Slide 1: Quarterly Financial Review First Quarter 2020
Quarterly Financial Review First Quarter 2020 1 Q1-2020 Quarterly Review © 2020 Snap-on Incorporated
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT ▪ These slides should be read in conjunction with comments from the April 21, 2020 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the April 21, 2020 conference call and/or information included in this presentation may
Slide 3: Q1-2020 Quarterly Review © 2020 Snap-on Incorporated
3 Q1-2020 Quarterly Review © 2020 Snap-on Incorporated
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 2020 2019 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 852.2 $ 921.7 (7.5)% ➢ Organic sales (62.7) (6.9)% ➢ Acquisitions 3.5 0.4 % ➢ Currency translation (10.3) (1.0)% Gross profit $ 421.6 49.5 % $ 471.6 51.2 % Operating expenses 28
Slide 7: Commercial & Industrial – 1st Quarter
COMMERCIAL & INDUSTRIAL – 1ST QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 299.9 $ 322.5 (7.0)% ➢ Organic sales (18.0) (5.7)% ➢ Acquisitions 0.7 0.2 % ➢ Currency translation (5.3) (1.5)% Gross profit $ 110.5 $ 130.3 % of sales 36.8 % 40.4 % Operating expenses $ 79.0 $ 83.8 %
Slide 8: Snap-on Tools – 1st Quarter
SNAP-ON TOOLS – 1ST QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 375.9 $ 410.2 (8.4)% ➢ Organic sales (31.8) (7.8)% ➢ Currency translation (2.5) (0.6)% Gross profit $ 160.4 $ 183.1 % of sales 42.7 % 44.6 % Operating expenses $ 111.8 $ 115.9 % of sales 29.8 % 28.2 % Operating
Slide 9: Repair Systems & Information – 1st Quarter
REPAIR SYSTEMS & INFORMATION – 1ST QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 314.6 $ 327.9 (4.1)% ➢ Organic sales (12.9) (4.0)% ➢Acquisitions 2.8 0.9 % ➢Currency translation (3.2) (1.0)% Gross profit $ 150.7 $ 158.2 % of sales 47.9 % 48.2 % Operating expenses $ 73.4 $ 74.6
Slide 10: Financial Services – 1st Quarter
FINANCIAL SERVICES – 1ST QUARTER ($ in millions - unaudited) 2020 2019 Change Segment revenue $ 85.9 $ 85.6 0.4 % Operating earnings $ 56.9 $ 62.1 (8.4)% Originations $ 255.6 $ 252.5 1.2 % ▪ Originations increased $3.1 million or 1.2% ▪ Average yield on finance receivables of 17.7% compared to 17.8%
Slide 11: Financial Services Portfolio Data
FINANCIAL SERVICES PORTFOLIO DATA United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,505.8 $ 1,869.6 $ 179.6 $ 249.5 Portfolio net losses (TTM) $ 47.4 $ 50.2 $ 3.0 $ 4.1 60+ Delinquency: As of 3/31/20 1.7 % 1.4 % 0.8 % 1.0
Slide 12: Cash Flows
CASH FLOWS 1st Quarter ($ in millions - unaudited) 2020 2019 Net cash provided by operating activities $ 213.4 $ 201.3 ➢ Net earnings 142.0 182.1 ➢ Depreciation and amortization 23.8 22.6 ➢ Changes in deferred income taxes (3.6) 5.4 ➢ Changes in working investment 12.4 (16.6) ➢ Changes in accruals a
Slide 13: Balance Sheet
BALANCE SHEET March 28, December 28, ($ in millions - unaudited) 2020 2019 Trade & Other Accounts Receivable - net $ 635.2 $ 694.6 Days Sales Outstanding 62 67 Finance Receivables - net $ 1,616.2 $ 1,633.6 Contract Receivables - net $ 447.6 $ 460.8 Inventory - net $ 757.4 $ 760.4 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) 2020 2019 Charges associated with exit and disposal activities (“restructuring charges”) Pre-tax restructuring charges $ (7.5) $ - Income tax benefits 1.5 - Restructuring charges,
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 1st Quarter ($ in millions - unaudited) 2020 2019 Operating earnings before financial services As reported $ 138.9 $ 187.4 Restructuring charges 7.5 - Legal settlement - (11.6) As adjusted $ 146.4 $ 175.8 Operating earning
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 1st Quarter ($ in millions - unaudited) 2020 2019 Net earnings attributable to Snap-on Incorporated As reported $ 137.2 $ 177.9 Restructuring charges, after tax 6.0 - Legal settlement, after tax - (8.7) As adjusted $ 143.2
Slide 17: Q1-2020 Quarterly Review © 2020 Snap-on Incorporated
17 Q1-2020 Quarterly Review © 2020 Snap-on Incorporated