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Church & Dwight Reports Q1 2023 Results

Business Wire - Thu Apr 27, 2023

Church & Dwight Co., Inc. (NYSE: CHD) today announced the Company exceeded its outlook with double digit sales growth and 90 basis points of gross margin expansion. In the first quarter net sales grew 10.2% to $1,429.8 million. The Company continues to experience strong consumer demand for many of its products. Organic sales grew 5.7% driven by positive product mix and pricing of 5.7% while volume was flat to last year.

First quarter 2023 Reported EPS was $0.82; a decrease of 1.2% compared to 2022 Reported EPS. First quarter Adjusted EPS was $0.85; an increase of 2.4% versus prior year EPS.First quarter Adjusted EPS exceeded the Company’s outlook of $0.75 driven by higher sales and higher than expected gross margins.

Matthew Farrell, Chief Executive Officer, commented, “Our Q1 results reflect the strength of our brands and our focus on execution. Consumer demand and improved case fill is resulting in strong revenue growth. Volume being flat in Q1 is an encouraging sign after declining volumes in the last six quarters. We expect volume to be positive for the full year 2023 and show positive trends in the second half of the year. Our recent acquisitions, THERABREATH® mouthwash and HERO®, the maker of Mighty Patch acne care products, both experienced double-digit consumption growth and market share gains. Both of these businesses are rapidly gaining new distribution at retail. Distribution of THERABREATH has doubled since we acquired the brand in December 2021 while consumer and retailer enthusiasm for the HERO brand has exceeded expectations.

“Our domestic brands grew consumption in 12 of 17 categories in which we compete. The trade down to value laundry detergent continued as ARM & HAMMER® liquid detergent experienced strong consumption growth and share gains in Q1. ARM & HAMMER liquid detergent and ARM & HAMMER Unit Dose both grew volume, consistent with the prior quarter. ARM & HAMMER litter consumption grew double digits and outpaced the category. The Domestic business gained market share in 8 of our 14 power brands. Market share gains are expected to continue as we progress through 2023 and increase our marketing spending as a percent of sales. Global online sales as a percentage of total sales were 16.3% in Q1.

“Organic revenue growth for the International division was double digit driven by our country subsidiaries and better than expected sales growth in the Global Markets Group.

“Gross margin in the quarter expanded ahead of our expectations as productivity and pricing offset inflation and our margin accretive HERO acquisition grew faster than expected. Throughout the year, we expect sequential improvement in gross margin. Gross margin is expected to be positively impacted by the February round of litter pricing to cover cost increases as well as a second round of laundry concentration which was executed at the end of Q1. Strong sales growth, margin expansion and working capital management were all key drivers of our strong cash flow generation in the first quarter."

First Quarter Review

Consumer Domestic net sales were $1,116.9 million, a $121.8 million or 12.2% increase versus prior year driven by both household and personal care sales growth. Organic sales increased 5.5% due to price and product mix (+6.4%), offset by volume (-0.9%). Growth was led by ARM & HAMMER™ Liquid Detergent, ARM & HAMMER™ Cat Litter, THERABREATH mouthwash and XTRAliquid detergent, partially offset by expected declines in the Vitamin business, FLAWLESS™ and WATERPIK.

Consumer International net sales were $230.6 million, a $16.0 million or 7.5% increase versus prior year. Foreign currency exchange rates negatively impacted sales by (-4.1%). Organic sales increased 11.6% due to higher volume (+6.8%) and higher pricing/mix (+4.8%). Q1 organic sales were primarily driven by BATISTE™, Vitamins and FEMFRESH™.

Specialty Products net sales were $82.3 million, a $5.2 million or 5.9% decrease versus prior year. Organic sales also decreased 5.9% due to lower volume (-7.5%) in the dairy business as low-priced imports returned to the US market.

Gross margin increased 90 basis points to 43.5% due to improved pricing, productivity, and the impact of the Hero acquisition, net of the impact of higher manufacturing costs.

Marketing expense was $122.3 million, which was $20.4 million higher vs prior year. Marketing expense as a percentage of net sales increased 70 basis points to 8.6%.

Selling, general, and administrative expense (SG&A) was $207.8 million, including charges related to restricted stock that was issued for the HERO acquisition of $7.3 million. Adjusted SG&A was $200.51million or 14.0% of net sales, a 90 basis points increase, primarily due to a permanent change to the timing of annual equity grants which aligns to prevailing industry practice.

Income from Operations was $291.9 million. Adjusted Income from Operations was $299.2 million1 or 20.9% of net sales, down 70 basis points vs prior year.

Other Expense of $23.1 million increased $8.6 million primarily due to higher interest expense resulting from higher interest rates.

The effective tax rate increased to 24.4% compared to 23.2% in 2022. The increase is driven by lower tax benefit from stock option exercises.

Operating Cash Flow

For Q1 2023, cash from operating activities was $273.1 million, an increase of $120.3 million due to higher cash earnings and improvements in working capital. We now expect full year cash flow from operations to be approximately $950 million (previously $925 million). Capital expenditures for Q1 were $25.0 million, a $9.4 million increase from the prior year as capacity expansion projects proceed.

On March 31, 2023, cash on hand was $202.8 million, while total debt was $2.4 billion.

2023 New Products

Mr. Farrell commented, “Product innovation continues to be a big driver of our success and we are excited about our new product launches in 2023. In these uncertain and inflationary times, we continue to differentiate our brands to consumers via innovative products, packaging, and forms.

ARM & HAMMER Litter achieved record share in 2022. To maintain the momentum, we are launching ARM & HAMMER Hardball™, a transformational plant-based substrate that is lightweight and creates virtually indestructible clumps for no-mess scooping. Over time we expect this new litter will enable the Company to capture a greater share of the lightweight litter category.

TROJAN® is building on the success of the Raw™ franchise by offering the new TROJAN Raw Non-Latex condom which is America’s Thinnest Condom. The Raw innovation platform has been a driving force to improving TROJAN share.

The THERABREATH brand, the fastest-growing brand in the mouthwash category, is expanding into the kids segment with the launch of 3 new fluoride mouthwashes. These products are dentist-formulated, free of dyes, and have certified organic flavor.

NAIR® is launching Prep & Smooth, a one-step solution that preps the face for makeup application in a No-Touch, No-Mess format.

HERO continues to innovate in the acne treatment category. Building on the success of its MIGHTY PATCH® products, HERO is launching MICROPOINT FOR BLEMISHES® XL patches. The HERO Rescue skin care line will also be expanding with the launch of Rescue Retinol Nighttime Renewing Cream. These new products help to provide gentle and effective solutions for issue-prone skin.

BATISTE, a leader in the dry shampoo category, is launching Overnight and Texturizing dry shampoos. Both products are designed to tap into new usage occasions.”

Outlook for 2023

Mr. Farrell stated, “We expect the sales and earnings momentum from Q1 to continue throughout 2023 driven by strong demand for our products. Accordingly, the Company is raising the full year outlook for Sales, EPS, Gross Margin and Cash Flow. This outlook reflects strong operating fundamentals as operating profit is expected to increase 6-8% (previously 4-8%).

We now expect full year 2023 reported sales growth to be approximately 6-7% (previously 5-7%) and organic sales growth to be approximately 3-4% (previously 2-4%).

Mr. Farrell continued, “We now expect full year reported gross margin to expand approximately 120 basis points versus 2022, as we expect pricing and productivity to more than offset inflation. Gross margin is expected to benefit from pricing, pack size changes, laundry concentration and the full year impact of the higher margin HERO business. We continue to see commodity inflation stabilizing and a year over year reduction of transportation costs. For the full year, our inflation expectations are unchanged.

“As previously communicated, we intend to increase marketing as a percentage of net sales to 10.5% (10% in 2022). We continue to expect SG&A both in dollars and as a percent of net sales to increase compared to 2022 as the company’s incentive compensation plan returns to normal levels in 2023. We continue to expect our tax rate to increase to approximately 23% (210 basis point increase), and higher interest expense to be a drag to Adjusted EPS.

“Other expense for 2023 is expected to be approximately $110 million reflecting an increase in interest expense due to higher rates as well as debt related to the recent acquisition of HERO.

“We now expect Adjusted EPS to be 2-4% (previously 0-4%). Given the strength of the business, we see opportunities to make incremental investments in our brands and capabilities in future quarters.

“Cash flow from operations is now expected to be approximately $950 million (previously $925 million), an increase of 7.3% compared to 2022. We continue to expect 2023 capital expenditures of approximately $250 million as we make capacity investments. We expect annual Capex spending to return to historical levels (2% of sales) by 2025. We continue to pursue accretive acquisitions that meet our strict criteria, with an emphasis on fast-moving consumable products, similar to our last 3 acquisitions (ZICAM, THERABREATH, and HERO).

“For Q2, we expect reported sales growth of approximately 7%, organic sales growth of approximately 3%¹, gross margin expansion and higher marketing spending. As a result, we expect Adjusted EPS of $0.781 per share, a 2.6% increase from last year’s Adjusted Q2 EPS.¹ Reported EPS is expected to be $0.75.”

1 Organic Sales, Adjusted SG&A, Adjusted Income from Operations and Adjusted EPS are non-GAAP measures. See Non-GAAP reconciliations included at the end of this release.

Church & Dwight Co., Inc. (NYSE: CHD) will host a conference call to discuss first quarter 2023 results on April 27, 2023, at 10:00 a.m. (ET). The presentation will broadcast online at investor.churchdwight.com/investors/news-events.

Church & Dwight Co., Inc. (NYSE: CHD) founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal care, household, and specialty products under recognized brand names such as ARM & HAMMER®, TROJAN®, OXICLEAN®, SPINBRUSH®, FIRST RESPONSE®, NAIR®, ORAJEL®, XTRA®, L’IL CRITTERS® and VITAFUSION®, BATISTE®, WATERPIK®, ZICAM®, THERABREATH® and HERO®. These fourteen key brands represent approximately 85% of the Company’s products sales. For more information, visit the Company’s website.

Church & Dwight has a strong heritage of commitment to people and the planet. In the early 1900’s, we began using recycled paperboard for all packaging of household products. Today, virtually all our paperboard packaging is from certified, sustainable sources. In 1970, the ARM & HAMMER brand introduced the first nationally distributed, phosphate-free detergent. That same year, Church & Dwight was honored to be the sole corporate sponsor of the first annual Earth Day. In 2022 our continued progress earned public recognition, including the Newsweek Magazine’s Americas Most Responsible Companies list, the EPA’s Green Power Partnership-Top 100 list, the 2022/2023 Forbes Magazine: Americas Best Midsize Employer Award and the FTSE4Good Index Series, amongst others.

For more information, see the Church & Dwight 2022 Sustainability Report at: https://churchdwight.com/responsibility/

This press release contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; the impact of the COVID-19 pandemic and the Company’s response; gross margin changes; trade, marketing, and SG&A spending; recessionary conditions; interest rates; inflation; sufficiency of cash flows from operations; earnings per share; cost savings programs; consumer demand and spending; the effects of competition; the effect of product mix; volume growth, including the effects of new product launches into new and existing categories; the impact of acquisitions (including earn-outs); and capital expenditures. Other forward-looking statements in this release may be identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. These statements represent the intentions, plans, expectations and beliefs of the Company, and are based on assumptions that the Company believes are reasonable but may prove to be incorrect. In addition, these statements are subject to risks, uncertainties and other factors, many of which are outside the Company’s control and could cause actual results to differ materially from such forward-looking statements. Factors that could cause such differences include a decline in market growth, retailer distribution and consumer demand (as a result of, among other things, political, economic and marketplace conditions and events), including those relating to the outbreak of contagious diseases; other impacts of the COVID-19 pandemic and its impact on the Company’s operations, customers, suppliers, employees, and other constituents, and market volatility and impact on the economy (including contributions to recessionary conditions), resulting from global, nationwide or local or regional outbreaks or increases in infections, new variants, and the risk that the Company will not be able to successfully execute its response plans with respect to the pandemic or localized outbreaks and the corresponding uncertainty; the impact of regulatory changes or policies associated with the COVID-19 pandemic, including continuing or renewed shutdowns of retail and other businesses in various jurisdictions; the impact of new legislation such as the U.S. CARES Act, the EU Medical Device Regulation, new cosmetic and device regulations in Mexico, and the U.S. Modernization of Cosmetic Regulation Act; the impact on the global economy of the Russia/Ukraine war, including the impact of export controls and other economic sanctions; potential recessionary conditions or economic uncertainty; the impact of continued shifts in consumer behavior, including accelerating shifts to on-line shopping; unanticipated increases in raw material and energy prices, including as a result of the Russia/Ukraine war or other inflationary pressures; delays and increased costs in manufacturing and distribution; increases in transportation costs; labor shortages; the impact of price increases for our products; the impact of inflationary conditions; the impact of supply chain and labor disruptions; the impact of severe or inclement weather on raw material and transportation costs; adverse developments affecting the financial condition of major customers and suppliers; competition; changes in marketing and promotional spending; growth or declines in various product categories and the impact of customer actions in response to changes in consumer demand and the economy, including increasing shelf space or on-line share of private label and retailer-branded products or other changes in the retail environment; consumer and competitor reaction to, and customer acceptance of, new product introductions and features; the Company’s ability to maintain product quality and characteristics at a level acceptable to our customers and consumers; disruptions in the banking system and financial markets; the Company’s borrowing capacity and ability to finance its operations and potential acquisitions; higher interest rates; foreign currency exchange rate fluctuations; implications of the United Kingdom’s withdrawal from the European Union; transition to, and shifting economic policies in the United States; potential changes in export/import and trade laws, regulations and policies of the United States and other countries, including any increased trade restrictions or tariffs; increased or changing regulation regarding the Company’s products and its suppliers in the United States and other countries where it or its suppliers operate; market volatility; issues relating to the Company’s information technology and controls; the impact of natural disasters, including those related to climate change, on the Company and its customers and suppliers, including third party information technology service providers; integrations of acquisitions or divestiture of assets; the outcome of contingencies, including litigation, pending regulatory proceedings and environmental matters; and changes in the regulatory environment in the countries where we do business.

For a description of additional factors that could cause actual results to differ materially from the forward-looking statements, please see Item 1A, “Risk Factors” in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the U.S. federal securities laws. You are advised, however, to consult any further disclosures the Company makes on related subjects in its filings with the United States Securities and Exchange Commission.

This press release also contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Company’s financial performance, identifying trends in its results and providing meaningful period-to-period comparisons. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the Company’s financial statements presented in accordance with GAAP.

CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)

 

 

 

Three Months Ended

 

(In millions, except per share data)

 

March 31, 2023

 

 

March 31, 2022

 

Net Sales

 

$

1,429.8

 

 

$

1,297.2

 

Cost of sales

 

 

807.8

 

 

 

744.7

 

Gross Profit

 

 

622.0

 

 

 

552.5

 

Marketing expenses

 

 

122.3

 

 

 

101.9

 

Selling, general and administrative expenses

 

 

207.8

 

 

 

169.9

 

Income from Operations

 

 

291.9

 

 

 

280.7

 

Equity in earnings of affiliates

 

 

4.4

 

 

 

2.4

 

Other income (expense), net

 

 

(27.5

)

 

 

(16.9

)

Income before Income Taxes

 

 

268.8

 

 

 

266.2

 

Income taxes

 

 

65.6

 

 

 

61.8

 

Net Income

 

$

203.2

 

 

$

204.4

 

Net Income per share - Basic

 

$

0.83

 

 

$

0.84

 

Net Income per share - Diluted

 

$

0.82

 

 

$

0.83

 

Dividends per share

 

$

0.27

 

 

$

0.26

 

Weighted average shares outstanding - Basic

 

 

243.8

 

 

 

242.6

 

Weighted average shares outstanding - Diluted

 

 

246.8

 

 

 

246.7

 

 

CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

 

(Dollars in millions)

 

March 31, 2023

 

 

December 31, 2022

 

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

202.8

 

 

$

270.3

 

Accounts Receivable

 

 

429.3

 

 

 

422.0

 

Inventories

 

 

653.3

 

 

 

646.6

 

Other Current Assets

 

 

49.5

 

 

 

57.0

 

Total Current Assets

 

 

1,334.9

 

 

 

1,395.9

 

Property, Plant and Equipment (Net)

 

 

772.2

 

 

 

761.1

 

Equity Investment in Affiliates

 

 

13.8

 

 

 

12.7

 

Trade Names and Other Intangibles

 

 

3,400.6

 

 

 

3,431.6

 

Goodwill

 

 

2,430.3

 

 

 

2,426.8

 

Other Long-Term Assets

 

 

314.8

 

 

 

317.5

 

Total Assets

 

$

8,266.6

 

 

$

8,345.6

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Short-Term Debt

 

$

18.7

 

 

$

74.0

 

Other Current Liabilities

 

 

1,108.2

 

 

 

1,109.8

 

Total Current Liabilities

 

 

1,126.9

 

 

 

1,183.8

 

Long-Term Debt

 

 

2,400.1

 

 

 

2,599.5

 

Other Long-Term Liabilities

 

 

1,071.9

 

 

 

1,072.4

 

Stockholders’ Equity

 

 

3,667.7

 

 

 

3,489.9

 

Total Liabilities and Stockholders’ Equity

 

$

8,266.6

 

 

$

8,345.6

 

 

CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flow (Unaudited)

 

 

 

Three Months Ended

 

(Dollars in millions)

 

March 31, 2023

 

 

March 31, 2022

 

 

 

 

 

 

 

 

Net Income

 

$

203.2

 

 

$

204.4

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

54.9

 

 

 

53.7

 

Deferred income taxes

 

 

(1.6

)

 

 

(1.0

)

Non-cash compensation

 

 

25.8

 

 

 

2.9

 

Other

 

 

(0.1

)

 

 

(3.1

)

Subtotal

 

 

282.2

 

 

 

256.9

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(2.4

)

 

 

(1.8

)

Inventories

 

 

(4.8

)

 

 

(63.7

)

Other current assets

 

 

0.7

 

 

 

3.1

 

Accounts payable and accrued expenses

 

 

(62.0

)

 

 

(95.2

)

Income taxes payable

 

 

57.7

 

 

 

57.6

 

Other

 

 

1.7

 

 

 

(4.1

)

Net cash from operating activities

 

 

273.1

 

 

 

152.8

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(25.0

)

 

 

(15.6

)

Other

 

 

(4.6

)

 

 

(0.1

)

Net cash (used in) investing activities

 

 

(29.6

)

 

 

(15.7

)

 

 

 

 

 

 

 

Net change in long-term debt

 

 

(200.0

)

 

 

-

 

Net change in short-term debt

 

 

(55.6

)

 

 

(149.9

)

Payment of cash dividends

 

 

(66.3

)

 

 

(63.7

)

Proceeds from stock option exercises

 

 

10.2

 

 

 

11.0

 

Net cash (used in) financing activities

 

 

(311.7

)

 

 

(202.6

)

 

 

 

 

 

 

 

F/X impact on cash

 

 

0.7

 

 

 

(0.7

)

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

$

(67.5

)

 

$

(66.2

)

 

2023 and 2022 Product Line Net Sales

 

 

Three Months Ended

 

 

Percent

 

 

3/31/2023

 

 

3/31/2022

 

 

Change

 

Household Products

$

601.6

 

 

$

520.5

 

 

 

15.6

%

Personal Care Products

 

515.3

 

 

 

474.6

 

 

 

8.6

%

Consumer Domestic

$

1,116.9

 

 

$

995.1

 

 

 

12.2

%

Consumer International

 

230.6

 

 

 

214.6

 

 

 

7.5

%

Total Consumer Net Sales

$

1,347.5

 

 

$

1,209.7

 

 

 

11.4

%

Specialty Products Division

 

82.3

 

 

 

87.5

 

 

 

-5.9

%

Total Net Sales

$

1,429.8

 

 

$

1,297.2

 

 

 

10.2

%

Non-GAAP Measures:

The following discussion addresses the non-GAAP measures used in this press release and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. These non-GAAP financial measures should not be considered in isolation from or as a substitute for the comparable GAAP measures. The following non-GAAP measures may not be the same as similar measures provided by other companies due to differences in methods of calculation and items and events being excluded.

Organic Sales Growth:

This press release provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures and foreign exchange rate changes. Management believes that the presentation of organic sales growth is useful to investors because it enables them to assess, on a consistent basis, sales trends related to products that were marketed by the Company during the entirety of relevant periods, excluding the impact of acquisitions, divestitures, and foreign exchange rate changes that are out of the control of, and do not reflect the performance of the Company and management.

Adjusted Selling, General, and Administrative Expense (SG&A):

This press release also presents adjusted SG&A, namely, SG&A calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year SG&A expense.

Adjusted Income from Operations:

This press release also presents adjusted income from operations, namely income from operations calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year income from operations.

Adjusted EPS:

This press release also presents adjusted earnings per share, namely, EPS calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year EPS growth. 

CHURCH & DWIGHT CO., INC.

Organic Sales

 

Three Months Ended 3/31/2023

 

 

 

 

 

 

 

 

 

 

 

Total

 

Worldwide

 

Consumer

 

Consumer

 

Specialty

 

Company

 

Consumer

 

Domestic

 

International

 

Products

Reported Sales Growth

10.2%

 

11.4%

 

12.2%

 

7.5%

 

-5.9%

Less:

 

 

 

 

 

 

 

 

 

Acquisitions

5.2%

 

5.5%

 

6.7%

 

0.0%

 

0.0%

Add:

 

 

 

 

 

 

 

 

 

FX / Other

0.7%

 

0.7%

 

0.0%

 

4.1%

 

0.0%

Divestitures

0.0%

 

0.0%

 

0.0%

 

0.0%

 

0.0%

 

 

 

 

 

 

 

 

 

 

Organic Sales Growth

5.7%

 

6.6%

 

5.5%

 

11.6%

 

-5.9%

 

 

 

 

 

 

 

 

 

 

CHURCH & DWIGHT CO., INC.

Reconciliation of GAAP Measures to Non-GAAP Measures (Unaudited)

 

(Dollars in millions, except per share data)

 

For the quarter ended

March 31, 2023

 

 

For the quarter ended

March 31, 2022

 

 

Change

 

 

 

 

% of NS

 

 

 

 

 

% of NS

 

 

 

 

 

Adjusted SG&A Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SG&A - Reported

$

207.8

 

 

 

14.5

%

 

$

169.9

 

 

 

13.1

%

 

 

140

 

bps

Hero Restricted Stock

 

(7.3

)

 

 

-0.5

%

 

 

0.0

 

 

 

0.0

%

 

 

-50

 

bps

SG&A - Adjusted (non-GAAP)

$

200.5

 

 

 

14.0

%

 

$

169.9

 

 

 

13.1

%

 

 

90

 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the quarter ended

March 31, 2023

 

 

For the quarter ended

March 31, 2022

 

 

Change

Adjusted Income From Operations

 

 

 

% of NS

 

 

 

 

 

% of NS

 

 

 

 

 

Income From Operations - Reported

$

291.9

 

 

 

20.4

%

 

$

280.7

 

 

 

21.6

%

 

 

-120

 

bps

Hero Restricted Stock

 

7.3

 

 

 

0.5

%

 

 

0.0

 

 

 

0.0

%

 

 

50

 

bps

Income From Operations - Adjusted (non-GAAP)

$

299.2

 

 

 

20.9

%

 

$

280.7

 

 

 

21.6

%

 

 

-70

 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the quarter ended

March 31, 2023

 

 

For the quarter ended

March 31, 2022

 

 

Change

Adjusted Diluted Earnings Per Share Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share - Reported

$

0.82

 

 

 

 

 

$

0.83

 

 

 

 

 

 

-1.2

%

 

Hero Restricted Stock

 

0.03

 

 

 

 

 

 

0.00

 

 

 

 

 

 

 

 

Diluted Earnings Per Share - Adjusted (non-GAAP)

$

0.85

 

 

 

 

 

$

0.83

 

 

 

 

 

 

2.4

%

 

 

Reported and Organic Forecasted Sales Reconciliation

 

 

 

 

 

For the Quarter

 

For the Year

 

Ended

 

Ended

 

June 30, 2023

 

December 31, 2023

Reported Sales Growth

7.0%

 

6.5%

Less: Acquisition

-4.0%

 

-3.2%

Add: FX / Other

0.0%

 

0.2%

 

 

 

 

Organic Sales Growth

3.0%

 

3.5%

 

Reported and Adjusted Diluted Earnings Per Share - Outlook

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the quarter ended

June 30, 2023

 

 

For the quarter ended

June 30, 2022

 

 

 

Change

Adjusted Diluted Earnings Per Share Reconciliation (Forecasted)

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share - Reported

$

0.75

 

 

$

0.76

 

 

-1.3

%

Hero Restricted Stock

 

0.03

 

 

 

0.00

 

 

 

 

Diluted Earnings Per Share - Adjusted (non-GAAP)

$

0.78

 

 

$

0.76

 

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended

December 31, 2023

 

 

For the year ended

December 31, 2022

 

 

Change 

Adjusted Diluted Earnings Per Share Reconciliation (Forecasted)

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share - Reported

$

2.91 to 2.97

 

 

$

1.68

 

 

73% to 77%

 

Hero Restricted Stock

 

0.12

 

 

 

0.03

 

 

 

 

Flawless Impairment

 

0.00

 

 

 

1.26

 

 

 

 

Diluted Earnings Per Share - Adjusted (non-GAAP)

$

3.03 to 3.09

 

 

$

2.97

 

2% to 4%

 

 

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