Leggett & Platt at a Glance

Financial Goals & Dividend Policy

  • Average annual TSR1 of 11-14%, from four sources:
    • » 6-9% from revenue growth
    • » 1% from margin increase (~ 10 basis points)
    • » 3% from dividend yield
    • » 1% from reduced share count (via stock buyback)
  • Steady dividend increases; ~ 50% payout of adjusted earnings

Growth Framework

  • Targeting 6-9% average annual revenue growth (organic + acquisition)
  • Three avenues of growth:
    1. Increasing content and new programs
    2. Expanding addressable markets
    3. Identifying new growth platforms

Cash Use Priorities

  1. Fund organic growth
  2. Pay dividends
  3. Fund strategic acquisitions
  4. Repurchase stock with available cash

Capital Structure

  • About $5.5 billion market cap; $7.0 billion enterprise value
  • 133.4 million shares outstanding at December 31, 2021
  • Authorization to repurchase up to 10 million shares annually

2021 Highlights

  • 2021 sales were a record2 $5.1 billion, up 19% vs 2020
  • Record adjusted3 EPS $2.78, up 29%
  • Adjusted3 EBIT margin increased to 11.2%
  • Adjusted3 EBITDA margin decreased to 14.9%
  • Cash from operations was $271 million

Stock Information

  • Listed on NYSE; ticker = LEG
  • Approximately 35,000 shareholders
  • Current indicated annual dividend of $1.68 per share
    • » Dividend yield = 4.1% (on $41.16 year-end stock price)
    • » Dividends increased for 50 consecutive years
  • A member of the “Dividend Kings”
  • 2021 price range of $37.05 - $59.16
  • About 10-12% of stock owned by management and employees, directors, retirees, acquisition partners, and their family members

Quick Facts

  • Financial stability, strong balance sheet, solid operating cash flow
  • Strong market positions
  • Broad customer base; mainly manufacturers
  • Few large competitors; almost none are public
  • Management with “skin in the game”
  • 3 reporting segments; 7 groups; 15 business units
  • ~20,000 employees, 130 manufacturing facilities in 18 countries

Profile

A diversified manufacturer that conceives, designs, and produces a wide range of engineered components and products. Leading U.S.-based manufacturer of a variety of products including:

  • Components for bedding
  • Automotive seat support and lumbar systems
  • Specialty bedding foams and private-label finished mattresses
  • Components for home furniture and work furniture
  • Flooring underlayment
  • Adjustable beds
  • Bedding industry machinery