Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STANLEY BLACK & DECKER, INC. | a8-kdocument.htm |
Exhibit 99.1
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts)
FIRST QUARTER 2014 | SECOND QUARTER 2014 | THIRD QUARTER 2014 | YEAR TO DATE 2014 | |||||||||||||||||||||||||||||||||||||||||||||
GAAP1 | Merger & Acquisition- Related Charges2 | Normalized 3 | GAAP1 | Merger & Acquisition- Related Charges2 | Normalized 3 | GAAP1 | Merger & Acquisition- Related Charges2 | Normalized 3 | GAAP1 | Merger & Acquisition- Related Charges2 | Normalized 3 | |||||||||||||||||||||||||||||||||||||
Net Sales | $ | 2,617.1 | $ | — | $ | 2,617.1 | $ | 2,860.1 | $ | — | $ | 2,860.1 | $ | 2,878.9 | $ | — | $ | 2,878.9 | $ | 8,356.1 | $ | — | $ | 8,356.1 | ||||||||||||||||||||||||
Gross margin | 956.4 | 1.1 | 957.5 | 1,048.6 | 0.3 | 1,048.9 | 1,046.6 | 0.1 | 1,046.7 | 3,051.6 | 1.5 | 3,053.1 | ||||||||||||||||||||||||||||||||||||
% of Net Sales | 36.5 | % | 36.6 | % | 36.7 | % | 36.7 | % | 36.4 | % | 36.4 | % | 36.5 | % | 36.5 | % | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 640.6 | (6.2 | ) | 634.4 | 655.9 | (5.3 | ) | 650.6 | 641.1 | (6.0 | ) | 635.1 | 1,937.6 | (17.5 | ) | 1,920.1 | ||||||||||||||||||||||||||||||||
% of Net Sales | 24.5 | % | 24.2 | % | 22.9 | % | 22.7 | % | 22.3 | % | 22.1 | % | 23.2 | % | 23.0 | % | ||||||||||||||||||||||||||||||||
Operating margin | 315.8 | 7.3 | 323.1 | 392.7 | 5.6 | 398.3 | 405.5 | 6.1 | 411.6 | 1,114.0 | 19.0 | 1,133.0 | ||||||||||||||||||||||||||||||||||||
% of Net Sales | 12.1 | % | 12.3 | % | 13.7 | % | 13.9 | % | 14.1 | % | 14.3 | % | 13.3 | % | 13.6 | % | ||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | 217.9 | 3.8 | 221.7 | 296.8 | 4.1 | 300.9 | 304.4 | 6.1 | 310.5 | 819.1 | 14.0 | 833.1 | ||||||||||||||||||||||||||||||||||||
Income taxes on continuing operations | 48.0 | 1.3 | 49.3 | 74.1 | (5.3 | ) | 68.8 | 58.3 | 0.1 | 58.4 | 180.4 | (3.9 | ) | 176.5 | ||||||||||||||||||||||||||||||||||
Net earnings from continuing operations | 169.7 | 2.5 | 172.2 | 221.8 | 9.4 | 231.2 | 246.4 | 6.0 | 252.4 | 637.9 | 17.9 | 655.8 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per share of common stock | $ | 1.07 | $ | 0.02 | $ | 1.08 | $ | 1.39 | $ | 0.06 | $ | 1.45 | $ | 1.53 | $ | 0.04 | $ | 1.57 | $ | 3.99 | $ | 0.11 | $ | 4.10 | ||||||||||||||||||||||||
1 | Reported, as adjusted for the Security segment's Spain and Italy operations ("Security Spain and Italy"). Security Spain and Italy have been excluded from the continuing operations of Stanley Black & Decker as reflected above. The net operating results of Security Spain and Italy, as well as any gain or loss on a future sale, will be reported as a discontinued operation. | |
2 | Merger and acquisition-related charges, as adjusted for Security Spain and Italy, relate primarily to integration and consulting costs, as well as employee-related matters. | |
3 | The normalized 2014 information adjusted for Security Spain and Italy, as reconciled to GAAP adjusted for Security Spain and Italy above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges. Normalized earnings from continuing operations before income taxes includes other - net of $60.7 million in the first quarter, $57.1 million in the second quarter, $60.7 million in the third quarter, and $178.5 million on a year to date basis. | |
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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts)
FIRST QUARTER 2013 | SECOND QUARTER 2013 | THIRD QUARTER 2013 | ||||||||||||||||||||||||||||||||||
GAAP1 | Merger & Acquisition- Related and Other Charges2 | Normalized3 | GAAP1 | Merger & Acquisition- Related and Other Charges2 | Normalized3 | GAAP1 | Merger & Acquisition- Related and Other Charges2 | Normalized3 | ||||||||||||||||||||||||||||
Net Sales | $ | 2,448.1 | $ | — | $ | 2,448.1 | $ | 2,830.0 | $ | — | $ | 2,830.0 | $ | 2,730.8 | $ | — | $ | 2,730.8 | ||||||||||||||||||
Gross margin | 900.0 | 13.3 | 913.3 | 997.3 | 7.8 | 1,005.1 | 979.6 | 5.3 | 984.9 | |||||||||||||||||||||||||||
% of Net Sales | 36.8 | % | 37.3 | % | 35.2 | % | 35.5 | % | 35.9 | % | 36.1 | % | ||||||||||||||||||||||||
Selling, general and administrative | 658.6 | (34.0 | ) | 624.6 | 672.1 | (24.1 | ) | 648.0 | 663.0 | (31.8 | ) | 631.2 | ||||||||||||||||||||||||
% of Net Sales | 26.9 | % | 25.5 | % | 23.7 | % | 22.9 | % | 24.3 | % | 23.1 | % | ||||||||||||||||||||||||
Operating margin | 241.4 | 47.3 | 288.7 | 325.2 | 31.9 | 357.1 | 316.6 | 37.1 | 353.7 | |||||||||||||||||||||||||||
% of Net Sales | 9.9 | % | 11.8 | % | 11.5 | % | 12.6 | % | 11.6 | % | 13.0 | % | ||||||||||||||||||||||||
Earnings from continuing operations before income taxes | 91.6 | 105.8 | 197.4 | 249.5 | 5.1 | 254.6 | 186.3 | 67.2 | 253.5 | |||||||||||||||||||||||||||
Income taxes on continuing operations | 8.1 | 25.0 | 33.1 | 53.6 | 9.1 | 62.7 | 17.1 | 16.0 | 33.1 | |||||||||||||||||||||||||||
Net earnings from continuing operations | 83.9 | 80.8 | 164.7 | 196.2 | (4.0 | ) | 192.2 | 169.4 | 51.2 | 220.6 | ||||||||||||||||||||||||||
Diluted earnings per share of common stock | $ | 0.53 | $ | 0.51 | $ | 1.04 | $ | 1.24 | $ | (0.03 | ) | $ | 1.21 | $ | 1.07 | $ | 0.32 | $ | 1.39 | |||||||||||||||||
FOURTH QUARTER 2013 | YEAR TO DATE 2013 | |||||||||||||||||||||||||||||||||||
GAAP1 | Merger & Acquisition- Related and Other Charges2 | Normalized3 | GAAP1 | Merger & Acquisition- Related and Other Charges2 | Normalized3 | |||||||||||||||||||||||||||||||
Net Sales | $ | 2,880.6 | $ | — | $ | 2,880.6 | $ | 10,889.5 | $ | — | $ | 10,889.5 | ||||||||||||||||||||||||
Gross margin | 1,026.8 | 3.1 | 1,029.9 | 3,903.7 | 29.5 | 3,933.2 | ||||||||||||||||||||||||||||||
% of Net Sales | 35.6 | % | 35.8 | % | 35.8 | % | 36.1 | % | ||||||||||||||||||||||||||||
Selling, general and administrative | 696.9 | (45.8 | ) | 651.1 | 2,690.6 | (135.7 | ) | 2,554.9 | ||||||||||||||||||||||||||||
% of Net Sales | 24.2 | % | 22.6 | % | 24.7 | % | 23.5 | % | ||||||||||||||||||||||||||||
Operating margin | 329.9 | 48.9 | 378.8 | 1,213.1 | 165.2 | 1,378.3 | ||||||||||||||||||||||||||||||
% of Net Sales | 11.5 | % | 13.2 | % | 11.1 | % | 12.7 | % | ||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | 60.2 | 212.2 | 272.4 | 587.6 | 390.3 | 977.9 | ||||||||||||||||||||||||||||||
Income taxes on continuing operations | (10.2 | ) | 69.9 | 59.7 | 68.6 | 120.0 | 188.6 | |||||||||||||||||||||||||||||
Net earnings from continuing operations | 70.5 | 142.3 | 212.8 | 520.0 | 270.3 | 790.3 | ||||||||||||||||||||||||||||||
Diluted earnings per share of common stock | $ | 0.44 | $ | 0.89 | $ | 1.34 | $ | 3.28 | $ | 1.70 | $ | 4.98 | ||||||||||||||||||||||||
1 | Reported, as adjusted for Security Spain and Italy. Security Spain and Italy have been excluded from the continuing operations of Stanley Black & Decker as reflected above. The net operating results of Security Spain and Italy, as well as any gain or loss on a future sale, will be reported as a discontinued operation. | |
2 | Merger and acquisition-related and other charges, as adjusted for Security Spain and Italy, relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as cost containment charges. Other charges relate to the loss on extinguishment of debt that occurred in the fourth quarter of 2013. | |
3 | The normalized 2013 information adjusted for Security Spain and Italy, as reconciled to GAAP adjusted for Security Spain and Italy above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges as well as charges associated with the loss on extinguishment of debt. Normalized earnings from continuing operations before income taxes includes other - net of $54.6 million in the first quarter, $66.2 million in the second quarter, $64.2 million in the third quarter, $68.0 million in the fourth quarter, and $253.0 million on a year to date basis. | |
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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars)
FIRST QUARTER 2014 | SECOND QUARTER 2014 | THIRD QUARTER 2014 | YEAR TO DATE 2014 | |||||||||||||||||||||||||||||||||||||||||||||
GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | |||||||||||||||||||||||||||||||||||||
NET SALES | ||||||||||||||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 1,214.8 | $ | — | $ | 1,214.8 | $ | 1,394.6 | $ | — | $ | 1,394.6 | $ | 1,453.5 | $ | — | $ | 1,453.5 | $ | 4,062.9 | $ | — | $ | 4,062.9 | ||||||||||||||||||||||||
Industrial | 852.0 | — | 852.0 | 889.2 | — | 889.2 | 866.2 | — | 866.2 | 2,607.4 | — | 2,607.4 | ||||||||||||||||||||||||||||||||||||
Security | 550.3 | — | 550.3 | 576.3 | — | 576.3 | 559.2 | — | 559.2 | 1,685.8 | — | 1,685.8 | ||||||||||||||||||||||||||||||||||||
Total | $ | 2,617.1 | $ | — | $ | 2,617.1 | $ | 2,860.1 | $ | — | $ | 2,860.1 | $ | 2,878.9 | $ | — | $ | 2,878.9 | $ | 8,356.1 | $ | — | $ | 8,356.1 | ||||||||||||||||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 169.1 | $ | 0.4 | $ | 169.5 | $ | 218.2 | $ | 0.2 | $ | 218.4 | $ | 239.7 | $ | 0.1 | $ | 239.8 | $ | 627.0 | $ | 0.7 | $ | 627.7 | ||||||||||||||||||||||||
Industrial | 130.3 | 2.2 | 132.5 | 150.3 | 1.2 | 151.5 | 136.2 | 1.2 | 137.4 | 416.8 | 4.6 | 421.4 | ||||||||||||||||||||||||||||||||||||
Security | 52.9 | 2.2 | 55.1 | 69.3 | 1.2 | 70.5 | 67.3 | 0.4 | 67.7 | 189.5 | 3.8 | 193.3 | ||||||||||||||||||||||||||||||||||||
Segment Profit | 352.3 | 4.8 | 357.1 | 437.8 | 2.6 | 440.4 | 443.2 | 1.7 | 444.9 | 1,233.3 | 9.1 | 1,242.4 | ||||||||||||||||||||||||||||||||||||
Corporate Overhead | (36.5 | ) | 2.5 | (34.0 | ) | (45.1 | ) | 3.0 | (42.1 | ) | (37.7 | ) | 4.4 | (33.3 | ) | (119.3 | ) | 9.9 | (109.4 | ) | ||||||||||||||||||||||||||||
Total | $ | 315.8 | $ | 7.3 | $ | 323.1 | $ | 392.7 | $ | 5.6 | $ | 398.3 | $ | 405.5 | $ | 6.1 | $ | 411.6 | $ | 1,114.0 | $ | 19.0 | $ | 1,133.0 | ||||||||||||||||||||||||
Segment Profit as a Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||||
Construction & DIY | 13.9 | % | 14.0 | % | 15.6 | % | 15.7 | % | 16.5 | % | 16.5 | % | 15.4 | % | 15.4 | % | ||||||||||||||||||||||||||||||||
Industrial | 15.3 | % | 15.6 | % | 16.9 | % | 17.0 | % | 15.7 | % | 15.9 | % | 16.0 | % | 16.2 | % | ||||||||||||||||||||||||||||||||
Security | 9.6 | % | 10.0 | % | 12.0 | % | 12.2 | % | 12.0 | % | 12.1 | % | 11.2 | % | 11.5 | % | ||||||||||||||||||||||||||||||||
Segment Profit | 13.5 | % | 13.6 | % | 15.3 | % | 15.4 | % | 15.4 | % | 15.5 | % | 14.8 | % | 14.9 | % | ||||||||||||||||||||||||||||||||
Corporate Overhead | (1.4 | )% | (1.3 | )% | (1.6 | )% | (1.5 | )% | (1.3 | )% | (1.2 | )% | (1.4 | )% | (1.3 | )% | ||||||||||||||||||||||||||||||||
Total | 12.1 | % | 12.3 | % | 13.7 | % | 13.9 | % | 14.1 | % | 14.3 | % | 13.3 | % | 13.6 | % | ||||||||||||||||||||||||||||||||
1 | Reported, as adjusted for Security Spain and Italy. Security Spain and Italy have been excluded from the continuing operations of Stanley Black & Decker as reflected above. The net operating results of Security Spain and Italy, as well as any gain or loss on a future sale, will be reported as a discontinued operation. | |
2 | Merger and acquisition-related charges, as adjusted for Security Spain and Italy, relate primarily to integration and consulting costs, as well as employee-related matters. | |
3 | The normalized 2014 information adjusted for Security Spain and Italy, as reconciled to GAAP adjusted for Security Spain and Italy above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges. | |
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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars)
FIRST QUARTER 2013 | SECOND QUARTER 2013 | THIRD QUARTER 2013 | ||||||||||||||||||||||||||||||||||
GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | ||||||||||||||||||||||||||||
NET SALES | ||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 1,149.2 | $ | — | $ | 1,149.2 | $ | 1,392.8 | $ | — | $ | 1,392.8 | $ | 1,332.0 | $ | — | $ | 1,332.0 | ||||||||||||||||||
Industrial | 733.9 | — | 733.9 | 861.5 | — | 861.5 | 825.9 | — | 825.9 | |||||||||||||||||||||||||||
Security | 565.0 | — | 565.0 | 575.7 | — | 575.7 | 572.9 | — | 572.9 | |||||||||||||||||||||||||||
Total | $ | 2,448.1 | $ | — | $ | 2,448.1 | $ | 2,830.0 | $ | — | $ | 2,830.0 | $ | 2,730.8 | $ | — | $ | 2,730.8 | ||||||||||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 166.0 | $ | 3.3 | $ | 169.3 | $ | 209.9 | $ | 2.8 | $ | 212.7 | $ | 198.4 | $ | 3.1 | $ | 201.5 | ||||||||||||||||||
Industrial | 89.4 | 12.4 | 101.8 | 117.6 | 6.1 | 123.7 | 114.6 | 2.3 | 116.9 | |||||||||||||||||||||||||||
Security | 55.0 | 6.1 | 61.1 | 51.5 | 8.7 | 60.2 | 60.0 | 11.8 | 71.8 | |||||||||||||||||||||||||||
Segment Profit | 310.4 | 21.8 | 332.2 | 379.0 | 17.6 | 396.6 | 373.0 | 17.2 | 390.2 | |||||||||||||||||||||||||||
Corporate Overhead | (69.0 | ) | 25.5 | (43.5 | ) | (53.8 | ) | 14.3 | (39.5 | ) | (56.4 | ) | 19.9 | (36.5 | ) | |||||||||||||||||||||
Total | $ | 241.4 | $ | 47.3 | $ | 288.7 | $ | 325.2 | $ | 31.9 | $ | 357.1 | $ | 316.6 | $ | 37.1 | $ | 353.7 | ||||||||||||||||||
Segment Profit as a Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||
Construction & DIY | 14.4 | % | 14.7 | % | 15.1 | % | 15.3 | % | 14.9 | % | 15.1 | % | ||||||||||||||||||||||||
Industrial | 12.2 | % | 13.9 | % | 13.7 | % | 14.4 | % | 13.9 | % | 14.2 | % | ||||||||||||||||||||||||
Security | 9.7 | % | 10.8 | % | 8.9 | % | 10.5 | % | 10.5 | % | 12.5 | % | ||||||||||||||||||||||||
Segment Profit | 12.7 | % | 13.6 | % | 13.4 | % | 14.0 | % | 13.7 | % | 14.3 | % | ||||||||||||||||||||||||
Corporate Overhead | (2.8 | )% | (1.8 | )% | (1.9 | )% | (1.4 | )% | (2.1 | )% | (1.3 | )% | ||||||||||||||||||||||||
Total | 9.9 | % | 11.8 | % | 11.5 | % | 12.6 | % | 11.6 | % | 13.0 | % | ||||||||||||||||||||||||
FOURTH QUARTER 2013 | YEAR TO DATE 2013 | |||||||||||||||||||||||||||||||||||
GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | |||||||||||||||||||||||||||||||
NET SALES | ||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 1,397.4 | $ | — | $ | 1,397.4 | $ | 5,271.4 | $ | — | $ | 5,271.4 | ||||||||||||||||||||||||
Industrial | 881.3 | — | 881.3 | 3,302.6 | — | 3,302.6 | ||||||||||||||||||||||||||||||
Security | 601.9 | — | 601.9 | 2,315.5 | — | 2,315.5 | ||||||||||||||||||||||||||||||
Total | $ | 2,880.6 | $ | — | $ | 2,880.6 | $ | 10,889.5 | $ | — | $ | 10,889.5 | ||||||||||||||||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 202.8 | $ | 3.8 | $ | 206.6 | $ | 777.1 | $ | 13.0 | $ | 790.1 | ||||||||||||||||||||||||
Industrial | 135.1 | 4.0 | 139.1 | 456.7 | 24.8 | 481.5 | ||||||||||||||||||||||||||||||
Security | 66.8 | 11.4 | 78.2 | 233.3 | 38.0 | 271.3 | ||||||||||||||||||||||||||||||
Segment Profit | 404.7 | 19.2 | 423.9 | 1,467.1 | 75.8 | 1,542.9 | ||||||||||||||||||||||||||||||
Corporate Overhead | (74.8 | ) | 29.7 | (45.1 | ) | (254.0 | ) | 89.4 | (164.6 | ) | ||||||||||||||||||||||||||
Total | $ | 329.9 | $ | 48.9 | $ | 378.8 | $ | 1,213.1 | $ | 165.2 | $ | 1,378.3 | ||||||||||||||||||||||||
Segment Profit as a Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||
Construction & DIY | 14.5 | % | 14.8 | % | 14.7 | % | 15.0 | % | ||||||||||||||||||||||||||||
Industrial | 15.3 | % | 15.8 | % | 13.8 | % | 14.6 | % | ||||||||||||||||||||||||||||
Security | 11.1 | % | 13.0 | % | 10.1 | % | 11.7 | % | ||||||||||||||||||||||||||||
Segment Profit | 14.0 | % | 14.7 | % | 13.5 | % | 14.2 | % | ||||||||||||||||||||||||||||
Corporate Overhead | (2.6 | )% | (1.6 | )% | (2.3 | )% | (1.5 | )% | ||||||||||||||||||||||||||||
Total | 11.5 | % | 13.2 | % | 11.1 | % | 12.7 | % | ||||||||||||||||||||||||||||
1 | Reported, as adjusted for Security Spain and Italy. Security Spain and Italy have been excluded from the continuing operations of Stanley Black & Decker as reflected above. The net operating results of Security Spain and Italy, as well as any gain or loss on a future sale, will be reported as a discontinued operation. | |
2 | Merger and acquisition-related charges, as adjusted for Security Spain and Italy, relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs. | |
3 | The normalized 2013 information adjusted for Security Spain and Italy, as reconciled to GAAP adjusted for Security Spain and Italy above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges. | |
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