H.B. Fuller Reports Third Quarter 2024 Results
H.B. Fuller Company (NYSE: FUL) reported financial results for its third quarter ended August 31, 2024. Key highlights include:
- Net income of $55 million
- Adjusted EBITDA of $165 million, up 6% year-on-year
- Adjusted EBITDA margin of 18.0%, up 70 basis points year-on-year
- Reported EPS (diluted) of $0.98; adjusted EPS (diluted) of $1.13, up 7% versus prior year
- Net revenue of $918 million, up 1.9% year-on-year including organic volume growth of 3.0%
The company updated its fiscal 2024 outlook, now expecting net revenue growth of approximately 2% with organic revenue flat year-on-year. Adjusted EBITDA is projected to be between $610 million and $620 million, while adjusted EPS (diluted) is expected to be in the range of $4.10 to $4.20.
H.B. Fuller Company (NYSE: FUL) ha riportato i risultati finanziari per il terzo trimestre chiuso il 31 agosto 2024. Principali punti salienti includono:
- Utile netto di 55 milioni di dollari
- EBITDA rettificato di 165 milioni di dollari, in aumento del 6% rispetto all’anno precedente
- Margine EBITDA rettificato del 18,0%, in aumento di 70 punti base rispetto all’anno precedente
- Utile per azione riportato (diluito) di 0,98 dollari; utile per azione rettificato (diluito) di 1,13 dollari, in aumento del 7% rispetto all’anno precedente
- Fatturato netto di 918 milioni di dollari, in aumento dell’1,9% rispetto all’anno precedente, con una crescita del volume organico del 3,0%
L’azienda ha aggiornato la sua previsione fiscale per il 2024, ora aspettandosi una crescita del fatturato netto di circa il 2% con ricavi organici stabili rispetto all’anno precedente. Si prevede che l'EBITDA rettificato sarà compreso tra 610 milioni e 620 milioni di dollari, mentre l'utile per azione rettificato (diluito) è atteso nell'intervallo di 4,10 a 4,20 dollari.
La empresa H.B. Fuller Company (NYSE: FUL) reportó resultados financieros para su tercer trimestre que finalizó el 31 de agosto de 2024. Puntos destacados clave incluyen:
- Ingreso neto de 55 millones de dólares
- EBITDA ajustado de 165 millones de dólares, un aumento del 6% en comparación con el año anterior
- Margen EBITDA ajustado del 18.0%, un aumento de 70 puntos básicos en comparación con el año anterior
- EPS reportado (diluido) de 0.98 dólares; EPS ajustado (diluido) de 1.13 dólares, un aumento del 7% respecto al año anterior
- Ingresos netos de 918 millones de dólares, un incremento del 1.9% en comparación con el año anterior, incluyendo un crecimiento de volumen orgánico del 3.0%
La empresa actualizó su perspectiva fiscal para 2024, ahora anticipando un crecimiento de ingresos netos de aproximadamente el 2% con ingresos orgánicos sin cambios en comparación con el año anterior. Se proyecta que el EBITDA ajustado esté entre 610 millones y 620 millones de dólares, mientras que se espera que el EPS ajustado (diluido) esté en el rango de 4.10 a 4.20 dólares.
H.B. 플레더 컴퍼니 (NYSE: FUL)는 2024년 8월 31일에 종료된 3분기 재무 결과를 보고했습니다. 주요 하이라이트는 다음과 같습니다:
- 순이익 5천5백만 달러
- 조정 EBITDA 1억6천5백만 달러, 전년 대비 6% 증가
- 조정 EBITDA 마진 18.0%, 전년 대비 70 베이시스 포인트 증가
- 보고된 주당순이익 (희석) 0.98달러; 조정 주당순이익 (희석) 1.13달러, 전년 대비 7% 증가
- 순매출 9억1천8백만 달러, 전년 대비 1.9% 증가, 유기적 매출 성장 3.0% 포함
회사는 2024 회계연도 전망을 업데이트했으며, 이제 순매출이 약 2% 성장할 것으로 예상하고 있으며, 유기적 매출은 전년 대비 변동이 없을 것으로 보입니다. 조정 EBITDA는 6억1천만 달러에서 6억2천만 달러 사이로 예상되며, 조정 주당순이익 (희석)은 4.10달러에서 4.20달러 범위로 예상됩니다.
La société H.B. Fuller Company (NYSE: FUL) a rapporté ses résultats financiers pour son troisième trimestre terminé le 31 août 2024. Principaux points forts incluent :
- Bénéfice net de 55 millions de dollars
- EBITDA ajusté de 165 millions de dollars, en hausse de 6 % par rapport à l'année précédente
- Marche d'EBITDA ajusté de 18,0 %, en hausse de 70 points de base par rapport à l'année précédente
- BPA rapporté (dilué) de 0,98 $ ; BPA ajusté (dilué) de 1,13 $, en hausse de 7 % par rapport à l'année précédente
- Chiffre d'affaires net de 918 millions de dollars, en hausse de 1,9 % par rapport à l'année précédente, incluant une croissance organique du volume de 3,0 %
L'entreprise a mis à jour ses prévisions fiscales pour 2024, s'attendant désormais à une croissance du chiffre d'affaires net d'environ 2 % avec des revenus organiques stables par rapport à l'année précédente. L'EBITDA ajusté devrait se situer entre 610 millions et 620 millions de dollars, tandis que le BPA ajusté (dilué) est prévu dans une fourchette de 4,10 à 4,20 dollars.
Die H.B. Fuller Company (NYSE: FUL) hat die finanziellen Ergebnisse für das im Jahr 31. August 2024 endende dritte Quartal bekannt gegeben. Wichtige Highlights umfassen:
- Nettoeinkommen von 55 Millionen Dollar
- Bereinigtes EBITDA von 165 Millionen Dollar, ein Anstieg von 6 % im Vergleich zum Vorjahr
- Bereinigte EBITDA-Marge von 18,0 %, ein Anstieg um 70 Basispunkte im Vergleich zum Vorjahr
- Berichtetes EPS (verwässert) von 0,98 Dollar; bereinigtes EPS (verwässert) von 1,13 Dollar, ein Anstieg von 7 % gegenüber dem Vorjahr
- Nettoerlös von 918 Millionen Dollar, ein Anstieg von 1,9 % im Vergleich zum Vorjahr, einschließlich organischem Volumenwachstum von 3,0 %
Das Unternehmen hat seinen Ausblick für das Geschäftsjahr 2024 aktualisiert und erwartet nun ein Wachstum des Nettoumsatzes von etwa 2 % mit einem organischen Umsatz, der im Vergleich zum Vorjahr stabil bleibt. Das bereinigte EBITDA wird voraussichtlich zwischen 610 Millionen und 620 Millionen Dollar liegen, während das bereinigte EPS (verwässert) im Bereich von 4,10 bis 4,20 Dollar erwartet wird.
- Adjusted EBITDA increased 6% year-on-year to $165 million
- Adjusted EBITDA margin expanded 70 basis points to 18.0%
- Adjusted EPS (diluted) grew 7% to $1.13
- Net revenue increased 1.9% year-on-year to $918 million
- Organic volume growth of 3.0%
- Net working capital as a percentage of annualized net revenue decreased 200 basis points to 16.1%
- Acquired HS Butyl , expanding position in global waterproofing tape market
- Pricing adjustments reduced organic revenue by 2.6%
- Foreign currency translation reduced net revenue by 1.5%
- SG&A expense increased year-on-year
- Net debt increased by $100 million year-on-year
- Lowered full-year guidance due to slowing market demand in certain durable goods markets
Insights
H.B. Fuller's Q3 2024 results show modest growth and margin expansion despite challenging macroeconomic conditions. Key highlights include:
- Net revenue up
1.9% year-on-year to$918 million , with organic volume growth of3.0% - Adjusted EBITDA increased
6% to$165 million , with margin expanding 70 basis points to18.0% - Adjusted EPS up
7% to$1.13 per diluted share - Improved working capital management, decreasing 200 basis points year-on-year to
16.1% of annualized revenue
However, the company has revised its full-year 2024 outlook due to slowing demand in certain markets. The updated guidance projects flat organic revenue growth and adjusted EBITDA of
H.B. Fuller's Q3 results reveal a company navigating a complex market landscape. The
The acquisition of HS Butyl demonstrates a strategic focus on expanding into high-growth segments like waterproofing tapes. This move could provide a buffer against softening demand in other areas. The company's ability to expand margins through restructuring and strategic acquisitions showcases effective management in a tough environment.
Investors should monitor the company's performance in Q4 closely, as it will be important in determining whether the revised outlook was appropriately conservative or if further headwinds are emerging. The adhesives market's performance often serves as a leading indicator for broader industrial and consumer trends, making H.B. Fuller's results a valuable barometer for the overall economy.
Reported EPS (diluted) of
Net income of
Adjusted EBITDA margin of
Third Quarter 2024 Noteworthy Items:
-
Net income was
; adjusted EBITDA was$55 million , up$165 million 6% year-on-year; adjusted EBITDA margin expanded 70 basis points year-on-year to18.0% ; -
Reported EPS (diluted) was
; adjusted EPS (diluted) was$0.98 , up$1.13 7% versus the prior year; -
Net revenue was
, up$918 million 1.9% year-on-year including organic volume growth of3.0% ; -
Gross profit margin was
30.0% ; adjusted gross profit margin was30.4% , up 40 basis points year-on-year; -
Net working capital, as a percentage of annualized net revenue, decreased 200 basis points year-on-year from
18.1% to16.1% ; - Repurchased 407,400 shares year-to-date, including 225,000 shares in the quarter;
- Acquired HS Butyl Limited, the UK’s largest manufacturer and distributor of high-quality butyl tapes, expanding H.B. Fuller’s position in the global waterproofing tape market.
Summary of Third Quarter 2024 Results:
The Company’s net revenue for the third quarter of fiscal 2024 was
Gross profit in the third quarter of fiscal 2024 was
Selling, general and administrative (SG&A) expense was
Net income attributable to H.B. Fuller for the third quarter of fiscal 2024 was
Adjusted EBITDA in the third quarter of fiscal 2024 was
H.B. Fuller President and CEO Celeste Mastin said, “In the third quarter, we continued to advance our strategy and expand EBITDA margins through volume growth, restructuring actions, and the acquisition of highly profitable, fast-growing businesses. At the same time, we continue to navigate a dynamic macroeconomic environment across our portfolio. Our volume growth during the quarter was impacted by slowing market demand in certain durable goods markets in EA, and we are adjusting our full year outlook accordingly. While this quarter’s volume growth was at the low end of our expectations, we have a clear and focused strategy and a highly engaged team that is well equipped to execute and drive business success. We remain on track to deliver upon our long-term EBITDA margin and organic growth targets.”
Balance Sheet and Working Capital:
Net debt at the end of the third quarter of fiscal 2024 was
Net working capital in the third quarter of fiscal 2024 decreased
Fiscal 2024 Outlook:
As a result of our year-to-date performance and current macroeconomic conditions, we are updating our previously communicated financial guidance for fiscal 2024 as follows:
-
Net revenue growth is now expected to be up approximately
2% with organic revenue flat year-on-year; -
Adjusted EBITDA is now expected to be in the range of
to$610 million , equating to year-on-year growth of between$620 million 5% and7% ; -
Adjusted EPS (diluted) is now expected be in the range of
to$4.10 , equating to year-on-year growth of between$4.20 6% and9% ; -
Operating cash flow is now expected to be between
and$325 million .$350 million
Conference Call:
The Company will hold a conference call on September 26, 2024, at 9:30 a.m. CT (10:30 a.m. ET) to discuss its results. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the Company’s website at https://investors.hbfuller.com. Participants must register prior to accessing the webcast using this link and should do so at least 10 minutes prior to the start of the call to install and test any necessary software and audio connections. A telephone replay of the conference call will be available from 12:30 p.m. CT on September 26, 2024, to 10:59 p.m. CT on October 3, 2024. To access the telephone replay dial 1-800-770-2030 (toll free) or 1-609-800-9909, and enter Conference ID: 6370505.
Regulation G:
The information presented in this earnings release regarding consolidated and segment organic revenue growth, operating income, adjusted gross profit, adjusted gross profit margin, adjusted selling, general and administrative expense, adjusted income before income taxes and income from equity investments, adjusted income taxes, adjusted effective tax rate, adjusted net income, adjusted diluted earnings per share, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA margin, net debt, net debt-to-adjusted EBITDA, trailing twelve months adjusted EBITDA, net working capital, annualized net revenue and net working capital as a percentage of annualized net revenue does not conform to
About H.B. Fuller:
As the largest pureplay adhesives company in the world, H.B. Fuller’s (NYSE: FUL) innovative, functional coatings, adhesives and sealants enhance the quality, safety and performance of products people use every day. Founded in 1887, with 2023 revenue of
Safe Harbor for Forward-Looking Statements:
Certain statements in this press release may be considered forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases. These statements are subject to various risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including but not limited to the following: the availability and pricing of raw materials; the impact of potential cybersecurity attacks and security breaches; the impact on the supply chain, raw material costs and pricing of our products due to military conflict, including between
Additional information about these various risks and uncertainties can be found in the “Risk Factors” section of our Form 10-K filings, and any updates to the risk factors in our Form 10-Q and 8-K filings with the SEC, but there may be other risks and uncertainties that we are unable to identify at this time or that we do not currently expect to have a material impact on the business. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.
H.B. FULLER COMPANY AND SUBSIDIARIES |
CONSOLIDATED FINANCIAL INFORMATION |
In thousands, except per share amounts (unaudited) |
|
|
Three
|
|
Percent of
|
|
Three
|
|
Percent of
|
||||||||
Net revenue |
|
$ |
917,927 |
|
|
|
100.0 |
% |
|
$ |
900,634 |
|
|
|
100.0 |
% |
Cost of sales |
|
|
(642,198 |
) |
|
|
(70.0 |
)% |
|
|
(637,162 |
) |
|
|
(70.7 |
)% |
Gross profit |
|
|
275,729 |
|
|
|
30.0 |
% |
|
|
263,472 |
|
|
|
29.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
(171,388 |
) |
|
|
(18.7 |
)% |
|
|
(172,153 |
) |
|
|
(19.1 |
)% |
Other income, net |
|
|
2,148 |
|
|
|
0.2 |
% |
|
|
1,555 |
|
|
|
0.2 |
% |
Interest expense |
|
|
(35,288 |
) |
|
|
(3.8 |
)% |
|
|
(35,105 |
) |
|
|
(3.9 |
)% |
Interest income |
|
|
1,092 |
|
|
|
0.1 |
% |
|
|
1,128 |
|
|
|
0.1 |
% |
Income before income taxes and income from equity method investments |
|
|
72,293 |
|
|
|
7.9 |
% |
|
|
58,897 |
|
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income taxes |
|
|
(18,264 |
) |
|
|
(2.0 |
)% |
|
|
(22,231 |
) |
|
|
(2.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from equity method investments |
|
|
1,310 |
|
|
|
0.1 |
% |
|
|
984 |
|
|
|
0.1 |
% |
Net income including non-controlling interest |
|
|
55,339 |
|
|
|
6.0 |
% |
|
|
37,650 |
|
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to non-controlling interest |
|
|
22 |
|
|
|
0.0 |
% |
|
|
(23 |
) |
|
|
(0.0 |
)% |
Net income attributable to H.B. Fuller |
|
$ |
55,361 |
|
|
|
6.0 |
% |
|
$ |
37,627 |
|
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic income per common share attributable to H.B. Fuller |
|
$ |
1.01 |
|
|
|
|
|
$ |
0.69 |
|
|
|
|
||
Diluted income per common share attributable to H.B. Fuller |
|
$ |
0.98 |
|
|
|
|
|
$ |
0.67 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
54,975 |
|
|
|
|
|
|
54,394 |
|
|
|
|
||
Diluted |
|
|
56,650 |
|
|
|
|
|
|
56,033 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends declared per common share |
|
$ |
0.223 |
|
|
|
|
|
$ |
0.205 |
|
|
|
|
H.B. FULLER COMPANY AND SUBSIDIARIES |
CONSOLIDATED FINANCIAL INFORMATION |
In thousands, except per share amounts (unaudited) |
|
|
Nine Months
|
|
Percent of
|
|
Nine Months
|
|
Percent of
|
||||||||
Net revenue |
|
$ |
2,645,452 |
|
|
|
100.0 |
% |
|
$ |
2,608,055 |
|
|
|
100.0 |
% |
Cost of sales |
|
|
(1,848,435 |
) |
|
|
(69.9 |
)% |
|
|
(1,873,000 |
) |
|
|
(71.8 |
)% |
Gross profit |
|
|
797,017 |
|
|
|
30.1 |
% |
|
|
735,055 |
|
|
|
28.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
(525,204 |
) |
|
|
(19.9 |
)% |
|
|
(493,320 |
) |
|
|
(18.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income, net |
|
|
7,282 |
|
|
|
0.3 |
% |
|
|
4,764 |
|
|
|
0.2 |
% |
Interest expense |
|
|
(99,504 |
) |
|
|
(3.8 |
)% |
|
|
(101,305 |
) |
|
|
(3.9 |
)% |
Interest income |
|
|
3,597 |
|
|
|
0.1 |
% |
|
|
2,726 |
|
|
|
0.1 |
% |
Income before income taxes and income from equity method investments |
|
|
183,188 |
|
|
|
6.9 |
% |
|
|
147,920 |
|
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income taxes |
|
|
(48,496 |
) |
|
|
(1.8 |
)% |
|
|
(51,255 |
) |
|
|
(2.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from equity method investments |
|
|
2,955 |
|
|
|
0.1 |
% |
|
|
3,322 |
|
|
|
0.1 |
% |
Net income including non-controlling interest |
|
|
137,647 |
|
|
|
5.2 |
% |
|
|
99,987 |
|
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to non-controlling interest |
|
|
(32 |
) |
|
|
(0.0 |
)% |
|
|
(71 |
) |
|
|
(0.0 |
)% |
Net income attributable to H.B. Fuller |
|
$ |
137,615 |
|
|
|
5.2 |
% |
|
$ |
99,916 |
|
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic income per common share attributable to H.B. Fuller |
|
$ |
2.51 |
|
|
|
|
|
$ |
1.84 |
|
|
|
|
||
Diluted income per common share attributable to H.B. Fuller |
|
$ |
2.43 |
|
|
|
|
|
$ |
1.79 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
54,874 |
|
|
|
|
|
|
54,279 |
|
|
|
|
||
Diluted |
|
|
56,620 |
|
|
|
|
|
|
55,890 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends declared per common share |
|
$ |
0.651 |
|
|
|
|
|
$ |
0.600 |
|
|
|
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands, except per share amounts (unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
August 31, |
|
September 2, |
|
August 31, |
|
September 2, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to H.B. Fuller |
|
$ |
55,361 |
|
|
$ |
37,627 |
|
|
$ |
137,615 |
|
|
$ |
99,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition project costs1 |
|
|
3,474 |
|
|
|
6,480 |
|
|
|
6,984 |
|
|
|
11,634 |
|
Organizational realignment2 |
|
|
9,471 |
|
|
|
10,421 |
|
|
|
24,038 |
|
|
|
19,055 |
|
Project One3 |
|
|
3,154 |
|
|
|
2,734 |
|
|
|
9,213 |
|
|
|
7,587 |
|
Other4 |
|
|
(2,904 |
) |
|
|
503 |
|
|
|
(2,021 |
) |
|
|
4,098 |
|
Discrete tax items5 |
|
|
(2,937 |
) |
|
|
6,243 |
|
|
|
(4,147 |
) |
|
|
9,131 |
|
Income tax effect on adjustments6 |
|
|
(1,624 |
) |
|
|
(4,875 |
) |
|
|
(6,472 |
) |
|
|
(9,447 |
) |
Adjusted net income attributable to H.B. Fuller7 |
|
|
63,995 |
|
|
|
59,133 |
|
|
|
165,210 |
|
|
|
141,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
35,287 |
|
|
|
35,105 |
|
|
|
99,502 |
|
|
|
98,615 |
|
Interest income |
|
|
(1,090 |
) |
|
|
(1,128 |
) |
|
|
(3,594 |
) |
|
|
(2,726 |
) |
Adjusted Income taxes |
|
|
22,825 |
|
|
|
20,862 |
|
|
|
59,114 |
|
|
|
51,569 |
|
Depreciation and Amortization expense8 |
|
|
44,235 |
|
|
|
41,826 |
|
|
|
125,288 |
|
|
|
118,803 |
|
Adjusted EBITDA7 |
|
|
165,252 |
|
|
|
155,798 |
|
|
|
445,520 |
|
|
|
408,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted Shares |
|
|
56,650 |
|
|
|
56,033 |
|
|
|
56,620 |
|
|
|
55,890 |
|
Adjusted diluted income per common share attributable to H.B. Fuller7 |
|
$ |
1.13 |
|
|
$ |
1.06 |
|
|
$ |
2.92 |
|
|
$ |
2.54 |
|
Revenue |
|
$ |
917,927 |
|
|
$ |
900,634 |
|
|
$ |
2,645,452 |
|
|
$ |
2,608,055 |
|
Adjusted EBITDA margin7 |
|
|
18.0 |
% |
|
|
17.3 |
% |
|
|
16.8 |
% |
|
|
15.7 |
% |
1 Acquisition project costs include costs related to evaluating, acquiring and integrating business acquisitions. Acquisition project costs include |
2 Organizational realignment includes costs incurred as a direct result of the organizational realignment program, including professional fees related to legal entity and business structure changes, employee retention and severance costs, and facility rationalization costs related to the closure of production facilities and consolidation of business activities. Facility rationalization costs include plant closure costs, the impact of accelerated depreciation, and, for the three months ended March 2, 2024, operational inefficiencies. Organizational realignment includes |
3 Project One includes non-capitalizable project costs related implementing our global Enterprise Resource Planning system, including upgrading to SAP S/4HANA®, which will upgrade and standardize our information system. |
4 Other includes a gain from insurance recoveries and a loss from the write-off of a cost method investment for the three and nine months ended August 31, 2024. Other includes the write-off of unamortized debt fees and non-cash gains and losses related to legal entity consolidations for fiscal 2023. |
5 Discrete tax items for the three and nine months ended August 31, 2024 are related to various foreign tax matters as well as excess tax benefit related to |
6 The income tax effect on adjustments represents the difference between income taxes on net income before income taxes and income from equity method investments reported in accordance with |
7 Adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Adjusted net income attributable to H.B. Fuller is defined as net income before the specific adjustments shown above. Adjusted diluted income per common share is defined as adjusted net income attributable to H.B. Fuller divided by the number of diluted common shares. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation, amortization and the specific adjustments shown above. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue. The table above provides a reconciliation of adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with |
8 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller totaling |
H.B. FULLER COMPANY AND SUBSIDIARIES |
SEGMENT FINANCIAL INFORMATION |
In thousands (unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
August 31, |
|
September 2, |
|
August 31, |
|
September 2, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Hygiene, Health and Consumable Adhesives |
|
$ |
389,854 |
|
|
$ |
402,388 |
|
|
$ |
1,150,658 |
|
|
$ |
1,190,402 |
|
Engineering Adhesives |
|
|
374,923 |
|
|
|
365,862 |
|
|
|
1,077,206 |
|
|
|
1,063,009 |
|
Construction Adhesives |
|
|
153,150 |
|
|
|
132,384 |
|
|
|
417,588 |
|
|
|
354,644 |
|
Corporate unallocated |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total H.B. Fuller |
|
$ |
917,927 |
|
|
$ |
900,634 |
|
|
$ |
2,645,452 |
|
|
$ |
2,608,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Hygiene, Health and Consumable Adhesives |
|
$ |
49,782 |
|
|
$ |
52,737 |
|
|
$ |
147,147 |
|
|
$ |
149,474 |
|
Engineering Adhesives |
|
|
52,865 |
|
|
|
52,931 |
|
|
|
139,522 |
|
|
|
129,806 |
|
Construction Adhesives |
|
|
12,543 |
|
|
|
5,853 |
|
|
|
20,342 |
|
|
|
2,189 |
|
Corporate unallocated |
|
|
(10,849 |
) |
|
|
(20,202 |
) |
|
|
(35,198 |
) |
|
|
(39,734 |
) |
Total H.B. Fuller |
|
$ |
104,341 |
|
|
$ |
91,319 |
|
|
$ |
271,813 |
|
|
$ |
241,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Hygiene, Health and Consumable Adhesives |
|
$ |
64,320 |
|
|
$ |
69,172 |
|
|
$ |
191,793 |
|
|
$ |
194,125 |
|
Engineering Adhesives |
|
|
73,968 |
|
|
|
70,723 |
|
|
|
195,133 |
|
|
|
181,758 |
|
Construction Adhesives |
|
|
25,119 |
|
|
|
18,519 |
|
|
|
57,314 |
|
|
|
39,584 |
|
Corporate unallocated |
|
|
1,845 |
|
|
|
(2,616 |
) |
|
|
1,280 |
|
|
|
(7,232 |
) |
Total H.B. Fuller |
|
$ |
165,252 |
|
|
$ |
155,798 |
|
|
$ |
445,520 |
|
|
$ |
408,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA Margin7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Hygiene, Health and Consumable Adhesives |
|
|
16.5 |
% |
|
|
17.2 |
% |
|
|
16.7 |
% |
|
|
16.3 |
% |
Engineering Adhesives |
|
|
19.7 |
% |
|
|
19.3 |
% |
|
|
18.1 |
% |
|
|
17.1 |
% |
Construction Adhesives |
|
|
16.4 |
% |
|
|
14.0 |
% |
|
|
13.7 |
% |
|
|
11.2 |
% |
Corporate unallocated |
|
NMP |
|
NMP |
|
NMP |
|
NMP |
||||||||
Total H.B. Fuller |
|
|
18.0 |
% |
|
|
17.3 |
% |
|
|
16.8 |
% |
|
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NMP = non-meaningful percentage |
|
|
|
|
|
|
|
|
|
|
|
|
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands, except per share amounts (unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
|
|
August 31, |
|
September 2, |
|
August 31, |
|
September 2, |
||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Income before income taxes and income from equity method investments |
|
$ |
72,293 |
|
|
$ |
58,897 |
|
$ |
183,188 |
|
|
$ |
147,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||
Acquisition project costs1 |
|
|
3,474 |
|
|
|
6,480 |
|
|
6,984 |
|
|
|
11,634 |
Organizational realignment2 |
|
|
9,471 |
|
|
|
10,421 |
|
|
24,038 |
|
|
|
19,055 |
Project One3 |
|
|
3,154 |
|
|
|
2,734 |
|
|
9,213 |
|
|
|
7,587 |
Other4 |
|
|
(2,904 |
) |
|
|
503 |
|
|
(2,021 |
) |
|
|
4,098 |
Adjusted income before income taxes and income from equity method investments9 |
|
$ |
85,488 |
|
|
$ |
79,035 |
|
$ |
221,402 |
|
|
$ |
190,294 |
9 Adjusted income before income taxes and income from equity investments is a non-GAAP financial measure. Adjusted income before income taxes and income from equity investments is defined as income before income taxes and income from equity investments before the specific adjustments shown above. The table above provides a reconciliation of adjusted income before income taxes and income from equity investments to income before income taxes and income from equity investments, the most directly comparable financial measure determined and reported in accordance with |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands, except per share amounts (unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
August 31, |
|
September 2, |
|
August 31, |
|
September 2, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Income Taxes |
|
$ |
(18,264 |
) |
|
$ |
(22,231 |
) |
|
$ |
(48,496 |
) |
|
$ |
(51,255 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition project costs1 |
|
|
(428 |
) |
|
|
(1,569 |
) |
|
|
(1,147 |
) |
|
|
(2,620 |
) |
Organizational realignment2 |
|
|
(1,166 |
) |
|
|
(2,523 |
) |
|
|
(3,984 |
) |
|
|
(4,247 |
) |
Project One3 |
|
|
(388 |
) |
|
|
(662 |
) |
|
|
(1,587 |
) |
|
|
(1,655 |
) |
Other4 |
|
|
(2,579 |
) |
|
|
6,123 |
|
|
|
(3,900 |
) |
|
|
8,208 |
|
Adjusted income taxes10 |
|
$ |
(22,825 |
) |
|
$ |
(20,862 |
) |
|
$ |
(59,114 |
) |
|
$ |
(51,569 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted income before income taxes and income from equity method investments |
|
$ |
85,488 |
|
|
$ |
79,035 |
|
|
$ |
221,402 |
|
|
$ |
190,294 |
|
Adjusted effective income tax rate10 |
|
|
26.7 |
% |
|
|
26.4 |
% |
|
|
26.7 |
% |
|
|
27.1 |
% |
10 Adjusted income taxes and adjusted effective income tax rate are non-GAAP financial measures. Adjusted income taxes is defined as income taxes before the specific adjustments shown above. Adjusted effective income tax rate is defined as income taxes divided by adjusted income before income taxes and income from equity method investments. The table above provides a reconciliation of adjusted income taxes and adjusted effective income tax rate to income taxes, the most directly comparable financial measure determined and reported in accordance with |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands (unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
August 31, |
|
September 2, |
|
August 31, |
|
September 2, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue |
|
$ |
917,927 |
|
|
$ |
900,634 |
|
|
$ |
2,645,452 |
|
|
$ |
2,608,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
$ |
275,729 |
|
|
$ |
263,472 |
|
|
$ |
797,017 |
|
|
$ |
735,055 |
|
Gross profit margin |
|
|
30.0 |
% |
|
|
29.3 |
% |
|
|
30.1 |
% |
|
|
28.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition project costs1 |
|
|
927 |
|
|
|
1,516 |
|
|
|
1,000 |
|
|
|
2,617 |
|
Organizational realignment2 |
|
|
2,799 |
|
|
|
4,961 |
|
|
|
10,679 |
|
|
|
9,972 |
|
Project One3 |
|
|
- |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
Other4 |
|
|
- |
|
|
|
318 |
|
|
|
- |
|
|
|
479 |
|
Adjusted gross profit11 |
|
$ |
279,455 |
|
|
$ |
270,267 |
|
|
$ |
808,709 |
|
|
$ |
748,123 |
|
Adjusted gross profit margin11 |
|
|
30.4 |
% |
|
|
30.0 |
% |
|
|
30.6 |
% |
|
|
28.7 |
% |
11 Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin is defined as gross profit and gross profit margin excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted gross profit and gross profit margin to gross profit and gross profit margin, the most directly comparable financial measure determined and reported in accordance with |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands (unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
August 31, |
|
September 2, |
|
August 31, |
|
September 2, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
$ |
(171,388 |
) |
|
$ |
(172,153 |
) |
|
$ |
(525,204 |
) |
|
$ |
(493,320 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition project costs1 |
|
|
2,524 |
|
|
|
5,066 |
|
|
|
5,962 |
|
|
|
9,119 |
|
Organizational realignment2 |
|
|
6,307 |
|
|
|
5,460 |
|
|
|
12,322 |
|
|
|
9,083 |
|
Project One3 |
|
|
3,154 |
|
|
|
2,734 |
|
|
|
9,200 |
|
|
|
7,587 |
|
Other4 |
|
|
(4,871 |
) |
|
|
149 |
|
|
|
(3,988 |
) |
|
|
880 |
|
Adjusted selling, general and administrative expenses12 |
|
$ |
(164,274 |
) |
|
$ |
(158,744 |
) |
|
$ |
(501,708 |
) |
|
$ |
(466,651 |
) |
12 Adjusted selling, general and administrative expenses is a non-GAAP financial measure. Adjusted selling, general and administrative expenses is defined as selling, general and administrative expenses excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted selling, general and administrative expenses to selling, general and administrative expenses, the most directly comparable financial measure determined and reported in accordance with |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands (unaudited) |
Three Months Ended: |
|
Hygiene, Health
|
|
Engineering |
|
Construction |
|
|
|
|
Corporate |
|
H.B. Fuller |
|||||||||||
August 31, 2024 |
|
Adhesives |
|
Adhesives |
|
Adhesives |
|
Total |
|
Unallocated |
|
Consolidated |
||||||||||||
Net income attributable to H.B. Fuller |
|
$ |
51,280 |
|
|
$ |
53,918 |
|
|
$ |
13,974 |
|
|
$ |
119,172 |
|
|
$ |
(63,811 |
) |
|
$ |
55,361 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Acquisition project costs1 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,474 |
|
|
|
3,474 |
|
Organizational realignment2 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,471 |
|
|
|
9,471 |
|
Project One3 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,154 |
|
|
|
3,154 |
|
Other4 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,904 |
) |
|
|
(2,904 |
) |
Discrete tax items5 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,937 |
) |
|
|
(2,937 |
) |
Income tax effect on adjustments6 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,624 |
) |
|
|
(1,624 |
) |
Adjusted net income attributable to H.B. Fuller7 |
|
|
51,280 |
|
|
|
53,918 |
|
|
|
13,974 |
|
|
|
119,172 |
|
|
|
(55,177 |
) |
|
|
63,995 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
35,287 |
|
|
|
35,287 |
|
Interest income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,090 |
) |
|
|
(1,090 |
) |
Adjusted Income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
22,825 |
|
|
|
22,825 |
|
Depreciation and amortization expense8 |
|
|
13,040 |
|
|
|
20,050 |
|
|
|
11,145 |
|
|
|
44,235 |
|
|
|
- |
|
|
|
44,235 |
|
Adjusted EBITDA7 |
|
$ |
64,320 |
|
|
$ |
73,968 |
|
|
$ |
25,119 |
|
|
$ |
163,407 |
|
|
$ |
1,845 |
|
|
$ |
165,252 |
|
Revenue |
|
$ |
389,854 |
|
|
$ |
374,923 |
|
|
$ |
153,150 |
|
|
$ |
917,927 |
|
|
|
- |
|
|
$ |
917,927 |
|
Adjusted EBITDA Margin7 |
|
|
16.5 |
% |
|
|
19.7 |
% |
|
|
16.4 |
% |
|
|
17.8 |
% |
|
NMP |
|
|
18.0 |
% |
Nine Months Ended |
|
Hygiene, Health
|
|
Engineering |
|
Construction |
|
|
|
|
Corporate |
|
H.B. Fuller |
|||||||||||
August 31, 2024 |
|
Adhesives |
|
Adhesives |
|
Adhesives |
|
Total |
|
Unallocated |
|
Consolidated |
||||||||||||
Net income attributable to H.B. Fuller |
|
$ |
151,636 |
|
|
$ |
142,681 |
|
|
$ |
24,635 |
|
|
$ |
318,952 |
|
|
$ |
(181,337 |
) |
|
$ |
137,615 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Acquisition project costs1 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,984 |
|
|
|
6,984 |
|
Organizational realignment2 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
24,038 |
|
|
|
24,038 |
|
Project One3 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,213 |
|
|
|
9,213 |
|
Other4 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,021 |
) |
|
|
(2,021 |
) |
Discrete tax items5 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,147 |
) |
|
|
(4,147 |
) |
Income tax effect on adjustments6 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,472 |
) |
|
|
(6,472 |
) |
Adjusted net income attributable to H.B. Fuller7 |
|
|
151,636 |
|
|
|
142,681 |
|
|
|
24,635 |
|
|
|
318,952 |
|
|
|
(153,742 |
) |
|
|
165,210 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
99,502 |
|
|
|
99,502 |
|
Interest income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,594 |
) |
|
|
(3,594 |
) |
Adjusted Income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
59,114 |
|
|
|
59,114 |
|
Depreciation and amortization expense8 |
|
|
40,157 |
|
|
|
52,452 |
|
|
|
32,679 |
|
|
|
125,288 |
|
|
|
- |
|
|
|
125,288 |
|
Adjusted EBITDA7 |
|
$ |
191,793 |
|
|
$ |
195,133 |
|
|
$ |
57,314 |
|
|
$ |
444,240 |
|
|
$ |
1,280 |
|
|
$ |
445,520 |
|
Revenue |
|
|
1,150,658 |
|
|
|
1,077,206 |
|
|
|
417,588 |
|
|
|
2,645,452 |
|
|
|
- |
|
|
|
2,645,452 |
|
Adjusted EBITDA Margin7 |
|
|
16.7 |
% |
|
|
18.1 |
% |
|
|
13.7 |
% |
|
|
16.8 |
% |
|
NMP |
|
|
16.8 |
% |
Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with |
NMP = Non-meaningful percentage |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands (unaudited) |
Three Months Ended: |
Hygiene, Health
|
Engineering |
Construction |
|
Corporate |
H.B. Fuller |
|||||||||||||||||
September 2, 2023 |
Adhesives |
Adhesives |
Adhesives |
Total |
Unallocated |
Consolidated |
|||||||||||||||||
Net income attributable to H.B. Fuller |
$ |
54,568 |
|
$ |
54,256 |
|
$ |
7,764 |
|
$ |
116,588 |
|
$ |
(78,961 |
) |
$ |
37,627 |
|
|||||
Adjustments: |
|
|
|
|
|
|
|||||||||||||||||
Acquisition project costs1 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6,480 |
|
|
6,480 |
|
|||||
Organizational realignment2 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
10,421 |
|
|
10,421 |
|
|||||
Project One3 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,734 |
|
|
2,734 |
|
|||||
Other4 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
503 |
|
|
503 |
|
|||||
Discrete tax items5 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6,243 |
|
|
6,243 |
|
|||||
Income tax effect on adjustments6 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(4,875 |
) |
|
(4,875 |
) |
|||||
Adjusted net income attributable to H.B. Fuller7 |
|
54,568 |
|
|
54,256 |
|
|
7,764 |
|
|
116,588 |
|
|
(57,455 |
) |
|
59,133 |
|
|||||
Add: |
|
|
|
|
|
|
|||||||||||||||||
Interest expense |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
35,105 |
|
|
35,105 |
|
|||||
Interest income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,128 |
) |
|
(1,128 |
) |
|||||
Adjusted Income taxes |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
20,862 |
|
|
20,862 |
|
|||||
Depreciation and amortization expense8 |
|
14,604 |
|
|
16,467 |
|
|
10,755 |
|
|
41,826 |
|
|
- |
|
|
41,826 |
|
|||||
Adjusted EBITDA7 |
$ |
69,172 |
|
$ |
70,723 |
|
$ |
18,519 |
|
$ |
158,414 |
|
$ |
(2,616 |
) |
$ |
155,798 |
|
|||||
Revenue |
$ |
402,388 |
|
$ |
365,862 |
|
$ |
132,384 |
|
$ |
900,634 |
|
|
- |
|
$ |
900,634 |
|
|||||
Adjusted EBITDA Margin7 |
|
17.2 |
% |
|
19.3 |
% |
|
14.0 |
% |
|
17.6 |
% |
NMP |
|
17.3 |
% |
Nine Months Ended |
|
Hygiene, Health
|
|
Engineering |
|
Construction |
|
|
|
Corporate |
|
H.B. Fuller |
||||||||||||
September 2, 2023 |
|
Adhesives |
|
Adhesives |
|
Adhesives |
|
Total |
|
Unallocated |
|
Consolidated |
||||||||||||
Net income attributable to H.B. Fuller |
|
$ |
154,966 |
|
|
$ |
133,778 |
|
|
$ |
7,920 |
|
|
$ |
296,664 |
|
|
$ |
(196,748 |
) |
|
$ |
99,916 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisition project costs1 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11,634 |
|
|
|
11,634 |
|
Organizational realignment2 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
19,055 |
|
|
|
19,055 |
|
Project One3 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,587 |
|
|
|
7,587 |
|
Other4 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,098 |
|
|
|
4,098 |
|
Discrete tax items5 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,131 |
|
|
|
9,131 |
|
Income tax effect on adjustments6 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(9,447 |
) |
|
|
(9,447 |
) |
Adjusted net income attributable to H.B. Fuller7 |
|
|
154,966 |
|
|
|
133,778 |
|
|
|
7,920 |
|
|
|
296,664 |
|
|
|
(154,690 |
) |
|
|
141,974 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
98,615 |
|
|
|
98,615 |
|
Interest income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,726 |
) |
|
|
(2,726 |
) |
Adjusted Income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
51,569 |
|
|
|
51,569 |
|
Depreciation and amortization expense8 |
|
|
39,159 |
|
|
|
47,980 |
|
|
|
31,664 |
|
|
|
118,803 |
|
|
|
- |
|
|
|
118,803 |
|
Adjusted EBITDA7 |
|
$ |
194,125 |
|
|
$ |
181,758 |
|
|
$ |
39,584 |
|
|
$ |
415,467 |
|
|
$ |
(7,232 |
) |
|
$ |
408,235 |
|
Revenue |
|
$ |
1,190,402 |
|
|
$ |
1,063,009 |
|
|
$ |
354,644 |
|
|
$ |
2,608,055 |
|
|
|
- |
|
|
$ |
2,608,055 |
|
Adjusted EBITDA Margin7 |
|
|
16.3 |
% |
|
|
17.1 |
% |
|
|
11.2 |
% |
|
|
15.9 |
% |
|
NMP |
|
|
15.7 |
% |
Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with |
NMP = Non-meaningful percentage |
H.B. FULLER COMPANY AND SUBSIDIARIES |
SEGMENT FINANCIAL INFORMATION |
NET REVENUE GROWTH (DECLINE) |
(unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
August 31, 2024 |
|
August 31, 2024 |
||||
Price |
|
|
(2.6 |
)% |
|
|
(3.1 |
)% |
Volume |
|
|
3.0 |
% |
|
|
1.9 |
% |
Organic Growth13 |
|
|
0.4 |
% |
|
|
(1.2 |
)% |
M&A |
|
|
3.0 |
% |
|
|
3.9 |
% |
Constant currency |
|
|
3.4 |
% |
|
|
2.7 |
% |
F/X |
|
|
(1.5 |
)% |
|
|
(1.3 |
)% |
Total H.B. Fuller Net Revenue |
|
|
1.9 |
% |
|
|
1.4 |
% |
Revenue growth versus 2023 |
|
Three Months Ended |
||||||||||||||||||
|
|
August 31, 2024 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Net
|
|
F/X |
|
Constant
|
|
M&A |
|
Organic
|
||||||||||
Hygiene, Health and Consumable Adhesives |
|
|
(3.1 |
)% |
|
|
(2.6 |
)% |
|
|
(0.5 |
)% |
|
|
0.0 |
% |
|
|
(0.5 |
)% |
Engineering Adhesives |
|
|
2.5 |
% |
|
|
(0.8 |
)% |
|
|
3.3 |
% |
|
|
5.3 |
% |
|
|
(2.0 |
)% |
Construction Adhesives |
|
|
15.7 |
% |
|
|
(0.1 |
)% |
|
|
15.8 |
% |
|
|
5.6 |
% |
|
|
10.2 |
% |
Total H.B. Fuller |
|
|
1.9 |
% |
|
|
(1.5 |
)% |
|
|
3.4 |
% |
|
|
3.0 |
% |
|
|
0.4 |
% |
Revenue growth versus 2023 |
|
Nine Months Ended |
||||||||||||||||||
|
|
August 31, 2024 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Net
|
|
F/X |
|
Constant
|
|
M&A |
|
Organic
|
||||||||||
Hygiene, Health and Consumable Adhesives |
|
|
(3.3 |
)% |
|
|
(1.7 |
)% |
|
|
(1.6 |
)% |
|
|
3.2 |
% |
|
|
(4.8 |
)% |
Engineering Adhesives |
|
|
1.3 |
% |
|
|
(1.2 |
)% |
|
|
2.5 |
% |
|
|
3.2 |
% |
|
|
(0.7 |
)% |
Construction Adhesives |
|
|
17.7 |
% |
|
|
0.0 |
% |
|
|
17.7 |
% |
|
|
8.7 |
% |
|
|
9.0 |
% |
Total H.B. Fuller |
|
|
1.4 |
% |
|
|
(1.3 |
)% |
|
|
2.7 |
% |
|
|
3.9 |
% |
|
|
(1.2 |
)% |
13 We use the term “organic revenue” to refer to net revenue, excluding the effect of foreign currency changes and acquisitions and divestitures. Organic growth reflects adjustments for the impact of period-over-period changes in foreign currency exchange rates on revenues and the revenues associated with acquisitions and divestitures. |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands (unaudited) |
|
|
Three Months Ended |
|
Trailing Twelve Months16 Ended |
|
Year Ended |
||||||||||||||||||||||||||
|
|
September 2, 2023 |
|
December 2, 2023 |
|
March 2, 2024 |
|
June 1, 2024 |
|
August 31, 2024 |
|
August 31, 2024 |
|
June 1, 2024 |
|
December 2, 2023 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to H.B. Fuller |
|
$ |
37,627 |
|
|
$ |
44,991 |
|
|
$ |
30,991 |
|
|
$ |
51,264 |
|
|
$ |
55,361 |
|
|
$ |
182,607 |
|
|
$ |
164,873 |
|
|
$ |
144,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition project costs1 |
|
|
6,480 |
|
|
|
4,765 |
|
|
|
2,043 |
|
|
|
1,467 |
|
|
|
3,474 |
|
|
|
11,749 |
|
|
|
14,755 |
|
|
|
16,874 |
|
Organizational realignment2 |
|
|
10,421 |
|
|
|
10,549 |
|
|
|
7,262 |
|
|
|
7,275 |
|
|
|
9,471 |
|
|
|
34,557 |
|
|
|
35,507 |
|
|
|
29,900 |
|
Project One3 |
|
|
2,734 |
|
|
|
2,193 |
|
|
|
3,213 |
|
|
|
2,845 |
|
|
|
3,154 |
|
|
|
11,405 |
|
|
|
10,985 |
|
|
|
9,815 |
|
Other4 |
|
|
503 |
|
|
|
(3,903 |
) |
|
|
- |
|
|
|
914 |
|
|
|
(2,904 |
) |
|
|
(5,893 |
) |
|
|
(2,486 |
) |
|
|
(611 |
) |
Discrete tax items14 |
|
|
6,243 |
|
|
|
16,955 |
|
|
|
(2,527 |
) |
|
|
1,317 |
|
|
|
(2,937 |
) |
|
|
12,808 |
|
|
|
21,988 |
|
|
|
26,085 |
|
Income tax effect on adjustments5 |
|
|
(4,875 |
) |
|
|
(1,158 |
) |
|
|
(3,290 |
) |
|
|
(1,558 |
) |
|
|
(1,624 |
) |
|
|
(7,630 |
) |
|
|
(10,881 |
) |
|
|
(10,604 |
) |
Adjusted net income attributable to H.B. Fuller7 |
|
|
59,133 |
|
|
|
74,392 |
|
|
|
37,692 |
|
|
|
63,524 |
|
|
|
63,995 |
|
|
|
239,603 |
|
|
|
234,741 |
|
|
|
216,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
35,105 |
|
|
|
33,297 |
|
|
|
31,901 |
|
|
|
32,313 |
|
|
|
35,287 |
|
|
|
132,798 |
|
|
|
132,616 |
|
|
|
131,913 |
|
Interest income |
|
|
(1,128 |
) |
|
|
(1,217 |
) |
|
|
(1,307 |
) |
|
|
(1,197 |
) |
|
|
(1,090 |
) |
|
|
(4,811 |
) |
|
|
(4,849 |
) |
|
|
(3,943 |
) |
Adjusted Income taxes |
|
|
20,862 |
|
|
|
26,477 |
|
|
|
13,631 |
|
|
|
22,658 |
|
|
|
22,825 |
|
|
|
85,591 |
|
|
|
83,628 |
|
|
|
78,047 |
|
Depreciation and Amortization expense15 |
|
|
41,826 |
|
|
|
39,653 |
|
|
|
41,101 |
|
|
|
39,952 |
|
|
|
44,235 |
|
|
|
164,941 |
|
|
|
162,532 |
|
|
|
158,456 |
|
Adjusted EBITDA7 |
|
$ |
155,798 |
|
|
$ |
172,602 |
|
|
$ |
123,018 |
|
|
$ |
157,250 |
|
|
$ |
165,252 |
|
|
$ |
618,122 |
|
|
$ |
608,668 |
|
|
$ |
580,838 |
|
14 Discrete tax items for the three months ended September 2, 2024 are related to various |
15 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller. Depreciation and amortization expense added back was |
16 Trailing twelve months adjusted EBITDA is a non-GAAP financial measure and is defined as adjusted EBITDA for the twelve-month period ended on the date presented. The table above provides a reconciliation of trailing twelve month adjusted EBITDA to net income attributable to H.B. Fuller for the trailing twelve-month period presented, the most directly comparable financial measure determined and reported in accordance with |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands (unaudited) |
|
|
June 1, 2024 |
|
August 31,
|
|
December 2,
|
|
September 2,
|
||||
Total debt |
|
$ |
2,024,916 |
|
$ |
2,021,070 |
|
$ |
1,838,431 |
|
$ |
1,885,021 |
Less: Cash and cash equivalents |
|
|
114,823 |
|
|
131,412 |
|
|
179,453 |
|
|
94,934 |
Net debt17 |
|
$ |
1,910,093 |
|
$ |
1,889,658 |
|
$ |
1,658,978 |
|
$ |
1,790,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing twelve months Adjusted EBITDA16 |
|
$ |
608,668 |
|
$ |
618,122 |
|
|
580,838 |
|
|
|
Net Debt-to-Adjusted EBITDA17 |
|
|
3.1 |
|
|
3.1 |
|
|
2.9 |
|
|
|
17 Net debt and net debt-to-adjusted EBITDA are non-GAAP financial measures. Net debt is defined as total debt less cash and cash equivalents. Net debt-to-adjusted EBITDA is defined as net debt divided by trailing twelve months adjusted EBITDA. The calculations of these non-GAAP financial measures are shown in the table above. The table above provides a reconciliation of each of these non-GAAP financial measures to total debt, the most directly comparable financial measure determined and reported in accordance with |
H.B. FULLER COMPANY AND SUBSIDIARIES |
REGULATION G RECONCILIATION |
In thousands (unaudited) |
|
|
August 31,
|
|
September 2,
|
|
December 2,
|
|||||
Trade receivables, net |
|
$ |
574,781 |
|
|
$ |
576,060 |
|
|
$ |
577,932 |
Inventory |
|
|
509,029 |
|
|
|
472,641 |
|
|
|
442,040 |
Trade payables |
|
|
493,550 |
|
|
|
394,914 |
|
|
|
439,700 |
Net working capital18 |
|
$ |
590,260 |
|
|
$ |
653,787 |
|
|
$ |
580,272 |
|
|
|
|
|
|
|
|
|
|
||
Net revenue three months ended |
|
$ |
917,927 |
|
|
$ |
900,634 |
|
|
|
|
Annualized net revenue18 |
|
|
3,671,708 |
|
|
|
3,602,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net working capital as a percentage of annualized revenue18 |
|
|
16.1 |
% |
|
|
18.1 |
% |
|
|
|
18 Net working capital, annualized net revenue and net working capital as a percentage of annualized net revenue are non-GAAP financial measures. Net working capital is defined as trade receivables, net plus inventory less trade payables. Annualized net revenue is defined as net revenue for the three months ended on the date presented multiplied by four. Net working capital as a percentage of annualized net revenue is net working capital divided by annualized net revenue. The calculations of these non-GAAP financial measures are shown in the table above. The table above provides a reconciliation of each of these non-GAAP financial measures to the most directly comparable financial measure determined and reported in accordance with |
CONSOLIDATED BALANCE SHEETS |
H.B. Fuller Company and Subsidiaries |
(In thousands, except share and per share amounts) |
|
|
August 31, |
|
December 2, |
||||
|
|
2024 |
|
2023 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
131,412 |
|
|
$ |
179,453 |
|
Trade receivables (net of allowances of |
|
|
574,781 |
|
|
|
577,932 |
|
Inventories |
|
|
509,029 |
|
|
|
442,040 |
|
Other current assets |
|
|
115,070 |
|
|
|
112,678 |
|
Total current assets |
|
|
1,330,292 |
|
|
|
1,312,103 |
|
|
|
|
|
|
|
|
||
Property, plant and equipment |
|
|
1,855,203 |
|
|
|
1,755,035 |
|
Accumulated depreciation |
|
|
(993,884 |
) |
|
|
(930,380 |
) |
Property, plant and equipment, net |
|
|
861,319 |
|
|
|
824,655 |
|
|
|
|
|
|
|
|
||
Goodwill |
|
|
1,591,709 |
|
|
|
1,486,512 |
|
Other intangibles, net |
|
|
806,148 |
|
|
|
729,140 |
|
Other assets |
|
|
388,777 |
|
|
|
371,165 |
|
Total assets |
|
$ |
4,978,245 |
|
|
$ |
4,723,575 |
|
|
|
|
|
|
|
|
||
Liabilities, non-controlling interest and total equity |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Notes payable |
|
$ |
797 |
|
|
$ |
1,841 |
|
Trade payables |
|
|
493,550 |
|
|
|
439,700 |
|
Accrued compensation |
|
|
83,861 |
|
|
|
95,680 |
|
Income taxes payable |
|
|
39,244 |
|
|
|
47,688 |
|
Other accrued expenses |
|
|
87,495 |
|
|
|
107,902 |
|
Total current liabilities |
|
|
704,947 |
|
|
|
692,811 |
|
|
|
|
|
|
|
|
||
Long-term debt |
|
|
2,020,273 |
|
|
|
1,836,590 |
|
Accrued pension liabilities |
|
|
51,739 |
|
|
|
50,189 |
|
Other liabilities |
|
|
359,565 |
|
|
|
388,072 |
|
Total liabilities |
|
$ |
3,136,524 |
|
|
$ |
2,967,662 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies (Note 13) |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
H.B. Fuller stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock (no shares outstanding) shares authorized – 10,045,900 |
|
|
- |
|
|
|
- |
|
Common stock, par value |
|
$ |
54,613 |
|
|
$ |
54,093 |
|
Additional paid-in capital |
|
|
316,324 |
|
|
|
301,485 |
|
Retained earnings |
|
|
1,944,380 |
|
|
|
1,842,507 |
|
Accumulated other comprehensive loss |
|
|
(474,326 |
) |
|
|
(442,880 |
) |
Total H.B. Fuller stockholders' equity |
|
|
1,840,991 |
|
|
|
1,755,205 |
|
Non-controlling interest |
|
|
730 |
|
|
|
708 |
|
Total equity |
|
|
1,841,721 |
|
|
|
1,755,913 |
|
Total liabilities, non-controlling interest and total equity |
|
$ |
4,978,245 |
|
|
$ |
4,723,575 |
|
CONSOLIDATED STATEMENTS of CASH FLOWS |
H.B. Fuller Company and Subsidiaries |
(In thousands) |
|
|
Nine Months Ended |
||||||
|
|
August 31, 2024 |
|
September 2, 2023 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income including non-controlling interest |
|
$ |
137,647 |
|
|
$ |
99,987 |
|
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
66,990 |
|
|
|
60,518 |
|
Amortization |
|
|
61,723 |
|
|
|
58,633 |
|
Deferred income taxes |
|
|
(45,998 |
) |
|
|
(30,064 |
) |
(Income) loss from equity method investments, net of dividends received |
|
|
622 |
|
|
|
260 |
|
Gain from Insurance Proceeds |
|
|
(7,264 |
) |
|
|
- |
|
Equity Investment Impairment Loss |
|
|
1,966 |
|
|
|
- |
|
Debt issuance costs write-off |
|
|
- |
|
|
|
2,689 |
|
Loss on fair value adjustment on contingent consideration liability |
|
|
- |
|
|
|
2,893 |
|
Gain on sale or disposal of assets |
|
|
(501 |
) |
|
|
(78 |
) |
Share-based compensation |
|
|
17,662 |
|
|
|
16,279 |
|
Pension and other post-retirement benefit plan activity |
|
|
(6,671 |
) |
|
|
(8,890 |
) |
Change in assets and liabilities, net of effects of acquisitions: |
|
|
|
|
|
|
||
Trade receivables, net |
|
|
26,373 |
|
|
|
79,495 |
|
Inventories |
|
|
(62,206 |
) |
|
|
38,212 |
|
Other assets |
|
|
(39,025 |
) |
|
|
(30,901 |
) |
Trade payables |
|
|
49,705 |
|
|
|
(74,443 |
) |
Accrued compensation |
|
|
(11,566 |
) |
|
|
(33,796 |
) |
Other accrued expenses |
|
|
(5,244 |
) |
|
|
(6,992 |
) |
Income taxes payable |
|
|
(17,873 |
) |
|
|
24,461 |
|
Other liabilities |
|
|
856 |
|
|
|
12,408 |
|
Other |
|
|
49,591 |
|
|
|
6,023 |
|
Net cash provided by operating activities |
|
|
216,787 |
|
|
|
216,694 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchased property, plant and equipment |
|
|
(112,799 |
) |
|
|
(109,545 |
) |
Purchased businesses, net of cash acquired |
|
|
(274,067 |
) |
|
|
(194,248 |
) |
Proceeds from sale of property, plant and equipment |
|
|
1,048 |
|
|
|
4,257 |
|
Net cash used in investing activities |
|
|
(385,818 |
) |
|
|
(299,536 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from issuance of long-term debt |
|
|
1,732,900 |
|
|
|
1,333,000 |
|
Repayment of long-term debt |
|
|
(1,556,135 |
) |
|
|
(1,184,900 |
) |
Payment of debt issuance costs |
|
|
(3,493 |
) |
|
|
(10,214 |
) |
Net payment of notes payable |
|
|
(1,014 |
) |
|
|
(18,000 |
) |
Dividends paid |
|
|
(35,440 |
) |
|
|
(32,319 |
) |
Proceeds from stock options exercised |
|
|
34,161 |
|
|
|
11,251 |
|
Repurchases of common stock |
|
|
(39,371 |
) |
|
|
(2,560 |
) |
Net cash provided by financing activities |
|
|
131,608 |
|
|
|
96,258 |
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
(10,618 |
) |
|
|
1,608 |
|
Net change in cash and cash equivalents |
|
|
(48,041 |
) |
|
|
15,024 |
|
Cash and cash equivalents at beginning of period |
|
|
179,453 |
|
|
|
79,910 |
|
Cash and cash equivalents at end of period |
|
$ |
131,412 |
|
|
$ |
94,934 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240925304542/en/
Steven Brazones
Investor Relations Contact
651-236-5060
Source: H.B. Fuller Company
FAQ
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