<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Act of 1934
Date of Report (Date of earliest event reported): November 20, 1998
MOHAWK INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 01-19826 52-1604305
- ----------------- ------------------------ -------------------
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
160 South Industrial Blvd., Calhoun, Georgia 30701
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(Address, including zip code, of principal executive offices)
(706) 629-7721
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(Registrant's telephone number, including area code)
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Item 5. Other Events
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On November 20, 1998, Mohawk Industries, Inc. ("Mohawk") issued a
press release containing certain supplemental statement of earnings data
for the year and each of the four quarters in the year ended December 31,
1997, and the nine months and each of the three quarters in the nine months
ended September 26, 1998. The supplemental statement of earnings data has
been restated to include the accounts and results of operations of World
Carpets, Inc., which Mohawk acquired on November 12, 1998. A copy of such
press release is included as an exhibit to this report and incorporated
herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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C. Exhibits
99.1 Press Release dated November 20, 1998
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Mohawk Industries, Inc.
Date: November 20, 1998 By: /s/ Frank H. Boykin
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Frank H. Boykin
Corporate Controller
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INDEX TO EXHIBITS
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Exhibit
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99.1 Press Release dated November 20, 1998
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EXHIBIT 99.1
Mohawk Industries, Inc.
Press Release dated November 20, 1998
NEWS RELEASE
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[LOGO OF MOHAWK INDUSTRIES INC. APPEARS HERE]
POST OFFICE BOX 12069
SOUTH INDUSTRIAL BLVD.
CALHOUN, GA 30703
(706) 629-7721
FOR RELEASE: IMMEDIATELY
CONTACT: JOHN D. SWIFT, CHIEF FINANCIAL OFFICER
MOHAWK INDUSTRIES, INC. RESTATES 1997 AND 1998 STATEMENTS
OF EARNINGS FOR WORLD CARPETS, INC. MERGER
Calhoun, Georgia, November 20, 1998 - Mohawk Industries, Inc. (NYSE: MHK)
exchanged 4,899,992 shares of its common stock for all of the outstanding
capital stock of World Carpets, Inc., on November 12, 1998, in a business
combination accounted for under the pooling-of-interests basis of accounting.
On November 12, 1998, the Securities and Exchange Commission declared effective
a registration statement to register for resale 4,899,992 shares of Mohawk's
common stock issued in connection with the merger. The supplemental
consolidated financial statements included in the registration statement give
retroactive effect to the merger. Generally accepted accounting principles
proscribe giving effect to a consummated business combination accounted for by
the pooling-of-interests method in financial statements that do not include the
date of consummation. The financial statements included in the registration
statement and attached to the press release do not extend through the date of
consummation. However, they will become the historical consolidated financial
statements of Mohawk after financial statements covering the date of
consummation of the business combination are issued. The attached consolidated
statements of earnings data of Mohawk for the year and each of the fiscal
quarters in the year ended December 31, 1997 and the nine months and each of the
fiscal quarters in the nine month period ended September 26, 1998 have been
restated to give retroactive effect to the merger of Mohawk and World.
Mohawk is a leading producer of woven and tufted broadloom carpet and rugs for
residential and commercial applications. The Company designs, manufactures and
markets carpet in a broad range of colors, textures and patterns and is widely
recognized through its premier brand names, some of which include "Aladdin,"
"Alexander Smith," "Bigelow," "Galaxy," "Harbinger," "Helios," "Horizon,"
"Karastan," "Mohawk," "Mohawk Commercial" and "World." Mohawk offers a broad
line of washable accent and bath rugs through Aladdin and Newmark & James; area
rugs through Karastan, American Rug Craftsmen and American Weavers; and
decorative throws, placemats, table runners and kitchen chair pads through
American Weavers. Mohawk also offers a complete laminate product line under the
INSIGNIA brand name and distributes carpet padding and ceramic tile. The
Company markets its products primarily through retailers and commercial dealers.
#####
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MOHAWK INDUSTRIES, INC.
CONSOLIDATED SUPPLEMENTAL STATEMENTS OF EARNINGS DATA
NINE MONTHS ENDED SEPTEMBER 26, 1998
(in thousands, except per share data)
<TABLE>
<CAPTION>
Fiscal Quarters Ended Nine
--------------------------------- Months Ended
March 28, June 27, Sept. 26, Sept. 26,
1998 1998 1998 1998
-------- -------- -------- ----------
<S> <C> <C> <C> C>
Net sales $559,963 $660,441 $689,994 $1,910,398
Cost of sales $435,096 $494,735 $522,936 $1,452,767
-------- -------- -------- ----------
Gross profit $124,867 $165,706 $167,058 $ 457,631
Selling, general and administrative expenses $ 91,337 $102,713 $101,973 $ 296,023
-------- -------- -------- ----------
Operating income $ 33,530 $ 62,993 $ 65,085 $ 161,608
-------- -------- -------- ----------
Other expense:
Interest expense $ 7,561 $ 7,604 $ 6,836 $ 22,001
Other expense (income), net $ (240) $ 444 $ 598 $ 802
-------- -------- -------- ----------
$ 7,321 $ 8,048 $ 7,434 $ 22,803
-------- -------- -------- ----------
Earnings before income taxes $ 26,209 $ 54,945 $ 57,651 $ 138,805
Income taxes $ 11,614 $ 21,450 $ 22,928 $ 55,992
-------- -------- -------- ----------
Net earnings $ 14,595 $ 33,495 $ 34,723 $ 82,813
======== ======== ======== ==========
Basic earnings per share $ 0.26 $ 0.59 $ 0.61 $ 1.45
======== ======== ======== ==========
Weighted-average common shares outstanding 57,116 57,227 57,285 57,210
======== ======== ======== ==========
Diluted earnings per share $ 0.25 $ 0.58 $ 0.60 $ 1.43
======== ======== ======== ==========
Weighted-average common and dilutive potential
common shares outstanding 57,827 58,024 58,019 57,957
======== ======== ======== ==========
</TABLE>
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MOHAWK INDUSTRIES, INC.
CONSOLIDATED SUPPLEMENTAL STATEMENTS OF EARNINGS DATA
YEAR ENDED DECEMBER 31, 1997
(in thousands, except per share data)
<TABLE>
<CAPTION>
Fiscal Quarters Ended
---------------------------------------------- Year Ended
March 29, June 28, Sept. 27, Dec. 31, Dec. 31,
1997 1997 1997 1997 1997
-------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Net sales $514,993 $581,539 $600,843 $629,966 $2,327,341
Cost of sales $405,112 $451,687 $464,612 $486,726 $1,808,137
-------- -------- -------- -------- ----------
Gross profit $109,881 $129,852 $136,231 $143,240 $ 519,204
Selling, general and administrative expense $ 85,042 $ 86,775 $ 90,748 $ 91,963 $ 354,528
Carrying value reduction of assets held for sale $ 5,500 $ 5,500
Compensation expense for stock option exercises $ 2,600 $ 2,600
-------- -------- -------- -------- ----------
Operating income $ 24,839 $ 43,077 $ 45,483 $ 43,177 $ 156,576
-------- -------- -------- -------- ----------
Other expense:
Interest expense $ 9,640 $ 9,458 $ 8,618 $ 6,835 $ 34,551
Other expense (income), net $ (725) $ 556 $ 535 $ 81 $ 447
-------- -------- -------- -------- ----------
$ 8,915 $ 10,014 $ 9,153 $ 6,916 $ 34,998
-------- -------- -------- -------- ----------
Earnings before income taxes $ 15,924 $ 33,063 $ 36,330 $ 36,261 $ 121,578
Income taxes $ 7,193 $ 14,164 $ 14,146 $ 12,651 $ 48,154
-------- -------- -------- -------- ----------
Net earnings $ 8,731 $ 18,899 $ 22,184 $ 23,610 $ 73,424
======== ======== ======== ======== ==========
Basic earnings per share $ 0.15 $ 0.33 $ 0.39 $ 0.41 $ 1.29
======== ======== ======== ======== ==========
Weighted-average common shares outstanding 56,679 56,707 56,835 57,029 56,812
======== ======== ======== ======== ==========
Diluted earnings per share $ 0.15 $ 0.33 $0.39 $0.41 $ 1.28
======== ======== ======== ======== ==========
Weighted-average common and dilutive potential
common shares outstanding 57,214 57,078 57,354 57,568 57,303
======== ======== ======== ======== ==========
</TABLE>
