GRACO INC. / / / / / / / / / / / / / / / / / /
4th Quarter 2021 Earnings Conference Call
February 1, 2022
Safe Harbor
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Today's presentation includes forward-looking statements that reflect management's current expectations about the Company's future business and financial performance.
These statements are subject to certain risks and uncertainties that could cause actual results to differ from anticipated results.
Factors that could cause actual results to differ from anticipated
results are identified in Item 1A of the Company's Form 10-K, and Item 1A of the most recent Quarterly Report on Form 10-Q and also the Company's Earnings Release dated January 31, 2022.
2
Conference Call Logistics
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The release, accompanying slides and replay webcast are available
online at www.graco.com
Telephone replay will be available after 2 p.m. ET February 1, 2022. The replay by telephone will be available through 2 p.m. ET February 8, 2022.
- 855-859-2056- Conference ID #7385629
- 404-537-3406- with the same conference ID #, for international participants
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Financial Results
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Statement of Earnings | Fourth Quarter | Full Year | |||||||||
$ in millions except per share amounts | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||
Net Sales | |||||||||||
$ | 539.6 | $ | 470.3 | 15 % | $ | 1,987.6 | $ | 1,650.1 | 20 % | ||
Gross Profit | |||||||||||
274.5 | 244.8 | 12 % | 1,033.9 | 854.9 | 21 % | ||||||
% of Net Sales | 50.9% | 52.1% | (1.2) pts | 52.0% | 51.8% | 0.2 pts | |||||
Operating Earnings | |||||||||||
144.6 | 132.1 | 9 % | 531.3 | 391.7 | 36 % | ||||||
% of Net Sales | 27% | 28% | (1) pts | 27% | 24% | 3 pts | |||||
Net Earnings | |||||||||||
$ | 120.3 | $ | 114.7 | 5 % | $ | 439.9 | $ | 330.5 | 33 % | ||
% of Net Sales | 22% | 24% | (2) pts | 22% | 20% | 2 pts | |||||
Diluted Net Earnings Per Share | |||||||||||
$ | 0.69 | $ | 0.66 | 5 % | $ | 2.52 | $ | 1.92 | 31 % | ||
Diluted Shares in Millions | 174.9 | 173.2 | 1 % | 174.5 | 172.0 | 1 % | |||||
Operating Earnings, Adjusted (1) | $ | 144.6 | $ | 132.1 | 9 % | $ | 531.3 | $ | 426.9 | 24 % | |
Net Earnings, Adjusted (1) | $ | 115.8 | $ | 106.0 | 9 % | $ | 425.7 | $ | 335.2 | 27 % | |
Diluted Net Earnings Per Share, Adjusted (1) | $ | 0.66 | $ | 0.61 | 8 % | $ | 2.44 | $ | 1.95 | 25 % | |
- Operating earnings, net earnings and diluted net earnings per share for 2021 and 2020 have been adjusted to provide a more consistent basis of comparison of on-going results. See page 5 for a reconciliation of the adjusted non-GAAP financial measures to GAAP.
4
Financial Results Adjusted for Comparability
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Certain items have caused fluctuation in the Company's financial results. Excluding the impacts of these items presents a more consistent basis for comparison of financial results. A calculation of the non-GAAP measurements follows:
Non-GAAP Reconciliation | Fourth Quarter | Full Year | |||||||||
In millions except per share amounts | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||
Operating earnings, as reported | $ | 144.6 | $ | 132.1 | 9 % | $ | 531.3 | $ | 391.7 | 36 % | |
Impairment | - | - | - | 35.2 | |||||||
Operating earnings, adjusted | $ | 144.6 | $ | 132.1 | 9 % | $ | 531.3 | $ | 426.9 | 24 % | |
Earnings before taxes, as reported | $ | 129.3 | $ | 129.5 | 0 % | $ | 508.5 | $ | 374.7 | 36 % | |
Impairment | - | - | - | 35.2 | |||||||
Pension settlement loss | 12.0 | - | 12.0 | - | |||||||
Earnings before taxes, net, adjusted | $ | 141.3 | $ | 129.5 | 9 % | $ | 520.5 | $ | 409.9 | 27 % | |
Income taxes, as reported | $ | 9.0 | $ | 14.8 | (39)% | $ | 68.6 | $ | 44.2 | 55 % | |
Impairment tax benefit | - | - | - | 1.2 | |||||||
Pension settlement tax effect | 2.5 | - | 2.5 | - | |||||||
Excess tax benefit from option exercises | 2.7 | 8.7 | 11.5 | 21.3 | |||||||
Other non-recurring tax benefit | 11.3 | - | 12.2 | 8.0 | |||||||
Income taxes, adjusted | $ | 25.5 | $ | 23.5 | 9 % | $ | 94.8 | $ | 74.7 | 27 % | |
Effective income tax rate | |||||||||||
As reported | 7% | 11% | 13% | 12% | |||||||
Adjusted | 18% | 18% | 18% | 18% | |||||||
Net earnings, as reported | $ | 120.3 | $ | 114.7 | 5 % | $ | 439.9 | $ | 330.5 | 33 % | |
Impairment, net | - | - | - | 34.0 | |||||||
Pension settlement loss, net | 9.5 | - | 9.5 | - | |||||||
Excess tax benefit from option exercises | (2.7) | (8.7) | (11.5) | (21.3) | |||||||
Other non-recurring tax benefit | (11.3) | - | (12.2) | (8.0) | |||||||
Net earnings, adjusted | $ | 115.8 | $ | 106.0 | 9 % | $ | 425.7 | $ | 335.2 | 27 % | |
Weighted average diluted shares | 174.9 | 173.2 | 174.5 | 172.0 | |||||||
Diluted earnings per share | |||||||||||
As reported | $ | 0.69 | $ | 0.66 | 5 % | $ | 2.52 | $ | 1.92 | 31 % | |
Adjusted | $ | 0.66 | $ | 0.61 | 8 % | $ | 2.44 | $ | 1.95 | 25 % |
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Graco Inc. published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 21:47:16 UTC.
