Delaware | 001-08454 | 36-2704017 |
(State or other jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Four Corporate Drive Lake Zurich, IL 60047 | 60047 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12) |
o | Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b)) |
o | Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4(c)) |
Item 2.02. | Results of Operations and Financial Condition |
ACCO Brands Corporation (Registrant) | ||||
Date: | February 13, 2019 | By: | /s/ Neal V. Fenwick | |
Name: Neal V. Fenwick | ||||
Title: Executive Vice President | ||||
and Chief Financial Officer |
2019 Guidance | |
Net sales growth | (3)% to 0% |
Adjusted EPS | $1.10 to $1.20 |
Free Cash Flow | $165 million to $175 million |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||
2018 | 2017 (A) | % Change | 2018 | 2017 (A) | % Change | ||||||||||||||
Net sales | $ | 529.3 | $ | 566.8 | (7)% | $ | 1,941.2 | $ | 1,948.8 | —% | |||||||||
Cost of products sold | 352.2 | 367.4 | (4)% | 1,313.4 | 1,291.5 | 2% | |||||||||||||
Gross profit | 177.1 | 199.4 | (11)% | 627.8 | 657.3 | (4)% | |||||||||||||
Operating costs and expenses: | |||||||||||||||||||
Selling, general and administrative expenses | 97.8 | 107.3 | (9)% | 392.4 | 415.5 | (6)% | |||||||||||||
Amortization of intangibles | 9.5 | 9.2 | 3% | 36.7 | 35.6 | 3% | |||||||||||||
Restructuring charges | 3.8 | 5.6 | (32)% | 11.7 | 21.7 | (46)% | |||||||||||||
Total operating costs and expenses | 111.1 | 122.1 | (9)% | 440.8 | 472.8 | (7)% | |||||||||||||
Operating income | 66.0 | 77.3 | (15)% | 187.0 | 184.5 | 1% | |||||||||||||
Non-operating expense (income): | |||||||||||||||||||
Interest expense | 10.3 | 9.8 | 5% | 41.2 | 41.1 | —% | |||||||||||||
Interest income | (0.9 | ) | (0.9 | ) | —% | (4.4 | ) | (5.8 | ) | (24)% | |||||||||
Non-operating pension income | (2.2 | ) | (2.3 | ) | (4)% | (9.3 | ) | (8.5 | ) | 9% | |||||||||
Other expense (income), net | — | 0.6 | (100)% | 1.6 | (0.4 | ) | NM | ||||||||||||
Income before income tax | 58.8 | 70.1 | (16)% | 157.9 | 158.1 | —% | |||||||||||||
Income tax expense (income) | 23.8 | (3.9 | ) | NM | 51.2 | 26.4 | 94% | ||||||||||||
Net income | $ | 35.0 | $ | 74.0 | (53)% | $ | 106.7 | $ | 131.7 | (19)% | |||||||||
Per share: | |||||||||||||||||||
Basic income per share | $ | 0.34 | $ | 0.69 | (51)% | $ | 1.02 | $ | 1.22 | (16)% | |||||||||
Diluted income per share | $ | 0.34 | $ | 0.68 | (50)% | $ | 1.00 | $ | 1.19 | (16)% | |||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||
Basic | 102.7 | 106.6 | 104.8 | 108.1 | |||||||||||||||
Diluted | 104.0 | 109.2 | 107.0 | 110.9 | |||||||||||||||
Dividends per common share | $ | 0.06 | $ | — | $ | 0.24 | $ | — | |||||||||||
Statistics (as a % of Net sales, except Income tax rate) | |||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Gross profit (Net sales, less Cost of products sold) | 33.5 | % | 35.2 | % | 32.3 | % | 33.7 | % | |||||||||||
Selling, general and administrative expenses | 18.5 | % | 18.9 | % | 20.2 | % | 21.3 | % | |||||||||||
Operating income | 12.5 | % | 13.6 | % | 9.6 | % | 9.5 | % | |||||||||||
Income before income tax | 11.1 | % | 12.4 | % | 8.1 | % | 8.1 | % | |||||||||||
Net income | 6.6 | % | 13.1 | % | 5.5 | % | 6.8 | % | |||||||||||
Income tax rate | 40.5 | % | (5.6 | )% | 32.4 | % | 16.7 | % |
Three Months Ended December 31, 2018 | Three Months Ended December 31, 2017 | ||||||||||||||||||||||||||||||||||||||
Reported | % of | Adjusted | Adjusted | % of | Reported | % of | Adjusted | Adjusted | % of | % Change | |||||||||||||||||||||||||||||
GAAP | Sales | Items | Non-GAAP | Sales | GAAP | Sales | Items | Non-GAAP | Sales | Adjusted | |||||||||||||||||||||||||||||
Gross profit | $ | 177.1 | 33.5 | % | $ | 0.1 | (A.1) | $ | 177.2 | 33.5 | % | $ | 199.4 | 35.2 | % | $ | — | $ | 199.4 | 35.2 | % | (11 | )% | ||||||||||||||||
Selling, general and administrative expenses | 97.8 | 18.5 | % | (0.2 | ) | (A.2) | 97.6 | 18.4 | % | 107.3 | 18.9 | % | (1.8 | ) | (A.2) | 105.5 | 18.6 | % | (7 | )% | |||||||||||||||||||
Restructuring charges | 3.8 | (3.8 | ) | (A.3) | — | 5.6 | (5.6 | ) | (A.3) | — | NM | ||||||||||||||||||||||||||||
Operating income | 66.0 | 12.5 | % | 4.1 | 70.1 | 13.2 | % | 77.3 | 13.6 | % | 7.4 | 84.7 | 14.9 | % | (17 | )% | |||||||||||||||||||||||
Income before income tax | 58.8 | 11.1 | % | 4.1 | 62.9 | 11.9 | % | 70.1 | 12.4 | % | 7.4 | 77.5 | 13.7 | % | (19 | )% | |||||||||||||||||||||||
Income tax expense (income) | 23.8 | (3.8 | ) | (A.7) | 20.0 | (3.9 | ) | 28.7 | (A.7) | 24.8 | (19 | )% | |||||||||||||||||||||||||||
Income tax rate | 40.5 | % | 32.0 | % | (5.6 | )% | 32.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 35.0 | 6.6 | % | $ | 7.9 | $ | 42.9 | 8.1 | % | $ | 74.0 | 13.1 | % | $ | (21.3 | ) | $ | 52.7 | 9.3 | % | (19 | )% | ||||||||||||||||
Diluted income per share | $ | 0.34 | $ | 0.08 | $ | 0.41 | $ | 0.68 | $ | (0.20 | ) | $ | 0.48 | (15 | )% | ||||||||||||||||||||||||
Weighted average number of shares outstanding: | 104.0 | 104.0 | 109.2 | 109.2 | |||||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2018 | Twelve Months Ended December 31, 2017 | ||||||||||||||||||||||||||||||||||||||
Reported | % of | Adjusted | Adjusted | % of | Reported | % of | Adjusted | Adjusted | % of | % Change | |||||||||||||||||||||||||||||
GAAP | Sales | Items | Non-GAAP | Sales | GAAP | Sales | Items | Non-GAAP | Sales | Adjusted | |||||||||||||||||||||||||||||
Gross profit | $ | 627.8 | 32.3 | % | $ | 0.1 | (A.1) | $ | 627.9 | 32.3 | % | $ | 657.3 | 33.7 | % | $ | 0.9 | (A.1) | $ | 658.2 | 33.8 | % | (5 | )% | |||||||||||||||
Selling, general and administrative expenses | 392.4 | 20.2 | % | (4.6 | ) | (A.2) | 387.8 | 20.0 | % | 415.5 | 21.3 | % | (14.9 | ) | (A.2) | 400.6 | 20.6 | % | (3 | )% | |||||||||||||||||||
Restructuring charges | 11.7 | (11.7 | ) | (A.3) | — | 21.7 | (21.7 | ) | (A.3) | — | NM | ||||||||||||||||||||||||||||
Operating income | 187.0 | 9.6 | % | 16.4 | 203.4 | 10.5 | % | 184.5 | 9.5 | % | 37.5 | 222.0 | 11.4 | % | (8 | )% | |||||||||||||||||||||||
Interest expense | 41.2 | (0.6 | ) | (A.4) | 40.6 | 41.1 | — | 41.1 | (1 | )% | |||||||||||||||||||||||||||||
Non-operating pension income | (9.3 | ) | 0.6 | (A.5) | (8.7 | ) | (8.5 | ) | — | (8.5 | ) | 2 | % | ||||||||||||||||||||||||||
Other expense (income), net | 1.6 | — | 1.6 | (0.4 | ) | 2.0 | (A.6) | 1.6 | — | % | |||||||||||||||||||||||||||||
Income before income tax | 157.9 | 8.1 | % | 16.4 | 174.3 | 9.0 | % | 158.1 | 8.1 | % | 35.5 | 193.6 | 9.9 | % | (10 | )% | |||||||||||||||||||||||
Income tax expense | 51.2 | 1.1 | (A.7) | 52.3 | 26.4 | 35.6 | (A.7) | 62.0 | (16 | )% | |||||||||||||||||||||||||||||
Income tax rate | 32.4 | % | 30.0 | % | 16.7 | % | 32.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 106.7 | 5.5 | % | $ | 15.3 | $ | 122.0 | 6.3 | % | $ | 131.7 | 6.8 | % | $ | (0.1 | ) | $ | 131.6 | 6.8 | % | (7 | )% | ||||||||||||||||
Diluted income per share | $ | 1.00 | $ | 0.14 | $ | 1.14 | $ | 1.19 | $ | — | $ | 1.19 | (4 | )% | |||||||||||||||||||||||||
Weighted average number of shares outstanding: | 107.0 | 107.0 | 110.9 | 110.9 |
A. | "Adjusted" results exclude restructuring charges, amortization of the step-up in value of finished goods, transaction and integration expenses associated with the acquisitions of Esselte Group Holdings AB ("Esselte"), Pelikan Artline and GOBA Internacional, S.A. de C.V ("GOBA"). In addition, "Adjusted" results exclude other one-time or non-recurring items and all unusual income tax items, including income taxes related to the aforementioned items; in addition, income taxes have been recalculated at a normalized tax rate of 30% for 2018 and 32% for 2017. |
1. | Represents the adjustment related to the amortization of step-up in the value of finished goods inventory associated with the acquisition of Esselte in 2017. |
2. | Represents the elimination of transaction and integration expenses associated with the acquisitions of Esselte (in 2018 and 2017), Pelikan Artline (in 2017 only) and GOBA (in 2018 only) and $1.5 million gain on the sale of a distribution center (in 2017) related to the Pelikan Artline integration. |
3. | Represents the elimination of restructuring charges. |
4. | Represents the elimination of forward points on a hedged intercompany loan for the GOBA acquisition. |
5. | Represents the elimination of a pension curtailment gain related to a restructuring project for the integration of Esselte. |
6. | Represents the foreign currency gain of $2.3 million related to the settlement of certain intercompany transactions in the second quarter of 2017, and the write-off of $0.3 million in debt issuance costs and other costs associated with the Company's refinancing in the first quarter of 2017 related to the Esselte acquisition. |
7. | Primarily reflects the tax effect of the adjustments outlined in items A.1-4 above and adjusts the company's effective tax rate to a normalized rate of 30% for 2018 (the Company adjusted the rate in the fourth quarter of 2018 to 30% from 29%, due to lower U.S. income; the impact for the quarter and year-to-date was $1.8 million) and 32% for 2017. The lower normalized tax rate for 2018 is primarily due to the restructuring of our European legal entities following the acquisition of Esselte. The Company's estimated long-term rate remains subject to variations from the mix of earnings across the Company's operating jurisdictions and changes in tax laws. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |||||||||||||||||
Net income | $ | 35.0 | $ | 74.0 | (53 | )% | $ | 106.7 | $ | 131.7 | (19 | )% | ||||||||||
Inventory step-up amortization | 0.1 | — | NM | 0.1 | 0.9 | (89 | )% | |||||||||||||||
Transaction and integration expenses | 0.2 | 1.8 | (89 | )% | 4.6 | 14.9 | (69 | )% | ||||||||||||||
Restructuring charges | 3.8 | 5.6 | (32 | )% | 11.7 | 21.7 | (46 | )% | ||||||||||||||
Pension curtailment gain | — | — | NM | (0.6 | ) | — | NM | |||||||||||||||
Depreciation | 8.5 | 9.3 | (9 | )% | 34.0 | 35.6 | (4 | )% | ||||||||||||||
Stock-based compensation | 2.8 | 5.1 | (45 | )% | 8.8 | 17.0 | (48 | )% | ||||||||||||||
Amortization of intangibles | 9.5 | 9.2 | 3 | % | 36.7 | 35.6 | 3 | % | ||||||||||||||
Interest expense, net | 9.4 | 8.9 | 6 | % | 36.8 | 35.3 | 4 | % | ||||||||||||||
Other expense (income), net | — | 0.6 | (100 | )% | 1.6 | (0.4 | ) | NM | ||||||||||||||
Income tax expense (income) | 23.8 | (3.9 | ) | NM | 51.2 | 26.4 | 94 | % | ||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 93.1 | $ | 110.6 | (16 | )% | $ | 291.6 | $ | 318.7 | (9 | )% | ||||||||||
Adjusted EBITDA as a % of Net Sales | 17.6 | % | 19.5 | % | 15.0 | % | 16.4 | % | ||||||||||||||
Net Leverage Ratio (Net Debt/Adjusted EBITDA): | ||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||
Total debt (gross debt) | $ | 888.0 | $ | 939.5 | ||||||||||||||||||
Cash and cash equivalents | 67.0 | 76.9 | ||||||||||||||||||||
Net Debt (non-GAAP) | $ | 821.0 | $ | 862.6 | ||||||||||||||||||
Net Leverage Ratio (non-GAAP) | 2.8 | 2.7 |
Twelve Months Ended December 31, 2018 | Twelve Months Ended December 31, 2017 | ||||||
Net cash provided by operating activities | $ | 194.8 | $ | 204.9 | |||
Net cash (used) provided by: | |||||||
Additions to property, plant and equipment | (34.1 | ) | (31.0 | ) | |||
Proceeds from the disposition of assets | 0.2 | 4.2 | |||||
Free cash flow (non-GAAP) | $ | 160.9 | $ | 178.1 |
(unaudited) | |||||||
(in millions) | December 31, 2018 | December 31, 2017 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 67.0 | $ | 76.9 | |||
Accounts receivable, net | 428.4 | 469.3 | |||||
Inventories | 340.6 | 254.2 | |||||
Other current assets | 44.2 | 29.2 | |||||
Total current assets | 880.2 | 829.6 | |||||
Total property, plant and equipment | 618.7 | 645.2 | |||||
Less: accumulated depreciation | (355.0 | ) | (366.7 | ) | |||
Property, plant and equipment, net | 263.7 | 278.5 | |||||
Deferred income taxes | 115.1 | 137.9 | |||||
Goodwill | 708.9 | 670.3 | |||||
Identifiable intangibles, net | 787.0 | 839.9 | |||||
Other non-current assets | 31.5 | 42.9 | |||||
Total assets | $ | 2,786.4 | $ | 2,799.1 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 39.5 | $ | 43.2 | |||
Accounts payable | 274.6 | 178.2 | |||||
Accrued compensation | 41.6 | 60.9 | |||||
Accrued customer program liabilities | 114.5 | 141.1 | |||||
Accrued interest | 1.2 | 1.2 | |||||
Other current liabilities | 127.8 | 113.8 | |||||
Total current liabilities | 599.2 | 538.4 | |||||
Long-term debt, net | 843.0 | 889.2 | |||||
Deferred income taxes | 176.2 | 177.1 | |||||
Pension and post-retirement benefit obligations | 257.2 | 275.5 | |||||
Other non-current liabilities | 121.1 | 144.8 | |||||
Total liabilities | 1,996.7 | 2,025.0 | |||||
Stockholders' equity: | |||||||
Common stock | 1.1 | 1.1 | |||||
Treasury stock | (33.9 | ) | (26.4 | ) | |||
Paid-in capital | 1,941.0 | 1,999.7 | |||||
Accumulated other comprehensive loss | (461.7 | ) | (461.1 | ) | |||
Accumulated deficit | (656.8 | ) | (739.2 | ) | |||
Total stockholders' equity | 789.7 | 774.1 | |||||
Total liabilities and stockholders' equity | $ | 2,786.4 | $ | 2,799.1 |
Twelve Months Ended December 31, | |||||||
(in millions) | 2018 | 2017 | |||||
Operating activities | |||||||
Net income | $ | 106.7 | $ | 131.7 | |||
Amortization of inventory step-up | 0.1 | 0.9 | |||||
Loss (gain) on disposal of assets | 0.2 | (1.3 | ) | ||||
Deferred income tax expense (benefit) | 22.7 | (45.2 | ) | ||||
Insurance claims, net of proceeds | — | (0.4 | ) | ||||
Depreciation | 34.0 | 35.6 | |||||
Amortization of debt issuance costs | 2.1 | 2.9 | |||||
Amortization of intangibles | 36.7 | 35.6 | |||||
Stock-based compensation | 8.8 | 17.0 | |||||
Loss on debt extinguishment | 0.3 | — | |||||
Changes in balance sheet items: | |||||||
Accounts receivable | 46.0 | 10.2 | |||||
Inventories | (92.9 | ) | 2.5 | ||||
Other assets | 5.5 | 4.6 | |||||
Accounts payable | 101.0 | (18.7 | ) | ||||
Accrued expenses and other liabilities | (79.1 | ) | (8.3 | ) | |||
Accrued income taxes | 2.7 | 37.8 | |||||
Net cash provided by operating activities | 194.8 | 204.9 | |||||
Investing activities | |||||||
Additions to property, plant and equipment | (34.1 | ) | (31.0 | ) | |||
Proceeds from the disposition of assets | 0.2 | 4.2 | |||||
Cost of acquisitions, net of cash acquired | (38.0 | ) | (292.3 | ) | |||
Net cash used by investing activities | (71.9 | ) | (319.1 | ) | |||
Financing activities | |||||||
Proceeds from long-term borrowings | 225.3 | 484.1 | |||||
Repayments of long-term debt | (249.5 | ) | (296.5 | ) | |||
Payments for debt issuance costs | (0.6 | ) | (3.6 | ) | |||
Dividends paid | (25.1 | ) | — | ||||
Repurchases of common stock | (75.0 | ) | (36.6 | ) | |||
Payments related to tax withholding for stock-based compensation | (7.5 | ) | (9.4 | ) | |||
Proceeds from the exercise of stock options | 6.8 | 4.2 | |||||
Net cash (used) provided by financing activities | (125.6 | ) | 142.2 | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (7.2 | ) | 6.0 | ||||
Net (decreased) increase in cash and cash equivalents | (9.9 | ) | 34.0 | ||||
Cash and cash equivalents | |||||||
Beginning of the period | 76.9 | 42.9 | |||||
End of the period | $ | 67.0 | $ | 76.9 |
2018 | 2017 | Changes | |||||||||||||||||||||||||||||||||||||||||||
Adjusted | Adjusted | ||||||||||||||||||||||||||||||||||||||||||||
Reported | Adjusted | Operating | Reported | Adjusted | Operating | Adjusted | Adjusted | ||||||||||||||||||||||||||||||||||||||
Operating | Operating | Income | Operating | Operating | Income | Operating | Operating | ||||||||||||||||||||||||||||||||||||||
Reported | Income | Adjusted | Income | (Loss) | Reported | Income | Adjusted | Income | (Loss) | Net Sales | Net Sales | Income | Income | Margin | |||||||||||||||||||||||||||||||
Net Sales | (Loss) | Items | (Loss) (B) | Margin (B) | Net Sales | (Loss) (A) | Items | (Loss) (B) | Margin (B) | $ | % | (Loss) $ | (Loss) % | Points | |||||||||||||||||||||||||||||||
Q1: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 165.6 | $ | 2.9 | $ | 1.8 | $ | 4.7 | 2.8% | $ | 174.9 | $ | 5.8 | $ | 1.4 | $ | 7.2 | 4.1% | $ | (9.3 | ) | (5.3)% | $ | (2.5 | ) | (34.7)% | (130) | ||||||||||||||||||
ACCO Brands EMEA | 154.5 | 14.1 | 3.3 | 17.4 | 11.3% | 96.5 | 3.6 | 1.9 | 5.5 | 5.7% | 58.0 | 60.1% | 11.9 | 216.4% | 560 | ||||||||||||||||||||||||||||||
ACCO Brands International | 85.7 | 5.8 | 0.8 | 6.6 | 7.7% | 88.4 | 10.1 | 0.6 | 10.7 | 12.1% | (2.7 | ) | (3.1)% | (4.1 | ) | (38.3)% | (440) | ||||||||||||||||||||||||||||
Corporate | — | (11.1 | ) | 0.4 | (10.7 | ) | — | (12.3 | ) | 2.9 | (9.4 | ) | — | (1.3 | ) | ||||||||||||||||||||||||||||||
Total | $ | 405.8 | $ | 11.7 | $ | 6.3 | $ | 18.0 | 4.4% | $ | 359.8 | $ | 7.2 | $ | 6.8 | $ | 14.0 | 3.9% | $ | 46.0 | 12.8% | $ | 4.0 | 28.6% | 50 | ||||||||||||||||||||
Q2: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 282.8 | $ | 51.5 | $ | 1.6 | $ | 53.1 | 18.8% | $ | 280.6 | $ | 51.7 | $ | 2.8 | $ | 54.5 | 19.4% | $ | 2.2 | 0.8% | $ | (1.4 | ) | (2.6)% | (60) | |||||||||||||||||||
ACCO Brands EMEA | 140.5 | 8.4 | 1.8 | 10.2 | 7.3% | 128.5 | (0.6 | ) | 8.5 | 7.9 | 6.1% | 12.0 | 9.3% | 2.3 | 29.1% | 120 | |||||||||||||||||||||||||||||
ACCO Brands International | 75.5 | 3.3 | 0.3 | 3.6 | 4.8% | 80.9 | 4.0 | 3.9 | 7.9 | 9.8% | (5.4 | ) | (6.7)% | (4.3 | ) | (54.4)% | (500) | ||||||||||||||||||||||||||||
Corporate | — | (11.4 | ) | 0.3 | (11.1 | ) | — | (11.8 | ) | 0.8 | (11.0 | ) | — | (0.1 | ) | ||||||||||||||||||||||||||||||
Total | $ | 498.8 | $ | 51.8 | $ | 4.0 | $ | 55.8 | 11.2% | $ | 490.0 | $ | 43.3 | $ | 16.0 | $ | 59.3 | 12.1% | $ | 8.8 | 1.8% | $ | (3.5 | ) | (5.9)% | (90) | |||||||||||||||||||
Q3: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 263.4 | $ | 33.7 | $ | (0.3 | ) | $ | 33.4 | 12.7% | $ | 290.3 | $ | 49.6 | $ | 0.7 | $ | 50.3 | 17.3% | $ | (26.9 | ) | (9.3)% | $ | (16.9 | ) | (33.6)% | (460) | |||||||||||||||||
ACCO Brands EMEA | 143.1 | 14.6 | 2.2 | 16.8 | 11.7% | 140.3 | 7.8 | 3.3 | 11.1 | 7.9% | 2.8 | 2.0% | 5.7 | 51.4% | 380 | ||||||||||||||||||||||||||||||
ACCO Brands International | 100.8 | 16.1 | 0.1 | 16.2 | 16.1% | 101.6 | 11.2 | 1.6 | 12.8 | 12.6% | (0.8 | ) | (0.8)% | 3.4 | 26.6% | 350 | |||||||||||||||||||||||||||||
Corporate | — | (6.9 | ) | — | (6.9 | ) | — | (11.9 | ) | 1.7 | (10.2 | ) | — | 3.3 | |||||||||||||||||||||||||||||||
Total | $ | 507.3 | $ | 57.5 | $ | 2.0 | $ | 59.5 | 11.7% | $ | 532.2 | $ | 56.7 | $ | 7.3 | $ | 64.0 | 12.0% | $ | (24.9 | ) | (4.7)% | $ | (4.5 | ) | (7.0)% | (30) | ||||||||||||||||||
Q4: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 228.9 | $ | 28.5 | $ | 3.1 | $ | 31.6 | 13.8% | $ | 253.2 | $ | 45.3 | $ | 0.9 | $ | 46.2 | 18.2% | $ | (24.3 | ) | (9.6)% | $ | (14.6 | ) | (31.6)% | (440) | ||||||||||||||||||
ACCO Brands EMEA | 167.1 | 22.3 | 0.7 | 23.0 | 13.8% | 177.5 | 21.2 | 3.8 | 25.0 | 14.1% | (10.4 | ) | (5.9)% | (2.0 | ) | (8.0)% | (30) | ||||||||||||||||||||||||||||
ACCO Brands International | 133.3 | 24.0 | 0.3 | 24.3 | 18.2% | 136.1 | 25.6 | 0.1 | 25.7 | 18.9% | (2.8 | ) | (2.1)% | (1.4 | ) | (5.4)% | (70) | ||||||||||||||||||||||||||||
Corporate | — | (8.8 | ) | — | (8.8 | ) | — | (14.8 | ) | 2.6 | (12.2 | ) | — | 3.4 | |||||||||||||||||||||||||||||||
Total | $ | 529.3 | $ | 66.0 | $ | 4.1 | $ | 70.1 | 13.2% | $ | 566.8 | $ | 77.3 | $ | 7.4 | $ | 84.7 | 14.9% | $ | (37.5 | ) | (6.6)% | $ | (14.6 | ) | (17.2)% | (170) | ||||||||||||||||||
YTD: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 940.7 | $ | 116.6 | $ | 6.2 | $ | 122.8 | 13.1% | $ | 999.0 | $ | 152.4 | $ | 5.8 | $ | 158.2 | 15.8% | $ | (58.3 | ) | (5.8)% | $ | (35.4 | ) | (22.4)% | (270) | ||||||||||||||||||
ACCO Brands EMEA | 605.2 | 59.4 | 8.0 | 67.4 | 11.1% | 542.8 | 32.0 | 17.5 | 49.5 | 9.1% | 62.4 | 11.5% | 17.9 | 36.2% | 200 | ||||||||||||||||||||||||||||||
ACCO Brands International | 395.3 | 49.2 | 1.5 | 50.7 | 12.8% | 407.0 | 50.9 | 6.2 | 57.1 | 14.0% | (11.7 | ) | (2.9)% | (6.4 | ) | (11.2)% | (120) | ||||||||||||||||||||||||||||
Corporate | — | (38.2 | ) | 0.7 | (37.5 | ) | — | (50.8 | ) | 8.0 | (42.8 | ) | — | 5.3 | |||||||||||||||||||||||||||||||
Total | $ | 1,941.2 | $ | 187.0 | $ | 16.4 | $ | 203.4 | 10.5% | $ | 1,948.8 | $ | 184.5 | $ | 37.5 | $ | 222.0 | 11.4% | $ | (7.6 | ) | (0.4)% | $ | (18.6 | ) | (8.4)% | (90) | ||||||||||||||||||
(A) 2017 historical data has been restated for ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which is effective for the Company in the first quarter of 2018. This new standard requires presentation of all components of net periodic pension and postretirement benefit costs, other than service costs, in an income statement line item outside of a subtotal of income from operations. This has resulted in the reclass of $8.5 million of income out of operating income into the account "non-operating pension income/costs" for the annual period ended December 31, 2017. | |||||||||||||||||||||||||||||||||||||||||||||
(B) See "Notes for Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited)" for a description of adjusted items on page 8. |
% Change - Net Sales | $ Change - Net Sales (in millions) | |||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||
Comparable | Comparable | |||||||||||||||
Net Sales | Currency | Net Sales | Net Sales | Currency | Net Sales | |||||||||||
Change | Translation | Acquisition | Change (A) | Change | Translation | Acquisition | Change (A) | |||||||||
Q1 2018: | ||||||||||||||||
ACCO Brands North America | (5.3)% | 0.5% | 0.5% | (6.3)% | $(9.3) | $0.9 | $0.9 | $(11.1) | ||||||||
ACCO Brands EMEA | 60.1% | 14.2% | 44.2% | 1.7% | 58.0 | 13.7 | 42.7 | 1.6 | ||||||||
ACCO Brands International | (3.1)% | 2.7% | 0.7% | (6.5)% | (2.7) | 2.4 | 0.6 | (5.7) | ||||||||
Total | 12.8% | 4.7% | 12.3% | (4.2)% | $46.0 | $17.0 | $44.2 | $(15.2) | ||||||||
Q2 2018: | ||||||||||||||||
ACCO Brands North America | 0.8% | 0.5% | —% | 0.3% | $2.2 | $1.3 | $— | $0.9 | ||||||||
ACCO Brands EMEA | 9.3% | 6.5% | —% | 2.8% | 12.0 | 8.3 | — | 3.7 | ||||||||
ACCO Brands International | (6.7)% | (1.9)% | —% | (4.8)% | (5.4) | (1.5) | — | (3.9) | ||||||||
Total | 1.8% | 1.7% | —% | 0.1% | $8.8 | $8.1 | $— | $0.7 | ||||||||
Q3 2018: | ||||||||||||||||
ACCO Brands North America | (9.3)% | (0.5)% | —% | (8.8)% | $(26.9) | $(1.4) | $— | $(25.5) | ||||||||
ACCO Brands EMEA | 2.0% | (2.7)% | —% | 4.7% | 2.8 | (3.8) | — | 6.6 | ||||||||
ACCO Brands International | (0.8)% | (10.1)% | 9.8% | (0.5)% | (0.8) | (10.3) | 10.0 | (0.5) | ||||||||
Total | (4.7)% | (2.9)% | 1.9% | (3.7)% | $(24.9) | $(15.5) | $10.0 | $(19.4) | ||||||||
Q4 2018: | ||||||||||||||||
ACCO Brands North America | (9.6)% | (0.4)% | —% | (9.2)% | $(24.3) | $(1.1) | $— | $(23.2) | ||||||||
ACCO Brands EMEA | (5.9)% | (4.2)% | —% | (1.7)% | (10.4) | (7.4) | — | (3.0) | ||||||||
ACCO Brands International | (2.1)% | (9.3)% | 7.1% | 0.1% | (2.8) | (12.6) | 9.7 | 0.1 | ||||||||
Total | (6.6)% | (3.7)% | 1.7% | (4.6)% | $(37.5) | $(21.1) | $9.7 | $(26.1) | ||||||||
2018 YTD: | ||||||||||||||||
ACCO Brands North America | (5.8)% | —% | 0.1% | (5.9)% | $(58.3) | $(0.3) | $0.9 | $(58.9) | ||||||||
ACCO Brands EMEA | 11.5% | 2.0% | 7.9% | 1.6% | 62.4 | 10.8 | 42.7 | 8.9 | ||||||||
ACCO Brands International | (2.9)% | (5.4)% | 5.0% | (2.5)% | (11.7) | (22.0) | 20.3 | (10.0) | ||||||||
Total | (0.4)% | (0.6)% | 3.3% | (3.1)% | $(7.6) | $(11.5) | $63.9 | $(60.0) | ||||||||
(A) Comparable net sales represents net sales excluding acquisitions and with current-period foreign operation sales translated at prior-year currency rates. |
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