Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 30, 2007
NEWELL RUBBERMAID INC.
(Exact Name of Registrant as Specified in Its Charter)
| Delaware (State or Other Jurisdiction of Incorporation) |
1-9608 (Commission File Number) |
36-3514169 (IRS Employer Identification No.) |
| 10 B Glenlake Parkway Suite 300 Atlanta, Georgia (Address of Principal Executive Offices) |
30328 (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (770) 407-3800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Table of Contents
Table of Contents
Item 2.02. Results of Operations and Financial Condition.
The information in this Item 2.02, and the Exhibit attached to this Report, are furnished pursuant
to Item 2.02 of Form 8-K. Consequently, such items are not deemed “filed” for the purposes of
Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that
section. Such items may only be incorporated by reference in another filing under the Exchange Act
or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.
On January 30, 2007, Newell Rubbermaid Inc. (the “Company”) reported its results for the fiscal
quarter and fiscal year ended December 31, 2006. The Company’s press release, dated January 30,
2007, and Additional Financial Information, is attached as Exhibit 99.1.
The press release and Additional Financial Information contain non-GAAP financial measures. For
purposes of Securities and Exchange Commission Regulation G, a “non-GAAP financial measure” is a
numerical measure of a registrant’s historical or future financial performance, financial position
or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding
amounts, that are included in the most directly comparable measure calculated and presented in
accordance with GAAP in the statement of income, balance sheet or statement of cash flows of the
issuer; or includes amounts, or is subject to adjustments that have the effect of including
amounts, that are excluded from the most directly comparable measure so calculated and presented.
Operating and statistical measures and certain ratios and other statistical measures are not
non-GAAP financial measures. For purposes of the definition, GAAP refers to generally accepted
accounting principles in the United States. Pursuant to the requirements of Regulation G, the
Company has provided, as a part of the press release and Additional Financial Information, a
reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP
financial measure.
The Company has used certain financial measures that are included in the press release and
Additional Financial Information both in presenting its results to stockholders and the investment
community and in its internal evaluation and management of its businesses. The Company’s management
believes that these measures — including those that are “non-GAAP financial measures” — and the
information they provide are useful to investors since these measures:
| • | enable investors and analysts to compare the current non-GAAP measures with the corresponding non-GAAP measures used in the past, and | ||
| • | permit investors to view the Company’s performance using the same tools that Company management uses to evaluate the Company’s past performance, reportable business segments and prospects for future performance and to gauge the Company’s progress in achieving its stated goals. |
The Company’s management believes that operating income, income from continuing operations and
diluted earnings per share from continuing operations, excluding restructuring charges related to
Project Acceleration and impairment charges, are also useful because they provide investors with a
meaningful perspective on the current underlying performance of the Company’s continuing
operations. The Company’s management believes that free cash flow, defined by the Company as cash
generated from operations less capital expenditures, is useful to investors because it is an
indication of amounts of cash flow that may be available for dividends and further investment in
future growth initiatives. Another purpose for which the Company uses diluted earnings per share
from continuing operations, excluding restructuring and impairment charges, is as a performance
goal that helps determine the amount, if any, of cash bonuses for corporate management employees
under the Company’s management cash bonus plan. The Company’s management believes that adjusted
sales, as reflected in the Currency Analysis included in Exhibit 99.1, is useful to investors
because it demonstrates the effect of foreign currency translation on reported sales. The
Company’s management believes that “Normalized” earnings per share, which excludes restructuring
and impairment charges, tax benefits, pension curtailment and certain one-time non-operating
benefits, and includes a proforma stock option expense for 2005, is useful
to investors because it permits investors to better understand year-over-year changes in underlying
operating performance.
While the Company believes that these non-GAAP financial measures are useful in evaluating the
Company, 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.
Item 7.01 Regulation FD Disclosure.
The information set forth under Item 2.02 above and in Exhibit 99.1 to this Report is also intended
to be furnished under this Item 7.01 and is hereby incorporated by reference.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
| Exhibit | ||
| Number | Description | |
| 99.1 | Press Release, dated January 30, 2007, issued by Newell Rubbermaid
Inc., and Additional Financial Information |
2
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NEWELL RUBBERMAID INC. |
||||
Date: January 30, 2007
|
By: | /s/ Dale L. Matschullat | ||
| Dale L. Matschullat
Vice President, General Counsel and Corporate Secretary |
||||
3
Table of Contents
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release, dated January 30, 2007, issued by Newell
Rubbermaid Inc., and Additional Financial Information |
4
|
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
|
|
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 | ||||||
|
|
News Release | |
| 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
|
|
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 at
www.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 at www.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
|
|
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
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 | % | |||||||||||||
| Q4 2006 Earnings Presentation January 30, 2007 |
| 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 |
| EPS Walk: Previous Guidance and Prior Year to FY 2006 1 1 2 1 2 |
| EPS Walk: FY 2005 and FY 2006 "Normalized" EPS 1 1 1 |
| FY 2006 Sales Growth Elements |
| EPS Walk: Previous Guidance and Prior Year to Q406 1 1 2 2 1 |
| FY 2007 Guidance 1 1 1 |
| EPS Walk: Q1 2007 Earnings Per Share Estimate 1 1 2 1 2 |
| Appendix |
| 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. |
| Reconciliation: FY 2005 and 2006 "Normalized" EPS 1 1 |
| Reconciliation: Q4 2005 and 2006 EPS |
| Reconciliation: Q1 2006 and 2007 EPS |