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TEMPUR + SEALY TEMPUR SEALY REPORTS RECORD SECOND QUARTER RESULTS -Net Sales Increased 76 % Compared to the Second Quarter of 2020 -EPS Increased 527 % to $ 0.69 , Adjusted EPS Increased 295 % to $ 0.79 -Raises 2021 EPS Guidance Range and Increases Quarterly Dividend by 29 % LEXINGTON , KY , July 29 , 2021 - Tempur Sealy International , Inc. ( NYSE : TPX ) announced financial results for the second quarter ended June 30 , 2021. The Company issued updated financial guidance for the full year 2021 that reflects the improved business trends and the acquisition of Dreams , which is scheduled to close in early August . • • • • • SECOND QUARTER 2021 FINANCIAL SUMMARY Total net sales increased 75.8 % to $ 1,169.1 million as compared to $ 665.2 million in the second quarter of 2020. On a constant currency basis ( 1 ) , total net sales increased 72.6 % , with an increase of 73.8 % in the North America business segment and an increase of 64.5 % in the International business segment . Gross margin was 44.3 % as compared to 40.0 % in the second quarter of 2020. Adjusted gross margin ( ¹ ) was 40.6 % in the second quarter of 2020. There were no adjustments to gross margin in the second quarter of 2021 . Operating income increased 318.2 % to $ 223.3 million as compared to $ 53.4 million in the second quarter of 2020 . Adjusted operating income ( ¹ ) increased 191.7 % to $ 227.2 million as compared to $ 77.9 million in the second quarter of 2020 . Net income increased 512.2 % to $ 140.8 million as compared to $ 23.0 million in the second quarter of 2020. Adjusted net income ( 1 ) increased 294.9 % to $ 161.5 million as compared to $ 40.9 million in the second quarter of 2020 . Earnings before interest , tax , depreciation and amortization ( " EBITDA " ) ( ¹ ) increased 212.3 % to $ 266.1 million as compared to $ 85.2 million in the second quarter of 2020. Adjusted EBITDA per credit facility ( 1 ) increased 146.6 % to $ 270.3 million as compared to $ 109.6 million in the second quarter of 2020 . Earnings per diluted share ( " EPS " ) increased 527.3 % to $ 0.69 as compared to $ 0.11 in the second quarter of 2020 . Adjusted EPS ( ¹ ) increased 295.0 % to $ 0.79 as compared to $ 0.20 in the second quarter of 2020 . Net cash provided by operating activities increased to a record $ 226.7 million as compared to $ 155.4 million in the second quarter of 2020 . KEY HIGHLIGHTS Three Months Ended ( in millions , except percentages and per common share amounts ) June 30 , 2021 June 30 , 2020 % Reported % Constant Currency Change Change ( 1 ) Net sales $ 1,169.1 $ 665.2 75.8 % 72.6 % Net income $ 140.8 $ 23.0 512.2 % 486.5 % EBITDA ( 1 ) $ 266.1 $ 85.2 212.3 % 202.8 % Adjusted EBITDA per credit facility ( ¹ ) $ 270.3 $ 109.6 146.6 % 139.2 % EPS $ 0.69 $ 0.11 527.3 % 500.0 % Adjusted EPS ( 1 ) $ 0.79 $ 0.20 295.0 % 280.0 % Company Chairman and CEO Scott Thompson commented , " Our strong performance in the quarter was broad - based across geographies and channels . Our investments and strategies to strengthen the long - term growth potential of Tempur Sealy continue to enhance our competitive position . This quarter we were pleased to report global sales growth of 62 % compared to 2019 , a base year unaffected by COVID . We were especially pleased with our double - digit global web sales growth this quarter verses second quarter 2020 which grew over 125 % versus the prior year when traditional retail stores were impacted by COVID . The strength of our brands and products combined with the acquisition of Dreams resulted in increasing our full year guidance for 2021. At the midpoint of our updated 2021 adjusted EPS ( ¹ ) range , we expect to deliver full year growth of over 200 % compared to 2019 , again a base year unaffected by COVID . " While the strong industry and healthy consumer have been tailwinds for us recently , our sales and earnings growth has been significantly outpacing the overall market . Our performance is linked to our company initiatives , with new distribution driving approximately 50 % of our expected 2 - year sales growth . Another approximately 35 % of our expected growth is from strategic mergers and acquisitions as well as sales from previously untapped markets , including the direct to consumer and OEM