Brunswick Corp. (BC, Financial) filed Quarterly Report for the period ended 2011-10-01.
Brunswick Corp. has a market cap of $1.54 billion; its shares were traded at around $17.3 with a P/E ratio of 36.81 and P/S ratio of 0.45. The dividend yield of Brunswick Corp. stocks is 0.29%.
The Company recognized an income tax provision of $5.3 million and $20.8 million for the three months and nine months ended October 2, 2010, respectively, which primarily related to foreign and domestic jurisdictions where the Company was not in a cumulative loss position. In addition, the three-month and nine-month tax provisions included a charge of $0.5 million and a benefit of $0.3 million, respectively, related to the reassessment of tax reserves. For the three months and nine months ended October 2, 2010, the Company determined that the use of a discrete, or actual method of computing the Company s income tax provision was more appropriate than the annual effective tax rate method historically used by the Company, which would not be reliable due to its sensitivity to minimal changes in forecasted annual pretax earnings. Under the discrete method, the Company determined income tax expense based upon actual results as if the interim period were an annual period.
In the first nine months of 2011, net cash provided by operating activities totaled $81.2 million. The most significant source of cash provided by operating activities resulted from earnings adjusted for non-cash expenses. Partially offsetting the cash provided by operating activities was a seasonal increase in working capital. Working capital is defined as Accounts and notes receivable, Inventories and Prepaid expenses and other, net of Accounts payable and Accrued expenses as presented in the Condensed Consolidated Balance Sheets. Accounts and notes receivable increased $63.2 million during the first nine months of 2011, due primarily to seasonally higher sales in the Marine Engine, Boat and Bowling & Billiards segments. The decrease in Accrued expenses of $58.1 million during the first nine months of 2011 was driven primarily by the payment of dealer allowances and a lower warranty accrual. Inventory increased by $22.4 million due primarily to increased demand across all segments. Partially offsetting these items was an increase in Accounts payable of $16.3 million, which was a result of increased production and related spending activity in the Company s Boat and Fitness segments.
Net cash used for investing activities during the nine months ended October 1, 2011 totaled $102.7 million, which included capital expenditures of $57.9 million. The Company s capital spending is focused on high priority, profit-maintaining investments and investments required to reduce operating costs, or for new product introductions. The Company also completed net purchases of marketable securities of $59.6 million. See Note 10 – Investments in Notes to Condensed Consolidated Financial Statements for further discussion. Investing activities during the nine months ended October 1, 2011 also included a transfer of $20.0 million to restricted cash to collateralize a portion of the Company s obligations related to its workers compensation obligations. See Note 7 – Commitments and Contingencies in Notes to Condensed Consolidated Financial Statements for further discussion. Partially offsetting the use of cash for investing activities was $22.5 million in proceeds from the sale of property, plant and equipment in the normal course of business, including a Marine Engine distribution facility in Australia and idle Marine Engine and Boat properties.
Net cash used for investing activities during the nine months ended October 2, 2010 totaled $25.5 million, which included capital expenditures of $31.1 million. The Company continued to limit its capital spending by focusing on high-priority, profit-maintaining investments and investments required for new product introductions. The Company also invested $8.6 million during the nine months ended October 2, 2010, the majority of which related to existing marine engine joint ventures. Partially offsetting these expenditures were $5.9 million of proceeds received during the year from the sale of property, plant and equipment in the normal course of business. The Company also received $8.3 million of cash, primarily related to the sale of a marina operation in China.
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Brunswick Corp. has a market cap of $1.54 billion; its shares were traded at around $17.3 with a P/E ratio of 36.81 and P/S ratio of 0.45. The dividend yield of Brunswick Corp. stocks is 0.29%.
Highlight of Business Operations:
Operating earnings in the third quarter of 2011 were $35.6 million, with an operating margin of 4.1 percent. These results included $13.2 million of restructuring and exit charges recorded during the third quarter of 2011. In the three months ended October 2, 2010, the Company recorded quarterly operating earnings of $25.2 million, with an operating margin of 3.1 percent, which included restructuring, exit and impairment charges of $12.2 million. Operating earnings during the nine months ended October 1, 2011 were $210.5 million, with an operating margin of 7.1 percent. These results included $18.2 million of restructuring, exit and impairment charges recorded during the first nine months of 2011. In the first nine months of 2010, the Company recorded operating earnings of $91.0 million, with an operating margin of 3.4 percent, and included $43.8 million of restructuring, exit and impairment charges. The improvement in operating earnings during the quarter and year-to-date periods ended October 1, 2011 when compared with the corresponding periods ended October 2, 2010 was mainly the result of higher overall sales discussed above and lower costs from successful cost-reduction efforts. Additionally, operating earnings in the first nine months of 2011 benefited from lower restructuring, exit and impairment charges, reduced pension expense, improved fixed-cost absorption and a gain recognized on the sale of a distribution facility in Australia. Partially offsetting these factors were higher material costs and increased variable compensation expense recorded during the quarter and the first nine months of 2011.The Company recognized an income tax provision of $5.3 million and $20.8 million for the three months and nine months ended October 2, 2010, respectively, which primarily related to foreign and domestic jurisdictions where the Company was not in a cumulative loss position. In addition, the three-month and nine-month tax provisions included a charge of $0.5 million and a benefit of $0.3 million, respectively, related to the reassessment of tax reserves. For the three months and nine months ended October 2, 2010, the Company determined that the use of a discrete, or actual method of computing the Company s income tax provision was more appropriate than the annual effective tax rate method historically used by the Company, which would not be reliable due to its sensitivity to minimal changes in forecasted annual pretax earnings. Under the discrete method, the Company determined income tax expense based upon actual results as if the interim period were an annual period.
In the first nine months of 2011, net cash provided by operating activities totaled $81.2 million. The most significant source of cash provided by operating activities resulted from earnings adjusted for non-cash expenses. Partially offsetting the cash provided by operating activities was a seasonal increase in working capital. Working capital is defined as Accounts and notes receivable, Inventories and Prepaid expenses and other, net of Accounts payable and Accrued expenses as presented in the Condensed Consolidated Balance Sheets. Accounts and notes receivable increased $63.2 million during the first nine months of 2011, due primarily to seasonally higher sales in the Marine Engine, Boat and Bowling & Billiards segments. The decrease in Accrued expenses of $58.1 million during the first nine months of 2011 was driven primarily by the payment of dealer allowances and a lower warranty accrual. Inventory increased by $22.4 million due primarily to increased demand across all segments. Partially offsetting these items was an increase in Accounts payable of $16.3 million, which was a result of increased production and related spending activity in the Company s Boat and Fitness segments.
Net cash used for investing activities during the nine months ended October 1, 2011 totaled $102.7 million, which included capital expenditures of $57.9 million. The Company s capital spending is focused on high priority, profit-maintaining investments and investments required to reduce operating costs, or for new product introductions. The Company also completed net purchases of marketable securities of $59.6 million. See Note 10 – Investments in Notes to Condensed Consolidated Financial Statements for further discussion. Investing activities during the nine months ended October 1, 2011 also included a transfer of $20.0 million to restricted cash to collateralize a portion of the Company s obligations related to its workers compensation obligations. See Note 7 – Commitments and Contingencies in Notes to Condensed Consolidated Financial Statements for further discussion. Partially offsetting the use of cash for investing activities was $22.5 million in proceeds from the sale of property, plant and equipment in the normal course of business, including a Marine Engine distribution facility in Australia and idle Marine Engine and Boat properties.
Net cash used for investing activities during the nine months ended October 2, 2010 totaled $25.5 million, which included capital expenditures of $31.1 million. The Company continued to limit its capital spending by focusing on high-priority, profit-maintaining investments and investments required for new product introductions. The Company also invested $8.6 million during the nine months ended October 2, 2010, the majority of which related to existing marine engine joint ventures. Partially offsetting these expenditures were $5.9 million of proceeds received during the year from the sale of property, plant and equipment in the normal course of business. The Company also received $8.3 million of cash, primarily related to the sale of a marina operation in China.
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