ST. PAUL, Minn., Jan. 18, 2012 /PRNewswire/ -- H.B. Fuller Company (NYSE: FUL) today reported financial results for the fourth quarter that ended December 3, 2011.
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Note that the 2011 fiscal year had 53 weeks of commercial activity while fiscal years 2010 and 2012 are each the normal 52 weeks in length. The fourth quarter of 2011 had 14 weeks while the fourth quarters of 2010 and 2012 are each the normal 13 weeks in length. Year-over-year comparisons are provided on an as reported basis and also are presented to reflect the estimated result as if both periods contained the same number of weeks of commercial activity.
Fourth Quarter 2011 Highlights Included:
- Net revenue increased 21 percent year-over-year or 13 percent when adjusting for the extra week;
- Gross profit margin improved 50 basis points year-over-year despite ongoing raw material cost inflation and was essentially unchanged from the prior quarter;
- Operating Income(2) was up 36 percent from the prior year, and up 27 percent after adjusting for the extra week.
Full-Year 2011 Highlights Included:
- Net revenue increased by nearly 15 percent year-over-year, or nearly 13 percent after adjusting for the extra week;
- Year-over year growth in Selling, General and Administrative (SG&A) expense was less than 7 percent when adjusted for the extra week; SG&A as a percent of net revenue declined 120 basis points in 2011 to 20.4 percent;
- Operating Income(2) increased nearly 24 percent year-over-year, or 21 percent after adjusting for the extra week;
- Adjusted diluted EPS(1) grew 19 percent year-over-year.
Fourth Quarter 2011 Results:
Net income for the fourth quarter of 2011 was $26.4 million, or $0.53 per diluted share, versus $21.9 million, or $0.44 per diluted share, in last year's fourth quarter. Two previously announced events negatively impacted net income in the quarter. The pre-tax cost directly associated with the EIMEA transformation plan and the pending acquisition of the Industrial Adhesives business from the Forbo Group totaled $7.5 million, or $0.12 per diluted share. After adjusting for these special charges, net income for the fourth quarter of 2011 was $0.65(1) per diluted share. Therefore, adjusted diluted earnings per share in the fourth quarter of 2011 increased 48 percent compared to the results of the prior year.
Net revenue for the fourth quarter of 2011 was $436.5 million, up 21.2 percent versus the fourth quarter of 2010, or up 13 percent when adjusted for the extra week. Higher average selling prices, favorable foreign currency translation, and higher volume inclusive of an extra week positively impacted net revenue growth by 11.0, 2.6 and 7.6 percentage points, respectively. Organic revenue grew by 18.6 percent year-over-year.
Gross profit margin was up 50 basis points versus the fourth quarter of 2010, and essentially flat versus the previous quarter reflecting the cumulative positive impact of pricing actions, product reformulations and substitutions over the past year. Relative to the prior year, SG&A expense was up 17.6 percent, or 9.2 percent after adjusting for the extra week. SG&A expense was down 60 basis points as a percentage of net revenue compared to the prior year. Operating income(2) was up 36 percent compared to the fourth quarter of 2010, or up 27 percent when adjusted for the extra week.
Balance Sheet and Cash Flow:
At the end of the fourth quarter of 2011, the Company had cash totaling $156 million and total debt of $232 million. This compares to third quarter levels of $149 million and $238 million, respectively. Net debt was $76 million at the end of the fourth quarter, down approximately $13 million from the previous quarter. Cash flow from operations was $40 million in the fourth quarter and $102 million for the full year. Capital expenditures for the fourth quarter were $12.4 million and $36 million for the full year.
Fiscal Year 2011 Results:
Net income for the 2011 fiscal year was $89.1 million, or $1.79 per diluted share, versus $70.9 million, or $1.43 per diluted share, in the 2010 fiscal year. The pre-tax cost associated with the EIMEA transformation plan and the pending acquisition of the Industrial Adhesives business from the Forbo Group totaled $7.5 million, or $0.11 per diluted share. Excluding these charges, net income for the 2011 fiscal year was $94.9 million, or $1.90(1) per diluted share. Net income for the 2010 fiscal year included exit costs and non-cash impairment charges associated with the exiting of the Company's polysulfide insulating glass sealant product line in Europe. After adjusting for these charges, net income for the 2010 fiscal year was $79.3 million, or $1.60(1) per diluted share. On an adjusted basis, diluted earnings per share were up 19 percent from the prior year.
Net revenue for the 2011 fiscal year was $1,557.6 million, up 14.9 percent versus the 2010 fiscal year, or up nearly 13 percent when adjusted for the extra week. Higher average selling prices, favorable foreign currency translation, acquisitions, and higher volume inclusive of an extra week positively impacted net revenue growth by 9.7, 2.7, 0.8 and 1.7 percentage points, respectively. Organic revenue grew by 11.4 percent year-over-year.
Gross profit margin was down 60 basis points versus the gross profit margin in 2010, primarily reflecting the impact of raw material cost escalation of nearly 20 percent in the 2011 fiscal year. Relative to the prior year, SG&A expense was higher by less than 9 percent, or less than 7 percent when adjusting for the extra week, and was down 120 basis points as a percentage of net revenue. Operating income(2) was up nearly 24 percent in 2011, or 21 percent when adjusting for the extra week, compared to the 2010 fiscal year.
Fiscal 2012 Outlook:
"We are very pleased with our results for the fourth quarter and the 2011 fiscal year," said Jim Owens, H. B. Fuller president and chief executive officer. "The business delivered a second consecutive year of strong organic growth, displayed a positive trend in gross margin progression throughout the year in the face of continued raw material cost escalation and we leveraged our investments to drive SG&A as a percent of net revenue down by over 100 basis points. We expect a strong 2012 fiscal year and steady progress towards the long-term financial goals that we laid out in July of 2011. The addition of Forbo's Industrial Adhesive business will further strengthen our business as it is integrated and we realize the potential of the combined businesses."
The following highlights the Company's expectations for several key metrics in its 2012 financial outlook:
- Net revenue up 4 to 7 percent relative to 2011, or 6 to 9 percent growth when adjusted for the extra week in 2011;
- Earnings per diluted share of between $2.05 and $2.15;
- Key foreign exchange translation rate assumption isone dollar and 38 cents per euro;
- Capital expenditures of approximately $40 million;
- The Company's effective tax rate, excluding discrete items, is expected to be 31 percent.
This guidance excludes certain non-recurring costs associated with the EIMEA transformation project and non-recurring costs related to the proposed acquisition of the Industrial Adhesive business from the Forbo Group. This guidance will be adjusted to include the impact of the pending acquisition once the transaction closes.
Conference Call:
The Company will host an investor conference call to discuss fourth quarter 2011 results on Thursday, January 19, 2012, at 9:30 a.m. Central time (10:30 a.m. Eastern time). The conference call audio and accompanying presentation slides will be available to all interested parties via a simultaneous webcast at www.hbfuller.com under the Investor Relations section. The event is scheduled to last one hour. For those unable to listen live, an audio replay of the event along with the accompanying presentation will be archived on the Company's website.
Regulation G:
The information presented in this earnings release regarding operating income, operating margin, adjusted diluted earnings per share, and earnings before interest, taxes, depreciation, and amortization (EBITDA) does not conform to generally accepted accounting principles (GAAP) and should not be construed as an alternative to the reported results determined in accordance with GAAP. Management has included this non-GAAP information to assist in understanding the operating performance of the Company. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported GAAP results in the tables below.
About H.B. Fuller Company:
For 125 years, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. Recognized for unmatched technical support and innovation, H.B. Fuller brings knowledge and strength to help its customers find precisely the right formulation for the right performance. With fiscal 2011 net revenue of $1.6 billion, H.B. Fuller serves customers in packaging, hygiene, paper converting, general assembly, woodworking, construction, and consumer businesses. For more information, visit HBFuller.com, HBFullerStrength.com, read our blog or follow GlueTalk on Twitter.
Safe Harbor for Forward-Looking Statements:
Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: the Company's ability to effectively integrate and operate acquired businesses; political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; geographic and product mix; availability and price of raw materials; the Company's relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and environmental matters; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Further information about the various risks and uncertainties can be found in the Company's SEC 10-Q filings of March 28, 2011, June 24, 2011 and September 23, 2011, and 10-K filing for the fiscal year ended November 27, 2010. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the Company and the regions where the Company does business make it difficult to determine with certainty the increases or decreases in net revenue resulting from changes in the volume of products sold, currency impact, changes in product mix, and selling prices. However, management's best estimates of these changes as well as changes in other factors have been included.
Maximillian Marcy
Investor Relations
651-236-5062
H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||
CONSOLIDATED FINANCIAL INFORMATION | |||||||||
In thousands, except per share amounts (unaudited) | |||||||||
14 Weeks Ended | Percent of | 13 Weeks Ended | Percent of | ||||||
December 3, 2011 | Net Revenue | November 27, 2010 | Net Revenue | ||||||
Net revenue | $ | 436,526 | 100.0% | $ | 360,243 | 100.0% | |||
Cost of sales | (310,913) | (71.2%) | (258,123) | (71.7%) | |||||
Gross profit | 125,613 | 28.8% | 102,120 | 28.3% | |||||
Selling, general and administrative expenses | (85,243) | (19.5%) | (72,512) | (20.1%) | |||||
Special charges | (7,499) | (1.7%) | - | 0.0% | |||||
Other income (expense), net | 2,779 | 0.6% | 254 | 0.1% | |||||
Interest expense | (2,895) | (0.7%) | (2,754) | (0.8%) | |||||
Income before income taxes and income from equity method investments | 32,755 | 7.5% | 27,108 | 7.5% | |||||
Income taxes | (8,734) | (2.0%) | (8,155) | (2.3%) | |||||
Income from equity method investments | 2,575 | 0.6% | 2,617 | 0.7% | |||||
Net income including non-controlling interests | 26,596 | 6.1% | 21,570 | 6.0% | |||||
Net (income) loss attributable to non-controlling interests | (188) | (0.1%) | 366 | 0.1% | |||||
Net income attributable to H.B. Fuller | $ | 26,408 | 6.0% | $ | 21,936 | 6.1% | |||
Basic income per common share attributable to H.B. Fuller | $ | 0.54 | $ | 0.45 | |||||
Diluted income per common share attributable to H.B. Fuller | $ | 0.53 | $ | 0.44 | |||||
Weighted-average common shares outstanding: | |||||||||
Basic | 48,937 | 48,740 | |||||||
Diluted | 49,821 | 49,740 | |||||||
Dividends declared per common share | $ | 0.075 | $ | 0.070 | |||||
Selected Balance Sheet Information (subject to change prior to filing of the Company's Annual Report on Form 10-K) | ||||||||
December 3, 2011 | November 27, 2010 | November 28, 2009 | ||||||
Cash & cash equivalents | $ | 156,149 | $ | 133,277 | $ | 100,154 | ||
Trade accounts receivable, net | 244,275 | 221,020 | 203,898 | |||||
Inventories | 135,993 | 121,621 | 116,907 | |||||
Trade payables | 116,354 | 102,107 | 109,165 | |||||
Total assets | 1,227,709 | 1,153,457 | 1,100,445 | |||||
Total debt | 232,296 | 250,721 | 214,028 | |||||
H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||
CONSOLIDATED FINANCIAL INFORMATION | |||||||||
In thousands, except per share amounts (unaudited) | |||||||||
53 Weeks Ended | Percent of | 52 Weeks Ended | Percent of | ||||||
December 3, 2011 | Net Revenue | November 27, 2010 | Net Revenue | ||||||
Net revenue | $ | 1,557,552 | 100.0% | $ | 1,356,161 | 100.0% | |||
Cost of sales | (1,110,462) | (71.3%) | (958,980) | (70.7%) | |||||
Gross profit | 447,090 | 28.7% | 397,181 | 29.3% | |||||
Selling, general and administrative expenses | (318,046) | (20.4%) | (292,836) | (21.6%) | |||||
Special charges | (7,499) | (0.5%) | - | 0.0% | |||||
Asset impairment charges | (332) | (0.0%) | (8,785) | (0.6%) | |||||
Other income (expense), net | 4,590 | 0.3% | 2,572 | 0.2% | |||||
Interest expense | (10,811) | (0.7%) | (10,414) | (0.8%) | |||||
Income before income taxes and income from equity method investments | 114,992 | 7.4% | 87,718 | 6.5% | |||||
Income taxes | (34,951) | (2.3%) | (25,307) | (1.9%) | |||||
Income from equity method investments | 9,006 | 0.6% | 8,008 | 0.6% | |||||
Net income including non-controlling interests | 89,047 | 5.7% | 70,419 | 5.2% | |||||
Net loss attributable to non-controlling interests | 58 | 0.0% | 458 | 0.0% | |||||
Net income attributable to H.B. Fuller | $ | 89,105 | 5.7% | $ | 70,877 | 5.2% | |||
Basic income per common share attributable to H.B. Fuller | $ | 1.82 | $ | 1.46 | |||||
Diluted income per common share attributable to H.B. Fuller | $ | 1.79 | $ | 1.43 | |||||
Weighted-average common shares outstanding: | |||||||||
Basic | 48,991 | 48,599 | |||||||
Diluted | 49,866 | 49,608 | |||||||
Dividends declared per common share | $ | 0.295 | $ | 0.278 | |||||
H.B. FULLER COMPANY AND SUBSIDIARIES | |||||
REGION FINANCIAL INFORMATION | |||||
In thousands (unaudited) | |||||
14 Weeks Ended | 13 Weeks Ended | ||||
December 3, 2011 | November 27, 2010 | ||||
Net Revenue: | |||||
North America | $ | 169,641 | $ | 142,471 | |
EIMEA | 134,116 | 108,858 | |||
Latin America | 77,978 | 65,561 | |||
Asia Pacific | 54,791 | 43,353 | |||
Total H.B. Fuller | $ | 436,526 | $ | 360,243 | |
Operating Income:(2) | |||||
North America | $ | 21,310 | $ | 18,512 | |
EIMEA | 9,600 | 4,281 | |||
Latin America | 6,682 | 5,022 | |||
Asia Pacific | 2,778 | 1,793 | |||
Total H.B. Fuller | $ | 40,370 | $ | 29,608 | |
Depreciation Expense: | |||||
North America | $ | 3,695 | $ | 3,498 | |
EIMEA | 2,564 | 2,444 | |||
Latin America | 1,090 | 1,189 | |||
Asia Pacific | 1,081 | 838 | |||
Total H.B. Fuller | $ | 8,430 | $ | 7,969 | |
Amortization Expense: | |||||
North America | $ | 2,020 | $ | 1,998 | |
EIMEA | 312 | 235 | |||
Latin America | 6 | 12 | |||
Asia Pacific | 269 | 269 | |||
Total H.B. Fuller | $ | 2,607 | $ | 2,514 | |
EBITDA:(3) | |||||
North America | $ | 27,025 | $ | 24,008 | |
EIMEA | 12,476 | 6,960 | |||
Latin America | 7,778 | 6,223 | |||
Asia Pacific | 4,128 | 2,900 | |||
Total H.B. Fuller | $ | 51,407 |
$ | 40,091 | |
Operating Margin:(4) | |||||
North America | 12.6% | 13.0% | |||
EIMEA | 7.2% | 3.9% | |||
Latin America | 8.6% | 7.7% | |||
Asia Pacific | 5.1% | 4.1% | |||
Total H.B. Fuller | 9.2% | 8.2% | |||
EBITDA Margin:(3) | |||||
North America | 15.9% | 16.9% | |||
EIMEA | 9.3% | 6.4% | |||
Latin America | 10.0% | 9.5% | |||
Asia Pacific | 7.5% | 6.7% | |||
Total H.B. Fuller | 11.8% | 11.1% | |||
Net Revenue Growth: | |||||
North America | 19.1% | ||||
EIMEA | 23.2% | ||||
Latin America | 18.9% | ||||
Asia Pacific | 26.4% | ||||
Total H.B. Fuller | 21.2% | ||||
H.B. FULLER COMPANY AND SUBSIDIARIES | |||||
REGION FINANCIAL INFORMATION | |||||
In thousands (unaudited) | |||||
53 Weeks Ended | 52 Weeks Ended | ||||
December 3, 2011 | November 27, 2010 | ||||
Net Revenue: | |||||
North America | $ | 624,427 | $ | 567,223 | |
EIMEA | 473,718 | 404,751 | |||
Latin America | 260,738 | 229,319 | |||
Asia Pacific | 198,669 | 154,868 | |||
Total H.B. Fuller | $ | 1,557,552 | $ | 1,356,161 | |
Operating Income:(2) | |||||
North America | $ | 78,976 | $ | 73,048 | |
EIMEA | 26,291 | 13,962 | |||
Latin America | 15,198 | 11,339 | |||
Asia Pacific | 8,579 | 5,996 | |||
Total H.B. Fuller | $ | 129,044 | $ | 104,345 | |
Depreciation Expense: | |||||
North America | $ | 13,338 | $ | 13,754 | |
EIMEA | 9,661 | 9,499 | |||
Latin America | 4,100 | 4,288 | |||
Asia Pacific | 3,955 | 2,820 | |||
Total H.B. Fuller | $ | 31,054 | $ | 30,361 | |
Amortization Expense: | |||||
North America | $ | 8,046 | $ | 8,378 | |
EIMEA | 1,001 | 1,625 | |||
Latin America | 27 | 203 | |||
Asia Pacific | 1,088 | 633 | |||
Total H.B. Fuller | $ | 10,162 | $ | 10,839 | |
EBITDA:(3) | |||||
North America | $ | 100,360 | $ | 95,180 | |
EIMEA | 36,953 | 25,086 | |||
Latin America | 19,325 | 15,830 | |||
Asia Pacific | 13,622 | 9,449 | |||
Total H.B. Fuller | $ | 170,260 | $ | 145,545 | |
Operating Margin:(4) | |||||
North America | 12.6% | 12.9% | |||
EIMEA | 5.5% | 3.4% | |||
Latin America | 5.8% | 4.9% | |||
Asia Pacific | 4.3% | 3.9% | |||
Total H.B. Fuller | 8.3% | 7.7% | |||
EBITDA Margin:(3) | |||||
North America | 16.1% | 16.8% | |||
EIMEA | 7.8% | 6.2% | |||
Latin America | 7.4% | 6.9% | |||
Asia Pacific | 6.9% | 6.1% | |||
Total H.B. Fuller | 10.9% | 10.7% | |||
Net Revenue Growth: | |||||
North America | 10.1% | ||||
EIMEA | 17.0% | ||||
Latin America | 13.7% | ||||
Asia Pacific | 28.3% | ||||
Total H.B. Fuller | 14.9% | ||||
H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||
REGION FINANCIAL INFORMATION | |||||||||
(unaudited) | |||||||||
14 Weeks Ended December 3, 2011 | |||||||||
North America | EIMEA | Latin America | Asia Pacific | Total HBF | |||||
Price | 12.9% | 11.5% | 9.8% | 5.7% | 11.0% | ||||
Volume | 6.0% | 5.7% | 9.1% | 14.6% | 7.6% | ||||
Organic Growth | 18.9% | 17.2% | 18.9% | 20.3% | 18.6% | ||||
F/X | 0.2% | 6.0% | 0.0% | 6.1% | 2.6% | ||||
19.1% | 23.2% | 18.9% | 26.4% | 21.2% | |||||
53 Weeks Ended December 3, 2011 | |||||||||
North America | EIMEA | Latin America | Asia Pacific | Total HBF | |||||
Price | 9.6% | 11.1% | 10.7% | 4.5% | 9.7% | ||||
Volume | 0.1% | 0.6% | 3.0% | 8.0% | 1.7% | ||||
Organic Growth | 9.7% | 11.7% | 13.7% | 12.5% | 11.4% | ||||
F/X | 0.4% | 5.3% | 0.0% | 8.6% | 2.7% | ||||
Acquisition | 0.0% | 0.0% | 0.0% | 7.2% | 0.8% | ||||
10.1% | 17.0% | 13.7% | 28.3% | 14.9% | |||||
H.B. FULLER COMPANY AND SUBSIDIARIES | |||||
REGULATION G RECONCILIATION | |||||
In thousands (unaudited) | |||||
14 Weeks Ended | 13 Weeks Ended | ||||
December 3, 2011 | November 27, 2010 | ||||
Net revenue | $ | 436,526 | $ | 360,243 | |
Cost of sales | (310,913) | (258,123) | |||
Gross profit | 125,613 | 102,120 | |||
Selling, general and administrative expenses | (85,243) | (72,512) | |||
Operating Income(2) | 40,370 | 29,608 | |||
Depreciation expense | 8,430 | 7,969 | |||
Amortization expense | 2,607 | 2,514 | |||
EBITDA(3) | $ | 51,407 | $ | 40,091 | |
EBITDA Margin(3) | 11.8% | 11.1% | |||
53 Weeks Ended | 52 Weeks Ended | ||||
December 3, 2011 | November 27, 2010 | ||||
Net revenue | $ | 1,557,552 | $ | 1,356,161 | |
Cost of sales | (1,110,462) | (958,980) | |||
Gross profit | 447,090 | 397,181 | |||
Selling, general and administrative expenses | (318,046) | (292,836) | |||
Operating Income(2) | 129,044 | 104,345 | |||
Depreciation expense | 31,054 | 30,361 | |||
Amortization expense | 10,162 | 10,839 | |||
EBITDA(3) | $ | 170,260 | $ | 145,545 | |
EBITDA Margin(3) | 10.9% | 10.7% | |||
H.B. FULLER COMPANY AND SUBSIDIARIES | ||||||||
REGULATION G RECONCILIATION | ||||||||
In thousands, except per share amounts (unaudited) | ||||||||
Adjusted | ||||||||
14 Weeks Ended | 14 Weeks Ended | |||||||
December 3, 2011 | Adjustments | December 3, 2011 | ||||||
Net revenue | $ | 436,526 | $ | - | $ | 436,526 | ||
Cost of sales | (310,913) | - | (310,913) | |||||
Gross profit | 125,613 | - | 125,613 | |||||
Selling, general and administrative expenses | (85,243) | - | (85,243) | |||||
Special charges | (7,499) | (7,499) | - | |||||
Other income (expense), net | 2,779 | - | 2,779 | |||||
Interest expense | (2,895) | - | (2,895) | |||||
Income before income taxes and income from equity method investments | 32,755 | (7,499) | 40,254 | |||||
Income taxes | (8,734) | 1,747 | (10,481) | |||||
Income from equity method investments | 2,575 | - | 2,575 | |||||
Net income including non-controlling interests | 26,596 | (5,752) | 32,348 | |||||
Net (income) loss attributable to non-controlling interests | (188) | - | (188) | |||||
Net income attributable to H.B. Fuller | $ | 26,408 | $ | (5,752) | $ | 32,160 | ||
Basic income per common share attributable to H.B. Fuller | $ | 0.54 | $ | (0.12) | $ | 0.66 | ||
Diluted income per common share attributable to H.B. Fuller | $ | 0.53 | $ | (0.12) | $ | 0.65(1) | ||
Weighted-average common shares outstanding: | ||||||||
Basic | 48,937 | 48,937 | 48,937 | |||||
Diluted | 49,821 | 49,821 | 49,821 | |||||
H.B. FULLER COMPANY AND SUBSIDIARIES | ||||||||
REGULATION G RECONCILIATION | ||||||||
In thousands, except per share amounts (unaudited) | ||||||||
Adjusted | ||||||||
53 Weeks Ended | 53 Weeks Ended | |||||||
December 3, 2011 | Adjustments | December 3, 2011 | ||||||
Net revenue | $ | 1,557,552 | $ | - | $ | 1,557,552 | ||
Cost of sales | (1,110,462) | - | (1,110,462) | |||||
Gross profit | 447,090 | - | 447,090 | |||||
Selling, general and administrative expenses | (318,046) | - | (318,046) | |||||
Special charges | (7,499) | (7,499) | - | |||||
Asset impairment charges | (332) | - | (332) | |||||
Other income (expense), net | 4,590 | - | 4,590 | |||||
Interest expense | (10,811) | - | (10,811) | |||||
Income before income taxes and income from equity method investments | 114,992 | (7,499) | 122,491 | |||||
Income taxes | (34,951) | 1,747 | (36,698) | |||||
Income from equity method investments | 9,006 | - | 9,006 | |||||
Net income including non-controlling interests | 89,047 | (5,752) | 94,799 | |||||
Net (income) loss attributable to non-controlling interests | 58 | - | 58 | |||||
Net income attributable to H.B. Fuller | $ | 89,105 | $ | (5,752) | $ | 94,857 | ||
Basic income per common share attributable to H.B. Fuller | $ | 1.82 | $ | (0.12) | $ | 1.94 | ||
Diluted income per common share attributable to H.B. Fuller | $ | 1.79 | $ | (0.11) | $ | 1.90(1) | ||
Weighted-average common shares outstanding: | ||||||||
Basic | 48,991 | 48,991 | 48,991 | |||||
Diluted | 49,866 | 49,866 | 49,866 | |||||
H.B. FULLER COMPANY AND SUBSIDIARIES | ||||||||
REGULATION G RECONCILIATION | ||||||||
In thousands, except per share amounts (unaudited) | ||||||||
Adjusted | ||||||||
52 Weeks Ended | 52 Weeks Ended | |||||||
November 27, 2010 | Adjustments | November 27, 2010 | ||||||
Net revenue | $ | 1,356,161 | $ | - | $ | 1,356,161 | ||
Cost of sales | (958,980) | (1,831) | (957,149) | |||||
Gross profit | 397,181 | (1,831) | 399,012 | |||||
Selling, general and administrative expenses | (292,836) | (752) | (292,084) | |||||
Asset impairment charges | (8,785) | (8,785) | - | |||||
Other income (expense), net | 2,572 | - | 2,572 | |||||
Interest expense | (10,414) | - | (10,414) | |||||
Income before income taxes and income from equity method investments | 87,718 | (11,368) | 99,086 | |||||
Income taxes | (25,307) | 2,928 | (28,235) | |||||
Income from equity method investments | 8,008 | - | 8,008 | |||||
Net income including non-controlling interests | 70,419 | (8,440) | 78,859 | |||||
Net loss attributable to non-controlling interests | 458 | - | 458 | |||||
Net income attributable to H.B. Fuller | $ | 70,877 | $ | (8,440) | $ | 79,317 | ||
Basic income per common share attributable to H.B. Fuller | $ | 1.46 | $ | (0.17) | $ | 1.63 | ||
Diluted income per common share attributable to H.B. Fuller | $ | 1.43 | $ | (0.17) | $ | 1.60(1) | ||
Weighted-average common shares outstanding: | ||||||||
Basic | 48,599 | 48,599 | 48,599 | |||||
Diluted | 49,608 | 49,608 | 49,608 | |||||
(1) | Adjusted diluted earnings per share (EPS) is a non-GAAP financial measure. Fourth quarter 2011 excludes costs associated with two previously announced events: the EIMEA transformation initiative and the expenses associated with the pending acquisition of the Industrial Adhesives business from the Forbo Group. Together, these costs amounted to $7.5 million on a pre-tax basis ($0.12 per diluted share in Q4 2011 and $0.11 per diluted for the full year 2011). Second quarter 2010 excludes after-tax exit costs and non-cash impairment charges associated with the exit of the Company's European polysulfide-based insulating glass product line of $1.7 million ($0.03 per diluted share) and $6.7 million ($0.14 per diluted share) respectively. A full reconciliation is provided in the tables above. |
(2) | Operating income is defined as gross profit less SG&A expense. Items that are reported on the special charges and asset impairment lines of the income statement are excluded from the operating income calculation. In 2011 and 2010, these amounts totaled $7.5 million and $8.8 million, respectively. |
(3) | EBITDA is a non-GAAP financial measure defined on a consolidated basis as gross profit, less SG&A expense, plus depreciation expense, plus amortization expense. On a regional basis it is defined as operating income, plus depreciation expense, plus amortization expense. EBITDA margin is defined as EBITDA divided by net revenue. |
(4) | Operating Margin is a non-GAAP financial measure defined as gross profit, less SG&A expense, divided by net revenue. |
SOURCE H.B. Fuller Company
