H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q3 2024 Earnings Presentation
26 slides from H. B. Fuller's earnings presentation, Sep 26, 2024
Slide 1: Third Quarter 2024 Conference Call
Title Slide Third Quarter 2024 Conference Call September 26, 2024 ® 2024 H.B. Fuller
Slide 2: Disclosure: Safe Harbor Statement and Regulation G
Disclosure Safe Harbor Statement Certain matters discussed today may be considered forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such s
Slide 3: Third Quarter Highlights
Third Quarter Highlights Adjusted EBITDA $165M Adjusted EBITDA Margin 18% Adjusted EPS $1.13 Up 6% YOY Up 70 bps YOY Up 7% YOY Continued to incrementally expand EBITDA margin year-on-year on positive organic growth Volume growth came in at the low end of our expectations as certain durable goods rel
Slide 4: Global Business Unit Update
Global Business Unit Update Health, Hygiene, and Engineering Construction Consumable Adhesives Adhesives Adhesives • Organic revenue development • Organic revenue decreased 2%, • Organic sales increased 10% improved significantly driven by slightly lower pricing and YOY on continued strength in volu
Slide 5: Regional Perspective
Regional Perspective AMERICAS • Organic revenue increased 3% YOY • CA drove increase for the region, achieving a double-digit increase in organic sales • HHC organic revenue was flat vs prior year, representing a significant improvement from the beginning of the year, EA organic revenue down modestl
Slide 6: The UK's Largest Manufacturer and Distributor of High-quality Butyl Tapes
The UK’s Largest Manufacturer and Distributor of High-quality Butyl Tapes Servicing the building infrastructure and construction markets 2024 annualized sales are expected to be approximately $23 million ® 2024 H.B. Fuller
Slide 7: Q3 Financial Summary
Q3 Financial Summary Continued Margin Expansion and Adjusted EBITDA Growth • Net revenue up 1.9% YOY • Organic revenue up 0.4% YOY; volume up 3% YOY • Adjusted gross profit margin up 40 basis points YOY to 30.4%, • Adjusted SG&A up 3% YOY as expected, driven by acquisitions • Adjusted EBITDA up 6% t
Slide 8: FY 2024 Financial Guidance Update
FY 2024 Financial Guidance Update Revenue • Net revenue is now expected to be up approximately 2% YOY with organic revenue flat YOY Adjusted EBITDA • Adjusted EBITDA is now expected to be in the range of $610 to $620 million dollars, equating to growth of 5% to 7% YOY Net Interest Expense • Net inte
Slide 9: Recognized by Newsweek
Recognized by Newsweek One of America’s Most Admired Workplaces Surveyed more than 250,000 U.S. employees and collected over 1.5 million company reviews Key Question “For which employer would you love to work?” ® 2024 H.B. Fuller
Slide 10: Summary
Summary • Pleased with the progress we continue to make in improving our portfolio, streamlining our operations, and driving EBITDA margin expansion • Remain on track to deliver upon our long-term EBITDA margin and growth targets ® 2024 H.B. Fuller
Slide 11: Q&A Session
Q&A Session
Slide 12: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION In thousands, except per share amounts (unaudited) Three Three Months Months Ended Ended August 31, Percent of September 2, Percent of 2024 Net Revenue 2023 Net Revenue Net revenue $ 917,927 100.0 %
Slide 13: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION In thousands, except per share amounts (unaudited) Nine Months Nine Months Ended Ended August 31, Percent of September 2, Percent of 2024 Net Revenue 2023 Net Revenue Net revenue $ 2,645,452 100.0 %
Slide 14: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended Nine Months Ended September September August 31, 2, August 31, 2, 2024 2023 2024 2023 Net income attributable to H.B. Fuller $ 55,361 $
Slide 15: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION In thousands (unaudited) Three Months Ended Nine Months Ended September September August 31, 2, August 31, 2, 2024 2023 2024 2023 Net Revenue: Hygiene, Health and Consumable Adhesives $ 389,854 $ 402,388
Slide 16: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended Nine Months Ended September September August 31, 2, August 31, 2, 2024 2023 2024 2023 Income before income taxes and income from equity
Slide 17: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Three Months Ended Nine Months Ended September September August 31, 2, August 31, 2, 2024 2023 2024 2023 Net revenue $ 917,927 $ 900,634 $ 2,645,452 $ 2,608,055 Gross profit $ 275,7
Slide 18: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller August 31, 2024 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net in
Slide 19: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health and Nine Months Ended Consumable Engineering Construction Corporate H.B. Fuller August 31, 2024 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net inco
Slide 20: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller September 2, 2023 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net
Slide 21: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health Nine Months Ended and Consumable Engineering Construction Corporate H.B. Fuller September 2, 2023 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net in
Slide 22: Regulation G Reconciliations: Net Revenue Growth
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION NET REVENUE GROWTH (DECLINE) (unaudited) Three Months Nine Months Ended Ended August 31, August 31, 2024 2024 Price (2.6 )% (3.1 )% Volume 3.0 % 1.9 % Organic Growth13 0.4 % (1.2 )% M&A 3.0 % 3.9 % Consta
Slide 23: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Trailing Twelve Year Three Months Ended Months16 Ended Ended September December March 2, June 1, August August June 1, December 2, 2023 2, 2023 2024 2024 31, 2024 31, 2024 2024 2, 2
Slide 24: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) August 31, December 2, September 2, June 1, 2024 2024 2023 2023 Total debt $ 2,024,916 $ 2,021,070 $ 1,838,431 $ 1,885,021 Less: Cash and cash equivalents 114,823 131,412 179,453 94
Slide 25: Regulation G Reconciliations
Regulation G Reconciliations 1 Acquisition project costs include costs related to evaluating, acquiring and integrating business acquisitions. Acquisition project costs include $2,457 and $1,757 in transaction costs (primarily consulting and professional fees, representations and warranties insuranc
Slide 26: Regulation G Reconciliations
Regulation G Reconciliations 10 Adjusted income taxes and adjusted effective income tax rate are non-GAAP financial measures. Adjusted income taxes is defined as income taxes before the specific adjustments shown above. Adjusted effective income tax rate is defined as income taxes divided by adjuste