![]() | News Release January 30,2007 Page 1 of 5 |
NEWELL RUBBERMAID REPORTS FOURTH QUARTER
AND FULL YEAR 2006 RESULTS
Solid Annual Sales Growth, Gross Margin Expansion and Cash Flow
Expected to Continue in 2007
Expected to Continue in 2007
ATLANTA, January 30, 2007– Newell Rubbermaid Inc. (NYSE: NWL) today reported fourth quarter and full year 2006 results, reflecting strong annual internal sales growth and gross margin expansion.
Full Year 2006 Results
Net sales for the twelve months ended December 31, 2006 grew 8.5 percent to $6.20 billion, compared to $5.72 billion in the prior year. Internal sales, which excludes the effect of the DYMO acquisition, increased 4.7 percent. The Home & Family segment posted double digit sales growth, while Office Products, Rubbermaid Home, Rubbermaid Commercial and the Irwin and Lenox branded businesses delivered mid single digit sales increases.
“2006 was a very successful year for Newell Rubbermaid. Through the hard work of our employees, we made tremendous progress generating sustainable sales growth, expanding gross margin and optimizing our portfolio,” said Mark Ketchum, president and chief executive officer of Newell Rubbermaid. “We will build on these accomplishments in 2007 as we continue our multi-year transformation into a global consumer products company with world class talent and processes, best total cost position and brands that matter to the consumer.”
Gross margin was 33.4 percent, a 260 basis point improvement over the prior year. The expansion reflects strong productivity, pricing and favorable mix, partially offset by raw material inflation.
Excluding Project Acceleration restructuring costs of $66.4 million in 2006 and $51.2 million in 2005, operating income improved $104.0 million to $723.0 million, a 16.8 percent increase over the prior year. Excluding charges, income from continuing operations was $518.9 million, or $1.88 per share, an 18.1 percent increase over the prior year’s result of $439.2 million, or $1.60 per share. Income from continuing operations in 2006 included one-time tax benefits of $102.8 million, or $0.36 per share, versus one-time tax and other benefits of $0.35 per share in the prior year.
Income from continuing operations, as reported, was $470.7 million, or $1.71 per share, compared to $406.3 million, or $1.48 per share, in the prior year. A reconciliation of the results “as reported” to results “excluding charges” is attached to this press release.
Net cash provided by operating activities was $643.4 million, compared to $641.6 million for the prior year. Capital expenditures were $138.3 million, compared to $92.2 million for the prior year. Dividends were $232.8 million, compared to $231.5 million for the prior year.
For the full year 2006, the company recorded a net loss from discontinued operations of $85.7 million, reflecting the results and disposal of the Home Décor Europe and Little Tikes businesses. This net loss is not included in the results of continuing operations reported above.
Fourth Quarter 2006 Results
Net sales for the fourth quarter ended December 31, 2006 rose 3.5 percent to $1.64 billion, compared to $1.58 billion in the prior year. Internal sales increased 0.9 percent in the fourth quarter 2006, led by high single digit growth in the Office Products and Home & Family
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
Esther Lippman
Senior Manager, Public Relations
Senior Manager, Public Relations
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
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![]() | News Release January 30,2007 Page 2 of 5 |
segments. In the fourth quarter 2006, we combined our Cleaning & Organization and Home Fashions segments for public reporting purposes, as these businesses sell to similar major customers, produce products that are used in and around the home and leverage the same management structure. This segment is known as Cleaning, Organization & Décor.
Gross margin for the fourth quarter 2006 improved to 32.9 percent, a 260 basis point improvement over the prior year. The expansion was driven by productivity, pricing and favorable mix.
Excluding Project Acceleration restructuring costs of $16.1 million in the fourth quarter 2006 and Project Acceleration restructuring costs of $51.2 million and the reversal of impairment charges of $5.8 million in the prior year, income from continuing operations was $104.2 million, or $0.38 per share, for the fourth quarter 2006, compared to the prior year’s result of $113.8 million, or $0.41 per share. Income from continuing operations in the fourth quarter 2006 includes the reversal of one-time tax benefits of $13.0 million, or $0.05 per share.
Income from continuing operations, as reported, was $92.3 million, or $0.33 per share, for the fourth quarter 2006, compared to $85.3 million, or $0.31 per share, in the prior year.
Net cash provided by operating activities was $239.1 million in the fourth quarter 2006, an increase of 25.6% over the prior year’s result of $190.3 million. Capital expenditures were $44.2 million, versus $22.3 million in the prior year. Dividends paid were $58.2 million, or $0.21 per share, versus $57.8 million in the prior year.
For the fourth quarter 2006, the company recorded a net gain from discontinued operations of $9.9 million, reflecting the results and disposal of the Home Décor Europe and Little Tikes businesses. This net gain is not included in the results of continuing operations reported above.
2007 Outlook
Full Year 2007
The company believes internal sales growth will be in the low to mid single digits, driven primarily by core sales growth and favorable currency. The company projects full year gross margin expansion of 125 to 175 basis points.
Excluding Project Acceleration restructuring costs of approximately $100 to $130 million ($85 to $110 million after tax), the company believes earnings per share from continuing operations will range from $1.69 to $1.75 for the full year. Net cash provided by operating activities is forecast between $575 and $625 million, including approximately $100 to $125 million in cash restructuring costs in connection with Project Acceleration. Upon completion, Project Acceleration is projected to deliver annualized savings in excess of $120 million. The company expects capital expenditures of $140 to $160 million and dividends of approximately $234 million.
A reconciliation of full year 2006 results and 2007 earnings outlook is as follows:
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
Esther Lippman
Senior Manager, Public Relations
Senior Manager, Public Relations
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
FY 2006 | FY 2007 | |||||||
Diluted earnings per share from continuing operations (as reported): | $1.71 | $1.35 - $1.41 | ||||||
Project Acceleration restructuring costs | $0.17 | $0.30 - $0.39 | ||||||
Diluted earnings per share from continuing operations (excluding charges): | $1.88 | $1.69 - $1.75 | ||||||
Tax benefits | ($0.36 | ) | $0.00 | |||||
“Normalized” EPS: | $1.52 | $1.69 - $1.75 |
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January 30,2007 | ||
Page 3 of 5 |
First Quarter 2007
The company believes internal sales will increase low single digits. Net cash provided by operating activities is forecast in the range of $(25) to $25 million and capital expenditures in the range of $35 to $45 million.
The company expects earnings per share from continuing operations for the first quarter 2007 to be in the range of $0.21 to $0.23, excluding approximately $20 to $40 million ($17 to $34 million after tax) of Project Acceleration restructuring costs.
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
Esther Lippman
Senior Manager, Public Relations
Senior Manager, Public Relations
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
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![]() | News Release January 30,2007 Page 4 of 5 |
A reconciliation of first quarter 2006 results and 2007 earnings outlook is as follows:
Q1 2006 | Q1 2007 | |||||||
Diluted earnings per share from continuing operations (as reported): | $0.47 | $0.12 - $0.14 | ||||||
Project Acceleration restructuring costs | $0.03 | $0.06 - $0.12 | ||||||
Diluted earnings per share from continuing operations (excluding charges): | $0.50 | $0.21 - $0.23 | ||||||
Tax benefits | ($0.28 | ) | $0.00 | |||||
“Normalized” EPS: | $0.22 | $0.21 - $0.23 |
Conference Call
The company’s fourth quarter 2006 earnings conference call is scheduled for today, January 30, 2007, at 9:00 a.m. ET. To listen to the webcast, use the link provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site atwww.newellrubbermaid.com. The webcast will be available for replay for two weeks. A brief supporting slide presentation will be available prior to the call under Quarterly Earnings in the Investor Relations section on the company’s Web site.
Analyst Day
The company will host its Analyst Day on February 13, 2007, in New York City. Those interested in attending should contact Newell Rubbermaid’s Investor Relations Department at (770) 407-3994 or via email at investor.relations@newellco.com to obtain registration instructions. The event will also be web cast and the link will be located on the Investor Relations section of the company’s Web site atwww.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
The statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of Project Acceleration, sales, income/(loss), earnings per share, operating income or gross margin improvements, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, debt ratings, and management’s plans, projections and objectives for future operations and performance. These statements are accompanied by words such as “expect,” “project,” “will,” “believes,” “estimate” and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail economies; competition with other manufacturers and distributors of consumer products; major retailers’ strong bargaining power; changes in the prices of raw materials; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to implement successfully information technology solutions throughout our
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
Esther Lippman
Senior Manager, Public Relations
Senior Manager, Public Relations
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
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![]() | News Release January 30,2007 Page 5 of 5 |
organization; our ability to improve productivity and streamline operations; the risks inherent in our foreign operations and those factors listed in the company’s most recent quarterly report on Form 10-Q, including Exhibit 99.1 thereto, filed with the Securities and Exchange Commission.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
About the Company
Newell Rubbermaid Inc. is a global marketer of consumer and commercial products with sales of approximately $6 billion and a strong portfolio of brands, including Sharpie®, Paper Mate®, DYMO®, EXPO®, Waterman®, Parker®, Rolodex®, IRWIN®, LENOX®, BernzOmatic®, Rubbermaid®, Graco®, Calphalon® and Goody®. The company is headquartered in Atlanta, Ga., and has approximately 23,500 employees worldwide.
This press release and additional information about the company are available on the company’s Web site www.newellrubbermaid.com.
NWL-EA
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
Esther Lippman
Senior Manager, Public Relations
Senior Manager, Public Relations
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
![(GRAPHICS)](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c1176401.gif)
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Reconciliation of Results “As Reported” to Results “Excluding Charges”
Three Months Ended December 31, | ||||||||||||||||||||||||||||
2006 | 2005 | YOY | ||||||||||||||||||||||||||
As Reported | Charges (1) | Excl. Charges | As Reported | Charges (2) | Excl. Charges | % Change | ||||||||||||||||||||||
Net sales | $ | 1,638.2 | $ | 1,638.2 | $ | 1,583.0 | $ | 1,583.0 | 3.5 | % | ||||||||||||||||||
Cost of products sold | 1,098.5 | — | 1,098.5 | 1,102.8 | — | 1,102.8 | ||||||||||||||||||||||
GROSS MARGIN | 539.7 | — | 539.7 | 480.2 | — | 480.2 | 12.4 | % | ||||||||||||||||||||
% of sales | 32.9 | % | 32.9 | % | 30.3 | % | 30.3 | % | ||||||||||||||||||||
Selling, general & administrative expenses | 356.7 | — | 356.7 | 307.3 | 307.3 | 16.1 | % | |||||||||||||||||||||
% of sales | 21.8 | % | 21.8 | % | 19.4 | % | 19.4 | % | ||||||||||||||||||||
Impairment charges | — | — | — | (5.8 | ) | 5.8 | — | |||||||||||||||||||||
Restructuring costs | 16.1 | (16.1 | ) | — | 51.2 | (51.2 | ) | — | ||||||||||||||||||||
OPERATING INCOME | 166.9 | 16.1 | 183.0 | 127.5 | 45.4 | 172.9 | 5.8 | % | ||||||||||||||||||||
% of sales | 10.2 | % | 11.2 | % | 8.1 | % | 10.9 | % | ||||||||||||||||||||
Nonoperating expenses: | ||||||||||||||||||||||||||||
Interest expense, net | 29.8 | — | 29.8 | 31.0 | — | 31.0 | ||||||||||||||||||||||
Other expense/(income) | 2.0 | — | 2.0 | (22.5 | ) | — | (22.5 | ) | ||||||||||||||||||||
31.8 | — | 31.8 | 8.5 | — | 8.5 | 274.1 | % | |||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 135.1 | 16.1 | 151.2 | 119.0 | 45.4 | 164.4 | (8.0 | )% | ||||||||||||||||||||
% of sales | 8.2 | % | 9.2 | % | 7.5 | % | 10.4 | % | ||||||||||||||||||||
Income taxes | 42.8 | 4.2 | 47.0 | 33.7 | 16.9 | 50.6 | (7.1 | )% | ||||||||||||||||||||
Effective rate | 31.7 | % | 31.1 | % | 28.3 | % | 30.8 | % | ||||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 92.3 | 11.9 | 104.2 | 85.3 | 28.5 | 113.8 | (8.4 | )% | ||||||||||||||||||||
% of sales | 5.6 | % | 6.4 | % | 5.4 | % | 7.2 | % | ||||||||||||||||||||
Discontinued operations, net of tax: | ||||||||||||||||||||||||||||
Net gain/(loss) | 9.9 | (9.9 | ) | — | (8.3 | ) | 8.3 | — | ||||||||||||||||||||
NET INCOME | $ | 102.2 | $ | 2.0 | $ | 104.2 | $ | 77.0 | $ | 36.8 | $ | 113.8 | (8.4 | )% | ||||||||||||||
% of sales | 6.2 | % | 6.4 | % | 4.9 | % | 7.2 | % | ||||||||||||||||||||
EARNINGS PER SHARE FROM CONTINUING OPERATIONS: | ||||||||||||||||||||||||||||
Basic | $ | 0.34 | $ | 0.04 | $ | 0.38 | $ | 0.31 | $ | 0.10 | $ | 0.41 | ||||||||||||||||
Diluted | $ | 0.33 | $ | 0.04 | $ | 0.38 | $ | 0.31 | $ | 0.10 | $ | 0.41 | ||||||||||||||||
GAIN/(LOSS) PER SHARE FROM DISCONTINUED OPERATIONS: | ||||||||||||||||||||||||||||
Basic | $ | 0.04 | $ | (0.04 | ) | $ | — | $ | (0.03 | ) | $ | 0.03 | $ | — | ||||||||||||||
Diluted | $ | 0.04 | $ | (0.04 | ) | $ | — | $ | (0.03 | ) | $ | 0.03 | $ | — | ||||||||||||||
EARNINGS PER SHARE: | ||||||||||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.01 | $ | 0.38 | $ | 0.28 | $ | 0.13 | $ | 0.41 | ||||||||||||||||
Diluted | $ | 0.37 | $ | 0.01 | $ | 0.38 | $ | 0.28 | $ | 0.13 | $ | 0.41 | ||||||||||||||||
Average shares outstanding: | ||||||||||||||||||||||||||||
Basic | 274.8 | 274.8 | 274.4 | 274.4 | ||||||||||||||||||||||||
Diluted | 275.9 | 275.9 | 274.9 | 274.9 |
(1) | Charges excluded from “as reported” results for 2006 consist of $16.1 million of Project Acceleration restructuring costs and a $9.9 million net gain related to discontinued operations. | |
(2) | Charges excluded from “as reported” results for 2005 consist of the reversal of $5.8 million in impairment charges, $51.2 million of Project Acceleration restructuring costs and an $8.3 million net loss related to discontinued operations. |
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Reconciliation of Results “As Reported” to Results “Excluding Charges”
Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
2006 | 2005 | YOY | ||||||||||||||||||||||||||
As Reported | Charges (1) | Excl. Charges | As Reported | Charges (2) | Excl. Charges | % Change | ||||||||||||||||||||||
Net sales | $ | 6,201.0 | $ | 6,201.0 | $ | 5,717.2 | $ | 5,717.2 | 8.5 | % | ||||||||||||||||||
Cost of products sold | 4,131.0 | — | 4,131.0 | 3,959.1 | — | 3,959.1 | ||||||||||||||||||||||
GROSS MARGIN | 2,070.0 | — | 2,070.0 | 1,758.1 | — | 1,758.1 | 17.7 | % | ||||||||||||||||||||
% of sales | 33.4 | % | 33.4 | % | 30.8 | % | 30.8 | % | ||||||||||||||||||||
Selling, general & administrative expenses | 1,347.0 | — | 1,347.0 | 1,117.7 | — | 1,117.7 | 20.5 | % | ||||||||||||||||||||
% of sales | 21.7 | % | 21.7 | % | 19.5 | % | 19.5 | % | ||||||||||||||||||||
Impairment charges | — | — | — | 0.4 | (0.4 | ) | — | |||||||||||||||||||||
Restructuring costs | 66.4 | (66.4 | ) | — | 72.6 | (51.2 | ) | 21.4 | ||||||||||||||||||||
OPERATING INCOME | 656.6 | 66.4 | 723.0 | 567.4 | 51.6 | 619.0 | 16.8 | % | ||||||||||||||||||||
% of sales | 10.6 | % | 11.7 | % | 9.9 | % | 10.8 | % | ||||||||||||||||||||
Nonoperating expenses: | ||||||||||||||||||||||||||||
Interest expense, net | 132.0 | — | 132.0 | 127.1 | — | 127.1 | ||||||||||||||||||||||
Other expense/(income) | 9.7 | — | 9.7 | (23.1 | ) | — | (23.1 | ) | ||||||||||||||||||||
141.7 | — | 141.7 | 104.0 | — | 104.0 | 36.3 | % | |||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 514.9 | 66.4 | 581.3 | 463.4 | 51.6 | 515.0 | 12.9 | % | ||||||||||||||||||||
% of sales | 8.3 | % | 9.4 | % | 8.1 | % | 9.0 | % | ||||||||||||||||||||
Income taxes | 44.2 | 18.2 | 62.4 | 57.1 | 18.7 | 75.8 | (17.7 | )% | ||||||||||||||||||||
Effective rate | 8.6 | % | 10.7 | % | 12.3 | % | 14.7 | % | ||||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 470.7 | 48.2 | 518.9 | 406.3 | 32.9 | 439.2 | 18.1 | % | ||||||||||||||||||||
% of sales | 7.6 | % | 8.4 | % | 7.1 | % | 7.7 | % | ||||||||||||||||||||
Discontinued operations, net of tax: | ||||||||||||||||||||||||||||
Net loss | (85.7 | ) | 85.7 | — | (155.0 | ) | 155.0 | — | ||||||||||||||||||||
NET INCOME | $ | 385.0 | $ | 133.9 | $ | 518.9 | $ | 251.3 | $ | 187.9 | $ | 439.2 | 18.1 | % | ||||||||||||||
% of sales | 6.2 | % | 8.4 | % | 4.4 | % | 7.7 | % | ||||||||||||||||||||
EARNINGS PER SHARE FROM CONTINUING OPERATIONS: | ||||||||||||||||||||||||||||
Basic | $ | 1.71 | $ | 0.18 | $ | 1.89 | $ | 1.48 | $ | 0.12 | $ | 1.60 | ||||||||||||||||
Diluted | $ | 1.71 | $ | 0.17 | $ | 1.88 | $ | 1.48 | $ | 0.12 | $ | 1.60 | ||||||||||||||||
LOSS PER SHARE FROM DISCONTINUED OPERATIONS: | ||||||||||||||||||||||||||||
Basic | $ | (0.31 | ) | $ | 0.31 | $ | — | $ | (0.56 | ) | $ | 0.56 | $ | — | ||||||||||||||
Diluted | $ | (0.31 | ) | $ | 0.31 | $ | — | $ | (0.56 | ) | $ | 0.56 | $ | — | ||||||||||||||
EARNINGS PER SHARE: | ||||||||||||||||||||||||||||
Basic | $ | 1.40 | $ | 0.49 | $ | 1.89 | $ | 0.92 | $ | 0.68 | $ | 1.60 | ||||||||||||||||
Diluted | $ | 1.40 | $ | 0.48 | $ | 1.88 | $ | 0.91 | $ | 0.68 | $ | 1.60 | ||||||||||||||||
Average shares outstanding: | ||||||||||||||||||||||||||||
Basic | 274.6 | 274.6 | 274.4 | 274.4 | ||||||||||||||||||||||||
Diluted | 275.5 | 283.8 | 274.9 | 274.9 |
(1) | Charges excluded from “as reported” results for 2006 consist of $66.4 million of Project Acceleration restructuring costs and an $85.7 million net loss related to discontinued operations. | |
(2) | Charges excluded from “as reported” results for 2005 consist of a $0.4 million impairment charge, $51.2 million of Project Acceleration restructuring costs and a $155.0 million net loss related to discontinued operations. |
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
December 31, | December 31, | |||||||
2006 | 2005 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 201.0 | $ | 115.5 | ||||
Accounts receivable, net | 1,113.6 | 1,107.7 | ||||||
Inventories, net | 850.6 | 793.8 | ||||||
Deferred income taxes | 110.1 | 109.8 | ||||||
Prepaid expenses and other | 133.5 | 103.2 | ||||||
Current assets of discontinued operations | 68.1 | 242.7 | ||||||
Total Current Assets | 2,476.9 | 2,472.7 | ||||||
Property, plant and equipment, net | 746.9 | 854.0 | ||||||
Deferred income taxes | 1.3 | 37.7 | ||||||
Goodwill | 2,435.7 | 2,304.4 | ||||||
Other intangible assets, net | 458.8 | 401.7 | ||||||
Other assets | 190.9 | 185.2 | ||||||
Non-current assets of discontinued operations | — | 190.4 | ||||||
Total Assets | $ | 6,310.5 | $ | 6,446.1 | ||||
Liabilities and Stockholders’ Equity: | ||||||||
Accounts payable | $ | 549.9 | $ | 590.5 | ||||
Accrued compensation | 177.9 | 142.6 | ||||||
Other accrued liabilities | 710.9 | 677.7 | ||||||
Income taxes payable | 144.3 | 82.6 | ||||||
Notes payable | 23.9 | 4.0 | ||||||
Current portion of long-term debt | 253.6 | 162.8 | ||||||
Current liabilities of discontinued operations | 36.1 | 137.2 | ||||||
Total Current Liabilities | 1,896.6 | 1,797.4 | ||||||
Long-term debt | 1,972.3 | 2,429.7 | ||||||
Other non-current liabilities | 551.4 | 566.6 | ||||||
Long-term liabilities of discontinued operations | — | 9.2 | ||||||
Stockholders’ Equity | 1,890.2 | 1,643.2 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 6,310.5 | $ | 6,446.1 | ||||
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
For The Twelve Months Ended December 31, | ||||||||
2006 | 2005 | |||||||
Operating Activities: | ||||||||
Net income | $ | 385.0 | $ | 251.3 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 193.3 | 191.6 | ||||||
Impairment charges | 50.9 | 34.4 | ||||||
Non-cash restructuring costs | 27.2 | 56.2 | ||||||
Deferred income taxes | (5.0 | ) | (63.9 | ) | ||||
Gain on sale of assets/debt extinguishment | (4.5 | ) | (20.0 | ) | ||||
Stock-based compensation expense | 33.6 | 6.1 | ||||||
(Gain)/Loss on disposal of discontinued operations | (0.7 | ) | 96.8 | |||||
Other | (12.9 | ) | (23.9 | ) | ||||
Changes in current accounts, excluding the effects of acquisitions: | ||||||||
Accounts receivable | 25.1 | (51.5 | ) | |||||
Inventories | (32.2 | ) | 32.3 | |||||
Accounts payable | (51.0 | ) | 27.3 | |||||
Accrued liabilities and other | 4.5 | 44.6 | ||||||
Discontinued operations | 30.1 | 60.3 | ||||||
Net cash provided by operating activities | $ | 643.4 | $ | 641.6 | ||||
Investing Activities: | ||||||||
Acquisitions, net of cash acquired | $ | (60.6 | ) | $ | (740.0 | ) | ||
Capital expenditures | (138.3 | ) | (92.2 | ) | ||||
Disposals of non-current assets and sale of businesses | 187.0 | 65.5 | ||||||
Net cash used in investing activities | $ | (11.9 | ) | $ | (766.7 | ) | ||
Financing Activities: | ||||||||
Proceeds from issuance of debt | $ | 177.0 | $ | 337.0 | ||||
Payments on notes payable and long-term debt | (511.0 | ) | (360.1 | ) | ||||
Cash dividends | (232.8 | ) | (231.5 | ) | ||||
Proceeds from exercised stock options and other | 16.7 | (2.6 | ) | |||||
Net cash used in financing activities | $ | (550.1 | ) | $ | (257.2 | ) | ||
Exchange rate effect on cash and cash equivalents | $ | 4.1 | $ | (7.8 | ) | |||
Increase (Decrease) in cash and cash equivalents | 85.5 | (390.1 | ) | |||||
Cash and cash equivalents at beginning of year | 115.5 | 505.6 | ||||||
Cash and cash equivalents at end of period | $ | 201.0 | $ | 115.5 | ||||
Newell Rubbermaid Inc.
Calculation of Free Cash Flow (1)
Calculation of Free Cash Flow (1)
For The Three Months Ended December 31, | ||||||||
2006 | 2005 | |||||||
Free Cash Flow (in millions): | ||||||||
Net cash provided by operating activities | $ | 239.1 | $ | 190.3 | ||||
Capital expenditures | (44.2 | ) | (22.3 | ) | ||||
Free Cash Flow | $ | 194.9 | $ | 168.0 | ||||
For The Twelve Months Ended December 31, | ||||||||
2006 | 2005 | |||||||
Free Cash Flow (in millions): | ||||||||
Net cash provided by operating activities | $ | 643.4 | $ | 641.6 | ||||
Capital expenditures | (138.3 | ) | (92.2 | ) | ||||
Free Cash Flow | $ | 505.1 | $ | 549.4 | ||||
(1) | Free Cash Flow is defined as cash flow provided by operating activities less capital expenditures. |
Newell Rubbermaid Inc.
Financial Worksheet
In Millions
Financial Worksheet
In Millions
2006 | 2005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Q1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor | $ | 449.7 | $ | 38.4 | $ | — | $ | 38.4 | 8.5 | % | $ | 398.0 | $ | 14.8 | $ | — | $ | 14.8 | 3.7 | % | $ | 51.7 | 13.0 | % | $ | 23.6 | 159.5 | % | ||||||||||||||||||||||||||||
Office Products | 390.8 | 32.3 | — | 32.3 | 8.3 | % | 332.8 | 33.5 | — | 33.5 | 10.1 | % | 58.0 | 17.4 | % | (1.2 | ) | (3.6 | )% | |||||||||||||||||||||||||||||||||||||
Tools & Hardware | 276.8 | 33.1 | — | 33.1 | 12.0 | % | 276.4 | 26.7 | — | 26.7 | 9.7 | % | 0.4 | 0.1 | % | 6.4 | 24.0 | % | ||||||||||||||||||||||||||||||||||||||
Other | 225.3 | 32.7 | — | 32.7 | 14.5 | % | 196.5 | 17.0 | — | 17.0 | 8.7 | % | 28.8 | 14.7 | % | 15.7 | 92.4 | % | ||||||||||||||||||||||||||||||||||||||
Impairment Charge | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | (9.1 | ) | 9.1 | — | (6.5 | ) | — | (6.5 | ) | 6.5 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (17.6 | ) | — | (17.6 | ) | (9.5 | ) | — | (9.5 | ) | (8.1 | ) | 85.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,342.6 | $ | 109.8 | $ | 9.1 | $ | 118.9 | 8.9 | % | $ | 1,203.7 | $ | 76.0 | $ | — | $ | 76.0 | 6.3 | % | $ | 138.9 | 11.5 | % | $ | 42.9 | 56.4 | % | ||||||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Q2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor | $ | 509.9 | $ | 57.3 | $ | — | $ | 57.3 | 11.2 | % | $ | 480.1 | $ | 31.1 | $ | — | $ | 31.1 | 6.5 | % | $ | 29.8 | 6.2 | % | $ | 26.2 | 84.2 | % | ||||||||||||||||||||||||||||
Office Products | 579.1 | 99.9 | — | 99.9 | 17.3 | % | 495.5 | 98.9 | — | 98.9 | 20.0 | % | 83.6 | 16.9 | % | 1.0 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware | 328.8 | 53.8 | — | 53.8 | 16.4 | % | 315.5 | 49.3 | — | 49.3 | 15.6 | % | 13.3 | 4.2 | % | 4.5 | 9.1 | % | ||||||||||||||||||||||||||||||||||||||
Other | 216.3 | 29.8 | — | 29.8 | 13.8 | % | 202.8 | 26.0 | — | 26.0 | 12.8 | % | 13.5 | 6.7 | % | 3.8 | 14.6 | % | ||||||||||||||||||||||||||||||||||||||
Impairment Charge | — | — | — | (31.4 | ) | 31.4 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | (19.1 | ) | 19.1 | — | (0.3 | ) | — | (0.3 | ) | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (20.0 | ) | — | (20.0 | ) | (9.7 | ) | — | (9.7 | ) | (10.3 | ) | 106.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,634.1 | $ | 201.7 | $ | 19.1 | $ | 220.8 | 13.5 | % | $ | 1,493.9 | $ | 163.9 | $ | 31.4 | $ | 195.3 | 13.1 | % | $ | 140.2 | 9.4 | % | $ | 25.5 | 13.1 | % | ||||||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Q3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor | $ | 519.3 | $ | 67.8 | $ | — | $ | 67.8 | 13.1 | % | $ | 490.9 | $ | 67.9 | $ | — | $ | 67.9 | 13.8 | % | $ | 28.4 | 5.8 | % | $ | (0.1 | ) | (0.1 | )% | |||||||||||||||||||||||||||
Office Products | 517.5 | 75.7 | — | 75.7 | 14.6 | % | 427.8 | 59.9 | — | 59.9 | 14.0 | % | 89.7 | 21.0 | % | 15.8 | 26.4 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware | 324.4 | 46.2 | — | 46.2 | 14.2 | % | 318.9 | 46.3 | — | 46.3 | 14.5 | % | 5.5 | 1.7 | % | (0.1 | ) | (0.2 | )% | |||||||||||||||||||||||||||||||||||||
Other | 224.9 | 28.9 | — | 28.9 | 12.9 | % | 199.0 | 25.4 | — | 25.4 | 12.8 | % | 25.9 | 13.0 | % | 3.5 | 13.8 | % | ||||||||||||||||||||||||||||||||||||||
Impairment Charge | — | — | — | 25.2 | (25.2 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | (22.1 | ) | 22.1 | — | (14.6 | ) | — | (14.6 | ) | 14.6 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (18.3 | ) | — | (18.3 | ) | (10.1 | ) | — | (10.1 | ) | (8.2 | ) | 81.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,586.1 | $ | 178.2 | $ | 22.1 | $ | 200.3 | 12.6 | % | $ | 1,436.6 | $ | 200.0 | $ | (25.2 | ) | $ | 174.8 | 12.2 | % | $ | 149.5 | 10.4 | % | $ | 25.5 | 14.6 | % | |||||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Q4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor | $ | 516.8 | $ | 45.6 | $ | — | $ | 45.6 | 8.8 | % | $ | 552.0 | $ | 32.0 | $ | — | $ | 32.0 | 5.8 | % | $ | (35.2 | ) | (6.4 | )% | $ | 13.6 | 42.5 | % | |||||||||||||||||||||||||||
Office Products | 544.2 | 79.1 | — | 79.1 | 14.5 | % | 457.2 | 73.7 | — | 73.7 | 16.1 | % | 87.0 | 19.0 | % | 5.4 | 7.3 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware | 332.2 | 51.9 | — | 51.9 | 15.6 | % | 349.5 | 48.8 | — | 48.8 | 14.0 | % | (17.3 | ) | (4.9 | )% | 3.1 | 6.4 | % | |||||||||||||||||||||||||||||||||||||
Other | 245.0 | 26.5 | — | 26.5 | 10.8 | % | 224.3 | 35.1 | — | 35.1 | 15.6 | % | 20.7 | 9.2 | % | (8.6 | ) | (24.5 | )% | |||||||||||||||||||||||||||||||||||||
Impairment Charge | — | — | — | 5.8 | (5.8 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | (16.1 | ) | 16.1 | — | (51.2 | ) | 51.2 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (20.1 | ) | — | (20.1 | ) | (16.7 | ) | — | (16.7 | ) | (3.4 | ) | 20.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,638.2 | $ | 166.9 | $ | 16.1 | $ | 183.0 | 11.2 | % | $ | 1,583.0 | $ | 127.5 | $ | 45.4 | $ | 172.9 | 10.9 | % | $ | 55.2 | 3.5 | % | $ | 10.1 | 5.8 | % | ||||||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
YTD: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor | $ | 1,995.7 | $ | 209.1 | $ | — | $ | 209.1 | 10.5 | % | $ | 1,921.0 | $ | 145.8 | $ | — | $ | 145.8 | 7.6 | % | $ | 74.7 | 3.9 | % | $ | 63.3 | 43.4 | % | ||||||||||||||||||||||||||||
Office Products | 2,031.6 | 287.0 | — | 287.0 | 14.1 | % | 1,713.3 | 266.0 | — | 266.0 | 15.5 | % | 318.3 | 18.6 | % | 21.0 | 7.9 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware | 1,262.2 | 185.0 | — | 185.0 | 14.7 | % | 1,260.3 | 171.1 | — | 171.1 | 13.6 | % | 1.9 | 0.2 | % | 13.9 | 8.1 | % | ||||||||||||||||||||||||||||||||||||||
Other | 911.5 | 117.9 | — | 117.9 | 12.9 | % | 822.6 | 103.5 | — | 103.5 | 12.6 | % | 88.9 | 10.8 | % | 14.4 | 13.9 | % | ||||||||||||||||||||||||||||||||||||||
Impairment Charge | — | — | — | (0.4 | ) | 0.4 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | (66.4 | ) | 66.4 | — | (72.6 | ) | 51.2 | (21.4 | ) | 21.4 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (76.0 | ) | — | (76.0 | ) | (46.0 | ) | — | (46.0 | ) | (30.0 | ) | 65.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,201.0 | $ | 656.6 | $ | 66.4 | $ | 723.0 | 11.7 | % | $ | 5,717.2 | $ | 567.4 | $ | 51.6 | $ | 619.0 | 10.8 | % | $ | 483.8 | 8.5 | % | $ | 104.0 | 16.8 | % | ||||||||||||||||||||||||||||
(1) | Charges are primarily related to restructuring and impairment. |
Newell Rubbermaid Inc.
Three Months Ended December 31, 2006
In Millions
Three Months Ended December 31, 2006
In Millions
Currency Analysis
2006 | 2005 | Year-over-year Increase (Decrease) | ||||||||||||||||||||||||||
Sales as | Currency | Adjusted | Sales as | Excluding | Including | Currency | ||||||||||||||||||||||
Reported | Impact | Sales | Reported | Currency | Currency | Impact | ||||||||||||||||||||||
By Segment | ||||||||||||||||||||||||||||
Cleaning, Organization & Décor | $ | 516.8 | $ | (2.9 | ) | $ | 513.9 | $ | 552.0 | (6.9 | )% | (6.4 | )% | 0.5 | % | |||||||||||||
Office Products | 544.2 | (13.1 | ) | 531.1 | 457.2 | 16.2 | % | 19.0 | % | 2.9 | % | |||||||||||||||||
Tools & Hardware | 332.2 | (4.8 | ) | 327.4 | 349.5 | (6.3 | )% | (4.9 | )% | 1.4 | % | |||||||||||||||||
Other | 245.0 | (3.1 | ) | 241.9 | 224.3 | 7.8 | % | 9.2 | % | 1.4 | % | |||||||||||||||||
Total Company | $ | 1,638.2 | $ | (23.9 | ) | $ | 1,614.3 | $ | 1,583.0 | 2.0 | % | 3.5 | % | 1.5 | % | |||||||||||||
By Geography | ||||||||||||||||||||||||||||
United States | $ | 1,188.2 | $ | — | $ | 1,188.2 | $ | 1,208.3 | (1.7 | )% | (1.7 | )% | 0.0 | % | ||||||||||||||
Canada | 100.6 | (3.3 | ) | 97.3 | 97.0 | 0.3 | % | 3.7 | % | 3.4 | % | |||||||||||||||||
North America | 1,288.8 | (3.3 | ) | 1,285.5 | 1,305.3 | (1.5 | )% | (1.3 | )% | 0.3 | % | |||||||||||||||||
Europe | 223.4 | (18.8 | ) | 204.6 | 165.7 | 23.5 | % | 34.8 | % | 11.3 | % | |||||||||||||||||
Central & South America | 68.7 | (0.1 | ) | 68.6 | 63.7 | 7.7 | % | 7.8 | % | 0.2 | % | |||||||||||||||||
All Other | 57.3 | (1.7 | ) | 55.6 | 48.3 | 15.1 | % | 18.6 | % | 3.5 | % | |||||||||||||||||
Total Company | $ | 1,638.2 | $ | (23.9 | ) | $ | 1,614.3 | $ | 1,583.0 | 2.0 | % | 3.5 | % | 1.5 | % | |||||||||||||
Newell Rubbermaid Inc.
Twelve Months Ended December 31, 2006
In Millions
Twelve Months Ended December 31, 2006
In Millions
Currency Analysis
2006 | 2005 | Year-over-year Increase (Decrease) | ||||||||||||||||||||||||||
Sales as | Currency | Adjusted | Sales as | Excluding | Including | Currency | ||||||||||||||||||||||
Reported | Impact | Sales | Reported | Currency | Currency | Impact | ||||||||||||||||||||||
By Segment | ||||||||||||||||||||||||||||
Cleaning, Organization & Décor | $ | 1,995.7 | $ | (14.8 | ) | $ | 1,980.9 | $ | 1,921.0 | 3.1 | % | 3.9 | % | 0.8 | % | |||||||||||||
Office Products | 2,031.6 | (13.3 | ) | 2,018.3 | 1,713.3 | 17.8 | % | 18.6 | % | 0.8 | % | |||||||||||||||||
Tools & Hardware | 1,262.2 | (9.4 | ) | 1,252.8 | 1,260.3 | (0.6 | )% | 0.2 | % | 0.7 | % | |||||||||||||||||
Other | 911.5 | (3.1 | ) | 908.4 | 822.6 | 10.4 | % | 10.8 | % | 0.4 | % | |||||||||||||||||
Total Company | $ | 6,201.0 | $ | (40.6 | ) | $ | 6,160.4 | $ | 5,717.2 | 7.8 | % | 8.5 | % | 0.7 | % | |||||||||||||
By Geography | ||||||||||||||||||||||||||||
United States | $ | 4,603.4 | $ | — | $ | 4,603.4 | $ | 4,338.5 | 6.1 | % | 6.1 | % | 0.0 | % | ||||||||||||||
Canada | 387.9 | (26.7 | ) | 361.2 | 352.2 | 2.6 | % | 10.1 | % | 7.6 | % | |||||||||||||||||
North America | 4,991.3 | (26.7 | ) | 4,964.6 | 4,690.7 | 5.8 | % | 6.4 | % | 0.6 | % | |||||||||||||||||
Europe | 781.0 | (11.2 | ) | 769.8 | 639.8 | 20.3 | % | 22.1 | % | 1.8 | % | |||||||||||||||||
Central & South America | 239.3 | (3.4 | ) | 235.9 | 224.8 | 4.9 | % | 6.5 | % | 1.5 | % | |||||||||||||||||
All Other | 189.4 | 0.7 | 190.1 | 161.9 | 17.4 | % | 17.0 | % | (0.4 | )% | ||||||||||||||||||
Total Company | $ | 6,201.0 | $ | (40.6 | ) | $ | 6,160.4 | $ | 5,717.2 | 7.8 | % | 8.5 | % | 0.7 | % | |||||||||||||
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0014.gif)
Q4 2006 Earnings Presentation January 30, 2007 |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764llz0002.jpg)
FY 2006 Summary Strong net sales growth of 8.5% and internal sales growth of 4.7% driven by Double digit increase in Home & Family segment Mid single digit increase in Office Products segment, Rubbermaid Home Products, Rubbermaid Commercial Products, and the Irwin and Lenox branded tool businesses Expanded gross margins to 33.4%, a 260 basis point improvement over the prior year. Increased operating income by $104 million or 16.8% and "normalized" EPS by $0.27 or 21.6% over the prior year Optimized the portfolio with the integration of the DYMO acquisition and the divestitures of Little Tikes and Home Decor Europe Made significant investments in strategic brand building and corporate initiatives to support future sales growth and income Announced approximately two-thirds of intended manufacturing facility closures under Project Acceleration |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0016.gif)
EPS Walk: Previous Guidance and Prior Year to FY 2006 1 1 2 1 2 |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0017.gif)
EPS Walk: FY 2005 and FY 2006 "Normalized" EPS 1 1 1 |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0018.gif)
FY 2006 Sales Growth Elements |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0019.gif)
EPS Walk: Previous Guidance and Prior Year to Q406 1 1 2 2 1 |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0020.gif)
FY 2007 Guidance 1 1 1 |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0021.gif)
EPS Walk: Q1 2007 Earnings Per Share Estimate 1 1 2 1 2 |
![](https://capedge.com/proxy/8-K/0000950124-07-000500/c11764c11764z0022.gif)
Appendix |
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Forward Looking Statements The statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of Project Acceleration, sales, income/(loss), earnings per share, operating income or gross margin improvements, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "expect," "project," "will," "believes," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail economies; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to implement successfully information technology solutions throughout our organization; our ability to improve productivity and streamline operations; the risks inherent in our foreign operations and those factors listed in the company's most recent quarterly report on Form 10- Q, including Exhibit 99.1 thereto, filed with the Securities and Exchange Commission. |
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Reconciliation: FY 2005 and 2006 "Normalized" EPS 1 1 |
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Reconciliation: Q4 2005 and 2006 EPS |
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Reconciliation: Q1 2006 and 2007 EPS |