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8-K - 8-K - HERMAN MILLER INC | hmi8k_111016.htm |
Delivering Growth
by Design
NASDAQ: MLHR
Baird 2016 Industrial Conference
Brian Walker, President & Chief Executive Officer
Jeff Stutz, Executive Vice President & Chief Financial Officer
November 10, 2016
2
This information contains forward-looking statements
within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the
Securities Exchange Act, as amended, that are based
on management’s beliefs, assumptions, current
expectations, estimates, and projections about
the office furniture industry, the economy, and the
company itself. Words like “anticipates,” “believes,”
“confident,” “estimates,” “expects,” “forecasts,”
likely,” “plans,” “projects,” “should,” variations of
such words, and similar expressions identify such
forward-looking statements.
These statements do not guarantee future performance and
involve certain risks, uncertainties, and assumptions that are
difficult to predict with regard to timing, extent, likelihood,
and degree of occurrence. These risks include, without
limitation, the success of our growth strategy, employment
and general economic conditions, the pace of economic
recovery in the U.S, and in our International markets, the
increase in white-collar employment, the willingness of
customers to undertake capital expenditures, the types
of products purchased by customers, competitive-pricing
pressures, the availability and pricing of raw materials, our
reliance on a limited number of suppliers, our ability to
expand globally given the risks associated with regulatory
and legal compliance challenges and accompanying currency
fluctuations, the ability to increase prices to absorb the
additional costs of raw materials, the financial strength of our
dealers and the financial strength of our customers, the mix
of our products purchased by customers, our ability to locate
new DWR studios, negotiate favorable lease terms for new
and existing locations and the implementation of our studio
portfolio transformation, our ability to attract and retain
key executives and other qualified employees, our ability to
continue to make product innovations, the success of newly
introduced products, our ability to serve all of our markets,
possible acquisitions, divestitures or alliances, the pace and
level of government procurement, the outcome of pending
litigation or governmental audits or investigations, political
risk in the markets we serve, and other risks identified in our
filings with the Securities and Exchange Commission.
Therefore, actual results and outcomes may materially differ
from what we express or forecast. Furthermore, Herman
Miller, Inc., undertakes no obligation to update, amend or
clarify forward-looking statements.
Forward looking statementsIntro
Good morning everyone. It is our pleasure to present Herman Miller to you this morning. Let me start by thanking you for attending today. We value and truly appreciate your
interest in the company.
I would also point out to you that we’re very privileged to attend this conference and have this opportunity to talk to investors. I would like to thank the Baird team for hosting
us, we really appreciate it.
This call is being webcast live on hermanmiller.com, where you will also find our press release which contains supporting details and our presentation, including reconcilia-
tions of non-GAAP information referred to in our presentation and on this call. This presentation can also be downloaded on the hermanmiller.com webpage in the investor
section.
As a reminder, our comments today will include forward-looking statements as defined by the Securities and Exchange Commission that are subject to risks and uncertain-
ties, which could cause actual results and outcomes to differ from what we express or forecast. Please refer to our SEC filings for a complete review of those risks.
Headquarters:
Zeeland, MI, USA
Founded: 1905
Employees: ~8,000
FY16 Revenue:
$2.26B
FY16 Adj. EBITDA:
$259M
Company Snapshot
Over 600 dealers in
109 countries and 30
Design Within Reach
retail studios
North America 59%
Specialty 10%
Consumer 13%
ELA 18%
3Intro
Good morning everyone. It is our pleasure to present Herman Miller to you this morning. Let me start by thanking you for attending today. We value and truly appreciate your
interest in the company.
I would also point out to you that we’re very privileged to attend this conference and have this opportunity to talk to investors. I would like to thank the Baird team for hosting
us, we really appreciate it.
This call is being webcast live on hermanmiller.com, where you will also find our press release which contains supporting details and our presentation, including reconcilia-
tions of non-GAAP information referred to in our presentation and on this call. This presentation can also be downloaded on the hermanmiller.com webpage in the investor
section.
As a reminder, our comments today will include forward-looking statements as defined by the Securities and Exchange Commission that are subject to risks and uncertain-
ties, which could cause actual results and outcomes to differ from what we express or forecast. Please refer to our SEC filings for a complete review of those risks.
4
Our Compelling Story
Investment thesis
Powerful brands
deliver design and
innovation leadership
A higher
ambition culture
Unique combination of
value-drivers enabling above
industry-average growth
Compelling financial outlook
and opportunity for margin
expansion
Strong track record of
performance and healthy
returns on capital
Intro
Good morning everyone. It is our pleasure to present Herman Miller to you this morning. Let me start by thanking you for attending today. We value and truly appreciate your
interest in the company.
I would also point out to you that we’re very privileged to attend this conference and have this opportunity to talk to investors. I would like to thank the Baird team for hosting
us, we really appreciate it.
This call is being webcast live on hermanmiller.com, where you will also find our press release which contains supporting details and our presentation, including reconcilia-
tions of non-GAAP information referred to in our presentation and on this call. This presentation can also be downloaded on the hermanmiller.com webpage in the investor
section.
As a reminder, our comments today will include forward-looking statements as defined by the Securities and Exchange Commission that are subject to risks and uncertain-
ties, which could cause actual results and outcomes to differ from what we express or forecast. Please refer to our SEC filings for a complete review of those risks.
5
A higher ambition culture
6
Driven by a sense of purpose
and values
A higher ambition culture
“A business is rightly judged by its products and services,
but it must also face scrutiny as to its humanity.”
- D.J. De Pree, Herman Miller Founder
Nine Consecutive Perfect
Scores in Human Rights
Campaign Foundation’s
Corporate Equality Index
Twelve Straight Years
on the Dow Jones Sustainability
World Index
Corporation of the Year in the
Commercial sector for 8 of the
last 10 years by the Michigan
Minority Supplier Development
Council
7
Powerful brands deliver
design and innovation
leadership
8
An inspiring brand that customers value
Powerful brands deliver design and innovation leadership
* Twitter followers as of October 2016 (Herman Miller, Allsteel, Haworth, Knoll, and Steelcase)
#1 in Brand that Inspires,
Contract Magazine Survey
World’s Top 10 Most Innovative
Companies in Design, Fast Company
Social Media Followers – 4X all major
competitors combined*
9Powerful brands deliver design and innovation leadership
Healthcare
Performance textiles
Ergonomic work tools
Asia distribution
Nemschoff
Maharam
Colebrook Bosson Saunders
POSH
A portfolio of leading global brands
TIMELESS CRAFT
The convergence of world-class designers,
impeccable craftsmanship, and superior materials.
Brabo Sofa by Vincent Van Duysen
Crosshatch™ Chair by EOOS
H Frame Table by Ward Bennett
Full Twist™ Chair by Mark Goetz
Domino Storage™ by Isay Weinfeld
geigerfurniture.com
Herman Miller brands are #1 in seven categories, Contract Magazine Survey
Craft wood furnishings
Geiger
Design Within Reach
Marketplace for authentic modern furnishings
10
Commitment to innovation
Powerful brands deliver design and innovation leadership
– Innovation
Priorities:
– Average of 22% of our sales were from new products over the past 5 years
– Introduced over 50 new products and extensions in fiscal 2016
– Industry-leading investment in design, research and development at 3.4% of sales in fiscal 2016
Collaborative
and other
work points
Active/healthy
postures
Outdoor,
lighting, and
materials
Technology
enhanced user
experience
11
An icon remastered
Powerful brands deliver design and innovation leadership
– Reinforces Herman Miller’s worldwide
leadership in high performance seating
– Incorporates the latest in ergonomics
and material science innovation
– Extends a powerful franchise that has
sold over 7 million chairs in 134 countries
12
Bringing innovative solutions to our customers
through the Living Office framework
Powerful brands deliver design and innovation leadership
– An insight-driven and research-based
framework for making place a strategic asset
– Delivers measurable results through
improved:
• Workplace Effectiveness
• Work Activity Support
• Workplace Experience
13
Unique combination of
value-drivers enabling
above industry-average
growth
14
LiveWork Heal Learn
The global leader dedicated
to creating inspiring places
Unique combination of value-drivers enabling above industry-average growth
Capitalizing on an expanded total addressable market
Unique combination of value-drivers enabling above industry-average growth
North America (Contract)(1)
European (Contract)(2)
Target Emerging Markets (Contract)(3)
Consumer Lifestyle(4)
Healthcare/Education/Hospitality(3)
Small/Medium Business(3)
Textiles(5)
$8B
$10B
$8B
$4B
$6B
$4B
$2B
$1B
$9B
$2B
$4B
2011—$24B 2016—$35B
Source:
(1) BIFMA; (2) CSIL; (3) Company Estimate;
(4) Parthenon Group (2014); (5) ACT Financial Survey (2015)
15
Unparalleled multi-channel reach
including direct to consumer
Unique combination of value-drivers enabling above industry-average growth
– Over 600 contract dealers in 109 countries
– 30 Design Within Reach retail studios
– Direct to consumer catalog
– Multiple global e-commerce storefronts
– Opportunities to grow share of
channel/customer wallet
Catalog
30 Studios600 Dealers
y
E-Commerce
16
17
Clear path to revenue growth and margin
expansion in Consumer business
Unique combination of value-drivers enabling above industry-average growth
– Double digit revenue growth opportunity from Design Within Reach
by transforming legacy studios to larger formats and adding new locations
• 4 to 6 new or expanded studios per year
• Increase studio count to mid-forties and
square footage to over 500,000 by 2020
– Increase exclusive product mix from 60% to 70% of revenue
– Continued e-commerce growth
– Double digit operating margin target by 2020
18
Positioned for global growth
Unique combination of value-drivers enabling above industry-average growth
– Growing and profitable business outside North America
– Favorable trends and demographics in Asia-Pacific
– Further growth opportunities:
• Leverage Herman Miller and POSH brands in Asia-Pacific
• Expand dealer networks and e-commerce platforms
• Regional R&D and manufacturing capabilities support
new product growth
• Leverage Healthcare, Education and Consumer franchises
2011 2016
+7%
CAGR
ELA Revenue
$413M
$290M
19
Strong track record of
performance and healthy
returns on capital
20
Organic* revenue growth of 5% at a premium
to North America Contract industry growth of 2.8%,
and robust EBITDA growth over last 5 years
Strong track record of performance and healthy returns on capital
FY11 FY12 FY13 FY14 FY15 FY16
$1.9B
$2.1B
$1.8B$1.7B$1.6B
FY11 FY12 FY13 FY14 FY15 FY16
$206M $235M$182M$180M$165M
Revenue Adjusted EBITDA(1)
(1) Represents a non-GAAP measure; see Appendix for reconciliation
9%
7%
CAGR
CAGR
$2.3B
$259M
21
Focused acquisition strategy accelerates
our performance
Strong track record of performance and healthy returns on capital
2010 2012 2013 2015
Net Sales in FY16
+$540 million
Entering New Areas:
Audience
Channel
Geography
Product
Gross Margin in FY16
+40 bps
22
Best-in-class lean enterprise
delivers leverage
Strong track record of performance and healthy returns on capital
– Focused improvement through:
• Customer first orientation
• Waste reduction
• Asset efficiency
– One of three U.S. companies showcased by
Toyota Production System Support Center
– Further opportunity to spread more
broadly and deeply through the organization
and across the entire value chain
West Michigan
sales per mfg.
square foot
+28%
Manufacturing
Quality
Engineering lead
time for custom
requests
+17% +39%
Improvement from FY11 to FY16
Robust free cash flow generation and disciplined
approach to capital allocation drives average annual
return on invested capital of 23% over last five years
Strong track record of performance and healthy returns on capital
(1) Cash flow from operations less CAPEX plus domestic pension contributions; (2) Debt plus domestic pension liabilities
23
FY11 FY12 FY13 FY14 FY15 FY16 CURRENT
$41
Adj. Free Cash Flow (1)
($ millions)
FY11 FY12 FY13 FY14 FY15 FY16
$150
$100
$50
$0
Debt and Pension Liabilities (2)
($ millions)
$300
$250
$200
$150
$100
$125
FY11 FY12 FY13 FY14 FY15 FY16
Dividends Paid
($ millions)
$35
$50
$40
$35
$30
$25
$20
$15
$10
$5
$0
$95 $98
$112
$86
$104
$287 $266 $275
$251
$291
$222
$5 $5
$19
$30
$33
24
Compelling financial
outlook and opportunity
for margin expansion
25
Housing GDP Forecast
9.2 9.9
11.1 11.3 11.5
13.012.2
13.5
14.4
2009 2010 2011 2012 2013 2014 2015 2016 2017
North America Consumption AIA Consensus Construction Forecast
Existing Home Sales
(thousands of units)
Office
(% YOY Growth)
Housing Starts
(thousands of units)
2014 2015 2016 2017
4,940 5,250
5,358 5,443
History Forecast
Forecast
2014 2015 2016 2017
1,003
1,112
1,183 1,260
History Forecast
UK Europe &
Cent. Asia
Middle East
& N. Africa
IndiaChina Mexico
Macro industry trends
Compelling financial outlook and opportunity for margin expansion
2016
2017
14.7%
7.5%
Source: BIFMA (Feb 2016)
Source: World Bank (June 2016)Source: National Association of Realtors (Oct. 2016)
July 2016
2016
2017
2018
1.2%
2.5%
2.8% 2.9%
3.6%3.5%
6.7%
7.6% 7.7% 7.7%
2.5%
2.8%3.0%
6.5% 6.3%
2.0%2.1%2.1%
U.S. Architects Billing Index
Source: American Institute of Architects
55
56
54
52
50
48
46
44
Jan-1
3
M
ar
-1
3
M
ay
-1
3
Ju
l-1
3
Sep-1
3
N
ov
-1
3
Jan-1
4
M
ar
-1
4
M
ay
-1
4
Ju
l-1
4
Sep-1
4
N
ov
-1
4
Jan-1
5
M
ar
-1
5
M
ay
-1
5
Ju
l-1
5
Sep
t- 1
5
N
ov
- 1
5
Jan-1
6
M
a-1
6
M
ay
-1
6
Ju
l-1
6
Sep
t-1
6
Opportunity for continued above-average revenue
performance over the next three to five years
Compelling financial outlook and opportunity for margin expansion
Core Contract Industry 2-3%
New Products and Initiatives 1-1.5%
Consumer Growth 1-1.5%
Estimated Annual Organic Revenue Growth 4-6%
Targeted Acquisitions 1-2%
Estimated Annual Revenue Growth Including Acquisitions 5-8%
Revenue
26
Operating income growth of 2x to 2.5x the rate
of organic revenue growth
Compelling financial outlook and opportunity for margin expansion
– Structurally higher operating margins driven by:
• Expanding business and channel mix
• Consumer growth and higher exclusive product mix
• Volume leverage
• Lean enterprise focus
27
28
Our Compelling Story
Investment thesis
Compelling financial outlook
and opportunity for margin
expansion
Powerful brands
deliver design and
innovation leadership
A higher
ambition culture
Unique combination of
value-drivers enabling above
industry-average growth
Strong track record of
performance and healthy
returns on capital
Intro
Good morning everyone. It is our pleasure to present Herman Miller to you this morning. Let me start by thanking you for attending today. We value and truly appreciate your
interest in the company.
I would also point out to you that we’re very privileged to attend this conference and have this opportunity to talk to investors. I would like to thank the Baird team for hosting
us, we really appreciate it.
This call is being webcast live on hermanmiller.com, where you will also find our press release which contains supporting details and our presentation, including reconcilia-
tions of non-GAAP information referred to in our presentation and on this call. This presentation can also be downloaded on the hermanmiller.com webpage in the investor
section.
As a reminder, our comments today will include forward-looking statements as defined by the Securities and Exchange Commission that are subject to risks and uncertain-
ties, which could cause actual results and outcomes to differ from what we express or forecast. Please refer to our SEC filings for a complete review of those risks.
Appendix
Segment Overviews
31Appendix – Segment Overviews
Overview
FY16 Percent of Consolidated Revenues
Macro-Economic Drivers
Five Year Revenue Trend (in US$ millions) FY16 Adj. EBITDA Margin
13.5%
Description: Design, manufacture and sale of furniture products for office, education and healthcare environments in the United States and Canada
Source: BIFMA, February 2016
North America Consumption (in US$ billions) Healthcare Construction Spending (in US$ billions) Education Construction Spending (in US$ billions)
FY11 FY12 FY13 FY14 FY15 FY16
5 YEAR CAGR
2%
(4% organic)
Other Leading Economic Indicators include: Corporate profitability, service sector employment, Architectural Billings Index (ABI), Office vacancy rates, CEO and small business
confidence, Non-residential Construction
North America Furniture Solutions
Source: U.S. Census Bureau and AIA Fcst, July 2016 Source: U.S. Census Bureau and AIA Fcst, July 2016
19
93
19
94
19
95
1
99
6
1
99
7
1
99
8
1
99
9
2
00
0
2
00
1
2
00
2
2
00
3
2
00
4
2
00
5
2
00
6
2
00
7
2
00
8
2
00
9
2
01
0
2
01
1
2
01
2
2
01
3
2
01
4
2
01
5
2
01
6
20
17
20
02
2
00
3
2
00
4
2
00
5
2
00
6
2
00
7
2
00
8
2
00
9
2
01
0
2
01
1
2
01
2
2
01
3
2
01
4
2
01
5
2
01
6
20
17
20
02
2
00
3
2
00
4
2
00
5
2
00
6
2
00
7
2
00
8
2
00
9
2
01
0
2
01
1
2
01
2
2
01
3
2
01
4
2
01
5
2
01
6
20
17
HistoryHistory ForecastForecast History Forecast
73.9 74.3 74.3
79.7 84.9
96.8
104.9 103.2
88.4 87.1 91.485.1
79.784.785.0 79.1
27.1 79.3
32.2
34.4
38.5
43.8
46.9 44.8
39.3
45.342.6
40.038.4
42.5
40.2 40.7
1,225 1,219 1,222 1,216 1,242
$1500
$1300
$1100
$900
$700
$500
On-going revenue
Divested dealers
North America 59%
Specialty 10%
Consumer 13%
ELA 18%
8.3
9.2
9.9 10.6
12.3
13.4 13.6
14.9
12.4
10.3 10.1 10.6
11.9
12.9 13.4 13.0
9.2 9.9
11.1 11.3 11.5
12.2
13.0 13.5
14.4
1,332
32Appendix – Segment Overviews
FY16 Percent of Consolidated Revenues Five Year Revenue Trend (in US$ millions) FY16 Adj. EBITDA Margin
Source: CSIL (December 2015)
Regional Office Furniture Consumption (in US$ billions) GDP Forecast
413
5 YEAR CAGR
7%
2.0%2.1%2.1%
1.2%
2.5%
2.8% 2.9%
3.6%3.5%
6.7%
7.6% 7.7% 7.7%
2.5%
2.8%3.0%
6.5% 6.3%
2016
2017
2018
UK Europe &
Cent. Asia
Middle
East
& N. Africa
IndiaChina Mexico
Region Annual 5 Year CAGR
Consumption
Europe $8.0 -1.5%
China $10.7 12.7%
India $2.0 9.2%
Brazil $1.9 4.8%
Mexico $0.3 -1.6%
Source: World Bank (June 2016)
9.1%
Overview
Macro-Economic Drivers
Description: Design, manufacture and sale of furniture products primarily for office settings in EMEA (40% of sales in FY16), Latin America (18% of sales in FY16) and Asia-Pacific
(43% of sales in FY16)
ELA Furniture Solutions
FY11 FY12 FY13 FY14 FY15 FY16
North America 59%
Specialty 10%
Consumer 13%
ELA 18%
290
347 377
392 410
$500
$400
$300
$200
$100
$0
33
North America 59%
Specialty 10%
Consumer 13%
ELA 18%
FY16 Percent of Consolidated Revenues Five Year Revenue Trend (in US$ millions) FY16 Adj. EBITDA Margin
5 YEAR CAGR
24%
(9% organic) 10.3%
SpecialtyAppendix – Segment Overviews
FY10 FY11 FY12 FY13 FY14 FY15
Overview
Macro-Economic Drivers
Description: Design, manufacture and sale of high-craft furniture products and textiles focused on architect and design specifiers. The Specialty portfolio includes Geiger wood
products, Maharam textiles and Herman Miller Collection products.
Annual Fabric Sales (in US$ millions)
Source: ACT Financial Survey
AIA Consensus Construction Forecast
(% YOY Growth)
Source: The American Institute of Architects, July 2016
2016 2017
Non-Residential 5.8% 5.6%
Commercial Total 11.7% 6.5%
Office 14.7% 7.5%
Health 2.3% 5.0%
Education 6.5% 6.3%
Hotel 17.9% 7.6% 2009 2010 2011 2012 2013 2014 2015
738 814 895
929 990
760
1,069
80 94
112
206 220
$250
$200
$150
$100
$0
232
U.S. Architects Billing Index
55
56
54
52
50
48
46
44
Jan-1
3
M
ar
-1
3
M
ay
-1
3
Ju
l-1
3
Sep-1
3
N
ov
-1
3
Jan-1
4
M
ar
-1
4
M
ay
-1
4
Ju
l-1
4
Sep-1
4
N
ov
-1
4
Jan-1
5
M
ar
-1
5
M
ay
-1
5
Ju
l-1
5
Sep
t- 1
5
N
ov
- 1
5
Jan-1
6
M
a-1
6
M
ay
-1
6
Ju
l-1
6
Sep
t-1
6
Source: The American Institute of Architects
34
FY16 Percent of Consolidated Revenues Five Year Revenue Trend (in US$ millions) FY16 Adj. EBITDA Margin
54 64 64 68
271
5 YEAR CAGR
40%
(12% organic) 5.8%
ConsumerAppendix – Segment Overviews
FY11 FY12 FY13 FY14 FY15 FY16
Overview
Macro-Economic Drivers
Description: Sale of modern design furnishings and accessories in North America through multiple channels, including 32 Design Within Reach studios, eCommerce storefronts,
direct mailing catalogs and independent retailers.
Source: National Assoc. of Realtors U.S. Economic Outlook (Oct. 2016)
Existing Home Sales (thousands of units) Housing Starts (thousands of units) Furniture and Home Furnishing Stores
Annual Sales Growth
2010 2011 2012 2013 2014 2015
0.6%
2.6%
4.4%
3.6% 3.5%
5.7%Source: US Census Bureau
2014 2015 2016 2017
4,940 5,250 5,358
5,443
Source: National Assoc. of Realtors U.S. Economic Outlook (Oct. 2016)
History Forecast
2014 2015 2016 2017
1,112 1,183
1,260
History Forecast
1,003
North America 59%
Specialty 10%
Consumer 13%
ELA 18%
$300
$200
$100
$0
289
35
This presentation contains Adjusted EBITDA, Adjusted
EBITDA ratios, and Organic Sales Growth, all of which
constitute non-GAAP financial measures. Each of these
financial measures is calculated by excluding items
the Company believes are not indicative of its ongoing
operating performance. The Company presents these
non-GAAP financial measures because it considers
them to be important supplemental indicators of
financial performance and believes them to be useful
in analyzing ongoing results from operations.
These non-GAAP financial measures are not measures
of financial performance under GAAP and should not
be considered alternatives to GAAP. Non-GAAP financial
measures have limitations as analytical tools and should not
be considered in isolation or as a substitute for analysis of
the Company’s results as reported under GAAP. In addition,
you should be aware that in the future the Company may
incur expenses similar to the adjustments presented.
Appendix –Reconciliation of Non-GAAP Measures
36Appendix –Reconciliation of Non-GAAP Measures
Organic Sales Growth (Decline) by Reportable Segment ($ Millions); (unaudited)
Sales, as reported
Performance Adjustments
Dealer Divestitures
Cumulative foreign exchange
Acquisition-base year
Sales, pro forma
Compound Annual Growth Rate, as reported
Compound Annual Growth Rate, pro forma
$ 1,224.8
(99.6)
-
$ 1,125.2
$ 1,649.2
(99.6)
-
(13.0)
$ 1,536.6
$ 290.4
(13.0)
$ 277.4
$ 80.2
$ 80.2
$ 53.8
$ 53.8
$ 1,331.8
-
20.5
-
$ 1,352.3
1.7%
3.7%
$ 2,264.9
-
58.6
(366.2)
$ 1,957.3
6.6%
5.0%
$ 412.6
35.9
(64.4)
$ 384.1
7.3%
6.7%
$ 231.8
1.0
(107.5)
$ 125.3
23.6%
9.3%
$ 288.7
1.2
(194.3)
$ 95.6
39.9%
12.2%
North America ELA Specialty Consumer Total
2011 2011 2011 2011 20112016 2016 2016 2016 2016
37Appendix –Herman Miller Inc. Reconciliation of Non-GAAP Measures
Adjusted EBITDA by Reportable Segment ($ Millions) (unaudited)
Segment Operating Earnings
Add: Allocated Depreciation & Amortization
Add: Restructuring/Impairment Expenses
Adjusted EBITDA
Revenue by Segment
Adjusted EBITDA Margin
Segment Operating Earnings
Add: Allocated Depreciation & Amortization
Add: Acquisition-related Adjustments
Add: Legacy Pension Expenses
Add: Restructuring/Impairment Expenses
Less: POSH Contingent Consideration Reduction
Adjusted EBITDA
Revenue by Segment
Adjusted EBITDA Margin
Segment Operating Earnings
Add: Allocated Depreciation & Amortization
Add: Acquisition-related Adjustments
Add: Restructuring/Impairment Expenses
Less: Nonrecurring gains
Less: Other, net
Adjusted EBITDA
Revenue by Segment
Adjusted EBITDA Margin
$ 99.5
30.1
-
$ 129.6
$ 1,224.8
10.6%
$ 76.6
28.0
-
26.5
-
-
$ 131.1
$ 1,221.9
10.7%
$ 125.2
26.5
-
-
-
-
$ 151.7
$ 1,241.9
12.2%
$ 18.7
5.9
-
$ 24.6
$ 290.4
8.5%
$ 24.7
6.6
-
-
-
-
$ 31.3
$ 377.3
8.3%
$ 25.9
8.2
-
-
-
-
$ 34.1
$ 409.9
8.3%
$ (1.3)
2.3
-
$ 1.0
$ 80.2
1.3%
$ 1.8
2.4
-
1.7
-
-
$ 5.9
$ 111.7
5.3%
$ 13.5
7.4
-
--
-
$ 20.9
$ 219.9
9.5%
$ 12.1
0.8
-
$ 12.9
$ 53.8
23.9%
$ 13.6
0.6
-
-
-
-
$ 14.2
$ 64.0
22.2%
$ 14.7
7.3
7.8
-
-
-
$ 29.8
$ 270.5
11.0%
$ (5.7)
-
3.0
$ (2.7)
$ -
0.0%
$ (1.8)
-
-
-
1.2
-
$ (0.6)
$ -
0.0%
$ (15.9)
0.4
2.2
12.7
-
(0.7)
$ (1.3)
$ -
0.0%
$ 123.3
39.1
3.0
$ 165.4
$ 1,649.2
10.0%
$ 114.9
37.6
-
28.2
1.2
-
$ 181.9
$ 1,774.9
10.2%
$ 163.4
49.8
10.0
12.7
-
(0.7)
$ 235.2
$ 2,142.2
11.0%
$ 96.9
28.7
-
$ 125.6
$ 1,218.5
10.3%
$ (27.0)
26.8
-
147.0
-
-
$ 146.8
$ 1,216.3
12.1%
1.0%
$152.0
27.9
-
-
-
-
$179.9
$1,331.8
13.5%
$ 32.1
5.7
-
$ 37.8
$ 347.3
10.9%
$ (23.1)
7.6
-
-
-
(2.6)
$ 28.1
$ 392.2
7.2%
4.6%
$35.3
8.5
-
-
(6.1)
-
$37.7
$412.6
9.1%
$ 1.1
2.2
-
$3.3
$ 94.1
3.5%
$ (5.3)
6.8
1.4
12.2
-
-
$ 15.1
$ 205.8
7.3%
12.4%
$16.4
7.4
-
-
-
-
$23.8
$231.8
10.3%
$ 14.1
0.7
-
$ 14.8
$ 64.2
23.1%
$ 9.9
1.2
-
5.2
-
-
$ 16.3
$ 67.7
24.1%
0.4%
$8.1
8.6
-
-
-
-
$16.7
$288.7
5.8%
$ (6.6)
-
5.4
$ (1.2)
$ -
0.0%
$ (26.4)
-
-
-
26.5
-
$ 0.1
$ -
0.0%
0.0%
$(0.3)
0.6
-
-
-
0.5
$0.8
$-
0.0%
$ 137.6
37.3
5.4
$ 180.3
$ 1,724.1
10.5%
$ (25.7)
42.4
1.4
164.4
26.5
(2.6)
$ 206.4
$ 1,882.0
11.0%
2.4%
$211.5
53.0
-
-
(6.1)
0.5
$258.9
$2,264.9
11.4%
NA NAELA ELASpecialty Specialty
2011 Actual 2012 Actual
2013 Actual 2014 Actual
2015 Actual
Consumer ConsumerCorporate CorporateConsol. Consol.
2016 Actual