Attached files
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| 8-K - FORM 8-K - NEWELL BRANDS INC. | d654903d8k.htm |
Exhibit 99.1
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| For the three months ended September 30, 2018 | For the nine months ended September 30, 2018 | |||||||||||||||||||||||
| Press Release | 10Q | Change | Press Release | 10Q | Change | |||||||||||||||||||
| Net sales |
$ | 2,277.2 | $ | 2,277.2 | $ | — | $ | 6,290.3 | $ | 6,290.3 | $ | — | ||||||||||||
| Cost of products sold |
1,460.2 | 1,460.2 | — | 4,093.2 | 4,093.2 | — | ||||||||||||||||||
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| GROSS PROFIT |
817.0 | 817.0 | — | 2,197.1 | 2,197.1 | — | ||||||||||||||||||
| % of sales |
35.9 | % | 35.9 | % | 34.9 | % | 34.9 | % | ||||||||||||||||
| Selling, general and administrative expenses |
575.7 | 575.7 | — | 1,815.6 | 1,815.6 | — | ||||||||||||||||||
| 25.3 | % | 25.3 | % | 28.9 | % | 28.9 | % | |||||||||||||||||
| Restructuring costs, net |
11.4 | 11.4 | — | 62.5 | 62.5 | — | ||||||||||||||||||
| Impairment of goodwill, intangibles and other assets |
8,133.7 | 8,133.7 | — | 8,165.3 | 8,165.3 | — | ||||||||||||||||||
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| OPERATING LOSS |
(7,903.8 | ) | (7,903.8 | ) | — | (7,846.3 | ) | (7,846.3 | ) | — | ||||||||||||||
| % of sales |
(347.1 | )% | (347.1 | )% | (124.7 | )% | (124.7 | )% | ||||||||||||||||
| Nonoperating expenses: |
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| Interest expense, net |
105.6 | 105.6 | — | 342.2 | 342.2 | — | ||||||||||||||||||
| Loss on extinguishment of debt |
— | — | — | — | — | — | ||||||||||||||||||
| Other (income) expense, net |
3.9 | 3.9 | — | (10.7 | ) | (10.7 | ) | — | ||||||||||||||||
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| 109.5 | 109.5 | — | 331.5 | 331.5 | — | |||||||||||||||||||
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| LOSS BEFORE INCOME TAXES |
(8,013.3 | ) | (8,013.3 | ) | — | (8,177.8 | ) | (8,177.8 | ) | — | ||||||||||||||
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| % of sales |
(351.9 | )% | (351.9 | )% | (130.0 | )% | (130.0 | )% | ||||||||||||||||
| Income tax benefit |
(1,218.0 | ) | (1,218.0 | ) | — | (1,251.4 | ) | (1,251.4 | ) | — | ||||||||||||||
| Effective rate |
15.2 | % | 15.2 | % | 15.3 | % | 15.3 | % | ||||||||||||||||
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| LOSS FROM CONTINUING OPERATIONS |
(6,795.3 | ) | (6,795.3 | ) | — | (6,926.4 | ) | (6,926.4 | ) | — | ||||||||||||||
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| % of sales |
(298.4 | )% | (298.4 | )% | (110.1 | )% | (110.1 | )% | ||||||||||||||||
| Loss from discontinued operations, net of tax |
(317.1 | ) | (515.7 | ) | 198.6 | (1.0 | ) | (199.6 | ) | 198.6 | ||||||||||||||
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| NET LOSS |
$ | (7,112.4 | ) | $ | (7,311.0 | ) | $ | 198.6 | $ | (6,927.4 | ) | $ | (7,126.0 | ) | $ | 198.6 | ||||||||
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| % of sales |
(312.3 | )% | (321.1 | )% | (110.1 | )% | (113.3 | )% | ||||||||||||||||
| Weighted average common shares outstanding: |
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| Basic |
471.0 | 471.0 | 481.1 | 481.1 | ||||||||||||||||||||
| Diluted |
471.0 | 471.0 | 481.1 | 481.1 | ||||||||||||||||||||
| Earnings (loss) per share: |
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| Basic: |
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| Income (loss) from continuing operations |
$ | (14.43 | ) | $ | (14.43 | ) | $ | — | $ | (14.40 | ) | $ | (14.40 | ) | $ | — | ||||||||
| Income (loss) from discontinued operations |
(0.67 | ) | (1.09 | ) | 0.42 | — | (0.41 | ) | 0.41 | |||||||||||||||
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| NET LOSS |
$ | (15.10 | ) | $ | (15.52 | ) | $ | 0.42 | $ | (14.40 | ) | $ | (14.81 | ) | $ | 0.41 | ||||||||
| Diluted: |
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| Income (loss) from continuing operations |
$ | (14.43 | ) | $ | (14.43 | ) | $ | — | $ | (14.40 | ) | $ | (14.40 | ) | $ | — | ||||||||
| Income (loss) from discontinued operations |
(0.67 | ) | (1.09 | ) | 0.42 | — | (0.41 | ) | 0.41 | |||||||||||||||
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| NET LOSS |
$ | (15.10 | ) | $ | (15.52 | ) | $ | 0.42 | $ | (14.40 | ) | $ | (14.81 | ) | $ | 0.41 | ||||||||
| Dividends per share |
$ | 0.23 | $ | 0.23 | $ | 0.69 | $ | 0.69 | $ | — | ||||||||||||||
NEWELL BRANDS INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in millions)
| As of September 30, 2018 | ||||||||||||
| Press Release | 10Q | Change | ||||||||||
| Assets |
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| Current assets |
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| Cash and cash equivalents |
$ | 1,443.6 | $ | 1,443.6 | $ | — | ||||||
| Accounts receivable, net |
2,015.4 | 2,015.4 | — | |||||||||
| Inventories, net |
1,857.5 | 1,857.5 | — | |||||||||
| Prepaid expenses and other current assets |
284.5 | 279.6 | (4.9 | ) | ||||||||
| Current assets held for sale |
6,718.2 | 6,612.4 | (105.8 | ) | ||||||||
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| Total current assets |
12,319.2 | 12,208.5 | (110.7 | ) | ||||||||
| Property, plant and equipment, net |
916.9 | 916.9 | — | |||||||||
| Goodwill |
2,973.6 | 2,973.6 | — | |||||||||
| Other intangible assets, net |
5,771.4 | 5,771.4 | — | |||||||||
| Deferred income taxes |
207.4 | 206.1 | (1.3 | ) | ||||||||
| Other assets |
321.6 | 321.6 | — | |||||||||
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| TOTAL ASSETS |
$ | 22,510.1 | $ | 22,398.1 | $ | (112.0 | ) | |||||
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| Liabilities and stockholders’ equity |
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| Current liabilities |
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| Accounts payable |
$ | 1,172.0 | $ | 1,172.0 | $ | — | ||||||
| Accrued compensation |
139.6 | 139.6 | — | |||||||||
| Other accrued liabilities |
1,256.1 | 1,256.1 | — | |||||||||
| Short-term debt and current portion of long-term debt |
316.3 | 316.3 | — | |||||||||
| Current liabilities held for sale |
1,408.5 | 1,212.7 | (195.8 | ) | ||||||||
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| Total current liabilities |
4,292.5 | 4,096.7 | (195.8 | ) | ||||||||
| Long-term debt |
9,296.8 | 9,296.8 | — | |||||||||
| Deferred income taxes |
1,281.3 | 1,563.7 | 282.4 | |||||||||
| Other non-current liabilities |
1,414.7 | 1,414.7 | — | |||||||||
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| Total liabilities |
$ | 16,285.3 | $ | 16,371.9 | $ | 86.6 | ||||||
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| Stockholders’ equity |
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| Total stockholders’ equity attributable to parent |
6,191.9 | 5,993.3 | (198.6 | ) | ||||||||
| Total stockholders’ equity attributable to non-controlling interests |
32.9 | 32.9 | — | |||||||||
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| Total stockholders’ equity |
$ | 6,224.8 | $ | 6,026.2 | $ | (198.6 | ) | |||||
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| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 22,510.1 | $ | 22,398.1 | $ | (112.0 | ) | |||||
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NEWELL BRANDS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in millions)
| For the nine months ended September 30, 2018 | ||||||||||||
| Press Release | 10Q | Change | ||||||||||
| Operating Activities |
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| Net loss |
$ | (6,927.4 | ) | $ | (7,126.0 | ) | $ | (198.6 | ) | |||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
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| Depreciation and amortization |
337.6 | 337.6 | — | |||||||||
| Impairment of goodwill, intangibles and other assets |
9,136.1 | 9,248.1 | 112.0 | |||||||||
| Gain from sale of businesses, net |
(489.3 | ) | (489.3 | ) | — | |||||||
| Loss on extinguishment of debt |
— | — | — | |||||||||
| Deferred income taxes |
(1,279.7 | ) | (1,193.1 | ) | 86.6 | |||||||
| Stock based compensation expense |
57.9 | 57.9 | — | |||||||||
| Other, net |
2.9 | 2.9 | — | |||||||||
| Changes in operating accounts excluding the effects of acquisitions and divestitures: |
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| Accounts receivable |
(122.4 | ) | (122.4 | ) | — | |||||||
| Inventories |
(262.3 | ) | (262.3 | ) | — | |||||||
| Accounts payable |
(61.4 | ) | (61.4 | ) | — | |||||||
| Accrued liabilities and other |
(210.4 | ) | (210.4 | ) | — | |||||||
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| Net cash provided by (used in) operating activities |
$ | 181.6 | $ | 181.6 | $ | — | ||||||
| Investing Activities |
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| Proceeds from sale of divested businesses |
2,774.6 | 2,774.6 | — | |||||||||
| Acquisitions and acquisition-related activities |
— | — | — | |||||||||
| Capital expenditures |
(273.7 | ) | (273.7 | ) | — | |||||||
| Other investing activities |
58.4 | 58.4 | — | |||||||||
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| Net cash provided by (used in) investing activities |
$ | 2,559.3 | $ | 2,559.3 | $ | — | ||||||
| Financing Activities |
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| Net short term borrowings |
(903.9 | ) | (903.9 | ) | — | |||||||
| Payments on long-term debt |
(2.0 | ) | (2.0 | ) | — | |||||||
| Repurchase and retirement of shares of common stock |
(511.1 | ) | (511.1 | ) | — | |||||||
| Cash dividends |
(332.3 | ) | (332.3 | ) | — | |||||||
| Payments to dissenting shareholders |
— | — | — | |||||||||
| Option proceeds net of repurchase of restricted shares for vesting and other, net |
(18.7 | ) | (18.7 | ) | — | |||||||
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| Net cash used in financing activities |
$ | (1,768.0 | ) | $ | (1,768.0 | ) | $ | — | ||||
| Exchange rate effect on cash and cash equivalents |
(15.0 | ) | (15.0 | ) | — | |||||||
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| Increase (decrease) in cash and cash equivalents |
957.9 | 957.9 | — | |||||||||
| Cash and cash equivalents at beginning of period |
485.7 | 485.7 | — | |||||||||
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| Cash and cash equivalents at end of period |
$ | 1,443.6 | $ | 1,443.6 | $ | — | ||||||
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