ACCO Brands Reports Second Quarter 2023 Results; Maintains Full Year Adjusted EPS and Raises Free Cash Flow Guidance
- Gross margin expansion of 450 basis points
- Adjusted operating income growth of 14% year over year
- Improved working capital management leading to net operating cash outflow improvement
- Maintaining full year 2023 adjusted EPS outlook
- Raising full year 2023 free cash flow outlook
- Net sales decline of 5.3 percent in the second quarter
- Lowered end of year consolidated leverage ratio outlook
-
Reported net sales of
, with gross margin expanding 450 basis points$494 million -
Operating income of
, flat to prior year; adjusted operating income of$55 million grew$66 million 14% year over year -
EPS of
; adjusted EPS of$0.27 , above Company's outlook$0.38 -
Net operating cash outflow improved
year to date driven by improved working capital management$59 million -
Maintains full year 2023 adjusted EPS outlook of
to$1.08 $1.12 -
Raises full year 2023 free cash flow outlook to at least
$110 million - Lowered end of year consolidated leverage ratio outlook
"Our top priority entering 2023 was to restore our margin profile, and I'm pleased to report that we have made great progress on that front in the first half. Second quarter and year-to-date gross margin expanded 450 and 360 basis points, respectively, due to greater traction from our pricing, productivity and restructuring initiatives. This has yielded much better than expected adjusted EPS. The higher operating profits experienced through the first six months give us confidence in our full year 2023 outlook for adjusted EPS and free cash flow. While we are pleased with the strong start of the year, we are more cautious on the second half demand environment. With improved working capital management, we are well positioned to end the year with a lower leverage ratio than previously expected. We remain committed to supporting our quarterly dividend and reducing debt with our strong cash flow" said Boris Elisman, Chairman and Chief Executive Officer of ACCO Brands.
"Our results reflect the resilience of our brands and the transformative actions undertaken to expand our product categories, broaden our geographic reach, bring innovative new consumer-centric products to market and streamline our cost structure. We remain confident that our strategy has us positioned to deliver sustainable organic growth as global economies improve," concluded Mr. Elisman.
Second Quarter Results
Net sales declined 5.3 percent to
Operating income was
The Company reported net income of
Business Segment Results
ACCO Brands North America – Second quarter segment net sales of
Second quarter operating income in
ACCO Brands EMEA - Second quarter segment net sales of
Second quarter operating income in EMEA was
ACCO Brands International - Second quarter segment sales of
Second quarter operating income in the International segment was
Six Month Results
Net sales decreased 6.9 percent to
Operating income of
Net income was
Capital Allocation and Dividend
Year to date, the Company improved its operating cash outflow by
On August 1, 2023, ACCO Brands announced that its board of directors declared a regular quarterly cash dividend of
Full Year 2023 and Third Quarter Outlook
The Company is updating its full year 2023 outlook and providing a 3Q outlook. For the full year, reported sales are expected to be down 1 percent to 3 percent, including a 1.5 percent positive impact from foreign exchange. The Company is also maintaining its full year adjusted EPS outlook to be in the range of
In the third quarter, reported sales are expected to be flat to down 3 percent, which includes approximately a 4 percent positive impact from foreign exchange. Adjusted EPS is expected to be in the range of
Webcast
At 8:30 a.m. ET on August 9, 2023, ACCO Brands Corporation will host a conference call to discuss the Company's second quarter 2023 results. The call will be broadcast live via webcast. The webcast can be accessed through the Investor Relations section of www.accobrands.com. The webcast will be in listen-only mode and will be available for replay following the event.
About ACCO Brands Corporation
ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this earnings release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most directly comparable GAAP financial measure in the "About Non-GAAP Financial Measures" section of this earnings release.
Forward-Looking Statements
Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Because actual results may differ materially from those suggested or implied by such forward-looking statements, you should not place undue reliance on them when deciding whether to buy, sell or hold the Company’s securities.
Our outlook is based on certain assumptions, which we believe to be reasonable under the circumstances. These include, without limitation, assumptions regarding the impact of the war in
Among the factors that could cause our actual results to differ materially from our forward-looking statements are: our ability to successfully execute our restructuring plans and realize the benefits of our productivity initiatives; our ability to obtain additional price increases and realize longer-term cost reductions; the ongoing impact of the COVID-19 pandemic; a relatively limited number of large customers account for a significant percentage of our sales; issues that influence customer and consumer discretionary spending during periods of economic uncertainty or weakness; risks associated with foreign currency exchange rate fluctuations; challenges related to the highly competitive business environment in which we operate; our ability to develop and market innovative products that meet consumer demands and to expand into new and adjacent product categories that are experiencing higher growth rates; our ability to successfully expand our business in emerging markets and the exposure to greater financial, operational, regulatory, compliance and other risks in such markets; the continued decline in the use of certain of our products; risks associated with seasonality; the sufficiency of investment returns on pension assets, risks related to actuarial assumptions, changes in government regulations and changes in the unfunded liabilities of a multi-employer pension plan; any impairment of our intangible assets; our ability to secure, protect and maintain our intellectual property rights, and our ability to license rights from major gaming console makers and video game publishers to support our gaming accessories business; continued disruptions in the global supply chain; risks associated with inflation and other changes in the cost or availability of raw materials, transportation, labor, and other necessary supplies and services and the cost of finished goods; risks associated with outsourcing production of certain of our products, information technology systems and other administrative functions; the failure, inadequacy or interruption of our information technology systems or its supporting infrastructure; risks associated with a cybersecurity incident or information security breach, including that related to a disclosure of personally identifiable information; our ability to grow profitably through acquisitions; our ability to successfully integrate acquisitions and achieve the financial and other results anticipated at the time of acquisition, including planned synergies; risks associated with our indebtedness, including limitations imposed by restrictive covenants, our debt service obligations, and our ability to comply with financial ratios and tests; a change in or discontinuance of our stock repurchase program or the payment of dividends; product liability claims, recalls or regulatory actions; the impact of litigation or other legal proceedings; our failure to comply with applicable laws, rules and regulations and self-regulatory requirements, the costs of compliance and the impact of changes in such laws; our ability to attract and retain qualified personnel; the volatility of our stock price; risks associated with circumstances outside our control, including those caused by public health crises, such as the occurrence of contagious diseases, severe weather events, war, terrorism and other geopolitical incidents; and other risks and uncertainties described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and in other reports we file with the Securities and Exchange Commission.
ACCO Brands Corporation and Subsidiaries Condensed Consolidated Balance Sheets |
||||||||
|
|
June 30,
|
|
|
December 31,
|
|
||
(in millions) |
|
(unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
|
62.2 |
|
Accounts receivable, net |
|
|
426.1 |
|
|
|
384.1 |
|
Inventories |
|
|
398.0 |
|
|
|
395.2 |
|
Other current assets |
|
|
47.6 |
|
|
|
40.8 |
|
Total current assets |
|
|
954.1 |
|
|
|
882.3 |
|
Total property, plant and equipment |
|
|
594.7 |
|
|
|
589.2 |
|
Less: accumulated depreciation |
|
|
(417.3 |
) |
|
|
(404.1 |
) |
Property, plant and equipment, net |
|
|
177.4 |
|
|
|
185.1 |
|
Right of use asset, leases |
|
|
85.7 |
|
|
|
88.8 |
|
Deferred income taxes |
|
|
97.7 |
|
|
|
99.7 |
|
Goodwill |
|
|
662.0 |
|
|
|
671.5 |
|
Identifiable intangibles, net |
|
|
833.2 |
|
|
|
847.0 |
|
Other non-current assets |
|
|
15.7 |
|
|
|
20.3 |
|
Total assets |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Notes payable |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
|
53.9 |
|
|
|
49.7 |
|
Accounts payable |
|
|
194.6 |
|
|
|
239.5 |
|
Accrued compensation |
|
|
41.3 |
|
|
|
38.3 |
|
Accrued customer program liabilities |
|
|
100.0 |
|
|
|
103.3 |
|
Lease liabilities |
|
|
20.4 |
|
|
|
21.2 |
|
Other current liabilities |
|
|
115.9 |
|
|
|
126.7 |
|
Total current liabilities |
|
|
534.0 |
|
|
|
589.0 |
|
Long-term debt, net |
|
|
1,015.8 |
|
|
|
936.5 |
|
Long-term lease liabilities |
|
|
72.3 |
|
|
|
75.2 |
|
Deferred income taxes |
|
|
142.7 |
|
|
|
144.1 |
|
Pension and post-retirement benefit obligations |
|
|
149.4 |
|
|
|
155.5 |
|
Other non-current liabilities |
|
|
81.2 |
|
|
|
84.3 |
|
Total liabilities |
|
|
1,995.4 |
|
|
|
1,984.6 |
|
Stockholders' equity: |
|
|
|
|
|
|
||
Common stock |
|
|
1.0 |
|
|
|
1.0 |
|
Treasury stock |
|
|
(45.0 |
) |
|
|
(43.4 |
) |
Paid-in capital |
|
|
1,906.8 |
|
|
|
1,897.2 |
|
Accumulated other comprehensive loss |
|
|
(535.7 |
) |
|
|
(540.3 |
) |
Accumulated deficit |
|
|
(496.7 |
) |
|
|
(504.4 |
) |
Total stockholders' equity |
|
|
830.4 |
|
|
|
810.1 |
|
Total liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
ACCO Brands Corporation and Subsidiaries | ||||||||||||||||||
Consolidated Statements of Income (Unaudited) |
||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||
|
||||||||||||||||||
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
2023 |
|
|
2022 |
|
|
% Change |
||
Net sales |
|
|
|
|
|
|
|
(5.3 |
)% |
|
|
|
|
|
|
|
(6.9 |
)% |
Cost of products sold |
|
329.4 |
|
|
371.0 |
|
|
(11.2 |
)% |
|
612.7 |
|
|
693.0 |
|
|
(11.6 |
)% |
Gross profit |
|
164.2 |
|
|
150.0 |
|
|
9.5 |
% |
|
283.5 |
|
|
269.6 |
|
|
5.2 |
% |
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative expenses |
|
98.0 |
|
|
91.6 |
|
|
7.0 |
% |
|
193.0 |
|
|
190.4 |
|
|
1.4 |
% |
Amortization of intangibles |
|
11.0 |
|
|
10.5 |
|
|
4.8 |
% |
|
21.9 |
|
|
21.6 |
|
|
1.4 |
% |
Restructuring charges |
|
— |
|
|
1.9 |
|
|
(100.0 |
)% |
|
3.3 |
|
|
2.2 |
|
|
50.0 |
% |
Change in fair value of contingent consideration |
|
— |
|
|
(9.4 |
) |
|
NM |
|
|
— |
|
|
(6.8 |
) |
|
NM |
|
Total operating costs and expenses |
|
109.0 |
|
|
94.6 |
|
|
15.2 |
% |
|
218.2 |
|
|
207.4 |
|
|
5.2 |
% |
Operating income |
|
55.2 |
|
|
55.4 |
|
|
(0.4 |
)% |
|
65.3 |
|
|
62.2 |
|
|
5.0 |
% |
Non-operating expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
15.5 |
|
|
10.8 |
|
|
43.5 |
% |
|
29.4 |
|
|
20.5 |
|
|
43.4 |
% |
Interest income |
|
(2.2 |
) |
|
(2.2 |
) |
|
— |
% |
|
(4.6 |
) |
|
(3.6 |
) |
|
(27.8 |
)% |
Non-operating pension expense (income) |
|
0.2 |
|
|
(1.3 |
) |
|
NM |
|
|
0.3 |
|
|
(2.7 |
) |
|
NM |
|
Other (income) expense, net |
|
(0.3 |
) |
|
(3.7 |
) |
|
91.9 |
% |
|
1.5 |
|
|
(2.8 |
) |
|
NM |
|
Income before income tax |
|
42.0 |
|
|
51.8 |
|
|
(18.9 |
)% |
|
38.7 |
|
|
50.8 |
|
|
(23.8 |
)% |
Income tax expense |
|
15.6 |
|
|
12.4 |
|
|
25.8 |
% |
|
16.0 |
|
|
14.1 |
|
|
13.5 |
% |
Net income |
|
|
|
|
|
|
|
(33.0 |
)% |
|
|
|
|
|
|
|
(38.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic income per share |
|
|
|
|
|
|
|
(31.7 |
)% |
|
|
|
|
|
|
|
(36.8 |
)% |
Diluted income per share |
|
|
|
|
|
|
|
(32.5 |
)% |
|
|
|
|
|
|
|
(37.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
95.4 |
|
|
96.2 |
|
|
|
|
95.1 |
|
|
96.2 |
|
|
|
||
Diluted |
|
96.3 |
|
|
97.4 |
|
|
|
|
96.7 |
|
|
98.0 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash dividends declared per common share |
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
||
|
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|
|
|
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|
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|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Statistics (as a % of Net sales, except Income tax rate) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
||
Gross profit (Net sales, less Cost of products sold) |
|
33.3 |
% |
|
28.8 |
% |
|
|
|
31.6 |
% |
|
28.0 |
% |
|
|
||
Selling, general and administrative expenses |
|
19.9 |
% |
|
17.6 |
% |
|
|
|
21.5 |
% |
|
19.8 |
% |
|
|
||
Operating income |
|
11.2 |
% |
|
10.6 |
% |
|
|
|
7.3 |
% |
|
6.5 |
% |
|
|
||
Income before income tax |
|
8.5 |
% |
|
9.9 |
% |
|
|
|
4.3 |
% |
|
5.3 |
% |
|
|
||
Net income |
|
5.3 |
% |
|
7.6 |
% |
|
|
|
2.5 |
% |
|
3.8 |
% |
|
|
||
Income tax rate |
|
37.1 |
% |
|
23.9 |
% |
|
|
|
41.3 |
% |
|
27.8 |
% |
|
|
||
ACCO Brands Corporation and Subsidiaries |
||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
||||||||
|
|
Six Months Ended June 30, |
||||||
(in millions) |
|
2023 |
|
|
2022 |
|
||
Operating activities |
|
|
|
|
|
|
||
Net income |
|
|
|
|
|
|
|
|
Payments of contingent consideration |
|
|
— |
|
|
|
(9.2 |
) |
Loss on disposal of assets |
|
|
1.2 |
|
|
|
(0.2 |
) |
Change in fair value of contingent liability |
|
|
— |
|
|
|
(6.8 |
) |
Depreciation |
|
|
17.3 |
|
|
|
19.6 |
|
Amortization of debt issuance costs |
|
|
1.5 |
|
|
|
1.4 |
|
Amortization of intangibles |
|
|
21.9 |
|
|
|
21.6 |
|
Stock-based compensation |
|
|
8.9 |
|
|
|
7.2 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(33.4 |
) |
|
|
(12.4 |
) |
Inventories |
|
|
10.1 |
|
|
|
(51.4 |
) |
Other assets |
|
|
(9.0 |
) |
|
|
(18.7 |
) |
Accounts payable |
|
|
(55.1 |
) |
|
|
(47.2 |
) |
Accrued expenses and other liabilities |
|
|
(19.1 |
) |
|
|
(34.8 |
) |
Accrued income taxes |
|
|
(6.3 |
) |
|
|
(3.7 |
) |
Net cash used by operating activities |
|
|
(39.3 |
) |
|
|
(97.9 |
) |
Investing activities |
|
|
|
|
|
|
||
Additions to property, plant and equipment |
|
|
(6.1 |
) |
|
|
(7.0 |
) |
Proceeds from the disposition of assets |
|
|
— |
|
|
|
0.2 |
|
Net cash used by investing activities |
|
|
(6.1 |
) |
|
|
(6.8 |
) |
Financing activities |
|
|
|
|
|
|
||
Proceeds from long-term borrowings |
|
|
107.9 |
|
|
|
218.0 |
|
Repayments of long-term debt |
|
|
(28.2 |
) |
|
|
(25.6 |
) |
Repayments of notes payable, net |
|
|
(2.4 |
) |
|
|
11.3 |
|
Dividends paid |
|
|
(14.2 |
) |
|
|
(14.4 |
) |
Payments of contingent consideration |
|
|
— |
|
|
|
(17.8 |
) |
Repurchases of common stock |
|
|
— |
|
|
|
(19.4 |
) |
Payments related to tax withholding for stock-based compensation |
|
|
(1.7 |
) |
|
|
(2.5 |
) |
Proceeds from the exercise of stock options |
|
|
— |
|
|
|
4.3 |
|
Net cash provided by financing activities |
|
|
61.4 |
|
|
|
153.9 |
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
|
4.2 |
|
|
|
1.3 |
|
Net increase in cash and cash equivalents |
|
|
20.2 |
|
|
|
50.5 |
|
Cash and cash equivalents |
|
|
|
|
|
|
||
Beginning of the period |
|
|
62.2 |
|
|
|
41.2 |
|
End of the period |
|
|
|
|
|
|
|
About Non-GAAP Financial Measures
We explain below how we calculate each of our non-GAAP financial measures and a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financial measures follows.
We use our non-GAAP financial measures both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business. We believe our non-GAAP financial measures provide management and investors with a more complete understanding of our underlying operational results and trends, facilitate meaningful period-to-period comparisons and enhance an overall understanding of our past and future financial performance.
Our non-GAAP financial measures exclude certain items that may have a material impact upon our reported financial results such as restructuring charges, transaction and integration expenses associated with material acquisitions, the impact of foreign currency exchange rate fluctuations and acquisitions, unusual tax items, goodwill impairment charges, and other non-recurring items that we consider to be outside of our core operations. These measures should not be considered in isolation or as a substitute for, or superior to, the directly comparable GAAP financial measures and should be read in connection with the Company’s financial statements presented in accordance with GAAP.
Our non-GAAP financial measures include the following:
Comparable Sales: Represents net sales excluding the impact of material acquisitions, if any, with current-period foreign operation sales translated at prior-year currency rates. We believe comparable sales are useful to investors and management because they reflect underlying sales and sales trends without the effect of material acquisitions and fluctuations in foreign exchange rates and facilitate meaningful period-to-period comparisons. We sometimes refer to comparable sales as comparable net sales.
Adjusted Selling, General and Administrative (SG&A) Expenses: Represents selling, general and administrative expenses excluding transaction and integration expenses related to material acquisitions. We believe adjusted SG&A expenses are useful to investors and management because they reflect underlying SG&A expenses without the effect of expenses related to acquiring and integrating acquisitions that we consider to be outside our core operations and facilitate meaningful period-to-period comparisons.
Adjusted Operating Income/Adjusted Income Before Taxes/Adjusted Net Income/Adjusted Net Income Per Diluted Share: Represents operating income, income before taxes, net income, and net income per diluted share excluding restructuring and goodwill impairment charges, the amortization of intangibles, the amortization of the step-up in value of inventory, the change in fair value of contingent consideration, transaction and integration expenses associated with material acquisitions, non-recurring items in interest expense or other income/expense such as expenses associated with debt refinancing, a bond redemption, or a pension curtailment, and other non-recurring items as well as all unusual and discrete income tax adjustments, including income tax related to the foregoing. We believe these adjusted non-GAAP financial measures are useful to investors and management because they reflect our underlying operating performance before items that we consider to be outside our core operations and facilitate meaningful period-to-period comparisons. Senior management’s incentive compensation is derived, in part, using adjusted operating income and adjusted net income per diluted share, which is derived from adjusted net income. We sometimes refer to adjusted net income per diluted share as adjusted earnings per share or adjusted EPS.
Adjusted Income Tax Expense/Rate: Represents income tax expense/rate excluding the tax effect of the items that have been excluded from adjusted income before taxes, unusual income tax items such as the impact of tax audits and changes in laws, significant reserves for cash repatriation, excess tax benefits/losses, and other discrete tax items. We believe our adjusted income tax expense/rate is useful to investors because it reflects our baseline income tax expense/rate before benefits/losses and other discrete items that we consider to be outside our core operations and facilitates meaningful period-to-period comparisons.
Adjusted EBITDA: Represents net income excluding the effects of depreciation, stock-based compensation expense, amortization of intangibles, the change in fair value of contingent consideration, interest expense, net, other (income) expense, net, and income tax expense, the amortization of the step-up in value of inventory, transaction and integration expenses associated with material acquisitions, restructuring and goodwill impairment charges, non-recurring items in interest expense or other income/expense such as expenses associated with debt refinancing, a bond redemption, or a pension curtailment and other non-recurring items. We believe adjusted EBITDA is useful to investors because it reflects our underlying cash profitability and adjusts for certain non-cash charges, and items that we consider to be outside our core operations and facilitates meaningful period-to-period comparisons.
Free Cash Flow/Adjusted Free Cash Flow: Free cash flow represents cash flow from operating activities less cash used for additions to property, plant and equipment. Adjusted free cash flow represents free cash flow, less cash payments made for contingent earnouts, plus cash proceeds from the disposition of assets. We believe free cash flow and adjusted free cash flow are useful to investors because they measure our available cash flow for paying dividends, funding strategic material acquisitions, reducing debt, and repurchasing shares.
Consolidated Leverage Ratio: Represents balance sheet debt, plus debt origination costs and less any cash and cash equivalents divided by adjusted EBITDA. We believe that consolidated leverage ratio is useful to investors since the company has the ability to, and may decide to use, a portion of its cash and cash equivalents to retire debt.
We also provide forward-looking non-GAAP comparable sales, adjusted earnings per share, free cash flow, adjusted free cash flow, adjusted EBITDA, and adjusted tax rate, and historical and forward-looking consolidated leverage ratio. We do not provide a reconciliation of these forward-looking and historical non-GAAP measures to GAAP because the GAAP financial measure is not currently available and management cannot reliably predict all the necessary components of such non-GAAP measures without unreasonable effort or expense due to the inherent difficulty of forecasting and quantifying certain amounts that are necessary for such a reconciliation, including adjustments that could be made for restructuring, integration and acquisition-related expenses, the variability of our tax rate and the impact of foreign currency fluctuation and material acquisitions, and other charges reflected in our historical results. The probable significance of each of these items is high and, based on historical experience, could be material.
ACCO Brands Corporation and Subsidiaries |
|||||||||||||||||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited) |
|||||||||||||||||||||||||||||
(In millions, except per share data) |
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||
The following tables set forth a reconciliation of certain Consolidated Statements of Income information reported in accordance with GAAP to Adjusted Non-GAAP Information for the three months ended June 30, 2023 and 2022. |
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2023 |
|||||||||||||||||||||||||||
|
|
|
Operating Income |
|
% of Sales |
|
|
Income before Tax |
|
% of Sales |
|
|
Income Tax Expense (I) |
|
Tax Rate |
|
|
Net Income |
|
% of Sales |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reported GAAP |
|
|
$ |
55.2 |
|
11.2 |
% |
|
|
$ |
42.0 |
|
8.5 |
% |
|
|
$ |
15.6 |
|
|
37.1 |
% |
|
|
$ |
26.4 |
|
5.3 |
% |
Reported GAAP diluted income per share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.27 |
|
|
||||||||
Amortization of intangibles |
|
|
|
11.0 |
|
|
|
|
|
11.0 |
|
|
|
|
|
2.9 |
|
|
|
|
|
|
8.1 |
|
|
||||
Other discrete tax items |
(A) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(2.0 |
) |
|
|
|
|
|
2.0 |
|
|
||||
Adjusted Non-GAAP |
|
|
$ |
66.2 |
|
13.4 |
% |
|
|
$ |
53.0 |
|
10.7 |
% |
|
|
$ |
16.5 |
|
|
31.1 |
% |
|
|
$ |
36.5 |
|
7.4 |
% |
Adjusted net income per diluted share (Adjusted EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.38 |
|
|
|
|
Three Months Ended June 30, 2022 |
|||||||||||||||||||||||||||||||||||||
|
|
|
SG&A |
|
% of Sales |
|
|
Operating Income |
|
% of Sales |
|
|
Income before Tax |
|
% of Sales |
|
|
Income Tax Expense (I) |
|
Tax Rate |
|
|
Net Income |
|
% of Sales |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reported GAAP |
|
|
$ |
91.6 |
|
17.6 |
% |
|
|
$ |
55.4 |
|
|
10.6 |
% |
|
|
$ |
51.8 |
|
|
9.9 |
% |
|
|
$ |
12.4 |
|
|
23.9 |
% |
|
|
$ |
39.4 |
|
|
7.6 |
% |
Reported GAAP diluted income per share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.40 |
|
|
|
||||||||||||
Release of charge for |
|
|
|
0.3 |
|
|
|
|
|
(0.3 |
) |
|
|
|
|
|
(0.3 |
) |
|
|
|
|
|
(0.1 |
) |
|
|
|
|
|
(0.2 |
) |
|
|
|||||
Restructuring charges |
|
|
|
— |
|
|
|
|
|
1.9 |
|
|
|
|
|
|
1.9 |
|
|
|
|
|
|
0.4 |
|
|
|
|
|
|
1.5 |
|
|
|
|||||
Amortization of intangibles |
|
|
|
— |
|
|
|
|
|
10.5 |
|
|
|
|
|
|
10.5 |
|
|
|
|
|
|
2.7 |
|
|
|
|
|
|
7.8 |
|
|
|
|||||
Change in fair value of contingent consideration |
(C) |
|
|
— |
|
|
|
|
|
(9.4 |
) |
|
|
|
|
|
(9.4 |
) |
|
|
|
|
|
(2.4 |
) |
|
|
|
|
|
(7.0 |
) |
|
|
|||||
Operating tax gains |
(D) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
|
(3.8 |
) |
|
|
|
|
|
(1.3 |
) |
|
|
|
|
|
(2.5 |
) |
|
|
|||||
Other discrete tax items |
(A) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
3.0 |
|
|
|
|
|
|
(3.0 |
) |
|
|
|||||
Adjusted Non-GAAP |
|
|
$ |
91.9 |
|
17.6 |
% |
|
|
$ |
58.1 |
|
|
11.2 |
% |
|
|
$ |
50.7 |
|
|
9.7 |
% |
|
|
$ |
14.7 |
|
|
29.0 |
% |
|
|
$ |
36.0 |
|
|
6.9 |
% |
Adjusted net income per diluted share (Adjusted EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.37 |
|
|
|
||||||||||||
See "Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income to Adjusted EBITDA (Unaudited)" for further information regarding adjusted items. |
|||||||||||||||||||||||||||||||||||||||
ACCO Brands Corporation and Subsidiaries |
|||||||||||||||||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited) |
|||||||||||||||||||||||||||||
(In millions, except per share data) |
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||
The following tables set forth a reconciliation of certain Consolidated Statements of Income information reported in accordance with GAAP to Adjusted Non-GAAP Information for the six months ended June 30, 2023 and 2022 |
|||||||||||||||||||||||||||||
|
|
Six Months Ended June 30, 2023 |
|||||||||||||||||||||||||||
|
|
|
Operating Income |
|
% of Sales |
|
|
Income before Tax |
|
% of Sales |
|
|
Income Tax Expense (I) |
|
Tax Rate |
|
|
Net Income |
|
% of Sales |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reported GAAP |
|
|
$ |
65.3 |
|
7.3 |
% |
|
|
$ |
38.7 |
|
4.3 |
% |
|
|
$ |
16.0 |
|
|
41.3 |
% |
|
|
$ |
22.7 |
|
2.5 |
% |
Reported GAAP diluted income per share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.23 |
|
|
||||||||
Restructuring charges |
|
|
|
3.3 |
|
|
|
|
|
3.3 |
|
|
|
|
|
0.9 |
|
|
|
|
|
|
2.4 |
|
|
||||
Amortization of intangibles |
|
|
|
21.9 |
|
|
|
|
|
21.9 |
|
|
|
|
|
5.8 |
|
|
|
|
|
|
16.1 |
|
|
||||
Other asset write-off |
(B) |
|
|
— |
|
|
|
|
|
1.1 |
|
|
|
|
|
0.3 |
|
|
|
|
|
|
0.8 |
|
|
||||
Other discrete tax items |
(A) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(3.0 |
) |
|
|
|
|
|
3.0 |
|
|
||||
Adjusted Non-GAAP |
|
|
$ |
90.5 |
|
10.1 |
% |
|
|
$ |
65.0 |
|
7.3 |
% |
|
|
$ |
20.0 |
|
|
30.8 |
% |
|
|
$ |
45.0 |
|
5.0 |
% |
Adjusted net income per diluted share (Adjusted EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.47 |
|
|
|
|
Six Months Ended June 30, 2022 |
|||||||||||||||||||||||||||||||||||||||
|
|
|
SG&A |
|
% of Sales |
|
|
Operating Income |
|
% of Sales |
|
|
Income before Tax |
|
% of Sales |
|
|
Income Tax Expense (I) |
|
Tax Rate |
|
|
Net Income |
|
% of Sales |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported GAAP |
|
|
$ |
190.4 |
|
|
19.8 |
% |
|
|
$ |
62.2 |
|
|
6.5 |
% |
|
|
$ |
50.8 |
|
|
5.3 |
% |
|
|
$ |
14.1 |
|
|
27.8 |
% |
|
|
$ |
36.7 |
|
|
3.8 |
% |
|
Reported GAAP diluted income per share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.37 |
|
|
|
|
|||||||||||||
Charge for |
|
|
|
(1.5 |
) |
|
|
|
|
|
1.5 |
|
|
|
|
|
|
1.5 |
|
|
|
|
|
|
0.3 |
|
|
|
|
|
|
1.2 |
|
|
|
|
|||||
Restructuring charges |
|
|
|
— |
|
|
|
|
|
|
2.2 |
|
|
|
|
|
|
2.2 |
|
|
|
|
|
|
0.5 |
|
|
|
|
|
|
1.7 |
|
|
|
|
|||||
Amortization of intangibles |
|
|
|
— |
|
|
|
|
|
|
21.6 |
|
|
|
|
|
|
21.6 |
|
|
|
|
|
|
5.7 |
|
|
|
|
|
|
15.9 |
|
|
|
|
|||||
Change in fair value of contingent consideration |
(C) |
|
|
— |
|
|
|
|
|
|
(6.8 |
) |
|
|
|
|
|
(6.8 |
) |
|
|
|
|
|
(1.7 |
) |
|
|
|
|
|
(5.1 |
) |
|
|
|
|||||
Operating tax gains |
(D) |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
(3.9 |
) |
|
|
|
|
|
(1.3 |
) |
|
|
|
|
|
(2.6 |
) |
|
|
|
|||||
Other discrete tax items |
(A) |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
1.4 |
|
|
|
|
|
|
(1.4 |
) |
|
|
|
|||||
Adjusted Non-GAAP |
|
|
$ |
188.9 |
|
|
19.6 |
% |
|
|
$ |
80.7 |
|
|
8.4 |
% |
|
|
$ |
65.4 |
|
|
6.8 |
% |
|
|
$ |
19.0 |
|
|
29.0 |
% |
|
|
$ |
46.4 |
|
|
4.8 |
% |
|
Adjusted net income per diluted share (Adjusted EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.47 |
|
|
|
|
|||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
See "Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income to Adjusted EBITDA (Unaudited)" for further information regarding adjusted items. |
|||||||||||||||||||||||||||||||||||||||||
|
ACCO Brands Corporation and Subsidiaries |
|||||||||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA (Unaudited) |
|||||||||||||||||||||||
(In millions) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
The following table sets forth a reconciliation of net income reported in accordance with GAAP to Adjusted EBITDA. |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
|
|
Three months ended
|
|
|
|
Six months ended
|
|
|
||||||||||||||
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
||
Net income |
|
|
$ |
26.4 |
|
|
$ |
39.4 |
|
|
(33.0 |
)% |
|
$ |
22.7 |
|
|
$ |
36.7 |
|
|
(38.1 |
)% |
Stock-based compensation |
|
|
|
3.3 |
|
|
|
2.3 |
|
|
43.5 |
% |
|
|
8.9 |
|
|
|
7.2 |
|
|
23.6 |
% |
Depreciation |
|
|
|
8.3 |
|
|
|
9.7 |
|
|
(14.4 |
)% |
|
|
17.3 |
|
|
|
19.6 |
|
|
(11.7 |
)% |
(Release) charge for |
|
|
|
— |
|
|
|
(0.3 |
) |
|
100.0 |
% |
|
|
— |
|
|
|
1.5 |
|
|
(100.0 |
)% |
Amortization of intangibles |
|
|
|
11.0 |
|
|
|
10.5 |
|
|
4.8 |
% |
|
|
21.9 |
|
|
|
21.6 |
|
|
1.4 |
% |
Restructuring charges |
|
|
|
— |
|
|
|
1.9 |
|
|
(100.0 |
)% |
|
|
3.3 |
|
|
|
2.2 |
|
|
50.0 |
% |
Change in fair value of contingent consideration |
(C) |
|
|
— |
|
|
|
(9.4 |
) |
|
100.0 |
% |
|
|
— |
|
|
|
(6.8 |
) |
|
100.0 |
% |
Interest expense, net |
|
|
|
13.3 |
|
|
|
8.6 |
|
|
54.7 |
% |
|
|
24.8 |
|
|
|
16.9 |
|
|
46.7 |
% |
Other (income) expense, net |
|
|
|
(0.3 |
) |
|
|
(3.7 |
) |
|
91.9 |
% |
|
|
1.5 |
|
|
|
(2.8 |
) |
|
NM |
|
Income tax expense |
|
|
|
15.6 |
|
|
|
12.4 |
|
|
25.8 |
% |
|
|
16.0 |
|
|
|
14.1 |
|
|
13.5 |
% |
Adjusted EBITDA (non-GAAP) |
|
|
$ |
77.6 |
|
|
$ |
71.4 |
|
|
8.7 |
% |
|
$ |
116.4 |
|
|
$ |
110.2 |
|
|
5.6 |
% |
Adjusted EBITDA as a % of Net Sales |
|
|
|
15.7 |
% |
|
|
13.7 |
% |
|
|
|
|
13.0 |
% |
|
|
11.4 |
% |
|
|
||
|
|||||||||||||||||||||||
See "Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income to Adjusted EBITDA (Unaudited)" for further information regarding adjusted items. |
|||||||||||||||||||||||
|
Reconciliation of Net Cash (Used) Provided by Operating Activities to Adjusted Free Cash Flow (Unaudited) |
||||||||||||||||
(In millions) |
||||||||||||||||
|
||||||||||||||||
The following table sets forth a reconciliation of net cash (used) provided by operating activities reported in accordance with GAAP to Adjusted Free Cash Flow. |
||||||||||||||||
|
||||||||||||||||
|
|
Three months ended
|
|
Three months ended
|
|
For the six months
|
|
For the six months
|
||||||||
Net cash (used) provided by operating activities |
|
$ |
(16.1 |
) |
|
$ |
6.3 |
|
|
$ |
(39.3 |
) |
|
$ |
(97.9 |
) |
Net (used) provided by: |
|
|
|
|
|
|
|
|
||||||||
Additions to property, plant and equipment |
|
|
(4.1 |
) |
|
|
(3.6 |
) |
|
|
(6.1 |
) |
|
|
(7.0 |
) |
Proceeds from the disposition of assets |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.2 |
|
Payments of contingent consideration |
|
|
— |
|
|
|
9.2 |
|
|
|
— |
|
|
|
9.2 |
|
Adjusted Free Cash Flow (non-GAAP) |
|
$ |
(20.2 |
) |
|
$ |
12.1 |
|
|
$ |
(45.4 |
) |
|
$
|
(95.5
|
)
|
Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income to Adjusted EBITDA (Unaudited)
|
|
A. |
The adjustments to income tax expense include the effects of other adjustments and discrete tax items. |
B. |
Represents the write off of assets related to a capital project. |
C. |
Represents the change in fair value of the contingent consideration for the PowerA acquisition, which is included as expense/income in the consolidated statements of income. |
D. |
Represents gains related to the release of reserves for certain operating taxes. |
ACCO Brands Corporation and Subsidiaries |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Business Segment Information and Reconciliation (Unaudited) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
2023 |
|
2022 |
|
Changes |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
Reported |
|
|
|
Adjusted |
|
Operating |
|
|
|
Reported |
|
|
|
Adjusted |
|
Operating |
|
|
|
|
|
Adjusted |
|
Adjusted |
|
|
||||||||||||||||||||||
|
|
|
|
Operating |
|
|
|
Operating |
|
Income |
|
|
|
Operating |
|
|
|
Operating |
|
Income |
|
|
|
|
|
Operating |
|
Operating |
|
|
||||||||||||||||||||||
|
|
Reported |
|
Income |
|
Adjusted |
|
Income |
|
(Loss) |
|
Reported |
|
Income |
|
Adjusted |
|
Income |
|
(Loss) |
|
Net Sales |
|
Net Sales |
|
Income |
|
Income |
|
Margin |
||||||||||||||||||||||
|
|
Net Sales |
|
(Loss) |
|
Items |
|
(Loss) |
|
Margin |
|
Net Sales |
|
(Loss) |
|
Items |
|
(Loss) |
|
Margin |
|
$ |
|
% |
|
(Loss) $ |
|
(Loss) % |
|
Points |
||||||||||||||||||||||
Q1: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
ACCO Brands North America |
|
$ |
176.7 |
|
$ |
5.2 |
|
|
$ |
5.7 |
|
$ |
10.9 |
|
|
6.2 |
% |
|
$ |
208.5 |
|
$ |
13.9 |
|
|
$ |
5.9 |
|
|
$ |
19.8 |
|
|
9.5 |
% |
|
$ |
(31.8 |
) |
|
(15.3 |
)% |
|
$ |
(8.9 |
) |
|
(44.9 |
)% |
|
(330 |
) |
ACCO Brands EMEA |
|
|
135.8 |
|
|
7.8 |
|
|
|
5.8 |
|
|
13.6 |
|
|
10.0 |
% |
|
|
156.1 |
|
|
5.6 |
|
|
|
3.5 |
|
|
|
9.1 |
|
|
5.8 |
% |
|
|
(20.3 |
) |
|
(13.0 |
)% |
|
|
4.5 |
|
|
49.5 |
% |
|
420 |
|
ACCO Brands International |
|
|
90.1 |
|
|
9.0 |
|
|
|
2.7 |
|
|
11.7 |
|
|
13.0 |
% |
|
|
77.0 |
|
|
4.2 |
|
|
|
2.0 |
|
|
|
6.2 |
|
|
8.1 |
% |
|
|
13.1 |
|
|
17.0 |
% |
|
|
5.5 |
|
|
88.7 |
% |
|
490 |
|
Corporate |
|
|
— |
|
|
(11.9 |
) |
|
|
— |
|
|
(11.9 |
) |
|
|
|
|
— |
|
|
(16.9 |
) |
|
|
4.4 |
|
|
|
(12.5 |
) |
|
|
|
|
— |
|
|
|
|
|
0.6 |
|
|
|
|
|
|||||
Total |
|
$ |
402.6 |
|
$ |
10.1 |
|
|
$ |
14.2 |
|
$ |
24.3 |
|
|
6.0 |
% |
|
$ |
441.6 |
|
$ |
6.8 |
|
|
$ |
15.8 |
|
|
$ |
22.6 |
|
|
5.1 |
% |
|
$ |
(39.0 |
) |
|
(8.8 |
)% |
|
$ |
1.7 |
|
|
7.5 |
% |
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Q2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
ACCO Brands North America |
|
$ |
292.6 |
|
$ |
55.1 |
|
|
$ |
5.6 |
|
$ |
60.7 |
|
|
20.7 |
% |
|
$ |
306.6 |
|
$ |
50.7 |
|
|
$ |
6.5 |
|
|
$ |
57.2 |
|
|
18.7 |
% |
|
$ |
(14.0 |
) |
|
(4.6 |
)% |
|
$ |
3.5 |
|
|
6.1 |
% |
|
200 |
|
ACCO Brands EMEA |
|
|
125.7 |
|
|
5.7 |
|
|
|
3.8 |
|
|
9.5 |
|
|
7.6 |
% |
|
|
137.9 |
|
|
(1.5 |
) |
|
|
3.6 |
|
|
|
2.1 |
|
|
1.5 |
% |
|
|
(12.2 |
) |
|
(8.8 |
)% |
|
|
7.4 |
|
|
NM |
|
|
610 |
|
ACCO Brands International |
|
|
75.3 |
|
|
6.7 |
|
|
|
1.6 |
|
|
8.3 |
|
|
11.0 |
% |
|
|
76.5 |
|
|
6.3 |
|
|
|
2.3 |
|
|
|
8.6 |
|
|
11.2 |
% |
|
|
(1.2 |
) |
|
(1.6 |
)% |
|
|
(0.3 |
) |
|
(3.5 |
)% |
|
(20 |
) |
Corporate |
|
|
— |
|
|
(12.3 |
) |
|
|
— |
|
|
(12.3 |
) |
|
|
|
|
— |
|
|
(0.1 |
) |
|
|
(9.7 |
) |
|
|
(9.8 |
) |
|
|
|
|
— |
|
|
|
|
|
(2.5 |
) |
|
|
|
|
|||||
Total |
|
$ |
493.6 |
|
$ |
55.2 |
|
|
$ |
11.0 |
|
$ |
66.2 |
|
|
13.4 |
% |
|
$ |
521.0 |
|
$ |
55.4 |
|
|
$ |
2.7 |
|
|
$ |
58.1 |
|
|
11.2 |
% |
|
$ |
(27.4 |
) |
|
(5.3 |
)% |
|
$ |
8.1 |
|
|
13.9 |
% |
|
220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Q3: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
ACCO Brands North America |
|
|
|
|
|
|
|
|
|
|
|
$ |
257.2 |
|
$ |
(78.4 |
) |
|
$ |
104.2 |
|
|
$ |
25.8 |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ACCO Brands EMEA |
|
|
|
|
|
|
|
|
|
|
|
|
130.3 |
|
|
4.9 |
|
|
|
2.5 |
|
|
|
7.4 |
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ACCO Brands International |
|
|
|
|
|
|
|
|
|
|
|
|
98.1 |
|
|
17.3 |
|
|
|
1.9 |
|
|
|
19.2 |
|
|
19.6 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
(6.8 |
) |
|
|
(2.8 |
) |
|
|
(9.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
|
|
|
|
|
|
|
|
|
|
|
$ |
485.6 |
|
$ |
(63.0 |
) |
|
$ |
105.8 |
|
|
$ |
42.8 |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Q4: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
ACCO Brands North America |
|
|
|
|
|
|
|
|
|
|
|
$ |
225.7 |
|
$ |
8.9 |
|
|
$ |
9.8 |
|
|
$ |
18.7 |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ACCO Brands EMEA |
|
|
|
|
|
|
|
|
|
|
|
|
156.0 |
|
|
12.7 |
|
|
|
5.7 |
|
|
|
18.4 |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ACCO Brands International |
|
|
|
|
|
|
|
|
|
|
|
|
117.7 |
|
|
22.7 |
|
|
|
1.6 |
|
|
|
24.3 |
|
|
20.6 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
(8.7 |
) |
|
|
(0.4 |
) |
|
|
(9.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
|
|
|
|
|
|
|
|
|
|
|
$ |
499.4 |
|
$ |
35.6 |
|
|
$ |
16.7 |
|
|
$ |
52.3 |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
YTD: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
ACCO Brands North America |
|
$ |
469.3 |
|
$ |
60.3 |
|
|
|
11.3 |
|
$ |
71.6 |
|
|
15.3 |
% |
|
$ |
998.0 |
|
$ |
(4.9 |
) |
|
$ |
126.4 |
|
|
$ |
121.5 |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||
ACCO Brands EMEA |
|
|
261.5 |
|
|
13.5 |
|
|
|
9.6 |
|
|
23.1 |
|
|
8.8 |
% |
|
|
580.3 |
|
|
21.7 |
|
|
|
15.3 |
|
|
|
37.0 |
|
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||
ACCO Brands International |
|
|
165.4 |
|
|
15.7 |
|
|
|
4.3 |
|
|
20.0 |
|
|
12.1 |
% |
|
|
369.3 |
|
|
50.5 |
|
|
|
7.8 |
|
|
|
58.3 |
|
|
15.8 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate |
|
|
— |
|
|
(24.2 |
) |
|
|
— |
|
|
(24.2 |
) |
|
|
|
|
— |
|
|
(32.5 |
) |
|
|
(8.5 |
) |
|
|
(41.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total |
|
$ |
896.2 |
|
$ |
65.3 |
|
|
$ |
25.2 |
|
$ |
90.5 |
|
|
10.1 |
% |
|
$ |
1,947.6 |
|
$ |
34.8 |
|
|
$ |
141.0 |
|
|
$ |
175.8 |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
See "Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Loss to Adjusted EBITDA (Unaudited)" for further information regarding adjusted items. |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ACCO Brands Corporation and Subsidiaries |
|||||||||||||||||||||||||
Supplemental Net Sales Change Analysis (Unaudited) |
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
|
% Change - Net Sales |
|
$ Change - Net Sales (in millions) |
|
|
|||||||||||||||||||
|
|
GAAP |
Non-GAAP |
|
|
GAAP |
Non-GAAP |
|
|
||||||||||||||||
|
|
|
|
|
|
Comparable |
|
|
|
|
|
|
Comparable |
|
|
||||||||||
|
|
Net Sales |
|
Currency |
|
Net Sales |
|
|
Net Sales |
|
Currency |
|
Net Sales |
|
Comparable |
||||||||||
|
|
Change |
|
Translation |
|
Change (A) |
|
|
Change |
|
Translation |
|
Change (A) |
|
Net Sales |
||||||||||
Q1 2023: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ACCO Brands North America |
|
(15.3 |
)% |
|
(0.7 |
)% |
|
(14.6 |
)% |
|
|
$ |
(31.8 |
) |
|
$ |
(1.5 |
) |
|
$ |
(30.3 |
) |
|
$ |
178.2 |
ACCO Brands EMEA |
|
(13.0 |
)% |
|
(5.7 |
)% |
|
(7.3 |
)% |
|
|
|
(20.3 |
) |
|
|
(9.0 |
) |
|
|
(11.3 |
) |
|
|
144.8 |
ACCO Brands International |
|
17.0 |
% |
|
(0.2 |
)% |
|
17.2 |
% |
|
|
|
13.1 |
|
|
|
(0.2 |
) |
|
|
13.3 |
|
|
|
90.3 |
Total |
|
(8.8 |
)% |
|
(2.4 |
)% |
|
(6.4 |
)% |
|
|
|
(39.0 |
) |
|
$ |
(10.6 |
) |
|
$ |
(28.4 |
) |
|
$ |
413.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Q2 2023: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ACCO Brands North America |
|
(4.6 |
)% |
|
(0.5 |
)% |
|
(4.1 |
)% |
|
|
$ |
(14.0 |
) |
|
$ |
(1.6 |
) |
|
$ |
(12.4 |
) |
|
$ |
294.2 |
ACCO Brands EMEA |
|
(8.8 |
)% |
|
0.3 |
% |
|
(9.1 |
)% |
|
|
|
(12.2 |
) |
|
|
0.4 |
|
|
|
(12.6 |
) |
|
|
125.3 |
ACCO Brands International |
|
(1.6 |
)% |
|
0.7 |
% |
|
(2.3 |
)% |
|
|
|
(1.2 |
) |
|
|
0.5 |
|
|
|
(1.7 |
) |
|
|
74.8 |
Total |
|
(5.3 |
)% |
|
(0.2 |
)% |
|
(5.1 |
)% |
|
|
$ |
(27.4 |
) |
|
$ |
(0.8 |
) |
|
$ |
(26.6 |
) |
|
$ |
494.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2023 YTD: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ACCO Brands North America |
|
(8.9 |
)% |
|
(0.6 |
)% |
|
(8.3 |
)% |
|
|
$ |
(45.8 |
) |
|
$ |
(3.1 |
) |
|
$ |
(42.7 |
) |
|
$ |
472.4 |
ACCO Brands EMEA |
|
(11.1 |
)% |
|
(2.9 |
)% |
|
(8.2 |
)% |
|
|
|
(32.5 |
) |
|
|
(8.6 |
) |
|
|
(23.9 |
) |
|
|
270.1 |
ACCO Brands International |
|
7.8 |
% |
|
0.2 |
% |
|
7.6 |
% |
|
|
|
11.9 |
|
|
|
0.3 |
|
|
|
11.6 |
|
|
|
165.1 |
Total |
|
(6.9 |
)% |
|
(1.2 |
)% |
|
(5.7 |
)% |
|
|
$ |
(66.4 |
) |
|
$ |
(11.4 |
) |
|
$ |
(55.0 |
) |
|
$ |
907.6 |
|
|||||||||||||||||||||||||
(A) Comparable net sales represents net sales excluding material acquisitions and with current-period foreign operation sales translated at the prior-year currency rates. |
|||||||||||||||||||||||||
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808175118/en/
Christopher McGinnis
Investor Relations
(847) 796-4320
Lori Conley
Media Relations
(937) 495-4949
Source: ACCO Brands Corporation
FAQ
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