Printer Friendly

MOHAWK INDUSTRIES ANNOUNCES RECORD THIRD QUARTER EARNINGS UP 83 PERCENT

MOHAWK INDUSTRIES ANNOUNCES RECORD THIRD QUARTER EARNINGS UP 83 PERCENT
 ATLANTA, Oct. 5 /PRNewswire/ -- Mohawk Industries, Inc. (NASDAQ-NMS: MOHK) today announced that it achieved an all-time record high in net earnings for the third quarter ended Sept. 26.
 This was the sixth consecutive quarter of improvement in earnings before extraordinary charge compared to the corresponding quarter of the prior year. Net earnings after preferred stock dividends, for the third quarter of $4,308,000 were the highest of any quarter in the history of the company and were 83 percent ahead of last year's earnings of $2,357,000. Earnings per common share were $0.41 compared to $0.32 last year.
 For the first nine months of the year, net earnings before a one- time extraordinary charge of $3,473,000, but after preferred stock dividends, were a record $7,355,000 or $0.78 per common share, which compares to $2,960,000 or $0.39 per common share last year. After the extraordinary charge, earnings per share for the nine months were $0.41 per share.
 Net sales for the quarter were essentially flat at $77,814,000 compared to $77,497,000 for the third quarter of 1991. Net sales for the nine months increased 6.8 percent to $219.8 million vs. $205.8 million for the same period a year ago.
 Mohawk became a publicly traded company through an initial public offering in April 1992. During the second quarter, Mohawk recorded an extraordinary charge of $3,473,000 (net of taxes of $1,447,000) relating to a prepayment penalty for the redemption of senior subordinated debentures ($1.8 million), junior subordinated debentures ($200,000) and indebtedness under the company's former credit agreement ($300,000). Also included in the extraordinary charge was a write-off ($2.6 million) of deferred loan costs associated with the repayment or redemption of indebtedness under the company's former credit arrangement.
 As previously announced, on July 29, Mohawk and Horizon Industries, Inc. (NASDAQ-NMS: HRZN) signed an Agreement and Plan of Merger for the acquisition of Horizon by Mohawk. Under the terms of the merger agreement, each holder of an outstanding share of Horizon common stock will receive $15.00 in value through a combination of cash and Mohawk common stock. The acquisition, which is expected to be consummated in late October 1992, is subject to customary closing conditions, including approval of the shareholders of Horizon. The special meeting of Horizon shareholders to vote on the acquisition has been scheduled for Oct. 23.
 Horizon, headquartered in Calhoun, Ga., manufactures a broad range of residential and commercial carpet which is marketed worldwide. Its subsidiary, The Harbinger Company, Inc., produces specialized lines of commercial carpet, and a uniquely styled collection of wool and nylon carpets and rugs. For the nine months ended June 27, Horizon reported unaudited results showing net sales of $232.1 million and net income of $2.4 million, or $0.43 per share.
 In commenting on Mohawk's performance and the pending acquisition, David L. Kolb, chairman and CEO, stated: "We are very pleased with the third quarter results and the potential represented by the combination of Horizon and Mohawk. Although the economy remains sluggish, Mohawk's results were again encouraging, demonstrating our commitment to satisfying our customers' needs while controlling costs. We believe that our marketing and operating strategies continue to gain market share and that the addition of Horizon will prove highly beneficial to the continued growth and success of the company. Upon completion of the acquisition, we will be one of the three largest producers of carpet in the United States and in the world."
 MOHAWK INDUSTRIES, INC.
 Statement of Operations Data
 (Dollars in thousands, except per share data)
 3 mos. ended 9 mos. ended
 (Unaudited) 9/26/92 9/28/91 9/26/92 9/28/91
 Net sales $77,814 $77,497 $219,819 $205,818
 Costs and expenses 70,675 73,317 207,341 200,101
 Earnings before taxes and
 extraordinary charge 7,139 4,180 12,478 5,717
 Net earnings before extraordinary
 charge 4,308 2,506 7,487 3,429
 Extraordinary charge, net of
 taxes of $1,447 --- --- 3,473 ---
 Net earnings $ 4,308 $ 2,506 $ 4,014 $ 3,429
 Preferred stock dividend --- 149 132 469
 Net earnings after preferred
 stock dividends $ 4,308 $ 2,357 $ 3,882 $ 2,960
 Earnings per share data adjusted for dividends on preferred
 stock:
 Net earnings before extraordinary
 charge $ 0.41 $ 0.32 $ 0.78 $ 0.39
 Net earnings per share of
 common stock $ 0.41 $ 0.32 $ 0.41 $ 0.39
 Weighted average shares of
 common stock (fully diluted) 10,431 7,469 9,397 7,516
 Balance Sheet Data
 (Dollars in thousands)
 (Unaudited)
 ASSETS 9/26/92 9/28/91
 Current assets:
 Receivables $ 35,539 $ 37,411
 Inventories 47,107 48,483
 Prepaid expenses 1,410 240
 Total current assets 82,056 86,134
 Property, plant and equipment 52,799 47,412
 Less accumulated depreciation (17,613) (12,134)
 Net property, plant and equipment 35,186 35,278
 Other assets 841 3,558
 Total assets $118,083 $124,970
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Current portion of long-term debt $ 466 $ 4,636
 Accounts payable and accrued expenses 37,397 41,717
 Total current liabilities 37,863 46,353
 Long-term debt 13,484 57,956
 Deferred income taxes and other long-term
 liabilities 5,125 4,126
 Total liabilities 56,472 108,435
 Redeemable preferred stock --- 3,452
 Common stockholders' equity:
 Common stock 104 73
 Paid in capital 43,720 926
 Retained earnings 18,475 12,084
 Treasury stock (200) ---
 Deferred compensation - stock options (488) ---
 Total common stockholders' equity 61,611 13,083
 Total liabilities and common
 stockholders' equity $118,083 $124,970
 -0- 10/5/92
 /CONTACT: John D. Swift, vice president - Finance of Mohawk Industries, 404-951-6000/
 (MOHK HRZN) CO: Mohawk Industries, Inc.; Horizon Industries, Inc. ST: Georgia IN: TEX SU: ERN


BR-BN -- AT006 -- 6743 10/05/92 16:23 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 5, 1992
Words:997
Previous Article:SHARED TECHNOLOGIES INC. ANNOUNCES NASDAQ LISTING
Next Article:GENERAL MOTORS REPORTS SALES
Topics:


Related Articles
MOHAWK INDUSTRIES ANNOUNCES RECORD SALES AND OPERATING RESULTS
MOHAWK INDUSTRIES INC. ANNOUNCES RECORD EARNINGS FOR 1992
MOHAWK INDUSTRIES ANNOUNCES RECORD THIRD QUARTER AND NINE MONTHS EARNINGS
MOHAWK INDUSTRIES, INC. ANNOUNCES RECORD THIRD QUARTER 1994 RESULTS
MOHAWK STARTS '98 WITH A BANG: NET SOARS 72%.
CARPET LEADERS REPORT '98 RESULTS.
MAJOR MILLS CONTINUE RECORD RUN; SHAW AND MOHAWK REPORT SIGNIFICANT GAINS IN FIRST QUARTER.
MOHAWK RACKS UP AN EARNINGS RECORD; THIRD-QUARTER INCOME UP 22 PERCENT BASED ON INCREASED SALES OF RESIDENTIAL CARPET AND RUGS.
MOHAWK'S WINNING STREAK CONTINUES.
MOHAWK EXTENDS RECORD EARNINGS STREAK IN Q1.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters