HB Fuller Co. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 3, 2016; Provides Earnings Guidance for the Year 2017
January 18, 2017 at 07:08 pm
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HB Fuller Co. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 3, 2016. For the quarter, the company reported net revenue of $574,907,000 compared to $548,104,000 a year ago. Income from continuing operations before income taxes and income from equity method investments was $51,879,000 compared to $44,677,000 a year ago. Net income attributable to the company was $39,134,000 compared to $24,991,000 a year ago. Diluted net income per share attributable to the company was $0.76 compared to $0.49 per diluted share a year ago. Adjusted net income attributable to the company was $37,910,000 or $0.74 per diluted share compared to $35,170,000 or $0.69 per diluted share a year ago. Adjusted income before income taxes and income from equity method investments was $51,816,000 compared to $52,220,000 a year ago. EBITDA was $81,772,000 compared to $71,747,000 a year ago. Adjusted EBITDA was $79,754,000 compared to $79,151,000 a year ago. Cash flow from operating activities was $50 million in the fourth quarter, driven by solid net income; fiscal year 2016 cash flow from operations was $195 million. Capital expenditures were $14 million in the fourth quarter.
For the full year, the company reported net revenue of $2,094,605,000 compared to $2,083,660,000 a year ago. Income from continuing operations before income taxes and income from equity method investments was $167,425,000 compared to $138,345,000 a year ago. Income from continuing operations was $124,382,000 or $2.42 per diluted share compared to $88,397,000 or $1.71 per diluted share a year ago. Net income attributable to the company was $124,128,000 or $2.42 per diluted share compared to $86,680,000 or $1.69 per diluted share a year ago. Adjusted net income attributable to the company was $127,013,000 or $2.48 per diluted share compared to $111,411,000 or $2.17 per diluted share a year ago. Adjusted income before income taxes and income from equity method investments was $171,966,000 compared to $165,711,000 a year ago. Adjusted income from continuing operations was $127,267,000 compared to $11,828,000 a year ago. EBITDA was $279,850,000 compared to $245,375,000 a year ago. Adjusted EBITDA was $280,943,000 compared to $267,827,000 a year ago.
For the year 2017, the company is adjusted EPS guidance range of $2.57 to $2.77. The mid-point of the adjusted EPS range represents 10% earnings growth versus a comparable 52 week year in 2016 as communicated in December. Constant currency growth, on a comparable 52 week basis, is expected to be around 4% for 2017 versus the 2016 fiscal year, which will be offset by 3 percentage points of negative foreign currency translation. It expects to deliver adjusted EBITDA margin of approximately 14%, reflecting approximately $290 million of adjusted EBITDA in 2017. Core tax rate, excluding the impact of discrete items, is expected to be about 30%. The company expects to invest approximately $60 million in capital items in 2017. This guidance excludes approximately $18 million of previously announced pre-tax restructuring charges as well as other unusual items.
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. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 3, 2016; Provides Earnings Guidance for the Year 2017