x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
|
|
Delaware
|
|
33-1022198
|
(State
or other jurisdiction of incorporation
or organization)
|
|
(I.R.S.
Employer Identification
No.)
|
Page
|
|||||
|
3
|
||||
ITEM 1.
|
|
||||
4
|
|||||
5
|
|||||
6
|
|||||
7
|
|||||
ITEM 2.
|
20
|
||||
ITEM 3.
|
30
|
||||
ITEM 4.
|
30
|
||||
ITEM 1.
|
31
|
||||
ITEM 1A.
|
32
|
||||
ITEM 2.
|
34
|
||||
ITEM 3.
|
34
|
||||
ITEM 4.
|
35
|
||||
ITEM 5.
|
35
|
||||
ITEM 6.
|
36
|
||||
37
|
ITEM 1.
|
FINANCIAL
STATEMENTS
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
sales
|
$ |
257,642
|
$ |
218,962
|
$ |
523,674
|
$ |
447,548
|
||||||||
Cost
of sales
|
133,073
|
112,446
|
271,446
|
229,778
|
||||||||||||
Gross
profit
|
124,569
|
106,516
|
252,228
|
217,770
|
||||||||||||
Selling
and marketing expenses
|
47,320
|
40,511
|
95,800
|
85,403
|
||||||||||||
General
and administrative expenses
|
20,559
|
17,829
|
44,869
|
36,286
|
||||||||||||
Research
and development expenses
|
1,560
|
951
|
2,675
|
1,791
|
||||||||||||
Operating
income
|
55,130
|
47,225
|
108,884
|
94,290
|
||||||||||||
Other
(expense)/income, net:
|
||||||||||||||||
Interest
expense, net
|
(6,272 | ) | (6,217 | ) | (13,133 | ) | (10,674 | ) | ||||||||
Loss
on extinguishment of debt
|
(126 | ) |
—
|
(126 | ) |
—
|
||||||||||
Other
(expense)/income, net
|
(88 | ) | (18 | ) | (377 | ) |
41
|
|||||||||
Total
other expense
|
(6,486 | ) | (6,235 | ) | (13,636 | ) | (10,633 | ) | ||||||||
Income
before income taxes
|
48,644
|
40,990
|
95,248
|
83,657
|
||||||||||||
Income
tax provision
|
15,713
|
14,878
|
32,537
|
30,652
|
||||||||||||
Net
income
|
$ |
32,931
|
$ |
26,112
|
$ |
62,711
|
$ |
53,005
|
||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ |
0.40
|
$ |
0.31
|
$ |
0.75
|
$ |
0.61
|
||||||||
Diluted
|
$ |
0.39
|
$ |
0.30
|
$ |
0.74
|
$ |
0.59
|
||||||||
Cash
dividend per common share
|
$ |
0.08
|
—
|
$ |
0.14
|
—
|
||||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
82,963
|
84,377
|
83,452
|
86,848
|
||||||||||||
Diluted
|
84,222
|
87,460
|
85,041
|
90,246
|
June
30, 2007
|
December
31, 2006
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ |
24,832
|
$ |
15,788
|
||||
Accounts
receivable, net
|
141,800
|
142,059
|
||||||
Inventories
|
77,434
|
61,736
|
||||||
Prepaid
expenses and other current assets
|
13,098
|
8,002
|
||||||
Income
taxes receivable
|
—
|
588
|
||||||
Deferred
income taxes
|
9,721
|
9,383
|
||||||
Total
Current Assets
|
266,885
|
237,556
|
||||||
Property,
plant and equipment, net
|
207,239
|
215,428
|
||||||
Goodwill
|
198,287
|
198,207
|
||||||
Other
intangible assets, net
|
69,829
|
70,826
|
||||||
Deferred
financing and other non-current assets, net
|
3,982
|
3,649
|
||||||
Total
Assets
|
$ |
746,222
|
$ |
725,666
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
payable
|
$ |
48,223
|
$ |
51,220
|
||||
Accrued
expenses and other
|
68,594
|
61,050
|
||||||
Income
taxes payable
|
4,984
|
—
|
||||||
Current
portion of long-term debt
|
266
|
19,497
|
||||||
Total
Current Liabilities
|
122,067
|
131,767
|
||||||
Long-term
debt
|
401,365
|
341,635
|
||||||
Deferred
income taxes
|
37,579
|
38,536
|
||||||
Other
non-current liabilities
|
318
|
380
|
||||||
Total
Liabilities
|
561,329
|
512,318
|
||||||
Commitments
and contingencies—see Note 7
|
||||||||
Stockholders’
Equity:
|
||||||||
Common
stock—$.01 par value; 300,000 shares authorized; 99,215
shares issued as of June 30, 2007 and December
31, 2006
|
992
|
992
|
||||||
Additional
paid in capital
|
277,517
|
264,709
|
||||||
Retained
earnings
|
175,271
|
140,608
|
||||||
Accumulated
other comprehensive income
|
5,907
|
3,992
|
||||||
Treasury
stock, at cost; 17,714 and 15,993 shares as of June 30, 2007 and
December
31, 2006, respectively
|
(274,794 | ) | (196,953 | ) | ||||
Total
Stockholders’ Equity
|
184,893
|
213,348
|
||||||
Total
Liabilities and Stockholders’ Equity
|
$ |
746,222
|
$ |
725,666
|
Six
Months Ended
June
30,
|
||||||||
2007
|
2006
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income
|
$ |
62,711
|
$ |
53,005
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
16,870
|
12,373
|
||||||
Amortization
of deferred financing costs
|
541
|
820
|
||||||
Loss
on extinguishment of debt
|
126
|
—
|
||||||
Amortization
of stock-based compensation
|
3,380
|
1,504
|
||||||
Allowance
for doubtful accounts
|
3,508
|
1,491
|
||||||
Deferred
income taxes
|
(1,426 | ) | (2,411 | ) | ||||
Foreign
currency adjustments
|
535
|
274
|
||||||
Loss
on sale of equipment and other
|
(37 | ) |
288
|
|||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(1,298 | ) | (9,516 | ) | ||||
Inventories
|
(14,509 | ) |
10,871
|
|||||
Prepaid
expenses and other current assets
|
(4,582 | ) |
72
|
|||||
Accounts
payable
|
(3,445 | ) |
5,223
|
|||||
Accrued
expenses and other
|
6,243
|
583
|
||||||
Income
taxes
|
14,900
|
17,073
|
||||||
Excess
tax benefit from stock based compensation
|
(9,333 | ) | (5,140 | ) | ||||
Net
cash provided by operating activities
|
74,184
|
86,510
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Payments
for trademarks and other intellectual property
|
(461 | ) | (503 | ) | ||||
Purchases
of property, plant and equipment
|
(4,833 | ) | (18,561 | ) | ||||
Acquisition
of business
|
(969 | ) |
—
|
|||||
Proceeds
from sale of equipment
|
52
|
31
|
||||||
Net
cash used by investing activities
|
(6,211 | ) | (19,033 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from long-term revolving credit facility
|
148,102
|
133,500
|
||||||
Repayments
of long-term revolving credit facility
|
(75,806 | ) | (13,000 | ) | ||||
Repayments
of long-term debt
|
(45,637 | ) | (52,873 | ) | ||||
Proceeds
from issuance of Series A Industrial Revenue Bonds
|
15,380
|
—
|
||||||
Repayments
of Series A Industrial Revenue Bonds
|
(3,840 | ) | (1,920 | ) | ||||
Common
stock issued, including reissuances of treasury stock
|
5,573
|
2,851
|
||||||
Excess
tax benefit from stock based compensation
|
9,333
|
5,140
|
||||||
Treasury
stock repurchased
|
(100,000 | ) | (144,000 | ) | ||||
Dividend
paid to stockholders
|
(11,753 | ) |
—
|
|||||
Payments
for deferred financing costs
|
(1,269 | ) | (702 | ) | ||||
Net
cash used by financing activities
|
(59,917 | ) | (71,004 | ) | ||||
NET
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
988
|
1,484
|
||||||
Increase/(Decrease)
in cash and cash equivalents
|
9,044
|
(2,043 | ) | |||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
15,788
|
17,855
|
||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ |
24,832
|
$ |
15,812
|
||||
Supplemental
cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ |
11,935
|
$ |
12,736
|
||||
Income
taxes, net of refunds
|
$ |
19,197
|
$ |
17,122
|
June
30,
2007
|
December
31,
2006
|
|||||||
Finished
goods
|
$ |
54,206
|
$ |
41,847
|
||||
Work-in-process
|
7,900
|
6,395
|
||||||
Raw
materials and supplies
|
15,328
|
13,494
|
||||||
$ |
77,434
|
$ |
61,736
|
June
30, 2007
|
December
31, 2006
|
||||||||||||||||||
Useful
|
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||
Lives
|
Carrying
|
Accumulated
|
Carrying
|
Carrying
|
Accumulated
|
Carrying
|
|||||||||||||
(Years)
|
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
|||||||||||||
Unamortized
indefinite life
intangible assets:
|
|||||||||||||||||||
Trademarks
|
$
|
55,000
|
$
|
—
|
$
|
55,000
|
$
|
55,000
|
$
|
—
|
$
|
55,000
|
|||||||
Amortized
intangible assets:
|
|||||||||||||||||||
Technology
|
10
|
$
|
16,000
|
$
|
7,467
|
$
|
8,533
|
$
|
16,000
|
$
|
6,667
|
$
|
9,333
|
||||||
Patents
& Other Trademarks
|
5-20
|
10,568
|
7,080
|
3,488
|
10,105
|
6,470
|
3,635
|
||||||||||||
Customer
database
|
5
|
4,817
|
3,982
|
835
|
4,200
|
3,500
|
700
|
||||||||||||
Foam
formula
|
10
|
3,700
|
1,727
|
1,973
|
3,700
|
1,542
|
2,158
|
||||||||||||
Total
|
$
|
90,085
|
$
|
20,256
|
$
|
69,829
|
$
|
89,005
|
$
|
18,179
|
$
|
70,826
|
Balance
as of December 31, 2006
|
$ |
198,207
|
||
Foreign
currency translation adjustments and other
|
80
|
|||
Balance
as of June 30, 2007
|
$ |
198,287
|
June 30,
2007
|
December
31,
2006
|
|||||||
Domestic
|
$ |
89,929
|
$ |
89,929
|
||||
International
|
108,358
|
108,278
|
||||||
$ |
198,287
|
$ |
198,207
|
Balance
as of December 31, 2006
|
$ |
5,883
|
||
Amounts
accrued
|
21,629
|
|||
Returns
charged to accrual
|
(22,212 | ) | ||
Balance
as of June 30, 2007
|
$ |
5,300
|
Balance
as of December 31, 2006
|
$ |
2,903
|
||
Amounts
accrued
|
2,102
|
|||
Warranties
charged to accrual
|
(1,519 | ) | ||
Balance
as of June 30, 2007
|
$ |
3,486
|
|
|
June
30,
2007
|
December 31,
2006
|
|
||||
Land
and buildings
|
|
$
|
124,353
|
|
|
$
|
75,005
|
|
Machinery
and equipment
|
|
|
169,505
|
|
|
|
111,024
|
|
Construction
in progress
|
|
|
4,280
|
|
|
|
104,824
|
|
|
|
|
298,138
|
|
|
|
290,853
|
|
Total
accumulated depreciation
|
|
|
(90,899)
|
|
|
(75,425)
|
||
|
|
$
|
207,239
|
|
|
$
|
215,428
|
|
|
June
30,
2007
|
December 31,
2006
|
||||||
2005
Senior Credit Facility:
|
||||||||
Foreign
Term Loan (EUR Denominated) payable to lenders, interest at Index
Rate
or LIBOR plus margin (4.78% as of December 31, 2006)
|
$ |
—
|
$ |
43,337
|
||||
Foreign
Long-Term Revolving Credit Facility payable to lenders, interest
at
Index Rate or LIBOR plus applicable margin (4.84% and
5.82% at June 30, 2007 and December 31, 2006, respectively)
commitment through and due June 8, 2012
|
16,631
|
14,733
|
||||||
Domestic
Long-Term Revolving Credit Facility payable to lenders, interest
at
Index
Rate or LIBOR plus applicable margin (6.07% and 6.41%
as of June 30, 2007 and December 31, 2006, respectively), commitment
through and due June 8, 2012
|
324,000
|
253,500
|
||||||
2005
Industrial Revenue Bonds:
|
||||||||
Variable
Rate Industrial Revenue Bonds Series 2005A, interest rate determined
by remarketing agent not to exceed the lesser of (a) the
highest
rate under state
law or (b) 12% per annum (5.35% and 5.53% as of June 30, 2007 and
December
31, 2006, respectively), interest
due
monthly through
and principal due September 1, 2030
|
59,705
|
48,165
|
||||||
Other:
|
||||||||
Mortgages
payable to a bank, secured by certain property, plant and equipment
and other assets, bearing fixed interest at 4.0% to 5.1%
|
1,295
|
1,397
|
||||||
|
401,631
|
361,132
|
||||||
Less:
Current portion
|
(266 | ) | (19,497 | ) | ||||
Long-term
debt
|
$ |
401,365
|
$ |
341,635
|
Expected
volatility of stock
|
40.59 | % | ||
Expected
life of options, in years
|
2.0
|
|||
Risk-free
interest rate
|
5.07 | % | ||
Expected
dividend yield on stock
|
1.1 | % |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net
income
|
$ |
32,931
|
$ |
26,112
|
$ |
62,711
|
$ |
53,005
|
||||||||
Denominator:
|
||||||||||||||||
Denominator
for basic earnings per share-weighted
average shares
|
82,963
|
84,377
|
83,452
|
86,848
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Employee
stock options
|
1,259
|
3,083
|
1,589
|
3,398
|
||||||||||||
Denominator
for basic earnings per share-adjusted
weighted average shares
|
84,222
|
87,460
|
85,041
|
90,246
|
||||||||||||
Basic
earnings per share
|
$ |
0.40
|
$ |
0.31
|
$ |
0.75
|
$ |
0.61
|
||||||||
Diluted
earnings per share
|
$ |
0.39
|
$ |
0.30
|
$ |
0.74
|
$ |
0.59
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
Total
assets:
|
||||||||
Domestic
|
$ |
535,780
|
$ |
485,958
|
||||
International
|
305,536
|
322,816
|
||||||
Intercompany
eliminations
|
(95,094 | ) | (83,108 | ) | ||||
$ |
746,222
|
$ |
725,666
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
sales from external customers:
|
||||||||||||||||
Domestic
|
$ |
170,646
|
$ |
142,665
|
$ |
346,124
|
$ |
294,181
|
||||||||
International
|
86,996
|
76,297
|
177,550
|
153,367
|
||||||||||||
$ |
257,642
|
$ |
218,962
|
$ |
523,674
|
$ |
447,548
|
|||||||||
Inter-segment
sales:
|
||||||||||||||||
Domestic
|
||||||||||||||||
International
|
$ |
723
|
$ |
785
|
$ |
1,687
|
$ |
1,414
|
||||||||
Intercompany
eliminations
|
(723 | ) | (785 | ) | (1,687 | ) | (1,414 | ) | ||||||||
$ |
—
|
$ |
—
|
$ |
—
|
$ |
—
|
|||||||||
Operating
income/(loss):
|
||||||||||||||||
Domestic
|
$ |
29,896
|
$ |
26,847
|
$ |
59,270
|
$ |
51,935
|
||||||||
International
|
25,234
|
20,378
|
49,614
|
42,355
|
||||||||||||
$ |
55,130
|
$ |
47,225
|
$ |
108,884
|
$ |
94,290
|
|||||||||
Depreciation
and amortization (excluding
stock-based compensation
amortization):
|
||||||||||||||||
Domestic
|
$ |
5,544
|
$ |
3,360
|
$ |
11,225
|
$ |
6,642
|
||||||||
International
|
2,681
|
2,908
|
5,645
|
5,731
|
||||||||||||
$ |
8,225
|
$ |
6,268
|
$ |
16,870
|
$ |
12,373
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||||||
Mattresses
|
$
|
179,568
|
$
|
149,870
|
$
|
364,575
|
$
|
309,785
|
|||||||||||
Pillows
|
31,799
|
29,050
|
66,676
|
57,529
|
|||||||||||||||
All
other
|
46,275
|
40,042
|
92,423
|
80,234
|
|||||||||||||||
$
|
257,642
|
$
|
218,962
|
$
|
523,674
|
$
|
447,548
|
||||||||||||
|
•
|
|
Maintain
our focus on premium mattresses and pillows and to regularly introduce
new
products.
|
|
•
|
|
Invest
in increasing our global brand awareness through targeted marketing
and
advertising campaigns that further associate our brand name with
better
overall sleep and premium quality
products.
|
|
•
|
|
Selectively
extend our presence and improve our account productivity in both
the U.S.
and International furniture and bedding
stores.
|
|
•
|
|
Invest
in our operating infrastructure to meet the requirements of our growing
business, including investments in our research and development
capabilities.
|
·
|
Net
sales rose 18% to $257.6 million from $219.0 million in the second
quarter
of 2006. Retail channel Net sales increased 22%.
Domestic Retail channel sales increased 23% and International Retail
channel sales increased 19%.
|
·
|
Earnings
per share (EPS) increased 30% to $0.39 per diluted share in the second
quarter of 2007 from $0.30 per diluted share in the second quarter
of
2006.
|
·
|
During
the second quarter, Tempur-Pedic International purchased 2.3 million
shares of its common stock at a total cost of $60.8 million. These
purchases were funded primarily by increased borrowings under our
domestic
revolving credit facility.
|
($
in millions, except earnings per share)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||||||||||||||||||
Net
sales
|
$ |
257.6
|
100 | % | $ |
219.0
|
100 | % | $ |
523.7
|
100 | % | $ |
447.6
|
100 | % | ||||||||||||||||
Cost
of sales
|
133.0
|
52
|
112.5
|
51
|
271.5
|
52
|
229.8
|
51
|
||||||||||||||||||||||||
Gross
profit
|
124.6
|
48
|
106.5
|
49
|
252.2
|
48
|
217.8
|
49
|
||||||||||||||||||||||||
Selling
and marketing expenses
|
47.4
|
18
|
40.5
|
19
|
95.8
|
18
|
85.4
|
19
|
||||||||||||||||||||||||
General
and administrative expenses
|
20.5
|
8
|
17.8
|
8
|
44.9
|
9
|
36.3
|
8
|
||||||||||||||||||||||||
Research
and development expenses
|
1.6
|
1
|
1.0
|
—
|
2.6
|
—
|
1.8
|
1
|
||||||||||||||||||||||||
Operating
income
|
55.1
|
21
|
47.2
|
22
|
108.9
|
21
|
94.3
|
21
|
||||||||||||||||||||||||
Interest
expense, net
|
(6.3 | ) | (2 | ) | (6.2 | ) | (3 | ) | (13.1 | ) | (3 | ) | (10.7 | ) | (2 | ) | ||||||||||||||||
Loss
on extinguishment of debt
|
(0.1 | ) |
—
|
—
|
—
|
(0.1 | ) |
—
|
—
|
—
|
||||||||||||||||||||||
Other
income (expense), net
|
(0.1 | ) |
—
|
—
|
—
|
(0.5 | ) |
—
|
(0.1 | ) |
—
|
|||||||||||||||||||||
Income
before income taxes
|
48.6
|
19
|
41.0
|
19
|
95.2
|
18
|
83.7
|
19
|
||||||||||||||||||||||||
Income
tax provision
|
15.7
|
6
|
14.9
|
7
|
32.5
|
6
|
30.7
|
7
|
||||||||||||||||||||||||
Net
income
|
$ |
32.9
|
13 | % | $ |
26.1
|
12 | % | $ |
62.7
|
12 | % | $ |
53.0
|
12 | % | ||||||||||||||||
Earnings
per share:
|
||||||||||||||||||||||||||||||||
Basic
|
$ |
0.40
|
$ |
0.31
|
$ |
0.75
|
$ |
0.61
|
||||||||||||||||||||||||
Diluted
|
$ |
0.39
|
$ |
0.30
|
$ |
0.74
|
$ |
0.59
|
||||||||||||||||||||||||
Cash
dividend per common share:
|
$ |
0.08
|
$ |
—
|
$ |
0.14
|
$ |
—
|
||||||||||||||||||||||||
Weighted
average shares outstanding:
|
||||||||||||||||||||||||||||||||
Basic
|
82,963
|
84,377
|
83,452
|
86,848
|
||||||||||||||||||||||||||||
Diluted
|
84,222
|
87,460
|
85,041
|
90,246
|
CONSOLIDATED
|
DOMESTIC
|
INTERNATIONAL
|
||||||||||||||||||||||
Three
Months Ended
|
Three
Months Ended
|
Three
Months Ended
|
||||||||||||||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||||||||||||||
($
in millions)
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
||||||||||||||||||
Retail
|
$ |
210.9
|
$ |
173.3
|
$ |
145.0
|
$ |
117.7
|
$ |
65.9
|
$ |
55.6
|
||||||||||||
Direct
|
20.9
|
20.4
|
18.3
|
18.1
|
2.6
|
2.3
|
||||||||||||||||||
Healthcare
|
11.3
|
10.2
|
3.4
|
2.9
|
7.9
|
7.3
|
||||||||||||||||||
Third
Party
|
14.5
|
15.1
|
3.9
|
4.0
|
10.6
|
11.1
|
||||||||||||||||||
$ |
257.6
|
$ |
219.0
|
$ |
170.6
|
$ |
142.7
|
$ |
87.0
|
$ |
76.3
|
CONSOLIDATED
|
DOMESTIC
|
INTERNATIONAL
|
||||||||||||||||||||||
Three
Months Ended
|
Three
Months Ended
|
Three
Months Ended
|
||||||||||||||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||||||||||||||
($
in millions)
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
||||||||||||||||||
Net
sales:
|
||||||||||||||||||||||||
Mattresses
|
$ |
179.6
|
$ |
149.9
|
$ |
127.0
|
$ |
105.3
|
$ |
52.6
|
$ |
44.6
|
||||||||||||
Pillows
|
31.7
|
29.0
|
14.6
|
12.5
|
17.1
|
16.5
|
||||||||||||||||||
Other
|
46.3
|
40.1
|
29.0
|
24.9
|
17.3
|
15.2
|
||||||||||||||||||
$ |
257.6
|
$ |
219.0
|
$ |
170.6
|
$ |
142.7
|
$ |
87.0
|
$ |
76.3
|
CONSOLIDATED
|
DOMESTIC
|
INTERNATIONAL
|
||||||||||||||||||||||
Six
Months Ended
|
Six
Months Ended
|
Six
Months Ended
|
||||||||||||||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||||||||||||||
($
in millions)
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
||||||||||||||||||
Retail
|
$ |
429.9
|
$ |
356.8
|
$ |
295.0
|
$ |
242.9
|
$ |
134.9
|
$ |
113.9
|
||||||||||||
Direct
|
42.7
|
42.4
|
37.6
|
37.6
|
5.1
|
4.8
|
||||||||||||||||||
Healthcare
|
23.0
|
21.3
|
6.6
|
6.0
|
16.4
|
15.3
|
||||||||||||||||||
Third
Party
|
28.1
|
27.1
|
6.9
|
7.7
|
21.2
|
19.4
|
||||||||||||||||||
$ |
523.7
|
$ |
447.6
|
$ |
346.1
|
$ |
294.2
|
$ |
177.6
|
$ |
153.4
|
CONSOLIDATED
|
DOMESTIC
|
INTERNATIONAL
|
||||||||||||||||||||||
Six
Months Ended
|
Six
Months Ended
|
Six
Months Ended
|
||||||||||||||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||||||||||||||
($
in millions)
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
||||||||||||||||||
Net
sales:
|
||||||||||||||||||||||||
Mattresses
|
$ |
364.7
|
$ |
309.8
|
$ |
257.5
|
$ |
217.9
|
$ |
107.2
|
$ |
91.9
|
||||||||||||
Pillows
|
66.7
|
57.5
|
30.3
|
25.8
|
36.4
|
31.7
|
||||||||||||||||||
Other
|
92.3
|
80.3
|
58.3
|
50.5
|
34.0
|
29.8
|
||||||||||||||||||
$ |
523.7
|
$ |
447.6
|
$ |
346.1
|
$ |
294.2
|
$ |
177.6
|
$ |
153.4
|
ITEM 4.
|
ITEM 1.
|
ITEM 1A.
|
|
•
|
|
limiting
our ability to obtain in the future additional financing we may need
to
fund future working capital, capital expenditures, product development,
acquisitions or other corporate requirements;
and
|
|
•
|
|
requiring
the dedication of a substantial portion of our cash flow from operations
to the payment of principal and interest on our debt, which will
reduce
the availability of cash flow to fund working capital, capital
expenditures, product development, acquisitions and other corporate
requirements.
|
Period
|
(a) Total number
of
shares
purchased
|
(b)
Average Price Paid per Share
|
(c) Total number of
shares purchased as
part
of publicly
announced
plans or
programs
|
(d) Maximum number of shares
(or
approximate dollar value)
of
shares that may yet be
purchased
under the plans or
programs
(in millions)
|
||||||||||||
April
1, 2007 – April 30, 2007
|
765,100
|
$ |
26.42
|
765,100
|
$ |
40.6
|
||||||||||
May
1, 2007 – May 31, 2007
|
---
|
---
|
---
|
---
|
||||||||||||
June
1, 2007 – June 30, 2007
|
1,545,385
|
26.28
|
1,545,385
|
0.0
|
||||||||||||
Total
|
2,310,485
|
2,310,485
|
ITEM 3.
|
For
|
Authority
Withheld
|
|||||||
H.
Thomas Bryant
|
71,842,491
|
74,685
|
||||||
Francis
A. Doyle
|
71,826,259
|
90,917
|
||||||
Peter
K. Hoffman
|
71,842,461
|
74,715
|
||||||
Sir
Paul Judge
|
71,840,715
|
76,461
|
||||||
Nancy
F. Koehn
|
71,827,819
|
89,357
|
||||||
Christopher
A. Masto
|
71,720,784
|
196,392
|
||||||
P.
Andrews McLane
|
71,827,124
|
90,052
|
||||||
Robert
Trussell, Jr.
|
71,848,621
|
68,555
|
For
|
Against
|
Abstained
|
||||||||
71,836,956
|
47,016
|
33,204
|
ITEM 5.
|
ITEM 6.
|
10.1
|
|||
31.1
|
|||
31.2
|
|||
32.1 | * |
*
|
This
exhibit shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78r), or otherwise
subject to the liabilities of that Section, nor shall it be deemed
incorporated by reference in any filings under the Securities Act
of 1933,
as amended, or the Securities Exchange Act of 1934, as amended, whether
made before or after the date hereof and irrespective of any general
incorporation language in any filings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEMPUR-PEDIC
INTERNATIONAL INC.
|
||||
|
|
|
|
(Registrant)
|
||||
|
|
|
|
|||||
Date:
August 7, 2006
|
|
|
|
By:
|
|
/s/ DALE
E.
WILLIAMS
|
||
|
|
|
|
|
|
|
|
Dale
E. Williams
|
|
|
|
|
|
|
|
|
Executive
Vice President, Chief Financial Officer,
|
|
|
|
|
|
|
|
|
And
Secretary
|