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THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
FIRST QUARTER | ||||||||
2005 | 2004 | |||||||
NET SALES | $ | 806.3 | $ | 734.8 | ||||
COSTS AND EXPENSES | ||||||||
Cost of sales | 517.4 | 466.9 | ||||||
Selling, general and administrative | 185.2 | 166.7 | ||||||
Interest-net | 7.6 | 7.9 | ||||||
Other-net | 9.5 | 13.9 | ||||||
719.7 | 655.4 | |||||||
EARNINGS FROM CONTINUING OPERATIONS | ||||||||
BEFORE INCOME TAXES | 86.6 | 79.4 | ||||||
Income taxes | 19.9 | 24.4 | ||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 66.7 | 55.0 | ||||||
Earnings from discontinued operations (including gain | ||||||||
on disposal of $142.7 million in 2004) before income taxes | (0.1 | ) | 147.9 | |||||
Income taxes on discontinued operations | — | 49.4 | ||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | (0.1 | ) | 98.5 | |||||
NET EARNINGS | $ | 66.6 | $ | 153.5 | ||||
BASIC EARNINGS PER SHARE OF COMMON STOCK | ||||||||
Continuing operations | $ | 0.81 | $ | 0.67 | ||||
Discontinued operations | — | 1.21 | ||||||
Total basic earnings per share of common stock | $ | 0.80 | $ | 1.88 | ||||
DILUTED EARNINGS PER SHARE OF COMMON STOCK | ||||||||
Continuing operations | $ | 0.78 | $ | 0.66 | ||||
Discontinued operations | — | 1.18 | ||||||
Total diluted earnings per share of common stock | $ | 0.78 | $ | 1.84 | ||||
DIVIDENDS PER SHARE | $ | 0.28 | $ | 0.26 | ||||
AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||
Basic | 82,822 | 81,628 | ||||||
Diluted | 85,156 | 83,392 | ||||||
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THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
APRIL 2, 2005 | JANUARY 1, 2005 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 310.5 | $ | 250.0 | ||||
Accounts receivable | 619.6 | 582.0 | ||||||
Inventories | 432.3 | 413.4 | ||||||
Other current assets | 71.4 | 82.2 | ||||||
Assets held for sale | 0.8 | 44.3 | ||||||
Total current assets | 1,434.6 | 1,371.9 | ||||||
Property, plant and equipment | 396.9 | 398.9 | ||||||
Goodwill and other intangibles | 967.0 | 928.2 | ||||||
Other assets | 154.3 | 151.6 | ||||||
Total assets | $ | 2,952.8 | $ | 2,850.6 | ||||
LIABILITIES AND SHAREOWNERS’ EQUITY | ||||||||
Short-term borrowings | $ | 212.7 | $ | 102.5 | ||||
Accounts payable | 289.1 | 300.4 | ||||||
Accrued expenses | 384.9 | 415.9 | ||||||
Total current liabilities | 886.7 | 818.8 | ||||||
Long-term debt | 474.5 | 481.8 | ||||||
Other long-term liabilities | 324.1 | 328.7 | ||||||
Shareowners’ equity | 1,267.5 | 1,221.3 | ||||||
Total liabilities and equity | $ | 2,952.8 | $ | 2,850.6 | ||||
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THE STANLEY WORKS AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
FIRST QUARTER | ||||||||
2005 | 2004 | |||||||
OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 66.6 | $ | 153.5 | ||||
Depreciation and amortization | 23.4 | 24.4 | ||||||
Reclassify taxes paid (proceeds) from sale of businesses to investing activities | 10.6 | (161.9 | ) | |||||
Changes in working capital and other | (40.0 | ) | 36.1 | |||||
Net cash provided by operating activities | 60.6 | 52.1 | ||||||
INVESTING AND FINANCING ACTIVITIES | ||||||||
Capital and software expenditures | (10.5 | ) | (8.2 | ) | ||||
Proceeds (taxes paid) from sale of businesses | (10.6 | ) | 161.9 | |||||
Business acquisitions and asset disposals | (59.7 | ) | (250.1 | ) | ||||
Cash dividends on common stock | (23.2 | ) | (21.2 | ) | ||||
Other | 103.9 | 53.6 | ||||||
Net cash used in investing and financing activities | (0.1 | ) | (64.0 | ) | ||||
Increase(Decrease) in Cash and Cash Equivalents | 60.5 | (11.9 | ) | |||||
Cash and Cash Equivalents, Beginning of Period | 250.0 | 204.4 | ||||||
Cash and Cash Equivalents, End of Period | $ | 310.5 | $ | 192.5 | ||||
Free Cash Flow Computation | ||||||||
Operating Cash Flow | $ | 60.6 | $ | 52.1 | ||||
Less: Capital and software expenditures | (10.5 | ) | (8.2 | ) | ||||
Free Cash Flow from Operations (before dividends) | $ | 50.1 | $ | 43.9 | ||||
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THE STANLEY WORKS AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
FIRST QUARTER | ||||||||
2005 | 2004 | |||||||
NET SALES | ||||||||
Consumer Products | $ | 263.4 | $ | 262.3 | ||||
Industrial Tools | 349.3 | 316.0 | ||||||
Security Solutions | 193.6 | 156.5 | ||||||
Total | $ | 806.3 | $ | 734.8 | ||||
OPERATING PROFIT | ||||||||
Consumer Products | $ | 41.8 | $ | 45.0 | ||||
Industrial Tools | 36.7 | 28.6 | ||||||
Security Solutions | 25.2 | 27.6 | ||||||
Total | $ | 103.7 | $ | 101.2 | ||||
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