Tempur Sealy (NYSE: TPX) reported Q1 EPS of $0.64, $0.12 better than the analyst estimate of $0.52. Revenue for the quarter came in at $1.04 billion versus the consensus estimate of $1.01 billion.

FIRST QUARTER 2021 FINANCIAL SUMMARY

• Total net sales increased 26.9% to $1,043.8 million as compared to $822.4 million in the first quarter of 2020. On a constant currency basis(1), total net sales increased 25.1%, with an increase of 27.3% in the North America business segment and an increase of 13.8% in the International business segment.
• Gross margin was 44.0% as compared to 43.4% in the first quarter of 2020.
• Operating income increased 78.9% to $188.4 million as compared to $105.3 million in the first quarter of 2020. Adjusted operating income(1) was $120.8 million in the first quarter of 2020. There were no adjustments to operating income in the first quarter of 2021.
• Net income increased 118.6% to $130.5 million as compared to $59.7 million in the first quarter of 2020. Adjusted net income(1) increased 85.7% to $134.6 million as compared to $72.5 million in the first quarter of 2020.
• Earnings before interest, tax, depreciation and amortization ("EBITDA")(1) increased 71.1% to $230.1 million as compared to $134.5 million in the first quarter of 2020. Adjusted EBITDA per credit facility(1) increased 52.3% to $230.3 million as compared to $151.2 million in the first quarter of 2020.
• Earnings per diluted share ("EPS") increased 121.4% to $0.62 as compared to $0.28 in the first quarter of 2020. Adjusted EPS(1) increased 88.2% to $0.64 as compared to $0.34 in the first quarter of 2020.
• Net cash provided by operating activities increased to a record $86.3 million as compared to $15.0 million in the first quarter of 2020.

GUIDANCE:

Tempur Sealy sees FY2021 EPS of $2.50-$2.70, versus the consensus of $2.44.

The Company raised its financial guidance for 2021. For the full year, the Company currently expects net sales growth to exceed 20% with adjusted EPS(1) between $2.50 and $2.70. This projection implies 2021 adjusted EBITDA(1) of between $925 million and $975 million. The mid-point of this guidance implies an increase of 36% from the Company's prior year adjusted EPS(1) of $1.91.

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

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