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$SWK 1Q15 10-Q: At April 4, 2015 (vs. at Jan. 3, 2015): Short-term borrowings were $600.4MM vs. $1.6MM. Long-term debt was $3,855.7MM vs. $3,839.8MM. Majority of the $97.MM of reserves remaining as of April 4, 2015 is expected to be utilized within the next 12 months. Cash inflows related to the deferred purchase price receivable was $89MM in 1Q15.
$SWK said it anticipates to record GAAP earnings per share in the range of $7.80 to $8.00 in fiscal 2018. Non-GAAP earnings are forecasted between $8.30 per share $8.50 per share. The company is looking for free cash flow conversion of about 100% for the year.
$SWK, a manufacturer of tools and related accessories, reported strong earnings in 4Q17 as sales increased on the back of contributions from acquisitions and favorable currency. Earnings grew 8% YoY to $1.84 per share and sales advanced 17% to $3.4Bil. Sales of the Tools & Storage division climbed 26%, and those of the Industrial segment rose 4%.
$SWK and Techstars formed a 3-year partnership and the launch of the STANLEY Techstars Additive Manufacturing Accelerator in Hartford. This mentorship-driven, entrepreneurial accelerator program will select 10 startups in the additive manufacturing space to participate in its first year. The program will run in 3Q18.
$SWK announced the grand opening of its STANLEY Security North America headquarters in Fishers, Indiana. The $16MM, 80,000-square-foot facility will house 350 STANLEY Security employees who will be brought together in one building from various locations throughout the Greater Indianapolis area.
$SWK appointed Janet Link as SVP, General Counsel and Secretary. Link joins the company from $JCP where she served as General Counsel. She succeeds Bruce Beattwho is retiring from the company. Link's appointment is effective immediately and Beatt will remain with $SWK for a transition period extending through April 2018.
$SWK expects 3Q17 EPS to approximate 25-26% of the FY17 EPS guidance of $8.05-8.25. On a segment basis, organic growth in Tools & Storage is expected to be mid single digit, while in Security, $SWK is maintaining the organic growth of up low single digit in FY17. In Industrial, the company expects organic growth to be relatively flat for the year.
$SWK said the company is on track to meet its expectations from a financial and integration execution perspective. Regionally, Europe posted 8% organic growth, with nearly all markets contributing double digit performance in the UK, Benelux, Iberia and Eastern Europe.
For FY17, $SWK raised its diluted EPS guidance range to $8.05-8.25 from $7.95-8.15. Adjusted EPS guidance was also increased to $7.18-7.38 from the earlier guidance of $7.08-7.28, due to higher organic growth expectations. The company is also reiterating its free cash flow conversion estimate of approx. 100%.
Manufacturer of branded tools and engineered solutions provider $SWK reported marginally higher earnings for 2Q17 impacted by divestitures, price and currency. Net earnings increased 2% to $277.2MM, while diluted EPS declined 1% to $1.82 per share from $271.5MM and $1.84 per share respectively YoY. Net sales jumped 10% to $3.2Bil.
$SWK continues to expects 2017 EPS of $7.95-8.15 and adjusted EPS of $7.08-7.28. The company also reiterated its free cash flow conversion estimate of about 100%. The company also reaffirmed that its 2018 financial vision from its prior Investor Day is achievable.
$SWK reaffirmed its 2017 guidance and provided a strategic update, including an update on M&A and the company's recent acquisitions of the Craftsman brand and the Lenox and Irwin businesses. $SWK has a strong vision for where to take this company, with a goal of profitably doubling the size of the company to $22Bil in revenue by 2022.
$SWK plans to sell 6.5MM equity units, each with a stated amount of $100. The company expects the units will initially consist of an aggregate of 650,000 shares of 0% Series C Cumulative Perpetual Convertible Preferred Stock, with aggregate liquidation preference of $650MM, and contracts to buy, for aggregate of $650MM, shares of its common stock.
$SWK stated that on the M&A landscape, the company spent almost $3Bil and is integrating fast the two major acquisitions in Tools. The company added that 2017 is going to be a year of digestion for the most part, both from a financial and operational bandwidth point of view.