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H.B. Fuller Reports First Quarter 2019 Results

March, 27, 2019
Reported Diluted EPS of $0.24; Adjusted Diluted EPS[1] of $0.34
Adjusted EBITDA[1] and Adjusted Diluted EPS[1] in-line with company guidance
Company reaffirms fiscal 2019 Adjusted EPS and EBITDA guidance

ST. PAUL, Minn., March 27, 2019 /PRNewswire/ -- H.B. Fuller Company (NYSE: FUL) today reported financial results for the first quarter that began on Dec. 2, 2018 and ended on March 2, 2019.

Items of Note for First Quarter 2019:

  • Net income was $12 million or $0.24 per diluted share (EPS), and adjusted net income was $17.5 million1, or $0.341 of EPS;
  • Adjusted EBITDA was $83 million1, in line with the company's guidance, and increased 40 basis points1 as a percent of revenue versus last year;
  • Gross margin was 26.7 percent, and adjusted gross margin was 27 percent4, up 90 basis points year-over-year, driven by pricing gains, raw material sourcing synergies and improved business mix;
  • Debt paydown was $12 million, on-track to meet the company's $200 million debt paydown target for the 2019 fiscal year. This is consistent with $11 million paydown in the first quarter last year, and $214 million total paydown in fiscal 2018;
  • The company also reaffirmed its prior guidance ranges for fiscal 2019 adjusted EPS and EBITDA.

Summary of First Quarter 2019 Results
Net revenue for the first quarter of 2019 of $673 million decreased 5.6 percent compared with the first quarter of 2018. Revenue excluding the impact of foreign currency was down 1 percent. Revenue performance was driven by favorable pricing, low-single digit organic growth in Americas Adhesives and EIMEA, and strong growth in electronics and aerospace solutions in the Engineering Adhesives segment, offset by a business slowdown in China, a weak December, portfolio repositioning in Construction Adhesives toward more profitable product lines, and softness in construction-related markets due to a colder and wetter winter.  

Gross profit margin was 26.7 percent and adjusted gross profit margin was 27 percent4, an increase of 90 basis points versus last year, driven by positive pricing contribution, raw material sourcing synergies from the integration of Royal Adhesives and improved business mix. Selling, General and Administrative (SG&A) expenses were $146 million. Adjusted SG&A expenses of $139 million5 decreased approximately 3 percent compared with the first quarter of 2018, driven by foreign currency exchange rates and continued focus on expense management. 

Net income attributable to H.B. Fuller for the first quarter of 2019 was $12 million, or $0.24 per diluted share, compared with $48 million, or $0.92 per diluted share in the same period last year. The decline was primarily due to a $35 million one-time, non-cash tax benefit in the first quarter of 2018 related to U.S. Tax Reform. Adjusted net income attributable to H.B. Fuller was $17.5 million1, or $0.341adjusted EPS, compared with $18 million1, or $0.351 adjusted EPS last year. Adjusted EBITDA was $83 million1, compared with $85 million1 in the prior year, and adjusted EBITDA margin of 12.3 percent1 increased versus 11.9 percent1 in the prior year.

"We are off to a solid start in 2019, due primarily to our ability to respond quickly to dynamic external conditions impacting our revenue," said Jim Owens, H.B. Fuller president and chief executive officer. "In the first quarter, we leveraged solid pricing carry-over from 2018 and acquisition synergies to deliver earnings results and debt paydown in-line with our guidance. We are building on our strategic market position around the world to win with customers in our targeted growth sectors. And, based on improving trends in several segments throughout the quarter, we foresee stronger organic growth sequentially in the second quarter and continued EBITDA improvement throughout the year, within our prior guidance ranges for fiscal 2019."

Balance Sheet and Cash Flow:
At the end of the first quarter of 2019, the company had cash on hand of $113 million and total debt equal to $2,235 million. This compares to cash and debt levels equal to $151 million and $2,248 million, respectively, in the fourth quarter of 2018. Cash flow from operations in the first quarter was $0.5 million compared with ($32) million for the same period in 2018, reflecting improved working capital management. Capital expenditures were $14 million in the first quarter of 2019, compared with $19 million in the same period last year.

Fiscal 2019 Guidance:
The company is reaffirming its prior fiscal year 2019 guidance for adjusted EPS in the range of $3.15 to $3.45, and its prior guidance for adjusted EBITDA in the range of $465 to $485 million.

This guidance excludes approximately $20 million of pre-tax expenses required to integrate the Royal business and other businesses acquired in 2017, and between $6 and $8 million of pre-tax expenses related to ERP development costs. The company's guidance could be impacted by further rule making relative to U.S. Tax Reform. A complete reconciliation of the non-GAAP financial information contained in our 2019 guidance is not being provided in accordance with the "unreasonable efforts" exception of Item 10(e)(1)(i)(B) of Regulation S-K of the Securities and Exchange Commission.

Accounting Changes Adopted Retrospectively in Fiscal 2018
In a Current Report on Form 8-K filed on March 25, 2019, the company provided restated unaudited historical financial information for the fiscal quarters and the fiscal year ended Dec. 1, 2018. This filing reflects accounting changes implemented in the first quarter ended March 2, 2019 as if the changes were implemented on a retrospective basis at the beginning of fiscal year 2018. The changes include an Accounting Standards Update related to accounting for pension plans and a customer realignment between operating segments. These changes have no impact on the company's consolidated net income, consolidated balance sheets or consolidated statements of cash flows previously reported.

Conference Call:
The company will host an investor conference call to discuss first quarter results on Thursday, March 28, 2019, at 10:30 a.m. Eastern U.S. time. 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. The slides will be made available approximately one hour prior to the start of the call. Participants should access the webcast 15 minutes 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 April 4, 2019. To access the telephone replay dial 1-877-344-7529 or 1-412-317-0088 and enter passcode 10129329.

Certain amounts presented in this release and the accompanying financial statements and data are preliminary and are subject to change in the company's Quarterly Report on Form 10-Q for the period ended March 2, 2019 when it is filed with the Securities and Exchange Commission.

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. 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 tables below with the exception of our forward-looking non-GAAP measures contained in our fiscal 2019 outlook, which are unknown or have not yet occurred.

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 2018 net revenue of over $3 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 document 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 Royal transaction may involve unexpected costs or liabilities; our business or stock price may suffer as a results of uncertainty surrounding the transaction; 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 on 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 and operating efficiencies from the transaction 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. Further information about the various risks and uncertainties can be found in the company's SEC 10-K filing for the fiscal year ended December 1, 2018. 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

 

March 2, 2019

 

Net Revenue

 

March 3, 2018

 

Net Revenue

Net revenue

$

672,935

 

100.0%

 

$

713,079

 

100.0%

Cost of sales

 

(493,010)

 

(73.3%)

   

(527,566)

 

(74.0%)

Gross profit

 

179,925

 

26.7%

   

185,513

 

26.0%

                   

Selling, general and administrative expenses

 

(145,713)

 

(21.7%)

   

(152,707)

 

(21.4%)

                   

Other income (expense), net

 

3,365

 

0.5%

   

4,912

 

0.7%

Interest expense

 

(26,807)

 

(4.0%)

   

(27,545)

 

(3.9%)

Interest income

 

3,053

 

0.5%

   

3,041

 

0.4%

Income before income taxes and income from equity method investments

 

13,823

 

2.1%

   

13,214

 

1.9%

                   

Income tax

 

(3,140)

 

(0.5%)

   

32,632

 

4.6%

                   

Income from equity method investments

 

1,565

 

0.2%

   

1,821

 

0.3%

Net income including non-controlling interests

 

12,248

 

1.8%

   

47,667

 

6.7%

                   

Net (loss) income attributable to non-controlling interests

 

(4)

 

(0.0%)

   

15

 

0.0%

Net income attributable to H.B. Fuller

$

12,244

 

1.8%

 

$

47,682

 

6.7%

                   

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

$

0.24

     

$

0.94

   

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

$

0.24

     

$

0.92

   
                   

Weighted-average common shares outstanding:

                 

Basic

 

50,752

       

50,471

   

Diluted

 

51,901

       

51,898

   
                   

Dividends declared per common share

$

0.155

     

$

0.150

   

 

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

                 
 

March 2, 2019

 

December 1, 2018

 

March 3, 2018

Cash & cash equivalents

$

113,476

 

$

150,793

 

$

132,478

Trade accounts receivable, net

 

478,326

   

495,008

   

466,876

Inventories

 

386,725

   

348,461

   

410,205

Trade payables

 

284,909

   

273,378

   

257,417

Total assets

 

4,166,100

   

4,176,314

   

4,374,053

Total debt

 

2,235,306

   

2,247,527

   

2,441,206

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

             
   

Three Months Ended

   

March 2, 2019

 

March 3, 2018

             

Net income attributable to H.B. Fuller

 

$

12,244

 

$

47,682

             

Adjustments:

           

Acquisition project costs

   

84

   

375

Tonsan call option agreement

   

-

   

125

Organizational realignment

   

350

   

748

Royal restructuring and integration

   

4,365

   

4,928

Tax reform

   

55

   

(35,186)

Project ONE

   

813

   

1,394

Other

   

(392)

   

(1,713)

Adjusted net income attributable to H.B. Fuller1

   

17,519

   

18,353

             

Add:

           

Interest expense

   

26,807

   

27,468

Interest income

   

(3,053)

   

(3,042)

Income taxes

   

6,050

   

5,733

Depreciation and amortization expense

   

35,528

   

36,665

Adjusted EBITDA1

   

82,851

   

85,177

             

Diluted shares

   

51,901

   

51,898

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

 

$

0.34

 

$

0.35

Revenue

 

$

672,935

 

$

713,079

Adjusted EBITDA margin1

   

12.3%

   

11.9%

_______________

           
             

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 GAAP.

 

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

In thousands (unaudited)

               
 

Three Months Ended

   

Three Months Ended

 
 

March 2, 2019

   

March 3, 2018

 

Net Revenue:

             

Americas Adhesives

$

241,950

   

$

250,963

 

EIMEA

 

156,513

     

168,978

 

Asia Pacific

 

63,388

     

66,609

 

Construction Adhesives

 

82,456

     

98,257

 

Engineering Adhesives

 

128,628

     

128,272

 

Total H.B. Fuller

$

672,935

   

$

713,079

 
               

Segment Operating Income:

             

Americas Adhesives

$

15,695

   

$

14,537

 

EIMEA

 

3,426

     

5,892

 

Asia Pacific

 

3,779

     

2,305

 

Construction Adhesives

 

(3,339)

     

461

 

Engineering Adhesives

 

14,651

     

9,611

 

Total H.B. Fuller

$

34,212

   

$

32,806

 
               

Adjusted EBITDA1

             

Americas Adhesives

$

29,244

   

$

29,639

 

EIMEA

 

12,918

     

16,259

 

Asia Pacific

 

6,605

     

5,287

 

Construction Adhesives

 

7,926

     

12,413

 

Engineering Adhesives

 

24,675

     

20,373

 

Corporate unallocated

 

1,483

     

1,206

 

Total H.B. Fuller

$

82,851

   

$

85,177

 
               

Adjusted EBITDA Margin1

             

Americas Adhesives

 

12.1

%

   

11.8

%

EIMEA

 

8.3

%

   

9.6

%

Asia Pacific

 

10.4

%

   

7.9

%

Construction Adhesives

 

9.6

%

   

12.6

%

Engineering Adhesives

 

19.2

%

   

15.9

%

Total H.B. Fuller

 

12.3

%

   

11.9

%

               

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

 

Three Months Ended

 
 

March 2, 2019

 

March 3, 2018

 
             

Income before income taxes and income from equity method investments

$

13,823

 

$

13,214

 
             

Adjustments:

           

Acquisition project costs

 

115

   

559

 

Tonsan call option agreement

 

-

   

125

 

Organizational realignment

 

475

   

410

 

Royal restructuring and integration

 

5,917

   

7,454

 

Tax reform

 

75

   

-

 

Project ONE

 

1,102

   

2,144

 

Other

 

502

   

(1,656)

 

Adjusted income before income taxes and income from equity method investments2 

$

22,009

 

$

22,250

 
 

_______________

           
             

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 GAAP.

 

             

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

 

Three Months Ended

 
 

March 2, 2019

 

March 3, 2018

 
             

Income Taxes

$

(3,140)

 

$

32,632

 
             

Adjustments:

           

Acquisition project costs

 

(30)

   

(184)

 

Organizational realignment

 

(124)

   

338

 

Royal restructuring and integration

 

(1,552)

   

(2,526)

 

Tax reform

 

(20)

   

(35,186)

 

Project ONE

 

(289)

   

(750)

 

Other

 

(895)

   

(57)

 

Adjusted income taxes3

$

(6,050)

 

$

(5,733)

 
             

Adjusted income before income taxes and income from equity method investments

$

22,009

 

$

22,250

 

Adjusted effective income tax rate3 

 

27.5%

   

25.8%

 
 

_______________

           
             

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 GAAP.

 

H.B. FULLER COMPANY AND SUBSIDIARIES

 

REGULATION G RECONCILIATION

 

In thousands (unaudited)

 
             
 

Three Months Ended

 
 

March 2, 2019

 

March 3, 2018

 
             

Net revenue

 

672,935

   

713,079

 
             

Gross profit

$

179,925

 

$

185,513

 

Gross profit margin

 

26.7%

   

26.0%

 
             

Adjustments:

           

Acquisition project costs

 

-

   

103

 

Organizational realignment

 

48

   

231

 

Royal restructuring and integration

 

1,419

   

224

 

Other

 

(3)

   

-

 

Adjusted gross profit4

$

181,389

 

$

186,071

 

Adjusted gross profit margin4

 

27.0%

   

26.1%

 
 

_______________

           
             

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 GAAP. 

 

 

             

H.B. FULLER COMPANY AND SUBSIDIARIES

 

REGULATION G RECONCILIATION

 

In thousands (unaudited)

 
             
 

Three Months Ended

 
 

March 2, 2019

 

March 3, 2018

 
             

Selling, general and administrative expenses

$

(145,713)

 

$

(152,707)

 
             

Adjustments:

           

Acquisition project costs

 

115

   

456

 

Tonsan call option agreement

 

-

   

48

 

Organizational realignment

 

427

   

179

 

Royal restructuring and integration

 

4,497

   

7,230

 

Tax reform

 

75

   

-

 

Project ONE

 

1,102

   

2,144

 

Other

 

506

   

6

 

Adjusted selling, general and administrative expenses5 

$

(138,991)

 

$

(142,644)

 
 

_______________

   
             

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 GAAP.

 

 

 

H.B. FULLER COMPANY AND SUBSIDIARIES

 

REGULATION G RECONCILIATION

 

In thousands (unaudited)

                                                     
     

Americas

       

Asia

 

Construction

 

Engineering

       

Corporate

 

H.B. Fuller

 
     

Adhesives

 

EIMEA

 

Pacific

 

Adhesives

 

Adhesives

 

Total

 

Unallocated

 

Consolidated

 
                                                     
 

Three Months Ended

March 2, 2019

                                                 
 

Net income attributable to H.B. Fuller

 

$

17,671

 

$

4,081

 

$

3,820

 

$

(2,653)

 

$

14,736

 

$

37,655

 

$

(25,411)

 

$

12,244

 
                                                     
 

Adjustments:

                                                 
 

Acquisition project costs

   

43

   

28

   

14

   

13

   

16

   

114

   

(30)

   

84

 
 

Organizational realignment

   

563

   

(340)

   

15

   

220

   

16

   

474

   

(124)

   

350

 
 

Royal restructuring and integration

   

1,584

   

1,803

   

469

   

1,285

   

776

   

5,917

   

(1,552)

   

4,365

 
 

Tax reform

   

28

   

18

   

9

   

9

   

11

   

75

   

(20)

   

55

 
 

Project ONE

   

415

   

270

   

136

   

125

   

156

   

1,102

   

(289)

   

813

 
 

Other

   

384

   

119

   

-

   

-

   

-

   

503

   

(895)

   

(392)

 
                                                     
 

Adjusted net income attributable to H.B. Fuller1

   

20,688

   

5,979

   

4,463

   

(1,001)

   

15,711

   

45,840

   

(28,321)

   

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

   

8,556

   

6,939

   

2,142

   

8,927

   

8,964

   

35,528

   

-

   

35,528

 
 

Adjusted EBITDA1

$

 

29,244

 

$

12,918

 

$

6,605

 

$

7,926

 

$

24,675

 

$

81,368

 

$

1,483

 

$

82,851

 
 
 

_______________

   
                                                     
 

Note: Adjusted EBITDA is a non-GAAP financial measure. The tables above provide 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.

 

 

H.B. FULLER COMPANY AND SUBSIDIARIES

 

REGULATION G RECONCILIATION

 

In thousands (unaudited)

                                                   
     

Americas

       

Asia

 

Construction

 

Engineering

       

Corporate

 

H.B. Fuller

     

Adhesives

 

EIMEA

 

Pacific

 

Adhesives

 

Adhesives

 

Total

 

Unallocated

 

Consolidated

                                                   
 

Three Months Ended

March 3, 2018

                                               
 

Net income attributable to H.B. Fuller

 

$

16,399

 

$

6,858

 

$

2,343

 

$

1,289

 

$

9,796

 

$

36,685

 

$

10,997

 

$

47,682

                                                   
 

Adjustments:

                                               
 

Acquisition project costs

   

492

   

12

   

7

   

6

   

42

   

559

   

(184)

   

375

 

Tonsan call option agreement

   

-

   

-

   

-

   

-

   

48

   

48

   

77

   

125

 

Organizational realignment

   

126

   

62

   

3

   

215

   

4

   

410

   

338

   

748

 

Royal Restructuring and integration

   

2,942

   

1,561

   

525

   

1,317

   

1,109

   

7,454

   

(2,526)

   

4,928

 

Tax Reform

   

-

   

-

   

-

   

-

   

-

   

-

   

(35,186)

   

(35,186)

 

Project ONE

   

843

   

528

   

248

   

253

   

272

   

2,144

   

(750)

   

1,394

 

Other

   

2

   

1

   

1

   

1

   

1

   

6

   

(1,719)

   

(1,713)

 

Adjusted net income attributable to H.B. Fuller1

   

20,804

   

9,022

   

3,127

   

3,081

   

11,272

   

47,306

   

(28,953)

   

18,353

                                                   
 

Add:

                                               
 

Interest expense

   

-

   

-

   

-

   

-

   

-

   

-

   

27,468

   

27,468

 

Interest income

   

-

   

-

   

-

   

-

   

-

   

-

   

(3,042)

   

(3,042)

 

Income taxes

   

-

   

-

   

-

   

-

   

-

   

-

   

5,733

   

5,733

 

Depreciation and amortization expense

   

8,835

   

7,237

   

2,160

   

9,332

   

9,101

   

36,665

   

-

   

36,665

 

Adjusted EBITDA1

$

 

29,639

 

$

16,259

 

$

5,287

 

$

12,413

 

$

20,373

 

$

83,971

 

$

1,206

 

$

85,177

 
 

_______________

 
                     
 

Note: Adjusted EBITDA is a non-GAAP financial measure. The tables above provide 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.

 

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

NET REVENUE GROWTH

(unaudited)

             
 

Three Months Ended

     
   

March 2, 2019

       
   

Total

       

Price

 

3.0%

       

Volume

 

(4.0%)

       

Organic Growth

 

(1.0%)

       
             

F/X

 

(4.6%)

       
             

Total

 

(5.6%)

       
             
             
   

Three Months Ended

   

March 2, 2019

   

Net Revenue

 

F/X

 

Organic Growth

             

Americas Adhesives

 

(3.6%)

 

(3.8%)

 

0.2%

EIMEA

 

(7.4%)

 

(8.1%)

 

0.7%

Asia Pacific

 

(4.8%)

 

(4.8%)

 

0.0%

Construction Adhesives

 

(16.1%)

 

(1.0%)

 

(15.1%)

Engineering Adhesives

 

0.3%

 

(4.1%)

 

4.4%

Total

 

(5.6%)

 

(4.6%)

 

(1.0%)

             

 

 
 
For further information: Barbara Doyle, Investor Relations contact, 651-236-5023

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