Exhibit 99.2
The following is supplemental information regarding Mohawk Industries, Inc.
THIS IS NOT AN OFFER TO SELL OUR SECURITIES OR A SOLICITATION OF OFFERS TO
BUY OUR SECURITIES.
Unless the context otherwise requires, references in this supplemental
information to "we," "us," "our" and similar terms mean Mohawk Industries, Inc.
and its subsidiaries and references to the Transactions mean our acquisition of
Dal-Tile International Inc. and the financing transactions related to the
consummation thereof.
Summary Unaudited Pro Forma Condensed Combined Consolidated Financial
Information
The following table sets forth summary pro forma statement of earnings data
and summary pro forma balance sheet data of Mohawk at or for the year ended
December 31, 2001 after giving effect to the Transactions, using the purchase
method of accounting, as if they occurred on January 1, 2001 for the pro forma
statement of earnings data and as of December 31, 2001 for the pro forma balance
sheet data. This summary information is derived from Mohawk's unaudited pro
forma condensed combined consolidated financial information for these periods.
The following table also sets forth summary pro forma other financial data
(referred to as "Pro Forma Adjusted") of Mohawk at or for the year ended
December 31, 2001 after giving effect to the Transactions, using the purchase
method of accounting, and the anticipated refinancing of the $600 million short-
term bridge credit facility entered into as part of the Transactions as if the
Transactions and the anticipated refinancing had occurred on January 1, 2001 for
the statement of earnings related data and as of December 31, 2001 for the
balance sheet related data. In addition, the following table sets forth summary
historical financial data of Mohawk and Dal-Tile, which information is derived
from the audited historical consolidated financial statements of Mohawk and
Dal-Tile. The following table should be read in conjunction with Mohawk's
unaudited pro forma condensed combined consolidated financial information
included in Mohawk's Current Report on Form 8-K dated March 20, 2002 and the
historical consolidated financial statements and the related notes thereto of
Mohawk and Dal-Tile, respectively, included in Mohawk's Annual Report on Form
10-K for the fiscal year ended December 31, 2001 and Mohawk's Current Report on
Form 8-K dated March 20, 2002, respectively.
At or for the Year
Ended December 31, 2001
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Mohawk Dal-Tile Pro Forma
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(In thousands, except per share data
Statement of earnings data:
Net sales........................................ $3,445,945 1,036,795 4,482,740
Cost of sales.................................... 2,613,043 546,345 3,244,595
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Gross profit.................................. 832,902 490,450 1,238,145
Selling, general and administrative expenses..... 505,745 341,229 761,855
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Operating income.............................. 327,157 149,221 476,290
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Other expense (income):
Interest expense, net......................... 29,787 21,448 77,814
Other expense................................. 7,780 1,616 9,396
Other income.................................. (1,826) (2,137) (3,963)
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35,741 20,927 83,247
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Earnings before income taxes.................. 291,416 128,294 393,043
Income taxes..................................... 102,824 49,393 142,350
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Net earnings.................................. $ 188,592 78,901 250,693
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Diluted earnings per share....................... $ 3.55 3.79
========== =========
Weighted-average common and dilutive potential
common shares outstanding...................... 53,141 66,181
========== =========
Balance sheet data:
Total assets..................................... $1,768,485 678,422 3,775,251
Long-term debt (including current portion)....... 308,433 237,117 1,270,000
Stockholders' equity............................. 948,551 289,854 1,772,549
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At or for the Year
Ended December 31, 2001
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Mohawk Dal-Tile Pro Forma
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(In thousands, except per share and
ratio data)
Other financial data:
Capital expenditures(a).......................... $ 52,913 27,207 80,120
EBITDA(b)........................................ 411,324 178,630 589,954
Ratio of total long-term debt to EBITDA(b)....... 0.75 1.33 2.17
Ratio of EBITDA to interest expense(b)(c)........ 13.81 8.33 6.20
Ratio of total long-term debt to total
capitalization(d).............................. 0.25 0.45 0.42
Ratio of EBITDA less capital expenditures to
interest expense(a)(b)(c)...................... 12.03 7.06 5.35
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(1) Capital expenditures is defined as additions to property, plant and
equipment.
(2) EBITDA is defined as operating income plus depreciation and amortization.
EBITDA is presented because we believe it is a useful indicator of our
ability to meet debt service and capital expenditure requirements. It is
not, however, intended as an alternative measure of operating results or
cash flow from operations as determined in accordance with accounting
principles generally accepted in the United States. EBITDA is not
necessarily comparable to similarly titled measures for other companies.
(3) Interest expense with respect to the notes is calculated using an assumed
annual interest rate of 6.90%.
(4) Total capitalization is defined as the sum of total long-term debt and
total stockholders' equity.
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