-
3Q14 Reported EPS (including discontinued operations) of $0.68
-
Adjusted EPS (non-GAAP, continuing operations) of $0.77
-
3Q14 Net sales grew approximately 4 percent to $1.56 billion
-
Net sales up approximately 3 percent on organic basis
-
Returned $341 million of cash to shareholders through the third
quarter, including the repurchase of 5 million shares for $247 million
-
Expecting adjusted EPS (non-GAAP, continuing operations) to grow 12
percent to 14 percent in 2014
Company Website:
http://www.averydennison.com
GLENDALE, Calif. -- (Business Wire)
Avery Dennison Corporation (NYSE:AVY) today announced preliminary,
unaudited results for its third quarter ended September 27, 2014. All
non-GAAP financial measures referenced in this document are reconciled
to GAAP in the attached tables. Unless otherwise indicated, the
discussion of the company’s results is focused on its continuing
operations, and comparisons are to the same period in the prior year.
“Third quarter EPS was in line with our expectations, despite a modest
decline in sales in Retail Branding and Information Solutions, and
higher-than-expected transition costs associated with the consolidation
of Pressure-sensitive Materials operations in Europe,” said Dean A.
Scarborough, Avery Dennison chairman, president and CEO.
“We expect to deliver improved operational performance in the fourth
quarter, with a reduction in the transition costs impacting PSM,” said
Scarborough. “However, given recent top-line trends and headwinds from
currency, we have modestly lowered our guidance for full-year adjusted
earnings per share growth to approximately 13 percent. Meanwhile, we
continue to execute our disciplined capital allocation strategy,
reflected in the increased level of share repurchase during the past
quarter.”
For more details on the company’s results, see the summary table
accompanying this news release, as well as the supplemental presentation
materials, “Third Quarter 2014 Financial Review and Analysis,” posted on
the company’s website at www.investors.averydennison.com,
and furnished to the SEC on Form 8-K.
Third Quarter 2014 Results by Segment
All references to sales reflect comparisons on an organic basis, which
exclude the estimated impact of currency translation, product line
exits, acquisitions and divestitures, and, where applicable, the extra
week in the fiscal year. Adjusted operating margin refers to income
before interest expense and taxes, excluding restructuring costs and
other items, as a percentage of sales.
Pressure-sensitive Materials (PSM)
-
PSM segment sales increased approximately 5 percent. Within the
segment, Label and Packaging Materials sales increased mid-single
digits. Combined sales for Graphics, Reflective, and Performance Tapes
also increased mid-single digits.
-
Operating margin declined 10 basis points to 10.1 percent as the net
impact of raw material input costs and pricing, transition costs in
Europe, and country and product mix roughly offset the benefit of
higher volume and productivity. Wage inflation was largely offset by
lower incentive compensation. Adjusted operating margin declined 20
basis points.
Retail Branding and Information Solutions (RBIS)
-
RBIS segment sales were down approximately 2 percent, reflecting
softer demand from U.S.-based apparel retailers and brands.
-
Operating margin improved 220 basis points to 5.4 percent as the
benefit of productivity, lower restructuring costs, and lower
incentive compensation more than offset the impact of wage inflation
and lower volume. Adjusted operating margin improved 80 basis points.
Other
Share Repurchases
The company repurchased 5 million shares in the first three quarters of
2014 at an aggregate cost of $247 million.
Discontinued Operations
On July 1, 2013, the company completed the sale of its OCP and DES
businesses.
Income Taxes
The effective tax rates for the third quarter and year-to-date were 36
percent and 32 percent, respectively. The adjusted tax rate for both the
third quarter and year-to-date was 33 percent.
Cost Reduction Actions
In the third quarter, the company realized approximately $7 million in
savings from restructuring, net of transition costs, and incurred
restructuring costs of approximately $7 million. The company expects to
incur cash restructuring costs of approximately $55 million in 2014.
Outlook
In its supplemental presentation materials, “Third Quarter 2014
Financial Review and Analysis,” the company provides a list of factors
that it believes will contribute to its 2014 financial results. Based on
the factors listed and other assumptions, the company expects 2014
earnings per share from continuing operations of $2.60 to $2.65.
Excluding an estimated $0.40 per share for restructuring costs and other
items, the company expects adjusted (non-GAAP) earnings per share from
continuing operations of $3.00 to $3.05.
Note: Throughout this release and the supplemental presentation
materials, amounts on a per share basis reflect fully diluted shares
outstanding.
About Avery Dennison
Avery Dennison (NYSE:AVY) is a global leader in labeling and packaging
materials and solutions. The company’s applications and technologies are
an integral part of products used in every major market and industry.
With operations in more than 50 countries and 26,000 employees
worldwide, Avery Dennison serves customers with insights and innovations
that help make brands more inspiring and the world more intelligent.
Headquartered in Glendale, California, the company reported sales from
continuing operations of $6.1 billion in 2013. Learn more at www.averydennison.com.
“Safe Harbor” Statement under the Private Securities Litigation
Reform Act of 1995
Certain statements contained in this document are "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements, and financial or other business
targets, are subject to certain risks and uncertainties. Actual results
and trends may differ materially from historical or anticipated results
depending on a variety of factors, including but not limited to risks
and uncertainties relating to the following: fluctuations in demand
affecting sales to customers; the financial condition and inventory
strategies of customers; changes in customer order patterns; worldwide
and local economic conditions; fluctuations in cost and availability of
raw materials; our ability to generate sustained productivity
improvement; our ability to achieve and sustain targeted cost
reductions; impact of competitive products and pricing; loss of
significant contracts or customers; collection of receivables from
customers; selling prices; business mix shift; changes in tax laws and
regulations, and uncertainties associated with interpretations of such
laws and regulations; outcome of tax audits; timely development and
market acceptance of new products, including sustainable or
sustainably-sourced products; investment in development activities and
new production facilities; fluctuations in currency exchange rates and
other risks associated with foreign operations; integration of
acquisitions and completion of potential dispositions; amounts of future
dividends and share repurchases; customer and supplier concentrations;
successful implementation of new manufacturing technologies and
installation of manufacturing equipment; disruptions in information
technology systems; successful installation of new or upgraded
information technology systems; data security breaches; volatility of
financial markets; impairment of capitalized assets, including goodwill
and other intangibles; credit risks; our ability to obtain adequate
financing arrangements and maintain access to capital; fluctuations in
interest and tax rates; fluctuations in pension, insurance, and employee
benefit costs; impact of legal and regulatory proceedings, including
with respect to environmental, health and safety; changes in
governmental laws and regulations; changes in political conditions;
impact of epidemiological events on the economy and our customers and
suppliers; acts of war, terrorism, and natural disasters; and other
factors.
We believe that the most significant risk factors that could affect our
financial performance in the near-term include: (1) the impact of
economic conditions on underlying demand for our products; (2)
competitors' actions, including pricing, expansion in key markets, and
product offerings; and (3) the degree to which higher costs can be
offset with productivity measures and/or passed on to customers through
selling price increases, without a significant loss of volume.
For a more detailed discussion of these and other factors, see “Risk
Factors” and “Management’s Discussion and Analysis of Results of
Operations and Financial Condition” in our 2013 Form 10-K, filed on
February 26, 2014 with the Securities and Exchange Commission, and
subsequent quarterly reports on Form 10-Q. The forward-looking
statements included in this document are made only as of the date of
this document, and we undertake no obligation to update these statements
to reflect subsequent events or circumstances, other than as may be
required by law.
For more information and to listen to a live broadcast or an audio
replay of the quarterly conference call with analysts, visit the Avery
Dennison website at www.investors.averydennison.com
|
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|
|
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | Third Quarter Financial Summary - Preliminary, unaudited |
| |
(in millions, except % and per share amounts)
|
| |
|
| | | | | 3Q | | 3Q | | % Change vs. P/Y | | | | | | | | | | |
| | | | | 2014 | | 2013 | | Reported | | Organic (a) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Net sales, by segment:
| | | | | | | | | | | | | | | | | | | | |
| | |
Pressure-sensitive Materials
| |
$
|
1,157.0
| | |
$
|
1,094.0
| | |
6
|
%
| |
5
|
%
| | | | | | | | | | | | |
| | |
Retail Branding and Information Solutions
| | |
383.9
| | | |
391.4
| | |
-2
|
%
| |
-2
|
%
| | | | | | | | | | | | |
| | |
Vancive Medical Technologies
| |
|
18.7
|
|
|
|
19.5
|
| |
-4
|
%
| |
-5
|
%
| | | | | | | | | | | | |
| |
Total net sales
| |
$
|
1,559.6
| | |
$
|
1,504.9
| | |
4
|
%
| |
3
|
%
| | | | | | | | | | | | |
| | | | |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| | | | | As Reported (GAAP) | | Adjusted Non-GAAP (b) |
| | | | | 3Q | | 3Q | | | | % of Sales | | 3Q | | 3Q | | | | % of Sales |
| | | | | 2014 | | 2013 | | % Change | | | 2014 | | | 2013 | | | 2014 | | 2013 | | % Change | | | 2014 | | | 2013 | |
| |
Operating income (loss) before interest and taxes, by segment:
| | | | | | | | | | | | | | | | | | | | |
| | |
Pressure-sensitive Materials
| |
$
|
116.6
| | |
$
|
111.7
| | | | |
10.1
|
%
| |
10.2
|
%
| |
$
|
118.7
| | |
$
|
115.1
| | | | |
10.3
|
%
| |
10.5
|
%
|
| | |
Retail Branding and Information Solutions
| | |
20.6
| | | |
12.5
| | | | |
5.4
|
%
| |
3.2
|
%
| | |
25.8
| | | |
23.0
| | | | |
6.7
|
%
| |
5.9
|
%
|
| | |
Vancive Medical Technologies
| | |
(2.9
|
)
| | |
(0.7
|
)
| | | |
-15.5
|
%
| |
-3.6
|
%
| | |
(2.8
|
)
| | |
(0.6
|
)
| | | |
-15.0
|
%
| |
-3.1
|
%
|
| | |
Corporate expense
| |
|
(17.7
|
)
|
|
|
(32.7
|
)
| | | | | | | |
|
(17.3
|
)
|
|
|
(21.0
|
)
| | | | | | |
| |
Total operating income before interest and taxes / operating margin
| |
$
|
116.6
| | |
$
|
90.8
| | |
28
|
%
| |
7.5
|
%
| |
6.0
|
%
| |
$
|
124.4
| | |
$
|
116.5
| | |
7
|
%
| |
8.0
|
%
| |
7.7
|
%
|
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Interest expense
| |
$
|
15.4
| | |
$
|
16.0
| | | | | | | | |
$
|
15.4
| | |
$
|
16.0
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Income from continuing operations before taxes
| |
$
|
101.2
| | |
$
|
74.8
| | |
35
|
%
| |
6.5
|
%
| |
5.0
|
%
| |
$
|
109.0
| | |
$
|
100.5
| | |
8
|
%
| |
7.0
|
%
| |
6.7
|
%
|
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Provision for income taxes
| |
$
|
36.2
| | |
$
|
12.8
| | | | | | | | |
$
|
36.0
| | |
$
|
31.5
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Income from continuing operations
| |
$
|
65.0
| | |
$
|
62.0
| | |
5
|
%
| |
4.2
|
%
| |
4.1
|
%
| |
$
|
73.0
| | |
$
|
69.0
| | |
6
|
%
| |
4.7
|
%
| |
4.6
|
%
|
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Loss from discontinued operations, net of tax
| | |
($0.7
|
)
| | |
($15.5
|
)
| |
n/m
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Net income
| |
$
|
64.3
| | |
$
|
46.5
| | |
38
|
%
| |
4.1
|
%
| |
3.1
|
%
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Net income (loss) per common share, assuming dilution:
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Continuing operations
| |
$
|
0.68
| | |
$
|
0.62
| | |
10
|
%
| | | | | |
$
|
0.77
| | |
$
|
0.69
| | |
12
|
%
| | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Discontinued operations
| | |
---
| | | |
($0.15
|
)
| |
n/m
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
Total Company
| |
$
|
0.68
| | |
$
|
0.47
| | |
45
|
%
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | 2014 | | | | 2013 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| | 3Q Free Cash Flow from Continuing Operations (c) | |
$
|
152.9
| | |
$
|
58.1
| | | | | | | |
| | YTD Free Cash Flow from Continuing Operations (c) | |
$
|
82.1
| | |
$
|
105.2
| | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Percentage change in sales excluding the estimated impact of
currency translation, product line exits, acquisitions and
divestitures.
|
| |
(b)
| |
Excludes restructuring costs and other items (see accompanying
schedules A-2 to A-4 for reconciliation to GAAP financial measures).
|
| |
(c)
| |
Free cash flow refers to cash flow from operations, less payments
for property, plant and equipment, software and other deferred
charges, plus proceeds from sales of property, plant and
equipment, plus (minus) net proceeds from sales (purchases) of
investments, plus discretionary contributions to pension plans and
charitable contribution to Avery Dennison Foundation utilizing
proceeds from divestitures. Free cash flow excludes uses of cash
that do not directly or immediately support the underlying
business, such as discretionary debt reductions, dividends, share
repurchases, and certain effects of acquisitions and divestitures
(e.g., cash flow from discontinued operations, taxes, and
transaction costs).
|
| | | |
|
|
| | |
| |
| A-1 |
AVERY DENNISON | | | |
PRELIMINARY CONSOLIDATED STATEMENTS OF INCOME | | | |
(In millions, except per share amounts) | | | |
|
| | |
| | |
| | |
| | | | | |
| | | | | | (UNAUDITED) |
| | | | | | | | | | | | | | |
|
| | | | | | Three Months Ended |
| Nine Months Ended |
| | | | | | | | | | | | | | |
|
| | | | | | Sep. 27, 2014 | | | Sep. 28, 2013 | | | Sep. 27, 2014 | | | Sep. 28, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Net sales
| | |
$
|
1,559.6
| | |
$
|
1,504.9
| | |
$
|
4,725.5
| | |
$
|
4,556.1
| |
| | | | | | | | | | | | | | |
|
Cost of products sold
| | |
1,158.9
| | | |
1,102.7
| | | |
3,489.4
| | | |
3,334.7
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Gross profit
| | | |
400.7
| | | |
402.2
| | | |
1,236.1
| | | |
1,221.4
| |
| | | | | | | | | | | | | | |
|
Marketing, general & administrative expense
| | |
276.3
| | | |
285.7
| | | |
870.0
| | | |
880.1
| |
| | | | | | | | | | | | | | |
|
Interest expense
| | |
15.4
| | | |
16.0
| | | |
46.4
| | | |
43.0
| |
| | | | | | | | | | | | | | |
|
Other expense, net (1) | | |
7.8
| | | |
25.7
| | | |
53.6
| | | |
32.9
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Income from continuing operations before taxes
| | |
101.2
| | | |
74.8
| | | |
266.1
| | | |
265.4
| |
| | | | | | | | | | | | | | |
|
Provision for income taxes
| | |
36.2
| | | |
12.8
| | | |
85.1
| | | |
65.8
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Income from continuing operations
| | |
65.0
| | | |
62.0
| | | |
181.0
| | | |
199.6
| |
| | | | | | | | | | | | | | |
|
Loss from discontinued operations, net of tax
| | |
(0.7
|
)
| | |
(15.5
|
)
| | |
(3.0
|
)
| | |
(26.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Net income | | |
$
|
64.3
| | |
$
|
46.5
| | |
$
|
178.0
| | |
$
|
173.1
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Per share amounts: | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
Net income (loss) per common share, assuming dilution
| | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| |
Continuing operations
| |
$
|
0.68
| | |
$
|
0.62
| | |
$
|
1.87
| | |
$
|
1.98
| |
| | | | | | | | | | | | | | |
|
| |
Discontinued operations
| | |
---
| | | |
(0.15
|
)
| | |
(0.03
|
)
| | |
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Net income per common share, assuming dilution
| |
$
|
0.68
| | |
$
|
0.47
| | |
$
|
1.84
| | |
$
|
1.72
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Average common shares outstanding, assuming dilution
|
|
|
95.2
|
|
|
|
99.6
|
|
|
|
96.6
|
|
|
|
100.7
|
|
(1) |
|
|
"Other expense, net" for the third quarter of 2014 includes
severance and related costs of $5.1, asset impairment and lease
cancellation charges of $1.6, and indefinite-lived intangible
asset impairment charge of $3, partially offset by gain on sale of
assets of $1.9.
|
| | | | |
| | | |
"Other expense, net" for the third quarter of 2013 includes
severance and related costs of $8.7, asset impairment, lease and
other contract cancellation charges of $8, charitable contribution
to Avery Dennison Foundation of $10, and certain transaction costs
of $1.1, partially offset by gain from curtailment of pension
obligation of $1.6, and gain on sale of assets of $.5.
|
| | | |
|
| | | |
"Other expense, net" 2014 YTD includes severance and related costs
of $48, asset impairment and lease cancellation charges of $4.5,
indefinite-lived intangible asset impairment charge of $3, and
loss from curtailment of pension obligation of $.6, partially
offset by gains on sales of assets of $2.5.
|
| | | |
|
| | | |
"Other expense, net" 2013 YTD includes severance and related costs
of $20.9, asset impairment, lease and other contract cancellation
charges of $11.7, charitable contribution to Avery Dennison
Foundation of $10, legal settlement of $2.5, and certain
transaction costs of $2.1, partially offset by gains on sales of
assets of $12.7, and gain from curtailment of pension obligation
of $1.6.
|
| | | |
|
|
A-2 |
|
|
Reconciliation of Non-GAAP Financial Measures in Accordance with
SEC Regulations G and S-K |
|
We report financial results in conformity with accounting principles
generally accepted in the United States of America, or GAAP, and
also communicate with investors using certain non-GAAP financial
measures. These non-GAAP financial measures are not in accordance
with, nor are they a substitute for or superior to, the comparable
GAAP financial measures. These non-GAAP financial measures are
intended to supplement presentation of our financial results that
are prepared in accordance with GAAP. Based upon feedback from
investors and financial analysts, we believe that supplemental
non-GAAP financial measures provide information that is useful to
the assessment of our performance and operating trends, as well as
liquidity.
|
|
Our non-GAAP financial measures exclude the impact of certain
events, activities, or strategic decisions. The accounting effects
of these events, activities or decisions, which are included in
the GAAP financial measures, may make it difficult to assess our
underlying performance in a single period. By excluding the
accounting effects, both positive and negative, of certain items
(e.g., restructuring costs, asset impairments, legal settlements,
certain effects of strategic transactions and related costs,
losses from debt extinguishments, losses from curtailment and
settlement of pension obligations, gains or losses on sale of
certain assets, and other items), we believe that we are providing
meaningful supplemental information to facilitate an understanding
of our core operating results and liquidity measures. These
non-GAAP financial measures are used internally to evaluate trends
in our underlying performance, as well as to facilitate comparison
to the results of competitors for a single period. While some of
the items we exclude from GAAP financial measures recur, they tend
to be disparate in amount, frequency, or timing.
|
|
We use the following non-GAAP financial measures in the accompanying
news release and presentation:
|
|
Organic sales change refers to the increase or decrease in
sales excluding the estimated impact of currency translation,
product line exits, acquisitions and divestitures, and, where
applicable, the extra week in the fiscal year.
|
|
Adjusted operating margin refers to income from continuing
operations before interest expense and taxes, excluding
restructuring costs and other items, as a percentage of sales.
|
|
Adjusted tax rate refers to the anticipated full year GAAP
tax rate adjusted for certain events.
|
|
Adjusted income from continuing operations refers to reported
income from continuing operations adjusted for tax-effected
restructuring costs and other items.
|
|
Adjusted EPS refers to reported income from continuing
operations per common share, assuming dilution, adjusted for
tax-effected restructuring costs and other items.
|
|
Free cash flow refers to cash flow from operations, less
payments for property, plant and equipment, software and other
deferred charges, plus proceeds from sales of property, plant and
equipment, plus (minus) net proceeds from sales (purchases) of
investments, plus discretionary contributions to pension plans and
charitable contribution to Avery Dennison Foundation utilizing
proceeds from divestitures. Free cash flow excludes uses of cash
that do not directly or immediately support the underlying business,
such as discretionary debt reductions, dividends, share repurchases,
and certain effects of acquisitions and divestitures (e.g., cash
flow from discontinued operations, taxes, and transaction costs).
|
|
The reconciliations set forth below and in the accompanying
presentation are provided in accordance with Regulations G and S-K
and reconcile our non-GAAP financial measures with the most directly
comparable GAAP financial measures.
|
|
|
A-3 |
|
|
AVERY DENNISON |
PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
(In millions, except % and per share amounts) |
|
| | |
| | |
| | |
| | |
| | |
| | | | | | (UNAUDITED) |
| | | | | | | | | | | | | | |
|
| | | | | | Three Months Ended |
|
| Nine Months Ended |
| | | | | | | | | | | | | | |
|
| | | | | | Sep. 27, 2014 | | | Sep. 28, 2013 | | | Sep. 27, 2014 | | | Sep. 28, 2013 |
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
| | | | | | | | | | | | | | |
|
Reconciliation of Operating Margins: | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
Net sales
| | |
$
|
1,559.6
| | |
$
|
1,504.9
| | |
$
|
4,725.5
| | |
$
|
4,556.1
| |
| | | | | |
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Income from continuing operations before taxes
| |
$
|
101.2
| | |
$
|
74.8
| | |
$
|
266.1
| | |
$
|
265.4
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Income from continuing operations before taxes as a percentage of
sales
| | | 6.5 | % | | | 5.0 | % | | | 5.6 | % | | | 5.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
|
Adjustment:
| | | | | | | | | | | | | |
|
Interest expense
| |
$
|
15.4
| | |
$
|
16.0
| | |
$
|
46.4
| | |
$
|
43.0
| |
| | | | | |
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Operating income from continuing operations before interest expense
and taxes
| |
$
|
116.6
| | |
$
|
90.8
| | |
$
|
312.5
| | |
$
|
308.4
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Operating Margins | | | 7.5 | % | | | 6.0 | % | | | 6.6 | % | | | 6.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
Income from continuing operations before taxes
| |
$
|
101.2
| | |
$
|
74.8
| | |
$
|
266.1
| | |
$
|
265.4
| |
| | | | | | | | | | | | | | |
|
|
Adjustments:
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
|
Restructuring costs:
| | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
|
Severance and related costs
| | |
5.1
| | | |
8.7
| | | |
48.0
| | | |
20.9
| |
| | | | | |
| | | | | | | | | | |
| |
Asset impairment, lease and other contract cancellation charges
| | |
1.6
| | | |
8.0
| | | |
4.5
| | | |
11.7
| |
| | | | | | | | | | | | | | |
|
|
Other items (1) | | |
1.1
| | | |
9.0
| | | |
1.1
| | | |
0.3
| |
| | | | | | | | | | | | | | |
|
|
Interest expense
| | |
15.4
| | | |
16.0
| | | |
46.4
| | | |
43.0
| |
| | | | | |
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Adjusted operating income from continuing operations before interest
expense and taxes (non-GAAP)
| |
$
|
124.4
| | |
$
|
116.5
| | |
$
|
366.1
| | |
$
|
341.3
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Adjusted Operating Margins (non-GAAP) | | | 8.0 | % | | | 7.7 | % | | | 7.7 | % | | | 7.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
Reconciliation of GAAP to Non-GAAP Income from Continuing
Operations: | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
As reported income from continuing operations
| |
$
|
65.0
| | |
$
|
62.0
| | |
$
|
181.0
| | |
$
|
199.6
| |
| | | | | | | | | | | | | | |
|
|
Non-GAAP adjustments, net of tax:
| | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
|
Restructuring costs and other items (2) | | |
8.0
| | | |
7.0
| | | |
33.2
| | | |
0.9
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
Adjusted Non-GAAP Income from Continuing Operations |
|
$
|
73.0
|
|
|
$
|
69.0
|
|
|
$
|
214.2
|
|
|
$
|
200.5
|
|
| | | | | | | | | | | | | | | |
|
|
| | |
| | |
| | |
| | |
| | | | | | | | | | | | A-3 (continued) |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
AVERY DENNISON | | | | | | | | | | | | |
PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | | | | | | | | | | | |
(In millions, except % and per share amounts) | | | | | | | | | | | | |
|
|
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | (UNAUDITED) |
| | | | | | | | | | | | | | | |
|
| | | | | | | Three Months Ended | | | Nine Months Ended |
| | | | | | | | | | | | | | | |
|
| | | | | | | Sep. 27, 2014 | | | Sep. 28, 2013 | | | Sep. 27, 2014 | | | Sep. 28, 2013 |
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
| | | | | | | | | | | | | | | |
|
Reconciliation of GAAP to Non-GAAP Income per Common Share from
Continuing Operations: | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
As reported income per common share from continuing operations,
assuming dilution
| |
$
|
0.68
| | |
$
|
0.62
| | |
$
|
1.87
| | |
$
|
1.98
| |
| | | | | | | | | | | | | | | |
|
| |
Non-GAAP adjustments per common share, net of tax:
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
| |
Restructuring costs and other items (2) | | |
0.09
| | | |
0.07
| | | |
0.35
| | | |
0.01
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | |
Adjusted Non-GAAP Income per Common Share from Continuing
Operations, assuming dilution | |
$
|
0.77
| | |
$
|
0.69
| | |
$
|
2.22
| | |
$
|
1.99
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
Average common shares outstanding, assuming dilution
|
|
|
95.2
|
|
|
|
99.6
|
|
|
|
96.6
|
|
|
|
100.7
|
|
| | | | | | | | | | | | | | | |
|
(1) | |
Includes indefinite-lived intangible asset impairment charge, loss
from curtailment of pension obligation, charitable contribution to
Avery Dennison Foundation, legal settlement, certain transaction
costs, gains on sales of assets, and gain from curtailment of
pension obligation.
|
| | | | | | | | | | | | | | | |
|
(2) | |
Reflects the impact of the adjusted tax rate applied to results from
continuing operations, as well as restructuring costs and other
items, tax-effected at the adjusted tax rate.
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | (UNAUDITED) |
| | | | | | | | | | | | | | | |
|
| | | | | | | Three Months Ended | | | Nine Months Ended |
| | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
| Sep. 27, 2014 |
|
| Sep. 28, 2013 | | | Sep. 27, 2014 |
|
| Sep. 28, 2013 |
| | | | | | | | | | | | | | | |
|
Reconciliation of GAAP to Non-GAAP Free Cash Flow: | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
Net cash provided by operating activities
| |
$
|
190.4
| | |
$
|
49.0
| | |
$
|
200.2
| | |
$
|
95.7
| |
| | | | | | | | | | | | | | | |
|
Purchases of property, plant and equipment
| | |
(33.3
|
)
| | |
(29.2
|
)
| | |
(100.8
|
)
| | |
(79.1
|
)
|
| | | | | | | | | | | | | | | |
|
Purchases of software and other deferred charges
| | |
(7.6
|
)
| | |
(10.0
|
)
| | |
(22.0
|
)
| | |
(34.6
|
)
|
| | | | | | | | | | | | | | | |
|
Proceeds from sales of property, plant and equipment
| | |
3.5
| | | |
5.0
| | | |
4.1
| | | |
30.8
| |
| | | | | | | | | | | | | | | |
|
(Purchases) sales of investments, net
| | |
(0.1
|
)
| | |
0.5
| | | |
---
| | | |
0.6
| |
| | | | | | | | | | | | | | | |
|
Plus: charitable contribution to Avery Dennison Foundation utilizing
proceeds from divestitures
| | |
---
| | | |
10.0
| | | |
---
| | | |
10.0
| |
| | | | | | | | | | | | | | | |
|
Plus: divestiture-related payments and free cash outflow from
discontinued operations
| | |
---
| | | |
32.8
| | | |
0.6
| | | |
81.8
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | |
|
Free Cash Flow - Continuing Operations |
|
$
|
152.9
|
|
|
$
|
58.1
|
|
|
$
|
82.1
|
|
|
$
|
105.2
|
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
|
| |
| |
|
| |
| |
| | | | | | | | | | | | | | A-4 |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
AVERY DENNISON |
PRELIMINARY SUPPLEMENTARY INFORMATION |
(In millions, except %) |
(UNAUDITED) |
| | | | | | | | | | | | | |
|
| | Third Quarter Ended |
| | | | | | | | | | | | | |
|
| |
NET SALES
| | |
OPERATING INCOME
| | |
OPERATING MARGINS
|
| |
|
2014
|
|
|
2013
| | |
|
2014 (1) |
|
|
|
2013 (2) |
| | |
2014
|
|
|
2013
|
|
| | | | | | | | | | | | | |
|
Pressure-sensitive Materials
| |
$
|
1,157.0
| |
$
|
1,094.0
| | |
$
|
116.6
| | |
$
|
111.7
| | | |
10.1
|
%
| |
10.2
|
%
|
Retail Branding and Information Solutions
| | |
383.9
| | |
391.4
| | | |
20.6
| | | |
12.5
| | | |
5.4
|
%
| |
3.2
|
%
|
Vancive Medical Technologies
| | |
18.7
| | |
19.5
| | | |
(2.9
|
)
| | |
(0.7
|
)
| | |
(15.5
|
%)
| |
(3.6
|
%)
|
Corporate Expense
| |
|
N/A
|
|
|
N/A
| | |
|
(17.7
|
)
|
|
|
(32.7
|
)
| | |
N/A
|
|
N/A
|
| | | | | | | | | | | | | |
|
TOTAL FROM CONTINUING OPERATIONS
| |
$
|
1,559.6
|
|
$
|
1,504.9
| | |
$
|
116.6
|
|
|
$
|
90.8
|
| | |
7.5
|
%
|
|
6.0
|
%
|
| | | | | | | | | | | | | |
|
(1) Operating income for the third quarter of 2014 includes
severance and related costs of $5.1, asset impairment and lease
cancellation charges of $1.6, and indefinite-lived intangible asset
impairment charge of $3, partially offset by gain on sale of assets
of $1.9. Of the total $7.8, the Pressure-sensitive Materials segment
recorded $2.1, the Retail Branding and Information Solutions segment
recorded $5.2, the Vancive Medical Technologies segment recorded
$.1, and Corporate recorded $.4.
|
| | | | | | | | | | | | | |
|
(2) Operating income for the third quarter of 2013 includes
severance and related costs of $8.7, asset impairment, lease and
other contract cancellation charges of $8, charitable contribution
to Avery Dennison Foundation of $10, and certain transaction costs
of $1.1, partially offset by gain from curtailment of pension
obligation of $1.6, and gain on sale of assets of $.5. Of the total
$25.7, the Pressure-sensitive Materials segment recorded $3.4, the
Retail Branding and Information Solutions segment recorded $10.5,
the Vancive Medical Technologies segment recorded $.1, and Corporate
recorded $11.7.
|
| | | | | | | | | | | | | |
|
RECONCILIATION OF GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION |
| | | | | | | | | | | | | |
|
| | | | | | | Third Quarter Ended |
| | | | | | |
OPERATING INCOME
| | |
OPERATING MARGINS
|
| | | | | | | | | | | | | |
|
| | | | | | |
|
2014
|
|
|
|
2013
|
| | |
2014
|
|
|
2013
|
|
Pressure-sensitive Materials | | | | | | | | | | | | | | |
Operating income and margins, as reported | | | | | | | $ | 116.6 | | | $ | 111.7 | | | | 10.1 | % | | 10.2 | % |
Adjustments:
| | | | | | | | | | | | | | |
Restructuring costs:
| | | | | | | | | | | | | | |
Severance and related costs
| | | | | | | |
2.1
| | | |
1.3
| | | |
0.2
|
%
| |
0.1
|
%
|
Asset impairment and other contract cancellation charges
| | | | | | |
|
---
|
|
|
|
2.1
|
| | |
---
|
|
|
0.2
|
%
|
Adjusted operating income and margins (non-GAAP) | | | | | | | $ | 118.7 |
|
| $ | 115.1 |
| | | 10.3 | % |
| 10.5 | % |
| | | | | | | | | | | | | |
|
Retail Branding and Information Solutions | | | | | | | | | | | | | | |
Operating income and margins, as reported | | | | | | | $ | 20.6 | | | $ | 12.5 | | | | 5.4 | % | | 3.2 | % |
Adjustments:
| | | | | | | | | | | | | | |
Restructuring costs:
| | | | | | | | | | | | | | |
Severance and related costs
| | | | | | | |
2.5
| | | |
7.4
| | | |
0.6
|
%
| |
1.9
|
%
|
Asset impairment, lease and other contract cancellation charges
| | | | | | | |
1.6
| | | |
5.2
| | | |
0.4
|
%
| |
1.3
|
%
|
Indefinite-lived intangible asset impairment charge
| | | | | | | |
3.0
| | | |
---
| | | |
0.8
|
%
| |
---
| |
Gain on sales of assets
| | | | | | | |
(1.9
|
)
| | |
(0.5
|
)
| | |
(0.5
|
%)
| |
(0.1
|
%)
|
Gain from curtailment of pension obligation
| | | | | | |
|
---
|
|
|
|
(1.6
|
)
| | |
---
|
|
|
(0.4
|
%)
|
Adjusted operating income and margins (non-GAAP) | | | | | | | $ | 25.8 |
|
| $ | 23.0 |
| | | 6.7 | % |
| 5.9 | % |
| | | | | | | | | | | | | |
|
Vancive Medical Technologies | | | | | | | | | | | | | | |
Operating loss and margins, as reported | | | | | | | $ | (2.9 | ) | | $ | (0.7 | ) | | | (15.5 | %) | | (3.6 | %) |
Adjustments:
| | | | | | | | | | | | | | |
Restructuring costs:
| | | | | | | | | | | | | | |
Severance and related costs
| | | | | | | |
0.1
| | | |
---
| | | |
0.5
|
%
| |
---
| |
Asset impairment charges
| | | | | | |
|
---
|
|
|
|
0.1
|
| | |
---
|
|
|
0.5
|
%
|
Adjusted operating loss and margins (non-GAAP) | | | | | | | $ | (2.8 | ) |
| $ | (0.6 | ) | | | (15.0 | %) |
| (3.1 | %) |
|
| |
| |
|
| |
| |
|
| |
| |
| | | | | | | | | | | | | | A-5 |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
AVERY DENNISON |
PRELIMINARY SUPPLEMENTARY INFORMATION |
(In millions, except %) |
(UNAUDITED) |
| | | | | | | | | | | | | |
|
| | Nine Months Year-to-Date |
| | | | | | | | | | | | | |
|
| |
NET SALES
| | |
OPERATING INCOME
| | |
OPERATING MARGINS
|
| |
|
2014
|
|
|
2013
| | |
|
2014 (1) |
|
|
2013 (2) | | |
2014
|
|
|
2013
|
|
| | | | | | | | | | | | | |
|
Pressure-sensitive Materials
| |
$
|
3,481.4
| |
$
|
3,305.9
| | |
$
|
315.1
| | |
$
|
334.1
| | | |
9.1
|
%
| |
10.1
|
%
|
Retail Branding and Information Solutions
| | |
1,186.0
| | |
1,193.7
| | | |
65.5
| | | |
50.7
| | | |
5.5
|
%
| |
4.2
|
%
|
Vancive Medical Technologies
| | |
58.1
| | |
56.5
| | | |
(7.2
|
)
| | |
(6.2
|
)
| | |
(12.4
|
%)
| |
(11.0
|
%)
|
Corporate Expense
| |
|
N/A
|
|
|
N/A
| | |
|
(60.9
|
)
|
|
|
(70.2
|
)
| | |
N/A
|
|
|
N/A
|
|
| | | | | | | | | | | | | |
|
TOTAL FROM CONTINUING OPERATIONS
| |
$
|
4,725.5
|
|
$
|
4,556.1
| | |
$
|
312.5
|
|
|
$
|
308.4
|
| | |
6.6
|
%
|
|
6.8
|
%
|
| | | | | | | | | | | | | |
|
(1) Operating income for 2014 includes severance and related costs
of $48, asset impairment and lease cancellation charges of $4.5,
indefinite-lived intangible asset impairment charge of $3, and loss
from curtailment of pension obligation of $.6, partially offset by
gains on sales of assets of $2.5. Of the total $53.6, the
Pressure-sensitive Materials segment recorded $36.3, the Retail
Branding and Information Solutions segment recorded $16.8, the
Vancive Medical Technologies segment recorded $.1, and Corporate
recorded $.4.
|
| | | | | | | | | | | | | |
|
(2) Operating income for 2013 includes severance and related costs
of $20.9, asset impairment, lease and other contract cancellation
charges of $11.7, charitable contribution to Avery Dennison
Foundation of $10, legal settlement of $2.5, and certain transaction
costs of $2.1, partially offset by gains on sales of assets of
$12.7, and gain from curtailment of pension obligation of $1.6. Of
the total $32.9, the Pressure-sensitive Materials segment recorded
$8.7, the Retail Branding and Information Solutions segment recorded
$19.5, the Vancive Medical Technologies segment recorded $.1, and
Corporate recorded $4.6.
|
| | | | | | | | | | | | | |
|
RECONCILIATION OF GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION |
| | | | | | | | | | | | | |
|
| | | | | | | Nine Months Year-to-Date |
| | | | | | |
OPERATING INCOME
| |
|
OPERATING MARGINS
|
| | | | | | | | | | | | | |
|
| | | | | | |
|
2014
|
|
|
|
2013
|
| | |
2014
|
|
|
2013
|
|
Pressure-sensitive Materials | | | | | | | | | | | | | | |
Operating income and margins, as reported | | | | | | | $ | 315.1 | | | $ | 334.1 | | | | 9.1 | % | | 10.1 | % |
Adjustments:
| | | | | | | | | | | | | | |
Restructuring costs:
| | | | | | | | | | | | | | |
Severance and related costs
| | | | | | | |
34.9
| | | |
5.4
| | | |
1.0
|
%
| |
0.2
|
%
|
Asset impairment and other contract cancellation charges
| | | | | | | |
0.8
| | | |
3.3
| | | |
---
|
| |
0.1
|
%
|
Loss from curtailment of pension obligation
| | | | | | |
|
0.6
|
|
|
|
---
|
| | |
---
|
|
|
---
|
|
Adjusted operating income and margins (non-GAAP) | | | | | | | $ | 351.4 |
|
| $ | 342.8 |
| | | 10.1 | % |
| 10.4 | % |
| | | | | | | | | | | | | |
|
Retail Branding and Information Solutions | | | | | | | | | | | | | | |
Operating income and margins, as reported | | | | | | | $ | 65.5 | | | $ | 50.7 | | | | 5.5 | % | | 4.2 | % |
Adjustments:
| | | | | | | | | | | | | | |
Restructuring costs:
| | | | | | | | | | | | | | |
Severance and related costs
| | | | | | | |
12.6
| | | |
15.2
| | | |
1.1
|
%
| |
1.3
|
%
|
Asset impairment, lease and other contract cancellation charges
| | | | | | | |
3.7
| | | |
7.7
| | | |
0.3
|
%
| |
0.7
|
%
|
Indefinite-lived intangible asset impairment charge
| | | | | | | |
3.0
| | | |
---
| | | |
0.2
|
%
| |
---
| |
Gain on sales of assets
| | | | | | | |
(2.5
|
)
| | |
(1.8
|
)
| | |
(0.2
|
%)
| |
(0.2
|
%)
|
Gain from curtailment of pension obligation
| | | | | | |
|
---
|
|
|
|
(1.6
|
)
| | |
---
|
|
|
(0.1
|
%)
|
Adjusted operating income and margins (non-GAAP) | | | | | | | $ | 82.3 |
|
| $ | 70.2 |
| | | 6.9 | % |
| 5.9 | % |
| | | | | | | | | | | | | |
|
Vancive Medical Technologies | | | | | | | | | | | | | | |
Operating loss and margins, as reported | | | | | | | $ | (7.2 | ) | | $ | (6.2 | ) | | | (12.4 | %) | | (11.0 | %) |
Adjustments:
| | | | | | | | | | | | | | |
Restructuring costs:
| | | | | | | | | | | | | | |
Severance and related costs
| | | | | | | |
0.1
| | | |
---
| | | |
0.2
|
%
| |
---
| |
Asset impairment charges
| | | | | | |
|
---
|
|
|
|
0.1
|
| | |
---
|
|
|
0.2
|
%
|
Adjusted operating loss and margins (non-GAAP) | | | | | | | $ | (7.1 | ) |
| $ | (6.1 | ) | | | (12.2 | %) |
| (10.8 | %) |
| | | | | | | | | | | | | | | | | | | |
|
|
| | | | |
| | |
|
|
| | |
| | | | | | | | | | |
| | A-6 |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
AVERY DENNISON |
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS |
(In millions) |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
| | | | | | | | (UNAUDITED) |
| | | | | | | | | | | | | |
|
ASSETS | | |
| | | Sep. 27, 2014 | | | Sep. 28, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
Current assets:
| | | | | | | | | | | | |
|
Cash and cash equivalents
| | | | |
$
|
195.6
| | | | |
$
|
309.6
| |
|
Trade accounts receivable, net
| | | | | |
1,087.6
| | | | | |
1,055.5
| |
|
Inventories, net
| | | | | | |
547.2
| | | | | |
531.3
| |
|
Assets held for sale
| | | | | | |
0.9
| | | | | |
6.3
| |
|
Other current assets
| | | | | | |
238.5
| | | | | |
262.2
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
| | |
Total current assets
| | | | |
2,069.8
| | | | | |
2,164.9
| |
| | | | | | | | | | | | | |
|
Property, plant and equipment, net
| | | | | |
884.1
| | | | | |
912.6
| |
Goodwill
| | | | | | |
742.0
| | | | | |
754.5
| |
Other intangibles resulting from business acquisitions, net
| | | |
73.9
| | | | | |
103.0
| |
Non-current deferred income taxes
| | | | | |
238.8
| | | | | |
322.8
| |
Other assets
| | | | | | |
484.9
| | | | | |
475.0
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
| | | | | | | |
$
|
4,493.5
| | | | |
$
|
4,732.8
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
Current liabilities:
| | | | | | | | | | | | |
|
Short-term borrowings and current portion of long-term debt and
capital leases
| |
$
|
167.1
| | | | |
$
|
114.8
| |
|
Accounts payable
| | | | | | |
867.0
| | | | | |
833.4
| |
|
Other current liabilities
| | | | | | |
598.8
| | | | | |
625.2
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
| | |
Total current liabilities
| | | |
1,632.9
| | | | | |
1,573.4
| |
| | | | | | | | | | | | | |
|
Long-term debt and capital leases
| | | | | |
945.1
| | | | | |
950.9
| |
Other long-term liabilities
| | | | | | |
608.7
| | | | | |
634.6
| |
Shareholders' equity:
| | | | | | | | | | | | |
|
Common stock
| | | | | | |
124.1
| | | | | |
124.1
| |
|
Capital in excess of par value
| | | | | |
818.6
| | | | | |
804.8
| |
|
Retained earnings
| | | | | | |
2,096.2
| | | | | |
1,993.6
| |
|
Treasury stock at cost
| | | | | | |
(1,378.5
|
)
| | | | |
(1,121.0
|
)
|
|
Accumulated other comprehensive loss
| | | | |
(353.6
|
)
| | | | |
(227.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
| | |
Total shareholders' equity
| | | |
1,306.8
| | | | | |
1,573.9
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
$
|
4,493.5
|
|
|
|
|
$
|
4,732.8
|
|
| | | | | | | | | | | | | | | |
|
|
| | | | |
| | |
| | | | |
|
| | A-7 |
| | | | | | | |
|
| | | | | | | |
|
AVERY DENNISON |
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In millions) |
| | | | | | | | | | | |
| | | | | | | (UNAUDITED) |
| | | | | | | | | | |
|
| | | | | | | Nine Months Ended |
| | | | | | | | | | |
|
| | | | | |
| | Sep. 27, 2014 |
| | Sep. 28, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Operating Activities: | | | | | | | | |
| | | | | | | | | | |
|
Net income
| | | | |
$
|
178.0
| | |
$
|
173.1
| |
| | | | | | | | | | |
|
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | | |
| | | | | | | | | | |
|
|
Depreciation
| | | | | |
99.0
| | | |
104.9
| |
| | | | | | | | | | |
|
|
Amortization
| | | | | |
49.5
| | | |
50.8
| |
| | | | | | | | | | |
|
|
Provision for doubtful accounts and sales returns
| |
14.8
| | | |
14.1
| |
| | | | | | | | | | |
|
|
Loss (gain) on sale of businesses
| | |
3.0
| | | |
(52.2
|
)
|
| | | | | | | | | | |
|
|
Indefinite-lived intangible asset impairment charge
| |
3.0
| | | |
---
| |
| | | | | | | | | | |
|
|
Net losses (gains) from asset impairments and sales/disposals of
assets
| |
3.3
| | | |
(5.6
|
)
|
| | | | | | | | | | |
|
|
Stock-based compensation
| | |
22.1
| | | |
25.4
| |
| | | | | | | | | | |
|
|
Other non-cash expense and loss
| | |
32.1
| | | |
40.2
| |
| | | | | | | | | | |
|
|
Other non-cash income and gain
| | |
---
| | | |
(12.9
|
)
|
| | | | | | | | | | |
|
Changes in assets and liabilities and other adjustments
| |
(204.6
|
)
| | |
(242.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Net cash provided by operating activities
| | |
200.2
| | | |
95.7
| |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Investing Activities: | | | | | | | | |
| | | | | | | | | | |
|
Purchases of property, plant and equipment
| | |
(100.8
|
)
| | |
(79.1
|
)
|
| | | | | | | | | | |
|
Purchases of software and other deferred charges
| | |
(22.0
|
)
| | |
(34.6
|
)
|
| | | | | | | | | | |
|
Proceeds from sales of property, plant and equipment
| |
4.1
| | | |
30.8
| |
| | | | | | | | | | |
|
Sales of investments, net
| | |
---
| | | |
0.6
| |
| | | | | | | | | | |
|
Proceeds from sale of businesses, net of cash provided
| |
---
| | | |
484.0
| |
| | | | | | | | | | |
|
Other
| | | | | | |
---
| | | |
0.8
| |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Net cash (used in) provided by investing activities
| | |
(118.7
|
)
| | |
402.5
| |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Financing Activities: | | | | | | | | |
| | | | | | | | | | |
|
Net increase (decrease) in borrowings (maturities of 90 days or less)
| |
86.3
| | | |
(398.3
|
)
|
| | | | | | | | | | |
|
Additional borrowings (maturities longer than 90 days)
| |
---
| | | |
250.0
| |
| | | | | | | | | | |
|
Payments of debt (maturities longer than 90 days)
| | |
(1.1
|
)
| | |
(1.4
|
)
|
| | | | | | | | | | |
|
Dividends paid
| | | | | |
(93.4
|
)
| | |
(84.1
|
)
|
| | | | | | | | | | |
|
Share repurchases
| | | | |
(247.3
|
)
| | |
(223.8
|
)
|
| | | | | | | | | | |
|
Proceeds from exercises of stock options, net
| | |
22.6
| | | |
40.2
| |
| | | | | | | | | | |
|
Other
| | | | | | |
(2.4
|
)
| | |
(8.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Net cash used in financing activities
| | |
(235.3
|
)
| | |
(426.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Effect of foreign currency translation on cash balances
| |
(2.2
|
)
| | |
2.1
| |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
(Decrease) increase in cash and cash equivalents
| | |
(156.0
|
)
| | |
74.2
| |
| | | | | | | | | | |
|
Cash and cash equivalents, beginning of year
| | |
351.6
| | | |
235.4
| |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Cash and cash equivalents, end of period
|
|
$
|
195.6
|
|
|
$
|
309.6
|
|
Contacts:
Avery Dennison Corporation
Media Relations:
David Frail, (626)
304-2014
David.Frail@averydennison.com
or
Investor
Relations:
Eric M. Leeds, (626) 304-2029
investorcom@averydennison.com
Source: Avery Dennison Corporation
© 2024 Canjex Publishing Ltd. All rights reserved.