Release:
|
IMMEDIATE RELEASE
|
Contact:
|
Bruce Byots
Vice President – Corporate and Investor Relations
|
Phone:
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847-735-4612
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Contact:
|
Daniel Kubera
Director – Media Relations and Corporate Communications
|
Phone:
|
847-735-4617
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Email:
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daniel.kubera@brunswick.com
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·
|
Higher Revenue and Improved Operating Earnings
|
·
|
Outlook: Return to Profitability in 2011
|
·
|
Outlook: Continued Generation of Positive Free Cash Flow
|
·
|
Net sales of $728.8 million, up 11 percent versus fourth quarter 2009.
|
·
|
Operating loss improved by $113.5 million from fourth quarter 2009.
|
·
|
Net loss of $1.17 per diluted share versus a net loss of $1.40 per diluted share in the prior year.
|
·
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Cash and marketable securities totaled $657.1 million, up from 2009 year-end balance of $527.4 million.
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·
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Net sales of $3,403.3 million, up 23 percent versus 2009.
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·
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Operating earnings improved by $586.8 million from 2009.
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·
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Net loss of $1.25 per diluted share versus a net loss of $6.63 per diluted share in the prior year.
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·
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Positive free cash flow of $163.2 million, included receipt of federal tax refund.
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Brunswick Corporation
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|||||||||||||
Comparative Consolidated Statements of Operations
|
|||||||||||||
(in millions, except per share data)
|
|||||||||||||
(unaudited)
|
|||||||||||||
Three Months Ended
|
|||||||||||||
December 31,
|
December 31,
|
||||||||||||
2010
|
2009
|
% Change
|
|||||||||||
Net sales
|
$ | 728.8 | $ | 657.3 | 11 | % | |||||||
Cost of sales
|
613.0 | 582.5 | 5 | % | |||||||||
Selling, general and administrative expense
|
147.8 | 170.6 | -13 | % | |||||||||
Research and development expense
|
24.2 | 23.8 | 2 | % | |||||||||
Restructuring, exit and impairment charges
|
18.5 | 68.6 | -73 | % | |||||||||
Operating loss
|
(74.7 | ) | (188.2 | ) | -60 | % | |||||||
Equity loss
|
(1.8 | ) | (4.6 | ) | -61 | % | |||||||
Other income (expense), net
|
0.1 | (1.2 | ) |
NM
|
|||||||||
Loss before interest, loss on early extinguishment of debt
|
(76.4 | ) | (194.0 | ) | -61 | % | |||||||
and income taxes
|
|||||||||||||
Interest expense
|
(23.5 | ) | (25.9 | ) | -9 | % | |||||||
Interest income
|
1.1 | 1.0 | 10 | % | |||||||||
Loss on early extinguishment of debt
|
(0.2 | ) | (13.1 | ) | -98 | % | |||||||
Loss before income taxes
|
(99.0 | ) | (232.0 | ) | -57 | % | |||||||
Income tax provision (benefit)
|
5.1 | (108.0 | ) | ||||||||||
Net loss
|
$ | (104.1 | ) | $ | (124.0 | ) | -16 | % | |||||
Loss per common share:
|
|||||||||||||
Basic
|
$ | (1.17 | ) | $ | (1.40 | ) | |||||||
Diluted
|
$ | (1.17 | ) | $ | (1.40 | ) | |||||||
Weighted average shares used for computation of:
|
|||||||||||||
Basic loss per common share
|
88.9 | 88.5 | |||||||||||
Diluted loss per common share
|
88.9 | 88.5 | |||||||||||
Effective tax rate
|
-5.2 | % | 46.6 | % | |||||||||
Supplemental Information
|
|||||||||||||
Diluted loss per common share
|
$ | (1.17 | ) | $ | (1.40 | ) | |||||||
Restructuring, exit and impairment charges (1)
|
0.21 | 0.78 | |||||||||||
Special tax items
|
0.02 | (1.20 | ) | ||||||||||
Diluted loss per common share, as adjusted
|
$ | (0.94 | ) | $ | (1.82 | ) | |||||||
(1) The 2010 and 2009 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
|
||||||||||||
December 31,
|
December 31,
|
|||||||||||
2010
|
2009
|
% Change
|
||||||||||
(unaudited) | ||||||||||||
Net sales
|
$ | 3,403.3 | $ | 2,776.1 | 23 | % | ||||||
Cost of sales
|
2,683.3 | 2,460.5 | 9 | % | ||||||||
Selling, general and administrative expense
|
549.4 | 625.1 | -12 | % | ||||||||
Research and development expense
|
92.0 | 88.5 | 4 | % | ||||||||
Restructuring, exit and impairment charges
|
62.3 | 172.5 | -64 | % | ||||||||
Operating earnings (loss)
|
16.3 | (570.5 | ) |
NM
|
||||||||
Equity loss
|
(3.0 | ) | (15.7 | ) | -81 | % | ||||||
Other expense, net
|
(1.5 | ) | (2.5 | ) | -40 | % | ||||||
Earnings (loss) before interest, loss on early extinguishment of debt
|
11.8 | (588.7 | ) |
NM
|
||||||||
and income taxes
|
||||||||||||
Interest expense
|
(94.4 | ) | (86.1 | ) | 10 | % | ||||||
Interest income
|
3.6 | 3.2 | 13 | % | ||||||||
Loss on early extinguishment of debt
|
(5.7 | ) | (13.1 | ) | -56 | % | ||||||
Loss before income taxes
|
(84.7 | ) | (684.7 | ) | -88 | % | ||||||
Income tax provision (benefit)
|
25.9 | (98.5 | ) | |||||||||
Net loss
|
$ | (110.6 | ) | $ | (586.2 | ) | -81 | % | ||||
Loss per common share:
|
||||||||||||
Basic
|
$ | (1.25 | ) | $ | (6.63 | ) | ||||||
Diluted
|
$ | (1.25 | ) | $ | (6.63 | ) | ||||||
Weighted average shares used for computation of:
|
||||||||||||
Basic loss per common share
|
88.7 | 88.4 | ||||||||||
Diluted loss per common share
|
88.7 | 88.4 | ||||||||||
Effective tax rate
|
-30.6 | % | 14.4 | % | ||||||||
Supplemental Information
|
||||||||||||
Diluted loss per common share
|
$ | (1.25 | ) | $ | (6.63 | ) | ||||||
Restructuring, exit and impairment charges (1)
|
0.70 | 1.95 | ||||||||||
Special tax items
|
0.03 | (1.09 | ) | |||||||||
Diluted loss per common share, as adjusted
|
$ | (0.52 | ) | $ | (5.77 | ) | ||||||
(1) The 2010 and 2009 Restructuring, exit and impairment charges assume no tax benefit.
|
||||||||||||
Brunswick Corporation
|
|||||||||||||||||
Selected Financial Information
|
|||||||||||||||||
(in millions)
|
|||||||||||||||||
(unaudited)
|
|||||||||||||||||
Segment Information
|
|||||||||||||||||
Three Months Ended December 31
|
|||||||||||||||||
Net Sales
|
Operating Earnings (Loss) (1)
|
Operating Margin
|
|||||||||||||||
2010
|
2009
|
% Change
|
2010
|
2009
|
% Change
|
2010
|
2009
|
||||||||||
Marine Engine
|
$ 353.3
|
$ 302.4
|
17%
|
$ (17.4)
|
$ (59.4)
|
-71%
|
-4.9%
|
-19.6%
|
|||||||||
Boat
|
163.6
|
153.4
|
7%
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(69.3)
|
(131.6)
|
-47%
|
-42.4%
|
-85.8%
|
|||||||||
Marine eliminations
|
(29.5)
|
(27.1)
|
-
|
-
|
|||||||||||||
Total Marine
|
487.4
|
428.7
|
14%
|
(86.7)
|
(191.0)
|
-55%
|
-17.8%
|
-44.6%
|
|||||||||
Fitness
|
162.0
|
146.4
|
11%
|
24.4
|
20.5
|
19%
|
15.1%
|
14.0%
|
|||||||||
Bowling & Billiards
|
79.5
|
82.2
|
-3%
|
0.2
|
2.2
|
-91%
|
0.3%
|
2.7%
|
|||||||||
Eliminations
|
(0.1)
|
-
|
-
|
-
|
|||||||||||||
Corp/Other
|
-
|
-
|
(12.6)
|
(19.9)
|
-37%
|
||||||||||||
Total
|
$ 728.8
|
$ 657.3
|
11%
|
$ (74.7)
|
$ (188.2)
|
-60%
|
-10.2%
|
-28.6%
|
|||||||||
Twelve Months Ended December 31
|
|||||||||||||||||
Net Sales
|
Operating Earnings (Loss) (2)
|
Operating Margin
|
|||||||||||||||
2010
|
2009
|
% Change
|
2010
|
2009
|
% Change
|
2010
|
2009
|
||||||||||
Marine Engine
|
$ 1,807.4
|
$ 1,425.0
|
27%
|
$ 147.3
|
$ (131.2)
|
NM
|
8.1%
|
-9.2%
|
|||||||||
Boat
|
913.0
|
615.7
|
48%
|
(145.9)
|
(398.5)
|
-63%
|
-16.0%
|
-64.7%
|
|||||||||
Marine eliminations
|
(182.2)
|
(98.3)
|
-
|
-
|
|||||||||||||
Total Marine
|
2,538.2
|
1,942.4
|
31%
|
1.4
|
(529.7)
|
NM
|
0.1%
|
-27.3%
|
|||||||||
Fitness
|
541.9
|
496.8
|
9%
|
59.6
|
33.5
|
78%
|
11.0%
|
6.7%
|
|||||||||
Bowling & Billiards
|
323.3
|
337.0
|
-4%
|
12.5
|
3.1
|
NM
|
3.9%
|
0.9%
|
|||||||||
Eliminations
|
(0.1)
|
(0.1)
|
-
|
-
|
|||||||||||||
Corp/Other
|
-
|
-
|
(57.2)
|
(77.4)
|
-26%
|
||||||||||||
Total
|
$ 3,403.3
|
$ 2,776.1
|
23%
|
$ 16.3
|
$ (570.5)
|
NM
|
0.5%
|
-20.6%
|
|||||||||
(1)
|
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 in Corp/Other. Operating earnings (loss) in the fourth quarter of 2009 includes $68.6 million of pretax restructuring, exit and impairment charges. The $68.6 million charge consists of $8.2 million in the Marine Engine segment, $58.3 million in the Boat segment, $0.5 million in the Fitness segment, $0.5 million in the Bowling & Billiards segment and $1.1 million in Corp/Other.
|
||||||||||||||||
(2)
|
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. Operating earnings (loss) in 2009 includes $172.5 million of pretax restructuring, exit and impairment charges. The $172.5 million charge consists of $48.3 million in the Marine Engine segment, $107.8 million in the Boat segment, $2.1 million in the Fitness segment, $5.3 million in the Bowling & Billiards segment and $9.0 million in Corp/Other.
|
||||||||||||||||
Brunswick Corporation
|
||||||||
Comparative Condensed Consolidated Balance Sheets
|
||||||||
(in millions)
|
||||||||
December 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 551.4 | $ | 526.6 | ||||
Short-term investments in marketable securities
|
84.7 | 0.8 | ||||||
Total cash, cash equivalents and short-term investments in
|
636.1 | 527.4 | ||||||
marketable securities
|
||||||||
Accounts and notes receivable, net
|
327.3 | 332.4 | ||||||
Inventories
|
||||||||
Finished goods
|
276.9 | 234.4 | ||||||
Work-in-process
|
164.0 | 174.3 | ||||||
Raw materials
|
86.6 | 76.2 | ||||||
Net inventories
|
527.5 | 484.9 | ||||||
Deferred income taxes
|
17.0 | 79.3 | ||||||
Prepaid expenses and other
|
27.9 | 34.7 | ||||||
Current assets
|
1,535.8 | 1,458.7 | ||||||
Net property
|
630.2 | 724.3 | ||||||
Other assets
|
||||||||
Goodwill, net
|
290.9 | 292.5 | ||||||
Other intangibles, net
|
56.7 | 75.6 | ||||||
Long-term investments in marketable securities
|
21.0 | - | ||||||
Equity investments
|
53.7 | 56.7 | ||||||
Other long-term assets
|
89.7 | 101.6 | ||||||
Other assets
|
512.0 | 526.4 | ||||||
Total assets
|
$ | 2,678.0 | $ | 2,709.4 | ||||
Liabilities and shareholders' equity
|
||||||||
Current liabilities
|
||||||||
Short-term debt
|
$ | 2.2 | $ | 11.5 | ||||
Accounts payable
|
288.2 | 261.2 | ||||||
Accrued expenses
|
661.2 | 633.9 | ||||||
Current liabilities
|
951.6 | 906.6 | ||||||
Long-term debt
|
828.4 | 839.4 | ||||||
Other long-term liabilities
|
827.6 | 753.1 | ||||||
Shareholders' equity
|
70.4 | 210.3 | ||||||
Total liabilities and shareholders' equity
|
$ | 2,678.0 | $ | 2,709.4 | ||||
Supplemental Information
|
||||||||
Debt-to-capitalization rate
|
92.2 | % | 80.2 | % | ||||
Cash and cash equivalents
|
$ | 551.4 | $ | 526.6 | ||||
Short-term investments in marketable securities
|
84.7 | 0.8 | ||||||
Long-term investments in marketable securities
|
21.0 | - | ||||||
Total cash and marketable securities
|
$ | 657.1 | $ | 527.4 | ||||
Brunswick Corporation
|
||||||||
Comparative Condensed Consolidated Statements of Cash Flows
|
||||||||
(in millions)
|
||||||||
(unaudited)
|
||||||||
Twelve Months Ended
|
||||||||
December 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Cash flows from operating activities
|
||||||||
Net loss
|
$ | (110.6 | ) | $ | (586.2 | ) | ||
Depreciation and amortization
|
129.3 | 157.3 | ||||||
Pension expense, net of contributions
|
1.7 | 74.6 | ||||||
Provision for doubtful accounts
|
3.3 | 49.7 | ||||||
Long-lived asset impairment charges
|
23.2 | 63.0 | ||||||
Equity in earnings of unconsolidated affiliates, net of dividends
|
5.4 | 16.0 | ||||||
Loss on early extinguishment of debt
|
5.7 | 13.1 | ||||||
Changes in certain current assets and current liabilities
|
14.5 | 400.8 | ||||||
Income taxes
|
118.4 | (8.0 | ) | |||||
Repurchase of accounts receivable
|
- | (84.2 | ) | |||||
Other, net
|
14.5 | 29.4 | ||||||
Net cash provided by operating activities
|
205.4 | 125.5 | ||||||
Cash flows from investing activities
|
||||||||
Capital expenditures
|
(57.2 | ) | (33.3 | ) | ||||
Purchases of marketable securities
|
(105.8 | ) | - | |||||
Investments
|
(7.2 | ) | 6.2 | |||||
Proceeds from sale of property, plant and equipment
|
6.7 | 13.0 | ||||||
Other, net
|
8.3 | 1.8 | ||||||
Net cash provided by (used for) investing activities
|
(155.2 | ) | (12.3 | ) | ||||
Cash flows from financing activities
|
||||||||
Net issuances (payments) of short-term debt
|
(8.6 | ) | 7.7 | |||||
Proceeds from asset-based lending facility
|
- | 81.1 | ||||||
Payments of asset-based lending facility
|
- | (81.1 | ) | |||||
Net proceeds from issuances of long-term debt
|
30.1 | 353.7 | ||||||
Payments of long-term debt including current maturities
|
(38.2 | ) | (247.9 | ) | ||||
Payments of premium on early extinguishment of debt
|
(5.6 | ) | (13.2 | ) | ||||
Cash dividends paid
|
(4.4 | ) | (4.4 | ) | ||||
Net proceeds from stock compensation activity
|
1.3 | - | ||||||
Net cash provided by (used for) financing activities
|
(25.4 | ) | 95.9 | |||||
Net increase in cash and cash equivalents
|
24.8 | 209.1 | ||||||
Cash and cash equivalents at beginning of period
|
526.6 | 317.5 | ||||||
Cash and cash equivalents at end of period
|
$ | 551.4 | $ | 526.6 | ||||
Free Cash Flow
|
||||||||
Net cash provided by operating activities
|
$ | 205.4 | $ | 125.5 | ||||
Net cash provided by (used for):
|
||||||||
Capital expenditures
|
(57.2 | ) | (33.3 | ) | ||||
Proceeds from sale of property, plant and equipment
|
6.7 | 13.0 | ||||||
Other, net
|
8.3 | 1.8 | ||||||
Total free cash flow
|
$ | 163.2 | $ | 107.0 | ||||