Fortune Brands Home & Security Grows Sales in Q4 and Full Year 2011February 6th, 2012 | Category: Industry News
Fortune Brands Home & Security Inc. has announced financial results for the fourth quarter of 2011 and full year 2011. For the fourth quarter of 2011, the company reported net sales were $876 million, an increase of 4 percent over the fourth quarter of 2010. On a Generally Accepted Accounting Principles (GAAP) basis, earnings per share were a loss of 44 cents, impacted by net charges of 60 cents per share principally attributable to impairments of intangible assets in the company’s Advanced Material Windows & Door Systems segment, defined benefit plan expense associated with the company adopting a new accounting method, and restructuring charges associated with previously announced actions, according to the announcement.
On an adjusted pro forma basis, diluted EPS was 16 cents and flat year over year.
On a GAAP basis, operating income was a loss of $105 million, including approximately $145 million in net charges described above. On an adjusted pro forma basis, operating income was $40 million, an increase of 2 percent from the prior-year quarter, according to the report.
For the full year 2011, net sales were $3.3 billion, an increase of 3 percent over 2010. On a GAAP basis, EPS was a loss of 21 cents. On an adjusted pro forma basis, the company reported that diluted EPS was 58 cents, a decrease of 20 percent year over year. GAAP EPS was impacted by net charges of 79 cents principally attributable to impairments of intangible assets in the company’s Advanced Material Windows & Door Systems segment, defined benefit plan expense associated with the company adopting a new accounting method, and restructuring charges associated with previously announced actions.
On a GAAP basis, full-year operating income was a loss of $12 million, including the effect of approximately $160 million of net charges described above. On an adjusted pro forma basis, full year 2011 operating income was $150 million, a decrease of 17 percent from the prior year, according to the announcement.
“Our balance sheet as of December 31, 2011 remained strong, with $120 million in cash, gross debt of $410 million and a net debt-to-EBITDA ratio of 1.2,” says Lee Wyatt, senior vice president and chief financial officer. “We believe this balance sheet, combined with our growing free cash flow, provides flexibility to maximize shareholder value in a variety of ways.”
“Our sales growth continued in the fourth quarter, despite a market for our products that remained challenging. Overall, we performed at the high end of our expectations and we believe we continue to outperform the market for our products,” says Chris Klein, CEO, Fortune Brands Home & Security Inc. “Our windows and door segment was impacted again by lower window sales lapping relatively high year-ago comparisons, due to the energy tax credit that expired at the end of 2010. In total, adjusted pro forma operating income was up slightly, reflecting the continued promotional environment in our cabinets segment and softness in our windows and door segment.”
The company reported that for its Advanced Material Windows & Door Systems, net sales were down 11 percent. An increase in door sales, helped in part by growth in Canada and a recently launched exclusive relationship in which Therma-Tru will be making all of their entry door panels, was offset by a sharp decline of more than 20 percent in window sales, says the report.
“We continued to win in this challenging environment, and we are poised to keep the momentum going. Our companies plan to announce new products and programs across all segments this year that will represent the next phases of our product innovation and market expansion. We believe our ability to create and deliver the products consumers want, when and where they want them, enables us to be successful and outperform the market, no matter the state of the industry recovery,” Klein adds. “Our transition to an independent company is complete, we are structured for success and we are well on our way to writing the next chapter in the history of our storied brands.”