Total Revenue Growth Up 20% Year-Over-Year
Driven By Strategic Outdoor Power Equipment Acquisitions And A
Sustained Strong Demand Environment
Gross Margin* Improved Over 200 Basis Points
Sequentially Driven By Strong Price Realization
Strategic Divestitures Enable A More Focused
Company And $2.3 Billion Return Of
Capital To Shareholders
NEW
BRITAIN, Conn., April 28,
2022 /PRNewswire/ -- Stanley
Black & Decker (NYSE: SWK) today announced first
quarter 2022 financial results.
The Company's results represent continuing operations and
exclude Stanley Access Technologies ("Access Technologies")
following the announced divestiture earlier this month, unless
specifically noted. This transaction, which is the final piece of
the Security business divestiture is subject to regulatory approval
and customary closing conditions and is expected to close
mid-year. The results of this business were previously
included in Corporate and Other, and are now recorded as
discontinued operations.
- First Quarter Revenues Of $4.4
Billion, Up 20% Versus Prior Year, Led By Acquisitions In
Outdoor Power Equipment And Price Realization
- First Quarter Diluted GAAP EPS Was $0.94; Excluding Charges, Adjusted Diluted EPS*
Was $2.10
- Full Year 2022 Total Revenue Growth Is Expected To Be In The
Mid-Twenties Year-Over-Year
- Updating Full Year 2022 Diluted GAAP EPS Guidance Range To
$7.20 - $8.30 (From $10.10
- $10.70); Adjusted Diluted EPS* To
$9.50 - $10.50 (From $12.00
- $12.50); Free Cash Flow To
Approximate $1.0 - $1.5 Billion
- Made Substantial Progress Toward $4
Billion Share Repurchase Program, Initiating $2 Billion Accelerated Share Repurchase And
Completed $0.3 Billion Open-Market
Repurchases
"Stanley Black & Decker
capitalized on the strong demand environment, our recent strategic
acquisitions in the fast-growing outdoor power equipment market and
a 5% contribution from pricing to drive 20% quarterly revenue
growth as well as higher sequential margins," said Stanley Black & Decker CEO Jim Loree.
"We continue to strengthen our number one position in tools and
are strategically focusing our portfolio for sustained growth,
scale and efficiencies. Our announced Security divestitures enabled
$2.3 billion of share repurchases in
the first quarter, at a compelling value, which represents
substantial progress against our $4
billion share repurchase program."
"I want to thank the organization for their agility and efforts
as they successfully deliver strong day-to-day operational
execution, inventory management and pricing realization in 2022.
While inflationary pressures remain a macro headwind, we have
demonstrated our ability to offset those pressures. We
continue to invest in leading edge product innovation, strategic
growth initiatives and capacity expansions to better serve our
customers to enable a multi-year runway for growth, margin
expansion and long-term shareholder value creation," concluded
Loree.
1Q'22 Key Points:
- Net sales for the quarter were $4.4
billion, up 20% versus prior year driven by strategic
outdoor power equipment acquisitions (+23%) and price realization
(+5%), partially offset by lower volume (-6%) and currency (-2%).
Volume was in line with expectations, but constrained by temporary
electronic component supply challenges, which have continued to
improve.
- Gross margin for the quarter was 29.3%. Excluding charges,
gross margin* was 31.3%, improving 230 basis points sequentially
due to the successful implementation of planned price realization
actions. Gross margin* was down 610 basis points from prior year as
price realization was more than offset primarily by commodity
inflation, higher supply chain costs to serve demand and lower
volumes.
- Growth investments were deployed across the businesses, with
SG&A 21.6% of sales. Excluding charges, first quarter adjusted
SG&A expenses* were 19.8% of sales, up 90 basis points versus
prior year.
- The first quarter tax rate was 12.8%. Excluding charges, the
adjusted tax rate* was 13.2%.
- Working capital turns for the quarter were 3.7 turns down 1.5
turns sequentially, due to inventory investments to support the
strong demand, as well as the historical seasonal upturn in sales
related to Father's Day and the 2022 outdoor and construction
seasons. Inventory is planned to decline sequentially beginning in
the back half supporting an expected inventory reduction in 2022
versus year end 2021.
Donald Allan Jr., President and
CFO, commented, "We made tangible progress on our key priorities in
the first quarter, most notably price realization and improved
component supply, while we continued managing the global supply
chain environment. However, inflationary trends continued
during the quarter and we are responding with additional pricing
actions to be implemented in the coming weeks. We are adjusting our
plan accordingly as well as incorporating the impact of strategic
divestitures and the closure of our Russia business into revised
guidance.
"We continue to be focused on driving above-market organic
growth, delivering on our price and cost control measures,
successfully integrating MTD and Excel into the portfolio and
leveraging the SBD Operating Model to improve our fill rates,
working capital performance and other operational
metrics."
1Q'22 Segment Results
($ in M)
|
|
|
Sales
|
Profit
|
Charges1
|
Profit
Ex-
Charges*
|
Profit
Rate
|
Profit Rate
Ex-
Charges*
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
$3,801
|
$378.5
|
$153.7
|
$532.2
|
10.0%
|
14.0%
|
|
|
|
|
|
|
|
Industrial
|
$647
|
$41.3
|
$3.5
|
$44.8
|
6.4%
|
6.9%
|
|
1 See
Acquisition-Related And Other Charges On Page 5
|
|
|
* Non-GAAP Financial
Measure As Further Defined On Page 7
|
- Tools & Outdoor net sales increased 24% versus 1Q'21 as the
acquisitions of MTD and Excel (+27%) and price (+5%) were partially
offset by lower volume (-6%) and currency (-2%). Organic growth
from pricing improved 60 basis points versus the fourth quarter as
we implemented new global price increases in response to commodity
inflation and higher costs to serve. Regional organic revenue was
relatively in line with the anticipated supply-constrained
performance in the emerging markets (+5%), Europe (+2%), and North America (-3%). Sales from outdoor
acquisitions were modestly impacted by a later start to the
merchandising season due to colder weather, and are expected to be
recovered in the second and third quarter. Using 2019 as a
baseline, U.S. retail point-of-sale demand remained robust driven
by strong professional construction markets and innovation with POS
growth rates stronger than the growth rates experienced in 2H'21.
Channel inventory in U.S. retail remained below historical levels,
in particular for professional power tools. The Tools & Outdoor
segment profit rate, excluding charges, was 14.0%, up sequentially
from 11.4% in 4Q'21 primarily reflecting the benefit of new global
price increases. There was a year-over-year decline from 21.2% in
1Q'21 as initial benefit from price realization was more than
offset by inflation, higher supply chain costs, growth investments
and lower volume.
- Industrial net sales declined 2% versus 1Q'21 as price (+5%)
was more than offset by volume (-5%) and currency (-2%). Engineered
Fastening organic revenues were down 1% as general industrial
fastener growth was primarily offset by a market driven decline in
automotive. Infrastructure organic revenues were up 4%, as 13%
growth in attachment tools was partially offset by lower pipeline
project activity in Oil & Gas. The Industrial segment profit
rate, excluding charges, was 6.9%, down versus 15.7% in 1Q'21, as
the initial benefit from price realization was more than offset by
commodity inflation and lower volume in higher-margin automotive
and aerospace fasteners.
2022 Outlook
For the full year 2022, the Company projects mid-twenties total
revenue growth year-over-year. The Company is revising
its 2022 EPS outlook to $7.20 -
$8.30 on a diluted GAAP basis from
$10.10 to $10.70, and on an adjusted basis to $9.50 to $10.50
from $12.00 to $12.50.
Free cash flow is expected to be approximately $1.0 to $1.5
billion as the Company focuses on serving its customers
while leveraging the SBD Operating Model to drive working capital
efficiency. Through the first quarter, $2.3
billion of the planned $4
billion share repurchase was initiated and the Company
expects completion of the total program in 2023. Stanley Black & Decker remains focused on
disciplined capital allocation which aims to balance share
repurchase activity with its commitment to dividends and strong
investment grade credit ratings.
The following reflects the key assumption changes to the
Company's prior EPS outlook:
- Access Technologies divestiture (-$0.30)
- Russia business closure
(-$0.15)
- Incremental $600 million in commodity and transit
inflation (-$3.50)
- Incremental pricing actions, first quarter performance and
other (+$1.70)
The difference between 2022 GAAP and adjusted EPS guidance is
$2.20 to $2.30, consisting of acquisition-related and
other charges. These forecasted charges primarily relate to
restructuring expenses, a voluntary retirement program, the
Russia business closure,
integration costs and non-cash inventory step-up charges.
Acquisition-Related And Other Charges
Total pre-tax acquisition-related and other charges in the first
quarter of 2022 totaled $221.4
million, primarily related to non-cash inventory step-up
charges, restructuring expense, a voluntary retirement program,
integration-related costs and the Russia business closure. Gross profit included
$88.8 million of these charges while
SG&A included $78.9 million.
Other, net and Restructuring included $1.0
million and $52.7 million of
these charges, respectively.
Conference Call & Webcast
The Company will host a conference call with investors today,
April 28, 2022, at 8:00 am ET. A slide presentation which will
accompany the call will be available at
www.stanleyblackanddecker.com and will remain available after the
call.
The call and an accompanying slide presentation will be
available through a live webcast on the "Investors" section of
Stanley Black & Decker's
website, www.stanleyblackanddecker.com under the subheading "News
& Events." The event can also be accessed by telephone
within the US at (877) 930-8285, from outside the U.S. at +1 (253)
336-8297. Please use the conference identification number 4429246.
A replay will also be available two hours after the call and can be
accessed on the "Investors" section of Stanley Black & Decker's website, or at
(855) 859-2056 / +1 (404) 537-3406 using the passcode
4429246. The replay will also be available as a podcast
within 24 hours and can be accessed on our website and via
iTunes.
About Stanley Black &
Decker
Headquartered in the USA,
Stanley Black & Decker (NYSE:
SWK) is the world's largest tool company operating nearly 50
manufacturing facilities across America and more than 100
worldwide. Guided by its purpose – for those who make the world –
the company's more than 60,000 diverse and high-performing
employees produce innovative, award-winning power tools, hand
tools, storage, digital tool solutions, lifestyle products, outdoor
products, engineered fasteners and other industrial equipment to
support the world's makers, creators, tradespeople and builders.
The company's iconic brands include DEWALT®, BLACK+DECKER®,
CRAFTSMAN®, STANLEY®, CUB CADET®, HUSTLER® and TROY-BILT®.
Recognized for its leadership in environmental, social and
governance (ESG), Stanley Black
& Decker strives to be a force for good in support of its
communities, employees, customers and other stakeholders. To learn
more visit: www.stanleyblackanddecker.com.
Investor Contacts:
Dennis Lange
Vice President, Investor Relations
dennis.lange@sbdinc.com
(860) 827-3833
Cort Kaufman
Senior Director, Investor Relations
cort.kaufman@sbdinc.com
(860) 515-2741
Media Contacts:
Shannon Lapierre
Chief Communications Officer
shannon.lapierre@sbdinc.com
(860) 259-7669
Debora Raymond
Vice President, Public Relations
debora.raymond@sbdinc.com
(203) 640-8054
Non-GAAP Financial Measures
Organic sales growth, or organic growth, is defined as the
difference between total current and prior year sales less the
impact of companies acquired and divested in the past twelve months
and any foreign currency impacts divided by prior year sales.
Operating profit is defined as sales less cost of sales and
selling, general and administrative expenses. Operating margin is
operating profit as a percentage of sales. Operating profit and
operating margin are shown both inclusive and exclusive of
acquisition-related and other charges. Management uses operating
profit and operating margin as key measures to assess the
performance of the Company as a whole, as well as the related
measures at the segment level. Diluted EPS, excluding charges, or
adjusted EPS, is diluted GAAP EPS excluding the impacts of
acquisition-related and other charges. Free cash flow is defined as
cash flow from operations less capital and software expenditures.
Management considers free cash flow an important indicator of its
liquidity, as well as its ability to fund future growth and to
provide a return to the shareowners, and is useful information for
investors. Free cash flow does not include deductions for mandatory
debt service, other borrowing activity, discretionary dividends on
the Company's common and preferred stock and business acquisitions,
among other items. Free cash flow conversion is defined as
free cash flow divided by net income. The Non-GAAP statement of
operations and business segment information is reconciled to GAAP
on pages 13 and 14. The Company considers the use of the Non-GAAP
financial measures above relevant to aid analysis and understanding
of the Company's results, business trends and outlook measures
aside from the material impact of acquisition-related and other
charges and ensures appropriate comparability to operating results
of prior periods.
CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995
This document 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.
All statements other than statements of historical fact are
"forward-looking statements" for purposes of federal and state
securities laws, including any projections or guidance of earnings,
revenue or other financial items; any statements of the plans,
strategies and objectives of management for future operations; any
statements concerning proposed new products, services or
developments; any statements regarding future economic conditions
or performance; any statements of belief; and any statements of
assumptions underlying any of the foregoing. Forward-looking
statements may include, among others, the words "may," "will,"
"estimate," "intend," "continue," "believe," "expect," "anticipate"
or any other similar words.
Although the Company believes that the expectations reflected in
any of its forward-looking statements are reasonable, actual
results could differ materially from those projected or assumed in
any of its forward-looking statements. The Company's future
financial condition and results of operations, as well as any
forward-looking statements, are subject to change and to inherent
risks and uncertainties, such as those disclosed or incorporated by
reference in the Company's filings with the Securities and Exchange
Commission.
Important factors that could cause the Company's actual results,
performance and achievements, or industry results to differ
materially from estimates or projections contained in its
forward-looking statements include, among others, the following:
(i) successfully developing, marketing and achieving sales from new
products and services and the continued acceptance of current
products and services; (ii) macroeconomic factors, including global
and regional business conditions (such as Brexit), commodity
prices, inflation and deflation, and currency exchange rates; (iii)
laws, regulations and governmental policies affecting the Company's
activities in the countries where it does business, including those
related to tariffs, taxation, data privacy, anti-bribery,
anti-corruption, government contracts and trade controls such as
section 301 tariffs and section 232 steel and aluminum tariffs;
(iv) the economic, political, cultural and legal environment of
emerging markets, particularly Latin
America, Russia,
China and Turkey; (v) realizing the anticipated benefits
of mergers, acquisitions, joint ventures, strategic alliances or
divestitures; (vi) pricing pressure and other changes within
competitive markets; (vii) availability and price of raw materials,
component parts, freight, energy, labor and sourced finished goods;
(viii) the impact the tightened credit markets and change to LIBOR
and other benchmark rates may have on the Company or its customers
or suppliers; (ix) the extent to which the Company has to write off
accounts receivable or assets or experiences supply chain
disruptions in connection with bankruptcy filings by customers or
suppliers; (x) the Company's ability to identify and effectively
execute productivity improvements and cost reductions; (xi)
potential business and distribution disruptions, including those
related to physical security threats, information technology or
cyber-attacks, epidemics, pandemics, sanctions, political unrest,
war, terrorism or natural disasters; (xii) the continued
consolidation of customers, particularly in consumer channels and
the Company's continued reliance on significant customers; (xiii)
managing franchisee relationships; (xiv) the impact of poor weather
conditions and climate change; (xv) maintaining or improving
production rates in the Company's manufacturing facilities,
responding to significant changes in customer preferences, product
demand and fulfilling demand for new and existing products, and
learning, adapting and integrating new technologies into products,
services and processes; (xvi) changes in the competitive landscape
in the Company's markets; (xvii) the Company's non-U.S. operations,
including sales to non-U.S. customers; (xviii) the impact from
demand changes within world-wide markets associated with
homebuilding and remodeling; (xix) potential adverse developments
in new or pending litigation and/or government investigations; (xx)
the incurrence of debt and changes in the Company's ability to
obtain debt on commercially reasonable terms and at competitive
rates; (xxi) substantial pension and other postretirement benefit
obligations; (xxii) potential regulatory liabilities, including
environmental, privacy, data breach, workers compensation and
product liabilities; (xxiii) attracting and retaining key
employees, managing a workforce in many jurisdictions, work
stoppages or other labor disruptions; (xxiv) the Company's ability
to keep abreast with the pace of technological change; (xxv)
changes in accounting estimates; (xxvi) the Company's ability to
protect its intellectual property rights and associated
reputational impacts; (xxvii) the continued adverse effects of the
COVID-19 pandemic and an indeterminate recovery period; (xxviii)
the possibility that the Company does not achieve the
intended financial benefits from the acquisition of MTD and Excel;
(xxix) the failure to consummate, or a delay in the consummation
of, the Security or Access Technology sale transactions for various
reasons (including but not limited to failure to receive, or delay
in receiving, required regulatory approvals and meet customary
closing conditions); (xxx) the failure to undertake or complete, or
a delay in the timing of, the share repurchase program; and
(xxxi) failure to realize the expected benefits of the Company's
capital allocation strategy and share repurchase program.
Additional factors that could cause actual results to differ
materially from forward-looking statements are set forth in the
Annual Report on Form 10-K and in the Quarterly Report on Form
10-Q, including under the heading "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and in the Consolidated Financial Statements and the
related Notes.
Forward-looking statements in this press release speak only as
of the date hereof, and forward-looking statements in documents
attached that are incorporated by reference speak only as of the
date of those documents. The Company does not undertake any
obligation to update or release any revisions to any
forward-looking statement or to report any events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events, except as required by law.
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, Millions
of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST
QUARTER
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$ 4,448.0
|
|
$
3,720.8
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
Cost of
sales
|
|
3,142.6
|
|
2,333.0
|
|
|
|
Gross profit
|
|
1,305.4
|
|
1,387.8
|
|
|
|
% of Net
Sales
|
|
29.3%
|
|
37.3%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
960.3
|
|
719.1
|
|
|
|
% of Net
Sales
|
|
21.6%
|
|
19.3%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
345.1
|
|
668.7
|
|
|
|
% of Net
Sales
|
|
7.8%
|
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
Other - net
|
|
62.0
|
|
48.0
|
|
|
|
Loss on sale of
business
|
|
-
|
|
1.0
|
|
|
|
Restructuring
charges
|
|
52.7
|
|
1.8
|
|
|
|
Income from
operations
|
|
230.4
|
|
617.9
|
|
|
|
Interest -
net
|
|
51.9
|
|
44.6
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY
INTEREST
|
178.5
|
|
573.3
|
|
|
|
Income taxes on
continuing operations
|
|
22.9
|
|
115.5
|
|
|
NET EARNINGS FROM
CONTINUING OPERATIONS BEFORE EQUITY INTEREST
|
155.6
|
|
457.8
|
|
|
|
Share of net earnings
of equity method investment
|
|
-
|
|
1.8
|
|
|
NET EARNINGS FROM
CONTINUING OPERATIONS
|
|
155.6
|
|
459.6
|
|
|
|
Less: Net earnings
(losses) attributable to non-controlling interests
|
0.1
|
|
(0.6)
|
|
|
NET EARNINGS FROM
CONTINUING OPERATIONS ATTRIBUTABLE TO STANLEY BLACK & DECKER,
INC.
|
$
155.5
|
|
$
460.2
|
|
|
|
Less: Preferred stock
dividends and beneficial conversion feature
|
-
|
|
9.4
|
|
|
NET EARNINGS FROM
CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON
SHAREOWNERS
|
$
155.5
|
|
$
450.8
|
|
|
|
Add: Contract
adjustment payments accretion
|
|
0.3
|
|
0.2
|
|
|
NET EARNINGS FROM
CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS -
DILUTED
|
$
155.8
|
|
$
451.0
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations before income taxes
|
22.2
|
|
31.1
|
|
|
|
Income taxes on
discontinued operations
|
|
2.4
|
|
3.9
|
|
|
NET EARNINGS FROM
DISCONTINUED OPERATIONS
|
|
$
19.8
|
|
$
27.2
|
|
|
NET EARNINGS
ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED
|
$
175.6
|
|
$
478.2
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC.
|
$
175.3
|
|
$
487.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS
PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
1.00
|
|
$
2.86
|
|
|
|
Discontinued
operations
|
|
$
0.13
|
|
$
0.17
|
|
|
|
Total basic earnings per
share of common stock
|
|
$
1.13
|
|
$
3.04
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.94
|
|
$
2.74
|
|
|
|
Discontinued
operations
|
|
$
0.12
|
|
$
0.17
|
|
|
|
Total diluted earnings per
share of common stock
|
|
$
1.06
|
|
$
2.91
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
SHARE OF COMMON STOCK
|
|
$
0.79
|
|
$
0.70
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE
SHARES OUTSTANDING (in thousands)
|
|
|
|
|
|
|
Basic
|
|
155,433
|
|
157,490
|
|
|
|
Diluted
|
|
165,413
|
|
164,349
|
|
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
April
2,
|
|
January
1,
|
|
|
|
2022
|
|
2022
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
165.8
|
|
$
142.1
|
|
Accounts and notes
receivable, net
|
|
1,842.0
|
|
1,481.7
|
|
Inventories,
net
|
|
6,267.7
|
|
5,419.9
|
|
Current assets held for
sale
|
|
864.0
|
|
869.6
|
|
Other current
assets
|
|
596.7
|
|
613.1
|
|
Total current assets
|
|
9,736.2
|
|
8,526.4
|
|
Property, plant and
equipment, net
|
|
2,365.6
|
|
2,336.8
|
|
Goodwill and other
intangibles, net
|
|
13,237.3
|
|
13,285.7
|
|
Long-term assets held
for sale
|
|
2,628.5
|
|
2,635.8
|
|
Other assets
|
|
1,391.1
|
|
1,395.3
|
|
Total assets
|
|
$
29,358.7
|
|
$
28,180.0
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Short-term
borrowings
|
|
$
5,086.4
|
|
$
2,241.1
|
|
Current maturities of
long-term debt
|
|
1.2
|
|
1.3
|
|
Accounts
payable
|
|
3,367.7
|
|
3,423.6
|
|
Accrued
expenses
|
|
2,036.2
|
|
2,641.0
|
|
Current liabilities
held for sale
|
|
463.5
|
|
460.4
|
|
Total current liabilities
|
|
10,955.0
|
|
8,767.4
|
|
Long-term
debt
|
|
5,355.5
|
|
4,353.6
|
|
Long-term liabilities
held for sale
|
|
129.1
|
|
137.4
|
|
Other long-term
liabilities
|
|
3,564.3
|
|
3,329.2
|
|
Stanley Black &
Decker, Inc. shareowners' equity
|
9,352.8
|
|
11,590.5
|
|
Non-controlling
interests' equity
|
|
2.0
|
|
1.9
|
|
Total liabilities and shareowners' equity
|
$
29,358.7
|
|
$
28,180.0
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
SUMMARY OF CASH FLOW
ACTIVITY
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST
QUARTER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
|
|
$
155.6
|
|
$
459.6
|
|
|
|
Net earnings from
discontinued operations
|
|
|
19.8
|
|
27.2
|
|
|
|
Depreciation and
amortization
|
|
|
143.7
|
|
144.0
|
|
|
|
Loss on sale of
business
|
|
|
-
|
|
1.0
|
|
|
|
Share of net earnings
of equity method investment
|
|
|
-
|
|
(1.8)
|
|
|
|
Changes in working
capital1
|
|
|
(1,336.1)
|
|
(720.4)
|
|
|
|
Other
|
|
|
|
(224.1)
|
|
(67.4)
|
|
|
|
Net cash used in
operating activities
|
|
|
(1,241.1)
|
|
(157.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital and software
expenditures
|
|
|
(139.8)
|
|
(88.3)
|
|
|
|
Proceeds from sales of
assets
|
|
|
9.0
|
|
1.3
|
|
|
|
Business acquisitions,
net of cash acquired
|
|
|
(36.5)
|
|
(0.2)
|
|
|
|
Net investment hedge
settlements
|
|
|
4.7
|
|
(52.6)
|
|
|
|
Proceeds from debt
issuances, net of fees
|
|
|
994.8
|
|
-
|
|
|
|
Stock purchase contract
fees
|
|
|
(9.8)
|
|
(9.8)
|
|
|
|
Net short-term
borrowings (repayments)
|
|
|
2,844.8
|
|
(0.7)
|
|
|
|
Proceeds from issuances
of common stock
|
|
|
13.7
|
|
64.1
|
|
|
|
Purchases of common
stock for treasury
|
|
|
(2,313.0)
|
|
(14.9)
|
|
|
|
Craftsman contingent
consideration
|
|
|
(9.8)
|
|
(7.0)
|
|
|
|
Termination of interest
rate swaps
|
|
|
22.7
|
|
-
|
|
|
|
Cash dividends on
common stock
|
|
|
(116.3)
|
|
(110.1)
|
|
|
|
Cash dividends on
preferred stock
|
|
|
-
|
|
(9.4)
|
|
|
|
Effect of exchange rate
changes on cash
|
|
|
4.8
|
|
(38.9)
|
|
|
|
Other
|
|
|
|
(2.5)
|
|
(15.3)
|
|
|
|
Net cash provided by
(used in) investing and financing activities
|
|
|
1,266.8
|
|
(281.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
|
|
25.7
|
|
(439.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
294.8
|
|
1,398.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
|
$
320.5
|
|
$
958.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation2
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
|
$
(1,241.1)
|
|
$
(157.8)
|
|
|
Less: capital and
software expenditures
|
|
|
(139.8)
|
|
(88.3)
|
|
|
Free cash flow (before
dividends)
|
|
|
$
(1,380.9)
|
|
$
(246.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents and Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
April 2,
2022
|
|
January 1,
2022
|
|
|
Cash and cash
equivalents
|
|
|
$
165.8
|
|
$
142.1
|
|
|
Restricted cash
included in Other current assets
|
|
|
3.9
|
|
7.6
|
|
|
Cash and cash
equivalents included in Current assets held for sale
|
|
|
150.8
|
|
145.1
|
|
|
Cash, cash equivalents
and restricted cash
|
|
|
$
320.5
|
|
$
294.8
|
|
|
|
1
|
Working capital is
comprised of accounts receivable, inventory, accounts payable and
deferred revenue.
|
2
|
Free cash flow is
defined as cash flow from operations less capital and software
expenditures.
Management considers free cash flow an important measure of its
liquidity, as well as its ability
to fund future growth and to provide a return to the shareowners,
and is useful information
for investors. Free cash flow does not include deductions for
mandatory debt service, other
borrowing activity, discretionary dividends on the Company's common
and preferred stock and
business acquisitions, among other items.
|
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited, Millions
of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST
QUARTER
|
|
|
|
2022
|
|
2021
|
|
|
|
|
NET
SALES
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
3,801.2
|
|
$
3,062.9
|
|
Industrial
|
|
646.6
|
|
657.7
|
|
Segment Net
Sales
|
|
4,447.8
|
|
3,720.6
|
|
Other
|
|
0.2
|
|
0.2
|
|
Total
|
|
$
4,448.0
|
|
$
3,720.8
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
378.5
|
|
$
644.7
|
|
Industrial
|
|
41.3
|
|
99.8
|
|
Segment
Profit
|
|
419.8
|
|
744.5
|
|
Corporate
Overhead
|
|
(74.7)
|
|
(75.8)
|
|
Total
|
|
$
345.1
|
|
$
668.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
Tools &
Outdoor
|
|
10.0%
|
|
21.0%
|
|
Industrial
|
|
6.4%
|
|
15.2%
|
|
Segment
Profit
|
|
9.4%
|
|
20.0%
|
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited, Millions
of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST QUARTER
2022
|
|
|
|
|
GAAP
|
|
Acquisition-
Related Charges
& Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
1,305.4
|
|
$
88.8
|
|
$
1,394.2
|
|
|
% of Net
Sales
|
|
29.3%
|
|
|
|
31.3%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
960.3
|
|
(78.9)
|
|
881.4
|
|
|
% of Net
Sales
|
|
21.6%
|
|
|
|
19.8%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
345.1
|
|
167.7
|
|
512.8
|
|
|
% of Net
Sales
|
|
7.8%
|
|
|
|
11.5%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes and equity
interest
|
178.5
|
|
221.4
|
|
399.9
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
22.9
|
|
29.8
|
|
52.7
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations attributable to common shareowners -
Diluted
|
155.8
|
|
191.6
|
|
347.4
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock - Continuing operations
|
$
0.94
|
|
$
1.16
|
|
$
2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to non-cash inventory step-up
charges, restructuring, a voluntary retirement program,
integration-related
costs and the Russia business closure.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST QUARTER
2021
|
|
|
|
|
GAAP
|
|
Acquisition-
Related Charges
& Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
1,387.8
|
|
$
4.4
|
|
$
1,392.2
|
|
|
% of Net
Sales
|
|
37.3%
|
|
|
|
37.4%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
719.1
|
|
(15.0)
|
|
704.1
|
|
|
% of Net
Sales
|
|
19.3%
|
|
|
|
18.9%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
668.7
|
|
19.4
|
|
688.1
|
|
|
% of Net
Sales
|
|
18.0%
|
|
|
|
18.5%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes and equity
interest
|
573.3
|
|
23.8
|
|
597.1
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
115.5
|
|
6.0
|
|
121.5
|
|
|
|
|
|
|
|
|
|
|
|
Share of net earnings
of equity method investment
|
1.8
|
|
0.2
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations attributable to common shareowners -
Diluted
|
451.0
|
|
18.0
|
|
469.0
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock - Continuing operations
|
$
2.74
|
|
$
0.11
|
|
$
2.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to functional transformation
initiatives and facility-related costs.
|
|
3
|
The non-GAAP 2022 and
2021 information, as reconciled to GAAP above, is considered
relevant to aid analysis and understanding of the Company's
results,
business trends and outlook measures aside from the material impact
of acquisition-related and other charges and ensures appropriate
comparability to operating
results of prior periods.
|
|
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited, Millions
of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST QUARTER
2022
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related Charges
and Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
378.5
|
|
$
153.7
|
|
$
532.2
|
|
|
|
Industrial
|
|
41.3
|
|
3.5
|
|
44.8
|
|
|
|
Segment
Profit
|
|
419.8
|
|
157.2
|
|
577.0
|
|
|
|
Corporate
Overhead
|
|
(74.7)
|
|
10.5
|
|
(64.2)
|
|
|
|
Total
|
|
$
345.1
|
|
$
167.7
|
|
$
512.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
10.0%
|
|
|
|
14.0%
|
|
|
|
Industrial
|
|
6.4%
|
|
|
|
6.9%
|
|
|
|
Segment
Profit
|
|
9.4%
|
|
|
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to non-cash inventory step-up
charges, a voluntary retirement program,
integration-related costs and the Russia business
closure.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST QUARTER
2021
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related Charges
and Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
644.7
|
|
$
4.2
|
|
$
648.9
|
|
|
|
Industrial
|
|
99.8
|
|
3.6
|
|
103.4
|
|
|
|
Segment
Profit
|
|
744.5
|
|
7.8
|
|
752.3
|
|
|
|
Corporate
Overhead
|
|
(75.8)
|
|
11.6
|
|
(64.2)
|
|
|
|
Total
|
|
$
668.7
|
|
$
19.4
|
|
$
688.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
21.0%
|
|
|
|
21.2%
|
|
|
|
Industrial
|
|
15.2%
|
|
|
|
15.7%
|
|
|
|
Segment
Profit
|
|
20.0%
|
|
|
|
20.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to functional transformation
initiatives and facility-related costs.
|
|
3
|
The non-GAAP 2022 and
2021 business segment information, as reconciled to GAAP above, is
considered relevant to aid
analysis and understanding of the Company's results, business
trends and outlook measures aside from the material impact of
acquisition-related and other charges and ensures appropriate
comparability to operating results of prior periods.
|
|
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SOURCE Stanley Black &
Decker