OAKLAND, Calif., Aug. 3, 2017 /PRNewswire/ -- The Clorox
Company (NYSE:CLX) reported sales growth of 3 percent and a 21
percent increase in diluted net earnings per share from continuing
operations (diluted EPS) for its fourth quarter, which ended
June 30, 2017. For fiscal year 2017,
the company reported sales growth of 4 percent and diluted EPS
growth of 9 percent.
"I'm very pleased with the strong results our team delivered in
the fourth quarter and fiscal year," said Clorox Chairman and CEO
Benno Dorer. "Our strategy drove
fourth-quarter sales growth in each of our segments, and resulted
in total company sales growth in every quarter for the fiscal year.
I'm also pleased with the continued progress we're making in
International, as the team has now delivered several consecutive
quarters of sales and profit growth in the fiscal year."
Commenting on fiscal year 2018, Dorer said, "We feel good about
our ability to deliver another year of solid sales and earnings
growth, even as we anticipate a more competitive retail
environment. We remain confident in our 2020 strategy and are
staying the course. We'll continue to focus on delivering
profitable growth, with a priority to reinforce superior consumer
value behind strong investments in our differentiated products and
brands."
All results in this press release are reported on a continuing
operations basis, unless otherwise stated. Some information in this
release is reported on a non-GAAP basis. See "Non-GAAP Financial
Information" below and the tables toward the end of this press
release for more information and reconciliations of key non-GAAP
results in fiscal years 2017 and 2016 to the most directly
comparable financial measures calculated in accordance with
generally accepted accounting principles in the U.S. (GAAP).
Fiscal Fourth-Quarter Results
Following is a summary of key fourth-quarter results. All
comparisons are with the fourth quarter of fiscal year 2016, unless
otherwise stated.
- 3% volume growth
- 3% sales growth
- $1.53 diluted EPS (21%
growth)
In the fourth quarter, volume and sales each grew 3 percent,
both reflecting 1 point of growth from the RenewLife digestive
health business, which was acquired in May
2016. Fourth-quarter sales results also included the benefit
of price increases in the company's International business,
partially offset by unfavorable mix.
The company's fourth-quarter gross margin increased 30 basis
points to 45.7 percent from 45.4 percent in the year-ago quarter.
Gross margin expansion reflected the benefits of cost savings,
price increases and lapping the year-ago one-time integration costs
related to the RenewLife acquisition, partially offset by higher
manufacturing and logistics costs and unfavorable commodity
costs.
Clorox delivered earnings from continuing operations of
$202 million in the fourth quarter,
compared to $165 million in the
year-ago quarter. Fourth-quarter diluted EPS was $1.53, versus $1.26
in the year-ago quarter, an increase of 21 percent. Fourth-quarter
diluted EPS results were driven primarily by the benefit of cost
savings and higher sales, partially offset by higher manufacturing
and logistics costs.
Key Segment Results
Following is a summary of key fourth-quarter results from
continuing operations by reportable segment. All comparisons are
with the fourth quarter of fiscal year 2016, unless otherwise
stated.
Cleaning
(Laundry, Home Care, Professional
Products)
- 4% volume growth
- 2% sales growth
- 5% pretax earnings increase
Segment volume growth was driven largely by gains in Home Care,
with another quarter of record shipments of Clorox®
disinfecting wipes behind strength across a number of customers and
the launch of new Scentiva™ wipes and sprays. Professional Products
also contributed to segment volume growth, with gains mainly across
cleaning products. These factors were partially offset by volume
decreases in Laundry, primarily driven by category softness. Volume
outpaced sales due to unfavorable mix and higher trade promotion
spending to drive awareness and trial of new products. Pretax
earnings growth was driven mainly by the benefit of cost savings
and higher sales, partially offset by unfavorable commodity costs.
Pretax earnings growth also reflected the combined impact from
one-time events in the year-ago quarter, including the gain on the
sale of the company's Los Angeles
manufacturing facility as well as costs related to the voluntary
recall of certain Liquid-Plumr® products.
Household
(Bags and Wraps, Charcoal, Cat Litter, Digestive Health)
- 5% volume growth
- 4% sales growth
- 4% pretax earnings increase
Segment volume growth was driven primarily by the benefit of the
RenewLife acquisition, gains in Cat Litter behind increased
merchandising activity, and higher shipments of Glad®
premium trash bags. Volume outpaced sales primarily due to
unfavorable mix. Pretax earnings grew, reflecting lower advertising
and sales promotion investments compared to significant spending
levels in the year-ago quarter, the benefit of cost savings and
higher sales, partially offset by higher manufacturing and
logistics costs and unfavorable commodity costs.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal
Care)
- 1% volume decrease
- 2% sales increase
- 8% pretax earnings increase
Segment volume results were driven primarily by lower shipments
of KC Masterpiece® barbecue sauces, partially offset by
gains in the Burt's Bees Natural Personal Care business, which grew
double-digits in the year-ago quarter. Sales outpaced volume,
largely due to favorable mix and lower trade promotion spending.
Pretax earnings grew, reflecting lower advertising and sales
promotion spending compared to significant spending levels in the
year-ago quarter as well as higher sales, partially offset by
higher manufacturing and logistics costs.
International
(Sales outside of the U.S.)
- 1% volume increase
- 5% sales growth
- 500% pretax earnings growth ($5
million increase)
Segment volume growth reflected gains in Asia and Europe, partially offset by decreased
shipments in certain Latin American countries, mainly Argentina, due to slower category growth.
Sales outpaced volume largely due to the benefit of price
increases, partially offset by unfavorable foreign currency
exchange rates. Pretax earnings grew from $1 million to $6
million, reflecting higher sales and gross margin
improvement.
Fiscal Year 2017 Results
Following is a summary of key fiscal year 2017 results:
- 6% volume growth
- 4% sales growth
- $5.35 diluted EPS (9%
increase)
In fiscal year 2017, Clorox delivered volume growth of 6 percent
and sales growth of 4 percent, each reflecting increases in all
four of the company's reportable segments. Fiscal year sales
results were driven by strong volume growth, 2 points of sales
growth from the RenewLife acquisition and price increases in the
company's International business, partially offset by unfavorable
mix and 1 point of unfavorable foreign currency exchange rates.
Fiscal year gross margin decreased 40 basis points to 44.7
percent from 45.1 percent in the year-ago period, when gross margin
increased 150 basis points. The decrease in fiscal year gross
margin was driven primarily by higher manufacturing and logistics
costs, partially offset by the benefits of cost savings and price
increases.
Clorox delivered earnings from continuing operations of
$703 million, versus $648 million in fiscal year 2016. Fiscal year
2017 diluted EPS was $5.35, versus
$4.92 in fiscal year 2016, an
increase of 9 percent. Fiscal year diluted EPS results reflect the
benefits of higher sales and a lower effective tax rate, partially
offset by lower gross margin and the previously communicated
noncash impairment charge related to the Aplicare business.
Fiscal year 2017 net cash from continuing operations was
$871 million, compared to
$768 million in fiscal year 2016,
primarily driven by higher earnings, excluding noncash items.
"We're very proud of our team's execution of our 2020 Strategy,"
said Chief Financial Officer Steve
Robb. "We delivered strong sales and earnings growth behind
our focus on operational efficiencies, including lowering our
selling and administrative expenses below 14 percent of sales and
reaching our 10th consecutive year of delivering more than
$100 million in cost savings, while
generating healthy cash flows."
Clorox Provides Fiscal Year 2018 Outlook
- 2% to 4% sales growth
- $5.52 to $5.72 diluted EPS range
Clorox anticipates sales growth in the range of 2 percent to 4
percent, driven by continued strong innovation, which is expected
to deliver about 3 points of incremental sales, and about 1 point
of price increases, partially offset by about 1 point of
unfavorable foreign currency exchange rates.
Gross margin is expected to be up slightly, reflecting the
anticipated benefits of cost savings and price increases, partially
offset by higher manufacturing and logistics costs and unfavorable
commodity costs.
The company anticipates selling and administrative expenses to
be less than 14 percent of sales, consistent with its long-term
target.
The company's effective tax rate is expected to be in the range
of 32 to 33 percent.
Net of all these factors, Clorox anticipates fiscal year 2018
diluted EPS from continuing operations in the range of $5.52 to $5.72, an increase of 3 percent to 7
percent.
For More Detailed Financial Information
Visit the company's Financial Information: Quarterly Results
section of the company's website at TheCloroxCompany.com for the
following:
- Supplemental unaudited volume and sales growth information
- Supplemental unaudited gross margin driver information
- Supplemental unaudited reconciliation of certain non-GAAP
financial information, including earnings from continuing
operations before interest and taxes (EBIT) and earnings from
continuing operations before interest, taxes, depreciation and
amortization (EBITDA)
- Supplemental unaudited balance sheet and cash flow information
and free cash flow reconciliation
- Supplemental price-change information
Note: Percentage and basis-point changes noted in this press
release are calculated based on rounded numbers. Supplemental
materials are available in the Financial Information: Quarterly
Results section of the company's website at
TheCloroxCompany.com.
The Clorox Company
The Clorox Company (NYSE: CLX) is a leading
multinational manufacturer and marketer of consumer and
professional products with more than 8,000 employees worldwide and
fiscal year 2017 sales of $6 billion. Clorox markets some of
the most trusted and recognized consumer brand names, including its
namesake bleach and cleaning products; Pine-Sol®
cleaners; Liquid Plumr® clog removers; Poett®
home care products; Fresh Step® cat litter;
Glad® bags, wraps and containers; Kingsford®
charcoal; Hidden Valley® dressings and sauces;
Brita® water-filtration products; Burt's
Bees® natural personal care products; and
RenewLife® digestive health products. The company also
markets brands for professional services, including Clorox
Healthcare® and Clorox Commercial Solutions®. More than
80 percent of the company's sales are generated from brands that
hold the No. 1 or No. 2 market share positions in their
categories.
Clorox is a signatory of the United Nations Global Compact, a
community of global leaders committed to sustainability. The
company also has been broadly recognized for its corporate
responsibility efforts, most notably receiving a Safer Choice
Partner of the Year Award in 2016 and 2017 from the U.S.
Environmental Protection Agency as well as being named to CR
Magazine's 2017 Best Corporate Citizens list and included in
the 2016 Newsweek Green Rankings. The Clorox
Company and its foundations contributed
about $11 million in combined cash grants, product
donations and cause marketing in fiscal year 2017. For more
information, visit TheCloroxCompany.com, including
the Good Growth blog, and follow the company on Twitter
at @CloroxCo.
CLX-F
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and such forward-looking statements involve risks and
uncertainties. Except for historical information, statements about
future volumes, sales, foreign currencies, costs, cost savings,
margins, earnings, earnings per share, diluted earnings per share,
foreign currency exchange rates, cash flows, plans, objectives,
expectations, growth, or profitability are forward-looking
statements based on management's estimates, beliefs, assumptions
and projections. Words such as "could," "may," "expects,"
"anticipates," "targets," "goals," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "predicts" and variations on such
words, and similar expressions that reflect our current views with
respect to future events and operational, economic and financial
performance, are intended to identify such forward-looking
statements. These forward-looking statements are only predictions,
subject to risks and uncertainties, and actual results could differ
materially from those discussed. Important factors that could
affect performance and cause results to differ materially from
management's expectations are described in the sections entitled
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the company's
Annual Report on Form 10-K for the fiscal year ended June 30,
2016, as updated from time to time in the
company's SEC filings. These factors include, but are not
limited to: intense competition in the company's markets;
worldwide, regional and local economic conditions and financial
market volatility; the ability of the company to drive sales
growth, increase prices and market share, grow its product
categories and achieve favorable product and geographic mix;
volatility and increases in commodity costs such as resin, sodium
hypochlorite and agricultural commodities, and increases in energy,
transportation or other costs; dependence on key customers and
risks related to customer consolidation and ordering patterns;
risks related to reliance on information technology systems,
including potential security breaches, cyber-attacks, privacy
breaches or data breaches that result in the unauthorized
disclosure of consumer, customer, employee or company information,
or service interruptions; lower revenue or increased costs
resulting from government actions and regulations, including with
respect to the Aplicare business, despite the write down of
Aplicare assets in the second quarter ended December 31, 2016; the ability of the company to
successfully manage global, political, legal, tax and regulatory
risks, including changes in regulatory or administrative activity;
risks related to international operations, including political
instability; government-imposed price controls or other
regulations; foreign currency exchange rate controls, including
periodic changes in such controls, fluctuations and devaluations;
labor claims, labor unrest and inflationary pressures, particularly
in Argentina; potential harm and
liabilities from the use, storage and transportation of chlorine in
certain international markets where chlorine is used in the
production of bleach; and the possibility of nationalization,
expropriation of assets or other government action in foreign
jurisdictions; risks relating to acquisitions, new ventures and
divestitures, and associated costs, including the potential for
asset impairment charges related to, among others, intangible
assets and goodwill; the ability of the company to develop and
introduce commercially successful products; supply disruptions and
other risks inherent in reliance on a limited base of suppliers;
the impact of product liability claims, labor claims and other
legal proceedings, including in foreign jurisdictions; the success
of the company's business strategies; the ability of the company to
implement and generate anticipated cost savings and efficiencies;
the company's ability to attract and retain key personnel; the
company's ability to maintain its business reputation and the
reputation of its brands; environmental matters, including costs
associated with the remediation and monitoring of past
contamination, and possible increases in those costs resulting from
actions by relevant regulators, and the handling and/or
transportation of hazardous substances; the impact of natural
disasters, terrorism and other events beyond the company's control;
the company's ability to maximize, assert and defend its
intellectual property rights; any infringement or claimed
infringement by the company of third-party intellectual property
rights; risks related to the potential increase in the company's
purchase price for The Procter & Gamble Company's (P&G)
interest in the Glad® business and the impact from the
decision on whether or not to extend the term of the related
agreement with P&G; the effect of the company's indebtedness
and credit rating on its business operations and financial results;
risks related to the company's discontinuation of operations in
Venezuela; the company's ability
to pay and declare dividends or repurchase its stock in the future;
the company's ability to maintain an effective system of internal
controls, including after completing acquisitions; uncertainties
relating to tax positions, tax disputes and changes in the
company's tax rate; the accuracy of the company's estimates and
assumptions on which its financial projections are based; and the
impacts of potential stockholder activism.
The company's forward-looking statements in this press release
are based on management's current views, beliefs 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
related to EBIT and EBIT margin, EBITDA and debt to EBITDA ratio,
and free cash flow and free cash flow as a percentage of sales. The
company has included reconciliations of these non-GAAP financial
measures to the most directly comparable financial measure
calculated in accordance with GAAP. See the end of this press
release for these reconciliations.
The company discloses these non-GAAP financial measures to
supplement its consolidated financial statements presented in
accordance with GAAP. 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 financial 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 be read in connection with the company's
consolidated financial statements presented in accordance with
GAAP.
EBIT represents earnings from continuing operations before
income taxes, interest income and interest expense. EBIT margin is
the ratio of EBIT to net sales. EBITDA represents earnings from
continuing operations before income taxes, interest income, and
interest expense, depreciation and amortization. The company's
management believes these measures and debt to EBITDA ratio provide
useful additional information to investors about trends in the
company's operations and are useful for period-over-period
comparisons.
Free cash flow is calculated as net cash provided by continuing
operations less capital expenditures related to continuing
operations. The company's management uses this measure and free
cash flow as a percentage of net sales 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.
For recent presentations made by company management and other
investor materials, visit Investor Events on the company's
website.
Condensed
Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
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|
Dollars in millions,
except share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
6/30/2017
|
|
6/30/2016
|
|
6/30/2017
|
|
6/30/2016
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,647
|
|
$
|
1,600
|
|
$
|
5,973
|
|
|
5,761
|
Cost of products
sold
|
|
895
|
|
|
873
|
|
|
3,302
|
|
|
3,163
|
Gross
profit
|
|
752
|
|
|
727
|
|
|
2,671
|
|
|
2,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
212
|
|
|
225
|
|
|
810
|
|
|
806
|
Advertising
costs
|
|
182
|
|
|
192
|
|
|
599
|
|
|
587
|
Research and
development costs
|
|
37
|
|
|
42
|
|
|
135
|
|
|
141
|
Interest
expense
|
|
22
|
|
|
21
|
|
|
88
|
|
|
88
|
Other (income)
expense, net
|
|
4
|
|
|
(5)
|
|
|
6
|
|
|
(7)
|
Earnings from
continuing operations before income taxes
|
|
295
|
|
|
252
|
|
|
1,033
|
|
|
983
|
Income taxes on
continuing operations
|
|
93
|
|
|
87
|
|
|
330
|
|
|
335
|
Earnings from
continuing operations
|
|
202
|
|
|
165
|
|
|
703
|
|
|
648
|
Earnings (losses)
from discontinued operations, net of tax
|
|
(1)
|
|
|
-
|
|
|
(2)
|
|
|
-
|
Net
earnings
|
$
|
201
|
|
$
|
165
|
|
$
|
701
|
|
$
|
648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (losses)
per share
|
|
|
|
|
|
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|
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|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.56
|
|
$
|
1.28
|
|
$
|
5.45
|
|
|
5.01
|
|
|
Discontinued
operations
|
|
(0.01)
|
|
|
-
|
|
|
(0.02)
|
|
|
-
|
|
Basic net earnings
per share
|
$
|
1.55
|
|
$
|
1.28
|
|
$
|
5.43
|
|
$
|
5.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.53
|
|
$
|
1.26
|
|
$
|
5.35
|
|
|
4.92
|
|
|
Discontinued
operations
|
|
(0.01)
|
|
|
-
|
|
|
(0.02)
|
|
|
-
|
|
Diluted net earnings
per share
|
$
|
1.52
|
|
$
|
1.26
|
|
$
|
5.33
|
|
$
|
4.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
129,113
|
|
|
129,502
|
|
|
128,953
|
|
|
129,472
|
|
Diluted
|
|
131,914
|
|
|
131,511
|
|
|
131,566
|
|
|
131,717
|
Reportable Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
Earnings (losses)
from continuing operations
before income taxes
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
6/30/2017
|
|
6/30/2016
|
|
%
Change(1)
|
|
6/30/2017
|
|
6/30/2016
|
|
%
Change(1)
|
Cleaning
|
$
|
502
|
|
$
|
493
|
|
2%
|
|
$
|
123
|
|
$
|
117
|
|
5%
|
Household
|
|
632
|
|
|
609
|
|
4%
|
|
|
173
|
|
|
166
|
|
4%
|
Lifestyle
|
|
258
|
|
|
254
|
|
2%
|
|
|
54
|
|
|
50
|
|
8%
|
International
|
|
255
|
|
|
244
|
|
5%
|
|
|
6
|
|
|
1
|
|
500%
|
Corporate
|
|
-
|
|
|
-
|
|
0%
|
|
|
(61)
|
|
|
(82)
|
|
-26%
|
Total
|
$
|
1,647
|
|
$
|
1,600
|
|
3%
|
|
$
|
295
|
|
$
|
252
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
Earnings (losses)
from continuing operations
before income taxes
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
6/30/2017
|
|
6/30/2016
|
|
%
Change(1)
|
|
6/30/2017
|
|
6/30/2016
|
|
%
Change(1)
|
Cleaning
|
$
|
2,002
|
|
$
|
1,912
|
|
5%
|
|
$
|
523
|
|
$
|
511
|
|
2%
|
Household
|
|
1,961
|
|
|
1,862
|
|
5%
|
|
|
419
|
|
|
428
|
|
-2%
|
Lifestyle
|
|
1,000
|
|
|
990
|
|
1%
|
|
|
244
|
|
|
251
|
|
-3%
|
International
|
|
1,010
|
|
|
997
|
|
1%
|
|
|
81
|
|
|
66
|
|
23%
|
Corporate
|
|
-
|
|
|
-
|
|
0%
|
|
|
(234)
|
|
|
(273)
|
|
-14%
|
Total
|
$
|
5,973
|
|
$
|
5,761
|
|
4%
|
|
$
|
1,033
|
|
$
|
983
|
|
5%
|
|
(1)
Percentages based on rounded numbers.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2017
|
|
6/30/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
418
|
|
$
|
401
|
|
|
|
Receivables,
net
|
|
|
565
|
|
|
569
|
|
|
|
Inventories,
net
|
|
|
459
|
|
|
443
|
|
|
|
Other current
assets
|
|
|
72
|
|
|
72
|
|
|
|
|
Total current
assets
|
|
|
1,514
|
|
|
1,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
931
|
|
|
906
|
|
|
Goodwill
|
|
|
1,196
|
|
|
1,197
|
|
|
Trademarks,
net
|
|
|
654
|
|
|
657
|
|
|
Other intangible
assets, net
|
|
|
68
|
|
|
78
|
|
|
Other
assets*
|
|
|
210
|
|
|
187
|
|
|
Total
assets
|
|
$
|
4,573
|
|
$
|
4,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Notes and loans
payable
|
|
$
|
404
|
|
$
|
523
|
|
|
|
Current maturities of
long-term debt
|
|
|
400
|
|
|
-
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
1,005
|
|
|
1,035
|
|
|
|
Income taxes
payable
|
|
|
-
|
|
|
-
|
|
|
|
|
Total current
liabilities
|
|
|
1,809
|
|
|
1,558
|
|
|
Long-term
debt*
|
|
|
1,391
|
|
|
1,789
|
|
|
Other
liabilities
|
|
|
770
|
|
|
784
|
|
|
Deferred income
taxes
|
|
|
61
|
|
|
82
|
|
|
Total
liabilities
|
|
|
4,031
|
|
|
4,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
159
|
|
|
159
|
|
|
Additional paid-in
capital
|
|
|
928
|
|
|
868
|
|
|
Retained
earnings
|
|
|
2,440
|
|
|
2,163
|
|
|
Treasury
shares
|
|
|
(2,442)
|
|
|
(2,323)
|
|
|
Accumulated other
comprehensive net losses
|
|
|
(543)
|
|
|
(570)
|
|
|
Stockholders'
equity
|
|
|
542
|
|
|
297
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,573
|
|
$
|
4,510
|
|
|
|
*In April 2015, the
FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt
Issuance Cost," which requires that debt issuance costs related to
a recognized debt liability be presented in the balance sheet as a
direct deduction from the carrying amount of that debt liability,
consistent with debt discounts. The Company adopted this
standard in the first quarter of fiscal year 2017 and
retrospectively applied the standard to all periods
presented.
|
The tables below present the reconciliation of non-GAAP
financial measures to the most directly comparable financial
measures calculated in accordance with GAAP and other supplemental
information. See "Non-GAAP Financial Information" above for further
information regarding the company's use of non-GAAP financial
measures.
The reconciliations below are on a continuing operations
basis
Fiscal Year EBIT Margin(1)
Reconciliation
Dollars in Millions
|
FY
Fiscal
2017
|
|
FY
Fiscal
2016
|
|
|
|
|
Earnings from
continuing operations
|
$1,033
|
|
$983
|
before income
taxes – GAAP
|
|
|
|
|
|
|
|
Interest
Income
|
-4
|
|
-5
|
Interest
Expense
|
88
|
|
88
|
|
|
|
|
EBIT
(1) – non-GAAP
|
$1,177
|
|
$1,066
|
|
|
|
|
Net Sales
|
$5,973
|
|
$5,761
|
EBIT
margin(1) – non-GAAP
|
18.7%
|
|
18.5%
|
Fiscal Year Debt to EBITDA Ratio(4)
Reconciliation
Dollars in Millions
|
FY
Fiscal
2017
|
|
FY
Fiscal
2016
|
|
|
|
|
Earnings from
continuing operations
|
$1,033
|
|
$983
|
before income
taxes – GAAP
|
|
|
|
|
|
|
|
Interest
Income
|
-4
|
|
-5
|
Interest
Expense
|
88
|
|
88
|
Depreciation and
Amortization
|
163
|
|
165
|
|
|
|
|
EBITDA
(2) – non-GAAP
|
$1,280
|
|
$1,231
|
|
|
|
|
Total
Debt(3)
|
$2,195
|
|
$2,312
|
Debt to EBITDA
ratio(4) – non-GAAP
|
1.7
|
|
1.9
|
Fiscal Year Free Cash Flow Reconciliation
Dollars in Millions
|
FY
Fiscal
2017
|
|
FY
Fiscal
2016
|
|
|
|
|
Net cash provided
by continuing operations – GAAP
|
$
871
|
|
$768
|
|
|
|
|
Less: Capital
expenditures
|
231
|
|
172
|
|
|
|
|
Free cash
flow(5) – non-GAAP
|
$
640
|
|
$596
|
|
10.7%
|
|
10.3%
|
Free cash
flow as a percent of sales – non-GAAP
|
|
|
|
|
Net sales
|
$5,973
|
|
$5,761
|
(1)
|
EBIT represents
earnings from continuing operations before income taxes, excluding
interest income and interest expenses. EBIT margin is the ratio of
EBIT to net sales.
|
(2)
|
EBITDA represents
earnings from continuing operations before income taxes, excluding
interest income, interest expense, depreciation and
amortization.
|
(3)
|
Total debt represents
the sum of notes and loans payable, current maturities of long-term
debt, and long-term debt. In April 2015, the FASB issued ASU No.
2015-03, "Simplifying the Presentation of Debt Issuance Cost",
which requires that debt issuance costs related to a recognized
debt liability be presented in the balance sheet as a direct
deduction from the carrying amount of that debt liability,
consistent with debt discounts. The Company adopted this
standard in the first quarter of fiscal year 2017 and
retrospectively applied the standard to all periods
presented.
|
|
|
(4)
|
Debt to EBITDA ratio
represents total debt divided by EBITDA for the trailing four
quarters.
|
|
|
(5)
|
Free cash flow
represents net cash provided by continuing operations less capital
expenditures related to continuing operations.
|
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.
View original content with
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SOURCE The Clorox Company