Slide 1: Quarterly Financial Review Fourth Quarter 2019
Quarterly Financial Review Fourth Quarter 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT • These slides should be read in conjunction with comments from the February 6, 2020 conference call. The financial statement information included herein is unaudited. • Statements made during the February 6, 2020 conference call and/or information included in this presentation
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 – 4th Quarter
CONSOLIDATED RESULTS – 4TH QUARTER 2019 2018 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 955.2 $ 952.5 0.3 % Organic sales 5.5 0.6 % Acquisitions 3.5 0.4 % Currency translation (6.3) (0.7)% Gross profit $ 450.5 47.2 % $ 457.4 48.0 % Operating expenses 279.1 29
Slide 7: Commercial & Industrial – 4th Quarter
COMMERCIAL & INDUSTRIAL – 4TH QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 352.9 $ 343.7 2.7 % Organic sales 11.8 3.5 % Acquisitions 0.9 0.2 % Currency translation (3.5) (1.0)% Gross profit $ 125.4 $ 132.4 % of sales 35.5 % 38.5 % Operating expenses $ 80.4 $ 81.6 % of s
Slide 8: Snap-on Tools – 4th Quarter
SNAP-ON TOOLS – 4TH QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 411.7 $ 407.4 1.1 % Organic sales 5.3 1.3 % Currency translation (1.0) (0.2)% Gross profit $ 165.4 $ 163.7 % of sales 40.2 % 40.2 % Operating expenses $ 111.1 $ 106.7 % of sales 27.0 % 26.2 % Operating earni
Slide 9: Repair Systems & Information – 4th Quarter
REPAIR SYSTEMS & INFORMATION – 4TH QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 335.0 $ 339.9 (1.4)% Organic sales (5.2) (1.5)% Acquisitions 2.6 0.7 % Currency translation (2.3) (0.6)% Gross profit $ 159.7 $ 161.3 % of sales 47.7 % 47.5 % Operating expenses $ 72.5 $ 73.9
Slide 10: Financial Services – 4th Quarter
FINANCIAL SERVICES – 4TH QUARTER ($ in millions - unaudited) 2019 2018 Change Segment revenue $ 83.9 $ 82.7 1.5 % Operating earnings $ 62.2 $ 56.1 10.9 % Originations $ 262.4 $ 267.1 (1.8)% Originations decreased $4.7 million or 1.8% Average yield on finance receivables of 17.5% compared to 17.7
Slide 11: Financial Services Portfolio Data
FINANCIAL SERVICES PORTFOLIO DATA United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,499.2 $ 1,863.6 $ 196.3 $ 275.3 Portfolio net losses (TTM) $ 46.4 $ 48.8 $ 3.0 $ 3.9 60+ Delinquency: As of 12/31/19 1.8 % 1.5 % 0.7 % 0.9
Slide 12: Cash Flows
CASH FLOWS 4th Quarter Full Year ($ in millions - unaudited) 2019 2018 2019 2018 Net cash provided by operating activities $ 196.7 $ 215.9 $ 674.6 $ 764.5 Net earnings 175.0 179.3 711.2 696.2 Depreciation and amortization 23.9 22.9 92.4 94.1 Changes in deferred income taxes 23.5 20.6 34.2 13.7
Slide 13: Balance Sheet
BALANCE SHEET December 28, December 29, ($ in millions - unaudited) 2019 2018 Trade & Other Accounts Receivable - net $ 694.6 $ 692.6 Days Sales Outstanding 67 67 Finance Receivables - net $ 1,633.6 $ 1,592.9 Contract Receivables - net $ 460.8 $ 443.2 Inventory - net $ 760.4 $ 673.8 Inventory turns
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 4th Quarter Full Year ($ in millions, except per share data - unaudited) 2019 2018 2019 2018 Benefit related to the settlement of litigation matters (“legal settlements”) Pre-tax legal settlements $ - $ 4.3 $ 11.6 $ 4.3 Income tax expense - (
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 4th Quarter Full Year ($ in millions, except per share data - unaudited) 2019 2018 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 expen
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 4th Quarter Full Year ($ in millions - unaudited) 2019 2018 2019 2018 Operating earnings before financial services As reported $ 171.4 $ 182.1 $ 716.4 $ 726.0 Legal settlements - (4.3) (11.6) (4.3) As adjusted $ 171.4 $ 17
Slide 17: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 4th Quarter Full Year ($ in millions - unaudited) 2019 2018 2019 2018 Net earnings attributable to Snap-on Incorporated As reported $ 170.6 $ 175.0 $ 693.5 $ 679.9 Legal settlements, after tax - (3.2) (8.7) (3.2) Net debt