– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
Business and Operations Highlights:
Company announces intent to separate into two leading publicly traded companies via a tax-free spin-off of Cabinets business
1Q 2022 sales of $1.9 billion increased 8 percent versus a year ago
1Q 2022 earnings per share (EPS) of $1.34; an increase of 6 percent versus a year ago; EPS before charges / gains of $1.31, a decrease of 4 percent versus a year ago
Company adjusts full year 2022 EPS range upward to reflect impact from share repurchases net of interest expense and taxes; Company maintains 2022 operational guidance
DEERFIELD, IL.--(BUSINESS WIRE)--Fortune Brands Home & Security, Inc. (NYSE: FBHS, the “Company”, or “Fortune Brands”), an industry-leading home and security products company, today announced that it intends to separate into two publicly traded companies and also reported first quarter 2022 results.
Summary of Intent to Separate Fortune Brands into Two World Class Companies
Fortune Brands’ Board of Directors authorized the Company to pursue a tax-free spin-off of its Cabinets business into a standalone publicly traded company. Upon closing of the proposed separation, shareholders would hold interests in two leading companies. The separation represents the Company’s next chapter of outstanding value creation. The result will be two well-positioned, leading companies with exceptional potential. New Fortune Brands will bring brand and innovation excellence to super-charged categories, leveraging secular growth themes of water management, outdoor living, material conversion and science, and connected products. Additionally, shareholders would hold interests in North America’s leading cabinets company delivering top-tier performance through operational excellence. A potential separation is subject to further Board approval and other customary conditions and is expected to take approximately 12 months to complete. Management will discuss the separation as part of its first quarter earnings call later today. An investor presentation highlighting the proposed separation, as well as first quarter earnings call details, can be found in the investor section on the Company’s website at www.FBHS.com.
“We are excited to be taking the next step in our value creation journey for stakeholders. There is much work to be done, but together with the rest of our Board, I believe that this separation will enable each company to recognize its full potential and unlock even greater long-term stakeholder value,” said Nicholas Fink, chief executive officer, Fortune Brands. “Each company will pursue independent paths with fit-for-purpose strategies supported by thoughtful investments. Our entire Company has delivered exceptional results over the past ten years, and our cabinets business has implemented the capabilities and demonstrated the performance required to thrive as an independent entity. The separation will result in two world class businesses with the scale, winning strategies, capabilities, and leadership to sustain and accelerate value creation. We are very excited for the future.”
The Company will be advised on the proposed separation by Ardea Partners, Barclays, Rothschild & Co, and Sidley Austin LLP.
First Quarter 2022
For the first quarter of 2022, sales were $1.9 billion, an increase of 8 percent over the first quarter of 2021. Earnings per share were $1.34, compared to $1.26 in the prior-year quarter, an increase of 6 percent. EPS before charges / gains were $1.31, compared to $1.36 the same quarter last year, a decrease of 4 percent. Operating income was $253.4 million, compared to $248.4 million in the prior-year quarter, an increase of 2 percent. Operating income before charges / gains was $249.6 million, compared to $261.8 million the same quarter last year, down 5 percent. Operating margin was 13.2 percent, compared to 14.0 percent in the first quarter of 2021. Operating margin before charges / gains was 13.0 percent, compared to 14.8 percent in the first quarter of 2021.
For each segment in the first quarter of 2022, compared to the prior-year quarter:
“Our teams again delivered excellent results in an extremely dynamic environment, demonstrating our commitment to serving our valued channel partners and consumers,” said Fink. “Demand remains robust across the portfolio and the consumer is continuing to invest in the home. We remain fully aware of the potential challenges from rising interest rates and continued inflation on consumers in the near-term, and our teams are actively managing our businesses to create value and deliver regardless of the environment. Demand and demographic fundamentals for housing remain favorable and support long-term growth and margin expansion going forward.”
Balance Sheet and Liquidity
At the end of the quarter, net debt was $3.0 billion and net debt to EBITDA was 2.3x. The Company had $378 million in cash and $553 million of availability under its revolving credit facility.
During the first quarter, the Company announced a $750 million share repurchase reauthorization. During the quarter, the Company repurchased approximately $380 million in common stock and year-to-date has repurchased approximately $405 million in common stock.
Additionally, on March 28, 2022, the Company announced it had priced $900 million in senior unsecured notes and used the proceeds and other liquidity sources to retire an outstanding term loan.
Annual Outlook for 2022
The Company is increasing the midpoint of full-year EPS by $0.05 to a range of $6.40 to $6.60, reflecting the impact of share repurchases net of interest expense and tax items. The midpoint implies EPS growth of 13 percent versus prior year. The Company is maintaining its operational guidance for the year.
“Our strong business model and track record of performance have proven resilient in a variety of complex market conditions over the past few years,” said Patrick Hallinan, chief financial officer, Fortune Brands. “We believe in the strength of long-term housing fundamentals, and we are confident in our leadership’s ability to seize on the opportunities and mitigate the challenges that may arise in the fluid near-term environment. We will continue to utilize our strength to position our Company for success and opportunistically deploy capital to drive value creation.”
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, IL., is a Fortune 500 company, part of the S&P 500 Index and a leader in the home products industry. With trusted brands and market leadership positions in each of its three operating segments, Water Innovations, Outdoors & Security, and Cabinets, Fortune Brands’ 28,000 associates work with a purpose to fulfill the dreams of home.
The Company’s growing portfolio of complementary businesses and innovative brands includes Moen and the House of Rohl within Water Innovations; outdoor living and security products from Therma-Tru, LARSON, Fiberon, Master Lock and SentrySafe; and MasterBrand Cabinets’ wide-ranging offerings from MANTRA, Diamond, Omega and many more. Visit www.FBHS.com to learn more about FBHS, its brands and how the Company is accelerating its environmental, social and governance (ESG) commitments.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains certain “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), regarding general business strategies, market potential, anticipated future financial performance, the potential of our brands and the housing market, and other matters. Statements preceded by, followed by or that otherwise include the words “believes”, “positioned”, “expects”, “estimates”, “plans”, “look to”, “outlook”, “intend”, and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements, including but not limited to include the expected benefits and costs of the intended spin-off transaction, the tax-free nature of the spin-off, the expected timing of the completion of the spin-off transaction and the transaction terms; general business and economic conditions; our reliance on the North American repair and remodel and new home construction activity levels; our reliance on key customers and suppliers; our ability to maintain our strong brands and to develop innovative products while maintaining our competitive positions; our ability to improve organizational productivity and global supply chain efficiency; our ability to obtain raw materials and finished goods in a timely and cost-effective manner; the impact of sustained inflation, including global commodity and energy availability and price volatility; the impact of trade-related tariffs and risks with uncertain trade environments or changes in government and industry regulatory standards; our ability to attract and retain qualified personnel and other labor constraints; the uncertainties relating to the impact of COVID-19 on the Company’s business and results, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have and may acquire; and the other factors discussed in our securities filings, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission. The forward-looking statements included in this release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.
Use of Non-GAAP Financial Information
This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as diluted earnings per share before charges / gains, operating income before charges / gains, operating margin before charges / gains, EBITDA before charges / gains, net debt, net debt to EBITDA before charges / gains, and free cash flow. These measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.
| FORTUNE BRANDS HOME & SECURITY, INC. | |||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
Three Months Ended March 31, |
|||||||||||||||||||||
2022 |
2021 |
% Change |
|||||||||||||||||||
| Net sales (GAAP) | |||||||||||||||||||||
| Water Innovations | $ |
643.6 |
|
$ |
621.6 |
|
4 |
|
|||||||||||||
| Outdoors & Security |
|
496.6 |
|
|
461.5 |
|
8 |
|
|||||||||||||
| Cabinets |
|
777.1 |
|
|
687.9 |
|
13 |
|
|||||||||||||
| Total net sales | $ |
1,917.3 |
|
$ |
1,771.0 |
|
8 |
|
|||||||||||||
| Quarter operating income | |||||||||||||||||||||
Before Charges & Gains |
GAAP |
||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
||||||||||||||||||||
| Operating income (loss) before charges/gains (a) | 2022 |
2021 |
% Change |
Operating income (loss) | 2022 |
2021 |
% Change |
||||||||||||||
| Water Innovations | $ |
150.1 |
|
$ |
149.4 |
|
- |
|
Water Innovations | $ |
149.3 |
|
$ |
147.9 |
|
1 |
|||||
| Outdoors & Security |
|
55.6 |
|
|
62.3 |
|
(11 |
) |
Outdoors & Security |
|
60.2 |
|
|
52.8 |
|
14 |
|
||||
| Cabinets |
|
73.6 |
|
|
74.5 |
|
(1 |
) |
Cabinets |
|
73.6 |
|
|
72.6 |
|
1 |
|
||||
| Corporate expenses |
|
(29.7 |
) |
|
(24.4 |
) |
22 |
|
Corporate expenses |
|
(29.7 |
) |
|
(24.9 |
) |
19 |
|
||||
| Total operating income before charges/gains | $ |
249.6 |
|
$ |
261.8 |
|
(5 |
) |
Total operating income (GAAP) | $ |
253.4 |
|
$ |
248.4 |
|
2 |
|
||||
| Earnings Per Share before charges/gains (b) | Diluted EPS (GAAP) | ||||||||||||||||||||
| Diluted | $ |
1.31 |
|
$ |
1.36 |
|
(4 |
) |
Diluted EPS | $ |
1.34 |
|
$ |
1.26 |
|
6 |
|
||||
| EBITDA before charges/gains (c) | $ |
297.7 |
|
$ |
309.1 |
|
(4 |
) |
Net income (GAAP) | $ |
180.9 |
|
$ |
177.8 |
|
2 |
|
||||
| (a) (b) (c) For definitions of Non-GAAP measures, see Definitions of Terms page | |||||||||||||||||||||
| FORTUNE BRANDS HOME & SECURITY, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (GAAP) | |||||||||
| (In millions) | |||||||||
| (Unaudited) | |||||||||
March 31, |
|
December 31, |
|||||||
2022 |
|
2021 |
|||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ |
378.2 |
$ |
471.5 |
|||||
| Accounts receivable, net |
|
1,011.6 |
|
|
885.7 |
|
|||
| Inventories |
|
1,334.7 |
|
|
1,193.8 |
|
|||
| Other current assets |
|
232.2 |
|
|
193.5 |
|
|||
| Total current assets |
|
2,956.7 |
|
|
2,744.5 |
|
|||
| Property, plant and equipment, net |
|
1,064.3 |
|
|
1,009.5 |
|
|||
| Goodwill |
|
2,487.5 |
|
|
2,465.1 |
|
|||
| Other intangible assets, net of accumulated amortization |
|
1,382.5 |
|
|
1,383.8 |
|
|||
| Other assets |
|
352.0 |
|
|
333.3 |
|
|||
| Total assets | $ |
8,243.0 |
|
$ |
7,936.2 |
|
|||
| Liabilities and equity | |||||||||
| Current liabilities | |||||||||
| Current portion of short term debt | $ |
- |
|
$ |
400.0 |
|
|||
| Accounts payable |
|
728.1 |
|
|
764.9 |
|
|||
| Other current liabilities |
|
626.7 |
|
|
806.2 |
|
|||
| Total current liabilities |
|
1,354.8 |
|
|
1,971.1 |
|
|||
| Long-term debt |
|
3,367.9 |
|
|
2,309.8 |
|
|||
| Deferred income taxes |
|
196.4 |
|
|
176.0 |
|
|||
| Other non-current liabilities |
|
409.1 |
|
|
414.5 |
|
|||
| Total liabilities |
|
5,328.2 |
|
|
4,871.4 |
|
|||
| Stockholders' equity |
|
2,914.8 |
|
|
3,064.8 |
|
|||
| Total equity |
|
2,914.8 |
|
|
3,064.8 |
|
|||
| Total liabilities and equity | $ |
8,243.0 |
|
$ |
7,936.2 |
|
|||
| FORTUNE BRANDS HOME & SECURITY, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
|
2022 |
|
|
2021 |
|
|||||||
| Operating activities | ||||||||||||
| Net income | $ |
180.9 |
|
$ |
177.8 |
|
||||||
| Depreciation and amortization |
|
46.9 |
|
|
47.7 |
|
||||||
| Non-cash lease expense |
|
10.9 |
|
|
10.7 |
|
||||||
| Deferred taxes |
|
5.7 |
|
|
(0.1 |
) |
||||||
| Gain on equity investments |
|
- |
|
|
2.9 |
|
||||||
| Other non-cash items |
|
7.0 |
|
|
13.0 |
|
||||||
| Changes in assets and liabilities, net |
|
(434.5 |
) |
|
(321.2 |
) |
||||||
| Net cash used in operating activities | $ |
(183.1 |
) |
$ |
(69.2 |
) |
||||||
| Investing activities | ||||||||||||
| Capital expenditures | $ |
(60.8 |
) |
$ |
(25.4 |
) |
||||||
| Proceeds from the disposition of assets |
|
8.0 |
|
|
1.7 |
|
||||||
| Cost of acquisitions, net of cash acquired |
|
(61.6 |
) |
|
5.2 |
|
||||||
| Net cash used in investing activities | $ |
(114.4 |
) |
$ |
(18.5 |
) |
||||||
| Financing activities | ||||||||||||
| Increase in debt, net | $ |
660.5 |
|
$ |
110.0 |
|
||||||
| Proceeds from the exercise of stock options |
|
0.2 |
|
|
10.6 |
|
||||||
| Treasury stock purchases |
|
(377.1 |
) |
|
(54.1 |
) |
||||||
| Dividends to stockholders |
|
(37.2 |
) |
|
(36.0 |
) |
||||||
| Other items, net |
|
(43.2 |
) |
|
(7.7 |
) |
||||||
| Net cash provided by financing activities | $ |
203.2 |
|
$ |
22.8 |
|
||||||
| Effect of foreign exchange rate changes on cash | $ |
0.7 |
|
$ |
1.7 |
|
||||||
| Net decrease in cash and cash equivalents | $ |
(93.6 |
) |
$ |
(63.2 |
) |
||||||
| Cash, cash equivalents and restricted cash* at beginning of period |
|
476.1 |
|
|
425.0 |
|
||||||
| Cash, cash equivalents and restricted cash* at end of period | $ |
382.5 |
|
$ |
361.8 |
|
||||||
| FREE CASH FLOW | Three Months Ended March 31, | 2022 Full Year | ||||||||||
|
2022 |
|
|
2021 |
|
Approximation |
||||||
| Free cash flow** | $ |
(235.7 |
) |
$ |
(82.3 |
) |
$ |
625.0 - 700.0 |
||||
| Add: |
|
|||||||||||
| Capital expenditures |
|
60.8 |
|
|
25.4 |
|
|
375.0 - 425.0 |
||||
| Less: |
|
|||||||||||
| Proceeds from the disposition of assets |
|
8.0 |
|
|
1.7 |
|
|
7.0 |
|
|||
| Proceeds from the exercise of stock options |
|
0.2 |
|
|
10.6 |
|
|
10.0 |
|
|||
| Cash flow from operations (GAAP) | $ |
(183.1 |
) |
$ |
(69.2 |
) |
$ |
983.0 - 1,108.0 |
|
|||
| *Restricted cash of $1.3 million and $3.0 million is included in Other current assets and Other assets, respectively, as of March 31, 2022. Restricted cash of $1.1 million and $4.7 million is included in Other current assets and Other assets, respectively, as of March 31, 2021. | ||||||||||||
| ** Free cash flow is cash flow from operations calculated in accordance with U.S. generally accepted accounting principles ("GAAP") less net capital expenditures (capital expenditures less proceeds from the disposition of assets including property, plant and equipment, and proceeds from the exercise of stock options). Free cash flow does not include adjustments for certain non-discretionary cash flows such as mandatory debt repayments. Free cash flow is a measure not derived in accordance with GAAP. Management believes that free cash flow provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions, repay debt and related interest, pay dividends and repurchase common stock. This measure may be inconsistent with similar measures presented by other companies. | ||||||||||||
| FORTUNE BRANDS HOME & SECURITY, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (GAAP) | |||||||||||
| (In millions, except per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
Three Months Ended March 31, |
|||||||||||
2022 |
2021 |
% Change |
|||||||||
| Net sales | $ |
1,917.3 |
|
$ |
1,771.0 |
8 |
|
||||
| Cost of products sold |
|
1,237.8 |
|
|
1,126.9 |
|
10 |
|
|||
| Selling, general | |||||||||||
| and administrative expenses |
|
409.5 |
|
|
371.5 |
|
10 |
|
|||
| Amortization of intangible assets |
|
16.0 |
|
|
16.6 |
|
(4 |
) |
|||
| Restructuring charges |
|
0.6 |
|
|
7.6 |
|
(92 |
) |
|||
| Operating income |
|
253.4 |
|
|
248.4 |
|
2 |
|
|||
| Interest expense |
|
21.8 |
|
|
21.4 |
|
2 |
|
|||
| Other (income) expense, net |
|
(1.3 |
) |
|
3.3 |
|
(139 |
) |
|||
| Income before taxes |
|
232.9 |
|
|
223.7 |
|
4 |
|
|||
| Income tax |
|
52.0 |
|
|
45.9 |
|
13 |
|
|||
| Net income | $ |
180.9 |
|
$ |
177.8 |
|
2 |
|
|||
| Diluted earnings per common share | |||||||||||
| Net income | $ |
1.34 |
|
$ |
1.26 |
|
6 |
|
|||
| Diluted average number of shares outstanding |
|
134.7 |
|
|
140.6 |
|
(4 |
) |
|||
| DILUTED EPS BEFORE CHARGES/GAINS RECONCILIATION | |||||||||||
| For the three months ended March 31, 2022, diluted EPS before charges/gains is net income calculated on a diluted per-share basis, excluding $3.8 million ($4.0 million after tax or $0.03 per diluted share) of net gains included in restructuring and other charges/gains. | |||||||||||
| For the three months ended March 31, 2021 diluted EPS before charges/gains is net income calculated on a diluted per-share basis, excluding $13.4 million ($10.0 million after tax or $0.08 per diluted share) of restructuring and other charges/gains and a loss on equity investment of $4.5 million ($3.4 million after tax or $0.02 per diluted share). | |||||||||||
| Three Months Ended March 31, | |||||||||||
2022 |
2021 |
% Change |
|||||||||
| Earnings Per Common Share - Diluted | |||||||||||
| Diluted EPS before charges/gains (b) | $ |
1.31 |
$ |
1.36 |
|
(4 |
) |
||||
| Restructuring and other (charges)/gains |
|
0.03 |
|
|
(0.08 |
) |
(138 |
) |
|||
| Loss on equity investments (d) |
|
- |
|
|
(0.02 |
) |
(100 |
) |
|||
| Diluted EPS (GAAP) | $ |
1.34 |
|
$ |
1.26 |
|
6 |
|
|||
| (b) (d) For definitions of Non-GAAP measures, see Definitions of Terms page | |||||||||||
FORTUNE BRANDS HOME & SECURITY, INC. |
||||||||||||
| (In millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| RECONCILIATION OF EBITDA BEFORE CHARGES/GAINS TO NET INCOME | ||||||||||||
Three Months Ended March 31, |
||||||||||||
2022 |
2021 |
% Change |
||||||||||
| EBITDA BEFORE CHARGES/GAINS (c) | $ |
297.7 |
|
$ |
309.1 |
|
|
(4 |
) |
|||
| Depreciation* | $ |
(30.8 |
) |
$ |
(29.5 |
) |
|
4 |
|
|||
| Amortization of intangible assets |
|
(16.0 |
) |
|
(16.6 |
) |
|
(4 |
) |
|||
| Restructuring and other (charges)/gains |
|
3.8 |
|
|
(13.4 |
) |
|
(128 |
) |
|||
| Interest expense |
|
(21.8 |
) |
|
(21.4 |
) |
|
2 |
|
|||
| Loss on equity investments (d) |
|
- |
|
|
(4.5 |
) |
|
(100 |
) |
|||
| Income taxes |
|
(52.0 |
) |
|
(45.9 |
) |
|
13 |
|
|||
| Net income (GAAP) | $ |
180.9 |
|
$ |
177.8 |
|
|
2 |
|
|||
| * Depreciation excludes accelerated depreciation expense of ($0.1) million and ($1.6) million for the three months ended March 31, 2022 and March 31, 2021, respectively. Accelerated depreciation is included in restructuring and other charges/gains. | ||||||||||||
| CALCULATION OF NET DEBT-TO-EBITDA BEFORE CHARGES/GAINS RATIO | ||||||||||||
| As of March 31, 2022 | ||||||||||||
| Long-term debt ** | $ |
3,367.9 |
|
|||||||||
| Total debt |
|
3,367.9 |
|
|||||||||
| Less: | ||||||||||||
| Cash and cash equivalents ** |
|
378.2 |
|
|||||||||
| Net debt (1) | $ |
2,989.7 |
|
|||||||||
| For the twelve months ended March 31, 2022 | ||||||||||||
| EBITDA before charges/gains (2) (c) | $ |
1,296.8 |
|
|||||||||
| Net debt-to-EBITDA before charges/gains ratio (1/2) |
|
2.3 |
|
|||||||||
| ** Amounts are per the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2022. | ||||||||||||
Nine Months Ended
|
Three Months
|
Twelve Months
|
||||||||||
2021 |
2022 |
2022 |
||||||||||
| EBITDA BEFORE CHARGES/GAINS (c) | $ |
999.1 |
|
$ |
297.7 |
|
$ |
1,296.8 |
|
|||
| Depreciation*** | $ |
(91.6 |
) |
$ |
(30.8 |
) |
$ |
(122.4 |
) |
|||
| Amortization of intangible assets |
|
(47.5 |
) |
|
(16.0 |
) |
|
(63.5 |
) |
|||
| Restructuring and other (charges)/gains |
|
(14.7 |
) |
|
3.8 |
|
|
(10.9 |
) |
|||
| Interest expense |
|
(63.0 |
) |
|
(21.8 |
) |
|
(84.8 |
) |
|||
| Defined benefit plan actuarial losses |
|
(0.9 |
) |
|
- |
|
|
(0.9 |
) |
|||
| Income taxes |
|
(186.8 |
) |
|
(52.0 |
) |
|
(238.8 |
) |
|||
| Net income (GAAP) | $ |
594.6 |
|
$ |
180.9 |
|
$ |
775.5 |
|
|||
| *** Depreciation excludes accelerated depreciation expense of ($0.1) million for the three months ended March 31, 2022 and ($2.2) million for the nine months ended December 31, 2021. Accelerated depreciation is included in restructuring and other charges/gains. | ||||||||||||
| (c) (d) For definitions of Non-GAAP measures, see Definitions of Terms page | ||||||||||||
FORTUNE BRANDS HOME & SECURITY, INC. |
|||||||||||
| (In millions, except per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
Three Months Ended March 31, |
|||||||||||
2022 |
2021 |
% Change |
|||||||||
| Net sales (GAAP) | |||||||||||
| Water Innovations | $ |
643.6 |
|
$ |
621.6 |
|
4 |
|
|||
| Outdoors & Security |
|
496.6 |
|
|
461.5 |
|
8 |
|
|||
| Cabinets |
|
777.1 |
|
|
687.9 |
|
13 |
|
|||
| Total net sales | $ |
1,917.3 |
|
$ |
1,771.0 |
|
8 |
|
|||
| Operating income (loss) | |||||||||||
| Water Innovations | $ |
149.3 |
|
$ |
147.9 |
|
1 |
|
|||
| Outdoors & Security |
|
60.2 |
|
|
52.8 |
|
14 |
|
|||
| Cabinets |
|
73.6 |
|
|
72.6 |
|
1 |
|
|||
| Corporate expenses |
|
(29.7 |
) |
|
(24.9 |
) |
19 |
|
|||
| Total operating income (GAAP) | $ |
253.4 |
|
$ |
248.4 |
|
2 |
|
|||
| OPERATING INCOME BEFORE CHARGES/GAINS RECONCILIATION | |||||||||||
| Operating income (loss) before charges/gains (a) | |||||||||||
| Water Innovations | $ |
150.1 |
|
$ |
149.4 |
|
- |
|
|||
| Outdoors & Security |
|
55.6 |
|
|
62.3 |
|
(11 |
) |
|||
| Cabinets |
|
73.6 |
|
|
74.5 |
|
(1 |
) |
|||
| Corporate expenses |
|
(29.7 |
) |
|
(24.4 |
) |
22 |
|
|||
| Total operating income before charges/gains (a) |
|
249.6 |
|
|
261.8 |
|
(5 |
) |
|||
| Restructuring and other (charges)/gains (1) (2) |
|
3.8 |
|
|
(13.4 |
) |
(128 |
) |
|||
| Total operating income (GAAP) | $ |
253.4 |
|
$ |
248.4 |
|
2 |
|
|||
| (1) Restructuring charges are costs incurred to implement significant cost reduction initiatives and include workforce reduction costs. | |||||||||||
| (2) "Other charges/gains" represent pre-tax charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. In total, we recognized other net gains of $5.4 million for the three months ended March 31, 2022, and other charges of $1.9 million for the three months ended March 31, 2021. In our Outdoors & Security segment, other charges also include an acquisition-related inventory step-up expense (Solar Innovations) of $0.7 million classified in cost of products sold and $0.3 million classified in selling, general and administrative for a compensation arrangement with the former owner of Solar for the three months ended March 31, 2022. At Corporate, other charges also include pre-tax expenditures of $0.3 million for banking, legal, accounting and other similar services directly related to the acquisition of Larson classified in selling, general and administrative expenses and a pre-tax charge of $0.2 million for a loss on sale of a Corporate asset during the three months ended March 31, 2021. In our Outdoors & Security segment, other charges also includes an acquisition-related inventory step-up expense (Larson) of $3.4 million classified in cost of products sold for the three months ended March 31, 2021. |
|||||||||||
| (a) For definitions of Non-GAAP measures, see Definitions of Terms page | |||||||||||
| FORTUNE BRANDS HOME & SECURITY, INC. | |||||||||||||
| Reconciliation of Income Statements - GAAP to Before Charges/Gains Information | |||||||||||||
| Three Months Ended March 31, | |||||||||||||
| (In millions, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Before Charges/Gains Adjustments | |||||||||||||
| Restructuring | Loss on | Before | |||||||||||
| GAAP | and other | equity | Charges/Gains | ||||||||||
| (unaudited) | (charges)/gains | investment | (Non-GAAP) | ||||||||||
2022 |
FIRST QUARTER | ||||||||||||
|
|||||||||||||
Net sales |
$ |
1,917.3 |
|
- |
|
- |
|
||||||
|
|||||||||||||
Cost of products sold |
|
1,237.8 |
|
5.4 |
|
- |
|
||||||
Selling, general & administrative expenses |
|
409.5 |
|
(1.0 |
) |
- |
|
||||||
Amortization of intangible assets |
|
16.0 |
|
- |
|
- |
|
||||||
Restructuring (charges)/gains |
|
0.6 |
|
(0.6 |
) |
- |
|
||||||
|
|||||||||||||
Operating income |
|
253.4 |
|
(3.8 |
) |
- |
|
|
249.6 |
||||
|
|||||||||||||
Interest expense |
|
21.8 |
|
- |
|
- |
|
||||||
Other (income) expense, net |
|
(1.3 |
) |
- |
|
- |
|
||||||
Income before taxes |
|
232.9 |
|
(3.8 |
) |
- |
|
|
229.1 |
|
|||
|
|||||||||||||
Income tax |
|
52.0 |
|
0.2 |
|
- |
|
||||||
|
|||||||||||||
Net income |
|
180.9 |
|
(4.0 |
) |
- |
|
$ |
176.9 |
|
|||
|
|||||||||||||
|
|||||||||||||
Diluted average number of shares outstanding |
|
134.7 |
|
|
134.7 |
|
|||||||
|
|||||||||||||
Diluted EPS |
$ |
1.34 |
|
$ |
1.31 |
|
|||||||
|
|||||||||||||
2021 |
|||||||||||||
|
|||||||||||||
Net sales |
$ |
1,771.0 |
|
- |
|
- |
|
||||||
|
|||||||||||||
Cost of products sold |
|
1,126.9 |
|
(5.3 |
) |
- |
|
||||||
Selling, general & administrative expenses |
|
371.5 |
|
(0.5 |
) |
- |
|
||||||
Amortization of intangible assets |
|
16.6 |
|
- |
|
- |
|
||||||
Restructuring (charges)/gains |
|
7.6 |
|
(7.6 |
) |
- |
|
||||||
|
|||||||||||||
Operating income |
|
248.4 |
|
13.4 |
|
- |
|
|
261.8 |
|
|||
|
|||||||||||||
Interest expense |
|
21.4 |
|
- |
|
- |
|
||||||
Other (income) expense, net |
|
3.3 |
|
- |
|
(4.5 |
) |
||||||
Income before taxes |
|
223.7 |
|
13.4 |
|
4.5 |
|
|
241.6 |
|
|||
|
|||||||||||||
Income tax |
|
45.9 |
|
3.4 |
|
1.1 |
|
||||||
|
|||||||||||||
Net income |
|
177.8 |
|
10.0 |
|
3.4 |
|
$ |
191.2 |
|
|||
|
|||||||||||||
Diluted average number of shares outstanding |
|
140.6 |
|
|
140.6 |
|
|||||||
|
|||||||||||||
Diluted EPS |
$ |
1.26 |
|
$ |
1.36 |
|
|||||||
| FORTUNE BRANDS HOME & SECURITY, INC. | |||||||||
| BEFORE CHARGES/GAINS OPERATING MARGIN TO OPERATING MARGIN | |||||||||
| (Unaudited) | |||||||||
Three Months Ended March 31, |
|||||||||
2022 |
2021 |
Change |
|||||||
| WATER INNOVATIONS | |||||||||
| Before charges/gains operating margin | 23.3 |
% |
24.0 |
% |
(70) bps | ||||
| Restructuring & other (charges)/gains | (0.1 |
%) |
(0.2 |
%) |
|||||
| Operating margin | 23.2 |
% |
23.8 |
% |
(60) bps | ||||
| OUTDOORS & SECURITY | |||||||||
| Before charges/gains operating margin | 11.2 |
% |
13.5 |
% |
(230) bps | ||||
| Restructuring & other (charges)/gains | 0.9 |
% |
(2.1 |
%) |
|||||
| Operating margin | 12.1 |
% |
11.4 |
% |
70 bps | ||||
| CABINETS | |||||||||
| Before charges/gains operating margin | 9.5 |
% |
10.8 |
% |
(130) bps | ||||
| Restructuring & other (charges)/gains | - |
|
(0.2 |
%) |
|||||
| Operating margin | 9.5 |
% |
10.6 |
% |
(110) bps | ||||
| TOTAL COMPANY | |||||||||
| Before charges/gains operating margin | 13.0 |
% |
14.8 |
% |
(180) bps | ||||
| Restructuring & other (charges)/gains | 0.2 |
% |
(0.8 |
%) |
|||||
| Operating margin | 13.2 |
% |
14.0 |
% |
(80) bps | ||||
| Operating margin is calculated as operating income derived in accordance with GAAP divided by GAAP net sales. Before charges/gains operating margin is operating income derived in accordance with GAAP, excluding restructuring and other charges/gains divided by GAAP net sales. Before charges/gains operating margin is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the returns generated by FBHS and its business segments. Management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. | |||||||||
| FORTUNE BRANDS HOME & SECURITY, INC. | ||||||||||||
| RECONCILIATION OF FULL YEAR 2022 GUIDANCE DILUTED EPS BEFORE CHARGES/GAINS TO GAAP DILUTED EPS | ||||||||||||
| (Unaudited) | ||||||||||||
Twelve Months Ending |
||||||||||||
December 31, 2022 |
December 31, 2021 |
% Change |
||||||||||
| Diluted EPS before charges/gains - full year range | $ | 6.40 - 6.60 | $ |
5.73 |
|
12 - 15 |
||||||
| Diluted EPS before charges/gains (b) | $ |
6.50 |
|
$ |
5.73 |
|
13 |
|
||||
| Restructuring and other (charges)/gains |
|
0.01 |
|
|
(0.17 |
) |
||||||
| Loss on equity investments (e) |
|
- |
|
|
(0.02 |
) |
||||||
| Tax items |
|
0.09 |
|
|
- |
|
||||||
| Diluted EPS - (GAAP) | $ |
6.60 |
|
$ |
5.54 |
|
19 |
|
||||
| Diluted EPS - (GAAP) - full year range | $ | 6.50 - 6.70 | $ |
5.54 |
|
17 - 21 |
|
|||||
| For the twelve months ended December 31, 2021, diluted EPS before charges/gains is net income calculated on a diluted per-share basis excluding $28.1 million ($22.9 million after tax or $0.17 per diluted share) of restructuring and other charges/gains, including $2.2 million of mark-to-market expense classified in the other expense, net associated with the acquisition of the remaining outstanding shares of Flo, which occurred in January 2022, loss on equity investments of $4.5 million ($3.4 million net of tax or $0.02 per diluted share), the impact from actuarial losses associated with our defined benefit plans of $1.0 million ($0.7 million net of tax) and a net tax expense of $0.2 million. | ||||||||||||
| (b) (e) For definitions of Non-GAAP measures, see Definitions of Terms page | ||||||||||||
| Definitions of Terms: Non-GAAP Measures | ||
| (a) Operating income (loss) before charges/gains is operating income derived in accordance with GAAP, excluding restructuring and other charges/gains. Operating income (loss) before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the returns generated by the Company and its business segments. Management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. | ||
| (b) Diluted EPS before charges/gains is net income calculated on a diluted per-share basis, excluding restructuring and other charges/gains, loss on equity investments and tax items. Diluted EPS before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. | ||
| (c) EBITDA before charges/gains is net income derived in accordance with GAAP, excluding depreciation, amortization of intangible assets, restructuring and other charges/gains, interest expense, defined benefit plan actuarial losses and income taxes. EBITDA before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to assess returns generated by the Company. Management believes this measure provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions and repay debt and related interest. This measure may be inconsistent with similar measures presented by other companies. | ||
| (d) Loss on equity investments is related to our investment in Flo Technologies. | ||
| Definitions of Terms: GAAP Measures | ||
| In the first quarter of 2022, our Plumbing segment was renamed “Water Innovations” in order to better align with our key brands and organizational purpose. The Plumbing segment name change is to the name only and had no impact on the Company’s historical financial position, results of operations, cash flow or segment level results previously reported. | ||
| In 2018 our Water Innovations segment entered into a strategic partnership with, and acquired non-controlling equity interests in, Flo Technologies, Inc. ("Flo"), a U.S. manufacturer of comprehensive water monitoring and shut-off systems with leak detection technologies. In January 2020, we entered into an agreement to acquire the remaining outstanding shares of Flo in a multi-phase transaction. As part of this agreement, we acquired a majority of Flo’s outstanding shares during 2020 and entered into a forward contract to purchase all remaining shares of Flo during the first quarter of 2022 for a price based on a multiple of Flo’s 2021 sales and adjusted earnings before interest and taxes. During the three months ended March 31, 2022, we made a final cash payment of $16.5 million to the legacy minority shareholders and it is classified in the Other financing, net line of the cash flow statement. | ||
In January 2022, we acquired 100% of the outstanding equity of Solar Innovations LLC and an affiliated entity (together, "Solar"), a leading producer of wide-opening exterior door systems and outdoor enclosures, for a total gross purchase price of approximately $63 million. The acquisition cost is subject to a final post-closing working capital adjustment. We financed the transaction using cash on hand and borrowings under our existing revolving credit facilities. Solar is part of the Outdoors & Security segment. Its complementary product offerings will support the segment’s outdoor living strategy.
|
||
Основные моменты бизнеса и операций:
Компания объявляет о намерении разделиться на две ведущие публично торгуемые компании путем безналогового выделения бизнеса Cabinets
Объем продаж в 1 квартале 2022 года в размере 1,9 миллиарда долларов увеличился на 8 процентов по сравнению с прошлым годом
Прибыль на акцию (EPS) за 1 квартал 2022 года составила 1,34 доллара США; рост на 6 процентов по сравнению с прошлым годом; прибыль на акцию до вычета расходов/прибыли составила 1,31 доллара США, что на 4 процента меньше, чем год назад
Компания корректирует диапазон EPS за весь 2022 год в сторону увеличения, чтобы отразить влияние выкупа акций за вычетом процентных расходов и налогов; Компания сохраняет операционное руководство на 2022 год.
ДИРФИЛД, Иллинойс.-- (BUSINESS WIRE)--Fortune Brands Home & Security, Inc. (NYSE: FBHS, “Компания” или “Fortune Brands”), ведущая в отрасли компания по производству товаров для дома и безопасности, сегодня объявила о намерении разделиться на две публично торгуемые компании, а также сообщила о результатах за первый квартал 2022 года.
Краткое изложение намерения разделить Fortune Brands на две компании мирового класса
Совет директоров Fortune Brands’ разрешил Компании провести безналоговое выделение своего бизнеса Cabinets в отдельную публичную компанию. После завершения предлагаемого разделения акционеры будут владеть долями в двух ведущих компаниях. Разделение представляет собой следующую главу выдающегося процесса создания стоимости Компании. Результатом станут две хорошо позиционируемые, ведущие компании с исключительным потенциалом. Новый Fortune Brands принесет превосходство бренда и инноваций в супер-заряженные категории, используя темы векового роста в области управления водными ресурсами, жизни на открытом воздухе, переработки материалов и науки, а также подключенных продуктов. Кроме того, акционеры будут владеть долями в ведущей телекоммуникационной компании Северной Америки, обеспечивающей высочайшую производительность за счет операционного совершенства. Потенциальное увольнение зависит от дальнейшего утверждения Советом директоров и других обычных условий и, как ожидается, займет около 12 месяцев. Руководство обсудит это разделение в рамках своего отчета о доходах за первый квартал позже сегодня. Презентацию для инвесторов, посвященную предлагаемому разделению, а также подробную информацию о доходах за первый квартал, можно найти в разделе для инвесторов на веб-сайте компании по адресу www.FBHS.com .
“Мы рады сделать следующий шаг в нашем путешествии по созданию ценности для заинтересованных сторон. Предстоит проделать большую работу, но вместе с остальными членами нашего Совета директоров я считаю, что это разделение позволит каждой компании полностью раскрыть свой потенциал и раскрыть еще большую долгосрочную ценность для заинтересованных сторон”, - сказал Николас Финк, главный исполнительный директор Fortune Brands. “Каждая компания будет следовать независимым путям с соответствующими целям стратегиями, подкрепленными продуманными инвестициями. Вся наша Компания добилась исключительных результатов за последние десять лет, а наш бизнес по производству шкафов реализовал возможности и продемонстрировал производительность, необходимую для процветания как независимого предприятия. Разделение приведет к созданию двух компаний мирового класса с масштабом, выигрышными стратегиями, возможностями и лидерством для поддержания и ускорения создания стоимости. Мы очень рады будущему”.
Компания будет проинформирована о предлагаемом разделении Ardea Partners, Barclays, Rothschild & Co и Sidley Austin LLP.
Первый квартал 2022 года
За первый квартал 2022 года объем продаж составил 1,9 миллиарда долларов, что на 8 процентов больше, чем в первом квартале 2021 года. Прибыль на акцию составила 1,34 доллара по сравнению с 1,26 доллара в предыдущем квартале, увеличившись на 6 процентов. Прибыль на акцию до вычета расходов/прибыли составила 1,31 доллара по сравнению с 1,36 доллара в том же квартале прошлого года, что на 4 процента меньше. Операционная прибыль составила 253,4 миллиона долларов по сравнению с 248,4 миллионами долларов в предыдущем квартале, увеличившись на 2 процента. Операционная прибыль до вычета расходов / прибылей составила 249,6 миллиона долларов по сравнению с 261,8 миллиона долларов в том же квартале прошлого года, что на 5 процентов меньше. Операционная маржа составила 13,2 процента по сравнению с 14,0 процента в первом квартале 2021 года. Операционная маржа до вычета расходов/прибыли составила 13,0 процента по сравнению с 14,8 процента в первом квартале 2021 года.
Для каждого сегмента в первом квартале 2022 года по сравнению с кварталом предыдущего года:
“Наши команды снова добились отличных результатов в чрезвычайно динамичной среде, продемонстрировав нашу приверженность обслуживанию наших уважаемых партнеров по каналам и потребителей”, - сказал Финк. “Спрос по всему портфелю остается устойчивым, и потребитель продолжает инвестировать в жилье. Мы по-прежнему полностью осознаем потенциальные проблемы, связанные с повышением процентных ставок и продолжающейся инфляцией для потребителей в ближайшей перспективе, и наши команды активно управляют нашим бизнесом, чтобы создавать ценность и обеспечивать результаты независимо от окружающей среды. Спрос и демографические показатели на жилье остаются благоприятными и поддерживают долгосрочный рост и расширение маржи в будущем”.
Баланс и Ликвидность
На конец квартала чистый долг составил 3,0 миллиарда долларов, а отношение чистого долга к EBITDA составило 2,3 раза. Компания располагала 378 миллионами долларов наличными и 553 миллионами долларов в рамках возобновляемой кредитной линии.
В течение первого квартала Компания объявила о повторной авторизации обратного выкупа акций на сумму 750 миллионов долларов. В течение квартала Компания выкупила обыкновенные акции на сумму около 380 миллионов долларов, а с начала года выкупила обыкновенные акции на сумму около 405 миллионов долларов.
Кроме того, 28 марта 2022 года Компания объявила, что оценила старшие необеспеченные облигации на сумму 900 миллионов долларов и использовала вырученные средства и другие источники ликвидности для погашения непогашенного срочного кредита.
Годовой прогноз на 2022 год
Компания увеличивает среднюю точку годовой прибыли на акцию на 0,05 доллара США до диапазона от 6,40 до 6,60 доллара США, отражая влияние выкупа акций за вычетом процентных расходов и налоговых статей. Средняя точка предполагает рост прибыли на акцию на 13 процентов по сравнению с предыдущим годом. Компания сохраняет свои операционные рекомендации на год.
“Наша сильная бизнес-модель и послужной список доказали свою устойчивость в различных сложных рыночных условиях за последние несколько лет”, - сказал Патрик Халлинан, финансовый директор Fortune Brands. “Мы верим в силу долгосрочных фундаментальных показателей жилищного строительства, и мы уверены в способности нашего руководства воспользоваться возможностями и смягчить проблемы, которые могут возникнуть в изменчивой краткосрочной среде. Мы будем продолжать использовать наши силы, чтобы позиционировать нашу компанию для достижения успеха и оппортунистически использовать капитал для создания добавленной стоимости”.
Об Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS) со штаб-квартирой в Дирфилде, штат Иллинойс, входит в список Fortune 500, входит в индекс S &P 500 и является лидером в индустрии товаров для дома. 28 000 сотрудников Fortune Brands, пользующихся доверием брендов и занимающих лидирующие позиции на рынке в каждом из трех операционных сегментов: "Водные инновации", "Безопасность на открытом воздухе" и "Шкафы", работают с целью воплощения мечты о доме.
Растущий портфель дополнительных бизнесов и инновационных брендов компании включает Moen и The House of Rohl в рамках Water Innovations; продукты для жизни на открытом воздухе и безопасности от Therma-Tru, LARSON, Fiberon, Master Lock и SentrySafe; а также широкий ассортимент шкафов MasterBrand от MANTRA, Diamond, Omega и многих других. Посещение www.FBHS.com чтобы узнать больше о FBHS, ее брендах и о том, как Компания ускоряет выполнение своих экологических, социальных и управленческих обязательств (ESG).
предостерегающее заявление относительно прогнозных заявлений
Настоящий пресс-релиз содержит определенные “прогнозные заявления”, сделанные в соответствии с положениями раздела 27A Закона о ценных бумагах 1933 года с поправками и Раздела 21E Закона о ценных бумагах и биржах 1934 года с поправками (“Закон о биржах”), касающиеся общих бизнес-стратегий, рыночных потенциал, ожидаемые будущие финансовые показатели, потенциал наших брендов и рынка жилья, а также другие вопросы. Утверждения, которым предшествуют, за которыми следуют или которые иным образом включают слова “полагает”, “позиционируется”, “ожидает”, “оценивает”, “планирует”, “рассчитывает”, “прогноз”, “намеревается” и аналогичные выражения или будущие или условные глаголы, такие как “будет”, “должны”, “хотели бы”, “могут” и “могли бы”, как правило, носят прогнозный характер, а не являются историческими фактами. В тех случаях, когда в каком-либо прогнозном заявлении мы выражаем ожидания или убеждения относительно будущих результатов или событий, такие ожидания или убеждения основаны на текущих планах и ожиданиях нашего руководства. Хотя мы считаем, что эти заявления основаны на разумных предположениях на них распространяются многочисленные факторы, Риски и неопределенности, которые могут вызвать фактические итоги и результаты могут существенно отличаться от тех, которые указаны в прогнозных заявлениях, включая, но не ограничиваясь числе ожидаемых выгод и издержек предполагаемой сделки спин-офф, безналоговый характер спин-офф, ожидаемые сроки завершения сделки спин-офф и условий сделки; общие деловые и экономические условия; наша зависимость от североамериканского ремонта и реконструкции и строительства нового дома уровней активности; нашу зависимость от основных клиентов и поставщиков; способность поддерживать наши сильные бренды и разработки новаторских продуктов при сохранении конкурентных позиций; наши возможности для повышения производительности и глобальной цепочки поставок эффективности; наши возможности получения сырья и готовой продукции своевременно и экономически эффективным образом; влияние долговременной инфляции, в том числе глобальных сырьевых и энергетических в наличии и неустойчивости цен; влияние торговых тарифов и рисков, связанных с неопределенным торговля сред или изменений в государственных и отраслевых нормативных стандартов; нашу способность привлекать и удерживать квалифицированный персонал и других трудовых проблем; неопределенность относительно влияния COVID-19 на бизнес и результаты нашей способности достичь ожидаемой выгоды наших стратегических инициатив, наша способность успешно выполнять нашу стратегию приобретения и интеграции бизнеса, что у нас есть и может приобретать; и другие факторы, рассмотренные в нашем ценных бумаг заявок, в том числе в пункте 1А годового отчета по форме 10-K за год, закончившийся 31 декабря 2021 года, поданных в комиссию по ценным бумагам и биржам. Прогнозные заявления, включенные в этот релиз, сделаны на дату настоящего документа, и, за исключением случаев, предусмотренных законом, мы не берем на себя никаких обязательств по обновлению, изменению или уточнению любых прогнозных заявлений, чтобы отразить события, новую информацию или обстоятельства, произошедшие после даты этого релиза.
Использование финансовой информации, не относящейся к ОПБУ
Данный пресс-релиз включает показатели, полученные не в соответствии с общепринятыми принципами бухгалтерского учета (“GAAP”), такие как разводненная прибыль на акцию до вычета расходов/прибылей, операционная прибыль до вычета расходов/прибылей, операционная маржа до вычета расходов/прибылей, EBITDA до вычета расходов/прибылей, чистый долг, отношение чистого долга к EBITDA до вычета расходов / прибыль и свободный денежный поток. Эти показатели не следует рассматривать изолированно или в качестве замены каких-либо показателей, полученных в соответствии с GAAP, а также могут быть несовместимы с аналогичными показателями, представленными другими компаниями. Сверка этих показателей с наиболее близко сопоставимыми показателями GAAP и причины использования Компанией этих показателей представлены на прилагаемых страницах.
| Fortune Brands HOME & SECURITY, INC. | |||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
Three Months Ended March 31, |
|||||||||||||||||||||
2022 |
2021 |
% Change |
|||||||||||||||||||
| Net sales (GAAP) | |||||||||||||||||||||
| Water Innovations | $ |
643.6 |
|
$ |
621.6 |
|
4 |
|
|||||||||||||
| Outdoors & Security |
|
496.6 |
|
|
461.5 |
|
8 |
|
|||||||||||||
| Cabinets |
|
777.1 |
|
|
687.9 |
|
13 |
|
|||||||||||||
| Total net sales | $ |
1,917.3 |
|
$ |
1,771.0 |
|
8 |
|
|||||||||||||
| Quarter operating income | |||||||||||||||||||||
Before Charges & Gains |
GAAP |
||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
||||||||||||||||||||
| Operating income (loss) before charges/gains (a) | 2022 |
2021 |
% Change |
Operating income (loss) | 2022 |
2021 |
% Change |
||||||||||||||
| Water Innovations | $ |
150.1 |
|
$ |
149.4 |
|
- |
|
Water Innovations | $ |
149.3 |
|
$ |
147.9 |
|
1 |
|||||
| Outdoors & Security |
|
55.6 |
|
|
62.3 |
|
(11 |
) |
Outdoors & Security |
|
60.2 |
|
|
52.8 |
|
14 |
|
||||
| Cabinets |
|
73.6 |
|
|
74.5 |
|
(1 |
) |
Cabinets |
|
73.6 |
|
|
72.6 |
|
1 |
|
||||
| Corporate expenses |
|
(29.7 |
) |
|
(24.4 |
) |
22 |
|
Corporate expenses |
|
(29.7 |
) |
|
(24.9 |
) |
19 |
|
||||
| Total operating income before charges/gains | $ |
249.6 |
|
$ |
261.8 |
|
(5 |
) |
Total operating income (GAAP) | $ |
253.4 |
|
$ |
248.4 |
|
2 |
|
||||
| Earnings Per Share before charges/gains (b) | Diluted EPS (GAAP) | ||||||||||||||||||||
| Diluted | $ |
1.31 |
|
$ |
1.36 |
|
(4 |
) |
Diluted EPS | $ |
1.34 |
|
$ |
1.26 |
|
6 |
|
||||
| EBITDA before charges/gains (c) | $ |
297.7 |
|
$ |
309.1 |
|
(4 |
) |
Net income (GAAP) | $ |
180.9 |
|
$ |
177.8 |
|
2 |
|
||||
| (a) (b) (c) For definitions of Non-GAAP measures, see Definitions of Terms page | |||||||||||||||||||||
| Fortune Brands HOME & SECURITY, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (GAAP) | |||||||||
| (In millions) | |||||||||
| (Unaudited) | |||||||||
March 31, |
|
December 31, |
|||||||
2022 |
|
2021 |
|||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ |
378.2 |
$ |
471.5 |
|||||
| Accounts receivable, net |
|
1,011.6 |
|
|
885.7 |
|
|||
| Inventories |
|
1,334.7 |
|
|
1,193.8 |
|
|||
| Other current assets |
|
232.2 |
|
|
193.5 |
|
|||
| Total current assets |
|
2,956.7 |
|
|
2,744.5 |
|
|||
| Property, plant and equipment, net |
|
1,064.3 |
|
|
1,009.5 |
|
|||
| Goodwill |
|
2,487.5 |
|
|
2,465.1 |
|
|||
| Other intangible assets, net of accumulated amortization |
|
1,382.5 |
|
|
1,383.8 |
|
|||
| Other assets |
|
352.0 |
|
|
333.3 |
|
|||
| Total assets | $ |
8,243.0 |
|
$ |
7,936.2 |
|
|||
| Liabilities and equity | |||||||||
| Current liabilities | |||||||||
| Current portion of short term debt | $ |
- |
|
$ |
400.0 |
|
|||
| Accounts payable |
|
728.1 |
|
|
764.9 |
|
|||
| Other current liabilities |
|
626.7 |
|
|
806.2 |
|
|||
| Total current liabilities |
|
1,354.8 |
|
|
1,971.1 |
|
|||
| Long-term debt |
|
3,367.9 |
|
|
2,309.8 |
|
|||
| Deferred income taxes |
|
196.4 |
|
|
176.0 |
|
|||
| Other non-current liabilities |
|
409.1 |
|
|
414.5 |
|
|||
| Total liabilities |
|
5,328.2 |
|
|
4,871.4 |
|
|||
| Stockholders' equity |
|
2,914.8 |
|
|
3,064.8 |
|
|||
| Total equity |
|
2,914.8 |
|
|
3,064.8 |
|
|||
| Total liabilities and equity | $ |
8,243.0 |
|
$ |
7,936.2 |
|
|||
| Fortune Brands HOME & SECURITY, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
|
2022 |
|
|
2021 |
|
|||||||
| Operating activities | ||||||||||||
| Net income | $ |
180.9 |
|
$ |
177.8 |
|
||||||
| Depreciation and amortization |
|
46.9 |
|
|
47.7 |
|
||||||
| Non-cash lease expense |
|
10.9 |
|
|
10.7 |
|
||||||
| Deferred taxes |
|
5.7 |
|
|
(0.1 |
) |
||||||
| Gain on equity investments |
|
- |
|
|
2.9 |
|
||||||
| Other non-cash items |
|
7.0 |
|
|
13.0 |
|
||||||
| Changes in assets and liabilities, net |
|
(434.5 |
) |
|
(321.2 |
) |
||||||
| Net cash used in operating activities | $ |
(183.1 |
) |
$ |
(69.2 |
) |
||||||
| Investing activities | ||||||||||||
| Capital expenditures | $ |
(60.8 |
) |
$ |
(25.4 |
) |
||||||
| Proceeds from the disposition of assets |
|
8.0 |
|
|
1.7 |
|
||||||
| Cost of acquisitions, net of cash acquired |
|
(61.6 |
) |
|
5.2 |
|
||||||
| Net cash used in investing activities | $ |
(114.4 |
) |
$ |
(18.5 |
) |
||||||
| Financing activities | ||||||||||||
| Increase in debt, net | $ |
660.5 |
|
$ |
110.0 |
|
||||||
| Proceeds from the exercise of stock options |
|
0.2 |
|
|
10.6 |
|
||||||
| Treasury stock purchases |
|
(377.1 |
) |
|
(54.1 |
) |
||||||
| Dividends to stockholders |
|
(37.2 |
) |
|
(36.0 |
) |
||||||
| Other items, net |
|
(43.2 |
) |
|
(7.7 |
) |
||||||
| Net cash provided by financing activities | $ |
203.2 |
|
$ |
22.8 |
|
||||||
| Effect of foreign exchange rate changes on cash | $ |
0.7 |
|
$ |
1.7 |
|
||||||
| Net decrease in cash and cash equivalents | $ |
(93.6 |
) |
$ |
(63.2 |
) |
||||||
| Cash, cash equivalents and restricted cash* at beginning of period |
|
476.1 |
|
|
425.0 |
|
||||||
| Cash, cash equivalents and restricted cash* at end of period | $ |
382.5 |
|
$ |
361.8 |
|
||||||
| FREE CASH FLOW | Three Months Ended March 31, | 2022 Full Year | ||||||||||
|
2022 |
|
|
2021 |
|
Approximation |
||||||
| Free cash flow** | $ |
(235.7 |
) |
$ |
(82.3 |
) |
$ |
625.0 - 700.0 |
||||
| Add: |
|
|||||||||||
| Capital expenditures |
|
60.8 |
|
|
25.4 |
|
|
375.0 - 425.0 |
||||
| Less: |
|
|||||||||||
| Proceeds from the disposition of assets |
|
8.0 |
|
|
1.7 |
|
|
7.0 |
|
|||
| Proceeds from the exercise of stock options |
|
0.2 |
|
|
10.6 |
|
|
10.0 |
|
|||
| Cash flow from operations (GAAP) | $ |
(183.1 |
) |
$ |
(69.2 |
) |
$ |
983.0 - 1,108.0 |
|
|||
| *Restricted cash of $1.3 million and $3.0 million is included in Other current assets and Other assets, respectively, as of March 31, 2022. Restricted cash of $1.1 million and $4.7 million is included in Other current assets and Other assets, respectively, as of March 31, 2021. | ||||||||||||
| ** Free cash flow is cash flow from operations calculated in accordance with U.S. generally accepted accounting principles ("GAAP") less net capital expenditures (capital expenditures less proceeds from the disposition of assets including property, plant and equipment, and proceeds from the exercise of stock options). Free cash flow does not include adjustments for certain non-discretionary cash flows such as mandatory debt repayments. Free cash flow is a measure not derived in accordance with GAAP. Management believes that free cash flow provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions, repay debt and related interest, pay dividends and repurchase common stock. This measure may be inconsistent with similar measures presented by other companies. | ||||||||||||
| Fortune Brands HOME & SECURITY, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (GAAP) | |||||||||||
| (In millions, except per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
Three Months Ended March 31, |
|||||||||||
2022 |
2021 |
% Change |
|||||||||
| Net sales | $ |
1,917.3 |
|
$ |
1,771.0 |
8 |
|
||||
| Cost of products sold |
|
1,237.8 |
|
|
1,126.9 |
|
10 |
|
|||
| Selling, general | |||||||||||
| and administrative expenses |
|
409.5 |
|
|
371.5 |
|
10 |
|
|||
| Amortization of intangible assets |
|
16.0 |
|
|
16.6 |
|
(4 |
) |
|||
| Restructuring charges |
|
0.6 |
|
|
7.6 |
|
(92 |
) |
|||
| Operating income |
|
253.4 |
|
|
248.4 |
|
2 |
|
|||
| Interest expense |
|
21.8 |
|
|
21.4 |
|
2 |
|
|||
| Other (income) expense, net |
|
(1.3 |
) |
|
3.3 |
|
(139 |
) |
|||
| Income before taxes |
|
232.9 |
|
|
223.7 |
|
4 |
|
|||
| Income tax |
|
52.0 |
|
|
45.9 |
|
13 |
|
|||
| Net income | $ |
180.9 |
|
$ |
177.8 |
|
2 |
|
|||
| Diluted earnings per common share | |||||||||||
| Net income | $ |
1.34 |
|
$ |
1.26 |
|
6 |
|
|||
| Diluted average number of shares outstanding |
|
134.7 |
|
|
140.6 |
|
(4 |
) |
|||
| DILUTED EPS BEFORE CHARGES/GAINS RECONCILIATION | |||||||||||
| For the three months ended March 31, 2022, diluted EPS before charges/gains is net income calculated on a diluted per-share basis, excluding $3.8 million ($4.0 million after tax or $0.03 per diluted share) of net gains included in restructuring and other charges/gains. | |||||||||||
| For the three months ended March 31, 2021 diluted EPS before charges/gains is net income calculated on a diluted per-share basis, excluding $13.4 million ($10.0 million after tax or $0.08 per diluted share) of restructuring and other charges/gains and a loss on equity investment of $4.5 million ($3.4 million after tax or $0.02 per diluted share). | |||||||||||
| Three Months Ended March 31, | |||||||||||
2022 |
2021 |
% Change |
|||||||||
| Earnings Per Common Share - Diluted | |||||||||||
| Diluted EPS before charges/gains (b) | $ |
1.31 |
$ |
1.36 |
|
(4 |
) |
||||
| Restructuring and other (charges)/gains |
|
0.03 |
|
|
(0.08 |
) |
(138 |
) |
|||
| Loss on equity investments (d) |
|
- |
|
|
(0.02 |
) |
(100 |
) |
|||
| Diluted EPS (GAAP) | $ |
1.34 |
|
$ |
1.26 |
|
6 |
|
|||
| (b) (d) For definitions of Non-GAAP measures, see Definitions of Terms page | |||||||||||
Fortune Brands HOME & SECURITY, INC. |
||||||||||||
| (In millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| RECONCILIATION OF EBITDA BEFORE CHARGES/GAINS TO NET INCOME | ||||||||||||
Three Months Ended March 31, |
||||||||||||
2022 |
2021 |
% Change |
||||||||||
| EBITDA BEFORE CHARGES/GAINS (c) | $ |
297.7 |
|
$ |
309.1 |
|
|
(4 |
) |
|||
| Depreciation* | $ |
(30.8 |
) |
$ |
(29.5 |
) |
|
4 |
|
|||
| Amortization of intangible assets |
|
(16.0 |
) |
|
(16.6 |
) |
|
(4 |
) |
|||
| Restructuring and other (charges)/gains |
|
3.8 |
|
|
(13.4 |
) |
|
(128 |
) |
|||
| Interest expense |
|
(21.8 |
) |
|
(21.4 |
) |
|
2 |
|
|||
| Loss on equity investments (d) |
|
- |
|
|
(4.5 |
) |
|
(100 |
) |
|||
| Income taxes |
|
(52.0 |
) |
|
(45.9 |
) |
|
13 |
|
|||
| Net income (GAAP) | $ |
180.9 |
|
$ |
177.8 |
|
|
2 |
|
|||
| * Depreciation excludes accelerated depreciation expense of ($0.1) million and ($1.6) million for the three months ended March 31, 2022 and March 31, 2021, respectively. Accelerated depreciation is included in restructuring and other charges/gains. | ||||||||||||
| CALCULATION OF NET DEBT-TO-EBITDA BEFORE CHARGES/GAINS RATIO | ||||||||||||
| As of March 31, 2022 | ||||||||||||
| Long-term debt ** | $ |
3,367.9 |
|
|||||||||
| Total debt |
|
3,367.9 |
|
|||||||||
| Less: | ||||||||||||
| Cash and cash equivalents ** |
|
378.2 |
|
|||||||||
| Net debt (1) | $ |
2,989.7 |
|
|||||||||
| For the twelve months ended March 31, 2022 | ||||||||||||
| EBITDA before charges/gains (2) (c) | $ |
1,296.8 |
|
|||||||||
| Net debt-to-EBITDA before charges/gains ratio (1/2) |
|
2.3 |
|
|||||||||
| ** Amounts are per the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2022. | ||||||||||||
Nine Months Ended
|
Three Months
|
Twelve Months
|
||||||||||
2021 |
2022 |
2022 |
||||||||||
| EBITDA BEFORE CHARGES/GAINS (c) | $ |
999.1 |
|
$ |
297.7 |
|
$ |
1,296.8 |
|
|||
| Depreciation*** | $ |
(91.6 |
) |
$ |
(30.8 |
) |
$ |
(122.4 |
) |
|||
| Amortization of intangible assets |
|
(47.5 |
) |
|
(16.0 |
) |
|
(63.5 |
) |
|||
| Restructuring and other (charges)/gains |
|
(14.7 |
) |
|
3.8 |
|
|
(10.9 |
) |
|||
| Interest expense |
|
(63.0 |
) |
|
(21.8 |
) |
|
(84.8 |
) |
|||
| Defined benefit plan actuarial losses |
|
(0.9 |
) |
|
- |
|
|
(0.9 |
) |
|||
| Income taxes |
|
(186.8 |
) |
|
(52.0 |
) |
|
(238.8 |
) |
|||
| Net income (GAAP) | $ |
594.6 |
|
$ |
180.9 |
|
$ |
775.5 |
|
|||
| *** Depreciation excludes accelerated depreciation expense of ($0.1) million for the three months ended March 31, 2022 and ($2.2) million for the nine months ended December 31, 2021. Accelerated depreciation is included in restructuring and other charges/gains. | ||||||||||||
| (c) (d) For definitions of Non-GAAP measures, see Definitions of Terms page | ||||||||||||
Fortune Brands HOME & SECURITY, INC. |
|||||||||||
| (In millions, except per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
Three Months Ended March 31, |
|||||||||||
2022 |
2021 |
% Change |
|||||||||
| Net sales (GAAP) | |||||||||||
| Water Innovations | $ |
643.6 |
|
$ |
621.6 |
|
4 |
|
|||
| Outdoors & Security |
|
496.6 |
|
|
461.5 |
|
8 |
|
|||
| Cabinets |
|
777.1 |
|
|
687.9 |
|
13 |
|
|||
| Total net sales | $ |
1,917.3 |
|
$ |
1,771.0 |
|
8 |
|
|||
| Operating income (loss) | |||||||||||
| Water Innovations | $ |
149.3 |
|
$ |
147.9 |
|
1 |
|
|||
| Outdoors & Security |
|
60.2 |
|
|
52.8 |
|
14 |
|
|||
| Cabinets |
|
73.6 |
|
|
72.6 |
|
1 |
|
|||
| Corporate expenses |
|
(29.7 |
) |
|
(24.9 |
) |
19 |
|
|||
| Total operating income (GAAP) | $ |
253.4 |
|
$ |
248.4 |
|
2 |
|
|||
| OPERATING INCOME BEFORE CHARGES/GAINS RECONCILIATION | |||||||||||
| Operating income (loss) before charges/gains (a) | |||||||||||
| Water Innovations | $ |
150.1 |
|
$ |
149.4 |
|
- |
|
|||
| Outdoors & Security |
|
55.6 |
|
|
62.3 |
|
(11 |
) |
|||
| Cabinets |
|
73.6 |
|
|
74.5 |
|
(1 |
) |
|||
| Corporate expenses |
|
(29.7 |
) |
|
(24.4 |
) |
22 |
|
|||
| Total operating income before charges/gains (a) |
|
249.6 |
|
|
261.8 |
|
(5 |
) |
|||
| Restructuring and other (charges)/gains (1) (2) |
|
3.8 |
|
|
(13.4 |
) |
(128 |
) |
|||
| Total operating income (GAAP) | $ |
253.4 |
|
$ |
248.4 |
|
2 |
|
|||
| (1) Restructuring charges are costs incurred to implement significant cost reduction initiatives and include workforce reduction costs. | |||||||||||
| (2) "Other charges/gains" represent pre-tax charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. In total, we recognized other net gains of $5.4 million for the three months ended March 31, 2022, and other charges of $1.9 million for the three months ended March 31, 2021. In our Outdoors & Security segment, other charges also include an acquisition-related inventory step-up expense (Solar Innovations) of $0.7 million classified in cost of products sold and $0.3 million classified in selling, general and administrative for a compensation arrangement with the former owner of Solar for the three months ended March 31, 2022. At Corporate, other charges also include pre-tax expenditures of $0.3 million for banking, legal, accounting and other similar services directly related to the acquisition of Larson classified in selling, general and administrative expenses and a pre-tax charge of $0.2 million for a loss on sale of a Corporate asset during the three months ended March 31, 2021. In our Outdoors & Security segment, other charges also includes an acquisition-related inventory step-up expense (Larson) of $3.4 million classified in cost of products sold for the three months ended March 31, 2021. |
|||||||||||
| (a) For definitions of Non-GAAP measures, see Definitions of Terms page | |||||||||||
| Fortune Brands HOME & SECURITY, INC. | |||||||||||||
| Reconciliation of Income Statements - GAAP to Before Charges/Gains Information | |||||||||||||
| Three Months Ended March 31, | |||||||||||||
| (In millions, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Before Charges/Gains Adjustments | |||||||||||||
| Restructuring | Loss on | Before | |||||||||||
| GAAP | and other | equity | Charges/Gains | ||||||||||
| (unaudited) | (charges)/gains | investment | (Non-GAAP) | ||||||||||
2022 |
FIRST QUARTER | ||||||||||||
|
|||||||||||||
Net sales |
$ |
1,917.3 |
|
- |
|
- |
|
||||||
|
|||||||||||||
Cost of products sold |
|
1,237.8 |
|
5.4 |
|
- |
|
||||||
Selling, general & administrative expenses |
|
409.5 |
|
(1.0 |
) |
- |
|
||||||
Amortization of intangible assets |
|
16.0 |
|
- |
|
- |
|
||||||
Restructuring (charges)/gains |
|
0.6 |
|
(0.6 |
) |
- |
|
||||||
|
|||||||||||||
Operating income |
|
253.4 |
|
(3.8 |
) |
- |
|
|
249.6 |
||||
|
|||||||||||||
Interest expense |
|
21.8 |
|
- |
|
- |
|
||||||
Other (income) expense, net |
|
(1.3 |
) |
- |
|
- |
|
||||||
Income before taxes |
|
232.9 |
|
(3.8 |
) |
- |
|
|
229.1 |
|
|||
|
|||||||||||||
Income tax |
|
52.0 |
|
0.2 |
|
- |
|
||||||
|
|||||||||||||
Net income |
|
180.9 |
|
(4.0 |
) |
- |
|
$ |
176.9 |
|
|||
|
|||||||||||||
|
|||||||||||||
Diluted average number of shares outstanding |
|
134.7 |
|
|
134.7 |
|
|||||||
|
|||||||||||||
Diluted EPS |
$ |
1.34 |
|
$ |
1.31 |
|
|||||||
|
|||||||||||||
2021 |
|||||||||||||
|
|||||||||||||
Net sales |
$ |
1,771.0 |
|
- |
|
- |
|
||||||
|
|||||||||||||
Cost of products sold |
|
1,126.9 |
|
(5.3 |
) |
- |
|
||||||
Selling, general & administrative expenses |
|
371.5 |
|
(0.5 |
) |
- |
|
||||||
Amortization of intangible assets |
|
16.6 |
|
- |
|
- |
|
||||||
Restructuring (charges)/gains |
|
7.6 |
|
(7.6 |
) |
- |
|
||||||
|
|||||||||||||
Operating income |
|
248.4 |
|
13.4 |
|
- |
|
|
261.8 |
|
|||
|
|||||||||||||
Interest expense |
|
21.4 |
|
- |
|
- |
|
||||||
Other (income) expense, net |
|
3.3 |
|
- |
|
(4.5 |
) |
||||||
Income before taxes |
|
223.7 |
|
13.4 |
|
4.5 |
|
|
241.6 |
|
|||
|
|||||||||||||
Income tax |
|
45.9 |
|
3.4 |
|
1.1 |
|
||||||
|
|||||||||||||
Net income |
|
177.8 |
|
10.0 |
|
3.4 |
|
$ |
191.2 |
|
|||
|
|||||||||||||
Diluted average number of shares outstanding |
|
140.6 |
|
|
140.6 |
|
|||||||
|
|||||||||||||
Diluted EPS |
$ |
1.26 |
|
$ |
1.36 |
|
|||||||
| Fortune Brands HOME & SECURITY, INC. | |||||||||
| BEFORE CHARGES/GAINS OPERATING MARGIN TO OPERATING MARGIN | |||||||||
| (Unaudited) | |||||||||
Three Months Ended March 31, |
|||||||||
2022 |
2021 |
Change |
|||||||
| WATER INNOVATIONS | |||||||||
| Before charges/gains operating margin | 23.3 |
% |
24.0 |
% |
(70) bps | ||||
| Restructuring & other (charges)/gains | (0.1 |
%) |
(0.2 |
%) |
|||||
| Operating margin | 23.2 |
% |
23.8 |
% |
(60) bps | ||||
| OUTDOORS & SECURITY | |||||||||
| Before charges/gains operating margin | 11.2 |
% |
13.5 |
% |
(230) bps | ||||
| Restructuring & other (charges)/gains | 0.9 |
% |
(2.1 |
%) |
|||||
| Operating margin | 12.1 |
% |
11.4 |
% |
70 bps | ||||
| CABINETS | |||||||||
| Before charges/gains operating margin | 9.5 |
% |
10.8 |
% |
(130) bps | ||||
| Restructuring & other (charges)/gains | - |
|
(0.2 |
%) |
|||||
| Operating margin | 9.5 |
% |
10.6 |
% |
(110) bps | ||||
| TOTAL COMPANY | |||||||||
| Before charges/gains operating margin | 13.0 |
% |
14.8 |
% |
(180) bps | ||||
| Restructuring & other (charges)/gains | 0.2 |
% |
(0.8 |
%) |
|||||
| Operating margin | 13.2 |
% |
14.0 |
% |
(80) bps | ||||
| Operating margin is calculated as operating income derived in accordance with GAAP divided by GAAP net sales. Before charges/gains operating margin is operating income derived in accordance with GAAP, excluding restructuring and other charges/gains divided by GAAP net sales. Before charges/gains operating margin is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the returns generated by FBHS and its business segments. Management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. | |||||||||
| Fortune Brands HOME & SECURITY, INC. | ||||||||||||
| RECONCILIATION OF FULL YEAR 2022 GUIDANCE DILUTED EPS BEFORE CHARGES/GAINS TO GAAP DILUTED EPS | ||||||||||||
| (Unaudited) | ||||||||||||
Twelve Months Ending |
||||||||||||
December 31, 2022 |
December 31, 2021 |
% Change |
||||||||||
| Diluted EPS before charges/gains - full year range | $ | 6.40 - 6.60 | $ |
5.73 |
|
12 - 15 |
||||||
| Diluted EPS before charges/gains (b) | $ |
6.50 |
|
$ |
5.73 |
|
13 |
|
||||
| Restructuring and other (charges)/gains |
|
0.01 |
|
|
(0.17 |
) |
||||||
| Loss on equity investments (e) |
|
- |
|
|
(0.02 |
) |
||||||
| Tax items |
|
0.09 |
|
|
- |
|
||||||
| Diluted EPS - (GAAP) | $ |
6.60 |
|
$ |
5.54 |
|
19 |
|
||||
| Diluted EPS - (GAAP) - full year range | $ | 6.50 - 6.70 | $ |
5.54 |
|
17 - 21 |
|
|||||
| For the twelve months ended December 31, 2021, diluted EPS before charges/gains is net income calculated on a diluted per-share basis excluding $28.1 million ($22.9 million after tax or $0.17 per diluted share) of restructuring and other charges/gains, including $2.2 million of mark-to-market expense classified in the other expense, net associated with the acquisition of the remaining outstanding shares of Flo, which occurred in January 2022, loss on equity investments of $4.5 million ($3.4 million net of tax or $0.02 per diluted share), the impact from actuarial losses associated with our defined benefit plans of $1.0 million ($0.7 million net of tax) and a net tax expense of $0.2 million. | ||||||||||||
| (b) (e) For definitions of Non-GAAP measures, see Definitions of Terms page | ||||||||||||
| Definitions of Terms: Non-GAAP Measures | ||
| (a) Operating income (loss) before charges/gains is operating income derived in accordance with GAAP, excluding restructuring and other charges/gains. Operating income (loss) before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the returns generated by the Company and its business segments. Management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. | ||
| (b) Diluted EPS before charges/gains is net income calculated on a diluted per-share basis, excluding restructuring and other charges/gains, loss on equity investments and tax items. Diluted EPS before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. | ||
| (c) EBITDA before charges/gains is net income derived in accordance with GAAP, excluding depreciation, amortization of intangible assets, restructuring and other charges/gains, interest expense, defined benefit plan actuarial losses and income taxes. EBITDA before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to assess returns generated by the Company. Management believes this measure provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions and repay debt and related interest. This measure may be inconsistent with similar measures presented by other companies. | ||
| (d) Loss on equity investments is related to our investment in Flo Technologies. | ||
| Definitions of Terms: GAAP Measures | ||
| In the first quarter of 2022, our Plumbing segment was renamed “Water Innovations” in order to better align with our key brands and organizational purpose. The Plumbing segment name change is to the name only and had no impact on the Company’s historical financial position, results of operations, cash flow or segment level results previously reported. | ||
| In 2018 our Water Innovations segment entered into a strategic partnership with, and acquired non-controlling equity interests in, Flo Technologies, Inc. ("Flo"), a U.S. manufacturer of comprehensive water monitoring and shut-off systems with leak detection technologies. In January 2020, we entered into an agreement to acquire the remaining outstanding shares of Flo in a multi-phase transaction. As part of this agreement, we acquired a majority of Flo’s outstanding shares during 2020 and entered into a forward contract to purchase all remaining shares of Flo during the first quarter of 2022 for a price based on a multiple of Flo’s 2021 sales and adjusted earnings before interest and taxes. During the three months ended March 31, 2022, we made a final cash payment of $16.5 million to the legacy minority shareholders and it is classified in the Other financing, net line of the cash flow statement. | ||
In January 2022, we acquired 100% of the outstanding equity of Solar Innovations LLC and an affiliated entity (together, "Solar"), a leading producer of wide-opening exterior door systems and outdoor enclosures, for a total gross purchase price of approximately $63 million. The acquisition cost is subject to a final post-closing working capital adjustment. We financed the transaction using cash on hand and borrowings under our existing revolving credit facilities. Solar is part of the Outdoors & Security segment. Its complementary product offerings will support the segment’s outdoor living strategy.
|
||
