TRINITY, N.C.—Sealy posted a net loss of $5.2 million in the second quarter, compared to net income of $12 million for the second quarter of last year.
The loss occurred mostly because of a decline in net sales of 20.5 percent to $298.5 million, and a charge of $17.4 million related to refinancing, extinguishment of debt and interest-rate derivatives. Regarding the latter, Sealy said in May that it would refinance its credit facilities by paying down its existing credit facilities in full, entering into a new revolving-debt facility and issuing new senior secured notes and senior secured convertible notes.
Part of the sales decrease was 14 percent drop in U.S. sales. The falloff in total sales and the refinancing charge offset a reduction of nearly 18 percent in Sealy’s selling, general and administrative expenses and a drop of more than 22 percent in its cost of goods sold.
Larry Rogers, president and chief executive officer, said Sealy managed to strengthen its competitive position in the second quarter and “substantially improve our operating performance compared to the first quarter.”