Graco Inc. (NYSE:GGG) today announced results for the quarter and
year ended December 27, 2013.
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Summary
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$ in millions except per share amounts
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Quarter Ended
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Year Ended
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Dec 27,
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Dec 28,
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%
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Dec 27,
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Dec 28,
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%
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2013
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2012
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Change
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2013
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2012
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Change
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Net Sales
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$
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271.9
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$
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253.7
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7
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%
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|
$
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1,104.0
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$
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1,012.5
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9
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%
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Net Earnings
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44.7
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42.3
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6
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%
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210.8
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149.1
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41
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%
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Diluted Net Earnings per Common Share
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$
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0.71
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$
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0.68
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4
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%
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$
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3.36
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$
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2.42
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39
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%
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-
Cash flow from operations of $243 million was 28 percent higher than
last year. The Company applied $148 million of cash to the reduction
of long-term debt and returned $129 million to investors through
dividends and Company stock repurchases.
-
Fourth quarter sales increased in all regions, including double-digit
percentage growth in Asia Pacific. Sales for the quarter increased in
Contractor and Industrial segments while Lubrication segment sales
declined slightly.
-
Sales of $1.1 billion for the year were 9 percent higher than last
year, led by a double-digit percentage increase in the Contractor
segment and solid growth in the Industrial segment.
-
Gross margin rates remained strong at 54 percent for the quarter and
55 percent for the year.
-
General and administrative expenses for the year decreased $15 million
including a $14 million decrease in acquisition and divestiture costs.
-
Other expense (income) included dividend income received from the
Liquid Finishing businesses held as a cost-method investment.
Dividends were $4 million for the quarter in both 2013 and 2012 and
$28 million for the year, up from $12 million last year.
-
The effective income tax rate in 2013 reflected the favorable effects
of higher after-tax dividend income from Liquid Finishing and renewal
of the federal R&D credit.
-
Changes in currency translation rates did not have a significant
effect on consolidated operating results. Favorable effects of rate
changes in EMEA offset unfavorable effects in Asia Pacific.
"Graco reported record sales and earnings for the full year and in each
quarter of 2013, including the fourth quarter," said Patrick J. McHale,
Graco's President and CEO. "Industrial project activity was surprisingly
strong in China in the fourth quarter, which lifted our Asia Pacific
region to a double-digit performance for the quarter and brought the
region back to modest growth for the full year. Contractor segment sales
in the Americas approached double-digit growth in the fourth quarter,
against a difficult comparison from the prior year. The business
executed well throughout 2013, capturing growth from the U.S. housing
recovery to grow 22 percent for the full year in the Americas and drove
double-digit growth for the segment worldwide. Graco posted fourth
quarter and annual growth in every reportable segment and region in
2013, with the exception of our Lubrication segment, which was down
slightly in the quarter and flat on the year."
Consolidated Results
Sales for the quarter were up 7 percent, including increases of 4
percent in the Americas, 8 percent in EMEA (4 percent at consistent
translation rates) and 14 percent in Asia Pacific (16 percent at
consistent translation rates). For the year, sales increased 9 percent,
including increases of 11 percent in the Americas, 10 percent in EMEA (8
percent at consistent translation rates) and 3 percent in Asia Pacific
(5 percent at consistent translation rates). The first quarter impact of
the Powder Finishing operations acquired in April 2012 contributed
approximately 3 percentage points of the total sales growth for the year
and accounted for most of the growth in EMEA and Asia Pacific.
Gross profit margin, expressed as a percentage of sales, was 54 percent
for the quarter and 55 percent for the year, consistent with the
comparable periods of last year. For the quarter, realized price
increases offset the unfavorable effects of manufacturing spending
increases and changes in product mix. For the year, the effects of
realized price increases and higher production volume offset the
unfavorable effect of changes in product mix.
Total operating expenses for the quarter increased $3 million. Decreases
in corporate general and administrative expenses partially offset
increases in product development and volume related increases in
selling, marketing and distribution. Operating expenses for the year
increased $2 million, with business activity-related increases largely
offset by decreases in general and administrative expenses, including a
$14 million decrease in acquisition and divestiture costs.
Other expense (income) included dividends received from the Liquid
Finishing businesses that are held separate from the Company’s other
businesses. Such dividends totaled $4 million in each of the fourth
quarters of 2013 and 2012. Dividends for the year totaled $28 million in
2013 and $12 million in 2012.
The effective income tax rate for the year was 27 percent, down from 31
percent last year. The lower rate for 2013 reflected the effects of
higher after-tax dividend income received from the Liquid Finishing
businesses and the federal R&D credit that was renewed in 2013,
effective retroactive to the beginning of 2012. There was no R&D credit
recognized in 2012.
Segment Results
Certain measurements of segment operations are summarized below:
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Quarter Ended
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Year Ended
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Industrial
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Contractor
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Lubrication
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Industrial
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Contractor
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Lubrication
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Net sales (in millions)
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$
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171.8
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$
|
73.5
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$
|
26.6
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$
|
652.3
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|
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$
|
342.5
|
|
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$
|
109.1
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Net sales percentage change from last year
|
|
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10
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%
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|
|
|
5
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%
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|
|
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(3
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)%
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|
|
|
8
|
%
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|
|
|
15
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%
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(1
|
)%
|
Operating earnings as a percentage of net sales
|
|
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2013
|
|
|
|
32
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%
|
|
|
|
13
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%
|
|
|
|
20
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%
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|
|
|
32
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%
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|
|
|
21
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%
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|
|
|
21
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%
|
2012
|
|
|
|
30
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%
|
|
|
|
16
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%
|
|
|
|
20
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%
|
|
|
|
31
|
%
|
|
|
|
18
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%
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|
|
|
20
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%
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|
|
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Industrial segment sales increased 10 percent for the quarter and 8
percent for the year. Sales for the quarter increased 3 percent in the
Americas, 8 percent in EMEA (4 percent at consistent translation rates)
and 25 percent in Asia Pacific (28 percent at consistent translation
rates). Sales for the year increased 6 percent in the Americas, 12
percent in EMEA (9 percent at consistent translation rates) and 7
percent in Asia Pacific (10 percent at consistent translation rates).
Expense leverage on higher sales volume drove the 2 percentage point
increase in operating margin rate for the quarter. The effects of
purchase accounting related to inventory reduced the operating margin
rate for the year 2012 by approximately 1 percentage point.
Contractor segment sales increased 5 percent for the quarter and 15
percent for the year. Sales for the quarter increased 8 percent in the
Americas, increased 8 percent in EMEA (4 percent at consistent
translation rates), and decreased 12 percent in Asia Pacific. For the
year, sales increased 22 percent in the Americas, increased 4 percent in
EMEA (2 percent at consistent translation rates) and decreased 4 percent
in Asia Pacific. Expenses in this segment increased $3 million from the
fourth quarter of the prior year due to increased product development
and product launch activities for new products expected to be released
in the first quarter of 2014. For the year, higher sales and the
leveraging of expenses drove the improvement in operating earnings as a
percentage of sales.
Lubrication segment sales decreased 3 percent (2 percent at consistent
translation rates) for the quarter and 1 percent (flat at consistent
translation rates) for the year. Sales for the quarter were flat in the
Americas and EMEA, and decreased 19 percent in Asia Pacific. For the
year, sales were flat in the Americas, increased 14 percent in EMEA and
decreased 13 percent in Asia Pacific. Operating margin rates were
consistent between years for both the quarter and the year.
Acquisition in 2012
On April 2, 2012, the Company completed the purchase of the finishing
businesses of Illinois Tool Works Inc. The acquisition included Powder
Finishing and Liquid Finishing equipment operations, technologies and
brands. Results of the Powder Finishing business have been included in
the Industrial segment since the date of acquisition.
Pursuant to a March 2012 order, the Liquid Finishing businesses were to
be held separate from the rest of Graco’s businesses while the United
States Federal Trade Commission (“FTC”) considered a settlement with
Graco and determined which portions of the Liquid Finishing business
Graco must divest.
In May 2012, the FTC issued a proposed decision and order which requires
Graco to sell the Liquid Finishing business assets, including certain
business activities related to the development, manufacture, and sale of
products under the Binks®, DeVilbiss®, Ransburg® and BGK® brand names,
no later than 180 days from the date the order becomes final. The FTC
has not yet issued its final decision and order.
The Company has retained the services of an investment bank to help it
market the Liquid Finishing businesses and identify potential buyers.
While it seeks a buyer, Graco must continue to hold the Liquid Finishing
business assets separate from its other businesses and maintain them as
viable and competitive.
The Company does not control the Liquid Finishing businesses, nor is it
able to exert influence over those businesses. Consequently, the
Company’s investment in the shares of the Liquid Finishing businesses
has been reflected as a cost-method investment, and its financial
results have not been consolidated with those of the Company. Income is
recognized based on dividends received from current earnings and is
included in other income.
The Liquid Finishing businesses generated sales of $68 million and
EBITDA of $15 million in the fourth quarter and $279 million and $61
million, respectively, for the year.
Outlook
"As stated in the earnings release last quarter, Graco expects to
achieve growth in all segments and regions in 2014," stated Mr. McHale.
"We believe that housing starts in the U.S. will easily eclipse one
million in 2014, which should help drive our Contractor segment in the
Americas to another year of double-digit growth, albeit at a pace slower
than 2013. We expect the macro environment for Industrial and
Lubrication to be generally positive in 2014, but do expect results to
continue to be a bit choppy from quarter to quarter and between product
lines and geographies. We remain confident in our long-term growth
strategies and will work closely with our distributor partners to
deliver good performance in 2014."
Cautionary Statement Regarding Forward-Looking Statements
The Company desires to take advantage of the “safe harbor” provisions
regarding forward-looking statements of the Private Securities
Litigation Reform Act of 1995 and is filing this Cautionary Statement in
order to do so. From time to time various forms filed by our Company
with the Securities and Exchange Commission, including our Form 10-K,
our Form 10-Qs and Form 8-Ks, and other disclosures, including our 2012
Overview report, press releases, earnings releases, analyst briefings,
conference calls and other written documents or oral statements released
by our Company, may contain forward-looking statements. Forward-looking
statements generally use words such as “expect,” “foresee,”
“anticipate,” “believe,” “project,” “should,” “estimate,” “will,” and
similar expressions, and reflect our Company’s expectations concerning
the future. All forecasts and projections are forward-looking
statements. Forward-looking statements are based upon currently
available information, but various risks and uncertainties may cause our
Company’s actual results to differ materially from those expressed in
these statements. The Company undertakes no obligation to update these
statements in light of new information or future events.
Future results could differ materially from those expressed, due to the
impact of changes in various factors. These risk factors include, but
are not limited to: changes in laws and regulations; economic conditions
in the United States and other major world economies; whether we are
able to locate, complete and effectively integrate acquisitions; whether
we are able to effectively and timely complete a divestiture of the
acquired Liquid Finishing businesses, which has not been completed and
remains subject to FTC approval; risks incident to conducting business
internationally, including currency fluctuations and political
instability; supply interruptions or delays; the ability to meet our
customers’ needs, and changes in product demand; new entrants who copy
our products or infringe on our intellectual property; results of and
costs associated with, litigation, administrative proceedings and
regulatory reviews incident to our business; compliance with
anti-corruption laws; the possibility of decline in purchases from few
large customers of the Contractor segment; fluctuations in new
construction and remodeling activity; natural disasters; and security
breaches. Please refer to Item 1A of our Annual Report on Form 10-K for
fiscal year 2012 (and most recent Form 10-Q) for a more comprehensive
discussion of these and other risk factors. These reports are available
on the Company’s website at www.graco.com
and the Securities and Exchange Commission’s website at www.sec.gov.
Shareholders, potential investors and other readers are urged to
consider these factors in evaluating forward-looking statements and are
cautioned not to place undue reliance on such forward-looking statements.
Investors should realize that factors other than those identified above
and in Item 1A might prove important to the Company’s future results. It
is not possible for management to identify each and every factor that
may have an impact on the Company’s operations in the future as new
factors can develop from time to time.
Conference Call
Graco management will hold a conference call, including slides via
webcast, with analysts and institutional investors on Tuesday, January
28, 2014, at 11:00 a.m. ET, to discuss Graco’s fourth quarter and
year-end results.
A real-time Webcast of the conference call will be broadcast live over
the Internet. Individuals wanting to listen and view slides can access
the call at the Company’s website at www.graco.com.
Listeners should go to the website at least 15 minutes prior to the live
conference call to install any necessary audio software.
For those unable to listen to the live event, a replay will be available
soon after the conference call at Graco’s website, or by telephone
beginning at approximately 2:00 p.m. ET on January 28, 2014, by dialing
800-406-7325, Conference ID #4659630, if calling within the U.S. or
Canada. The dial-in number for international participants is
303-590-3030, with the same Conference ID #. The replay by telephone
will be available through January 31, 2014.
Graco Inc. supplies technology and expertise for the management of
fluids and coatings in both industrial and commercial applications. It
designs, manufactures and markets systems and equipment to move,
measure, control, dispense and spray fluid and coating materials. A
recognized leader in its specialties, Minneapolis-based Graco serves
customers around the world in the manufacturing, processing,
construction and maintenance industries. For additional information
about Graco Inc., please visit us at www.graco.com.
|
GRACO INC. AND SUBSIDIARIES
|
Consolidated Statement of Earnings (Unaudited)
|
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Quarter Ended
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Year Ended
|
(in thousands, except per share amounts)
|
|
|
Dec 27,
|
|
|
Dec 28,
|
|
|
Dec 27,
|
|
|
Dec 28,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Net Sales
|
|
|
$
|
271,923
|
|
|
|
$
|
253,678
|
|
|
|
$
|
1,104,024
|
|
|
|
$
|
1,012,456
|
|
Cost of products sold
|
|
|
|
124,724
|
|
|
|
|
114,790
|
|
|
|
|
496,569
|
|
|
|
|
461,926
|
|
Gross Profit
|
|
|
|
147,199
|
|
|
|
|
138,888
|
|
|
|
|
607,455
|
|
|
|
|
550,530
|
|
Product development
|
|
|
|
14,032
|
|
|
|
|
12,296
|
|
|
|
|
51,428
|
|
|
|
|
48,921
|
|
Selling, marketing and distribution
|
|
|
|
45,646
|
|
|
|
|
41,720
|
|
|
|
|
177,853
|
|
|
|
|
163,523
|
|
General and administrative
|
|
|
|
24,192
|
|
|
|
|
26,970
|
|
|
|
|
98,405
|
|
|
|
|
113,409
|
|
Operating Earnings
|
|
|
|
63,329
|
|
|
|
|
57,902
|
|
|
|
|
279,769
|
|
|
|
|
224,677
|
|
Interest expense
|
|
|
|
4,310
|
|
|
|
|
4,992
|
|
|
|
|
18,147
|
|
|
|
|
19,273
|
|
Other expense (income), net
|
|
|
|
(3,529
|
)
|
|
|
|
(5,752
|
)
|
|
|
|
(27,200
|
)
|
|
|
|
(11,922
|
)
|
Earnings Before Income Taxes
|
|
|
|
62,548
|
|
|
|
|
58,662
|
|
|
|
|
288,822
|
|
|
|
|
217,326
|
|
Income taxes
|
|
|
|
17,800
|
|
|
|
|
16,400
|
|
|
|
|
78,000
|
|
|
|
|
68,200
|
|
Net Earnings
|
|
|
$
|
44,748
|
|
|
|
$
|
42,262
|
|
|
|
$
|
210,822
|
|
|
|
$
|
149,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.73
|
|
|
|
$
|
0.70
|
|
|
|
$
|
3.44
|
|
|
|
$
|
2.47
|
|
Diluted
|
|
|
$
|
0.71
|
|
|
|
$
|
0.68
|
|
|
|
$
|
3.36
|
|
|
|
$
|
2.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
61,148
|
|
|
|
|
60,697
|
|
|
|
|
61,203
|
|
|
|
|
60,451
|
|
Diluted
|
|
|
|
62,917
|
|
|
|
|
61,920
|
|
|
|
|
62,790
|
|
|
|
|
61,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
Dec 27,
|
|
|
Dec 28,
|
|
|
Dec 27,
|
|
|
Dec 28,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
$
|
171,844
|
|
|
|
$
|
156,371
|
|
|
|
$
|
652,344
|
|
|
|
$
|
603,398
|
|
Contractor
|
|
|
|
73,478
|
|
|
|
|
69,868
|
|
|
|
|
342,546
|
|
|
|
|
298,811
|
|
Lubrication
|
|
|
|
26,601
|
|
|
|
|
27,439
|
|
|
|
|
109,134
|
|
|
|
|
110,247
|
|
Total
|
|
|
$
|
271,923
|
|
|
|
$
|
253,678
|
|
|
|
$
|
1,104,024
|
|
|
|
$
|
1,012,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
$
|
55,087
|
|
|
|
$
|
47,483
|
|
|
|
$
|
211,265
|
|
|
|
$
|
186,129
|
|
Contractor
|
|
|
|
9,875
|
|
|
|
|
10,971
|
|
|
|
|
72,245
|
|
|
|
|
54,310
|
|
Lubrication
|
|
|
|
5,227
|
|
|
|
|
5,547
|
|
|
|
|
22,512
|
|
|
|
|
22,535
|
|
Unallocated Corporate expenses
|
|
|
|
(6,860
|
)
|
|
|
|
(6,099
|
)
|
|
|
|
(26,253
|
)
|
|
|
|
(38,297
|
)
|
Total
|
|
|
$
|
63,329
|
|
|
|
$
|
57,902
|
|
|
|
$
|
279,769
|
|
|
|
$
|
224,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRACO INC. AND SUBSIDIARIES
|
Consolidated Balance Sheets (Unaudited)
|
(In thousands)
|
|
|
|
Dec 27,
|
|
|
Dec 28,
|
|
|
|
2013
|
|
|
2012
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
19,756
|
|
|
|
$
|
31,120
|
|
Accounts receivable, less allowances of $6,300 and $6,600
|
|
|
|
183,293
|
|
|
|
|
172,143
|
|
Inventories
|
|
|
|
133,787
|
|
|
|
|
121,549
|
|
Deferred income taxes
|
|
|
|
18,827
|
|
|
|
|
17,742
|
|
Investment in businesses held separate
|
|
|
|
422,297
|
|
|
|
|
426,813
|
|
Other current assets
|
|
|
|
14,633
|
|
|
|
|
7,629
|
|
Total current assets
|
|
|
|
792,593
|
|
|
|
|
776,996
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and Equipment
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
407,887
|
|
|
|
|
389,067
|
|
Accumulated depreciation
|
|
|
|
(256,170
|
)
|
|
|
|
(237,523
|
)
|
Property, plant and equipment, net
|
|
|
|
151,717
|
|
|
|
|
151,544
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
189,967
|
|
|
|
|
181,228
|
|
Other Intangible Assets, net
|
|
|
|
147,940
|
|
|
|
|
151,773
|
|
Deferred Income Taxes
|
|
|
|
20,366
|
|
|
|
|
38,550
|
|
Other Assets
|
|
|
|
24,645
|
|
|
|
|
21,643
|
|
Total Assets
|
|
|
$
|
1,327,228
|
|
|
|
$
|
1,321,734
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Notes payable to banks
|
|
|
$
|
9,584
|
|
|
|
$
|
8,133
|
|
Trade accounts payable
|
|
|
|
34,282
|
|
|
|
|
28,938
|
|
Salaries and incentives
|
|
|
|
38,939
|
|
|
|
|
34,001
|
|
Dividends payable
|
|
|
|
16,881
|
|
|
|
|
15,206
|
|
Other current liabilities
|
|
|
|
69,167
|
|
|
|
|
65,393
|
|
Total current liabilities
|
|
|
|
168,853
|
|
|
|
|
151,671
|
|
|
|
|
|
|
|
|
|
|
Long-term Debt
|
|
|
|
408,370
|
|
|
|
|
556,480
|
|
Retirement Benefits and Deferred Compensation
|
|
|
|
94,705
|
|
|
|
|
137,779
|
|
Deferred Income Taxes
|
|
|
|
20,935
|
|
|
|
|
21,690
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
61,003
|
|
|
|
|
60,767
|
|
Additional paid-in-capital
|
|
|
|
347,058
|
|
|
|
|
287,795
|
|
Retained earnings
|
|
|
|
272,653
|
|
|
|
|
189,297
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(46,349
|
)
|
|
|
|
(83,745
|
)
|
Total shareholders' equity
|
|
|
|
634,365
|
|
|
|
|
454,114
|
|
Total Liabilities and Shareholders' Equity
|
|
|
$
|
1,327,228
|
|
|
|
$
|
1,321,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRACO INC. AND SUBSIDIARIES
|
Consolidated Statements of Cash Flows (Unaudited)
|
(In thousands)
|
|
|
|
Year Ended
|
|
|
|
Dec 27,
|
|
|
Dec 28,
|
|
|
|
2013
|
|
|
2012
|
Cash Flows From Operating Activities
|
|
|
|
|
|
|
|
|
Net Earnings
|
|
|
$
|
210,822
|
|
|
|
$
|
149,126
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
37,316
|
|
|
|
|
38,762
|
|
Deferred income taxes
|
|
|
|
(1,715
|
)
|
|
|
|
(10,786
|
)
|
Share-based compensation
|
|
|
|
16,545
|
|
|
|
|
12,409
|
|
Excess tax benefit related to share-based payment arrangements
|
|
|
|
(8,347
|
)
|
|
|
|
(4,217
|
)
|
Change in
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(11,880
|
)
|
|
|
|
(2,752
|
)
|
Inventories
|
|
|
|
(10,186
|
)
|
|
|
|
5,941
|
|
Trade accounts payable
|
|
|
|
2,436
|
|
|
|
|
(952
|
)
|
Salaries and incentives
|
|
|
|
2,022
|
|
|
|
|
(4,251
|
)
|
Retirement benefits and deferred compensation
|
|
|
|
3,629
|
|
|
|
|
3,209
|
|
Other accrued liabilities
|
|
|
|
5,556
|
|
|
|
|
3,288
|
|
Other
|
|
|
|
(3,143
|
)
|
|
|
|
(95
|
)
|
Net cash from operating activities
|
|
|
|
243,055
|
|
|
|
|
189,682
|
|
Cash Flows From Investing Activities
|
|
|
|
|
|
|
|
|
Property, plant and equipment additions
|
|
|
|
(23,319
|
)
|
|
|
|
(18,234
|
)
|
Acquisition of businesses, net of cash acquired
|
|
|
|
(11,560
|
)
|
|
|
|
(240,068
|
)
|
Investment in businesses held separate
|
|
|
|
4,516
|
|
|
|
|
(426,813
|
)
|
Proceeds from sale of assets
|
|
|
|
1,600
|
|
|
|
|
-
|
|
Other
|
|
|
|
(2,475
|
)
|
|
|
|
(9,405
|
)
|
Net cash used in investing activities
|
|
|
|
(31,238
|
)
|
|
|
|
(694,520
|
)
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
|
|
Borrowings (payments) on short-term lines of credit, net
|
|
|
|
1,280
|
|
|
|
|
(619
|
)
|
Borrowings on long-term line of credit
|
|
|
|
419,905
|
|
|
|
|
649,325
|
|
Payments on long-term line of credit
|
|
|
|
(568,122
|
)
|
|
|
|
(392,845
|
)
|
Payments of debt issuance costs
|
|
|
|
-
|
|
|
|
|
(1,921
|
)
|
Excess tax benefit related to share-based payment arrangements
|
|
|
|
8,347
|
|
|
|
|
4,217
|
|
Common stock issued
|
|
|
|
41,664
|
|
|
|
|
30,194
|
|
Common stock repurchased
|
|
|
|
(67,827
|
)
|
|
|
|
(1,378
|
)
|
Cash dividends paid
|
|
|
|
(61,139
|
)
|
|
|
|
(54,302
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
(225,892
|
)
|
|
|
|
232,671
|
|
Effect of exchange rate changes on cash
|
|
|
|
2,711
|
|
|
|
|
137
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(11,364
|
)
|
|
|
|
(272,030
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
|
31,120
|
|
|
|
|
303,150
|
|
End of year
|
|
|
$
|
19,756
|
|
|
|
$
|
31,120
|
|
|
|
|
|
|
|
|
|
|
|
|
Copyright Business Wire 2014