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8-K - CURRENT REPORT - CLOROX CO /DE/ | clorox_8k.htm |
EX-99.2 - SUPPLEMENTAL INFORMATION REGARDING FINANCIAL RESULTS - CLOROX CO /DE/ | exhibit99-2.htm |
The Clorox
Company News Release
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Clorox Reports Strong 12
Percent EPS Growth for Its Full Fiscal Year, With Solid Q4 Results; Confirms
Fiscal 2011 Outlook
OAKLAND, Calif., Aug. 3,
2010 – The Clorox Company (NYSE: CLX) today announced results for its fourth
quarter and fiscal year 2010, which ended June 30. Clorox reported strong
earnings growth for fiscal 2010, driven by robust gross margin expansion and
top-line growth within the company’s targeted range for the year.
“I’m very pleased with
our performance for the fiscal year,” said Chairman and CEO Don Knauss. “We
increased our total demand-building investment, driving higher all-outlet market
share in the U.S. and share gains in International markets. I’m especially
pleased we delivered 15 percent growth in economic profit, the metric we believe
best aligns over the long term with creating value and generating shareholder
return,” Knauss said. “Our organization continues to do a fantastic job of
executing the day-to-day business in a very challenging economic
environment.”
Fiscal fourth-quarter results
Following is a summary
of key fourth-quarter results. All comparisons are with the fourth quarter of
fiscal year 2009, unless otherwise stated.
- $1.20 diluted earnings per
share
- 2% volume growth
- 1% sales growth
Clorox reported
fourth-quarter net earnings of $171 million, or $1.20 diluted earnings per share
(EPS), versus $170 million, or $1.20 diluted EPS, in the year-ago quarter.
Earnings in the current quarter reflected higher sales and lower interest
expense, offset by a higher effective tax rate and lower gross margin. (See
“Non-GAAP Financial Information” below and the last two pages of this press
release for information and a reconciliation of key fourth-quarter and fiscal
year results.)
Volume for the fourth
quarter of fiscal 2010 grew 2 percent due to growth on a number of brands,
including record shipments of Kingsford® charcoal and Hidden Valley® bottled salad dressing.
Sales for the fourth
quarter of fiscal 2010 grew 1 percent to $1.52 billion. The benefits of volume
growth and price increases in International markets more than offset the impact
of the Venezuela currency devaluation, which reduced sales by 2.3 percentage
points, and higher trade promotion spending to support new products and respond
to competitive activity in select categories.
Gross margin decreased
100 basis points to 44.8 percent from 45.8 percent in the year-ago quarter, when
gross margin increased 370 basis points and reached a five-year high. The
decrease in the current quarter gross margin was primarily driven by reinflation
of commodity costs, as anticipated, and higher trade-promotion spending,
partially offset by strong cost savings.
Page 1 of
12
Selling and administrative expenses increased to 13.4 percent of sales
from 12.3 percent of sales in the year-ago quarter, primarily driven by higher
incentive compensation, and investments the company is making in facility and
global IT improvements and the International expansion of the Burt’s Bees
business. “We believe these are important strategic investments that, once
completed, will further enable growth, future cost savings and new product
innovation,” said Chief Financial Officer Dan Heinrich.
Advertising and sales-promotion spending declined versus the year-ago
quarter, as the company shifted some spending to trade merchandising
initiatives. Clorox increased its investment in total demand building — which
the company defines as combined spending on advertising, research and
development and trade merchandising — by about 3 percent, driven by incremental
investment in trade promotion in response to competitive activity. “We continue
to make significant and appropriate investments in both innovation and demand
building to maintain the health
of our brands and drive growth,” Heinrich said. “The success of these
investments is reflected in our market share growth.”
The effective tax rate for the fourth quarter increased nearly 300 basis
points to 37.8 percent versus the year-ago quarter, due primarily to the tax
impact of foreign dividends and slightly higher tax expense on earnings from
certain foreign countries. The company does not anticipate that these factors
will have a continuing material effect on its fiscal 2011 effective tax rate.
Cash provided by operations grew 19 percent to $376 million from $315
million in the year-ago quarter. The increase was primarily due to improved
working capital. Clorox continued to use cash on hand and free cash flow to pay
down debt during the quarter. At June 30, 2010, the company’s debt to EBITDA
(earnings before interest, taxes, depreciation and amortization) ratio, as
defined in its lending agreement, was 2.2 to 1.
During the quarter, Clorox repurchased 2.4 million shares of the
company’s common stock at a cost of $150 million under its ongoing program to
offset stock option dilution.
Cleaning
(Laundry, home care, auto, away from home)
- 1% volume growth
- 1% sales decline
- 1% pretax earnings decline
The segment’s volume growth was driven by increased shipments of Armor
All® auto care products and Pine-Sol® cleaner. These results were partially offset
by lower shipments of Clorox® disinfecting wipes and disinfecting products
in Away From Home markets versus the year-ago quarter, when concerns related to
the H1N1 flu pandemic resulted in significant sales growth. The variance between
changes in volume and sales was primarily driven by product mix. Pretax earnings
reflected slightly lower sales and higher commodity costs, partially offset by
strong cost savings and lower advertising expense.
Household
(Bags and wraps, charcoal, cat litter)
- 1% volume growth
- Flat sales
- 11% pretax earnings growth
Page 2 of 12
Volume growth was primarily driven by record shipments of Kingsford® charcoal and increased shipments of Glad® trash bags. These factors were partially
offset by lower shipments of Glad® food-storage products. Higher pretax earnings
were primarily due to strong cost savings and lower advertising expense,
partially offset by higher commodity costs.
Lifestyle
(Dressings and sauces,
water filtration, global natural personal care)
- 10% volume growth
- 7% sales growth
- 4% pretax earnings growth
The segment’s very
strong volume growth was driven by record shipments of Hidden Valley® bottled salad dressing, as well as strong
shipments of Burt’s Bees® natural personal care products. These
increases were partially offset by lower shipments of Brita® water-filtration products, compared to strong
double-digit volume growth in the year-ago quarter. The variance between volume
and sales growth was primarily driven by higher trade-promotion spending and
product mix. Pretax earnings reflected higher sales and cost savings, partially
offset by increased advertising and selling and administrative costs to support
the Burt’s Bees growth plan.
International
(Sales in all countries
outside of the U.S., excluding natural personal care)
- Flat volume
- 2% sales growth
- 63% pretax earnings growth
Flat volume for the
segment reflected higher shipments of disinfecting and fragranced cleaning
products in southern Latin America driven by new product introductions, offset
by lower shipments of home care products in Venezuela and Mexico due to
strategic choices to maximize profitability, and Glad® products in Australia due to distribution
losses. The variance between changes in volume and sales was primarily driven by
the benefit of price increases, partially offset by the impact of unfavorable
foreign currency exchange. The impact of the Venezuelan currency devaluation on
sales was partially offset by favorable currencies in other countries. Pretax
earnings growth reflected higher sales in the current quarter and significant
foreign currency transaction losses in the year-ago quarter, when pretax
earnings decreased about 60 percent due to the impact of foreign currencies and
commodity inflation.
Fiscal year 2010 results
- $4.24 diluted earnings per
share
- 3% volume growth
- 2% sales growth
Page 3 of
12
For fiscal year 2010,
Clorox reported net earnings of $603 million, or $4.24 diluted earnings per
share (EPS), versus $537 million, or $3.79 diluted EPS, in fiscal 2009, an
increase of 12 percent. Earnings for the current year benefitted from higher
sales and gross margin and lower interest expense. Earnings were impacted by
foreign currency losses of $53 million, or 24 cents diluted EPS, related to the
Venezuela currency devaluation.
Volume increased 3
percent due to strong growth on a number of brands including Clorox® disinfecting wipes, Hidden Valley® salad dressings, Kingsford® charcoal, Pine-Sol® cleaner, Fresh Step® cat litter, and disinfecting and fragranced
cleaning products in Latin America. These increases were partially offset by
lower shipments of Glad® food-storage products
and STP®
auto-care products.
Sales for fiscal 2010
grew 2 percent to $5.53 billion. The Venezuela currency devaluation reduced
fiscal 2010 sales by 1.2 percentage points.
Gross margin increased
180 basis points to 44.8 percent, significantly exceeding the company’s initial
outlook for growth in the range of 50-100 basis points for the fiscal year.
These results were driven by strong cost savings and the benefit of price
increases, partially offset by higher commodity costs.
Cash provided by
operations increased 11 percent to $819 million, or 15 percent of sales, from
$738 million, or 14 percent of sales, in fiscal 2009. The year-over-year
increase was primarily driven by improved working capital.
Clorox confirms fiscal 2011 financial outlook
Clorox also confirmed
its fiscal year 2011 financial outlook:
- 2-4 percent sales
growth
- 25-50 basis points gross margin
improvement
- Diluted EPS in the range of $4.50-$4.65
Clorox continues to
anticipate sales growth in the range of 2-4 percent, most likely at the lower
end of that range. The company continues to anticipate that volume will grow at
a faster rate than sales. Results in the first half of the fiscal year are
expected to reflect higher trade-promotion spending to address price gaps, the
remaining impact of the Venezuela currency devaluation and lower shipments of
disinfecting products versus the prior year, when concerns related to the H1N1
flu pandemic resulted in significant sales growth.
Clorox continues to
anticipate fiscal 2011 restructuring-related charges in the range of $20 million
to $30 million, with about half accounted for in selling and administrative
expenses. This compares with $17 million in fiscal 2010 restructuring-related
charges, of which $11 million were reflected in cost of products sold, $4
million were reflected in restructuring costs and $2 million were reflected in
selling and administrative expenses.
Clorox does not
anticipate the factors impacting its effective tax rate for the fourth quarter
of fiscal 2010 to be repeated in fiscal 2011. The company’s outlook is for a
fiscal 2011 effective tax rate in the range of 34-35 percent.
Page 4 of 12
For more detailed financial information
Visit the Investors:
Financial Results section of the company’s Web site at www.TheCloroxCompany.com for the following:
- Supplemental volume and sales
growth information
- Supplemental gross margin driver
information
- Reconciliation of certain non-GAAP
financial information, including earnings before interest and taxes (EBIT) and
earnings before interest, taxes, depreciation and amortization
(EBITDA)
- Economic profit reconciliation
information
- Supplemental balance sheet and
cash flow information
- Supplemental price-change
information
- Return on invested capital (ROIC) reconciliation information
Note: Percentage and
basis-point changes noted in this news release are calculated based on rounded
numbers.
Today’s webcast
Today at 10:30 a.m.
Pacific time (1:30 p.m. Eastern time), Clorox will host a live audio webcast of
a discussion with the investment community regarding the company’s
fourth-quarter and fiscal 2010 results. The webcast can be accessed at
http://investors.thecloroxcompany.com. Following a live discussion, a replay of the
webcast will be archived for one week on the company’s website.
The Clorox Company
The Clorox Company is a
leading manufacturer and marketer of consumer products with 8,300 employees and
fiscal year 2010 revenues of $5.53 billion. Clorox markets some of consumers'
most trusted and recognized brand names, including its namesake bleach and
cleaning products, Green Works® natural home care products, Pine-Sol®
cleaners, Poett® home care products, Fresh Step® cat litter, Kingsford® charcoal, Hidden Valley® and K C Masterpiece® dressings and sauces, Brita® water-filtration products, Glad® bags and wraps and containers, and Burt’s
Bees® natural personal care products. The
company’s
products are manufactured in more than two dozen countries and sold in
more than 100 countries. Clorox is committed to making a positive difference in
the communities where its employees work and live. Founded in 1980, The Clorox
Company Foundation has awarded cash grants totaling more than $80 million to
nonprofit organizations, schools and colleges. In fiscal 2010 alone, the
foundation awarded $3.5 million in cash grants, and Clorox made product
donations valued at $8.8 million. For more information about Clorox, visit
www.TheCloroxCompany.com.
Page 5 of 12
Forward-looking statements
This press release contains “forward looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended (the Securities
Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the
Exchange Act), and such forward looking statements involve risks and
uncertainties. Except for historical information, matters discussed above,
including statements about future volume, sales, costs, cost savings, earnings,
cash flows, plans, objectives, expectations, growth, or profitability, are
forward looking statements based on management’s estimates, assumptions and
projections. Words such as “expects,” “anticipates,” “targets,” “goals,”
“projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations
on such words, and similar expressions, are intended to identify such forward
looking statements. These forward looking statements are only predictions,
subject to risks and uncertainties, and actual results could differ materially
from those discussed above. Important factors that could affect performance and
cause results to differ materially from management’s expectations are described
in the sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the company’s
Annual Report on Form 10-K for the year ended June 30, 2009, as updated from
time to time in the company’s SEC filings. These factors include, but are not
limited to: unfavorable general economic and marketplace conditions and events,
including consumer confidence and consumer spending levels, the rate of economic
growth, the rate of inflation, and the financial condition of our customers,
suppliers and service providers; foreign currency exchange rate and interest
rate fluctuations; unfavorable
political conditions in international markets and risks relating to
international operations; the company’s costs, including volatility and
increases in commodity costs such as resin, diesel, chlor-alkali, sodium
hypochlorite, agricultural commodities and other raw materials; increases in
energy costs; the impact of the volatility of the debt markets on the company’s
cost of borrowing and access to funds, including commercial paper and its credit
facility; risks relating to changes in the company’s capital structure; risks
arising from declines in cash flow, whether resulting from tax payments, debt
payments, share repurchases, interest cost increases greater than management’s
expectations, or increases in debt or changes in credit ratings, or otherwise;
changes in the company’s tax rate; the success of the company’s strategies,
including its previously announced Centennial Strategy; risks relating to
acquisitions, mergers and divestitures, including the company’s ability to
achieve the projected strategic and financial benefits from the Burt’s Bees® acquisition; the ability of the company to
implement and generate expected savings from its programs to reduce costs,
including its Supply Chain Restructuring and Other restructuring plan changes;
the need for any unanticipated restructuring or asset-impairment charges; the
success of new products and the ability of the company to develop products that
delight the consumer; consumer and customer reaction to price increases; risks
related to customer concentration; customer-specific ordering patterns and
trends; competitive actions; supply disruptions or any future supply constraints
that may affect key commodities or product inputs; risks inherent in
relationships with suppliers, including sole suppliers and single-source
suppliers; risks related to the handling and/or transportation of hazardous
substances, including but not limited to chlorine; risks related to the
conversion of the company’s information systems, including potential disruptions
and costs; risks arising out of natural disasters; the impact of disease
outbreaks, epidemics or pandemics on the company’s operations; risks inherent in
litigation; risks inherent in maintaining an effective system of internal
controls, including the potential impact of acquisitions or the use of
third-party service providers; the ability to manage and realize the benefit of
joint ventures and other cooperative relationships, including the company’s
joint venture regarding the company’s Glad® plastic bags, wraps and containers business,
and the agreements relating to the provision of information technology and
related services by third parties; the ability of the company to successfully
manage tax, regulatory, product liability, intellectual property, environmental
and other legal matters, including the risk resulting from joint and several
liability for environmental contingencies and risks inherent in litigation
including class action litigation; and the company’s ability to maintain its
business reputation and the reputation of its brands.
The company’s forward-looking statements in this report are based on
management’s current views and assumptions regarding future events and speak
only as of their dates. The company undertakes no obligation to publicly update
or revise any forward looking statements, whether as a result of new
information, future events or otherwise, except as required by the federal
securities laws.
Non-GAAP financial information
This press release contains non-GAAP financial information relating to
diluted EPS, sales growth and gross margin. Included on the last page of this
release is a reconciliation of these non-GAAP financial measures to the most
directly comparable financial measure calculated in accordance with generally
accepted accounting principles in the U.S. (GAAP).
Page 6 of 12
The company has disclosed information related to diluted EPS, sales and
gross margin on a non-GAAP basis to supplement its condensed consolidated
statements of earnings presented in accordance with GAAP. These non-GAAP
financial measures exclude certain items that are included in the company’s EPS,
sales and gross margin reported in accordance with GAAP, including:
- Charges associated with
simplification of the company’s supply chain, operating model implementation
and other restructuring-related charges.
- The impact of the company’s
acquisition of Burt’s Bees, Inc., completed on Nov. 30, 2007.
- The impact of foreign exchange and
foreign currency transactions.
- The impact of the company’s exit from its private label food bags business.
Management believes that these non-GAAP financial measures provide useful
additional information to investors about current trends in the company’s
operations and are useful for period over period comparisons of operations.
These non-GAAP financial measures should not be considered in isolation or as a
substitute for the comparable GAAP measures. In addition, these non-GAAP
measures may not be the same as similar measures provided by other companies due
to potential differences in methods of calculation and items being excluded.
They should only be read in connection with the company’s condensed consolidated
statements of earnings presented in accordance with GAAP.
Management believes that economic profit, defined as profit generated
over and above the estimated cost of capital used by the business to generate
that profit, is the metric that best aligns over the long term with creating
value and generating shareholder return.
See the following pages for these unaudited fourth-quarter results:
- Condensed Consolidated Statements
of Earnings
- Reportable Segment
Information
- Condensed Consolidated Balance
Sheets
- Fourth-quarter sales growth
reconciliation
- Fourth-quarter gross margin
reconciliation
- Fourth-quarter diluted EPS reconciliation
Media relations
Dan Staublin 510-271-1622, dan.staublin@clorox.com
Kathryn Caulfield 510-271-7209, kathryn.caulfield@clorox.com
Investor relations
Li-Mei Johnson 510-271-3396, li-mei.johnson@clorox.com
Steve Austenfeld 510-271-2270, steve.austenfeld@clorox.com
For recent presentations made by company management and other investor
materials, visit http://investors.thecloroxcompany.com/events.cfm.
Page 7 of 12
The Clorox Company
|
||
Condensed Consolidated Statements of Earnings
(Unaudited)
Dollars in millions, except per share amounts
Dollars in millions, except per share amounts
Three Months Ended | Twelve Months Ended | |||||||||||
6/30/2010 | 6/30/2009 | 6/30/2010 | 6/30/2009 | |||||||||
Net sales | $ | 1,517 | $ | 1,500 | $ | 5,534 | $ | 5,450 | ||||
Cost of products sold | 837 | 813 | 3,057 | 3,104 | ||||||||
Gross profit | 680 | 687 | 2,477 | 2,346 | ||||||||
Selling and administrative expenses | 203 | 185 | 747 | 715 | ||||||||
Advertising costs | 137 | 148 | 518 | 499 | ||||||||
Research and development costs | 33 | 33 | 119 | 114 | ||||||||
Restructuring costs | - | 4 | 4 | 20 | ||||||||
Interest expense | 32 | 36 | 139 | 161 | ||||||||
Other expense, net | - | 20 | 25 | 26 | ||||||||
Earnings before income taxes | 275 | 261 | 925 | 811 | ||||||||
Income taxes | 104 | 91 | 322 | 274 | ||||||||
Net earnings | $ | 171 | $ | 170 | $ | 603 | $ | 537 | ||||
Earnings per share * | ||||||||||||
Basic | $ | 1.21 | $ | 1.21 | $ | 4.28 | $ | 3.82 | ||||
Diluted | $ | 1.20 | $ | 1.20 | $ | 4.24 | $ | 3.79 | ||||
Weighted average shares outstanding (in thousands) | ||||||||||||
Basic | 140,280 | 139,303 | 140,272 | 139,015 | ||||||||
Diluted | 141,651 | 140,314 | 141,534 | 140,169 |
* | As disclosed in Clorox's first-quarter Form 10-Q filing, the company adopted a new accounting standard regarding calculation of earnings per share. Prior year earnings per share have been adjusted to reflect the new accounting standard. |
Page 8 of
12
The Clorox Company
|
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Reportable Segment
Information
(Unaudited)
Dollars in millions
(Unaudited)
Dollars in millions
Fourth Quarter | Net Sales | Earnings/(Losses) Before Income Taxes | ||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
06/30/10 | 06/30/09 | % Change (1) | 06/30/10 | 06/30/09 | % Change (1) | |||||||||||||||
Cleaning | $ | 460 | $ | 465 | -1 | % | $ | 105 | $ | 106 | -1 | % | ||||||||
Household | 540 | 538 | - | 136 | 122 | 11 | % | |||||||||||||
Lifestyle | 226 | 211 | 7 | % | 76 | 73 | 4 | % | ||||||||||||
International | 291 | 286 | 2 | % | 39 | 24 | 63 | % | ||||||||||||
Corporate (2),(3) | - | - | - | (81 | ) | (64 | ) | 27 | % | |||||||||||
Total Company | $ | 1,517 | $ | 1,500 | 1 | % | $ | 275 | $ | 261 | 5 | % | ||||||||
Year to Date | Net Sales | Earnings/(Losses) Before Income Taxes | ||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||
06/30/10 | 06/30/09 | % Change (1) | 06/30/10 | 06/30/09 | % Change (1) | |||||||||||||||
Cleaning | $ | 1,838 | $ | 1,836 | - | $ | 440 | $ | 410 | 7 | % | |||||||||
Household | 1,663 | 1,726 | -4 | % | 290 | 289 | - | |||||||||||||
Lifestyle | 864 | 813 | 6 | % | 303 | 270 | 12 | % | ||||||||||||
International | 1,169 | 1,075 | 9 | % | 172 | 140 | 23 | % | ||||||||||||
Corporate (2) | - | - | - | (280 | ) | (298 | ) | -6 | % | |||||||||||
Total Company | $ | 5,534 | $ | 5,450 | 2 | % | $ | 925 | $ | 811 | 14 | % | ||||||||
(1) | Percentages based on rounded numbers. | |
(2) | The Corporate segment included $32 and $36 of interest expense for the three months ended June 30, 2010 and 2009, respectively, and $139 and $161 of interest expense for the fiscal years ended June 30, 2010 and 2009, respectively. | |
(3) | The increase in Corporate losses for the three months ended June 30, 2010, as compared to the three months ended June 30, 2009, is due primarily to higher incentive compensation and investments the company is making in facility and global IT improvements. |
Page 9 of
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The Clorox Company
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Condensed Consolidated Balance Sheets
(Unaudited)
Dollars in
millions
6/30/2010 | 6/30/2009 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and equivalents | $ | 87 | $ | 206 | ||||
Receivables, net | 544 | 486 | ||||||
Inventories, net | 367 | 366 | ||||||
Other current assets | 126 | 122 | ||||||
Total current assets | 1,124 | 1,180 | ||||||
Property, plant and equipment, net | 979 | 955 | ||||||
Goodwill | 1,650 | 1,630 | ||||||
Trademarks, net | 562 | 557 | ||||||
Other intangible assets, net | 96 | 105 | ||||||
Other assets | 144 | 149 | ||||||
Total assets | $ | 4,555 | $ | 4,576 | ||||
Liabilities and Stockholders’ Equity (Deficit) | ||||||||
Current liabilities | ||||||||
Notes and loans payable | $ | 371 | $ | 421 | ||||
Current maturities of long-term debt | 300 | 577 | ||||||
Accounts payable | 410 | 381 | ||||||
Accrued liabilities | 492 | 472 | ||||||
Income taxes payable | 74 | 86 | ||||||
Total current liabilities | 1,647 | 1,937 | ||||||
Long-term debt | 2,124 | 2,151 | ||||||
Other liabilities | 677 | 640 | ||||||
Deferred income taxes | 24 | 23 | ||||||
Total liabilities | 4,472 | 4,751 | ||||||
Contingencies | ||||||||
Stockholders’ equity (deficit) | ||||||||
Common stock | 159 | 159 | ||||||
Additional paid-in capital | 617 | 579 | ||||||
Retained earnings | 920 | 640 | ||||||
Treasury shares | (1,242 | ) | (1,206 | ) | ||||
Accumulated other comprehensive net losses | (371 | ) | (347 | ) | ||||
Stockholders’ equity (deficit) | 83 | (175 | ) | |||||
Total liabilities and stockholders’ equity (deficit) | $ | 4,555 | $ | 4,576 | ||||
The Clorox
Company
|
||
The tables below present the reconciliation of non-GAAP financial
measures to the most directly comparable GAAP financial measures and other
supplemental information. See “Non-GAAP Financial Information” above for further
information regarding the company’s use of non-GAAP financial
measures.
Fourth-Quarter Sales Growth
Reconciliation
Fiscal | Fiscal | |||||
2010 | 2009 | |||||
Base sales growth | 2.3 | % | 3.2 | % | ||
Foreign exchange – Venezuela | -2.3 | -- | ||||
Foreign exchange – All other | 1.2 | -2.5 | ||||
Exit from private label business | -- | -0.4 | ||||
Total sales growth | 1.2 | % | 0.3 | % |
Fourth-Quarter Gross Margin
Reconciliation
Q4 fiscal 2009 gross margin | 45.8 | % |
Pricing | 0.6 | |
Cost savings | 2.2 | |
Commodities | -2.6 | |
Logistics & manufacturing | -0.3 | |
Other * | -1.1 | |
Q4 fiscal 2010 gross margin before | ||
impact of charges | 44.6 | % |
Restructuring-related charges | 0.2 | |
Q4 fiscal 2010 gross margin | 44.8 | % |
Q4 fiscal 2008 gross margin | 42.1 | % |
Pricing | 2.5 | |
Cost savings | 2.3 | |
Commodities | 1.6 | |
Logistics & manufacturing | -1.5 | |
Other | -1.3 | |
Q4 fiscal 2009 gross margin before | ||
impact of charges | 45.7 | % |
Restructuring-related charges | 0.1 | |
Q4 fiscal 2009 gross margin | 45.8 | % |
* | “Other” includes all other drivers of gross margin change, such as trade-promotion spending, product mix, and foreign currency translation and transaction impacts. |
Fourth-Quarter Diluted EPS
Reconciliation
Fiscal | Fiscal | |||||
2010 | 2009 | |||||
Diluted EPS – non-GAAP | $ | 1.27 | $ | 1.35 | ||
Foreign exchange impact – Venezuela | -0.05 | -0.08 | ||||
Foreign exchange impact – Other | -- | -0.02 | ||||
Restructuring and restructuring-related charges | -0.02 | -0.05 | ||||
Diluted EPS – GAAP | $ | 1.20 | $ | 1.20 | ||
Page 11 of
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The Clorox Company
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Fiscal Year Sales Growth Reconciliation
Fiscal | Fiscal | |||||
2010 | 2009 | |||||
Base sales growth | 2.0 | % | 4.4 | % | ||
Foreign exchange – Venezuela | -1.2 | -- | ||||
Foreign exchange – All other | 0.8 | -2.0 | ||||
Exit from private label business | -0.1 | -0.6 | ||||
Sales growth before acquisitions | 1.5 | % | 1.8 | % | ||
Burt's Bees acquisition | -- | 1.5 | ||||
Total sales growth | 1.5 | % | 3.3 | % | ||
The Burt’s Bees acquisition closed Nov. 30,
2007.
Fiscal Year Gross Margin
Reconciliation
Fiscal 2009 gross margin | 43.0 | % |
Pricing | 0.9 | |
Cost savings | 1.8 | |
Commodities | 0.3 | |
Logistics & manufacturing | -0.3 | |
Other * | -0.1 | |
Fiscal 2010 gross margin before | ||
impact of charges | 44.7 | % |
Burt’s Bees inventory step-up | -- | |
Restructuring-related charges | 0.1 | |
Fiscal 2010 gross margin | 44.8 | % |
Fiscal 2008 gross margin | 41.2 | % |
Pricing | 2.8 | |
Cost savings | 2.2 | |
Commodities | -1.7 | |
Logistics & manufacturing | -1.6 | |
Other | -0.4 | |
Fiscal 2009 gross margin before | ||
impact of charges | 42.5 | % |
Burt’s Bees inventory step-up | 0.4 | |
Restructuring-related charges | 0.1 | |
Fiscal 2009 gross margin | 43.0 | % |
* | “Other” includes all other drivers of gross margin change, such as trade-promotion spending, product mix, and foreign currency translation and transaction impacts. |
Fiscal Year Diluted EPS
Reconciliation
Fiscal | Fiscal | |||||
2010 | 2009 | |||||
Diluted EPS – non-GAAP | $ | 4.57 | $ | 4.10 | ||
Foreign exchange impact – Venezuela * | -0.24 | -0.09 | ||||
Foreign exchange impact – Other | -0.01 | -0.04 | ||||
Restructuring and restructuring-related charges | -0.08 | -0.18 | ||||
Diluted EPS – GAAP | $ | 4.24 | $ | 3.79 | ||
* | Includes the impact of remeasuring certain assets and liabilities in Venezuela using the Venezuelan Bolivar parallel market exchange rate (-$0.04); the transaction costs of exchanging Bolivars to U.S. dollars to pay for U.S.- denominated inventory purchases (-$0.12); and losses from translating the income statement from Bolivars to U.S. dollars (-$0.08). |
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