Fortune Brands Home & Security, Inc. reported unaudited consolidated financial results for the fourth quarter and full year ended Dec. 31, 2013. For the fourth quarter of 2013, net sales were $1.10 billion, an increase of 16% over $947.9 million for the fourth quarter of 2012. Diluted earnings per share were $0.37, compared to $0.11 in the prior-year quarter. Diluted EPS before charges/gains were $0.38, compared to $0.23 the same quarter last year. Operating income was $95.4 million, compared to $7.5 million in the prior-year quarter. Operating income before charges/gains was $97.3 million, compared to $61.2 million the same quarter last year. Income before income taxes was $94.1 million against $5.8 million for the same quarter of last year. Net income attributable to the company was $64.2 million against $18.4 million for the same quarter of last year. Net income per diluted share was $0.37 against $0.11 for the same quarter of last year. Net debt was $356 million. EBITDA before charges/gains was $121.9 million against $84.9 million a year ago.

For the year, net sales were $4,157.4 million against $3,591.1 million the same period of last year. Operating income was $357.1 million against $161.7 million the same period of last year. Income before income taxes was $344.9 million against $154.0 million the same period of last year. Net income attributable to the company was $229.7 million against $118.7 million the same period of last year. Net cash provided by operating activities was $297.8 million against $282.8 million the same period of last year. Capital expenditures, net of proceeds from asset sales was $94.5 million against $61.5 million the same period of last year. Diluted earnings per share were $1.34 compared to $0.71 in the prior year, and diluted EPS before charges/gains were $1.50 versus $0.89 last year, an increase of 69%. EBITDA before charges/gains was $480.3 million against $321.3 million a year ago.

The company's 2014 annual outlook is based on a home products market growth assumption of 10% to 11%. Based on the company's strong performance, its confidence in the housing market recovery and expectation to continue outperforming the market, the company expects full-year 2014 net sales to increase 11% to 13%. The company expects diluted EPS before charges/gains to be in the range of $1.91 to $2.01. This targeted range compares to 2013 diluted EPS before charges/gains of $1.50. The company expects to generate $250+ million in free cash flow in 2014, net of capital expenditures of $130 to $140 million, as it begins to invest in incremental capacity and infrastructure to support multi-year growth.