Graco Reports Record Fourth Quarter and Annual Sales and Operating Earnings
- 2% increase in net sales for the fourth quarter
- 11% increase in operating earnings
- 10% increase in adjusted net earnings per common share
- 4 percentage points increase in gross profit margin rate
- Record fourth-quarter and annual sales and operating earnings
- None.
Insights
The reported 2% sales growth for Graco Inc. in the fourth quarter suggests a stable demand for the company's products despite the macroeconomic uncertainties. The growth across all segments indicates a robust product portfolio that caters to a diverse range of industries. The increase in operating earnings by 11% and a gross profit margin rate improvement of approximately 4 percentage points are particularly noteworthy. These improvements could be attributed to effective pricing strategies and cost management, which are essential for maintaining profitability in a competitive environment.
However, the decline in net earnings by 13% and a 14% decrease in diluted net earnings per share raise concerns about the company's net profitability. Investors might want to delve deeper into the factors contributing to this decline, such as the non-cash pension settlement loss. The mixed financial outcomes underscore the importance of analyzing both top-line revenue growth and bottom-line profitability when assessing the company's financial health.
Analyzing Graco Inc.'s financial results reveals a complex picture. While the company has successfully increased its net sales and operating earnings, the non-operating expenses, including a significant pension settlement loss, have adversely affected net earnings. This highlights the impact of non-operational financial decisions on the overall earnings performance. The flat interest expense and decreased interest expense year-over-year following the repayment of private placement debt is a positive sign, indicating a strengthened balance sheet and potentially lower financial risk going forward.
Furthermore, the report indicates a strategic approach to growth, with a focus on new product development and expansion into new markets. The company's forward-looking statements about low single-digit revenue guidance for 2024 reflect cautious optimism in the face of economic uncertainty. Investors might consider these projections in their expectations for future performance.
The financial results of Graco Inc. provide insights into broader economic trends. The increase in sales in the Americas and EMEA, despite flat translation rates, suggests resilience in these markets. Conversely, the decrease in sales in the Asia Pacific region indicates potential market softness or geopolitical challenges impacting demand. The data also reflects the influence of currency translation rates on international sales, a critical factor for companies with global operations.
The company's ability to improve gross profit margins through pricing and lower product costs may be indicative of effective supply chain management and pricing power in the market. However, the increased total operating expenses, particularly in product development and growth initiatives, suggest an investment in future growth at the expense of current operating margins. This strategy could yield long-term benefits but may also introduce short-term earnings volatility.
Fourth Quarter Sales Growth in All Segments
Summary |
|||||||||||||||||
$ in millions except per share amounts |
|||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
|
Dec 29,
|
|
Dec 30,
|
|
%
|
|
Dec 29,
|
|
Dec 30,
|
|
%
|
||||||
Net Sales |
$ |
566.6 |
|
$ |
555.0 |
|
2 |
% |
|
$ |
2,195.6 |
|
$ |
2,143.5 |
|
2 |
% |
Operating Earnings |
|
169.9 |
|
|
152.5 |
|
11 |
% |
|
|
646.8 |
|
|
572.7 |
|
13 |
% |
Net Earnings |
|
110.0 |
|
|
126.2 |
|
(13 |
)% |
|
|
506.5 |
|
|
460.6 |
|
10 |
% |
Diluted Net Earnings per Common Share |
$ |
0.64 |
|
$ |
0.74 |
|
(14 |
)% |
|
$ |
2.94 |
|
$ |
2.66 |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted (non-GAAP): (1) |
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Earnings, adjusted |
$ |
169.9 |
|
$ |
152.5 |
|
11 |
% |
|
$ |
646.0 |
|
$ |
572.7 |
|
13 |
% |
Net Earnings, adjusted |
$ |
137.1 |
|
$ |
124.3 |
|
10 |
% |
|
$ |
523.9 |
|
$ |
455.5 |
|
15 |
% |
Diluted Net Earnings per Common Share, adjusted |
$ |
0.80 |
|
$ |
0.73 |
|
10 |
% |
|
$ |
3.04 |
|
$ |
2.63 |
|
16 |
% |
(1) |
Excludes the impact of a pension settlement loss, contingent consideration fair value adjustment, impairment charge, excess tax benefits from stock option exercises and certain non-recurring tax provision adjustments. See Financial Results Adjusted for Comparability below for a reconciliation of adjusted non-GAAP financial measures to GAAP. |
- Net sales increased 2 percent for the fourth quarter with sales growth in all segments.
- The gross profit margin rate for the quarter was approximately 4 percentage points higher than the comparable period last year due to realized pricing and lower product costs.
- Total operating expenses increased 8 percent for the quarter.
- Operating earnings expressed as a percentage of sales for the quarter increased 3 percentage points to 30 percent.
-
Other non-operating expenses for the quarter included a non-cash pension settlement loss of
$42 million
"Graco reported record fourth quarter and annual sales and operating earnings with sales growth in all segments for the quarter," said Mark Sheahan, Graco's President and CEO. "The Industrial and Process segments achieved record annual sales and operating earnings while Contractor achieved record operating earnings for the year despite a challenging environment. The Contractor segment saw fourth quarter sales growth driven by new product introductions and continued strength in both the protective coatings and spray foam product categories. I am proud of the work our teams have done and want to thank our employees, customers and vendors for another great year."
Consolidated Results
Net sales for the quarter increased 2 percent from the comparable period last year (1 percent at consistent translation rates). Sales increased 3 percent in the
Gross profit margin rates increased approximately 4 percentage points for the quarter and year due to realized pricing. The impact of lower product costs further increased the gross profit margin rate in the quarter from the comparable period last year.
Total operating expenses for the fourth quarter increased
Interest expense was flat for the quarter and decreased
Other non-operating expenses for the quarter and year included a non-cash pension settlement loss of
The effective income tax rate was 14 percent for the quarter and 17 percent for the year. Adjusted to exclude certain non-recurring items (see Financial Results Adjusted for Comparability below), the adjusted effective income tax rate was 19 percent for the quarter and year.
Segment Results
Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses. For a reconciliation of segment operating earnings to consolidated operating earnings, refer to the segment information table included in the financial statement section of this release. Certain measurements of segment operations are summarized below:
|
Three Months |
|
Twelve Months |
||||||||||||||||||||
|
Contractor |
|
Industrial |
|
Process |
|
Contractor |
|
Industrial |
|
Process |
||||||||||||
Net Sales (in millions) |
$ |
238.8 |
|
|
$ |
192.0 |
|
|
$ |
135.9 |
|
|
$ |
985.7 |
|
|
$ |
662.8 |
|
|
$ |
547.1 |
|
Percentage change from last year |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales |
|
2 |
% |
|
|
1 |
% |
|
|
4 |
% |
|
|
(1 |
)% |
|
|
2 |
% |
|
|
11 |
% |
Operating earnings |
|
20 |
% |
|
|
2 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
1 |
% |
|
|
35 |
% |
Operating earnings as a percentage of sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2023 |
|
29 |
% |
|
|
37 |
% |
|
|
28 |
% |
|
|
29 |
% |
|
|
35 |
% |
|
|
30 |
% |
2022 |
|
25 |
% |
|
|
37 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
36 |
% |
|
|
25 |
% |
Components of net sales change by geographic region for the Contractor segment were as follows:
|
Three Months |
|
Twelve Months |
||||||||||||||||||||
|
Volume
|
|
Acquisitions |
|
Currency |
|
Total |
|
Volume
|
|
Acquisitions |
|
Currency |
|
Total |
||||||||
|
0 |
% |
|
0 |
% |
|
0 |
% |
|
0 |
% |
|
(1 |
)% |
|
0 |
% |
|
0 |
% |
|
(1 |
)% |
EMEA |
3 |
% |
|
0 |
% |
|
5 |
% |
|
8 |
% |
|
(1 |
)% |
|
0 |
% |
|
2 |
% |
|
1 |
% |
|
5 |
% |
|
0 |
% |
|
(1 |
)% |
|
4 |
% |
|
(5 |
)% |
|
0 |
% |
|
(4 |
)% |
|
(9 |
)% |
Consolidated |
1 |
% |
|
0 |
% |
|
1 |
% |
|
2 |
% |
|
(1 |
)% |
|
0 |
% |
|
0 |
% |
|
(1 |
)% |
Contractor segment sales increased 2 percent for the quarter and decreased 1 percent for the year. Favorable response to new product offerings was offset for the quarter and year by slower economic activity in worldwide construction markets. The operating margin rate for this segment improved 4 percentage points for both the quarter and year. Lower product costs and realized pricing combined to drive the operating margin rate higher for the quarter. Realized pricing drove most of the improvement in the operating margin rate for the year.
Components of net sales change by geographic region for the Industrial segment were as follows:
|
Three Months |
|
Twelve Months |
||||||||||||||||||||
|
Volume
|
|
Acquisitions |
|
Currency |
|
Total |
|
Volume
|
|
Acquisitions |
|
Currency |
|
Total |
||||||||
|
14 |
% |
|
0 |
% |
|
1 |
% |
|
15 |
% |
|
10 |
% |
|
0 |
% |
|
0 |
% |
|
10 |
% |
EMEA |
(5 |
)% |
|
0 |
% |
|
5 |
% |
|
0 |
% |
|
(2 |
)% |
|
0 |
% |
|
3 |
% |
|
1 |
% |
|
(13 |
)% |
|
0 |
% |
|
0 |
% |
|
(13 |
)% |
|
(3 |
)% |
|
0 |
% |
|
(3 |
)% |
|
(6 |
)% |
Consolidated |
(1 |
)% |
|
0 |
% |
|
2 |
% |
|
1 |
% |
|
2 |
% |
|
0 |
% |
|
0 |
% |
|
2 |
% |
Industrial segment sales increased 1 percent for the quarter and 2 percent for the year as continued end market strength in the
Components of net sales change by geographic region for the Process segment were as follows:
|
Three Months |
|
Twelve Months |
||||||||||||||||||||
|
Volume
|
|
Acquisitions |
|
Currency |
|
Total |
|
Volume
|
|
Acquisitions |
|
Currency |
|
Total |
||||||||
|
1 |
% |
|
0 |
% |
|
0 |
% |
|
1 |
% |
|
13 |
% |
|
0 |
% |
|
0 |
% |
|
13 |
% |
EMEA |
10 |
% |
|
0 |
% |
|
3 |
% |
|
13 |
% |
|
10 |
% |
|
0 |
% |
|
1 |
% |
|
11 |
% |
|
7 |
% |
|
0 |
% |
|
0 |
% |
|
7 |
% |
|
5 |
% |
|
0 |
% |
|
(2 |
)% |
|
3 |
% |
Consolidated |
4 |
% |
|
0 |
% |
|
0 |
% |
|
4 |
% |
|
11 |
% |
|
0 |
% |
|
0 |
% |
|
11 |
% |
Process segment sales increased in all businesses and regions for the quarter and year. The operating margin rate for this segment increased 3 percentage points for the quarter, primarily due to realized pricing and lower product costs. Expense leverage drove an additional 2 percentage point increase in the operating margin rate for the year.
Outlook
“As we head into a new year, the business is performing well, and demand levels generally remain steady in an uncertain macroeconomic environment,” said Sheahan. "We are initiating full-year 2024 revenue guidance of low single-digits on an organic, constant currency basis as we will continue to focus on our core strategies of new product development, expanding distribution, entering new markets and targeting strategic acquisitions to drive shareholder value.”
Financial Results Adjusted for Comparability
Excluding the impact of pension settlement losses, contingent consideration fair value adjustments, impairment charges, excess tax benefits from stock option exercises and certain non-recurring tax provision adjustments presents a more consistent basis for comparison of financial results. A calculation of the non-GAAP adjusted measurements of operating earnings, earnings before income taxes, income taxes, effective income tax rates, net earnings and diluted earnings per share follows (in millions except per share amounts):
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
Dec 29,
|
|
Dec 30,
|
|
Dec 29,
|
|
Dec 30,
|
||||||||
Operating earnings, as reported |
$ |
169.9 |
|
|
$ |
152.5 |
|
|
$ |
646.8 |
|
|
$ |
572.7 |
|
Contingent consideration |
|
— |
|
|
|
— |
|
|
|
(8.6 |
) |
|
|
— |
|
Impairment |
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
|
— |
|
Operating earnings, adjusted |
$ |
169.9 |
|
|
$ |
152.5 |
|
|
$ |
646.0 |
|
|
$ |
572.7 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
$ |
127.6 |
|
|
$ |
154.0 |
|
|
$ |
608.8 |
|
|
$ |
565.7 |
|
Pension settlement loss |
|
42.1 |
|
|
|
— |
|
|
|
42.1 |
|
|
|
— |
|
Contingent consideration |
|
— |
|
|
|
— |
|
|
|
(8.6 |
) |
|
|
— |
|
Impairment |
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
|
— |
|
Earnings before income taxes, adjusted |
$ |
169.7 |
|
|
$ |
154.0 |
|
|
$ |
650.1 |
|
|
$ |
565.7 |
|
|
|
|
|
|
|
|
|
||||||||
Income taxes, as reported |
$ |
17.6 |
|
|
$ |
27.8 |
|
|
$ |
102.3 |
|
|
$ |
105.1 |
|
Pension settlement tax effect |
|
8.8 |
|
|
|
— |
|
|
|
8.8 |
|
|
|
— |
|
Other non-recurring tax benefit |
|
4.8 |
|
|
|
— |
|
|
|
4.8 |
|
|
|
— |
|
Excess tax benefit from option exercises |
|
1.4 |
|
|
|
1.9 |
|
|
|
10.3 |
|
|
|
5.1 |
|
Income taxes, adjusted |
$ |
32.6 |
|
|
$ |
29.7 |
|
|
$ |
126.2 |
|
|
$ |
110.2 |
|
|
|
|
|
|
|
|
|
||||||||
Effective income tax rate |
|
|
|
|
|
|
|
||||||||
As reported |
|
13.8 |
% |
|
|
18.1 |
% |
|
|
16.8 |
% |
|
|
18.6 |
% |
Adjusted |
|
19.2 |
% |
|
|
19.3 |
% |
|
|
19.4 |
% |
|
|
19.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Net Earnings, as reported |
$ |
110.0 |
|
|
$ |
126.2 |
|
|
$ |
506.5 |
|
|
$ |
460.6 |
|
Pension settlement loss, net |
|
33.3 |
|
|
|
— |
|
|
|
33.3 |
|
|
|
— |
|
Contingent consideration |
|
— |
|
|
|
— |
|
|
|
(8.6 |
) |
|
|
— |
|
Impairment |
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
|
— |
|
Other non-recurring tax benefit |
|
(4.8 |
) |
|
|
— |
|
|
|
(4.8 |
) |
|
|
— |
|
Excess tax benefit from option exercises |
|
(1.4 |
) |
|
|
(1.9 |
) |
|
|
(10.3 |
) |
|
|
(5.1 |
) |
Net Earnings, adjusted |
$ |
137.1 |
|
|
$ |
124.3 |
|
|
$ |
523.9 |
|
|
$ |
455.5 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Diluted Shares |
|
171.8 |
|
|
|
171.4 |
|
|
|
172.2 |
|
|
|
172.9 |
|
Diluted Earnings per Share |
|
|
|
|
|
|
|
||||||||
As reported |
$ |
0.64 |
|
|
$ |
0.74 |
|
|
$ |
2.94 |
|
|
$ |
2.66 |
|
Adjusted |
$ |
0.80 |
|
|
$ |
0.73 |
|
|
$ |
3.04 |
|
|
$ |
2.63 |
|
Cautionary Statement Regarding Forward-Looking Statements
The Company desires to take advantage of the “safe harbor” provisions regarding forward-looking statements of the Private Securities Litigation Reform Act of 1995 and is filing this Cautionary Statement in order to do so. From time to time various forms filed by our Company with the Securities and Exchange Commission, including our Form 10-K, Form 10-Qs and Form 8-Ks, and other disclosures, including our overview report, press releases, earnings releases, analyst briefings, conference calls and other written documents or oral statements released by our Company, may contain forward-looking statements. Forward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “should,” “estimate,” “will,” and similar expressions, and reflect our Company’s expectations concerning the future. All forecasts and projections are forward-looking statements. Forward-looking statements are based upon currently available information, but various risks and uncertainties may cause our Company’s actual results to differ materially from those expressed in these statements. The Company undertakes no obligation to update these statements in light of new information or future events.
Future results could differ materially from those expressed due to the impact of changes in various factors. These risk factors include, but are not limited to: the impact of a public heath crisis, such as an epidemic or pandemic, on our business; political instability, including
Investors should realize that factors other than those identified above and in Item 1A of our Annual Report on Form 10-K for fiscal year 2022 might prove important to the Company’s future results. It is not possible for management to identify each and every factor that may have an impact on the Company’s operations in the future as new factors can develop from time to time.
Conference Call
Graco management will hold a conference call, including slides via webcast, with analysts and institutional investors on Tuesday, January 30, 2024, at 11 a.m. ET, 10 a.m. CT, to discuss Graco’s fourth quarter results.
A real-time listen-only webcast of the conference call will be broadcast by Nasdaq. Individuals can access the call and view the slides on the Company’s website at www.graco.com. Listeners should go to the website at least 15 minutes prior to the live conference call to install any necessary audio software.
About Graco
Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties,
GRACO INC. AND SUBSIDIARIES |
||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) |
||||||||||||||
(In thousands except per share amounts) |
||||||||||||||
|
|
|
|
|||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||
|
Dec 29,
|
|
Dec 30,
|
|
Dec 29,
|
|
Dec 30,
|
|||||||
Net Sales |
$ |
566,643 |
|
$ |
555,045 |
|
|
$ |
2,195,606 |
|
|
$ |
2,143,521 |
|
Cost of products sold |
|
266,701 |
|
|
282,229 |
|
|
|
1,034,585 |
|
|
|
1,086,082 |
|
Gross Profit |
|
299,942 |
|
|
272,816 |
|
|
|
1,161,021 |
|
|
|
1,057,439 |
|
Product development |
|
21,240 |
|
|
21,259 |
|
|
|
82,822 |
|
|
|
80,008 |
|
Selling, marketing and distribution |
|
66,455 |
|
|
64,491 |
|
|
|
260,712 |
|
|
|
250,948 |
|
General and administrative |
|
42,313 |
|
|
34,558 |
|
|
|
171,444 |
|
|
|
153,783 |
|
Contingent consideration |
|
— |
|
|
— |
|
|
|
(8,600 |
) |
|
|
— |
|
Impairment |
|
— |
|
|
— |
|
|
|
7,800 |
|
|
|
— |
|
Operating Earnings |
|
169,934 |
|
|
152,508 |
|
|
|
646,843 |
|
|
|
572,700 |
|
Interest expense |
|
656 |
|
|
1,342 |
|
|
|
5,191 |
|
|
|
9,897 |
|
Other (income) expense, net |
|
41,728 |
|
|
(2,815 |
) |
|
|
32,850 |
|
|
|
(2,921 |
) |
Earnings Before Income Taxes |
|
127,550 |
|
|
153,981 |
|
|
|
608,802 |
|
|
|
565,724 |
|
Income taxes |
|
17,598 |
|
|
27,789 |
|
|
|
102,291 |
|
|
|
105,079 |
|
Net Earnings |
$ |
109,952 |
|
$ |
126,192 |
|
|
$ |
506,511 |
|
|
$ |
460,645 |
|
Net Earnings per Common Share |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.65 |
|
$ |
0.75 |
|
|
$ |
3.01 |
|
|
$ |
2.73 |
|
Diluted |
$ |
0.64 |
|
$ |
0.74 |
|
|
$ |
2.94 |
|
|
$ |
2.66 |
|
Weighted Average Number of Shares |
|
|
|
|
|
|
|
|||||||
Basic |
|
168,061 |
|
|
167,706 |
|
|
|
168,442 |
|
|
|
168,952 |
|
Diluted |
|
171,788 |
|
|
171,406 |
|
|
|
172,199 |
|
|
|
172,893 |
|
SEGMENT INFORMATION (Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
Dec 29,
|
|
Dec 30,
|
|
Dec 29,
|
|
Dec 30,
|
||||||||
Net Sales |
|
|
|
|
|
|
|
||||||||
Contractor |
$ |
238,789 |
|
|
$ |
234,643 |
|
|
$ |
985,675 |
|
|
$ |
999,060 |
|
Industrial |
|
191,985 |
|
|
|
190,171 |
|
|
|
662,785 |
|
|
|
649,347 |
|
Process |
|
135,869 |
|
|
|
130,231 |
|
|
|
547,146 |
|
|
|
495,114 |
|
Total |
$ |
566,643 |
|
|
$ |
555,045 |
|
|
$ |
2,195,606 |
|
|
$ |
2,143,521 |
|
Operating Earnings |
|
|
|
|
|
|
|
||||||||
Contractor |
$ |
69,243 |
|
|
$ |
57,519 |
|
|
$ |
285,394 |
|
|
$ |
249,833 |
|
Industrial |
|
71,098 |
|
|
|
69,503 |
|
|
|
234,054 |
|
|
|
231,298 |
|
Process |
|
38,086 |
|
|
|
33,161 |
|
|
|
165,273 |
|
|
|
122,344 |
|
Unallocated corporate (expense) |
|
(8,493 |
) |
|
|
(7,675 |
) |
|
|
(38,678 |
) |
|
|
(30,775 |
) |
Contingent consideration |
|
— |
|
|
|
— |
|
|
|
8,600 |
|
|
|
— |
|
Impairment |
|
— |
|
|
|
— |
|
|
|
(7,800 |
) |
|
|
— |
|
Total |
$ |
169,934 |
|
|
$ |
152,508 |
|
|
$ |
646,843 |
|
|
$ |
572,700 |
|
GRACO INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||
(In thousands) |
|||||||
|
|
|
|
||||
|
Dec 29,
|
|
Dec 30,
|
||||
ASSETS |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
537,951 |
|
|
$ |
339,196 |
|
Accounts receivable, less allowances of |
|
354,439 |
|
|
|
346,010 |
|
Inventories |
|
438,349 |
|
|
|
476,790 |
|
Other current assets |
|
35,070 |
|
|
|
43,624 |
|
Total current assets |
|
1,365,809 |
|
|
|
1,205,620 |
|
Property, Plant and Equipment, net |
|
741,713 |
|
|
|
607,609 |
|
Goodwill |
|
370,228 |
|
|
|
368,171 |
|
Other Intangible Assets, net |
|
126,258 |
|
|
|
137,507 |
|
Operating Lease Assets |
|
18,768 |
|
|
|
29,785 |
|
Deferred Income Taxes |
|
61,381 |
|
|
|
57,090 |
|
Other Assets |
|
37,850 |
|
|
|
33,118 |
|
Total Assets |
$ |
2,722,007 |
|
|
$ |
2,438,900 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Notes payable to banks |
$ |
30,036 |
|
|
$ |
20,974 |
|
Trade accounts payable |
|
72,214 |
|
|
|
84,218 |
|
Salaries and incentives |
|
64,802 |
|
|
|
63,969 |
|
Dividends payable |
|
42,789 |
|
|
|
39,963 |
|
Other current liabilities |
|
185,359 |
|
|
|
190,793 |
|
Total current liabilities |
|
395,200 |
|
|
|
399,917 |
|
Long-term Debt |
|
— |
|
|
|
75,000 |
|
Retirement Benefits and Deferred Compensation |
|
80,347 |
|
|
|
61,672 |
|
Operating Lease Liabilities |
|
11,785 |
|
|
|
21,057 |
|
Deferred Income Taxes |
|
8,215 |
|
|
|
9,443 |
|
Other Non-current Liabilities |
|
2,235 |
|
|
|
12,159 |
|
Shareholders’ Equity |
|
|
|
||||
Common stock |
|
167,946 |
|
|
|
167,702 |
|
Additional paid-in-capital |
|
863,336 |
|
|
|
784,477 |
|
Retained earnings |
|
1,227,938 |
|
|
|
976,851 |
|
Accumulated other comprehensive income (loss) |
|
(34,995 |
) |
|
|
(69,378 |
) |
Total shareholders’ equity |
|
2,224,225 |
|
|
|
1,859,652 |
|
Total Liabilities and Shareholders’ Equity |
$ |
2,722,007 |
|
|
$ |
2,438,900 |
|
GRACO INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
(In thousands) |
|||||||
|
Year Ended |
||||||
|
Dec 29,
|
|
Dec 30,
|
||||
Cash Flows From Operating Activities |
|
|
|
||||
Net Earnings |
$ |
506,511 |
|
|
$ |
460,645 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities |
|
|
|
||||
Depreciation and amortization |
|
74,321 |
|
|
|
65,997 |
|
Deferred income taxes |
|
(8,502 |
) |
|
|
(9,997 |
) |
Share-based compensation |
|
30,229 |
|
|
|
24,695 |
|
Pension settlement loss |
|
42,129 |
|
|
|
— |
|
Contingent consideration |
|
(8,600 |
) |
|
|
— |
|
Impairment |
|
7,800 |
|
|
|
— |
|
Change in |
|
|
|
||||
Accounts receivable |
|
(3,245 |
) |
|
|
(29,944 |
) |
Inventories |
|
42,716 |
|
|
|
(95,691 |
) |
Trade accounts payable |
|
(12,348 |
) |
|
|
4,195 |
|
Salaries and incentives |
|
(2,158 |
) |
|
|
(18,442 |
) |
Retirement benefits and deferred compensation |
|
(13,661 |
) |
|
|
(18,674 |
) |
Other accrued liabilities |
|
(5,269 |
) |
|
|
(4,191 |
) |
Other |
|
1,094 |
|
|
|
(1,199 |
) |
Net cash provided by operating activities |
|
651,017 |
|
|
|
377,394 |
|
Cash Flows From Investing Activities |
|
|
|
||||
Property, plant and equipment additions |
|
(184,775 |
) |
|
|
(201,161 |
) |
Acquisition of businesses, net of cash acquired |
|
— |
|
|
|
(25,296 |
) |
Other |
|
(499 |
) |
|
|
(362 |
) |
Net cash used in investing activities |
|
(185,274 |
) |
|
|
(226,819 |
) |
Cash Flows From Financing Activities |
|
|
|
||||
Borrowings on short-term lines of credit, net |
|
9,725 |
|
|
|
(18,252 |
) |
Payments on long-term debt |
|
(75,000 |
) |
|
|
(75,000 |
) |
Payments of debt issuance costs |
|
(1,025 |
) |
|
|
— |
|
Common stock issued |
|
60,182 |
|
|
|
35,619 |
|
Common stock repurchased |
|
(102,344 |
) |
|
|
(233,426 |
) |
Taxes paid related to net share settlement of equity awards |
|
(1,225 |
) |
|
|
(1,219 |
) |
Cash dividends paid |
|
(158,323 |
) |
|
|
(142,125 |
) |
Net cash used in financing activities |
|
(268,010 |
) |
|
|
(434,403 |
) |
Effect of exchange rate changes on cash |
|
1,022 |
|
|
|
(1,278 |
) |
Net increase (decrease) in cash and cash equivalents |
|
198,755 |
|
|
|
(285,106 |
) |
Cash and Cash Equivalents |
|
|
|
||||
Beginning of year |
|
339,196 |
|
|
|
624,302 |
|
End of year |
$ |
537,951 |
|
|
$ |
339,196 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240129123620/en/
Financial Contact:
David Lowe, 612-623-6456
Media Contact:
Meredith Sobieck, 612-623-6427
Meredith_A_Sobieck@graco.com
Source: Graco Inc.
FAQ
What was Graco Inc.'s (NYSE: GGG) net sales increase for the fourth quarter?
What was the percentage change in operating earnings for Graco Inc. (NYSE: GGG)?
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