STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
|
| | | | | | | | | | | | | | | |
| | Fourth Quarter | | Year-to-Date |
| | 2016 | | 2015 | | 2016 | | 2015 |
| NET SALES | $ | 2,920.4 |
| | $ | 2,845.4 |
| | $ | 11,406.9 |
| | $ | 11,171.8 |
|
| COSTS AND EXPENSES | | | | | | | |
| Cost of sales | 1,843.8 |
| | 1,831.2 |
| | 7,139.7 |
| | 7,099.8 |
|
| Gross margin | 1,076.6 |
|
| 1,014.2 |
| | 4,267.2 |
| | 4,072.0 |
|
| % of Net Sales | 36.9 | % | | 35.6 | % | | 37.4 | % | | 36.4 | % |
| Selling, general and administrative | 683.8 |
| | 610.6 |
| | 2,623.9 |
| | 2,486.4 |
|
| % of Net Sales | 23.4 | % | | 21.5 | % | | 23.0 | % | | 22.3 | % |
| Operating margin | 392.8 |
| | 403.6 |
| | 1,643.3 |
| | 1,585.6 |
|
| % of Net sales | 13.5 | % | | 14.2 | % | | 14.4 | % | | 14.2 | % |
| Other - net | 46.3 |
| | 53.8 |
| | 196.9 |
| | 222.0 |
|
| Restructuring charges | 21.7 |
| | 3.7 |
| | 49.0 |
| | 47.6 |
|
| Income from operations | 324.8 |
| | 346.1 |
| | 1,397.4 |
| | 1,316.0 |
|
| Interest - net | 42.5 |
| | 39.7 |
| | 171.3 |
| | 165.2 |
|
| EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 282.3 |
| | 306.4 |
| | 1,226.1 |
| | 1,150.8 |
|
| Income taxes on continuing operations | 26.5 |
| | 39.1 |
| | 261.2 |
| | 248.6 |
|
| NET EARNINGS FROM CONTINUING OPERATIONS | 255.8 |
| | 267.3 |
| | 964.9 |
| | 902.2 |
|
| Less: net earnings (loss) attributable to non-controlling interests | 0.3 |
| | 0.1 |
| | (0.4 | ) | | (1.6 | ) |
| NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS | 255.5 |
| | 267.2 |
| | 965.3 |
| | 903.8 |
|
| NET LOSS FROM DISCONTINUED OPERATIONS | — |
| | (1.7 | ) | | — |
| | (20.1 | ) |
| NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 255.5 |
| | $ | 265.5 |
| | $ | 965.3 |
| | $ | 883.7 |
|
| | | | | | | | |
| BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK | | | | | | | |
| Continuing operations | $ | 1.74 |
| | $ | 1.83 |
| | $ | 6.61 |
| | $ | 6.10 |
|
| Discontinued operations | — |
| | (0.01 | ) | | — |
| | (0.14 | ) |
| Total basic earnings per share of common stock | $ | 1.74 |
| | $ | 1.82 |
| | $ | 6.61 |
| | $ | 5.96 |
|
| DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK | | | | | | | |
| Continuing operations | $ | 1.71 |
| | $ | 1.78 |
| | $ | 6.51 |
| | $ | 5.92 |
|
| Discontinued operations | — |
| | (0.01 | ) | | — |
| | (0.13 | ) |
| Total diluted earnings per share of common stock | $ | 1.71 |
| | $ | 1.77 |
| | $ | 6.51 |
| | $ | 5.79 |
|
| DIVIDENDS PER SHARE | $ | 0.58 |
| | $ | 0.55 |
| | $ | 2.26 |
| | $ | 2.14 |
|
| WEIGHTED AVERAGE SHARES OUTSTANDING (in thousands) | | | | | | | |
| Basic | 147,145 |
| | 145,908 |
| | 146,041 |
| | 148,234 |
|
| Diluted | 149,440 |
| | 150,020 |
| | 148,207 |
| | 152,706 |
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
|
| | | | | | | | |
| | | December 31, 2016 | | January 2, 2016 |
| ASSETS | | | | |
| Cash and cash equivalents | | $ | 1,131.8 |
| | $ | 465.4 |
|
| Accounts and notes receivable, net | | 1,302.8 |
| | 1,331.8 |
|
| Inventories, net | | 1,478.0 |
| | 1,526.4 |
|
| Assets held for sale | | 523.4 |
| | — |
|
| Other current assets | | 352.5 |
| | 338.5 |
|
| Total current assets | | 4,788.5 |
| | 3,662.1 |
|
| Property, plant and equipment, net | | 1,451.2 |
| | 1,450.2 |
|
| Goodwill and other intangibles, net | | 8,993.5 |
| | 9,625.8 |
|
| Other assets | | 437.3 |
| | 389.7 |
|
| Total assets | | $ | 15,670.5 |
| | $ | 15,127.8 |
|
| LIABILITIES AND SHAREOWNERS’ EQUITY | | | | |
| Short-term borrowings | | $ | 12.1 |
| | $ | 7.6 |
|
| Accounts payable | | 1,640.4 |
| | 1,533.1 |
|
| Liabilities held for sale | | 53.5 |
| | — |
|
| Accrued expenses | | 1,101.5 |
| | 1,261.9 |
|
| Total current liabilities | | 2,807.5 |
| | 2,802.6 |
|
| Long-term debt | | 3,815.3 |
| | 3,792.1 |
|
| Other long-term liabilities | | 2,674.1 |
| | 2,673.9 |
|
| Stanley Black & Decker, Inc. shareowners’ equity | | 6,351.6 |
| | 5,811.6 |
|
| Non-controlling interests’ equity | | 22.0 |
| | 47.6 |
|
| Total liabilities and shareowners' equity | | $ | 15,670.5 |
| | $ | 15,127.8 |
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
|
| | | | | | | | | | | | | | | | | |
| | | Fourth Quarter | | Year-to-Date | |
| | | 2016 | | 2015 | | 2016 | | 2015 | |
| | OPERATING ACTIVITIES | | | | | | | | |
| | Net earnings from continuing operations | $ | 255.8 |
| | $ | 267.3 |
| | $ | 964.9 |
| | $ | 902.2 |
| |
| | Net loss from discontinued operations | — |
| | (1.7 | ) | | — |
| | (20.1 | ) | |
| | Depreciation and amortization | 102.8 |
| | 105.6 |
| | 408.0 |
| | 414.0 |
| |
| | Changes in working capital1 | 450.5 |
| | 503.5 |
| | 57.2 |
| | (98.0 | ) | |
| | Other | 26.1 |
| | (46.5 | ) | | 55.1 |
| | (15.8 | ) | |
| | Net cash provided by operating activities | 835.2 |
| | 828.2 |
| | 1,485.2 |
| | 1,182.3 |
| |
| | INVESTING AND FINANCING ACTIVITIES | | | | | | | | |
| | Capital and software expenditures | (125.3 | ) | | (131.3 | ) | | (347.0 | ) | | (311.4 | ) | |
| | Business acquisitions, net of cash acquired | — |
| | (0.1 | ) | | (59.3 | ) | | (17.6 | ) | |
| | Proceeds from issuances of common stock | 367.2 |
| | 79.5 |
| | 418.5 |
| | 163.5 |
| |
| | Net short-term (repayments) borrowings | (90.5 | ) | | (449.6 | ) | | 1.9 |
| | 1.2 |
| |
| | Net investment hedge settlements | 41.4 |
| | 25.5 |
| | 104.7 |
| | 137.7 |
| |
| | Cash dividends on common stock | (87.0 | ) | | (80.7 | ) | | (330.9 | ) | | (319.9 | ) | |
| | Purchases of common stock for treasury | (11.4 | ) | | (9.7 | ) | | (374.1 | ) | | (649.8 | ) | |
| | Cash settlement on forward stock purchase contract | (147.4 | ) | | — |
| | (147.4 | ) | | — |
| |
| | Non-controlling interest buyout | (12.5 | ) | | (33.5 | ) | | (12.5 | ) | | (33.5 | ) | |
| | Effect of exchange rate changes on cash | (78.9 | ) | | (52.1 | ) | | (101.7 | ) | | (132.9 | ) | |
| | Other | 20.2 |
| | (4.1 | ) | | 29.0 |
| | (50.8 | ) | |
| | Net cash used in investing and financing activities | (124.2 | ) | | (656.1 | ) | | (818.8 | ) | | (1,213.5 | ) | |
| | Increase (Decrease) in Cash and Cash Equivalents | 711.0 |
| | 172.1 |
| | 666.4 |
| | (31.2 | ) | |
| | Cash and Cash Equivalents, Beginning of Period | 420.8 |
| | 293.3 |
| | 465.4 |
| | 496.6 |
| |
| | Cash and Cash Equivalents, End of Period | $ | 1,131.8 |
| | $ | 465.4 |
| | $ | 1,131.8 |
| | $ | 465.4 |
| |
| | | | | | | | | | |
| | Free Cash Flow Computation2 | | | | | | | | |
| | Operating cash flow | $ | 835.2 |
| | $ | 828.2 |
| | $ | 1,485.2 |
| | $ | 1,182.3 |
| |
| | Less: capital and software expenditures | (125.3 | ) | | (131.3 | ) | | (347.0 | ) | | (311.4 | ) | |
| | Free cash flow (before dividends) | $ | 709.9 |
| | $ | 696.9 |
| | $ | 1,138.2 |
| | $ | 870.9 |
| |
| | | | | | | | | | |
1 | Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue. | |
2 | Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. | |
| | | |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
|
| | | | | | | | | | | | | | | |
| | Fourth Quarter | | Year-to-Date |
| | 2016 | | 2015 | | 2016 | | 2015 |
| NET SALES | | | | | | | |
| Tools & Storage | $ | 1,933.8 |
| | $ | 1,830.9 |
| | $ | 7,469.2 |
| | $ | 7,140.7 |
|
| Security | 532.8 |
| | 538.0 |
| | 2,097.4 |
| | 2,092.9 |
|
| Industrial | 453.8 |
| | 476.5 |
| | 1,840.3 |
| | 1,938.2 |
|
| Total | $ | 2,920.4 |
| | $ | 2,845.4 |
| | $ | 11,406.9 |
| | $ | 11,171.8 |
|
| SEGMENT PROFIT | | | | | | | |
| Tools & Storage | $ | 312.4 |
| | $ | 303.9 |
| | $ | 1,266.9 |
| | $ | 1,170.1 |
|
| Security | 69.9 |
| | 68.8 |
| | 269.2 |
| | 239.6 |
|
| Industrial | 69.2 |
| | 85.5 |
| | 304.4 |
| | 339.9 |
|
| Segment Profit | 451.5 |
| | 458.2 |
| | 1,840.5 |
| | 1,749.6 |
|
| Corporate Overhead | (58.7 | ) | | (54.6 | ) | | (197.2 | ) | | (164.0 | ) |
| Total | $ | 392.8 |
| | $ | 403.6 |
| | $ | 1,643.3 |
| | $ | 1,585.6 |
|
| Segment Profit as a Percentage of Net Sales | | | | | | | |
| Tools & Storage | 16.2 | % | | 16.6 | % | | 17.0 | % | | 16.4 | % |
| Security | 13.1 | % | | 12.8 | % | | 12.8 | % | | 11.4 | % |
| Industrial | 15.2 | % | | 17.9 | % | | 16.5 | % | | 17.5 | % |
| Segment Profit | 15.5 | % | | 16.1 | % | | 16.1 | % | | 15.7 | % |
| Corporate Overhead | (2.0 | )% | | (1.9 | )% | | (1.7 | )% | | (1.5 | )% |
| Total | 13.5 | % | | 14.2 | % | | 14.4 | % | | 14.2 | % |
