Sealy Corporation Reports Fiscal Third Quarter Results, ($.16) EPS

Sealy Corporation ZZ today announced results for its third quarter of fiscal year 2010. Net sales for the third fiscal quarter were $346.2 million, a decrease of (1.0)% compared to the same prior year period. Gross profit for the third fiscal quarter decreased by $8.5 million to $137.6 million from the prior year quarter. Gross margin declined by 205 basis points to 39.7%, driven primarily by higher discounting on products that are at the end of their life cycle in an increasingly competitive market as well as the impact of inflation on material costs. Partially offsetting these decreases were improvements in operations efficiencies. The net loss for the third quarter was $15.8 million or $0.16 per diluted share, using a diluted share count of 97.0 million shares. Excluding the impairment, the Company's net income for the period would have been $7.1 million, or $0.04 per diluted shares, based on a 291.6 million diluted share count, compared to $12.1 million, or $0.05 per diluted share, based on a 279.2 million diluted share count, in the comparable prior year period. For further information on the calculation of diluted shares, please see the attached schedule.