News Releases

H.B. Fuller Reports First Quarter Fiscal Year 2020 Results
Diluted EPS of $0.19; $0.34 adjusted EPS flat to prior year, including estimated $0.06 COVID-19 impact
Adjusted EBITDA of $78 million; in line with guidance
Cash flow from operations increased significantly year-over-year; 2020 debt paydown on track to target

ST. PAUL, Minn., March 25, 2020 /PRNewswire/ -- H.B. Fuller Company (NYSE: FUL) today reported financial results for the first quarter ended Feb. 29, 2020.

Items of Note for First Quarter 2020

  • H.B. Fuller delivered strong operational performance in the quarter reflecting its robust global supply chain and business exposure to broadly diversified end markets and goods that are considered essential during the COVID-19 pandemic. During the quarter, the company rapidly implemented health, safety and business continuity plans that are driving positive results.
  • Reported diluted earnings per share (EPS) were $0.19; adjusted EPS of $0.34 was flat year over year. Excluding an estimated $0.06 impact related to the COVID-19 outbreak, adjusted EPS would have been up by more than 15%.
  • Organic revenue declined 1.3% versus prior year; would have been up approximately 1% year over year, with volume growth in all business segments, excluding an estimated $15 million of sales impact in China related to COVID-19.
  • Construction Adhesives returned to growth and double-digit adjusted EBITDA margin in the quarter, on track with planned improvements.
  • Restructuring savings were $6 million in the quarter. The company has accelerated projects and increased total expected savings to the high end of the $25 to $35 million range previously provided.
  • Significant year-on-year increase in cash flow from operations driven by strong working capital improvements; debt repayment remains on track to $200 million target for 2020.

Items of Note for 2020 Planning Assumptions

  • H.B. Fuller plays an important role in the supply chain for many products which are vital in the COVID-19 pandemic, with operations currently considered to be supporting "essential products" under applicable governmental guidelines anticipated to continue through the pandemic. The company is experiencing increased demand for hygiene, health and consumer products, such as baby diapers, food and e-Commerce packaging, paper, tissues, towels, and filtration. Durable products for industries such as solar energy and transportation are expected to have temporary significant declines in demand. H.B. Fuller has very limited business exposure to travel and services industries, which are expected to experience extreme negative impacts related to COVID-19.
  • While the extent of the impact of COVID-19 on global economic factors is uncertain and continues to rapidly evolve, based on current economic views, the company's experience in China, current order patterns around the globe and assumptions for expected impact of COVID-19 on global commercial activity, the company anticipates revenue in the second quarter will be down 5% to 15% year over year, and estimates adjusted EBITDA will be approximately $90 million to $100 million.
  • The company is also preparing for recessionary forces to result in lower revenue in the second half of 2020, and planning for declines in raw material costs in the second half of the year, given supply-demand dynamics for specialty chemicals and petrochemical feedstock costs impacted by oil below $35/barrel.
  • As a result of the COVID-19 pandemic the company is no longer providing specific full year guidance except that the company remains committed to managing working capital and cash costs in order to reduce debt by $200 million in 2020. Contingency plans are available as necessary for adjustments in expenses, working capital and capital expense to achieve this target.
  • The company has more than adequate liquidity to meet any foreseeable needs, including a $400 million revolving credit facility with a feature that allows for an increase of the facility by $300 million dollars if needed. The company also has ample room under its debt covenants using significantly conservative scenarios.

Summary of First Quarter 2020 Results
Net revenue of $647 million decreased 3.9% compared with the first quarter of 2019. Foreign currency exchange rates and the sale of the surfactants, thickeners and dispersants business negatively impacted revenues by 2.6% on a combined basis. Organic revenue, which excludes impacts from foreign currency and divestitures, was down 1.3% versus last year. Organic revenue growth in Construction Adhesives (CA) partially offset a decline in Engineering Adhesives (EA) and flat revenues in Hygiene, Health and Consumables Adhesives (HHC.) The decline in organic revenue was driven by an impact on sales resulting from the COVID-19 pandemic. The company estimates the shutdown in China following the outbreak impacted sales in region by approximately $15 million in the quarter, including an estimated $12 million in Engineering Adhesives and an estimated $3 million in HHC. Excluding this impact, volumes would have increased versus last year in all segments.

Gross profit margin was 26.3%. Adjusted gross profit margin of 26.5% was down 50 basis points versus last year. The decline was due to lower revenues and unfavorable product mix related to impacts from COVID-19 and was partially offset by favorable raw material costs. Selling, General and Administrative (SG&A) expense was $142 million. Adjusted SG&A expense of $135 million declined by 3% compared with the same period last year, driven by cost savings realized from the company's business realignment to three global business units.

As a result of these factors, net income attributable to H.B. Fuller in the quarter was $10 million, or $0.19 per diluted share. Adjusted net income attributable to H.B. Fuller was $18 million, or $0.34 of adjusted EPS, consistent with $18 million, or $0.34 of adjusted EPS in the prior year. Adjusted EBITDA was $78 million in the quarter, compared with $83 million in the same period last year, and adjusted EBITDA margin was 12.0% versus 12.3% in the prior year. The company estimates that COVID-19 impacted adjusted EPS and adjusted EBITDA by approximately $0.06, and $4.5 million, respectively, versus last year.

"Despite the outbreak of COVID-19 and resulting shutdown across China which began on January 23rd, H.B. Fuller delivered strong performance in the first quarter," said Jim Owens, president and chief executive officer. "We believe that our robust global supply chain and nimbleness affords us a significant competitive advantage, which was evident in our first quarter results. Our results also reflected operational improvements and efficiencies following our realignment to three global business units. As forecasted, Construction Adhesives returned to growth and double-digit EBITDA margin, driven by an improved growth portfolio and actions we took last year. We continued to drive strong cash flow performance with a significant year-over-year increase in cash flow from operations."

Key Balance Sheet and Cash Flow Items
At the end of the first quarter of 2020, the company had cash on hand of $79 million and total debt equal to $1,973 million. This compares to cash and debt levels equal to $112 million and $1,979 million, respectively, at the end of the fourth quarter of 2019. Cash flow from operations increased to $34 million in the first quarter of 2020 from $0.5 million in the first quarter of 2019, driven by improved working capital management. Capital expenditures were $32 million in the quarter, versus $15 million in the fourth quarter of fiscal 2019, reflecting timing of capital projects and expenditures related to growth initiatives. The first quarter expenditures were in line with the company's planned capital investment for the fiscal year of $85 million

COVID-19 Response
As the shutdown in China began, H.B. Fuller quickly implemented business continuity plans for employees, supply chains and production to enable customer deliveries. Around the world, H.B. Fuller is following all government requirements as they are issued. To date, H.B. Fuller's factories are open and operational, delivering adhesives considered vital to support many customers who are providing essential goods during the pandemic.

"We have built plans that anticipate the short-term impacts of the COVID-19 pandemic as well as recessionary impacts that are expected following the pandemic," said Owens. "Our success in managing through the outbreak in China is a solid baseline informing our business continuity plans and enabling us to establish expectations and plans for potential impacts in the United States, Europe and the rest of the world. Our sustained leadership in the adhesives industry, the diversity of our business portfolio, the strength of our cash flow, and the plans we are implementing to improve the efficiency and ability of our company are enabling us to successfully manage through the crisis. Importantly, the fundamentals of our business plan and the execution of our strategy remain solidly intact which will also drive long term value for our shareholders."

"Adhesives are essential during this crisis. H.B. Fuller plays an important role in the supply chain for hygiene, health and consumer products, as well as advanced adhesive applications that support digital connectivity. We continue to utilize our vast global resources and make extensive efforts to meet demand for these vital products. I credit our entire team around the world for working to meet our customers' needs while preserving our health and safety, with extraordinary collaboration and unwavering focus," continued Owens.

Conference Call
The Company will host an investor conference call to discuss first quarter results on Thursday, March 26, 2020, at 10:30 a.m. EDT. The conference call audio and accompanying presentation slides will be available to interested parties via a simultaneous webcast, and may be accessed from the company's website at https://investors.hbfuller.com/calendar. Participants should access the webcast prior to the start of the call to register for the event and install and test any necessary software. The webcast and presentation will be archived on the Company's website. A telephone replay of the conference call will be available approximately 1 hour after the conclusion of the call, through Apr. 23, 2020. To access the telephone replay dial 1-877-344-7529 or 1-412-317-0088 and enter access code 10140046.

Regulation G
The information presented in this earnings release regarding segment operating income, adjusted gross profit, adjusted gross profit margin, adjusted selling, general and administrative expense, adjusted income before income taxes and income from equity investments, adjusted income taxes, adjusted effective tax rate, adjusted net income, adjusted diluted earnings per share and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) does not conform to generally accepted accounting principles (GAAP) and should not be construed as an alternative to the reported results determined in accordance with GAAP. Management has included this non-GAAP information to assist in understanding the operating performance of the company and its operating segments as well as the comparability of results to the results of other companies. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported GAAP results in the "Regulation G Reconciliation" tables in this press release with the exception of our forward-looking non-GAAP measures contained above in our fiscal 2020 Planning Assumptions, which the company cannot reconcile to forward-looking GAAP results without unreasonable effort.

About H.B. Fuller
Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2019 net revenue of $2.9 billion, H.B. Fuller's commitment to innovation brings together people, products and processes that answer and solve some of the world's biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in electronics, disposable hygiene, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. And, our promise to our people connects them with opportunities to innovate and thrive. For more information, visit us at https://www.hbfuller.com/.

Safe Harbor for Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: the consequences of the COVID-19 outbreak and other pandemics; the substantial amount of debt we have incurred to finance our acquisition of Royal, our ability to repay or refinance it or incur additional debt in the future, our need for a significant amount of cash to service and repay the debt and to pay dividends on our common stock, and the effect of restrictions contained in our debt agreements that limit the discretion of management in operating the business or ability to pay dividends; various risks to stockholders of not receiving dividends and risks to our ability to pursue growth opportunities if we continue to pay dividends according to the current dividend policy; we may be unable to achieve expected synergies, cost savings and operating efficiencies from the Royal transaction or the business realignment within the expected time frames or at all; we may be unable to successfully integrate Royal's operations into our own, or such integration may be more difficult, time consuming or costly than expected; the ability to effectively implement Project ONE;  political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; geographic and product mix; availability and price of raw materials; the company's relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and environmental matters; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Many of the foregoing risks and uncertainties are, and will be, exacerbated by COVID-19 and any worsening of the global business and economic environment as a result.

Further information about the various risks and uncertainties can be found in the company's SEC 10-K filing for the fiscal year ended November 30, 2019. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the company and the regions where the company does business make it difficult to determine with certainty the increases or decreases in net revenue resulting from changes in the volume of products sold, currency impact, changes in product mix, and selling prices. However, managements' best estimate of these changes as well as changes in other factors have been included.

H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)












Three Months Ended


Percent of


Three Months Ended


Percent of


February 29, 2020


Net Revenue


March 2, 2019


Net Revenue

Net revenue

$

646,564


100.0%


$

672,935


100.0%

Cost of sales


(476,302)


(73.7%)



(493,010)


(73.3%)

Gross profit


170,262


26.3%



179,925


26.7%











Selling, general and administrative expenses


(141,509)


(21.9%)



(145,713)


(21.7%)





















Other income (expense), net


4,969


0.8%



3,365


0.5%

Interest expense


(22,757)


(3.5%)



(26,807)


(4.0%)

Interest income


2,918


0.5%



3,053


0.5%

Income before income taxes and income from equity method investments


13,883


2.1%



13,823


2.1%











Income tax (expense) benefit


(5,611)


(0.9%)



(3,140)


(0.5%)











Income from equity method investments


1,634


0.3%



1,565


0.2%











Net income including non-controlling interests


9,906


1.5%



12,248


1.8%











Net (loss) income attributable to non-controlling interests


(11)


(0.0%)



(4)


(0.0%)

Net income attributable to H.B. Fuller

$

9,895


1.5%


$

12,244


1.8%











Basic income per common share attributable to H.B. Fuller

$

0.19




$

0.24



Diluted income per common share attributable to H.B. Fuller

$

0.19




$

0.24













Weighted-average common shares outstanding:










Basic


51,295





50,752



Diluted


52,580





51,901













Dividends declared per common share

$

0.160




$

0.155
























 

Selected Balance Sheet Information (subject to change prior to filing of the Company's Quarterly Report on Form 10-Q)











February 29, 2020


November 30, 2019


March 2, 2019

Cash & cash equivalents

$

78,738


$

112,191


$

113,476

Trade accounts receivable, net


457,826



493,181



478,326

Inventories


380,975



337,267



386,725

Trade payables


333,749



298,869



284,910

Total assets


4,025,266



3,985,734



4,166,100

Total debt


1,973,472



1,979,116



2,235,216

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)










Three Months Ended



February 29, 2020


March 2, 2019








Net income attributable to H.B. Fuller


$

9,895


$

12,244








Adjustments:







Acquisition project costs



268



84

Organizational realignment



3,604



350

Royal restructuring and integration



3,750



4,365

Tax reform



(44)



55

Project ONE



1,727



813

Other



(1,410)



(392)

Adjusted net income attributable to H.B. Fuller1



17,790



17,519








Add:







Interest expense



22,761



26,807

Interest income



(2,918)



(3,053)

Income taxes



5,592



6,050

Depreciation and amortization expenseA



34,552



35,528

Adjusted EBITDA1



77,777



82,851








Diluted Shares



52,580



51,901

Adjusted diluted income per common share attributable to H.B. Fuller1


$

0.34


$

0.34

Revenue


$

646,564


$

672,935

Adjusted EBITDA margin1



12.0%



12.3%

_______________














1 Adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Adjusted net income attributable to H.B. Fuller is defined as net income before the specific adjustments shown above. Adjusted diluted income per common share is defined as adjusted net income attributable to H.B. Fuller divided by the number of diluted common shares. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation, amortization and the specific adjustments shown above. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue. The table above provides a reconciliation of adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

A Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in Adjusted net income attributable to H.B. Fuller totaling ($33) and $(526) for the three months ended February 29, 2020 and March 2, 2019, respectively.

 

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

In thousands (unaudited)


(NMP: non-material percentage)







Three Months Ended


February 29, 2020


March 2, 2019

Net Revenue:






Hygiene, Health and Consumable Adhesives

$

312,512


$

319,854

Engineering Adhesives


248,895



264,372

Construction Adhesives


85,157



82,790

Corporate Unallocated


-



5,919

Total H.B. Fuller

$

646,564


$

672,935







Segment Operating Income:






Hygiene, Health and Consumable Adhesives

$

22,664


$

20,890

Engineering Adhesives


15,365



21,986

Construction Adhesives


(1,373)



(1,656)

Corporate Unallocated


(7,903)



(7,008)

Total H.B. Fuller

$

28,753


$

34,212







Adjusted EBITDA1






Hygiene, Health and Consumable Adhesives

$

35,896


$

33,709

Engineering Adhesives


30,916



37,574

Construction Adhesives


8,873



8,427

Corporate Unallocated


2,092



3,141

Total H.B. Fuller

$

77,777


$

82,851







Adjusted EBITDA Margin1






Hygiene, Health and Consumable Adhesives


11.5%



10.5%

Engineering Adhesives


12.4%



14.2%

Construction Adhesives


10.4%



10.2%

Corporate Unallocated


NMP



NMP

Total H.B. Fuller


12.0%



12.3%







 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)



Three Months Ended


February 29, 2020


March 2, 2019







Income before income taxes and income from equity method investments

$

13,883


$

13,823







Adjustments:






Acquisition project costs


213



115

Organizational realignment


2,865



475

Royal restructuring and integration


2,986



5,917

Tax reform


(35)



75

Project ONE


1,375



1,102

Other

$

473


$

502

Adjusted income before income taxes and income from equity method investments2 

$

21,760


$

22,009

_______________








2 Adjusted income before income taxes and income from equity investments is a non-GAAP financial measure. Adjusted income before income taxes and income from equity investments is defined as income before income taxes and income from equity investments before the specific adjustments shown above. The table above provides a reconciliation of adjusted income before income taxes and income from equity investments to income before income taxes and income from equity investments, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)








Three Months Ended


February 29, 2020


March 2, 2019







Income Taxes

$

(5,611)


$

(3,140)







Adjustments:






Acquisition project costs


55



(30)

Organizational realignment


739



(124)

Royal restructuring and integration


765



(1,552)

Tax reform


(9)



(20)

Project ONE


352



(289)

Other


(1,883)



(895)

Adjusted income taxes3

$

(5,592)


$

(6,050)







Adjusted income before income taxes and income from equity method investments

$

21,760


$

22,009

Adjusted effective income tax rate3


25.7%



27.5%

_______________












3 Adjusted income taxes and adjusted effective income tax rate are non-GAAP financial measures. Adjusted income taxes is defined as income taxes before the specific adjustments shown above. Adjusted effective income tax rate is defined as income taxes divided by adjusted income before income taxes and income from equity method investments. The table above provides a reconciliation of adjusted income taxes and adjusted effective income tax rate to income taxes, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)








Three Months Ended


February 29, 2020


March 2, 2019







Net revenue


646,564



672,935







Gross profit

$

170,262


$

179,925

Gross profit margin


26.3%



26.7%







Adjustments:






Organizational realignment


81



48

Royal restructuring and integration


900



1,419

Other


10



(3)

Adjusted gross profit4

$

171,253


$

181,389

Adjusted gross profit margin4


26.5%



27.0%

_______________












4 Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin is defined as gross profit and gross profit margin excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted gross profit and gross profit margin to gross profit and gross profit margin, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. 

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)








Three Months Ended


February 29, 2020


March 2, 2019







Selling, general and administrative expenses

$

(141,509)


$

(145,713)







Adjustments:






Acquisition project costs


213



115

Organizational realignment


2,784



427

Royal restructuring and integration


2,111



4,497

Tax reform


(35)



75

Project ONE


1,375



1,102

Other


462



506

Adjusted selling, general and administrative expenses5 

$

(134,599)


$

(138,991)

_______________








5 Adjusted selling, general and administrative expenses is a non-GAAP financial measure. Adjusted selling, general and administrative expenses is defined as selling, general and administrative expenses excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted selling, general and administrative expenses to selling, general and administrative expenses, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)






















Hygiene, Health
and
Consumable


Engineering


Construction





Corporate


H.B. Fuller



Adhesives


Adhesives


Adhesives


Total


Unallocated


Consolidated

Three Months Ended February 29, 2020



















Net income attributable to H.B. Fuller


$

24,487


$

16,835


$

(189)


$

41,133


$

(31,238)


$

9,895




















Adjustments:



















Acquisition project costs



-



-



-



-



268



268

Organizational realignment



-



-



-



-



3,604



3,604

Royal restructuring and integration



-



-



-



-



3,750



3,750

Tax reform



-



-



-



-



(44)



(44)

Project ONE



-



-



-



-



1,727



1,727

Other



-



-



-



-



(1,410)



(1,410)

Adjusted net income attributable to H.B. Fuller1



24,487



16,835



(189)



41,133



(23,343)



17,790




















Add:



















Interest expense



-



-



-



-



22,761



22,761

Interest income



-



-



-



-



(2,918)



(2,918)

Income taxes



-



-



-



-



5,592



5,592

Depreciation and amortization expense



11,409



14,081



9,062



34,552



-



34,552

Adjusted EBITDA1


$

35,896


$

30,916


$

8,873


$

75,685


$

2,092


$

77,777




















Revenue


$

312,512


$

248,895


$

85,157


$

646,564


$

-


$

646,564

Adjusted EBITDA Margin1



11.5%



12.4%



10.4%



11.7%



NMP



12.0%

______________


Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

 

NMP: non-material percentage

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)























Hygiene, Health
and
Consumable

Engineering


Construction





Corporate


H.B. Fuller




Adhesives

Adhesives


Adhesives


Total


Unallocated


Consolidated


Three Months Ended

March 2, 2019




















Net income attributable to H.B. Fuller


$

22,236


$

23,065


$

(669)


$

44,632


$

(32,388)


$

12,244






















Adjustments:




















Acquisition project costs



-



-



-



-



84



84


Organizational realignment



-



-



-



-



350



350


Royal restructuring and integration



-



-



-



-



4,365



4,365


Tax Reform



-



-



-



-



55



55


Project ONE



-



-



-



-



813



813


Other



-



-



-



-



(392)



(392)


Adjusted net income attributable to H.B. Fuller1



22,236



23,065



(669)



44,632



(27,113)



17,519






















Add:




















Interest expense



-



-



-



-



26,807



26,807


Interest income



-



-



-



-



(3,053)



(3,053)


Income taxes



-



-



-



-



6,050



6,050


Depreciation and amortization expense



11,473



14,509



9,096



35,078



450



35,528


Adjusted EBITDA1


$

33,709


$

37,574


$

8,427


$

79,710


$

3,141


$

82,851






















Revenue


$

319,854


$

264,372


$

82,790


$

667,016


$

5,919


$

672,935


Adjusted EBITDA Margin1



10.5%



14.2%



10.2%



12.0%



NMP



12.3%


______________





















Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

 

NMP: non-material percentage

 



H.B. FULLER COMPANY AND SUBSIDIARIES



SEGMENT FINANCIAL INFORMATION



NET REVENUE GROWTH (DECLINE)



(unaudited)











Three Months Ended







February 29, 2020









Total







Price


(1.1%)







Volume


(0.2%)







Organic Growth (Decline)


(1.3%)







M&A


(0.9%)







F/X


(1.7%)







Total H.B. Fuller net revenue decline


(3.9%)





























Three Months Ended





February 29, 2020



Net Revenue


F/X


 

M&A


Organic Growth
(Decline)

Hygiene, Health and Consumable Adhesives


(2.3%)


(2.3%)


0.0%


0.0%

Engineering Adhesives


(5.9%)


(1.5%)


0.0%


(4.4%)

Construction Adhesives


2.9%


(0.3%)


0.0%


3.2%

Corporate Unallocated


NMP


NMP


NMP


0.0%

Total H.B. Fuller


(3.9%)


(1.7%)


(0.9%)


(1.3%)






Total percentages may not add due to rounding






NMP: non-material percentage

 

H.B. FULLER COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)


(Unaudited)




February 29,



November 30,




2020



2019

Assets






Current assets:







Cash and cash equivalents

$

78,738


$

112,191


Trade receivables (net of allowances of $11,845 and $10,682, as of February 29, 2020 and November 30, 2019, respectively)


457,826



493,181


Inventories


380,975



337,267


Other current assets


110,691



90,723

Total current assets


1,028,230



1,033,362









Property, plant and equipment


1,323,664



1,304,231


Accumulated depreciation


(689,368)



(674,418)

Property, plant and equipment, net


634,296



629,813









Goodwill


1,281,249



1,281,808


Other intangibles, net


796,322



799,399


Other assets


285,169



241,352

Total assets

$

4,025,266


$

3,985,734








Liabilities, non-controlling interest and total equity






Current liabilities:







Notes payable

$

16,572


$

15,732


Current maturities of long-term debt


52,000



65,000


Trade payables


333,749



298,869


Accrued compensation


57,391



78,582


Income taxes payable


16,373



23,229


Other accrued expenses


67,230



60,745

Total current liabilities


543,315



542,157









Long-term debt, excluding current maturities


1,904,900



1,898,384


Accrued pension liabilities


81,241



80,214


Other liabilities


273,756



242,190

Total liabilities


2,803,212



2,762,945








Equity:






H.B. Fuller stockholders' equity:







Preferred stock (no shares outstanding) shares authorized – 10,045,900


-



-


Common stock, par value $1.00 per share, shares authorized – 160,000,000, shares outstanding – 51,407,204 and 51,241,190, as of Feb. 29, 2020 and Nov. 30, 2019, respectively


51,407



51,241


Additional paid-in capital


132,851



130,295


Retained earnings


1,385,993



1,384,411


Accumulated other comprehensive loss


(348,649)



(343,600)


    Total H.B. Fuller stockholders' equity


1,221,602



1,222,347

Non-controlling interest


452



442

Total equity


1,222,054



1,222,789

Total liabilities, non-controlling interest and total equity

$

4,025,266


$

3,985,734

 

SOURCE H.B. Fuller Company

For further information: Barbara Doyle, Investor Relations contact, 651-236-5023
Financial Expert
Chairman of the Board
NYSEFUL

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