The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to free cash flow, EBIT margin and sales growth. The company has included reconciliations of non-GAAP financial information related to sales growth and EBIT margin to the most directly comparable financial measure calculated in accordance with generally accepted accounting principles in the U.S. (GAAP). See the end of this press release for these reconciliations.
The company has disclosed information related to free cash flow, EBIT margin and sales growth on a non-GAAP basis to supplement its condensed consolidated statements of earnings presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company's results reported in accordance with GAAP, including interest income, interest expense, the impact of foreign currency exchange transactions, acquisitions and the impact of cold spring weather conditions on charcoal sales.
Management believes these non-GAAP financial measures provide useful additional information to investors about current trends in the company's operations and are useful for period-over-period comparisons. Management uses free cash flow to help assess the cash generation ability of the business and funds available for investing activities, such as acquisitions, investing in the business to drive growth, and financing activities, including debt payments, dividend payments and share repurchases. Free cash flow does not represent cash available only for discretionary expenditures, since the Company has mandatory debt service requirements and other contractual and non-discretionary expenditures. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should only be read in connection with the company's condensed consolidated financial statements presented in accordance with GAAP.
See Below for These Unaudited Third-Quarter Results:
•Condensed Consolidated Statements of Earnings, Reportable Segment Information and Condensed Consolidated Balance Sheets
•Reconciliation of Third-Quarter Fiscal 2013 Sales Growth and Fiscal 2012 EBIT margin
Condensed Consolidated Statements of Earnings (Unaudited)Dollars in millions, except share and per share amounts Three Months Ended Nine Months Ended ---------------------- ---------------------- 3/31/2013 3/31/2012 3/31/2013 3/31/2012 ---------- ---------- ---------- ----------Net sales $ 1,413 $ 1,401 $ 4,076 $ 3,927Cost of products sold 818 808 2,344 2,281 ---------- ---------- ---------- ----------Gross profit 595 593 1,732 1,646Selling and administrative expenses 196 211 595 585Advertising costs 132 126 370 359Research and development costs 34 30 95 87Interest expense 30 33 96 92Other expense (income), net 1 (5) (8) (17) ---------- ---------- ---------- ----------Earnings from continuing operations before income taxes 202 198 584 540Income taxes on continuing operations 68 64 194 171 ---------- ---------- ---------- ----------Earnings from continuing operations 134 134 390 369Losses from discontinued operations, net of tax (1) (2) (1) (2) ---------- ---------- ---------- ----------Net earnings $ 133 $ 132 $ 389 $ 367 ========== ========== ========== ==========Net earnings (losses) per share Basic Continuing operations $ 1.01 $ 1.03 $ 2.98 $ 2.81 Discontinued operations - (0.01) - (0.01) ---------- ---------- ---------- ---------- Basic net earnings per share $ 1.01 $ 1.02 $ 2.98 $ 2.80 ========== ========== ========== ========== Diluted Continuing operations $ 1.00 $ 1.02 $ 2.94 $ 2.78 Discontinued operations - (0.01) - (0.01) ---------- ---------- ---------- ---------- Diluted net earnings per share $ 1.00 $ 1.01 $ 2.94 $ 2.77 ========== ========== ========== ==========Weighted average shares outstanding (in thousands) Basic 131,619 130,266 130,960 131,116 Diluted 133,475 131,607 132,629 132,569Reportable Segment Information(Unaudited)Dollars in millions Earnings (Losses) from Continuing Operations BeforeThird Quarter Net Sales Income Taxes ---------------------------- ---------------------------- Three Months Ended Three Months Ended ------------------- ------------------- % Change % Change 3/31/13 3/31/12 (1) 3/31/13 3/31/12 (1) --------- --------- -------- --------- --------- --------Cleaning Segment $ 454 $ 447 2% $ 99 $ 101 -2%Household Segment 413 417 -1% 76 77 -1%Lifestyle Segment 245 241 2% 71 76 -7%International Segment 301 296 2% 20 21 -5%Corporate - - - (64) (77) -17% --------- --------- -------- --------- --------- --------Total Company $ 1,413 $ 1,401 1% $ 202 $ 198 2% ========= ========= ======== ========= ========= ======== Earnings (Losses) from Continuing Operations BeforeYear-to-Date Net Sales Income Taxes ---------------------------- ---------------------------- Nine Months Ended Nine Months Ended ------------------- ------------------- % Change % Change 3/31/13 3/31/12 (1) 3/31/13 3/31/12 (1) --------- --------- -------- --------- --------- --------Cleaning Segment $ 1,351 $ 1,256 8% $ 319 $ 287 11%Household Segment 1,125 1,117 1% 182 153 19%Lifestyle Segment 690 666 4% 197 200 -2%International Segment 910 888 2% 73 94 -22%Corporate - - - (187) (194) -4% --------- --------- -------- --------- --------- --------Total Company $ 4,076 $ 3,927 4% $ 584 $ 540 8% ========= ========= ======== ========= ========= ========(1) Percentages based on rounded numbers.Condensed Consolidated Balance SheetsDollars in millions 3/31/2013 6/30/2012 3/31/2012 ------------ ------------ ------------ (Unaudited) (Unaudited)ASSETSCurrent assets Cash and cash equivalents $ 423 $ 267 $ 303 Receivables, net 562 576 557 Inventories, net 454 384 454 Other current assets 149 149 128 ------------ ------------ ------------ Total current assets 1,588 1,376 1,442Property, plant and equipment, net 1,041 1,081 1,039Goodwill 1,118 1,112 1,120Trademarks, net 555 556 558Other intangible assets, net 78 86 90Other assets 143 144 137 ------------ ------------ ------------Total assets $ 4,523 $ 4,355 $ 4,386 ============ ============ ============LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)Current liabilities Notes and loans payable $ 392 $ 300 $ 430 Current maturities of long-term debt - 850 850 Accounts payable 390 412 364 Accrued liabilities 503 494 472 Income taxes payable 23 5 15 ------------ ------------ ------------ Total current liabilities 1,308 2,061 2,131Long-term debt 2,169 1,571 1,570Other liabilities 787 739 634Deferred income taxes 107 119 157 ------------ ------------ ------------ Total liabilities 4,371 4,490 4,492 ------------ ------------ ------------Stockholders' equity (deficit)Preferred stock - - -Common stock 159 159 159Additional paid-in capital 655 633 624Retained earnings 1,474 1,350 1,263Treasury shares (1,758) (1,881) (1,848)Accumulated other comprehensive net losses (378) (396) (304) ------------ ------------ ------------Stockholders' equity (deficit) 152 (135) (106) ------------ ------------ ------------Total liabilities and stockholders' equity (deficit) $ 4,523 $ 4,355 $ 4,386 ============ ============ ============
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures and other supplemental information. See "Non-GAAP Financial Information" above for further information regarding the company's use of non-GAAP financial measures.
Third-Quarter Sales Growth Reconciliation
Q3 Fiscal Q3 Fiscal 2013 2012 --------- ---------Base sales growth - non-GAAP 1.6% 6.0%Foreign exchange -0.7 -0.2Acquisitions -- 1.7 --------- ---------Total sales growth - GAAP 0.9% 7.5% ========= =========
Fiscal Year 2012 EBIT(1) Margin Reconciliation
Fiscal 2012 ---------Earnings from continuing operations before income taxes - GAAP $ 791Interest Income -3Interest Expense 125 ---------EBIT (1) - non-GAAP $ 913 =========EBIT margin(2) - non-GAAP 16.7%Net Sales $ 5,468
(1) EBIT represents Earnings from Continuing Operations Before Interest and Taxes.
(2) EBIT margin is a measure of EBIT as a percentage of net sales.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company's website TheCloroxCompany.com.
Add to Digg Bookmark with del.icio.us Add to Newsvine
