Newell Rubbermaid (NYSE: NWL) today announced second quarter 2009 financial results that exceeded the company’s guidance. The company reported strong operating cash flow and gross margin improvement and raised its guidance for full year 2009 normalized earnings and operating cash flow.
“Although business conditions remained challenging during the quarter, we were pleased and encouraged to deliver second quarter earnings and cash flow ahead of expectations,” said Mark Ketchum, president and chief executive officer of Newell Rubbermaid. “I'm particularly pleased with the improvement in gross margin, reflecting the benefits from our planned product exits as well as a more reasonable input cost environment compared with a year ago. We continued to actively manage our cost base and generated strong operating cash flow through a diligent focus on working capital management. Our success in managing what we can control through the first half of 2009 gives us confidence to judiciously increase our level of strategic SG&A investments in the second half of the year, supporting our brands with focused marketing spending and other strategic brand building activities, while still raising our guidance for full year normalized EPS and operating cash flow.”
Net sales declined 17.6 percent to $1.50 billion in the second quarter, compared to $1.83 billion in the prior year. The reported sales results are more favorable than the guidance of a 20 percent decline. Core sales were down approximately 8 percent, while planned product line exits and foreign currency translation reduced net sales by 6 percent and 4 percent, respectively.
Gross margin for the quarter was 37.1 percent, up 300 basis points from last year, as the positive impact from product line exits, lower input costs and 2008 pricing initiatives more than offset the effects of reduced manufacturing volumes and unfavorable mix.
Excluding Project Acceleration restructuring costs of $29.5 million in 2009 and $69.4 million in 2008, operating income was $229.0 million, or 15.2 percent of sales, in the second quarter 2009, compared to $230.3 million, or 12.6 percent of sales, in the prior year.
Normalized earnings, which exclude Project Acceleration restructuring costs, related impairment charges and associated tax effects, and other items, were $0.47 per diluted share, ahead of the company’s guidance and compared to $0.49 per diluted share in the second quarter 2008. Other items in the second quarter 2009 include dilution of $0.01 per diluted share related to the conversion feature of the convertible notes issued in March 2009 and one-time costs of $0.01 per diluted share incurred for the early retirement of $325 million principal amount of medium-term notes. (A reconciliation of the “as reported” results to “normalized” results is included below.)
Net income, as reported on a GAAP basis, was $105.7 million, or $0.37 per diluted share. This compares to $92.5 million, or $0.33 per diluted share, in the second quarter 2008.
The company generated operating cash flow of $99.2 million during the second quarter, driven by working capital management, compared to $1.9 million in the prior year. Capital expenditures were $38.3 million in the second quarter, approximately flat to last year.
A reconciliation of the second quarter 2009 and last year’s results is as follows:
Q2 2009 | Q2 2008 | |||
Diluted earnings per share (as reported): | $0.37 | $0.33 | ||
Project Acceleration restructuring costs and related impairment charges | $0.08 | $0.16 | ||
Other items | $0.02 | - | ||
"Normalized" EPS: | $0.47 | $0.49 |
Six Months Results
Net sales for the six months ended June 30, 2009 declined 16.9 percent to $2.71 billion, compared to $3.26 billion in the prior year. Internal sales, which exclude the effect of significant acquisitions, declined 18.5 percent for the six months. Foreign currency translation reduced net sales by 4 percent, while planned product line exits lowered net sales by 5 percent. Core sales softness contributed the remainder of the net sales decline.
Gross margin was 36.2 percent, a 200 basis point improvement versus the prior year. The positive impact from planned product line exits, lower input costs and 2008 pricing actions more than offset the effect of reduced production volumes and unfavorable mix.
Normalized earnings, which exclude Project Acceleration restructuring costs, related impairment charges and associated tax effects, and other items, were $0.67 per diluted share, compared to the prior year’s results of $0.75 per diluted share. Other items in the first six months of 2009 were the same as those for the second quarter 2009. (A reconciliation of the “as reported” results to “normalized” results is included below.)
Net income, as reported on a GAAP basis, was $139.4 million, or $0.49 per diluted share. This compares to $149.4 million, or $0.54 per diluted share, in the prior year.
The company generated operating cash flow of $88.0 million during the first six months of 2009, compared to a use of $121.3 million in the prior year. Capital expenditures were $70.7 million, compared to $78.2 million in the prior year.
A reconciliation of the first six months 2009 and last year’s results is as follows:
YTD Q2 2009 | YTD Q2 2008 | |||
Diluted earnings per share (as reported): | $0.49 | $0.54 | ||
Project Acceleration restructuring costs and related impairment charges | $0.16 | $0.21 | ||
Other items | $0.02 | - | ||
"Normalized" EPS: | $0.67 | $0.75 |
2009 Full Year Guidance
The company expects net sales for the full year will decline at the unfavorable end of the company’s guidance of down 10 to 15 percent. The company continues to expect a 4 to 6 percent sales decline from product line exits and now expects a 2 to 3 percent sales decline from foreign currency translation. Acquisitions are expected to contribute about 1 percent of sales growth. Core sales are expected to decline in the high single digit percent range.
The company is raising its guidance for normalized earnings to $1.15 to $1.30 per diluted share and is also raising its guidance for operating cash flow to approximately $500 million, which is net of approximately $100 million in restructuring cash payments.
2009 Third Quarter Guidance
The company anticipates net sales will decline in the high teens percent range for the third quarter 2009. Product line exits are projected to reduce sales by 6 to 8 percent, and foreign currency translation is expected to reduce sales by 2 to 4 percent. Core sales are expected to decline in the high single digit percent range.
The company expects normalized earnings of $0.25 to $0.35 per diluted share and operating cash flow of between $200 and $250 million.
A reconciliation of the third quarter and full year 2009 earnings outlook is as follows:
Q3 2009 | FY 2009 | |||
Diluted earnings per share: | $0.13 to $0.23 | $0.78 to $0.93 | ||
Project Acceleration restructuring costs and related impairment charges | $0.11 to $0.14 | $0.28 to $0.43 | ||
Other items | - | $0.02 | ||
"Normalized" EPS: | $0.25 to $0.35 | $1.15 to $1.30 |
Conference Call
The company’s second quarter 2009 earnings conference call is scheduled for today, July 30, 2009, at 10:00 am 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.
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 Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with sales of approximately $6 billion and a strong portfolio of brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Technical ConceptsTM and Aprica®.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
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 sales, income/(loss), earnings per share, operating income or gross margin improvements or declines, Project Acceleration, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, inflation, particularly with respect to commodities such as oil and resin, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "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, commercial and industrial sectors of the economy in light of the global economic slowdown; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; 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; our ability to refinance short-term debt on terms acceptable to us, particularly given the recent turmoil and uncertainty in the global credit markets; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations and those factors listed in the company’s most recent quarterly report on Form 10-Q, and exhibit 99.1 thereto, filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.
NWL-EA
Newell Rubbermaid Inc. | |||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||
Reconciliation of "As Reported" Results to "Normalized" Results | |||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||
2009 | 2008 |
YOY % | |||||||||||||||||||||||||
As Reported | Excluded Items (1) | Normalized | As Reported | Excluded Items (2) | Normalized | ||||||||||||||||||||||
Net sales | $ | 1,504.3 | $ | - | $ | 1,504.3 | $ | 1,825.1 | $ | - | $ | 1,825.1 | (17.6 | )% | |||||||||||||
Cost of products sold | 946.0 | - | 946.0 | 1,201.9 | - | 1,201.9 | |||||||||||||||||||||
GROSS MARGIN | 558.3 | - | 558.3 | 623.2 | - | 623.2 | (10.4 | )% | |||||||||||||||||||
% of sales | 37.1 | % | 37.1 | % | 34.1 | % | 34.1 | % | |||||||||||||||||||
Selling, general & administrative expenses | |||||||||||||||||||||||||||
329.3 | - | 329.3 | 392.9 | - | 392.9 | (16.2 | )% | ||||||||||||||||||||
% of sales | 21.9 | % | 21.9 | % | 21.5 | % | 21.5 | % | |||||||||||||||||||
Restructuring costs | 29.5 | (29.5 | ) | - | 69.4 | (69.4 | ) | - | |||||||||||||||||||
OPERATING INCOME | 199.5 | 29.5 | 229.0 | 160.9 | 69.4 | 230.3 | (0.6 | )% | |||||||||||||||||||
% of sales | 13.3 | % | 15.2 | % | 8.8 | % | 12.6 | % | |||||||||||||||||||
Nonoperating expenses: | |||||||||||||||||||||||||||
Interest expense, net | 40.3 | - | 40.3 | 38.7 | - | 38.7 | |||||||||||||||||||||
Other expense (income), net | 1.2 | (4.7 | ) | (3.5 | ) | 0.4 | - | 0.4 | |||||||||||||||||||
41.5 | (4.7 | ) | 36.8 | 39.1 | - | 39.1 | (5.9 | )% | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 158.0 | 34.2 | 192.2 | 121.8 | 69.4 | 191.2 | 0.5 | % | |||||||||||||||||||
% of sales | 10.5 | % | 12.8 | % | 6.7 | % | 10.5 | % | |||||||||||||||||||
Income taxes | 52.3 | 8.0 | 60.3 | 28.9 | 25.5 | 54.4 | 10.8 | % | |||||||||||||||||||
Effective rate | 33.1 | % | 31.4 | % | 23.7 | % | 28.5 | % | |||||||||||||||||||
NET INCOME | 105.7 | 26.2 | 131.9 | 92.9 | 43.9 | 136.8 | |||||||||||||||||||||
NET INCOME NONCONTROLLING INTERESTS | - | - | - | 0.4 | - | 0.4 | |||||||||||||||||||||
NET INCOME CONTROLLING INTEREST | $ | 105.7 | $ | 26.2 | $ | 131.9 | $ | 92.5 | $ | 43.9 | $ | 136.4 | (3.3 | )% | |||||||||||||
% of sales | 7.0 | % | 8.8 | % | 5.1 | % | 7.5 | % | |||||||||||||||||||
EARNINGS PER SHARE: | |||||||||||||||||||||||||||
Basic | $ | 0.38 | $ | 0.09 | $ | 0.47 | $ | 0.33 | $ | 0.16 | $ | 0.49 | |||||||||||||||
Diluted | $ | 0.37 | $ | 0.10 | $ | 0.47 | $ | 0.33 | $ | 0.16 | $ | 0.49 | |||||||||||||||
AVERAGE SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Basic | 280.8 | 280.8 | 280.0 | 280.0 | |||||||||||||||||||||||
Diluted | 286.8 | 290.1 | 280.0 | 288.3 | |||||||||||||||||||||||
(1) Items excluded from "normalized" results for 2009 consist of $29.5 million of restructuring costs, including asset impairment charges and employee termination and other costs, $4.7 million of debt extinguishment charges, and the associated tax effects, as well as the dilutive impact of the convertible notes issued in the first quarter of 2009. | |||||||||||||||||||||||||||
(2) Items excluded from "normalized" results for 2008 consist of $69.4 million of restructuring costs, including asset impairment charges and employee termination and other costs, and the associated tax effects. | |||||||||||||||||||||||||||
Newell Rubbermaid Inc. | |||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||
Reconciliation of "As Reported" Results to "Normalized" Results | |||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||
2009 | 2008 |
YOY % | |||||||||||||||||||||||||
As Reported | Excluded Items (1) | Normalized | As Reported | Excluded Items (2) | Normalized | ||||||||||||||||||||||
Net sales | $ | 2,708.2 | $ | - | $ | 2,708.2 | $ | 3,258.8 | $ | - | $ | 3,258.8 | (16.9 | )% | |||||||||||||
Cost of products sold | 1,727.1 | - | 1,727.1 | 2,145.1 | - | 2,145.1 | |||||||||||||||||||||
GROSS MARGIN | 981.1 | - | 981.1 | 1,113.7 | - | 1,113.7 | (11.9 | )% | |||||||||||||||||||
% of sales | 36.2 | % | 36.2 | % | 34.2 | % | 34.2 | % | |||||||||||||||||||
Selling, general & administrative expenses | |||||||||||||||||||||||||||
640.8 | - | 640.8 | 753.9 | - | 753.9 | (15.0 | )% | ||||||||||||||||||||
% of sales | 23.7 | % | 23.7 | % | 23.1 | % | 23.1 | % | |||||||||||||||||||
Restructuring costs | 60.0 | (60.0 | ) | - | 87.8 | (87.8 | ) | - | |||||||||||||||||||
OPERATING INCOME | 280.3 | 60.0 | 340.3 | 272.0 | 87.8 | 359.8 | (5.4 | )% | |||||||||||||||||||
% of sales | 10.4 | % | 12.6 | % | 8.3 | % | 11.0 | % | |||||||||||||||||||
Nonoperating expenses: | |||||||||||||||||||||||||||
Interest expense, net | 70.9 | - | 70.9 | 64.5 | - | 64.5 | |||||||||||||||||||||
Other expense (income), net | 1.9 | (4.7 | ) | (2.8 | ) | 0.2 | - | 0.2 | |||||||||||||||||||
72.8 | (4.7 | ) | 68.1 | 64.7 | - | 64.7 | 5.3 | % | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 207.5 | 64.7 | 272.2 | 207.3 | 87.8 | 295.1 | (7.8 | )% | |||||||||||||||||||
% of sales | 7.7 | % | 10.1 | % | 6.4 | % | 9.1 | % | |||||||||||||||||||
Income taxes | 68.1 | 16.7 | 84.8 | 56.6 | 27.3 | 83.9 | 1.1 | % | |||||||||||||||||||
Effective rate | 32.8 | % | 31.2 | % | 27.3 | % | 28.4 | % | |||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 139.4 | 48.0 | 187.4 | 150.7 | 60.5 | 211.2 | (11.3 | )% | |||||||||||||||||||
Discontinued operations, net of tax: | |||||||||||||||||||||||||||
Net loss | - | - | - | (0.5 | ) | 0.5 | - | ||||||||||||||||||||
NET INCOME | 139.4 | 48.0 | 187.4 | 150.2 | 61.0 | 211.2 | |||||||||||||||||||||
NET INCOME NONCONTROLLING INTERESTS | - | - | - | 0.8 | - | 0.8 | |||||||||||||||||||||
NET INCOME CONTROLLING INTEREST | $ | 139.4 | $ | 48.0 | $ | 187.4 | $ | 149.4 | $ | 61.0 | $ | 210.4 | (10.9 | )% | |||||||||||||
% of sales | 5.1 | % | 6.9 | % | 4.6 | % | 6.5 | % | |||||||||||||||||||
EARNINGS PER SHARE FROM | |||||||||||||||||||||||||||
CONTINUING OPERATIONS: | |||||||||||||||||||||||||||
Basic | $ | 0.50 | $ | 0.17 | $ | 0.67 | $ | 0.54 | $ | 0.21 | $ | 0.75 | |||||||||||||||
Diluted | $ | 0.49 | $ | 0.18 | $ | 0.67 | $ | 0.54 | $ | 0.21 | $ | 0.75 | |||||||||||||||
LOSS PER SHARE FROM | |||||||||||||||||||||||||||
DISCONTINUED OPERATIONS: | |||||||||||||||||||||||||||
Basic | $ | - | $ | - | $ | - | $ | (0.00 | ) | $ | 0.00 | $ | - | ||||||||||||||
Diluted | $ | - | $ | - | $ | - | $ | (0.00 | ) | $ | 0.00 | $ | - | ||||||||||||||
EARNINGS PER SHARE: | |||||||||||||||||||||||||||
Basic | $ | 0.50 | $ | 0.17 | $ | 0.67 | $ | 0.54 | $ | 0.21 | $ | 0.75 | |||||||||||||||
Diluted | $ | 0.49 | $ | 0.18 | $ | 0.67 | $ | 0.54 | $ | 0.21 | $ | 0.75 | |||||||||||||||
AVERAGE SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Basic | 280.7 | 280.7 | 279.8 | 279.8 | |||||||||||||||||||||||
Diluted | 283.7 | 281.2 | 279.8 | 279.8 | |||||||||||||||||||||||
(1) Items excluded from "normalized" results for 2009 consist of $60.0 million of restructuring costs, including asset impairment charges and employee termination and other costs, $4.7 million of debt extinguishment charges, and the associated tax effects, as well as the dilutive impact of the convertible notes issued in the first quarter of 2009. | |||||||||||||||||||||||||||
(2) Items excluded from "normalized" results for 2008 consist of $87.8 million of restructuring costs, including asset impairment charges and employee termination and other costs, and the associated tax effects. | |||||||||||||||||||||||||||
Newell Rubbermaid Inc. | |||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(in millions) | |||||||
June 30, | June 30, | ||||||
Assets: | 2009 | 2008 (1) | |||||
Cash and cash equivalents | $ | 418.1 | $ | 211.4 | |||
Accounts receivable, net | 1,096.2 | 1,312.7 | |||||
Inventories, net | 848.4 | 1,141.3 | |||||
Deferred income taxes | 129.6 | 109.6 | |||||
Prepaid expenses and other | 110.5 | 137.1 | |||||
Total Current Assets | 2,602.8 | 2,912.1 | |||||
Property, plant and equipment, net | 603.1 | 675.3 | |||||
Deferred income taxes | 15.9 | - | |||||
Goodwill | 2,722.0 | 3,087.1 | |||||
Other intangible assets, net | 645.6 | 657.0 | |||||
Other assets | 326.8 | 232.1 | |||||
Total Assets | $ | 6,916.2 | $ | 7,563.6 | |||
Liabilities and Stockholders' Equity: | |||||||
Accounts payable | $ | 460.8 | $ | 656.8 | |||
Accrued compensation | 111.8 | 108.4 | |||||
Other accrued liabilities | 659.2 | 850.4 | |||||
Income taxes payable | - | 12.0 | |||||
Notes payable | 7.1 | 28.0 | |||||
Current portion of long-term debt | 627.1 | 1,065.8 | |||||
Total Current Liabilities | 1,866.0 | 2,721.4 | |||||
Long-term debt | 2,393.5 | 1,959.8 | |||||
Deferred income taxes | - | 1.4 | |||||
Other non-current liabilities | 873.9 | 602.0 | |||||
Stockholders' Equity - Parent | 1,779.2 | 2,275.2 | |||||
Stockholders' Equity - Noncontrolling Interests | 3.6 | 3.8 | |||||
Total Stockholders' Equity | 1,782.8 | 2,279.0 | |||||
Total Liabilities and Stockholders' Equity | $ | 6,916.2 | $ | 7,563.6 | |||
(1) The June 30, 2008 Consolidated Balance Sheet reflects the retrospective adoption of certain accounting pronouncements which resulted in the reclassification of $3.8 million from Other non-current liabilities to Stockholders' Equity-Noncontrolling Interests as well as a reclassification to increase Other accrued liabilities by $28.2 million with a corresponding reduction in Stockholders' Equity-Parent. | |||||||
Newell Rubbermaid Inc. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) | |||||||
(in millions) | |||||||
Six Months Ended June 30, | |||||||
2009 | 2008 | ||||||
Operating Activities: | |||||||
Net income | $ | 139.4 | $ | 149.4 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 83.9 | 91.0 | |||||
Deferred income taxes | 14.8 | 29.1 | |||||
Non-cash restructuring costs | 13.3 | 46.4 | |||||
Gain on sale of assets | (1.0 | ) | - | ||||
Stock-based compensation expense | 16.6 | 16.9 | |||||
Loss on disposal of discontinued operations | - | 0.5 | |||||
Other | 13.9 | 0.8 | |||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||
Accounts receivable | (115.3 | ) | (87.7 | ) | |||
Inventories | 78.3 | (132.8 | ) | ||||
Accounts payable | (77.8 | ) | (8.4 | ) | |||
Accrued liabilities and other | (78.1 | ) | (224.6 | ) | |||
Discontinued operations | - | (1.9 | ) | ||||
Net cash provided by (used in) operating activities | $ | 88.0 | $ | (121.3 | ) | ||
Investing Activities: | |||||||
Acquisitions, net of cash acquired | $ | (12.1 | ) | $ | (644.1 | ) | |
Capital expenditures | (70.7 | ) | (78.2 | ) | |||
Proceeds from sale of non-current assets | 5.7 | 0.5 | |||||
Net cash used in investing activities | $ | (77.1 | ) | $ | (721.8 | ) | |
Financing Activities: | |||||||
Proceeds from issuance of debt, net of debt issuance costs | $ | 759.8 | $ | 919.7 | |||
Proceeds from issuance of warrants | 32.7 | - | |||||
Purchase of call options | (69.0 | ) | - | ||||
Payments on notes payable and debt | (517.2 | ) | (81.7 | ) | |||
Cash dividends | (43.4 | ) | (117.4 | ) | |||
Purchase of noncontrolling interests in consolidated subsidiaries | (29.0 | ) | - | ||||
Other, net | (4.1 | ) | 0.2 | ||||
Net cash provided by financing activities | $ | 129.8 | $ | 720.8 | |||
Currency rate effect on cash and cash equivalents | $ | 2.0 | $ | 4.5 | |||
Increase (decrease) in cash and cash equivalents | $ | 142.7 | $ | (117.8 | ) | ||
Cash and cash equivalents at beginning of period | 275.4 | 329.2 | |||||
Cash and cash equivalents at end of period | $ | 418.1 | $ | 211.4 | |||
Newell Rubbermaid Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Worksheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation (1) | Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
Reported |
Excluded |
Normalized | Operating Margin | Net Sales |
Reported |
Excluded Items |
Normalized OI |
Operating | Net Sales | Normalized OI (2) | |||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Q1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home & Family | $ | 557.7 | $ | 60.3 | $ | - | $ | 60.3 | 10.8 | % | $ | 608.2 | $ | 53.4 | $ | - | $ | 53.4 | 8.8 | % | $ | (50.5 | ) | (8.3 | )% | $ | 6.9 | 12.9 | % | |||||||||||||||||||||||||
Office Products | 318.2 | 31.1 | - | 31.1 | 9.8 | % | 418.3 | 33.9 | - | 33.9 | 8.1 | % | (100.1 | ) | (23.9 | )% | (2.8 | ) | (8.3 | )% | ||||||||||||||||||||||||||||||||||
Tools, Hardware & Commercial Products | 328.0 | 38.0 | - | 38.0 | 11.6 | % | 407.2 | 61.0 | - | 61.0 | 15.0 | % | (79.2 | ) | (19.4 | )% | (23.0 | ) | (37.7 | )% | ||||||||||||||||||||||||||||||||||
Restructuring Costs | (30.5 | ) | 30.5 | - | (18.4 | ) | 18.4 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (18.1 | ) | - | (18.1 | ) | (18.8 | ) | - | (18.8 | ) | 0.7 | 3.7 | % | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,203.9 | $ | 80.8 | $ | 30.5 | $ | 111.3 | 9.2 | % | $ | 1,433.7 | $ | 111.1 | $ | 18.4 | $ | 129.5 | 9.0 | % | $ | (229.8 | ) | (16.0 | )% | $ | (18.2 | ) | (14.1 | )% | ||||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation (1) | Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
Reported OI |
Excluded Items |
Normalized OI |
Operating Margin | Net Sales |
Reported OI |
Excluded Items |
Normalized OI |
Operating Margin | Net Sales | Normalized OI (2) | |||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Q2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home & Family | $ | 617.2 | $ | 80.4 | $ | - | $ | 80.4 | 13.0 | % | $ | 717.6 | $ | 69.6 | $ | - | $ | 69.6 | 9.7 | % | $ | (100.4 | ) | (14.0 | )% | $ | 10.8 | 15.5 | % | |||||||||||||||||||||||||
Office Products | 496.9 | 99.2 | - | 99.2 | 20.0 | % | 609.2 | 101.7 | - | 101.7 | 16.7 | % | (112.3 | ) | (18.4 | )% | (2.5 | ) | (2.5 | )% | ||||||||||||||||||||||||||||||||||
Tools, Hardware & Commercial Products | 390.2 | 67.6 | - | 67.6 | 17.3 | % | 498.3 | 80.2 | - | 80.2 | 16.1 | % | (108.1 | ) | (21.7 | )% | (12.6 | ) | (15.7 | )% | ||||||||||||||||||||||||||||||||||
Restructuring Costs | (29.5 | ) | 29.5 | - | (69.4 | ) | 69.4 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (18.2 | ) | - | (18.2 | ) | (21.2 | ) | - | (21.2 | ) | 3.0 | 14.2 | % | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,504.3 | $ | 199.5 | $ | 29.5 | $ | 229.0 | 15.2 | % | $ | 1,825.1 | $ | 160.9 | $ | 69.4 | $ | 230.3 | 12.6 | % | $ | (320.8 | ) | (17.6 | )% | $ | (1.3 | ) | (0.6 | )% | ||||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation (1) | Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
Reported OI |
Excluded Items |
Normalized OI |
Operating Margin | Net Sales |
Reported OI |
Excluded Items |
Normalized OI |
Operating Margin | Net Sales | Normalized OI (2) | |||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
YTD: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home & Family | $ | 1,174.9 | $ | 140.7 | $ | - | $ | 140.7 | 12.0 | % | $ | 1,325.8 | $ | 123.0 | $ | - | $ | 123.0 | 9.3 | % | $ | (150.9 | ) | (11.4 | )% | $ | 17.7 | 14.4 | % | |||||||||||||||||||||||||
Office Products | 815.1 | 130.3 | - | 130.3 | 16.0 | % | 1,027.5 | 135.6 | - | 135.6 | 13.2 | % | (212.4 | ) | (20.7 | )% | (5.3 | ) | (3.9 | )% | ||||||||||||||||||||||||||||||||||
Tools, Hardware & Commercial Products | 718.2 | 105.6 | - | 105.6 | 14.7 | % | 905.5 | 141.2 | - | 141.2 | 15.6 | % | (187.3 | ) | (20.7 | )% | (35.6 | ) | (25.2 | )% | ||||||||||||||||||||||||||||||||||
Restructuring Costs | (60.0 | ) | 60.0 | - | (87.8 | ) | 87.8 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (36.3 | ) | - | (36.3 | ) | (40.0 | ) | - | (40.0 | ) | 3.7 | 9.3 | % | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,708.2 | $ | 280.3 | $ | 60.0 | $ | 340.3 | 12.6 | % | $ | 3,258.8 | $ | 272.0 | $ | 87.8 | $ | 359.8 | 11.0 | % | $ | (550.6 | ) | (16.9 | )% | $ | (19.5 | ) | (5.4 | )% | ||||||||||||||||||||||||
(1) Excluded items are related to restructuring charges. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Excluding restructuring charges. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newell Rubbermaid Inc. | ||||||||
Calculation of Free Cash Flow (1) | ||||||||
Three Months Ended June 30, | ||||||||
Free Cash Flow (in millions): | 2009 | 2008 | ||||||
Net cash provided by operating activities | $ | 99.2 | $ | 1.9 | ||||
Capital expenditures | (38.3 | ) | (38.2 | ) | ||||
Free Cash Flow | $ | 60.9 | $ | (36.3 | ) | |||
Six Months Ended June 30, | ||||||||
Free Cash Flow (in millions): | 2009 | 2008 | ||||||
Net cash provided by (used in) operating activities | $ | 88.0 | $ | (121.3 | ) | |||
Capital expenditures | (70.7 | ) | (78.2 | ) | ||||
Free Cash Flow | $ | 17.3 | $ | (199.5 | ) | |||
(1) Free Cash Flow is defined as cash flow provided by (used in) operating activities less capital expenditures. | ||||||||
Newell Rubbermaid Inc. | |||||||||||||||||||||
Three Months Ended June 30, 2009 | |||||||||||||||||||||
In Millions | |||||||||||||||||||||
Currency Analysis | |||||||||||||||||||||
By Segment | 2009 | 2008 | Year-Over-Year (Decrease) Increase | ||||||||||||||||||
Sales as Reported | Currency Impact | Adjusted Sales | Sales as Reported | Excluding Currency | Including Currency | Currency Impact | |||||||||||||||
Home & Family | $ | 617.2 | $ | 16.9 | $ | 634.1 | $ | 717.6 | (11.6 | )% | (14.0 | )% | (2.4 | )% | |||||||
Office Products | 496.9 | 34.6 | 531.5 | 609.2 | (12.8 | )% | (18.4 | )% | (5.7 | )% | |||||||||||
Tools, Hardware & Commercial Products | 390.2 | 20.2 | 410.4 | 498.3 | (17.6 | )% | (21.7 | )% | (4.1 | )% | |||||||||||
Total Company | $ | 1,504.3 | $ | 71.7 | $ | 1,576.0 | $ | 1,825.1 | (13.6 | )% | (17.6 | )% | (3.9 | )% | |||||||
By Geography | |||||||||||||||||||||
United States | $ | 1,071.7 | $ | - | $ | 1,071.7 | $ | 1,247.6 | (14.1 | )% | (14.1 | )% | 0.0 | % | |||||||
Canada | 85.5 | 14.5 | 100.0 | 116.6 | (14.2 | )% | (26.7 | )% | (12.4 | )% | |||||||||||
1,157.2 | 14.5 | 1,171.7 | 1,364.2 | (14.1 | )% | (15.2 | )% | (1.1 | )% | ||||||||||||
Europe, Middle East, and Africa | 208.8 | 41.4 | 250.2 | 290.0 | (13.7 | )% | (28.0 | )% | (14.3 | )% | |||||||||||
Latin America | 61.7 | 10.7 | 72.4 | 71.4 | 1.4 | % | (13.6 | )% | (15.0 | )% | |||||||||||
Asia Pacific | 76.6 | 5.1 | 81.7 | 99.5 | (17.9 | )% | (23.0 | )% | (5.1 | )% | |||||||||||
Total Company | $ | 1,504.3 | $ | 71.7 | $ | 1,576.0 | $ | 1,825.1 | (13.6 | )% | (17.6 | )% | (3.9 | )% | |||||||
Newell Rubbermaid Inc. | |||||||||||||||||||||
Six Months Ended June 30, 2009 | |||||||||||||||||||||
In Millions | |||||||||||||||||||||
Currency Analysis | |||||||||||||||||||||
By Segment | 2009 | 2008 | Year-Over-Year (Decrease) Increase | ||||||||||||||||||
Sales as Reported | Currency Impact | Adjusted Sales | Sales as Reported | Excluding Currency | Including Currency | Currency Impact | |||||||||||||||
Home & Family | $ | 1,174.9 | $ | 35.7 | $ | 1,210.6 | $ | 1,325.8 | (8.7 | )% | (11.4 | )% | (2.7 | )% | |||||||
Office Products | 815.1 | 65.7 | 880.8 | 1,027.5 | (14.3 | )% | (20.7 | )% | (6.4 | )% | |||||||||||
Tools, Hardware & Commercial Products | 718.2 | 39.9 | 758.1 | 905.5 | (16.3 | )% | (20.7 | )% | (4.4 | )% | |||||||||||
Total Company | $ | 2,708.2 | $ | 141.3 | $ | 2,849.5 | $ | 3,258.8 | (12.6 | )% | (16.9 | )% | (4.3 | )% | |||||||
By Geography | |||||||||||||||||||||
United States | $ | 1,933.0 | $ | - | $ | 1,933.0 | $ | 2,246.0 | (13.9 | )% | (13.9 | )% | 0.0 | % | |||||||
Canada | 147.0 | 29.8 | 176.8 | 205.7 | (14.0 | )% | (28.5 | )% | (14.5 | )% | |||||||||||
2,080.0 | 29.8 | 2,109.8 | 2,451.7 | (13.9 | )% | (15.2 | )% | (1.2 | )% | ||||||||||||
Europe, Middle East, and Africa | 368.4 | 75.9 | 444.3 | 517.8 | (14.2 | )% | (28.9 | )% | (14.7 | )% | |||||||||||
Latin America | 115.4 | 23.4 | 138.8 | 132.6 | 4.7 | % | (13.0 | )% | (17.6 | )% | |||||||||||
Asia Pacific | 144.4 | 12.2 | 156.6 | 156.7 | (0.1 | )% | (7.8 | )% | (7.8 | )% | |||||||||||
Total Company | $ | 2,708.2 | $ | 141.3 | $ | 2,849.5 | $ | 3,258.8 | (12.6 | )% | (16.9 | )% | (4.3 | )% | |||||||
Contacts:
Nancy O’Donnell, +1-770-418-7723
Vice
President, Investor Relations
or
Connie Bryant, +1-770-418-7516
Manager,
Corporate Communications