Leggett & Platt (LEG) 1 May 242024 Q1 Earnings call transcript

Greetings, and welcome to the Leggett & Platt First Quarter 2024 Webcast and Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Cassie Branscum, Vice President, Investor Relations. Thank you, Cassie.

You may begin.

to Platt's welcome Earnings Quarter and Call. morning, Leggett First & XXXX Good the Mitch Chief Investor Tyson today CEO; me Executive Manager the call With on of Ryan segment; are Officer; President President Executive Kleiboeker, and President Bedding Talbert, Products Vice President Ben Vice Dolloff, Planning and Relations. Executive CFO; and Hagale, Vice and of Strategic Burns, and President Kolina

will reconciliations. morning and on expressed Leggett of The without replay IR This near- cover will recorded or to you posted allocation, our material. broadcast section financial is Platt results, copyrighted this our & agenda questions available slides is this as our have. of strategy including call the Investor be and release our transcribed, the of documents will press the details of with on a we may release. permission. and summary set we call segment to Mitch capital A a and for call Ben mid-term points is XXXX, outlook any website. made additional will This summary operating supplement contain for website yesterday's yesterday's We discuss follows: including the answer recorded group our Relations not information press details. be financial non-GAAP our and Those discuss section main for our the that conference address being information along in call,

uncertainties, number or statements. objectives, may and and materially no forward-looking revise Actual events statements. expectations, risks differ company update Remarks constitute to undertakes today a results to concerning strategies, these trends the events, results or obligation future due or of

XX-K press please and Risk summary these entitled our release recent Factors of most to yesterday's For factors additional Forward-Looking and the sections in Statements. and a information, risk refer

Mitch. call turn to now I'll the over

you thank our call morning, Good for and joining today.

XXXX will as be call part an an for instrumental leaving last this that exciting will IR of First, be new to We later the miss the and asset and incredible new the been in her. her she share last us will company I want team her an positions has with since Cassie's sincerely throughout opportunity company has our over XX best earnings this to years. role wish various been Cassie her month. the

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strong large have positions and in addressable markets. businesses market core attractive industries Our with

our expand foam XXXX market, compressed have last in our trends specialty XX the years. acquisition which changed significantly ECS addressable mattresses, of us into products, Bedding Bedding meaningfully In to domestic allowing increased the and landscape bedding

Although innovation. challenged growth the and us the intact for remains long-term Bedding rationale market been drive to that acquisition enable and recently, strategic should product has

with a all supply customer and products, components deep businesses design. specialized of are developed In critical X relationship technical our collaborative that

with Automotive comfort and business trends aligned features. example, our For convenience is of increasing

to problems on just specific solve compete differentiation ability with Our rather we OEMs directly means price. partner than to

levels tend our and product include and or on products, and Textile margins In flooring Furniture, generation. operations. high steady businesses cash with based Flooring furniture, of work solid to & most furniture service compete customer our are businesses mature stable and of home These differentiation

with in a from growth. fragmented converting synergies Components our sourcing leverages opportunities business fabric applications Geo and to for landscaping. fabrics Components Geo supply sizable operations as erosion our for industry such textiles, Within control competes

sustainable long-term mind, strategic which for business. priorities, mid-term address are ensuring to of I'll a With blueprint now that near- the context our in our success

our opportunities. sheet structure; strengthening committed company objective. operations and one, profitable improving balance action positioning to three, to and and growth administrative and liquidity; the are: cost for by this We're and financial support two, our priorities taken recently margins maintaining general optimizing Our long-held have strength our

proactively revolving time credit agreement existing a the cushion markets. from facility liquidity with increased for XXXX, residential ratio weak X.Xx XX, Xx The us In near-term demand in March, leverage to end flexibility. we June to our through has amended additional provide in bigger and a creating of

share. per strength. reduce a very that dividend to our improvements announced business was driving solidify we the made up declared evaluation. dividend a capital of Board to thorough This our the of quarterly Yesterday, The in will invest Directors in and free $X.XX following financial decision action long-held

continue we excellence our initiatives efficiency. and enhance to to advance across our operational business our Additionally, drive

will initiatives us in and margin these foundation our strengthen to continue drive mid-term. to expect improvement We allow near- the to financial

changed span. Divested time Bedding facing resulting mattress including imports dramatically industry. relatively a finished mattress stress low in the demand, pressure are from and has manufacturers The domestic numerous short challenges, in overcapacity increased across market financial

The domestic produced large private domestic OEMs, innerspring landscape foam fewer OEM-produced domestic mix innerspring innerspring, price by sold label a a range domestic and have These market mattress hybrid are X/X. to reduced wide where a one points has size market from manufacturers. producers the mattress and at channels of a of effectively through shifted mattresses of largely changes and variety by import of the

market, market the mattresses as is industry. case compete import domestic in place that make a volume for beneficial future. that we of in we and recognize must any dynamic ongoing the will the result always to a anticipate the anti-dumping such In Bedding have today profitably the to a in also reshored the environment, we U.S. changes While

the Bedding Across manufacturing our to we distribution plan footprint. on Products announced optimize and restructuring are executing in segment, our January

operation. progress of distribution date, facilities, our foam specialty on and larger facilities closed remain X to closed a production remaining achieve are Spring making steady into X To manufacturing objectives. facilities We have our smaller and out X and transitioned small spring U.S. track we

completed U.S. operation. innerspring our the We currently activities consolidation by be downsizing expect and still Chinese Spring are to within year-end

facility be foam specialty and underway should additional X by are consolidations complete year-end. Finally,

and entire to As will their complete team I for of be during our restructuring previously announced, time the actions hard transition. dedication this end by work of thank XXXX. want

and wire cost result margins from content continues our strategy to disciplined of higher rod, as combined refocused with spring have operations value team. a Our our targeting management business healthy

However, meaningful volume recovery, restructuring activities other and initiatives improvement. will operational drive

market to a through we Specialty Foam continue customer initial in plan. improvements we demand current and our have manufacturing significant have constrained. to seen company drive many are diversify improvement financially increasingly environment our success, is margin the do drag low profits, operational but our but in Efforts work base recovery more to participants X-wall where

low shift have lower profit. market Bed, a and value on meaningful Adjustable In drag demand products towards been a

drive working hard profit simplify cash are the chain and supply and costs We to flow improvements. to reduce

meaningfully since do acquisition. our bedding has in our in customer branded possible. enables our value that are for improve market customers, opportunities European as drive We as positioning to structure to innersprings, business cost continues bedding base business and changed Our to very remain that our to unique where the competitively our us drive we similar so confident profitability The the but industry faces are has addressing domestic conditions challenges. to Kayfoam team

activities improvement are Specialized Products, operational ongoing each In business. within

progress In to improving good make Automotive, the continues profitability. team

enhancement leverage and evaluate vertical options to opportunities continue efficiency and to automation We integration.

India shifting improve Cylinders, in In reduce we efficiencies are Cylinders, underway. Furniture, and production Flooring In on production some to Products Hydraulic both Aerospace are initiatives Textile our Restructuring and profitability. Hydraulic cost operations to segment are in to efforts also the & improve track.

of to closed line redeployed one foreign our other equipment the manufacturing and products We production a production facilities. have

other to In that Home facilities. closed X Furniture, plant we production have remaining and transferred

We expect that real estate to by midsummer. market

to In Work reduce opportunities Furniture, profitability. we explore to cost improve continue and

further profitability. to operations, manufacturing cost are in our and we administrative improvements our Beyond general evaluating structure drive

our to future the key future. to synergies drive Bedding Geo private capture including content changes semifinished to invest label underway long-term, Specialty greater The and focus goods. and Bedding, the now Automotive our In business support our Shifting through Foam innersprings product plan product Components. and finished focus ability across areas, and we in in

programs leveraging our our to committed and are customers capabilities to expand activities. product for value through foam drive and We springs development hybrid in mattress our

expect meet and tailored attachment in we growth higher stem designs rates from needs. product to will future Additionally, adjustable that consumer beds innovative

growth see as vehicle as and and technology electrification particularly increases. such product offerings actuators, our we motors in Automotive, In convenience potential

business grown we as via growth Components greenfields to our further continue bolt-on anticipate we Geo and and lines Our has time, and small product acquisitions expand over footprint. geographic

value. are position and We will are we that the enhance actions mid-term future to taking confident in the shareholder us the near- for better

but profitability Our our to meet the steps necessary does expectations, we are improve current performance. our not taking

XXXX. first in to quarter at year. on expectations beginning the Moving our the line with were of Results

selling material-related from XXXX versus in quarter and first primarily sales raw $X.X markets down decreases. of First XX% residential the were volume declines, end billion, quarter price

First of down first versus quarter the million million, was EBIT quarter $XX $XX XXXX.

primarily were million, current $XX lower volume, quarter cost price $XX the associated pandemic-related a down nonrecurrence expense. XXXX. lower offset These prior reduction versus EBIT EBIT Adjusted purchase from the bad of partially million acquisition and liability decreased contingent first from was benefit debt less a and EBIT year with year reserve, to increased adjusted by reimbursements. decreases amortization

million, $X million million insurance cash from of million, costs idle by during mostly were $X and in costs the in $X and real were and restructuring proceeds $X costs. comprised offset charges estate Restructuring quarter $XX sales noncash of gains The million respectively.

quarter per share EPS were share a First $X.XX. XXXX decrease and quarter first of per earnings $X.XX, earnings from adjusted XX%

first Moving in growth was our Sales XXXX. eco versus such pocket grids, this versus in to as international combination volume on bottom. higher-value weakness quarter segment Bedding coil along as impact products semifinished the Products partially markets continues first spring volume declines decreased down domestic XX% U.S. quarter and and by offset bounce XXXX, by open Ongoing demand to based. XX% negatively results. wire segment and driven in in Bedding quarter

we Domestic likely in core and trends market saw demand. single digits, mattress similar down was production comfort high

to full expect U.S. we year, slightly the mattress XXXX. versus down consumption be For

compared our in decreased Sales first X% Products quarter XXXX. Specialized to segment

still will first Automotive outperform production Global throughout Automotive new In Automotive, initiating our in due expect in line business quarter. the volumes the year. with our primarily programs to We market XXXX, the production in were

strong and We demand benefit Aerospace backlogs continue business. to our lengthy from industry in experience

XX% First to was up quarter as volume impacts. production continues from recover industry pandemic

changes. were construction lag heavy In softer and first timing by Cylinders, demand impacted in sales negatively markets price quarter Hydraulic of index-based the

heavy segment Home European X% backlogs demand handling down to XXXX. For in in construction & versus Textile flat the Demand weakness markets, the with be full in we in first material by Flooring continues our offset quarter Furniture, U.S. Furniture year, were Sales anticipate Products soft.

We and this seen performance is trade the believe related Asia in than stronger to down. recently consumer U.S. in have

in markets. remains offset softness by Pockets demand Furniture residential markets contract are improvements Work also of low. in

line be demand in XXXX. expect with to XXXX We

activity. Hospitality another by products, has than lower driven Flooring of pandemic In below construction recovered anticipate remodeling slower demand demand well we remains residential levels. lower year and and levels residential expected of

negatively growth quarter partially textiles, Within within Converting and first sales our our civil construction offset furniture were in Components U.S. weak bedding by business. Geo demand business, demand impacted Fabric within by

funding higher year-over-year. year modestly We Geo this be later year expect infrastructure a tailwind demand Components and in anticipate be full will will

uncertain macroeconomic end Despite changed. earnings residential an year challenging sales demand full markets, our has not environment and and guidance in

initiatives, restructuring Our executing outlined on near- is team including strategic plan earlier. priorities mid-term our against management ongoing to remain track, our the and

year. financial I'll over for to our first allocation quarter the outlook to the and review call our details priorities, now turn updated Ben additional capital

Thank you, everyone. Mitch, and good morning,

We dividend discussed to Directors weak and spent a large in that have our our financial position the our decision Mitch management our residential sheet evaluated $X.XX reallocating will balance and team cash pressure end Board of our allocation business continues share. quarterly reduce remarks, near in while to in in invest as made our to portion demand per capital to to priorities determine his the the term carefully enhance deleverage on of earnings. dividends markets continuing As

for sales estate used debt reduction. real from generated cash Additionally, be will

returning grow long a share are and adjusted ratio we us dividends rating. and maintain We buybacks. to of via both to a debt long-term cash In allow Xx expect to EBITDA, through business our strategic combination of expect also leverage term, solid while a shareholders net the to we acquisitions, organically will credit which targeting investment-grade

XXXX, versus In purchasing primarily $X million, first operating of was of payable earnings. percentage by purchases, the a the XX sales well $XXX to first a as volumes cash million improvement and quarter lower points adjusted We timing decrease as lower reduced working of quarter, with XXXX. accounts ended versus first quarter flow an capital driven due negative of XX.X%, of annualized as quarter the basis deflation

as guidance in our from than expect of we $XXX prior $XXX working Cash to expected capital previously to $XXX versus million operations to now anticipated. be million million $XXX from less is million XXXX benefit

million Net the debt of debt ended including trailing commercial $X.X adjusted quarter outstanding. X.XXx XX-month end. billion, $XXX was We to at with EBITDA paper of total quarter first

in before We of expect increase leverage progress modestly target our long-term we quarter second ratio our the to improving toward Xx. as

to expect paper in maturing program repay notes use XX-year still We predominantly commercial X.X% to $XXX our November. of million

X.Xx Our leverage while current XX, and amended XXXX, XXXX, to agreement. as to No until through liquidity June credit made that maturity remaining ratio ample we credit X.Xx revert The will agreement execute September provides residential X.Xx and were us navigate other XX, operating with initiatives September demand. end level the to of on at from XX, material market weak changes increased our XXXX.

remaining in at million facility. our March comprised was cash of credit XX, capacity liquidity million hand Total $XXX revolving million on $XXX and under $XXX

XXXX XXXX to EPS to and down partially our by reflecting markets, our expected earlier, sales billion sales XXXX, unchanged. in industrial markets. are our $X.XX were residential end stated Mitch X% in $X.XX X% end Automotive continued guidance weak to offset demand remains be and range As versus billion growth

low midpoint, single low single with Volume reduce in are to down volume single at currency the in Specialized Bedding combined be digits up Deflation mid-single digits. is Flooring products. expected digits down Textile digits down and in to Products low to Furniture, Products, high low- & sales in expected digits and single

$X.XX share expected $X.XX are in share to price metal per year global to and $X.XX of steel adjusted year negative restructuring reflecting low $X.XX, approximately to several from lower normalize range gain to be $X.XX including per estate. Full $X.XX expense, $X.XX contingent of to differentials, margin costs cost earnings in associated XXXX, impact are and be from earnings purchase sale expected to related compensation. per incentive a modest to acquisition XXXX reduction are volume, share pricing the including $X.XX the items and with in and share per real expected to of bad to debt responses XXXX expense abnormally that prior compression liability were the a primarily

These by to our amortization is intangible adjusted approximately decreases diluted X.X%. year million. range EBIT partially to this full Based from asset XX%, tax million EPS approximately full of million, and offset $XX $XXX guidance year and $XXX depreciation X.X% of XXXX expense the amortization are upon impairment. lower a margin framework, guidance XXXX assumes fully of effective rate expected interest shares of net be

at full year X expenditures the capital million and acquisitions XXXX, million, cash dividends for spending and reflecting we and repurchases. million, of $X.XX $XXX X For $XXX quarters assumed quarters share share per to payments of share approximately minimal at per $XXX $X.XX of

with opportunities. our making business for and our want combined and we way the Lastly, position proactively are better This discipline, where I to reiterate that will future changes to to pave strengthen long-term capture us of work success. the needed hard dedication employees

Cassie. comments, those call turn back With to over I'll the

to Thank Q&A. begin you, Ben. ready we're Operator,

with Maklari Susan from is question Goldman first Sachs. Our Instructions] [Operator

X start My bit perspective implies on give pieces. that I future think be maybe board dividend. you're Mitch, once earnings there more at the first guess, just restructuring of question any How what can Leggett? those it how on we And implementing? us the is color what some about business get past a should arrived you the about and do on that color for the I the generate can you on even want $X.XX? thinking all how changes you Just the to

our was as to to options course, business. of near impacts well Sure, And long-term important very in a Making as consider making for decision that we a Susan. seriously. dividend was, and to change change a the us that took of it variety

fund residential levels. earnings at our to anticipated. should at in level has pressure question downturn a the for can than market through the as And whether to longer to end considering we went demand of current it the fund we dividend from we dividend originally shifted continued the this the how we we be So process, current

As and balance ratio. dividend increasing lower leverage the it the became payout elevated earnings, harder to our

on reasonable reducing we've some we've putting in it drug spot compromising landed high, frame, ratio like But payout if make refine really hadn't in in been to also appropriate. have invest changes. portfolio our allows to be And to to us was business, we continued $X.XX So as that's gives a we this in our our things continue that. and the mentioned sheet a to the us at deleverage CapEx because think before, us time maybe balance future it to flexibility the which level or the that to

feel and to to but dividends growth. through shareholders, returns, of committed question with restructuring both to priority, that we'll over good at flexibility that. that, retaining operational remain about in we'll away we capital still that we about earnings, in time. To improvements And that the we balance cost So future our underway from about G&A the actions our that's structure, like repurchases we're future activity think your walking also not and the looking returning and of the reporting some really invest share and shareholder things the talked about additional

like we low improvement in So near-term we feel even demand see this our still that earnings environment. in

rates demand point, probably hard in to but in when see to come that some earnings estimate Specialized things like at some to it's continue We Products and and will growth that. back inflation depends start on improvement and interest is,

situation bit. really things then term, when normalize a So in focused that our longer-term with our have on and growth midterm in today earnings the improvement the we driving hands near the on we're dealing to and returning

flexibility appropriate action term. So this the we're we that to business for to run in felt and opportunities give like we're we need an in but have, long the the us the that our situation was confident we

should of you to stay from is deeper just to we're that while digging and going to points at to the raise maybe is then Okay. there? there, returns. That's plan shareholder continue one just the expect from here? helpful then Or made of that dividend a commitment sort into for guess color. the the just a things little take a And which we $X.XX I

probably dividend Susan, to there. mentioned that's give term. ourselves we and over does get we leverage continue But doesn't won't I that definitely much -- evaluate X-plus had of that Well, do mean target We I is Xx our the as target, been we've closer focus of It think want think as only until as long we move anything the long-term we'll to last a situation. continue flexibility have the the not to to will years. and

we'll we advantage as we'll of our take deleveraging. to earnings and So share flexibility But make our the continue between repurchases progress in that evaluate dividend. and

Okay. All that's track, does one the on right. is like restructuring progressing. I is to which just in, more sound get and want that it

I a process? anything, as or has that guess, that you've deeper Just actually perhaps get could changed be that? started bit that been surprised anything has into adjusted or to different you that And given

You're very biggest Tyson, is part because do to things, of you on remain right. It that? think, track. the is But well going I want bedding comment and

is plan. it that the timing track. both the estimates on and I'd as the Yes, We're from part on thing. of Sure say we've doing made track we're well with plan. financial

it's it's a well. being activity out and lot There's think surprising across I maybe been it is segment executed has all really heavy well of a planned been of and the what's lift.

aggressively. customers confidence to really longer-term restructuring a can improvement the being as of this efficiency are terms Mitch We're the of part way, other improving opportunities we fast-changing gives an said but what -- and other and that. us add drive we I that And needed to that wanted to along profile cost the adjusting plan. appropriate about continue drive continue that think continue a the of to some But market maybe But and find margin find we think not that in lot us still to jeopardizing we while we is do opportunities help to back I supporting plan continue our to surprise, to by to move a in to way. things decided

Our next with Griffin is from question James. Bobby Raymond

you wanted I innerspring look I during I driving consumption is guess industry, single was estimate between quarter. Bedding the digits still? the delta gap in to itself that then believe first, at mentioned a What little bit performance about the the that and the high foam volume segment and what the is down talk you guys XX%. kind When the Mitch, -- down you what of

also the -- I talked share some Any away of a from business know additional from losses. you've temporarily walk had or anything? there? is there little about that also color initiatives bit market we've where restructuring But some to is

it turn I'll you. over Tyson, to

announcement. to on coiling some extreme both on those it's product of a preference especially we we've of around And also found estimates grids, quarter. the combination out, I'll lower-end of not we as commodity in know sense in competition had from out more open our even categories we're date, we've take on that that we've in a far, early I part think we been put drag. before, originally struggles been in and those consumer one, the longer-term that and product anything, drag coil If moving feel some talked estimate. The not open us, about of line are the anything really from market. the on and what less That overall -- Bobby. we so those pockets. price big the make the of away first and but That's this the it's sales a some away volume like to Core, No, don't than for restructuring walking in conservative I newer Comfort and first products were be put quarter drag volume, but do but attrition domestic just with continue on especially

were X you that out available incremental And to leveling Tyson, pressure making there is where X from incremental you that is today the that, than leveling there's years mentioned still Or is but there price just out? you spring -- within a or pressure other machinery at be that used that the look is better function further And trend if like when side, where unpack ago? industry, to countries growing? that is

sure. For

have part, equipment, On with that, still to and point. that of about make can some can business. We last internationally that that capable do and very recognize a that making part equipment we is competitors innerspring the Bobby, some that that good that are we the have market we they what and a our efficiencies we is steel have have this feel at challenge deal to we good with. something internally that deal the But we to have and with

There to is just finished be there that it's where especially now overcapacity -- exists mindful have right is components. competitive we mattress that in market, in been a very not has

continue And demand this deal a we're low so right especially. marketplace as very we're long it kind now, environment, to to makes of and as that aggressive have going in with it to

But commodity money why away. just we're with that cost not our but find just we assembly that's but investing dealing also and get heavily we're customers save also differentiated Not for think in them in from well it products, solutions to trying their offerings, helping product process.

Sorry, to impact, right?. going goes not meaning chasing continuing products right? Bobby, those was in having that's focus products, So a we're -- just higher-value the add, but this into the shift, I low-value our positive just

are far, right. the successful legacy especially Again, they improvements overall, so relative seeing some units That's lower been of there. and we but to have products,

you the caused the experiences little that kind has environment? a way the deflationary they a when deflation see And That's place while, get a bit product the and to deflation. but there overall relationship to typical a then used little guys different raw of help just be prototypical that deflation, gears across you when to for kind I've still it of of relationship the would some the bit hurt its on maybe these a taken pressures some between of behaving little categories? line. Is obviously you of a get it Okay. Or business were in a have you'd that little street top and margins, was helpful. hold to on switching covered material

bit it's I have probably innersprings. think like in similar. bit just what think probably it's I different pretty is see timing little Foam. different Bobby, timing We similar. But we'd with a a than The Specialty pretty dynamics

lastly guess, for the on back Okay. then mill. is I Mitch, steel me And -- just it's

you there -- it running It's time, about at but at talked a think on the integrated -- as Is less have than does big probably it this is what vertically drag I quarter capacity, I of just the the same last part to full guys -- capacity? Or kind was operations. well. that strategy, that come that and full the is holdings that the Or is external to to back just have we force related some purely consumer? at do there sales market end can of market back? you kind things drive to just of are the of

our at a long an over time, rate as and of in use been we attachment margins. take shift fixed we do term. is impactful drag. below Yes, that definitely just a again, products one running tons it big grids, Yes, and is to the see It historically example, changed, I'll Bobby. But that that a is high pretty see cost operation, a permanent it capacity have something that is as that's rod for

So markets diversify in we are it out go and some actively doing can that. we does us of the to And require serve.

We have the the over there. seen markets of some year stronger, some even weakness been last more where industrial that were there's

than markets, near looking not end help spring a solely still market. relying that's in at the just recovery challenge the markets term. offset of We're that. other some industrial actively So us of But we on are more in that the

with from Sandler. is Piper Peter next question Our Keith

a I to want ask follow-ups. actually few

So about The thinking on share last contemplate to years, the before Xx have maybe maybe been net to mentioned or repurchases? capital question is, target you are repurchases. X getting I in like you've guess as that not about Susan's thinking allocation, it you share a focus leverage you dividends on acquisitions applies question

to timing return I could of when the trying be of some to going guess you the understand cash to opportunistic? are Or just shareholders pick up?

and Thanks target ratings things a up plan Yes. some credit be opportunistic that. small anything It's that investment-grade won't I'm sure we will acquisitions The Xx make And paper. to to Ben, would flexibility. bolt-on to you to want target way. comment but like on that we've maintaining But try leverage do that, but pass access question. clarify. to and long-term and that or tried we priority. now, Nothing opportunities, asking commercial for we're the our the doesn't a is glad along there? right maintain We But on for list add example, mean we is

think, make of flexibility us No, other look right. think start drive I opportunities like on to at to Yes. said, gives we progress that's those the that deleveraging, I as to And Mitch growth. that some

if redirected all free so again, us bit to it make couple more look -- we and available be at flow And debt opportunities. have of a ability free other little years. But cash those to flexible reduction, probably the take we'll progress, would again, a we as

word, opportunistic flexibility definitely be we'll is think I So the in opportunities. those but Mitch? right, other For sure,

Okay. Very question to follow competition. good. regarding Bobby's up spring on And then

popping level I think the there's does domestic recent U.S.? larger you intensified factories more of market? international the are in like It had referenced spring What in U.S. there's Has up domestic also competitive. years? some the about that seem players competition

that something, that. pandemic of some horizons asked adds. that equipment capacity Peter. of especially Yes, with Bobby seen the we some is saw a have about the question we during

also has mattress production a of cases that reshoring in U.S. of we've where Some result the come some from seen antidumping the

and it domestically. we're now it's of that market competing with to wasn't begin And being part so our imported, addressable with, some of them

seen market we're So and that's business market, the we of about our as talking part with and the of have adjustments domestic what from changing why well. as making we're part that

last had financial that customers that negatively improve their then position last And your some me you to one impact is good. the quarter, could looking and that Very sales. Okay. referenced for

of more the forward some took these those that or I up heart The the we to changes? lost foam sales, the fully elsewhere QX? Did customers Or about Specialty on in from charge impact impairment You show business. QX going there as think guess, is come down. be customer is, question of going shutting might and

market really but in we I'll the impairment would for that one -- most taking of We first see previously saw of of that some that's our slowdown the and But impacts year, the the of well, half quarter. we're back just as and we'll take those guidance. that the charge, to accounts, didn't some track more in general the Peter. part talked we've see start about

Okay.

up follow that. just I'll So on

in one has imply you trending crystal certainly, half understand like we high first down look it from Bedding, does if guess I the a you're guidance, year, the I But where at that ball. perfect no So units some of have single. general this the a improvement the you've customer compares? improvement half. the Is of the What seem confidence back as It look gives the of to we year? healthy half got function coming. back headwind that in like does

like Ben, and I'll you I let take like things mean that. seasonality But there's in one. too, Automotive particularly some that

Yes. easier half get comparisons And then really Bedding it's of a I'd in say year. the bit on the the back side, the

Yes. We more what I standpoint, plan it last really really, same. year. a the from of saw be demand mean, for to we late

baked have we we're that like optimistic that any demand, or and forecasted in haven't recovery customer in attrition the about. talking We anything

question Our Instructions] with next from Keith [Operator Securities. Hughes Truist is

A couple of questions.

the the in little dividend what of I'm the thought that similar on Board confused why you on February a were earnings I you we you cutting in mean we the rate. why through very the at to understand January. in the that Can landscape thought First, you're looks are path dividend. go was old dividend. where probably forecasting paid what got right to last release, the now? process the of I

I Keith, tried needed impacts to what for Yes. the near were us took the and various to in that in back long to front and on to were explore that goes both the work it area, of and the do really we us, wanted decision, that options mean the but how comment And I we we seriously this term.

it so a was and And opportunities. investigation different thorough vigorous long of discussion and and

we that to were while choice so sure a wanted the that having. And and also it was right discussion were making we we signaling make

just so out. And timing that's how worked the

Okay.

brought ramifications the this. you up So long-term of

be things inside future? on really say you what guess portfolio plan, the you the don't a at may it the ones big growth takeout But my a to look this is stock in the there restructuring you're changes highlighted be going lot which forward businesses be how big working I question you've will in without to moving dividend, a kind of a to that, need like That's real beginning cost year. of and of trade. are that. So got engines in, is,

our simplify management of something not there's I question, always within mean, We to business a of we and Keith. radar. elements great is portfolio, think about complicated portfolio Yes, complexity it. some but means it do the what that's even only on and our our BUs, that, of to conversations and have maybe about lot our

that and dig that on we'll is So definitely always it's continue to into. our something radar

of business an this there months, of you is ongoing there's result more And every just a that? Or XX might do it? traditional we is there X whenever day months, review? see a kind -- Is

both. I right underway activities mean think it's of I a lot bit little have of a now. we that's

that that sure taking digging and those well, things the want costs on and we're improvement these as also our restructuring G&A that efficiency we we're we're portfolio. other So to make into activities operational advancing looking the at all

and for definitely -- ongoing an something it's priority So us. that's

So like to that's determine we sound work that have our we want to not I but where I something to radar, go. it's think don't do on

Sachs. Goldman Mr. Maklari question, Susan next Our with

Okay.

was Sorry about in And the you couple dollars opportunity that. remarks wanted terms points. and was specific business. to addition of the of to up in SG&A mentioned the side of a the the percent first kind higher just revenues you highlight there there? you're anything costs operational could a of anything I administrative is that looking as that follow I in quarter, there mute. your on to? in the year-over-year on in One on the of and a SG&A Or is focus

Sure. I'll that let you Ben, take -- one. let I'll

and our out between to at duplicate of I'd a such say have services evaluation, elements our at point. look activities we is we processes, to what But some Thanks our of for on opportunities prune and don't IT eliminating estimate see streamlining doing shared opportunities as Susan. some investigating might just our business systems there. question, taking costs units the of the Yes. at then this and we're really an have early this this we're very the the in point, what impact stages

just what like really I but So entails. early that, said, of that's innings that

the mentioned bottom. also off I costs recently? of kind bit you can are how structure. you come on seem cost Okay. I that these just commodities It still more have All of about the just right. then know that you to year. touch like want this does up talk But moving And some a expect deflation

Just trending any how and on things thoughts where that's are going?

Yes.

that some relatively and like things have think things add? I Tyson, that. But on would you ups downs and modest we've -- maybe But seen anything been but maybe deflation, things, chemicals different stable.

No, that. back bumps I think relatively supply overall, minor good I some this place. We've place. it a and point. is overall stable stable a still down And has where and up is mean seen at pretty relatively in demand but been

characterize on broadly, state changed commentary consumer. Okay. are All color today? would just of mixed the of back overall maybe you is earnings, guess, When seeing I how are have we've especially the where as some look has which then it sort one, through right. step the and think business they the at of gone and your trends seems consumer? overall you And been and anything there? And you sort one like, I last of you And that the that you state there's

great a That's question.

there, mixed depends I right? changed food not last need -- views. on and dedicate bit on consumer think it's lot I I I of and you things we there's that and like But to think where interest their don't a anything think durable I But think it products, is, impacted a higher talked income their don't more are still focus the their focus focus on and about still inflation since little know, Tyson, a I has feel and rates there differently? to by like resources and a just people services. the see of -- to this.

the No, run. short core the I that's think issue in

takes longer-term off. those still focus the you and durables think products some of a -- major away I is push see impact and inflation definitely you [indiscernible] for can they on having the where that the staples

we're well. to rough now both I watching think that spot as is a availability a other a we're driver the for just that pretty housing and And closely be of in to lot for thing products. that It our tends goes really rates. big back and mortgage affordability. right

that definitely watching. So those things hand but we're I hand, trend go in think macro that's a big

come with position, near the Fed's and optimism seen I And think think rates I down the are that to in we've Yes. the there's going those term. inflation less what in recent

preparing deal current to. long we're to this environment So as need why that's with we as

questions at to floor There would I further this the no you. Thank Cassie like are comments. Branscum turn to back for over time. closing

and your in Have Leggett Platt. Thank & you for joining us a day. interest good

conference. today's concludes This

your participation. for disconnect may at your You time. Thank lines you this