H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q1 2019 Earnings Presentation
18 slides from H. B. Fuller's earnings presentation, Mar 28, 2019
Slide 1: First Quarter 2019 Conference Call
First Quarter 2019 Conference Call Investor Presentation St. Paul, MN March 28, 2019
Slide 2: Safe Harbor & Regulation G
2 Safe Harbor & Regulation G Safe Harbor Statement Certain matters discussed today may include 'forward looking statements' as that term is defined under the Private Securities Litigation Reform Act of 1995. Since such statements reflect our current expectations, actual results may differ as they ar
Slide 3: Q1'19 Business Summary
3 Q1’19 Business Summary Q1’19 Highlights 2019 Imperatives • Q1’19 earnings on-track with guidance • Increase EBITDA by effectively managing product lines, pricing and • Pricing, strength in targeted growth operations markets and synergies offset FX and weather impacts on construction-related busine
Slide 4: Q1 2019 Segment Summary
4 Q1Better 2019 Segment Summary accountability Stronger teamwork Global vision EIMEA • Low single digit organic growth • New generation IG volume growth offset by market slowdown in core Durable Assembly, Paper & Polymer • Negative FX impact on EBITDA Americas Adhesives Asia Pacific • Modest organic
Slide 5: Q1 2019 Key Financial Results Summary
5 Q1 2019 Key Financial Results Summary • Net Revenue down 5.6% year-over-year; Organic revenue down 1% • Adjusted gross margin of 27% increased 90bps YOY • Adjusted SG&A lower by 2.5% YoY • Adjusted EPS of $0.34 vs. $0.35 in Q1’18 • Paid down $12M of debt, ahead of Q1’18 pace • Reaffirming FY’19 EB
Slide 6: Wrap-Up
6 Wrap-Up • Q1 operating performance leveraged synergies and 2018 pricing gains • Improved business resilience to dynamic external conditions • Winning customer business in highly engineered applications • Continued focus on organic revenue growth and margin improvement Q1 2019 Investor Presentation
Slide 7: H.B. Fuller
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Slide 8: Appendix
APPENDIX Q1 2019 Investor Presentation
Slide 9: Regulation G – EPS & EBITDA Reconciliation
9 Regulation G – EPS & EBITDA Reconciliation Three Months Ended March 2, 2019 March 3, 2018 Net income attributable to H.B. Fuller $ 12,244 $ 47,682 Adjustments: Acquisition project costs 84 375 Tonsan call option agreement - 125 Organizational realignment 350 748 Royal restructuring and integration
Slide 10: Regulation G – Q1 2019 Segment Information
10 Regulation G – Q1 2019 Segment Information Three Months Ended Three Months Ended March 2, 2019 March 3, 2018 Net Revenue: Americas Adhesives $ 241,950 $ 250,963 EIMEA 156,513 168,978 Asia Pacific 63,388 66,609 Construction Adhesives 82,456 98,257 Engineering Adhesives 128,628 128,272 Total H.B. F
Slide 11: Regulation G – Adjusted Income Reconciliation
11 Regulation G – Adjusted Income Reconciliation Three Months Ended March 2, 2019 March 3, 2018 Income before income taxes and income from equity method investments $ 13,823 $ 13,214 Adjustments: Acquisition project costs 115 559 Tonsan call option agreement - 125 Organizational realignment 475 410
Slide 12: Regulation G – Adjusted Income Tax Reconciliation
12 Regulation G – Adjusted Income Tax Reconciliation Three Months Ended March 2, 2019 March 3, 2018 Income Taxes $ (3,140) $ 32,632 Adjustments: Acquisition project costs (30) (184) Organizational realignment (124) 338 Royal restructuring and integration (1,552) (2,526) Tax reform (20) (35,186) Proj
Slide 13: Regulation G – Adjusted Gross Margin Reconciliation
13 Regulation G – Adjusted Gross Margin Reconciliation Three Months Ended March 2, 2019 March 3, 2018 Net revenue 672,935 713,079 Gross profit $ 179,925 $ 185,513 Gross profit margin 26.7% 26.0% Adjustments: Acquisition project costs - 103 Organizational realignment 48 231 Royal restructuring and in
Slide 14: Regulation G – Adjusted SG&A Reconciliation
14 Regulation G – Adjusted SG&A Reconciliation Three Months Ended March 2, 2019 March 3, 2018 Selling, general and administrative expenses $ (145,713) $ (152,707) Adjustments: Acquisition project costs 115 456 Tonsan call option agreement - 48 Organizational realignment 427 179 Royal restructuring a
Slide 15: Regulation G – Q1'19 Segment EBITDA Recon.
15 Regulation G – Q1’19 Segment EBITDA Recon. Americas Asia Construction Engineering Corporate H.B. Fuller Adhesives EIMEA Pacific Adhesives Adhesives Total Unallocated Consolidated Three Months Ended March 2, 2019 Net income attributable to H.B. Fuller $ 17,671 $ 4,081 $ 3,820 $ (2,653) $ 14,736 $
Slide 16: Regulation G – Q1'18 Segment EBITDA Recon.
16 Regulation G – Q1’18 Segment EBITDA Recon. Americas Asia Construction Engineering Corporate H.B. Fuller Adhesives EIMEA Pacific Adhesives Adhesives Total Unallocated Consolidated Three Months Ended March 3, 2018 Net income attributable to H.B. Fuller $ 16,399 $ 6,858 $ 2,343 $ 1,289 $ 9,796 $ 36,
Slide 17: Revenue Growth Components
17 Revenue Growth Components Three Months Ended March 2, 2019 Total Price 3.0% Volume (4.0%) Organic Growth (1.0%) F/X (4.6%) Total (5.6%) Three Months Ended March 2, 2019 Organic Net Revenue F/X Growth Americas Adhesives (3.6%) (3.8%) 0.2% EIMEA (7.4%) (8.1%) 0.7% Asia Pacific (4.8%) (4.8%) 0.0% Co
Slide 18: Investor contact
18 Investor contact: Vice President, Investor Relations H.B. Fuller Barbara Doyle (651) 236-5023 Q1 2019 Investor Presentation