HB Fuller Co. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended November 30, 2013; Provides Earnings Guidance for the First Quarter and Full Year 2014 and 2015
January 15, 2014 at 05:44 pm
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HB Fuller Co. announced unaudited consolidated earnings results for the fourth quarter and full year ended November 30, 2013. For the quarter, the company announced net revenue of $533,531,000 compared to $513,255,000 a year ago. Income from continuing operations before income taxes and income from equity method investments was $31,318,000 compared to $33,552,000 a year ago. Income from continuing operations was $22,003,000 or $0.43 per diluted share compared to $25,012,000 or $0.49 per diluted share a year ago. Net income attributable to the company was $21,886,000 or $0.43 per basic and diluted share compared to $25,112,000 or $0.49 per diluted share a year ago. EBITDA was $68,280,000 compared to $63,878,000 a year ago. Adjusted income from continuing operations before income taxes and income from equity method investments was $47,454,000 against $42,756,000 a year ago. Adjusted income from continuing operations was $34,956,000 or $0.68 per diluted share against $32,515,000 or $0.64 per diluted share a year ago. Net income attributable to the company was $34,839,000 or $0.68 per diluted share against $32,615,000 or $0.64 per diluted share a year ago. Segment operating income was $53,053,000 compared to $48,319,000 a year ago. Sequentially, net debt was up by approximately $5 million. Capital expenditures were $42 million in the fourth quarter.
For the year, the company announced net revenue of $2,046,968,000 compared to $1,886,239,000 a year ago. Income from continuing operations before income taxes and income from equity method investments of $127,544,000 compared to $89,548,000 a year ago. Income from continuing operations was $95,975,000 or $1.87 per diluted share compared to $68,287,000 or $1.34 per diluted share a year ago. Net income attributable to the company was $96,761,000 or $1.89 per diluted share compared to $125,622,000 or $2.48 per diluted share a year ago. EBITDA was $254,297,000 compared to $217,031,000 a year ago. Adjusted income from continuing operations before income taxes and income from equity method investments was $173,729,000 against $145,329,000 a year ago. Adjusted income from continuing operations was $132,148,000 or $2.58 per diluted share against $111,534,000 or $2.20 per diluted share a year ago. Adjusted net income attributable to the company was $132,934,000 or $3.34 per diluted share against $168,869,000 or $1.90 per diluted share a year ago. Segment operating income was $195,502,000 against $162,541,000 a year ago. Capital expenditures were $124 million for the year.
The company expects financial performance to improve as the fiscal year progresses and anticipate that first quarter adjusted diluted EPS will be about $0.50 per share.
In 2014, the company expects revenue growth at the low end of long-term growth targets of 5% to 8%. Gross profit margin is expected to increase in 2014, primarily driven by the cost benefits that will be realized upon the completion of the business integration project in Europe. SG&A expenses should increase at a rate below the increase in net revenue. Overall, The company expects EBITDA margin to be about 14% for the full year, about 150 basis points higher than the level in the 2013 fiscal year. Core tax rate should remain steady at about 30%, excluding the impact of discrete items. Finally, adjusted diluted EPS for the year is expected to fall within a range of $3.00 and $3.15 per diluted share, representing an increase of between 16% and 22% over 2013. Capital expenditure plan, bringing the total 2014 capital spend to $105 million.
In 2015, capital expenditures should move toward normal levels, or about 2% of net revenue plus any residual capital requirements for Project ONE. The company's long-term financial objectives remain unchanged: achieve organic revenue growth of between 5% and 8% per annum, increase EBITDA margin to 15% by 2015, grow EPS by 15% per annum and increase Return on Invested Capital to 15% 2015.
H.B. Fuller Company is a pureplay adhesives company. It operates as a formulator, manufacturer and marketer of adhesives, sealants and other specialty chemical products. Its Hygiene, Health and Consumable Adhesives segment manufactures and supplies adhesive products in the assembly, packaging, converting, nonwoven and hygiene, health and beauty, graphic arts and envelope markets. Its Engineering Adhesives segment provides adhesives to the transportation, electronics, clean energy, aerospace and defense, performance wood, insulating glass, textile, appliance and heavy machinery markets. its Construction Adhesives segment manufactures and provides specialty adhesives, sealants, tapes, mortars, grouts, and application devices for commercial building roofing systems, heavy infrastructure projects, road/highway/airport transportation applications, building envelope applications, and others. The Company's product range consists of epoxy, cyanoacrylate, UV curable, anaerobic, and Vibra-Tite.
HB Fuller Co. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended November 30, 2013; Provides Earnings Guidance for the First Quarter and Full Year 2014 and 2015