“Our results this quarter are a testament to our strong brands, compelling product innovation and efficient supply chains. We look forward to building on ongoing market growth, but whether industry momentum continues or subsides, we believe we remain poised for lasting success and market outperformance. We have maintained our strong capital structure, and our companies are continuing their steady cadence of introducing innovative new products,” Klein added.
“Our balance sheet remains solid,” said Lee Wyatt, senior vice president and chief financial officer. “As of March 31, 2012, cash was approximately $120 million, and debt was $431 million with a net debt-to-EBITDA ratio of approximately 1.1 times.”
Updated Outlook for 2012
The Company is updating its outlook for 2012. For the full year, the Company’s assumption for the growth rate of the market for its U.S. home products is now mid-single digits. Based on this assumption, the Company now expects its full-year 2012 net sales to increase at a high-single-digit rate. The Company now expects diluted EPS before charges/gains to be in the range of $0.77 to $0.87. This targeted range compares to a revised 2011 diluted EPS before charges/gains of $0.60. The Company’s EPS expectations reflect the benefit of its expected higher net sales and related operating leverage, partially offset by strategic investments in the business.“We raised our full-year outlook based on our Q1 performance and an assumption that the current momentum of our U.S. home products market will continue,” Klein said. “However, forecasting the balance of the year remains challenging, given the variables affecting the market and the overall economy.” The Company increased its free cash flow outlook for 2012 to be in the range of $200 million to $225 million. “We believe our strong balance sheet and growing free cash flow provides flexibility to maximize shareholder value in a variety of ways in 2012 and the future,” Wyatt said.