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CLARCOR Reports Record Fourth Quarter And Full Year Results

Stocks in this article: CLC

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements made in this press release other than statements of historical fact, are forward-looking statements. These statements may be identified from use of the words “may,” “should,” “could,” “potential,” “continue,” “plan,” “forecast,” “estimate,” “project,” “believe,” “intent,” “anticipate,” “expect,” “target,” “is likely,” “will,” or the negative of these terms, and similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, among other things: statements and assumptions relating to anticipated future growth and results of operations, including the anticipated 2012 performance of the Company and each of its segments, and our projections with respect to 2012 estimated sales growth and 2012 estimated operating margins for the Company and each of its segments; statements regarding management's short-term and long-term performance goals; statements regarding anticipated order patterns from our customers or the anticipated economic conditions of the industries and markets that we serve; statements related to the performance of the U.S. and other economies generally; statements relating to the anticipated effects on results of operations or financial condition from recent and expected developments or events; statements regarding the development of our core strategic initiatives, including growing our top-line through the introduction of innovative products while leveraging our technology and media development capabilities; statements regarding our ability to continue our culture of cost containment and ongoing improvement in support of profitable growth; statements regarding the introduction of new filtration solutions and leveraging the strength of our existing products and technologies; statements regarding our current cost structure positions and ability to capitalize on anticipated growth initiatives; and any other statements or assumptions that are not historical facts. The Company believes that its expectations are based on reasonable assumptions. However, these forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Company's actual results, performance or achievements, or industry results, to differ materially from the Company's expectations of future results, performance or achievements expressed or implied by these forward-looking statements. The Company's past results of operations do not necessarily indicate its future results. The Company’s future results may differ materially from the Company’s past results as a result of various risks and uncertainties, including the risk factors discussed in the “Risk Factors” section of the Company’s 2010 Form 10-K and other risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release. Except as otherwise required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements or the risk factors described in this press release, including estimated sales growth and estimated operating margin levels for 2012 for the Company and its business segments, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release.

TABLES FOLLOW

       
CLARCOR INC. 2011 UNAUDITED FOURTH QUARTER RESULTS
 
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands except per share data)
 
Quarter Ended   Twelve Months Ended
December 3, November 27, December 3, November 27,
2011 2010 2011 2010
 
Net sales $ 307,529 $ 275,659 $ 1,126,601 $ 1,011,429
Cost of sales   200,397     183,461     743,180     673,022  
 
Gross profit 107,132 92,198 383,421 338,407
 
Selling and administrative expenses   52,397     48,349     202,154     193,758  
 
Operating profit   54,735     43,849     181,267     144,649  
 
Other income (expense):
Interest expense (117 ) (206 ) (469 ) (546 )
Interest income 203 102 649 288
Other, net   273     (386 )   (139 )   (968 )
 
  359     (490 )   41     (1,226 )
 
Earnings before income taxes 55,094 43,359 181,308 143,423
 
Provision for income taxes   17,694     14,321     56,947     47,072  
 
Net earnings 37,400 29,038 124,361 96,351
 
Net earnings attributable to
noncontrolling interests, net of tax   (156 )   (34 )   (358 )   (270 )
 
Net earnings attributable to CLARCOR Inc $ 37,244   $ 29,004   $ 124,003   $ 96,081  
 
Net earning per share attributable to CLARCOR Inc. - Basic $ 0.74   $ 0.57   $ 2.46   $ 1.90  
Net earning per share attributable to CLARCOR Inc. - Diluted $ 0.73   $ 0.57   $ 2.42   $ 1.88  
 
Weighted average number of shares outstanding - Basic   50,316,699     50,614,269     50,501,842     50,678,617  
Weighted average number of shares outstanding - Diluted   50,995,657     51,189,705     51,191,435     51,156,229  
 
Dividends paid per share $ 0.1200   $ 0.1050   $ 0.4350   $ 0.3975  
 
   
CLARCOR INC. 2011 UNAUDITED FOURTH QUARTER RESULTS, continued
     
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 3, November 27,
2011 2010
ASSETS
Current assets:
Cash and cash equivalents $ 155,999 $ 117,022
Restricted cash 1,105 708
Accounts receivable, less allowance for losses
of $9,795 and $11,428, respectively 206,664 188,186
Inventories 200,274 182,384
Deferred income taxes 25,974 25,081
Income tax receivable 3,373 7,324
Prepaid expenses and other current assets   7,510     5,568  
Total current assets   600,899     526,273  
 
Property, plant and equipment, at cost,
less accumulated depeciation 184,992 181,175
Assets held for sale 2,000 2,000
Goodwill 235,530 228,105
Acquired intangible assets, less accumulated amortization 98,674 91,174
Deferred income taxes 749 1,000
Other noncurrent assets   12,089     12,684  
Total assets $ 1,134,933   $ 1,042,411  
 
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 1,289 $ 146
Accounts payable and accrued liabilities 155,585 160,206
Income taxes payable   3,176     3,105  
Total current liabilities   160,050     163,457  
 
Long-term debt, less current portion 15,981 17,331
Long-term pension and postretirement healthcare benefits liabilities 74,524 66,124
Deferred income taxes 36,194 31,266
Other long-term liabilities   11,069     5,138  
Total liabilities   297,818     283,316  
 
Contingencies
Redeemable noncontrolling interests 1,557 1,568
 
SHAREHOLDERS' EQUITY
Capital stock 50,145 50,335
Capital in excess of par value 19,453 33,698
Accumulated other comprehensive loss (44,391 ) (35,041 )
Retained earnings   809,520     707,478  
Total CLARCOR Inc. equity   834,727     756,470  
Noncontrolling interests   831     1,057  
Total shareholders' equity   835,558     757,527  
Total liabilities and shareholders' equity $ 1,134,933   $ 1,042,411  
 
   
CLARCOR INC. 2011 UNAUDITED FOURTH QUARTER RESULTS, continued
     
CONSOLIDATED CASH FLOWS
(Dollars in thousands)
 
Twelve Months Ended
December 3, November 27,
2011 2010
Cash flows from operating activities:
Net earnings $ 124,361 $ 96,351
Depreciation 26,826 26,119
Amortization 5,609 4,802
Other noncash items 281 (101 )
Net loss on disposition of plant assets 452 337
Impairment of long-lived 87 276
Stock-based compensation expense 5,477 4,602
Excess tax benefit from stock-based compensation (5,100 ) (2,500 )
Changes in short-term investments - 32,171
Changes in assets and liabilities, excluding short-term investments   (38,544 )   (18,655 )
Net cash provided by operating activities   119,449     143,402  
 
Cash flows from investing activities:
Restricted cash 149 (1,119 )
Business acquisitions, net of cash acquired (16,758 ) -
Additions to plant assets (22,486 ) (23,371 )
Proceeds from disposition of plant assets 327 2,296
Investment in affiliates (496 ) (199 )
Proceeds from insurance claim   200     557  
Net cash used in investing activities   (39,064 )   (21,836 )
 
Cash flows from financing activities:
Net payments under multicurrency revolving credit agreement - (35,000 )
Payments on long-term debt (1,853 ) (164 )
Sale of capital stock under stock option and employee purchase plans 8,449 7,290
Acquisition of noncontrolling interests - (732 )
Purchase of treasury stock (29,317 ) (16,277 )
Excess tax benefits from stock-based compensation 5,100 2,500
Dividend paid to noncontrolling interests (321 ) -
Cash dividends paid   (21,961 )   (20,143 )
Net cash used in financing activities   (39,903 )   (62,526 )
 
Net effect of exchange rate changes on cash   (1,505 )   (1,295 )
 
Net change in cash and cash equivalents 38,977 57,745
 
Cash and cash equivalents, beginning of period   117,022     59,277  
 
Cash and cash equivalents, end of period $ 155,999   $ 117,022  
 
Cash paid during the period for:
Interest $ 300   $ 1,318  
Income taxes, net of refunds $ 37,959   $ 54,560  
 
         
CLARCOR INC. 2011 UNAUDITED FOURTH QUARTER RESULTS, continued
     
QUARTERLY INCOME STATEMENT DATA BY SEGMENT
(Dollars in thousands)
 
2011
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended Twelve
February 26 May 28 August 27 December 3 Months
Net sales by segment:
Engine/Mobile Filtration $ 111,328 $ 131,276 $ 129,467 $ 137,941 $ 510,012
Industrial/Environmental Filtration 112,119 133,499 132,380 145,028 523,026
Packaging   22,273     23,758     22,972     24,560     93,563  
$ 245,720   $ 288,533   $ 284,819   $ 307,529   $ 1,126,601  
 
Operating profit by segment:
Engine/Mobile Filtration $ 21,202 $ 29,592 $ 30,175 $ 31,870 $ 112,839
Industrial/Environmental Filtration 7,248 16,179 13,650 20,951 58,028
Packaging   2,841     3,009     2,636     1,914     10,400  
$ 31,291   $ 48,780   $ 46,461   $ 54,735   $ 181,267  
 
 
Operating margin by segment:
Engine/Mobile Filtration 19.0 % 22.5 % 23.3 % 23.1 % 22.1 %
Industrial/Environmental Filtration 6.5 % 12.1 % 10.3 % 14.4 % 11.1 %
Packaging   12.8 %   12.7 %   11.5 %   7.8 %   11.1 %
  12.7 %   16.9 %   16.3 %   17.8 %   16.1 %
 
 
2010
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended Twelve
February 27 May 29 August 28 November 27 Months
Net sales by segment:
Engine/Mobile Filtration $ 96,428 $ 113,434 $ 118,753 $ 117,489 $ 446,104
Industrial/Environmental Filtration 102,027 117,566 119,589 131,177 470,359
Packaging   16,676     26,869     24,428     26,993     94,966  
$ 215,131   $ 257,869   $ 262,770   $ 275,659   $ 1,011,429  
 
Operating profit by segment:
Engine/Mobile Filtration $ 17,862 $ 23,643 $ 25,937 $ 24,804 $ 92,246
Industrial/Environmental Filtration 4,283 10,371 12,887 15,974 43,515
Packaging   751     2,198     2,868     3,071     8,888  
$ 22,896   $ 36,212   $ 41,692   $ 43,849   $ 144,649  
 
Operating margin by segment:
Engine/Mobile Filtration 18.5 % 20.8 % 21.8 % 21.1 % 20.7 %
Industrial/Environmental Filtration 4.2 % 8.8 % 10.8 % 12.2 % 9.3 %
Packaging   4.5 %   8.2 %   11.7 %   11.4 %   9.4 %
  10.6 %   14.0 %   15.9 %   15.9 %   14.3 %
 




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