Snap-on Announces Third Quarter 2024 Results
Snap-on Incorporated (NYSE: SNA) reported its Q3 2024 results, showing resilience amid challenging times. Key highlights include:
- Diluted EPS of $4.70, up 4.2% from Q3 2023
- Operating margin before financial services increased 80 basis points to 22.0%
- Net sales of $1,147.0 million, down 1.1% from last year
- Organic sales decline of 1.7%
- Financial services revenue of $100.4 million, up from $94.9 million in 2023
- Net earnings of $251.1 million, compared to $243.1 million a year ago
The company maintained investments in product, brand, and people, which they believe will strengthen their advantages and drive future progress.
- Diluted EPS increased by 4.2% to $4.70
- Operating margin before financial services improved by 80 basis points to 22.0%
- Financial services revenue grew to $100.4 million from $94.9 million last year
- Net earnings rose to $251.1 million from $243.1 million in Q3 2023
- Consolidated operating earnings as a percentage of revenues improved to 26.0% from 25.1% last year
- Net sales decreased by 1.1% to $1,147.0 million
- Organic sales declined by 1.7%
- Commercial & Industrial Group segment experienced a 2.1% organic sales decline
- Snap-on Tools Group segment saw a 3.1% organic sales decrease
- Repair Systems & Information Group segment reported a 1.9% organic sales decline
Insights
Snap-on's Q3 2024 results show resilience in a challenging environment. Despite a
Key highlights include:
- Organic sales decline of
1.7% , partially offset by acquisition-related sales - Consolidated operating earnings increased to
26.0% of revenues, up from25.1% last year - Net earnings rose to
$251.1 million , compared to$243.1 million in Q3 2023
The company's ability to maintain profitability despite sales headwinds demonstrates strong cost management and operational efficiency. Snap-on's focus on innovation and investment in product development could position it well for future growth, particularly in critical industries and international markets.
Snap-on's Q3 results reveal mixed performance across its segments. The Commercial & Industrial Group saw a slight organic sales decline but improved its operating margin. The Snap-on Tools Group experienced a more significant
Notable trends include:
- Strength in critical industries and specialty torque business
- Weakness in power tools and European-based hand tools
- Lower sales of undercar equipment and reduced activity with OEM dealerships
- Higher sales of diagnostic and information products to independent repair shops
These trends suggest a shift in customer preferences and potential market share changes. Snap-on's ability to adapt to these changes while maintaining profitability will be important for long-term success. The company's continued investment in innovation and product development could help address these market dynamics.
Diluted EPS of
Operating margin before financial services of
Sales of
-
Net sales of
in the third quarter of 2024 represented a decrease of$1,147.0 million , or$12.3 million 1.1% , from 2023 levels, reflecting a , or$19.2 million 1.7% , organic sales decline and of unfavorable foreign currency translation, partially offset by$0.3 million of acquisition-related sales.$7.2 million -
Operating earnings before financial services for the quarter of
compared to$252.4 million in 2023. As a percentage of net sales, operating earnings before financial services were$245.2 million 22.0% in the third quarter compared to21.2% last year. -
Financial services revenue in the quarter of
compared to$100.4 million in 2023; financial services operating earnings of$94.9 million compared to$71.7 million last year.$69.4 million -
Consolidated operating earnings for the quarter of
, or$324.1 million 26.0% of revenues (net sales plus financial services revenue), compared to , or$314.6 million 25.1% of revenues, in 2023. -
The third quarter effective income tax rate was
22.9% in 2024 and22.6% last year. -
Net earnings in the quarter of
, or$251.1 million per diluted share, compared to net earnings of$4.70 , or$243.1 million per diluted share, a year ago.$4.51
See “Non-GAAP Measures” below for a definition of, and further explanation about, organic sales.
“We’re encouraged by our third quarter 2024 results as our businesses remained strong, yielding a balanced outcome and delivering profitability gains in these challenging times,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “We believe that our performance demonstrates our ability to harness the possibilities across our segments, countering the headwinds and pivoting to match the environment as is evident in the resilience displayed by the Tools Group during the period. At the same time, we are vigorously engaging our Snap-on Value Creation Processes to maintain and increase our operating momentum. In that regard, we were again honored with product awards from both Motor Magazine and Professional Tool & Equipment News. In the quarter, a continuous array of new innovations combined with our robust efforts in Rapid Continuous Improvement to drive broad margin gains achieved against the turbulence. Notably, we’ve maintained our investment in product, brand and people...a decisive action that we believe will strengthen our already substantial advantages, authoring continuing progress as we move forward. Finally, I want to thank our franchisees and associates worldwide for their extraordinary contributions, for their unwavering dedication, and for their steadfast confidence in the significant potential of our days and years to come.”
Segment Results
Commercial & Industrial Group segment sales of
Operating earnings of
Snap-on Tools Group segment sales of
Operating earnings of
Repair Systems & Information Group segment sales of
Operating earnings of
Financial Services operating earnings of
Corporate expenses in the third quarter of
Outlook
We believe that our markets and our operations possess and have demonstrated continuing and considerable resilience against the uncertainties of the current environment. For the remainder of 2024, Snap-on expects to make ongoing progress along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, we project that capital expenditures in 2024 will approximate
Snap-on currently anticipates that its full-year 2024 effective income tax rate will be in the range of
Conference Call and Webcast on October 17, 2024, at 9:00 a.m. Central Time
A discussion of this release will be webcast on Thursday, October 17, 2024, at 9:00 a.m. Central Time, and a replay will be available for at least 10 days following the call. To access the webcast, visit https://www.snapon.com/EN/Investors/Investor-Events and click on the link to the call. The slide presentation accompanying the call can be accessed under the Downloads tab in the webcast viewer, as well as on the Snap-on website at https://www.snapon.com/EN/Investors/Financial-Information/Quarterly-Earnings.
Non-GAAP Measures
References in this release to “organic sales” refer to sales from continuing operations calculated in accordance with generally accepted accounting principles in
About Snap-on
Snap-on Incorporated is a leading global innovator, manufacturer, and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks including those working in vehicle repair, aerospace, the military, natural resources, and manufacturing. From its founding in 1920, Snap-on has been recognized as the mark of the serious and the outward sign of the pride and dignity working men and women take in their professions. Products and services are sold through the company’s network of widely recognized franchisee vans, as well as through direct and distributor channels, under a variety of notable brands. The company also provides financing programs to facilitate the sales of its products and to support its franchise business. Snap-on, an S&P 500 company, generated sales of
Forward-looking Statements
Statements in this news release that are not historical facts, including statements that (i) are in the future tense; (ii) include the words “expects,” “anticipates,” “intends,” “approximates,” or similar words that reference Snap-on or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on’s or management’s future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that this news release may contain statements, including earnings projections, that are forward-looking in nature and were developed by management in good faith and, accordingly, are subject to risks and uncertainties regarding Snap-on’s expected results that could cause (and in some cases have caused) actual results to differ materially from those described or contemplated in any forward-looking statement. Factors that may cause the company’s actual results to differ materially from those contained in the forward-looking statements include those found in the company’s reports filed with the Securities and Exchange Commission, including the information under the “Safe Harbor” and “Risk Factors” headings in its Annual Report on Form 10-K for the fiscal year ended December 30, 2023, which are incorporated herein by reference. Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release, except as required by law.
SNAP-ON INCORPORATED Condensed Consolidated Statements of Earnings (Amounts in millions, except per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 28, |
|
September 30, |
|
September 28, |
|
September 30, |
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,147.0 |
|
|
$ |
1,159.3 |
|
|
$ |
3,508.7 |
|
|
$ |
3,533.6 |
|
Cost of goods sold |
|
(559.2 |
) |
|
|
(581.1 |
) |
|
|
(1,726.9 |
) |
|
|
(1,762.1 |
) |
Gross profit |
|
587.8 |
|
|
|
578.2 |
|
|
|
1,781.8 |
|
|
|
1,771.5 |
|
Operating expenses |
|
(335.4 |
) |
|
|
(333.0 |
) |
|
|
(978.2 |
) |
|
|
(989.5 |
) |
Operating earnings before financial services |
|
252.4 |
|
|
|
245.2 |
|
|
|
803.6 |
|
|
|
782.0 |
|
|
|
|
|
|
|
|
|
||||||||
Financial services revenue |
|
100.4 |
|
|
|
94.9 |
|
|
|
300.5 |
|
|
|
280.9 |
|
Financial services expenses |
|
(28.7 |
) |
|
|
(25.5 |
) |
|
|
(90.3 |
) |
|
|
(78.3 |
) |
Operating earnings from financial services |
|
71.7 |
|
|
|
69.4 |
|
|
|
210.2 |
|
|
|
202.6 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings |
|
324.1 |
|
|
|
314.6 |
|
|
|
1,013.8 |
|
|
|
984.6 |
|
Interest expense |
|
(12.5 |
) |
|
|
(12.4 |
) |
|
|
(37.3 |
) |
|
|
(37.4 |
) |
Other income (expense) – net |
|
20.6 |
|
|
|
18.0 |
|
|
|
57.4 |
|
|
|
50.0 |
|
Earnings before income taxes |
|
332.2 |
|
|
|
320.2 |
|
|
|
1,033.9 |
|
|
|
997.2 |
|
Income tax expense |
|
(74.7 |
) |
|
|
(71.1 |
) |
|
|
(229.2 |
) |
|
|
(223.9 |
) |
Net earnings |
|
257.5 |
|
|
|
249.1 |
|
|
|
804.7 |
|
|
|
773.3 |
|
Net earnings attributable to noncontrolling interests |
|
(6.4 |
) |
|
|
(6.0 |
) |
|
|
(18.9 |
) |
|
|
(17.5 |
) |
Net earnings attributable to Snap-on Inc. |
$ |
251.1 |
|
|
$ |
243.1 |
|
|
$ |
785.8 |
|
|
$ |
755.8 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net earnings per share attributable to Snap-on Inc.: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
4.77 |
|
|
$ |
4.60 |
|
|
$ |
14.91 |
|
|
$ |
14.29 |
|
Diluted |
|
4.70 |
|
|
|
4.51 |
|
|
|
14.69 |
|
|
|
14.00 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
52.6 |
|
|
|
52.8 |
|
|
|
52.7 |
|
|
|
52.9 |
|
Effect of dilutive securities |
|
0.8 |
|
|
|
1.1 |
|
|
|
0.8 |
|
|
|
1.1 |
|
Diluted |
|
53.4 |
|
|
|
53.9 |
|
|
|
53.5 |
|
|
|
54.0 |
|
SNAP-ON INCORPORATED Supplemental Segment Information (Amounts in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 28, |
|
September 30, |
|
September 28, |
|
September 30, |
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales: |
|
|
|
|
|
|
|
||||||||
Commercial & Industrial Group |
$ |
365.7 |
|
|
$ |
366.4 |
|
|
$ |
1,097.6 |
|
|
$ |
1,094.4 |
|
Snap-on Tools Group |
|
500.5 |
|
|
|
515.4 |
|
|
|
1,482.6 |
|
|
|
1,575.5 |
|
Repair Systems & Information Group |
|
422.7 |
|
|
|
431.8 |
|
|
|
1,341.3 |
|
|
|
1,330.4 |
|
Segment net sales |
|
1,288.9 |
|
|
|
1,313.6 |
|
|
|
3,921.5 |
|
|
|
4,000.3 |
|
Intersegment eliminations |
|
(141.9 |
) |
|
|
(154.3 |
) |
|
|
(412.8 |
) |
|
|
(466.7 |
) |
Total net sales |
|
1,147.0 |
|
|
|
1,159.3 |
|
|
|
3,508.7 |
|
|
|
3,533.6 |
|
Financial Services revenue |
|
100.4 |
|
|
|
94.9 |
|
|
|
300.5 |
|
|
|
280.9 |
|
Total revenues |
$ |
1,247.4 |
|
|
$ |
1,254.2 |
|
|
$ |
3,809.2 |
|
|
$ |
3,814.5 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings: |
|
|
|
|
|
|
|
||||||||
Commercial & Industrial Group |
$ |
61.0 |
|
|
$ |
58.1 |
|
|
$ |
178.6 |
|
|
$ |
172.0 |
|
Snap-on Tools Group |
|
108.3 |
|
|
|
113.4 |
|
|
|
340.4 |
|
|
|
382.8 |
|
Repair Systems & Information Group |
|
107.3 |
|
|
|
104.9 |
|
|
|
333.8 |
|
|
|
319.9 |
|
Financial Services |
|
71.7 |
|
|
|
69.4 |
|
|
|
210.2 |
|
|
|
202.6 |
|
Segment operating earnings |
|
348.3 |
|
|
|
345.8 |
|
|
|
1,063.0 |
|
|
|
1,077.3 |
|
Corporate |
|
(24.2 |
) |
|
|
(31.2 |
) |
|
|
(49.2 |
) |
|
|
(92.7 |
) |
Operating earnings |
|
324.1 |
|
|
|
314.6 |
|
|
|
1,013.8 |
|
|
|
984.6 |
|
Interest expense |
|
(12.5 |
) |
|
|
(12.4 |
) |
|
|
(37.3 |
) |
|
|
(37.4 |
) |
Other income (expense) – net |
|
20.6 |
|
|
|
18.0 |
|
|
|
57.4 |
|
|
|
50.0 |
|
Earnings before income taxes |
$ |
332.2 |
|
|
$ |
320.2 |
|
|
$ |
1,033.9 |
|
|
$ |
997.2 |
|
SNAP-ON INCORPORATED Condensed Consolidated Balance Sheets (Amounts in millions) (unaudited) |
|||||||
|
September 28, |
|
December 30, |
||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,313.3 |
|
|
$ |
1,001.5 |
|
Trade and other accounts receivable – net |
|
796.4 |
|
|
|
791.3 |
|
Finance receivables – net |
|
624.7 |
|
|
|
594.1 |
|
Contract receivables – net |
|
122.1 |
|
|
|
120.8 |
|
Inventories – net |
|
995.8 |
|
|
|
1,005.9 |
|
Prepaid expenses and other current assets |
|
148.4 |
|
|
|
138.4 |
|
Total current assets |
|
4,000.7 |
|
|
|
3,652.0 |
|
|
|
|
|
||||
Property and equipment – net |
|
548.3 |
|
|
|
539.3 |
|
Operating lease right-of-use assets |
|
78.0 |
|
|
|
74.7 |
|
Deferred income tax assets |
|
79.7 |
|
|
|
76.0 |
|
Long-term finance receivables – net |
|
1,309.0 |
|
|
|
1,284.2 |
|
Long-term contract receivables – net |
|
422.1 |
|
|
|
407.9 |
|
Goodwill |
|
1,086.6 |
|
|
|
1,097.4 |
|
Other intangible assets – net |
|
277.3 |
|
|
|
268.9 |
|
Pension assets |
|
134.5 |
|
|
|
130.5 |
|
Other long-term assets |
|
17.1 |
|
|
|
14.0 |
|
Total assets |
$ |
7,953.3 |
|
|
$ |
7,544.9 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Notes payable |
$ |
14.3 |
|
|
$ |
15.6 |
|
Accounts payable |
|
270.0 |
|
|
|
238.0 |
|
Accrued benefits |
|
59.4 |
|
|
|
64.4 |
|
Accrued compensation |
|
83.5 |
|
|
|
102.9 |
|
Franchisee deposits |
|
79.2 |
|
|
|
73.3 |
|
Other accrued liabilities |
|
450.0 |
|
|
|
447.4 |
|
Total current liabilities |
|
956.4 |
|
|
|
941.6 |
|
|
|
|
|
||||
Long-term debt |
|
1,185.3 |
|
|
|
1,184.6 |
|
Deferred income tax liabilities |
|
83.2 |
|
|
|
79.2 |
|
Retiree health care benefits |
|
20.2 |
|
|
|
21.8 |
|
Pension liabilities |
|
65.5 |
|
|
|
82.3 |
|
Operating lease liabilities |
|
57.1 |
|
|
|
54.6 |
|
Other long-term liabilities |
|
87.9 |
|
|
|
87.4 |
|
Total liabilities |
|
2,455.6 |
|
|
|
2,451.5 |
|
|
|
|
|
||||
Equity |
|
|
|
||||
Shareholders' equity attributable to Snap-on Inc. |
|
|
|
||||
Common stock |
|
67.5 |
|
|
|
67.5 |
|
Additional paid-in capital |
|
549.0 |
|
|
|
545.5 |
|
Retained earnings |
|
7,439.0 |
|
|
|
6,948.5 |
|
Accumulated other comprehensive loss |
|
(424.7 |
) |
|
|
(449.5 |
) |
Treasury stock at cost |
|
(2,155.8 |
) |
|
|
(2,040.7 |
) |
Total shareholders' equity attributable to Snap-on Inc. |
|
5,475.0 |
|
|
|
5,071.3 |
|
Noncontrolling interests |
|
22.7 |
|
|
|
22.1 |
|
Total equity |
|
5,497.7 |
|
|
|
5,093.4 |
|
Total liabilities and equity |
$ |
7,953.3 |
|
|
$ |
7,544.9 |
|
SNAP-ON INCORPORATED Condensed Consolidated Statements of Cash Flows (Amounts in millions) (unaudited) |
|||||||
|
Three Months Ended |
||||||
|
September 28, |
|
September 30, |
||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net earnings |
$ |
257.5 |
|
|
$ |
249.1 |
|
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: |
|
|
|
||||
Depreciation |
|
18.3 |
|
|
|
17.8 |
|
Amortization of other intangible assets |
|
6.3 |
|
|
|
6.8 |
|
Provision for losses on finance receivables |
|
15.2 |
|
|
|
12.8 |
|
Provision for losses on non-finance receivables |
|
6.0 |
|
|
|
6.2 |
|
Stock-based compensation expense |
|
5.7 |
|
|
|
11.0 |
|
Deferred income tax benefit |
|
(2.8 |
) |
|
|
(7.3 |
) |
Gain on sales of assets |
|
(0.2 |
) |
|
|
(0.3 |
) |
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
||||
Trade and other accounts receivable |
|
(7.3 |
) |
|
|
(7.6 |
) |
Contract receivables |
|
(11.7 |
) |
|
|
(25.0 |
) |
Inventories |
|
(13.3 |
) |
|
|
(7.6 |
) |
Prepaid expenses and other current assets |
|
22.4 |
|
|
|
16.1 |
|
Accounts payable |
|
(4.5 |
) |
|
|
12.6 |
|
Accrued and other liabilities |
|
(17.4 |
) |
|
|
0.8 |
|
Net cash provided by operating activities |
|
274.2 |
|
|
|
285.4 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Additions to finance receivables |
|
(227.1 |
) |
|
|
(243.5 |
) |
Collections of finance receivables |
|
206.5 |
|
|
|
208.4 |
|
Capital expenditures |
|
(20.4 |
) |
|
|
(25.1 |
) |
Disposals of property and equipment |
|
0.4 |
|
|
|
0.5 |
|
Other |
|
0.1 |
|
|
|
— |
|
Net cash used by investing activities |
|
(40.5 |
) |
|
|
(59.7 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Net decrease in other short-term borrowings |
|
(1.3 |
) |
|
|
(0.3 |
) |
Cash dividends paid |
|
(97.9 |
) |
|
|
(85.6 |
) |
Purchases of treasury stock |
|
(59.9 |
) |
|
|
(51.8 |
) |
Proceeds from stock purchase plans and stock option exercises |
|
9.9 |
|
|
|
9.9 |
|
Other |
|
(7.0 |
) |
|
|
(7.5 |
) |
Net cash used by financing activities |
|
(156.2 |
) |
|
|
(135.3 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
3.1 |
|
|
|
(2.4 |
) |
Increase in cash and cash equivalents |
|
80.6 |
|
|
|
88.0 |
|
|
|
|
|
||||
Cash and cash equivalents at beginning of period |
|
1,232.7 |
|
|
|
871.3 |
|
Cash and cash equivalents at end of period |
$ |
1,313.3 |
|
|
$ |
959.3 |
|
|
|
|
|
||||
Supplemental cash flow disclosures: |
|
|
|
||||
Cash paid for interest |
$ |
(13.8 |
) |
|
$ |
(13.8 |
) |
Net cash paid for income taxes |
|
(90.2 |
) |
|
|
(76.8 |
) |
|
|
|
|
SNAP-ON INCORPORATED Condensed Consolidated Statements of Cash Flows (Amounts in millions) (unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
September 28, |
|
September 30, |
||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net earnings |
$ |
804.7 |
|
|
$ |
773.3 |
|
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: |
|
|
|
||||
Depreciation |
|
54.7 |
|
|
|
53.6 |
|
Amortization of other intangible assets |
|
19.0 |
|
|
|
20.7 |
|
Provision for losses on finance receivables |
|
50.6 |
|
|
|
40.7 |
|
Provision for losses on non-finance receivables |
|
17.8 |
|
|
|
15.0 |
|
Stock-based compensation expense |
|
21.5 |
|
|
|
31.4 |
|
Deferred income tax benefit |
|
(7.2 |
) |
|
|
(16.5 |
) |
Gain on sales of assets |
|
(0.5 |
) |
|
|
(0.6 |
) |
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
||||
Trade and other accounts receivable |
|
(28.1 |
) |
|
|
(38.3 |
) |
Contract receivables |
|
(15.4 |
) |
|
|
(27.9 |
) |
Inventories |
|
8.6 |
|
|
|
(21.0 |
) |
Prepaid expenses and other current assets |
|
10.5 |
|
|
|
30.3 |
|
Accounts payable |
|
33.6 |
|
|
|
4.3 |
|
Accrued and other liabilities |
|
(45.8 |
) |
|
|
(7.7 |
) |
Net cash provided by operating activities |
|
924.0 |
|
|
|
857.3 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Additions to finance receivables |
|
(731.3 |
) |
|
|
(779.8 |
) |
Collections of finance receivables |
|
629.3 |
|
|
|
626.5 |
|
Capital expenditures |
|
(65.4 |
) |
|
|
(73.9 |
) |
Disposals of property and equipment |
|
2.0 |
|
|
|
1.5 |
|
Other |
|
1.5 |
|
|
|
(1.5 |
) |
Net cash used by investing activities |
|
(163.9 |
) |
|
|
(227.2 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Net decrease in other short-term borrowings |
|
(0.9 |
) |
|
|
— |
|
Cash dividends paid |
|
(294.1 |
) |
|
|
(257.6 |
) |
Purchases of treasury stock |
|
(177.5 |
) |
|
|
(233.8 |
) |
Proceeds from stock purchase plans and stock option exercises |
|
61.6 |
|
|
|
94.5 |
|
Other |
|
(37.4 |
) |
|
|
(27.0 |
) |
Net cash used by financing activities |
|
(448.3 |
) |
|
|
(423.9 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
— |
|
|
|
(4.1 |
) |
Increase in cash and cash equivalents |
|
311.8 |
|
|
|
202.1 |
|
|
|
|
|
||||
Cash and cash equivalents at beginning of year |
|
1,001.5 |
|
|
|
757.2 |
|
Cash and cash equivalents at end of period |
$ |
1,313.3 |
|
|
$ |
959.3 |
|
|
|
|
|
||||
Supplemental cash flow disclosures: |
|
|
|
||||
Cash paid for interest |
$ |
(35.8 |
) |
|
$ |
(36.1 |
) |
Net cash paid for income taxes |
|
(243.9 |
) |
|
|
(224.5 |
) |
|
|
|
|
Non-GAAP Supplemental Data
The following non-GAAP supplemental data is presented for informational purposes to provide readers with insight into the information used by management for assessing the operating performance of Snap-on Incorporated's ("Snap-on") non-financial services ("Operations") and Financial Services businesses.
The supplemental Operations data reflects the results of operations and financial position of Snap-on's tools, diagnostics, equipment products, software and other non-financial services operations with Financial Services presented on the equity method. The supplemental Financial Services data reflects the results of operations and financial position of Snap-on's
SNAP-ON INCORPORATED Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Statements of Earnings (Amounts in millions) (unaudited) |
|||||||||||||||
|
Operations* |
|
Financial Services |
||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
|
September 28, |
|
September 30, |
|
September 28, |
|
September 30, |
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,147.0 |
|
|
$ |
1,159.3 |
|
|
$ |
— |
|
|
$ |
— |
|
Cost of goods sold |
|
(559.2 |
) |
|
|
(581.1 |
) |
|
|
— |
|
|
|
— |
|
Gross profit |
|
587.8 |
|
|
|
578.2 |
|
|
|
— |
|
|
|
— |
|
Operating expenses |
|
(335.4 |
) |
|
|
(333.0 |
) |
|
|
— |
|
|
|
— |
|
Operating earnings before financial services |
|
252.4 |
|
|
|
245.2 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Financial services revenue |
|
— |
|
|
|
— |
|
|
|
100.4 |
|
|
|
94.9 |
|
Financial services expenses |
|
— |
|
|
|
— |
|
|
|
(28.7 |
) |
|
|
(25.5 |
) |
Operating earnings from financial services |
|
— |
|
|
|
— |
|
|
|
71.7 |
|
|
|
69.4 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings |
|
252.4 |
|
|
|
245.2 |
|
|
|
71.7 |
|
|
|
69.4 |
|
Interest expense |
|
(12.5 |
) |
|
|
(12.4 |
) |
|
|
— |
|
|
|
— |
|
Intersegment interest income (expense) – net |
|
16.8 |
|
|
|
16.1 |
|
|
|
(16.8 |
) |
|
|
(16.1 |
) |
Other income (expense) – net |
|
20.6 |
|
|
|
17.9 |
|
|
|
— |
|
|
|
0.1 |
|
Earnings before income taxes and equity earnings |
|
277.3 |
|
|
|
266.8 |
|
|
|
54.9 |
|
|
|
53.4 |
|
Income tax expense |
|
(62.0 |
) |
|
|
(57.3 |
) |
|
|
(12.7 |
) |
|
|
(13.8 |
) |
Earnings before equity earnings |
|
215.3 |
|
|
|
209.5 |
|
|
|
42.2 |
|
|
|
39.6 |
|
Financial services – net earnings attributable to Snap-on |
|
42.2 |
|
|
|
39.6 |
|
|
|
— |
|
|
|
— |
|
Net earnings |
|
257.5 |
|
|
|
249.1 |
|
|
|
42.2 |
|
|
|
39.6 |
|
Net earnings attributable to noncontrolling interests |
|
(6.4 |
) |
|
|
(6.0 |
) |
|
|
— |
|
|
|
— |
|
Net earnings attributable to Snap-on |
$ |
251.1 |
|
|
$ |
243.1 |
|
|
$ |
42.2 |
|
|
$ |
39.6 |
|
|
|
|
|
|
|
|
|
||||||||
* Snap-on with Financial Services presented on the equity method. |
SNAP-ON INCORPORATED Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Statements of Earnings (Amounts in millions) (unaudited) |
|||||||||||||||
|
Operations* |
|
Financial Services |
||||||||||||
|
Nine Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 28, |
|
September 30, |
|
September 28, |
|
September 30, |
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
3,508.7 |
|
|
$ |
3,533.6 |
|
|
$ |
— |
|
|
$ |
— |
|
Cost of goods sold |
|
(1,726.9 |
) |
|
|
(1,762.1 |
) |
|
|
— |
|
|
|
— |
|
Gross profit |
|
1,781.8 |
|
|
|
1,771.5 |
|
|
|
— |
|
|
|
— |
|
Operating expenses |
|
(978.2 |
) |
|
|
(989.5 |
) |
|
|
— |
|
|
|
— |
|
Operating earnings before financial services |
|
803.6 |
|
|
|
782.0 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Financial services revenue |
|
— |
|
|
|
— |
|
|
|
300.5 |
|
|
|
280.9 |
|
Financial services expenses |
|
— |
|
|
|
— |
|
|
|
(90.3 |
) |
|
|
(78.3 |
) |
Operating earnings from financial services |
|
— |
|
|
|
— |
|
|
|
210.2 |
|
|
|
202.6 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings |
|
803.6 |
|
|
|
782.0 |
|
|
|
210.2 |
|
|
|
202.6 |
|
Interest expense |
|
(37.3 |
) |
|
|
(37.4 |
) |
|
|
— |
|
|
|
— |
|
Intersegment interest income (expense) – net |
|
50.6 |
|
|
|
47.9 |
|
|
|
(50.6 |
) |
|
|
(47.9 |
) |
Other income (expense) – net |
|
57.3 |
|
|
|
49.8 |
|
|
|
0.1 |
|
|
|
0.2 |
|
Earnings before income taxes and equity earnings |
|
874.2 |
|
|
|
842.3 |
|
|
|
159.7 |
|
|
|
154.9 |
|
Income tax expense |
|
(189.3 |
) |
|
|
(183.8 |
) |
|
|
(39.9 |
) |
|
|
(40.1 |
) |
Earnings before equity earnings |
|
684.9 |
|
|
|
658.5 |
|
|
|
119.8 |
|
|
|
114.8 |
|
Financial services – net earnings attributable to Snap-on |
|
119.8 |
|
|
|
114.8 |
|
|
|
— |
|
|
|
— |
|
Net earnings |
|
804.7 |
|
|
|
773.3 |
|
|
|
119.8 |
|
|
|
114.8 |
|
Net earnings attributable to noncontrolling interests |
|
(18.9 |
) |
|
|
(17.5 |
) |
|
|
— |
|
|
|
— |
|
Net earnings attributable to Snap-on |
$ |
785.8 |
|
|
$ |
755.8 |
|
|
$ |
119.8 |
|
|
$ |
114.8 |
|
|
|
|
|
|
|
|
|
||||||||
* Snap-on with Financial Services presented on the equity method. |
SNAP-ON INCORPORATED Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Balance Sheets (Amounts in millions) (unaudited) |
|||||||||||
|
Operations* |
|
Financial Services |
||||||||
|
September 28, |
|
December 30, |
|
September 28, |
|
December 30, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Assets |
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
$ |
1,313.2 |
|
$ |
1,001.3 |
|
$ |
0.1 |
|
$ |
0.2 |
Intersegment receivables |
|
18.3 |
|
|
15.7 |
|
|
— |
|
|
— |
Trade and other accounts receivable – net |
|
795.8 |
|
|
790.6 |
|
|
0.6 |
|
|
0.7 |
Finance receivables – net |
|
— |
|
|
— |
|
|
624.7 |
|
|
594.1 |
Contract receivables – net |
|
4.7 |
|
|
5.5 |
|
|
117.4 |
|
|
115.3 |
Inventories – net |
|
995.8 |
|
|
1,005.9 |
|
|
— |
|
|
— |
Prepaid expenses and other current assets |
|
151.5 |
|
|
143.2 |
|
|
10.2 |
|
|
7.4 |
Total current assets |
|
3,279.3 |
|
|
2,962.2 |
|
|
753.0 |
|
|
717.7 |
|
|
|
|
|
|
|
|
||||
Property and equipment – net |
|
545.9 |
|
|
536.5 |
|
|
2.4 |
|
|
2.8 |
Operating lease right-of-use assets |
|
77.5 |
|
|
73.8 |
|
|
0.5 |
|
|
0.9 |
Investment in Financial Services |
|
405.9 |
|
|
393.9 |
|
|
— |
|
|
— |
Deferred income tax assets |
|
53.1 |
|
|
51.3 |
|
|
26.6 |
|
|
24.7 |
Intersegment long-term notes receivable |
|
844.2 |
|
|
785.6 |
|
|
— |
|
|
— |
Long-term finance receivables – net |
|
— |
|
|
— |
|
|
1,309.0 |
|
|
1,284.2 |
Long-term contract receivables – net |
|
8.3 |
|
|
8.3 |
|
|
413.8 |
|
|
399.6 |
Goodwill |
|
1,086.6 |
|
|
1,097.4 |
|
|
— |
|
|
— |
Other intangible assets – net |
|
277.3 |
|
|
268.9 |
|
|
— |
|
|
— |
Pension assets |
|
134.5 |
|
|
130.5 |
|
|
— |
|
|
— |
Other long-term assets |
|
34.9 |
|
|
30.2 |
|
|
0.1 |
|
|
0.1 |
Total assets |
$ |
6,747.5 |
|
$ |
6,338.6 |
|
$ |
2,505.4 |
|
$ |
2,430.0 |
|
|
|
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
|
|
|
|
||||
Notes payable |
$ |
14.3 |
|
$ |
15.6 |
|
$ |
— |
|
$ |
— |
Accounts payable |
|
268.8 |
|
|
236.2 |
|
|
1.2 |
|
|
1.8 |
Intersegment payables |
|
— |
|
|
— |
|
|
18.3 |
|
|
15.7 |
Accrued benefits |
|
59.4 |
|
|
64.4 |
|
|
— |
|
|
— |
Accrued compensation |
|
80.6 |
|
|
99.9 |
|
|
2.9 |
|
|
3.0 |
Franchisee deposits |
|
79.2 |
|
|
73.3 |
|
|
— |
|
|
— |
Other accrued liabilities |
|
434.8 |
|
|
432.2 |
|
|
28.5 |
|
|
27.4 |
Total current liabilities |
|
937.1 |
|
|
921.6 |
|
|
50.9 |
|
|
47.9 |
|
|
|
|
|
|
|
|
||||
Long-term debt and intersegment long-term debt |
|
— |
|
|
— |
|
|
2,029.5 |
|
|
1,970.2 |
Deferred income tax liabilities |
|
83.2 |
|
|
79.2 |
|
|
— |
|
|
— |
Retiree health care benefits |
|
20.2 |
|
|
21.8 |
|
|
— |
|
|
— |
Pension liabilities |
|
65.5 |
|
|
82.3 |
|
|
— |
|
|
— |
Operating lease liabilities |
|
57.0 |
|
|
54.0 |
|
|
0.1 |
|
|
0.6 |
Other long-term liabilities |
|
86.8 |
|
|
86.3 |
|
|
19.0 |
|
|
17.4 |
Total liabilities |
|
1,249.8 |
|
|
1,245.2 |
|
|
2,099.5 |
|
|
2,036.1 |
|
|
|
|
|
|
|
|
||||
Total shareholders' equity attributable to Snap-on |
|
5,475.0 |
|
|
5,071.3 |
|
|
405.9 |
|
|
393.9 |
Noncontrolling interests |
|
22.7 |
|
|
22.1 |
|
|
— |
|
|
— |
Total equity |
|
5,497.7 |
|
|
5,093.4 |
|
|
405.9 |
|
|
393.9 |
Total liabilities and equity |
$ |
6,747.5 |
|
$ |
6,338.6 |
|
$ |
2,505.4 |
|
$ |
2,430.0 |
|
|
|
|
|
|
|
|
||||
* Snap-on with Financial Services presented on the equity method. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017724747/en/
For additional information, please visit www.snapon.com or contact:
Investors:
Sara Verbsky
262/656-4869
Media:
Samuel Bottum
262/656-5793
Source: Snap-on Incorporated
FAQ
What was Snap-on's (SNA) diluted EPS for Q3 2024?
How did Snap-on's (SNA) net sales perform in Q3 2024 compared to the previous year?
What was the organic sales growth for Snap-on (SNA) in Q3 2024?
How did Snap-on's (SNA) financial services segment perform in Q3 2024?