Tempur Sealy International said its total net sales decreased 5.4% to $832.4 million in its third quarter, which ended Sept. 30. Net income increased 93.5% to $77.8 million.

The company said that on a constant currency basis, total net sales decreased 4.6%, with a decrease of 5.8% in the North America business segment and an increase of 1.8% in the international business segment.

Gross margin was 43.5% as compared to 40.9% in the third quarter of 2015, the company said.

Operating income increased 18.2% to $131.1 million, or 15.7% of net sales, as compared to $110.9 million, or 12.6% of net sales, for the same period last year.

Net income increased 93.5% to $77.8 million as compared to $40.2 million in the third quarter of 2015. Net income increased 11.3% to $77.8 million as compared to adjusted net income of $69.9 million in last year’s period. The company had no adjustments to GAAP net income in the third quarter of 2016.

"We are pleased to report record EBITDA and GAAP EPS for the quarter,” said Tempur Sealy International Chairman and CEO Scott Thompson. “The flexibility of our business model was displayed this quarter as our top line sales were below our original expectations yet we delivered significant margin expansion and 19% EPS growth. We continue to effectively execute on our core strategy to drive our long-term operating performance."

Earnings before interest, tax, depreciation and amortization increased 27.7% to $155 million as compared to $121.4 million for the third quarter of 2015. EBITDA increased 8.9% as compared to adjusted EBITDA of $142.3 million in the third quarter of 2015.

Earnings per diluted share increased 106.3% to $1.32 as compared to 64 cents per share in the third quarter of 2015. EPS increased 18.9% to $1.32 as compared to adjusted EPS of $1.11 in the third quarter of 2015.

The company ended the third quarter of 2016 with total debt of $1.7 billion and consolidated funded debt less qualified cash of $1.6 billion.

During the third quarter of 2016, the company repurchased 1.4 million shares of its common stock for a total cost of $96 million. As of Sept. 30, the company had approximately $280 million available under its existing share repurchase authorization, officials said.

(Source: furnituretoday.com  Author: David Perry)