Sealy Corporation – ZZ – Solid financial and operational performance in the second quarter of 2012
Sealy Corporation (NYSE: ZZ), a leading global bedding manufacturer, announced results for its second quarter of fiscal 2012.
ZZ – Fiscal 2012 2nd Quarter Recap for Continuing Operations
- Net sales decreased by $9.3 million to $312.0 million, a 2.9% decrease compared to the second quarter of fiscal 2011.
- Gross profit increased by $1.9 million to $127.0 million compared to the second quarter of fiscal 2011. Gross margin increased 1.8 percentage points to 40.7%.
- Income from operations increased by $3.7 million to $26.0 million compared to the second quarter of fiscal 2011.
- Net income from continuing operations was $2.8 million or $0.03 per diluted share, compared to net income from continuing operations of $0.8 million or $0.01 per diluted share in the prior year quarter. The corresponding share counts for 2012 and 2011 second quarter earnings per share were 110.1 million and 107.9 million, respectively. For further information on the calculation of diluted shares, please see the attached Reconciliation of Fully Diluted Sharecount schedule.
- Adjusted EBITDA increased by 9.7% or $3.2 million to $36.0 million compared to the prior year quarter.
“We delivered solid financial and operational performance in the second quarter of 2012,” stated Larry Rogers, Sealy’s President and Chief Executive Officer. ”Our increased gross margin and Adjusted EBITDA performance for the quarter were driven by the successful rollout of our Next Generation Stearns & Foster line, and our strategic commitment to driving profitable sales.”
ZZ – Fiscal 2012 Second Quarter Results
Total U.S. net sales decreased 5.2% to $240.2 million from the second quarter of fiscal 2011. Excluding third party sales from the component plants, wholesale average unit selling price increased 5.4%, while wholesale unit volume decreased 10.4%. The increase in average unit selling price was driven primarily by increases in all major innerspring lines and improved product mix related to the newly introduced Next Generation Stearns & Foster product line. The decrease in unit volume is attributable to relatively lower sales of Posturepedic beds, which grew 14.2% in the prior year quarter.
About Sealy – ZZ
Sealy (ZZ) owns one of the largest bedding brands in the world, with sales of $1.2 billion in fiscal 2011. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy®, Sealy Posturepedic®, Sealy Embody™, Optimum™ by Sealy Posturepedic®, Stearns & Foster®, and Bassett® brands. Sealy operates 25 plants in North America, and has the largest market share and highest consumer awareness of any bedding brand on the continent. In the United States, Sealy sells its products to approximately 3,000 customers with more than 7,000 retail outlets. Sealy is also a leading supplier to the hospitality industry
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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