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H.B. Fuller Company (FUL) filed Annual Report for the period ended 2011-12-03.
H.b. Fuller Co. has a market cap of $1.35 billion; its shares were traded at around $28.4 with a P/E ratio of 14.3 and P/S ratio of 0.8. The dividend yield of H.b. Fuller Co. stocks is 1.1%. H.b. Fuller Co. had an annual average earning growth of 8.8% over the past 10 years.
This is the annual revenues and earnings per share of FUL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FUL.
Highlight of Business Operations:
SG&A expenses increased $28.7 million or 10.9 percent in 2010 compared to 2009. The increased expense compared to 2009 was primarily due to investments made in the sales and technical organizations to support future growth and the costs added from the Nordic and Revertex Finewaters acquisitions. In 2010, we recorded $2.5 million for the severance agreement (net of the expense reversal of forfeited equity compensation awards) for our former CEO. As a percent of net revenue, SG&A expense was 21.6 percent in 2010 and 21.4 percent in 2009.Income tax expense in 2011 of $35.0 million included $1.6 million of discrete tax expense in both the U.S. and foreign jurisdictions. Excluding discrete items, the overall effective tax rate decreased by 2.4 percentage points in 2011 as compared to the 2010 rate without discrete tax benefits and charges associated with the polysulfide-based insulating glass product line exit. The decrease in the tax rate is principally due to a change in the geographic mix of pre-tax earnings and the impact of foreign tax credits in the U.S. as compared to 2010.
Net revenue increased 17.0 percent in 2011 compared to 2010. Both higher average selling prices and sales volume contributed to the 11.7 percent increase in organic sales growth. The extra week added approximately 2 percent to the 2011 net revenue as compared to 2010. The stronger Euro in 2011 as compared to 2010 had a favorable 5.3 percent impact on net revenue. Gross profit margin increased slightly in 2011 compared to 2010 as higher average selling prices offset increased raw material costs and lower margin polymer and windows product lines were eliminated. SG&A expenses increased in 2011 as compared to 2010 but at a lower percentage than the increase in net revenue. In 2010 segment operating income included a $2.6 million charge related to the exit of the polysulfide-based insulating glass product line and a $1.8 million charge related to a product liability claim. Net revenue growth and the non-recurring charges included in 2010 were the primary drivers of the 88.3 percent increased segment operating income in 2011 compared to 2010. The increase in gross profit margin and the lower rate of growth in SG&A expenses also contributed to the increase. Segment operating income as a percent of net revenue was 5.5 percent in 2011 compared to 3.4 percent in 2010.
Net revenue increased 10.8 percent in 2010 compared to 2009. Organic sales growth was 13.8 percent in 2010 compared to 2009 resulting from market share gains and improved end market demand. The stronger U.S. dollar in 2010 as compared to 2009 had a negative 3.9 percent impact on net revenue. Raw material costs increased rapidly during 2010 and sales price increases were not enough to offset the increased cost of raw materials. Cost of sales also included a $1.8 million charge related to the exiting of the polysulfide-based insulating glass product line recorded in 2010. The increased cost of raw materials and the charge for exiting our polysulfide-based insulating glass product line resulted in a decrease in the gross profit margin compared to 2009. SG&A expenses increased in 2010 as compared to 2009 largely due to higher costs associated with adding resources to our sales and technical organizations, a $1.8 million charge related to a product liability claim and a $0.8 million charge related to exiting of the polysulfide-based insulating glass product line. The combination of higher raw material costs, the polysulfide-based insulating glass product line exit charges and the increase in SG&A expense led to a 39.1 percent decrease in segment operating income in 2010 compared to 2009. Segment operating income as a percent of net revenue was 3.4 percent in 2010 compared to 6.3 percent in 2009.
Trade Receivables, net - Changes in trade receivables resulted in a $21.9 million use of cash in 2011 as compared to a $17.5 million use of cash in 2010 and a $15.7 million source of cash in 2009. The higher sales activity was the primary reason for the increase in trade receivables in 2011. The DSO was 54 days at December 3, 2011, 55 days at November 27, 2010 and 53 days at November 28, 2009.
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