Highlights:
- Q4 2023 sales were $1.2 billion, an increase of 3 percent over Q4 2022. Organic sales excluding the impact of the non-reoccurring 53rd week and FX were $1.1 billion, a decrease of 3 percent versus Q4 2022
- Q4 2023 earnings per share (EPS) were $0.64, a decrease of 35 percent versus a year ago; EPS before charges / gains were $0.95, a decrease of 11 percent versus Q4 2022, reflecting the impact of one-time separation items and the 53rd week
- Full-year 2023 sales were $4.6 billion, a decrease of 2 percent over 2022. Organic sales excluding the impact of the non-reoccurring 53rd week and FX were $4.4 billion, a decrease of 6 percent versus full year 2022
- Full-year 2023 EPS were $3.17, a decrease of 23 percent versus 2022; EPS before charges / gains were $3.91, a decrease of 8 percent versus 2022, reflecting the impact of one-time separation items and the 53rd week
- Company announces new $650 million share repurchase authorization reflecting confidence in outlook and commitment to driving long-term shareholder value
- Company provides 2024 guidance prioritizing above-market sales performance, margin expansion and continued cash generation
DEERFIELD, Ill.–(BUSINESS WIRE)–#FBIN–Fortune Brands Innovations, Inc. (NYSE: FBIN or “Fortune Brands” or the “Company”), an industry leading innovation company focused on creating smarter, safer and more beautiful homes and lives, today announced fourth quarter and full-year 2023 results.
“Our results this year demonstrate our focus on generating sales above the market, preserving margins, and generating cash. Our teams delivered in the face of a challenging macro environment while also advancing several long-term initiatives and executing on our priorities,” said Fortune Brands Chief Executive Officer Nicholas Fink. “Over the past year, we have taken transformative actions toward better leveraging the strength of our aligned organization and sharpening our focus on our leading brands, meaningful innovation, and our advantaged channel relationships. These actions combined with our focus on the parts of the market with long-term outsized growth opportunities, give me confidence in our ability to perform in 2024 – and beyond.”
Fourth Quarter 2023 Results
($ in millions, except per share amounts; Change compared to prior year)
Unaudited
Q4 2023 Total Company Results
|
|
Reported Net Sales |
Operating Income |
Operating Margin |
EPS |
|
Q4 2023 GAAP |
$1,161 |
$134.0 |
11.5% |
$0.64 |
|
Change |
3% |
(26%) |
(460 bps) |
(35%) |
|
|
Reported Net Sales |
Operating Income Before Charges / Gains |
Operating Margin Before Charges / Gains |
EPS Before Charges / Gains |
|
Q4 2023 Non-GAAP |
$1,161 |
$183.6 |
15.8% |
$0.95 |
|
Change |
3% |
(6%) |
(150 bps) |
(11%) |
Q4 2023 Net Sales and Operating Margin Results
|
|
Net Sales |
Change |
Operating Margin |
Change |
Operating Margin Before Charges/Gains |
Change
|
||
|
Reported |
Organic excl. 53rd week and FX |
Reported |
Organic excl. 53rd week and FX
|
|||||
|
Water Innovations |
$663 |
$628 |
3% |
(2%) |
21.1% |
(260 bps) |
21.8% |
(220 bps) |
|
Outdoors |
$309 |
$313 |
(7%) |
(6%) |
2.4% |
(950 bps) |
13.9% |
10 bps |
|
Security |
$189 |
$163 |
20% |
4% |
13.0% |
(390 bps) |
17.2% |
20 bps |
|
Total FBIN |
$1,161 |
$1,104 |
3% |
(3%) |
11.5% |
(460 bps) |
15.8% |
(150 bps) |
Comments on the Fourth Quarter
Segment results were impacted by lower sales volumes and the non-reoccurring 53rd week. Water Innovations sales increased due to the Emtek acquisition. Security sales increased driven by the U.S. and Canadian Yale and August residential smart locks acquisition. Earnings per share year-over-year results were impacted by one-time items related to the Cabinets separation and the impact of the 53rd week.
Full-Year 2023 Results
($ in millions, except per share amounts; Change compared to prior year)
Unaudited
Full-Year 2023 Total Company Results
|
|
Reported Net Sales |
Operating Income |
Operating Margin |
EPS |
|
FY 2023 GAAP |
$4,626 |
$614.9 |
13.3% |
$3.17 |
|
Change |
(2%) |
(21%) |
(310 bps) |
(23%) |
|
|
Reported Net Sales |
Operating Income Before Charges / Gains |
Operating Margin Before Charges / Gains |
EPS Before Charges / Gains |
|
FY 2023 Non-GAAP |
$4,626 |
$738.0 |
16.0% |
$3.91 |
|
Change |
(2%) |
(9%) |
(110 bps) |
(8%) |
Full-Year 2023 Net Sales and Operating Margin Results
|
|
Net Sales |
Change |
Operating Margin |
Change |
Operating Margin Before Charges/Gains |
Change
|
||
|
Reported |
Organic excl. 53rd week and FX
|
Reported |
Organic excl. 53rd week and FX
|
|||||
|
Water Innovations |
$2,562 |
$2,446 |
0% |
(5%) |
22.4% |
(150 bps) |
22.7% |
(150 bps) |
|
Outdoors |
$1,341 |
$1,345 |
(12%) |
(11%) |
10.0% |
(280 bps) |
13.0% |
(120 bps) |
|
Security |
$723 |
$652 |
14% |
3% |
8.6% |
(640 bps) |
16.0% |
90 bps |
|
Total FBIN |
$4,626 |
$4,442 |
(2%) |
(6%) |
13.3% |
(310 bps) |
16.0% |
(110 bps) |
Comments on the Full Year
Segment results were impacted by lower volumes. Sales results in Water Innovations and Security were partially offset by the impact of the recent acquisition. Full-year operating margins were impacted by first half inventory actions, particularly in Water Innovations and Outdoors. Earnings per share year-over-year results were impacted by one-time items related to the Cabinets separation and the impact of the 53rd week.
Balance Sheet and Cash Flow
The Company exited the year with a strong balance sheet, closing with $1.1 billion in operating cash flow and $799 million in free cash flow. Due to its continued strong cash flow, the Company repurchased $20 million of shares in the quarter, bringing the full year total to $150 million. The Company finished the year with full availability on its revolver and continues to de-lever from its recent transformative acquisition.
As of the end of the fourth quarter 2023:
|
Net debt |
$2.3 billion |
|
Net debt to EBITDA before charges / gains |
2.5x |
|
Cash |
$366 million |
|
Amount available under revolving credit facility |
$1.25 billion |
Share Repurchase Authorization
The Company announced that on January 29, 2024, its Board of Directors authorized the repurchase of up to $650 million of shares of the Company’s outstanding common stock over the next two years on the open market or in privately negotiated transactions or otherwise (including pursuant to a Rule 10b5-1 trading plan, block trades and accelerated share repurchase transactions), in accordance with applicable securities laws. The $650 million share repurchase authorization announced today is in addition to the $435 million remaining from an existing authorization which expires on March 1, 2024.
The new purchases, if made, will occur from time to time depending on market conditions. The newly announced share repurchase authorization does not obligate the Company to repurchase any dollar amount or number of shares of common stock. This authorization is in effect until January 29, 2026, and may be suspended or discontinued at any time.
2024 Market and Financial Guidance
“Our full year 2024 financial guidance reflects our expectation of outperformance as we execute our strategy of growing the core and accelerating connected products, and the defined pathway we see toward margin growth,” said Fortune Brands Chief Financial Officer David Barry. “As we position Fortune Brands for continued shareholder value creation, we will prioritize above-market sales growth opportunities, margin expansion and cash generation, while continuing to invest in key strategic priorities with a returns-focused view. The share repurchase authorization that we announced today reflects our continued confidence in the strength of our business and focus on long-term performance.”
2024 Full-Year Guidance
|
2024 Full-Year Guidance |
|
|
MARKET |
|
|
Global market |
-3% to 0% |
|
U.S. market |
-2% to 0% |
|
U.S. R&R |
-4% to -2% |
|
U.S. SFNC |
5% to 7% |
|
China market |
-9% to -7% |
|
TOTAL COMPANY FINANCIAL METRICS |
|
|
Net sales |
3.5% to 5.5% |
|
Net sales [organic] |
-1% to 1% |
|
Operating margin before charges / gains |
16.5% to 17.5% |
|
EPS before charges / gains |
$4.20 to $4.40 |
|
Cash flow from operations |
Around $720 million |
|
Free cash flow |
Around $520 million |
|
Cash conversion |
Around 100% |
|
SEGMENT FINANCIAL METRICS |
|
|
Water Innovations net sales |
3% to 5% |
|
Water Innovations net sales [organic] |
-2% to 0% |
|
Water Innovations operating margin before charges / gains |
24% to 24.5% |
|
Outdoors net sales |
1% to 3% |
|
Outdoors operating margin before charges / gains |
13.5% to 14.5% |
|
Security net sales |
10% to 12% |
|
Security net sales [organic] |
0% to 2% |
|
Security operating margin before charges / gains |
15.5% to 16.5% |
|
OTHER ITEMS |
|
|
Corporate expense |
$140 million to $145 million |
|
Interest expense |
$118 million to $120 million |
|
Other income / expense |
Around $5 million |
|
Tax rate |
23.25% to 23.5% |
|
Share count |
Around 127 million |
For certain forward-looking non-GAAP measures (as used in this press release, operating margin before charges / gains, EPS before charges / gains and cash conversion), the Company is unable to provide a reconciliation to the most comparable GAAP financial measure because the information needed to reconcile these measures is unavailable due to the inherent difficulty of forecasting the timing and / or amount of various items that have not yet occurred, including the high variability and low visibility with respect to gains and losses associated with our defined benefit plans, which are excluded from EPS before charges / gains and cash conversion, and restructuring and other charges, which are excluded from operating margin before charges / gains, EPS before charges / gains and cash conversion. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.
Conference Call Details
Today at 5:00 p.m. ET, Fortune Brands will host an investor conference call to discuss results. A live audio webcast of the conference call will be available on the Fortune Brands website at ir.fbin.com/upcoming-events. It is recommended that listeners log on at least 10 minutes prior to the start of the call. A recorded replay of the call will be made available on the Company’s website shortly after the call has ended.
About Fortune Brands Innovations
Fortune Brands Innovations, Inc. (NYSE: FBIN), headquartered in Deerfield, Ill., is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company’s growing portfolio of brands includes Moen, House of Rohl, Aqualisa, Emtek, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe, Yale and August. To learn more about FBIN, its brands and environmental, social and governance (ESG) commitments, visit www.FBIN.com.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains 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”). Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations for our business, operations, financial performance or financial condition in addition to statements regarding our expectations for the markets in which we operate, general business strategies, the market potential of our brands, trends in the housing market, the potential impact of costs, including material and labor costs, the potential impact of inflation, expected capital spending, expected pension contributions, the expected impact of acquisitions, dispositions and other strategic transactions, the anticipated impact of recently issued accounting standards on our financial statements, and other matters that are not historical in nature. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “outlook,” “positioned” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” “confident,” “opportunity” 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 current expectations, estimates, assumptions and projections of our management about our industry, business and future financial results, available at the time this press release is issued. 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: (i) our reliance on the North American and Chinese home improvement, repair and remodel and new home construction activity levels, (ii) the housing market, downward changes in the general economy, unfavorable interest rates or other business conditions, (iii) the competitive nature of consumer and trade brand businesses, (iv) our ability to execute on our strategic plans and the effectiveness of our strategies in the face of business competition, (v) our reliance on key customers and suppliers, including wholesale distributors and dealers and retailers, (vi) risks associated with our ability to improve organizational productivity and global supply chain efficiency and flexibility, (vii) risks associated with global commodity and energy availability and price volatility, as well as the possibility of sustained inflation, (viii) delays or outages in our information technology systems or computer networks, (ix) risks associated with doing business globally, including changes in trade-related tariffs and risks with uncertain trade environments, (x) risks associated with the disruption of operations, (xi) our inability to obtain raw materials and finished goods in a timely and cost-effective manner, (xii) risks associated with strategic acquisitions, divestitures and joint ventures, including difficulties integrating acquired companies and the inability to achieve the expected financial results and benefits of transactions, (xiii) impairments in the carrying value of goodwill or other acquired intangible assets, (xiv) risk of increases in our defined benefit-related costs and funding requirements, (xv) our ability to attract and retain qualified personnel and other labor constraints, (xvi) the effect of climate change and the impact of related changes in government regulations and consumer preferences, (xvii) risks associated with environmental, social and governance matters, (xviii) changes in government and industry regulatory standards, (xix) future tax law changes or the interpretation of existing tax laws, (xx) our ability to secure and protect our intellectual property rights, and (xxi) potential liabilities and costs from claims and litigation. These and other factors are discussed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022. We undertake no obligation to, and expressly disclaim any such obligation to, update or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or changes to future results over time or otherwise, except as required by law.
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, net debt, net debt to EBITDA before charges / gains, sales excluding the impact of acquisitions (organic sales), organic sales excluding the impact of the non-reoccurring 53rd week and FX, free cash flow and cash conversion. These non-GAAP 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 applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.
| FORTUNE BRANDS INNOVATIONS, INC. | |||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Thirteen Weeks Ended | Three Months Ended | Fifty-two Weeks Ended | Twelve Months Ended | ||||||||||||||||||||||||
| Net sales (GAAP) | December 30, 2023 | December 31, 2022 | $ Change | % Change | December 30, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
| Water |
$ |
663.0 |
|
$ |
641.5 |
|
$ |
21.5 |
|
3 |
|
$ |
2,562.2 |
|
$ |
2,570.2 |
|
$ |
(8.0 |
) |
– |
|
|||||
| Outdoors |
|
309.2 |
|
|
333.0 |
|
|
(23.8 |
) |
(7 |
) |
|
1,341.1 |
|
|
1,517.4 |
|
|
(176.3 |
) |
(12 |
) |
|||||
| Security |
|
189.1 |
|
|
157.4 |
|
|
31.7 |
|
20 |
|
|
722.9 |
|
|
635.4 |
|
|
87.5 |
|
14 |
|
|||||
| Total net sales |
$ |
1,161.3 |
|
$ |
1,131.9 |
|
$ |
29.4 |
|
3 |
|
$ |
4,626.2 |
|
$ |
4,723.0 |
|
$ |
(96.8 |
) |
(2 |
) |
|||||
| RECONCILIATIONS OF GAAP OPERATING INCOME TO OPERATING INCOME BEFORE CHARGES/GAINS | |||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Thirteen Weeks Ended | Three Months Ended | Fifty-two Weeks Ended | Twelve Months Ended | ||||||||||||||||||||||||
| December 30, 2023 | December 31, 2022 | $ Change | % Change | December 30, 2023 | December 31, 2022 | $ Change | % Change | ||||||||||||||||||||
| WATER | |||||||||||||||||||||||||||
| Operating income (GAAP) |
$ |
139.7 |
|
$ |
151.9 |
|
$ |
(12.2 |
) |
(8 |
) |
$ |
574.3 |
|
$ |
614.6 |
|
$ |
(40.3 |
) |
(7 |
) |
|||||
| Restructuring charges |
|
0.9 |
|
|
2.5 |
|
|
(1.6 |
) |
(64 |
) |
|
2.2 |
|
|
6.3 |
|
|
(4.1 |
) |
(65 |
) |
|||||
| Other charges/(gains) | |||||||||||||||||||||||||||
| Cost of products sold |
|
2.2 |
|
|
(0.1 |
) |
|
2.3 |
|
(2,300 |
) |
|
2.6 |
|
|
(0.2 |
) |
|
2.8 |
|
(1,400 |
) |
|||||
| Selling, general and administrative expenses |
|
– |
|
|
– |
|
|
– |
|
– |
|
|
– |
|
|
0.8 |
|
|
(0.8 |
) |
(100 |
) |
|||||
| Amortization of inventory step-up (f) |
|
1.5 |
|
|
– |
|
|
1.5 |
|
NM |
|
|
3.5 |
|
|
1.3 |
|
|
2.2 |
|
169 |
|
|||||
| Operating income before charges/gains (a) |
$ |
144.3 |
|
$ |
154.2 |
|
$ |
(9.9 |
) |
(6 |
) |
$ |
582.6 |
|
$ |
622.8 |
|
$ |
(40.2 |
) |
(6 |
) |
|||||
| OUTDOORS | |||||||||||||||||||||||||||
| Operating income (GAAP) |
$ |
7.3 |
|
$ |
39.6 |
|
$ |
(32.3 |
) |
(82 |
) |
$ |
133.5 |
|
$ |
194.2 |
|
$ |
(60.7 |
) |
(31 |
) |
|||||
| Restructuring charges |
|
1.2 |
|
|
6.1 |
|
|
(4.9 |
) |
(80 |
) |
|
4.3 |
|
|
24.5 |
|
|
(20.2 |
) |
(82 |
) |
|||||
| Other charges/(gains) | |||||||||||||||||||||||||||
| Cost of products sold |
|
0.3 |
|
|
– |
|
|
0.3 |
|
NM |
|
|
(0.1 |
) |
|
(5.4 |
) |
|
5.3 |
|
(98 |
) |
|||||
| Selling, general and administrative expenses |
|
– |
|
|
– |
|
|
– |
|
– |
|
|
0.1 |
|
|
0.2 |
|
|
(0.1 |
) |
(50 |
) |
|||||
| Solar compensation (e) |
|
0.6 |
|
|
0.3 |
|
|
0.3 |
|
100 |
|
|
2.7 |
|
|
2.1 |
|
|
0.6 |
|
29 |
|
|||||
| Asset impairment charges (g) |
|
33.5 |
|
|
– |
|
|
33.5 |
|
NM |
|
|
33.5 |
|
|
– |
|
|
33.5 |
|
NM |
|
|||||
| Operating income before charges/gains (a) |
|
42.9 |
|
|
46.0 |
|
$ |
(3.1 |
) |
(7 |
) |
|
174.0 |
|
|
215.6 |
|
$ |
(41.6 |
) |
(19 |
) |
|||||
| SECURITY | |||||||||||||||||||||||||||
| Operating income (GAAP) |
$ |
24.6 |
|
$ |
26.7 |
|
$ |
(2.1 |
) |
(8 |
) |
$ |
62.4 |
|
$ |
95.4 |
|
$ |
(33.0 |
) |
(35 |
) |
|||||
| Restructuring charges |
|
1.5 |
|
|
0.1 |
|
|
1.4 |
|
1,400 |
|
|
25.3 |
|
|
0.6 |
|
|
24.7 |
|
4,117 |
|
|||||
| Other charges/(gains) | |||||||||||||||||||||||||||
| Cost of products sold |
|
6.5 |
|
|
– |
|
|
6.5 |
|
NM |
|
|
19.2 |
|
|
– |
|
|
19.2 |
|
NM |
|
|||||
| Amortization of inventory step-up (f) |
|
– |
|
|
– |
|
|
– |
|
– |
|
|
8.9 |
|
|
– |
|
|
8.9 |
|
NM |
|
|||||
| Operating income before charges/gains (a) |
$ |
32.6 |
|
$ |
26.8 |
|
$ |
5.8 |
|
22 |
|
$ |
115.8 |
|
$ |
96.0 |
|
$ |
19.8 |
|
21 |
|
|||||
| CORPORATE | |||||||||||||||||||||||||||
| Corporate expense (GAAP) |
$ |
(37.6 |
) |
$ |
(35.9 |
) |
$ |
(1.7 |
) |
5 |
|
$ |
(155.3 |
) |
$ |
(129.9 |
) |
$ |
(25.4 |
) |
20 |
|
|||||
| Restructuring charges |
|
– |
|
|
1.5 |
|
|
(1.5 |
) |
(100 |
) |
|
0.7 |
|
|
1.0 |
|
|
(0.3 |
) |
(30 |
) |
|||||
| Other charges/(gains) |
|
– |
|
– |
|
||||||||||||||||||||||
| Selling, general and administrative expenses |
|
0.3 |
|
|
0.2 |
|
|
0.1 |
|
50 |
|
|
0.5 |
|
|
0.9 |
|
|
(0.4 |
) |
(44 |
) |
|||||
| ASSA transaction expenses (d) |
|
1.1 |
|
|
3.3 |
|
|
(2.2 |
) |
(67 |
) |
|
19.7 |
|
|
3.3 |
|
|
16.4 |
|
497 |
|
|||||
| General and administrative expenses before charges/gains (a) |
$ |
(36.2 |
) |
$ |
(30.9 |
) |
$ |
(5.3 |
) |
17 |
|
$ |
(134.4 |
) |
$ |
(124.7 |
) |
$ |
(9.7 |
) |
8 |
|
|||||
| TOTAL COMPANY | |||||||||||||||||||||||||||
| Operating income (GAAP) |
$ |
134.0 |
|
$ |
182.2 |
|
$ |
(48.2 |
) |
(26 |
) |
$ |
614.9 |
|
$ |
774.3 |
|
$ |
(159.4 |
) |
(21 |
) |
|||||
| Restructuring charges |
|
3.6 |
|
|
10.2 |
|
|
(6.6 |
) |
(65 |
) |
|
32.5 |
|
|
32.4 |
|
|
0.1 |
|
– |
|
|||||
| Other charges/(gains) | |||||||||||||||||||||||||||
| Cost of products sold |
|
9.0 |
|
|
(0.1 |
) |
|
9.1 |
|
(9,100 |
) |
|
21.7 |
|
|
(5.6 |
) |
|
27.3 |
|
(488 |
) |
|||||
| Selling, general and administrative expenses |
|
0.3 |
|
|
0.2 |
|
|
0.1 |
|
50 |
|
|
0.6 |
|
|
1.9 |
|
|
(1.3 |
) |
(68 |
) |
|||||
| Solar compensation (e) |
|
0.6 |
|
|
0.3 |
|
|
0.3 |
|
100 |
|
|
2.7 |
|
|
2.1 |
|
|
0.6 |
|
29 |
|
|||||
| ASSA transaction expenses (d) |
|
1.1 |
|
|
3.3 |
|
|
(2.2 |
) |
(67 |
) |
|
19.7 |
|
|
3.3 |
|
|
16.4 |
|
497 |
|
|||||
| Amortization of inventory step-up (f) |
|
1.5 |
|
|
– |
|
|
1.5 |
|
NM |
|
|
12.4 |
|
|
1.3 |
|
|
11.1 |
|
854 |
|
|||||
| Asset impairment charges (g) |
|
33.5 |
|
|
– |
|
|
33.5 |
|
NM |
|
|
33.5 |
|
|
– |
|
|
33.5 |
|
NM |
|
|||||
| Operating income before charges/gains (a) |
$ |
183.6 |
|
$ |
196.1 |
|
$ |
(12.5 |
) |
(6 |
) |
$ |
738.0 |
|
$ |
809.7 |
|
$ |
(71.7 |
) |
(9 |
) |
|||||
| NM – Not Meaningful | |||||||||||||||||||||||||||
| (a) (d) (e) (f) (g) For definitions of Non-GAAP measures, see Definitions of Terms page | |||||||||||||||||||||||||||
| FORTUNE BRANDS INNOVATIONS, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (GAAP) | |||||||
| (In millions) | |||||||
| (Unaudited) | |||||||
|
December 30, |
|
December 31, |
|||||
|
2023 |
|
2022 |
|||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents |
$ |
366.4 |
$ |
642.5 |
|||
| Accounts receivable, net |
|
534.2 |
|
521.8 |
|||
| Inventories |
|
941.3 |
|
1,021.3 |
|||
| Other current assets |
|
155.8 |
|
274.8 |
|||
| Total current assets |
|
1,997.7 |
|
2,460.4 |
|||
| Property, plant and equipment, net |
|
975.0 |
|
783.7 |
|||
| Goodwill |
|
1,906.8 |
|
1,640.7 |
|||
| Other intangible assets, net of accumulated amortization |
|
1,354.7 |
|
1,000.8 |
|||
| Other assets |
|
289.9 |
|
235.3 |
|||
| Total assets |
$ |
6,524.1 |
$ |
6,120.9 |
|||
| Liabilities and equity | |||||||
| Current liabilities | |||||||
| Short-term debt |
$ |
– |
$ |
599.2 |
|||
| Accounts payable |
|
531.4 |
|
421.6 |
|||
| Other current liabilities |
|
628.0 |
|
523.9 |
|||
| Total current liabilities |
|
1,159.4 |
|
1,544.7 |
|||
| Long-term debt |
|
2,670.1 |
|
2,074.3 |
|||
| Deferred income taxes |
|
111.3 |
|
136.9 |
|||
| Other non-current liabilities |
|
289.9 |
|
278.1 |
|||
| Total liabilities |
|
4,230.7 |
|
4,034.0 |
|||
| Stockholders’ equity |
|
2,293.4 |
|
2,086.9 |
|||
| Total equity |
|
2,293.4 |
|
2,086.9 |
|||
| Total liabilities and equity |
$ |
6,524.1 |
$ |
6,120.9 |
|||
| FORTUNE BRANDS INNOVATIONS, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| Fifty-two Weeks Ended | Twelve Months Ended | |||||||||||
| December 30, 2023 | December 31, 2022 | |||||||||||
| Operating activities | ||||||||||||
| Net income |
$ |
404.5 |
|
$ |
686.7 |
|
||||||
| Depreciation and amortization |
|
168.8 |
|
|
191.6 |
|
||||||
| Recognition of actuarial gains |
|
(0.5 |
) |
|
(1.2 |
) |
||||||
| Non-cash lease expense |
|
32.1 |
|
|
45.2 |
|
||||||
| Deferred taxes |
|
(26.1 |
) |
|
14.8 |
|
||||||
| Asset impairment charges |
|
33.5 |
|
|
46.4 |
|
||||||
| Other non-cash items |
|
37.3 |
|
|
57.3 |
|
||||||
| Changes in assets and liabilities, net |
|
406.2 |
|
|
(474.5 |
) |
||||||
| Net cash provided by operating activities |
$ |
1,055.8 |
|
$ |
566.3 |
|
||||||
| Investing activities | ||||||||||||
| Capital expenditures |
$ |
(256.5 |
) |
$ |
(246.1 |
) |
||||||
| Proceeds from the disposition of assets |
|
2.8 |
|
|
8.2 |
|
||||||
| Cost of acquisitions, net of cash acquired |
|
(784.1 |
) |
|
(217.6 |
) |
||||||
| Net cash used in investing activities |
$ |
(1,037.8 |
) |
$ |
(455.5 |
) |
||||||
| Financing activities | ||||||||||||
| Increase in debt, net |
$ |
(4.9 |
) |
$ |
(37.1 |
) |
||||||
| Proceeds from the exercise of stock options |
|
18.0 |
|
|
1.1 |
|
||||||
| Treasury stock purchases |
|
(150.0 |
) |
|
(580.1 |
) |
||||||
| Dividends to stockholders |
|
(116.8 |
) |
|
(145.6 |
) |
||||||
| Dividends received from MasterBrand |
|
– |
|
|
940.0 |
|
||||||
| Cash retained by MasterBrand at Spin-off |
|
– |
|
|
(56.3 |
) |
||||||
| Other items, net |
|
(17.6 |
) |
|
(49.5 |
) |
||||||
| Net cash (used in) provided by financing activities |
$ |
(271.3 |
) |
$ |
72.5 |
|
||||||
| Effect of foreign exchange rate changes on cash |
$ |
0.5 |
|
$ |
(11.1 |
) |
||||||
| Net (decrease) increase in cash and cash equivalents |
$ |
(252.8 |
) |
$ |
172.2 |
|
||||||
| Cash, cash equivalents and restricted cash* at beginning of period |
|
648.3 |
|
|
476.1 |
|
||||||
| Cash, cash equivalents and restricted cash* at end of period |
$ |
395.5 |
|
$ |
648.3 |
|
||||||
| FREE CASH FLOW | Fifty-two Weeks Ended | Twelve Months Ended | 2024 Full Year | |||||||||
| December 30, 2023 | December 31, 2022 | Estimate | ||||||||||
| Cash flow from operations (GAAP) |
$ |
1,055.8 |
|
$ |
566.3 |
|
$ |
715.0 |
||||
| Less: | ||||||||||||
| Capital expenditures |
|
256.5 |
|
|
246.1 |
|
$ |
195.0 |
||||
| Free cash flow** |
$ |
799.3 |
|
$ |
320.2 |
|
$ |
520.0 |
||||
| * Restricted cash of $26.9 million and $2.2 million is included in Other current assets and Other assets, respectively, as of December 30, 2023, and $2.1 million and $3.7 million is included in Other current assets and Other assets, respectively, as of December 31, 2022. | ||||||||||||
| ** Free cash flow is cash flow from operations calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) less capital expenditures. 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. | ||||||||||||
| The Consolidated Statements of Cash Flows and Free Cash Flow presented above include cash flows from continuing and discontinued operations. | ||||||||||||
Contacts
INVESTOR AND MEDIA CONTACT:
Leigh Avsec
847-484-4211
[email protected]
