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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 18, 2000
MOHAWK INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 01-19826 52-1604305
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(State or other (Commission File (IRS Employer
Jurisdiction of Number) 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 April 18, 2000, Mohawk Industries, Inc. ("Mohawk") issued a press
release announcing first quarter earnings for 2000. 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 April 18, 2000
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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: April 18, 2000 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 April 18, 2000
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[LETTERHEAD OF MOHAWK INDUSTRIES, INC. APPEARS HERE]
For Release: Immediately
Contact: John D. Swift, Chief Financial Officer
MOHAWK INDUSTRIES, INC. ANNOUNCES
RECORD FIRST QUARTER 2000 RESULTS
Calhoun, Georgia, April 18, 2000 - Mohawk Industries, Inc. (NYSE: MHK) today
announced that diluted earnings per share (EPS) were a first quarter record of
$0.61 per share (33% above last year) or $33,997,000 in net earnings. This
compares to EPS in the first quarter of 1999 of $0.46 per share or $27,892,000
in net earnings. This improvement in net earnings was a result of higher sales
and gross earnings and lower selling, general and administrative expenses as a
percentage of net sales. Net sales for the quarter increased 8% to $765,083,000
compared to $707,167,000 for the first quarter of 1999. This sales increase was
attributable to internal growth and the impact of a full quarter of results from
the Image acquisition. Sales, excluding the effect of the Image acquisition,
increased 6% over the same period in 1999. Gross earnings dollars increased very
favorably despite cost increases related to oil prices that have impacted many
phases of the business. Gross earnings percent to net sales was basically flat
with last year as oil related cost increases were offset by productivity
improvements, selling price increases and the previously announced change in
depreciable lives of fixed assets. The reduction in selling, general and
administrative expenses as a percentage of net sales results from better cost
control and better leveraging of these costs with higher sales volume.
In commenting on the first quarter performance, David L. Kolb, Chairman and CEO,
stated, "Our results for the first quarter continue to reflect the strong
customer acceptance of our products and the hard work of our dedicated
employees. Seventeen consecutive quarters of record earnings (when compared to
the same previous year's quarters) clearly indicates the company's ability to
deal with changing business environments. We are very happy with these results
and look forward to continued growth. We want to express our appreciation to our
loyal customers and employees for helping us achieve these results. We believe
that we have the people, the manufacturing capabilities, the marketing
strategies, the distribution network and the Mohawk brand awareness to continue
producing strong results in future periods.
As our stock price remains at levels below our expectations, we will continue
the repurchase program previously authorized by our Board of Directors. During
the first quarter, we purchased an additional 2,121,000 shares of our stock and
we have purchased 6,136,000 shares since the inception of the program in
September 1999. In addition, we continue to review and update our business
strategies to introduce new products that we believe will add value to our
company. We believe our customers want hard surface products that are associated
with the respected Mohawk brand. We have recently introduced a line of hardwood
flooring and we are expanding our tile and laminate programs.
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Finally, we are very pleased with the recognition we received recently in the
financial press. We made both the Fortune 500 list (as number 495) and the
Forbes 500 list (as number 467) when ranked by net sales. Even more impressive,
we ranked number 39 on Fortune magazine's list of the fastest growing companies
(profits) for the period from 1994 through 1999 with a 31.6% annual growth
rate."
Certain of the statements in the immediately preceding paragraphs, particularly
anticipating future financial performance, business prospects, growth and
operating strategies, proposed acquisitions, new products and similar matters,
and those preceded by, followed by or that otherwise include the words
"believes," "expects," "anticipates," "intends," "estimates," or similar
expressions constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended. 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. Those
statements are based on assumptions regarding the Company's ability to maintain
its manufacturing capabilities, marketing strategies, distribution network and
its Mohawk brand awareness. These or other assumptions could prove inaccurate
and therefore, there can be no assurance that the "forward-looking statements"
will, prove to be accurate. Forward-looking statements involve a number of risks
and uncertainties. The following important factors affect the future results of
Mohawk and could cause those results to differ materially from those expressed
in the forward-looking statements: materially adverse changes in economic
conditions generally in the carpet, rug and floorcovering markets served by
Mohawk; competition from other carpet, rug and floorcovering manufacturers; oil
price increases; raw material prices; timing and level of capital expenditures;
the successful integration of acquisitions including the challenges inherent in
diverting Mohawk's management attention and resources from other strategic
matters and from operational matters for an extended period of time; the
successful introduction of new products; the successful rationalization of
existing operations; and other risks identified from time to time in the
Company's SEC reports and public announcements.
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 "Mohawk,"
"Aladdin," "Bigelow," "Custom Weave," "Durkan," "Galaxy," "Harbinger," "Helios,"
"Horizon," Image," "Karastan," "Mohawk Commercial," "World," and "Wunda
Weve." Mohawk offers a broad line of area and washable rugs branded by Karastan,
Aladdin, Newmark & James and American Rug Craftsmen and decorative throw
blankets, placemats, pi1lows and chairpads branded by American Weavers. Mohawk
also offers a complete laminate product line and distributes carpet padding and
ceramic tile. The Company markets its products primarily through retailers and
dealers.
There will be a conference call Wednesday, April 19, 1999
at 11:30 AM Eastern Time
The telephone number to call is 1-800-603-9255.
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MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
Three Months Ended
Consolidated Statement of Earnings Data --------------------------
(Amounts in thousands, except per share data) Apr. 1, 2000 Apr. 3, 1999
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Net sales $765,083 707,167
Cost of sales 574,520 528,838
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Gross profit 190,563 178,329
Selling, general and administrative expenses 124,857 122,665
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Operating income 65,706 55,664
Interest expense 8,740 7,854
Other expense, net 773 1,708
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Earnings before income taxes 56,193 46,102
Income taxes 22,196 18,210
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Net earnings $ 33,997 27,892
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Basic earnings per share $ 0.61 0.46
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Weighted-average common shares outstanding 55,611 60,565
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Diluted earnings per share $ 0.61 0.46
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Weighted-average common and dilutive potential common
shares outstanding 56,097 61,285
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Consolidated Balance Sheet Data
(Amounts in thousands) Apr. 1, 2000 Apr. 3, 1999
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ASSETS
Current assets:
Receivables $ 371,329 361,027
Inventories 553.267 498,972
Prepaid expenses 14,985 8,378
Deferred income taxes 76,628 52,571
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Total current assets 1,016,209 920.948
Property, plant and equipment, net 626,276 591,626
Other assets 119,215 111,089
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$1,761,700 1,623,663
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 33,920 197,087
Accounts payable and accrued expenses 420,400 381,550
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Total Current liabilities 454,320 578,637
Long-term debt, less current portion 573,074 363,369
Deferred income taxes and other long-term liabilities 53,975 35,950
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Total liabilities 1,080,369 977,956
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Total stockholders' equity 681,331 645,707
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$1,761,700 1,623,663
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Dates for Future Press Releases and Conference Calls:
Press Release Conference Call
1st Qtr. 2000 April 18 April 19 11:30 a.m. (800-603-9255)
2nd Qtr. 2000 July 20 July 21 11:00 a.m. "
3rd Qtr. 2000 October 19 October 20 11:00 a.m. "
4th Qtr. 2001 February 8 February 9 11:00 a.m. "
