We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Clorox Co | NYSE:CLX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-1.44 | -1.03% | 138.23 | 139.98 | 138.19 | 139.50 | 2,036,240 | 01:00:00 |
UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 OR
15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 1, 2015
THE CLOROX
COMPANY
(Exact name of registrant
as specified in its charter)
Delaware | 1-07151 | 31-0595760 | ||
(State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer | ||
incorporation) | Identification No.) |
1221 Broadway, Oakland,
California 94612-1888
(Address of principal executive offices) (Zip
code)
(510)
271-7000
(Registrant's
telephone number, including area code)
Not
applicable
(Former name or
former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 Under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On May 1, 2015, The Clorox Company issued a press release announcing its financial results for its third quarter ended March 31, 2015. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
Attached hereto as Exhibit 99.2 and incorporated herein by reference is supplemental financial information.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit | Description | |
99.1 | Press Release dated May 1, 2015 of The Clorox Company | |
99.2 | Supplemental information regarding financial results |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE CLOROX COMPANY | |||
Date: May 1, 2015 | By: | / s/ Laura Stein | |
Executive Vice President | |||
General Counsel |
THE CLOROX COMPANY
FORM 8-K
INDEX TO EXHIBITS
Exhibit | Description |
99.1 | Press Release dated May 1, 2015 of The Clorox Company |
99.2 | Supplemental information regarding financial results |
PRESS RELEASE | |
The Clorox Company Reports 3 Percent Sales Growth in Q3; Updates Fiscal Year 2015 Outlook for Sales and EPS
OAKLAND, Calif., May 1, 2015 The Clorox Company (NYSE:CLX) today reported sales growth of 3 percent and a decrease of 5 percent diluted net earnings per share (EPS) from continuing operations for its third quarter, which ended March 31, 2015. On a currency-neutral basis, sales grew 5 percent.
Im pleased we delivered strong results in the third quarter, allowing us to raise our fiscal year sales outlook and update our EPS outlook, said Chief Executive Officer Benno Dorer. All U.S. segments contributed to sales growth, and sales for International grew strongly on a currency-neutral basis. Importantly, our continued incremental investments in demand building, including meaningful innovation, are paying off, as we saw the highest market share growth in about four years.
In addition, the company delivered gross margin expansion in the quarter, demonstrating that were on track with our strategy to deliver growth profitably through strong cost savings programs and price increases.
As we look to the remainder of the year and into fiscal 2016, I believe we have the right plans in place to address the challenges we continue to anticipate, including increasingly unfavorable foreign currencies and slowing international economies.
All results in this press release are reported on a continuing operations basis, unless otherwise stated. As previously announced, Corporación Clorox de Venezuela S.A. (Clorox Venezuela) discontinued operations effective Sept. 22, 2014. For the current and year-ago quarters, the results from Clorox Venezuela are now included in discontinued operations in the companys financial statements. Some information in this release is reported on a non-GAAP basis. See Non-GAAP Financial Information below and the tables toward the end of this press release for more information and reconciliations of key third-quarter results to the most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the U.S. (GAAP).
Fiscal Third-Quarter Results
Following is a summary of key third-quarter results. All comparisons are with the third quarter of fiscal year 2014, unless otherwise stated.
* | $1.08 diluted EPS (5% decrease) |
* | 1% volume growth |
* | 3% sales growth |
In the third quarter, Clorox delivered earnings from continuing operations of $144 million, or $1.08 diluted EPS, compared to $151 million, or $1.14 cents diluted EPS, in the year-ago quarter. Third-quarter results reflected higher performance-based incentive compensation costs as the company anticipates exceeding its annual incentive targets; whereas in the prior-year, earnings benefitted from a 12-cent impact when the company fell significantly below these targets. The impact of incentive compensation costs is reflected in selling and administrative expenses, cost of products sold, and research and development on the income statement. Third-quarter diluted EPS was also negatively impacted by higher manufacturing and logistics costs, increased investments in total demand-building programs and the impact of unfavorable foreign currency exchange rates. These factors were partially offset by higher sales, as well as the benefit of cost savings and price increases. Third-quarter commodity costs were flat.
In the third quarter, sales grew 3 percent, reflecting the benefit of price increases, favorable mix and assortment and higher volume. These factors were partially offset by 2 percentage points of unfavorable foreign currency exchange rates and 1 percentage point of increased trade promotion spending. Volume for the third quarter increased 1 percent, reflecting growth in the Cleaning, Lifestyle and International segments.
The companys third-quarter gross margin increased 110 basis points to 43.2 percent, reflecting the benefits of cost savings and price increases, favorable mix and assortment and flat commodity costs. These factors were partially offset by higher manufacturing and logistics costs and higher incentive compensation costs.
Fiscal year-to-date net cash provided by continuing operations was $481 million, compared with $444 million in the year-ago period, an increase of 8 percent. Contributing factors include lower incentive compensation and tax payments in the current period, as well as the initial funding of the companys non-qualified deferred compensation plan in the year-ago period. These benefits were partially offset by $25 million in payments to settle interest-rate hedges related to the company's issuance of long-term debt in December 2014. The company continues to use its cash flow to invest in its business, maintain debt leverage within its targeted range and return excess cash to stockholders through dividends and share repurchases. Fiscal-year-to date, the company has repurchased about 1.5 million shares of its common stock at a cost of approximately $158 million.
Discontinued
Operations
In the third quarter, the company
recognized $30 million of previously unrecognized tax benefits in discontinued
operations upon the expiration of the applicable statute of limitations.
Recognition of these previously disclosed tax benefits had no impact on the
companys cash flows or earnings from continuing operations.
Key Segment Results
Following is a summary of key
third-quarter results from continuing operations by reportable segment. All
comparisons are with the third quarter of fiscal year 2014, unless otherwise
stated.
Cleaning
(Laundry, Home Care, Professional Products)
● | 1% volume growth |
● | 1% sales growth |
● | 8% pretax earnings growth |
Volume growth in the segment was driven primarily by gains in Home Care, reflecting double-digit volume growth of Clorox® disinfecting wipes behind increased merchandising support and product innovation, as well as record shipments of toilet cleaners. Laundry volume results reflected lower shipments of Green Works® laundry detergent and lower shipments of Clorox bleach primarily due to the impact of the recent price increase. Home Care and Laundry grew market share in total, with gains across multiple brands. Pretax earnings growth reflected higher volume, as well as the benefit of cost savings and price increases, partially offset by an increase in demand-building investments.
Household
(Bags and Wraps, Charcoal, Cat Litter)
● | Flat volume |
● | 5% sales growth |
● | 34% pretax earnings growth |
Segment volume results reflected double-digit growth in Charcoal on top of high single-digit growth in the year-ago quarter. Charcoals strong results were driven primarily by increased merchandising support in anticipation of the grilling season. Offsetting factors include decreased shipments in Bags & Wraps, primarily due to the impact of price increases and lower shipments in Cat Litter, largely due to continuing competitive activity. The variance between volume and sales results was due primarily to the benefit of price increases in Bags & Wraps. Pretax earnings growth reflected higher sales, significant cost savings and the benefit of price increases. These factors were partially offset by higher logistics costs and an increase in demand-building investments.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
● | 2% volume growth |
● | 3% sales growth |
● | 6% pretax earnings growth |
Volume results in the segment were driven by gains in Natural Personal Care, largely due to product innovation in Burts Bees® lip and face-care products, including lip crayons and Renewal face products. Dressings and Sauces also grew volume primarily from increased distribution of Hidden Valley® dry mixes and dips. These results were partially offset by lower shipments in Water Filtration due to continued competitive activity and category softness. Pretax earnings growth reflected lower commodity costs, higher volume and the benefit of cost savings, partially offset by higher manufacturing and logistics and an increase in demand-building investments.
International
(All countries outside of the U.S.)
● | 1% volume growth |
● | Flat sales (10% growth, currency-neutral basis) |
● | 26% pretax earnings decrease |
The segments volume growth reflected gains in Mexico and Canada, partially offset by lower shipments in Argentina and Asia. Segment sales reflected the impact of unfavorable foreign currency exchange rates across most countries, offset by the benefit of price increases, favorable mix and assortment and higher volume. On a currency-neutral basis, segment sales grew 10 percent. Pretax earnings decreased $6 million primarily due to increases in selling and administrative expenses, driven by inflation and higher performance-based incentive compensation costs; the impact of unfavorable foreign currency exchange rates; higher manufacturing and logistics costs; and higher commodity costs. These factors were partially offset by the benefit of price increases, favorable mix and assortment and the benefit of cost savings.
Clorox Updates Outlook for Fiscal Year 2015
● | 1% to 2% sales growth (previously about 1% sales growth) |
● | EBIT margin about flat (unchanged) |
● | $4.45 to $4.55 diluted EPS range (previously $4.40 to $4.55) |
The company now anticipates fiscal-year 2015 sales to grow in the range of 1 percent to 2 percent. Cloroxs updated sales outlook reflects stronger results through the third quarter and more than 2 percentage points of impact from unfavorable foreign currency exchange rates. Other moderating factors include slowing economies in international markets and an increase in trade-promotion spending to drive the companys core business and trial of new products in a highly competitive environment.
Clorox continues to anticipate moderate gross margin expansion in fiscal year 2015, reflecting the benefit of cost savings and price increases. The company continues to anticipate commodity costs to be about flat due to energy cost declines. Offsetting factors to gross margin expansion include higher logistics costs, as well as the aforementioned increase in trade-promotion spending.
Clorox continues to anticipate EBIT margin to be about flat for fiscal year 2015, reflecting moderate gross margin expansion, offset by higher performance-based incentive compensation costs. The companys fiscal-year EBIT margin also reflects higher demand-building investments.
Clorox continues to anticipate its effective fiscal year 2015 tax rate to be about 34 percent.
Net of all these factors, Clorox now anticipates fiscal year 2015 diluted EPS from continuing operations in the range of $4.45 to $4.55.
For More Detailed Financial Information
Visit the Investors: Financial Reporting: Financial Results section of the companys website at TheCloroxCompany.com for the following:
* | Combined financial tables that include the schedules below |
* | Supplemental unaudited condensed volume and sales growth information |
* | Supplemental unaudited condensed gross margin driver information |
* | Supplemental unaudited reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) |
* | Supplemental balance sheet and cash flow information and free cash flow reconciliation (unaudited) |
* | Supplemental price-change information |
Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the companys website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with about 7,700 employees worldwide and fiscal year 2014 sales of $5.5 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags, wraps and containers; Kingsford® charcoal; Hidden Valley® and KC Masterpiece® dressings and sauces; Brita® water-filtration products and Burts Bees® natural personal care products. The company also markets brands for professional services, including Clorox Healthcare®, HealthLink®, Aplicare® and Dispatch® infection control products for the healthcare industry. More than 80 percent of the company's brands hold the No. 1 or No. 2 market share positions in their categories. Clorox's commitment to corporate responsibility includes making a positive difference in its communities. In fiscal year 2014, The Clorox Company and The Clorox Company Foundation contributed more than $16 million in combined cash grants, product donations, cause marketing and employee volunteerism. For more information, visit TheCloroxCompany.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. Except for historical information, matters discussed above, including statements about future volume, sales, costs, cost savings, earnings, cash flows, plans, objectives, expectations, growth, or profitability, are forward-looking statements based on management's estimates, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed above. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Exhibit 99.2 of the Companys Current Report on Form 8-K filed on December 4, 2014, as updated from time to time in the company's SEC filings. These factors include, but are not limited to: risks related to international operations, including political instability; government-imposed price controls or other regulations; foreign currency exchange rate controls, including periodic changes in such controls, fluctuations and devaluations; labor unrest and inflationary pressures, particularly in Argentina and other challenging markets; risks related to the possibility of nationalization, expropriation of assets, or other government action in foreign jurisdictions; risks related to the Companys discontinuation of operations in Venezuela; intense competition in the company's markets; changes in the companys leadership; worldwide, regional and local economic conditions and financial market volatility; volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities and increases in energy, transportation or other costs; the ability of the company to drive sales growth, increase price and market share, grow its product categories and achieve favorable product and geographic mix; dependence on key customers and risks related to customer consolidation and ordering patterns; costs resulting from government regulations; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; supply disruptions and other risks inherent in reliance on a limited base of suppliers; the ability of the company to implement and generate anticipated cost savings and efficiencies; the success of the company's business strategies; the impact of product liability claims, labor claims and other legal proceedings, including in foreign jurisdictions and the company's litigation related to its discontinued operations in Brazil; the ability of the company to develop and introduce commercially successful products; risks relating to acquisitions, new ventures and divestitures and associated costs, including the potential for asset impairment charges, related to, among others, intangible assets and goodwill; risks related to reliance on information technology systems, including potential security breaches, cyber attacks or privacy breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, or service interruptions; the company's ability to attract and retain key personnel; the company's ability to maintain its business reputation and the reputation of its brands; environmental matters including costs associated with the remediation of past contamination and the handling and/or transportation of hazardous substances; the impact of natural disasters, terrorism and other events beyond the company's control; the company's ability to maximize, assert and defend its intellectual property rights; any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its operations and financial results; the company's ability to maintain an effective system of internal controls; uncertainties relating to tax positions, tax disputes and changes in the company's tax rate; the accuracy of the company's estimates and assumptions on which its financial statement projections are based; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.
The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial
Information
This press release contains non-GAAP
financial information relating to sales growth, diluted EPS and EBIT margin. The
company has included reconciliations of these non-GAAP financial measures to the
most directly comparable financial measure calculated in accordance with GAAP.
See the end of this press release for these reconciliations.
The company disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the companys results reported in accordance with GAAP, including income taxes, interest income, interest expense and foreign exchange impact. The exclusion of foreign exchange impact is also referred to as currency-neutral. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the companys operations and are useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the companys consolidated financial statements presented in accordance with GAAP.
Media Relations
Aileen Zerrudo (510) 271-3075,
aileen.zerrudo@clorox.com
Kathryn Caulfield (510) 271-7209, kathryn.caulfield@clorox.com
Investor Relations
Landon Dunn (510) 271-7256,
landon.dunn@clorox.com
Steve Austenfeld (510) 271-2270, steve.austenfeld@clorox.com
For recent presentations made by company management and other investor materials, visit Investor Events on the companys website.
Condensed Consolidated Statements of
Earnings (Unaudited)
Dollars in millions,
except per share amounts
Three Months Ended | Nine Months Ended | |||||||||||||||
3/31/2015 | 3/31/2014 | 3/31/2015 | 3/31/2014 | |||||||||||||
Net sales | $ | 1,401 | $ | 1,366 | $ | 4,098 | $ | 4,017 | ||||||||
Cost of products sold | 796 | 791 | 2,343 | 2,303 | ||||||||||||
Gross profit | 605 | 575 | 1,755 | 1,714 | ||||||||||||
Selling and administrative expenses | 206 | 178 | 577 | 568 | ||||||||||||
Advertising costs | 124 | 120 | 372 | 362 | ||||||||||||
Research and development costs | 34 | 28 | 97 | 90 | ||||||||||||
Interest expense | 25 | 25 | 77 | 77 | ||||||||||||
Other income, net | (1 | ) | (2 | ) | - | (4 | ) | |||||||||
Earnings from continuing operations before income taxes | 217 | 226 | 632 | 621 | ||||||||||||
Income taxes on continuing operations | 73 | 75 | 215 | 213 | ||||||||||||
Earnings from continuing operations | 144 | 151 | 417 | 408 | ||||||||||||
Earnings (losses) from discontinued operations, net of tax | 30 | (14 | ) | (28 | ) | (20 | ) | |||||||||
Net earnings | $ | 174 | $ | 137 | $ | 389 | $ | 388 | ||||||||
Net earnings (losses) per share | ||||||||||||||||
Basic | ||||||||||||||||
Continuing operations | $ | 1.09 | $ | 1.16 | $ | 3.20 | $ | 3.15 | ||||||||
Discontinued operations | 0.22 | (0.11 | ) | (0.22 | ) | (0.16 | ) | |||||||||
Basic net earnings per share | $ | 1.31 | $ | 1.05 | $ | 2.98 | $ | 2.99 | ||||||||
Diluted | ||||||||||||||||
Continuing operations | $ | 1.08 | $ | 1.14 | $ | 3.14 | $ | 3.10 | ||||||||
Discontinued operations | 0.22 | (0.10 | ) | (0.21 | ) | (0.16 | ) | |||||||||
Diluted net earnings per share | $ | 1.30 | $ | 1.04 | $ | 2.93 | $ | 2.94 | ||||||||
Weighted average shares outstanding (in thousands) | ||||||||||||||||
Basic | 131,833 | 129,318 | 130,566 | 129,743 | ||||||||||||
Diluted | 134,115 | 131,555 | 133,090 | 132,004 |
Reportable Segment
Information
(Unaudited)
Dollars in
millions
Earnings (Losses) from Continuing Operations | ||||||||||||||||||||
Third Quarter | Net Sales | Before Income Taxes | ||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
3/31/15 | 3/31/14 | % Change (1) | 3/31/15 | 3/31/14 | % Change (1) | |||||||||||||||
Cleaning Segment | $ | 442 | $ | 437 | 1 | % | $ | 100 | $ | 93 | 8% | |||||||||
Household Segment | 451 | 428 | 5 | % | 102 | 76 | 34% | |||||||||||||
Lifestyle Segment | 243 | 237 | 3 | % | 71 | 67 | 6% | |||||||||||||
International Segment | 265 | 264 | 0 | % | 17 | 23 | -26% | |||||||||||||
Corporate | - | - | - | (73 | ) | (33 | ) | 121% | ||||||||||||
Total Company | $ | 1,401 | $ | 1,366 | 3 | % | $ | 217 | $ | 226 | -4% | (2) | ||||||||
Earnings (Losses) from Continuing Operations | ||||||||||||||||||||
Year-to-Date | Net Sales | Before Income Taxes | ||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
3/31/15 | 3/31/14 | % Change (1) | 3/31/15 | 3/31/14 | % Change (1) | |||||||||||||||
Cleaning Segment | $ | 1,359 | $ | 1,348 | 1 | % | $ | 331 | $ | 325 | 2% | |||||||||
Household Segment | 1,214 | 1,152 | 5 | % | 205 | 169 | 21% | |||||||||||||
Lifestyle Segment | 705 | 692 | 2 | % | 200 | 189 | 6% | |||||||||||||
International Segment | 820 | 825 | -1 | % | 67 | 87 | -23% | |||||||||||||
Corporate | - | - | - | (171 | ) | (149 | ) | 15% | ||||||||||||
Total Company | $ | 4,098 | $ | 4,017 | 2 | % | $ | 632 | $ | 621 | 2% | (2) |
(1) | Percentages based on rounded numbers. |
(2) | The decrease was primarily due to higher performance-based incentive compensation expenses compared to lower incentive compensation expenses in the prior year when the company fell significantly below its incentive targets |
Condensed Consolidated Balance Sheets
Dollars in millions
3/31/2015 | 6/30/2014 | 3/31/2014 | |||||||||
(Unaudited) | (Unaudited) | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 378 | $ | 329 | $ | 364 | |||||
Receivables, net | 528 | 546 | 551 | ||||||||
Inventories, net | 440 | 386 | 447 | ||||||||
Other current assets | 149 | 134 | 158 | ||||||||
Total current assets | 1,495 | 1,395 | 1,520 | ||||||||
Property, plant and equipment, net | 917 | 977 | 970 | ||||||||
Goodwill | 1,067 | 1,101 | 1,096 | ||||||||
Trademarks, net | 535 | 547 | 547 | ||||||||
Other intangible assets, net | 52 | 64 | 67 | ||||||||
Other assets | 162 | 174 | 174 | ||||||||
Total assets | $ | 4,228 | $ | 4,258 | $ | 4,374 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY | |||||||||||
Current liabilities | |||||||||||
Notes and loans payable | $ | 70 | $ | 143 | $ | 394 | |||||
Current maturities of long-term debt | 300 | 575 | 575 | ||||||||
Accounts payable | 397 | 440 | 388 | ||||||||
Accrued liabilities | 533 | 472 | 481 | ||||||||
Income taxes payable | - | 8 | - | ||||||||
Total current liabilities | 1,300 | 1,638 | 1,838 | ||||||||
Long-term debt | 1,796 | 1,595 | 1,595 | ||||||||
Other liabilities | 733 | 768 | 764 | ||||||||
Deferred income taxes | 97 | 103 | 124 | ||||||||
Total liabilities | 3,926 | 4,104 | 4,321 | ||||||||
Stockholders equity | |||||||||||
Common stock | 159 | 159 | 159 | ||||||||
Additional paid-in capital | 762 | 709 | 699 | ||||||||
Retained earnings | 1,832 | 1,739 | 1,667 | ||||||||
Treasury shares | (1,970 | ) | (2,036 | ) | (2,054 | ) | |||||
Accumulated other comprehensive net losses | (481 | ) | (417 | ) | (418 | ) | |||||
Stockholders equity | 302 | 154 | 53 | ||||||||
Total liabilities and stockholders equity | $ | 4,228 | $ | 4,258 | $ | 4,374 |
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See Non-GAAP Financial Information above for further information regarding the companys use of non-GAAP financial measures.
The reconciliations below are on a continuing operations basis
Third-Quarter and Fiscal Year-to-Date Sales Growth Reconciliation
Q3 | Q3 | Q3 YTD | Q3 YTD | |||||
Fiscal | Fiscal | Fiscal | Fiscal | |||||
2015 | 2014 | 2015 | 2014 | |||||
Total Sales Growth GAAP | 2.6% | -1.9% | 2.0% | 0.2% | ||||
Less: Foreign exchange | -2.0 | -2.9 | -2.3 | -2.1 | ||||
Currency Neutral Sales Growth - Non-GAAP | 4.6% | 1.0% | 4.3% | 2.3% |
The reconciliations below for fiscal year 2014 are provided as a reference point for the fiscal year 2015 outlook, and reflect the reclassification of Clorox Venezuela to discontinued operations in Q1FY15.
Fiscal Year EBIT Margin(1) Reconciliation
FY | |||
Fiscal | |||
2014 | |||
Earnings from continuing operations | $ | 884 | |
before income taxes GAAP | |||
Interest Income | -3 | ||
Interest Expense | 103 | ||
EBIT (1) Non-GAAP | $ | 984 | |
Net Sales | $ | 5,514 | |
EBIT margin(1) Non-GAAP | 17.8% |
(1) EBIT represents earnings from continuing operations before interest and taxes. EBIT margin is the ratio of EBIT to net sales.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the companys website TheCloroxCompany.com.
The Clorox Company |
Supplemental Unaudited Condensed Information Volume Growth
Reportable Segment |
% Change vs. Prior Year | |||||||||
FY14(1) | FY15(1) | Major Drivers of Change | ||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | YTD | ||
Cleaning | 0% | 3% | -5% | 0% | -1% | -1% | 3% | 1% | 1% | Q3 volume increase driven by higher shipments in Home Care, primarily from Clorox® Disinfecting Wipes, several new product launches and Clorox® toilet cleaners, partially offset by lower shipments of Green Works® laundry detergent, as well as Clorox® bleach primarily due to the recent price increase. |
Household | 2% | -1% | 5% | -2% | 1% | 4% | 3% | 0% | 2% | Q3 volume is flat reflecting higher shipments in Kingsford® Charcoal, offset by lower shipments in Bags and Wraps, primarily due to price increases, and Cat Litter. |
Lifestyle | 4% | -1% | -1% | 2% | 1% | 0% | 5% | 2% | 2% | Q3 volume increase driven by higher shipments of Burts Bees® lip and face care products and Hidden Valley® salad dressings, partially offset by lower shipments of Brita® products. |
International | 1% | 3% | 1% | 2% | 2% | 5% | 5% | 1% | 4% | Q3 volume increase driven by higher shipments in Mexico and Canada, partially offset by lower shipments in Argentina and Asia. |
Total Company | 1% | 1% | 0% | 0% | 1% | 1% | 4% | 1% | 2% |
Supplemental Unaudited Condensed Information Sales Growth
Reportable Segment |
% Change vs. Prior Year | |||||||||
FY14(1) | FY15(1) | Major Drivers of Change | ||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | YTD | ||
Cleaning | 1% | 2% | -4% | -1% | 0% | -2% | 3% | 1% | 1% | Q3 variance between volume and sales was flat. |
Household | 5% | -1% | 4% | -2% | 1% | 5% | 5% | 5% | 5% | Q3 variance between volume and sales driven by the benefit of price increases in Bags and Wraps. |
Lifestyle | 5% | 0% | -3% | 2% | 1% | -1% | 4% | 3% | 2% | Q3 variance between volume and sales driven by favorable mix and assortment. |
International | -2% | 1% | -6% | -6% | -3% | 0% | -2% | 0% | -1% | Q3 variance between volume and sales driven by unfavorable foreign currency exchange rates, partially offset by the benefit of price increases and favorable mix and assortment. |
Total Company | 2% | 0% | -2% | -2% | 0% | 1% | 3% | 3% | 2% |
(1) | Volume growth and sales growth percentage changes for the International reportable segment and Total Company reflect the reclassification of Clorox Venezuela to discontinued operations effective Q1 fiscal 2015 for all periods presented. |
The Clorox Company |
Supplemental Unaudited Condensed Information Gross Margin Drivers
The table below provides details on the drivers of gross margin change versus the prior year.
Gross Margin Change vs. Prior Year (basis points) | ||||||||
Driver | FY14 | FY15 | ||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |
Cost Savings | +180 | +150 | +140 | +110 | +140 | +120 | +130 | +170 |
Price Changes | +80 | +70 | +80 | +80 | +80 | +90 | +100 | +140 |
Market Movement (commodities) | -110 | -140 | -120 | -110 | -120 | -40 | -90 | - |
Manufacturing & Logistics | -140 | -120 | -120 | -240 | -160 | -170 | -90 | -120 |
All other(1) | -10 | -20 | -10 | -10 | -10 | -70 | -40 | -80 |
Impact of Clorox Venezuela
reclassification to discontinued operations(2) |
+30 | +10 | - | +40 | +20 | - | - | - |
Change vs prior year | +30 | -50 | -30 | -130 | -50 | -70 | +10 | +110 |
Gross Margin (%) | 43.5% | 42.4% | 42.1% | 42.9% | 42.7% | 42.8% | 42.5% | 43.2% |
(1) | In Q3 of fiscal year 2015, All other includes about -60bps for higher performance-based incentive compensation costs vs. the year-ago quarter. |
(2) | Other than the impact of the Clorox Venezuela reclassification, none of the fiscal year 2013 and 2014 gross margin drivers have changed; all effects of the Clorox Venezuela reclassification to discontinued operations are reflected in this line. |
The Clorox Company |
Supplemental Information Balance
Sheet
(Unaudited)
As of March
31, 2015
(Adjusted to reflect Clorox Venezuela reclassified to discontinued operations)
Working Capital Update
Q3 | ||||||
FY 2015 ($ millions) |
FY 2014 ($ millions) |
Change ($ millions) |
Days(5) FY 2015 |
Days(5) FY 2014 |
Change | |
Receivables, net | $528 | $551 | -$23 | 32 | 35 | -3 |
Inventories | $440 | $447 | -$7 | 50 | 52 | -2 |
Accounts payable (1) | $397 | $388 | $9 | 44 | 44 | 0 |
Accrued liabilities | $533 | $481 | $52 | |||
Total WC (2) | $187 | $287 | -$100 | |||
Total WC % net sales (3) | 3.3% | 5.3% | ||||
Average WC (2) | $203 | $304 | -$101 | |||
Average WC % net sales (4) | 3.6% | 5.6% |
Receivables, net: Decrease driven primarily by timing of sales and unfavorable foreign exchange rates.
Accrued liabilities: Increase driven primarily by year over year higher performance-based incentive compensation costs.
(1) | Days of accounts payable is calculated as follows: average accounts payable / [(cost of products sold + change in inventory) / 90]. |
(2) | Working capital (WC) is defined in this context as current assets minus current liabilities excluding cash and short-term debt, based on end of period balances. Average working capital represents a two-point average of working capital. |
(3) | Represents working capital at the end of the period divided by annualized net sales (current quarter net sales x 4). |
(4) | Represents a two-point average of working capital divided by annualized net sales (current quarter net sales x 4). |
(5) | Days calculations based on a two-point average. |
Supplemental Information Cash
Flow
(Unaudited)
For the quarter ended March
31, 2015
Capital expenditures for the third quarter were $23 million versus $24 million in the year-ago quarter.
Depreciation and amortization for the third quarter was $41 million versus $43 million in the year ago quarter.
Net cash provided by continuing operations in the third quarter was $214 million, or 15 percent of sales.
The Clorox Company |
Supplemental Unaudited Condensed Information
Fiscal Year to Date Free Cash Flow Reconciliation
Q3 Fiscal YTD 2015 |
Q3 Fiscal YTD 2014 | |||
Net cash provided by continuing operations GAAP | $481 | $444 | ||
Less: Capital expenditures | 83 | 87 | ||
Free cash flow non-GAAP (1) | $398 | $357 | ||
Free cash flow as a percent of sales non-GAAP (1) | 9.7% | 8.9% | ||
Net sales | $4,098 | $4,017 |
(1) | In accordance with the SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management uses free cash flow and free cash flow as a percent of sales to help assess the cash generation ability of the business and funds available for investing activities, such as acquisitions, investing in the business to drive growth, and financing activities, including debt payments, dividend payments and share repurchases. Free cash flow does not represent cash available only for discretionary expenditures, since the Company has mandatory debt service requirements and other contractual and non-discretionary expenditures. In addition, free cash flow may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. |
The Clorox Company |
Supplemental unaudited reconciliation of earnings from continuing operations before income taxes to EBIT(1)(3) and EBITDA (2)(3)
(Adjusted to reflect Clorox Venezuela reclassified to discontinued operations)
Dollars in millions and percentages based on rounded numbers
FY 2014 | FY 2015 | |||||||||||||||||||||||||||||||
Q1 |
Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
9/30/13 | 12/31/13 | 3/31/14 | 6/30/14 | 6/30/14 | 9/30/14 | 12/31/14 | 3/31/15 | |||||||||||||||||||||||||
Earnings from continuing operations | $ | 211 | $ | 184 | $ | 226 | $ | 263 | $ | 884 | $ | 218 | $ | 197 | $ | 217 | ||||||||||||||||
before income taxes | ||||||||||||||||||||||||||||||||
Interest income | (1 | ) | - | (1 | ) | (1 | ) | (3 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||
Interest expense | 26 | 26 | 25 | 26 | 103 | 26 | 26 | 25 | ||||||||||||||||||||||||
EBIT (1)(3) | 236 | 210 | 250 | 288 | 984 | 243 | 222 | 241 | ||||||||||||||||||||||||
EBIT margin (1)(3) | 17.6% | 16.1% | 18.3% | 19.2% | 17.8% | 18.0% | 16.5% | 17.2% | ||||||||||||||||||||||||
Depreciation and amortization | 43 | 45 | 43 | 46 | 177 | 43 | 42 | 41 | ||||||||||||||||||||||||
EBITDA (2)(3) | $ | 279 | $ | 255 | $ | 293 | $ | 334 | $ | 1,161 | $ | 286 | $ | 264 | $ | 282 | ||||||||||||||||
EBITDA margin (2)(3) | 20.8% | 19.5% | 21.4% | 22.3% | 21.1% | 21.2% | 19.6% | 20.1% | ||||||||||||||||||||||||
Net sales | $ | 1,343 | $ | 1,308 | $ | 1,366 | $ | 1,497 | $ | 5,514 | $ | 1,352 | $ | 1,345 | $ | 1,401 | ||||||||||||||||
Total debt (4) | $2,313 | $2,224 | $2,672 | $2,166 | ||||||||||||||||||||||||||||
Debt to EBITDA (3)(5) | 2.0 | 1.9 | 2.3 | 1.9 |
(1) | EBIT (a non-GAAP measure) represents earnings from continuing operations before income taxes (a GAAP measure), excluding interest income and interest expense, as reported above. EBIT margin is the ratio of EBIT to net sales. |
(2) | EBITDA (a non-GAAP measure) represents earnings from continuing operations before income taxes (a GAAP measure), excluding interest income, interest expense, depreciation and amortization, as reported above. EBITDA margin is the ratio of EBITDA to net sales. |
(3) | In accordance with the SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management believes the presentation of EBIT, EBIT margin, EBITDA, EBITDA margin and debt to EBITDA provides additional useful information to investors about current trends in the business. |
(4) | Total debt represents the sum of notes and loans payable, current maturities of long-term debt, and long-term debt. |
(5) | Debt to EBITDA (a non-GAAP measure) represents total debt divided by EBITDA for the trailing four quarters. The Company calculates debt to Consolidated EBITDA for compliance with its debt covenants using Consolidated EBITDA for the trailing four quarters, as contractually defined. |
The Clorox Company | |
Updated: 5-1-15 |
U.S. Retail Pricing Actions from CY2009 - CY2015
Brand / Product | Average Price Change | Effective Date | ||||
Home Care | ||||||
Green Works® cleaners | -7 to -21% | May 2010 | ||||
Formula 409® | +6% | August 2011 | ||||
Clorox Clean-Up® cleaners | +8% | August 2011 | ||||
Clorox® Toilet Bowl Cleaner | +5% | August 2011 | ||||
Liquid-Plumr® products | +5% | August 2011 | ||||
Pine-Sol® cleaners | ||||||
Clorox Clean-Up®, Formula 409®, | +17% | April 2012 | ||||
and Clorox® Disinfecting Bathroom spray cleaners | +5% | March 2013 | ||||
Green Works® cleaners | +21% | July 2014 | ||||
Laundry | ||||||
Green Works® liquid detergent | approx. -30% | May 2010 | ||||
Clorox® liquid bleach | +12% | August 2011 | ||||
Clorox 2® stain fighter and color booster | +5% | August 2011 | ||||
Clorox® liquid bleach | +7% | February 2015 | ||||
Glad | ||||||
GladWare® disposable containers | -7% | April 2009 | ||||
Glad® trash bags | -7% | May 2009 | ||||
Glad® trash bags | +5% | August 2010 | ||||
Glad® trash bags | +10% | May 2011 | ||||
Glad® wraps | +7% | August 2011 | ||||
Glad® food bags | +10% | November 2011 | ||||
GladWare® disposable containers | +8% | July 2012 | ||||
Glad® trash bags | +6% | March 2014 | ||||
Glad® ClingWrap | +5% | March 2014 | ||||
Glad® trash bags | +6% | November 2014 | ||||
Glad® wraps | +5% | January 2015 | ||||
Litter | ||||||
Cat litter | -8 to -9% | March 2010 | ||||
Cat litter | +5% | May 2012 | ||||
Food | ||||||
Hidden Valley Ranch® salad dressing | +7% | August 2011 | ||||
Charcoal | ||||||
Charcoal and lighter fluid | +7 to +16% | January 2009 | ||||
Charcoal and lighter fluid | +8 to 10% | January 2012 | ||||
Charcoal | +6% | December 2012 | ||||
Brita | ||||||
Brita® pitchers | +3% | August 2011 | ||||
Brita® pitchers and filters | +5% | July 2012 | ||||
Natural Personal Care | ||||||
Burts Bees® lip balm | +10% | July 2013 | ||||
Notes: |
● | Individual SKUs vary within the range. |
● | This communication reflects pricing actions on primary items, and does not reflect pricing actions on our Professional Products business. |
1 Year Clorox Chart |
1 Month Clorox Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions