<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[Mark One]
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 1, 2000
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number
01-19826
MOHAWK INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1604305
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
P. O. Box 12069, 160 S. Industrial Blvd., Calhoun, Georgia 30701
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (706) 629-7721
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [_]
The number of shares outstanding of the issuer's classes of capital stock as
of May 4, 2000, the latest practicable date, is as follows: 54,146,786 shares of
Common Stock, $.01 par value.
- --------------------------------------------------------------------------------
<PAGE>
MOHAWK INDUSTRIES, INC.
INDEX
Page No.
-------
Part I. Financial Information:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
April 1, 2000 and December 31, 1999 3
Condensed Consolidated Statements of Earnings -
Three months ended April 1, 2000 and April 3, 1999 5
Condensed Consolidated Statements of Cash Flows -
Three months ended April 1, 2000 and April 3, 1999 6
Notes to Condensed Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Item 3. Quantitative and Qualitative Disclosures About
Market Risks 12
Part II. Other Information 12
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
April 1, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Current assets:
Receivables $ 371,329 337,824
Inventories 553,267 494,774
Prepaid expenses 14,985 25,184
Deferred income taxes 76,628 76,628
---------- ---------
Total current assets 1,016,209 934,410
---------- ---------
Property, plant and equipment, at cost 1,159,992 1,139,660
Less accumulated depreciation and
amortization 533,716 514,846
---------- ---------
Net property, plant and equipment 626,276 624,814
---------- ---------
Other assets 119,215 123,649
---------- ---------
Total assets $1,761,700 1,682,873
========== =========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
April 1, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Current liabilities:
Current portion of long-term debt $ 33,920 33,961
Accounts payable and accrued expenses 420,400 340,392
---------- ---------
Total current liabilities 454,320 374,353
Deferred income taxes 53,783 53,783
Long-term debt, less current portion 572,074 562,104
Other long-term liabilities 192 87
---------- ---------
Total liabilities 1,080,369 990,327
---------- ---------
Stockholders' equity:
Preferred stock, $.01 par value; 60 shares
authorized; no shares issued - -
Common stock, $.01 par value; 150,000 shares
authorized; 60,675 and 60,657 shares
issued in 2000 and 1999, respectively 607 607
Additional paid-in capital 180,630 179,993
Retained earnings 629,929 595,932
---------- ---------
811,166 776,532
Less treasury stock at cost; 6,075 in
shares in 2000 and 3,952 in 1999 129,835 83,986
---------- ---------
Total stockholders' equity 681,331 692,546
---------- ---------
Total liabilities and stockholders'
equity $1,761,700 1,682,873
========== =========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------
April 1, 2000 April 3, 1999
------------- -------------
<S> <C> <C>
Net sales $765,083 707,167
Cost of sales 574,520 528,838
-------- -------
Gross profit 190,563 178,329
Selling, general and administrative expenses 124,857 122,665
-------- -------
Operating income 65,706 55,664
-------- -------
Other expense:
Interest expense 8,740 7,854
Other expense, net 773 1,708
-------- -------
9,513 9,562
-------- -------
Earnings before income taxes 56,193 46,102
Income taxes 22,196 18,210
-------- -------
Net earnings $ 33,997 27,892
======== =======
Basic earnings per share $ 0.61 0.46
======== =======
Weighted-average common shares outstanding 55,611 60,565
======== =======
Diluted earnings per share $ 0.61 0.46
======== =======
Weighted-average common and dilutive potential
common shares outstanding 56,097 61,285
======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------------------
April 1, 2000 April 3, 1999
-------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 33,997 27,892
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 20,875 23,473
Provision for doubtful accounts 4,204 3,408
(Gain) loss on sale of property, plant
and equipment (45) 44
Changes in operating assets and
liabilities, net of effects of acquisitions:
Receivables (37,709) (7,906)
Inventories (58,493) (37,138)
Accounts payable and accrued expenses 89,504 (14,700)
Other assets and prepaid expenses 10,400 16,441
Other liabilities 105 (475)
-------- -------
Net cash provided by operating
activities 62,838 11,039
-------- -------
Cash flows from investing activities:
Additions to property, plant and equipment, (18,059) (30,449)
net
Acquisitions - (162,463)
-------- -------
Net cash used in investing
activities (18,059) (192,912)
-------- -------
Cash flows from financing activities:
Net change in revolving line of credit 7,524 184,864
Redemption of acquisition indebtedness - (20,917)
Proceeds (redemption) of IRBs and other,
net of proceeds 2,405 (4,951)
Change in outstanding checks in excess of cash (9,496) 13,737
Acquisition of treasury stock (45,849) -
Common stock transactions 637 6,756
-------- -------
Net cash (used in) provided by
financing activities (44,779) 179,489
-------- -------
Net change in cash - (2,384)
Cash, beginning of period - 2,384
-------- -------
Cash, end of period $ - -
======== =======
Net cash paid during the period for:
Interest $ 7,983 10,621
======== =======
Income taxes $ 9,825 16,088
======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
6
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
1. The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with instructions to Form 10-Q and do not include
all of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. These statements should be read in
conjunction with the financial statements and notes thereto included in the
Company's 1999 Annual Report filed on Form 10-K, as filed with the Securities
and Exchange Commission, which includes consolidated financial statements for
the fiscal year ended December 31, 1999.
The Company's basic earnings per share are computed by dividing net earnings by
the weighted-average common shares outstanding, and diluted earnings per share
are computed by dividing net earnings by the weighted-average common and
dilutive potential common shares outstanding. Dilutive common stock options are
included in the diluted earnings per share calculation using the treasury stock
method.
2. Receivables
Receivables are as follows:
<TABLE>
<CAPTION>
April 1, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Customers, trade $446,740 405,477
Other 1,545 2,826
-------- -------
448,285 408,303
Less allowance for discounts, returns, claims
and doubtful accounts 76,956 70,479
-------- -------
Net receivables $371,329 337,824
======== =======
</TABLE>
3. Inventories
The components of inventories are as follows:
<TABLE>
<CAPTION>
April 1, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Finished goods $280,307 254,179
Work in process 74,309 65,456
Raw materials 198,651 175,139
-------- -------
Total inventories $553,267 494,774
======== =======
</TABLE>
4. Other assets
Other assets are as follows:
<TABLE>
<CAPTION>
April 1, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Goodwill, net of accumulated amortization of
$13,961 and $13,171, respectively $112,770 113,560
Other assets 6,445 10,089
-------- -------
Total other assets $119,215 123,649
======== =======
</TABLE>
7
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
5. Accounts payable and accrued expenses
Accounts payable and accrued expenses are as follows:
<TABLE>
<CAPTION>
April 1, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Outstanding checks in excess of cash $ 32,877 42,373
Accounts payable, trade 203,076 159,812
Accrued expenses 113,204 83,253
Accrued compensation 71,243 54,954
-------- -------
Total accounts payable and accrued
expenses $420,400 340,392
======== =======
</TABLE>
6. Property, Plant and Equipment
Effective January 1, 2000, the Company changed the estimated useful lives of
buildings (25 years to 35 years), tufting equipment (7 years to 10 years),
extrusion equipment (7 years to 15 years) and furniture and fixtures (5 years to
7 years). Management believes the change more accurately reflects the actual
lives of these assets and is more consistent with industry practice. The
prospective change is estimated to reduce annual depreciation expense by
approximately $20,000 in 2000.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Effective January 1, 2000, the Company changed the estimated useful lives of
certain property, plant and equipment. Management believes this change more
accurately reflects the actual lives of these assets and is more consistent with
industry practice. The prospective change is estimated to reduce annual
depreciation expense by approximately $20 million in 2000.
Results of Operations
Quarter Ended April 1, 2000 as Compared with Quarter Ended April 3, 1999
- ------------------------------------------------------------------------
Net sales for the quarter ended April 1, 2000 were $765.1 million, reflecting
an increase of $57.9 million, or approximately 8%, over the $707.2 million
reported in the quarter ended April 3, 1999. All major product categories
achieved sales increases for the first quarter of 2000 as compared to 1999. The
Company believes that the first quarter of 2000 net sales increase was
attributable to internal growth and the impact of the acquisition of certain
assets of Image Industries, Inc. on January 29, 1999.
Gross profit for the first quarter of the current year was $190.6 million
(24.9% of net sales) and represented an increase over the gross profit of $178.3
million (25.2% of net sales) for the prior year's quarter. Gross profit as a
percentage of sales was unfavorably impacted by raw material price increases,
resulting from rising oil prices, which were partially offset by productivity
improvements, selling price increases and an increase in the estimated useful
lives of property, plant and equipment which was effective January 1, 2000.
Selling, general and administrative expenses for the current quarter were
$124.9 million (16.3% of net sales) compared to $122.7 million (17.3% of net
sales) for the prior year's first quarter. The decrease was primarily due to
better cost control and better leveraging of these expenses against higher sales
volume in the current quarter.
Interest expense for the current quarter was $8.7 million compared to $7.9
million in the first quarter of 1999. The primary factor contributing to the
increase was an increase in debt levels, which was attributable to the stock
repurchase program, capital expenditures, and an increase in the weighted
average borrowing rate compared to the first quarter of 1999.
Income tax expense was $22.2 million, or 39.5% of earnings before income taxes
in the current quarter compared to $18.2 million, or 39.5% of earnings before
income taxes for the prior year's first quarter.
Liquidity and Capital Resources
The Company's primary capital requirements are for working capital, capital
expenditures and acquisitions. The Company's capital needs are met through a
combination of internally generated funds, bank credit lines and credit terms
from suppliers.
The level of accounts receivable increased from $337.8 million at the
beginning of 2000 to $371.3 million at April 1, 2000. The $33.5 million
increase was attributable to strong sales growth. Inventories increased from
$494.8 million at the beginning of 2000 to $553.3 million at April 1, 2000, due
primarily to the need for a higher level of inventory to meet the increased
sales volume and seasonal demand.
Capital expenditures totaled $18.1 million for the first three months of 2000,
and were incurred primarily to modernize and expand manufacturing facilities and
equipment. The Company's capital projects are primarily focused on increasing
capacity, improving productivity and reducing costs. Capital spending during
2000 is expected to range from $87 million to $102 million, the majority of
which will be used to purchase equipment to increase production capacity and
productivity.
During 1999, the Company's Board of Directors authorized the repurchase of up
to 10 million shares of its outstanding common shares. For the quarter ended
April 1, 2000, a total of approximately 2.1 million shares of the Company's
common stock has been purchased at an aggregate cost of approximately $45.8
million. Since the inception of the program, a total of approximately 6.1
million shares has been purchased at an aggregate cost of
9
<PAGE>
approximately $129.8 million. All of this repurchase has been financed through
the Company's operations and revolving line of credit.
Impact of Inflation
Inflation affects the Company's manufacturing costs and operating expenses.
The carpet industry has experienced moderate inflation in the prices of raw
materials and outside processing for the last three years. The Company has
generally passed along nylon fiber price increases to its customers.
Seasonality
The carpet business is seasonal, with the Company's second, third and fourth
quarters typically producing higher net sales and operating income. By
comparison, results for the first quarter tend to be the weakest. This
seasonality is primarily attributable to consumer residential spending patterns
and higher installation levels during the spring and summer months.
Certain factors affecting the Company's performance
In addition to the other information provided in this Form 10-Q, the following
risk factors should be considered when evaluating an investment in shares of
Mohawk common stock.
A failure by Mohawk to complete acquisitions and successfully integrate acquired
- --------------------------------------------------------------------------------
operations could materially and adversely affect its business.
- --------------------------------------------------------------
Management intends to pursue acquisitions of complementary businesses as part
of its business and growth strategies. Although management regularly evaluates
acquisition opportunities, it cannot offer assurance that it will be able to:
. successfully identify suitable acquisition candidates;
. obtain sufficient financing on acceptable terms to fund acquisitions;
. complete acquisitions;
. integrate acquired operations into Mohawk's existing operations; or
. profitably manage acquired businesses.
Acquired operations may not achieve levels of sales, operating income or
productivity comparable to those of Mohawk's existing operations, or otherwise
perform as expected. Acquisitions may also involve a number of special risks,
some or all of which could have a material adverse effect on Mohawk's business,
results of operations and financial condition, including, among others:
. possible adverse effects on Mohawk's operating results;
. diversion of Mohawk management's attention and its resources; and
. dependence on retaining and training acquired key personnel.
The carpet industry is cyclical and a downturn in the overall economy could
- ---------------------------------------------------------------------------
lessen the demand for Mohawk's products and impair growth and profitability.
- ----------------------------------------------------------------------------
The carpet industry is cyclical and is influenced by a number of general
economic factors. Prevailing interest rates, consumer confidence, spending for
durable goods, disposable income, turnover in housing and the condition of the
residential and commercial construction industries (including the number of new
housing starts and the level of new commercial construction) all have an impact
on Mohawk's growth and profitability. In addition, sales of Mohawk's principal
products are related to construction and renovation of commercial and
residential buildings. Any adverse cycle could lessen the overall demand for
Mohawk's products and could, in turn, impair Mohawk's growth and profitability.
The carpet business is seasonal and this seasonality causes Mohawk's results of
- -------------------------------------------------------------------------------
operations to fluctuate on a quarterly basis.
- ---------------------------------------------
Mohawk is a calendar year end company and its results of operations for the
first quarter tend to be the weakest. Mohawk's second, third and fourth quarters
typically produce higher net sales and operating income. These results are
primarily due to consumer residential spending patterns and more carpet being
installed in the spring and summer months.
10
<PAGE>
Mohawk's business is competitive and a failure by Mohawk to compete effectively
- -------------------------------------------------------------------------------
could have a material and adverse impact on Mohawk's results of operations.
- ---------------------------------------------------------------------------
Mohawk operates in a highly competitive industry. Mohawk and other
manufacturers in the carpet industry compete on the basis of price, style,
quality and service. Some of Mohawk's competitors may have greater financial
resources at their disposal. Mohawk has one competitor whose size could allow it
certain manufacturing cost advantages compared to other industry participants.
If competitors substantially increase production and marketing of competing
products, then Mohawk might be required to lower its prices or spend more on
product development, marketing and sales, which could adversely affect Mohawk's
profitability.
An increase in the cost of raw materials could negatively impact Mohawk's
- -------------------------------------------------------------------------
profitability.
- --------------
The cost of raw materials has a significant impact on the profitability of
Mohawk. In particular, Mohawk's business requires it to purchase large volumes
of nylon fiber and polypropylene resin, which is used to manufacture fiber. The
cost of these raw materials is related to oil prices. Mohawk does not have any
long-term supply contracts for any of these products. While Mohawk generally
attempts to match cost increases with price increases, large increases in the
cost of such raw materials could adversely affect its business, results of
operations and financial condition if it is unable to pass these costs through
to its customers.
Mohawk may be responsible for environmental cleanup, which could negatively
- ---------------------------------------------------------------------------
impact profitability.
- ---------------------
Various federal, state and local environmental laws govern the use of Mohawk's
facilities. Such laws govern:
. discharges to air and water;
. handling and disposal of solid and hazardous substances and waste;
and
. remediation of contamination from releases of hazardous substances in
Mohawk's facilities and off-site disposal locations.
Mohawk's operations are also governed by the laws relating to workplace safety
and worker health, which, among other things, establish asbestos and noise
standards and regulate the use of hazardous chemicals in the workplace. Mohawk
has taken and will continue to take steps to comply with these laws. Based upon
current available information, Mohawk believes that complying with environmental
and safety and health requirements will not require material capital
expenditures in the foreseeable future. However, Mohawk cannot provide assurance
that complying with these environmental or health and safety laws and
requirements will not adversely affect its business, results of operations and
financial condition. Future laws, ordinances or regulations could give rise to
additional compliance or remediation costs, which could have a material adverse
effect on its business, results of operations and financial condition.
Forward-Looking Information
Certain of the matters discussed in the preceding pages, particularly
regarding 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. Forward-
looking statements involve a number of risks and uncertainties. The following
important factors, in addition to those discussed elsewhere in this document,
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 management's 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.
11
<PAGE>
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company's market risk-sensitive instruments do not subject the Company to
material market risk exposures.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is involved in routine litigation from time to time in the regular
course of its business. Except as noted below, there are no material legal
proceedings pending or known to be contemplated to which the Company is a party
or to which any of its property is subject.
In December 1995, the Company and four other carpet manufacturers were added
as defendants in a purported class action lawsuit, In re Carpet Antitrust
Litigation, pending in the United States District Court for the Northern
District of Georgia, Rome Division. The amended complaint alleges price-fixing
regarding polypropylene products in violation of Section One of the Sherman Act.
In September 1997, the Court determined that the plaintiffs met their burden of
establishing the requirements for class certification and granted the
plaintiffs' motion to certify the class. The Company is a party to two
consolidated lawsuits captioned Gaehwiler v. Sunrise Carpet Industries, Inc. et
al. and Patco Enterprises, Inc. v. Sunrise Carpet Industries, Inc. et al., both
of which were filed in the Superior Court of the State of California, City and
County of San Francisco, in 1996. Both complaints were brought on behalf of a
purported class of indirect purchasers of carpet in the State of California and
seek damages for alleged violations of California antitrust and unfair
competition laws. The complaints filed do not specify any amount of damages but
do request for any unlawful conduct to be enjoined and treble damages plus
reimbursement for fees and costs. In October 1998, two plaintiffs, on behalf of
an alleged class of purchasers of nylon carpet products, filed a complaint in
the United States District Court for the Northern District of Georgia against
the Company and two of its subsidiaries, as well as a competitor and one of its
subsidiaries. The complaint alleges that the Company acted in concert with
other carpet manufacturers to restrain competition in the sale of certain nylon
carpet products. The Company has filed an answer, denied the allegations in the
complaint and set forth its defenses. In February 1999, a similar complaint was
filed in the Superior Court of the State of California, City and County of San
Francisco, on behalf of a purported class based on indirect purchases of nylon
carpet in the State of California and alleges violations of California antitrust
and unfair competition laws. The complaints described above do not specify any
specific amount of damages but do request injunctive relief and treble damages
plus reimbursement for fees and costs. The Company believes it has meritorious
defenses and intends to vigorously defend against these actions.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
No. Description
- --- -----------
11 Statement re: Computation of Per Share Earnings
12
<PAGE>
27 Financial Data Schedule
(b) Reports on Form 8-K
Current Report on Form 8-K: Fourth quarter earnings press release, dated
February 10, 2000
13
<PAGE>
SIGNATURES
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 thereunto duly authorized.
MOHAWK INDUSTRIES, INC.
Dated: May 5, 2000 By: /s/ David L. Kolb
-----------------
DAVID L. KOLB, Chairman of the Board
and Chief Executive Officer (principal
executive officer)
Dated: May 5, 2000 By: /s/ John D. Swift
-----------------
JOHN D. SWIFT, Chief Financial Officer,
Vice President-Finance and Assistant
Secretary (principal financial and
accounting officer)
14
<PAGE>
EXHIBIT INDEX
No. Description
- --- -----------
(a) Exhibits
11 Statement re: Computation of Per Share Earnings
27 Financial Data Schedule
15
<PAGE>
EXHIBIT 11
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(In thousands, except per share data)
(Unaudited)
Note: Earnings per share are presented in accordance with Regulation S-K Item
601 (b) and FAS No. 128.
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------------------
April 1, 2000 April 3, 1999
------------- -------------
<S> <C> <C>
Net earnings $33,997 27,892
======= ======
Weighted-average common and dilutive potential
common shares outstanding:
Weighted-average common shares outstanding 55,611 60,565
Add weighted-average dilutive potential common
shares - options to purchase common shares, 486 720
net
------- ------
Weighted-average common and dilutive potential
common shares outstanding 56,097 61,285
Basic earnings per share $ 0.61 0.46
======= ======
Diluted earnings per share $ 0.61 0.46
======= ======
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MOHAWK
INDUSTRIES, INC. QUARTERLY REPORT TO STOCKHOLDERS FOR QUARTER ENDED APRIL 1,
2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> APR-01-2000
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 448,285
<ALLOWANCES> 76,956
<INVENTORY> 553,267
<CURRENT-ASSETS> 1,016,209
<PP&E> 1,159,992
<DEPRECIATION> 533,716
<TOTAL-ASSETS> 1,761,700
<CURRENT-LIABILITIES> 454,320
<BONDS> 572,074
0
0
<COMMON> 607
<OTHER-SE> 810,559
<TOTAL-LIABILITY-AND-EQUITY> 1,761,700
<SALES> 765,083
<TOTAL-REVENUES> 765,083
<CGS> 574,520
<TOTAL-COSTS> 574,520
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 4,204
<INTEREST-EXPENSE> 8,740
<INCOME-PRETAX> 56,193
<INCOME-TAX> 22,196
<INCOME-CONTINUING> 33,997
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 33,997
<EPS-BASIC> .61
<EPS-DILUTED> .61
</TABLE>
