Visit Hardware Depot Online's online casino game pages. We have
searched the web in order to find the best casino sites featuring the
most exciting online gaming offerings. Not only that the casinos listed
here combine excellent customer service and great quality of games, but
they also feature the fattest bonuses currently offered across the
Internet. If you ever wanted to hit it big, here goes you chance! In
addition, all bingo aficionados are invited to check out our best bingo
sites section. We are positively sure that you will find your favorite
online bingo hall among the vast variety of bingo websites listed there.
And, if it is best online poker games what you are eager to find, go
to our online poker section and get busy. No matter what your online
gaming taste is, we have some goodies for all of you! |
|
Fortune Brands Reports Record Second Quarter Results24 July 2005
Fortune Brands, Inc. (NYSE:FO):
-- Broad-Based Performance Fuels Double-Digit EPS Growth
-- Double-Digit Sales Gains for Home & Hardware and Spirits & Wine Brands Drive Strong Top-Line Growth
Fortune Brands, Inc. (NYSE:FO), a leading consumer brands company, today reported strong top-line growth and double-digit growth in earnings per share for the second quarter of 2005. Robust demand for the company's Moen, Jim Beam, Titleist, Master Lock and cabinet brands drove the company's first $2 billion sales quarter in its 8-year history as Fortune Brands.
"Share gains by many of our leading brands drove another quarter of broad-based success for Fortune Brands," said Fortune Brands chairman and CEO Norm Wesley. "The fact that Fortune Brands delivered double-digit growth in both sales and earnings above last year's strong results underscores the momentum we've built in the marketplace and the success of our strategy. Our brand-building investments, including successful new products and high-impact marketing, are helping create consumer demand. Supply-chain efficiencies combined with strong volumes are fueling earnings growth."
"As we look ahead to completing our major spirits and wine acquisition and the spin-off of our office products business, we're highly optimistic about our future as a more sharply-focused, high-performance consumer brands company."
For the second quarter:
-- Net income was $200.3 million, or $1.33 per diluted share, up 20% versus $1.11 in the year-ago quarter.
-- Diluted EPS before charges/gains was $1.45, up 13% from $1.28 and one cent above the mean estimate of Wall Street securities analysts.
-- Net sales increased to $2.07 billion, up 10%. The net impact of acquisitions, excise taxes and foreign exchange benefited sales by 2%.
-- Operating income was $359.2 million, up 21%.
-- Return on equity was 26.6%.
-- Return on invested capital was 18.0%.
In the quarter, the company recorded charges - partly offset by a tax-related credit - principally associated with its currency hedging program for the upcoming spirits and wine acquisition. "When we first announced our spirits and wine acquisition, we estimated the purchase price would reach $5.3 billion at the prevailing exchange rates," Wesley added. "We are delighted that our hedging program both protected our downside and has enabled us to capitalize on the recent strengthening of the dollar. As a result, we'll save more than $300 million on the purchase, reducing our outlay at closing to approximately $5.0 billion. We continue to expect that this acquisition will add between 25 and 35 cents to our earnings per share in 2006."
Third Quarter and Full-Year Outlook
"As we look to the back half of the year, we feel good about our position in the marketplace," Wesley continued. "Because our spirits and wine acquisition has not yet closed, we do not yet have access to proprietary information on the brands we're purchasing, which we'll need to finalize a second-half forecast. At this point, we're assuming modest accretion from the new spirits and wine brands over the balance of the year as we begin the process of integrating the acquisition. We're targeting our continuing operations, including the new spirits and wine brands, to deliver double-digit growth in EPS before charges/gains for the third quarter and for the full year. It's important to note that our office products business will be considered a discontinued operation as of the third quarter and will no longer be reflected in our results." Historical results of continuing operations, adjusted for the upcoming ACCO spin-off, are now available on the company's website, www.fortunebrands.com.
About Fortune Brands
Fortune Brands, Inc. is a $7 billion leading consumer brands company. Its operating companies have premier brands and leading market positions in home and hardware products, spirits and wine, golf equipment and office products. Home and hardware brands include Moen faucets, Aristokraft, Schrock, Diamond and Omega cabinets, Therma-Tru door systems, Master Lock padlocks and Waterloo tool storage sold by units of Fortune Brands Home & Hardware, Inc. Major spirits and wine brands sold by units of Jim Beam Brands Worldwide, Inc. include Jim Beam and Knob Creek bourbons, DeKuyper cordials, Starbucks(TM) Coffee Liqueur, The Dalmore single malt Scotch, Vox vodka and Geyser Peak and Wild Horse wines. Acushnet Company's golf brands include Titleist, Cobra and FootJoy. Office brands include Swingline, Wilson Jones, Kensington and Day-Timer sold by units of ACCO World Corporation. Fortune Brands, headquartered in Lincolnshire, Illinois, is traded on the New York Stock Exchange under the ticker symbol FO and is included in the S&P 500 Index and the MSCI World Index.
To receive company news releases by e-mail, please visit www.fortunebrands.com.
Forward-Looking Statements
This press release contains statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these forward-looking statements speak only as of the date hereof, and the company does not assume any obligation to update them. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in general economic conditions, foreign exchange rate fluctuations, changes in interest rates, changes in commodity costs, returns on pension assets, competitive product and pricing pressures, trade consolidations, the impact of excise tax increases with respect to distilled spirits, regulatory developments, the uncertainties of litigation, changes in golf equipment regulatory standards, the impact of weather, particularly on the home products and golf brands, increases in health care costs, the completion of the office products business spin-off and the proposed spirits and wine acquisition, challenges in the integration of acquisitions and joint ventures, including the proposed major spirits and wine acquisition, as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.
Use of Non-GAAP Financial Information
This press release includes earnings per share before charges/gains, a measure not derived in accordance with generally accepted accounting principles ("GAAP"). This measure should not be considered in isolation as a substitute for any measure derived in accordance with GAAP, and may also be inconsistent with similar measures presented by other companies. Reconciliation of this measure to the most closely comparable GAAP measures, and reasons for the company's use of this measure, are presented in the attached pages.
FORTUNE BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended June 30,
---------------------------
2005 2004 % Change
----------------------------
--------------------------------
Net Sales $2,070.0 $1,889.5 9.6
--------------------------------
Cost of goods sold 1,134.7 1,041.3 9.0
Excise taxes on spirits and wine 71.3 65.1 9.5
Advertising, selling, general
and administrative expenses 493.4 451.9 9.2
Amortization of intangibles 8.5 8.3 2.4
Restructuring and
restructuring-related items 2.9 27.0 (89.3)
-----------------------------
Operating Income 359.2 295.9 21.4
-----------------------------
Interest expense 22.6 21.7 4.1
Other (income) expense, net 26.6 (7.5) -
Income taxes 105.3 109.7 (4.0)
Minority interests 4.4 4.2 4.8
-----------------------------
Net Income 200.3 167.8 19.4
-----------------------------
Earnings Per Common Share
Basic 1.38 1.15 20.0
Diluted 1.33 1.11 19.8
Avg. Common Shares Outstanding
Basic 145.5 145.8 (0.2)
Diluted 150.3 150.7 (0.3)
Six Months Ended June 30,
---------------------------
2005 2004 % Change
----------------------------
--------------------------------
Net Sales $3,863.0 $3,597.3 7.4
--------------------------------
Cost of goods sold 2,139.7 1,978.9 8.1
Excise taxes on spirits and wine 136.1 143.6 (5.2)
Advertising, selling, general
and administrative expenses 952.0 894.7 6.4
Amortization of intangibles 17.4 19.4 (10.3)
Restructuring
and restructuring-related items 2.9 35.2 (91.8)
-----------------------------
Operating Income 614.9 525.5 17.0
-----------------------------
Interest expense 44.4 43.4 2.3
Other (income) expense, net 14.6 (26.5) -
Income taxes 193.3 192.2 0.6
Minority interests 9.6 8.9 7.9
-----------------------------
Net Income 353.0 307.5 14.8
-----------------------------
Earnings Per Common Share
Basic 2.43 2.10 15.7
Diluted 2.35 2.04 15.2
Avg. Common Shares Outstanding
Basic 145.1 146.0 (0.6)
Diluted 150.0 151.0 (0.7)
Actual Common Shares Outstanding
Basic 145.7 144.5 0.8
Diluted 150.9 149.4 1.0
FORTUNE BRANDS, INC.
(In millions, except per share amounts)
(Unaudited)
NET SALES AND OPERATING INCOME
------------------------------
Three Months Ended June 30,
-----------------------------
2005 2004 % Change
-----------------------------
Net Sales
Home and Hardware $1,048.9 $952.8 10.1
Spirits and Wine 290.7 260.0 11.8
Golf 443.2 407.9 8.7
Office 287.2 268.8 6.8
-------------------------------
Total $2,070.0 $1,889.5 9.6
-------------------------------
Operating Income
Home and Hardware $179.3 $161.2 11.2
Spirits and Wine 78.7 75.9 3.7
Golf 92.6 73.7 25.6
Office 26.9 4.0 572.5
Corporate expenses 18.3 18.9 (3.2)
-----------------------------
Total $359.2 $295.9 21.4
-----------------------------
Operating Income Before Charges (a)
Home and Hardware $179.3 $163.3 9.8
Spirits and Wine 78.7 75.9 3.7
Golf 92.6 76.5 21.0
Office 29.8 26.1 14.2
Less:
Corporate expenses 18.3 18.9 (3.2)
Restructuring
and restructuring-related
items 2.9 27.0 (89.3)
-----------------------------
Operating Income $359.2 $295.9 21.4
-----------------------------
NET SALES AND OPERATING INCOME
------------------------------
Six Months Ended June 30,
-----------------------------
2005 2004 % Change
-----------------------------
Net Sales
Home and Hardware $1,951.4 $1,774.3 10.0
Spirits and Wine 563.4 536.5 5.0
Golf 785.8 746.8 5.2
Office 562.4 539.7 4.2
-------------------------------
Total $3,863.0 $3,597.3 7.4
-------------------------------
Operating Income
Home and Hardware $303.8 $274.9 10.5
Spirits and Wine 147.2 142.7 3.2
Golf 149.3 124.7 19.7
Office 51.6 20.0 158.0
Corporate expenses 37.0 36.8 0.5
-----------------------------
Total $614.9 $525.5 17.0
-----------------------------
Operating Income Before Charges (a)
Home and Hardware $303.8 $277.4 9.5
Spirits and Wine 147.2 142.7 3.2
Golf 149.3 129.6 15.2
Office 54.5 47.8 14.0
Less:
Corporate expenses 37.0 36.8 0.5
Restructuring
and restructuring-related
items 2.9 35.2 (91.8)
-----------------------------
Operating Income $614.9 $525.5 17.0
-----------------------------
(a) Operating Income Before Charges is Operating Income derived in
accordance with GAAP excluding any non-recurring items.
Operating Income Before Charges is a measure not derived in accordance
with GAAP. Management uses this measure to determine the returns
generated by our operating segments and to evaluate and identify
cost-reduction initiatives. Management believes this measure provides
investors with helpful supplemental information regarding the
underlying performance of the Company from year-to-year. This measure
may be inconsistent with similar measures presented by other
companies.
FREE CASH FLOW
--------------
Three Months Ended June 30,
---------------------------
2005 2004
---------------------------
Free Cash Flow (b) $268.5 $196.2
Add :
Net Capital Expenditures 53.2 33.0
Dividends Paid 48.1 44.0
--------------------------
Cash Flow From Operations 369.8 273.2
--------------------------
Six Months Ended June 30,
---------------------------
2005 2004
---------------------------
Free Cash Flow (b) $135.7 $186.2
Add :
Net Capital Expenditures 101.0 82.8
Dividends Paid 96.1 88.1
--------------------------
Cash Flow From Operations 332.8 357.1
--------------------------
(b) Free Cash Flow is Cash Flow from Operations less net capital
expenditures and dividends paid to stockholders.
Free Cash Flow is a measure not derived in accordance with GAAP.
Management believes that Free Cash Flow provides investors with
helpful supplemental information about the Company's ability to fund
internal growth, make acquisitions, repay debt and repurchase common
stock. This measure may be inconsistent with similar measures
presented by other companies.
EPS BEFORE CHARGES/GAINS
EPS Before Charges/Gains is Net Income calculated on a per share basis
excluding any non-recurring items.
For the second quarter of 2005, EPS Before Charges/Gains is Net Income
calculated on a per share basis excluding the $2.9 million ($2.0
million after tax) restructuring and restructuring-related items (ACCO
spin repositioning costs), net acquisition hedge costs of $33.5
million ($23.3 million after tax) and $7.7 million in a tax-related
credit.
For the second quarter of 2004, EPS Before Charges/Gains is Net Income
calculated on a per share basis excluding the $27 million ($24.5
million after tax) restructuring and restructuring-related items. For
the six-month period ended June 30, 2004, EPS Before Charges/Gains
excludes $35.2 million ($29.8 million after tax) restructuring and
restructuring-related items and $12 million ($7.6 million after tax)
in insurance proceeds from a Kentucky bourbon warehouse fire.
EPS Before Charges/Gains is a measure not derived in accordance with
GAAP. Management uses this measure to evaluate the overall performance
of the Company and believes this measure provides investors with
helpful supplemental information regarding the underlying performance
of the Company from year-to-year. This measure may be inconsistent
with similar measures presented by other companies.
Three Months Ended June 30,
-----------------------------
2005 2004 % Change
-----------------------------
------------------------------
Net Income Before Charges/Gains $217.9 $192.3 13.3
------------------------------
Earnings Per Common Share - Basic
Net Income Before Charges/Gains 1.50 1.32 13.6
Kentucky bourbon warehouse
fire insurance proceeds - - -
Tax-related credit 0.05 - -
Net acquisition hedge costs (0.16) - -
Restructuring and restructuring-
related items (0.01) (0.17) 94.1
-----------------------------
Net Income 1.38 1.15 20.0
-----------------------------
Earnings Per Common Share - Diluted
Net Income Before Charges/Gains 1.45 1.28 13.3
Kentucky bourbon warehouse
fire insurance proceeds - - -
Tax-related credit 0.05 - -
Net acquisition hedge costs (0.16) - -
Restructuring and restructuring-
related items (0.01) (0.17) 94.1
------------------------------
Net Income 1.33 1.11 19.8
------------------------------
Six Months Ended June 30,
-----------------------------
2005 2004 % Change
-----------------------------
------------------------------
Net Income Before Charges/Gains $370.6 $329.7 12.4
------------------------------
Earnings Per Common Share - Basic
Net Income Before Charges/Gains 2.56 2.26 13.3
Kentucky bourbon warehouse
fire insurance proceeds - 0.05 (100.0)
Tax-related credit 0.05 - -
Net acquisition hedge costs (0.17) - -
Restructuring and restructuring-
related items (0.01) (0.21) 95.2
------------------------------
Net Income 2.43 2.10 15.7
------------------------------
Earnings Per Common Share - Diluted
Net Income Before Charges/Gains 2.47 2.18 13.3
Kentucky bourbon warehouse
fire insurance proceeds - 0.05 (100.0)
Tax-related credit 0.05 - -
Net acquisition hedge costs (0.16) - -
Restructuring and restructuring-
related items (0.01) (0.19) 94.7
------------------------------
Net Income 2.35 2.04 15.2
------------------------------
RECONCILIATION OF 2005 EARNINGS GUIDANCE TO GAAP
The Company has targeted double-digit growth in EPS Before
Charges/Gains, for continuing operations, in the third quarter and
full year. The Company's spirits and wine acquisition is pending
completion. Until the transaction is completed, the Company will not
have access to proprietary information on the brands we're purchasing
and cannot target growth for EPS on a GAAP basis. The Company plans to
provide more specific earnings guidance as data becomes available.
In the third quarter, the Company's office products business will be
considered a discontinued operation and will no longer be reflected in
the Company's results.
RESTRUCTURING AND RESTRUCTURING-RELATED ITEMS
The Company recorded pre-tax restructuring and restructuring-related
items of $2.9 million ($2.0 million after tax) in the three-month and
six-month periods ended June 30, 2005. The charges relate to ACCO spin
repositioning costs.
Three Months Ended June 30, 2005
(In millions, except per share amounts)
---------------------------------------
Restructuring-Related Items
---------------------------
Restructuring Cost of Sales SG & A
Charges Charges Total
---------------------------------------------------
Office $ - $ - $ 2.9 $ 2.9
Total $ - $ - $ 2.9 $ 2.9
Income tax benefit 0.9
Net charge $ 2.0
Charge per common share
Basic $ 0.01
Diluted $ 0.01
Six Months Ended June 30, 2005
(In millions, except per share amounts)
---------------------------------------
Restructuring-Related Items
---------------------------
Restructuring Cost of Sales SG & A
Charges Charges Total
---------------------------------------------------
Office $ - $ - $ 2.9 $ 2.9
Total $ - $ - $ 2.9 $ 2.9
Income tax benefit 0.9
Net charge $ 2.0
Charge per common share
Basic $ 0.01
Diluted $ 0.01
FORTUNE BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
(Unaudited)
June 30, June 30,
2005 2004
------- -------
Assets
Current assets
Cash and cash equivalents $152.1 $183.4
Accounts receivable, net 1,219.8 1,134.2
Inventories 1,115.8 985.0
Other current assets 291.0 271.8
------- -------
Total current assets 2,778.7 2,574.4
Property, plant and equipment, net 1,382.0 1,330.8
Intangibles resulting from
business acquisitions, net 3,340.6 3,360.0
Other assets 455.1 457.9
------ ------
Total assets $7,956.4 $7,723.1
-------- --------
Liabilities and Stockholders' Equity
Current liabilities
Short-term debt $520.5 $627.1
Current portion of long-term
debt 0.3 200.4
Other current liabilities 1,314.4 1,456.0
------- -------
Total current liabilities 1,835.2 2,283.5
Long-term debt 1,238.4 1,242.6
Other long-term liabilities 1,002.9 1,038.6
Minority interests 371.2 369.2
----- -----
Total liabilities 4,447.7 4,933.9
Stockholders' equity 3,508.7 2,789.2
------- -------
Total liabilities and
stockholders' equity $7,956.4 $7,723.1
-------- --------
Source: BUSINESS WIRE
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Computer Hardware Articles
|
|
|
