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Fortune Brands Home & Security Releases 4th Quarter and 2013 Financial Results

February 3, 2014

Fortune Brands Home & Security, Inc. (FBHS), a home and security products company, announced fourth quarter and full-year 2013 results and issued its 2014 annual outlook for sales and earnings per share. "We delivered another strong quarter and full year as we leveraged our structural competitive advantages and the market recovery to deliver profitable growth," said Chris Klein , chief executive officer, Fortune Brands Home & Security . "Entering 2014, our annual outlook calls for continued growth based on our strong execution and the continuing market recovery for both new construction and, importantly, repair and remodel activity." In a release on Jan. 29 , the Company noted fourth quarter 2013 results: For the fourth quarter of 2013, net sales were $1.10 billion , an increase of 16 percent over 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. "Sales were up a combined 20 percent versus last year for our home segments in the fourth quarter as we benefitted from new construction and continued repair and remodel momentum. Importantly, total company operating income before charges/gains increased 59 percent," Klein said. Full Year 2013 For the full year 2013, net sales were $4.2 billion , an increase of 16 percent over 2012. 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 percent. "Our balance sheet strengthened during 2013, even as we completed the WoodCrafters acquisition, repurchased $52 million of our shares and initiated a quarterly dividend," said Lee Wyatt , chief financial officer. "As of December 31, 2013 , cash was $241 million and debt was $356 million , resulting in net debt to EBITDA of 0.2 times. We also announced a 20 percent increase in our quarterly dividend beginning in 2014." "We have built strong momentum over the past two years," said Klein. "We believe we are still in the early stages of a multi-year housing recovery and are well positioned to continue to leverage our structural competitive advantages and drive profitable growth well into the future." Annual Outlook for 2014 The Company's 2014 annual outlook is based on a home products market growth assumption of 10 to 11 percent. 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 percent. 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 Home & Security is headquartered in Deerfield, Ill. The Company's brands include Master Lock security products, MasterBrand cabinets, Moen faucets, Simonton windows, and Therma- Tru entry door systems. More information: www.FBHS.com ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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