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H.B. Fuller Reports Fourth Quarter and Fiscal Year 2020 Results

January, 25, 2021

Fourth quarter net income of $41 million or $0.77 EPS; Adjusted EPS of $1.06 up 21% versus 2019

Fourth quarter adjusted EBITDA of $123 million up 9% versus 2019

Full Year debt paydown of $205 million surpassed $200 million target

H.B. Fuller Company (NYSE: FUL) today reported financial results for the fourth quarter and fiscal year ended Nov. 28, 2020.

Items of Note for Fourth Quarter 2020

  • Fourth quarter revenue and earnings growth exceeded the company’s guidance, driven by strong operational execution, higher sales, and benefits from restructuring efficiencies.
  • Total organic revenue increased 5% compared with last year, with positive year-over-year growth in all three global business units (GBUs), including double-digit growth in Electronics, Recreational Vehicles, Woodworking, Panels, Flexible Packaging, and Tape and Labels.
  • Increased sales and restructuring efficiencies resulted in net income of $41 million. Adjusted EBITDA of $123 million and adjusted EPS of $1.06 increased 9% and 21%, respectively, versus last year.
  • Q4 cash flow from operations increased 27% versus the same period in 2019, driven by sales growth, restructuring efficiencies and working capital improvements.
  • Full year debt paydown of $205 million exceeded the company’s $200 million debt paydown target set at the beginning of the year.
  • Achieved restructuring savings of $10 million in the quarter, which resulted in cumulative savings of $30 million for fiscal year 2020, related to our realignment to three GBUs.

2021 Planning Assumptions

H.B. Fuller is planning for on-going business recovery in 2021 in an environment that continues to be impacted by COVID-19-related restrictions and corresponding recessionary impacts. The company is providing the following planning assumptions for fiscal year 2021 which are based on current economic views and assumptions for global commercial activity:

  • Base case outlook for low to mid-single digit organic revenue growth and approximately 10% adjusted EBITDA growth for fiscal 2021, supported by share gains, on-going recovery in global industrial production, and benefits from the company’s internal operational improvement projects.
  • Raw material costs are expected to rise as the year progresses driven by increasing industrial demand. New product formulations and pricing are expected to offset raw material increases.
  • Improved margins and reduced working capital requirements will enable the company to continue to drive strong cash flow and pay down an additional $200 million of debt in 2021, after dividends and approximately $95 million of capital investments.
  • The company’s core tax rate, excluding the impact of discrete items, is anticipated to be between 26% and 29%, and full year interest expense is estimated to be approximately $70 million.

Summary of Fourth Quarter 2020 Results

Net revenue of $778 million increased 5.2% compared with the fourth quarter of 2019. Foreign currency exchange rates favorably impacted revenue by 0.5%. Organic revenue, which excludes impacts from foreign currency, mergers, acquisitions and divestitures, increased 4.7% versus last year, with growth in all three GBUs, including double-digit growth in Electronics, Recreational Vehicles, Woodworking, Panels, Flexible Packaging, and Tape and Labels.

Gross profit margin was 27.5%. Adjusted gross profit margin, also 27.5%, was down 10 basis points versus last year as higher volume was offset by higher variable compensation. Selling, General and Administrative (SG&A) expense was $140 million. Adjusted SG&A expense of $133 million was down 100 basis points as a percent of revenue versus last year, reflecting savings related to the business reorganization to our three GBUs and lower travel expense which was partially offset by higher variable compensation associated with strong fourth quarter results.

As a result of these factors, net income attributable to H.B. Fuller in the quarter was $41 million, or $0.77 per diluted share. Adjusted net income attributable to H.B. Fuller was $56 million, or $1.06 of adjusted EPS, up more than 20% compared with $46 million, or $0.88 of adjusted EPS in the prior year. Adjusted EBITDA of $123 million increased 9% compared with $112 million in the same period last year, and adjusted EBITDA margin of 15.8% improved 60 basis points versus prior year.

“H.B. Fuller delivered strong results in the quarter with revenue and earnings growth that exceeded our outlook, and cash flow that enabled us to exceed our debt paydown target,” said Jim Owens, H.B. Fuller president and chief executive officer. “Our team remained focused on superior operational execution to support the dynamic needs of our customers in a world transformed by the COVID-19 pandemic. We leveraged our competitive advantages and realized the benefits of actions taken to realign our organization and enhance operational agility. As a result, we successfully capitalized on share gains and strengthening business activity in our end markets, including strong demand for our adhesives for consumable goods, electronics, automotive, recreational vehicles, and other durable goods.”

Full Year 2020 Summary

Net revenue for fiscal 2020 of $2,790 million decreased 3.7% compared with fiscal 2019. Foreign currency exchange rates unfavorably impacted full year revenues by 1.6%, and the divestiture of the surfactants, thickeners and dispersants business negatively impacted revenues by 0.5%. Full year organic revenue decreased by 1.6% year-over-year, due to the impact from the COVID-19 pandemic on Construction Adhesives and Engineering Adhesives global demand offsetting sales growth in Hygiene, Health and Consumables Adhesives.

Full year gross profit margin was 27.1%. Adjusted gross profit margin of 27.3% decreased 80 basis points versus last year on lower sales and unfavorable business mix related to impacts from COVID-19, partially offset by favorable raw material costs. Net income attributable to H.B. Fuller for fiscal 2020 was $124 million, or $2.36 per diluted share. Adjusted net income attributable to H.B. Fuller was $149 million, or $2.84 per diluted share, compared with $154 million, or $2.96 per diluted share, in fiscal 2019. Adjusted EBITDA for full year 2020 was $407 million compared with $432 million in 2019.

Key Balance Sheet and Cash Flow Items

At the end of the fourth quarter of 2020, the company had cash on hand of $101 million and total debt equal to $1,774 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 for the full year increased 23% to $332 million from $269 million in fiscal 2019, driven by improved working capital management. Capital expenditures were $87 million in 2020 compared with $62 million in fiscal 2019, reflecting timing of capital projects and expenditures related to growth initiatives. Capital expenditures were in line with the company’s planned capital investment.

“In 2020, we demonstrated the resilience of our business strategy and cash flow generation,” said Owens. “The breadth of our global resources and our team’s commitment to being first and fastest allowed us to meet our customers’ needs with extraordinary collaboration and unwavering focus, while ensuring the health and safety of our employees during this challenging period. We exited this unprecedented year as a much stronger company. In 2021, we will build on this momentum, capture new revenue opportunities, and realize additional benefits from our ongoing operational improvement plans. Throughout the COVID-19 pandemic, adhesives have proven their enduring importance in the supply chain for essential goods around the world. As the leader in adhesive innovation for hygiene, health, consumer products and advanced adhesive applications, H.B. Fuller is well-positioned to continue to create value for shareholders in 2021 and beyond.”

Conference Call

The Company will host an investor conference call to discuss fourth quarter results on Tuesday, January 26, 2021, 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/events-and-presentations/events-calendar/default.aspx. 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 2 hours after the conclusion of the call, through Feb. 2, 2021. To access the telephone replay dial (800) 585-8367 or (416) 621-4642 and enter Conference ID 8756909.

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 2021 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 2020 net revenue of $2.8 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 business realignment and the company’s other restructuring initiatives within the expected time frames or at all; the ability to effectively implement Project ONE; political and economic conditions; product demand; competitive products and pricing; 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 filings. 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)

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

Percent of

 

13 Weeks Ended

 

Percent of

 

 

November 28, 2020

 

Net Revenue

 

November 30, 2019

 

Net Revenue

 

Net revenue

$

777,640

 

100.0%

 

$

739,106

 

100.0%

 

Cost of sales

 

(563,998)

 

(72.5%)

 

 

(537,889)

 

(72.8%)

 

Gross profit

 

213,642

 

27.5%

 

 

201,217

 

27.2%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

(139,712)

 

(18.0%)

 

 

(148,521)

 

(20.1%)

 

Other income, net

 

3,658

 

0.5%

 

 

8,830

 

1.2%

 

Interest expense

 

(22,179)

 

(2.9%)

 

 

(23,933)

 

(3.2%)

 

Interest income

 

2,656

 

0.3%

 

 

2,987

 

0.4%

 

Income before income taxes and income from equity method investments

 

58,065

 

7.5%

 

 

40,580

 

5.5%

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

(19,727)

 

(2.5%)

 

 

(10,506)

 

(1.4%)

 

 

 

 

 

 

 

 

 

 

 

 

Income from equity method investments

 

2,285

 

0.3%

 

 

2,151

 

0.3%

 

Net income including non-controlling interest

 

40,623

 

5.2%

 

 

32,225

 

4.4%

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to non-controlling interest

 

(19)

 

(0.0%)

 

 

(11)

 

(0.0%)

 

Net income attributable to H.B. Fuller

$

40,604

 

5.2%

 

$

32,214

 

4.4%

 

 

 

 

 

 

 

 

 

 

 

 

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

$

0.78

 

 

 

$

0.63

 

 

 

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

$

0.77

 

 

 

$

0.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

52,276

 

 

 

 

51,089

 

 

 

Diluted

 

52,879

 

 

 

 

52,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.163

 

 

 

$

0.160

 

 

 

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

 

 

 

 

 

 

 

 

 

 

November 28, 2020

 

November 30, 2019

 

December 1, 2018

Cash & cash equivalents

$

100,534

 

$

112,191

 

$

150,793

Trade accounts receivable, net

 

514,916

 

 

493,181

 

 

495,008

Inventories

 

323,213

 

 

337,267

 

 

348,461

Trade payables

 

316,460

 

 

298,869

 

 

273,378

Total assets

 

4,036,704

 

 

3,985,734

 

 

4,176,314

Total debt

 

1,773,910

 

 

1,979,116

 

 

2,247,527

 

 

 

 

 

 

 

 

 

H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

 

 

 

 

 

 

 

 

 

 

 

52 Weeks Ended

 

Percent of

 

52 Weeks Ended

 

Percent of

 

November 28, 2020

 

Net Revenue

 

November 30, 2019

 

Net Revenue

Net revenue

$

2,790,269

 

100.0%

 

$

2,897,000

 

100.0%

Cost of sales

 

(2,033,620)

 

(72.9%)

 

 

(2,090,078)

 

(72.1%)

Gross profit

 

756,649

 

27.1%

 

 

806,922

 

27.9%

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

(538,332)

 

(19.3%)

 

 

(580,928)

 

(20.1%)

 

 

 

 

 

 

 

 

 

 

Other income, net

 

15,398

 

0.6%

 

 

37,943

 

1.3%

Interest expense

 

(86,776)

 

(3.1%)

 

 

(103,287)

 

(3.6%)

Interest income

 

11,417

 

0.4%

 

 

12,178

 

0.4%

Income before income taxes and income from equity method investments

 

158,356

 

5.7%

 

 

172,828

 

6.0%

 

 

 

 

 

 

 

 

 

 

Income taxes

 

(41,921)

 

(1.5%)

 

 

(49,408)

 

(1.7%)

 

 

 

 

 

 

 

 

 

 

Income from equity method investments

 

7,353

 

0.3%

 

 

7,424

 

0.3%

Net income including non-controlling interest

 

123,788

 

4.4%

 

 

130,844

 

4.5%

 

 

 

 

 

 

 

 

 

 

Net income attributable to non-controlling interest

 

(69)

 

(0.0%)

 

 

(27)

 

(0.0%)

Net income attributable to H.B. Fuller

$

123,719

 

4.4%

 

$

130,817

 

4.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per common share attributable to H.B. Fuller 1

$

2.38

 

 

 

$

2.57

 

 

Diluted income per common share attributable to H.B. Fuller 1

$

2.36

 

 

 

$

2.52

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

52,039

 

 

 

 

50,920

 

 

Diluted

 

52,520

 

 

 

 

51,983

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.648

 

 

 

$

0.635

 

 

 

 

 

 

 

 

 

 

 

 

1 Income per share amounts may not add due to rounding

 

 

 

 

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

52 Weeks Ended

 

 

November 28,
2020

 

November 30,
2019

November 28,
2020

 

November 30,
2019

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to H.B. Fuller

 

$

40,604

 

$

32,214

$

123,719

 

$

130,817

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

 

999

 

 

45

 

(162)

 

 

2,204

Organizational realignment

 

 

5,250

 

 

6,535

 

11,449

 

 

7,647

Royal restructuring and integration

 

 

1,894

 

 

1,957

 

7,396

 

 

787

Tax reform

 

 

-

 

 

76

 

(26)

 

 

132

Project One

 

 

1,165

 

 

937

 

4,265

 

 

4,115

Other 2

 

 

6,110

 

 

4,520

 

2,268

 

 

7,964

Adjusted net income attributable to H.B. Fuller 3

 

 

56,022

 

 

46,284

 

148,909

 

 

153,666

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

19,969

 

 

23,933

 

84,619

 

 

103,287

Interest income

 

 

(2,656)

 

 

(2,987)

 

(11,417)

 

 

(12,178)

Income taxes

 

 

14,122

 

 

10,246

 

46,456

 

 

47,465

Depreciation and Amortization expense 4

 

 

35,249

 

 

34,702

 

138,242

 

 

140,105

Adjusted EBITDA 3

 

 

122,706

 

 

112,178

 

406,809

 

 

432,345

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares

 

 

52,879

 

 

52,423

 

52,520

 

 

51,983

Adjusted diluted income per common share attributable to H.B. Fuller 3

 

$

1.06

 

$

0.88

$

2.84

 

$

2.96

Revenue

 

$

777,640

 

$

739,106

$

2,790,269

 

$

2,897,000

Adjusted EBITDA margin 3

 

 

15.8%

 

 

15.2%

 

14.6%

 

 

14.9%

 

 

 

 

 

 

 

 

 

 

 

 

2 Primarily related to discrete tax expense in the quarter ended November 28, 2020 associated with various foreign tax matters and audit settlements. The full year amount includes discrete tax expense related to various foreign matters and audit settlements partially offset by discrete tax benefit related to the revaluation of cross-currency swap agreements due to appreciation of the Euro versus US dollar.

3 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.

4 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in Adjusted net income attributable to H.B. Fuller totaling ($67) and $34 for the three months ended November 28, 2020 and November 30, 2019, respectively and ($575) and ($1,101) for the twelve months ended November 28, 2020 and November 30, 2019, respectively.

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

In thousands (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

52 Weeks Ended

 

November 28,
2020

 

November 30,
2019

 

November 28,
2020

 

November 30,
2019

 

Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Hygiene, Health and Consumable Adhesives

$

355,413

 

$

342,120

 

$

1,332,786

 

$

1,328,286

 

Engineering Adhesives

 

327,273

 

 

303,393

 

 

1,088,313

 

 

1,158,403

 

Construction Adhesives

 

94,954

 

 

93,593

 

 

369,170

 

 

396,580

 

Corporate unallocated

 

-

 

 

-

 

 

-

 

 

13,731

 

Total H.B. Fuller

$

777,640

 

$

739,106

 

$

2,790,269

 

$

2,897,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 

Hygiene, Health and Consumable Adhesives

$

41,233

 

$

30,385

 

$

130,789

 

$

115,961

 

Engineering Adhesives

 

38,588

 

 

38,153

 

 

103,974

 

 

136,299

 

Construction Adhesives

 

1,712

 

 

2,411

 

 

11,148

 

 

16,657

 

Corporate unallocated

 

(7,603)

 

 

(18,253)

 

 

(27,594)

 

 

(42,923)

 

Total H.B. Fuller

$

73,930

 

$

52,696

 

$

218,317

 

$

225,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA 3

 

 

 

 

 

 

 

 

 

 

 

 

Hygiene, Health and Consumable Adhesives

$

54,533

 

$

42,985

 

$

182,448

 

$

166,685

 

Engineering Adhesives

 

54,997

 

 

53,332

 

 

167,915

 

 

197,853

 

Construction Adhesives

 

11,799

 

 

12,329

 

 

51,692

 

 

56,514

 

Corporate unallocated

 

1,377

 

 

3,532

 

 

4,754

 

 

11,293

 

Total H.B. Fuller

$

122,706

 

$

112,178

 

$

406,809

 

$

432,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin 3

 

 

 

 

 

 

 

 

 

 

 

 

Hygiene, Health and Consumable Adhesives

 

15.3%

 

 

12.6%

 

 

13.7%

 

 

12.5%

 

Engineering Adhesives

 

16.8%

 

 

17.6%

 

 

15.4%

 

 

17.1%

 

Construction Adhesives

 

12.4%

 

 

13.2%

 

 

14.0%

 

 

14.3%

 

Corporate unallocated

 

NMP

 

 

NMP

 

 

NMP

 

 

NMP

 

Total H.B. Fuller

 

15.8%

 

 

15.2%

 

 

14.6%

 

 

14.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NMP = non-meaningful percentage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

 

13 Weeks Ended

52 Weeks Ended

 

November 28,
2020

 

November 30,
2019

November 28,
2020

 

November 30,
2019

Income before income taxes and income from equity method investments

$

58,065

 

$

40,580

$

158,356

 

$

172,828

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

1,082

 

 

63

 

(502)

 

 

2,703

Organizational realignment

 

5,685

 

 

9,280

 

13,971

 

 

10,168

Royal restructuring and integration

 

2,051

 

 

2,327

 

9,430

 

 

713

Tax reform

 

-

 

 

106

 

(35)

 

 

180

Project One

 

1,260

 

 

1,293

 

5,402

 

 

5,275

Other

 

(264)

 

 

741

 

1,459

 

 

1,867

Adjusted income before income taxes and income from equity method investments 5

$

67,879

 

$

54,390

$

188,081

 

$

193,734

 

 

 

 

 

 

 

 

 

 

 

5 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)

 

13 Weeks Ended

52 Weeks Ended

 

November 28,
2020

 

November 30,
2019

November 28,
2020

 

November 30,
2019

Income Taxes

$

(19,727)

 

$

(10,506)

$

(41,921)

 

$

(49,408)

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

(82)

 

 

(17)

 

340

 

 

(500)

Organizational realignment

 

(435)

 

 

(2,746)

 

(2,522)

 

 

(2,521)

Royal restructuring and integration

 

(157)

 

 

(371)

 

(2,034)

 

 

74

Tax reform

 

-

 

 

(29)

 

9

 

 

(49)

Project One

 

(95)

 

 

(356)

 

(1,138)

 

 

(1,159)

Other 2

 

6,374

 

 

3,779

 

810

 

 

6,098

Adjusted income taxes 6

$

(14,122)

 

$

(10,246)

$

(46,456)

 

$

(47,465)

 

 

 

 

 

 

 

 

 

 

 

Adjusted income before income taxes and income from equity method investments

$

67,879

 

$

54,390

$

188,081

 

$

193,734

Adjusted effective income tax rate 6

 

20.8%

 

 

18.8%

 

24.7%

 

 

24.5%

 

 

 

 

 

 

 

 

 

 

 

2 Primarily related to discrete tax expense in the quarter ended November 28, 2020 associated with various foreign tax matters and audit settlements. The full year amount includes discrete tax expense related to various foreign matters and audit settlements partially offset by discrete tax benefit related to the revaluation of cross-currency swap agreements due to appreciation of the Euro versus US dollar.

6 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)

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

52 Weeks Ended

 

November 28,
2020

 

November 30,
2019

November 28,
2020

 

November 30,
2019

 

 

 

 

 

 

 

 

 

 

 

Net revenue

$

777,640

 

$

739,106

$

2,790,269

 

$

2,897,000

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

213,642

 

$

201,217

$

756,649

 

$

806,922

Gross profit margin

 

27.5%

 

 

27.2%

 

27.1%

 

 

27.9%

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

85

 

 

-

 

85

 

 

-

Organizational realignment

 

219

 

 

506

 

166

 

 

381

Royal restructuring and integration

 

953

 

 

2,065

 

3,682

 

 

6,316

Other

 

(821)

 

 

199

 

443

 

 

191

Adjusted gross profit 7

$

214,078

 

$

203,987

$

761,025

 

$

813,810

Adjusted gross profit margin 7

 

27.5%

 

 

27.6%

 

27.3%

 

 

28.1%

 

 

 

 

 

 

 

 

 

 

 

7 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)

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

52 Weeks Ended

 

November 28,
2020

 

November 30,
2019

November 28,
2020

 

November 30,
2019

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

$

(139,712)

 

$

(148,521)

$

(538,332)

 

$

(580,928)

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

997

 

 

63

 

(587)

 

 

2,703

Organizational realignment

 

5,466

 

 

8,746

 

13,809

 

 

13,300

Royal restructuring and integration

 

1,125

 

 

4,551

 

5,851

 

 

15,296

Tax reform

 

-

 

 

105

 

(35)

 

 

180

Project ONE

 

1,260

 

 

1,293

 

5,402

 

 

5,275

Other

 

(1,682)

 

 

363

 

(1,222)

 

 

1,497

Adjusted selling, general and administrative expenses 8

$

(132,546)

 

$

(133,400)

$

(515,114)

 

$

(542,677)

 

 

 

 

 

 

 

 

 

 

 

8 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended:

 

Hygiene, Health
and Consumable

 

Engineering

 

Construction

 

 

 

 

Corporate

 

H.B. Fuller

 

November 28, 2020

 

Adhesives

 

Adhesives

 

Adhesives

 

Total

 

Unallocated

 

Consolidated

 

Net income attributable to

H.B. Fuller

 

$

43,140

 

$

40,046

 

$

2,894

 

$

86,080

 

$

(45,476)

 

$

40,604

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

 

-

 

 

-

 

 

-

 

 

-

 

 

999

 

 

999

 

Organizational realignment

 

 

-

 

 

-

 

 

-

 

 

-

 

 

5,250

 

 

5,250

 

Royal Restructuring

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,894

 

 

1,894

 

Project One

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,165

 

 

1,165

 

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

6,110

 

 

6,110

 

Adjusted net income attributable to H.B. Fuller 3

 

 

43,140

 

 

40,046

 

 

2,894

 

 

86,080

 

 

(30,058)

 

 

56,022

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

-

 

 

-

 

 

-

 

 

-

 

 

19,969

 

 

19,969

 

Interest income

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,656)

 

 

(2,656)

 

Income taxes

 

 

-

 

 

-

 

 

-

 

 

-

 

 

14,122

 

 

14,122

 

Depreciation and amortization expense

 

 

11,393

 

 

14,951

 

 

8,905

 

 

35,249

 

 

-

 

 

35,249

 

Adjusted EBITDA 3

 

$

54,533

 

$

54,997

 

$

11,799

 

$

121,329

 

$

1,377

 

$

122,706

 

Revenue

 

 

355,413

 

 

327,273

 

 

94,954

 

 

777,640

 

 

-

 

 

777,640

 

Adjusted EBITDA Margin 3

 

 

15.3%

 

 

16.8%

 

 

12.4%

 

 

15.6%

 

 

NMP

 

 

15.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52 Weeks Ended:

 

Hygiene, Health
and Consumable

 

Engineering

 

Construction

 

 

 

 

Corporate

 

H.B. Fuller

 

November 28, 2020

 

Adhesives

 

Adhesives

 

Adhesives

 

Total

 

Unallocated

 

Consolidated

 

Net income attributable to

H.B. Fuller

 

$

138,119

 

$

109,813

 

$

15,881

 

$

263,813

 

$

(140,094)

 

$

123,719

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(162)

 

 

(162)

 

Organizational realignment

 

 

-

 

 

-

 

 

-

 

 

-

 

 

11,449

 

 

11,449

 

Royal Restructuring

 

 

-

 

 

-

 

 

-

 

 

-

 

 

7,396

 

 

7,396

 

Tax reform

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(26)

 

 

(26)

 

Project One

 

 

-

 

 

-

 

 

-

 

 

-

 

 

4,265

 

 

4,265

 

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,268

 

 

2,268

 

Adjusted NI attributable to H.B. Fuller 3

 

 

138,119

 

 

109,813

 

 

15,881

 

 

263,813

 

 

(114,904)

 

 

148,909

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

-

 

 

-

 

 

-

 

 

-

 

 

84,619

 

 

84,619

 

Interest income

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(11,417)

 

 

(11,417)

 

Income taxes

 

 

-

 

 

-

 

 

-

 

 

-

 

 

46,456

 

 

46,456

 

Depreciation and amortization expense

 

 

44,329

 

 

58,102

 

 

35,811

 

 

138,242

 

 

-

 

 

138,242

 

Adjusted EBITDA 3

$

 

182,448

 

$

167,915

 

$

51,692

 

$

402,055

 

$

4,754

 

$

406,809

 

Revenue

 

 

1,332,786

 

 

1,088,313

 

 

369,170

 

2,790,269

 

 

-

 

 

2,790,269

 

Adjusted EBITDA Margin 3

 

 

13.7%

 

 

15.4%

 

 

14.0%

 

 

14.4%

 

 

NMP

 

 

14.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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-meaningful percentage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended:

 

Hygiene, Health
and Consumable

 

Engineering

 

Construction

 

 

 

 

Corporate

 

H.B. Fuller

November 30, 2019

 

Adhesives

 

Adhesives

 

Adhesives

 

Total

 

Unallocated

 

Consolidated

Net income attributable to

H.B. Fuller

 

$

31,670

 

$

39,202

 

$

3,435

 

$

74,307

 

$

(42,093)

 

$

32,214

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

 

-

 

 

-

 

 

-

 

 

-

 

 

45

 

 

45

Organizational realignment

 

 

-

 

 

-

 

 

-

 

 

-

 

 

6,535

 

 

6,535

Royal Restructuring

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,957

 

 

1,957

Tax reform

 

 

-

 

 

-

 

 

-

 

 

-

 

 

76

 

 

76

Project One

 

 

-

 

 

-

 

 

-

 

 

-

 

 

937

 

 

937

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

4,520

 

 

4,520

Adjusted net income attributable to H.B. Fuller 3

 

 

31,670

 

 

39,202

 

 

3,435

 

 

74,307

 

 

(28,023)

 

 

46,284

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

-

 

 

-

 

 

-

 

 

-

 

 

23,933

 

 

23,933

Interest income

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,987)

 

 

(2,987)

Income taxes

 

 

-

 

 

-

 

 

-

 

 

-

 

 

10,246

 

 

10,246

Depreciation and amortization expense

 

 

11,315

 

 

14,130

 

 

8,894

 

 

34,339

 

 

363

 

 

34,702

Adjusted EBITDA 3

 

$

42,985

 

$

53,332

 

$

12,329

 

$

108,646

 

$

3,532

 

$

112,178

Revenue

 

 

342,120

 

 

303,393

 

 

93,593

 

 

739,106

 

 

-

 

 

739,106

Adjusted EBITDA Margin 3

 

 

12.6%

 

 

17.6%

 

 

13.2%

 

 

14.7%

 

 

NMP

 

 

15.2%

52 Weeks Ended:

 

Hygiene, Health
and Consumable

 

Engineering

 

Construction

 

 

 

 

Corporate

 

H.B. Fuller

November 30, 2019

 

Adhesives

 

Adhesives

 

Adhesives

 

Total

 

Unallocated

 

Consolidated

Net income attributable to

H.B. Fuller

 

$

121,237

 

$

140,678

 

$

20,663

 

$

282,578

 

$

(151,761)

 

$

130,817

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition project costs

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,204

 

 

2,204

Organizational realignment

 

 

-

 

 

-

 

 

-

 

 

-

 

 

7,647

 

 

7,647

Royal Restructuring

 

 

-

 

 

-

 

 

-

 

 

-

 

 

787

 

 

787

Tax reform

 

 

-

 

 

-

 

 

-

 

 

-

 

 

132

 

 

132

Project One

 

 

-

 

 

-

 

 

-

 

 

-

 

 

4,115

 

 

4,115

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

7,964

 

 

7,964

Adjusted net income attributable to H.B. Fuller 3

 

 

121,237

 

 

140,678

 

 

20,663

 

 

282,578

 

 

(128,912)

 

 

153,666

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

-

 

 

-

 

 

-

 

 

-

 

 

103,287

 

 

103,287

Interest income

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(12,178)

 

 

(12,178)

Income taxes

 

 

-

 

 

-

 

 

-

 

 

-

 

 

47,465

 

 

47,465

Depreciation and amortization expense

 

 

45,448

 

 

57,175

 

 

35,851

 

 

138,474

 

 

1,631

 

 

140,105

Adjusted EBITDA 3

 

$

166,685

 

$

197,853

 

$

56,514

 

$

421,052

 

$

11,293

 

$

432,345

Revenue

 

 

1,328,286

 

 

1,158,403

 

 

396,580

 

2,883,269

 

 

13,731

 

 

2,897,000

Adjusted EBITDA Margin 3

 

 

12.5%

 

 

17.1%

 

 

14.3%

 

 

14.6%

 

 

NMP

 

 

14.9%

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-meaningful percentage

 

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

NET REVENUE GROWTH (DECLINE)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

52 Weeks Ended

 

 

 

 

 

 

 

 

 

 

November 28, 2020

 

 

 

 

 

 

 

 

 

Price

 

(0.3%)

 

(0.6%)

 

 

 

 

 

 

 

 

 

Volume

 

5.0%

 

(1.0%)

 

 

 

 

 

 

 

 

 

Organic Growth (Decline)

 

4.7%

 

(1.6%)

 

 

 

 

 

 

 

 

 

M&A

 

0.0%

 

(0.5%)

 

 

 

 

 

 

 

 

 

F/X

 

0.5%

 

(1.6%)

 

 

 

 

 

 

 

 

 

Total H.B. Fuller Net Revenue
Growth (Decline)

 

5.2%

 

(3.7%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

 

52 Weeks Ended

 

 

November 28, 2020

 

 

November 28, 2020

 

 

Net Revenue

 

F/X

 

Organic
Growth
(Decline)

 

 

Net Revenue

 

F/X

 

Organic
Growth
(Decline)

Hygiene, Health and Consumable Adhesives

 

3.9%

 

(1.1%)

 

5.0%

 

 

0.3%

 

(3.0%)

 

3.3%

Engineering Adhesives

 

7.9%

 

2.3%

 

5.6%

 

 

(6.1%)

 

(0.6%)

 

(5.5%)

Construction Adhesives

 

1.5%

 

0.7%

 

0.8%

 

 

(6.9%)

 

(0.2%)

 

(6.7%)

Unallocated

 

NMP

 

0.0%

 

0.0%

 

 

NMP

 

0.0%

 

0.0%

Total H.B. Fuller

 

5.2%

 

0.5%

 

4.7%

 

 

(3.7%)

 

(1.6%)

 

(1.6%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NMP = non-meaningful percentage

CONSOLIDATED BALANCE SHEETS

H.B. Fuller Company and Subsidiaries

(In thousands, except share and per share amounts)

 

 

 

Fiscal Year Ended

 

 

 

November 28,

 

 

November 30,

 

 

 

2020

 

 

2019

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

$

100,534

 

$

112,191

 

Trade receivables, net

 

514,916

 

 

493,181

 

Inventories

 

323,213

 

 

337,267

 

Other current assets

 

81,113

 

 

90,723

Total current assets

 

1,019,776

 

 

1,033,362

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

670,744

 

 

629,813

 

Goodwill

 

1,312,003

 

 

1,281,808

 

Other intangibles, net

 

755,968

 

 

799,399

 

Other assets

 

278,213

 

 

241,352

Total assets

$

4,036,704

 

$

3,985,734

 

 

 

 

 

 

 

Liabilities, non-controlling interest and total equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Notes payable

$

16,925

 

$

15,732

 

Current maturities of long-term debt

 

-

 

 

65,000

 

Trade payables

 

316,460

 

 

298,869

 

Accrued compensation

 

83,598

 

 

78,582

 

Income taxes payable

 

29,173

 

 

23,229

 

Other accrued expenses

 

83,976

 

 

60,745

Total current liabilities

 

530,132

 

 

542,157

 

 

 

 

 

 

 

 

Long-term debt, net of current maturities

 

1,756,985

 

 

1,898,384

 

Accrued pension liabilities

 

88,806

 

 

80,214

 

Other liabilities

 

278,919

 

 

242,190

Total liabilities

 

2,654,842

 

 

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 – 51,906,663 and 51,241,190, for
2020 and 2019, respectively

 

51,907

 

 

51,241

 

Additional paid-in capital

 

157,867

 

 

130,295

 

Retained earnings

 

1,474,406

 

 

1,384,411

 

Accumulated other comprehensive loss

 

(302,859)

 

 

(343,600)

 

Total H.B. Fuller stockholders' equity

 

1,381,321

 

 

1,222,347

Non-controlling interest

 

541

 

 

442

Total equity

 

1,381,862

 

 

1,222,789

Total liabilities, non-controlling interest and total equity

$

4,036,704

 

$

3,985,734

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS of CASH FLOWS

H.B. Fuller Company and Subsidiaries

(In thousands)

 

 

 

 

Fiscal Years

 

 

 

 

November 28,

 

November 30,

 

December 1,

 

 

 

 

2020

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net income including non-controlling interests

 

$

123,788

 

$

130,844

 

$

171,232

Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

68,226

 

 

67,115

 

 

68,636

 

Amortization

 

 

70,591

 

 

74,091

 

 

76,490

 

Deferred income taxes

 

 

(24,730)

 

 

(29,028)

 

 

(47,446)

 

Income from equity method investments, net of dividends received

 

 

375

 

 

(39)

 

 

(3,172)

 

Gain on sale of assets

 

 

86

 

 

(24,104)

 

 

(3,050)

 

Share-based compensation

 

 

16,914

 

 

24,003

 

 

17,113

 

Pension and other postretirement benefit plan contributions

 

 

(5,479)

 

 

(8,063)

 

 

(6,558)

 

Pension and other postretirement benefit plan income

 

 

(14,763)

 

 

(11,300)

 

 

(14,332)

 

Non-cash (gain) loss on mark to market adjustment related to contingent consideration liability

 

 

800

 

 

-

 

 

1,126

 

Change in assets and liabilities, net of effects of acquisitions:

 

 

 

 

 

 

 

 

 

Trade receivables, net

 

 

(14,842)

 

 

(25,632)

 

 

(39,429)

 

 

Inventories

 

 

15,708

 

 

19,584

 

 

(17,068)

 

 

Other assets

 

 

38,412

 

 

(18,316)

 

 

(35,184)

 

 

Trade payables

 

 

23,130

 

 

11,553

 

 

25,401

 

 

Accrued compensation

 

 

2,588

 

 

1,342

 

 

(306)

 

 

Other accrued expenses

 

 

16,361

 

 

(1,882)

 

 

(4,282)

 

 

Income taxes payable

 

 

5,511

 

 

21,043

 

 

4,048

 

 

Other liabilities

 

 

24,566

 

 

448

 

 

(21,429)

 

Other

 

 

(15,683)

 

 

37,518

 

 

81,522

Net cash provided by operating activities

 

 

331,559

 

 

269,177

 

 

253,312

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchased property, plant and equipment

 

 

(87,288)

 

 

(61,982)

 

 

(68,263)

 

Purchased businesses, net of cash acquired

 

 

(9,500)

 

 

(8,292)

 

 

3,499

 

Purchased businesses assets

 

 

(5,623)

 

 

-

 

 

-

 

Purchased business remaining equity

 

 

-

 

 

(9,870)

 

 

-

 

Proceeds from sale of property, plant and equipment

 

 

1,506

 

 

11,133

 

 

2,923

 

Proceeds from sale of business

 

 

-

 

 

70,293

 

 

-

 

Cash received from government grant

 

 

-

 

 

8,881

 

 

-

 

Cash outflow related to government grant

 

 

(8,555)

 

 

(2,758)

 

 

-

Net cash (used in) provided by investing activities

 

 

(109,460)

 

 

7,405

 

 

(61,841)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

 

300,000

 

 

-

 

 

-

 

Repayment of long-term debt

 

 

(518,000)

 

 

(288,600)

 

 

(185,750)

 

Net proceeds from (payments on) notes payable

 

 

4,128

 

 

1,662

 

 

(13,276)

 

Dividends paid

 

 

(33,461)

 

 

(32,357)

 

 

(31,124)

 

Contingent consideration payment

 

 

(767)

 

 

(3,610)

 

 

-

 

Proceeds from stock options exercised

 

 

12,321

 

 

10,885

 

 

6,237

 

Repurchases of common stock

 

 

(3,432)

 

 

(3,026)

 

 

(4,688)

Net cash used in financing activities

 

 

(239,211)

 

 

(315,046)

 

 

(228,601)

 

Effect of exchange rate changes on cash and cash equivalents

 

 

5,455

 

 

(138)

 

 

(6,475)

Net change in cash and cash equivalents

 

 

(11,657)

 

 

(38,602)

 

 

(43,605)

 

Cash and cash equivalents at beginning of year

 

 

112,191

 

 

150,793

 

 

194,398

Cash and cash equivalents at end of year

 

$

100,534

 

$

112,191

 

$

150,793

 

Barbara Doyle
Investor Relations contact
651-236-5023

Source: H.B. Fuller Company

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