Brunswick Corporation : Brunswick Reports Fourth Quarter Results
Higher Revenue and Improved Operating Earnings;
Full-Year Results Reflect 10 Percent Revenue Growth
and a $176 Million Improvement in Operating Earnings;
2012 Earnings Guidance Range of $1.20 to $1.50
LAKE FOREST, Ill., Jan. 26, 2012 -- Brunswick Corporation (NYSE: BC) today
reported results for the fourth quarter of 2011:
* Net sales of $789.1 million, up 8 percent versus fourth quarter 2010.
* Operating losses reduced by $56.6 million from fourth quarter 2010.
* Net loss of $0.33 per diluted share versus net loss of $1.17 per diluted
share in the prior year. Excluding restructuring, exit and impairment
charges, losses on early extinguishment of debt and special tax items, net
losses in 2011 and 2010 were $0.30 per diluted share and $0.94 per diluted
share, respectively.
2011 Full-Year Results:
* Net sales of $3,748.0 million, up 10 percent versus 2010.
* Operating earnings improved by $176.1 million from 2010.
* Net earnings of $0.78 per diluted share versus a net loss of $1.25 per
diluted share in the prior year. Excluding restructuring, exit and
impairment charges, losses on early extinguishment of debt and special tax
items, net earnings were $1.17 per share in 2011, compared to a net loss of
$0.46 per share in 2010.
* Debt reduced by $138 million during 2011.
"In 2011, our Company made significant progress in growing our revenue and
improving our earnings," said Brunswick Chairman and Chief Executive Officer
Dustan E. McCoy. "We achieved double-digit revenue growth and an increase in
operating earnings of $176 million despite a flat overall marine market and
challenging global economic conditions. Our ability to achieve market share
gains throughout our segments, combined with continuing success in improving
production and operating efficiencies, enabled us to report our highest level of
operating earnings since 2006. In addition, we continued to reduce our debt
levels, ending 2011 with net debt at $185 million."
For the year ended Dec. 31, 2011, the Company reported net sales of $3,748.0
million, up from $3,403.3 million a year earlier. For the year, operating
earnings were $192.4 million, which included $22.7 million of restructuring,
exit and impairment charges. In 2010, the Company reported operating earnings
of $16.3 million, which included $62.3 million of restructuring, exit and
impairment charges.
For 2011, the Company reported net earnings of $71.9 million, or $0.78 per
diluted share, compared with a net loss of $110.6 million, or $1.25 per diluted
share, for 2010. The diluted earnings per share for 2011 included
restructuring, exit and impairment charges of $0.25 per diluted share, losses on
early extinguishment of debt of $0.21 per diluted share and a $0.07 per diluted
share benefit from special tax items. The loss per diluted share for 2010
included $0.70 per diluted share of restructuring, exit and impairment charges,
$0.06 per diluted share of losses on early extinguishment of debt and a $0.03
per diluted share charge from special tax items.
Fourth Quarter Results
For the fourth quarter of 2011, the Company reported net sales of $789.1
million, up from $728.8 million a year earlier. For the quarter, the Company
reported an operating loss of $18.1 million, which included restructuring, exit
and impairment charges of $4.5 million. In the fourth quarter of 2010, the
Company had an operating loss of $74.7 million, which included $18.5 million of
restructuring, exit and impairment charges. For the fourth quarter of 2011,
Brunswick reported a net loss of $29.6 million, or $0.33 per diluted share,
compared with a net loss of $104.1 million, or $1.17 loss per diluted share, for
the fourth quarter of 2010. The diluted loss per share for the fourth quarter
of 2011 included restructuring, exit and impairment charges of $0.05 per diluted
share, loss on early extinguishment of debt of $0.03 per diluted share and a
$0.05 per diluted share benefit from special tax items. The loss per diluted
share for the fourth quarter of 2010 included $0.21 per diluted share of
restructuring, exit and impairment charges and a $0.02 per diluted share charge
from special tax items.
"The factors that positively affected our earnings in the fourth quarter of
2011, compared to the previous year, included higher sales levels resulting from
market share gains in our marine businesses, as well as in our Fitness and
Bowling & Billiards segments, combined with company wide cost reductions and
lower warranty costs, restructuring charges and tax provisions. Partially
offsetting these factors were higher variable compensation expense, losses on
early extinguishment of debt and a charge pertaining to the announced
dissolution of a marine engine joint venture," McCoy said.
Review of Cash Flow and Balance Sheet
Cash and marketable securities totaled $507.8 million at the end of 2011, down
$149.3 million from year-end 2010 levels. This decrease primarily reflects the
impact of $163.3 million of cash used towards the retirement of debt, partially
offset by net cash provided by operations, less net cash used for investing and
other financing activities. Net cash provided by operating activities was
unfavorably affected by contributions made to the Company's defined benefit
pension plans and changes in working capital, excluding cash.
Net debt (defined as total debt, less cash and marketable securities) was $185.0
million, an increase of $11.5 million from year-end 2010 levels. The increase
in net debt reflects a $137.8 million reduction in total debt, which was more
than offset by a $149.3 million decrease in total cash and marketable
securities. The Company's total liquidity (defined as cash and marketable
securities, plus amounts available under its asset-based revolving credit
facility) was $739 million.
Marine Engine Segment
The Marine Engine segment, consisting of the Mercury Marine Group, including the
marine parts and accessories businesses, reported net sales of $373.3 million in
the fourth quarter of 2011, up 6 percent from $353.3 million in the fourth
quarter of 2010. U.S. sales, which represented 52 percent of total segment
sales in the quarter, increased by 10 percent, while international sales
decreased by 2 percent. For the quarter, the Marine Engine segment reported an
operating loss of $2.3 million, which included $3.8 million of restructuring and
impairment charges. This compares with an operating loss of $17.4 million in
the fourth quarter of 2010, which included $7.4 million of restructuring
charges.
The segment's outboard engine and parts and accessories businesses experienced
solid sales growth during the quarter. The decline in operating losses reflects
higher sales and cost reductions, as well as lower warranty costs and
restructuring charges. Partially offsetting these factors were higher material
and higher variable compensation costs.
Boat Segment
The Boat segment is comprised of the Brunswick Boat Group, and includes 15 North
American-based boat brands. The Boat segment reported net sales of $196.8
million for the fourth quarter of 2011, up 20 percent from the $163.6 million
reported in the fourth quarter of 2010. U.S. sales, which represented 69
percent of total segment sales in the quarter, increased by 34 percent.
International sales decreased by 10 percent, which was driven largely by the
absence of sales related to the Sealine brand, which was divested in the third
quarter of 2011. For the fourth quarter of 2011, the Boat segment reported an
operating loss of $28.4 million, which included a gain from restructuring
activities of $0.9 million. This compares with an operating loss of $69.3
million, including restructuring charges of $10.0 million, in the fourth quarter
of 2010.
Boat segment production and wholesale unit shipments increased during the
quarter, compared with the fourth quarter of 2010, in response to solid retail
demand for Brunswick's boat brands. Revenue growth from the increase in
wholesale unit shipments was partially offset by the absence of sales from the
Sealine brand, which was divested on Aug. 30, 2011. A greater sales mix of
smaller boats also had a negative effect on sales during the quarter. The
decline in operating losses reflects higher sales, increased fixed-cost
absorption, cost reductions and lower restructuring costs. Partially offsetting
these factors were a less favorable product mix and higher variable compensation
costs.
Fitness Segment
The Fitness segment is comprised of the Life Fitness Division, which designs,
manufactures, and sells Life Fitness and Hammer Strength fitness equipment.
Fitness segment sales in the fourth quarter of 2011 totaled $180.0 million, up
11 percent from $162.0 million in the fourth quarter of 2010. U.S. sales, which
represented 55 percent of total segment sales in the quarter, increased by 14
percent, while international sales increased by 7 percent. For the quarter, the
Fitness segment reported operating earnings of $28.3 million. This compares
with operating earnings of $24.4 million in the fourth quarter of 2010.
Commercial sales increased during the quarter, compared with the fourth quarter
of 2010, reflecting sales growth in all of the segment's major distribution
channels. Improved operating earnings in the fourth quarter of 2011 resulted
from higher sales and a more favorable product mix, partially offset by higher
variable compensation expense.
Bowling & Billiards Segment
The Bowling & Billiards segment is comprised of: Brunswick retail bowling
centers; bowling equipment and products; and billiards tables and accessories.
Segment sales in the fourth quarter of 2011 totaled $80.9 million, which is
comparable to the $79.5 million reported in the year-ago quarter. U.S. sales,
which represented 79 percent of total segment sales in the quarter, increased by
4 percent, while international sales decreased by 6 percent. For the quarter,
the segment reported operating earnings of $3.0 million, which included $1.6
million of restructuring and impairment charges. This compares with operating
earnings of $0.2 million in 2010, which included $1.2 million of restructuring
charges.
For the quarter, bowling products experienced a solid increase in sales, while
equivalent-center sales for retail bowling were up slightly. The improvement in
operating earnings in the fourth quarter of 2011, when compared with 2010,
reflects lower bad debt expense and improved operating efficiencies.
Outlook
"In 2012, we will remain focused on revenue and earnings growth," McCoy said.
"We believe that the global economic and marine market outlook will continue to
be challenging and that demand characteristics will be comparable to those
demonstrated in 2011. The successful execution of our various operational and
financial strategic initiatives during these past several quarters gives us the
confidence that we can achieve sustainable revenue and earnings growth, even in
a relatively flat marketplace.
"Our entire organization will concentrate its efforts on maintaining its
favorable cost position and generating growth through the continuation of market
share gains and the execution of organic growth initiatives.
"To support our growth plans, we expect our capital expenditures, SG&A and
research and development expenses to be greater than those experienced in 2011.
However, even at these higher levels, we plan to continue to generate positive
free cash flow and execute our ongoing strategic financial objectives of
reducing debt levels and improving the funded status of pension liabilities.
"In addition to solid top-line growth, we expect net income will benefit from
our previously announced marine plant consolidations and asset sales, lower
restructuring costs, and reductions in interest, depreciation, variable
compensation and pension expenses. After taking all these factors into
consideration, we currently expect our 2012 earnings per share to be in the
range of $1.20 per share to $1.50 per diluted share," McCoy concluded.
Conference Call Scheduled
Brunswick will host a conference call today at 10 a.m. CST, hosted by Dustan E.
McCoy, chairman and chief executive officer, Peter B. Hamilton, senior vice
president and chief financial officer, and Bruce J. Byots, vice president -
corporate and investor relations.
The call will be broadcast over the Internet at Hwww.brunswick.comH. To listen
to the call, please go to the website at least 15 minutes before the call to
register, download and install any needed audio software.
See Brunswick's website for slides used to supplement conference call remarks at
www.brunswick.com/investors/investorinformation/events-presentations.php
Security analysts and investors wishing to participate via telephone should call
(800) 798-2884 (passcode: Brunswick Q4). Callers outside of North America
should call (617) 614-6207 (passcode: Brunswick Q4) to be connected. These
numbers can be accessed 15 minutes before the call begins, as well as during the
call. A replay of the conference call will be available through midnight CST
Thursday, Feb. 2, 2012, by calling (888) 286-8010 (passcode: 48912621) or
international dial (617) 801-6888 (passcode: 48912621). The replay will also be
available at www.brunswick.com.
Forward-Looking Statements
Certain statements in this presentation are forward-looking as defined in the
Private Securities Litigation Reform Act of 1995. Such statements are based on
current expectations, estimates and projections about Brunswick's business.
These statements are not guarantees of future performance and involve certain
risks and uncertainties that may cause actual results to differ materially from
expectations as of the date of this presentation. These risks include, but are
not limited to: the effect of adverse general economic conditions, including the
amount of disposable income available to consumers for discretionary purchases,
tight consumer credit markets, and the level of consumer confidence on the
demand for marine, fitness, billiards and bowling equipment, products and
services; the ability of dealers to secure adequate access to financing and the
Company's ability to access capital and credit markets; the ability to maintain
strong relationships with dealers, distributors and independent boat builders;
the ability to maintain effective distribution and develop alternative
distribution channels without disrupting incumbent distribution partners; the
ability to successfully manage pipeline inventories and respond to any excess
supply of repossessed and aged boats in the market; the potential obligation to
repurchase dealer inventory; the risk of losing a key account or a critical
supplier; the protection of the Company's brands and other intellectual
property; the ability to spread fixed costs while establishing a smaller
manufacturing footprint; the ability to successfully complete restructuring
efforts in accordance with projected timeframes and costs; the ability to obtain
components, parts and raw materials from suppliers in a timely manner and for a
reasonable price; the need to meet pension funding obligations; the effect of
higher energy costs, interest rates and fuel prices on the Company's results;
competitive pricing pressures, including increased competition from Asian
competitors; the ability to develop new and innovative products that are
differentiated for the global marketplace at a competitive price and in
compliance with applicable laws; the effect of competition from other leisure
pursuits on the level of participation in boating, fitness, bowling and
billiards activities; the risk of product liability, warranty and other claims
in connection with the manufacture and sale of products; the ability to respond
to and minimize the negative financial impact of legislative and regulatory
developments, including those related to environmental restrictions, climate
change, taxes and employee benefits; the ability to maintain market share,
particularly in high-margin products; fluctuations in the Company's stock price
due to external factors; the ability to maintain product quality and service
standards expected by customers; the ability to increase manufacturing
operations and meet production targets within time and budgets allowed; negative
currency trends, including shifts in exchange rates; competition from new
technologies; the ability to complete environmental remediation efforts and
resolve claims and litigation at the cost estimated; the uncertainty and risks
of doing business in international locations, including international political
instability, civil unrest and other risks associated with operations in emerging
markets; the risk of having to record an impairment to the value of goodwill and
other assets; the effect that catastrophic events may have on consumer demand
and the ability to manufacture products, including hurricanes, floods,
earthquakes, and environmental spills; the effect of weather conditions on
demand for marine products and retail bowling center revenues; the risk of
losing individuals who are key contributors to the organization; and the risk of
experiencing a failure of the Company's information technology systems.
Additional factors are included in the Company's Annual Report on Form 10-K for
2010 and its Quarterly Report on Form 10-Q for the quarter ended July 2, 2011.
Such forward-looking statements speak only as of the date on which they are
made and Brunswick does not undertake any obligation to update any forward-
looking statements to reflect events or circumstances after the date of this
presentation, or for changes made to this document by wire services or Internet
service providers.
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; Attwood marine parts and accessories; Land
'N' Sea, Kellogg Marine, and Diversified Marine parts and accessories
distributors; Arvor, Bayliner, Boston Whaler, Cabo Yachts, Crestliner, Cypress
Cay, Harris FloteBote, Hatteras, Lowe, Lund, Meridian, Princecraft, Quicksilver,
Rayglass, Sea Ray, Suncruiser, Triton Aluminum, Trophy, Uttern and Valiant
boats; Life Fitness and Hammer Strength fitness equipment; Brunswick bowling
centers, equipment and consumer products; and Brunswick billiards tables and
foosball tables. For more information, visit www.brunswick.com.
Brunswick Corporation
Comparative Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
---------------------------------------------
Dec. 31, Dec. 31,
2011 2010 % Change
________________ ________________ _________
Net sales $ 789.1 $ 728.8 8%
Cost of sales 627.6 613.0 2%
Selling, general and administrative
expense 150.1 147.8 2%
Research and development expense 25.0 24.2 3%
Restructuring, exit and impairment
charges 4.5 18.5 -76%
________________ ________________
Operating loss (18.1) (74.7) -76%
Equity loss (4.3) (1.8) NM
Other income (expense), net (1.0) 0.1 NM
________________ ________________
Loss before interest, loss on early (23.4) (76.4) -69%
extinguishment of debt
and income taxes
Interest expense (18.0) (23.5) -23%
Interest income 1.3 1.1 18%
Loss on early extinguishment of
debt (2.9) (0.2) NM
________________ ________________
Loss before income taxes (43.0) (99.0) -57%
Income tax provision (benefit) (13.4) 5.1
________________ ________________
Net loss $ (29.6) $ (104.1) -72%
=============== ===============
Loss per common share:
Basic $ (0.33) $ (1.17)
Diluted $ (0.33) $ (1.17)
Weighted average shares used for
computation of:
Basic loss per common share 89.4 88.9
Diluted loss per common share 89.4 88.9
Effective tax rate 31.2% -5.2%
Supplemental Information
Diluted loss per common share $ (0.33) $ (1.17)
Restructuring, exit and impairment
charges( (1)) 0.05 0.21
Loss on early extinguishment of
debt( (1)) 0.03 -
Special tax items (0.05) 0.02
________________ ________________
Diluted loss per common share, as
adjusted $ (0.30) $ (0.94)
=============== ===============
(1) The 2011 and 2010 Restructuring, exit and impairment charges assume no tax
benefit.
Brunswick Corporation
Comparative Consolidated Statements of Operations
(in millions, except per share data)
Twelve Months Ended
---------------------------------------------
Dec. 31, Dec. 31,
2011 2010 % Change
________________ ________________ _________
(unaudited)
Net sales $ 3,748.0 $ 3,403.3 10%
Cost of sales 2,872.6 2,683.3 7%
Selling, general and administrative
expense 562.4 549.4 2%
Research and development expense 97.9 92.0 6%
Restructuring, exit and impairment
charges 22.7 62.3 -64%
________________ ________________
Operating earnings 192.4 16.3 NM
Equity loss (4.7) (3.0) 57%
Other expense, net (0.7) (1.5) -53%
________________ ________________
Earnings before interest, loss 187.0 11.8 NM
on early extinguishment of debt
and income taxes
Interest expense (81.8) (94.4) -13%
Interest income 3.9 3.6 8%
Loss on early extinguishment of
debt (19.8) (5.7) NM
________________ ________________
Earnings (loss) before income taxes 89.3 (84.7) NM
Income tax provision 17.4 25.9
________________ ________________
Net earnings (loss) $ 71.9 $ (110.6) NM
=============== ===============
Earnings (loss) per common share:
Basic $ 0.81 $ (1.25)
Diluted $ 0.78 $ (1.25)
Weighted average shares used for
computation of:
Basic earnings (loss) per common
share 89.3 88.7
Diluted earnings (loss) per common
share 92.2 88.7
Effective tax rate 19.5% -30.6%
Supplemental Information
Diluted earnings (loss) per common
share $ 0.78 $ (1.25)
Restructuring, exit and impairment
charges( (1)) 0.25 0.70
Loss on early extinguishment of
debt ((1)) 0.21 0.06
Special tax items (0.07) 0.03
________________ ________________
Diluted earnings (loss) per common
share, as adjusted $ 1.17 $ (0.46)
=============== ===============
(1) The 2011 and 2010 Restructuring, exit and impairment charges assume no tax
benefit.
Brunswick Corporation
Selected Financial Information
(in millions)
(unaudited)
Segment Information
Three Months Ended
--------------------------------------------------------------------------------------------
Net Sales Operating Earnings (Loss) ((1)) Operating Margin
--------------------------------------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2011 2010 % Change 2011 2010 % Change 2011 2010
____________ ____________ _________ ____________ ____________ _________ _________ _________
Marine $ 373.3 $ 353.3 6% $ (2.3) $ (17.4) -87% -0.6% -4.9%
Engine
Boat 196.8 163.6 20% (28.4) (69.3) -59% -14.4% -42.4%
Marine (41.9) (29.5) - -
eliminations
____________ ____________ ____________ ____________
Total Marine 528.2 487.4 8% (30.7) (86.7) -65% -5.8% -17.8%
Fitness 180.0 162.0 11% 28.3 24.4 16% 15.7% 15.1%
Bowling & 80.9 79.5 2% 3.0 0.2 NM 3.7% 0.3%
Billiards
Eliminations - (0.1) - -
Corp/Other - - (18.7) (12.6) 48%
____________ ____________ ____________ ____________
Total $ 789.1 $ 728.8 8% $ (18.1) (74.7) -76% -2.3% -10.2%
============ ============ ============ ============
Twelve Months Ended
--------------------------------------------------------------------------------------------
Net Sales Operating Earnings (Loss) ((2)) Operating Margin
--------------------------------------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2011 2010 % Change 2011 2010 % Change 2011 2010
____________ ____________ _________ ____________ ____________ _________ _________ _________
Marine $ 1,979.5 $ 1,807.4 10% $ 189.3 $ 147.3 29% 9.6% 8.1%
Engine
Boat 1,016.3 913.0 11% (40.7) (145.9) -72% -4.0% -16.0%
Marine (208.2) (182.2) - -
eliminations
____________ ____________ ____________ ____________
Total Marine 2,787.6 2,538.2 10% 148.6 1.4 NM 5.3% 0.1%
Fitness 635.2 541.9 17% 93.4 59.6 57% 14.7% 11.0%
Bowling & 325.2 323.3 1% 19.5 12.5 56% 6.0% 3.9%
Billiards
Eliminations - (0.1) - -
Corp/Other - - (69.1) (57.2) 21%
____________ ____________ ____________ ____________
Total $ 3,748.0 $ 3,403.3 10% $ 192.4 $ 16.3 NM 5.1% 0.5%
============ ============ ============ ============
(1) Operating earnings (loss) in the fourth quarter of 2011 includes $4.5
million of pretax restructuring, exit and impairment charges. The $4.5 million
charge consists of $3.8 million in the Marine Engine segment, $(0.9) million
gain in the Boat segment and $1.6 million in the Bowling & Billiards segment.
Operating earnings (loss) in the fourth quarter of 2010 includes $18.5 million
of pretax restructuring, exit and impairment charges. The $18.5 million charge
consists of $7.4 million in the Marine Engine segment, $10.0 million in the Boat
segment, $0.1 million in the Fitness segment, $1.2 million in the Bowling &
Billiards segment and $(0.2) million gain in Corp/Other.
(2) Operating earnings (loss) in 2011 includes $22.7 million of pretax
restructuring, exit and impairment charges. The $22.7 million charge consists of
$12.0 million in the Marine Engine segment, $8.7 million in the Boat segment,
$0.1 million in the Fitness segment and $1.9 million in the Bowling & Billiards
segment. Operating earnings (loss) in 2010 includes $62.3 million of pretax
restructuring, exit and impairment charges. The $62.3 million charge consists of
$13.6 million in the Marine Engine segment, $46.0 million in the Boat segment,
$0.2 million in the Fitness segment, $1.8 million in the Bowling & Billiards
segment and $0.7 million in Corp/Other.
Brunswick Corporation
Comparative Condensed Consolidated Balance Sheets
(in millions)
Dec. 31, Dec. 31,
2011 2010
_________________ ________________
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 338.2 $ 551.4
Short-term investments in marketable
securities 76.7 84.7
________________ ________________
Total cash, cash equivalents and short-term 414.9 636.1
investments
in marketable securities
Restricted cash 20.0 -
Accounts and notes receivable, net 346.2 327.3
Inventories
Finished goods 292.0 276.9
Work-in-process 167.2 164.0
Raw materials 73.4 86.6
________________ ________________
Net inventories 532.6 527.5
Deferred income taxes 14.8 17.0
Prepaid expenses and other 27.6 27.9
________________ ________________
Current assets 1,356.1 1,535.8
________________ ________________
Net property 585.5 630.2
________________ ________________
Other assets
Goodwill, net 290.3 290.9
Other intangibles, net 49.2 56.7
Long-term investments in marketable
securities 92.9 21.0
Equity investments 47.7 53.7
Other long-term assets 72.3 89.7
________________ ________________
Other assets 552.4 512.0
________________ ________________
Total assets $ 2,494.0 $ 2,678.0
=============== ===============
Liabilities and shareholders' equity
Current liabilities
Short-term debt $ 2.4 $ 2.2
Accounts payable 282.0 288.2
Accrued expenses 623.7 661.2
________________ ________________
Current liabilities 908.1 951.6
Long-term debt 690.4 828.4
Other long-term liabilities 864.6 827.6
Shareholders' equity 30.9 70.4
________________ ________________
Total liabilities and shareholders' equity $ 2,494.0 $ 2,678.0
=============== ===============
Supplemental Information
Debt-to-capitalization rate 95.7% 92.2%
Cash and cash equivalents $ 338.2 $ 551.4
Short-term investments in marketable 76.7 84.7
securities
Long-term investments in marketable 92.9 21.0
securities
________________ ________________
Total cash and marketable securities $ 507.8 $ 657.1
=============== ===============
Brunswick Corporation
Comparative Condensed Consolidated Statements of Cash Flows
(in millions)
Twelve Months Ended
----------------------------------
Dec. 31, Dec. 31,
2011 2010
________________ ________________
(unaudited)
Cash flows from operating activities
Net earnings (loss) $ 71.9 $ (110.6)
Depreciation and amortization 104.5 129.3
Pension (contributions) expense, net (47.4) 1.7
(Gains) losses on sale of property, plant and
equipment, net (12.7) 1.4
Long-lived asset impairment charges 1.5 23.2
Provision for doubtful accounts (3.2) 3.3
Deferred income taxes (3.3) 5.6
Equity in losses of unconsolidated affiliates,
net of dividends 5.1 5.4
Loss on early extinguishment of debt 19.8 5.7
Changes in certain current assets and current
liabilities (77.5) 14.5
Income taxes 4.1 112.8
Other, net 26.3 13.1
________________ ________________
Net cash provided by operating activities 89.1 205.4
________________ ________________
Cash flows from investing activities
Capital expenditures (90.0) (57.2)
Purchases of marketable securities (264.4) (105.8)
Sales or maturities of marketable securities 196.9 -
Transfers to restricted cash (20.0) -
Investments (0.9) (7.2)
Proceeds from sale of property, plant and
equipment 30.8 6.7
Other, net 13.2 8.3
________________ ________________
Net cash used for investing activities (134.4) (155.2)
________________ ________________
Cash flows from financing activities
Net issuances (payments) of short-term debt 0.5 (8.6)
Net proceeds from issuances of long-term debt - 30.1
Payments of long-term debt including current
maturities (146.0) (38.2)
Net premium paid on early extinguishment of
debt (17.3) (5.6)
Cash dividends paid (4.5) (4.4)
Net proceeds from stock compensation activity 4.0 1.3
Other, net (4.6) -
________________ ________________
Net cash used for financing activities (167.9) (25.4)
________________ ________________
Net increase (decrease) in cash and cash
equivalents (213.2) 24.8
Cash and cash equivalents at beginning of
period 551.4 526.6
________________ ________________
Cash and cash equivalents at end of period $ 338.2 $ 551.4
=============== ===============
Free Cash Flow
Net cash provided by operating activities $ 89.1 $ 205.4
Net cash provided by (used for):
Capital expenditures (90.0) (57.2)
Proceeds from sale of property, plant and
equipment 30.8 6.7
Other, net 13.2 8.3
________________ ________________
Total free cash flow $ 43.1 $ 163.2
=============== ===============
###
Contact: Bruce Byots
Vice President - Corporate and Investor Relations
Phone: 847-735-4612
Contact: Daniel Kubera
Director - Media Relations and Corporate Communications
Phone: 847-735-4617
Email: daniel.kubera@brunswick.com
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Source: Brunswick Corporation via Thomson Reuters ONE
[HUG#1580214]
Released January 26, 2012