Company Quick10K Filing
Fortune Brands
Price53.34 EPS3
Shares141 P/E18
MCap7,542 P/FCF21
Net Debt1,606 EBIT594
TEV9,148 TEV/EBIT15
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-05-01
10-K 2019-12-31 Filed 2020-02-26
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-08-02
10-Q 2019-03-31 Filed 2019-05-07
10-K 2018-12-31 Filed 2019-02-25
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-07-31
10-Q 2018-03-31 Filed 2018-05-02
10-K 2017-12-31 Filed 2018-02-28
10-Q 2017-09-30 Filed 2017-10-31
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-02
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-11-02
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-04-28
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-10-30
10-Q 2015-06-30 Filed 2015-07-29
10-Q 2015-03-31 Filed 2015-05-05
10-K 2014-12-31 Filed 2015-02-25
10-Q 2014-09-30 Filed 2014-10-31
10-Q 2014-06-30 Filed 2014-07-31
10-Q 2014-03-31 Filed 2014-05-01
10-K 2013-12-31 Filed 2014-02-26
10-Q 2013-09-30 Filed 2013-11-01
10-Q 2013-06-30 Filed 2013-07-31
10-Q 2013-03-31 Filed 2013-05-03
10-K 2012-12-31 Filed 2013-02-27
10-Q 2012-09-30 Filed 2012-11-05
10-Q 2012-06-30 Filed 2012-08-07
10-Q 2012-03-31 Filed 2012-05-04
10-K 2011-12-31 Filed 2012-02-22
10-Q 2011-09-30 Filed 2011-11-10
8-K 2020-07-29 Earnings, Exhibits
8-K 2020-07-13 Exhibits
8-K 2020-04-29
8-K 2020-04-28
8-K 2020-01-29
8-K 2019-10-23
8-K 2019-10-07
8-K 2019-09-30
8-K 2019-09-24
8-K 2019-09-09
8-K 2019-08-01
8-K 2019-07-26
8-K 2019-05-07
8-K 2019-04-24
8-K 2019-03-05
8-K 2019-02-21
8-K 2019-01-31
8-K 2018-10-25
8-K 2018-09-19
8-K 2018-07-26
8-K 2018-07-13
8-K 2018-04-30
8-K 2018-04-26
8-K 2018-02-01

FBHS 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements.
Item 2. Fortune Brands Home & Security, Inc.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits
EX-31.1 fbhs-ex311_8.htm
EX-31.2 fbhs-ex312_7.htm
EX-32 fbhs-ex32_6.htm

Fortune Brands Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
1.61.30.90.60.2-0.12012201420172020
Rev, G Profit, Net Income
0.70.40.1-0.1-0.4-0.72012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2020

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from         to         

 

Commission file number 1-35166

 

FORTUNE BRANDS HOME & SECURITY, INC.

 

(Exact name of Registrant as specified in its charter)

 

 

Delaware

 

62-1411546

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

520 Lake Cook Road, Deerfield, Illinois 60015-5611

 

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (847) 484-4400

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

FBHS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes         No  

 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No  

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes        No    

 

The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, at July 17, 2020 was 138,148,321.

 

 

 


PART I.  FINANCIAL INFORMATION

Item 1.

FINANCIAL STATEMENTS.

FORTUNE BRANDS HOME & SECURITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Six and Three Months Ended June 30, 2020 and 2019

(In millions, except per share amounts)

(Unaudited)

 

 

 

Six Months Ended

 

 

Three Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net sales

 

$

2,778.5

 

 

$

2,835.1

 

 

$

1,375.8

 

 

$

1,507.2

 

Cost of products sold

 

 

1,802.4

 

 

 

1,838.7

 

 

 

892.9

 

 

 

969.6

 

Selling, general and administrative expenses

 

 

590.1

 

 

 

632.6

 

 

 

276.2

 

 

 

320.6

 

Amortization of intangible assets

 

 

20.6

 

 

 

20.1

 

 

 

10.3

 

 

 

10.1

 

Asset impairment charges

 

 

22.5

 

 

 

 

 

 

13.0

 

 

 

 

Restructuring charges

 

 

14.9

 

 

 

5.7

 

 

 

10.4

 

 

 

4.5

 

Operating income

 

 

328.0

 

 

 

338.0

 

 

 

173.0

 

 

 

202.4

 

Interest expense

 

 

44.3

 

 

 

48.2

 

 

 

22.2

 

 

 

24.5

 

Other income, net

 

 

(11.3

)

 

 

(1.9

)

 

 

(5.2

)

 

 

(0.7

)

Income before taxes

 

 

295.0

 

 

 

291.7

 

 

 

156.0

 

 

 

178.6

 

Income tax

 

 

67.7

 

 

 

70.1

 

 

 

37.8

 

 

 

41.5

 

Income after tax

 

 

227.3

 

 

 

221.6

 

 

 

118.2

 

 

 

137.1

 

Equity in losses of affiliate

 

 

2.3

 

 

 

 

 

 

2.0

 

 

 

 

Net income

 

 

225.0

 

 

 

221.6

 

 

 

116.2

 

 

 

137.1

 

Less: Noncontrolling interests

 

 

0.1

 

 

 

(0.6

)

 

 

0.4

 

 

 

(0.4

)

Net income attributable to Fortune Brands

 

$

224.9

 

 

$

222.2

 

 

$

115.8

 

 

$

137.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

1.62

 

 

$

1.58

 

 

$

0.84

 

 

$

0.98

 

Diluted earnings per common share

 

$

1.61

 

 

$

1.57

 

 

$

0.83

 

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

187.3

 

 

$

233.1

 

 

$

129.1

 

 

$

140.3

 

 

See notes to condensed consolidated financial statements.


 

2


FORTUNE BRANDS HOME & SECURITY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

398.4

 

 

$

387.9

 

Accounts receivable less allowances for discounts and doubtful accounts

 

 

657.7

 

 

 

624.8

 

Inventories

 

 

732.3

 

 

 

718.6

 

Other current assets

 

 

168.9

 

 

 

166.9

 

Total current assets

 

 

1,957.3

 

 

 

1,898.2

 

Property, plant and equipment, net of accumulated depreciation

 

 

794.2

 

 

 

824.2

 

Operating lease assets

 

 

164.4

 

 

 

165.6

 

Goodwill

 

 

2,081.3

 

 

 

2,090.2

 

Other intangible assets, net of accumulated amortization

 

 

1,118.0

 

 

 

1,168.9

 

Other assets

 

 

217.1

 

 

 

144.2

 

Total assets

 

$

6,332.3

 

 

$

6,291.3

 

Liabilities and equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Short-term debt

 

$

 

 

$

399.7

 

Accounts payable

 

 

463.9

 

 

 

460.0

 

Other current liabilities

 

 

488.9

 

 

 

549.6

 

Total current liabilities

 

 

952.8

 

 

 

1,409.3

 

Long-term debt

 

 

2,245.9

 

 

 

1,784.6

 

Deferred income taxes

 

 

152.1

 

 

 

157.2

 

Accrued defined benefit plans

 

 

197.5

 

 

 

201.4

 

Operating lease liabilities

 

 

137.5

 

 

 

139.8

 

Other non-current liabilities

 

 

183.4

 

 

 

171.2

 

Total liabilities

 

 

3,869.2

 

 

 

3,863.5

 

Commitments and contingencies (see Note 17)

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Fortune Brands equity

 

 

 

 

 

 

 

 

Common stock(a)

 

 

1.8

 

 

 

1.8

 

Paid-in capital

 

 

2,852.9

 

 

 

2,813.8

 

Accumulated other comprehensive loss

 

 

(110.3

)

 

 

(72.6

)

Retained earnings

 

 

1,954.7

 

 

 

1,763.0

 

Treasury stock

 

 

(2,237.3

)

 

 

(2,079.4

)

Total Fortune Brands equity

 

 

2,461.8

 

 

 

2,426.6

 

Noncontrolling interests

 

 

1.3

 

 

 

1.2

 

Total equity

 

 

2,463.1

 

 

 

2,427.8

 

Total liabilities and equity

 

$

6,332.3

 

 

$

6,291.3

 

 

(a)

Common stock, par value $0.01 per share; 183.0 million shares and 181.9 million shares issued at June 30, 2020 and December 31, 2019, respectively.

 

See notes to condensed consolidated financial statements.


 

3


FORTUNE BRANDS HOME & SECURITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2020 and 2019

(In millions)

(Unaudited)

 

 

 

2020

 

 

2019

 

Operating activities

 

 

 

 

 

 

 

 

Net income

 

$

225.0

 

 

$

221.6

 

Non-cash pre-tax expense:

 

 

 

 

 

 

 

 

Depreciation

 

 

57.0

 

 

 

56.0

 

Amortization of intangibles

 

 

20.6

 

 

 

20.0

 

Non-cash lease expense

 

 

16.7

 

 

 

17.9

 

Stock-based compensation

 

 

15.0

 

 

 

14.5

 

Deferred taxes

 

 

(11.8

)

 

 

5.0

 

Asset impairment charges

 

 

22.5

 

 

 

1.7

 

Amortization of deferred financing fees

 

 

2.1

 

 

 

1.5

 

Equity in losses of affiliate

 

 

2.3

 

 

 

 

Gain on equity investments

 

 

(6.6

)

 

 

 

Loss (gain) on sale of property, plant and equipment

 

 

1.2

 

 

 

(1.0

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Increase in accounts receivable

 

 

(59.6

)

 

 

(132.6

)

Increase in inventories

 

 

(18.1

)

 

 

(61.1

)

Increase in accounts payable

 

 

11.9

 

 

 

26.8

 

Increase in other assets

 

 

(8.1

)

 

 

(13.8

)

Decrease in accrued expenses and other liabilities

 

 

(62.2

)

 

 

(41.2

)

Increase (decrease) in accrued taxes

 

 

52.6

 

 

 

(3.3

)

Net cash provided by operating activities

 

 

260.5

 

 

 

112.0

 

Investing activities

 

 

 

 

 

 

 

 

Capital expenditures (a)

 

 

(42.3

)

 

 

(54.9

)

Proceeds from the disposition of assets

 

 

1.5

 

 

 

4.1

 

Cost of investments in equity securities

 

 

(59.4

)

 

 

 

Net cash used in investing activities

 

 

(100.2

)

 

 

(50.8

)

Financing activities

 

 

 

 

 

 

 

 

Decrease in short-term debt

 

 

 

 

 

(175.0

)

Issuance of long-term debt

 

 

900.0

 

 

 

665.0

 

Repayment of long-term debt

 

 

(840.0

)

 

 

(410.0

)

Proceeds from the exercise of stock options

 

 

24.1

 

 

 

6.1

 

Treasury stock purchases

 

 

(150.0

)

 

 

(50.0

)

Employee withholding taxes related to stock-based compensation

 

 

(7.9

)

 

 

(8.2

)

Deferred acquisition payments

 

 

 

 

 

(19.0

)

Dividends to stockholders

 

 

(66.6

)

 

 

(61.7

)

Other financing, net

 

 

(1.8

)

 

 

(0.2

)

Net cash used in financing activities

 

 

(142.2

)

 

 

(53.0

)

Effect of foreign exchange rate changes on cash

 

 

(8.0

)

 

 

4.9

 

Net increase in cash and cash equivalents

 

$

10.1

 

 

$

13.1

 

Cash, cash equivalents and restricted cash(b) at beginning of period

 

$

394.9

 

 

$

270.7

 

Cash, cash equivalents and restricted cash(b) at end of period

 

$

405.0

 

 

$

283.8

 

 

(a)

Capital expenditures of $3.9 million and $7.8 million that had not been paid as of June 30, 2020 and 2019, respectively, were excluded from the Statement of Cash Flows.

(b)

Restricted cash of $1.0 million and $5.6 million is included in Other current assets and Other assets, respectively, as of June 30, 2020 and restricted cash of $0.7 million and $6.8 million is included in Other current assets and Other assets, respectively, as of June 30, 2019.  Restricted cash of $0.8 million and $6.1 million is included in Other current assets and Other assets, respectively, as of December 31, 2019.

See notes to condensed consolidated financial statements.

 

4


FORTUNE BRANDS HOME & SECURITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Six and Three Months Ended June 30, 2020 and 2019

(In millions)

(Unaudited)

 

 

 

Common

Stock

 

 

Paid-In

Capital

 

 

Accumulated

Other

Comprehensive

(Loss) Income

 

 

Retained

Earnings

 

 

Treasury

Stock

 

 

Non-

controlling

Interests

 

 

Total

Equity

 

Balance at December 31, 2018

 

$

1.8

 

 

$

2,766.0

 

 

$

(67.0

)

 

$

1,448.1

 

 

$

(1,970.7

)

 

$

1.8

 

 

$

2,180.0

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

222.2

 

 

 

 

 

 

(0.6

)

 

 

221.6

 

Other comprehensive loss

 

 

 

 

 

 

 

 

11.5

 

 

 

 

 

 

 

 

 

 

 

 

11.5

 

Stock options exercised

 

 

 

 

 

6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.1

 

Stock-based compensation

 

 

 

 

 

14.5

 

 

 

 

 

 

 

 

 

(8.2

)

 

 

 

 

 

6.3

 

Adoption of ASU 2018-02

 

 

 

 

 

 

 

 

(8.6

)

 

 

8.6

 

 

 

 

 

 

 

 

 

-

 

Treasury stock purchases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50.0

)

 

 

 

 

 

(50.0

)

Dividends ($0.22 per common share)

 

 

 

 

 

 

 

 

 

 

 

(30.8

)

 

 

 

 

 

 

 

 

(30.8

)

Balance at June 30, 2019

 

$

1.8

 

 

$

2,786.6

 

 

$

(64.1

)

 

$

1,648.1

 

 

$

(2,028.9

)

 

$

1.2

 

 

$

2,344.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

 

$

1.8

 

 

$

2,813.8

 

 

$

(72.6

)

 

$

1,763.0

 

 

$

(2,079.4

)

 

$

1.2

 

 

$

2,427.8

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

224.9

 

 

 

 

 

 

0.1

 

 

 

225.0

 

Other comprehensive income

 

 

 

 

 

 

 

 

(37.7

)

 

 

 

 

 

 

 

 

 

 

 

(37.7

)

Stock options exercised