Fortune Brands Home & Security, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended Dec. 31, 2013; Provides Earnings Guidance for Fiscal 2014
January 29, 2014 at 04:01 pm
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Fortune Brands Home & Security, Inc. reported unaudited consolidated financial results for the fourth quarter and full year ended Dec. 31, 2013. For the fourth quarter of 2013, net sales were $1.10 billion, an increase of 16% over $947.9 million for the fourth quarter of 2012. Diluted earnings per share were $0.37, compared to $0.11 in the prior-year quarter. Diluted EPS before charges/gains were $0.38, compared to $0.23 the same quarter last year. Operating income was $95.4 million, compared to $7.5 million in the prior-year quarter. Operating income before charges/gains was $97.3 million, compared to $61.2 million the same quarter last year. Income before income taxes was $94.1 million against $5.8 million for the same quarter of last year. Net income attributable to the company was $64.2 million against $18.4 million for the same quarter of last year. Net income per diluted share was $0.37 against $0.11 for the same quarter of last year. Net debt was $356 million. EBITDA before charges/gains was $121.9 million against $84.9 million a year ago.
For the year, net sales were $4,157.4 million against $3,591.1 million the same period of last year. Operating income was $357.1 million against $161.7 million the same period of last year. Income before income taxes was $344.9 million against $154.0 million the same period of last year. Net income attributable to the company was $229.7 million against $118.7 million the same period of last year. Net cash provided by operating activities was $297.8 million against $282.8 million the same period of last year. Capital expenditures, net of proceeds from asset sales was $94.5 million against $61.5 million the same period of last year. Diluted earnings per share were $1.34 compared to $0.71 in the prior year, and diluted EPS before charges/gains were $1.50 versus $0.89 last year, an increase of 69%. EBITDA before charges/gains was $480.3 million against $321.3 million a year ago.
The company's 2014 annual outlook is based on a home products market growth assumption of 10% to 11%. Based on the company's strong performance, its confidence in the housing market recovery and expectation to continue outperforming the market, the company expects full-year 2014 net sales to increase 11% to 13%. The company expects diluted EPS before charges/gains to be in the range of $1.91 to $2.01. This targeted range compares to 2013 diluted EPS before charges/gains of $1.50. The company expects to generate $250+ million in free cash flow in 2014, net of capital expenditures of $130 to $140 million, as it begins to invest in incremental capacity and infrastructure to support multi-year growth.
Fortune Brands Innovations, Inc. is a home, security and commercial building products company. Its Water Innovations segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposal, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Aqualisa and Shaws brands. Outdoors segment manufactures and sells fiberglass and steel entry door systems, storm, screen and security doors, composite decking, railing and cladding under the Fiberon brand, urethane millwork under the Fypon brand, and wide-opening exterior door systems and outdoor enclosures under the Solar Innovations brand. Security segment includes locks, safety and security devices, and electronic security products under the Master Lock and Yale brands, and fire-resistant safes, security containers under the SentrySafe brand. The Company, through SpringWell Water Filtration Systems, provides residential whole-home water filtration and water softening solutions via direct-to-consumer channels.
Fortune Brands Home & Security, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended Dec. 31, 2013; Provides Earnings Guidance for Fiscal 2014