Newell Brands Announces First Quarter 2021 Results
Net Sales Growth 21.3%; Core Sales Growth 20.9%
Delivers Significant Operating Profit and Operating Margin Improvement
Diluted EPS
Raises
"2021 is off to a terrific start, as top line increased 21 percent, normalized operating profit doubled and earnings per share tripled year-over-year during the first quarter, building on the momentum from the back half of 2020. Each of our business units and geographic regions delivered significant sales growth, fueled by consumption, as our supply chain teams operated with excellence and successfully managed broad-based demand surges,” said
First Quarter 2021 Executive Summary
- Net sales were
$2.3 billion , an increase of 21.3 percent compared with the prior year period. - Core sales grew 20.9 percent compared with the prior year period. Every business unit and major region increased core sales compared with the prior year period.
- Reported operating margin was 8.4 percent compared with negative 74.7 percent in the prior year period. Normalized operating margin was 10.1 percent compared with 6.0 percent in the prior year period.
- Reported diluted earnings per share were
$0.21 compared with a$3.02 diluted loss per share in the prior year period. - Normalized diluted earnings per share were
$0.30 compared with$0.09 per share in the prior year period. - The company redeemed the remaining
$94 million of its 3.15 percent senior notes that were scheduled to mature inApril 2021 . - The company's leverage ratio improved to 3.3x at the end of the first quarter from 4.2x in the prior year period and 3.5x at the end of 2020.
- The company increased its 2021 full year net sales outlook to
$9.9 billion to$10.1 billion from its previous range of$9.5 billion to$9.7 billion . The company also raised its 2021 full year outlook for normalized earnings per share to$1.63 to$1.73 from its previous range of$1.55 to$1.65 .
First Quarter 2021 Operating Results
Net sales were
Reported gross margin was 31.9 percent compared with 32.7 percent in the prior year period, as inflation, particularly related to resin, transportation and labor, more than offset the benefit from FUEL productivity savings and pricing. Normalized gross margin was 32.2 percent compared with 32.8 percent in the prior year period.
Reported operating income was
Interest expense was
The company reported a tax provision of
The company reported net income of
Normalized net income was
An explanation of non-GAAP measures and a reconciliation of these non-GAAP results to comparable GAAP measures are included in the tables attached to this release.
Balance Sheet and Cash Flow
Operating cash outflow was
The company redeemed the remaining
Leverage ratio is defined as the ratio of net debt to normalized EBITDA from continuing operations. An explanation of how the leverage ratio is calculated and a related reconciliation, as well as a reconciliation of reported results to normalized results, are included in the tables attached to this release.
First Quarter 2021 Operating Segment Results
The Commercial Solutions segment generated net sales of
The Home Appliances segment generated net sales of
The Home Solutions segment generated net sales of
The Learning & Development segment generated net sales of
Outlook for Full Year and Second Quarter 2021
The company updated its full year outlook for 2021 and initiated its second quarter 2021 guidance as follows:
|
Previous Full Year 2021 Outlook |
Updated Full Year 2021 Outlook |
||
|
|
|
||
Core Sales |
Low single digit growth |
5% to 7% growth |
||
Normalized Operating Margin |
30 to 60 bps improvement to 11.4% to 11.7% |
30 to 60 bps improvement to 11.4% to 11.7% |
||
Normalized EPS |
|
|
||
Operating Cash Flow |
Approximately |
Approximately |
|
Q2 2021 Outlook |
|||||||||
|
|
|||||||||
Core Sales |
17% to 20% growth |
|||||||||
Normalized Operating Margin |
130 to 180 bps improvement |
|||||||||
Normalized EPS |
|
The company has presented forward-looking statements regarding normalized operating margin and normalized earnings per share. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgement and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of forward-looking normalized operating margin or normalized earnings per share to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measures without unreasonable effort or expense. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the company's full-year and second quarter 2021 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between the company's actual results and preliminary financial data set forth above may be material.
Conference Call
Newell Brands’ first quarter 2021 earnings conference call will be held today,
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the
The company uses certain non-GAAP financial measures that are included in this press release and the additional financial information both to explain its results to stockholders and the investment community and in the internal evaluation and management of its businesses. The company’s management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the company’s performance and liquidity using the same tools that management uses to evaluate the company’s past performance, reportable business segments, prospects for future performance and liquidity, and (b) determine certain elements of management incentive compensation.
The company’s management believes that core sales provides a more complete understanding of underlying sales trends by providing sales on a consistent basis as it excludes the impacts of acquisitions, planned and completed divestitures, retail store openings and closings, certain market exits, impact of customer returns related to a product recall in
The company determines the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the company utilizes a “with” and “without” approach to determine normalized income tax benefit or expense. The company will also exclude one-time tax expenses related to a change in tax status of certain entities and the loss of GILTI tax credits as a result of utilizing the 50% IRC Section 163(j) limit resulting from the CARES Act to determine normalized income tax benefit.
While the company believes these non-GAAP financial measures are useful in evaluating the company’s performance and liquidity, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.
About
This press release and additional information about
Caution Concerning Forward-Looking Statements
Some of the statements in this press release and its exhibits, particularly those anticipating future financial performance, business prospects, growth, operating strategies, the impact of the COVID-19 pandemic and similar matters, are forward-looking statements within the meaning of the
- our ability to manage the demand, supply and operational challenges with the actual or perceived effects of the COVID-19 pandemic;
- our dependence on the strength of retail, commercial and industrial sectors of the economy in various countries around the world;
- competition with other manufacturers and distributors of consumer products;
- major retailers’ strong bargaining power and consolidation of our customers;
- our ability to improve productivity, reduce complexity and streamline operations;
- our ability to develop innovative new products, to develop, maintain and strengthen end-user brands and to realize the benefits of increased advertising and promotion spend;
- our ability to remediate the material weakness in internal control over financial reporting and consistently maintain effective internal control over financial reporting;
- risks related to our substantial indebtedness, a potential increase in interest rates or changes in our credit ratings;
- future events that could adversely affect the value of our assets and/or stock price and require additional impairment charges;
- unexpected costs or expenses associated with divestitures;
- our ability to effectively execute our turnaround plan;
- changes in the prices and availability of labor, transportation, raw materials and sourced products, including inflation, and our ability to obtain them in a timely manner;
- the impact of governmental investigations, inspections, lawsuits, legislative requests or other actions by third parties;
- the risks inherent to our foreign operations, including currency fluctuations, exchange controls and pricing restrictions;
- a failure of one of our key information technology systems, networks, processes or related controls or those of our service providers;
- the impact of
U.S. and foreign regulations on our operations, including the impact of tariffs and environmental remediation costs; - the potential inability to attract, retain and motivate key employees;
- the resolution of tax contingencies resulting in additional tax liabilities;
- product liability, product recalls or related regulatory actions;
- our ability to protect intellectual property rights;
- significant increases in funding obligations related to our pension plans; and
- other factors listed from time to time in our filings with the
SEC , including, but not limited to, our Annual Report on Form 10-K and our otherSEC filings.
The consolidated condensed financial statements are prepared in conformity with accounting principles generally accepted in
The information contained in this press release and the tables is as of the date indicated. The company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in millions, except per share data) |
||||||||||
|
|
Three Months Ended |
||||||||
|
|
2021 |
|
2020 |
|
% Change |
||||
Net sales |
|
$ |
2,288 |
|
|
$ |
1,886 |
|
|
21.3% |
Cost of products sold |
|
1,557 |
|
|
1,269 |
|
|
|
||
Gross profit |
|
731 |
|
|
617 |
|
|
18.5% |
||
Selling, general and administrative expenses |
|
534 |
|
|
548 |
|
|
(2.6)% |
||
Restructuring costs, net |
|
5 |
|
|
2 |
|
|
|
||
Impairment of goodwill, intangibles and other assets |
|
— |
|
|
1,475 |
|
|
|
||
Operating income (loss) |
|
192 |
|
|
(1,408) |
|
|
NM |
||
Non-operating expenses: |
|
|
|
|
|
|
||||
Interest expense, net |
|
67 |
|
|
63 |
|
|
|
||
Other (income) expense, net |
|
(1) |
|
|
12 |
|
|
|
||
Income (loss) before income taxes |
|
126 |
|
|
(1,483) |
|
|
NM |
||
Income tax provision (benefit) |
|
37 |
|
|
(204) |
|
|
|
||
Net income (loss) |
|
$ |
89 |
|
|
$ |
(1,279) |
|
|
NM |
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
||||
Basic |
|
424.9 |
|
|
423.8 |
|
|
|
||
Diluted |
|
427.6 |
|
|
423.8 |
|
|
|
||
Earnings (loss) per share: |
|
|
|
|
|
|
||||
Basic |
|
$ |
0.21 |
|
|
$ |
(3.02) |
|
|
|
Diluted |
|
$ |
0.21 |
|
|
$ |
(3.02) |
|
|
|
|
|
|
|
|
|
|
||||
Dividends per share |
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
||||
* NM - NOT MEANINGFUL |
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in millions) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
682 |
|
|
$ |
981 |
|
Accounts receivable, net |
1,530 |
|
|
1,678 |
|
||
Inventories |
1,901 |
|
|
1,638 |
|
||
Prepaid expenses and other current assets |
272 |
|
|
331 |
|
||
Total current assets |
4,385 |
|
|
4,628 |
|
||
Property, plant and equipment, net |
1,151 |
|
|
1,176 |
|
||
Operating lease assets |
513 |
|
|
530 |
|
||
|
3,525 |
|
|
3,553 |
|
||
Other intangible assets, net |
3,506 |
|
|
3,564 |
|
||
Deferred income taxes |
843 |
|
|
838 |
|
||
Other assets |
417 |
|
|
411 |
|
||
TOTAL ASSETS |
$ |
14,340 |
|
|
$ |
14,700 |
|
Liabilities and stockholders' equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
1,501 |
|
|
$ |
1,526 |
|
Accrued compensation |
165 |
|
|
236 |
|
||
Other accrued liabilities |
1,340 |
|
|
1,393 |
|
||
Short-term debt and current portion of long-term debt |
357 |
|
|
466 |
|
||
Total current liabilities |
3,363 |
|
|
3,621 |
|
||
Long-term debt |
5,135 |
|
|
5,141 |
|
||
Deferred income taxes |
438 |
|
|
414 |
|
||
Operating lease liabilities |
458 |
|
|
472 |
|
||
Other noncurrent liabilities |
1,085 |
|
|
1,152 |
|
||
Total liabilities |
10,479 |
|
|
10,800 |
|
||
|
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Total stockholders' equity attributable to parent |
3,836 |
|
|
3,874 |
|
||
Total stockholders' equity attributable to noncontrolling interests |
25 |
|
|
26 |
|
||
Total stockholders' equity |
3,861 |
|
|
3,900 |
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
14,340 |
|
|
$ |
14,700 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in millions) |
|||||||
|
Three Months Ended |
||||||
|
2021 |
|
2020 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
89 |
|
|
$ |
(1,279) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
86 |
|
|
91 |
|
||
Impairment of goodwill, intangibles and other assets |
— |
|
|
1,475 |
|
||
Deferred income taxes |
1 |
|
|
(234) |
|
||
Stock based compensation expense |
14 |
|
|
8 |
|
||
Loss on change in fair value of investments |
— |
|
|
3 |
|
||
Changes in operating accounts: |
|
|
|
||||
Accounts receivable |
122 |
|
|
369 |
|
||
Inventories |
(283) |
|
|
(142) |
|
||
Accounts payable |
(18) |
|
|
(49) |
|
||
Accrued liabilities and other |
(36) |
|
|
(219) |
|
||
Net cash provided by (used in) operating activities |
(25) |
|
|
23 |
|
||
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
(54) |
|
|
(58) |
|
||
Other investing activities, net |
— |
|
|
2 |
|
||
Net cash used in investing activities |
(54) |
|
|
(56) |
|
||
Cash flows from financing activities: |
|
|
|
||||
Net proceeds from short-term debt |
— |
|
|
305 |
|
||
Payments on current portion of long-term debt |
(94) |
|
|
— |
|
||
Payments on long-term debt |
(6) |
|
|
(16) |
|
||
Cash dividends |
(100) |
|
|
(99) |
|
||
Equity compensation activity and other, net |
(39) |
|
|
(17) |
|
||
Net cash provided by (used in) financing activities |
(239) |
|
|
173 |
|
||
Exchange rate effect on cash, cash equivalents and restricted cash |
(14) |
|
|
(24) |
|
||
Increase (decrease) in cash, cash equivalents and restricted cash |
(332) |
|
|
116 |
|
||
Cash, cash equivalents and restricted cash at beginning of period |
1,021 |
|
|
371 |
|
||
Cash, cash equivalents and restricted cash at end of period |
$ |
689 |
|
|
$ |
487 |
|
Supplemental disclosures: |
|
|
|
||||
Restricted cash at beginning of period |
$ |
40 |
|
|
$ |
22 |
|
Restricted cash at end of period |
7 |
|
|
11 |
|
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED) CERTAIN LINE ITEMS (Amounts in millions, except per share data) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Restructuring |
|
Acquisition |
|
Transaction |
|
Non-GAAP |
||||||||||
|
|
Measure |
|
and restructuring |
|
amortization and |
|
costs and |
|
Measure |
||||||||||
|
|
Reported |
|
related costs |
|
impairment |
|
other |
|
Normalized* |
||||||||||
Net sales |
|
$ |
2,288 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,288 |
|
Cost of products sold |
|
1,557 |
|
|
(5) |
|
|
— |
|
|
(1) |
|
|
1,551 |
|
|||||
Gross profit |
|
731 |
|
|
5 |
|
|
— |
|
|
1 |
|
|
737 |
|
|||||
|
|
31.9 |
% |
|
|
|
|
|
|
|
32.2 |
% |
||||||||
Selling, general and administrative expenses |
|
534 |
|
|
(3) |
|
|
(21) |
|
|
(3) |
|
|
507 |
|
|||||
|
|
23.3 |
% |
|
|
|
|
|
|
|
22.2 |
% |
||||||||
Restructuring costs, net |
|
5 |
|
|
(5) |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Impairment of goodwill, intangibles and other assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Operating income |
|
192 |
|
|
13 |
|
|
21 |
|
|
4 |
|
|
230 |
|
|||||
|
|
8.4 |
% |
|
|
|
|
|
|
|
10.1 |
% |
||||||||
Non-operating (income) expense |
|
66 |
|
|
— |
|
|
— |
|
|
(1) |
|
|
65 |
|
|||||
Income before income taxes |
|
126 |
|
|
13 |
|
|
21 |
|
|
5 |
|
|
165 |
|
|||||
Income tax provision (benefit) [4] |
|
37 |
|
|
3 |
|
|
4 |
|
|
(7) |
|
|
37 |
|
|||||
Net income |
|
$ |
89 |
|
|
$ |
10 |
|
|
$ |
17 |
|
|
$ |
12 |
|
|
$ |
128 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share ** |
|
$ |
0.21 |
|
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.30 |
|
* | Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. | |
** | Adjustments and normalized earnings per share are calculated based on diluted weighted average shares of 427.6 million shares for the three months ended |
|
Totals may not add due to rounding. | ||
[1] |
Restructuring and restructuring related costs of |
|
[2] |
Acquisition amortization costs of |
|
[3] |
Other charges of |
|
[4] |
The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense. |
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED) CERTAIN LINE ITEMS (Amounts in millions, except per share data) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Restructuring |
|
Acquisition |
|
Transaction |
|
Non-GAAP |
||||||||||
|
|
Measure |
|
and |
|
amortization |
|
costs and |
|
Measure |
||||||||||
|
|
Reported |
|
related costs |
|
impairment |
|
other |
|
Normalized* |
||||||||||
Net sales |
|
$ |
1,886 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,886 |
|
Cost of products sold |
|
1,269 |
|
|
— |
|
|
— |
|
|
(2) |
|
|
1,267 |
|
|||||
Gross profit |
|
617 |
|
|
— |
|
|
— |
|
|
2 |
|
|
619 |
|
|||||
|
|
32.7 |
% |
|
|
|
|
|
|
|
32.8 |
% |
||||||||
Selling, general and administrative expenses |
|
548 |
|
|
(4) |
|
|
(31) |
|
|
(7) |
|
|
506 |
|
|||||
|
|
29.1 |
% |
|
|
|
|
|
|
|
26.8 |
% |
||||||||
Restructuring costs, net |
|
2 |
|
|
(2) |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Impairment of goodwill, intangibles and other assets |
|
1,475 |
|
|
— |
|
|
(1,475) |
|
|
— |
|
|
— |
|
|||||
Operating income (loss) |
|
(1,408) |
|
|
6 |
|
|
1,506 |
|
|
9 |
|
|
113 |
|
|||||
|
|
(74.7) |
% |
|
|
|
|
|
|
|
6.0 |
% |
||||||||
Non-operating (income) expense |
|
75 |
|
|
— |
|
|
— |
|
|
(4) |
|
|
71 |
|
|||||
Income (loss) before income taxes |
|
(1,483) |
|
|
6 |
|
|
1,506 |
|
|
13 |
|
|
42 |
|
|||||
Income tax provision (benefit) [4] |
|
(204) |
|
|
1 |
|
|
229 |
|
|
(23) |
|
|
3 |
|
|||||
Net income (loss) |
|
$ |
(1,279) |
|
|
$ |
5 |
|
|
$ |
1,277 |
|
|
$ |
36 |
|
|
$ |
39 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per share ** |
|
$ |
(3.02) |
|
|
$ |
0.01 |
|
|
$ |
3.01 |
|
|
$ |
0.08 |
|
|
$ |
0.09 |
|
* | Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. | |
** | Adjustments and normalized earnings per share are calculated based on diluted weighted average shares of 424.9 million shares for the three months ended |
|
Totals may not add due to rounding. | ||
[1] |
Restructuring and restructuring related costs of |
|
[2] |
Acquisition amortization costs of |
|
[3] |
Other charges of |
|
[4] |
The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense. |
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED) FINANCIAL WORKSHEET - SEGMENT REPORTING (Amounts in millions) |
|||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|
Year over year changes |
||||||||||||||||||||||||||||||||||||||||
|
Reported |
Reported |
|
Normalized |
Normalized |
|
|
Reported |
Reported |
|
Normalized |
Normalized |
|
|
|
|
Normalized Operating |
||||||||||||||||||||||||||||
|
Operating |
Operating |
Excluded |
Operating |
Operating |
|
|
Operating |
Operating |
Excluded |
Operating |
Operating |
|
|
|
Income (Loss) |
|||||||||||||||||||||||||||||
|
Income |
Margin |
Items [1] |
Income |
Margin |
|
|
Income |
Margin |
Items [2] |
Income |
Margin |
|
$ |
% |
|
$ |
% |
|||||||||||||||||||||||||||
HOME |
$ |
360 |
|
$ |
3 |
|
0.8 |
% |
$ |
5 |
|
$ |
8 |
|
2.2 |
% |
|
$ |
261 |
|
$ |
(299) |
|
(114.6) |
% |
$ |
290 |
|
$ |
(9) |
|
(3.4) |
% |
|
$ |
99 |
|
37.9 |
% |
|
$ |
17 |
|
NM |
|
COMMERCIAL |
471 |
|
50 |
|
10.6 |
% |
3 |
|
53 |
|
11.3 |
% |
|
413 |
|
(272) |
|
(65.9) |
% |
323 |
|
51 |
|
12.3 |
% |
|
58 |
|
14.0 |
% |
|
2 |
|
3.9 |
% |
||||||||||
HOME SOLUTIONS |
504 |
|
61 |
|
12.1 |
% |
15 |
|
76 |
|
15.1 |
% |
|
377 |
|
(301) |
|
(79.8) |
% |
317 |
|
16 |
|
4.2 |
% |
|
127 |
|
33.7 |
% |
|
60 |
|
NM |
|||||||||||
LEARNING AND |
617 |
|
110 |
|
17.8 |
% |
4 |
|
114 |
|
18.5 |
% |
|
528 |
|
4 |
|
0.8 |
% |
82 |
|
86 |
|
16.3 |
% |
|
89 |
|
16.9 |
% |
|
28 |
|
32.6 |
% |
||||||||||
OUTDOOR AND |
336 |
|
15 |
|
4.5 |
% |
5 |
|
20 |
|
6.0 |
% |
|
307 |
|
(474) |
|
(154.4) |
% |
489 |
|
15 |
|
4.9 |
% |
|
29 |
|
9.4 |
% |
|
5 |
|
33.3 |
% |
||||||||||
CORPORATE |
— |
|
(47) |
|
— |
% |
6 |
|
(41) |
|
— |
% |
|
— |
|
(66) |
|
— |
% |
20 |
|
(46) |
|
— |
% |
|
— |
|
— |
% |
|
5 |
|
10.9 |
% |
||||||||||
|
$ |
2,288 |
|
$ |
192 |
|
8.4 |
% |
$ |
38 |
|
$ |
230 |
|
10.1 |
% |
|
$ |
1,886 |
|
$ |
(1,408) |
|
(74.7) |
% |
$ |
1,521 |
|
$ |
113 |
|
6.0 |
% |
|
$ |
402 |
|
21.3 |
% |
|
$ |
117 |
|
NM |
[1] |
The three months ended |
|
[2] |
The three months ended |
|
*NM - NOT MEANINGFUL |
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED) |
||||||||||||
|
Three Months Ended |
|||||||||||
|
|
Acquisitions, |
Currency |
Core Sales |
||||||||
HOME APPLIANCES |
37.9 |
% |
— |
% |
1.0 |
% |
38.9 |
% |
||||
COMMERCIAL SOLUTIONS |
14.0 |
% |
— |
% |
(1.1) |
% |
12.9 |
% |
||||
HOME SOLUTIONS |
33.7 |
% |
3.2 |
% |
(3.1) |
% |
33.8 |
% |
||||
LEARNING AND DEVELOPMENT |
16.9 |
% |
2.3 |
% |
(1.9) |
% |
17.3 |
% |
||||
OUTDOOR AND RECREATION |
9.4 |
% |
— |
% |
(2.4) |
% |
7.0 |
% |
||||
TOTAL COMPANY |
21.3 |
% |
1.3 |
% |
(1.7) |
% |
20.9 |
% |
CORE SALES GROWTH BY GEOGRAPHY |
||||||||||||
|
Three Months Ended |
|||||||||||
|
|
Acquisitions, |
Currency |
Core Sales |
||||||||
|
17.0 |
% |
1.8 |
% |
(0.4) |
% |
18.4 |
% |
||||
|
29.5 |
% |
— |
% |
(10.3) |
% |
19.2 |
% |
||||
|
23.3 |
% |
— |
% |
13.6 |
% |
36.9 |
% |
||||
|
43.5 |
% |
— |
% |
(10.2) |
% |
33.3 |
% |
||||
TOTAL COMPANY |
21.3 |
% |
1.3 |
% |
(1.7) |
% |
20.9 |
% |
[1] |
"Core Sales” provides a consistent basis for year-over-year comparisons in sales as it excludes the impacts of acquisitions, completed divestitures, retail store openings and closings, changes in foreign currency. | |
[2] |
Divestitures include the exit of the North American distributorship of Uniball® products, current and prior period net sales from retail store closures (consistent with standard retail practice), disposition of the foamboards business and exit from Home Fragrance fundraising business. | |
[3] |
“Currency Impact” represents the effect of foreign currency on 2021 reported sales and is calculated by applying the 2020 average monthly exchange rates to the current year local currency sales amounts (excluding acquisitions and divestitures) and comparing to 2021 reported sales. | |
[4] |
Totals may not add due to rounding. |
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED) NET DEBT TO NORMALIZED EBITDA FROM CONTINUING OPERATIONS RECONCILIATION (Amounts in millions) |
||||||||||||
|
|
|
|
|
|
|
||||||
NET DEBT RECONCILIATION: |
|
|
|
|
|
|
||||||
Short-term debt and current portion of long-term debt |
|
$ |
357 |
|
|
$ |
466 |
|
|
$ |
639 |
|
Long-term debt |
|
5,135 |
|
|
5,141 |
|
|
5,375 |
|
|||
Gross debt |
|
5,492 |
|
|
5,607 |
|
|
6,014 |
|
|||
Less: Cash and cash equivalents |
|
682 |
|
|
981 |
|
|
476 |
|
|||
NET DEBT |
|
$ |
4,810 |
|
|
$ |
4,626 |
|
|
$ |
5,538 |
|
|
|
|
|
|
|
|
||||||
Income (loss) from continuing operations [2] |
|
$ |
598 |
|
|
$ |
(770) |
|
|
$ |
(1,019) |
|
Normalized items [2] |
|
251 |
|
|
1,530 |
|
|
1,700 |
|
|||
PROFORMA NORMALIZED INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
849 |
|
|
760 |
|
|
681 |
|
|||
|
|
|
|
|
|
|
||||||
Proforma normalized income tax [2] |
|
24 |
|
|
(10) |
|
|
58 |
|
|||
Interest expense, net [2] |
|
278 |
|
|
274 |
|
|
286 |
|
|||
Proforma normalized depreciation and amortization [2] [3] |
|
244 |
|
|
245 |
|
|
248 |
|
|||
Stock-based compensation [4] |
|
47 |
|
|
41 |
|
|
44 |
|
|||
NORMALIZED EBITDA |
|
$ |
1,442 |
|
|
$ |
1,310 |
|
|
$ |
1,317 |
|
|
|
|
|
|
|
|
||||||
NET DEBT TO NORMALIZED EBITDA FROM CONTINUING OPERATIONS |
|
3.3 |
x |
|
3.5 |
x |
|
4.2 |
x |
[1] |
For the twelve months ended |
|
[2] |
For the trailing-twelve months ended |
|
[3] |
For the trailing-twelve months ended |
|
[4] |
Represents non-cash expense associated with stock-based compensation from continuing operations. | |
[5] |
The Net Debt to Normalized EBITDA from continuing operations ratio is defined as Net Debt divided by Normalized EBITDA from continuing operations. The Company's debt has certain financial covenants such as debt to equity ratio and interest coverage ratio; however the Net Debt to Normalized EBITDA from continuing operations leverage ratio is used by management as a liquidity measure and is not prescribed in the Company's debt covenants. |
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED) CORE SALES OUTLOOK |
|||||||
|
Three Months Ending |
|
Twelve Months Ending |
||||
Estimated net sales change (GAAP) |
18% |
to |
22% |
|
5% |
to |
8% |
Deduct: Estimated currency impact [1] and divestitures [2], net |
~ 1% |
to |
~ 2% |
|
~ 0% |
to |
~ 1% |
Core sales change (NON-GAAP) |
17% |
to |
20% |
|
5% |
to |
7% |
[1] |
“Currency Impact” represents the effect of foreign currency on 2021 reported sales and is calculated by applying the 2020 average monthly exchange rates to the current year local currency sales amounts (excluding acquisitions and divestitures) and comparing to 2021 reported sales. | |
[2] |
Divestitures include the exit of the North American distributorship of Uniball® products, current and prior period net sales from retail store closures (consistent with standard retail practice), disposition of the foamboards business and exit from Home Fragrance fundraising business. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005128/en/
Investor Contact:
VP, Investor Relations
+1 (201) 610-6901
sofya.tsinis@newellco.com
Media Contact:
VP, Corporate Communications, Events & Philanthropy
+1 (470) 580-1086
beth.stellato@newellco.com
Source: