First Quarter Adjusted Diluted EPS $0.431;
First Quarter Diluted EPS $0.37
ST. PAUL, Minn., March 23, 2016 (GLOBE NEWSWIRE) -- H.B. Fuller Company (NYSE:FUL) today reported financial results for the first quarter that ended February 27, 2016.
Items of Note for the First Quarter of 2016:
- Constant currency revenue increased 5.3 percent compared to the prior year, led by solid growth in Engineering Adhesives along with growth in EIMEA, Construction Products and Asia Pacific;
- Gross profit margin was 29.0 percent, an improvement of 430 basis points versus the prior year’s first quarter;
- Adjusted EBITDA margin2 was 12.4 percent; adjusted EBITDA margin in EIMEA segment was up 560 basis points relative to same period last year;
- Adjusted diluted earnings per share of $0.431, up 43 percent versus last year’s first quarter.
First Quarter 2016 Results:
Net income for the first quarter of 2016 was $18.9 million, or $0.37 per diluted share, versus net income of $9.7 million, or $0.19 per diluted share, in last year’s first quarter. Adjusted diluted earnings per share in the first quarter of 2016 were $0.431, up 43 percent versus the prior year’s adjusted result of $0.301.
Net revenue for the first quarter of 2016 was $474.3 million, up 0.8 percent versus the first quarter of 2015. Higher volume positively impacted net revenue growth by 5.8 percentage points. Lower average selling prices and foreign currency translation negatively impacted net revenue growth by 0.5 and 4.5 percentage points, respectively. Constant currency revenue grew by 5.3 percent year-over-year.
During the quarter, we continued to improve margins through effective management of raw material costs and end user pricing as well as driving efficiencies in our supply chain and operations. These factors, combined with mix improvement, contributed to a 430 basis point increase in gross profit margin. We recorded unusually high foreign currency losses in the quarter, almost entirely related to the devaluation of the Argentine peso. The relevant underlying exposure in Argentina has now been substantially eliminated.
As we announced previously, we have changed our operating segment structure to better align our organization to the most significant growth opportunities. The primary change is the introduction of a new operating segment which we call Engineering Adhesives. This new segment includes our electronic materials, Tonsan engineering adhesives and automotive business, all of which have demonstrated strong growth and profit performance. The new segment alignment allows us to better allocate resources and accelerate our profit and growth plans. The attached schedules provide segment financial performance metrics for the newly defined segments. In addition, a pro-forma schedule is included which shows the results as they would have been reported under the previous segment reporting structure.
”We are off to a solid start to our 2016 fiscal year,” said Jim Owens, H.B. Fuller president and chief executive officer. “Our 2020 strategic plan identified specific areas of profitable growth and differential management of our EBITDA margins as key drivers. This quarter’s performance aligned with our strategy as we delivered solid organic growth and very strong margin improvement in our targeted segments. Our new engineering adhesives segment delivered growth and margin improvement as expected and our geographical segments all showed solid EBITDA margin performance. Our efforts resulted in over a 40 percent increase in adjusted diluted EPS versus last year’s first quarter and a first quarter EBITDA margin well above historical levels.”
Balance Sheet and Cash Flow:
At the end of the first quarter of 2016, we had cash totaling $127 million and total debt of $723 million. This compares to fourth quarter 2015 cash and debt levels of $119 million and $723 million, respectively. Sequentially, net debt was down by $7 million. Cash flow from operations was positive $43 million in the first quarter, reflecting strong net income and normal seasonal patterns. Capital expenditures were $23 million in the first quarter.
Fiscal 2016 Outlook:
Our financial performance guidance for 2016 is unchanged relative to the original guidance we provided in January of this year. Constant currency growth is expected to be around 4 percent for 2016 versus the 2015 fiscal year. The constant currency growth rate was higher in the first quarter because we recorded a full quarter of Tonsan revenue this year and only one month last year. We expect to generate approximately $290 million of EBITDA in 2016, reflecting a full-year EBITDA margin of about 14 percent. Our core tax rate, excluding the impact of discrete items, is expected to be 33 percent. We plan to invest $60 million in capital items in 2016. We are maintaining our adjusted diluted EPS plan for the 2016 fiscal year of $2.40 to $2.60.
Conference Call:
The Company will host an investor conference call to discuss first quarter 2016 results on Thursday, March 24, 2016, at 9:30 a.m. Central U.S. time (10:30 a.m. Eastern U.S. time). The conference call audio and accompanying presentation slides will be available to all interested parties via a simultaneous webcast at www.hbfuller.com under the Investor Relations section. The event is scheduled to last one hour. For those unable to listen live, an audio replay of the event along with the accompanying presentation will be archived on the Company’s website.
Regulation G:
The information presented in this earnings release regarding segment operating income, adjusted diluted earnings per share and earnings before interest, taxes, depreciation, and amortization (EBITDA) does not conform to generally accepted accounting principles (GAAP) and should not be construed as an alternative to the reported results determined in accordance with GAAP. Management has included this non-GAAP information to assist in understanding the operating performance of the Company and its operating segments as well as the comparability of results. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported GAAP results in the tables below.
About H.B. Fuller Company:
For over 125 years, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2015 net revenue of $2.1 billion, H.B. Fuller’s commitment to innovation brings together people, products and processes that answer and solve some of the world's biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in packaging, hygiene, general assembly, electronic and assembly materials, paper converting, woodworking, construction, automotive and consumer businesses. And our promise to our people connects them with opportunities to innovate and thrive. For more information, visit us at www.hbfuller.com and subscribe to our blog.
Safe Harbor for Forward-Looking Statements:
Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: the Company's ability to effectively integrate and operate acquired businesses; the ability to effectively implement Project ONE; political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; geographic and product mix; availability and price of raw materials; the Company's relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and environmental matters; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Further information about the various risks and uncertainties can be found in the Company's SEC 10-K filing for the fiscal year ended November 28, 2015. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the Company and the regions where the Company does business make it difficult to determine with certainty the increases or decreases in net revenue resulting from changes in the volume of products sold, currency impact, changes in product mix, and selling prices. However, management's best estimates of these changes as well as changes in other factors have been included.
| H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||
| In thousands, except per share amounts (unaudited) | |||||||||||||||||
| 13 Weeks Ended | Percent of | 13 Weeks Ended | Percent of | ||||||||||||||
| February 27, 2016 | Net Revenue | February 28, 2015 | Net Revenue | ||||||||||||||
| Net revenue | $ | 474,326 | 100.0 | % | $ | 470,661 | 100.0 | % | |||||||||
| Cost of sales | (336,721 | ) | (71.0 | %) | (354,455 | ) | (75.3 | %) | |||||||||
| Gross profit | 137,605 | 29.0 | % | 116,206 | 24.7 | % | |||||||||||
| Selling, general and administrative expenses | (99,767 | ) | (21.0 | %) | (94,833 | ) | (20.1 | %) | |||||||||
| Special charges, net | (413 | ) | (0.1 | %) | (2,361 | ) | (0.5 | %) | |||||||||
| Other income (expense), net | (5,082 | ) | (1.1 | %) | 363 | 0.1 | % | ||||||||||
| Interest expense | (6,308 | ) | (1.3 | %) | (6,102 | ) | (1.3 | %) | |||||||||
| Income before income taxes and income from equity method investments | 26,035 | 5.5 | % | 13,273 | 2.8 | % | |||||||||||
| Income taxes | (8,760 | ) | (1.8 | %) | (4,769 | ) | (1.0 | %) | |||||||||
| Income from equity method investments | 1,692 | 0.4 | % | 1,291 | 0.3 | % | |||||||||||
| Net income including non-controlling interests | 18,967 | 4.0 | % | 9,795 | 2.1 | % | |||||||||||
| Net income attributable to non-controlling interests | (49 | ) | (0.0 | %) | (85 | ) | (0.0 | %) | |||||||||
| Net income attributable to H.B. Fuller | $ | 18,918 | 4.0 | % | $ | 9,710 | 2.1 | % | |||||||||
| Basic income per common share attributable to H.B. Fuller | $ | 0.38 | $ | 0.19 | |||||||||||||
| Diluted income per common share attributable to H.B. Fuller | $ | 0.37 | $ | 0.19 | |||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||
| Basic | 49,958 | 50,188 | |||||||||||||||
| Diluted | 50,995 | 51,379 | |||||||||||||||
| Dividends declared per common share | $ | 0.13 | $ | 0.12 | |||||||||||||
| Selected Balance Sheet Information (subject to change prior to filing of the Company's Quarterly Report on Form 10-Q) | ||||||||
| February 27, 2016 | November 28, 2015 | February 28, 2015 | ||||||
| Cash & cash equivalents | $ | 126,771 | $ | 119,168 | $ | 71,574 | ||
| Trade accounts receivable, net | 335,403 | 364,704 | 335,536 | |||||
| Inventories | 264,837 | 248,504 | 275,038 | |||||
| Trade payables | 162,513 | 177,864 | 195,000 | |||||
| Total assets | 2,023,336 | 2,042,252 | 2,097,472 | |||||
| Total debt | 723,374 | 722,863 | 763,570 | |||||
| H.B. FULLER COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||
| REGULATION G RECONCILIATION | ||||||||||||||||||||||||||
| In thousands, except per share amounts (unaudited) | ||||||||||||||||||||||||||
| % of | Adjusted | % of | ||||||||||||||||||||||||
| 13 Weeks Ended | Net | 13 Weeks Ended | Net | |||||||||||||||||||||||
| February 27, 2016 | Revenue | Adjustments | February 27, 2016 | Revenue | ||||||||||||||||||||||
| Net revenue | $ | 474,326 | 100.0 | % | $ | - | $ | 474,326 | 100.0 | % | ||||||||||||||||
| Cost of sales | (336,721 | ) | (71.0 | %) | (1,891 | ) | (334,830 | ) | (70.6 | %) | ||||||||||||||||
| Gross profit | 137,605 | 29.0 | % | (1,891 | ) | 139,496 | 29.4 | % | ||||||||||||||||||
| Selling, general and administrative expenses | (99,767 | ) | (21.0 | %) | (732 | ) | (99,035 | ) | (20.9 | %) | ||||||||||||||||
| Acquisition and transformation related costs | (105 | ) | ||||||||||||||||||||||||
| Workforce reduction costs | 1 | |||||||||||||||||||||||||
| Facility exit costs | (273 | ) | ||||||||||||||||||||||||
| Other related costs | (36 | ) | ||||||||||||||||||||||||
| Special charges, net | (413 | ) | (0.1 | %) | (413 | ) | - | 0.0 | % | |||||||||||||||||
| Other income (expense), net | (5,082 | ) | (1.1 | %) | - | (5,082 | ) | (1.1 | %) | |||||||||||||||||
| Interest expense | (6,308 | ) | (1.3 | %) | (75 | ) | (6,233 | ) | (1.3 | %) | ||||||||||||||||
| Income before income taxes and income from equity method investments | 26,035 | 5.5 | % | (3,111 | ) | 29,146 | 6.1 | % | ||||||||||||||||||
| Income taxes | (8,760 | ) | (1.8 | %) | 229 | (8,989 | ) | (1.9 | %) | |||||||||||||||||
| - Effective tax rate | 33.6 | % | 7.4 | % | 30.8 | % | ||||||||||||||||||||
| Income from equity method investments | 1,692 | 0.4 | % | - | 1,692 | 0.4 | % | |||||||||||||||||||
| Net income including non-controlling interests | 18,967 | 4.0 | % | (2,882 | ) | 21,849 | 4.6 | % | ||||||||||||||||||
| Net income attributable to non-controlling interests | (49 | ) | (0.0 | %) | - | (49 | ) | (0.0 | %) | |||||||||||||||||
| Net income attributable to H.B. Fuller | $ | 18,918 | 4.0 | % | $ | (2,882 | ) | $ | 21,800 | 4.6 | % | |||||||||||||||
| Basic income (loss) per common share attributable to H.B. Fuller | $ | 0.38 | $ | (0.06 | ) | $ | 0.44 | |||||||||||||||||||
| Diluted income (loss) per common share attributable to H.B. Fuller | $ | 0.37 | $ | (0.06 | ) | $ | 0.43 1 | |||||||||||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 49,958 | 49,958 | 49,958 | |||||||||||||||||||||||
| Diluted | 50,995 | 50,995 | 50,995 | |||||||||||||||||||||||
| H.B. FULLER COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||
| REGULATION G RECONCILIATION | ||||||||||||||||||||||||||
| In thousands, except per share amounts (unaudited) | ||||||||||||||||||||||||||
| % of | Adjusted | % of | ||||||||||||||||||||||||
| 13 Weeks Ended | Net | 13 Weeks Ended | Net | |||||||||||||||||||||||
| February 28, 2015 | Revenue | Adjustments | February 28, 2015 | Revenue | ||||||||||||||||||||||
| Net revenue | $ | 470,661 | 100.0 | % | $ | - | $ | 470,661 | 100.0 | % | ||||||||||||||||
| Cost of sales | (354,455 | ) | (75.3 | %) | (3,150 | ) | (351,305 | ) | (74.6 | %) | ||||||||||||||||
| Gross profit | 116,206 | 24.7 | % | (3,150 | ) | 119,356 | 25.4 | % | ||||||||||||||||||
| Selling, general and administrative expenses | (94,833 | ) | (20.1 | %) | (838 | ) | (93,995 | ) | (20.0 | %) | ||||||||||||||||
| Acquisition and transformation related costs | (472 | ) | ||||||||||||||||||||||||
| Workforce reduction costs | (56 | ) | ||||||||||||||||||||||||
| Facility exit costs | (1,529 | ) | ||||||||||||||||||||||||
| Other related costs | (304 | ) | ||||||||||||||||||||||||
| Special charges, net | (2,361 | ) | (0.5 | %) | (2,361 | ) | - | 0.0 | % | |||||||||||||||||
| Other income (expense), net | 363 | 0.1 | % | - | 363 | 0.1 | % | |||||||||||||||||||
| Interest expense | (6,102 | ) | (1.3 | %) | (100 | ) | (6,002 | ) | (1.3 | %) | ||||||||||||||||
| Income before income taxes and income from equity method investments | 13,273 | 2.8 | % | (6,449 | ) | 19,722 | 4.2 | % | ||||||||||||||||||
| Income taxes | (4,769 | ) | (1.0 | %) | 967 | (5,736 | ) | (1.2 | %) | |||||||||||||||||
| - Effective tax rate | 35.9 | % | 15.0 | % | 29.1 | % | ||||||||||||||||||||
| Income from equity method investments | 1,291 | 0.3 | % | - | 1,291 | 0.3 | % | |||||||||||||||||||
| Net income including non-controlling interests | 9,795 | 2.1 | % | (5,482 | ) | 15,277 | 3.2 | % | ||||||||||||||||||
| Net income attributable to non-controlling interests | (85 | ) | (0.0 | %) | - | (85 | ) | (0.0 | %) | |||||||||||||||||
| Net income attributable to H.B. Fuller | $ | 9,710 | 2.1 | % | $ | (5,482 | ) | $ | 15,192 | 3.2 | % | |||||||||||||||
| Basic income (loss) per common share attributable to H.B. Fuller | $ | 0.19 | $ | (0.11 | ) | $ | 0.30 | |||||||||||||||||||
| Diluted income (loss) per common share attributable to H.B. Fuller | $ | 0.19 | $ | (0.11 | ) | $ | 0.30 1 | |||||||||||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 50,188 | 50,188 | 50,188 | |||||||||||||||||||||||
| Diluted | 51,379 | 51,379 | 51,379 | |||||||||||||||||||||||
| H.B. FULLER COMPANY AND SUBSIDIARIES | ||||||||||||||||||
| ADJUSTED EARNINGS PER SHARE RECONCILIATION | ||||||||||||||||||
| In thousands (unaudited) | ||||||||||||||||||
| 13 weeks ended February 27, 2016 | 13 weeks ended February 28, 2015 | |||||||||||||||||
| Income | Income | |||||||||||||||||
| before | Income | Diluted | before | Income | Diluted | |||||||||||||
| Income Tax | Taxes | EPS | Income Tax | Taxes | EPSa | |||||||||||||
| GAAP Earnings | $ | 27,678 | $ | 8,760 | $ | 0.37 | $ | 14,479 | $ | 4,769 | $ | 0.19 | ||||||
| Special charges, net | 413 | 68 | 0.01 | 2,361 | 330 | 0.04 | ||||||||||||
| Acquisition project costsb | 121 | 39 | 0.00 | 3,145 | 419 | 0.06 | ||||||||||||
| Construction Productsc | - | - | - | 571 | 218 | 0.01 | ||||||||||||
| EIMEA business integration costsd | 1,611 | 122 | 0.03 | - | - | - | ||||||||||||
| Tonsan call option agreemente | 966 | - | 0.02 | 100 | - | 0.00 | ||||||||||||
| Otherf | - | - | - | 271 | - | 0.01 | ||||||||||||
| Adjusted Earnings | $ | 30,789 | $ | 8,989 | $ | 0.43 | $ | 20,928 | $ | 5,736 | $ | 0.30 | ||||||
| a Income per share amounts may not add due to rounding | ||||||||||||||||||
| b Non-recurring costs related to integrating and accounting for past and potential acquisitions | ||||||||||||||||||
| c Non-recurring costs related to the ramp up of new business with Lowes and the combination of facilities in Illinois | ||||||||||||||||||
| d Non-recurring costs related to EIMEA restructuring announced November 2015 | ||||||||||||||||||
| e Non-recurring non-cash costs related to accretion and revaluation of the Tonsan call option agreement | ||||||||||||||||||
| f Non-recurring costs related to the completion and start-up of a new electronics facility in Yantai China | ||||||||||||||||||
| H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||
| SEGMENT FINANCIAL INFORMATION | |||||||||
| In thousands (unaudited) | |||||||||
| 13 Weeks Ended | 13 Weeks Ended | ||||||||
| February 27, 2016 | February 28, 2015 | ||||||||
| Net Revenue: | |||||||||
| Americas Adhesives | $ | 183,319 | $ | 194,073 | |||||
| EIMEA | 124,291 | 134,115 | |||||||
| Asia Pacific | 53,860 | 55,343 | |||||||
| Construction Products | 60,074 | 58,456 | |||||||
| Engineering Adhesives | 52,782 | 28,674 | |||||||
| Total H.B. Fuller | $ | 474,326 | $ | 470,661 | |||||
| Adjusted Segment Operating Income:3 | |||||||||
| Americas Adhesives | $ | 26,299 | $ | 21,854 | |||||
| EIMEA | 7,799 | 840 | |||||||
| Asia Pacific | 3,765 | 3,195 | |||||||
| Construction Products | 799 | 1,643 | |||||||
| Engineering Adhesives | 1,799 | (2,171 | ) | ||||||
| Total H.B. Fuller | $ | 40,461 | $ | 25,361 | |||||
| Adjusted Depreciation Expense: | |||||||||
| Americas Adhesives | $ | 3,713 | $ | 3,890 | |||||
| EIMEA | 3,603 | 3,901 | |||||||
| Asia Pacific | 1,386 | 1,398 | |||||||
| Construction Products | 1,273 | 1,476 | |||||||
| Engineering Adhesives | 1,555 | 913 | |||||||
| Total H.B. Fuller | $ | 11,530 | $ | 11,578 | |||||
| Amortization Expense: | |||||||||
| Americas Adhesives | $ | 1,017 | $ | 1,074 | |||||
| EIMEA | 1,107 | 1,284 | |||||||
| Asia Pacific | 301 | 390 | |||||||
| Construction Products | 2,323 | 2,391 | |||||||
| Engineering Adhesives | 1,950 | 1,009 | |||||||
| Total H.B. Fuller | $ | 6,698 | $ | 6,148 | |||||
| Adjusted EBITDA:2 | |||||||||
| Americas Adhesives | $ | 31,029 | $ | 26,818 | |||||
| EIMEA | 12,509 | 6,025 | |||||||
| Asia Pacific | 5,452 | 4,983 | |||||||
| Construction Products | 4,395 | 5,510 | |||||||
| Engineering Adhesives | 5,304 | (249 | ) | ||||||
| Total H.B. Fuller | $ | 58,689 | $ | 43,087 | |||||
| Adjusted Segment Operating Margin:3 | |||||||||
| Americas Adhesives | 14.3 | % | 11.3 | % | |||||
| EIMEA | 6.3 | % | 0.6 | % | |||||
| Asia Pacific | 7.0 | % | 5.8 | % | |||||
| Construction Products | 1.3 | % | 2.8 | % | |||||
| Engineering Adhesives | 3.4 | % | (7.6 | %) | |||||
| Total H.B. Fuller | 8.5 | % | 5.4 | % | |||||
| Adjusted EBITDA Margin:2 | |||||||||
| Americas Adhesives | 16.9 | % | 13.8 | % | |||||
| EIMEA | 10.1 | % | 4.5 | % | |||||
| Asia Pacific | 10.1 | % | 9.0 | % | |||||
| Construction Products | 7.3 | % | 9.4 | % | |||||
| Engineering Adhesives | 10.0 | % | (0.9 | %) | |||||
| Total H.B. Fuller | 12.4 | % | 9.2 | % | |||||
| H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||
| OLD SEGMENT STRUCTURE FINANCIAL INFORMATION | |||||||||
| In thousands (unaudited) – FOR INFORMATIONAL PURPOSES ONLY | |||||||||
| 13 Weeks Ended | 13 Weeks Ended | ||||||||
| February 27, 2016 | February 28, 2015 | ||||||||
| Net Revenue: | |||||||||
| Americas Adhesives | $ | 194,047 | $ | 203,943 | |||||
| EIMEA | 135,362 | 147,562 | |||||||
| Asia Pacific | 92,517 | 69,993 | |||||||
| Construction Products | 52,400 | 49,163 | |||||||
| Total H.B. Fuller | $ | 474,326 | $ | 470,661 | |||||
| Adjusted Segment Operating Income:2 | |||||||||
| Americas Adhesives | $ | 26,720 | $ | 20,982 | |||||
| EIMEA | 7,204 | (546 | ) | ||||||
| Asia Pacific | 4,986 | 2,512 | |||||||
| Construction Products | 1,551 | 2,413 | |||||||
| Total H.B. Fuller | $ | 40,461 | $ | 25,361 | |||||
| Adjusted Depreciation Expense: | |||||||||
| Americas Adhesives | $ | 3,933 | $ | 4,164 | |||||
| EIMEA | 3,898 | 4,310 | |||||||
| Asia Pacific | 2,654 | 1,918 | |||||||
| Construction Products | 1,045 | 1,186 | |||||||
| Total H.B. Fuller | $ | 11,530 | $ | 11,578 | |||||
| Amortization Expense: | |||||||||
| Americas Adhesives | $ | 1,160 | $ | 1,358 | |||||
| EIMEA | 1,506 | 1,722 | |||||||
| Asia Pacific | 1,932 | 875 | |||||||
| Construction Products | 2,100 | 2,193 | |||||||
| Total H.B. Fuller | $ | 6,698 | $ | 6,148 | |||||
| Adjusted EBITDA:3 | |||||||||
| Americas Adhesives | $ | 31,813 | $ | 26,310 | |||||
| EIMEA | 12,608 | 5,364 | |||||||
| Asia Pacific | 9,572 | 5,670 | |||||||
| Construction Products | 4,696 | 5,743 | |||||||
| Total H.B. Fuller | $ | 58,689 | $ | 43,087 | |||||
| Adjusted Segment Operating Margin:2 | |||||||||
| Americas Adhesives | 13.8 | % | 10.3 | % | |||||
| EIMEA | 5.3 | % | (0.4 | %) | |||||
| Asia Pacific | 5.4 | % | 3.6 | % | |||||
| Construction Products | 3.0 | % | 4.9 | % | |||||
| Total H.B. Fuller | 8.5 | % | 5.4 | % | |||||
| Adjusted EBITDA Margin:3 | |||||||||
| Americas Adhesives | 16.4 | % | 12.9 | % | |||||
| EIMEA | 9.3 | % | 3.6 | % | |||||
| Asia Pacific | 10.3 | % | 8.1 | % | |||||
| Construction Products | 9.0 | % | 11.7 | % | |||||
| Total H.B. Fuller | 12.4 | % | 9.2 | % | |||||
| H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||
| SEGMENT FINANCIAL INFORMATION | |||||||||||||||||||||||
| NET REVENUE GROWTH | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| 13 Weeks Ended February 27, 2016 | |||||||||||||||||||||||
| Americas Adhesives | EIMEA | Asia Pacific | Construction Products | Engineering Adhesives | Total HBF | ||||||||||||||||||
| Price | (1.2 | %) | (0.2 | %) | (0.5 | %) | 2.0 | % | (1.9 | %) | (0.5 | %) | |||||||||||
| Volume | (3.2 | %) | 2.8 | % | 4.5 | % | 2.3 | % | 90.0 | % | 5.8 | % | |||||||||||
| Constant Currency Growth | (4.4 | %) | 2.6 | % | 4.0 | % | 4.3 | % | 88.1 | % | 5.3 | % | |||||||||||
| F/X | (1.1 | %) | (9.9 | %) | (6.7 | %) | (1.5 | %) | (4.0 | %) | (4.5 | %) | |||||||||||
| (5.5 | %) | (7.3 | %) | (2.7 | %) | 2.8 | % | 84.1 | % | 0.8 | % | ||||||||||||
| H.B. FULLER COMPANY AND SUBSIDIARIES | |||||||||
| REGULATION G RECONCILIATION | |||||||||
| In thousands (unaudited) | |||||||||
| 13 Weeks Ended | 13 Weeks Ended | ||||||||
| February 27, 2016 | February 28, 2015 | ||||||||
| Net income including non-controlling interests | $ | 18,967 | $ | 9,795 | |||||
| Income from equity method investments | (1,692 | ) | (1,291 | ) | |||||
| Income taxes | 8,760 | 4,769 | |||||||
| Interest expense | 6,308 | 6,102 | |||||||
| Other income (expense), net | 5,082 | (363 | ) | ||||||
| Special charges | 413 | 2,361 | |||||||
| Non-recurring costs | 2,623 | 3,988 | |||||||
| Adjusted Segment operating income3 | 40,461 | 25,361 | |||||||
| Depreciation Expense | 13,258 | 11,578 | |||||||
| Accelerated Depreciation – EIMEA2 | (1,728 | ) | - | ||||||
| Adjusted Depreciation expense | 11,530 | 11,578 | |||||||
| Amortization expense | 6,698 | 6,148 | |||||||
| Adjusted EBITDA2 | $ | 58,689 | $ | 43,087 | |||||
| Adjusted EBITDA margin2 | 12.4 | % | 9.2 | % | |||||
| ____________________________________ | |||||||||
1 Adjusted diluted earnings per share (EPS) is a non-GAAP financial measure and excludes the following non-recurring costs listed on the adjusted earnings per share reconciliation table above: special charges related to the “business integration”; restructuring in EIMEA related to operational efficiency improvement projects; and the start-up of a new electronics facility in Yantai China.
2 Adjusted EBITDA is a non-GAAP financial measure defined on a consolidated basis as gross profit, less SG&A expense, plus depreciation expense, plus amortization expense and excludes items listed on the adjusted earnings per share reconciliation table above. On a segment basis it is defined as operating income, plus depreciation expense, plus amortization expense. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue.
3 Adjusted segment operating income is defined as gross profit less SG&A expense and excludes items listed on the adjusted earnings per share reconciliation table above. Adjusted segment operating margin is defined as adjusted segment operating income divided by net revenue.