LAKE ZURICH, Ill., Feb. 13, 2019 /PRNewswire/ -- ACCO Brands
Corporation (NYSE: ACCO), one of the world's largest designers,
marketers and manufacturers of branded academic, consumer and
business products, today reported its fourth quarter and full year
results for the period ended December 31, 2018.
"While 2018 did not live up to our expectations, we generated
strong cash flow and delivered terrific results in Brazil, Canada and across EMEA," said Boris Elisman, Chairman, President and Chief
Executive Officer of ACCO Brands. "In the U.S. we are taking
aggressive actions to offset sales and margin pressures from
commercial customer consolidation, as well as higher inflation and
tariffs. While we expect the environment to remain
challenging in 2019, we believe we are well positioned to improve
our profit and cash flow, execute on our strategy, and increase
shareholder value."
Fourth Quarter Results
Net sales decreased 6.6% to $529.3
million from the prior-year period as growth from
acquisitions was more than offset by adverse foreign
currency. Comparable sales decreased 4.6% due to lower sales
in the U.S. Net income was $35.0
million, or $0.34 per share,
including $4.1 million of
restructuring, integration and transaction charges. Net
income in the prior-year quarter was $74.0
million, or $0.68 per share,
which included a $25.7 million
one-time tax benefit and $7.4 million
of charges. The decline in net income was primarily due to
the non-repeat of the one-time tax benefit, as well as lower sales
and profit in the U.S. Adjusted net income was $42.9 million, or $0.41 per share, compared to $52.7 million, or $0.48 per share, in the prior-year quarter.
The decline in adjusted net income was primarily driven by lower
sales, adverse mix and inflation in the U.S., as well as adverse
foreign currency, partially offset by lower incentive compensation
expense.
Strategic Overview
"We continue to execute our strategy of growing our global
portfolio of consumer brands, increasing our presence in faster
growing geographies, channels and product categories and
diversifying our customer base, through organic efforts and
supported by acquisitions. In early 2019, we made a small
tuck-in acquisition in Australia
to extend our presence into new categories. In 2018, we
acquired GOBA Internacional, a branded school and craft products
company in Mexico. We also
realized sales synergies from the Esselte acquisition through
expanded distribution of ACCO Brands products to the broader
Esselte customer base, and realized $13
million in cost synergies in 2018. We now expect to realize
$32 million of synergy savings from
the Esselte acquisition by the end of 2019, an increase from our
initial target of $23 million," said
Elisman.
"We continue to focus on leveraging our cost structure through
productivity savings and acquisition synergies to drive long-term
profit improvement and strong cash flow generation. In 2018, we
realized a total of $32 million of
cost savings, including $19 million
of productivity savings and $13
million of acquisition synergy savings. In 2019, we
expect to generate $40-$45 million of savings," he continued.
Business Segment Highlights
ACCO Brands North America - Sales of $228.9 million decreased 9.6% from the prior-year
period, and decreased 9.2% excluding currency. Pricing added
2.5%. The decreases were primarily due to lower sales to a
U.S. office wholesaler and reduced sales of calendar
products. Operating income of $28.5
million decreased 37.1% from the prior-year quarter and
adjusted operating income of $31.6
million decreased 31.6% from the prior-year quarter.
Both year-over-year declines were primarily due to lower sales and
gross margin, driven by unfavorable product and customer mix as
well as inflation from increased material, transportation and
tariff costs in the U.S. The company implemented price
increases in the U.S. in October 2018
and in the first quarter of 2019, which, together with cost
reduction initiatives, are expected to fully offset current
inflation, including tariffs.
ACCO Brands EMEA - Sales of $167.1 million decreased 5.9% primarily due to
adverse foreign currency. Comparable sales decreased 1.7%,
primarily driven by the insolvency of a European wholesaler.
Operating income of $22.3 million
increased 5.2% from the prior-year period due to lower
restructuring charges. Adjusted operating income of
$23.0 million decreased 8.0% from the
prior-year period due to lower sales and higher transportation and
material costs, which were partially offset by synergy savings
related to the integration of the Esselte business.
ACCO Brands International - Sales of $133.3 million decreased 2.1% from the prior-year
period as growth from an acquisition was offset by adverse foreign
currency. Comparable sales were approximately flat.
Strong sales growth in Brazil was
offset by declines in Mexico and
Australia. Reported operating income of $24.0 million decreased 6.3% and adjusted
operating income of $24.3 million
decreased 5.4%, both due to adverse foreign currency.
Full Year 2018 Results
Net sales decreased modestly to $1.94
billion from $1.95 billion in
the prior-year period, as growth from acquisitions was offset by
lower sales and adverse foreign exchange. Comparable sales
declined 3.1% due to lower sales in the U.S., Australia and Mexico, partially offset by growth in EMEA,
Brazil and Canada. Net
income was $106.7 million, or
$1.00 per share, including
$16.4 million of restructuring,
integration and transaction charges. This compared to net
income of $131.7 million, or
$1.19 per share, in the prior-year
period, which included $35.5 million
of charges, net of other one-time items and a $25.7 million one-time tax benefit. The
decline in net income was primarily due to the non-repeat of the
one-time tax benefit as well as lower sales and profit in the U.S.
Adjusted net income was $122.0
million, or $1.14 per share,
compared to $131.6 million, or
$1.19 per share, in the prior-year
period. The decline in adjusted net income was primarily the
result of lower sales and profit in the U.S.
Capital Allocation
In 2018, the company generated $194.8
million of net cash from operating activities and
$160.9 million of free cash flow, and
used it to repurchase 6.0 million shares of stock for a total of
$75.0 million, pay $25.1 million in dividends and repay $62.2 million of debt. In addition, the
company borrowed $38.0 million for
the acquisition of GOBA. The company continues to generate
strong annual cash flow and its capital allocation priorities
remain funding strategic acquisitions, debt reduction, dividends
and share repurchases. The company continues to target a
long-term net leverage ratio in the range of 2.0x-2.5x.
2019 Guidance
The company is introducing 2019 guidance for net sales growth,
adjusted earnings per share and free cash flow.
|
2019
Guidance
|
Net sales
growth
|
(3)% to 0%
|
Adjusted
EPS
|
$1.10 to
$1.20
|
Free Cash
Flow
|
$165 million to $175
million
|
Webcast
At 8:30 a.m. Eastern Time today,
ACCO Brands Corporation will host a conference call to discuss the
company's results. The call will be broadcast live via
webcast. The webcast can be accessed through the Investor
Relations section of www.accobrands.com. The webcast
will be in listen-only mode and will be available for replay for
one month following the event.
About ACCO Brands Corporation
ACCO Brands Corporation is one of the world's largest designers,
marketers and manufacturers of branded academic, consumer and
business products. Our widely recognized brands include
AT-A-GLANCE®, Barrilito®, Derwent®, Esselte®, Five Star®, GBC®,
Hilroy®, Kensington®, Leitz®, Mead®, Quartet®, Rapid®, Rexel®,
Swingline®, Tilibra®, Wilson Jones®, and many others. Our
products are sold in more than 100 countries around the
world. More information about ACCO Brands, the Home of Great
Brands Built by Great People, can be found at
www.accobrands.com.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures,
including comparable net sales, adjusted operating income, adjusted
net income, adjusted net income per share, adjusted earnings before
interest, taxes, depreciation and amortization ("EBITDA"), free
cash flow, normalized tax rate, and net leverage ratio. We have
included a description of each of these measures and a
reconciliation to the most directly comparable GAAP financial
measure in the tables attached to this press release. We sometimes
refer to comparable net sales as comparable sales and adjusted net
income per share as adjusted earnings per share.
We use the non-GAAP financial measures both in the internal
evaluation and management of our business and to explain our
results to stockholders and the investment community. Senior
management's incentive compensation is derived, in part, using
certain of these measures. We believe these measures provide
management and investors with a more complete understanding of our
underlying operational results and trends, facilitate meaningful
comparisons and enhance an overall understanding of our past
financial performance and our future prospects. The non-GAAP
results are an indication of our baseline performance before gains,
losses or other charges that we considered to be outside our core
operating results.
The non-GAAP financial measures exclude certain items that may
have a material impact upon our reported financial results such as
unusual income tax items, restructuring and integration charges,
acquisition-related expenses, the impact of foreign currency
fluctuation and acquisitions, and other one-time or non-recurring
items. These measures should not be considered in isolation or as a
substitute for, or superior to, the directly comparable GAAP
financial measures and should be read in connection with the
company's financial statements presented in accordance with
GAAP.
This press release also provides forward-looking non-GAAP
adjusted earnings per share, free cash flow, normalized tax rate
and net leverage ratio. We do not provide a reconciliation of
forward-looking adjusted earnings per share, normalized tax
rate, free cash flow or net leverage ratio to GAAP because the GAAP
financial measure is not accessible on a forward-looking basis and
reconciling information is not available without unreasonable
effort due to the inherent difficulty of forecasting and
quantifying certain amounts that are necessary for such a
reconciliation, including adjustments that could be made for
restructuring, integration and acquisition-related expenses, the
variability of our tax rate and the impact of foreign currency
fluctuation and acquisitions, and other charges reflected in our
historical numbers. The probable significance of each of these
items is high and, based on historical experience, could be
material.
Forward-Looking Statements
Statements contained in this press release, other than
statements of historical fact, particularly those anticipating
future financial performance, business prospects, growth, operating
strategies and similar matters are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements, which are generally identifiable by the
use of the words "will," "believe," "expect," "intend,"
"anticipate," "estimate," "forecast," "project," "plan," and
similar expressions, are subject to certain risks and
uncertainties, are made as of the date hereof, and we undertake no
duty or obligation to update them. Because actual results may
differ materially from those suggested or implied by such
forward-looking statements, you should not place undue reliance on
them when deciding whether to buy, sell or hold the company's
securities.
Our 2019 guidance outlook is based on certain assumptions, which
we believe to be reasonable under the circumstances. These include,
without limitation, assumptions regarding the timing, cost and
synergies expected from integration of acquisitions; impact of
changes in U.S. tax laws and trade policies; changes in the macro
environment; fluctuations in foreign currency rates and share
count; changes in the competitive landscape, including ongoing
uncertainties driven by the consolidation in the traditional office
products channels, and consumer behavior; as well as other factors
described below.
Among the factors that could cause actual results to differ
materially from our forward-looking statements are: a relatively
limited number of large customers account for a significant
percentage of our sales; risks associated with foreign currency
fluctuations; challenges related to the highly competitive business
environments in which we operate, including ongoing uncertainties
driven by the consolidation in the traditional office products
channels; risks associated with shifts in the channels of
distribution for our products; our ability to develop and market
innovative products that meet consumer demands; our ability to grow
profitably through acquisitions and expand our product assortment
into new and adjacent categories; our ability to successfully
integrate acquisitions and achieve the financial and other results
anticipated at the time of acquisition, including synergies; the
failure, inadequacy or interruption of our information technology
systems or supporting infrastructure; risks associated with a
cybersecurity incident or information security breach; our ability
to successfully expand our business in emerging markets which
generally expose us to greater financial, operational, regulatory
and compliance and other risks; risks associated with raw material,
labor and transportation availability and cost fluctuations; the
effects of the U.S. Tax Cuts and Jobs Act; risks associated with
changes to U.S. government policies, including increased import
tariffs and other changes in trade relations and policies; the
impact of litigation or other legal proceedings; consumer spending
decisions during periods of economic uncertainty or weakness; the
risks associated with outsourcing production of certain of our
products, information systems and other administrative functions;
the continued decline in the use of certain of our products; risks
associated with seasonality; our failure to comply with applicable
laws, rules and regulations and self-regulatory requirements and
the costs of compliance; the sufficiency of investment returns on
pension assets and risks related to actuarial assumptions; any
impairment of our intangible assets; risks associated with our
indebtedness, including our debt service obligations, limitations
imposed by restrictive covenants and our ability to comply with
financial ratios and tests; the bankruptcy or financial instability
of our customers and suppliers; our failure to comply with customer
contracts; our ability to secure, protect and maintain our
intellectual property rights; product liability claims or
regulatory actions; our ability to attract and retain key
employees; the volatility of our stock price; material disruptions
at one of our or our suppliers' major manufacturing or distribution
facilities resulting from circumstances outside our control; and
other risks and uncertainties described in "Part I, Item 1A. Risk
Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2017, in "Part II, Item 1A. Risk Factors" in our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and in other reports we file
with the SEC.
ACCO Brands
Corporation and Subsidiaries
|
Consolidated
Statements of Income (Unaudited)
|
(In millions,
except per share data)
|
|
|
|
Three Months
Ended
December 31,
|
|
|
|
Twelve Months
Ended
December 31,
|
|
|
|
2018
|
|
2017
(A)
|
|
%
Change
|
|
2018
|
|
2017
(A)
|
|
%
Change
|
Net sales
|
$
|
529.3
|
|
|
$
|
566.8
|
|
|
(7)%
|
|
$
|
1,941.2
|
|
|
$
|
1,948.8
|
|
|
—%
|
Cost of products
sold
|
352.2
|
|
|
367.4
|
|
|
(4)%
|
|
1,313.4
|
|
|
1,291.5
|
|
|
2%
|
Gross
profit
|
177.1
|
|
|
199.4
|
|
|
(11)%
|
|
627.8
|
|
|
657.3
|
|
|
(4)%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
97.8
|
|
|
107.3
|
|
|
(9)%
|
|
392.4
|
|
|
415.5
|
|
|
(6)%
|
Amortization of
intangibles
|
9.5
|
|
|
9.2
|
|
|
3%
|
|
36.7
|
|
|
35.6
|
|
|
3%
|
Restructuring
charges
|
3.8
|
|
|
5.6
|
|
|
(32)%
|
|
11.7
|
|
|
21.7
|
|
|
(46)%
|
Total operating costs
and expenses
|
111.1
|
|
|
122.1
|
|
|
(9)%
|
|
440.8
|
|
|
472.8
|
|
|
(7)%
|
Operating
income
|
66.0
|
|
|
77.3
|
|
|
(15)%
|
|
187.0
|
|
|
184.5
|
|
|
1%
|
Non-operating expense
(income):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
10.3
|
|
|
9.8
|
|
|
5%
|
|
41.2
|
|
|
41.1
|
|
|
—%
|
Interest
income
|
(0.9)
|
|
|
(0.9)
|
|
|
—%
|
|
(4.4)
|
|
|
(5.8)
|
|
|
(24)%
|
Non-operating pension
income
|
(2.2)
|
|
|
(2.3)
|
|
|
(4)%
|
|
(9.3)
|
|
|
(8.5)
|
|
|
9%
|
Other expense
(income), net
|
—
|
|
|
0.6
|
|
|
(100)%
|
|
1.6
|
|
|
(0.4)
|
|
|
NM
|
Income before income
tax
|
58.8
|
|
|
70.1
|
|
|
(16)%
|
|
157.9
|
|
|
158.1
|
|
|
—%
|
Income tax expense
(income)
|
23.8
|
|
|
(3.9)
|
|
|
NM
|
|
51.2
|
|
|
26.4
|
|
|
94%
|
Net income
|
$
|
35.0
|
|
|
$
|
74.0
|
|
|
(53)%
|
|
$
|
106.7
|
|
|
$
|
131.7
|
|
|
(19)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
$
|
0.34
|
|
|
$
|
0.69
|
|
|
(51)%
|
|
$
|
1.02
|
|
|
$
|
1.22
|
|
|
(16)%
|
Diluted income per
share
|
$
|
0.34
|
|
|
$
|
0.68
|
|
|
(50)%
|
|
$
|
1.00
|
|
|
$
|
1.19
|
|
|
(16)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
102.7
|
|
|
106.6
|
|
|
|
|
104.8
|
|
|
108.1
|
|
|
|
Diluted
|
104.0
|
|
|
109.2
|
|
|
|
|
107.0
|
|
|
110.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
|
0.06
|
|
|
$
|
—
|
|
|
|
|
$
|
0.24
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (as a %
of Net sales, except Income tax rate)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
|
|
Twelve Months
Ended
December 31,
|
|
|
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
Gross profit (Net
sales, less Cost of products sold)
|
33.5
|
%
|
|
35.2
|
%
|
|
|
|
32.3
|
%
|
|
33.7
|
%
|
|
|
Selling, general and
administrative expenses
|
18.5
|
%
|
|
18.9
|
%
|
|
|
|
20.2
|
%
|
|
21.3
|
%
|
|
|
Operating
income
|
12.5
|
%
|
|
13.6
|
%
|
|
|
|
9.6
|
%
|
|
9.5
|
%
|
|
|
Income before income
tax
|
11.1
|
%
|
|
12.4
|
%
|
|
|
|
8.1
|
%
|
|
8.1
|
%
|
|
|
Net income
|
6.6
|
%
|
|
13.1
|
%
|
|
|
|
5.5
|
%
|
|
6.8
|
%
|
|
|
Income tax
rate
|
40.5
|
%
|
|
(5.6)%
|
|
|
|
|
32.4
|
%
|
|
16.7
|
%
|
|
|
|
|
(A)
|
2017 historical data
has been restated for ASU No. 2017-07, Compensation - Retirement
Benefits (Topic 715): Improving the Presentation of Net Periodic
Pension Cost and Net Periodic Postretirement Benefit Cost, which is
effective for the Company in the first quarter of 2018. This new
standard requires presentation of all components of net periodic
pension and postretirement benefit costs, other than service costs,
in an income statement line item outside of a subtotal of income
from operations. This has resulted in the reclass of $2.3 million
and $8.5 million of income out of operating income into the account
"non-operating pension income" for the three and twelve months
ended December 31, 2017, respectively.
|
ACCO Brands
Corporation and Subsidiaries
|
Reconciliation of
GAAP to Adjusted Non-GAAP Information (Unaudited)
|
(In millions,
except per share data)
|
|
The following table
sets forth a reconciliation of certain Income Statement information
reported in accordance with GAAP to adjusted Non-GAAP
Information.
|
|
|
Three Months Ended
December 31, 2018
|
|
Three Months Ended
December 31, 2017
|
|
|
|
|
Reported
|
|
% of
|
|
Adjusted
|
|
Adjusted
|
|
% of
|
|
Reported
|
|
% of
|
|
Adjusted
|
|
Adjusted
|
|
% of
|
|
% Change
|
|
|
GAAP
|
|
Sales
|
|
Items
|
|
Non-GAAP
|
|
Sales
|
|
GAAP
|
|
Sales
|
|
Items
|
|
Non-GAAP
|
|
Sales
|
|
Adjusted
|
|
Gross
profit
|
$
|
177.1
|
|
|
33.5
|
%
|
|
$
|
0.1
|
|
(A.1)
|
$
|
177.2
|
|
|
33.5
|
%
|
|
$
|
199.4
|
|
|
35.2
|
%
|
|
$
|
—
|
|
|
$
|
199.4
|
|
|
35.2
|
%
|
|
(11)
|
%
|
|
Selling, general and
administrative expenses
|
97.8
|
|
|
18.5
|
%
|
|
(0.2)
|
|
(A.2)
|
97.6
|
|
|
18.4
|
%
|
|
107.3
|
|
|
18.9
|
%
|
|
(1.8)
|
|
(A.2)
|
105.5
|
|
|
18.6
|
%
|
|
(7)
|
%
|
|
Restructuring
charges
|
3.8
|
|
|
|
|
(3.8)
|
|
(A.3)
|
—
|
|
|
|
|
5.6
|
|
|
|
|
(5.6)
|
|
(A.3)
|
—
|
|
|
|
|
NM
|
|
|
Operating
income
|
66.0
|
|
|
12.5
|
%
|
|
4.1
|
|
|
70.1
|
|
|
13.2
|
%
|
|
77.3
|
|
|
13.6
|
%
|
|
7.4
|
|
|
84.7
|
|
|
14.9
|
%
|
|
(17)
|
%
|
|
Income before income
tax
|
58.8
|
|
|
11.1
|
%
|
|
4.1
|
|
|
62.9
|
|
|
11.9
|
%
|
|
70.1
|
|
|
12.4
|
%
|
|
7.4
|
|
|
77.5
|
|
|
13.7
|
%
|
|
(19)%
|
%
|
|
Income tax expense
(income)
|
23.8
|
|
|
|
|
(3.8)
|
|
(A.7)
|
20.0
|
|
|
|
|
(3.9)
|
|
|
|
|
28.7
|
|
(A.7)
|
24.8
|
|
|
|
|
(19)%
|
%
|
|
Income tax
rate
|
40.5
|
%
|
|
|
|
|
|
32.0
|
%
|
|
|
|
(5.6)
|
%
|
|
|
|
|
|
32.0
|
%
|
|
|
|
|
|
Net income
|
$
|
35.0
|
|
|
6.6
|
%
|
|
$
|
7.9
|
|
|
$
|
42.9
|
|
|
8.1
|
%
|
|
$
|
74.0
|
|
|
13.1
|
%
|
|
$
|
(21.3)
|
|
|
$
|
52.7
|
|
|
9.3
|
%
|
|
(19)
|
%
|
|
Diluted income per
share
|
$
|
0.34
|
|
|
|
|
$
|
0.08
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.68
|
|
|
|
|
$
|
(0.20)
|
|
|
$
|
0.48
|
|
|
|
|
(15)
|
%
|
|
Weighted average
number of shares outstanding:
|
104.0
|
|
|
|
|
|
|
104.0
|
|
|
|
|
109.2
|
|
|
|
|
|
|
109.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2018
|
|
Twelve Months
Ended December 31, 2017
|
|
|
|
|
Reported
|
|
% of
|
|
Adjusted
|
|
Adjusted
|
|
% of
|
|
Reported
|
|
% of
|
|
Adjusted
|
|
Adjusted
|
|
% of
|
|
% Change
|
|
|
GAAP
|
|
Sales
|
|
Items
|
|
Non-GAAP
|
|
Sales
|
|
GAAP
|
|
Sales
|
|
Items
|
|
Non-GAAP
|
|
Sales
|
|
Adjusted
|
|
Gross
profit
|
$
|
627.8
|
|
|
32.3
|
%
|
|
$
|
0.1
|
|
(A.1)
|
$
|
627.9
|
|
|
32.3
|
%
|
|
$
|
657.3
|
|
|
33.7
|
%
|
|
$
|
0.9
|
|
(A.1)
|
$
|
658.2
|
|
|
33.8
|
%
|
|
(5)
|
%
|
|
Selling, general and
administrative expenses
|
392.4
|
|
|
20.2
|
%
|
|
(4.6)
|
|
(A.2)
|
387.8
|
|
|
20.0
|
%
|
|
415.5
|
|
|
21.3
|
%
|
|
(14.9)
|
|
(A.2)
|
400.6
|
|
|
20.6
|
%
|
|
(3)
|
%
|
|
Restructuring
charges
|
11.7
|
|
|
|
|
(11.7)
|
|
(A.3)
|
—
|
|
|
|
|
21.7
|
|
|
|
|
(21.7)
|
|
(A.3)
|
—
|
|
|
|
|
NM
|
|
|
Operating
income
|
187.0
|
|
|
9.6
|
%
|
|
16.4
|
|
|
203.4
|
|
|
10.5
|
%
|
|
184.5
|
|
|
9.5
|
%
|
|
37.5
|
|
|
222.0
|
|
|
11.4
|
%
|
|
(8)
|
%
|
|
Interest
expense
|
41.2
|
|
|
|
|
(0.6)
|
|
(A.4)
|
40.6
|
|
|
|
|
41.1
|
|
|
|
|
—
|
|
|
41.1
|
|
|
|
|
(1)
|
%
|
|
Non-operating pension
income
|
(9.3)
|
|
|
|
|
0.6
|
|
(A.5)
|
(8.7)
|
|
|
|
|
(8.5)
|
|
|
|
|
—
|
|
|
(8.5)
|
|
|
|
|
2
|
%
|
|
Other expense
(income), net
|
1.6
|
|
|
|
|
—
|
|
|
1.6
|
|
|
|
|
(0.4)
|
|
|
|
|
2.0
|
|
(A.6)
|
1.6
|
|
|
|
|
—
|
%
|
|
Income before income
tax
|
157.9
|
|
|
8.1
|
%
|
|
16.4
|
|
|
174.3
|
|
|
9.0
|
%
|
|
158.1
|
|
|
8.1
|
%
|
|
35.5
|
|
|
193.6
|
|
|
9.9
|
%
|
|
(10)
|
%
|
|
Income tax
expense
|
51.2
|
|
|
|
|
1.1
|
|
(A.7)
|
52.3
|
|
|
|
|
26.4
|
|
|
|
|
35.6
|
|
(A.7)
|
62.0
|
|
|
|
|
(16)
|
%
|
|
Income tax
rate
|
32.4
|
%
|
|
|
|
|
|
30.0
|
%
|
|
|
|
16.7
|
%
|
|
|
|
|
|
32.0
|
%
|
|
|
|
|
|
Net income
|
$
|
106.7
|
|
|
5.5
|
%
|
|
$
|
15.3
|
|
|
$
|
122.0
|
|
|
6.3
|
%
|
|
$
|
131.7
|
|
|
6.8
|
%
|
|
$
|
(0.1)
|
|
|
$
|
131.6
|
|
|
6.8
|
%
|
|
(7)
|
%
|
|
Diluted income per
share
|
$
|
1.00
|
|
|
|
|
$
|
0.14
|
|
|
$
|
1.14
|
|
|
|
|
$
|
1.19
|
|
|
|
|
$
|
—
|
|
|
$
|
1.19
|
|
|
|
|
(4)
|
%
|
|
Weighted average
number of shares outstanding:
|
107.0
|
|
|
|
|
|
|
107.0
|
|
|
|
|
110.9
|
|
|
|
|
|
|
110.9
|
|
|
|
|
|
|
Notes for
Reconciliation of GAAP to Adjusted Non-GAAP Information
(Unaudited)
|
|
A.
|
"Adjusted" results
exclude restructuring charges, amortization of the step-up in value
of finished goods, transaction and integration expenses associated
with the acquisitions of Esselte Group Holdings AB ("Esselte"),
Pelikan Artline and GOBA Internacional, S.A. de C.V ("GOBA"). In
addition, "Adjusted" results exclude other one-time or
non-recurring items and all unusual income tax items, including
income taxes related to the aforementioned items; in addition,
income taxes have been recalculated at a normalized tax rate of 30%
for 2018 and 32% for 2017.
|
1.
|
Represents the
adjustment related to the amortization of step-up in the value of
finished goods inventory associated with the acquisition of Esselte
in 2017.
|
2.
|
Represents the
elimination of transaction and integration expenses associated with
the acquisitions of Esselte (in 2018 and 2017), Pelikan Artline (in
2017 only) and GOBA (in 2018 only) and $1.5 million gain on the
sale of a distribution center (in 2017) related to the Pelikan
Artline integration.
|
3.
|
Represents the
elimination of restructuring charges.
|
4.
|
Represents the
elimination of forward points on a hedged intercompany loan for the
GOBA acquisition.
|
5.
|
Represents the
elimination of a pension curtailment gain related to a
restructuring project for the integration of Esselte.
|
6.
|
Represents the
foreign currency gain of $2.3 million related to the settlement of
certain intercompany transactions in the second quarter of 2017,
and the write-off of $0.3 million in debt issuance costs and other
costs associated with the Company's refinancing in the first
quarter of 2017 related to the Esselte acquisition.
|
7.
|
Primarily reflects
the tax effect of the adjustments outlined in items A.1-4 above and
adjusts the company's effective tax rate to a normalized rate of
30% for 2018 (the Company adjusted the rate in the fourth quarter
of 2018 to 30% from 29%, due to lower U.S. income; the impact for
the quarter and year-to-date was $1.8 million) and 32% for 2017.
The lower normalized tax rate for 2018 is primarily due to the
restructuring of our European legal entities following the
acquisition of Esselte. The Company's estimated long-term rate
remains subject to variations from the mix of earnings across the
Company's operating jurisdictions and changes in tax
laws.
|
ACCO Brands
Corporation and Subsidiaries
|
Reconciliation of
Net Income to Adjusted EBITDA and Net Leverage Ratio
(Unaudited)
|
(In
millions)
|
|
"Adjusted EBITDA"
represents net income after adding back depreciation; stock-based
compensation expense; amortization of intangibles; interest
expense, net; other expense (income), net; and income tax expense.
Adjusted EBITDA also excludes the amortization of the step-up in
value of finished goods inventory, transaction, integration, and
restructuring charges and a pension curtailment gain related to a
restructuring project for the integration of Esselte within the
ACCO Brands EMEA segment. The following table sets forth a
reconciliation of net income reported in accordance with GAAP to
Adjusted EBITDA. "Net Leverage Ratio" represents total debt less
cash and cash equivalents divided by Adjusted EBTIDA.
|
|
|
|
|
Three Months
Ended
December 31,
|
|
|
|
Twelve Months
Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
Net
income
|
$
|
35.0
|
|
|
$
|
74.0
|
|
|
(53)%
|
|
$
|
106.7
|
|
|
$
|
131.7
|
|
|
(19)%
|
|
Inventory step-up
amortization
|
0.1
|
|
|
—
|
|
|
NM
|
|
0.1
|
|
|
0.9
|
|
|
(89)%
|
|
Transaction and
integration expenses
|
0.2
|
|
|
1.8
|
|
|
(89)%
|
|
4.6
|
|
|
14.9
|
|
|
(69)%
|
|
Restructuring
charges
|
3.8
|
|
|
5.6
|
|
|
(32)%
|
|
11.7
|
|
|
21.7
|
|
|
(46)%
|
|
Pension curtailment
gain
|
—
|
|
|
—
|
|
|
NM
|
|
(0.6)
|
|
|
—
|
|
|
NM
|
|
Depreciation
|
8.5
|
|
|
9.3
|
|
|
(9)%
|
|
34.0
|
|
|
35.6
|
|
|
(4)%
|
|
Stock-based
compensation
|
2.8
|
|
|
5.1
|
|
|
(45)%
|
|
8.8
|
|
|
17.0
|
|
|
(48)%
|
|
Amortization of
intangibles
|
9.5
|
|
|
9.2
|
|
|
3%
|
|
36.7
|
|
|
35.6
|
|
|
3%
|
|
Interest expense,
net
|
9.4
|
|
|
8.9
|
|
|
6%
|
|
36.8
|
|
|
35.3
|
|
|
4%
|
|
Other expense
(income), net
|
—
|
|
|
0.6
|
|
|
(100)%
|
|
1.6
|
|
|
(0.4)
|
|
|
NM
|
|
Income tax expense
(income)
|
23.8
|
|
|
(3.9)
|
|
|
NM
|
|
51.2
|
|
|
26.4
|
|
|
94%
|
Adjusted EBITDA
(non-GAAP)
|
$
|
93.1
|
|
|
$
|
110.6
|
|
|
(16)%
|
|
$
|
291.6
|
|
|
$
|
318.7
|
|
|
(9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
% of Net Sales
|
17.6%
|
|
|
19.5%
|
|
|
|
|
15.0%
|
|
|
16.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Debt/Adjusted EBITDA):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
Total debt (gross
debt)
|
|
|
|
|
|
|
$
|
888.0
|
|
|
$
|
939.5
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
67.0
|
|
|
76.9
|
|
|
|
|
Net Debt
(non-GAAP)
|
|
|
|
|
|
|
$
|
821.0
|
|
|
$
|
862.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio
(non-GAAP)
|
|
|
|
|
|
|
2.8
|
|
|
2.7
|
|
|
|
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
|
(In
millions)
|
|
"Free Cash Flow"
represents cash flow from operating activities less cash used for
additions to property, plant and equipment, plus cash proceeds from
the disposition of assets. The following table sets forth a
reconciliation of net cash provided by operating activities
reported in accordance with GAAP to Free Cash Flow.
|
|
|
|
|
|
Twelve Months
Ended
December 31, 2018
|
|
Twelve Months
Ended
December 31, 2017
|
Net cash provided
by operating activities
|
$
|
194.8
|
|
|
$
|
204.9
|
|
|
|
|
|
Net cash (used)
provided by:
|
|
|
|
Additions to
property, plant and equipment
|
(34.1)
|
|
|
(31.0)
|
|
Proceeds from the
disposition of assets
|
0.2
|
|
|
4.2
|
|
Free cash flow
(non-GAAP)
|
$
|
160.9
|
|
|
$
|
178.1
|
|
ACCO Brands
Corporation and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
(unaudited)
|
|
|
(in
millions)
|
December 31,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
67.0
|
|
|
$
|
76.9
|
|
Accounts receivable,
net
|
428.4
|
|
|
469.3
|
|
Inventories
|
340.6
|
|
|
254.2
|
|
Other current
assets
|
44.2
|
|
|
29.2
|
|
Total current
assets
|
880.2
|
|
|
829.6
|
|
Total property, plant
and equipment
|
618.7
|
|
|
645.2
|
|
Less: accumulated
depreciation
|
(355.0)
|
|
|
(366.7)
|
|
Property, plant and
equipment, net
|
263.7
|
|
|
278.5
|
|
Deferred income
taxes
|
115.1
|
|
|
137.9
|
|
Goodwill
|
708.9
|
|
|
670.3
|
|
Identifiable
intangibles, net
|
787.0
|
|
|
839.9
|
|
Other non-current
assets
|
31.5
|
|
|
42.9
|
|
Total
assets
|
$
|
2,786.4
|
|
|
$
|
2,799.1
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
39.5
|
|
|
$
|
43.2
|
|
Accounts
payable
|
274.6
|
|
|
178.2
|
|
Accrued
compensation
|
41.6
|
|
|
60.9
|
|
Accrued customer
program liabilities
|
114.5
|
|
|
141.1
|
|
Accrued
interest
|
1.2
|
|
|
1.2
|
|
Other current
liabilities
|
127.8
|
|
|
113.8
|
|
Total current
liabilities
|
599.2
|
|
|
538.4
|
|
Long-term debt,
net
|
843.0
|
|
|
889.2
|
|
Deferred income
taxes
|
176.2
|
|
|
177.1
|
|
Pension and
post-retirement benefit obligations
|
257.2
|
|
|
275.5
|
|
Other non-current
liabilities
|
121.1
|
|
|
144.8
|
|
Total
liabilities
|
1,996.7
|
|
|
2,025.0
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
1.1
|
|
|
1.1
|
|
Treasury
stock
|
(33.9)
|
|
|
(26.4)
|
|
Paid-in
capital
|
1,941.0
|
|
|
1,999.7
|
|
Accumulated other
comprehensive loss
|
(461.7)
|
|
|
(461.1)
|
|
Accumulated
deficit
|
(656.8)
|
|
|
(739.2)
|
|
Total stockholders'
equity
|
789.7
|
|
|
774.1
|
|
Total liabilities and
stockholders' equity
|
$
|
2,786.4
|
|
|
$
|
2,799.1
|
|
ACCO Brands
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
Twelve Months
Ended December 31,
|
(in
millions)
|
2018
|
|
2017
|
Operating
activities
|
|
|
|
Net income
|
$
|
106.7
|
|
|
$
|
131.7
|
|
Amortization of
inventory step-up
|
0.1
|
|
|
0.9
|
|
Loss (gain) on
disposal of assets
|
0.2
|
|
|
(1.3)
|
|
Deferred income tax
expense (benefit)
|
22.7
|
|
|
(45.2)
|
|
Insurance claims, net
of proceeds
|
—
|
|
|
(0.4)
|
|
Depreciation
|
34.0
|
|
|
35.6
|
|
Amortization of debt
issuance costs
|
2.1
|
|
|
2.9
|
|
Amortization of
intangibles
|
36.7
|
|
|
35.6
|
|
Stock-based
compensation
|
8.8
|
|
|
17.0
|
|
Loss on debt
extinguishment
|
0.3
|
|
|
—
|
|
Changes in balance
sheet items:
|
|
|
|
Accounts
receivable
|
46.0
|
|
|
10.2
|
|
Inventories
|
(92.9)
|
|
|
2.5
|
|
Other
assets
|
5.5
|
|
|
4.6
|
|
Accounts
payable
|
101.0
|
|
|
(18.7)
|
|
Accrued expenses and
other liabilities
|
(79.1)
|
|
|
(8.3)
|
|
Accrued income
taxes
|
2.7
|
|
|
37.8
|
|
Net cash provided by
operating activities
|
194.8
|
|
|
204.9
|
|
Investing
activities
|
|
|
|
Additions to
property, plant and equipment
|
(34.1)
|
|
|
(31.0)
|
|
Proceeds from the
disposition of assets
|
0.2
|
|
|
4.2
|
|
Cost of acquisitions,
net of cash acquired
|
(38.0)
|
|
|
(292.3)
|
|
Net cash used by
investing activities
|
(71.9)
|
|
|
(319.1)
|
|
Financing
activities
|
|
|
|
Proceeds from
long-term borrowings
|
225.3
|
|
|
484.1
|
|
Repayments of
long-term debt
|
(249.5)
|
|
|
(296.5)
|
|
Payments for debt
issuance costs
|
(0.6)
|
|
|
(3.6)
|
|
Dividends
paid
|
(25.1)
|
|
|
—
|
|
Repurchases of common
stock
|
(75.0)
|
|
|
(36.6)
|
|
Payments related to
tax withholding for stock-based compensation
|
(7.5)
|
|
|
(9.4)
|
|
Proceeds from the
exercise of stock options
|
6.8
|
|
|
4.2
|
|
Net cash (used)
provided by financing activities
|
(125.6)
|
|
|
142.2
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(7.2)
|
|
|
6.0
|
|
Net (decreased)
increase in cash and cash equivalents
|
(9.9)
|
|
|
34.0
|
|
Cash and cash
equivalents
|
|
|
|
Beginning of the
period
|
76.9
|
|
|
42.9
|
|
End of the
period
|
$
|
67.0
|
|
|
$
|
76.9
|
|
ACCO Brands
Corporation and Subsidiaries
|
Supplemental
Business Segment Information and Reconciliation
(Unaudited)
|
(In
millions)
|
|
|
|
2018
|
|
2017
|
|
Changes
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
Adjusted
|
|
Operating
|
|
|
|
Reported
|
|
|
|
Adjusted
|
|
Operating
|
|
|
|
Adjusted
|
Adjusted
|
|
|
|
|
Operating
|
|
|
|
Operating
|
|
Income
|
|
|
|
Operating
|
|
|
|
Operating
|
|
Income
|
|
|
|
Operating
|
Operating
|
|
|
Reported
|
|
Income
|
|
Adjusted
|
|
Income
|
|
(Loss)
|
|
Reported
|
|
Income
|
|
Adjusted
|
|
Income
|
|
(Loss)
|
|
Net Sales
|
Net Sales
|
Income
|
Income
|
Margin
|
|
Net
Sales
|
|
(Loss)
|
|
Items
|
|
(Loss) (B)
|
|
Margin (B)
|
|
Net
Sales
|
|
(Loss)
(A)
|
|
Items
|
|
(Loss) (B)
|
|
Margin (B)
|
|
$
|
%
|
(Loss) $
|
(Loss) %
|
Points
|
Q1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
$
|
165.6
|
|
|
$
|
2.9
|
|
|
$
|
1.8
|
|
|
$
|
4.7
|
|
|
2.8%
|
|
$
|
174.9
|
|
|
$
|
5.8
|
|
|
$
|
1.4
|
|
|
$
|
7.2
|
|
|
4.1%
|
|
$
|
(9.3)
|
|
(5.3)%
|
$
|
(2.5)
|
|
(34.7)%
|
(130)
|
ACCO Brands
EMEA
|
154.5
|
|
|
14.1
|
|
|
3.3
|
|
|
17.4
|
|
|
11.3%
|
|
96.5
|
|
|
3.6
|
|
|
1.9
|
|
|
5.5
|
|
|
5.7%
|
|
58.0
|
|
60.1%
|
11.9
|
|
216.4%
|
560
|
ACCO Brands
International
|
85.7
|
|
|
5.8
|
|
|
0.8
|
|
|
6.6
|
|
|
7.7%
|
|
88.4
|
|
|
10.1
|
|
|
0.6
|
|
|
10.7
|
|
|
12.1%
|
|
(2.7)
|
|
(3.1)%
|
(4.1)
|
|
(38.3)%
|
(440)
|
Corporate
|
—
|
|
|
(11.1)
|
|
|
0.4
|
|
|
(10.7)
|
|
|
|
|
—
|
|
|
(12.3)
|
|
|
2.9
|
|
|
(9.4)
|
|
|
|
|
—
|
|
|
(1.3)
|
|
|
|
Total
|
$
|
405.8
|
|
|
$
|
11.7
|
|
|
$
|
6.3
|
|
|
$
|
18.0
|
|
|
4.4%
|
|
$
|
359.8
|
|
|
$
|
7.2
|
|
|
$
|
6.8
|
|
|
$
|
14.0
|
|
|
3.9%
|
|
$
|
46.0
|
|
12.8%
|
$
|
4.0
|
|
28.6%
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
$
|
282.8
|
|
|
$
|
51.5
|
|
|
$
|
1.6
|
|
|
$
|
53.1
|
|
|
18.8%
|
|
$
|
280.6
|
|
|
$
|
51.7
|
|
|
$
|
2.8
|
|
|
$
|
54.5
|
|
|
19.4%
|
|
$
|
2.2
|
|
0.8%
|
$
|
(1.4)
|
|
(2.6)%
|
(60)
|
ACCO Brands
EMEA
|
140.5
|
|
|
8.4
|
|
|
1.8
|
|
|
10.2
|
|
|
7.3%
|
|
128.5
|
|
|
(0.6)
|
|
|
8.5
|
|
|
7.9
|
|
|
6.1%
|
|
12.0
|
|
9.3%
|
2.3
|
|
29.1%
|
120
|
ACCO Brands
International
|
75.5
|
|
|
3.3
|
|
|
0.3
|
|
|
3.6
|
|
|
4.8%
|
|
80.9
|
|
|
4.0
|
|
|
3.9
|
|
|
7.9
|
|
|
9.8%
|
|
(5.4)
|
|
(6.7)%
|
(4.3)
|
|
(54.4)%
|
(500)
|
Corporate
|
—
|
|
|
(11.4)
|
|
|
0.3
|
|
|
(11.1)
|
|
|
|
|
—
|
|
|
(11.8)
|
|
|
0.8
|
|
|
(11.0)
|
|
|
|
|
—
|
|
|
(0.1)
|
|
|
|
Total
|
$
|
498.8
|
|
|
$
|
51.8
|
|
|
$
|
4.0
|
|
|
$
|
55.8
|
|
|
11.2%
|
|
$
|
490.0
|
|
|
$
|
43.3
|
|
|
$
|
16.0
|
|
|
$
|
59.3
|
|
|
12.1%
|
|
$
|
8.8
|
|
1.8%
|
$
|
(3.5)
|
|
(5.9)%
|
(90)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
$
|
263.4
|
|
|
$
|
33.7
|
|
|
$
|
(0.3)
|
|
|
$
|
33.4
|
|
|
12.7%
|
|
$
|
290.3
|
|
|
$
|
49.6
|
|
|
$
|
0.7
|
|
|
$
|
50.3
|
|
|
17.3%
|
|
$
|
(26.9)
|
|
(9.3)%
|
$
|
(16.9)
|
|
(33.6)%
|
(460)
|
ACCO Brands
EMEA
|
143.1
|
|
|
14.6
|
|
|
2.2
|
|
|
16.8
|
|
|
11.7%
|
|
140.3
|
|
|
7.8
|
|
|
3.3
|
|
|
11.1
|
|
|
7.9%
|
|
2.8
|
|
2.0%
|
5.7
|
|
51.4%
|
380
|
ACCO Brands
International
|
100.8
|
|
|
16.1
|
|
|
0.1
|
|
|
16.2
|
|
|
16.1%
|
|
101.6
|
|
|
11.2
|
|
|
1.6
|
|
|
12.8
|
|
|
12.6%
|
|
(0.8)
|
|
(0.8)%
|
3.4
|
|
26.6%
|
350
|
Corporate
|
—
|
|
|
(6.9)
|
|
|
—
|
|
|
(6.9)
|
|
|
|
|
—
|
|
|
(11.9)
|
|
|
1.7
|
|
|
(10.2)
|
|
|
|
|
—
|
|
|
3.3
|
|
|
|
Total
|
$
|
507.3
|
|
|
$
|
57.5
|
|
|
$
|
2.0
|
|
|
$
|
59.5
|
|
|
11.7%
|
|
$
|
532.2
|
|
|
$
|
56.7
|
|
|
$
|
7.3
|
|
|
$
|
64.0
|
|
|
12.0%
|
|
$
|
(24.9)
|
|
(4.7)%
|
$
|
(4.5)
|
|
(7.0)%
|
(30)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
$
|
228.9
|
|
|
$
|
28.5
|
|
|
$
|
3.1
|
|
|
$
|
31.6
|
|
|
13.8%
|
|
$
|
253.2
|
|
|
$
|
45.3
|
|
|
$
|
0.9
|
|
|
$
|
46.2
|
|
|
18.2%
|
|
$
|
(24.3)
|
|
(9.6)%
|
$
|
(14.6)
|
|
(31.6)%
|
(440)
|
ACCO Brands
EMEA
|
167.1
|
|
|
22.3
|
|
|
0.7
|
|
|
23.0
|
|
|
13.8%
|
|
177.5
|
|
|
21.2
|
|
|
3.8
|
|
|
25.0
|
|
|
14.1%
|
|
(10.4)
|
|
(5.9)%
|
(2.0)
|
|
(8.0)%
|
(30)
|
ACCO Brands
International
|
133.3
|
|
|
24.0
|
|
|
0.3
|
|
|
24.3
|
|
|
18.2%
|
|
136.1
|
|
|
25.6
|
|
|
0.1
|
|
|
25.7
|
|
|
18.9%
|
|
(2.8)
|
|
(2.1)%
|
(1.4)
|
|
(5.4)%
|
(70)
|
Corporate
|
—
|
|
|
(8.8)
|
|
|
—
|
|
|
(8.8)
|
|
|
|
|
—
|
|
|
(14.8)
|
|
|
2.6
|
|
|
(12.2)
|
|
|
|
|
—
|
|
|
3.4
|
|
|
|
Total
|
$
|
529.3
|
|
|
$
|
66.0
|
|
|
$
|
4.1
|
|
|
$
|
70.1
|
|
|
13.2%
|
|
$
|
566.8
|
|
|
$
|
77.3
|
|
|
$
|
7.4
|
|
|
$
|
84.7
|
|
|
14.9%
|
|
$
|
(37.5)
|
|
(6.6)%
|
$
|
(14.6)
|
|
(17.2)%
|
(170)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
$
|
940.7
|
|
|
$
|
116.6
|
|
|
$
|
6.2
|
|
|
$
|
122.8
|
|
|
13.1%
|
|
$
|
999.0
|
|
|
$
|
152.4
|
|
|
$
|
5.8
|
|
|
$
|
158.2
|
|
|
15.8%
|
|
$
|
(58.3)
|
|
(5.8)%
|
$
|
(35.4)
|
|
(22.4)%
|
(270)
|
ACCO Brands
EMEA
|
605.2
|
|
|
59.4
|
|
|
8.0
|
|
|
67.4
|
|
|
11.1%
|
|
542.8
|
|
|
32.0
|
|
|
17.5
|
|
|
49.5
|
|
|
9.1%
|
|
62.4
|
|
11.5%
|
17.9
|
|
36.2%
|
200
|
ACCO Brands
International
|
395.3
|
|
|
49.2
|
|
|
1.5
|
|
|
50.7
|
|
|
12.8%
|
|
407.0
|
|
|
50.9
|
|
|
6.2
|
|
|
57.1
|
|
|
14.0%
|
|
(11.7)
|
|
(2.9)%
|
(6.4)
|
|
(11.2)%
|
(120)
|
Corporate
|
—
|
|
|
(38.2)
|
|
|
0.7
|
|
|
(37.5)
|
|
|
|
|
—
|
|
|
(50.8)
|
|
|
8.0
|
|
|
(42.8)
|
|
|
|
|
—
|
|
|
5.3
|
|
|
|
Total
|
$
|
1,941.2
|
|
|
$
|
187.0
|
|
|
$
|
16.4
|
|
|
$
|
203.4
|
|
|
10.5%
|
|
$
|
1,948.8
|
|
|
$
|
184.5
|
|
|
$
|
37.5
|
|
|
$
|
222.0
|
|
|
11.4%
|
|
$
|
(7.6)
|
|
(0.4)%
|
$
|
(18.6)
|
|
(8.4)%
|
(90)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) 2017
historical data has been restated for ASU No. 2017-07, Compensation
- Retirement Benefits (Topic 715): Improving the Presentation of
Net Periodic Pension Cost and Net Periodic Postretirement Benefit
Cost, which is effective for the Company in the first quarter of
2018. This new standard requires presentation of all components of
net periodic pension and postretirement benefit costs, other than
service costs, in an income statement line item outside of a
subtotal of income from operations. This has resulted in the
reclass of $8.5 million of income out of operating income into the
account "non-operating pension income/costs" for the annual period
ended December 31, 2017.
|
(B) See
"Notes for Reconciliation of GAAP to Adjusted Non-GAAP Information
(Unaudited)" for a description of adjusted items on page
8.
|
ACCO Brands
Corporation and Subsidiaries
|
Supplemental Net
Sales Change Analysis (Unaudited)
|
|
|
|
% Change - Net
Sales
|
|
$ Change - Net
Sales (in millions)
|
|
|
GAAP
|
Non-GAAP
|
|
GAAP
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
|
|
|
|
|
|
Comparable
|
|
|
Net
Sales
|
|
Currency
|
|
|
|
Net
Sales
|
|
Net
Sales
|
|
Currency
|
|
|
|
Net
Sales
|
|
|
Change
|
|
Translation
|
|
Acquisition
|
|
Change
(A)
|
|
Change
|
|
Translation
|
|
Acquisition
|
|
Change
(A)
|
Q1
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
|
(5.3)%
|
|
0.5%
|
|
0.5%
|
|
(6.3)%
|
|
$(9.3)
|
|
$0.9
|
|
$0.9
|
|
$(11.1)
|
ACCO Brands
EMEA
|
|
60.1%
|
|
14.2%
|
|
44.2%
|
|
1.7%
|
|
58.0
|
|
13.7
|
|
42.7
|
|
1.6
|
ACCO Brands
International
|
|
(3.1)%
|
|
2.7%
|
|
0.7%
|
|
(6.5)%
|
|
(2.7)
|
|
2.4
|
|
0.6
|
|
(5.7)
|
Total
|
|
12.8%
|
|
4.7%
|
|
12.3%
|
|
(4.2)%
|
|
$46.0
|
|
$17.0
|
|
$44.2
|
|
$(15.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
|
0.8%
|
|
0.5%
|
|
—%
|
|
0.3%
|
|
$2.2
|
|
$1.3
|
|
$—
|
|
$0.9
|
ACCO Brands
EMEA
|
|
9.3%
|
|
6.5%
|
|
—%
|
|
2.8%
|
|
12.0
|
|
8.3
|
|
—
|
|
3.7
|
ACCO Brands
International
|
|
(6.7)%
|
|
(1.9)%
|
|
—%
|
|
(4.8)%
|
|
(5.4)
|
|
(1.5)
|
|
—
|
|
(3.9)
|
Total
|
|
1.8%
|
|
1.7%
|
|
—%
|
|
0.1%
|
|
$8.8
|
|
$8.1
|
|
$—
|
|
$0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
|
(9.3)%
|
|
(0.5)%
|
|
—%
|
|
(8.8)%
|
|
$(26.9)
|
|
$(1.4)
|
|
$—
|
|
$(25.5)
|
ACCO Brands
EMEA
|
|
2.0%
|
|
(2.7)%
|
|
—%
|
|
4.7%
|
|
2.8
|
|
(3.8)
|
|
—
|
|
6.6
|
ACCO Brands
International
|
|
(0.8)%
|
|
(10.1)%
|
|
9.8%
|
|
(0.5)%
|
|
(0.8)
|
|
(10.3)
|
|
10.0
|
|
(0.5)
|
Total
|
|
(4.7)%
|
|
(2.9)%
|
|
1.9%
|
|
(3.7)%
|
|
$(24.9)
|
|
$(15.5)
|
|
$10.0
|
|
$(19.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
|
(9.6)%
|
|
(0.4)%
|
|
—%
|
|
(9.2)%
|
|
$(24.3)
|
|
$(1.1)
|
|
$—
|
|
$(23.2)
|
ACCO Brands
EMEA
|
|
(5.9)%
|
|
(4.2)%
|
|
—%
|
|
(1.7)%
|
|
(10.4)
|
|
(7.4)
|
|
—
|
|
(3.0)
|
ACCO Brands
International
|
|
(2.1)%
|
|
(9.3)%
|
|
7.1%
|
|
0.1%
|
|
(2.8)
|
|
(12.6)
|
|
9.7
|
|
0.1
|
Total
|
|
(6.6)%
|
|
(3.7)%
|
|
1.7%
|
|
(4.6)%
|
|
$(37.5)
|
|
$(21.1)
|
|
$9.7
|
|
$(26.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
YTD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands North
America
|
|
(5.8)%
|
|
—%
|
|
0.1%
|
|
(5.9)%
|
|
$(58.3)
|
|
$(0.3)
|
|
$0.9
|
|
$(58.9)
|
ACCO Brands
EMEA
|
|
11.5%
|
|
2.0%
|
|
7.9%
|
|
1.6%
|
|
62.4
|
|
10.8
|
|
42.7
|
|
8.9
|
ACCO Brands
International
|
|
(2.9)%
|
|
(5.4)%
|
|
5.0%
|
|
(2.5)%
|
|
(11.7)
|
|
(22.0)
|
|
20.3
|
|
(10.0)
|
Total
|
|
(0.4)%
|
|
(0.6)%
|
|
3.3%
|
|
(3.1)%
|
|
$(7.6)
|
|
$(11.5)
|
|
$63.9
|
|
$(60.0)
|
|
(A)
Comparable net sales represents net sales excluding acquisitions
and with current-period foreign operation sales translated at
prior-year currency rates.
|
View original content to download
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SOURCE ACCO Brands Corporation