ROCKFORD, Mich., Feb. 17, 2015 /PRNewswire/ -- Wolverine Worldwide
(NYSE: WWW) today reported financial results for the fourth quarter
and fiscal year ended January 3,
2015. Adjusted financial results exclude restructuring,
acquisition-related integration and debt extinguishment costs.
"We had a strong close to the year, with nine of our 16 brands
generating double-digit revenue growth in the fourth quarter, and
our two largest brands, Merrell and Sperry, delivering mid
single-digit and high single-digit revenue growth, respectively,"
commented Blake W. Krueger,
Wolverine Worldwide's Chairman, Chief Executive Officer and
President. "I am equally pleased with our full-year
performance, which was highlighted by our fifth consecutive year of
record revenue, as well as record adjusted earnings. We
believe the strategic investments we are planning for our brands
position us to capitalize on the many opportunities we've
identified to accelerate our growth around the world."
FOURTH QUARTER 2014 REVIEW
- Consolidated revenue increased to a record $808.9 million, representing growth of 9.2%
versus prior year revenue of $740.8
million, with each of the Company's three brand operating
groups contributing to the quarter's revenue growth. On a
constant currency basis, revenue grew 10.1%.
- Gross margin was 37.1%, a decrease of 10 basis points versus
prior year reported gross margin and a decrease of 110 basis points
versus prior year adjusted gross margin. The gross margin
decline was driven primarily by a negative mix shift in
international markets, the impact of inventory liquidation related
to the Company's previously announced Strategic Realignment Plan
and incremental LIFO expense.
- Adjusted operating expenses were $247.1
million, an increase of 0.6% versus the prior year, and
included a solid double-digit increase in brand marketing
investment. As a percentage of revenue, adjusted operating
expenses were 30.5%, compared to 33.2% in the prior year. The
decrease as a percentage of revenue was driven primarily by the
strong revenue growth in the quarter and lower pension
expense. Reported operating expenses were $270.5 million, an increase of 5.1% versus the
prior year.
- Adjusted diluted earnings per share increased 36.4% to
$0.30, compared to an adjusted
$0.22 per share in the prior
year. Reported diluted earnings per share were $0.10, compared to a loss of $0.02 per share in the prior year.
- Operating free cash flow was a record $189.4 million, enabling the Company to reduce
interest-bearing debt by $195.7
million, including $175
million of voluntary principal payments, a portion of which
were funded by the Company's new accounts receivable financing
facility.
FULL YEAR 2014 REVIEW
- Consolidated revenue was a record $2.76
billion, representing growth of 2.6% versus prior year
revenue of $2.69 billion.
Foreign exchange had a minimal impact on full-year revenue
growth. High single-digit growth from the Heritage Group and
mid single-digit growth from the Performance Group were partially
offset by the expected low single-digit revenue decline from the
Lifestyle Group.
- Adjusted gross margin decreased 40 basis points to 39.4%.
Reported gross margin decreased 30 basis points to 39.3%.
- Adjusted operating expenses were $815.2
million, a decrease of 1.8% versus the prior year. As
a percentage of revenue, adjusted operating expenses declined 130
basis points to 29.5%, driven by lower pension and incentive
compensation expense. Reported operating expenses were
$856.4 million, a decrease of 1.8%
versus the prior year.
- Adjusted operating margin increased 90 basis points to
9.9%. Reported operating margin was 8.3%, an increase of 120
basis points versus the prior year.
- Adjusted diluted earnings per share increased 13.3% to
$1.62, compared to $1.43 per share in the prior year. Reported
diluted earnings per share were $1.30, compared to $0.99 per share in the prior year.
- Inventory decreased 3.3% versus the prior year.
- Operating free cash flow for the full year was a record
$279.8 million. The Company
ended the year with cash and cash equivalents of $223.8 million and net debt of $677.0 million, with the latter down $258.8 million versus the prior year.
"The Company delivered strong financial results in the fourth
quarter and fiscal 2014. We are extremely pleased that our
outstanding full-year operating cash flow enabled us to reduce our
net debt by over $250 million while
still investing behind our brands and maintaining our cash dividend
to shareholders," commented Don
Grimes, Senior Vice President and Chief Financial
Officer. "In what continues to be a volatile global
macroeconomic and retail environment, we delivered full-year
revenue growth across almost all geographic regions, which is a
testament to the broad acceptance of our brands by consumers around
the world. Double-digit revenue growth in Asia Pacific, high single-digit growth in EMEA
and mid single-digit growth in Latin
America - important regions for future growth across our
portfolio - were partially offset by flat revenue in the U.S. and a
low single-digit decline in Canada, with the latter significantly impacted
by foreign currency headwinds."
MULTI-YEAR INVESTMENT PLAN AND FISCAL 2015 GUIDANCE
In
order to capitalize on opportunities for accelerated growth around
the world, last month the Company announced plans to significantly
increase brand-building investments in fiscal 2015.
Specifically, the Company intends to increase its investments
behind consumer-demand creation, omnichannel initiatives and
international expansion - all focused on deepening connections with
consumers, elevating brand awareness and driving sustained growth
for the portfolio. The Company plans to incrementally invest
approximately $30 million in these
brand-building initiatives in fiscal 2015.
Given the global nature of the Company's operations, the
significantly stronger U.S. dollar versus the Canadian dollar, euro
and British pound is expected to have a meaningful negative impact
on reported fiscal 2015 results. Further, the continued
strengthening of the U.S. dollar since the beginning of this
calendar year is the primary driver of the Company's current
outlook for fiscal 2015, as detailed below.
For 2015, the Company now expects:
- Consolidated reported revenue in the range of $2.82 billion to $2.87 billion, representing
growth in the range of approximately 2% to 4% versus the prior
year, reflecting negative foreign exchange, the impact of retail
store closures associated with the Company's realignment plan and
the exit of the Patagonia Footwear license. Constant currency
revenue growth is expected in the range of approximately 5% to
7%.
- Adjusted operating margin to decline approximately 80 basis
points, driven primarily by the incremental brand-building
investments and higher pension expense, partially offset by modest
gross margin expansion. Reported operating margin is expected
to be approximately flat to the prior year.
- Modestly lower interest expense of approximately $40 million.
- A modestly higher effective tax rate of approximately
27.5%.
- Diluted weighted average shares outstanding of approximately
101 million.
- Adjusted diluted earnings per share in the range of
$1.53 to $1.60, reflecting the
incremental brand-building investments, higher pension expense and
the negative impact of foreign exchange. Constant currency
adjusted earnings per share is expected in the range of
$1.71 to $1.78. Reported
diluted earnings per share is expected in the range of $1.46 to $1.53.
"The significant incremental investments we are planning for
2015 - which we expect to benefit primarily fiscal 2016 and beyond
- represent the next step in achieving the Company's vision of
building the most admired family of performance and lifestyle
brands on earth," commented Mr. Krueger. "We believe 2015 is
the right time to make these investments and expect this, along
with our ongoing global expansion strategies, to position our
Company for accelerated growth and drive significant future
shareholder value."
EARNINGS CALL INFORMATION
The Company will host a
conference call today at 8:30 a.m. Eastern
Time to discuss these results and current business
trends. The conference call will be broadcast live and
accessible under the "Investor Relations" tab at
www.wolverineworldwide.com. A replay of the conference call
will be available at the Company's website for a period of
approximately 30 days.
ABOUT WOLVERINE WORLDWIDE
With a commitment to service
and product excellence, Wolverine World Wide, Inc. is one of the
world's leading marketers of branded casual, active lifestyle,
work, outdoor sport, athletic, children's and uniform footwear and
apparel. The Company's portfolio of highly recognized brands
includes: Merrell®, Sperry Top-Sider®, Hush
Puppies®, Saucony®, Wolverine®,
Keds®, Stride Rite®, Sebago®,
Cushe®, Chaco®, Bates®,
HYTEST®, and Soft Style®. The Company
also is the global footwear licensee of the popular brands
Cat® and Harley-Davidson®. The
Company's products are carried by leading retailers in the U.S. and
globally in approximately 200 countries and territories. For
additional information, please visit our website,
www.wolverineworldwide.com.
FORWARD LOOKING STATEMENTS
This press release contains
forward-looking statements, including statements regarding 2014
financial and operational performance, expected 2015 financial
performance, 2015 investment plans and benefits, future growth
plans, future growth in shareholder value, and effectiveness of the
Company's business model. In addition, words such as
"guidance," "estimates," "anticipates," "believes," "forecasts,"
"step," "plans," "predicts," "projects," "is likely," "expects,"
"intends," "should," "will," "confident," variations of such words,
and similar expressions are intended to identify forward-looking
statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties, and
assumptions ("Risk Factors") that are difficult to predict with
regard to timing, extent, likelihood, and degree of
occurrence. Risk Factors include, among others: the
Company's ability to continue to integrate and realize the benefits
of the PLG Acquisition on a timely basis or at all; the Company's
ability to successfully develop its brands and businesses; changes
in interest rates, tax laws, duty structures, tariffs, quotas, or
applicable assessments in countries of import and export including
anti-dumping measures and trade defense actions; changes in
consumer preferences, spending patterns, buying patterns, or price
sensitivity; changes in future pension funding requirements and
pension expenses; the ability to secure and protect owned
intellectual property or use licensed intellectual property;
cancellation of orders for future delivery, or the failure of the
Department of Defense to exercise future purchase options or award
new contracts, or the cancellation of existing contracts by the
Department of Defense or other military purchasers; changes in
planned customer demand, re-orders, or at-once orders; changes in
relationships with, including the loss of, significant customers;
the availability and pricing of footwear manufacturing capacity;
reliance on foreign sourcing; failure of international licensees
and distributors to meet sales goals or to make timely payments on
amounts owed; disruption of technology systems; regulatory or other
changes affecting the supply or price of materials used in
manufacturing; the impact of regulatory or legal proceedings and
legal compliance risks; the availability of power, labor, and
resources in key foreign sourcing countries, including China; the cost, availability, and management
of raw materials, inventories, services, and labor for owned and
contract manufacturers; the impact of competition and pricing; the
impact of changes in the value of foreign currencies; the
development of new initiatives; the risks of doing business in
developing countries and politically or economically volatile
areas; retail buying patterns; consolidation in the retail sector;
the shift in consumer shopping and buying patterns including the
increased shift to e-commerce and mobile platforms; changes in
economic and market conditions; acts and effects of war and
terrorism; seasonality and weather; problems affecting the
Company's distribution system, including service interruptions at
shipping and receiving ports; the failure to maintain the security
of personally identifiable and other information of customers,
stockholders, and employees; and additional factors discussed in
the Company's reports filed with the Securities and Exchange
Commission and exhibits thereto. The foregoing Risk Factors,
as well as other existing Risk Factors and new Risk Factors that
emerge from time to time, may cause actual results to differ
materially from those contained in any forward-looking statements.
Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. Furthermore, the Company undertakes no
obligation to update, amend, or clarify forward-looking
statements.
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions,
except per share data)
|
|
|
Quarter
Ended
|
|
Fiscal Year
Ended
|
|
January 3,
2015
|
|
December 28,
2013
|
|
January 3,
2015
|
|
December 28,
2013
|
Revenue
|
$
|
808.9
|
|
|
$
|
740.8
|
|
|
$
|
2,761.1
|
|
|
$
|
2,691.1
|
|
Cost of goods
sold
|
508.4
|
|
|
457.8
|
|
|
1,673.8
|
|
|
1,619.0
|
|
Restructuring
costs
|
0.4
|
|
|
7.6
|
|
|
1.0
|
|
|
7.6
|
|
Gross
profit
|
300.1
|
|
|
275.4
|
|
|
1,086.3
|
|
|
1,064.5
|
|
Gross
margin
|
37.1
|
%
|
|
37.2
|
%
|
|
39.3
|
%
|
|
39.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
247.1
|
|
|
245.7
|
|
|
815.2
|
|
|
830.0
|
|
Acquisition-related
integration costs
|
8.8
|
|
|
11.0
|
|
|
15.2
|
|
|
41.5
|
|
Restructuring
costs
|
14.6
|
|
|
0.7
|
|
|
26.0
|
|
|
0.7
|
|
Operating
expenses
|
270.5
|
|
|
257.4
|
|
|
856.4
|
|
|
872.2
|
|
Operating expenses
as a % of revenue
|
33.4
|
%
|
|
34.7
|
%
|
|
31.0
|
%
|
|
32.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
29.6
|
|
|
18.0
|
|
|
229.9
|
|
|
192.3
|
|
Operating
margin
|
3.7
|
%
|
|
2.4
|
%
|
|
8.3
|
%
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
14.0
|
|
|
14.7
|
|
|
45.4
|
|
|
52.0
|
|
Debt extinguishment
costs
|
1.3
|
|
|
13.1
|
|
|
1.3
|
|
|
13.1
|
|
Other expense
(income), net
|
1.2
|
|
|
(2.5)
|
|
|
1.7
|
|
|
(0.5)
|
|
|
16.5
|
|
|
25.3
|
|
|
48.4
|
|
|
64.6
|
|
Earnings (loss)
before income taxes
|
13.1
|
|
|
(7.3)
|
|
|
181.5
|
|
|
127.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
1.9
|
|
|
(6.0)
|
|
|
47.6
|
|
|
26.7
|
|
Effective tax
rate
|
14.5
|
%
|
|
81.4
|
%
|
|
26.2
|
%
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
11.2
|
|
|
(1.3)
|
|
|
133.9
|
|
|
101.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net earnings
attributable to noncontrolling interest
|
0.5
|
|
|
0.4
|
|
|
0.8
|
|
|
0.6
|
|
Net earnings (loss)
attributable to Wolverine World Wide, Inc.
|
$
|
10.7
|
|
|
$
|
(1.7)
|
|
|
$
|
133.1
|
|
|
$
|
100.4
|
|
Diluted earnings
(loss) per share
|
$
|
0.10
|
|
|
$
|
(0.02)
|
|
|
$
|
1.30
|
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
used to calculate diluted earnings per share
|
$
|
10.5
|
|
|
$
|
(1.7)
|
|
|
$
|
130.3
|
|
|
$
|
98.2
|
|
Shares used to
calculate earnings per share
|
100.3
|
|
|
97.3
|
|
|
100.1
|
|
|
98.9
|
|
Weighted average
shares outstanding
|
101.7
|
|
|
100.6
|
|
|
101.4
|
|
|
100.3
|
|
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED BALANCE SHEETS
(Unaudited)
(in
millions)
|
|
|
January 3,
2015
|
|
December 28,
2013
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
223.8
|
|
|
$
|
214.2
|
|
Accounts receivables,
net
|
312.7
|
|
|
398.1
|
|
Inventories,
net
|
414.0
|
|
|
428.2
|
|
Other current
assets
|
91.7
|
|
|
77.5
|
|
Total current
assets
|
1,042.2
|
|
|
1,118.0
|
|
Property, plant and
equipment, net
|
136.8
|
|
|
151.9
|
|
Goodwill and other
indefinite-lived intangibles
|
1,129.3
|
|
|
1,135.8
|
|
Other non-current
assets
|
196.2
|
|
|
216.5
|
|
Total
assets
|
$
|
2,504.5
|
|
|
$
|
2,622.2
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
|
294.0
|
|
|
$
|
276.0
|
|
Current maturities of
long-term debt
|
46.7
|
|
|
53.3
|
|
Total current
liabilities
|
340.7
|
|
|
329.3
|
|
Long-term
debt
|
854.1
|
|
|
1,096.7
|
|
Other non-current
liabilities
|
371.7
|
|
|
354.8
|
|
Stockholders'
equity
|
938.0
|
|
|
841.4
|
|
Total liabilities and
stockholders' equity
|
$
|
2,504.5
|
|
|
$
|
2,622.2
|
|
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(in
millions)
|
|
|
Fiscal Year
Ended
|
|
January 3,
2015
|
|
December 28,
2013
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
Net
earnings
|
$
|
133.9
|
|
|
$
|
101.0
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
53.3
|
|
|
56.2
|
|
Deferred income
taxes
|
(19.1)
|
|
|
(27.8)
|
|
Stock-based
compensation expense
|
25.1
|
|
|
28.2
|
|
Excess tax benefits
from stock-based compensation
|
(5.6)
|
|
|
(3.4)
|
|
Pension
expense
|
11.9
|
|
|
37.3
|
|
Debt extinguishment
costs
|
1.3
|
|
|
13.1
|
|
Restructuring
costs
|
27.0
|
|
|
8.3
|
|
Other
|
(0.1)
|
|
|
(8.1)
|
|
Changes in operating
assets and liabilities
|
86.9
|
|
|
(2.5)
|
|
Net cash provided by
operating activities
|
314.6
|
|
|
202.3
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
Additions to
property, plant and equipment
|
(30.0)
|
|
|
(41.7)
|
|
Investment in joint
ventures
|
(1.1)
|
|
|
(2.5)
|
|
Other
|
(3.7)
|
|
|
(0.5)
|
|
Net cash used in
investing activities
|
(34.8)
|
|
|
(44.7)
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
Borrowings of
long-term debt
|
—
|
|
|
775.0
|
|
Payments of long-term
debt
|
(249.8)
|
|
|
(875.0)
|
|
Payments of debt
issuance costs
|
—
|
|
|
(2.3)
|
|
Cash dividends
paid
|
(24.0)
|
|
|
(23.7)
|
|
Purchases of shares
under employee stock plans
|
(10.5)
|
|
|
(0.8)
|
|
Proceeds from the
exercise of stock options
|
7.3
|
|
|
8.6
|
|
Excess tax benefits
from stock-based compensation
|
5.6
|
|
|
3.4
|
|
Contributions from
noncontrolling interest
|
1.0
|
|
|
2.0
|
|
Net cash used in
financing activities
|
(270.4)
|
|
|
(112.8)
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
0.2
|
|
|
(2.0)
|
|
Increase in cash and
cash equivalents
|
9.6
|
|
|
42.8
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the year
|
214.2
|
|
|
171.4
|
|
Cash and cash
equivalents at end of the year
|
$
|
223.8
|
|
|
$
|
214.2
|
|
REPORTED REVENUE
BY OPERATING GROUP
(Unaudited)
(in
millions)
|
|
|
Quarter
Ended
|
|
January 3,
2015
|
|
December 28,
2013
|
|
Change
|
|
Revenue
|
|
% of
Total
|
|
Revenue
|
|
% of Total
|
|
$
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lifestyle
Group
|
$
|
279.3
|
|
|
34.5
|
%
|
|
$
|
265.3
|
|
|
35.8
|
%
|
|
$
|
14.0
|
|
|
5.3
|
%
|
Performance
Group
|
273.6
|
|
|
33.8
|
%
|
|
251.3
|
|
|
33.9
|
%
|
|
22.3
|
|
|
8.9
|
%
|
Heritage
Group
|
221.5
|
|
|
27.4
|
%
|
|
193.7
|
|
|
26.1
|
%
|
|
27.8
|
|
|
14.4
|
%
|
Other
|
34.5
|
|
|
4.3
|
%
|
|
30.5
|
|
|
4.2
|
%
|
|
4.0
|
|
|
13.1
|
%
|
Total
|
$
|
808.9
|
|
|
100.0
|
%
|
|
$
|
740.8
|
|
|
100.0
|
%
|
|
$
|
68.1
|
|
|
9.2
|
%
|
The following tables contain information regarding the non-GAAP
adjustments used by the Company in the presentation of its
financial results:
WOLVERINE WORLD
WIDE, INC.
RECONCILIATION OF
FISCAL 2014 Q4 REPORTED REVENUE TO
REVENUE ON A
CONSTANT CURRENCY BASIS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Fiscal 2014 Q4
|
|
Foreign
Exchange
Impact
|
|
Fiscal 2014 Q4
Constant Currency
Basis
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
808.9
|
|
|
$
|
6.5
|
|
|
$
|
815.4
|
|
RECONCILIATION OF
FISCAL 2013 Q4 REPORTED GROSS PROFIT TO
GROSS PROFIT
ADJUSTED TO EXCLUDE RESTRUCTURING COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Fiscal 2013 Q4
|
|
Restructuring
Costs
|
|
As Adjusted
Fiscal 2013 Q4
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
275.4
|
|
|
$
|
7.6
|
|
|
$
|
283.0
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
37.2
|
%
|
|
|
|
|
38.2
|
%
|
RECONCILIATION OF
FISCAL 2014 Q4 REPORTED OPERATING EXPENSES TO
OPERATING EXPENSES
ADJUSTED TO EXCLUDE ACQUISITION-RELATED
INTEGRATION AND
RESTRUCTURING COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Fiscal 2014 Q4
|
|
Acquisition-Related
Integration and Restructuring Costs
|
|
As Adjusted
Fiscal 2014 Q4
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
270.5
|
|
|
$
|
(23.4)
|
|
|
$
|
247.1
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
as a % of revenue
|
33.4
|
%
|
|
|
|
|
30.5
|
%
|
RECONCILIATION OF
FISCAL 2013 Q4 REPORTED OPERATING EXPENSES TO
OPERATING EXPENSES
ADJUSTED TO EXCLUDE ACQUISITION-RELATED
INTEGRATION AND
RESTRUCTURING COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Fiscal 2013 Q4
|
|
Acquisition-Related
Integration and Restructuring Costs
|
|
As Adjusted
Fiscal 2013 Q4
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
257.4
|
|
|
$
|
(11.7)
|
|
|
$
|
245.7
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
as a % of revenue
|
34.7
|
%
|
|
|
|
|
33.2
|
%
|
RECONCILIATION OF
FISCAL 2014 Q4 REPORTED DILUTED EPS TO DILUTED EPS
ADJUSTED
TO EXCLUDE
ACQUISITION-RELATED INTEGRATION, RESTRUCTURING AND
DEBT
EXTINGUISHMENT COSTS*
(Unaudited)
|
|
|
GAAP Basis
Fiscal 2014 Q4
|
|
Acquisition-Related
Integration, Restructuring and
Debt Extinguishment Costs
|
|
As Adjusted
Fiscal 2014 Q4
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.10
|
|
|
$
|
0.20
|
|
|
$
|
0.30
|
|
RECONCILIATION OF
FISCAL 2013 Q4 REPORTED DILUTED EPS TO DILUTED EPS
ADJUSTED
TO EXCLUDE
ACQUISITION-RELATED INTEGRATION, RESTRUCTURING AND DEBT
EXTINGUISHMENT COSTS*
(Unaudited)
|
|
|
GAAP Basis
Fiscal 2013 Q4
|
|
Acquisition-Related
Integration, Restructuring and
Debt Extinguishment Costs
|
|
As Adjusted
Fiscal 2013 Q4
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
(0.02)
|
|
|
$
|
0.24
|
|
|
$
|
0.22
|
|
COMPONENTS OF
OPERATING FREE CASH FLOW*
(Unaudited)
(in
millions)
|
|
|
Quarter Ended
January 3, 2015
|
|
Fiscal Year
Ended
January 3,
2015
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
199.9
|
|
|
$
|
314.6
|
|
Net cash used in
investing activities
|
(10.5)
|
|
|
(34.8)
|
|
Operating free cash
flow
|
$
|
189.4
|
|
|
$
|
279.8
|
|
RECONCILIATION OF
FISCAL 2014 FULL-YEAR REPORTED GROSS PROFIT TO
GROSS PROFIT
ADJUSTED TO EXCLUDE RESTRUCTURING COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP
Basis
Full-Year
2014
|
|
Restructuring
Costs
|
|
As Adjusted
Full-Year 2014
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
1,086.3
|
|
|
$
|
1.0
|
|
|
$
|
1,087.3
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
39.3
|
%
|
|
|
|
|
39.4
|
%
|
RECONCILIATION OF
FISCAL 2013 FULL-YEAR REPORTED GROSS PROFIT TO
GROSS PROFIT
ADJUSTED TO EXCLUDE RESTRUCTURING COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP
Basis
Full-Year
2013
|
|
Restructuring
Costs
|
|
As Adjusted
Full-Year 2013
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
1,064.5
|
|
|
$
|
7.6
|
|
|
$
|
1,072.1
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
39.6
|
%
|
|
|
|
|
39.8
|
%
|
RECONCILIATION OF
FISCAL 2014 FULL-YEAR REPORTED OPERATING EXPENSES TO
OPERATING EXPENSES
ADJUSTED TO EXCLUDE ACQUISITION-RELATED
INTEGRATION AND
RESTRUCTURING COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Full-Year 2014
|
|
Acquisition-Related
Integration and Restructuring Costs
|
|
As Adjusted
Full-Year 2014
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
856.4
|
|
|
$
|
(41.2)
|
|
|
$
|
815.2
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
as a % of revenue
|
31.0
|
%
|
|
|
|
|
29.5
|
%
|
RECONCILIATION OF
FISCAL 2013 FULL-YEAR REPORTED OPERATING EXPENSES TO
OPERATING EXPENSES
ADJUSTED TO EXCLUDE ACQUISITION-RELATED
INTEGRATION AND
RESTRUCTURING COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Full-Year 2013
|
|
Acquisition-Related
Integration and Restructuring Costs
|
|
As Adjusted
Full-Year 2013
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
872.2
|
|
|
$
|
(42.2)
|
|
|
$
|
830.0
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
as a % of revenue
|
32.4
|
%
|
|
|
|
|
30.8
|
%
|
RECONCILIATION OF
FISCAL FULL-YEAR 2014 REPORTED OPERATING
PROFIT TO
OPERATING PROFIT ADJUSTED TO EXCLUDE
ACQUISITION-RELATED INTEGRATION AND RESTRUCTURING
COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Full-Year 2014
|
|
Acquisition-Related
Integration and
Restructuring Costs
|
|
As Adjusted
Full-Year 2014
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
229.9
|
|
|
$
|
42.2
|
|
|
$
|
272.1
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
8.3
|
%
|
|
|
|
|
9.9
|
%
|
RECONCILIATION OF
FISCAL FULL-YEAR 2013 REPORTED OPERATING
PROFIT TO
OPERATING PROFIT ADJUSTED TO EXCLUDE
ACQUISITION-RELATED INTEGRATION AND RESTRUCTURING
COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP Basis
Full-Year 2013
|
|
Acquisition-Related
Integration and
Restructuring Costs
|
|
As Adjusted
Full-Year 2013
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
192.3
|
|
|
$
|
49.8
|
|
|
$
|
242.1
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
7.1
|
%
|
|
|
|
|
9.0
|
%
|
RECONCILIATION OF
FISCAL 2014 FULL-YEAR REPORTED DILUTED EPS
TO DILUTED EPS
ADJUSTED TO EXCLUDE ACQUISITION-RELATED INTEGRATION, RESTRUCTURING
AND DEBT EXTINGUISHMENT COSTS*
(Unaudited)
|
|
|
GAAP
Basis
Full-Year
2014
|
|
Acquisition-Related
Integration,
Restructuring and Debt Extinguishment Costs
|
|
As
Adjusted
Full-Year
2014
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
1.30
|
|
|
$
|
0.32
|
|
|
$
|
1.62
|
|
RECONCILIATION OF
FISCAL 2013 FULL-YEAR REPORTED DILUTED EPS
TO DILUTED EPS
ADJUSTED TO EXCLUDE ACQUISITION-RELATED INTEGRATION, RESTRUCTURING
AND DEBT EXTINGUISHMENT COSTS*
(Unaudited)
|
|
|
GAAP
Basis
Full-Year
2013
|
|
Acquisition-Related Integration, Restructuring and
Debt Extinguishment Costs
|
|
As
Adjusted
Full-Year
2013
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.99
|
|
|
$
|
0.44
|
|
|
$
|
1.43
|
|
RECONCILIATION OF
REPORTED DEBT TO NET DEBT*
(Unaudited)
(in
millions)
|
|
|
Fiscal 2014
Q4
|
|
Fiscal 2013
Q4
|
|
|
|
|
|
|
GAAP reported
debt
|
$
|
900.8
|
|
|
$
|
1,150.0
|
|
Cash and cash
equivalents
|
(223.8)
|
|
|
(214.2)
|
|
Net debt
|
$
|
677.0
|
|
|
$
|
935.8
|
|
RECONCILIATION OF
FISCAL 2015 FULL-YEAR REPORTED REVENUE GUIDANCE
TO ADJUSTED
REVENUE ON A CONSTANT CURRENCY BASIS*
(Unaudited)
(in
millions)
|
|
|
GAAP
Basis
Full-Year 2015
Guidance
|
|
Foreign Exchange
Impact
|
|
As
Adjusted
Full-Year 2015
Guidance Constant Currency Basis
|
|
|
|
|
|
|
|
Revenue
|
$
2,820 - 2,870
|
|
$
|
70.0
|
|
|
$
2,890 - 2,940
|
Percentage
growth
|
2.1 -
3.9%
|
|
|
|
|
4.7 -
6.5%
|
RECONCILIATION OF
FISCAL FULL-YEAR 2015 OPERATING MARGIN GUIDANCE
TO ADJUSTED
OPERATING MARGIN ADJUSTED TO EXCLUDE
ACQUISITION-RELATED INTEGRATION AND RESTRUCTURING
COSTS*
(Unaudited)
(in
millions)
|
|
|
GAAP
Basis
Full-Year 2015
Guidance
|
|
Acquisition-Related
Integration and Restructuring Costs
|
|
As
Adjusted
Full-Year 2015
Guidance
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
8.3
|
%
|
|
0.8
|
%
|
|
9.1
|
%
|
RECONCILIATION OF
FISCAL 2015 FULL-YEAR REPORTED DILUTED EPS GUIDANCE
TO DILUTED EPS
ADJUSTED TO EXCLUDE RESTRUCTURING COSTS*
(Unaudited)
|
|
|
GAAP
Basis
Full-Year 2015
Guidance
|
|
Restructuring
Costs
|
|
As
Adjusted
Full-Year 2015
Guidance
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$ 1.46
- 1.53
|
|
$
|
0.07
|
|
|
$ 1.53
- 1.60
|
RECONCILIATION OF
FISCAL 2015 FULL-YEAR ADJUSTED DILUTED EPS GUIDANCE
TO ADJUSTED
DILUTED EPS ON A CONSTANT CURRENCY BASIS*
(Unaudited)
|
|
|
As
Adjusted
Full-Year 2015
Guidance
|
|
Foreign Exchange
Impact
|
|
As
Adjusted
Full-Year 2015
Guidance Constant Currency Basis
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$ 1.53
- 1.60
|
|
$
|
0.18
|
|
|
$ 1.71
- 1.78
|
*
|
To supplement the
consolidated financial statements presented in accordance with
Generally Accepted Accounting Principles ("GAAP"), the Company
describes what certain financial measures would have been if
acquisition-related integration costs, debt extinguishment costs
and restructuring costs were excluded. The Company believes
these non-GAAP measures provide useful information to both
management and investors to increase comparability to the prior
period by adjusting for certain items that may not be indicative of
core operating measures and to better identify trends in our
business. The adjusted financial results are used by
management to, and allow investors to, evaluate the operating
performance of the Company on a comparable basis. In
addition, the Company presents operating free cash flow and net
debt as non-GAAP financial measures. The Company has defined
operating free cash flow as cash provided by operating activities
less cash used in investing activities. The Company views
operating free cash flow as a measure of the Company's after-tax
cash flow available to reduce debt, add to cash balances, pay
dividends, repurchase stock, and fund other financing
activities. The Company has defined net debt as debt less
cash and cash equivalents. The Company believes that netting
these sources of cash against debt provides a clearer picture of
the future demands on cash to repay debt. The Company
evaluates results of operations on both a reported and a constant
currency basis. The constant currency presentation, which is a
non-GAAP measure, excludes the impact of fluctuations in foreign
currency exchange rates. The Company believes providing constant
currency information provides valuable supplemental information
regarding results of operations, consistent with how the Company
evaluates performance. The Company calculates constant currency
basis by converting the current-period local currency financial
results using the prior period exchange rates and comparing these
adjusted amounts to our current period reported results. Management
does not, nor should investors, consider such non-GAAP financial
measures in isolation from, or as a substitution for, financial
information prepared in accordance with GAAP. A
reconciliation of all non-GAAP measures included in this press
release, to the most directly comparable GAAP measures, are found
in the financial tables above.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wolverine-worldwide-reports-record-fiscal-2014-financial-results-and-provides-guidance-for-fiscal-2015-300036853.html
SOURCE Wolverine Worldwide