Slide 1: Quarterly Financial Review First Quarter 2019
Quarterly Financial Review First Quarter 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT • These slides should be read in conjunction with comments from the April 18, 2019 conference call. The financial statement information included herein is unaudited. • Statements made during the April 18, 2019 conference call and/or information included in this presentation may
Slide 3: Who We Are
Snapan incorporated Who We Are OUR MISSION The most valued productivity solutions in the world BELIEFS VALUES VISION We deeply believe in: Our behaviors define our success: To be acknowledged as the: Non-negotiable Product and We demonstrate Integrity, Brands of Choice Workplace Safety Uncompromisin
Slide 4: Nick Pinchuk, Chairman & Chief Executive Officer
Nick Pinchuk Chairman & Chief Executive Officer
Slide 5: Aldo Pagliari, Senior Vice President & Chief Financial Officer
Aldo Pagliari Senior Vice President & Chief Financial Officer
Slide 6: Consolidated Results – 1st Quarter
CONSOLIDATED RESULTS – 1ST QUARTER 2019 2018 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 921.7 $ 935.5 (1.5)% Organic sales 12.3 1.4 % Currency translation (26.1) (2.9)% Gross profit $ 471.6 51.2 % $ 471.6 50.4 % Operating expenses 284.2 30.9 % 293.9 31.4 % Oper
Slide 7: Commercial & Industrial – 1st Quarter
COMMERCIAL & INDUSTRIAL – 1ST QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 322.5 $ 331.6 (2.7)% Organic sales 4.7 1.5 % Currency translation (13.8) (4.2)% Gross profit $ 130.3 $ 129.3 % of sales 40.4 % 39.0 % Operating expenses $ 83.8 $ 82.8 % of sales 26.0 % 25.0 % Opera
Slide 8: Snap-on Tools – 1st Quarter
SNAP-ON TOOLS – 1ST QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 410.2 $ 404.7 1.4 % Organic sales 11.7 2.9 % Currency translation (6.2) (1.5)% Gross profit $ 183.1 $ 180.3 % of sales 44.6 % 44.6 % Operating expenses $ 115.9 $ 111.4 % of sales 28.2 % 27.6 % Operating earn
Slide 9: Repair Systems & Information – 1st Quarter
REPAIR SYSTEMS & INFORMATION – 1ST QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 327.9 $ 337.0 (2.7)% Organic sales (1.5) (0.5)% Currency translation (7.6) (2.2)% Gross profit $ 158.2 $ 162.0 % of sales 48.2 % 48.1 % Operating expenses $ 74.6 $ 76.2 % of sales 22.7 % 22.6 %
Slide 10: Financial Services – 1st Quarter
FINANCIAL SERVICES – 1ST QUARTER ($ in millions - unaudited) 2019 2018 Change Segment revenue $ 85.6 $ 83.0 3.1 % Operating earnings $ 62.1 $ 56.9 9.1 % Originations $ 252.5 $ 247.3 2.1 % Originations increased $5.2 million or 2.1% Average yield on finance receivables of 17.8% in both periods
Slide 11: Financial Services Portfolio Data
FINANCIAL SERVICES PORTFOLIO DATA United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,472.9 $ 1,816.0 $ 191.0 $ 271.1 Portfolio net losses (TTM) $ 48.4 $ 50.0 $ 3.0 $ 3.6 60+ Delinquency: As of 3/31/19 1.5 % 1.3 % 0.7 % 0.8
Slide 12: Cash Flows
CASH FLOWS 1st Quarter ($ in millions - unaudited) 2019 2018 Net cash provided by operating activities $ 201.3 $ 231.9 Net earnings 182.1 166.8 Depreciation and amortization 22.6 24.0 Changes in deferred income taxes 5.4 0.4 Loss on early extinguishment of debt - 7.8 Changes in working inv
Slide 13: Balance Sheet
BALANCE SHEET March 30, December 29, ($ in millions - unaudited) 2019 2018 Trade & Other Accounts Receivable - net $ 675.3 $ 692.6 Days Sales Outstanding 65 67 Finance Receivables - net $ 1,603.0 $ 1,592.9 Contract Receivables - net $ 438.0 $ 443.2 Inventory - net $ 707.0 $ 673.8 Inventory turns - T
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 1st Quarter ($ in millions, except per share data - unaudited) 2019 2018 Benefit related to the settlement of a litigation matter (“legal settlement”) Pre-tax legal settlement $ 11.6 $ - Income tax expense (2.9) - Legal settlement, after tax
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 1st Quarter ($ in millions, except per share data - unaudited) 2019 2018 Debt related items (“net debt items”) Gain on settlement of treasury lock (A) Gain on settlement of treasury lock $ - $ 13.3 Income tax expense - (3.3) Gain on settlemen
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 1st Quarter ($ in millions - unaudited) 2019 2018 Operating earnings before financial services As reported $ 187.4 $ 177.7 Legal settlement (11.6) - As adjusted $ 175.8 $ 177.7 Operating earnings before financial services
Slide 17: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 1st Quarter ($ in millions - unaudited) 2019 2018 Net earnings attributable to Snap-on Incorporated As reported $ 177.9 $ 163.0 Legal settlement, after tax (8.7) - Net debt items, after tax - (4.1) Tax charge - 2.6 As adju