2024 Q2 Form 10-Q Financial Statement

#000005849224000338 Filed on May 08, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q4
Revenue $1.129B $1.097B $1.115B
YoY Change -7.58% -10.58% -6.75%
Cost Of Revenue $942.1M $910.5M $915.3M
YoY Change -5.8% -8.49% -7.1%
Gross Profit $186.5M $186.4M $199.8M
YoY Change -15.65% -14.73% -5.13%
Gross Profit Margin 16.52% 16.99% 17.92%
Selling, General & Admin $131.5M $125.9M $121.1M
YoY Change 10.32% 8.53% 10.29%
% of Gross Profit 70.51% 67.54% 60.61%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $32.60M $4.900M $17.40M
YoY Change 94.05% -89.21% 3.57%
% of Gross Profit 17.48% 2.63% 8.71%
Operating Expenses $131.5M $123.4M $566.6M
YoY Change 4.86% 6.38% 374.54%
Operating Profit $55.00M $63.00M -$366.8M
YoY Change -42.53% -38.6% -502.19%
Interest Expense $22.40M -$20.60M -$19.50M
YoY Change -201.82% -193.21% -12.16%
% of Operating Profit 40.73% -32.7%
Other Income/Expense, Net
YoY Change
Pretax Income -$634.3M $42.40M -$386.3M
YoY Change -960.65% -37.92% -659.86%
Income Tax -$32.20M $10.80M -$88.90M
% Of Pretax Income 25.47%
Net Earnings -$602.2M $31.60M -$297.3M
YoY Change -1211.07% -40.93% -663.07%
Net Earnings / Revenue -53.36% 2.88% -26.66%
Basic Earnings Per Share -$4.39 $0.23
Diluted Earnings Per Share -$4.39 $0.23 -$2.18
COMMON SHARES
Basic Shares Outstanding 134.0M shares 133.7M shares 133.3M shares
Diluted Shares Outstanding 137.3M shares 137.3M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $307.0M $361.3M $365.5M
YoY Change 12.7% 4.88% 15.48%
Cash & Equivalents $307.0M $361.3M $365.5M
Short-Term Investments
Other Short-Term Assets $77.50M $56.50M $58.90M
YoY Change 6.31% -4.88% -0.17%
Inventory $755.4M $807.4M $819.7M
Prepaid Expenses
Receivables $593.0M $577.4M $637.3M
Other Receivables $55.70M $57.70M $0.00
Total Short-Term Assets $1.789B $1.860B $1.881B
YoY Change -6.15% -7.67% -3.91%
LONG-TERM ASSETS
Property, Plant & Equipment $756.6M $974.3M $974.4M
YoY Change -24.43% 23.86% 26.15%
Goodwill $804.1M $1.482B $1.490B
YoY Change -45.56% 0.54% 1.04%
Intangibles $156.1M $161.8M $167.5M
YoY Change -75.79% -75.5% -75.2%
Long-Term Investments
YoY Change
Other Assets $141.2M $136.8M $121.4M
YoY Change 22.25% 20.53% 9.47%
Total Long-Term Assets $2.050B $2.755B $2.753B
YoY Change -36.69% -15.38% -14.71%
TOTAL ASSETS
Total Short-Term Assets $1.789B $1.860B $1.881B
Total Long-Term Assets $2.050B $2.755B $2.753B
Total Assets $3.839B $4.615B $4.635B
YoY Change -25.38% -12.43% -10.64%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $521.8M $495.6M $536.2M
YoY Change 2.84% -10.25% 3.43%
Accrued Expenses $239.7M $58.00M $57.30M
YoY Change 325.75% -75.61% -78.1%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $301.0M $303.8M $308.0M
YoY Change 3570.73% 3313.48% 3176.6%
Total Short-Term Liabilities $1.168B $1.188B $1.263B
YoY Change 22.22% 22.68% 30.42%
LONG-TERM LIABILITIES
Long-Term Debt $1.702B $1.773B $1.680B
YoY Change -15.59% -15.93% -19.02%
Other Long-Term Liabilities $90.40M $158.5M $150.5M
YoY Change -45.93% 22.11% 19.35%
Total Long-Term Liabilities $2.003B $1.931B $1.830B
YoY Change -8.29% -26.68% -28.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.168B $1.188B $1.263B
Total Long-Term Liabilities $2.003B $1.931B $1.830B
Total Liabilities $3.171B $3.325B $3.301B
YoY Change -8.78% -7.7% -6.89%
SHAREHOLDERS EQUITY
Retained Earnings $2.019B $2.630B $2.661B
YoY Change -33.38% -13.49% -12.64%
Common Stock $573.8M $571.0M $575.8M
YoY Change 0.28% 0.55% 1.28%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $667.6M $1.290B $1.334B
YoY Change
Total Liabilities & Shareholders Equity $3.839B $4.615B $4.635B
YoY Change -25.38% -12.43% -10.64%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q4
OPERATING ACTIVITIES
Net Income -$602.2M $31.60M -$297.3M
YoY Change -1211.07% -40.93% -663.07%
Depreciation, Depletion And Amortization $32.60M $4.900M $17.40M
YoY Change 94.05% -89.21% 3.57%
Cash From Operating Activities $94.00M -$6.100M $146.1M
YoY Change -15.01% -106.31% -40.87%
INVESTING ACTIVITIES
Capital Expenditures $15.50M $25.90M $23.40M
YoY Change -49.18% -31.3% -32.76%
Acquisitions
YoY Change
Other Investing Activities $7.300M -$300.0K $9.500M
YoY Change 69.77% -62.5% -145.24%
Cash From Investing Activities -$8.200M -$10.40M -$13.90M
YoY Change -68.7% -71.43% -75.09%
FINANCING ACTIVITIES
Cash Dividend Paid $61.30M
YoY Change 5.15%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -135.2M $18.10M -48.00M
YoY Change -9.44% -150.84% -55.1%
NET CHANGE
Cash From Operating Activities 94.00M -$6.100M 146.1M
Cash From Investing Activities -8.200M -$10.40M -13.90M
Cash From Financing Activities -135.2M $18.10M -48.00M
Net Change In Cash -49.40M -$4.200M 84.20M
YoY Change -23.88% -115.0% -0.24%
FREE CASH FLOW
Cash From Operating Activities $94.00M -$6.100M $146.1M
Capital Expenditures $15.50M $25.90M $23.40M
Free Cash Flow $78.50M -$32.00M $122.7M
YoY Change -2.0% -154.24% -42.2%

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Interim Presentation<div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The interim financial statements of Leggett &amp; Platt, Incorporated (we, us, or our) included herein have not been audited by an independent registered public accounting firm. The statements include all adjustments, including normal recurring accruals, which management considers necessary for a fair statement of our financial position and operating results for the periods presented. We have prepared the statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The operating results for interim periods are not necessarily indicative of results to be expected for an entire year.</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The December 31, 2023 financial position data included herein was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP.</span></div><div style="margin-top:9pt;text-indent:14.4pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Accounts Receivable and Accounts Payable Programs</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We participate in trade receivables sales programs in combination with third-party banking institutions and certain customers. Under each of these programs, we sell our entire interest in the trade receivable for 100% of face value, less a discount. Because control of the sold receivable is transferred to the buyer at the time of sale, accounts receivable balances sold are removed from the Consolidated Condensed Balance Sheets and the related proceeds are reported as cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. We had approximately $50.0 and $60.0 of trade receivables that were sold and removed from our balance sheets at March 31, 2024 and December 31, 2023, respectively.</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We sometimes utilize third-party programs that allow our suppliers to be paid earlier at a discount. While these programs assist us in negotiating payment terms with our suppliers, we continue to make payments based on our customary terms. A supplier can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. The accounts payable associated with the third-party programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $100.0 at March 31, 2024 and $105.0 at December 31, 2023.</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The above items encompass multiple individual programs that are utilized as tools in our cash flow management, and we offer them as options to facilitate customer and vendor operating cycles. Because many of these programs operate independently, and a cessation of all these programs at the same time is not reasonably likely, we do not expect changes in these programs to have a material impact on our operating cash flows or liquidity.</span></div><div style="margin-top:9pt;text-indent:14.4pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">New Accounting Guidance</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Financial Accounting Standards Board (FASB) regularly issues updates to the FASB Accounting Standards Codification that are communicated through issuance of an Accounting Standards Update (ASU). Below is a summary of the ASUs effective for future periods that are most relevant to our financial statements:</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;text-decoration:underline">To be adopted in future years</span></div><div style="margin-top:5pt;padding-left:49.5pt;text-indent:-9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:5.5pt">ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”: This ASU requires additional disclosures about reportable segments' expenses and other items on an interim and annual basis. This guidance will be effective for annual periods beginning January 1, 2024, and interim periods beginning January 1, 2025. We are currently evaluating the impact of adopting this guidance. </span></div><div style="margin-top:5pt;padding-left:49.5pt;text-indent:-9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:5.5pt">ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”: This ASU requires disclosure of specific categories in the rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance will be effective for annual periods beginning January 1, 2025. We are currently evaluating the impact of adopting this guidance.</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The FASB has issued accounting guidance, in addition to the issuances discussed above, effective for current and future periods. This guidance did not have a material impact on our current financial statements, and we do not believe it will have a material impact on our future financial statements.</span></div>
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