Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Q1 2024 Earnings Presentation
18 slides from Stanley Black & Decker's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Overview
First Quarter 2024 Overview May 2, 2024
Slide 2: Participants
Participants Don Allan President & CEO Chris Nelson COO, Executive Vice President And President, T&O Pat Hallinan Executive Vice President, CFO Dennis Lange Vice President, Investor Relations 1Q’24 Earnings Call | 2
Slide 3: Cautionary Statement
Cautionary Statement Certain Statements Contained In This Presentation Are Forward Looking. These Are Based On Assumptions Of Future Events Which May Not Prove To Be Accurate. They Involve Risk And Uncertainty. Actual Results May Differ Materially From Those Expected Or Implied. We Direct You To The
Slide 4: Transforming To Accelerate Organic Growth
Transforming To Accelerate Organic Growth Executing On Our Clear Vision And Strategy For Long-Term Success… Reduce Complexity – Invest In Core Growth Enhance ~$2B Savings By End Of ’25** $300M - $500M Shareholder Return Organic Revenue* OPTIMIZE I N N O VAT I O N Growth 2-3X Market C O R P O R AT E
Slide 5: 1Q 2024 Key Messages
1Q 2024 Key Messages Consistent, Solid Execution And Progress Against Key Operational Objectives To Drive Cost Improvement… 1Q’24 Key Financials • 1Q’24 Revenues Of $3.9 Billion, Down Versus Prior Year As Growth In DEWALT And Engineered $3.9B Total Revenue Fastening Was More Than Offset By Lower Inf
Slide 6: 1Q 2024 Segment Overview
1Q 2024 Segment Overview Leveraging The Global Cost Reduction Program To Drive Profitability Improvement In A Mixed Macro Environment Revenue Adjusted Segment Margin* • 1Q Organic Revenue* (1%) $M • (2%) N.A., (3%) Europe, +7% Rest Of World Tools & Outdoor $3,315 $3,285 • +1% PT, (7%) HTAS, +2% OPG
Slide 7: Investing For Growth Through Innovation
Investing For Growth Through Innovation Accelerating The DEWALT Product Roadmap To Serve Our Professional End Users 20V MAX* XR® 20V MAX* XR® TOUGHSYSTEM® Cordless Framing Nailer Plunge Router 2.0 DXLTM Workstation Revolutionizing The Jobsite And Driving End User Safety, Efficiency & Productivity *M
Slide 8: Strategic Transformation
Strategic Transformation On-Track For Expected $2.0 Billion Pre-Tax Run-Rate Cost Savings By End Of 2025… Progress Achieved Supply Chain Transformation Pre-Tax Run-Rate Cost Savings Strategic Sourcing Footprint Rationalization $145M $1.2B Complexity Reduction Ops Excellence 1Q’24 Quarter-To-Date Pro
Slide 9: Cash & Gross Margin Update
Cash & Gross Margin Update Profitability Improvements And Inventory Optimization To Drive Free Cash Flow* Generation In 2024… 1Q’24 In-Line With Expectations And Solid Start To Achieving 2024 Adjusted Gross Margin* Objective Reiterating 2024 Free Cash Flow* Target • 1Q’24 Free Cash Flow* Outflow Was
Slide 10: 2024 Guidance
2024 Guidance Reiterating EPS Guidance Range Of GAAP $1.60-$2.85 And Adjusted* $3.50-$4.50 | Free Cash Flow* $0.6B-$0.8B… 2024 Outlook Total Company Tools & Outdoor Industrial Organic Revenue* Organic: +/- Low Single Digits Organic: Flat To Low Single Digit Organic: +/- Low Single Digits And Adjuste
Slide 11: Stronger And More Focused Enterprise
Stronger And More Focused Enterprise Centered Around Our Core Market Leadership Positions And Built Upon The Strength Of Our People And Culture Unleashing End-User Empowering Brand Power Inspired Innovation People 1Q’24 Earnings Call | 11
Slide 12: Q&A
Q&A StanleyBlack&Decker For those who make the world.”
Slide 13: Free Cash Flow & Liquidity
Free Cash Flow* & Liquidity 1Q’24 Free Cash Flow* Liquidity Key Points • Maintain Investment Grade Credit Ratings 1Q'23 1Q'24 V$ $M • $4.0B In Credit Facilities Backed By A Well Capitalized, Diversified Net (Loss) Earnings $ (188) $ 20 $ 208 Bank Group • Long-Term Debt Maturity 1Q 2025 | Next Maturi
Slide 14: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Q1 2023 Q1 2024 GAAP Non-GAAP Non-GAAP Gross GAAP Non-GAAP Non-GAAP Gross Gross Profit Adjustments Profit Gross Profit Adjustments Profit $835.5 $908.9 $1,108.5 $1,122.9 $73.4 $14.4 21.2% 23.1% 28.6% 29.0% GAAP Non-GAAP Non-GAAP EPS Adjustments Adjusted EP
Slide 15: Reconciliation Of GAAP To Non-GAAP Segment Profit
Reconciliation Of GAAP To Non-GAAP Segment Profit Q1 2023 – YTD Q1 2024 - YTD Tools & Outdoor GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP Segment Profit Adjustments Segment Profit Segment Profit Adjustments Segment Profit $18.7 $79.2 $97.9 $255.7 $22.9 $278.6 0.6% 3.0% 7.8% 8.5% GAAP Non-GAAP Non-
Slide 16: Reconciliation Of GAAP To Non-GAAP Sales Growth (Decline)
Reconciliation Of GAAP To Non-GAAP Sales Growth (Decline) GAAP Non-GAAP Organic Stanley Black & Sales Growth Acquisitions Divestitures Currency Sales Growth Decker – YTD (Decline) (Decline) -2% 0% 0% -1% -1% GAAP Non-GAAP Organic Tools & Outdoor Sales Growth Acquisitions Divestitures Currency Sales
Slide 17: EBITDA Reconciliation
EBITDA Reconciliation 1Q’24 Earnings Call | 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Organic revenue or organic sales 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. Organic revenue growth, organic sales growth or organic
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