![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
H B Fuller Co | NYSE:FUL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
2.88 | 3.46% | 86.09 | 86.29 | 83.32 | 83.62 | 282,634 | 20:45:33 |
Q4 Reported EPS (diluted) of $0.80; Adjusted EPS (diluted) of $1.32, up 27% year-on-year Company achieves new record for Q4 and fiscal year adjusted EBITDA margin Q4 Adjusted EBITDA up 22% and Adjusted EBITDA margin up 440 basis points versus Q4 2022 FY 2023 cash flow from operations increased 48% year-on-year to $378 million
H.B. Fuller Company (NYSE: FUL) today reported financial results for its fourth quarter and fiscal year that ended December 2, 2023.
Fourth Quarter 2023 Noteworthy Items:
Summary of Fourth Quarter 2023 Results:
The Company’s net revenue for the fourth quarter of fiscal 2023 was $903 million, down 5.8% versus the fourth quarter of fiscal 2022. Organic revenue declined 3.5% year-on-year, with pricing adjustments reducing organic revenue by 3.4% and volume reducing organic revenue by 0.1%. Foreign currency translation increased net revenue by 0.3%, acquisitions increased net revenue by 4.4%, and the impact of one less week during the fourth quarter reduced net revenue by 7.0%. Net revenue increased 1.2% year-on-year on a comparable 13-week basis in the fourth quarter.
Gross profit in the fourth quarter of fiscal 2023 was $274 million. Adjusted gross profit was $283 million. Adjusted gross profit margin of 31.3% increased 510 basis points year-on-year. Pricing and raw material cost actions, restructuring benefits and general cost reductions drove the increase in adjusted gross margin year-on-year.
Selling, general and administrative (SG&A) expense was $160 million in the fourth quarter of fiscal 2023 and adjusted SG&A was $156 million, effectively flat year-on-year. Continued cost management and additional restructuring benefits offset inflation in wages and services and the incremental SG&A costs associated with acquisitions completed over the previous year.
Net income attributable to H.B. Fuller for the fourth quarter of fiscal 2023 was $45 million, or $0.80 per diluted share. Adjusted net income attributable to H.B. Fuller for the fourth quarter of fiscal 2023 was $74 million. Adjusted EPS was $1.32 per diluted share, up 27% year-on-year driven by strong operating income growth.
Adjusted EBITDA in the fourth quarter of fiscal 2023 was $173 million, up 22.4% year-on-year. Adjusted EBITDA margin increased 440 basis points year-on-year to 19.1%, driven by the balance of raw material and price movements versus the prior year’s fourth quarter, as well as restructuring savings. This year’s fourth quarter had one less week versus the prior year’s fourth quarter and this unfavorably impacted adjusted EBITDA growth by approximately $10 million.
“I am proud of our leaders for exceptional execution throughout the year, as evidenced by strong profit growth and record margins. Across the organization, our teams proactively managed the changing price and raw material dynamics successfully and implemented decisive restructuring measures in the face of unprecedented customer destocking, which we believe is largely behind us, to deliver these results and position H.B. Fuller for continued future profit growth, margin expansion and strong cash flow,” said Celeste Mastin, H.B. Fuller president and chief executive officer.
“As the market leader in innovation, focused on providing highly customized solutions for our customers, we have successfully transformed our portfolio into one that is concentrated in the highly specified areas of our market segments. As such, we have begun to take our portfolio management approach to the next level by proactively driving capital allocation to the highest margin, highest growth market segments. We have compelling growth opportunities in front of us and we are confident in our capabilities to continue to transform H.B. Fuller and achieve an adjusted EBITDA margin target greater than 20 percent within the next 3 to 5 years.
“As we enter fiscal year 2024, we are confident in our outlook for positive organic growth and achieving further EBITDA margin expansion. We are successfully executing our strategy to deploy capital to the highest return opportunities, innovating with speed to deliver solutions for our customers, driving efficiencies throughout our manufacturing footprint, and achieving meaningful synergies from our collections of acquisitions.”
Fiscal Year 2023 Noteworthy Items:
Balance Sheet and Working Capital:
Net debt at the end of the fourth quarter of fiscal 2023 was $1,659 million, down $131 million sequentially versus the third quarter and down $26 million year-on-year. The sequential reduction in net debt, together with growth in adjusted EBITDA, reduced the ratio of net debt-to-adjusted EBITDA from 3.3X to 2.9X sequentially.
Net working capital in the fourth quarter of fiscal 2023 declined $74 million sequentially versus the third quarter and $58 million year-on-year. As a percentage of annualized net revenue, net working capital declined 200 basis points sequentially, and 180 basis points year-on-year on a comparable 52-week basis, to 16.1%.
Fiscal 2024 Outlook:
Conference Call:
The Company will hold a conference call on January 18, 2024, at 9:30 a.m. CT (10:30 a.m. ET) to discuss its results. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the Company’s website at https://investors.hbfuller.com. Participants must register prior to accessing the webcast using this link and should do so at least 10 minutes prior to the start of the call to install and test any necessary software and audio connections. A telephone replay of the conference call will be available from 12:30 p.m. CT on January 18, 2024, to 10:59 p.m. CT on January 25, 2024. To access the telephone replay dial 1-800-770-2030 (toll free) or 1-647-362-9199, and enter Conference ID: 6370505.
Regulation G
The information presented in this earnings release regarding consolidated and segment organic revenue growth, 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 U.S. generally accepted accounting principles (U.S. GAAP) and should not be construed as an alternative to the reported results determined in accordance with U.S. 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 U.S. 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 2023 Outlook, 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 and sealants to improve products and lives. With fiscal 2023 net revenue of $3.5 billion, H.B. Fuller’s commitment to innovation and sustainable adhesive solutions 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. 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 federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases. These statements are subject to various risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including but not limited to the following: the availability and pricing of raw materials; the impact of potential cybersecurity attacks and security breaches; the impact on the supply chain, raw material costs and pricing of our products due to military conflict, including between Russia and Ukraine and Israel and Hamas; the consequences of the COVID-19 outbreak and other pandemics on our operations and financial results; the impact on our margins and product demand due to inflationary pressures; the substantial amount of debt we have incurred to finance our acquisition of Royal, our ability to repay or refinance our debt or to 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, the effect of debt covenants that limit the discretion of management in operating the business or in paying dividends; our ability to pay dividends and to pursue growth opportunities if we continue to pay dividends according to our current dividend policy; our ability to acquire and integrate complementary businesses; our ability to achieve expected synergies, cost savings and operating efficiencies from our restructuring initiatives and operational improvement projects within the expected time frames or at all; our ability to effectively implement Project ONE; uncertain political and economic conditions; fluctuations in product demand; competing products and pricing; our geographic and product mix; disruptions to our relationships with our major customers and suppliers; failures in our information technology systems; regulatory compliance across our global footprint; trade policies and economic sanctions impacting our markets; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and investigations, including for product liability and environmental matters; impairment charges on our goodwill or long-lived assets; the effect of new accounting pronouncements and accounting charges and credits; and similar matters.
Additional information about these various risks and uncertainties can be found in the “Risk Factors” section of our Form 10-K filings, and any updates to the risk factors in our Form 10-Q and 8-K filings with the SEC, but there may be other risks and uncertainties that we are unable to identify at this time or that we do not currently expect to have a material impact on the business. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.
H.B. FULLER COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
Three Months Ended
Three Months Ended
December 2,
Percent of
December 3,
Percent of
2023
Net Revenue
2022
Net Revenue
Net revenue
$
902,879
100.0
%
$
958,213
100.0
%
Cost of sales
(629,037
)
(69.7
)%
(710,092
)
(74.1
)%
Gross profit
273,842
30.3
%
248,121
25.9
%
Selling, general and administrative expenses
(160,440
)
(17.8
)%
(157,872
)
(16.5
)%
Other income, net
4,918
0.5
%
251
0.0
%
Interest expense
(33,297
)
(3.7
)%
(30,046
)
(3.1
)%
Interest income
1,217
0.1
%
1,609
0.2
%
Income before income taxes and income from equity method investments
86,240
9.6
%
62,063
6.5
%
Income taxes
(42,274
)
(4.7
)%
(15,163
)
(1.6
)%
Income from equity method investments
1,036
0.1
%
1,429
0.1
%
Net income including non-controlling interest
45,002
5.0
%
48,329
5.0
%
Net income attributable to non-controlling interest
(11
)
(0.0
)%
(24
)
(0.0
)%
Net income attributable to H.B. Fuller
$
44,991
5.0
%
$
48,305
5.0
%
Basic income per common share attributable to H.B. Fuller
$
0.83
$
0.90
Diluted income per common share attributable to H.B. Fuller
$
0.80
$
0.87
Weighted-average common shares outstanding:
Basic
54,491
53,824
Diluted
56,161
55,472
Dividends declared per common share
$
0.205
$
0.190
H.B. FULLER COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
Year Ended
Year Ended
December 2,
Percent of
December 3,
Percent of
2023
Net Revenue
2022
Net Revenue
Net revenue
$
3,510,934
100.0
%
$
3,749,183
100.0
%
Cost of sales
(2,502,037
)
(71.3
)%
(2,785,484
)
(74.3
)%
Gross profit
1,008,897
28.7
%
963,699
25.7
%
Selling, general and administrative expenses
(653,760
)
(18.6
)%
(640,981
)
(17.1
)%
Other income, net
9,682
0.3
%
12,952
0.3
%
Interest expense
(134,602
)
(3.8
)%
(91,521
)
(2.4
)%
Interest income
3,943
0.1
%
7,779
0.2
%
Income before income taxes and income from equity method investments
234,160
6.7
%
251,928
6.7
%
Income taxes
(93,529
)
(2.7
)%
(77,186
)
(2.1
)%
Income from equity method investments
4,357
0.1
%
5,665
0.2
%
Net income including non-controlling interest
144,988
4.1
%
180,407
4.8
%
Net income attributable to non-controlling interest
(82
)
(0.0
)%
(94
)
(0.0
)%
Net income attributable to H.B. Fuller
$
144,906
4.1
%
$
180,313
4.8
%
Basic income per common share attributable to H.B. Fuller
$
2.67
$
3.37
Diluted income per common share attributable to H.B. Fuller
$
2.59
$
3.26
Weighted-average common shares outstanding:
Basic
54,332
53,580
Diluted
55,958
55,269
Dividends declared per common share
$
0.805
$
0.738
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands, except per share amounts (unaudited)
Three Months Ended
Year Ended
December 2,
December 3,
December 2,
December 3,
2023
2022
2023
2022
Net income attributable to H.B. Fuller
$
44,991
$
48,305
$
144,906
$
180,313
Adjustments:
Acquisition project costs 1
4,765
1,822
16,874
10,830
Organizational realignment 2
10,549
1,471
29,900
6,386
Royal restructuring and integration 3
-
1,467
-
2,474
Project One
2,193
2,326
9,815
9,885
Other 4
(3,903
)
4,524
(611)
12,791
Discrete tax items 5
16,955
1,610
26,085
9,308
Income tax effect on adjustments 6
(1,158
)
(3,911
)
(10,604
)
(10,699
)
Adjusted net income attributable to H.B. Fuller 7
74,392
57,614
216,365
221,288
Add:
Interest expense
33,297
30,046
131,913
91,547
Interest income
(1,217
)
(1,609
)
(3,943
)
(7,790
)
Income taxes
26,477
17,464
78,047
78,576
Depreciation and Amortization expense 8
39,653
37,469
158,456
146,394
Adjusted EBITDA 7
172,602
140,984
580,838
530,015
Diluted Shares
56,161
55,472
55,958
55,269
Adjusted diluted income per common share attributable to H.B. Fuller 7
$
1.32
$
1.04
$
3.87
$
4.00
Adjusted net revenue
$
902,879
$
958,213
$
3,510,934
$
3,749,183
Adjusted EBITDA margin 7
19.1
%
14.7
%
16.5
%
14.1
%
1 Acquisition project costs include costs related to integrating and accounting for acquisitions.
2 Organizational realignment includes costs incurred as a direct result of the organizational realignment program, including compensation for employees supporting the program, consulting expense and operational inefficiencies related to the closure of production facilities and consolidation of business activities.
3 Royal restructuring and integration program includes costs incurred as a direct result of the Royal restructuring and integration program including compensation for employees supporting the program, consulting expense and operational inefficiencies related to the closure of production facilities and consolidation of business activities.
4 Other expenses for the year ended December 3, 2022, include a $3.3 million non-cash charge related to the wind down and settlement of the Company’s Canadian defined benefit pension plan, $1.3 million of hedging costs related to the Russian ruble devaluation driven by the war in Ukraine, $1.2 million of transactional tax expense associated with an audit settlement, other expenses for COVID-19 testing, vaccinations and exceptional medical claims, and non-cash gains and losses related to legal entity consolidations.
5 Discrete tax items for the year ended December 2, 2023 are related to the tax impact of withholding tax recorded on earnings that are no longer permanently reinvested, as well as other various U.S. and foreign tax matters. Discrete tax items for the year ended December 3, 2022 are related to the revaluation of cross-currency swap agreements due to depreciation of the Euro versus the U.S. Dollar, as well as various foreign tax matters offset by the tax effect of legal entity mergers.
6 The income tax effect on adjustments represents the difference between income taxes on net income before income taxes and income from equity method investments reported in accordance with U.S. GAAP and adjusted net income before income taxes and income from equity method investments.
7 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.
8 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller totaling ($1,036) and ($1,384) for the three and twelve months ended December 2, 2023, respectively and ($123) and ($582) for the three and twelve months ended December 3, 2022, respectively.
H.B. FULLER COMPANY AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
In thousands (unaudited)
Three Months Ended
Year Ended
December 2,
December 3,
December 2,
December 3,
2023
2022
2023
2022
Net Revenue:
Hygiene, Health and Consumable Adhesives
$
411,085
$
443,528
$
1,601,487
$
1,695,934
Engineering Adhesives
365,735
395,053
1,428,744
1,532,639
Construction Adhesives
126,059
119,632
480,703
520,610
Corporate unallocated
-
-
-
-
Total H.B. Fuller
$
902,879
$
958,213
$
3,510,934
$
3,749,183
Segment Operating Income:
Hygiene, Health and Consumable Adhesives
$
65,614
$
42,836
$
215,088
$
165,786
Engineering Adhesives
57,539
53,607
187,346
168,873
Construction Adhesives
3,772
957
5,961
22,989
Corporate unallocated
(13,523
)
(7,151
)
(53,258
)
(34,930
)
Total H.B. Fuller
$
113,402
$
90,249
$
355,137
$
322,718
Adjusted EBITDA 7
Hygiene, Health and Consumable Adhesives
$
81,677
$
57,684
$
275,802
$
223,988
Engineering Adhesives
74,020
70,487
255,778
235,948
Construction Adhesives
15,933
14,571
55,517
74,187
Corporate unallocated
972
(1,758
)
(6,259
)
(4,108
)
Total H.B. Fuller
$
172,602
$
140,984
$
580,838
$
530,015
Adjusted EBITDA Margin 7
Hygiene, Health and Consumable Adhesives
19.9
%
13.0
%
17.2
%
13.2
%
Engineering Adhesives
20.2
%
17.8
%
17.9
%
15.4
%
Construction Adhesives
12.6
%
12.2
%
11.5
%
14.3
%
Corporate unallocated
NMP
NMP
NMP
NMP
Total H.B. Fuller
19.1
%
14.7
%
16.5
%
14.1
%
NMP = non-meaningful percentage
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands, except per share amounts (unaudited)
Three Months Ended
Year Ended
December 2,
December 3,
December 2,
December 3,
2023
2022
2023
2022
Income before income taxes and income from equity method investments
$
86,240
$
62,063
$
234,160
$
251,928
Adjustments:
Acquisition project costs 1
4,765
1,822
16,874
10,830
Organizational realignment 2
10,549
1,471
29,900
6,386
Royal restructuring and integration 3
-
1,467
-
2,474
Project One
2,193
2,326
9,815
9,885
Other 4
(3,903
)
4,524
(611
)
12,791
Adjusted income before income taxes and income from equity method investments 9
$
99,844
$
73,673
$
290,138
$
294,294
9 Adjusted income before income taxes and income from equity investments is a non-GAAP financial measure. Adjusted income before income taxes and income from equity investments is defined as income before income taxes and income from equity investments before the specific adjustments shown above. The table above provides a reconciliation of adjusted income before income taxes and income from equity investments to income before income taxes and income from equity investments, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands, except per share amounts (unaudited)
Three Months Ended
Year Ended
December 2,
December 3,
December 2,
December 3,
2023
2022
2023
2022
Income Taxes
$
(42,274
)
$
(15,163
)
$
(93,529
)
$
(77,186
)
Adjustments:
Acquisition project costs 1
(405
)
(613
)
(3,127
)
(2,767
)
Organizational realignment 2
(898
)
(495
)
(5,206
)
(1,635
)
Royal restructuring and integration 3
-
(494
)
-
(707
)
Project One
(187
)
(783
)
(1,848
)
(2,067
)
Other 4
332
(1,526
)
(422
)
(3,522
)
Discrete tax items 5
16,955
1,610
26,085
9,308
Adjusted income taxes 10
$
(26,477
)
$
(17,464
)
$
(78,047
)
$
(78,576
)
Adjusted income before income taxes and income from equity method investments
$
99,844
$
73,673
$
290,138
$
294,294
Adjusted effective income tax rate 10
26.5
%
23.7
%
26.9
%
26.7
%
10 Adjusted income taxes and adjusted effective income tax rate are non-GAAP financial measures. Adjusted income taxes is defined as income taxes before the specific adjustments shown above. Adjusted effective income tax rate is defined as income taxes divided by adjusted income before income taxes and income from equity method investments. The table above provides a reconciliation of adjusted income taxes and adjusted effective income tax rate to income taxes, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands (unaudited)
Three Months Ended
Year Ended
December 2,
December 3,
December 2,
December 3,
2023
2022
2023
2022
Net revenue
$
902,879
$
958,213
$
3,510,934
$
3,749,183
Gross profit
$
273,842
$
248,121
$
1,008,897
$
963,699
Gross profit margin
30.3
%
25.9
%
28.7
%
25.7
%
Adjustments:
Acquisition project costs 1
529
738
3,146
1,058
Organizational realignment 2
8,136
1,211
18,108
3,207
Royal restructuring and integration 3
-
329
-
706
Project ONE
223
-
223
6
Other 4
52
472
530
1,830
Adjusted gross profit 11
$
282,782
$
250,871
$
1,030,904
$
970,506
Adjusted gross profit margin 11
31.3
%
26.2
%
29.4
%
25.9
%
11 Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin is defined as gross profit and gross profit margin excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted gross profit and gross profit margin to gross profit and gross profit margin, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands (unaudited)
Three Months Ended
Year Ended
December 2,
December 3,
December 2,
December 3,
2023
2022
2023
2022
Selling, general and administrative expenses
$
(160,440
)
$
(157,872
)
$
(653,760
)
$
(640,981
)
Adjustments:
Acquisition project costs 1
4,236
1,084
13,831
9,772
Organizational realignment 2
2,333
260
11,712
4,393
Royal restructuring and integration 3
-
1,138
-
1,794
Project ONE
1,969
2,326
9,592
9,879
Other 4
(3,954
)
(408
)
(3,882
)
2,284
Adjusted selling, general and administrative expenses 12
$
(155,856
)
$
(153,472
)
$
(622,507
)
$
(612,859
)
12 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)
Three Months Ended:
Hygiene, Health and Consumable
Engineering
Construction
Corporate
H.B. Fuller
December 2, 2023
Adhesives
Adhesives
Adhesives
Total
Unallocated
Consolidated
Net income attributable to H.B. Fuller
$
67,438
$
58,857
$
5,682
$
131,977
$
(86,986
)
$
44,991
Adjustments:
Acquisition project costs 1
-
-
-
-
4,765
4,765
Organizational realignment 2
-
-
-
-
10,549
10,549
Royal restructuring and integration 3
-
-
-
-
-
-
Project One
-
-
-
-
2,193
2,193
Other 4
-
-
-
-
(3,903)
(3,903)
Discrete tax items 5
-
-
-
-
16,955
16,955
Income tax effect on adjustments 6
-
-
-
-
(1,158
)
(1,158
)
Adjusted net income attributable to H.B. Fuller 7
67,438
58,857
5,682
131,977
(57,585
)
74,392
Add:
Interest expense
-
-
-
-
33,297
33,297
Interest income
-
-
-
-
(1,217
)
(1,217
)
Income taxes
-
-
-
-
26,477
26,477
Depreciation and amortization expense 8
14,239
15,163
10,251
39,653
-
39,653
Adjusted EBITDA 7
$
81,677
$
74,020
$
15,933
$
171,630
$
972
$
172,602
Adjusted net revenue
$
411,085
$
365,735
$
126,059
$
902,879
-
902,879
Adjusted EBITDA margin 7
19.9
%
20.2
%
12.6
%
19.0
%
NMP
19.1
%
Year Ended
Hygiene, Health and Consumable
Engineering
Construction
Corporate
H.B. Fuller
December 2, 2023
Adhesives
Adhesives
Adhesives
Total
Unallocated
Consolidated
Net income attributable to H.B. Fuller
$
222,404
$
192,635
$
13,602
$
428,641
$
(283,735
)
$
144,906
Adjustments:
Acquisition project costs 1
-
-
-
-
16,874
16,874
Organizational realignment 2
-
-
-
-
29,900
29,900
Royal restructuring and integration 3
-
-
-
-
-
-
Project One
-
-
-
-
9,815
9,815
Other 4
-
-
-
-
(611)
(611)
Discrete tax items 5
-
-
-
-
26,085
26,085
Income tax effect on adjustments 6
-
-
-
-
(10,604
)
(10,604
)
Adjusted net income attributable to H.B. Fuller 7
222,404
192,635
13,602
428,641
(212,276
)
216,365
Add:
Interest expense
-
-
-
-
131,913
131,913
Interest income
-
-
-
-
(3,943
)
(3,943
)
Income taxes
-
-
-
-
78,047
78,047
Depreciation and amortization expense 8
53,398
63,143
41,915
158,456
-
158,456
Adjusted EBITDA 7
$
275,802
$
255,778
$
55,517
$
587,097
$
(6,259
)
$
580,838
Adjusted net revenue
1,601,487
1,428,744
480,703
$
3,510,934
-
3,510,934
Adjusted EBITDA margin 7
17.2
%
17.9
%
11.5
%
16.7
%
NMP
16.5
%
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)
Three Months Ended:
Hygiene, Health and Consumable
Engineering
Construction
Corporate
H.B. Fuller
December 3, 2022
Adhesives
Adhesives
Adhesives
Total
Unallocated
Consolidated
Net income attributable to H.B. Fuller
$
45,913
$
55,900
$
3,460
$
105,273
$
(56,968
)
$
48,305
Adjustments:
Acquisition project costs 1
-
-
-
-
1,822
1,822
Organizational realignment 2
-
-
-
-
1,471
1,471
Royal restructuring and integration 3
-
-
-
-
1,467
1,467
Project One
-
-
-
-
2,326
2,326
Other 4
-
-
-
-
4,524
4,524
Discrete tax items 5
-
-
-
-
1,610
1,610
Income tax effect on adjustments 6
-
-
-
-
(3,911
)
(3,911
)
Adjusted net income attributable to H.B. Fuller 7
45,913
55,900
3,460
105,273
(47,659
)
57,614
Add:
Interest expense
-
-
-
-
30,046
30,046
Interest income
-
-
-
-
(1,609
)
(1,609
)
Income taxes
-
-
-
-
17,464
17,464
Depreciation and amortization expense 8
11,771
14,587
11,111
37,469
-
37,469
Adjusted EBITDA 7
$
57,684
$
70,487
$
14,571
$
142,742
$
(1,758
)
$
140,984
Adjusted net revenue
$
443,528
$
395,053
$
119,632
$
958,213
-
$
958,213
Adjusted EBITDA margin 7
13.0
%
17.8
%
12.2
%
14.9
%
NMP
14.7
%
Year Ended
Hygiene, Health and Consumable
Engineering
Construction
Corporate
H.B. Fuller
December 3, 2022
Adhesives
Adhesives
Adhesives
Total
Unallocated
Consolidated
Net income attributable to H.B. Fuller
$
177,614
$
177,641
$
32,474
$
387,729
$
(207,416
)
$
180,313
Adjustments:
Acquisition project costs 1
-
-
-
-
10,830
10,830
Organizational realignment 2
-
-
-
-
6,386
6,386
Royal restructuring and integration 3
-
-
-
-
2,474
2,474
Project One
-
-
-
-
9,885
9,885
Other 4
-
-
-
-
12,791
12,791
Discrete tax items 5
-
-
-
-
9,308
9,308
Income tax effect on adjustments 6
-
-
-
-
(10,699
)
(10,699
)
Adjusted net income attributable to H.B. Fuller 7
177,614
177,641
32,474
387,729
(166,441
)
221,288
Add:
Interest expense
-
-
-
-
91,547
91,547
Interest income
-
-
-
-
(7,790
)
(7,790
)
Income taxes
-
-
-
-
78,576
78,576
Depreciation and amortization expense 8
46,374
58,307
41,713
146,394
-
146,394
Adjusted EBITDA 7
$
223,988
$
235,948
$
74,187
$
534,123
$
(4,108
)
$
530,015
Adjusted net revenue
$
1,695,934
$
1,532,639
$
520,610
$
3,749,183
-
$
3,749,183
Adjusted EBITDA margin 7
13.2
%
15.4
%
14.3
%
14.2
%
NMP
14.1
%
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)
Net revenue growth versus 2022
Three Months Ended
Year Ended
December 2, 2023
December 2, 2023
Price
(3.4
)%
2.9
%
Volume
(0.1
)%
(8.4
)%
Organic Growth 13
(3.5
)%
(5.5
)%
Extra Week in 2022 (53-week year)
(7.0
)%
(1.8
)%
M&A
4.4
%
3.3
%
Constant Currency
(6.1
)%
(4.0
)%
F/X
0.3
%
(2.4
)%
Total H.B. Fuller Net Revenue Growth
(5.8
)%
(6.4
)%
Net revenue growth versus 2022
Three Months Ended
December 2, 2023
Extra Week
in 2022
Net Revenue
F/X
Constant Currency
M&A
(53-week year)
Organic Growth 13
Hygiene, Health and Consumable Adhesives
(7.3
)%
(0.2
)%
(7.1
)%
7.4
%
(7.0
)%
(7.5
)%
Engineering Adhesives
(7.4
)%
0.7
%
(8.1
)%
0.4
%
(7.1
)%
(1.4
)%
Construction Adhesives
5.4
%
0.8
%
4.6
%
6.4
%
(6.8
)%
5.0
%
Total H.B. Fuller
(5.8
)%
0.3
%
(6.1
)%
4.4
%
(7.0
)%
(3.5
)%
Net revenue growth versus 2022
Year Ended
December 2, 2023
Extra Week
in 2022
Net Revenue
F/X
Constant Currency
M&A
(53-week year)
Organic Growth 13
Hygiene, Health and Consumable Adhesives
(5.6
)%
(3.3
)%
(2.3
)%
4.6
%
(1.8
)%
(5.1
)%
Engineering Adhesives
(6.8
)%
(2.0
)%
(4.8
)%
1.2
%
(1.8
)%
(4.2
)%
Construction Adhesives
(7.7
)%
(0.5
)%
(7.2
)%
5.4
%
(1.6
)%
(11.0
)%
Total H.B. Fuller
(6.4
)%
(2.4
)%
(4.0
)%
3.3
%
(1.8
)%
(5.5
)%
13 We use the term “organic revenue” to refer to net revenue, excluding the effect of foreign currency changes and acquisitions and divestitures. Organic growth reflects adjustments for the impact of period-over-period changes in foreign currency exchange rates on revenues and the revenues associated with acquisitions and divestitures.
CONSOLIDATED BALANCE SHEETS
H.B. Fuller Company and Subsidiaries
(In thousands, except share and per share amounts)
December 2,
December 3,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
179,453
$
79,910
Trade receivables, net
577,932
607,365
Inventories
442,040
491,781
Other current assets
112,678
120,319
Total current assets
1,312,103
1,299,375
Property, plant and equipment, net
824,655
733,667
Goodwill
1,486,512
1,392,627
Other intangibles, net
729,140
702,092
Other assets
371,165
335,868
Total assets
$
4,723,575
$
4,463,629
Liabilities, non-controlling interest and total equity
Current liabilities:
Notes payable
$
1,841
$
28,860
Current maturities of long-term debt
-
-
Trade payables
439,700
460,669
Accrued compensation
95,680
108,328
Income taxes payable
47,688
18,530
Other accrued expenses
107,902
89,345
Total current liabilities
692,811
705,732
Long-term debt, net of current maturities
1,836,590
1,736,256
Accrued pension liabilities
50,189
52,561
Other liabilities
388,072
358,286
Total liabilities
2,967,662
2,852,835
Commitments and contingencies (Note 14)
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 – 54,092,987 and 53,676,576 for 2023 and 2022, respectively
54,093
53,677
Additional paid-in capital
301,485
266,491
Retained earnings
1,842,507
1,741,359
Accumulated other comprehensive loss
(442,880
)
(451,357
)
Total H.B. Fuller stockholders' equity
1,755,205
1,610,170
Non-controlling interest
708
624
Total equity
1,755,913
1,610,794
Total liabilities, non-controlling interest and total equity
$
4,723,575
$
4,463,629
CONSOLIDATED STATEMENTS of CASH FLOWS
H.B. Fuller Company and Subsidiaries
(In thousands)
Fiscal Years
December 2,
December 3,
November 27,
2023
2022
2021
Cash flows from operating activities:
Net income including non-controlling interest
$
144,988
$
180,407
$
161,475
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:
Depreciation
80,327
72,593
72,106
Amortization
79,514
74,383
71,068
Deferred income taxes
(25,114
)
(15,230
)
16,192
Income from equity method investments, net of dividends received
1,259
(9
)
2,776
Loss (gain) on sale of assets
59
(1,195
)
648
Share-based compensation
19,911
24,368
22,366
Pension and other postretirement benefit plan contributions
(4,346
)
(3,009
)
(3,840
)
Pension and other postretirement benefit plan income
(18,591
)
(24,021
)
(28,662
)
Debt issuance cost write-off
2,689
-
-
Mark to market adjustment related to contingent consideration liabilities
2,893
-
2,300
Change in assets and liabilities, net of effects of acquisitions:
Trade receivables, net
68,721
(24,753
)
(124,849
)
Inventories
72,576
(55,772
)
(135,351
)
Other assets
(7,927
)
46,499
(79,097
)
Trade payables
(57,752
)
(22,629
)
176,337
Accrued compensation
(13,836
)
1,135
27,741
Other accrued expenses
(3,070
)
6,303
1,186
Income taxes payable
41,190
(12,873
)
(4,137
)
Other liabilities
22,918
4,104
(73,508
)
Other
(28,011
)
6,213
108,566
Net cash provided by operating activities
378,398
256,514
213,317
Cash flows from investing activities:
Purchased property, plant and equipment
(119,137
)
(129,964
)
(96,089
)
Purchased businesses, net of cash acquired
(205,093
)
(250,807
)
(5,445
)
Proceeds from sale of property, plant and equipment
5,029
1,556
2,896
Cash received from government grant
-
3,928
5,800
Cash outflow related to government grant
-
-
(1,822
)
Net cash used in investing activities
(319,201
)
(375,287
)
(94,660
)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
2,233,300
335,000
-
Repayment of long-term debt
(2,126,450
)
(159,500
)
(156,500
)
Payment of debt issue costs
(10,214
)
(600
)
-
Net (payment on) proceeds from notes payable
(28,674
)
3,455
9,346
Dividends paid
(43,395
)
(39,207
)
(34,859
)
Contingent consideration payment
(1,477
)
(5,000
)
(1,700
)
Proceeds from stock options exercised
14,619
30,122
32,325
Repurchases of common stock
(2,567
)
(3,950
)
(2,682
)
Net cash provided by (used in) financing activities
35,142
160,320
(154,070
)
Effect of exchange rate changes on cash and cash equivalents
5,204
(23,423
)
(3,335
)
Net change in cash and cash equivalents
99,543
18,124
(38,748
)
Cash and cash equivalents at beginning of year
79,910
61,786
100,534
Cash and cash equivalents at end of year
$
179,453
$
79,910
$
61,786
View source version on businesswire.com: https://www.businesswire.com/news/home/20240117554213/en/
Steven Brazones Investor Relations Contact 651-236-5060
1 Year H B Fuller Chart |
1 Month H B Fuller 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