Corporate and Financial
Brunswick Reports EPS of $0.70 in First Quarter
LAKE FOREST, Ill., April 27 /PRNewswire-FirstCall/ -- Brunswick
Corporation (NYSE: BC) reported today net earnings of $67.4 million, or $0.70
per diluted share, for the first quarter of 2006, on sales of $1,458.0 million
and operating earnings of $87.2 million. Diluted earnings per share in 2006
include a $0.13 per-share benefit from tax-related items. For the year-ago
first quarter, the company reported net earnings of $94.6 million, or $0.96
per diluted share, on sales of $1,401.1 million and operating earnings of
$99.1 million. Diluted earnings per share for 2005 included a $0.32 per
diluted share gain on the sale of securities.
In light of the company's previously announced decision to sell
substantially all of its Brunswick New Technologies (BNT) business unit, the
company will present its first quarter results excluding these businesses, as
well as the tax-related benefit and the gain on the sale of securities noted
above, as the company believes the pro forma (non-GAAP) numbers are more
representative of the financial performance of its ongoing operations. On
this basis, the company reported pro forma diluted earnings per share of $0.64
for the first quarter of 2006 compared with $0.63 for the year-ago first
quarter. Sales increased 5 percent to $1,413.3 million from $1,342.5 million
in the quarter, and operating earnings declined slightly to $98.2 million from
$98.8 million.
Commenting on the first quarter, Brunswick Chairman and Chief Executive
Officer Dustan E. McCoy said, "The 5 percent sales growth from ongoing
operations was driven primarily by contributions from boat companies acquired
subsequent to the first quarter last year, as well as increased sales from our
Bowling & Billiards and Fitness segments. Excluding the benefit of
acquisitions, sales were down slightly. The decline in operating earnings was
primarily due to lower production to reduce marine pipelines and the shift in
product mix to low-emission outboard engines, described below."
Boat Segment
The Brunswick Boat Group comprises the Boat segment and produces
fiberglass and aluminum boats and marine parts and accessories, as well as
offers dealer management systems. On a pro forma basis, the Boat segment
reported sales for the first quarter of $751.0 million, up 10 percent compared
with $680.7 million in the first quarter of 2005. Operating earnings were
$48.4 million, down from $49.1 million for the quarter, and operating margins
were 6.4 percent compared with 7.2 percent in the prior year.
"The sales gain for the segment was driven by acquisitions as organic
sales, which excludes boat brands that were not in our portfolio in the
year-ago quarter, fell by a little less than 1 percent. Marine retail was
down in the first quarter when compared with very robust demand in the first
quarter of 2005," McCoy said. "As a result, we placed tremendous focus on
managing the pipeline to ensure that we do not build up unnecessary inventory
at our dealers. Consequently, we reduced production levels in certain of our
brands to accomplish that. Pipeline inventories of boats totaled 31 weeks of
supply at quarter end, unchanged from the same date a year ago. The higher
mix of sales from acquired businesses, which have lower margins than our core
brands, as well as the impact of fixed-cost absorption from lower production,
led to the reduction in operating margins."
Marine Engine Segment
The Marine Engine segment, consisting of the Mercury Marine Group,
reported pro forma sales of $557.2 million in the first quarter of 2006, up 3
percent from $543.2 million in the year-ago first quarter. Operating earnings
in the first quarter declined to $44.9 million versus $52.0 million, and
operating margins declined to 8.1 percent compared with 9.6 percent for the
same quarter in 2005.
"During the quarter, segment sales benefited from increased sales of
sterndrive engines and parts and accessories in the United States, partially
offset by slightly lower outboard sales," McCoy said. "Operating earnings,
however, were affected by the outboard engine technology transition. As we
have previously disclosed, we discontinued selling traditional carbureted two-
stroke outboard engines in North America beginning July 1, 2005. Our current
product offerings of low-emission outboards now account for practically all of
our outboard product mix as we complete this technology transition.
Approximately 97 percent of our U.S. outboard sales in the first quarter of
2006 came from low-emission engines, up from 65 percent in the year-ago first
quarter. The lower margins on these products, along with the fixed-cost
absorption impact from lower production levels to maintain pipeline
inventories, are largely behind the decline in Marine Engine segment operating
earnings and margins. Operating earnings are expected to increase in the
second half of this year as we mark the anniversary of the transition date and
as we begin to realize more savings from our lower-cost manufacturing
facilities in Asia, at which we are currently ramping up production."
"The company's pipeline management efforts are paying off. We had 28
weeks of supply of engines in the pipeline at the end of the first quarter of
2006, down one week compared with the same time a year ago," McCoy noted. "We
will continue to manage our production to keep pipelines at healthy levels as
we move into the spring selling season."
Fitness Segment
The Fitness segment is comprised of the Life Fitness Division, which
manufactures and sells Life Fitness, Hammer Strength and ParaBody fitness
equipment. Segment sales in the first quarter of 2006 on a pro forma basis
totaled $134.5 million, up 5 percent from $128.1 million in the year-ago
quarter. Segment operating earnings were up 39 percent for the first quarter
of 2006, totaling $8.9 million compared with $6.4 million for the year-ago
quarter, and operating margins were up 160 basis points to 6.6 percent as
compared with 5.0 percent a year ago.
"Margin and earnings improvement remain the story at Life Fitness," McCoy
said. "Life Fitness has achieved this result through hard work, diligence and
steadily improving productivity and operating results through manufacturing
and supply chain efficiencies."
Bowling & Billiards Segment
The Bowling & Billiards segment is comprised of the Brunswick retail
bowling centers; bowling equipment and products; and billiards, Air Hockey and
foosball tables. Segment sales in the first quarter of 2006 totaled $114.7
million, up 3 percent compared with $111.5 million in the year-ago quarter.
Operating earnings advanced 15 percent, totaling $12.8 million in the first
quarter versus $11.1 million from the year-ago quarter. Operating margins were
up 120 basis points to 11.2 percent as compared with 10.0 percent in 2005.
"We saw sales increases across the board in our Bowling & Billiards
segment during the quarter," McCoy said. "Our expanded Brunswick Zone retail
bowling centers continue to perform at very high levels, growing at rates
higher than our traditional centers. Operating margins benefited from lower
litigation expense, which was partially offset by costs associated with the
transition of bowling ball manufacturing from Michigan to Mexico."
Looking Ahead
"While we are just entering the boat-selling season, given the continued
weakness we saw at retail in the first quarter, we believe retail demand
overall for the full year will be flat to down slightly," McCoy said. "In the
second quarter, we estimate our marine operating earnings will be down when
compared with the strong 18 percent increase we reported in the second quarter
of 2005. This is primarily due to our decision to make additional production
cuts in the quarter in select products to continue to manage pipeline
inventories. This will contribute to lower operating margins for the quarter
and the full year due to the impact of lower fixed-cost absorption. Margins
will also be affected by the low-emission outboard transition. When we factor
in the decision to sell substantially all of our BNT business unit, total
corporate sales for the year are estimated to be up in the low- to mid-single
digits, compared with pro forma sales for 2005. Therefore, we are estimating
that diluted earnings per share for 2006 will be in the range of $3.00 to
$3.15. This is compared with pro forma EPS of $3.13 for 2005, which excludes
the gain on the sale of securities mentioned earlier, as well as tax-related
benefits. For the second quarter, earnings per diluted share are estimated in
the range of $0.90 to $0.97, as compared with $1.12 for the year-ago second
quarter."
Forward-Looking Statements
Certain statements in this press release are forward looking as defined in
the Private Securities Litigation Reform Act of 1995. These statements
involve certain risks and uncertainties that may cause actual results to
differ materially from expectations as of the date of this filing. These
risks include, but are not limited to: the effect of a weak economy and stock
market on consumer confidence and thus the demand for marine, fitness,
billiards and bowling equipment and products; competitive pricing pressures;
the success of new product introductions; the ability to maintain market share
in high-margin products; competition from new technologies; competition in the
consumer electronics markets; imports from Asia and increased competition from
Asian competitors; the ability to obtain component parts from suppliers; the
ability to maintain effective distribution; the financial strength of dealers,
distributors and independent boat builders; the ability to transition and ramp
up certain manufacturing operations within time and budgets allowed; the
ability to maintain product quality and service standards expected by our
customers; the ability to successfully manage pipeline inventories; the
success of global sourcing and supply chain initiatives; the ability to
successfully integrate acquisitions; the success of marketing and cost
management programs; the ability to develop product technologies that comply
with regulatory requirements; the ability to complete environmental
remediation efforts and resolve claims and litigation at the cost estimated;
the impact of weather conditions on demand for marine products and retail
bowling center revenues; shifts in currency exchange rates; adverse foreign
economic conditions; and the impact of interest rates and fuel prices on
demand for marine products. Additional factors are included in the company's
Annual Report on Form 10-K for 2005.
Use of Non-GAAP Financial Information
As noted above, certain information relating to the company's financial
results is presented in this news release on a pro forma (non-GAAP) basis, as
the company believes that presentation on this basis is more representative of
the financial performance of its ongoing operations. Results are presented on
both a GAAP and non-GAAP basis in the financial information that follows the
body of this release. The company said it will formally disaggregate its
financial statements in its Quarterly Report on Form 10-Q for the second
quarter of 2006, at which time the financial information disclosed in this
announcement as non-GAAP will be in accordance with GAAP.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to
instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including
Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and
inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron
electronic controls; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler,
Cabo Yachts, Crestliner, HarrisKayot, Hatteras, Lowe, Lund, Maxum, Meridian,
Ornvik, Palmetto, Princecraft, Quicksilver, Savage, Sea Boss, Sea Pro, Sea
Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts
and accessories; Land 'N' Sea, Kellogg Marine and Benrock parts and
accessories distributors; IDS dealer management systems; Life Fitness, Hammer
Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment
and consumer products; Brunswick billiards tables; and Valley-Dynamo pool, Air
Hockey and foosball tables. For more information, visit
http://www.brunswick.com .
(Financial Information Follows)
Brunswick Corporation
Comparative Consolidated Statements of Income
(in millions, except per share data)
(unaudited)
Three Months Ended March 31
2006 2005 % Change
Net sales $1,458.0 $1,401.1 4%
Cost of sales 1,132.5 1,059.2 7%
Selling, general and administrative
expense 202.4 208.6 -3%
Research and development expense 35.9 34.2 5%
Operating earnings 87.2 99.1 -12%
Equity earnings 5.2 5.0 4%
Investment sale gain (1) - 38.7
Other expense, net (0.1) (0.9) 89%
Earnings before interest and income taxes 92.3 141.9 -35%
Interest expense (13.6) (13.0) -5%
Interest income 2.9 2.7 7%
Earnings before income taxes 81.6 131.6 -38%
Income tax provision 14.2 37.0
Net earnings $67.4 $94.6 -29%
Earnings per common share:
Basic $0.71 $0.97 -27%
Diluted $0.70 $0.96 -27%
Weighted average number of shares used for
computation of:
Basic earnings per share 95.6 97.7 -2%
Diluted earnings per share 96.6 99.0 -2%
Effective tax rate (2) 17.4% 28.1%
(1) The Company sold its investment in MarineMax, Inc., pursuant to
registered public offering by MarineMax.
(2) The decrease in the effective tax rate for the first quarter of 2006
was primarily due to a tax reserve reassessment of $12.4 million.
Brunswick Corporation
Selected Financial Information
(in millions)
(unaudited)
Segment Information
Three Months Ended March 31
Net Sales Operating Earnings Operating
% % Margin
2006 2005 Change 2006 2005 Change 2006 2005
Boat $747.7 $677.5 10% $48.0 $49.5 -3% 6.4% 7.3%
Marine Engine 606.0 605.6 0% 34.2 52.0 -34% 5.6% 8.6%
Marine
eliminations (143.7) (119.5) - -
Total
Marine 1,210.0 1,163.6 4% 82.2 101.5 -19% 6.8% 8.7%
Fitness 133.9 127.5 5% 9.0 6.4 41% 6.7% 5.0%
Bowling &
Billiards 114.7 111.5 3% 12.8 11.1 15% 11.2% 10.0%
Eliminations (0.6) (1.5) - -
Corp/Other - - (16.8) (19.9) 16%
Total $1,458.0 $1,401.1 4% $ 87.2 $ 99.1 -12% 6.0% 7.1%
Brunswick Corporation
Comparative Consolidated Balance Sheets
(in millions)
March 31, December March 31,
2006 31, 2005
(unaudited) 2005 (unaudited)
Assets
Current assets
Cash and cash equivalents $216.5 $487.7 $439.7
Accounts and notes receivables, net 578.2 522.4 505.1
Inventories
Finished goods 457.7 426.2 436.6
Work-in-process 336.0 298.5 283.6
Raw materials 161.8 149.9 146.8
Net inventories 955.5 874.6 867.0
Deferred income taxes 273.6 274.8 292.0
Prepaid expenses and other 64.6 75.5 43.7
Current assets 2,088.4 2,235.0 2,147.5
Net property 999.4 970.2 871.4
Other assets
Goodwill and other intangibles 1,065.2 1,023.1 952.4
Investments and other long-term
assets 401.7 393.2 371.1
Other assets 1,466.9 1,416.3 1,323.5
Total assets $4,554.7 $4,621.5 $4,342.4
Liabilities and shareholders' equity
Current liabilities
Short-term debt $0.9 $1.1 $6.1
Accounts payable 439.7 472.2 389.9
Accrued expenses and accrued income
taxes 779.2 831.9 776.2
Current liabilities 1,219.8 1,305.2 1,172.2
Long-term debt 723.5 723.7 723.2
Other long-term liabilities 616.5 613.8 654.0
Common shareholders' equity 1,994.9 1,978.8 1,793.0
Total liabilities and shareholders'
equity $4,554.7 $4,621.5 $4,342.4
Supplemental Information
Debt-to-capitalization rate 26.6% 26.8% 28.9%
Brunswick Corporation
Comparative Consolidated Condensed Statements of Cash Flows
(in millions)
(unaudited)
Three Months
Ended March 31
2006 2005
Cash flows from operating activities
Net earnings $67.4 $94.6
Depreciation and amortization 42.4 38.4
Changes in noncash current assets and current
liabilities (232.9) (213.1)
Income taxes and other, net 31.5 10.8
Net cash provided by (used for) operating
activities (91.6) (69.3)
Cash flows from investing activities
Capital expenditures (56.3) (32.5)
Acquisitions of businesses, net of cash and
debt acquired (62.9) (13.7)
Investments (7.1) (8.1)
Proceeds from sale of property, plant and
equipment 5.1 6.0
Proceeds from investment sale (1) - 57.9
Net cash provided by (used for) investing
activities (121.2) 9.6
Cash flows from financing activities
Net issuances (repayments) of commercial paper
and other short-term debt - (4.0)
Payments of long-term debt including current
maturities (0.3) (1.3)
Stock repurchases (61.8) -
Stock options exercised 3.7 4.9
Net cash provided by (used for) financing
activities (58.4) (0.4)
Net increase (decrease) in cash and cash
equivalents (271.2) (60.1)
Cash and cash equivalents at January 1 487.7 499.8
Cash and cash equivalents at March 31 $216.5 $439.7
Free Cash Flow
Net cash provided by (used for) operating
activities $(91.6) $(69.3)
Net cash provided by (used for):
Capital expenditures (56.3) (32.5)
Proceeds from investment sale (1) - 57.9
Other, net 5.1 6.0
Total Free Cash Flow $(142.8) $(37.9)
(1) Pre-tax proceeds from the sale of the Company's investment in
MarineMax, Inc., net of selling costs.
Brunswick Corporation
Non-GAAP Financial Information
Comparative Consolidated Statements of Income
(in millions, except per share data)
(unaudited)
Pro Forma Three Months
Ended March 31 (1)
2006 2005 % Change
Net sales $1,413.3 $1,342.5 5%
Cost of sales 1,099.9 1,021.3 8%
Selling, general and administrative
expense 184.7 192.5 -4%
Research and development expense 30.5 29.9 2%
Operating earnings 98.2 98.8 -1%
Equity earnings 5.2 5.0 4%
Investment sale gain (2) - 38.7
Other expense, net (0.2) (0.9) 78%
Earnings before interest and income taxes 103.2 141.6 -27%
Interest expense (13.6) (13.0) -5%
Interest income 3.0 2.7 11%
Earnings before income taxes 92.6 131.3 -29%
Income tax provision 18.5 37.3
Earnings from continuing operations 74.1 94.0 -21%
Earnings (loss) from discontinued
operations, net of tax (6.7) 0.6 NM
Net earnings $67.4 $94.6 -29%
Earnings per common share:
Basic
Earnings from continuing operations $0.78 $0.96 -19%
Earnings (loss) from discontinued
operations (0.07) 0.01 NM
Net earnings $0.71 $0.97 -27%
Diluted
Earnings from continuing operations $0.77 $0.95 -19%
Earnings (loss) from discontinued
operations (0.07) 0.01 NM
Net earnings $0.70 $0.96 -27%
Weighted average number of shares used
for computation of:
Basic earnings per share 95.6 97.7 -2%
Diluted earnings per share 96.6 99.0 -2%
Effective tax rate (3) 17.4% 28.1%
Supplemental Information
Diluted earnings from continuing operations $0.77 $0.95 -19%
Tax reserve reassessment (3) (0.13) - NM
Investment sale gain (2) - (0.32) NM
Earnings from continuing operations, as
adjusted $0.64 $0.63 2%
(1) On April 27, 2006, the Company announced its intention to dispose of
substantially all of the assets of Brunswick New Technologies.
Accordingly, these financial statements have been prepared utilizing
non-GAAP financial information to illustrate how the first quarter
2006 financial statements would have appeared had the decision been
made prior to March 31, 2006. The Company believes that presenting its
first quarter results excluding these businesses is more
representative of the financial performance of its ongoing operations.
The Company will formally disaggregate its financial statements in its
Quarterly Report on Form 10-Q for the second quarter of 2006.
(2) The Company sold its investment in MarineMax, Inc., pursuant to
registered public offering by MarineMax.
(3) The decrease in the effective tax rate for the first quarter of 2006
was primarily due to a tax reserve reassessment of $12.4 million.
NM = not meaningful
Brunswick Corporation
Non-GAAP Financial Information
Selected Financial Information
(in millions)
(unaudited)
Segment Information
Pro Forma Three Months Ended March 31 (1)
Net Sales Operating Earnings Operating
% % Margin
2006 2005 Change 2006 2005 Change 2006 2005
Boat $751.0 $680.7 10% $48.4 $49.1 -1% 6.4% 7.2%
Marine Engine 557.2 543.2 3% 44.9 52.0 -14% 8.1% 9.6%
Marine
eliminations (143.5) (119.5) - -
Total
Marine 1,164.7 1,104.4 5% 93.3 101.1 -8% 8.0% 9.2%
Fitness 134.5 128.1 5% 8.9 6.4 39% 6.6% 5.0%
Bowling &
Billiards 114.7 111.5 3% 12.8 11.1 15% 11.2% 10.0%
Eliminations (0.6) (1.5) - -
Corp/Other - - (16.8) (19.8) 16%
Total $1,413.3 $1,342.5 5% $ 98.2 $ 98.8 -1% 7.0% 7.4%
(1) On April 27, 2006, the Company announced its intention to dispose of
substantially all of the assets of Brunswick New Technologies.
Accordingly, these financial statements have been prepared utilizing
non-GAAP financial information to illustrate how the first quarter
2006 financial statements would have appeared had the decision been
made prior to March 31, 2006. The Company believes that presenting its
first quarter results excluding these businesses is more
representative of the financial performance of its ongoing operations.
The Company will formally disaggregate its financial statements in its
Quarterly Report on Form 10-Q for the second quarter of 2006.
Brunswick Corporation
Non-GAAP Financial Information
Comparative Consolidated Balance Sheets
(in millions)
(unaudited)
Pro Forma (1)
March 31, December 31, March 31,
2006 2005 2005
Assets
Current assets
Cash and cash equivalents $216.5 $487.7 $439.7
Accounts and notes receivables, net 540.5 471.5 480.2
Inventories
Finished goods 418.3 384.3 421.0
Work-in-process 335.8 298.5 282.4
Raw materials 143.5 134.1 128.5
Net inventories 897.6 816.9 831.9
Deferred income taxes 273.6 274.8 292.0
Prepaid expenses and other 60.8 70.4 41.5
Current assets held for sale 99.4 113.7 62.2
Current assets 2,088.4 2,235.0 2,147.5
Net property 982.0 953.3 858.5
Other assets
Goodwill and other intangibles 991.5 949.1 878.8
Investments and other long-term
assets 399.5 391.1 370.8
Long-term assets held for sale 93.3 93.0 86.8
Other assets 1,484.3 1,433.2 1,336.4
Total assets $4,554.7 $4,621.5 $4,342.4
Liabilities and shareholders' equity
Current liabilities
Short-term debt $0.9 $1.1 $6.1
Accounts payable 418.6 431.7 372.2
Accrued expenses and accrued income
taxes 757.9 803.8 757.8
Current liabilities held for sale 42.4 68.6 36.1
Current liabilities 1,219.8 1,305.2 1,172.2
Long-term debt 723.5 723.7 723.2
Other long-term liabilities 610.7 608.1 649.8
Long-term liabilities held for sale 5.8 5.7 4.2
Common shareholders' equity 1,994.9 1,978.8 1,793.0
Total liabilities and shareholders'
equity $4,554.7 $4,621.5 $4,342.4
Supplemental Information
Debt-to-capitalization rate 26.6% 26.8% 28.9%
(1) On April 27, 2006, the Company announced its intention to dispose of
substantially all of the assets of Brunswick New Technologies.
Accordingly, these financial statements have been prepared utilizing
non-GAAP financial information to illustrate how the first quarter
2006 financial statements would have appeared had the decision been
made prior to March 31, 2006. The Company believes that presenting its
first quarter results excluding these businesses is more
representative of the financial performance of its ongoing operations.
The Company will formally disaggregate its financial statements in its
Quarterly Report on Form 10-Q for the second quarter of 2006.
Brunswick Corporation
Non-GAAP Financial Information
Comparative Consolidated Condensed Statements of Cash Flows
(in millions)
(unaudited)
Pro Forma Three Months
Ended March 31 (1)
2006 2005
Cash flows from operating activities
Net earnings $74.1 $94.0
Depreciation and amortization 40.7 37.2
Changes in noncash current assets and current
liabilities (220.9) (217.4)
Income taxes and other, net 31.4 10.1
Net cash (used for) provided by operating
activities of continuing operations (74.7) (76.1)
Net cash (used for) provided by operating
activities of discontinued operations (16.9) 6.8
Net cash (used for) provided by operating
activities (91.6) (69.3)
Cash flows from investing activities
Capital expenditures (54.4) (29.6)
Acquisitions of businesses, net of cash and
debt acquired (62.9) (13.4)
Investments (7.1) (8.1)
Proceeds from sale of property, plant and
equipment 5.1 6.0
Proceeds from investment sale (2) - 57.9
Net cash (used for) provided by investing
activities of continuing operations (119.3) 12.8
Net cash (used for) provided by investing
activities of discontinued operations (1.9) (3.2)
Net cash (used for) provided by investing
activities (121.2) 9.6
Cash flows from financing activities
Net repayments of commercial paper and other
short-term debt - (4.0)
Payments of long-term debt including current
maturities (0.3) (1.3)
Stock repurchases (61.8) -
Stock options exercised 3.7 4.9
Net cash (used for) provided by financing
activities of continuing operations (58.4) (0.4)
Net cash (used for) provided by financing
activities of discontinued operations - -
Net cash (used for) provided by financing
activities (58.4) (0.4)
Net decrease in cash and cash equivalents (271.2) (60.1)
Cash and cash equivalents at January 1 487.7 499.8
Cash and cash equivalents at March 31 $216.5 $439.7
Free Cash Flow
Net cash (used for) provided by operating
activities of continuing operations $(74.7) $(76.1)
Net cash (used for) provided by continuing
operations:
Capital expenditures (54.4) (29.6)
Proceeds from investment sale (2) - 57.9
Other continuing operations, net 5.1 6.0
Total Free Cash Flow - Continuing $(124.0) $(41.8)
(1) On April 27, 2006, the Company announced its intention to dispose of
substantially all of the assets of Brunswick New Technologies.
Accordingly, these financial statements have been prepared utilizing
non-GAAP financial information to illustrate how the first quarter
2006 financial statements would have appeared had the decision been
made prior to March 31, 2006. The Company believes that presenting its
first quarter results excluding these businesses is more
representative of the financial performance of its ongoing operations.
The Company will formally disaggregate its financial statements in its
Quarterly Report on Form 10-Q for the second quarter of 2006.
(2) Pre-tax proceeds from the sale of the Company's investment in
MarineMax, Inc., net of selling costs.
SOURCE: Brunswick Corporation
CONTACT: Kathryn Chieger, Vice President - Corporate and Investor
Relations of Brunswick Corporation, +1-847-735-4612
Web site: http://www.brunswick.com
