sales declined
11%.
|
|
·
|
Gross
profit margin was 47.4% for the full year 2009 as compared to 43.2% for
the full year 2008. The gross profit margin increased as a result of
improved efficiencies in manufacturing, lower commodity costs, and
improved pricing, partially offset by fixed cost de-leverage related to
lower production
volumes.
|
|
·
|
Operating
profit margin was 17.4% as compared to 14.4% for the full year
2008.
|
|
·
|
For
the full year 2009, the Company lowered Total debt by $121.9 million to
$297.5
million.
|
Chief
Executive Officer Mark Sarvary commented, “Our fourth quarter and full year
results reflect a gradual improvement in the macro environment together with
success from sales and marketing initiatives. Our recent product introductions
and our new advertising campaign combined with continued productivity
improvements should allow us to build on this performance in 2010.”
Chief
Financial Officer Dale Williams commented, “With respect to the authorization of
a new share repurchase program, we note that during 2009 we substantially
reduced both our total debt and leverage ratio. We view share repurchases as an
excellent means to return value to stockholders over the long
term.”
Share
Repurchase Program
The Board
of Directors authorized the repurchase of up to $100 million of shares of the
Company’s common stock. Stock repurchases under this program may be made through
open market transactions, negotiated purchases or otherwise, at times and in
such amounts as management and a committee of the Board deem
appropriate. The timing and actual number of shares repurchased will depend
on a variety of factors including price, financing and regulatory requirements
and other market conditions. Repurchases may also be made under a Rule 10b5-1
plan, which would permit shares to be repurchased when the Company might
otherwise be precluded from doing so under insider trading laws. This share
repurchase program replaces the Company’s prior share repurchase authorization,
and may be limited, suspended or terminated at any time without prior
notice.
Financial
Guidance
The
Company confirmed its full year 2010 guidance for net sales and earnings per
share. It currently expects net sales for 2010 to range from $950 million to
$970 million. It currently expects EPS for 2010 to range from $1.40 to $1.50 per
diluted share. 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 the Company’s control. The Company noted its EPS
guidance does not assume any benefit from a potential reduction in shares
outstanding related to its share repurchase program.
Conference
Call Information
Tempur-Pedic
International will host a live conference call to discuss financial results
today, January 26, 2010 at 5:00 p.m. Eastern Time. The dial-in number for the
conference call is 888-293-6960. The dial-in number for international callers is
719-325-2289. The call is also being webcast and can be accessed on the investor
relations section of the Company's website, http://www.tempurpedic.com.
After the conference call, a webcast replay will remain available on the
investor relations section of the Company’s website for 30 days.
Forward-looking
Statements
This
release contains "forward-looking statements,” within the meaning of 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 "estimates,"
"expects," "anticipates," "projects," "plans," "intends," "believes," and
variations of such words or similar expressions are intended to identify
forward-looking statements. These forward-looking statements include, without
limitation, statements relating to the Company’s expectations for building on
its 2009 performance in 2010, and for net sales and earnings per share for 2010.
All forward looking statements are based upon current expectations and beliefs
and various assumptions. There can be no assurance that the Company will realize
these expectations or that these beliefs will prove correct.
There are
a number of risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements contained in this release.
Numerous factors, many of which are beyond the Company's control, could cause
actual results to differ materially from those expressed as forward-looking
statements. These risk factors include general economic,
financial and industry conditions, particularly in the retail sector,
as well as consumer confidence and the availability of consumer financing;
uncertainties arising from global events; the effects of changes in foreign
exchange rates on the Company’s reported earnings; consumer acceptance of the
Company’s products; industry competition; the efficiency and effectiveness of
the Company’s advertising campaigns and other marketing programs; the Company’s
ability to increase sales productivity within existing retail accounts and to
further penetrate the Company’s domestic retail channel, including the timing of
opening or expanding within large retail accounts; the Company’s ability to
address issues in certain underperforming international markets; the Company’s
ability to continuously improve and expand its product line, maintain efficient,
timely and cost-effective production and delivery of its products, and manage
its growth; changes in foreign tax rates, including the ability to utilize tax
loss carry forwards; and rising commodity costs. Additional information
concerning these and other risks and uncertainties are discussed in the
Company's filings with the Securities and Exchange Commission, including without
limitation the Company's annual report on Form 10-K under the headings "Special
Note Regarding Forward-Looking Statements" and "Risk Factors." Any
forward-looking statement speaks only as of the date on which it is made, and
the Company undertakes no obligation to update any forward-looking statements
for any reason, including to reflect events or circumstances after the date on
which such statements are made or to reflect the occurrence of anticipated or
unanticipated events or circumstances.
About
the Company
Tempur-Pedic
International Inc. (NYSE: TPX) manufactures and distributes mattresses and
pillows made from its proprietary TEMPUR(R) pressure-relieving material. It is
the worldwide leader in premium and specialty sleep. The Company is focused on
developing, manufacturing and marketing advanced sleep surfaces that help
improve the quality of life for people around the world. The Company's products
are currently sold in over 80 countries under the TEMPUR(R) and Tempur-Pedic(R)
brand names. World headquarters for Tempur-Pedic International is in Lexington,
KY. For more information, visit http://www.tempurpedic.com or call
800-805-3635.
Investor
Relations Contact:
Barry
Hytinen
Vice
President, Investor Relations and Financial Planning & Analysis
800-805-3635
TEMPUR-PEDIC
INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated
Statements of Income
(In
thousands, except per common share amounts)
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||
|
December
31,
|
December
31,
|
||||||||||||||
|
2009
|
2008
|
Chg
%
|
2009
|
2008
|
Chg
%
|
||||||||||
|
Net
sales
|
$
|
244,794
|
$
|
189,121
|
29%
|
$
|
831,156
|
$
|
927,818
|
(10%)
|
|||||
|
Cost
of sales
|
125,953
|
107,752
|
437,414
|
526,861
|
|||||||||||
|
Gross
profit
|
118,841
|
81,369
|
46%
|
393,742
|
400,957
|
(2%)
|
|||||||||
|
Selling
and marketing expenses
|
45,105
|
34,444
|
153,440
|
172,350
|
|||||||||||
|
General,
administrative and other expenses
|
26,510
|
21,604
|
95,357
|
94,743
|
|||||||||||
|
Operating
income
|
47,226
|
25,321
|
87%
|
144,945
|
133,864
|
8%
|
|||||||||
|
Other
expense, net:
|
|||||||||||||||
|
Interest
expense, net
|
(3,990
|
)
|
(5,493
|
)
|
(17,349
|
)
|
(25,123
|
)
|
|||||||
|
Other
income (expense), net
|
37
|
(324
|
)
|
441
|
(1,319
|
)
|
|||||||||
|
Total
other expense
|
(3,953
|
)
|
(5,817
|
)
|
(16,908
|
)
|
(26,442
|
)
|
|||||||
|
Income
before income taxes
|
43,273
|
19,504
|
122%
|
128,037
|
107,422
|
19%
|
|||||||||
|
Income
tax provision
|
14,159
|
18,449
|
43,044
|
48,554
|
|||||||||||
|
Net
income
|
$
|
29,114
|
$
|
1,055
|
2,660%
|
$
|
84,993
|
$
|
58,868
|
44%
|
|||||
|
Earnings
per common share:
|
|||||||||||||||
|
Basic
|
$
|
0.39
|
$
|
0.01
|
$
|
1.13
|
$
|
0.79
|
|||||||
|
Diluted
|
$
|
0.38
|
$
|
0.01
|
$
|
1.12
|
$
|
0.79
|
|||||||
|
Weighted
average common shares outstanding:
|
|||||||||||||||
|
Basic
|
75,029
|
74,833
|
74,934
|
74,737
|
|||||||||||
|
Diluted
|
77,028
|
74,920
|
76,048
|
74,909
|
|||||||||||
TEMPUR-PEDIC
INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated
Balance Sheets
(In
thousands)
|
December
31,
|
December
31,
|
||||||
|
2009
|
2008
|
||||||
|
ASSETS
|
|||||||
|
Current
Assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
14,042
|
$
|
15,385
|
|||
|
Accounts
receivable, net
|
105,576
|
99,811
|
|||||
|
Inventories
|
57,686
|
60,497
|
|||||
|
Prepaid
expenses and other current assets
|
11,268
|
9,233
|
|||||
|
Deferred
income taxes
|
20,411
|
11,888
|
|||||
|
Total
Current Assets
|
208,983
|
196,814
|
|||||
|
Property,
plant and equipment, net
|
172,497
|
185,843
|
|||||
|
Goodwill
|
193,391
|
192,569
|
|||||
|
Other
intangible assets, net
|
64,717
|
66,823
|
|||||
|
Other
non-current assets
|
3,791
|
4,482
|
|||||
|
Total
Assets
|
$
|
643,379
|
$
|
646,531
|
|||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
|
Current
Liabilities:
|
|||||||
|
Accounts
payable
|
$
|
47,761
|
$
|
41,355
|
|||
|
Accrued
expenses and other current liabilities
|
81,452
|
65,316
|
|||||
|
Income
taxes payable
|
7,312
|
7,783
|
|||||
|
Total
Current Liabilities
|
136,525
|
114,454
|
|||||
|
Long-term
debt
|
297,470
|
419,341
|
|||||
|
Deferred
income taxes
|
29,865
|
28,371
|
|||||
|
Other
non-current liabilities
|
7,226
|
11,922
|
|||||
|
Total
Liabilities
|
471,086
|
574,088
|
|||||
|
Stockholders’
Equity:
|
|||||||
|
Common
stock, $.01 par value; 300,000 shares authorized;
99,215 shares issued as of December 31, 2009 and 2008,
respectively
|
992
|
992
|
|||||
| Additional paid in capital | 298,842 | 291,018 | |||||
| Retained earnings | 365,727 | 281,422 | |||||
| Accumulated other comprehensive loss | (8,004 | ) | (12,590 | ) | |||
| Treasury stock at cost; 24,103 and 24,382 shares as of December 31, 2009 and 2008, respectively | (485,264 | ) | (488,399 | ) | |||
|
Total
Stockholders’ Equity
|
172,293
|
72,443
|
|||||
|
Total
Liabilities and Stockholders’ Equity
|
$
|
643,379
|
$
|
646,531
|
|||
TEMPUR-PEDIC
INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(In
thousands)
|
Twelve
Months Ended
|
|||||||
|
December
31,
|
|||||||
|
2009
|
2008
|
||||||
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
|
Net
income
|
$
|
84,993
|
$
|
58,868
|
|||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
|
Depreciation
and amortization
|
31,424
|
32,756
|
|||||
|
Amortization
of stock-based compensation
|
8,789
|
8,041
|
|||||
|
Amortization
of deferred financing costs
|
692
|
1,060
|
|||||
|
Bad
debt expense
|
5,936
|
8,110
|
|||||
|
Deferred
income taxes
|
(9,810
|
)
|
2,423
|
||||
|
Foreign
currency adjustments
|
(115
|
)
|
(1,183)
|
||||
|
Loss
on sale of equipment and other
|
564
|
666
|
|||||
|
Changes
in operating assets and liabilities:
|
|||||||
|
Accounts
receivable
|
(10,542
|
)
|
51,231
|
||||
|
Inventories
|
3,738
|
45,758
|
|||||
|
Prepaid
expenses and other current assets
|
(1,884
|
)
|
1,695
|
||||
|
Accounts
payable
|
7,808
|
(15,676
|
)
|
||||
|
Accrued
expenses and other
|
14,044
|
535
|
|||||
|
Income
taxes payable
|
(651
|
)
|
4,110
|
||||
|
Net
cash provided by operating activities
|
134,986
|
198,394
|
|||||
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
|
Purchases
of property, plant and equipment
|
(14,303
|
)
|
(10,494
|
)
|
|||
|
Acquisition
of business, net of cash acquired
|
—
|
(1,529
|
)
|
||||
|
Proceeds
from escrow settlement
|
—
|
7,141
|
|||||
|
Other
|
—
|
(486
|
)
|
||||
|
Net
cash used by investing activities
|
(14,303
|
)
|
(5,368
|
)
|
|||
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
|
Proceeds
from long-term revolving credit facility
|
109,333
|
127,383
|
|||||
|
Repayments
of long-term revolving credit facility
|
(230,036
|
)
|
(251,536
|
)
|
|||
|
Repayments
of long-term debt
|
—
|
(1,359
|
)
|
||||
|
Repayment
of Series A Industrial Revenue Bonds
|
—
|
(57,785
|
)
|
||||
|
Proceeds
from issuance of common stock
|
1,623
|
695
|
|||||
|
Excess
tax benefit from stock based compensation
|
359
|
399
|
|||||
|
Dividend
paid to stockholders
|
—
|
(17,933
|
)
|
||||
|
Other
|
—
|
(14
|
)
|
||||
|
Net
cash used by financing activities
|
(118,721
|
)
|
(200,150)
|
||||
|
NET
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
(3,305
|
)
|
(10,806
|
)
|
|||
|
Decrease
in cash and cash equivalents
|
(1,343)
|
(17,930)
|
|||||
|
CASH
AND CASH EQUIVALENTS, beginning of period
|
15,385
|
33,315
|
|||||
|
CASH
AND CASH EQUIVALENTS, end of period
|
$
|
14,042
|
$
|
15,385
|
|||
Summary
of Channel Sales
The
Company generates sales through four distribution channels: retail, direct,
healthcare and third party. The retail channel sells to furniture,
specialty and department stores globally. The direct channel sells
directly to consumers. The healthcare channel sells to hospitals,
nursing homes, healthcare professionals and medical retailers. The
third party channel sells to distributors in countries where Tempur-Pedic
International does not operate its own distribution company.
The
following table highlights net sales information, by channel and by segment, for
the fourth quarter of 2009 compared to 2008:
|
(In
thousands)
|
||||||||||||||||||||||||
|
CONSOLIDATED
|
DOMESTIC
|
INTERNATIONAL
|
||||||||||||||||||||||
|
Three
Months Ended
|
Three
Months Ended
|
Three
Months Ended
|
||||||||||||||||||||||
|
December
31,
|
December
31,
|
December
31,
|
||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
|
Retail
|
$ | 205,184 | $ | 157,652 | $ | 130,808 | $ | 93,332 | $ | 74,376 | $ | 64,320 | ||||||||||||
|
Direct
|
16,719 | 10,098 | 14,777 | 8,496 | 1,942 | 1,602 | ||||||||||||||||||
|
Healthcare
|
10,047 | 10,638 | 2,840 | 3,226 | 7,207 | 7,412 | ||||||||||||||||||
|
Third
Party
|
12,844 | 10,733 | 3,444 | 3,342 | 9,400 | 7,391 | ||||||||||||||||||
|
Total
|
$ | 244,794 | $ | 189,121 | $ | 151,869 | $ | 108,396 | $ | 92,925 | $ | 80,725 | ||||||||||||
Summary
of Product Sales
A summary
of net sales by product is reported below:
|
(In
thousands)
|
||||||||||||||||||||||||
|
CONSOLIDATED
|
DOMESTIC
|
INTERNATIONAL
|
||||||||||||||||||||||
|
Three
Months Ended
|
Three
Months Ended
|
Three
Months Ended
|
||||||||||||||||||||||
|
December
31,
|
December
31,
|
December
31,
|
||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
|
Mattresses
|
$ | 156,665 | $ | 124,755 | $ | 101,792 | $ | 75,695 | $ | 54,873 | $ | 49,060 | ||||||||||||
|
Pillows
|
32,079 | 25,990 | 14,724 | 10,591 | 17,355 | 15,399 | ||||||||||||||||||
|
Other
|
56,050 | 38,376 | 35,353 | 22,110 | 20,697 | 16,266 | ||||||||||||||||||
|
Total
|
$ | 244,794 | $ | 189,121 | $ | 151,869 | $ | 108,396 | $ | 92,925 | $ | 80,725 | ||||||||||||
TEMPUR-PEDIC
INTERNATIONAL INC. AND SUBSIDIARIES
Reconciliation
of Adjusted Net income, Adjusted Earnings per share,
EBITDA
to Net Income and Funded debt to Total debt
Non-GAAP
Measures
(In
thousands, except per common share amounts)
The
Company provides information regarding Adjusted Net income, Adjusted Earnings
per share, EBITDA and Funded debt which are not recognized terms under GAAP
(Generally Accepted Accounting Principles) and do not purport to be alternatives
to Net income as a measure of operating performance or Total debt. Because not
all companies use identical calculations, these presentations may not be
comparable to other similarly titled measures of other companies. A
reconciliation of Adjusted Net income, Adjusted Earnings per share and EBITDA to
the Company’s Net income and Earnings per share and a reconciliation of Funded
debt to Total debt are provided below. Management believes that the use of these
non-GAAP financial measures provides investors with additional useful
information with respect to the impact of the repatriation of foreign earnings.
Management also believes that the use of EBITDA and Funded debt provides
investors with useful information with respect to the terms of the Company’s
credit facility.
Reconciliation
of Adjusted Net income to Net income
The
following table sets forth the reconciliation of the Company’s reported Net
income for the twelve months ended December 31, 2008 to the calculation of
Adjusted Net income for the three and twelve months ended December 31,
2008:
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||
|
December
31, 2008
|
December
31, 2008
|
|||||||
|
GAAP
Net income
|
$ | 1,055 | $ | 58,868 | ||||
|
Plus:
|
||||||||
|
Tax
provision related to repatriation
of foreign earnings
|
11,631 | 11,631 | ||||||
|
Adjusted
Net income
|
$ | 12,686 | $ | 70,499 | ||||
|
GAAP
Earnings per share, diluted
|
$ | 0.01 | $ | 0.79 | ||||
|
Tax
provision related to repatriation
of foreign earnings
|
0.16 | 0.15 | ||||||
|
Adjusted
Earnings per share, diluted
|
$ | 0.17 | $ | 0.94 | ||||
Reconciliation
of EBITDA to Net income
The
following table sets forth the reconciliation of the Company’s reported Net
income to the calculation of EBITDA for the twelve months ended December 31,
2009:
|
Twelve
Months Ended
|
||||
|
December
31, 2009
|
||||
|
GAAP
Net income
|
$ | 84,993 | ||
|
Plus:
|
||||
|
Interest
expense
|
17,349 | |||
|
Income
taxes
|
43,044 | |||
|
Depreciation
& amortization
|
40,213 | |||
|
EBITDA
|
$ | 185,599 | ||
Reconciliation
of Funded debt to Total debt
The
following table sets forth the reconciliation of the Company’s reported Total
debt to the calculation of Funded debt as of December 31, 2009:
|
As
of
|
||||
|
December
31, 2009
|
||||
|
GAAP
basis Total debt
|
$ | 297,470 | ||
|
Plus:
|
||||
|
Letters
of credit outstanding
|
14,048 | |||
|
Funded
debt
|
$ | 311,518 | ||
Calculation
of Funded debt to EBITDA
|
As
of
|
||||
|
December
31, 2009
|
||||
|
Funded
debt
|
$ | 311,518 | ||
|
EBITDA
|
185,599 | |||
|
1.68
times
|
||||