Sealy Corporation Announces Selected Preliminary Information Relating to Second Quarter 2009 Earnings

Thursday, June 18, 2009 4:52 PM

(Source: PRNewswire-FirstCall) tracking

TRINITY, N.C., June 18 /PRNewswire-FirstCall/ -- Sealy Corporation , the largest bedding manufacturer in the world, today announced selected preliminary information relating to its fiscal 2009 second quarter, to be followed by a conference call at 5:00 p.m. Eastern Time today. The Company separately expects to issue a press release containing its fiscal second quarter 2009 results after the market close on Tuesday, June 30, 2009, to be followed by a conference call at 5:00 p.m. Eastern Time.

Today's press release and conference call are being provided in connection with the Company's comprehensive refinancing plan (the "Refinancing") which was announced on May 13, 2009 and is expected to be completed in July 2009. Following the completion of the Refinancing, the Company does not intend to provide preliminary information relating to its financial results for future periods.

The preliminary information relating to the fiscal 2009 second quarter announced by the Company, which remains subject to completion of full financial statements for the period, is as follows:

                              Q2 2009 Range          Q2 2008 Actual                              -------------          --------------   Total Net Sales:         $294 - $301 million      $375.4 million *   Gross Profit:            $119 - $123 million      $148.4 million *   Gross Profit Margin:     40.1% - 41.1%            39.5%   Income from Operations:  $28 - $30 million        $35.3 million *   Adjusted EBITDA:         $40 - $42 million        $49.8 million *   Adjusted EBITDA Margin:  13.3% - 14.2%            13.3%

* During the second quarter of fiscal 2008, Gross Profit benefited from a change in accounting estimate related to the Company's warrantable and other product return reserves, which resulted in an increase to Sales of approximately $3.7 million, a reduction of Cost of Sales of approximately $4.5 million, and an increase in Income from Operations and Adjusted EBITDA of $8.2 million.

"During the second quarter, we were able to strengthen our competitive position, consistently execute on our strategic initiatives, and improve our operating performance compared to the first quarter of fiscal 2009. We believe that our Company has never been in a stronger strategic position to gain profitable market share on a global basis," stated Larry Rogers, Sealy's President and Chief Executive Officer.

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