“We are very pleased with our performance this quarter. Our strategies and tight execution are producing profitable revenue growth, and we are in position to drive the business opportunities we believe will result in continued growth as the market continues to firm. We believe our solid capital structure, strong brands, exciting product innovation and operational excellence position us for continued success,” Klein said.
“We improved upon our sound balance sheet,” said Lee Wyatt, senior vice president and chief financial officer. “As of June 30, 2012, cash was approximately $147 million, and debt was $361 million with nothing outstanding on our $650 million revolver facility. Our net debt-to-EBITDA ratio is down to 0.7 times.”
Company Reaffirms Sales and EPS Outlook for 2012
For the full year, the Company’s assumption for the growth rate of the market for its U.S. home products remains mid-single digits, as new construction showed better-than-expected strength in the second quarter while repair & remodel business was softer than expected. The Company is reaffirming the range of its net sales outlook for 2012, as it continues to expect its full-year 2012 net sales to increase at a high-single-digit rate.“We continue to expect full-year sales to grow high single digits, but based on continuing unevenness in repair & remodel and due to our disciplined approach to pursuing sales growth that is also profitable, we believe our results will be in the lower end of that range,” Klein said. In addition, the Company is reaffirming its full-year 2012 outlook for diluted EPS before charges/gains of $0.77 - $0.87. This targeted range compares to 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 remain confident in our ability to outperform the market no matter the pace of the recovery, due to our industry leadership positions and our strategy to selectively pursue and secure profitable business,” Klein said.