CALHOUN, Ga., Feb. 08, 2024 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE:
MHK) today announced fourth quarter 2023 net earnings of $139 million and
earnings per share ("EPS") of $2.18; adjusted net earnings were $125 million,
and adjusted EPS was $1.96. Net sales for the fourth quarter of 2023 were $2.6
billion, a decrease of 1.4% as reported and 4.1% on a legacy and constant basis
versus the prior year. During the fourth quarter of 2022, the Company reported
net sales of $2.7 billion, net earnings of $33 million and EPS of $0.52;
adjusted net earnings were $84 million, and adjusted EPS was $1.32.
For the twelve months ending December 31, 2023, the Company reported a net loss
of $440 million and a loss per share of $6.90, which included non-cash
impairment charges of $878 million; adjusted net earnings were $587 million, and
adjusted EPS was $9.19. For the 2023 twelve-month period, net sales were $11.1
billion, a decrease of 5.1% as reported and 7.7% on a legacy and constant basis
versus the prior year. For the twelve-month period ending December 31, 2022, the
Company reported net sales of $11.7 billion, net earnings of $25 million and EPS
of $0.39; adjusted net earnings were $823 million, and adjusted EPS was $12.85.
Commenting on the Company's fourth quarter and full year results, Chairman and
CEO Jeff Lorberbaum stated, "Our fourth quarter results were ahead of our
expectations, with benefits from cost containment, productivity and lower input
costs. The industry reduced selling prices and we passed through declining costs
in energy and raw materials. Under these conditions, we focused on optimizing
our revenues and reducing our costs through restructuring actions and
manufacturing enhancements. We aggressively managed inventory levels, which
reduced our working capital compared to prior year by more than $300 million,
excluding acquisitions. We also have invested in sales resources, merchandising
and new products with innovative features to inspire consumers to purchase
flooring. We closed the year with a net debt to adjusted EBITDA ratio of 1.5
times, free cash flow of $716 million and available liquidity of $1.9 billion,
and we are retiring a higher interest rate term loan of approximately $900
million in the first quarter of 2024. We are well positioned to manage current
conditions and emerge stronger from this economic cycle when the rebound occurs.
For the fourth quarter, the Global Ceramic Segment reported a 0.6% increase in
net sales as reported, or a 4.7% decline on a legacy and constant basis. The
Segment's operating margin was 4.2% as reported, or 4.8% on an adjusted basis.
Across the segment, we are managing production to align with demand and have
significantly reduced inventory throughout the year. To contain costs, we have
increased productivity, reduced overhead and implemented alternative
formulations. In the U.S., we are expanding our distribution through our local
service centers and offering new collections with premium Italian styling to
improve our product mix. We have integrated Vitromex in Mexico and Elizabeth in
Brazil and are enhancing our sales, marketing and operational strategies. In
both countries, demand significantly declined last year due to rising interest
rates and slowing economic conditions, which reduced our results. In Italy, we
are optimizing our recent expansion of premium porcelain slabs to meet growing
demand in both the residential and commercial channels.
During the fourth quarter, our Flooring Rest of the World Segment's net sales
decreased by 1.5% as reported, or 4.1% on a legacy and constant currency basis.
The Segment's operating margin was 9.5% as reported, or 10.6% on an adjusted
basis. The European building product category remains under stress, with
consumers remaining cautious and retailers reducing their inventory levels. We
are investing in new products for 2024 while implementing tight cost controls.
We are re-energizing our flagship Quick-Step brand with inspirational
interactive merchandising displays. We are completing the transition to rigid
LVT, and we have decommissioned our residential flexible line. Our wood panels
performance has declined during the year from cyclically high pricing to a more
competitive environment with excess capacity. We continue to implement
restructuring actions in the segment and enhance our recent smaller European
bolt-on acquisitions, including insulation, MDF boards, sheet vinyl and
mezzanine flooring.
In the fourth quarter, our Flooring North America Segment sales declined 3.6%.
The Segment's operating margin was 8.2% as reported, or 6.9% on an adjusted
basis. Reduced market volumes led to low industry utilization rates and
aggressive competition in the marketplace. We are continuing to invest in sales
and marketing initiatives to expand our distribution and improve our long-term
growth. To enhance our business, we are making capital investments to increase
our differentiated features and lower our manufacturing costs. In each product
category, we are introducing innovative new collections, which are being well
accepted. The commercial channel outperformed our expectations, led by the
hospitality sector. We are leveraging our customer relationships to expand our
needle punch flooring and trim acquisitions.
As we enter 2024, our industry is at a cyclical low and we expect seasonality in
the first quarter to be more aligned with long-term historical levels. Our
businesses are minimizing expenses, reducing overhead and restructuring
operations to adapt to present conditions. We are continuing to invest in
innovative products to increase sales and mix. We are reacting to competitive
pressures to optimize our volumes as we pass through declines in input costs. We
continue to manage our inventory and anticipate temporary shutdowns to align
with demand. All of our businesses are implementing process enhancement
initiatives to reduce the impact of inflation. Given these factors, we
anticipate our first quarter adjusted EPS to be between $1.60 and $1.70.
During the past eighteen months, we have initiated many actions across the
company to improve our cost structure, manage lower volume and integrate our
recent acquisitions. Combined with these actions, improving industry conditions
as we emerge from the bottom of this cycle should improve our results in the
second half of the year. Markets anticipate that central banks will lower
interest rates, expanding home sales, residential remodeling and commercial
projects. The pace of improvement of the flooring category will be dependent on
inflation rates, consumer confidence and the strength of home sales. We believe
the U.S. and Latin American markets could improve before Europe, which could lag
due to current geopolitical pressures. After past housing recessions, our
industry has rebounded with increased sales and expanding margins for multiple
years. Housing remains in short supply across all our geographies, and increased
remodeling investments will be required to update the aging housing stock. Our
restructuring actions, investments in new technologies, targeted expansions and
recent acquisitions will enable us to further expand our business. As the
world's largest flooring company, we believe we are uniquely positioned to
improve our results as the market recovers."
ABOUT MOHAWK INDUSTRIES
Mohawk Industries is the leading global flooring manufacturer that creates
products to enhance residential and commercial spaces around the world. Mohawk's
vertically integrated manufacturing and distribution processes provide
competitive advantages in the production of carpet, rugs, ceramic tile,
laminate, wood, stone and vinyl flooring. Our industry leading innovation has
yielded products and technologies that differentiate our brands in the
marketplace and satisfy all remodeling and new construction requirements. Our
brands are among the most recognized in the industry and include American Olean,
Daltile, Durkan, Eliane, Elizabeth, Feltex, GH Commercial, Godfrey Hirst, Grupo
Daltile, IVC Commercial, IVC Home, Karastan, Marazzi, Mohawk, Mohawk Group,
Mohawk Home, Pergo, Quick-Step, Unilin and Vitromex. During the past decade,
Mohawk has transformed its business from an American carpet manufacturer into
the world's largest flooring company with operations in Australia, Brazil,
Canada, Europe, Malaysia, Mexico, New Zealand, Russia and the United States.
Certain of the statements in the immediately preceding paragraphs, particularly
anticipating future performance, business prospects, growth and operating
strategies and similar matters and those that include the words "could,"
"should," "believes," "anticipates," "expects," and "estimates," or similar
expressions constitute "forward-looking statements." For those statements,
Mohawk claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. There can be
no assurance that the forward-looking statements will be accurate because they
are based on many assumptions, which involve risks and uncertainties. The
following important factors could cause future results to differ: changes in
economic or industry conditions; competition; inflation and deflation in
freight, raw material prices and other input costs; inflation and deflation in
consumer markets; currency fluctuations; energy costs and supply; timing and
level of capital expenditures; timing and implementation of price increases for
the Company's products; impairment charges; integration of acquisitions;
international operations; introduction of new products; rationalization of
operations; taxes and tax reform; product and other claims; litigation;
geopolitical conflict; regulatory and political changes in the jurisdictions in
which the Company does business; and other risks identified in Mohawk's SEC
reports and public announcements.
Conference call Friday, February 9, 2024, at 11:00 AM Eastern Time
To participate in the conference call via the Internet, please visit
http://ir.mohawkind.com/events/event-details/mohawk-industries-inc-4th-quarter-
2023-earnings-call. To participate in the conference call via telephone,
register in advance at https://dpregister.com/sreg/10185489/fb57257e00 to
receive a unique personal identification number or dial 1-833-630-1962 for
U.S./Canada and 1-412-317-1843 for international/local on the day of the call
for operator assistance. A replay will be available until March 8, 2024, by
dialing 1-877-344-7529 for U.S./Canada calls and 1-412-317-0088 for
international/local calls and entering access code #3161276.

                    MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                        Three Months Ended             Twelve Months Ended
                   ----------------------------- ------------------------------

(Amounts in
thousands,

 except per share        December      December         December       December
 data)                   31, 2023      31, 2022         31, 2023       31, 2022

-------------------------------------------------------------------------------

 Net sales          $ 2,612,278       2,650,675   11,135,115         11,737,065
 Cost of sales        1,969,984       2,096,235    8,425,463          8,793,639

-------------------------------------------------------------------------------
Gross profit 642,294 554,440 2,709,652 2,943,426
Selling, general
and
administrative
expenses 473,560 493,362 2,119,716 2,003,438
Impairment of
goodwill and
indefinite-lived
intangibles 1,636 - 877,744 695,771
-------------------------------------------------------------------------------
Operating income

 (loss)                 167,098          61,078     (287,808 )          244,217
 Interest expense        17,376          14,601       77,514             51,938

Other (income)
expense, net (3,911 ) 10,008 (10,813 ) 8,386
-------------------------------------------------------------------------------
Earnings (loss)
before income
taxes 153,633 36,469 (354,509 ) 183,893
Income tax
expense 14,205 2,917 84,862 158,110
-------------------------------------------------------------------------------
Net earnings
(loss) including
noncontrolling
interests 139,428 33,552 (439,371 ) 25,783
Net earnings
(loss)
attributable to
noncontrolling
interests (60 ) 96 145 536
-------------------------------------------------------------------------------
Net earnings
(loss)
attributable to
Mohawk
Industries, Inc. $ 139,488 33,456 (439,516 ) 25,247
-------------------------------------------------------------------------------
Basic earnings
(loss) per share
attributable to
Mohawk
Industries, Inc. $ 2.19 0.53 (6.90 ) 0.40
-------------------------------------------------------------------------------
Weighted-average
common shares
outstanding -
basic 63,683 63,534 63,657 63,826
-------------------------------------------------------------------------------
Diluted earnings
(loss) per share
attributable to
Mohawk
Industries, Inc. $ 2.18 0.52 (6.90 ) 0.39
-------------------------------------------------------------------------------
Weighted-average
common shares
outstanding -
diluted 63,938 63,792 63,657 64,062
-------------------------------------------------------------------------------
Other Financial
Information

                         Three Months Ended            Twelve Months Ended
                   ------------------------------ -----------------------------
 (Amounts in             December       December        December       December
 thousands)              31, 2023       31, 2022        31, 2023       31, 2022

-------------------------------------------------------------------------------
Net cash
provided by
operating
activities $ 296,322 241,718 1,329,229 669,153
Less: Capital
expenditures 240,364 150,658 612,929 580,742
-------------------------------------------------------------------------------
Free cash flow $ 55,958 91,060 716,300 88,411
-------------------------------------------------------------------------------
Depreciation and
amortization $ 154,215 159,014 630,327 595,464
-------------------------------------------------------------------------------

                    MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)
                                                   December
 (Amounts in thousands)                            31, 2023   December 31, 2022

-------------------------------------------------------------------------------
ASSETS
Current assets:

 Cash and cash equivalents                  $       642,550             509,623
 Short-term investments                                   -             158,000
 Receivables, net                                 1,874,656           1,904,786
 Inventories                                      2,551,853           2,793,765
 Prepaid expenses and other current assets          535,158             528,925

-------------------------------------------------------------------------------

 Total current assets                             5,604,217           5,895,099
 Property, plant and equipment, net               4,993,166           4,661,178
 Right of use operating lease assets                428,532             387,816
 Goodwill                                         1,159,724           1,927,759
 Intangible assets, net                             875,383             857,948

Deferred income taxes and other non-
current assets 498,847 390,632
-------------------------------------------------------------------------------
Total assets $ 13,559,869 14,120,432
-------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of

 long-term debt                             $     1,001,715             840,571
 Accounts payable and accrued expenses            2,035,339           2,124,448
 Current operating lease liabilities                108,860             105,266

-------------------------------------------------------------------------------

 Total current liabilities                        3,145,914           3,070,285
 Long-term debt, less current portion             1,701,785           1,978,563
 Non-current operating lease liabilities            337,506             296,136

Deferred income taxes and other long-term
liabilities 745,528 757,534
-------------------------------------------------------------------------------
Total liabilities 5,930,733 6,102,518
-------------------------------------------------------------------------------
Total stockholders' equity 7,629,136 8,017,914
-------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 13,559,869 14,120,432
-------------------------------------------------------------------------------
Segment
Information

                                                 As of or for the Twelve Months
                       Three Months Ended                    Ended
                 ------------------------------ -------------------------------
 (Amounts in           December       December         December        December
 thousands)            31, 2023       31, 2022         31, 2023        31, 2022

-------------------------------------------------------------------------------
Net sales:

 Global Ceramic   $   993,739       987,699         4,300,107      4,307,681
 Flooring NA          912,049       945,959         3,829,386      4,207,041
 Flooring ROW         706,490       717,017         3,005,622      3,222,343

-------------------------------------------------------------------------------
Consolidated
net sales $ 2,612,278 2,650,675 11,135,115 11,737,065
-------------------------------------------------------------------------------
Operating
income (loss):

 Global Ceramic   $    41,505        69,033          (166,448 )     (236,066 )
 Flooring NA           74,605       (28,950 )         (57,182 )      231,076
 Flooring ROW          67,137        35,902            69,727        340,167

Corporate and
intersegment
eliminations (16,149 ) (14,907 ) (133,905 ) (90,960 )
-------------------------------------------------------------------------------
Consolidated
operating
income (loss) $ 167,098 61,078 (287,808 ) 244,217
-------------------------------------------------------------------------------
Assets:

 Global Ceramic                                  $  4,988,347      4,841,310
 Flooring NA                                        3,909,943      4,299,360
 Flooring ROW                                       4,051,647      4,275,519

Corporate and
intersegment
eliminations 609,932 704,243
-------------------------------------------------------------------------------
Consolidated
assets $ 13,559,869 14,120,432
-------------------------------------------------------------------------------
Reconciliation of Net Earnings (Loss) Attributable to Mohawk Industries, Inc.
to Adjusted Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted
Diluted Earnings Per Share Attributable to Mohawk Industries, Inc.

                          Three Months Ended            Twelve Months Ended
                     ----------------------------- ----------------------------

(Amounts in

 thousands, except         December      December        December      December
 per share data)           31, 2023      31, 2022        31, 2023      31, 2022

-------------------------------------------------------------------------------
Net earnings
(loss)
attributable to
Mohawk Industries,
Inc. $ 139,488 33,456 (439,516 ) 25,247
Adjusting items:
Restructuring,
acquisition and
integration-
related and other
costs 8,591 49,701 129,323 87,819
Inventory step-up
from purchase
accounting - 1,218 4,476 2,762
Impairment of
goodwill and
indefinite-lived
intangibles 1,636 - 877,744 695,771
Legal settlements,
reserves and fees (4,652 ) 9,231 87,824 54,231
Release of
indemnification
asset (107 ) - (2,957 ) 7,324
Income taxes -
reversal of
uncertain tax
position 107 - 2,957 (7,324 )
Income taxes -
impairment of
goodwill and
indefinite-lived
intangibles - - (12,838 ) (10,168 )
European tax
restructuring (9,999 ) - (9,999 ) -
Income tax effect
of adjusting items (9,805 ) (9,245 ) (50,038 ) (32,536 )
-------------------------------------------------------------------------------
Adjusted net
earnings
attributable to
Mohawk Industries,
Inc. $ 125,259 84,361 586,976 823,126
-------------------------------------------------------------------------------
Adjusted diluted
earnings per share
attributable to
Mohawk Industries,
Inc. $ 1.96 1.32 9.19 12.85
-------------------------------------------------------------------------------
Weighted-average
common shares
outstanding -
diluted 63,938 63,792 63,892 64,062
-------------------------------------------------------------------------------

  Reconciliation of Total Debt to Net Debt
  (Amounts in thousands)                                  December 31, 2023

----------------------------------------------------------------------------

  Short-term debt and current portion of long-term debt   $       1,001,715
  Long-term debt, less current portion                            1,701,785

----------------------------------------------------------------------------

  Total debt                                                      2,703,500
  Less: Cash and cash equivalents                                   642,550

----------------------------------------------------------------------------
Net debt $ 2,060,950
----------------------------------------------------------------------------
Reconciliation of Net Earnings(Loss) to
Adjusted EBITDA
Trailing Twelve Months Three Months Ended Ended --------------------------------------------------------------- September December December (Amounts in April 1, July 1, 30, 31, 31, thousands) 2023 2023 2023 2023 2023 ---------------------------------------------------------------------------------
Net earnings
(loss) including
noncontrolling
interests $ 80,276 101,214 (760,289 ) 139,428 (439,371 ) Interest expense 17,137 22,857 20,144 17,376 77,514
Income tax
expense 28,943 26,760 14,954 14,205 84,862
Net (earnings)
loss attributable
to noncontrolling
interests (38 ) 3 (170 ) 60 (145 ) Depreciation and
amortization((1)) 169,909 156,633 149,570 154,215 630,327
---------------------------------------------------------------------------------
EBITDA 296,227 307,467 (575,791 ) 325,284 353,187
Restructuring,
acquisition and
integration-
related and other
costs 8,971 33,682 47,606 5,959 96,218
Inventory step-up
from purchase
accounting 3,305 1,276 (105 ) - 4,476
Impairment of
goodwill and
indefinite-lived
intangibles - - 876,108 1,636 877,744
Legal
settlements,
reserves and fees 990 48,022 43,464 (4,652 ) 87,824
Release of
indemnification
asset (857 ) (103 ) (1,890 ) (107 ) (2,957 ) ---------------------------------------------------------------------------------
Adjusted EBITDA $ 308,636 390,344 389,392 328,120 1,416,492
---------------------------------------------------------------------------------
Net debt to
adjusted EBITDA 1.5
---------------------------------------------------------------------------------
((1))Includes accelerated depreciation of $23,019 for Q1 2023, $7,978 for Q2
2023, ($525) for Q3 2023 and $2,632 for Q4 2023.
Reconciliation of Net Sales to Adjusted Net
Sales

                       Three Months Ended             Twelve Months Ended
                 ------------------------------ -------------------------------
 (Amounts in           December       December          December       December
 thousands)            31, 2023       31, 2022          31, 2023       31, 2022

-------------------------------------------------------------------------------
Mohawk Consolidated
Net sales $ 2,612,278 2,650,675 11,135,115 11,737,065
Adjustment for
constant
shipping days 1,878 - 20,707 -
Adjustment for
constant
exchange rates 9,987 - 71,553 -
Adjustment for
acquisition
volume (82,669 ) - (389,018 ) -
-------------------------------------------------------------------------------
Adjusted net
sales $ 2,541,474 2,650,675 10,838,357 11,737,065
-------------------------------------------------------------------------------

                                                 Three Months Ended
                                         ----------------------------------
                                               December
                                               31, 2023   December 31, 2022

---------------------------------------------------------------------------
Global Ceramic

 Net sales                                $ 993,739                 987,699
 Adjustment for constant shipping days       12,719                       -
 Adjustment for constant exchange rates      15,521                       -
 Adjustment for acquisition volume          (80,321 )                     -

---------------------------------------------------------------------------
Adjusted net sales $ 941,658 987,699
---------------------------------------------------------------------------

  Flooring ROW
  Net sales                                    $   706,490           717,017
  Adjustment for constant shipping days            (10,841   )             -
  Adjustment for constant exchange rates            (5,534   )             -
  Adjustment for acquisition volume                 (2,348   )             -

-----------------------------------------------------------------------------
Adjusted net sales $ 687,767 717,017
-----------------------------------------------------------------------------
Reconciliation of Gross Profit to Adjusted Gross Profit

                                                    Three Months Ended
                                           ------------------------------------
                                                   December
 (Amounts in thousands)                            31, 2023   December 31, 2022

-------------------------------------------------------------------------------
Gross Profit $ 642,294 554,440
Adjustments to gross profit:
Restructuring, acquisition and
integration-related and other costs 2,829 39,159
Inventory step-up from purchase
accounting - 1,218
-------------------------------------------------------------------------------
Adjusted gross profit $ 645,123 594,817
-------------------------------------------------------------------------------
Adjusted gross profit as a percent of net sales 24.7 % 22.4 %
------------------------------------------------------------------
Reconciliation of Selling, General and Administrative Expenses to Adjusted
Selling, General and Administrative Expenses

                                                    Three Months Ended
                                          -------------------------------------
                                                December
 (Amounts in thousands)                         31, 2023      December 31, 2022

-------------------------------------------------------------------------------
Selling, general and administrative
expenses $ 473,560 493,362
Adjustments to selling, general andadministrative expenses:
Restructuring, acquisition and

 integration-related and other costs          (8,507 )      (8,480 )
 Legal settlements, reserves and fees          4,652        (9,231 )

-------------------------------------------------------------------------------
Adjusted selling, general and
administrative expenses $ 469,705 475,651
-------------------------------------------------------------------------------
Adjusted selling, general and administrative expenses as a
percent of net sales 18.0 % 17.9 %
-------------------------------------------------------------------------------
Reconciliation of Operating Income (Loss) to Adjusted Operating Income

                                                     Three Months Ended
                                             ----------------------------------
                                                   December
 (Amounts in thousands)                            31, 2023   December 31, 2022

-------------------------------------------------------------------------------
Mohawk Consolidated
Operating income $ 167,098 61,078
Adjustments to operating income:
Restructuring, acquisition and

 integration-related and other costs             11,336                  47,639
 Inventory step-up from purchase accounting           -                   1,218

Impairment of goodwill and indefinite-

 lived intangibles                                1,636                       -
 Legal settlements, reserves and fees            (4,652 )                 9,231

-------------------------------------------------------------------------------
Adjusted operating income $ 175,418 119,166
-------------------------------------------------------------------------------
Adjusted operating income as a percent of net
sales 6.7 % 4.5 %
-------------------------------------------------------------------------------
Global Ceramic
Operating income $ 41,505 69,033
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and

 other costs                                                     4,907    1,054
 Impairment of goodwill and indefinite-lived intangibles         1,636        -

-------------------------------------------------------------------------------
Adjusted segment operating income $ 48,048 70,087
-------------------------------------------------------------------------------
Adjusted segment operating income as a percent of net sales 4.8 % 7.1 %
----------------------------------------------------------------------------
Flooring NA
Operating income (loss) $ 74,605 (28,950 )
Adjustments to segment operating income (loss):
Restructuring, acquisition and integration-related

 and other costs                                           (1,113 )    28,174
 Legal settlements, reserves and fees                     (10,250 )         -

-------------------------------------------------------------------------------
Adjusted segment operating income (loss) $ 63,242 (776 )
-------------------------------------------------------------------------------
Adjusted segment operating income (loss) as a percent of net
sales 6.9 % (0.1)%
-------------------------------------------------------------------------------
Flooring ROW
Operating income $ 67,137 35,902
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and
other costs 7,542 18,411
Acquisitions purchase accounting, including inventory
step-up - 1,218
-------------------------------------------------------------------------------
Adjusted segment operating income $ 74,679 55,531
-------------------------------------------------------------------------------
Adjusted segment operating income as a percent of net sales 10.6 % 7.7 %
-----------------------------------------------------------------------------
Corporate and intersegment eliminations
-------------------------------------------------------------------------------

  Operating (loss)                           $   (16,149   )       (14,907   )
  Adjustments to segment operating (loss):
  Legal settlement, reserves and fees              5,598             9,231

-------------------------------------------------------------------------------
Adjusted segment operating (loss) $ (10,551 ) (5,676 )
-------------------------------------------------------------------------------
Reconciliation of Earnings (Loss) Including Noncontrolling Interests Before
Income Taxes to Adjusted Earnings Including Noncontrolling Interests Before
Income Taxes

                                                 Three Months Ended
                                    -------------------------------------------
                                          December
 (Amounts in thousands)                   31, 2023            December 31, 2022

-------------------------------------------------------------------------------
Earnings before income taxes $ 153,633 36,469
Net earnings (loss) attributable
to noncontrolling interests 60 (96 )
Adjustments to earnings including
noncontrolling interests before
income taxes:
Restructuring, acquisition and
integration-related and other
costs 8,591 49,701
Inventory step-up from purchase
accounting - 1,218
Impairment of goodwill and
indefinite-lived intangibles 1,636 -
Legal settlements, reserves and

 fees                                   (4,652 )      9,231
 Release of indemnification asset         (107 )          -

-------------------------------------------------------------------------------
Adjusted earnings including
noncontrolling interests before
income taxes $ 159,161 96,523
-------------------------------------------------------------------------------
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense

                                                      Three Months Ended
                                               --------------------------------
                                                     December          December
 (Amounts in thousands)                              31, 2023          31, 2022

-------------------------------------------------------------------------------
Income tax expense $ 14,205 2,917
Income taxes - reversal of uncertain tax

 position                                           (107 )           -
 European tax restructuring                        9,999             -
 Income tax effect of adjusting items              9,805         9,245

-------------------------------------------------------------------------------
Adjusted income tax expense $ 33,902 12,162
-------------------------------------------------------------------------------
Adjusted income tax rate 21.3 % 12.6 %
-------------------------------------------------------------------------------
The Company supplements its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, with certain non-GAAP financial measures. As required by the Securities and Exchange Commission rules,
the tables above present a reconciliation of the Company's non-GAAP financial measures to the most directly comparable US GAAP measure. Each of the non-GAAP measures set forth above should be considered in addition to the comparable US GAAP measure, and may not be comparable to similarly titled measures reported by
other companies. The Company believes these non-GAAP measures, when reconciled to the corresponding US GAAP measure, help its investors as follows: Non-GAAP revenue measures that assist in identifying growth trends and in comparisons of revenue with prior and future periods and non-GAAP profitability measures that assist in understanding the long-term profitability trends of the Company's business and in comparisons of its profits with prior and future periods.
The Company excludes certain items from its non-GAAP revenue measures because these items can vary dramatically between periods and can obscure underlying business trends. Items excluded from the Company's non-GAAP revenue measures include: foreign currency transactions and translation; more or fewer shipping days in a period and the impact of acquisitions.
The Company excludes certain items from its non-GAAP profitability measures because these items may not be indicative of, or are unrelated to, the Company's
core operating performance. Items excluded from the Company's non-GAAP profitability measures include: restructuring, acquisition and integration- related and other costs, legal settlements, reserves and fees, impairment of goodwill and indefinite-lived intangibles, acquisition purchase accounting, including inventory step-up from purchase accounting, release of indemnification
assets, the reversal of uncertain tax positions and European tax restructuring.
Contact:
James Brunk, Chief Financial Officer
(706) 624-2239
Â