Quarterly Financial Summary

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information [Text Block]

Quarterly Financial Summary (Unaudited)

Following is a summary of the unaudited interim results of operations for each quarter in the years ended December 28, 2019 and December 29, 2018.



(In millions, except per share amounts)	First quarter		Second quarter		Third quarter		Fourth quarter
Year ended December 28, 2019
Net sales	$	487.3	$	475.3	$	418.1	$	417.2
Gross margin	326.1		320.7		276.6		263.7
Net income (loss)	36.9		39.4		7.8		(71.7		)
Basic earnings (loss) per share	0.76		0.81		0.16		(1.47		)
Diluted earnings (loss) per share	0.76		0.81		0.16		(1.47		)
Dividends declared per share	0.27		0.27		0.27		—
Year ended December 29, 2018
Net sales	$	542.6	$	535.4	$	485.8	$	505.9
Gross margin	363.6		361.9		321.7		330.3
Net income	35.7		63.8		39.1		17.3
Basic earnings per share	0.70		1.26		0.79		0.36
Diluted earnings per share	0.70		1.26		0.79		0.35
Dividends declared per share	0.68		0.68		0.68		0.68

Certain items impacting quarterly comparability for 2019 and 2018 were as follows:

•

Pretax re-engineering costs of $4.3 million, $4.1 million, $7.5 million and $18.8 million were recorded in the first through fourth quarters of 2019, respectively. Pretax re-engineering costs of $7.6 million, $2.1 million, $3.0 million and $3.2 million were recorded in the first through fourth quarters of 2018, respectively. Refer to Note 2 to the Consolidated Financial Statements for further discussion.


•	In the third quarter of 2019, the Company recorded a $17.5 million impairment charge related to goodwill of Fuller Mexico and a $2.2 million impairment charge related to the Nutrimetics tradename. In the fourth quarter of 2019, the Company recorded a $20.3 million impairment charge related to the Fuller tradename.

•

In Argentina and Venezuela for all quarters in 2019 and 2018, in connection with re-measuring net monetary assets and recording in cost of sales inventory at the exchange rate when it was purchased or manufactured compared to when it was sold, the Company recorded charges of $0.3 million, $0.1 million, $0.7 million and $0.5 million in the first, second, third and fourth quarters of 2019, respectively, and charges of $0.2 million, $0.1 million, $0.8 million and $1.0 million in the same quarters of 2018. See Note 1 of the Consolidated Financial Statements.

•

Pretax losses on disposal of assets were $0.9 million and $0.2 million for the first and second quarters of 2019, respectively, and pretax gains on the disposal of assets were $12.2 million and $1.8 million in the third and fourth quarters of 2019, respectively. The gains in 2018 were $2.2 million, $12.4 million, $1.5 million and $2.6 million in the first through fourth quarters, respectively. These gains were primarily related to transactions associated with land near the Company's Orlando, Florida headquarters along with transactions associated with the sale of the French marketing office in the third quarter of 2019, the sale and leaseback of a distribution facility in Japan in the second quarter of 2018 and the Beauticontrol headquarters in Texas in the first quarter of 2018.