Tempur Sealy (TPX) Updates on Outlook; Sees Q3 Sales Below Prior Expectations

September 27, 2016 4:11 PM EDT
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Tempur Sealy International, Inc. (NYSE: TPX) provided an update to its financial guidance for full year 2016 and sales trends in advance of its participation at a financial conference.

Tempur Sealy International, Inc. Chairman and CEO Scott Thompson commented, "Third quarter net sales are below our prior expectations. We currently expect net sales for the full year to be down 1 to 3 percent as compared to 2015. For the full year 2016, the Company currently expects Adjusted EBITDA to range from $500 million to $525 million."

Thompson concluded, "While our net sales are below expectations, our operational initiatives are going well and are continuing to drive considerable margin expansion. The net impact of the revenue shortfall and our continued margin expansion is that we felt it was appropriate to lower the midpoint of our adjusted EBITDA guidance by 5%. The midpoint of this updated guidance implies an increase in adjusted EBITDA of approximately 12% and approximately 20% growth in adjusted earnings per share compared to 2015."

The Company will report third quarter results on October 27, 2016 and host an investor call.

The Company noted its expectations are based on information available at the time of this release, and are subject to changing conditions, many of which are outside of the Company's control.

As previously announced, Tempur Sealy management is scheduled to present at the Deutsche Bank Annual Leveraged Finance Conference today. As the quarter is not closed additional comments on third quarter performance will be limited.

Date: September 27, 2016 Time: 2:15 p.m. local time, 5:15 p.m. ET Location: Phoenix, AZ

The presentation is being webcast and will also be accessible on the investor relations section of the Company's website, http://www.tempursealy.com. Time listed is subject to change.

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