Brunswick Corporation 26125 N. Riverwoods Blvd., Suite 500, Mettawa, IL 60045 | |||||
Telephone 847.735.4700 |
Release: | IMMEDIATE | ||||
Contact: | Brent Dahl | ||||
Vice President - Investor Relations | |||||
Phone: | 847-735-4039 | ||||
Contact: | Lee Gordon | ||||
Vice President - Brunswick Global Communications & Public Relations | |||||
Phone: | 847-735-4003 | ||||
Email: | lee.gordon@brunswick.com |
Q3 2020 | ||||||||||||||||||||
$ millions (except per share data) | GAAP | Incr vs. Q3 2019 | As Adjusted | Incr vs. Q3 2019 | ||||||||||||||||
Net Sales | $ | 1,233.1 | 26.3 | % | $ | 1,233.1 | 26.3 | % | ||||||||||||
Operating Earnings | $ | 192.6 | 60.9 | % | $ | 202.9 | 49.4 | % | ||||||||||||
Operating Margin | 15.6 | % | 330 bps | 16.5 | % | 260 bps | ||||||||||||||
Diluted EPS | $ | 1.71 | $ | 1.80 | ||||||||||||||||
bps = basis points |
Operating Earnings | Diluted Earnings (Loss) Per Share | |||||||||||||||||||||||||
$ millions (except per share data) | Q3 2020 | Q3 2019 | Q3 2020 | Q3 2019 | ||||||||||||||||||||||
GAAP | $ | 192.6 | $ | 119.7 | $ | 1.71 | $ | (2.74) | ||||||||||||||||||
Restructuring, exit, and impairment | 1.8 | 7.4 | 0.02 | 0.14 | ||||||||||||||||||||||
Purchase accounting amortization | 7.5 | 7.5 | 0.07 | 0.05 | ||||||||||||||||||||||
Acquisition and IT related costs | 1.0 | 1.2 | 0.01 | 0.01 | ||||||||||||||||||||||
Pension settlement charge | — | — | 0.00 | 3.66 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 0.01 | ||||||||||||||||||||||
Special tax items | — | — | (0.01) | (0.03) | ||||||||||||||||||||||
As Adjusted | $ | 202.9 | $ | 135.8 | $ | 1.80 | $ | 1.10 | ||||||||||||||||||
Percent increase | 49.4 | % | 63.6 | % | ||||||||||||||||||||||
GAAP Operating Margin | 15.6 | % | 12.3 | % | 330 bps | |||||||||||||||||||||
Adjusted Operating Margin | 16.5 | % | 13.9 | % | 260 bps | |||||||||||||||||||||
bps = basis points |
$ millions | Q3 2020 | Q3 2019 | Incr | ||||||||||||||
Net Sales | $526.5 | $396.9 | 32.7 | % | |||||||||||||
Operating Earnings | $94.1 | $58.2 | 61.7 | % |
$ millions | Q3 2020 | Q3 2019 | Incr (Decr) | ||||||||||||||
Net Sales | $459.9 | $373.0 | 23.3 | % | |||||||||||||
Operating Earnings GAAP | $99.9 | $73.0 | 36.8 | % | |||||||||||||
Restructuring, exit, and impairment charges | 0.5 | 3.5 | (85.7) | % | |||||||||||||
Purchase accounting amortization | 7.1 | 7.1 | — | % | |||||||||||||
Operating Earnings, as adjusted | $107.5 | $83.6 | 28.6 | % | |||||||||||||
$ millions | Q3 2020 | Q3 2019 | Incr (Decr) | ||||||||||||||
Net Sales | $328.1 | $277.4 | 18.3 | % | |||||||||||||
Operating Earnings GAAP | $28.3 | $8.1 | NM | ||||||||||||||
Restructuring, exit, and impairment charges | 1.2 | 3.4 | (64.7) | % | |||||||||||||
Acquisition related costs | 0.4 | 0.5 | (20.0) | % | |||||||||||||
Purchase accounting amortization | 0.4 | 0.4 | — | % | |||||||||||||
Operating Earnings, as adjusted | $30.3 | $12.4 | NM | ||||||||||||||
NM = not meaningful |
Brunswick Corporation Comparative Condensed Consolidated Statements of Operations (in millions, except per share data) (unaudited) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
September 26, 2020 | September 28, 2019 | % Change | |||||||||||||||
Net sales | $ | 1,233.1 | $ | 976.6 | 26 | % | |||||||||||
Cost of sales | 856.2 | 699.7 | 22 | % | |||||||||||||
Selling, general and administrative expense | 151.3 | 120.1 | 26 | % | |||||||||||||
Research and development expense | 31.2 | 29.7 | 5 | % | |||||||||||||
Restructuring, exit, and impairment charges | 1.8 | 7.4 | -76 | % | |||||||||||||
Operating earnings | 192.6 | 119.7 | 61 | % | |||||||||||||
Equity earnings | 0.6 | 1.9 | -68 | % | |||||||||||||
Pension settlement charge | (0.2) | (294.1) | -100 | % | |||||||||||||
Other (expense) income, net | (1.2) | 0.1 | NM | ||||||||||||||
Earnings (loss) before interest and income taxes | 191.8 | (172.4) | NM | ||||||||||||||
Interest expense | (16.4) | (18.8) | -13 | % | |||||||||||||
Interest income | 0.3 | 1.6 | -81 | % | |||||||||||||
Earnings (loss) before income taxes | 175.7 | (189.6) | NM | ||||||||||||||
Income tax provision | 38.9 | 43.3 | -10 | % | |||||||||||||
Net earnings (loss) from continuing operations | 136.8 | (232.9) | NM | ||||||||||||||
Discontinued operations: | |||||||||||||||||
Earnings (loss) from discontinued operations, net of tax | 1.5 | $ | (2.9) | NM | |||||||||||||
Loss on disposal of discontinued operations, net of tax | (0.4) | (3.5) | -89 | % | |||||||||||||
Net earnings (loss) from discontinued operations, net of tax | 1.1 | (6.4) | NM | ||||||||||||||
Net earnings (loss) | $ | 137.9 | $ | (239.3) | NM | ||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic | |||||||||||||||||
Earnings (loss) from continuing operations | $ | 1.72 | $ | (2.74) | NM | ||||||||||||
Earnings (loss) from discontinued operations | 0.02 | (0.08) | NM | ||||||||||||||
Net earnings (Loss) | $ | 1.74 | $ | (2.82) | NM | ||||||||||||
Diluted | |||||||||||||||||
Earnings (loss) from continuing operations | $ | 1.71 | $ | (2.74) | NM | ||||||||||||
Earnings (loss) from discontinued operations | 0.02 | (0.08) | NM | ||||||||||||||
Net earnings (Loss) | $ | 1.73 | $ | (2.82) | NM | ||||||||||||
Weighted average shares used for computation of: | |||||||||||||||||
Basic earnings (loss) per common share | 79.4 | 85.0 | |||||||||||||||
Diluted earnings (loss) per common share | 79.8 | 85.0 | |||||||||||||||
Effective tax rate | 22.1 | % | NM | ||||||||||||||
NM = not meaningful |
Brunswick Corporation Comparative Condensed Consolidated Statements of Operations (in millions, except per share data) (unaudited) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
September 26, 2020 | September 28, 2019 | % Change | |||||||||||||||
Reconciliations | |||||||||||||||||
Operating earnings | $ | 192.6 | $ | 119.7 | 61 | % | |||||||||||
Restructuring, exit, and impairment charges | 1.8 | 7.4 | |||||||||||||||
Purchase accounting amortization (1) | 7.5 | 7.5 | |||||||||||||||
Acquisition and IT-related costs (1) | 1.0 | 1.2 | |||||||||||||||
Adjusted operating earnings | $ | 202.9 | $ | 135.8 | 49 | % | |||||||||||
Earnings (loss) before income taxes | $ | 175.7 | $ | (189.6) | NM | ||||||||||||
Restructuring, exit, and impairment charges | 1.8 | 7.4 | |||||||||||||||
Purchase accounting amortization (1) | 7.5 | 7.5 | |||||||||||||||
Acquisition and IT-related costs (1) | 1.0 | 1.2 | |||||||||||||||
Pension settlement charge (2) | 0.2 | 294.1 | |||||||||||||||
Transaction financing charges (3) | — | 0.8 | |||||||||||||||
Adjusted pretax earnings | $ | 186.2 | $ | 121.4 | 53 | % | |||||||||||
Diluted earnings (loss) per common share from continuing operations | $ | 1.71 | $ | (2.74) | NM | ||||||||||||
Restructuring, exit and impairment charges | 0.02 | 0.14 | |||||||||||||||
Purchase accounting amortization (1) | 0.07 | 0.05 | |||||||||||||||
Acquisition and IT-related costs (1) | 0.01 | 0.01 | |||||||||||||||
Pension settlement charge (2) | 0.00 | 3.66 | |||||||||||||||
Transaction financing charges (3) | — | 0.01 | |||||||||||||||
Special tax items | (0.01) | (0.03) | |||||||||||||||
Adjusted diluted earnings per common share from continuing operations | $ | 1.80 | $ | 1.10 | 64 | % | |||||||||||
(1) In both the three months ended September 26, 2020 and September 28, 2019, the Company recorded $7.1 million of purchase accounting amortization in SG&A within its Parts and Accessories segment. In the three months ended September 26, 2020, the Company also recorded $0.4 million of acquisition-related costs and $0.4 million of purchase accounting amortization in SG&A within its Boat segment; and $0.6 million of IT transformation charges in SG&A within Corporate/Other resulting from the Fitness separation. For the three months ended September 28, 2019, the Company recorded $0.5 million of acquisition-related costs and $0.4 million of purchase accounting amortization in SG&A within its Boat segment; and $0.7 million of IT transformation charges in SG&A within Corporate/Other resulting from the Fitness separation. | |||||||||||||||||
(2) The Company recorded a $0.2 million pension settlement charge in the third quarter of 2020 and a $294.1 million pension settlement charge in the third quarter of 2019 in connection with the exit of its defined benefit plans. | |||||||||||||||||
(3) In the third quarter of 2019, the Company called its 2021 Senior Notes, resulting in $0.8 million of charges. | |||||||||||||||||
Brunswick Corporation Comparative Condensed Consolidated Statements of Operations (in millions, except per share data) (unaudited) | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 26, 2020 | September 28, 2019 | % Change | |||||||||||||||
Net sales | $ | 3,186.4 | $ | 3,190.8 | -0 | % | |||||||||||
Cost of sales | 2,309.7 | 2,306.4 | 0 | % | |||||||||||||
Selling, general and administrative expense | 381.8 | 380.0 | 0 | % | |||||||||||||
Research and development expense | 87.8 | 91.9 | -4 | % | |||||||||||||
Restructuring, exit, and impairment charges | 4.3 | 16.0 | -73 | % | |||||||||||||
Operating earnings | 402.8 | 396.5 | 2 | % | |||||||||||||
Equity earnings | 3.5 | 5.4 | -35 | % | |||||||||||||
Pension settlement benefit (charge) | 1.1 | (294.1) | NM | ||||||||||||||
Other expense, net | (2.7) | (1.6) | 69 | % | |||||||||||||
Earnings before interest and income taxes | 404.7 | 106.2 | NM | ||||||||||||||
Interest expense | (52.0) | (59.4) | -12 | % | |||||||||||||
Interest income | 0.9 | 2.4 | -63 | % | |||||||||||||
Earnings before income taxes | 353.6 | 49.2 | NM | ||||||||||||||
Income tax provision | 74.9 | 93.8 | -20 | % | |||||||||||||
Net earnings (loss) from continuing operations | 278.7 | (44.6) | NM | ||||||||||||||
Discontinued operations: | |||||||||||||||||
Earnings (loss) from discontinued operations, net of tax | $ | 0.4 | $ | (108.5) | NM | ||||||||||||
Loss on disposal of discontinued operations, net of tax | (1.5) | (45.0) | -97 | % | |||||||||||||
Net loss from discontinued operations, net of tax | (1.1) | (153.5) | NM | ||||||||||||||
Net earnings (loss) | $ | 277.6 | $ | (198.1) | NM | ||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic | |||||||||||||||||
Earnings (loss) from continuing operations | $ | 3.51 | $ | (0.52) | NM | ||||||||||||
Loss from discontinued operations | (0.02) | (1.77) | -99 | % | |||||||||||||
Net earnings (loss) | $ | 3.49 | $ | (2.29) | NM | ||||||||||||
Diluted | |||||||||||||||||
Earnings (loss) from continuing operations | $ | 3.49 | $ | (0.52) | NM | ||||||||||||
Loss from discontinued operations | (0.02) | (1.77) | -99 | % | |||||||||||||
Net earnings (loss) | $ | 3.47 | $ | (2.29) | NM | ||||||||||||
Weighted average shares used for computation of: | |||||||||||||||||
Basic earnings (loss) per common share | 79.4 | 86.5 | |||||||||||||||
Diluted earnings (loss) per common share | 79.9 | 86.5 | |||||||||||||||
Effective tax rate | 21.2 | % | NM | ||||||||||||||
NM = not meaningful |
Brunswick Corporation Comparative Condensed Consolidated Statements of Operations (in millions, except per share data) (unaudited) | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 26, 2020 | September 28, 2019 | % Change | |||||||||||||||
Reconciliations | |||||||||||||||||
Net sales | $ | 3,186.4 | $ | 3,190.8 | -0 | % | |||||||||||
Sport yacht & yachts (1) | — | 0.7 | |||||||||||||||
Adjusted net sales | $ | 3,186.4 | $ | 3,191.5 | -0 | % | |||||||||||
Operating earnings | $ | 402.8 | $ | 396.5 | 2 | % | |||||||||||
Restructuring, exit, and impairment charges | 4.3 | 16.0 | |||||||||||||||
Purchase accounting amortization (2) | 22.6 | 22.0 | |||||||||||||||
Acquisition and IT-related costs (2) | 3.6 | 3.0 | |||||||||||||||
Sport yacht & yachts (1) | — | 2.9 | |||||||||||||||
Adjusted operating earnings | $ | 433.3 | $ | 440.4 | -2 | % | |||||||||||
Earnings before income taxes | $ | 353.6 | $ | 49.2 | NM | ||||||||||||
Restructuring, exit, and impairment charges | 4.3 | 16.0 | |||||||||||||||
Purchase accounting amortization (2) | 22.6 | 22.0 | |||||||||||||||
Acquisition and IT-related costs (2) | 3.6 | 3.0 | |||||||||||||||
Pension settlement (benefit) charge (3) | (1.1) | 294.1 | |||||||||||||||
Sport yacht & yachts (1) | — | 2.9 | |||||||||||||||
Transaction financing charges (4) | — | 0.8 | |||||||||||||||
Adjusted pretax earnings | $ | 383.0 | $ | 388.0 | -1 | % | |||||||||||
Diluted earnings (loss) per common share | $ | 3.49 | $ | (0.52) | NM | ||||||||||||
Restructuring, exit, and impairment charges | 0.03 | 0.19 | |||||||||||||||
Purchase accounting amortization (2) | 0.22 | 0.18 | |||||||||||||||
Acquisition and IT-related costs (2) | 0.04 | 0.03 | |||||||||||||||
Sport yacht & yachts (1) | — | 0.03 | |||||||||||||||
Transaction financing charges (4) | — | 0.01 | |||||||||||||||
Pension settlement (benefit) charge (3) | (0.01) | 3.60 | |||||||||||||||
Special tax items | (0.01) | (0.03) | |||||||||||||||
Adjusted diluted earnings per common share | $ | 3.76 | $ | 3.49 | 8 | % | |||||||||||
(1) In the second quarter of 2018, the Company announced its intention to wind down Sport yacht & yachts operations. In the nine months ended September 28, 2019, the Company recorded charges of $2.9 million related to Sport yacht & yachts, consisting of $(0.7) million of Net sales, $1.8 million of Cost of sales (COS) and $0.4 million of Selling, general and administrative (SG&A). | |||||||||||||||||
(2) In both the nine months ended September 26, 2020 and September 28, 2019, the Company recorded $21.5 million of purchase accounting amortization in SG&A within its Parts and Accessories segment. In the nine months ended September 26, 2020, the Company also recorded $1.7 million of acquisition-related costs and $1.1 million of purchase accounting amortization in SG&A within its Boat segment; and $1.9 million of IT transformation charges in SG&A, within Corporate/Other resulting from the Fitness separation. For the nine months ended September 28, 2019, the Company recorded $1.8 million of acquisition-related costs and $0.5 million of purchase accounting amortization in SG&A within its Boat segment; and $1.2 million of IT transformation charges in SG&A within Corporate/Other resulting from the Fitness separation. | |||||||||||||||||
(3) The Company recorded a $1.1 million pension settlement benefit for the nine months ended September 26, 2020 and a $294.1 million pension settlement charge for the nine months ended September 28, 2019, in connection with the exit of its defined benefit plans. | |||||||||||||||||
(4) In the third quarter of 2019, the Company called its 2021 Senior Notes, resulting in $0.8 million of charges. |
Brunswick Corporation Selected Financial Information (in millions) (unaudited) Segment Information - GAAP | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Operating Earnings (Loss) | Operating Margin | |||||||||||||||||||||||||||||||||||||||||||||
Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | ||||||||||||||||||||||||||||||||||||||||
Propulsion | $ | 526.5 | $ | 396.9 | 32.7 | % | $ | 94.1 | $ | 58.2 | 61.7 | % | 17.9 | % | 14.7 | % | |||||||||||||||||||||||||||||||
Parts & Accessories | 459.9 | 373.0 | 23.3 | % | 99.9 | 73.0 | 36.8 | % | 21.7 | % | 19.6 | % | |||||||||||||||||||||||||||||||||||
Boat | 328.1 | 277.4 | 18.3 | % | 28.3 | 8.1 | NM | 8.6 | % | 2.9 | % | ||||||||||||||||||||||||||||||||||||
Corporate/Other | — | — | (29.7) | (19.6) | 51.5 | % | |||||||||||||||||||||||||||||||||||||||||
Segment Eliminations | (81.4) | (70.7) | 15.1 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,233.1 | $ | 976.6 | 26.3 | % | $ | 192.6 | $ | 119.7 | 60.9 | % | 15.6 | % | 12.3 | % |
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Operating Earnings (Loss) | Operating Margin | |||||||||||||||||||||||||||||||||||||||||||||
Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | ||||||||||||||||||||||||||||||||||||||||
Propulsion | $ | 1,370.5 | $ | 1,310.8 | 4.6 | % | $ | 203.1 | $ | 189.1 | 7.4 | % | 14.8 | % | 14.4 | % | |||||||||||||||||||||||||||||||
Parts & Accessories | 1,148.0 | 1,096.6 | 4.7 | % | 226.2 | 209.0 | 8.2 | % | 19.7 | % | 19.1 | % | |||||||||||||||||||||||||||||||||||
Boat | 869.5 | 1,017.3 | -14.5 | % | 35.4 | 60.9 | -41.9 | % | 4.1 | % | 6.0 | % | |||||||||||||||||||||||||||||||||||
Corporate/Other | — | — | (61.9) | (62.5) | -1.0 | % | |||||||||||||||||||||||||||||||||||||||||
Segment Eliminations | (201.6) | (233.9) | -13.8 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,186.4 | $ | 3,190.8 | -0.1 | % | $ | 402.8 | $ | 396.5 | 1.6 | % | 12.6 | % | 12.4 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Operating Earnings (Loss) (1) | Operating Margin | |||||||||||||||||||||||||||||||||||||||||||||
Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | ||||||||||||||||||||||||||||||||||||||||
Propulsion | $ | 526.5 | $ | 396.9 | 32.7 | % | $ | 94.1 | $ | 58.2 | 61.7 | % | 17.9 | % | 14.7 | % | |||||||||||||||||||||||||||||||
Parts & Accessories | 459.9 | 373.0 | 23.3 | % | 107.5 | 83.6 | 28.6 | % | 23.4 | % | 22.4 | % | |||||||||||||||||||||||||||||||||||
Boat | 328.1 | 277.4 | 18.3 | % | 30.3 | 12.4 | NM | 9.2 | % | 4.5 | % | ||||||||||||||||||||||||||||||||||||
Corporate/Other | — | — | (29.0) | (18.4) | 57.6 | % | |||||||||||||||||||||||||||||||||||||||||
Segment Eliminations | (81.4) | (70.7) | 15.1 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,233.1 | $ | 976.6 | 26.3 | % | $ | 202.9 | $ | 135.8 | 49.4 | % | 16.5 | % | 13.9 | % |
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales(1) | Operating Earnings (Loss) (2) | Operating Margin | |||||||||||||||||||||||||||||||||||||||||||||
Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | % Change | Sep 26, 2020 | Sep 28, 2019 | ||||||||||||||||||||||||||||||||||||||||
Propulsion | $ | 1,370.5 | $ | 1,310.8 | 4.6 | % | $ | 203.1 | $ | 189.1 | 7.4 | % | 14.8 | % | 14.4 | % | |||||||||||||||||||||||||||||||
Parts & Accessories | 1,148.0 | 1,096.6 | 4.7 | % | 248.5 | 234.6 | 5.9 | % | 21.6 | % | 21.4 | % | |||||||||||||||||||||||||||||||||||
Boat | 869.5 | 1,018.0 | -14.6 | % | 39.7 | 74.1 | -46.4 | % | 4.6 | % | 7.3 | % | |||||||||||||||||||||||||||||||||||
Corporate/Other | — | — | (58.0) | (57.4) | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||
Segment Eliminations | (201.6) | (233.9) | -13.8 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,186.4 | $ | 3,191.5 | -0.2 | % | $ | 433.3 | $ | 440.4 | -1.6 | % | 13.6 | % | 13.8 | % |
Brunswick Corporation Selected Financial Information (in millions) (unaudited) Disaggregated Revenue | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
September 26, 2020 | |||||||||||||||||||||||
Propulsion | Parts & Accessories | Boat | Total | ||||||||||||||||||||
Geographic Markets | |||||||||||||||||||||||
United States | $ | 355.2 | $ | 336.7 | $ | 264.3 | $ | 956.2 | |||||||||||||||
Europe | 56.0 | 51.2 | 25.5 | 132.7 | |||||||||||||||||||
Asia-Pacific | 67.9 | 31.4 | 7.4 | 106.7 | |||||||||||||||||||
Canada | 19.7 | 30.2 | 22.9 | 72.8 | |||||||||||||||||||
Rest-of-World | 27.7 | 10.4 | 8.0 | 46.1 | |||||||||||||||||||
Segment Eliminations | (73.4) | (8.0) | — | (81.4) | |||||||||||||||||||
Total | $ | 453.1 | $ | 451.9 | $ | 328.1 | $ | 1,233.1 | |||||||||||||||
Major Product Lines | |||||||||||||||||||||||
Outboard Engines | $ | 410.3 | $ | — | $ | — | $ | 410.3 | |||||||||||||||
Controls, Rigging, and Propellers | 76.9 | — | — | 76.9 | |||||||||||||||||||
Sterndrive Engines | 39.3 | — | — | 39.3 | |||||||||||||||||||
Distribution Parts and Accessories | — | 205.0 | — | 205.0 | |||||||||||||||||||
Advanced Systems Group | — | 113.1 | — | 113.1 | |||||||||||||||||||
Engine Parts and Accessories | — | 141.8 | — | 141.8 | |||||||||||||||||||
Aluminum Freshwater Boats | — | — | 124.5 | 124.5 | |||||||||||||||||||
Recreational Fiberglass Boats | — | — | 111.0 | 111.0 | |||||||||||||||||||
Saltwater Fishing Boats | — | — | 82.6 | 82.6 | |||||||||||||||||||
Business Acceleration | — | — | 11.2 | 11.2 | |||||||||||||||||||
Boat Eliminations/Other | — | — | (1.2) | (1.2) | |||||||||||||||||||
Segment Eliminations | (73.4) | (8.0) | — | (81.4) | |||||||||||||||||||
Total | $ | 453.1 | $ | 451.9 | $ | 328.1 | $ | 1,233.1 |
Three Months Ended | |||||||||||||||||||||||
September 28, 2019 | |||||||||||||||||||||||
Propulsion | Parts & Accessories | Boat | Total | ||||||||||||||||||||
Geographic Markets | |||||||||||||||||||||||
United States | $ | 273.8 | $ | 267.8 | $ | 216.9 | $ | 758.5 | |||||||||||||||
Europe | 45.0 | 44.2 | 20.8 | 110.0 | |||||||||||||||||||
Asia-Pacific | 35.3 | 26.2 | 9.6 | 71.1 | |||||||||||||||||||
Canada | 18.0 | 26.7 | 24.9 | 69.6 | |||||||||||||||||||
Rest-of-World | 24.8 | 8.1 | 5.2 | 38.1 | |||||||||||||||||||
Segment Eliminations | (63.8) | (6.9) | — | (70.7) | |||||||||||||||||||
Total | $ | 333.1 | $ | 366.1 | $ | 277.4 | $ | 976.6 | |||||||||||||||
Major Product Lines | |||||||||||||||||||||||
Outboard Engines | $ | 305.3 | $ | — | $ | — | $ | 305.3 | |||||||||||||||
Controls, Rigging, and Propellers | 55.8 | — | — | 55.8 | |||||||||||||||||||
Sterndrive Engines | 35.8 | — | — | 35.8 | |||||||||||||||||||
Distribution Parts and Accessories | — | 156.8 | — | 156.8 | |||||||||||||||||||
Advanced Systems Group | — | 97.8 | — | 97.8 | |||||||||||||||||||
Engine Parts and Accessories | — | 118.4 | — | 118.4 | |||||||||||||||||||
Aluminum Freshwater Boats | — | — | 105.2 | 105.2 | |||||||||||||||||||
Recreational Fiberglass Boats | — | — | 97.0 | 97.0 | |||||||||||||||||||
Saltwater Fishing Boats | — | — | 66.9 | 66.9 | |||||||||||||||||||
Business Acceleration | — | — | 8.8 | 8.8 | |||||||||||||||||||
Boat Eliminations/Other | — | — | (0.5) | (0.5) | |||||||||||||||||||
Segment Eliminations | (63.8) | (6.9) | — | (70.7) | |||||||||||||||||||
Total | $ | 333.1 | $ | 366.1 | $ | 277.4 | $ | 976.6 |
Brunswick Corporation Selected Financial Information (in millions) (unaudited) Disaggregated Revenue | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 26, 2020 | |||||||||||||||||||||||
Propulsion | Parts & Accessories | Boat | Total | ||||||||||||||||||||
Geographic Markets | |||||||||||||||||||||||
United States | $ | 871.0 | $ | 841.4 | $ | 663.0 | $ | 2,375.4 | |||||||||||||||
Europe | 195.4 | 135.9 | 95.9 | 427.2 | |||||||||||||||||||
Asia-Pacific | 183.7 | 80.7 | 16.2 | 280.6 | |||||||||||||||||||
Canada | 47.2 | 63.4 | 78.4 | 189.0 | |||||||||||||||||||
Rest-of-World | 73.2 | 26.6 | 16.0 | 115.8 | |||||||||||||||||||
Segment Eliminations | (182.3) | (19.3) | — | (201.6) | |||||||||||||||||||
Total | $ | 1,188.2 | $ | 1,128.7 | $ | 869.5 | $ | 3,186.4 | |||||||||||||||
Major Product Lines | |||||||||||||||||||||||
Outboard Engines | $ | 1,078.4 | $ | — | $ | — | $ | 1,078.4 | |||||||||||||||
Controls, Rigging, and Propellers | 187.6 | — | — | 187.6 | |||||||||||||||||||
Sterndrive Engines | 104.5 | — | — | 104.5 | |||||||||||||||||||
Distribution Parts and Accessories | — | 517.0 | — | 517.0 | |||||||||||||||||||
Advanced Systems Group | — | 303.0 | — | 303.0 | |||||||||||||||||||
Engine Parts and Accessories | — | 328.0 | — | 328.0 | |||||||||||||||||||
Aluminum Freshwater Boats | — | — | 339.2 | 339.2 | |||||||||||||||||||
Recreational Fiberglass Boats | — | — | 302.4 | 302.4 | |||||||||||||||||||
Saltwater Fishing Boats | — | — | 201.4 | 201.4 | |||||||||||||||||||
Business Acceleration | — | — | 29.5 | 29.5 | |||||||||||||||||||
Boat Eliminations/Other | — | — | (3.0) | (3.0) | |||||||||||||||||||
Segment Eliminations | (182.3) | (19.3) | — | (201.6) | |||||||||||||||||||
Total | $ | 1,188.2 | $ | 1,128.7 | $ | 869.5 | $ | 3,186.4 |
Nine Months Ended | |||||||||||||||||||||||
September 28, 2019 | |||||||||||||||||||||||
Propulsion | Parts & Accessories | Boat (1) | Total | ||||||||||||||||||||
Geographic Markets | |||||||||||||||||||||||
United States | $ | 893.5 | $ | 783.0 | $ | 762.0 | $ | 2,438.5 | |||||||||||||||
Europe | 193.2 | 140.9 | 92.1 | 426.2 | |||||||||||||||||||
Asia-Pacific | 100.2 | 74.8 | 21.4 | 196.4 | |||||||||||||||||||
Canada | 49.1 | 66.4 | 122.3 | 237.8 | |||||||||||||||||||
Rest-of-World | 74.8 | 31.5 | 19.5 | 125.8 | |||||||||||||||||||
Segment Eliminations | (210.7) | (23.2) | — | (233.9) | |||||||||||||||||||
Total | $ | 1,100.1 | $ | 1,073.4 | $ | 1,017.3 | $ | 3,190.8 | |||||||||||||||
Major Product Lines | |||||||||||||||||||||||
Outboard Engines | $ | 1,011.5 | $ | — | $ | — | $ | 1,011.5 | |||||||||||||||
Controls, Rigging, and Propellers | 166.8 | — | — | 166.8 | |||||||||||||||||||
Sterndrive Engines | 132.5 | — | — | 132.5 | |||||||||||||||||||
Distribution Parts and Accessories | — | 455.6 | — | 455.6 | |||||||||||||||||||
Advanced Systems Group | — | 322.6 | — | 322.6 | |||||||||||||||||||
Engine Parts and Accessories | — | 318.4 | — | 318.4 | |||||||||||||||||||
Aluminum Freshwater Boats | — | — | 432.2 | 432.2 | |||||||||||||||||||
Recreational Fiberglass Boats | — | — | 331.5 | 331.5 | |||||||||||||||||||
Saltwater Fishing Boats | — | — | 239.7 | 239.7 | |||||||||||||||||||
Business Acceleration | — | — | 15.4 | 15.4 | |||||||||||||||||||
Boat Eliminations/Other | — | — | (1.5) | (1.5) | |||||||||||||||||||
Segment Eliminations | (210.7) | (23.2) | — | (233.9) | |||||||||||||||||||
Total | $ | 1,100.1 | $ | 1,073.4 | $ | 1,017.3 | $ | 3,190.8 |
Brunswick Corporation Comparative Condensed Consolidated Balance Sheets (in millions) (unaudited) | |||||||||||||||||
September 26, 2020 | December 31, 2019 | September 28, 2019 | |||||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents, at cost, which approximates fair value | $ | 650.4 | $ | 320.3 | $ | 366.2 | |||||||||||
Restricted cash | 9.1 | 11.6 | 11.6 | ||||||||||||||
Short-term investments in marketable securities | 0.8 | 0.8 | 0.8 | ||||||||||||||
Total cash and short-term investments in marketable securities | 660.3 | 332.7 | 378.6 | ||||||||||||||
Accounts and notes receivable, net | 398.8 | 331.8 | 414.7 | ||||||||||||||
Inventories | |||||||||||||||||
Finished goods | 347.6 | 554.3 | 532.3 | ||||||||||||||
Work-in-process | 91.6 | 101.3 | 102.4 | ||||||||||||||
Raw materials | 150.2 | 168.9 | 175.5 | ||||||||||||||
Net inventories | 589.4 | 824.5 | 810.2 | ||||||||||||||
Prepaid expenses and other | 32.7 | 36.8 | 90.1 | ||||||||||||||
Current assets | 1,681.2 | 1,525.8 | 1,693.6 | ||||||||||||||
Net property | 819.1 | 796.4 | 763.7 | ||||||||||||||
Other assets | |||||||||||||||||
Goodwill | 416.3 | 415.0 | 414.0 | ||||||||||||||
Other intangibles, net | 559.6 | 583.5 | 591.0 | ||||||||||||||
Deferred income tax asset | 93.7 | 118.7 | 67.4 | ||||||||||||||
Operating lease assets | 82.0 | 83.2 | 82.4 | ||||||||||||||
Equity investments | 25.5 | 29.5 | 27.8 | ||||||||||||||
Other long-term assets | 13.4 | 12.3 | 14.5 | ||||||||||||||
Other assets | 1,190.5 | 1,242.2 | 1,197.1 | ||||||||||||||
Total assets | $ | 3,690.8 | $ | 3,564.4 | $ | 3,654.4 | |||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Short-term debt and current maturities of long-term debt | $ | 48.4 | $ | 41.3 | $ | 48.5 | |||||||||||
Accounts payable | 392.9 | 393.5 | 347.6 | ||||||||||||||
Accrued expenses | 508.3 | 509.6 | 507.9 | ||||||||||||||
Current liabilities | 949.6 | 944.4 | 904.0 | ||||||||||||||
Debt | 1,013.2 | 1,068.0 | 1,083.0 | ||||||||||||||
Other long-term liabilities | 269.8 | 251.1 | 249.2 | ||||||||||||||
Shareholders’ equity | 1,458.2 | 1,300.9 | 1,418.2 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,690.8 | $ | 3,564.4 | $ | 3,654.4 | |||||||||||
Supplemental Information | |||||||||||||||||
Debt-to-capitalization rate | 42.1 | % | 46.0 | % | 44.4 | % |
Brunswick Corporation Comparative Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) | |||||||||||
Nine Months Ended | |||||||||||
September 26, 2020 | September 28, 2019 | ||||||||||
Cash flows from operating activities | |||||||||||
Earnings (loss) | $ | 277.6 | $ | (198.1) | |||||||
Less: net loss from discontinued operations, net of tax | (1.1) | (153.5) | |||||||||
Net earnings (loss) from continuing operations, net of tax | 278.7 | (44.6) | |||||||||
Stock compensation expense | 19.6 | 12.2 | |||||||||
Depreciation and amortization | 110.5 | 101.5 | |||||||||
Pension expense, net of (funding) | (2.8) | 291.6 | |||||||||
Asset impairment charges | 0.7 | 2.9 | |||||||||
Deferred income taxes | 26.5 | (12.1) | |||||||||
Changes in certain current assets and current liabilities | 166.0 | (197.2) | |||||||||
Extended warranty contracts and other deferred revenue | 10.9 | 8.6 | |||||||||
Income taxes | 8.8 | 87.2 | |||||||||
Other, net | 18.5 | 4.1 | |||||||||
Net cash provided by operating activities of continuing operations | 637.4 | 254.2 | |||||||||
Net cash provided by (used for) operating activities of discontinued operations | 3.5 | (37.9) | |||||||||
Net cash provided by operating activities | 640.9 | 216.3 | |||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (120.6) | (178.4) | |||||||||
Investments | 2.5 | 4.7 | |||||||||
Acquisition of businesses, net of cash acquired | — | (64.1) | |||||||||
Proceeds from the sale of property, plant and equipment | 2.0 | 6.4 | |||||||||
Net cash used for investing activities of continuing operations | (116.1) | (231.4) | |||||||||
Net cash (used for) provided by investing activities of discontinued operations | (7.5) | 481.9 | |||||||||
Net cash (used for) provided by investing activities | (123.6) | 250.5 | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from issuances of short-term debt | 610.0 | 655.0 | |||||||||
Payments of short-term debt | (610.0) | (655.0) | |||||||||
Net proceeds from issuances of long-term debt | — | 223.4 | |||||||||
Payments of long-term debt including current maturities | (48.4) | (318.3) | |||||||||
Common stock repurchases | (79.1) | (231.1) | |||||||||
Cash dividends paid | (57.2) | (54.1) | |||||||||
Proceeds from share-based compensation activity | 1.1 | 0.9 | |||||||||
Tax withholding associated with shares issued for share-based compensation | (7.3) | (9.8) | |||||||||
Other, net | — | (0.2) | |||||||||
Net cash used for financing activities | (190.9) | (389.2) | |||||||||
Effect of exchange rate changes | 1.2 | (3.2) | |||||||||
Net increase in Cash and cash equivalents and Restricted cash | 327.6 | 74.4 | |||||||||
Cash and cash equivalents and Restricted cash at beginning of period | 331.9 | 303.4 | |||||||||
Cash and cash equivalents and Restricted cash at end of period | 659.5 | 377.8 | |||||||||
Less: Restricted cash | 9.1 | 11.6 | |||||||||
Cash and cash equivalents at end of period | $ | 650.4 | $ | 366.2 | |||||||
Reconciliation | |||||||||||
Free cash flow | |||||||||||
Net cash provided by operating activities | $ | 637.4 | $ | 254.2 | |||||||
Net cash provided by (used for): | |||||||||||
Capital expenditures | (120.6) | (178.4) | |||||||||
Proceeds from the sale of property, plant and equipment | 2.0 | 6.4 | |||||||||
Effect of exchange rate changes | 1.2 | (3.2) | |||||||||
Free cash flow | $ | 520.0 | $ | 79.0 |