PR Newswire | Aug 3, 2020 04:07PM EDT

08/03 15:06 CDT

Leggett & Platt Reports 2Q Results And Announces 3Q Dividend CARTHAGE, Mo., Aug. 3, 2020

CARTHAGE, Mo., Aug. 3, 2020 /PRNewswire/ --

* 2Q sales were down 30% vs 2Q19, significantly impacted by the COVID-19 pandemic * 2Q EPS was ($.05), a decrease of $.69 vs 2Q19; 2Q adjusted1 EPS was $.16, down $.48 vs 2Q19 * Liquidity at June 30, 2020 was $1.3 billion * Board declared third quarter dividend of $.40 per share

Diversified manufacturer Leggett & Platt reported second quarter sales of $845 million, a 30% decrease versus second quarter last year.

* Organic sales were down 31%: * Volume was down 29%2, largely due to the economic impact of COVID-19 * Raw material-related selling price decreases and negative currency impact reduced sales 2%

* Acquisitions added 1% to sales growth

Second quarter EBIT was $23 million, down $113 million or 83% from second quarter last year, and adjusted1 EBIT was $51 million, an $85 million decrease.

* EBIT and adjusted1 EBIT declined primarily as a result of lower volume, partially offset by fixed cost reductions * 2Q 2020 adjustments include a $25 million non-cash goodwill impairment charge related to our Hydraulic Cylinders business and $3 million of restructuring charges primarily from pandemic-related cost reductions

* EBIT margin was 2.7% and adjusted1 EBIT margin was 6.0%, down from 11.2% in the second quarter of 2019 * There was no LIFO benefit or expense in the second quarter of 2020, versus a benefit of $10.4 million (pretax) in the second quarter of 2019

Second quarter EPS was a loss of $.05, a $.69 decrease versus second quarter 2019, and included a goodwill impairment charge of $.19 and restructuring charges of $.02. Second quarter adjusted1 EPS was $.16, a decrease of $.48, primarily from lower EBIT.

Debt, Cash Flow and Dividend

* Net Debt was 3.10x trailing 12-month adjusted1 EBITDA * Operating cash flow was $112 million in the second quarter, a decrease of $60 million versus second quarter last year primarily from lower earnings * Second quarter dividend was $.40, equal to last year's second quarter dividend

CEO COMMENTSChairman and CEO Karl Glassman commented, "Our second quarter results were significantly impacted by the economic effects of the COVID-19 pandemic. We were pleased to see sales improve sequentially throughout the quarter as demand improved in most of our markets. The swift cost reduction actions implemented at the onset of the pandemic helped to mitigate some of the earnings impact from lower demand levels.

"We continue to see demand recovering through July, although at varied rates across our markets and geographies given the ongoing effects of the pandemic and continuing economic uncertainty. We have improved our liquidity and will continue to carefully manage our cash and expenses. We are committed to maintaining our strong balance sheet, investment grade credit rating, and position as a Dividend Aristocrat.

"Our focus remains on the health and safety of our employees and their families, along with our customers, suppliers and communities we serve around the world. I am extremely proud of how our employees are working together to keep each other safe and healthy while serving our customers during this challenging time.

"Our long-term fundamentals have not changed. We continue to be leaders in most of our markets, focused on innovation and working closely with our customers to provide more of what they need to be successful. Our capabilities are unmatched in our large and expanding addressable markets. We are dedicated to our long-term vision for the Company and are confident that we will emerge from this crisis strong and focused on the future."

COVID-19 IMPACT

* Sales improved sequentially throughout the quarter after hitting their lowest point in early April, and continued to improve in the first three weeks of Q3 to levels near the prior year * Cost structure is 75% variable and 25% fixed * Aligning variable cost structure to demand levels * Fixed cost reductions are expected to drive 2020 savings of ~$100 million * Actions taken to optimize cash flow include: * Closely monitoring accounts receivable and collections * Controlling inventory * Reducing capital expenditures

LIQUIDITY AND BALANCE SHEET

* $1.3 billion of liquidity at June 30 * $209 million of cash on hand * $1.1 billion in capacity remaining under revolving credit facility

* Debt at June 30 * Long term debt of $2.1 billion, including $102 million of commercial paper outstanding * No significant maturities until August 2022

* Amended existing credit agreement on May 6, 2020 to allow for additional liquidity * Financial covenant amended from a calculation of total debt to trailing 12-months EBITDA to net debt to trailing 12-months EBITDA * Covenant requires net debt to remain below 4.75x the trailing 12-months EBITDA through March 31, 2021. The ratio is then reduced by 0.5x every quarter through December 31, 2021 and thereafter remains at 3.25x.

DIVIDEND

* The Company's Board of Directors declared third quarter dividend of $.40, equal to the dividend declared in the third quarter of 2019 * Dividend will be paid on October 15, 2020 to shareholders of record on September 15, 2020 * At an annual indicated dividend of $1.60 per share, the yield is 4.0%, based upon Friday's closing stock price of $40.09 per share; one of the highest yields among the S&P 500 Dividend Aristocrats

GUIDANCE

* Company is not providing guidance at this time given continued macroeconomic uncertainty related to the effects of COVID-19

USES OF CASH

* Remaining 2020 debt maturities of $25 million; no significant maturities until August 2022 * Anticipating capital expenditures of approximately $60 million for the year * Expecting 2020 dividends of approximately $210 million * Limiting acquisitions

SEGMENT RESULTS- Second Quarter 2020 (versus 2Q 2019)Bedding Products -

* Trade sales were down 28% * Volume was down 25%, primarily from COVID-related demand declines and exited volume in Fashion Bed and Drawn Wire * Raw material-related price decreases and currency impact reduced sales 3% * EBIT decreased $45 million, primarily from lower volume and lower metal margin in our rod mill, partially offset by fixed cost reductions

Specialized Products -

* Trade sales decreased 47% * Volume was down 46%, primarily from COVID-related demand declines * Currency impact decreased sales 1% * EBIT decreased $61 million, primarily from lower volume and the $25 million goodwill impairment charge in Hydraulic Cylinders, partially offset by fixed cost reductions

Furniture, Flooring & Textile Products -

* Trade sales were down 22% * Organic sales decreased 25% * Volume decreased 24%, primarily from COVID-related demand declines * Raw material-related selling price decreases and currency impact reduced sales 1%

* A small Geo Components acquisition completed in December 2019 added 3% to sales * EBIT decreased $8 million, primarily from lower volume, partially offset by fixed cost reductions and lower raw material costs

SLIDES AND CONFERENCE CALLA set of slides containing summary financial information is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at 7:30 a.m.Central (8:30 a.m. Eastern) on Tuesday, August 4. The webcast can be accessed from Leggett's website. The dial-in number is (201) 689-8341; there is no passcode.

Third quarter results will be released after the market closes on Monday, November 2, with a conference call the next morning.

FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.

COMPANY DESCRIPTION: At Leggett & Platt (NYSE: LEG), we create innovative productsthat enhance people's lives, generate exceptional returnsfor our shareholders, and provide sought-after jobsin communities around the world. L&P is a 137-year-old diversified manufacturer that designs and produces engineered products found in most homes and automobiles. The Company is comprised of 15 business units and 140 manufacturing facilities located in 18 countries.

Leggett & Platt is the leading U.S.-based manufacturer of: a) bedding components; b) automotive seat support and lumbar systems; c) specialty bedding foams and private-label finished mattresses; d) components for home furniture and work furniture; e) flooring underlayment; f) adjustable beds; and g) bedding industry machinery.

FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements," including, but not limited to, the continued improvement of our demand; annualized savings from deploying cost savings measures, including fixed cost actions; the ability to maintain a strong liquidity and cash position; the amount of repatriated cash; the amount of capital expenditures; limiting acquisitions; our ability to collect receivables within their terms; our ability to manage inventory; and the amount of borrowing capacity under our commercial paper program and credit facility. Such forward-looking statements are expressly qualified by the cautionary statements described in this provision and reflect only the beliefs of Leggett or its management at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks and uncertainties include: (i) the adverse impact on our sales, earnings, liquidity, cash flow and financial condition caused by the COVID-19 pandemic which has and could continue to materially negatively impact (a) the demand for our products and our customers' products, growth rates in the industries in which we participate, and opportunities in those industries (b) our manufacturing facilities' ability to remain open, or to re-open if closed (either from the lack of demand or mandatory governmental closure), obtain necessary raw materials and parts, maintain appropriate labor levels and ship finished products to customers, (c) operating costs related to pay and benefits for our terminated employees, (d) our ability to collect trade and other notes receivables in accordance with their terms due to customer bankruptcy, financial difficulties or insolvency; (e) impairment of goodwill and long-lived assets, (f) restructuring-related costs, and (g) our ability to access the commercial paper market or borrow under our revolving credit facility, including our ability to comply with the restrictive covenants in our credit facility that may limit our operational flexibility and our ability to pay our debt when it comes due; (ii) the Company's ability to achieve its operating targets; (iii) increases or decreases in our capital needs, which may vary depending on acquisition or divestiture activity, our working capital needs and capital expenditures; (iv) market conditions; (v) price and product competition from foreign and domestic competitors, (vi) cost and availability of raw materials and labor, fuel and energy costs, (vii) our ability to generate cash sufficient to pay the dividend, (viii) our ability to repatriate cash from offshore accounts; (ix) net interest expense, tax rates, increased trade costs, cybersecurity breaches, customer losses and insolvencies, disruption to our steel rod mill, foreign currency fluctuation, the amount of fully diluted shares, depreciation and amortization, and litigation risks; (x) the preliminary nature of savings estimates; and (xi) other risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's most recent Form 10-K and Form 10-Q reports filed with the SEC.

CONTACT Investor Relations, (417) 358-8131 or invest@leggett.comSusan R. McCoy, Senior Vice President, Investor RelationsWendy M. Watson, Vice President, Investor RelationsCassie J. Branscum, Senior Director, Investor RelationsTarah L. Sherwood, Director, Investor Relations

1 Please refer to attached tables for Non-GAAP Reconciliations2 2% of volume decline attributable to exited business

LEGGETT & PLATT

RESULTS OF SECOND QUARTER YEAR TO DATEOPERATIONS

(In millions,except per 2020 2019 Change 2020 2019 Changeshare data)

Net trade $ 845.1 $1,213.2 (30)% $1,890.6 $2,368.3 (20)%sales

Cost of goods 698.8 943.5 1,521.5 1,865.6sold

Gross 146.3 269.7 (46)% 369.1 502.7 (27)%profit

Selling &administrative 97.2 118.3 (18)% 215.0 236.9 (9)%expenses

Amortization 16.3 16.9 32.7 31.0

Other expense 10.0 (1.5) 17.9 0.6(income), net

Earningsbefore interest 22.8 136.0 (83)% 103.5 ' 234.2 (56)%and taxes

Net interest 20.4 21.9 40.4 41.9expense

Earningsbefore income 2.4 114.1 63.1 192.3taxes

Income taxes 8.5 27.8 23.5 44.9

Net (6.1) 86.3 39.6 147.4earnings

Less net incomefrom - (0.1) - -non-controllinginterest

Net earningsattributable to $ (6.1) $ 86.2 (107)% $ 39.6 $ 147.4 (73)%L&P

Earnings perdiluted share

Net earningsper diluted $ (0.05) $0.64 (108)% $ 0.29 $ 1.09 (73)%share

Sharesoutstanding

Common stock(at end of 132.3 131.4 0.7 % 132.3 131.4 0.7 %period)

Basic(average for 135.7 134.7 135.5 134.5period)

Diluted(average for 135.7 135.2 0.4 % 135.7 135.1 0.4 %period)

CASH FLOW SECOND QUARTER YEAR TO DATE

(In millions) 2020 2019 Change 2020 2019 Change

Net earnings $ (6.1) $ 86.3 $ 39.6 $ 147.4

Depreciationand 46.5 50.0 94.0 96.3amortization

Working capitaldecrease 22.0 17.0 (87.4) (75.8)(increase)

Impairments 25.9 1.4 29.4 4.3

Other operating 23.8 17.6 46.9 31.5activity

Net Cashfrom Operating $ 112.1 $ 172.3 (35)% $ 122.5 $ 203.7 (40)%Activity

Additions to PP (18.8) (38.7) (43.0) (70.5)&E

Purchase ofcompanies, net - - - (1,244.3)of cash

Proceeds frombusiness and 2.9 1.8 3.6 2.0asset sales

Dividends paid (52.9) (49.8) (105.6) (99.4)

Repurchase ofcommon stock, - (0.3) (7.6) (2.3)net

Additions(payments) to (332.1) (48.4) 8.0 1,240.9debt, net

Other (8.2) (10.5) (16.7) (8.5)

Increase(Decr.) in Cash $ (297.0) $ 26.4 $ (38.8) $ 21.6& Equiv.

FINANCIAL 30-JunPOSITION

(In millions) 2020 2019 Change

Cash and $ 208.8 $ 289.7equivalents

Receivables 577.3 700.3

Inventories 574.1 656.7

Other current 50.1 56.3assets

Total 1,410.3 1,703.0 (17)%current assets

Net fixed 797.4 817.9assets

Operating leaseright-of-use 167.9 169.8assets

Goodwill 1,373.5 1,398.4

Intangibleassets and 833.0 912.9deferred costs

TOTAL ASSETS $4,582.1 $5,002.0 (8)%

Trade accounts $ 361.4 $ 452.9payable

Current debt 51.1 51.3maturities

Currentoperating lease 41.8 38.5liabilities

Other current 321.2 357.6liabilities

Totalcurrent 775.5 900.3 (14)%liabilities

Long-term debt 2,083.2 2,363.5 (12)%

Operating lease 128.6 131.4liabilities

Deferred taxesand other 380.2 368.0liabilities

Equity 1,214.6 1,238.8 (2)%

Total 3,806.6 4,101.7 (7)%Capitalization

TOTALLIABILITIES & $4,582.1 $5,002.0 (8)%EQUITY

LEGGETT & PLATT

SEGMENT RESULTS^1 SECOND QUARTER YEAR TO DATE

(In millions) 2020 2019 Change 2020 2019 Change

Bedding Products

Trade Sales $ 410.6 $ 568.4 (28)% $ 901.2 $1,122.7 (20)%

EBIT 18.6 63.5 (71)% 48.6 107.6 (55)%

EBIT Margin 4.5% 11.2% -670 bps ^2 5.4% 9.6% -420 bps ^ 2

Note impairment - - 8.4 -

Restructuring-related charges 2.6 (1.5) 2.6 4.1

ECS transaction costs - - - 0.9

Adjusted EBIT 21.2 62.0 (66)% 59.6 112.6 (47)%

Adjusted EBIT Margin 5.2% 10.9% -570 bps 6.6% 10.0% -340 bps

Depreciation and amortization 26.3 28.2 53.1 53.0

Adjusted EBITDA 47.5 90.2 (47)% 112.7 165.6 (32)%

Adjusted EBITDA Margin 11.6% 15.9% -430 bps 12.5% 14.8% -230 bps

Specialized Products

Trade Sales $ 140.8 $ 267.0 (47)% $ 375.3 $ 529.9 (29)%

EBIT (19.7) 41.5 (147)% 8.0 77.2 (90)%

EBIT Margin -14.0% 15.5% -2,950 bps 2.1% 14.6% -1,250 bps

Goodwill impairment 25.4 - 25.4 -

Adjusted EBIT 5.7 41.5 (86)% 33.4 77.2 (57)%

Adjusted EBIT Margin 4.0% 15.5% -1,150 bps 8.9% 14.6% -570 bps

Depreciation and amortization 10.6 10.4 21.8 20.6

Adjusted EBITDA 16.3 51.9 (69)% 55.2 97.8 (44)%

Adjusted EBITDA Margin 11.6% 19.4% -780 bps 14.7% 18.5% -380 bps

Furniture, Flooring & Textile Products

Trade Sales $ 293.7 $ 377.8 (22)% $ 614.1 $ 715.7 (14)%

EBIT 23.4 31.5 (26)% 49.9 49.9 - %

EBIT Margin 8.0% 8.3% -30 bps 8.1% 7.0% 110 bps

Restructuring-related charges 0.3 1.5 0.3 2.2

Adjusted EBIT 23.7 33.0 (28)% 50.2 52.1 (4)%

Adjusted EBIT Margin 8.1% 8.7% -60 bps 8.2% 7.3% 90 bps

Depreciation and amortization 6.3 6.7 12.8 13.3

Adjusted EBITDA 30.0 39.7 (24)% 63.0 65.4 (4)%

Adjusted EBITDA Margin 10.2% 10.5% -30 bps 10.3% 9.1% 120 bps

Total Company

Net Trade Sales $ 845.1 $1,213.2 (30)% $1,890.6 $2,368.3 (20)%

EBIT - segments 22.3 136.5 (84)% 106.5 234.7 (55)%

Intersegment eliminations and other 0.5 (0.5) (3.0) (0.5)

EBIT 22.8 136.0 (83)% 103.5 234.2 (56)%

EBIT Margin 2.7% 11.2% -850 bps 5.5% 9.9% -440 bps

Goodwill impairment ^3 25.4 - 25.4 -

Restructuring-related charges^3 2.9 - 2.9 6.3

Note impairment ^3 - - 8.4 -

Stock write-off from prior year divestiture ^3 - - 3.5 -

ECS transaction costs ^3 - - - 0.9

Adjusted EBIT ^3 51.1 136.0 (62)% 143.7 241.4 (40)%

Adjusted EBIT Margin ^3 6.0% 11.2% -520 bps 7.6% 10.2% -260 bps

Depreciation and amortization - segments 43.2 45.3 87.7 86.9

Depreciation and amortization - unallocated ^4 3.3 4.7 6.3 9.4

Adjusted EBITDA ^3 $ 97.6 $ 186.0 (48)% $ 237.7 $ 337.7 (30)%

Adjusted EBITDA Margin ^3 11.5% 15.3% -380 bps 12.6% 14.3% -170 bps

LAST SIX QUARTERS 2019 2020

Selected Figures 1Q 2Q 3Q 4Q 1Q 2Q

Net Trade Sales ($ million) 1,155.1 1,213.2 1,239.3 1,144.9 1,045.5 845.1

Sales Growth (vs. prior year) 12 % 10 % 14 % 9 % (9)% (30)%

Volume Growth (same locations vs. prior year) (3)% (6)% (1)% (1)% (9)% (29)%

Adjusted EBIT ^3 105.4 136.0 147.9 140.1 92.6 51.1

Cash from Operations ($ million) 31.4 172.3 212.9 251.4 10.4 112.1

Adjusted EBITDA (trailing twelve months) ^3 619.9 651.0 689.1 721.3 709.7 621.3

(Long-term debt + current maturities - cash & 3.55 3.26 2.91 2.59 2.76 3.10equivalents) / Adj. EBITDA ^3,5

Organic Sales (vs. prior year) ^6 1Q 2Q 3Q 4Q 1Q 2Q

Bedding Products 4 % (8)% (9)% (10)% (15)% (28)%

Specialized Products (5)% (3)% 5 % 4 % (11)% (47)%

Furniture, Flooring and Textile Products (3)% (4)% 1 % (2)% (7)% (25)%

Overall (1)% (6)% (2)% (4)% (12)% (31)%

^1Segment and overall company margins calculated on Trade sales.

^2bps = basis points; a unit of measure equal to 1/100th of 1%.

^3Refer to next page for non-GAAP reconciliations.

^4Consists primarily of depreciation of non-operating assets and amortizationof debt issuance costs.

^5EBITDA based on trailing twelve months.

^6Trade sales excluding sales attributable to acquisitions and divestituresconsummated in the last 12 months.

LEGGETT & PLATT

RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES ^11

2019 2020

Non-GAAP adjustments ^7 1Q 2Q 3Q 4Q 1Q 2Q

Goodwill impairment - - - - - 25.4

Note impairment - - - - 8.4 -

Stock write-off from prior year divestiture - - - - 3.5 -

Restructuring-related charges 6.3 - 3.8 5.0 - 2.9

ECS transaction costs 0.9 - - - - -

Non-GAAP adjustments (pretax) ^8 7.2 - 3.8 5.0 11.9 28.3

Income tax impact (1.8) - (0.4) (0.1) (2.9) (0.4)

Non-GAAP adjustments (after tax) 5.4 - 3.4 4.9 9.0 27.9

Diluted shares outstanding 135.0 135.2 135.4 135.8 135.6 135.7

EPS impact of non-GAAP adjustments 0.04 - 0.02 0.04 0.07 0.21

2019 2020

Adjusted EBIT, EBITDA, Margin, and EPS ^7 1Q 2Q 3Q 4Q 1Q 2Q

Net trade sales 1,155.1 1,213.2 1,239.3 1,144.9 1,045.5 845.1

EBIT (earnings before interest and taxes) 98.2 136.0 144.1 135.1 80.7 22.8

Non-GAAP adjustments (pretax and excluding interest) 7.2 - 3.8 5.0 11.9 28.3

Adjusted EBIT ($ millions) 105.4 136.0 147.9 140.1 92.6 51.1

EBIT margin 8.5% 11.2% 11.6% 11.8% 7.7% 2.7%

Adjusted EBIT margin 9.1% 11.2% 11.9% 12.2% 8.9% 6.0%

EBIT 98.2 136.0 144.1 135.1 80.7 22.8

Depreciation and Amortization 46.3 50.0 48.4 47.2 47.5 46.5

EBITDA 144.5 186.0 192.5 182.3 128.2 69.3

Non-GAAP adjustments (pretax and excluding interest) 7.2 - 3.8 5.0 11.9 28.3

Adjusted EBITDA ($ millions) 151.7 186.0 196.3 187.3 140.1 97.6

EBITDA margin 12.5% 15.3% 15.5% 15.9% 12.3% 8.2%

Adjusted EBITDA margin 13.1% 15.3% 15.8% 16.4% 13.4% 11.5%

Diluted EPS 0.45 0.64 0.74 0.64 0.34 (0.05)

EPS impact of non-GAAP adjustments 0.04 - 0.02 0.04 0.07 0.21

Adjusted EPS ($) 0.49 0.64 0.76 0.68 0.41 0.16

2019 2020

Net Debt to Adjusted EBITDA ^9 1Q 2Q 3Q 4Q 1Q 2Q

Total Debt 2,461.0 2,414.8 2,248.3 2,117.6 2,466.4 2,134.3

Less: Cash and equivalents (263.3) (289.7) (242.0) (247.6) (505.8) (208.8)

Net Debt 2,197.7 2,125.1 2,006.3 1,870.0 1,960.6 1,925.5

Adjusted EBITDA, trailing 12 months 619.9 651.0 689.1 721.3 709.7 621.3

Net Debt / Leggett Reported 12-month Adjusted EBITDA 3.55 3.26 2.91 2.59 2.76 3.10

Net Debt / Leggett and ECS 12-month Pro Forma Adjusted 3.18 3.04 2.81 2.59EBITDA ^10

^7Management and investors use these measures as supplemental information toassess operational performance.

^8The non-GAAP adjustments affected various line items on the incomestatement. Details by quarter: 1Q 2019: $2.4 million COGS, $0.9 million SG&A, $3.9 million other expense. 2Q 2019: ($1.5) million COGS, $1.5 million other expense. 3Q 2019: ($0.9)million COGS, $4.7 million other expense. 4Q 2019: $5.0 million otherexpense. 1Q 2020: $8.4 million SG&A, $3.5 million other expense. 2Q 2020: $0.5 COGS, $27.8 million otherexpense.

^9Management and investors use this ratio as supplemental information toassess ability to pay off debt. These ratios are calculated differently thanthe Company's credit facility covenant ratio.

^10The Leggett and ECS pro forma adjusted EBITDA for the 12 months endedMarch 31, June 30, September 30, and December 31, 2019 is presented in thetable below. Because the increase in debt from December 31, 2018 to December 31, 2019 wasdirectly attributable to the ECS acquisition, we believe it is moremeaningful to investors to include ECS's pre-acquisition adjusted EBITDA for the trailing 12 months ended March31, June 30, September 30, and December 31, 2019 in the net debt / 12-monthadjusted EBITDA calculation.

ECS pre-acquisition adjusted EBITDA 4/1/18 - 7/1/18 - 10/1/18 - 1/1/19 -from: 1/16/19 1/16/19 1/16/19 1/16/19

Net earnings 12 6 - (1)

Interest expense 33 22 12 1

Taxes 6 4 1 0

EBIT 51 32 13 -

Depreciation and Amortization 14 10 5 1

Change in control bonus 7 7 7 -

EBITDA 72 49 25 1

Leggett Adjusted EBITDA, trailing 12months (including ECS from January 16, 620 651 689 7212019)

ECS pre-acquisition adjusted EBITDA 72 49 25 1

Leggett and ECS Pro Forma Adjusted 692 700 714 722EBITDA, trailing 12 months

Net Debt / Leggett and ECS 12-month 3.18 3.04 2.81 2.59Pro Forma Adjusted EBITDA

^11Calculations impacted byrounding.

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SOURCE Leggett & Platt