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On April 16, 2009,
reported a 1.3% decline in its Q1 FY09 earnings on lower sales. Net income for the latest first quarter inched down to $13.34 million from $13.51 million a year ago. On a per share basis, earnings remained unchanged at $0.18 per share. Earnings included a non-recurring $1.30 million tax charge related to a change in tax laws. The most recent consensus estimate was a profit of $0.12 per share.
Total revenue decreased 28.4% to $177.10 million from $247.22 million a year ago, due to a decline in domestic and international sales. Domestic revenue slipped 28.0% to $106.43 million from $147.92 million, hurt by a 27.7% decline in retail sales and a 20.6% decrease in direct sales. Similarly, International revenue dropped 28.8% to $70.67 million, as sales from retail, direct, healthcare, and third party channels dropped 27.5%, 39.5%, 26.4%, and 39.1%, respectively. Product-wise, sales from mattresses dipped 29.1% to $119.13 million from $168.05 million. Pillows sales reduced 27.1% to $23.06 million, while sales from other products plunged 26.6% to $34.92 million.
Cost of sales declined 31.5% to $95.24 million from $139.14 million in Q1 FY08. Selling and marketing expenses tumbled 36.3% to $33.87 million from $53.16 million. General, administrative and other costs fell 13.6% to $22.11 million from $25.59 million a year ago.
During the quarter under review, the company reduced its total debt by $19.30 million to $400.00 million. Moreover, TPX generated $26.00 million of operating cash flow compared to $24.59 million in the first quarter of 2008.
Looking ahead, Tempur-Pedic issued full year 2009 guidance for net sales and earnings per share. The management expects net sales for FY09 to range between $700.00 million and $740.00 million and EPS of $0.70 to $0.90 per share.