| From: Dr_of_Microcaps | 2/20/2013 2:35:12 PM | | | | | | George Soros' 4 New Dividend-Paying Picks With Upside Potential
February 20, 2013 by: Dividendinvestr | includes: F, IVZ, NWL, PNC
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Business relationship disclosure: Dividendinvestr is a team of analysts. This article was written by Serkan Unal, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.
By Serkan Unal
George Soros, one of the world's most famous investors and financiers, earned $1 billion from shorting the British pound in September 1992. He seems to have struck the same luck again last year and this so far, as his short trade on the Japanese currency has produced a gain of about $1 billion since November 2012. Soros has been making bets across asset classes and sectors based on macroeconomic events and economic theory. He currently runs a family office with some $24 billion in assets under management.
Soros' family office recently filed its 13-F regulatory disclosure with the SEC for the fourth quarter of 2012. Based on the filing, Soros sold out of his stakes in 69 companies, while he entered 70 new positions, including several positions paying dividends. Here is a closer look at Soros' four new stocks paying dividend yields above 2.0% and boasting the potential for capital appreciation and dividend growth over the longer term. The stocks are listed based on their size in the overall portfolio.
Ford Motor Company ( F), the second largest U.S. automaker by market share, has a dividend yield of 3.1% and a payout ratio of 29% of the current-year EPS estimate. Recently, the company doubled its quarterly dividend. Last quarter, Soros reported owning nearly $41 million worth of the stock. The company's EPS for the fourth quarter of 2012 and the whole year beat analysts' estimates; however, its 2013 outlook was below investors' expectations, given deeper anticipated losses in Europe and a break-even position in Latin America. Still, Ford's North American sales are driving growth. There is a strong pent-up demand in the U.S. as the aging vehicle fleet hit the record-high average age of 11.3 years in January 2013. This year, U.S. vehicle sales are running at an annualized rate of 15.3 million, above the five-year high of 14.5 million reported in 2012. Ford predicts that U.S. sales could grow as much as 8% in 2013. In addition, Ford's sales are booming in China and India. Based on the company's predication from 2011, Ford expects China and India sales to boost its global vehicle sales by 50% to 8 million by 2015. Despite the company's upbeat predictions, analysts at Barclays and Deutsche Bank recently downgraded the stock based on valuation, margin expansion, and anticipated "lowering expectations." Ford still looks as good value, trading at 9.4x forward earnings versus 17.1x for General Motors Co. ( GM) and 22.4x for Toyota Motor Co. ( TM).
Invesco Ltd. ( IVZ), an asset manager, has a dividend yield of 2.5%, payout ratio of 34% of the current-year EPS estimate, and five-year annualized dividend growth of about 6.0%. Last quarter, Soros reported owning almost $40 million worth of the stock. Invesco Ltd. currently has some $712.6 billion in assets under management. The company's AUM has benefited from positive inflows into both passive and active investment vehicles. Even though the company missed analysts' expectations, mainly on bottom lines due to rising compensation costs, the company's growth outlook is sanguine. Analysts forecast the company's long-term EPS CAGR at a robust 14.6%. Its growth will be driven by rising investment flows amidst the company's broad diversification. The stock is up nearly 11% over the past 12 months and is trading close to its 52-week high. Last month, both JPMorgan and Morgan Stanley downgraded the stock based on its valuation, softer sales of its leading product, and margin expansion. The stock is currently trading at a forward P/E of 13.7x, below an industry multiple of 15.4x. Its price-to-book of 1.5 is also lower than the industry average ratio of 1.7. The stock's long-term EPS growth expectations suggest a potential for appreciation and dividend growth in the future.
Newell Rubbermaid Inc. ( NWL), the maker of plastic items, including plastic bins and cookware, has a dividend yield of 2.5% and a payout ratio of 33% of the current-year EPS estimate. The company's quarterly dividend was slashed back in 2009, from 21 cents to 5 cents per share, but since it has risen threefold. Last quarter, Soros reported owning $33.4 million in NWL stock. Over the past four quarters, the company has been posting estimate-beating EPS results. Its cost cutting and emerging market growth have been propping up the bottom line. The company expects to see core sales growth of between 2% and 4% this year, with the EPS guidance in the range between $1.78 and $1.84. The midpoint of NWL's EPS guidance meets the analysts' EPS estimate of $1.82. The company has seen marginal, but still positive EPS revisions over the past 30 days. Its forward P/E of 13.2x is on par with its respective industry's forward earnings multiple. However, the stock is priced below industry based on a price-to-book of 3.4 (an industry price-to-book ratio is 4.3). In 2010, there were rumors that the company was a takeover target-involving Procter & Gamble ( PG) as a rumored acquirer. However, those rumors dissipated over time. Several prominent hedge funds, including Ken Griffin's Citadel Investments, Ariel Investments, and Phill Gross's Adage Capital, have positions in NWL.
PNC Financial Services Group Inc. ( PNC), one of the largest U.S. diversified financial services organizations, has a dividend yield of 2.5% and a payout ratio of 25% of the current-year EPS estimate. The bank's quarterly dividend was slashed in 2009, from 66 cents to 10 cents per share, but since it has increased fourfold. The bank generates a large share of fee-based revenues, which may improve this year. Moreover, the bank also has a high exposure to commercial and industrial loans, including commercial real estate construction exposure, which is expected to rise smartly with the rebounding economy. In general, the strong Midwest economy, supported by farming and hydraulic fracking industries, has given support to the bank's growth. Growth is also driven by acquisitions, including that of RBC's U.S. retail banking business. Interestingly, PNC owns 36 million shares of the world's largest asset manager, BlackRock Inc. ( BLK), and derives 11% of its profit from its BLK investment. Given BLK's spectacular performance over the past several years, this PNC position has proven to be lucrative. However, it is relevant to note that some of the bank's weaknesses include a contracting net interest margin and capital ratios slightly below those of its peers. Also, the bank has an ROE of 7.2%, below its industry's average ROE of 8.3%. It is trading at 90% of book value. |
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| From: Dr_of_Microcaps | 6/17/2013 12:39:54 PM | | | | | | Newell Rubbermaid Appoints Jeremy Liebowitz to Lead Acceleration of E-Commerce GrowthProven leader will maximize online commercial presence
 Press Release: Newell Rubbermaid – 4 hours ago
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SymbolPriceChange | NWL | 27.16 | -0.01 |
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ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid ( NWL) today announced the appointment of Jeremy Liebowitz to the newly created position of Vice President, Global E-Commerce, to lead the acceleration of the company’s online revenue growth worldwide.
“E-commerce is our single biggest growth opportunity and an area where we expect to make substantial investments under Jeremy’s leadership,” said Mark Tarchetti, Newell Rubbermaid’s Chief Development Officer. “In this highly visible and collaborative role, Jeremy will focus on maximizing our online commercial presence with existing customers and developing a long term channel strategy to drive growth.”
Liebowitz has a proven track record of building successful e-commerce platforms over an 18-year career, most recently as Vice President of Digital Commerce and Marketing for Jarden Corp., where he achieved significant online revenue growth multiples over five years. Previously, Liebowitz held key e-commerce roles at Limited Brands, Inc. and TracFone Wireless.
To accelerate Newell Rubbermaid’s global e-commerce business, Liebowitz will develop a comprehensive global strategy and ensure the appropriate tools, workplans and organization development are in place to create a step change. The role will be externally focused, collaborating closely with customer development leaders to improve Newell Rubbermaid’s offering to customers.
Liebowitz will report to Tarchetti, with a strong link to Chief Customer Officer Joe Cavaliere.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
NWL-EX
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects and impacts of the Company’s organizational transformation initiatives, including Project Renewal and the European Transformation Plan. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy, our ability to effectively achieve and redeploy cost savings from these transformation initiatives, as well as those factors listed in the company’s most recently filed Annual Report on Form 10-K, filed with the Securities and Exchange Commission.
Contact:
Newell Rubbermaid
Nancy O’Donnell, +1 770-418-7723
Vice President, Investor Relations
or
David Doolittle, +1 770-418-7519
Vice President, Corporate Communications |
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| From: Dr_of_Microcaps | 7/16/2013 6:09:02 PM | | | | | | Newell Rubbermaid Announces Sale of Teach Platform To Skyview Capital LLC Press Release: Newell Rubbermaid – Mon, Jul 15, 2013 1:25 PM EDT 0
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SymbolPriceChange
ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid Inc. ( NWL) today announced the sale of its Teach platform, including the Mimio® and Headsprout® interactive teaching technology brands, to Skyview Capital, LLC ( www.skyviewcapital.com), a Beverly Hills, Calif., private equity firm. Terms were not disclosed. The transaction has closed with the signing of the agreement.
“Our Growth Game Plan is designed to accelerate performance by setting clear priorities for our business. This transaction further simplifies our portfolio as we continue to invest behind our highest-potential global growth opportunities,” said Michael Polk, Newell Rubbermaid’s President and Chief Executive Officer.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
Contact:
Newell Rubbermaid
Nancy O’Donnell, +1 (770) 418-7723
Vice President, Investor Relations
or
David Doolittle, +1 (770) 418-7519
Vice President, Global Communications
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| From: Dr_of_Microcaps | 10/3/2013 10:28:18 AM | | | | | | Newell Rubbermaid Appoints Lead Creative and Media Agencies to Drive More Impactful Global MarketingConsolidates agencies to step-change effectiveness and efficiency
 Press Release: Newell Rubbermaid – 2 hours 1 minute ago
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ATLANTA, Oct. 3, 2013 /PRNewswire/ -- Newell Rubbermaid ( NWL) today announced a significant step in making bigger, more strategic, global investments behind its brands with the consolidation of scores of local agencies worldwide into one lead creative partner and one lead media-buying partner. The two agencies will help oversee Newell Rubbermaid's globaladvertising and promotion investment.
Bartle Bogle Hegarty (BBH) has been selected as lead creative agency, which will have full responsibility to deliver strategy, creative execution and implementation (excluding media) in all brand-related communication channels. Part of the Publicis Groupe, BBH was named 2013 "Mid-Sized Agency of the Year" by the O'Toole Awards and is one of the most awarded advertising agencies in the world. BBH works with leading brands including Johnnie Walker, British Airways, KFC, Audi, Barclays Bank, Westin Hotels & Resorts, and Axe. The global assignment will be led by BBH New York, supported by the entire BBH global agency network including offices in London, Sao Paulo and Shanghai.
PHD has been selected as lead media agency, which will help with overall strategic communicationplanning and be responsible for all media placements across all channels. Originally founded as the world's first planning-led media agency, PHD, part of the Omnicom Media Group, was named Adweek's "Global Media Agency of the Year" in 2012 and is a proven innovator in communications planning and buying. PHD's clients include Mondelez, Porsche, Bentley, ANZ, GlaxoSmithKline, Hyatt and Canon.
"For the first time, we are aligning all our brands and categories behind one set of agency partners to drive big ideas that create a strong point of difference for consumers," said Richard Davies, Chief Marketing and Insights Officer of Newell Rubbermaid. "BBH and PHD are the best in the business at what they do. With their partnership, we now have the power to achieve much greater scale, reach and impact as we invest behind growing our brands worldwide."
"Our ambition is to push the limits of what's possible for our brands," said Mark Tarchetti, Newell Rubbermaid's Chief Development Officer. "The Growth Game Plan strategy promises to accelerate growth through sharper portfolio choices and new capabilities. Our progress is becoming an increasing reality in important steps like a new state of the art design center that will open next year, investments in e-commerce and innovation, and the appointment of global creative and media agencies. These moves allow us to step-change quality while taking all the efficiencies that come with scale. Our momentum is increasingly visible in the marketplace as we make new A&P investments that are unprecedented in Newell Rubbermaid's history, and build an even stronger 2014 plan."
The new agency relationships are effective Oct. 1, with transition work beginning immediately to ensure integrated teams are fully operational by the beginning of the year.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com. |
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| From: Dr_of_Microcaps | 10/10/2013 9:36:09 AM | | | | | | Newell Rubbermaid To Webcast Third Quarter 2013 Earnings Results Press Release: Newell Rubbermaid – 1 hour 44 minutes ago
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SymbolPriceChange | NWL | 26.69 | |
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ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid ( NWL) today announced its third quarter 2013 earnings results will be released Friday, October 25, prior to market open, followed by a live webcast at 10:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
Contact:
Newell Rubbermaid
Nancy O’Donnell, 770-418-7723
Vice President, Investor Relations
or
David Doolittle, 770-418-7519
Vice President, Global Communications |
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| From: Dr_of_Microcaps | 1/21/2014 9:00:24 PM | | | | | | Newell Rubbermaid to Webcast Fourth Quarter 2013 Earnings Results
Newell Rubbermaid12 hours ago
ATLANTA, Jan. 21, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its fourth quarter 2013 earnings results will be released Friday, January 31, prior to market open and will be followed by a live webcast at 9:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
+1 (770) 418-7723
David Doolittle
Vice President, Global Communications
+1 (770) 418-7519 |
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| From: Dr_of_Microcaps | 2/13/2014 9:33:16 PM | | | | | | Newell Rubbermaid Announces Expansion and Extension of Stock Repurchase Program
Newell Rubbermaid13 hours ago
ATLANTA, Feb. 13, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) announced today that its Board of Directors has approved an extension and expansion to the Company's on-going share repurchase program. Under the updated plan, effective immediately, Newell Rubbermaid is authorized to repurchase up to $300 million of its outstanding shares through the end of 2016. Included in the $300 million is approximately $43 million remaining to be repurchased under its previous $300 million share repurchase program, which was authorized in August 2011 and scheduled to expire in August 2014.
"Today's action reflects the Board's continued confidence in the company's Growth Game Plan and long term growth outlook," said Michael Polk, president and chief executive officer. "Our strong balance sheet and cash flow provide us with the flexibility to opportunistically repurchase shares while continuing to invest in our brands and other growth opportunities to drive value for our shareholders."
Under the program, the company's common shares may be purchased through a combination of a 10b5-1 automatic trading plan and discretionary purchases on the open market or in privately negotiated transactions. The amount and timing of any purchases will depend on a number of factors, including trading price, trading volume and general market conditions.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; product liability or regulatory actions; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; a failure of one of our key information technology systems or related controls; the potential inability to attract, retain and motivate key employees; future events that could adversely affect the value of our assets and require impairment charges; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations; our ability to consummate the transactions contemplated by the Accelerated Share Repurchase Plan; and those factors listed in the company's most recently filed Quarterly Report on Form 10-Q and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
David Doolittle
Vice President, Global Communications
(770) 418-7519 |
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| From: Dr_of_Microcaps | 4/19/2014 9:59:14 AM | | | | | | Newell Rubbermaid to Webcast First Quarter 2014 Earnings Results
Newell RubbermaidApril 16, 2014 8:00 AM
ATLANTA, April 16, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its first quarter 2014 earnings results will be released Friday, May 2, prior to market open and will be followed by a live webcast at 8:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of approximately $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
+1 (770) 418-7723
David Doolittle
Vice President, Global Communications
+1 (770) 418-7519 |
| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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| From: Dr_of_Microcaps | 5/3/2014 1:56:15 AM | | | | | | Newell Rubbermaid Announces First Quarter Results
Newell Rubbermaid19 hours ago
Reaffirms Full Year Guidance
Increases Quarterly Dividend 13 percent to $0.17 per share
ATLANTA, May 2, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its first quarter 2014 financial results.
"We delivered solid first quarter results in the context of two previously communicated events. Our team did a good job overcoming the adverse impacts of the harness buckle recall on select car seats in our U.S. Baby business and the weather-related slow down on our U.S.-centric Home Solutions business," said Michael Polk, Chief Executive Officer. "Strong core sales growth in Writing offset declines in Home Solutions and Baby, yielding normalized earnings per share of $0.35, flat with last year's results.
"We are confident in our full year financial guidance and expect the company's core sales and earnings per share growth to accelerate through the balance of the year as we significantly increase advertising and promotion investment levels in support of our brands and innovation. Importantly, the Board of Directors has approved a 13 percent increase in our quarterly dividend to $0.17, an annualized rate of $0.68 per share. This is the fourth dividend increase in the last three years, which is a reflection of the Board's continued confidence in Newell's strong cash generation ability and in the promise of our Growth Game Plan."
First Quarter Executive Summary
Net sales were $1.23 billion, a 0.7 percent decline versus prior year results.
Core sales, which exclude the impact of changes in foreign currency, grew 0.7 percent.
Normalized gross margin was 38.8 percent, a 60 basis point improvement compared with the prior year period. Reported gross margin was 38.1 percent versus 38.2 percent in the prior year period.
Normalized operating margin was 11.0 percent versus 11.2 percent in the prior year period. Reported operating margin increased 60 basis points to 8.5 percent.
Normalized diluted earnings per share were $0.35 compared with $0.35 in the prior year. Reported diluted earnings per share were $0.19 compared with $0.19 in the prior year.
The company's first quarter reported results include an $11.0 million charge ($0.02 per diluted share) which reflects the cost of harness buckle recall issues on select car seats in our Baby segment. This charge has been excluded from normalized operating income and normalized EPS.
Operating cash flow was a use of $92.1 million compared with a use of $123.1 million in the prior year period.
The company paid dividends of $42.9 million and repurchased 1.5 million shares of common stock at a cost of $44.4 million. In addition, the company took delivery of 2.0 million shares in mid-March to complete the Accelerated Share Repurchase program initiated in the fourth quarter of 2013.
The company announced a 13 percent ($0.02 per share) increase in its quarterly dividend to $0.17 per share.
The company recorded a monetary asset devaluation charge of $38.7 million, or $0.09 per diluted share, associated with adopting the SICAD I rate for its Venezuelan operations.
The company reaffirmed its guidance for 2014 core sales growth of 3 to 4 percent, operating margin improvement of up to 40 basis points, normalized EPS of $1.94 to $2.00 and operating cash flow of $600 to $650 million.First Quarter 2014 Operating Results
Net sales in the first quarter were $1.23 billion, compared with $1.24 billion in the prior year. Core sales, which exclude 140 basis points of negative foreign currency impact, grew 0.7 percent.
Reported gross margin was 38.1 percent. Normalized gross margin was 38.8 percent, a 60 basis point improvement versus prior year results. Normalized gross margin excludes the impact of costs associated with the harness buckle recall. Pricing and productivity more than offset inflation and the negative impact of transactional foreign currency.
First quarter reported operating margin was 8.5 percent compared with 7.9 percent in the prior year. Reported operating income was $105.2 million versus $97.8 million.
Normalized operating margin was 11.0 percent, compared with 11.2 percent in the prior year period. Normalized operating income was $135.9 million compared with $138.8 million in the prior year period. First quarter 2014 normalized operating income excludes restructuring and restructuring-related costs of $19.7 million and $11.0 million of costs associated with the harness buckle recall issue while 2013 normalized operating income excludes $41.0 million of restructuring and restructuring-related costs.
The company reported a net benefit for income taxes of $1.3 million due to discrete period benefits relating to resolution of certain tax items and the tax rate applicable to the $38.7 million charge associated with its Venezuelan operations. The reported tax expense for the prior year period was $6.4 million. The normalized tax rate was 18.4 percent compared with 16.5 percent in the prior year.
Reported net income was $52.9 million, compared with $54.2 million in the prior year. Reported diluted earnings per share were $0.19 compared with the prior year's $0.19 per diluted share. Lower restructuring costs and the positive impact from a lower share count were offset by a $38.7 million monetary asset devaluation charge resulting from the adoption of the SICAD I Venezuelan Bolivar exchange rate and the $11.0 million charge reflecting the costs associated with the harness buckle recall issue.
Normalized net income was $98.1 million, compared with $102.1 million in the prior year. Normalized diluted earnings per share of $0.35 were flat compared with the prior year as 60 basis points of normalized gross margin increase and a lower share count were offset by the loss of sales momentum on Baby due to the harness buckle recall and the sluggish performance of the U.S.-centric Home Solutions segment as a result of a weather-related slowdown in U.S. retailer point-of-sale results.
For the first quarter 2014, normalized diluted earnings per share exclude $0.05 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.02 per diluted share associated with the harness buckle recall in Baby & Parenting and $0.09 per diluted share resulting from the use of the SICAD I exchange rate for the company's Venezuelan operations. For the first quarter 2013, normalized diluted earnings per share exclude $0.12 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.02 per diluted share resulting from the devaluation of the Venezuelan Bolivar, $0.02 per diluted share attributable to the resolution of tax contingencies, and a net loss (including impairments) from discontinued operations of $0.03 per diluted share. (A reconciliation to "normalized" results is included below.)
Operating cash flow was a use of $92.1 million compared with a use of $123.1 million last year, primarily due to the absence of a U.S. pension plan contribution.
Recall of Harness Buckles on Select Car Seats
In February 2014, Graco announced a voluntary recall in the U.S. of harness buckles used on approximately 4 million toddler car seats manufactured between 2006 and 2013. There have been no reported injuries associated with the recalled harness buckles. These toddler car seat buckles were susceptible to contamination from food, debris or spilled liquids, which can result in difficulty or inability to open the buckles. As a result of the recall, affected car seats which were at retail or in customer warehouses have been reworked in the field or returned to the company for rework. Graco continues to offer consumers replacement harness buckles at no cost.
Graco is in ongoing discussions with the National Highway Traffic Safety Administration (NHTSA) regarding a potential recall of harness buckles used on select infant car seats. The company remains hopeful that its dialogue with NHTSA and shared commitment to child passenger safety will result in a constructive resolution and the best outcome for consumers. The company expects the infant harness buckle discussions will be resolved in the second quarter.
The Company's first quarter reported results include an $11.0 million charge (or $0.02 per diluted share) which includes the cost of the first quarter recall of harness buckles on select toddler car seats as well as the company's current estimate of costs associated with the infant car seat harness buckle issue. This charge has been excluded from normalized operating income and normalized EPS. Normalized operating income and normalized EPS do not exclude the impact on net sales of returns from retailers or the lost sales associated with approximately five weeks of lost shipments on the affected toddler car seats.
A reconciliation of the first quarter 2014 and 2013 results is as follows:
| Q1 2014* | Q1 2013* |
|
|
| | Diluted earnings per share (as reported) | $0.19 | $0.19 |
|
|
| | Restructuring and restructuring-related costs | 0.05 | 0.12 |
|
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| | Costs associated with harness buckle recall | 0.02 | -- |
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| | Currency devaluation -- Venezuela | 0.09 | 0.02 |
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| | Resolution of income tax contingencies | -- | (0.02) |
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| | Discontinued operations | -- | 0.03 |
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| | Normalized EPS | $0.35 | $0.35 |
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| | *Totals may not add due to rounding |
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|
First Quarter 2014 Operating Segment Results
Writing net sales for the first quarter were $361.3 million, a 6.1 percent improvement compared to prior year. Core sales increased 8.0 percent, driven by pricing and market share growth in the Americas, partially offset by product line exits in Europe. Operating income was $77.1 million, or 21.3 percent of sales, compared with $63.2 million, or 18.6 percent of sales, in the prior year. The increase in operating margin was largely driven by positive mix, productivity, and pricing in Latin America.
Home Solutions net sales were $321.2 million, a 5.2 percent decline compared to prior year. Core sales declined 4.5 percent, as weather-related point-of-sale softness and the negative effect on volume of less merchandising on certain Rubbermaid Consumer low margin product lines were partially offset by increased distribution on Calphalon(R). Normalized operating income was $26.3 million, or 8.2 percent of sales, compared with $34.1 million, or 10.1 percent of sales, in the prior year. The decrease in operating margin was driven by input cost inflation and the deleveraging effect on margins of lower sales volumes, partially offset by productivity and pricing.
Tools segment net sales were $187.8 million, a 0.4 percent decline compared to prior year. Core sales increased 2.4 percent driven by strong volume and share growth on Lenox in North America and Irwin in Europe. Adjusting for the prior year pull forward of volume into the first quarter of 2013 related to the second quarter 2013 SAP conversion in Brazil, Tools global core sales increased 5.2 percent. Operating income was $21.4 million, or 11.4 percent of sales, compared with $18.7 million, or 9.9 percent of sales, in the prior year. The increase in operating margin was driven by pricing and favorable mix partially offset by inflation.
Commercial Products net sales were $182.6 million, a 0.3 percent decrease compared to prior year. Core sales increased 0.2 percent as solid growth on Rubbermaid Commercial Products was largely offset by weakness in the U.S. Healthcare business against a very strong year ago comparison period. Operating income was $13.8 million, or 7.6 percent of sales, compared with $21.6 million, or 11.8 percent of sales, in the prior year period. The decrease in operating margin reflects inflation and increased investment in selling capabilities in North America and Latin America.
Baby & Parenting net sales were $179.3 million, a decline of 5.4 percent compared to prior year. Core sales declined 4.4 percent, primarily attributable to the U.S. recall of harness buckles on select toddler car seats and the exit of certain product lines in Europe. Normalized operating income was $16.4 million, or 9.1 percent of sales, compared with $23.9 million, or 12.6 percent of sales, in the prior year. The decrease in operating margin was largely due to inflation and the absence of fixed cost leverage associated with lower sales volume.
2014 Full Year Outlook
Newell Rubbermaid reaffirmed its full year 2014 guidance as follows:
Core sales growth of 3 to 4 percent;
Normalized operating margin improvement of up to 40 basis points;
Normalized EPS of $1.94 to $2.00; and
Operating cash flow between $600 and $650 million.The company now expects foreign exchange to have a negative impact on 2014 net sales of about 200 basis points and to have a negative impact on both normalized and reported EPS of $0.04 to $0.05 per diluted share for the balance of 2014. Subsequent to the first quarter, the company will begin using the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela's SICAD I exchange mechanism (approximately 10.5 to 11.0 Bolivars per U.S. dollar).
2014 normalized EPS guidance excludes between $100 and $120 million of Project Renewal restructuring and restructuring-related charges. (A reconciliation of expected reported results to "normalized" results is included below.)
The company is on track to realize cumulative annualized cost savings of $270 to $325 million by the second quarter of 2015 related to Project Renewal. The majority of these savings will be reinvested in the business to strengthen brand building and selling capabilities and accelerate growth.
Operating cash flow guidance assumes $100 to $120 million in restructuring and restructuring-related cash payments. Capital expenditures are projected at $150 to $175 million.
A reconciliation of the 2014 earnings outlook is as follows:
| FY 2014 |
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| | Diluted earnings per share | $1.50 to $1.56 |
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| | Restructuring and restructuring-related costs | $0.29 to $0.37 |
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| | Costs associated with harness buckle recall | $0.02 |
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| | Currency devaluation - Venezuela | $0.09 |
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| | Normalized EPS | $1.94 to $2.00 |
Conference Call
The company's first quarter 2014 earnings conference call will be held today, May 2, 2014, at 8:00 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The webcast will be available for replay. A supporting slide presentation will be made available in the Investor Relations section on the company's Web site under Quarterly Earnings.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission and includes a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
The company uses certain financial measures that are included in this press release and the additional financial information both in explaining its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The company's management believes that these measures - including those that are "non-GAAP financial measures" - and the information they provide are useful to investors since these measures (a) permit investors to view the company's performance using the same tools that management uses to evaluate the company's past performance, reportable business segments and prospects for future performance and (b) determine certain elements of management's incentive compensation.
The company's management believes that core sales, as reflected in the Currency Analysis, is useful to investors because it demonstrates the effect of foreign currency on reported sales. The effect of foreign currency on reported sales is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference in these two amounts being the change in core sales and the difference between the change in as reported sales and the change in core sales reported as the currency impact. The company believes that providing adjusted core sales excluding the impacts of product line exits and timing shifts related to implementations of SAP is useful in that it helps investors understand underlying business trends. The company's management believes that "normalized" gross margin, "normalized" SG&A expense, "normalized" operating income and "normalized" tax rates, which exclude restructuring and restructuring-related expenses and one-time events such as costs related to product recalls, the extinguishment of debt, certain tax benefits and charges, impairment charges, discontinued operations and certain other items, are useful because they provide investors with a meaningful perspective on the current underlying performance of the company's core ongoing operations. The company's management believes that "normalized" earnings per share, which also excludes restructuring and restructuring-related charges and one-time events such as losses related to product recalls, monetary asset devaluations resulting from the adoption of the SICAD I Venezuelan Bolivar exchange rate, the extinguishments of debt, tax benefits and charges, impairment charges, discontinued operations and certain other items, is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance. The company also uses both core sales and normalized earnings per share as two of the three performance criteria in its management cash bonus plan.
The company determines the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.
While the company believes that these non-GAAP financial measures are useful in evaluating the company's performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, changes in exchange rates, product recalls and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; product liability, product recalls or regulatory actions (including the ultimate resolution of the potential recall of harness buckles on certain infant car seats); our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; a failure of one of our key information technology systems or related controls; the potential inability to attract, retain and motivate key employees; future events that could adversely affect the value of our assets and require impairment charges; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations; and those factors listed in the company's most recently filed Annual Report on Form 10-K filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.
| Newell Rubbermaid Inc. | | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | | (in millions, except per share data) |
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| Three Months Ended March 31, |
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| YOY |
| 2014 | 2013 | % Change |
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| | Net sales | $ 1,232.2 | $ 1,240.8 | (0.7)% | | Cost of products sold | 762.9 | 767.2 |
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| | GROSS MARGIN | 469.3 | 473.6 | (0.9)% | | % of sales | 38.1% | 38.2% |
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| | Selling, general & administrative expenses | 352.1 | 341.4 | 3.1% | | % of sales | 28.6% | 27.5% |
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| | Restructuring costs | 12.0 | 34.4 |
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| | OPERATING INCOME | 105.2 | 97.8 | 7.6% | | % of sales | 8.5% | 7.9% |
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| | Nonoperating expenses: |
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| | Interest expense, net | 14.4 | 14.6 |
| | Other expense, net | 40.0 | 13.0 |
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| 54.4 | 27.6 | 97.1% |
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| | INCOME BEFORE INCOME TAXES | 50.8 | 70.2 | (27.6)% | | % of sales | 4.1% | 5.7% |
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| | Income taxes | (1.3) | 6.4 | NMF | | Effective rate | NMF | 9.1% |
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| | NET INCOME FROM CONTINUING OPERATIONS | 52.1 | 63.8 | (18.3)% | | % of sales | 4.2% | 5.1% |
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| | Income (loss) from discontinued operations, net of tax | 0.8 | (9.6) |
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| | NET INCOME | $ 52.9 | $ 54.2 | (2.4)% |
| 4.3% | 4.4% |
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| | EARNINGS PER SHARE: |
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| | Basic |
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| | Income from continuing operations | $ 0.19 | $ 0.22 |
| | Income (loss) from discontinued operations | $ -- | $ (0.03) |
| | Net income | $ 0.19 | $ 0.19 |
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| | Diluted |
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| | Income from continuing operations | $ 0.18 | $ 0.22 |
| | Income (loss) from discontinued operations | $ -- | $ (0.03) |
| | Net income | $ 0.19 | $ 0.19 |
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| | AVERAGE SHARES OUTSTANDING: |
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| | Basic | 280.9 | 290.0 |
| | Diluted | 283.8 | 293.1 |
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| | NMF - Not meaningful |
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| | Newell Rubbermaid Inc. | | RECONCILIATION OF GAAP AND NON-GAAP INFORMATION | | CERTAIN LINE ITEMS | | (in millions, except per share data) |
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| Three Months Ended March 31, 2014 |
| GAAP Measure |
| Restructuring and | Charge resulting from |
| Non-GAAP Measure |
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| Product | restructuring-related | the devaluation of the | Discontinued |
| Percentage |
| Reported | recall costs (1) | costs (2) | Venezuelan Bolivar (3) | operations (4) | Normalized* | of Sales |
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| | Cost of products sold | $ 762.9 | $ (8.6) | $ -- | $ -- | $ -- | $ 754.3 | 61.2% |
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| | Gross margin | $ 469.3 | $ 8.6 | $ -- | $ -- | $ -- | $ 477.9 | 38.8% |
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| | Selling, general & administrative expenses | $ 352.1 | $ (2.4) | $ (7.7) | $ -- | $ -- | $ 342.0 | 27.8% |
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| | Operating income | $ 105.2 | $ 11.0 | $ 19.7 | $ -- | $ -- | $ 135.9 | 11.0% |
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| | Nonoperating expenses | $ 54.4 | $ -- | $ -- | $ (38.7) | $ -- | $ 15.7 |
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| | Income before income taxes | $ 50.8 | $ 11.0 | $ 19.7 | $ 38.7 | $ -- | $ 120.2 |
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| | Income taxes (5) | $ (1.3) | $ 4.0 | $ 5.5 | $ 13.9 | $ -- | $ 22.1 |
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| | Net income from continuing operations | $ 52.1 | $ 7.0 | $ 14.2 | $ 24.8 | $ -- | $ 98.1 |
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| | Net income | $ 52.9 | $ 7.0 | $ 14.2 | $ 24.8 | $ (0.8) | $ 98.1 |
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| | Diluted earnings per share** | $ 0.19 | $ 0.02 | $ 0.05 | $ 0.09 | $ (0.00) | $ 0.35 |
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| Three Months Ended March 31, 2013 |
| GAAP Measure | Restructuring and | Charge resulting from |
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| Non-GAAP Measure |
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| restructuring-related | the devaluation of the | Discontinued | Non-recurring |
| Percentage |
| Reported | costs (2) | Venezuelan Bolivar (3) | operations (4) | tax items (6) | Normalized* | of Sales |
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| | Selling, general & administrative expenses | $ 341.4 | $ (6.6) | $ -- | $ -- | $ -- | $ 334.8 | 27.0% |
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| | Operating income | $ 97.8 | $ 41.0 | $ -- | $ -- | $ -- | $ 138.8 | 11.2% |
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| | Nonoperating expenses | $ 27.6 | $ -- | $ (11.1) | $ -- | $ -- | $ 16.5 |
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| | Income before income taxes | $ 70.2 | $ 41.0 | $ 11.1 | $ -- | $ -- | $ 122.3 |
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| | Income taxes (5) | $ 6.4 | $ 4.9 | $ 4.1 | $ -- | $ 4.8 | $ 20.2 |
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| | Net income from continuing operations | $ 63.8 | $ 36.1 | $ 7.0 | $ -- | $ (4.8) | $ 102.1 |
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| | Net income | $ 54.2 | $ 36.1 | $ 7.0 | $ 9.6 | $ (4.8) | $ 102.1 |
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| | Diluted earnings per share** | $ 0.19 | $ 0.12 | $ 0.02 | $ 0.03 | $ (0.02) | $ 0.35 |
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| | * Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. | | **Totals may not add due to rounding. |
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| | (1) During the three months ended March 31, 2014, the Company recognized an $11.0 million charge associated with the Graco product recall. |
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| | (2) Restructuring and restructuring-related costs during the three months ended March 31, 2014 include $7.7 million of organizational change implementation and restructuring-related costs and $12.0 million of restructuring costs incurred in connection with Project Renewal. Restructuring and restructuring-related costs during the three months ended March 31, 2013 include $6.6 million of organizational change implementation and restructuring-related costs and $34.4 million of restructuring costs incurred in connection with Project Renewal. |
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| | (3) During the three months ended March 31, 2014 and 2013, the Company recognized foreign exchange losses of $38.7 million and $11.1 million, respectively, resulting from the devaluation of the Venezuelan Bolivar, which under hyperinflationary accounting is recorded in the Statement of Operations. |
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| | (4) During the three months ended March 31, 2014, the Company recognized net income of $0.8 million in discontinued operations. During the three months ended March 31, 2013, the Company recognized a net loss, including impairments, of $9.6 million in discontinued operations relating to the operations of the Hardware and Teach businesses. |
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| | (5) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. |
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| | (6) During the three months ended March 31, 2013, the Company recognized a non-recurring income tax benefit of $4.8 million resulting from the resolution of various income tax contingencies. |
| | Newell Rubbermaid Inc. | | CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | | (in millions) |
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| March 31, | March 31, | | Assets: | 2014 | 2013 |
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| | Cash and cash equivalents | $ 136.8 | $ 174.2 | | Accounts receivable, net | 973.1 | 1,021.3 | | Inventories, net | 801.3 | 815.0 | | Deferred income taxes | 121.3 | 155.4 | | Prepaid expenses and other | 198.8 | 190.7 |
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| | Total Current Assets | 2,231.3 | 2,356.6 |
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| | Property, plant and equipment, net | 541.3 | 549.5 | | Goodwill | 2,362.0 | 2,340.4 | | Other intangible assets, net | 606.5 | 642.6 | | Other assets | 252.8 | 308.1 |
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| | Total Assets | $ 5,993.9 | $ 6,197.2 |
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| | Liabilities and Stockholders' Equity: |
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| | Accounts payable | $ 542.8 | $ 570.1 | | Accrued compensation | 99.6 | 103.0 | | Other accrued liabilities | 590.9 | 588.5 | | Short-term debt | 318.7 | 411.8 | | Current portion of long-term debt | 0.8 | 1.2 |
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| | Total Current Liabilities | 1,552.8 | 1,674.6 |
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| | Long-term debt | 1,666.7 | 1,699.6 | | Other noncurrent liabilities | 700.9 | 834.4 |
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| | Stockholders' Equity - Parent | 2,070.0 | 1,985.1 | | Stockholders' Equity - Noncontrolling Interests | 3.5 | 3.5 |
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| | Total Stockholders' Equity | 2,073.5 | 1,988.6 |
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| | Total Liabilities and Stockholders' Equity | $ 5,993.9 | $ 6,197.2 |
| | Newell Rubbermaid Inc. | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | | (in millions) |
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| Three Months Ended March 31, |
| 2014 | 2013 | | Operating Activities: |
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| | Net income | $ 52.9 | $ 54.2 | | Adjustments to reconcile net income to net cash used in operating activities: |
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| | Depreciation and amortization | 38.1 | 39.8 | | Net (gain) loss from sale of discontinued operations, including impairments | (2.2) | 12.4 | | Non-cash restructuring costs | 1.0 | -- | | Deferred income taxes | 14.6 | 38.9 | | Stock-based compensation expense | 7.0 | 9.4 | | Other, net | 45.0 | 8.9 | | Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: |
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| | Accounts receivable | 130.5 | 80.3 | | Inventories | (115.8) | (123.4) | | Accounts payable | (16.1) | 45.1 | | Accrued liabilities and other | (247.1) | (288.7) | | Net cash used in operating activities | $ (92.1) | $ (123.1) |
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| | Investing Activities: |
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| | Capital expenditures | (31.9) | (33.6) | | Other | (0.3) | (0.3) | | Net cash used in investing activities | $ (32.2) | $ (33.9) |
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| | Financing Activities: |
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| | Net short-term borrowings | $ 144.9 | $ 200.7 | | Repurchase and retirement of shares of common stock | (44.4) | (33.8) | | Cash dividends | (42.9) | (44.5) | | Excess tax benefits related to stock-based compensation | 5.6 | 9.1 | | Other stock-based compensation activity, net | 10.7 | 16.6 | | Net cash provided by financing activities | $ 73.9 | $ 148.1 |
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| | Currency rate effect on cash and cash equivalents | $ (39.1) | $ (0.7) |
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| | Decrease in cash and cash equivalents | $ (89.5) | $ (9.6) | | Cash and cash equivalents at beginning of period | 226.3 | 183.8 | | Cash and cash equivalents at end of period | $ 136.8 | $ 174.2 |
| | Newell Rubbermaid Inc. | | Financial Worksheet- Segment Reporting | | (In Millions) |
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| Reconciliation (1,2) |
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| Reconciliation (1) |
| Year-over-year changes |
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| Reported | Excluded | Normalized | Operating |
| Reported | Excluded | Normalized | Operating | Net Sales | Normalized OI |
| Net Sales | OI | Items | OI | Margin | Net Sales | OI | Items | OI | Margin | $ | % | $ | % | | Q1: |
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| | Writing | $ 361.3 | $ 77.1 | $ -- | $ 77.1 | 21.3% | $ 340.6 | $ 63.2 | $ -- | $ 63.2 | 18.6% | $ 20.7 | 6.1% | $ 13.9 | 22.0% | | Home Solutions | 321.2 | 26.3 | -- | 26.3 | 8.2% | 338.9 | 34.1 | -- | 34.1 | 10.1% | (17.7) | (5.2)% | (7.8) | (22.9)% | | Tools | 187.8 | 21.4 | -- | 21.4 | 11.4% | 188.6 | 18.7 | -- | 18.7 | 9.9% | (0.8) | (0.4)% | 2.7 | 14.4% | | Commercial Products | 182.6 | 13.8 | -- | 13.8 | 7.6% | 183.1 | 21.6 | -- | 21.6 | 11.8% | (0.5) | (0.3)% | (7.8) | (36.1)% | | Baby & Parenting | 179.3 | 5.4 | 11.0 | 16.4 | 9.1% | 189.6 | 23.9 | -- | 23.9 | 12.6% | (10.3) | (5.4)% | (7.5) | (31.4)% | | Restructuring Costs | -- | (12.0) | 12.0 | -- |
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| | Corporate | -- | (26.8) | 7.7 | (19.1) |
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| 3.6 | 15.9% | | Total | $ 1,232.2 | $ 105.2 | $ 30.7 | $ 135.9 | 11.0% | $ 1,240.8 | $ 97.8 | $ 41.0 | $ 138.8 | 11.2% | $ (8.6) | (0.7)% | $ (2.9) | (2.1)% |
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| | (1) Excluded items consist of organizational change implementation, restructuring-related, and restructuring costs. Organizational change implementation and restructuring-related costs of $7.7 million and restructuring costs of $12.0 million incurred during 2014 relate to Project Renewal. For 2013, organizational change implementation and restructuring-related costs of $6.6 million and restructuring costs of $34.4 million relate to Project Renewal. |
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| | (2) Baby & Parenting normalized operating income for the three months ended March 31, 2014 excludes charges of $11.0 million relating to the Graco product recall. |
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| | Newell Rubbermaid Inc. |
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| | Three Months Ended March 31, 2014 |
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| | Currency Analysis |
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| | Writing | $ 361.3 | $ 340.6 | $ 20.7 | $ 364.5 | $ 337.6 | $ 26.9 | $ (6.2) | 8.0% | 6.1% | (1.9)% | | Home Solutions | 321.2 | 338.9 | (17.7) | 323.1 | 338.2 | (15.1) | (2.6) | (4.5)% | (5.2)% | (0.7)% | | Tools | 187.8 | 188.6 | (0.8) | 190.2 | 185.8 | 4.4 | (5.2) | 2.4% | (0.4)% | (2.8)% | | Commercial Products | 182.6 | 183.1 | (0.5) | 183.1 | 182.8 | 0.3 | (0.8) | 0.2% | (0.3)% | (0.5)% | | Baby & Parenting | 179.3 | 189.6 | (10.3) | 179.9 | 188.2 | (8.3) | (2.0) | (4.4)% | (5.4)% | (1.0)% |
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| | Total Company | $ 1,232.2 | $ 1,240.8 | $ (8.6) | $ 1,240.8 | $ 1,232.6 | $ 8.2 | $ (16.8) | 0.7% | (0.7)% | (1.4)% |
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| | United States | $ 831.2 | $ 818.9 | $ 12.3 | $ 831.2 | $ 818.9 | $ 12.3 | $ -- | 1.5% | 1.5% | 0.0% | | Canada | 53.0 | 61.8 | (8.8) | 56.5 | 60.7 | (4.2) | (4.6) | (6.9)% | (14.2)% | (7.3)% | | Total North America | 884.2 | 880.7 | 3.5 | 887.7 | 879.6 | 8.1 | (4.6) | 0.9% | 0.4% | (0.5)% |
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| | Europe, Middle East and Africa | 164.2 | 167.1 | (2.9) | 159.5 | 168.0 | (8.5) | 5.6 | (5.1)% | (1.7)% | 3.4% | | Latin America | 92.0 | 93.2 | (1.2) | 97.8 | 88.9 | 8.9 | (10.1) | 10.0% | (1.3)% | (11.3)% | | Asia Pacific | 91.8 | 99.8 | (8.0) | 95.8 | 96.1 | (0.3) | (7.7) | (0.3)% | (8.0)% | (7.7)% | | Total International | 348.0 | 360.1 | (12.1) | 353.1 | 353.0 | 0.1 | (12.2) | 0.0% | (3.4)% | (3.4)% |
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| | Total Company | $ 1,232.2 | $ 1,240.8 | $ (8.6) | $ 1,240.8 | $ 1,232.6 | $ 8.2 | $ (16.8) | 0.7% | (0.7)% | (1.4)% |
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| | Tools | $ 190.2 | $ 185.8 | $ (5.0) | $ 180.8 | $ 9.4 | 5.2% |
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| | LATAM | $ 97.8 | $ 88.9 | $ (5.0) | $ 83.9 | $ 13.9 | 16.6% |
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| | EMEA | $ 159.5 | $ 6.3 | $ 165.8 | $ 168.0 | $ (2.2) | (1.3)% |
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| | (1) "Core Sales" is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference between the change in "As Reported" sales and the change in "Core Sales" reported in the table as "Currency Impact". |
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| | (2) In contemplation of the Brazil SAP conversion in April 2013, the Company communicated with key customers about their interest in accelerating orders to mitigate the risk of potential business disruption. The Company estimated the impact of the timing shift related to the Brazil SAP conversion by tracking orders from customers that accelerated their normal order patterns as a result of the Company's communications. |
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| | (3) As part of Project Renewal, the Company exited certain product lines in EMEA that negatively impacted first quarter 2014 sales by an estimated $6.3 million. |
Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
David Doolittle
Vice President, Global Communications
(770) 418-7519 |
| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Dr_of_Microcaps | 7/25/2014 12:22:29 AM | | | | | | Newell Rubbermaid to Acquire Contigo(R) and Avex(R) Beverage Container BrandsFirst Significant Acquisition Since 2008
Newell RubbermaidJuly 21, 2014 9:29 AM
ATLANTA, July 21, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) has signed a definitive agreement to acquire Ignite Holdings, LLC ("Ignite") from North Castle Partners, a leading private equity firm focused on consumer businesses that promote healthy, active and sustainable living.
Ignite is a leading designer and marketer of durable beverage containers sold under the Contigo and Avex brands. Ignite is expected to deliver $125 million of net sales in 2014 and has a strong growth track record in the on-the-go thermal and hydration beverage containers market, achieving a historical four year sales CAGR of 35 percent. The purchase price is $308 million, subject to customary working capital adjustments. The acquisition is expected to be accretive to Newell Rubbermaid's growth rate, normalized operating income margin and normalized EPS in the first year. Newell Rubbermaid plans to reinvest a portion of Ignite's profitability to more aggressively build the Contigo and Avex brands.
Newell Rubbermaid President and CEO Michael Polk said, "Ignite has a great track record of growth, establishing a leading share position in two of the fastest growing consumer durable categories in North America. Their commitment to leverage great design to deliver differentiated products is evident in their results. The acquisition of Ignite marks the next step in the Growth Game Plan as we transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company."
The acquired business will become part of the Home Solutions segment with Contigo and Avex joining the company's Rubbermaid(R), Calphalon(R), Goody(R) and Levolor(R) brands.
"Ignite's focus on design, product performance and constant innovation is a seamless fit with our Growth Game Plan strategy," said Mark Tarchetti, Chief Development Officer. "The Contigo brand has set the standard for the category and we are proud to make it part of our portfolio. This acquisition creates the opportunity to build a global beverage container business leveraging both the premium Contigo and mainstream Rubbermaid brands. We intend to invest behind the business to build on Ignite's current strong momentum, expanding product lines, channels of distribution and geographic footprint over time."
Sami El-Saden, CEO of Ignite, said "We are delighted to have found a long term strategic owner for the business who shares our pride in the achievements and strength of the company, but can bring a new level of investment and global perspective."
The acquisition is expected to be financed through a combination of organic cash flow and available borrowings and is expected to close by the end of the third quarter of 2014, subject to customary conditions and regulatory approvals. Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid on this transaction.
Additional information about the transaction is available under Events and Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
About Ignite
Ignite, a company with a passion for great products, is a global leader and recognized innovator in two of the fastest growing segments of the housewares industry: reusable, environmentally friendly thermal mugs and hydration bottles. Through its Contigo(R) and Avex(R) brands, Ignite has successfully created a diverse portfolio of innovative products that appeal to an extremely loyal and expanding consumer base. Ignite has a strong global presence and currently sells its products in over 50 countries across club, mass, sporting goods, specialty, direct-to-consumer, and exclusive strategic partnerships. Ignite is headquartered in Chicago, Il. For more information, visit www.gocontigo.com
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Forward-Looking Statements
This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Factors that may affect actual results include, but are not limited to: whether and when the required regulatory approvals will be obtained, whether and when the closing conditions will be satisfied and whether and when the transaction will close, whether and when the Company will be able to realize the expected financial results and accretive effect of the transaction, and how customers, competitors, suppliers and employees will react to the transaction. Please refer to the cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Quarterly Report on Form 10-Q as well as the risk factors set forth in Exhibit 99.1 thereto, for other factors that could affect our business.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
+1 (770) 418-7723
David Doolittle
Vice President, Global Communications
+1 (770) 418-7519
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| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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