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.