EX-99.A 3 dex99a.txt PRESS RELEASE EXHIBIT 99(a) [H.B. Fuller H.B. Fuller Company Contact: Scott Dvorak Logo] Corporate Headquarters Investor Relations 651-236-5150 P.O 64683 St. Paul, Minnesota 55164-0683 -------------------------------------------------------------------------------- NEWS For Immediate Release January 14, 2003 Note: H.B. Fuller will host a conference call January 15, 2003 at 9:30 a.m. central time (10:30 a.m. eastern time). The call can be heard live over the Internet at H.B. Fuller's website at http://www.hbfuller.com under the section shareholder information or at www.streetevents.com. H.B. Fuller Reports Improved Fourth Quarter and Total Year Results ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL) today reported sales and net income for the fourth quarter that ended November 30, 2002. Fourth quarter net income as reported was $10.4 million or $0.36 per share (diluted). These results include $9.1 million ($6.2 million after-tax) or $0.22 per share (diluted), of net charges for asset impairments, severance and other costs relating to the restructuring initiative announced earlier in the year. For 2001, net income as reported was $12.9 million or $0.46 per share (diluted), which included $1.6 million ($1.5 million after-tax) or $0.05 per share (diluted) for asset impairments related to the restructuring initiative. Fourth quarter net income, excluding special charges related to the restructuring initiative, totaled $16.6 million or $0.58 per share (diluted). Last year's fourth quarter net income, excluding special charges related to the restructuring initiative, was $14.4 million, or $0.51 per share (diluted). -------------------------------------------------------------------------------- Net income EPS (diluted) ------------------------------- As reported, including special items Q4, 2002 $10.4 million(a) $0.36(a) in 2002 and 2001 Q4, 2001 $12.9 million $0.46 Change -19.8% -21.7% -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Net income EPS (diluted) ------------------------------ Excluding special items in 2002 Q4, 2002 $16.6 million(a) $0.58(a) and 2001 Q4, 2001 $14.4 million $0.51 Change 14.9% 13.7% -------------------------------------------------------------------------------- (a) Includes the effect of ceasing goodwill amortization related to adopting FAS No. 142, $0.7 million or $.02 per share. 1 Al Stroucken, CEO, said, "It was a solid quarter and year for our company, one that saw us earn respectable results in a very difficult environment. With a large part of the restructuring completed, we believe our improved cost structures and business model will provide for future growth and improved profits, even in the present uncertain economic conditions." Fourth Quarter Revenues Net revenue for the fourth quarter of 2002 was $329.6 million, a 2.1 percent increase from the fourth quarter of 2001. Volume and currency accounted for increases of 1.5 percent and 1.8 percent respectively, while pricing resulted in a decrease of 1.2 percent. Fourth Quarter Segment Revenue > Global Adhesives' net revenue increased 2.4 percent compared to last year. o Volume increased 1.9 percent. o Prices decreased 1.9 percent. o Currency had a positive impact of 2.4 percent. > Full-Valu / Specialty Group's net revenue increased 1.4 percent compared to last year. o Volume increased 0.7 percent. o Prices increased 0.2 percent. o Currency had a positive impact of 0.5 percent. Operating income in Global Adhesives in the fourth quarter was $19.4 million, an increase of $4.8 million from the fourth quarter of 2001. Full-Valu / Specialty's operating income of $9.2 million decreased $3.1 million from the previous year's fourth quarter. Operating income for the business segments excludes special charges related to the restructuring initiative. Total Year Results ------------------ Reported net income for 2002 was $28.2 million or $0.98 per share (diluted). These results included $29.7 million ($19.1 million after-tax) or $0.67 per share (diluted) of net charges for asset impairments, severance and other costs relating to the restructuring initiative announced in the first quarter. Last year's net income, which included the cumulative effect of an accounting change was $44.4 million, or $1.57 per share (diluted). 2 For 2002, net income, excluding special charges related to the restructuring initiative, was $47.3 million or $1.65 per share (diluted). For 2001, net income, excluding the cumulative effect of an accounting change and special charges related to the restructuring initiative, was $46.4 million or $1.64 per share (diluted). Last year's net income also included a one-time tax benefit of $0.09 per share (diluted). -------------------------------------------------------------------------------- Full Year Net income EPS (diluted) ------------------------------- As reported, including special items 2002 $28.2 million(a) $0.98(a) in 2002 and the cumulative effect of 2001 $44.4 million(b) $1.57(b) an accounting change in 2001 Change -36.6% -37.6% -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Full Year Net income EPS (diluted) ----------------------------- Excluding special items in 2002 and 2002 $47.3 million(a) $1.65(a) the cumulative effect of an accounting 2001 $46.4 million(b) $1.64(b) change in 2001 Change 1.9% 0.6% -------------------------------------------------------------------------------- (a) Includes the effect of ceasing goodwill amortization related to adopting FAS No. 142, $2.6 million or $.09 per share. (b) Includes a one-time tax benefit of $2.6 million or $.09 per share. Net revenue for 2002 was $1,256 million, a 1.4 percent decrease from the previous year. Volume and pricing were down 0.8 percent and 1.1 percent respectively and positive currency effects accounted for an increase of 0.5 percent. Operating income in Global Adhesives for 2002 was $58.1 million, an increase of $2.6 million from 2001. Full-Valu / Specialty's operating income of $30.1 million decreased $4.1 million from the previous year. Operating income for the business segments excludes special charges related to the restructuring initiative. ---------- The information presented above reflects adjustments to `As Reported' results to exclude certain special items related to the Company's restructuring initiative. This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America. It is provided solely to assist in an investor's understanding of the impact of the special items on the comparability of the Company's operations. 3 Safe Harbor for Forward-Looking Statement Certain statements in this document are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: political and economic conditions; product demand and industry capacity; competitive products and pricing; manufacturing efficiencies; new product development; product mix; availability and price of raw materials and critical manufacturing equipment; new plant startups; accounts receivable collection; the company's relationships with its major customers and suppliers; changes in tax laws and tariffs; patent rights that could provide significant advantage to a competitor; devaluations and other foreign exchange rate fluctuations (particularly with respect to the euro, the British pound, the Japanese yen, the Australian dollar, the Argentine peso and the Brazilian real); the regulatory and trade environment; and other risks as indicated from time to time in the company's filings with the Securities and Exchange Commission. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the company and the regions where the company does business makes it difficult to determine with certainty the increases or decreases in sales resulting from changes in the volume of products sold, currency impact, changes in product mix and selling prices. However, management's best estimates of these changes as well as changes in other factors have been included. References to volume changes include volume and product mix changes, combined. ---------- H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products, with fiscal 2002 sales of $1.256 billion. Common stock is traded on the NYSE exchange under the symbol FUL. For more information about the Company, visit their website at: http://www.hbfuller.com. ----------------------- 4 H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited) 13 Weeks 13 Weeks Ended Ended November 30, December 1, 2002 2001 ------------ ----------- Net sales $ 329,632 $ 322,906 Cost of sales (238,449) (234,065) --------- --------- Gross profit 91,183 88,841 Selling, administrative and other expenses (73,673) (63,383) Interest expense (3,777) (4,884) Other income (expense), net 1,531 (1,701) --------- --------- Income before income taxes, minority interests and income from equity investments 15,264 18,873 Income taxes (5,239) (6,500) Minority interests in consolidated income (308) (186) Income from equity investments 659 755 --------- --------- Net Income $ 10,376 $ 12,942 ========= ========= Basic income per common share $ 0.37 $ 0.46 ========= ========= Diluted income per common share $ 0.36 $ 0.46 ========= ========= Weighted-average common shares outstanding: Basic 28,168 27,989 Diluted 28,693 28,402 Selected Balance Sheet Information (subject to change prior to filing of the ---------------------------------------------------------------------------- Company's Annual Report on Form 10-K) ------------------------------------- November 30, December 1, 2002 2001 ------------ ----------- Inventory $ 143,012 $ 141,210 Trade accounts receivable, net 213,425 211,590 Trade accounts payable 113,297 114,155 Total assets 966,790 966,173 Long-term debt 161,763 203,001 H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)
13 Weeks Ended - November 30, 2002 13 Weeks Ended - December 1, 2001 ----------------------------------------- ----------------------------------------- Excluding Excluding As Reported Special Items Special Items As Reported Special Items Special Items ----------------------------------------- ----------------------------------------- Net sales $ 329,632 $ -- $ 329,632 $ 322,906 $ -- $ 322,906 Cost of sales (238,449) (3,499) (234,950) (234,065) (1,564) (232,501) ------------------------------------- --------------------------------------- Gross profit 91,183 (3,499) 94,682 88,841 (1,564) 90,405 Selling, administrative and other expenses (73,673) (7,659) (66,014) (63,383) -- (63,383) Interest expense (3,777) -- (3,777) (4,884) -- (4,884) Other income (expense), net 1,531 2,044 (513) (1,701) -- (1,701) ------------------------------------- --------------------------------------- Income before income taxes, minority interests and income from equity investments 15,264 (9,114) 24,378 18,873 (1,564) 20,437 Income taxes (5,239) 2,879 (8,118) (6,500) 97 (6,597) Minority interests in consolidated income (308) 58 (366) (186) -- (186) Income from equity investments 659 -- 659 755 -- 755 ------------------------------------- --------------------------------------- Net Income $ 10,376 $ (6,177) $ 16,553 $ 12,942 $(1,467) $ 14,409 ===================================== ======================================= Basic income (loss) per common share $ 0.37 $ (0.22) $ 0.59 $ 0.46 $ (0.05) $ 0.51 ===================================== ======================================= Diluted income (loss) per common share $ 0.36 $ (0.22) $ 0.58 $ 0.46 $ (0.05) $ 0.51 ===================================== ======================================= Weighted-average common shares outstanding: Basic 28,168 28,168 28,168 27,989 27,989 27,989 Diluted 28,693 28,693 28,693 28,402 28,402 28,402
H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)
52 Weeks 52 Weeks Ended Ended November 30, 2002 December 1, 2001 --------------- ---------------- Net sales $ 1,256,210 $ 1,274,059 Cost of sales (918,228) (928,506) ----------- ----------- Gross profit 337,982 345,553 Selling, administrative and other expenses (281,560) (257,446) Interest expense (17,266) (21,247) Other income (expense), net 1,156 (5,558) ----------- ----------- Income before income taxes, minority interests and income from equity investments 40,312 61,302 Income taxes (12,973) (17,665) Minority interests in consolidated income (989) (873) Income from equity investments 1,826 2,176 ----------- ----------- Income before cumulative effect of accounting change $ 28,176 $ 44,940 Cumulative effect of accounting change -- (501) ----------- ----------- Net Income $ 28,176 $ 44,439 =========== =========== Basic income (loss) per common share: Income before accounting change $ 1.00 $ 1.61 Accounting Change -- (0.02) ----------- ----------- Net Income $ 1.00 $ 1.59 =========== =========== Diluted income (loss) per common share: Income before accounting change $ 0.98 $ 1.59 Accounting change -- (0.02) ----------- ----------- Net Income $ 0.98 $ 1.57 =========== =========== Weighted-average common shares outstanding: Basic 28,095 27,962 Diluted 28,601 28,330
H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)
52 Weeks Ended - November 30, 2002 52 Weeks Ended - December 1, 2001 --------------------------------------- --------------------------------------- Excluding Excluding As Reported Special Items Special Items As Reported Special Items Special Items --------------------------------------- --------------------------------------- Net sales $1,256,210 $ -- $1,256,210 $1,274,059 $ -- $1,274,059 Cost of sales (918,228) (18,122) (900,106) (928,506) (1,564) (926,942) -------------------------------------- -------------------------------------- Gross profit 337,982 (18,122) 356,104 345,553 (1,564) 347,117 Selling, administrative and other expenses (281,560) (13,659) (267,901) (257,446) -- (257,446) Interest expense (17,266) -- (17,266) (21,247) -- (21,247) Other income (expense), net 1,156 2,044 (888) (5,558) -- (5,558) -------------------------------------- -------------------------------------- Income before income taxes, minority interests and income from equity investments 40,312 (29,737) 70,049 61,302 (1,564) 62,866 Income taxes (12,973) 10,146 (23,119) (17,665) 97 (17,762) Minority interests in consolidated income (989) 489 (1,478) (873) -- (873) Income from equity investments 1,826 -- 1,826 2,176 -- 2,176 -------------------------------------- -------------------------------------- Income before cumulative effect of accounting change $ 28,176 $(19,102) $ 47,278 $ 44,940 $(1,467) $ 46,407 Cumulative effect of accounting change -- -- -- (501) -- (501) -------------------------------------- -------------------------------------- Net Income $ 28,176 $(19,102) $ 47,278 $ 44,439 $(1,467) $ 45,906 ====================================== ====================================== Basic income (loss) per common share: Income before accounting change $ 1.00 $ (0.68) $ 1.68 $ 1.61 $ (0.05) $ 1.66 Accounting Change -- -- -- (0.02) -- (0.02) -------------------------------------- -------------------------------------- Net Income $ 1.00 $ (0.68) $ 1.68 $ 1.59 $ (0.05) $ 1.64 ====================================== ====================================== Diluted income (loss) per common share: Income before accounting change $ 0.98 $ (0.67) $ 1.65 $ 1.59 $ (0.05) $ 1.64 Accounting change -- -- -- (0.02) -- (0.02) -------------------------------------- -------------------------------------- Net Income $ 0.98 $ (0.67) $ 1.65 $ 1.57 $ (0.05) $ 1.62 ====================================== ====================================== Weighted-average common shares outstanding Basic 28,095 28,095 28,095 27,962 27,962 27,962 Diluted 28,601 28,601 28,601 28,330 28,330 28,330