This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fortune Brands Home & Security Continues Sales And Profit Growth In Second Quarter, Reaffirms Annual Outlook

Use of non-GAAP financial information

This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as diluted earnings per share before charges/gains, net debt-to-EBITDA ratio, operating income before charges/gains, and free cash flow. These measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.

FORTUNE BRANDS HOME & SECURITY, INC.
(In millions, except per share amounts)
(Unaudited)
           
 
                   
Three Months Ended June 30, Six Months Ended June 30,
  2012       2011     % Change     2012       2011     % Change  
Net Sales (GAAP)                    
Kitchen & Bath Cabinetry $ 345.9 $ 344.1 0.5 $ 657.4 $ 643.9 2.1
Plumbing & Accessories 281.5 251.8 11.8 526.0 455.6 15.5
Advanced Material Windows & Door Systems 159.6 149.0 7.1 273.0 251.0 8.8
Security & Storage   148.3       144.8     2.4     277.7       254.0     9.3  
Total Net Sales $ 935.3     $ 889.7     5.1   $ 1,734.1     $ 1,604.5     8.1  
 
Operating Income (Loss) Before Charges/Gains (a)                    
Kitchen & Bath Cabinetry $ 18.5 $ 15.2 21.7 $ 14.6 $ 13.5 8.1
Plumbing & Accessories 42.8 34.5 24.1 79.0 60.1 31.4
Advanced Material Windows & Door Systems 4.0 5.0 (20.0 ) (6.3 ) (8.6 ) 26.7
Security & Storage 21.1 19.5 8.2 32.9 25.7 28.0
Corporate expense   (13.7 )     (12.8 )   (6.9 )   (26.6 )     (26.0 )   (2.3 )
Total Operating Income Before Charges/Gains $ 72.7     $ 61.4     18.4   $ 93.6     $ 64.7     44.7  
 
Earnings Per Share Before Charges/Gains (b)                    
Diluted $ 0.29     $ 0.24     20.8   $ 0.37     $ 0.24     54.2  
 
                   
EBITDA Before Charges/Gains (c) $ 95.0     $ 86.3     10.1   $ 140.4     $ 114.4     22.7  
(a) Operating income (loss) before charges/gains is operating income derived in accordance with GAAP including estimated incremental standalone corporate expenses and excluding restructuring and other charges, income from a contingent acquisition consideration adjustment and the impact of income and expense from actuarial gains or losses associated with our defined benefit plans. Operating income (loss) before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to determine the returns generated by FBHS and to evaluate and identify cost-reduction initiatives. Management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. A reconciliation to operating income, the most comparable GAAP measure, is included in subsequent tables.
 

(b) Diluted EPS before charges/gains is net income calculated on a diluted per-share basis excluding restructuring and other charges, income from a contingent acquisition consideration adjustment, and the impact of income and expense from actuarial gains or losses associated with our defined benefit plans. Diluted EPS before charges/gains for the three and six months ended June 30, 2011 have also been adjusted to reflect an adjusted pro forma effective tax rate of 35%, capital structure changes that reflect the borrowing arrangements and debt level of the Company as of October 4, 2011, the 1:1 share distribution resulting from the spin-off of the Company from Fortune Brands, Inc. and estimated incremental standalone corporate expenses. Diluted EPS before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. A reconciliation to diluted EPS, the most closely comparable GAAP measure, is included in subsequent tables.

 
(c) EBITDA before charges/gains is net income derived in accordance with GAAP including estimated incremental standalone corporate expenses and excluding restructuring and other charges, income from a contingent acquisition consideration adjustment, the impact of income and expense from actuarial gains or losses associated with our defined benefit plans, depreciation, amortization of intangible assets, related party interest expense, net, external interest expense, and income taxes. EBITDA before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to assess returns generated by FBHS. Management believes this measure provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions and repay debt and related interest. This measure may be inconsistent with similar measures presented by other companies. A reconciliation to net income, the most closely comparable GAAP measure, is included in subsequent tables.

   
FORTUNE BRANDS HOME & SECURITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEET (GAAP)
(In millions)
(Unaudited)
 
   
June 30, December 31,
  2012   2011
 
Assets
Current assets    
Cash and cash equivalents $ 147.2 $ 120.8
Accounts receivable, net 405.2 346.1
Inventory 385.5 336.3
Other current assets   130.2   150.3
Total current assets 1,068.1 953.5
 
Property, plant and equipment, net 509.9 525.8
Goodwill resulting from business acquisitions 1,366.4 1,366.6
Other intangible assets, net of accumulated amortization 696.1 702.9
Other assets   85.5   89.1
Total assets $ 3,726.0 $ 3,637.9
 
 
Liabilities and Equity
Current liabilities    
Notes payable to banks $ 4.6 $ 3.8
Current portion of long-term debt 17.5 17.5
Accounts payable 287.8 260.7
Other current liabilities   286.5   315.8

Total current liabilities

596.4 597.8
 
Long-term debt 339.3 389.3
Deferred income taxes 213.3 204.1
Accrued defined benefit plans 252.1 248.2
Other long-term liabilities   74.7   74.0
Total liabilities 1,475.8 1,513.4
 
Stockholders' equity 2,247.0 2,120.8
Noncontrolling interests   3.2   3.7
Total equity   2,250.2   2,124.5
Total liabilities and equity $ 3,726.0 $ 3,637.9

       
FORTUNE BRANDS HOME & SECURITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 
 
     
Six Months Ended June 30,
  2012       2011  
Operating Activities      
Net Income $ 60.9 $ 33.8
Depreciation and amortization 47.5 49.8
Deferred income taxes

9.6

(6.5 )
Other noncash items 13.4 5.4
Changes in assets and liabilities, net   (78.9 )     (92.2 )
Net cash provided by (used in) operating activities $ 52.5     $ (9.7 )
 
Investing Activities      
Capital expenditures, net of proceeds from asset sales $ (26.4 ) $ (24.4 )
Other investing activities   (3.6 )     -  
Net cash used in investing activities $ (30.0 )   $ (24.4 )
     
Net cash provided by financing activities $ 2.9     $ 45.3  
 
     
Effect of foreign exchange rate changes on cash   1.0       1.2  
     
Net increase in cash and cash equivalents $ 26.4 $ 12.4
Cash and cash equivalents at beginning of period   120.8       60.7  
Cash and cash equivalents at end of period $ 147.2     $ 73.1  
 
 
 
 
         

FREE CASH FLOW

Six Months Ended June 30,   2012 Full Year
  2012       2011     Targeted Range
 
Free Cash Flow (a) $ 80.9 $ (34.1 ) $ 225 - 250
Add:
Capital Expenditures 28.2 27.6 80
Less:
Proceeds from the sale of assets 1.8 3.2 5 - 10
Proceeds from the exercise of stock options   54.8       -       65 - 75
Cash Flow From Operations (GAAP) $ 52.5     $ (9.7 )   $ 235 - 245
(a) Free cash flow is cash flow from operations calculated in accordance with GAAP less net capital expenditures (capital expenditures less proceeds from the sale of assets including property, plant and equipment) plus proceeds from the exercise of stock options. Free cash flow is a measure not derived in accordance with GAAP. Management believes that free cash flow provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions, repay debt and related interest, pay dividends, and repurchase common stock. This measure may be inconsistent with similar measures presented by other companies.

           
FORTUNE BRANDS HOME & SECURITY, INC.
CONSOLIDATED STATEMENT OF INCOME (GAAP)
(In millions, except per share amounts)
(Unaudited)
                   
Three Months Ended June 30, Six Months Ended June 30,
  2012     2011   % Change     2012     2011   % Change  
                   
Net Sales $ 935.3   $ 889.7   5.1   $ 1,734.1   $ 1,604.5   8.1  
 
Cost of products sold 617.9 598.4 3.3 1,169.9 1,102.9 6.1
 
Selling, general
and administrative expenses 242.3 221.9 9.2 463.4 420.4 10.2
 
Amortization of intangible assets 2.8 3.8 (26.3 ) 6.2 7.5 (17.3 )
 
Restructuring charges - 0.4 (100.0 ) 1.0 0.7 42.9
                   
Operating Income   72.3     65.2   10.9     93.6     73.0   28.2  
 
Related party interest expense, net - 0.3 (100.0 ) - 23.0 (100.0 )
 
External interest expense 2.1 0.2 950.0 4.6 0.3 1,433.3
 
Other expense, net 0.7 0.1 600.0 0.2 0.1 100.0
                   
Income before income taxes   69.5     64.6   7.6     88.8     49.6   79.0  
 
Income taxes 21.6 20.5 5.4 27.9 15.8 76.6
                   
Net Income $ 47.9   $ 44.1   8.6   $ 60.9   $ 33.8   80.2  
 
Less: Noncontrolling interests 0.1 0.4 (75.0 ) 0.6 0.6 -
                   
Net Income attributable to
Fortune Brands Home & Security $ 47.8   $ 43.7   9.4   $ 60.3   $ 33.2   81.6  
 
Earnings Per Common Share, Diluted (a) :                    
Net Income $ 0.29   $ 0.28   3.6   $ 0.37   $ 0.21   76.2  
                   
Diluted Average Shares Outstanding (a)   165.4     155.1   6.7     164.2     155.1   5.9  
(a) Diluted earnings per common share and the average number of shares of common stock outstanding for the three and six months ended June 30, 2011 were retrospectively restated adjusting the number of shares of Fortune Brands Home & Security, Inc. common stock for the stock split on September 27, 2011. Prior to the spin-off of Fortune Brands Home & Security, Inc. from Fortune Brands, Inc., the same number of shares was used to calculate basic and diluted earnings per share since no Fortune Brands Home & Security, Inc. stock-based awards were outstanding at that time.

FORTUNE BRANDS HOME & SECURITY, INC.
(In millions, except per share amounts)
(Unaudited)
           
 
                   
Three Months Ended June 30, Six Months Ended June 30,
  2012       2011     % Change     2012       2011     % Change  
Net Sales (GAAP)                    
Kitchen & Bath Cabinetry $ 345.9 $ 344.1 0.5 $ 657.4 $ 643.9 2.1
Plumbing & Accessories 281.5 251.8 11.8 526.0 455.6 15.5
Advanced Material Windows & Door Systems 159.6 149.0 7.1 273.0 251.0 8.8
Security & Storage   148.3       144.8     2.4     277.7       254.0     9.3  
Total Net Sales $ 935.3     $ 889.7     5.1   $ 1,734.1     $ 1,604.5     8.1  
 
Operating Income (Loss)                    
Kitchen & Bath Cabinetry $ 17.9 $ 15.1 18.5 $ 12.6 $ 13.1 (3.8 )
Plumbing & Accessories 42.8 34.6 23.7 79.0 60.3 31.0
Advanced Material Windows & Door Systems 3.7 4.6 (19.6 ) (4.8 ) (9.3 ) 48.4
Security & Storage 21.6 19.5 10.8 33.4 25.7 30.0
Corporate Expenses (a)   (13.7 )     (8.6 )   (59.3 )   (26.6 )     (16.8 )   (58.3 )
Total Operating Income (GAAP) $ 72.3     $ 65.2     10.9   $ 93.6     $ 73.0     28.2  
 

OPERATING INCOME (LOSS) BEFORE CHARGES/GAINS RECONCILIATION

 
Operating Income (Loss) Before Charges/Gains (b)                    
Kitchen & Bath Cabinetry $ 18.5 $ 15.2 21.7 $ 14.6 $ 13.5 8.1
Plumbing & Accessories 42.8 34.5 24.1 79.0 60.1 31.4
Advanced Material Windows & Door Systems 4.0 5.0 (20.0 ) (6.3 ) (8.6 ) 26.7
Security & Storage 21.1 19.5 8.2 32.9 25.7 28.0
Corporate expenses   (13.7 )     (12.8 )   (6.9 )   (26.6 )     (26.0 )   (2.3 )
 
Total Operating Income Before Charges/Gains   72.7       61.4     18.4     93.6       64.7     44.7  
Restructuring and other charges (c) (0.4 ) (0.4 ) - (2.0 ) (0.9 ) (122.2 )
Contingent acquisition consideration adjustment (d) - - - 2.0 - 100.0
Standalone corporate costs (e) - 5.0 (100.0 ) - 10.0 (100.0 )
Defined benefit plan actuarial losses (f)   -       (0.8 )   100.0     -       (0.8 )   100.0  
Total Operating Income (GAAP) $ 72.3     $ 65.2     10.9   $ 93.6     $ 73.0     28.2  
(a) For 2011, corporate expenses include allocations of certain Fortune Brands, Inc. general corporate expenses incurred directly by Fortune Brands, Inc. These allocated expenses include costs associated with legal, finance, treasury, accounting, internal audit and general management services. They also include the components of defined benefit plan expense other than service cost including actuarial gains and losses.
 
(b) Operating income (loss) before charges/gains is operating income derived in accordance with GAAP including estimated incremental standalone corporate expenses and excluding restructuring and other charges, income from a contingent acquisition consideration adjustment and the impact of income and expense from actuarial gains or losses associated with our defined benefit plans. Operating income (loss) before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to determine the returns generated by FBHS and to evaluate and identify cost-reduction initiatives. Management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies.
 
(c) Restructuring charges are costs incurred to implement significant cost reduction initiatives and include workforce reduction costs; "other charges" represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines and accelerated depreciation resulting from the closure of facilities.
 
(d) Represents gain attributable to reduction of estimated liability for contingent consideration associated with a business acquisition.
 
(e) The Company estimates that it would have incurred $5 million and $10 million of incremental corporate expenses if it had functioned as an independent standalone public company for the three months ended June 30, 2011 and six months ended June 30, 2011, respectively.
 
(f) Represents actuarial losses associated with our defined benefit plans.

 

DILUTED EPS BEFORE CHARGES/GAINS RECONCILIATION

Diluted EPS before charges/gains is net income calculated on a diluted per-share basis excluding restructuring and other charges, income from a contingent acquisition consideration adjustment, and the impact of income and expense from actuarial gains or losses associated with our defined benefit plans. Diluted EPS before charges/gains for the three and six months ended June 30, 2011 have also been adjusted to reflect an adjusted pro forma effective tax rate of 35%, capital structure changes that reflect the borrowing arrangements and debt level of the Company as of October 4, 2011, the 1:1 share distribution resulting from the spin-off of the Company from Fortune Brands, Inc. and estimated incremental standalone corporate expenses. Diluted EPS before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies.
 
For the second quarter of 2012, diluted EPS before charges/gains is net income calculated on a per-share basis excluding $0.4 million ($0.3 million after tax) of restructuring and other charges.
 
For the six months ended June 30, 2012, diluted EPS before charges/gains is net income calculated on a per-share basis excluding $2.0 million ($1.3 million after tax or $0.01 per diluted share) of restructuring and other charges and income from a contingent acquisition consideration adjustment of $2.0 million ($1.3 million after tax or $0.01 per diluted share).
 
For the second quarter of 2011, diluted EPS before charges/gains is net income calculated on a per-share basis adjusted to reflect standalone corporate costs of $5.0 million ($3.1 million after tax or $0.01 per diluted share), capital structure changes of $2.5 million ($1.6 million after tax or $0.01 per diluted share) and an adjusted pro forma tax rate adjustment of $2.4 million ($0.02 per diluted share), and excludes $0.4 million ($0.4 million after tax) of restructuring and other charges and the impact of income and expense from actuarial gains or losses associated with our defined benefit plans of $0.8 million ($0.5 million after tax).
 
For the six months ended June 30, 2011, diluted EPS before charges/gains is net income calculated on a per-share basis adjusted to reflect standalone corporate costs of $10.0 million ($6.2 million after tax or $0.04 per diluted share), capital structure changes of $17.3 million ($10.7 million after tax or $0.07 per diluted share) and an adjusted pro forma tax rate adjustment of $1.4 million ($0.01 per diluted share), and excludes $0.9 million ($0.7 million after tax or $0.01 per diluted share) of restructuring and other charges and the impact of income and expense from actuarial gains or losses associated with our defined benefit plans of $0.8 million ($0.5 million after tax).
               
Three Months Ended June 30, Six Months Ended June 30,
  2012     2011   % Change     2012       2011     % Change  
                   
Earnings Per Common Share - Diluted        
EPS Before Charges/Gains $ 0.29 $ 0.24 20.8 $ 0.37 $ 0.24 54.2
 
Restructuring and other charges - - - (0.01 ) (0.01 ) -
Contingent acquisition consideration adjustment - - - 0.01 - 100.0
Standalone corporate costs - 0.01 (100.0 ) - 0.04 (100.0 )
Capital structure change - 0.01 (100.0 ) - (0.07 ) 100.0
Adjusted pro forma tax rate adjustment - 0.02 (100.0 ) - 0.01 (100.0 )
Defined benefit plan actuarial losses   -     -   -     -       -     -  
 
Diluted EPS (GAAP) $ 0.29   $ 0.28   3.6   $ 0.37     $ 0.21     76.2  

RECONCILIATION OF FULL YEAR 2012 EARNINGS GUIDANCE TO GAAP

 
For the full year, the Company is targeting diluted EPS before charges/gains to be in the range of $0.77 to $0.87 per share. On a GAAP basis, the Company is targeting diluted EPS to be in the range of $0.77 to $0.87 per share.

 
FORTUNE BRANDS HOME & SECURITY, INC.
(In millions, except per share amounts)
(Unaudited)
 

2011 DILUTED EPS BEFORE CHARGES/GAINS RECONCILIATION

For the year ended December 31, 2011, diluted EPS before charges/gains is net income (loss) calculated on a diluted per-share basis adjusted to reflect the actual number of diluted shares of the company as of December 31, 2011 of 160.7 million, standalone corporate costs of $13.8 million ($8.6 million after tax or $0.05 per diluted share), an adjusted pro forma effective tax rate adjustment of $12.0 million ($0.07 per share) to reflect an effective tax rate of 35%, capital structure changes that reflect the borrowing arrangements and debt level of the Company as of October 4, 2011 of $14.4 million ($8.9 million after tax or $0.06 per diluted share), and excludes restructuring and other charges of $20.0 million ($12.5 million after tax or $0.08 per diluted share), business separation costs of $2.4 million ($1.7 million after tax or $0.01 per diluted share), asset impairment charges of $90.0 million ($55.3 million after tax or $0.35 per diluted share) and the impact from the Company’s defined benefit plan actuarial losses of $80.0 million ($49.9 million after tax or $0.31 per diluted share).

 

 
2011 Diluted EPS before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies.
 
 
Twelve Months Ended
December 31, 2011
Earnings Per Common Share - Diluted
EPS Before Charges/Gains $ 0.60
 
Restructuring and other charges (0.08 )
Standalone corporate costs 0.05
Capital structure change (0.06 )
Business separation costs (0.01 )
Adjusted pro forma tax rate adjustment (0.07 )
Asset impairment charges (0.35 )
Defined benefit plan actuarial losses (0.31 )
 
Diluted EPS (GAAP) $ (0.23 )
           

RECONCILIATION OF EBITDA BEFORE CHARGES/GAINS TO GAAP NET INCOME

                   
Three Months Ended June 30, Six Months Ended June 30,
  2012       2011     % Change     2012       2011     % Change  
                   
EBITDA BEFORE CHARGES/GAINS $ 95.0     $ 86.3     10.1   $ 140.4     $ 114.4     22.7  
                   

Depreciation (a)

$ (20.2 ) $ (21.2 ) 4.8 $ (40.8 ) $ (42.3 ) 3.6
Amortization of intangible assets (2.8 ) (3.8 ) 26.3 (6.2 ) (7.5 ) 17.3
Restructuring and other charges (0.4 ) (0.4 ) - (2.0 ) (0.9 ) (122.2 )
Contingent acquisition consideration adjustment - - - 2.0 - 100.0
Related party interest expense, net - (0.3 ) 100.0 - (23.0 ) 100.0
External interest expense (2.1 ) (0.2 ) (950.0 ) (4.6 ) (0.3 ) (1,433.3 )
Standalone corporate expenses - 5.0 (100.0 ) - 10.0 (100.0 )
Defined benefit plan actuarial losses - (0.8 ) 100.0 - (0.8 ) 100.0
Income taxes   (21.6 )     (20.5 )   (5.4 )   (27.9 )     (15.8 )   (76.6 )
                   
Net Income $ 47.9 $ 44.1 8.6 $ 60.9 $ 33.8 80.2
Noncontrolling interests   (0.1 )     (0.4 )   75.0     (0.6 )     (0.6 )   -  
Net income attributable to Home & Security $ 47.8     $ 43.7     9.4   $ 60.3     $ 33.2     81.6  

EBITDA before charges/gains is net income derived in accordance with GAAP including estimated incremental standalone corporate expenses and excluding restructuring and other charges, income from a contingent acquisition consideration adjustment, the impact of income and expense from actuarial gains or losses associated with our defined benefit plans, depreciation, amortization of intangible assets, related party interest expense, net, external interest expense, and income taxes. EBITDA before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to assess returns generated by FBHS. Management believes this measure provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions and repay debt and related interest. This measure may be inconsistent with similar measures presented by other companies.

 

(a) Depreciation excludes accelerated depreciation of $0.5 million for the six months ended June 30, 2012. Accelerated depreciation is included in restructuring and other charges.

 
FORTUNE BRANDS HOME & SECURITY, INC.
Reconciliation of Income Statement - GAAP to Before Charges/Gains Information

Three Months Ended June 30,

$ in millions, except per share amounts
(unaudited)
                       
  Before Charges/Gains adjustments  
   

 

 

Defined

 
Restructuring Standalone

benefit plan

Capital Pro forma Before
GAAP and other corporate

actuarial

structure tax rate Charges/Gains
(unaudited) charges   costs  

losses

  change   adjustment (Non-GAAP)
                           
2012 SECOND QUARTER
 
Net Sales $ 935.3 - - - - -
 
Cost of products sold 617.9 (0.4 ) - - - -
Selling, general & administrative expenses 242.3 - - - - -
Amortization of intangible assets 2.8 - - - - -
Restructuring charges - - - - - -
                   
 
Operating Income 72.3 0.4 - - - - 72.7
 
External interest expense 2.1 - - - - -
Other expense, net 0.7 - - - - -
                   
Income before income taxes 69.5 0.4 - - - - 69.9
 
Income taxes   21.6 0.1     -     -     -     -  
 
Net Income $ 47.9 0.3     -     -     -     -   $ 48.2
 
Less: Noncontrolling interests   0.1 -     -     -     -     -  
 
Net Income attributable to Fortune Brands Home & Security, Inc. $ 47.8 0.3     -     -     -     -   $ 48.1
 
Average Diluted Shares Outstanding 165.4 165.4
 
Diluted EPS 0.29 0.29
 
 
2011
 
Net Sales $ 889.7 - - - - -
 
Cost of products sold 598.4 - - - - -
Selling, general & administrative expenses 221.9 - 5.0 (0.8 ) - -
Amortization of intangible assets 3.8 - - - - -
Restructuring charges 0.4 (0.4 ) - - - -
                   
 
Operating Income 65.2 0.4 (5.0 ) 0.8 - - 61.4
 
Related party interest expense, net 0.3 - - - 2.5 -
External interest expense 0.2 - - - - -
Other expense, net 0.1 - - - - -
                   
Income before income taxes 64.6 0.4 (5.0 ) 0.8 (2.5 ) - 58.3
 
Income taxes   20.5 -     (1.9 )   0.3     (0.9 )   2.4  
 
Net Income $ 44.1 0.4     (3.1 )   0.5     (1.6 )   (2.4 ) $ 37.9
 
Less: Noncontrolling interests   0.4 -     -         -     -  
 
Net Income attributable to Fortune Brands Home & Security, Inc. $ 43.7 0.4     (3.1 )   0.5     (1.6 )   (2.4 ) $ 37.5
 
Average Diluted Shares Outstanding 155.1 159.0
 
Diluted EPS 0.28 0.24

 
FORTUNE BRANDS HOME & SECURITY, INC.
Reconciliation of Income Statement - GAAP to Before Charges/Gains Information
Six Months Ended June 30,
$ in millions, except per share amounts
(unaudited)
                           
  Before Charges/Gains adjustments  
         
Contingent

Defined

Restructuring acquisition Standalone

benefit plan

Capital Pro forma Before
GAAP and other consideration corporate

actuarial

structure tax rate Charges/Gains
(unaudited) charges   adjustment   costs  

losses

  change   adjustment (Non-GAAP)
                               
2012 YEAR TO DATE
 
Net Sales $ 1,734.1 - - - - - -
 
Cost of products sold 1,169.9 (1.0 ) - - - - -
Selling, general & administrative expenses 463.4 - 2.0 - - - -
Amortization of intangible assets 6.2 - - - - - -
Restructuring charges 1.0 (1.0 ) - - - - -
                       
 
Operating Income 93.6 2.0 (2.0 ) - - - - 93.6
 
External interest expense 4.6 - - - - - -
Other expense, net 0.2 - - - - - -
                       
Income before income taxes 88.8 2.0 (2.0 ) - - - - 88.8
 
Income taxes 27.9 0.7 (0.7 ) - - - -
                       

 

 
Net Income $ 60.9 1.3     (1.3 )   -     -     -     -   $ 60.9
 
Less: Noncontrolling interests   0.6 -     -     -     -     -     -  
 
Net Income attributable
to Fortune Brands Home & Security, Inc. $ 60.3 1.3     (1.3 )   -     -     -     -   $ 60.3
 
Average Diluted Shares Outstanding 164.2 164.2
 
Diluted EPS 0.37 0.37
 
 
2011
 
Net Sales $ 1,604.5 - - - - - -
 
Cost of products sold 1,102.9 (0.2 ) - - - - -
Selling, general & administrative expenses 420.4 - - 10.0 (0.8 ) - -
Amortization of intangible assets 7.5 - - - - - -
Restructuring charges 0.7 (0.7 ) - - - - -
                       
 
Operating Income 73.0 0.9 - (10.0 ) 0.8 - - 64.7
 
Related party interest expense, net 23.0 - - - - (17.3 ) -
External interest expense 0.3 - - - - - -
Other expense, net 0.1 - - - - - -
                       
Income before income taxes 49.6 0.9 - (10.0 ) 0.8 17.3 - 58.6
 
Income taxes   15.8 0.2     -     (3.8 )   0.3     6.6     1.4  
 
Net Income $ 33.8 0.7     -     (6.2 )   0.5     10.7     (1.4 ) $ 38.1
 
Less: Noncontrolling interests   0.6 -     -     -         -     -  
 
Net Income attributable
to Fortune Brands Home & Security, Inc. $ 33.2 0.7     -     (6.2 )   0.5     10.7     (1.4 ) $ 37.5
 
Average Diluted Shares Outstanding 155.1 158.7
 
Diluted EPS 0.21 0.24




4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs