Exhibit 99.1
H.B. Fuller Consolidated Financial Information (Restated for Pension Adjustment)
In thousands (unaudited)
Quarter Ended March 3, 2018 | | | | | | | | | | | | |
| | | Prior | | | Pension Adjustment | | | Recast | |
Cost of sales | | $ | (525,374 | ) | | $ | (2,192 | ) | | $ | (527,566 | ) |
Selling, general & administrative expense | | $ | (151,020 | ) | | $ | (1,687 | ) | | $ | (152,707 | ) |
Other income (expense), net | | $ | 1,033 | | | $ | 3,879 | | | $ | 4,912 | |
Net impact | | $ | (675,361 | ) | | $ | - | | | $ | (675,361 | ) |
Quarter Ended June 2, 2018 | | | | | | | | | | | | |
| | | Prior | | | Pension Adjustment | | | Recast | |
Cost of sales | | $ | (567,002 | ) | | $ | (2,199 | ) | | $ | (569,201 | ) |
Selling, general & administrative expense | | $ | (145,199 | ) | | $ | (1,690 | ) | | $ | (146,889 | ) |
Other income (expense), net | | $ | 3,850 | | | $ | 3,889 | | | $ | 7,739 | |
Net impact | | $ | (708,351 | ) | | $ | - | | | $ | (708,351 | ) |
Quarter Ended September 1, 2018 | | | | | | | | | | | | |
| | | Prior | | | Pension Adjustment | | | Recast | |
Cost of sales | | $ | (552,903 | ) | | $ | (2,174 | ) | | $ | (555,077 | ) |
Selling, general & administrative expense | | $ | (146,069 | ) | | $ | (1,670 | ) | | $ | (147,739 | ) |
Other income (expense), net | | $ | (1,375 | ) | | $ | 3,844 | | | $ | 2,469 | |
Net impact | | $ | (700,347 | ) | | $ | - | | | $ | (700,347 | ) |
Quarter Ended December 1, 2018 | | | | | | | | | | | | |
| | | Prior | | | Pension Adjustment | | | Recast | |
Cost of sales | | $ | (558,829 | ) | | $ | (2,171 | ) | | $ | (561,000 | ) |
Selling, general & administrative expense | | $ | (139,844 | ) | | $ | (3,088 | ) | | $ | (142,932 | ) |
Other income (expense), net | | $ | (2,324 | ) | | $ | 5,259 | | | $ | 2,935 | |
Net impact | | $ | (700,997 | ) | | $ | - | | | $ | (700,997 | ) |
Year Ended December 1, 2018 | | | | | | | | | | | | |
| | | Prior | | | Pension Adjustment | | | Recast | |
Cost of sales | | $ | (2,204,108 | ) | | $ | (8,736 | ) | | $ | (2,212,844 | ) |
Selling, general & administrative expense | | $ | (582,132 | ) | | $ | (8,135 | ) | | $ | (590,267 | ) |
Other income (expense), net | | $ | 1,184 | | | $ | 16,871 | | | $ | 18,055 | |
Net impact | | $ | (2,785,056 | ) | | $ | - | | | $ | (2,785,056 | ) |
H.B. Fuller Consolidated Financial Information (Restated for Pension Adjustment)
Regulation G Reconciliation
In thousands (unaudited)
| | | Quarter Ended | | | Quarter Ended | | | Quarter Ended | | | Quarter Ended | | | Year Ended | |
| | | March 3, 2018 | | | June 2, 2018 | | | September 1, 2018 | | | December 1, 2018 | | | December 1, 2018 | |
| | | | | | | | | | | | | | | | | | | | | |
Net revenue | | | 713,079 | | | | 789,387 | | | | 770,107 | | | | 768,429 | | | | 3,041,002 | |
| | | | | | | | | | | | | | | | | | | | | |
Gross profit | | $ | 185,513 | | | $ | 220,186 | | | $ | 215,030 | | | $ | 207,429 | | | $ | 828,158 | |
Gross profit margin | | | 26.0 | % | | | 27.9 | % | | | 27.9 | % | | | 27.0 | % | | | 27.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | |
Acquisition project costs | | | 103 | | | | 70 | | | | 1,823 | | | | 526 | | | | 2,522 | |
Organizational realignment | | | 231 | | | | 446 | | | | 621 | | | | 235 | | | | 1,533 | |
Royal restructuring and integration | | | 224 | | | | 603 | | | | 1,389 | | | | 2,810 | | | | 5,026 | |
Other | | | - | | | | - | | | | - | | | | 2,407 | | | | 2,407 | |
Adjusted gross profit 1 | | $ | 186,071 | | | $ | 221,305 | | | $ | 218,863 | | | $ | 213,407 | | | $ | 839,646 | |
Adjusted gross profit margin 1 | | | 26.1 | % | | | 28.0 | % | | | 28.4 | % | | | 27.8 | % | | | 27.6 | % |
1 Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin are defined as gross profit and gross profit margin excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted gross profit and gross profit margin to gross profit and gross profit margin, the most directly comparable financial measures determined and reported in accordance with GAAP.
| | | Quarter Ended | | | Quarter Ended | | | Quarter Ended | | | Quarter Ended | | | Year Ended | |
| | | March 3, 2018 | | | June 2, 2018 | | | September 1, 2018 | | | December 1, 2018 | | | December 1, 2018 | |
| | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | | (152,707 | ) | | | (146,889 | ) | | | (147,739 | ) | | | (142,932 | ) | | | (590,267 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | |
Acquisition project costs | | | 456 | | | | 379 | | | | 279 | | | | 323 | | | | 1,437 | |
Tonsan call option agreement | | | 48 | | | | (2,373 | ) | | | 2 | | | | 3,450 | | | | 1,127 | |
Organizational realignment | | | 179 | | | | 406 | | | | 413 | | | | 309 | | | | 1,307 | |
Royal restructuring and integration | | | 7,230 | | | | 5,925 | | | | 5,101 | | | | 5,114 | | | | 23,370 | |
Tax reform | | | - | | | | - | | | | - | | | | 305 | | | | 305 | |
Project ONE | | | 2,144 | | | | 1,558 | | | | 2,564 | | | | 601 | | | | 6,867 | |
Other | | | 6 | | | | 21 | | | | - | | | | 380 | | | | 407 | |
Adjusted selling, general and administrative expenses 2 | | $ | (142,644 | ) | | $ | (140,973 | ) | | $ | (139,380 | ) | | $ | (132,450 | ) | | $ | (555,447 | ) |
2 Adjusted selling, general and administrative expenses is a non-GAAP financial measure. Adjusted selling, general and administrative expense is defined as selling, general and administrative expenses excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted selling, general and administrative expenses to selling, general and administrative expenses, the most directly comparable financial measure determined and reported in accordance with GAAP.
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Fiscal year ended December 1, 20183
In thousands (unaudited)
| | | Quarter Ended March 3, 2018 | | | Quarter Ended
June 2, 2018 | | | Quarter Ended
September 1, 2018 | | | Quarter Ended
December 1, 2018 | | | Year Ended
December 1, 2018 | |
Net Revenue | | | | | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 250,963 | | | $ | 266,232 | | | $ | 268,736 | | | $ | 265,434 | | | $ | 1,051,365 | |
EIMEA | | $ | 168,978 | | | $ | 182,175 | | | $ | 171,505 | | | $ | 174,790 | | | $ | 697,448 | |
Asia Pacific | | $ | 66,609 | | | $ | 74,421 | | | $ | 65,960 | | | $ | 71,172 | | | $ | 278,162 | |
Construction Adhesives | | $ | 98,257 | | | $ | 122,891 | | | $ | 123,977 | | | $ | 106,921 | | | $ | 452,046 | |
Engineering Adhesives | | $ | 128,272 | | | $ | 143,668 | | | $ | 139,929 | | | $ | 150,112 | | | $ | 561,981 | |
Total H.B. Fuller | | $ | 713,079 | | | $ | 789,387 | | | $ | 770,107 | | | $ | 768,429 | | | $ | 3,041,002 | |
| | | | | | | | | | | | | | | | | | | | | |
Segment Operating Income | | | | | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 14,537 | | | $ | 26,782 | | | $ | 31,474 | | | $ | 26,173 | | | $ | 98,966 | |
EIMEA | | $ | 5,892 | | | $ | 10,623 | | | $ | 6,199 | | | $ | 6,875 | | | $ | 29,589 | |
Asia Pacific | | $ | 2,305 | | | $ | 5,023 | | | $ | 3,677 | | | $ | 6,737 | | | $ | 17,742 | |
Construction Adhesives | | $ | 461 | | | $ | 12,042 | | | $ | 11,907 | | | $ | 6,008 | | | $ | 30,418 | |
Engineering Adhesives | | $ | 9,611 | | | $ | 18,827 | | | $ | 14,034 | | | $ | 18,704 | | | $ | 61,176 | |
Total H.B. Fuller | | $ | 32,806 | | | $ | 73,297 | | | $ | 67,291 | | | $ | 64,497 | | | $ | 237,891 | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 29,639 | | | $ | 40,567 | | | $ | 47,437 | | | $ | 42,263 | | | $ | 159,907 | |
EIMEA | | $ | 16,259 | | | $ | 21,595 | | | $ | 16,597 | | | $ | 18,702 | | | $ | 73,153 | |
Asia Pacific | | $ | 5,287 | | | $ | 7,947 | | | $ | 6,572 | | | $ | 9,295 | | | $ | 29,101 | |
Construction Adhesives | | $ | 12,413 | | | $ | 23,369 | | | $ | 24,699 | | | $ | 17,980 | | | $ | 78,461 | |
Engineering Adhesives | | $ | 20,373 | | | $ | 26,389 | | | $ | 24,145 | | | $ | 32,516 | | | $ | 103,423 | |
Corporate Unallocated | | $ | 1,206 | | | $ | 2,868 | | | $ | 819 | | | $ | (185 | ) | | $ | 4,708 | |
Total H.B. Fuller | | $ | 85,177 | | | $ | 122,735 | | | $ | 120,269 | | | $ | 120,571 | | | $ | 448,753 | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA Margin | | | | | | | | | | | | | | | | | | | | |
Americas Adhesives | | | 11.8 | % | | | 15.2 | % | | | 17.7 | % | | | 15.9 | % | | | 15.2 | % |
EIMEA | | | 9.6 | % | | | 11.9 | % | | | 9.7 | % | | | 10.7 | % | | | 10.5 | % |
Asia Pacific | | | 7.9 | % | | | 10.7 | % | | | 10.0 | % | | | 13.1 | % | | | 10.5 | % |
Construction Adhesives | | | 12.6 | % | | | 19.0 | % | | | 19.9 | % | | | 16.8 | % | | | 17.4 | % |
Engineering Adhesives | | | 15.9 | % | | | 18.4 | % | | | 17.3 | % | | | 21.7 | % | | | 18.4 | % |
Total H.B. Fuller | | | 11.9 | % | | | 15.5 | % | | | 15.6 | % | | | 15.7 | % | | | 14.8 | % |
| | | | | | | | | | | | | | | | | | | | | |
3 Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization and the specific adjustments shown within the Regulation G reconciliations below. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue.
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Quarter ended March 3, 20183
In thousands (unaudited)
| | | Prior | | | Pension Adjustment | | | Customer Realignment Adjustment | | | Recast | |
Net Revenue | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 261,331 | | | $ | - | | | $ | (10,368 | ) | | $ | 250,963 | |
EIMEA | | $ | 178,583 | | | $ | - | | | $ | (9,605 | ) | | $ | 168,978 | |
Asia Pacific | | $ | 66,674 | | | $ | - | | | $ | (65 | ) | | $ | 66,609 | |
Construction Adhesives | | $ | 97,245 | | | $ | - | | | $ | 1,012 | | | $ | 98,257 | |
Engineering Adhesives | | $ | 109,246 | | | $ | - | | | $ | 19,026 | | | $ | 128,272 | |
Total H.B. Fuller | | $ | 713,079 | | | $ | - | | | $ | - | | | $ | 713,079 | |
| | | | | | | | | | | | | | | | | |
Segment Operating Income | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 17,511 | | | $ | (1,862 | ) | | $ | (1,112 | ) | | $ | 14,537 | |
EIMEA | | $ | 7,838 | | | $ | (966 | ) | | $ | (980 | ) | | $ | 5,892 | |
Asia Pacific | | $ | 2,322 | | | $ | (38 | ) | | $ | 21 | | | $ | 2,305 | |
Construction Adhesives | | $ | 1,265 | | | $ | (828 | ) | | $ | 24 | | | $ | 461 | |
Engineering Adhesives | | $ | 7,749 | | | $ | (185 | ) | | $ | 2,047 | | | $ | 9,611 | |
Total H.B. Fuller | | $ | 36,685 | | | $ | (3,879 | ) | | $ | - | | | $ | 32,806 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 31,747 | | | $ | - | | | $ | (2,108 | ) | | $ | 29,639 | |
EIMEA | | $ | 18,401 | | | $ | - | | | $ | (2,142 | ) | | $ | 16,259 | |
Asia Pacific | | $ | 5,292 | | | $ | - | | | $ | (5 | ) | | $ | 5,287 | |
Construction Adhesives | | $ | 12,502 | | | $ | - | | | $ | (89 | ) | | $ | 12,413 | |
Engineering Adhesives | | $ | 16,029 | | | $ | - | | | $ | 4,344 | | | $ | 20,373 | |
Corporate Unallocated | | $ | 1,206 | | | $ | - | | | $ | - | | | $ | 1,206 | |
Total H.B. Fuller | | $ | 85,177 | | | $ | - | | | $ | - | | | $ | 85,177 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA Margin | | | | | | | | | | | | | | | | |
Americas Adhesives | | | 12.1 | % | | | | | | | | | | | 11.8 | % |
EIMEA | | | 10.3 | % | | | | | | | | | | | 9.6 | % |
Asia Pacific | | | 7.9 | % | | | | | | | | | | | 7.9 | % |
Construction Adhesives | | | 12.9 | % | | | | | | | | | | | 12.6 | % |
Engineering Adhesives | | | 14.7 | % | | | | | | | | | | | 15.9 | % |
Total H.B. Fuller | | | 11.9 | % | | | | | | | | | | | 11.9 | % |
| | | | | | | | | | | | | | | | | |
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Quarter ended June 2, 20183
In thousands (unaudited)
| | | Prior | | | Pension Adjustment | | | Customer Realignment Adjustment | | | Recast | |
Net Revenue | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 277,992 | | | $ | - | | | $ | (11,760 | ) | | $ | 266,232 | |
EIMEA | | $ | 193,427 | | | $ | - | | | $ | (11,252 | ) | | $ | 182,175 | |
Asia Pacific | | $ | 74,326 | | | $ | - | | | $ | 95 | | | $ | 74,421 | |
Construction Adhesives | | $ | 121,795 | | | $ | - | | | $ | 1,096 | | | $ | 122,891 | |
Engineering Adhesives | | $ | 121,847 | | | $ | - | | | $ | 21,821 | | | $ | 143,668 | |
Total H.B. Fuller | | $ | 789,387 | | | $ | - | | | $ | - | | | $ | 789,387 | |
| | | | | | | | | | | | | | | | | |
Segment Operating Income | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 32,607 | | | $ | (1,863 | ) | | $ | (3,962 | ) | | $ | 26,782 | |
EIMEA | | $ | 14,040 | | | $ | (976 | ) | | $ | (2,441 | ) | | $ | 10,623 | |
Asia Pacific | | $ | 5,040 | | | $ | (38 | ) | | $ | 21 | | | $ | 5,023 | |
Construction Adhesives | | $ | 11,673 | | | $ | (827 | ) | | $ | 1,196 | | | $ | 12,042 | |
Engineering Adhesives | | $ | 13,826 | | | $ | (185 | ) | | $ | 5,186 | | | $ | 18,827 | |
Total H.B. Fuller | | $ | 77,186 | | | $ | (3,889 | ) | | $ | - | | | $ | 73,297 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 44,412 | | | $ | - | | | $ | (3,845 | ) | | $ | 40,567 | |
EIMEA | | $ | 24,995 | | | $ | - | | | $ | (3,400 | ) | | $ | 21,595 | |
Asia Pacific | | $ | 7,961 | | | $ | - | | | $ | (14 | ) | | $ | 7,947 | |
Construction Adhesives | | $ | 23,356 | | | $ | - | | | $ | 13 | | | $ | 23,369 | |
Engineering Adhesives | | $ | 19,143 | | | $ | - | | | $ | 7,246 | | | $ | 26,389 | |
Corporate Unallocated | | $ | 2,868 | | | $ | - | | | $ | - | | | $ | 2,868 | |
Total H.B. Fuller | | $ | 122,735 | | | $ | - | | | $ | - | | | $ | 122,735 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA Margin | | | | | | | | | | | | | | | | |
Americas Adhesives | | | 16.0 | % | | | | | | | | | | | 15.2 | % |
EIMEA | | | 12.9 | % | | | | | | | | | | | 11.9 | % |
Asia Pacific | | | 10.7 | % | | | | | | | | | | | 10.7 | % |
Construction Adhesives | | | 19.2 | % | | | | | | | | | | | 19.0 | % |
Engineering Adhesives | | | 15.7 | % | | | | | | | | | | | 18.4 | % |
Total H.B. Fuller | | | 15.5 | % | | | | | | | | | | | 15.5 | % |
| | | | | | | | | | | | | | | | | |
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Quarter ended September 1, 20183
In thousands (unaudited)
| | | Prior | | | Pension Adjustment | | | Customer Realignment Adjustment | | | Recast | |
Net Revenue | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 282,490 | | | $ | - | | | $ | (13,754 | ) | | $ | 268,736 | |
EIMEA | | $ | 182,020 | | | $ | - | | | $ | (10,515 | ) | | $ | 171,505 | |
Asia Pacific | | $ | 65,944 | | | $ | - | | | $ | 16 | | | $ | 65,960 | |
Construction Adhesives | | $ | 121,140 | | | $ | - | | | $ | 2,837 | | | $ | 123,977 | |
Engineering Adhesives | | $ | 118,513 | | | $ | - | | | $ | 21,416 | | | $ | 139,929 | |
Total H.B. Fuller | | $ | 770,107 | | | $ | - | | | $ | - | | | $ | 770,107 | |
| | | | | | | | | | | | | | | | | |
Segment Operating Income | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 34,816 | | | $ | (1,861 | ) | | $ | (1,481 | ) | | $ | 31,474 | |
EIMEA | | $ | 8,758 | | | $ | (933 | ) | | $ | (1,626 | ) | | $ | 6,199 | |
Asia Pacific | | $ | 3,694 | | | $ | (37 | ) | | $ | 20 | | | $ | 3,677 | |
Construction Adhesives | | $ | 12,767 | | | $ | (828 | ) | | $ | (32 | ) | | $ | 11,907 | |
Engineering Adhesives | | $ | 11,100 | | | $ | (185 | ) | | $ | 3,119 | | | $ | 14,034 | |
Total H.B. Fuller | | $ | 71,135 | | | $ | (3,844 | ) | | $ | - | | | $ | 67,291 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 50,964 | | | $ | - | | | $ | (3,527 | ) | | $ | 47,437 | |
EIMEA | | $ | 19,158 | | | $ | - | | | $ | (2,561 | ) | | $ | 16,597 | |
Asia Pacific | | $ | 6,580 | | | $ | - | | | $ | (8 | ) | | $ | 6,572 | |
Construction Adhesives | | $ | 23,516 | | | $ | - | | | $ | 1,183 | | | $ | 24,699 | |
Engineering Adhesives | | $ | 19,232 | | | $ | - | | | $ | 4,913 | | | $ | 24,145 | |
Corporate Unallocated | | $ | 819 | | | $ | - | | | $ | - | | | $ | 819 | |
Total H.B. Fuller | | $ | 120,269 | | | $ | - | | | $ | - | | | $ | 120,269 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA Margin | | | | | | | | | | | | | | | | |
Americas Adhesives | | | 18.0 | % | | | | | | | | | | | 17.7 | % |
EIMEA | | | 10.5 | % | | | | | | | | | | | 9.7 | % |
Asia Pacific | | | 10.0 | % | | | | | | | | | | | 10.0 | % |
Construction Adhesives | | | 19.4 | % | | | | | | | | | | | 19.9 | % |
Engineering Adhesives | | | 16.2 | % | | | | | | | | | | | 17.3 | % |
Total H.B. Fuller | | | 15.6 | % | | | | | | | | | | | 15.6 | % |
| | | | | | | | | | | | | | | | | |
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Quarter ended December 1, 20183
In thousands (unaudited)
| | | Prior | | | Pension Adjustment | | | Customer Realignment Adjustment | | | Recast | |
Net Revenue | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 278,105 | | | $ | - | | | $ | (12,671 | ) | | $ | 265,434 | |
EIMEA | | $ | 184,522 | | | $ | - | | | $ | (9,732 | ) | | $ | 174,790 | |
Asia Pacific | | $ | 71,135 | | | $ | - | | | $ | 37 | | | $ | 71,172 | |
Construction Adhesives | | $ | 105,922 | | | $ | - | | | $ | 999 | | | $ | 106,921 | |
Engineering Adhesives | | $ | 128,745 | | | $ | - | | | $ | 21,367 | | | $ | 150,112 | |
Total H.B. Fuller | | $ | 768,429 | | | $ | - | | | $ | - | | | $ | 768,429 | |
| | | | | | | | | | | | | | | | | |
Segment Operating Income | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 30,430 | | | $ | (2,403 | ) | | $ | (1,854 | ) | | $ | 26,173 | |
EIMEA | | $ | 9,424 | | | $ | (1,281 | ) | | $ | (1,268 | ) | | $ | 6,875 | |
Asia Pacific | | $ | 6,939 | | | $ | (208 | ) | | $ | 6 | | | $ | 6,737 | |
Construction Adhesives | | $ | 7,212 | | | $ | (1,006 | ) | | $ | (198 | ) | | $ | 6,008 | |
Engineering Adhesives | | $ | 15,751 | | | $ | (361 | ) | | $ | 3,314 | | | $ | 18,704 | |
Total H.B. Fuller | | $ | 69,756 | | | $ | (5,259 | ) | | $ | - | | | $ | 64,497 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 44,988 | | | $ | - | | | $ | (2,725 | ) | | $ | 42,263 | |
EIMEA | | $ | 20,937 | | | $ | - | | | $ | (2,235 | ) | | $ | 18,702 | |
Asia Pacific | | $ | 9,312 | | | $ | - | | | $ | (17 | ) | | $ | 9,295 | |
Construction Adhesives | | $ | 18,460 | | | $ | - | | | $ | (480 | ) | | $ | 17,980 | |
Engineering Adhesives | | $ | 27,059 | | | $ | - | | | $ | 5,457 | | | $ | 32,516 | |
Corporate Unallocated | | $ | (185 | ) | | $ | - | | | $ | - | | | $ | (185 | ) |
Total H.B. Fuller | | $ | 120,571 | | | $ | - | | | $ | - | | | $ | 120,571 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA Margin | | | | | | | | | | | | | | | | |
Americas Adhesives | | | 16.2 | % | | | | | | | | | | | 15.9 | % |
EIMEA | | | 11.3 | % | | | | | | | | | | | 10.7 | % |
Asia Pacific | | | 13.1 | % | | | | | | | | | | | 13.1 | % |
Construction Adhesives | | | 17.4 | % | | | | | | | | | | | 16.8 | % |
Engineering Adhesives | | | 21.0 | % | | | | | | | | | | | 21.7 | % |
Total H.B. Fuller | | | 15.7 | % | | | | | | | | | | | 15.7 | % |
| | | | | | | | | | | | | | | | | |
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Fiscal year ended December 1, 20183
In thousands (unaudited)
| | | Prior | | | Pension Adjustment | | | Customer Realignment Adjustment | | | Recast | |
Net Revenue | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 1,099,918 | | | $ | - | | | $ | (48,553 | ) | | $ | 1,051,365 | |
EIMEA | | $ | 738,553 | | | $ | - | | | $ | (41,105 | ) | | $ | 697,448 | |
Asia Pacific | | $ | 278,079 | | | $ | - | | | $ | 83 | | | $ | 278,162 | |
Construction Adhesives | | $ | 446,101 | | | $ | - | | | $ | 5,945 | | | $ | 452,046 | |
Engineering Adhesives | | $ | 478,351 | | | $ | - | | | $ | 83,630 | | | $ | 561,981 | |
Total H.B. Fuller | | $ | 3,041,002 | | | $ | - | | | $ | - | | | $ | 3,041,002 | |
| | | | | | | | | | | | | | | | | |
Segment Operating Income | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 115,363 | | | $ | (7,989 | ) | | $ | (8,408 | ) | | $ | 98,966 | |
EIMEA | | $ | 40,060 | | | $ | (4,156 | ) | | $ | (6,315 | ) | | $ | 29,589 | |
Asia Pacific | | $ | 17,995 | | | $ | (321 | ) | | $ | 68 | | | $ | 17,742 | |
Construction Adhesives | | $ | 32,917 | | | $ | (3,489 | ) | | $ | 990 | | | $ | 30,418 | |
Engineering Adhesives | | $ | 48,427 | | | $ | (916 | ) | | $ | 13,665 | | | $ | 61,176 | |
Total H.B. Fuller | | $ | 254,762 | | | $ | (16,871 | ) | | $ | - | | | $ | 237,891 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | |
Americas Adhesives | | $ | 172,112 | | | $ | - | | | $ | (12,205 | ) | | $ | 159,907 | |
EIMEA | | $ | 83,491 | | | $ | - | | | $ | (10,338 | ) | | $ | 73,153 | |
Asia Pacific | | $ | 29,145 | | | $ | - | | | $ | (44 | ) | | $ | 29,101 | |
Construction Adhesives | | $ | 77,834 | | | $ | - | | | $ | 627 | | | $ | 78,461 | |
Engineering Adhesives | | $ | 81,463 | | | $ | - | | | $ | 21,960 | | | $ | 103,423 | |
Corporate Unallocated | | $ | 4,708 | | | $ | - | | | $ | - | | | $ | 4,708 | |
Total H.B. Fuller | | $ | 448,753 | | | $ | - | | | $ | - | | | $ | 448,753 | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA Margin | | | | | | | | | | | | | | | | |
Americas Adhesives | | | 15.6 | % | | | | | | | | | | | 15.2 | % |
EIMEA | | | 11.3 | % | | | | | | | | | | | 10.5 | % |
Asia Pacific | | | 10.5 | % | | | | | | | | | | | 10.5 | % |
Construction Adhesives | | | 17.4 | % | | | | | | | | | | | 17.4 | % |
Engineering Adhesives | | | 17.0 | % | | | | | | | | | | | 18.4 | % |
Total H.B. Fuller | | | 14.8 | % | | | | | | | | | | | 14.8 | % |
| | | | | | | | | | | | | | | | | |
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Regulation G Reconciliation
In thousands (unaudited)
| | | Americas | | | | | | | Asia | | | Construction | | | Engineering | | | | | | | | | | | H.B. Fuller | |
| | | Adhesives | | | EIMEA | | | Pacific | | | Adhesives | | | Adhesives | | | Total | | | Unallocated | | | Consolidated | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quarter Ended March 3, 2018 | | $ | 16,399 | | | $ | 6,858 | | | $ | 2,343 | | | $ | 1,289 | | | $ | 9,796 | | | $ | 36,685 | | | $ | 10,997 | | | $ | 47,682 | |
Net income attributable to H.B. Fuller | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition project costs | | | 492 | | | | 12 | | | | 7 | | | | 6 | | | | 42 | | | | 559 | | | | (184 | ) | | | 375 | |
Tonsan call option agreement | | | - | | | | - | | | | - | | | | - | | | | 48 | | | | 48 | | | | 77 | | | | 125 | |
Organizational realignment | | | 126 | | | | 62 | | | | 3 | | | | 215 | | | | 4 | | | | 410 | | | | 338 | | | | 748 | |
Royal Restructuring | | | 2,942 | | | | 1,561 | | | | 525 | | | | 1,317 | | | | 1,109 | | | | 7,454 | | | | (2,526 | ) | | | 4,928 | |
Tax Reform | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (35,186 | ) | | | (35,186 | ) |
Project ONE | | | 843 | | | | 528 | | | | 248 | | | | 253 | | | | 272 | | | | 2,144 | | | | (750 | ) | | | 1,394 | |
Other | | | 2 | | | | 1 | | | | 1 | | | | 1 | | | | 1 | | | | 6 | | | | (1,719 | ) | | | (1,713 | ) |
Adjusted net income attributable to H.B. Fuller | | | 20,804 | | | | 9,022 | | | | 3,127 | | | | 3,081 | | | | 11,272 | | | | 47,306 | | | | (28,953 | ) | | | 18,353 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Add: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 27,468 | | | | 27,468 | |
Interest income | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (3,042 | ) | | | (3,042 | ) |
Income taxes | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 5,733 | | | | 5,733 | |
Depreciation and amorization expense | | | 8,835 | | | | 7,237 | | | | 2,160 | | | | 9,332 | | | | 9,101 | | | | 36,665 | | | | - | | | | 36,665 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 29,639 | | | $ | 16,259 | | | $ | 5,287 | | | $ | 12,413 | | | $ | 20,373 | | | $ | 83,971 | | | $ | 1,206 | | | $ | 85,177 | |
| | | Americas | | | | | | | Asia | | | Construction | | | Engineering | | | | | | | Corporate | | | H.B. Fuller | |
| | | Adhesives | | | EIMEA | | | Pacific | | | Adhesives | | | Adhesives | | | Total | | | Unallocated | | | Consolidated | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quarter Ended June 2, 2018 | | $ | 28,645 | | | $ | 11,599 | | | $ | 5,061 | | | $ | 12,869 | | | $ | 19,012 | | | $ | 77,186 | | | $ | (32,735 | ) | | $ | 44,451 | |
Net income attributable to H.B. Fuller | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition project costs | | | 354 | | | | 34 | | | | 16 | | | | 16 | | | | 29 | | | | 449 | | | | (152 | ) | | | 297 | |
Tonsan call option agreement | | | - | | | | - | | | | - | | | | - | | | | (2,373 | ) | | | (2,373 | ) | | | 79 | | | | (2,294 | ) |
Organizational realignment | | | 54 | | | | 656 | | | | (1 | ) | | | 145 | | | | (1 | ) | | | 853 | | | | (117 | ) | | | 736 | |
Royal restructuring and integration | | | 2,202 | | | | 1,711 | | | | 540 | | | | 1,149 | | | | 926 | | | | 6,528 | | | | (2,194 | ) | | | 4,334 | |
Tax reform | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (151 | ) | | | (151 | ) |
Project ONE | | | 613 | | | | 383 | | | | 181 | | | | 183 | | | | 198 | | | | 1,558 | | | | (545 | ) | | | 1,013 | |
Other | | | 18 | | | | - | | | | - | | | | - | | | | - | | | | 18 | | | | (2,026 | ) | | | (2,008 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted net income attributable to H.B. Fuller | | | 31,886 | | | | 14,383 | | | | 5,797 | | | | 14,362 | | | | 17,791 | | | | 84,219 | | | | (37,841 | ) | | | 46,378 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Add: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 27,938 | | | | 27,938 | |
Interest income | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (2,794 | ) | | | (2,794 | ) |
Income taxes | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 15,565 | | | | 15,565 | |
Depreciation and amortization expense | | | 8,681 | | | | 7,212 | | | | 2,150 | | | | 9,007 | | | | 8,598 | | | | 35,648 | | | | - | | | | 35,648 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 40,567 | | | $ | 21,595 | | | $ | 7,947 | | | $ | 23,369 | | | $ | 26,389 | | | $ | 119,867 | | | $ | 2,868 | | | $ | 122,735 | |
Note: Adjusted net income attributable to H.B. Fuller and adjusted EBITDA are non-GAAP financial measures. The tables above provide a reconciliation of adjusted net income attributable to H.B. Fuller and adjusted EBITDA to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with GAAP. Figures may not tie due to rounding.
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Regulation G Reconciliation
In thousands (unaudited)
| | | Americas | | | | | | | Asia | | | Construction | | | Engineering | | | | | | | Corporate | | | H.B. Fuller | |
| | | Adhesives | | | EIMEA | | | Pacific | | | Adhesives | | | Adhesives | | | Total | | | Unallocated | | | Consolidated | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quarter Ended September 1, 2018 | | $ | 33,335 | | | $ | 7,132 | | | $ | 3,714 | | | $ | 12,735 | | | $ | 14,219 | | | $ | 71,135 | | | $ | (33,405 | ) | | $ | 37,730 | |
Net income attributable to H.B. Fuller | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition project costs | | | 2,037 | | | | 26 | | | | 12 | | | | 13 | | | | 13 | | | | 2,101 | | | | (556 | ) | | | 1,545 | |
Tonsan call option agreement | | | - | | | | - | | | | - | | | | - | | | | 2 | | | | 2 | | | | 108 | | | | 110 | |
Organizational realignment | | | 8 | | | | 623 | | | | 2 | | | | 399 | | | | 2 | | | | 1,034 | | | | (151 | ) | | | 883 | |
Royal restructuring and integration | | | 2,171 | | | | 1,272 | | | | 418 | | | | 1,871 | | | | 759 | | | | 6,491 | | | | (1,331 | ) | | | 5,160 | |
Tax reform | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (802 | ) | | | (802 | ) |
Project ONE | | | 1,008 | | | | 631 | | | | 298 | | | | 302 | | | | 325 | | | | 2,564 | | | | (642 | ) | | | 1,922 | |
Other | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (1,882 | ) | | | (1,882 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted net income attributable to H.B. Fuller | | | 38,559 | | | | 9,684 | | | | 4,444 | | | | 15,320 | | | | 15,320 | | | | 83,327 | | | | (38,661 | ) | | | 44,666 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Add: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 27,750 | | | | 27,750 | |
Interest income | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (2,934 | ) | | | (2,934 | ) |
Income taxes | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 14,664 | | | | 14,664 | |
Depreciation and amortization expense | | | 8,878 | | | | 6,913 | | | | 2,128 | | | | 9,379 | | | | 8,825 | | | | 36,123 | | | | - | | | | 36,123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 47,437 | | | $ | 16,597 | | | $ | 6,572 | | | $ | 24,699 | | | $ | 24,145 | | | $ | 119,450 | | | $ | 819 | | | $ | 120,269 | |
| | | Americas | | | | | | | Asia | | | Construction | | | Engineering | | | | | | | Corporate | | | H.B. Fuller | |
| | | Adhesives | | | EIMEA | | | Pacific | | | Adhesives | | | Adhesives | | | Total | | | Unallocated | | | Consolidated | |
Quarter Ended December 1, 2018 | | $ | 28,576 | | | $ | 8,153 | | | $ | 6,945 | | | $ | 7,015 | | | $ | 19,067 | | | $ | 69,756 | | | $ | (28,411 | ) | | $ | 41,345 | |
Net income attributable to H.B. Fuller | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition project costs | | | 796 | | | | 22 | | | | 10 | | | | 10 | | | | 11 | | | | 849 | | | | (233 | ) | | | 616 | |
Tonsan call option agreement | | | - | | | | - | | | | - | | | | - | | | | 3,449 | | | | 3,449 | | | | 106 | | | | 3,555 | |
Organizational realignment | | | 12 | | | | 361 | | | | 4 | | | | 163 | | | | 4 | | | | 544 | | | | (75 | ) | | | 469 | |
Royal restructuring and integration | | | 1,688 | | | | 3,053 | | | | 391 | | | | 1,506 | | | | 1,287 | | | | 7,925 | | | | (1,995 | ) | | | 5,930 | |
Tax reform | | | 120 | | | | 75 | | | | 35 | | | | 36 | | | | 39 | | | | 305 | | | | (7,443 | ) | | | (7,138 | ) |
Project ONE | | | 236 | | | | 148 | | | | 70 | | | | 71 | | | | 76 | | | | 601 | | | | (150 | ) | | | 451 | |
Other | | | 1,796 | | | | (8 | ) | | | (169 | ) | | | (77 | ) | | | (179 | ) | | | 1,363 | | | | (27 | ) | | | 1,336 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted net income attributable to H.B. Fuller | | | 33,224 | | | | 11,804 | | | | 7,286 | | | | 8,724 | | | | 23,754 | | | | 84,792 | | | | (38,228 | ) | | | 46,564 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Add: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 27,468 | | | | 27,468 | |
Interest income | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (3,005 | ) | | | (3,005 | ) |
Income taxes | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 13,580 | | | | 13,580 | |
Depreciation and amortization expense | | | 9,039 | | | | 6,898 | | | | 2,009 | | | | 9,256 | | | | 8,762 | | | | 35,964 | | | | - | | | | 35,964 | |
Adjusted EBITDA | | $ | 42,263 | | | $ | 18,702 | | | $ | 9,295 | | | $ | 17,980 | | | $ | 32,516 | | | $ | 120,756 | | | $ | (185 | ) | | $ | 120,571 | |
Note: Adjusted net income attributable to H.B. Fuller and adjusted EBITDA are non-GAAP financial measures. The tables above provide a reconciliation of adjusted net income attributable to H.B. Fuller and adjusted EBITDA to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with GAAP. Figures may not tie due to rounding.
H.B. Fuller Segment Financial Information (Restated for Pension Adjustment and Customer Realignment)
Regulation G Reconciliation
In thousands (unaudited)
| | | Americas | | | | | | | Asia | | | Construction | | | Engineering | | | | | | | Corporate | | | H.B. Fuller | |
| | | Adhesives | | | EIMEA | | | Pacific | | | Adhesives | | | Adhesives | | | Total | | | Unallocated | | | Consolidated | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended December 1, 2018 | | $ | 106,955 | | | $ | 33,742 | | | $ | 18,063 | | | $ | 33,908 | | | $ | 62,094 | | | $ | 254,762 | | | $ | (83,554 | ) | | $ | 171,208 | |
Net income attributable to H.B. Fuller | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition project costs | | | 3,679 | | | | 94 | | | | 45 | | | | 45 | | | | 95 | | | | 3,958 | | | | (1,125 | ) | | | 2,833 | |
Tonsan call option agreement | | | - | | | | - | | | | - | | | | - | | | | 1,126 | | | | 1,126 | | | | 370 | | | | 1,496 | |
Organizational realignment | | | 200 | | | | 1,702 | | | | 8 | | | | 922 | | | | 9 | | | | 2,841 | | | | (5 | ) | | | 2,836 | |
Royal restructuring and integration | | | 9,002 | | | | 7,597 | | | | 1,874 | | | | 5,843 | | | | 4,081 | | | | 28,397 | | | | (8,046 | ) | | | 20,351 | |
Tax reform | | | 121 | | | | 75 | | | | 35 | | | | 36 | | | | 39 | | | | 306 | | | | (43,582 | ) | | | (43,276 | ) |
Project ONE | | | 2,700 | | | | 1,690 | | | | 797 | | | | 809 | | | | 871 | | | | 6,867 | | | | (2,087 | ) | | | 4,780 | |
Other | | | 1,817 | | | | (7 | ) | | | (168 | ) | | | (76 | ) | | | (178 | ) | | | 1,388 | | | | (5,654 | ) | | | (4,266 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted net income attributable to H.B. Fuller | | | 124,474 | | | | 44,893 | | | | 20,654 | | | | 41,487 | | | | 68,137 | | | | 299,645 | | | | (143,683 | ) | | | 155,962 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Add: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 110,624 | | | | 110,624 | |
Interest income | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (11,774 | ) | | | (11,774 | ) |
Income taxes | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 49,541 | | | | 49,541 | |
Depreciation and amortization expense | | | 35,433 | | | | 28,260 | | | | 8,447 | | | | 36,974 | | | | 35,286 | | | | 144,400 | | | | - | | | | 144,400 | |
Adjusted EBITDA | | $ | 159,907 | | | $ | 73,153 | | | $ | 29,101 | | | $ | 78,461 | | | $ | 103,423 | | | $ | 444,045 | | | $ | 4,708 | | | $ | 448,753 | |
Note: Adjusted net income attributable to H.B. Fuller and adjusted EBITDA are non-GAAP financial measures. The table above provides a reconciliation of adjusted net income attributable to H.B. Fuller and adjusted EBITDA to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with GAAP. Figures may not tie due to rounding.
11
