Reported net sales up 8.4%; Organic net
sales up 2.3%;
Diluted EPS of $2.29 including $0.16 legal
charge up 3.2%;
Excluding legal charge, adjusted diluted EPS
of $2.45 up 10.4%
Snap-on Incorporated (NYSE: SNA), a leading global innovator,
manufacturer and marketer of tools, equipment, diagnostics, repair
information and systems solutions for professional users performing
critical tasks, today announced operating results for the third
quarter of 2017.
- Net sales of $903.8 million increased
$69.7 million, or 8.4%, from 2016 levels, reflecting a $19.5
million, or 2.3%, organic sales gain, $44.3 million of
acquisition-related sales and $5.9 million of favorable foreign
currency translation.
- Operating earnings before financial
services of $153.1 million, or 16.9% of sales, included a pre-tax
charge of $15.0 million related to a judgment in an
employment-related litigation matter brought by an individual that
is being appealed (“legal charge”), and compared to $157.6 million,
or 18.9% of sales, last year. Excluding the legal charge, operating
earnings before financial services, as adjusted, in 2017 was $168.1
million, or 18.6% of sales.
- Financial services revenue of $79.0
million increased $7.4 million from 2016 levels; financial services
operating earnings of $56.0 million increased $5.4 million from
$50.6 million last year.
- Consolidated operating earnings of
$209.1 million, or 21.3% of revenues (net sales plus financial
services revenue), compared to $208.2 million, or 23.0% of
revenues, last year. Excluding the legal charge, consolidated
operating earnings, as adjusted, in 2017 was $224.1 million, or
22.8% of revenues.
- The third quarter effective income tax
rate of 30.1% in 2017 was reduced by 60 bps as a result of the
legal charge. The third quarter effective income tax rate was 31.2%
in 2016.
- Net earnings in the third quarter of
2017 were $133.4 million, or $2.29 per diluted share, compared to
net earnings of $131.7 million, or $2.22 per diluted share a year
ago. Excluding the legal charge, net earnings, as adjusted, of
$142.7 million, in 2017 was $2.45 per diluted share.
See “Non-GAAP Measures” below for a definition of, and further
explanation about, organic sales and measures excluding the legal
charge.
“We’re encouraged that in the third quarter we increased both
sales and net earnings through our steadfast commitment to our
runways for growth and improvement, despite challenges on a variety
of fronts, including the recent hurricanes,” said Nick Pinchuk,
Snap-on chairman and chief executive officer. “We believe Snap-on’s
value proposition of making work easier for serious professionals
remains strong in both automotive repair and the other end markets
we serve and that there remains significant opportunity along each
of our runways for growth: enhance the franchise network, expand
with repair shop owners and managers, extend in critical industries
and build in emerging markets. At the same time, the ongoing
potential of our Snap-on Value Creation Processes continues to
manifest itself in a variety of ways. For example, in the third
quarter, Snap-on again was honored to receive product awards
from both MOTOR Magazine and Professional Tool &
Equipment News. We believe this recognition reflects Snap-on’s
capabilities in translating our deep understanding of
professionals’ work into winning innovations. Finally, our results
are only possible with the significant effort and contributions
from our franchisees and associates worldwide; I thank them for
their ongoing dedication and commitment.”
Segment Results
Commercial & Industrial Group segment sales of $314.6
million in the quarter increased $25.3 million, or 8.7%, from 2016
levels, reflecting a $0.6 million, or 0.2%, organic sales gain,
$22.7 million of acquisition-related sales, and $2.0 million of
favorable foreign currency translation. The organic sales increase
primarily includes higher sales to customers in critical industries
and gains in the segment’s European-based hand tools business,
substantially offset by lower sales of power tools and in the
segment’s Asia/Pacific operations.
Operating earnings of $50.1 million in the period increased $6.4
million from 2016 levels, and the operating margin (operating
earnings as a percentage of segment sales) of 15.9% improved 80
basis points from 15.1% a year ago.
Snap-on Tools Group segment sales of $392.7 million in
the quarter decreased $4.5 million, or 1.1%, from 2016 levels,
reflecting a $6.5 million, or 1.6%, organic sales decline,
partially offset by $2.0 million of favorable foreign currency
translation. The organic sales decrease includes lower sales in the
company’s U.S. franchise operations, partially offset by gains in
the international franchise operations.
Operating earnings of $56.3 million in the period, including
$2.3 million of unfavorable foreign currency effects, decreased
$8.3 million from 2016 levels, and the operating margin of 14.3%
compared to 16.3% a year ago.
Repair Systems & Information Group segment sales of
$333.5 million in the quarter increased $47.4 million, or 16.6%,
from 2016 levels, reflecting a $23.7 million, or 8.2%, organic
sales gain, $21.6 million of acquisition-related sales, and $2.1
million of favorable foreign currency translation. The organic
sales gain includes higher sales of diagnostics and repair
information products to independent repair shop owners and
managers, increased sales to OEM dealerships, and higher sales of
undercar equipment.
Operating earnings of $83.4 million in the period, including
$0.3 million of favorable foreign currency effects, increased $11.6
million from 2016 levels, and the operating margin of 25.0%
compared to 25.1% a year ago.
Financial Services operating earnings of $56.0 million on
revenue of $79.0 million in the quarter compared to operating
earnings of $50.6 million on revenue of $71.6 million a year ago.
Originations of $271.8 million in the third quarter increased $2.0
million, or 0.7%, from 2016 levels.
Corporate expenses of $36.7 million in the quarter
compared to $22.5 million last year, primarily reflecting the
pre-tax legal charge of $15.0 million.
Outlook
Snap-on expects to make continued progress in 2017 along its
defined runways for coherent growth, leveraging capabilities
already demonstrated in the automotive repair arena and developing
and expanding its professional customer base, not only in
automotive repair, but in adjacent markets, additional geographies
and other areas, including extending in critical industries, where
the cost and penalties for failure can be high. In pursuit of these
initiatives, Snap-on expects that capital expenditures in 2017 will
be in a range of $80 million to $90 million, of which $57.3 million
was expended in the first nine months. Snap-on also anticipates
that its full year 2017 effective income tax rate will be
comparable to its 2016 full year rate.
Conference Call and Webcast on October
19, 2017, at 9:00 a.m. Central Time
A discussion of this release will be webcast on Thursday,
October 19, 2017, at 9:00 a.m. Central Time, and a replay will be
available for at least 10 days following the call. To access the
webcast, visit http://www.snapon.com/sna and click on the link to
the webcast. The slide presentation accompanying the call can be
accessed under the Downloads tab in the webcast viewer, as well as
on the Snap-on website under the tabs Investor Information /
Investor Events / Company Presentations.
Non-GAAP Measures
References in this document to “organic sales” refer to sales
from continuing operations calculated in accordance with generally
accepted accounting principles in the United States (“GAAP”),
adjusted to exclude acquisition-related sales and the impact of
foreign currency translation. Management evaluates the company’s
sales performance based on organic sales growth, which primarily
reflects growth from the company’s existing businesses as a result
of increased output, customer base and geographic expansion, new
product development and/or pricing, and excludes sales
contributions from acquired operations the company did not own as
of the comparable prior-year reporting period. The company’s
organic sales disclosures also exclude the effects of foreign
currency translation as foreign currency translation is subject to
volatility that can obscure underlying business trends. Management
believes that the non-GAAP financial measure of organic sales is
meaningful to investors as it provides them with useful information
to aid in identifying underlying growth trends in our businesses
and facilitating comparisons of our sales performance with prior
periods.
In addition, for the three and nine months ended September 30,
2017, the company is including operating earnings before financial
services, consolidated operating earnings, net earnings, and
diluted earnings per share, all as adjusted to exclude the impact
of a pre-tax $15.0 million charge ($9.3 million after tax) related
to a judgment in an employment-related litigation matter brought by
an individual that is being appealed. Management believes that the
litigation result is an unusual event, and subject to potential
change or reversal on appeal, and therefore the non-GAAP financial
measures adjusted to exclude the legal charge provide more
meaningful year-over-year comparisons of the company’s 2017
operating performance. For a reconciliation of the adjusted
metrics, see “Reconciliation of Non-GAAP Financial Measures”
below.
About Snap-on
Snap-on Incorporated is a leading global innovator, manufacturer
and marketer of tools, equipment, diagnostics, repair information
and systems solutions for professional users performing critical
tasks. Products and services include hand and power tools, tool
storage, diagnostics software, information and management systems,
shop equipment and other solutions for vehicle dealerships and
repair centers, as well as for customers in industries, including
aviation and aerospace, agriculture, construction, government and
military, mining, natural resources, power generation and technical
education. Snap-on also derives income from various financing
programs to facilitate the sales of its products and support its
franchise business. Products and services are sold through the
company’s franchisee, company-direct, distributor and internet
channels. Founded in 1920, Snap-on is a $3.4 billion, S&P 500
company headquartered in Kenosha, Wisconsin.
Forward-looking
Statements
Statements in this news release that are not historical facts,
including statements that (i) are in the future tense; (ii) include
the words “expects,” “anticipates,” “intends,” “approximates,” or
similar words that reference Snap-on or its management; (iii) are
specifically identified as forward-looking; or (iv) describe
Snap-on’s or management’s future outlook, plans, estimates,
objectives or goals, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Snap-on cautions the reader that this news release may contain
statements, including earnings projections, that are
forward-looking in nature and were developed by management in good
faith and, accordingly, are subject to risks and uncertainties
regarding Snap-on’s expected results that could cause (and in some
cases have caused) actual results to differ materially from those
described or contemplated in any forward-looking statement. Factors
that may cause the company’s actual results to differ materially
from those contained in the forward-looking statements include
those found in the company’s reports filed with the Securities and
Exchange Commission, including the information under the “Safe
Harbor” and “Risk Factors” headings in its Annual Report on Form
10-K for the fiscal year ended December 31, 2016, which are
incorporated herein by reference. In addition, Snap-on cannot
assure that its appeal of the legal matter discussed above will
result in diminished liability or a reversal of the legal charge.
Snap-on disclaims any responsibility to update any forward-looking
statement provided in this news release, except as required by
law.
For additional information, please visit www.snapon.com.
SNAP-ON INCORPORATED
Condensed Consolidated Statements of Earnings (Amounts in
millions, except per share data) (unaudited)
Three Months Ended Nine Months
Ended Sept. 30, Oct. 1, Sept. 30, Oct.
1, 2017 2016 2017 2016
Net sales $ 903.8 $ 834.1 $ 2,712.3 $ 2,540.6 Cost of goods
sold (455.2 ) (415.0 ) (1,352.7 )
(1,274.9 )
Gross profit 448.6 419.1 1,359.6 1,265.7
Operating expenses (295.5 ) (261.5 ) (853.3 )
(786.3 )
Operating earnings before financial services
153.1 157.6 506.3 479.4
Financial services revenue
79.0 71.6 233.5 207.2 Financial services expenses (23.0 )
(21.0 ) (70.4 ) (60.1 )
Operating earnings
from financial services 56.0 50.6
163.1 147.1
Operating
earnings 209.1 208.2 669.4 626.5 Interest expense (13.1 ) (13.1
) (38.8 ) (39.1 ) Other income (expense) – net (2.1 )
(0.8 ) (5.7 ) (0.3 )
Earnings before income taxes
and equity earnings 193.9 194.3 624.9 587.1 Income tax expense
(57.2 ) (59.6 ) (187.1 ) (179.4 )
Earnings before equity earnings 136.7 134.7 437.8 407.7
Equity earnings, net of tax 0.4 0.5
1.2 2.2
Net earnings 137.1 135.2
439.0 409.9 Net earnings attributable to noncontrolling interests
(3.7 ) (3.5 ) (10.8 ) (9.8 )
Net
earnings attributable to Snap-on Inc. $ 133.4 $ 131.7
$ 428.2 $ 400.1
Net earnings
per share attributable to Snap-on Inc.: Basic $ 2.33 $ 2.27 $
7.43 $ 6.89 Diluted 2.29 2.22 7.27 6.74
Weighted-average
shares outstanding: Basic 57.2 58.0 57.6 58.1 Effect of
dilutive securities 1.1 1.3 1.3
1.3 Diluted 58.3 59.3
58.9 59.4
SNAP-ON INCORPORATED Supplemental Segment
Information (Amounts in millions) (unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Oct. 1, Sept. 30, Oct. 1,
2017 2016 2017 2016 Net
sales: Commercial & Industrial Group $ 314.6 $ 289.3 $
923.3 $ 862.0 Snap-on Tools Group 392.7 397.2 1,215.9 1,216.4
Repair Systems & Information Group 333.5
286.1 990.4 860.1
Segment net
sales 1,040.8 972.6 3,129.6 2,938.5 Intersegment eliminations
(137.0 ) (138.5 ) (417.3 ) (397.9 )
Total net sales $ 903.8 $ 834.1 $ 2,712.3 $ 2,540.6
Financial Services revenue 79.0 71.6
233.5 207.2
Total revenues $
982.8 $ 905.7 $ 2,945.8 $ 2,747.8
Operating earnings: Commercial & Industrial Group
$ 50.1 $ 43.7 $ 134.4 $ 124.1 Snap-on Tools Group 56.3 64.6 207.2
207.6 Repair Systems & Information Group 83.4 71.8 244.0 215.3
Financial Services 56.0 50.6
163.1 147.1
Segment operating earnings
245.8 230.7 748.7 694.1 Corporate (36.7 ) (22.5 )
(79.3 ) (67.6 )
Operating earnings $ 209.1 $
208.2 $ 669.4 $ 626.5 Interest expense (13.1 ) (13.1 ) (38.8 )
(39.1 ) Other income (expense) – net (2.1 ) (0.8 )
(5.7 ) (0.3 )
Earnings before income taxes and equity
earnings
$ 193.9 $ 194.3 $ 624.9 $ 587.1
SNAP-ON INCORPORATED Condensed Consolidated
Balance Sheets (Amounts in millions) (unaudited)
Sept. 30, Dec. 31, 2017
2016 Assets Cash and cash equivalents $ 94.1 $
77.6 Trade and other accounts receivable – net 675.2 598.8 Finance
receivables – net 505.8 472.5 Contract receivables – net 99.8 88.1
Inventories – net 649.9 530.5 Prepaid expenses and other assets
121.1 116.5 Total current assets
2,145.9 1,884.0 Property and equipment – net 474.2 425.2
Deferred income tax assets 81.2 72.8 Long-term finance receivables
– net 1,018.6 934.5 Long-term contract receivables – net 310.4
286.7 Goodwill 924.0 895.5 Other intangibles – net 258.3 184.6
Other assets 43.6 39.9
Total
assets $ 5,256.2 $ 4,723.2
Liabilities
and Equity Notes payable and current maturities of long-term
debt $ 453.4 $ 301.4 Accounts payable 204.7 170.9 Accrued benefits
47.8 52.8 Accrued compensation 74.8 89.8 Franchisee deposits 76.1
66.7 Other accrued liabilities 366.0 307.9
Total current liabilities 1,222.8 989.5 Long-term
debt 755.0 708.8 Deferred income tax liabilities 28.5 13.1 Retiree
health care benefits 34.3 36.7 Pension liabilities 181.8 246.5
Other long-term liabilities 93.8 93.4
Total liabilities 2,316.2 2,088.0
Equity Shareholders' equity attributable to
Snap-on Inc. Common stock 67.4 67.4 Additional paid-in capital
344.4 317.3 Retained earnings 3,689.5 3,384.9 Accumulated other
comprehensive loss (341.8 ) (498.5 ) Treasury stock at cost
(837.7 ) (653.9 )
Total shareholders' equity attributable
to Snap-on Inc. 2,921.8 2,617.2 Noncontrolling interests
18.2 18.0
Total equity 2,940.0
2,635.2
Total liabilities and equity $
5,256.2 $ 4,723.2
SNAP-ON
INCORPORATED Condensed Consolidated Statements of Cash
Flows (Amounts in millions) (unaudited)
Three Months Ended Sept. 30, Oct. 1,
2017 2016 Operating activities: Net earnings $
137.1 $ 135.2 Adjustments to reconcile net earnings to net cash
provided (used) by
operating activities:
Depreciation 16.4 15.3 Amortization of other intangibles 7.1 5.9
Provision for losses on finance receivables 12.8 10.8 Provision for
losses on non-finance receivables 3.3 1.4 Stock-based compensation
expense 7.0 7.3 Deferred income tax provision (13.2 ) (6.8 ) Loss
(gain) on sales of assets 0.1 (0.1 ) Changes in operating assets
and liabilities, net of effects of acquisitions: Increase in trade
and other accounts receivable (24.0 ) (25.4 ) Increase in contract
receivables (26.2 ) (25.3 ) Increase in inventories (38.6 ) (17.9 )
(Increase) decrease in prepaid and other assets 0.2 (3.7 ) Increase
(decrease) in accounts payable (1.2 ) 3.6 Increase in accruals and
other liabilities 14.7 11.6
Net cash
provided by operating activities 95.5 111.9
Investing
activities: Additions to finance receivables (211.2 ) (216.3 )
Collections of finance receivables 176.0 160.3 Capital expenditures
(22.9 ) (16.5 ) Acquisitions of businesses, net of cash acquired
(2.7 ) - Disposals of property and equipment 0.5 0.5 Other
(1.8 ) 2.8
Net cash used by investing
activities (62.1 ) (69.2 )
Financing activities:
Proceeds from notes payable 16.8 4.5 Repayments of notes payable
(4.5 ) (4.5 ) Net increase in other short-term borrowings 91.4 8.2
Cash dividends paid (40.7 ) (35.4 ) Purchases of treasury stock
(90.1 ) (17.9 ) Proceeds from stock purchase and option plans 1.6
4.0 Other (4.0 ) (3.8 )
Net cash used by financing
activities (29.5 ) (44.9 )
Effect of exchange rate
changes on cash and cash equivalents 1.2
(0.2 )
Increase (decrease) in cash and cash equivalents 5.1
(2.4 ) Cash and cash equivalents at beginning of period
89.0 119.9
Cash and cash equivalents
at end of period $ 94.1 $ 117.5
Supplemental cash flow disclosures: Cash paid for interest $
(24.8 ) $ (23.7 ) Net cash paid for income taxes (68.5 ) (69.2 )
SNAP-ON INCORPORATED Condensed Consolidated
Statements of Cash Flows (Amounts in millions)
(unaudited) Nine Months Ended
Sept. 30, Oct. 1, 2017 2016
Operating activities: Net earnings $ 439.0 $ 409.9
Adjustments to reconcile net earnings to net cash provided (used)
by operating activities: Depreciation 48.7 45.7 Amortization of
other intangibles 20.7 18.2 Provision for losses on finance
receivables 38.6 30.4 Provision for losses on non-finance
receivables 7.9 6.1 Stock-based compensation expense 21.4 21.5
Deferred income tax benefit (10.1 ) (12.5 ) Gain on sales of assets
(0.1 ) (0.1 ) Settlement of treasury lock 14.9 - Changes in
operating assets and liabilities, net of effects of acquisitions:
Increase in trade and other accounts receivable (50.8 ) (31.2 )
Increase in contract receivables (31.8 ) (30.8 ) Increase in
inventories (86.9 ) (29.9 ) Increase in prepaid and other assets
(9.7 ) (28.5 ) Increase in accounts payable 26.5 27.7 Decrease in
accruals and other liabilities (13.3 ) (10.9 )
Net
cash provided by operating activities 415.0 415.6
Investing activities: Additions to finance receivables
(670.0 ) (691.4 ) Collections of finance receivables 528.9 501.7
Capital expenditures (57.3 ) (56.6 ) Acquisitions of businesses,
net of cash acquired (82.9 ) - Disposals of property and equipment
1.4 1.9 Other (2.5 ) 0.3
Net cash used by
investing activities (282.4 ) (244.1 )
Financing
activities: Proceeds from issuance of long-term debt 297.8 -
Repayment of long-term debt (150.0 ) - Proceeds from notes payable
16.8 4.5 Repayments of notes payable (4.5 ) (5.3 ) Net increase in
other short-term borrowings 38.7 15.6 Cash dividends paid (123.0 )
(106.3 ) Purchases of treasury stock (212.6 ) (76.4 ) Proceeds from
stock purchase and option plans 36.2 32.4 Other (18.9 )
(11.3 )
Net cash used by financing activities (119.5
) (146.8 )
Effect of exchange rate changes on cash and
cash equivalents 3.4 -
Increase
in cash and cash equivalents 16.5 24.7 Cash and cash
equivalents at beginning of year 77.6 92.8
Cash and cash equivalents at end of period $ 94.1
$ 117.5
Supplemental cash flow
disclosures: Cash paid for interest $ (49.7 ) $ (49.2 ) Net
cash paid for income taxes (168.3 ) (175.7 )
Non-GAAP
Supplemental Data
The following non-GAAP supplemental data is presented for
informational purposes to provide readers with insight into the
information used by management for assessing the operating
performance of Snap-on Incorporated's ("Snap-on") non-financial
services ("Operations") and "Financial Services" businesses. The
supplemental Operations data reflects the results of operations and
financial position of Snap-on's tools, diagnostic and equipment
products, software and other non-financial services operations with
Financial Services on the equity method. The supplemental Financial
Services data reflects the results of operations and financial
position of Snap-on's U.S. and international financial services
operations. The financing needs of Financial Services are met
through intersegment borrowings and cash generated from Operations;
Financial Services is charged interest expense on intersegment
borrowings at market rates. Income taxes are charged to Financial
Services on the basis of the specific tax attributes generated by
the U.S. and international financial services businesses.
Transactions between the Operations and Financial Services
businesses were eliminated to arrive at the Condensed Consolidated
Financial Statements.
SNAP-ON INCORPORATED
Non-GAAP Supplemental Consolidating Data - Condensed Statements
of Earnings (Amounts in millions) (unaudited)
Operations* Financial Services Three
Months Ended Three Months Ended Sept. 30,
Oct. 1, Sept. 30, Oct. 1, 2017
2016 2017 2016 Net sales $ 903.8
$ 834.1 $ - $ - Cost of goods sold (455.2 ) (415.0 )
- -
Gross profit 448.6 419.1 - -
Operating expenses (295.5 ) (261.5 ) -
-
Operating earnings before financial services
153.1 157.6 - -
Financial services revenue - - 79.0
71.6 Financial services expenses - -
(23.0 ) (21.0 )
Operating earnings from financial
services - - 56.0
50.6
Operating earnings 153.1 157.6
56.0 50.6 Interest expense (13.1 ) (13.0 ) - (0.1 ) Intersegment
interest income (expense) – net 17.7 18.3 (17.7 ) (18.3 ) Other
income (expense) – net (2.1 ) (0.9 ) -
0.1
Earnings before income taxes and equity
earnings 155.6 162.0 38.3 32.3 Income tax expense (43.2
) (47.7 ) (14.0 ) (11.9 )
Earnings before
equity earnings 112.4 114.3 24.3 20.4
Financial services –
net earnings attributable to Snap-on 24.3 20.4 - -
Equity earnings, net of tax 0.4 0.5
- -
Net earnings 137.1 135.2
24.3 20.4 Net earnings attributable to noncontrolling interests
(3.7 ) (3.5 ) - -
Net
earnings attributable to Snap-on $ 133.4 $ 131.7
$ 24.3 $ 20.4 * Snap-on with Financial
Services on the equity method.
SNAP-ON INCORPORATED Non-GAAP Supplemental Consolidating
Data - Condensed Statements of Earnings (Amounts in
millions) (unaudited) Operations*
Financial Services Nine Months Ended Nine Months
Ended Sept. 30, Oct. 1, Sept. 30, Oct.
1, 2017 2016 2017 2016
Net sales $ 2,712.3 $ 2,540.6 $ - $ - Cost of goods sold
(1,352.7 ) (1,274.9 ) - -
Gross profit 1,359.6 1,265.7 - - Operating expenses
(853.3 ) (786.3 ) - -
Operating earnings before financial services 506.3 479.4 - -
Financial services revenue - - 233.5 207.2 Financial
services expenses - - (70.4 )
(60.1 )
Operating earnings from financial services
- - 163.1 147.1
Operating earnings 506.3 479.4 163.1 147.1
Interest expense (38.6 ) (38.8 ) (0.2 ) (0.3 ) Intersegment
interest income (expense) – net 53.1 53.9 (53.1 ) (53.9 ) Other
income (expense) – net (5.7 ) (0.4 ) -
0.1
Earnings before income taxes and equity
earnings 515.1 494.1 109.8 93.0 Income tax expense
(146.6 ) (145.1 ) (40.5 ) (34.3 )
Earnings
before equity earnings 368.5 349.0 69.3 58.7
Financial
services – net earnings attributable to Snap-on 69.3
58.7 - - Equity earnings, net of tax 1.2 2.2
- -
Net earnings 439.0
409.9 69.3 58.7 Net earnings attributable to noncontrolling
interests (10.8 ) (9.8 ) - -
Net earnings attributable to Snap-on $ 428.2 $
400.1 $ 69.3 $ 58.7 * Snap-on with
Financial Services on the equity method.
SNAP-ON INCORPORATED Non-GAAP Supplemental
Consolidating Data - Condensed Balance Sheets (Amounts in
millions)
(unaudited)
Operations* Financial
Services Sept. 30, Dec. 31, Sept. 30,
Dec. 31, 2017 2016 2017 2016
Assets Cash and cash equivalents $ 93.9 $ 77.5 $ 0.2
$ 0.1 Intersegment receivables 21.0 15.0 - - Trade and other
accounts receivable – net 674.6 598.2 0.6 0.6 Finance receivables –
net - - 505.8 472.5 Contract receivables – net 8.3 7.9 91.5 80.2
Inventories – net 649.9 530.5 - - Prepaid expenses and other assets
127.6 122.4 0.8 1.1 Total current
assets 1,575.3 1,351.5 598.9 554.5 Property and equipment –
net 472.6 423.8 1.6 1.4 Investment in Financial Services 311.6
288.7 - - Deferred income tax assets 55.2 49.1 26.0 23.7
Intersegment long-term notes receivable 553.0 584.7 - - Long-term
finance receivables – net - - 1,018.6 934.5 Long-term contract
receivables – net 11.2 11.2 299.2 275.5 Goodwill 924.0 895.5 - -
Other intangibles – net 258.3 184.6 - - Other assets 52.6
47.9 - 0.1
Total assets $ 4,213.8 $
3,837.0 $ 1,944.3 $ 1,789.7
Liabilities and Equity
Notes payable and current maturities of long-term debt $ 203.4 $
151.4 $ 250.0 $ 150.0 Accounts payable 203.4 170.3 1.3 0.6
Intersegment payables - - 21.0 15.0 Accrued benefits 47.7 52.8 0.1
- Accrued compensation 72.2 85.7 2.6 4.1 Franchisee deposits 76.1
66.7 - - Other accrued liabilities 338.9 292.1
34.5 22.8 Total current liabilities 941.7 819.0 309.5 192.5
Long-term debt and intersegment long-term debt - - 1,308.0
1,293.5 Deferred income tax liabilities 28.5 13.1 - - Retiree
health care benefits 34.3 36.7 - - Pension liabilities 181.8 246.5
- - Other long-term liabilities 87.5 86.5 15.2
15.0
Total liabilities 1,273.8 1,201.8
1,632.7 1,501.0
Total shareholders' equity
attributable to Snap-on 2,921.8 2,617.2 311.6 288.7
Noncontrolling interests 18.2 18.0 - -
Total equity 2,940.0 2,635.2 311.6
288.7
Total liabilities and equity $ 4,213.8 $
3,837.0 $ 1,944.3 $ 1,789.7 * Snap-on with Financial
Services on the equity method.
SNAP-ON INCORPORATED Reconciliation of Non-GAAP Financial
Measures (Amounts in millions, except per share data)
(unaudited) Three Months
Ended Nine Months Ended Sept. 30, Oct. 1,
Sept. 30, Oct. 1, 2017 2016 2017
2016
AS
REPORTED
Charge related to a judgment in an
employment-related litigation matter that is being
appealed ("legal charge") Pre-tax legal charge $ 15.0 $ - $
15.0 $ - Income tax expense (5.7 ) -
(5.7 ) - Legal charge, net of tax $ 9.3 $ -
$ 9.3 $ -
Weighted-average shares
outstanding - diluted 58.3 59.3 58.9 59.4
Diluted EPS
- legal charge $ 0.16 $ - $ 0.16 $ -
ADJUSTED
INFORMATION - NON-GAAP
1 )
Operating earnings before financial services As
reported $ 153.1 $ 157.6 $ 506.3 $ 479.4 Legal charge 15.0
- 15.0 - As
adjusted to exclude legal charge $ 168.1 $ 157.6 $
521.3 $ 479.4
Operating earnings before
financial services as a percentage of sales As reported
16.9 % 18.9 % 18.7 % 18.9 % As adjusted to exclude legal charge
18.6 % 18.9 % 19.2 % 18.9 % 2 )
Operating earnings As
reported $ 209.1 $ 208.2 $ 669.4 $ 626.5 Legal charge 15.0
- 15.0 - As
adjusted to exclude legal charge $ 224.1 $ 208.2 $
684.4 $ 626.5
Operating earnings as a
percentage of revenue As reported 21.3 % 23.0 % 22.7 % 22.8 %
As adjusted to exclude legal charge 22.8 % 23.0 % 23.2 % 22.8 %
3 )
Net earnings attributable to Snap-on Incorporated
As reported $ 133.4 $ 131.7 $ 428.2 $ 400.1 Legal charge 9.3
- 9.3 - As
adjusted to exclude legal charge $ 142.7 $ 131.7 $
437.5 $ 400.1 4 )
Diluted EPS As
reported $ 2.29 $ 2.22 $ 7.27 $ 6.74 Diluted EPS - legal charge
0.16 - 0.16 -
As adjusted to exclude legal charge $ 2.45 $ 2.22
$ 7.43 $ 6.74
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171019005366/en/
Snap-on IncorporatedInvestors:Leslie
Kratcoski262/656-6121orMedia:Richard Secor262/656-5561
Snap on (NYSE:SNA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Snap on (NYSE:SNA)
Historical Stock Chart
From Apr 2023 to Apr 2024