Slide 1: Quarterly Financial Review Third Quarter 2019
Quarterly Financial Review Third Quarter 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT • These slides should be read in conjunction with comments from the October 17, 2019 conference call. The financial statement information included herein is unaudited. • Statements made during the October 17, 2019 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 – 3rd Quarter
CONSOLIDATED RESULTS – 3RD QUARTER 2019 2018 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 901.8 $ 898.1 0.4 % Organic sales 12.5 1.4 % Acquisitions 2.9 0.3 % Currency translation (11.7) (1.3)% Gross profit $ 448.1 49.7 % $ 453.9 50.5 % Operating expenses 280.4
Slide 7: Commercial & Industrial – 3rd Quarter
COMMERCIAL & INDUSTRIAL – 3RD QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 335.3 $ 330.2 1.5 % Organic sales 9.5 2.9 % Acquisitions 1.1 0.4 % Currency translation (5.5) (1.8)% Gross profit $ 127.0 $ 130.9 % of sales 37.9 % 39.6 % Operating expenses $ 78.7 $ 77.9 % of sa
Slide 8: Snap-on Tools – 3rd Quarter
SNAP-ON TOOLS – 3RD QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 385.2 $ 389.8 (1.2)% Organic sales (1.3) (0.3)% Currency translation (3.3) (0.9)% Gross profit $ 167.2 $ 169.8 % of sales 43.4 % 43.6 % Operating expenses $ 114.2 $ 110.5 % of sales 29.6 % 28.4 % Operating e
Slide 9: Repair Systems & Information – 3rd Quarter
REPAIR SYSTEMS & INFORMATION – 3RD QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 322.7 $ 314.4 2.6 % Organic sales 10.1 3.2 % Acquisitions 1.8 0.6 % Currency translation (3.6) (1.2)% Gross profit $ 153.9 $ 153.2 % of sales 47.7 % 48.7 % Operating expenses $ 70.6 $ 72.5 % o
Slide 10: Financial Services – 3rd Quarter
FINANCIAL SERVICES – 3RD QUARTER ($ in millions - unaudited) 2019 2018 Change Segment revenue $ 84.1 $ 82.0 2.6 % Operating earnings $ 61.0 $ 59.3 2.9 % Originations $ 253.5 $ 267.0 (5.1)% Originations decreased $13.5 million or 5.1% Average yield on finance receivables of 17.7% in both periods
Slide 11: Financial Services Portfolio Data
FINANCIAL SERVICES PORTFOLIO DATA United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,490.1 $ 1,848.2 $ 189.2 $ 266.4 Portfolio net losses (TTM) $ 46.9 $ 49.0 $ 3.0 $ 3.9 60+ Delinquency: As of 9/30/19 1.7 % 1.4 % 0.7 % 0.8
Slide 12: Cash Flows
CASH FLOWS 3rd Quarter September YTD ($ in millions - unaudited) 2019 2018 2019 2018 Net cash provided by operating activities $ 131.1 $ 129.8 $ 477.9 $ 548.6 Net earnings 169.2 167.4 536.2 516.9 Depreciation and amortization 22.9 23.2 68.5 71.2 Changes in deferred income taxes (1.7) (2.8) 10.
Slide 13: Balance Sheet
BALANCE SHEET September 28, December 29, ($ in millions - unaudited) 2019 2018 Trade & Other Accounts Receivable - net $ 684.8 $ 692.6 Days Sales Outstanding 66 67 Finance Receivables - net $ 1,618.2 $ 1,592.9 Contract Receivables - net $ 451.3 $ 443.2 Inventory - net $ 753.5 $ 673.8 Inventory turns
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 3rd Quarter September YTD ($ in millions, except per share data - unaudited) 2019 2018 2019 2018 Benefit related to the settlement of a litigation matter (“legal settlement”) Pre-tax legal settlement $ - $ - $ 11.6 $ - Income tax expense - -
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 3rd Quarter September YTD ($ 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 e
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 3rd Quarter September YTD ($ in millions - unaudited) 2019 2018 2019 2018 Operating earnings before financial services As reported $ 167.7 $ 173.1 $ 545.0 $ 543.9 Legal settlement - - (11.6) - As adjusted $ 167.7 $ 173.1 $
Slide 17: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 3rd Quarter September YTD ($ in millions - unaudited) 2019 2018 2019 2018 Net earnings attributable to Snap-on Incorporated As reported $ 164.6 $ 163.2 $ 522.9 $ 504.9 Legal settlement, after tax - - (8.7) - Net debt items