0000038725-19-000008.txt : 20190219 0000038725-19-000008.hdr.sgml : 20190219 20190219080209 ACCESSION NUMBER: 0000038725-19-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20190219 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190219 DATE AS OF CHANGE: 20190219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN ELECTRIC CO INC CENTRAL INDEX KEY: 0000038725 STANDARD INDUSTRIAL CLASSIFICATION: MOTORS & GENERATORS [3621] IRS NUMBER: 350827455 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-00362 FILM NUMBER: 19613457 BUSINESS ADDRESS: STREET 1: 9255 COVERDALE ROAD CITY: FORT WAYNE STATE: IN ZIP: 46809 BUSINESS PHONE: 2608242900 MAIL ADDRESS: STREET 1: 9255 COVERDALE ROAD CITY: FORT WAYNE STATE: IN ZIP: 46809 8-K 1 a201902198-k.htm 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2019

FRANKLIN ELECTRIC CO., INC.
(Exact name of registrant as specified in its charter)
Indiana
 
0-362
 
35-0827455
(State of incorporation)
 
(Commission File Number)
 
(IRS employer identification no.)

9255 Coverdale Road
 
 
Fort Wayne, Indiana
 
46809
(Address of principal executive offices)
 
(Zip code)

(260) 824-2900
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[    ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[    ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[    ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[    ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 


Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02. Results of Operations and Financial Condition

On February 19, 2019, Franklin Electric Co., Inc. issued a press release announcing its earnings for the fourth quarter and full year of 2018. A copy of the release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. This Current Report on Form 8-K and the press release attached hereto are being furnished pursuant to Item 2.02 of Form 8-K.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits:






SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FRANKLIN ELECTRIC CO., INC.
(Registrant)

Date: February 19, 2019
 
By
/s/ John J. Haines
 
 
 
John J. Haines
 
 
 
Vice President, Chief Financial Officer
 
 
 
(Principal Financial and Accounting Officer)





EXHIBIT INDEX





 EX-99.1 2 a201902198-kexhibit991.htm EXHIBIT 99.1 Exhibit



Exhibit 99.1

For Immediate Release    

For Further Information
Refer to: John J. Haines
260-824-2900

FRANKLIN ELECTRIC REPORTS RECORD FOURTH
QUARTER AND FULL YEAR 2018 SALES AND EARNINGS

Fort Wayne, IN - February 19, 2019 - Franklin Electric Co., Inc. (NASDAQ: FELE) reported fourth quarter 2018 GAAP fully diluted earnings per share (EPS) of $0.51, versus a GAAP fully diluted EPS in the fourth quarter 2017 of $0.17. Fourth quarter 2018 sales were $316.7 million, compared to 2017 fourth quarter sales of $288.2 million. Fourth quarter 2018 organic sales increased about 9 percent when excluding the impact of foreign currency translation. Fourth quarter EPS before the impact of restructuring expenses was $0.52 compared to 2017 fourth quarter EPS before restructuring of $0.21 (see table below for a reconciliation of GAAP EPS to EPS before restructuring). The Company incurred a tax expense of $0.21 per share in the fourth quarter of 2017 related to the U.S. Tax Cuts and Jobs Act of 2017. Before restructuring and the tax expense, the Company’s fourth quarter EPS was $0.42.

Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:

“Our record fourth quarter results were driven by continued strong performance in the U.S. Water Systems and our global Fueling Systems businesses. Before restructuring charges, our operating income and earnings per share grew by 17 and 24 percent, respectively, compared to the fourth quarter of 2017. Water margin improved; but Fueling margin declined from last year’s record margin, due to mix and cost pressures. Cash generation in the quarter was strong and reductions in working capital drove 2018 free cash flow to equal net income for the year.

For the full year 2018, we set new records in all our key financial metrics with all-time highs in net sales, gross profit, operating income, earnings per share and cash flow from operations.  Despite continued headwinds from global economic and political uncertainties, we remain confident we can sustain this momentum into 2019.”

 
















Key Performance Indicators:

Earnings Before and After Restructuring
 
For the Fourth Quarter
 
For the Full Year
(in millions)
 
2018
2017
Change
 
2018
2017
Change
 
 
 
 
 
 
 
 
 
Net Income attributable to FE Co., Inc. Reported
 
$
24.2

$
8.1

199
 %
 
$
105.9

$
78.2

35
%
Allocated Earnings
 
$
(0.2
)
$
(0.1
)
 
 
$
(0.8
)
$
(0.6
)
 
Earnings for EPS Calculations
 
$
24.0

$
8.0

200
 %
 
$
105.1

$
77.6

35
%
 
 
 
 
 
 
 
 
 
Restructuring (before tax):
 
$
0.7

$
2.7

 
 
$
1.7

$
4.3

 
 
 
 
 
 
 
 
 
 
Restructuring, net of tax:
 
$
0.6

$
1.6

 
 
$
1.4

$
2.6

 
2017 Impact of U.S. Tax Cuts and Jobs Act
 
$
—

$
10.2

 
 
$
—

$
10.2

 
 
 
 
 
 
 
 
 
 
Earnings Before Restructuring
 
$
24.6

$
19.8

24
 %
 
$
106.5

$
90.4

18
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share
 
For the Fourth Quarter
 
For the Full Year
Before and After Restructuring
 
2018
2017
Change
 
2018
2017
Change
(in millions except Earnings Per Share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Fully Diluted Shares Outstanding
 
46.8

47.1

(1
)%
 
47.0

47.0

—
%
 
 
 
 
 
 
 
 
 
Fully Diluted Earnings Per Share (“EPS”) Reported
 
$
0.51

$
0.17

200
 %
 
$
2.23

$
1.65

35
%
 
 
 
 
 
 
 
 
 
Restructuring Per Share, net of tax
 
$
0.01

$
0.04

 
 
$
0.03

$
0.06

 
2017 Impact of the U.S. Tax Cuts and Jobs Act
 
$
—

$
0.21

 
 
$
—

$
0.21

 
 
 
 
 
 
 
 
 
 
Fully Diluted EPS Before Restructuring
 
$
0.52

$
0.42

24
 %
 
$
2.26

$
1.92

18
%






 
Net Sales For the Fourth Quarter
(in millions)
United States & Canada
Latin America
Europe, Middle East & Africa
Asia Pacific
Total Water
Fueling
Distribution
Other/Elims
Consolidated
 
 
 
 
 
 
 
 
 
 
Q4 2017
$
80.1

$
33.4

$
44.3

$
23.7

$
181.5

$
67.9

$
49.5

$
(10.7
)
$
288.2

Q4 2018
$
98.1

$
31.6

$
42.5

$
23.8

$
196.0

$
75.9

$
56.0

$
(11.2
)
$
316.7

Change
$
18.0

$
(1.8
)
$
(1.8
)
$
0.1

$
14.5

$
8.0

$
6.5

$
(0.5
)
$
28.5

% Change
22
 %
(5
)%
(4
)%
—
 %
8
 %
12
 %
13
%
 
10
%
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
$
(0.6
)
$
(2.9
)
$
(5.0
)
$
(1.0
)
$
(9.5
)
$
(1.3
)
$
—

 
 
% Change
(1
)%
(8
)%
(11
)%
(5
)%
(5
)%
(1
)%
—
%
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions
 
$
4.4

 
 
$
4.4

$
2.2

$
6.4

 
 
 
 
 
 
 
 
 
 
 
 
Volume/Price
$
18.6

$
(3.3
)
$
3.2

$
1.1

$
19.6

$
7.1

$
0.1

 
 
% Change
23
 %
(10
)%
7
 %
5
 %
11
 %
10
 %
—
%
 
 



 
Net Sales For the Full Year
(in millions)
United States & Canada
Latin America
Europe, Middle East & Africa
Asia Pacific
Total Water
Fueling
Distribution
Other/Elims
Consolidated
 
 
 
 
 
 
 
 
 
 
FY 2017
$
349.3

$
130.0

$
177.7

$
86.3

$
743.3

$
245.7

$
176.7

$
(40.8
)
$
1,124.9

FY 2018
$
410.3

$
120.9

$
184.3

$
81.0

$
796.5

$
288.2

$
269.6

$
(56.2
)
$
1,298.1

Change
$
61.0

$
(9.1
)
$
6.6

$
(5.3
)
$
53.2

$
42.5

$
92.9

$
(15.4
)
$
173.2

% Change
17
%
(7
)%
4
 %
(6
)%
7
 %
17
%
53
%
 
15
%
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
$
0.5

$
(9.3
)
$
(5.2
)
$
(1.4
)
$
(15.4
)
$
2.3

$
—

 
 
% Change
—
%
(7
)%
(3
)%
(1
)%
(2
)%
1
%
—
%
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions
—

$
8.3

—

—

$
8.3

$
3.5

$
87.4

 
 
 
 
 
 
 
 
 
 
 
 
Volume/Price
$
60.5

$
(8.1
)
$
11.8

$
(3.9
)
$
60.3

$
36.7

$
5.6

 
 
% Change
17
%
(6
)%
7
 %
(5
)%
8
 %
15
%
3
%
 
 







Operating Income and Margins
 
 
 
 
 
(in millions)
For the Fourth Quarter 2018
 
Water
Fueling
Distribution
Other/Elims
Consolidated
Operating Income/(Loss)
$
27.0

$
17.0

$
(2.9
)
$
(12.4
)
$
28.7

% Operating Income To Net Sales
13.8
%
22.4
%
(5.2
)%
 
9.1
%
 
 
 
 
 
 
Restructuring
$
0.1

$
0.1

$
0.5

$
—

$
0.7

Operating Income/(Loss) Before Restructuring
$
27.1

$
17.1

$
(2.4
)
$
(12.4
)
$
29.4

% Operating Income to Net Sales Before Restructuring
13.8
%
22.5
%
(4.3
)%
 
9.3
%
 
 
 
 
 
 
 
For the Fourth Quarter 2017
 
Water
Fueling
Distribution
Other/Elims
Consolidated
Operating Income/(Loss)
$
19.5

$
17.0

$
(2.0
)
$
(12.1
)
$
22.4

% Operating Income To Net Sales
10.7
%
25.0
%
(4.0
)%
 
7.8
%
 
 
 
 
 
 
Restructuring
$
1.1

$
1.6

$
—

$
—

$
2.7

Operating Income/(Loss) Before Restructuring
$
20.6

$
18.6

$
(2.0
)
$
(12.1
)
$
25.1

% Operating Income to Net Sales Before Restructuring
11.3
%
27.4
%
(4.0
)%
 
8.7
%


Operating Income and Margins
 
 
 
 
 
(in millions)
For the Full Year of 2018
 
Water
Fueling
Distribution
Other/Elims
Consolidated
Operating Income/(Loss)
$
112.9

$
70.4

$
3.4

$
(54.7
)
$
132.0

% Operating Income To Net Sales
14.2
%
24.4
%
1.3
%
 
10.2
%
 
 
 
 
 
 
Restructuring
$
0.6

$
0.3

$
0.8

$
—

$
1.7

Operating Income/(Loss) Before Restructuring
$
113.5

$
70.7

$
4.2

$
(54.7
)
$
133.7

% Operating Income to Net Sales Before Restructuring
14.2
%
24.5
%
1.6
%
 
10.3
%
 
 
 
 
 
 
 
For the Full Year of 2017
 
Water
Fueling
Distribution
Other/Elims
Consolidated
Operating Income/(Loss)
$
102.0

$
60.0

$
3.7

$
(58.5
)
$
107.2

% Operating Income To Net Sales
13.7
%
24.4
%
2.1
%
 
9.5
%
 
 
 
 
 
 
Restructuring
$
2.7

$
1.6

$
—

$
—

$
4.3

Operating Income/(Loss) Before Restructuring
$
104.7

$
61.6

$
3.7

$
(58.5
)
$
111.5

% Operating Income to Net Sales Before Restructuring
14.1
%
25.1
%
2.1
%
 
9.9
%










Water Systems

Water Systems sales were $196.0 million in the fourth quarter 2018, versus the fourth quarter 2017 sales of $181.5 million. In the fourth quarter of 2018, sales from businesses acquired since the fourth quarter of 2017 were $4.4 million. Water Systems sales decreased about 5 percent in the quarter due to foreign currency translation. Water Systems organic sales increased about 11 percent compared to the fourth quarter of 2017.

Water Systems sales in the U.S. and Canada increased by about 22 percent compared to the fourth quarter 2017. Foreign currency translation decreased sales by about 1 percent. Sales of Pioneer branded dewatering equipment doubled in the fourth quarter when compared to the prior year due to continued strength in North American oil and gas markets and diversification of product sales channels and geographies. Sales of other surface pumping equipment increased by about 9 percent on stronger HVAC and wastewater products, versus the fourth quarter 2017. Sales of groundwater pumping equipment were flat, versus the fourth quarter 2017.

Outside the U.S. and Canada, Water Systems realized mid to upper single digit organic growth in Europe, the Middle East, Africa, and Asia Pacific. This increase was mostly offset by a 10 percent organic sales decline in Latin America, primarily Brazil. Due to the strengthening U.S. dollar, foreign exchange translation lowered sales outside the U.S. and Canada by about percent in the fourth quarter.

Water Systems operating income was $27.0 million in the fourth quarter 2018, compared to $19.5 million in the fourth quarter 2017. Strong operating income growth in the U.S. and Canada was partially offset by declines in international regions, in part due to weakening foreign currencies versus the U.S. dollar.

Fueling Systems

Fueling Systems sales were a record $75.9 million in the fourth quarter 2018 compared to fourth quarter 2017 sales of $67.9 million. In the fourth quarter of 2018, sales from businesses acquired since the fourth quarter of 2017 were $2.2 million. Fueling Systems organic sales were up about 10 percent compared to the fourth quarter of 2017.

Fueling Systems sales in the U.S. and Canada increased by about 13 percent compared to the fourth quarter 2017. The increase was principally in the fuel management and service station hardware product lines. Outside the U.S. and Canada, Fueling Systems revenues grew by about 8 percent, led by stronger sales of pipe and containment systems in China.

Fueling Systems operating income was $17.0 million in the fourth quarter of 2018 and 2017, respectively. Fueling Systems operating income was flat in the fourth quarter as growth from higher sales was offset primarily by negative geographic and product sales mix and higher fixed costs.



Distribution

Distribution sales were $56.0 million in the fourth quarter 2018, versus fourth quarter 2017 sales of $49.5 million. In the fourth quarter of 2018, sales from businesses acquired since the fourth quarter of 2017 were $6.4 million. The Distribution segment organic sales were flat compared to the fourth quarter of 2017.





The Distribution segment recorded an operating loss of $2.9 million in the fourth quarter of 2018, compared to $2.0 million loss in the fourth quarter of 2017. Higher product costs not completely offset by price and higher employee benefit costs contributed to the Distribution segment earnings decline.

Overall

The Company’s consolidated gross profit was $104.3 million for the fourth quarter of 2018, an increase from the fourth quarter of 2017 gross profit of $94.6 million. The gross profit increase was primarily due to higher sales. The gross profit as a percent of net sales was 33.0 percent in the fourth quarter of 2018 compared 32.8 percent in the fourth quarter of 2017.

Selling, general, and administrative (SG&A) expenses were $75.0 million in the fourth quarter of 2018 compared to $69.4 million in the fourth quarter of the prior year. The increase in SG&A expenses from acquired businesses was $3.3 million. Excluding the acquired entities, the Company’s SG&A expenses in the fourth quarter of 2018 were $71.7 million, an increase of about 3 percent from the fourth quarter 2017, due primarily to higher variable compensation expenses in the fourth quarter of 2018 versus the prior year.

The Company ended 2018 with a cash balance of $59.2 million, which was $8.0 million lower than at the end of 2017. Significantly higher net cash flows from operating activities were offset by higher repayments of debt and repurchases of the Company’s common stock in 2018.

Commenting on the outlook for 2019, Mr. Sengstack said:

“As we look towards 2019, our U.S. Water and global Fueling Systems businesses have great potential for continued growth and have good momentum coming out of 2018, however, many of the headwinds that have challenged our International Water businesses remain, most notably in Brazil and Asia Pacific.  Our distribution business is positioned for better growth and profitability in 2019.

We are currently thinking that our organic growth will slow from the 9 percent we experienced in 2018 to around 4 to 6 percent in 2019. Further, we calculate that there is about $27 million or 2 percent of foreign exchange headwind in our revenue in 2019 due to a strengthened U.S. dollar. We also note that because of discrete tax benefits realized in 2018 that will not repeat in 2019, we expect our overall effective tax rate to increase to between 18 and 20 percent in 2019, or about 20 cents of headwind to earnings per share.

As a result of this growth, offset by the impact of the strong dollar and a higher tax rate, we currently estimate our 2019 earnings per share before restructuring charges to be between $2.37 and $2.47.”
             
A conference call to review earnings and other developments in the business will commence at 9:00 am EST. The fourth quarter and fiscal year 2018 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:

https://edge.media-server.com/m6/p/2ufggzr4

If you intend to ask questions during the call, please dial in using 877.643.7158 for domestic calls and 914.495.8565 for international calls. The conference ID is: 3798049.





A replay of the conference call will be available Tuesday, February 19, 2019 at 12:00 noon EST through noon EST on Tuesday, February 26, 2019, by dialing 855.859.2056 for domestic calls and 404.537.3406 for international calls. The replay passcode is: 3798049.

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.


















FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
 
 
 
 
 
 
 
(In thousands, except per share amounts)
 
 
 
 
 
 
 
 
Fourth Quarter Ended
 
Fiscal Year Ended
 
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
Net sales
$
316,663

 
$
288,195

 
$
1,298,129

 
$
1,124,909

Cost of sales
212,321

 
193,624

 
865,763

 
747,927

Gross profit
104,342

 
94,571

 
432,366

 
376,982

Selling, general, and administrative expenses
74,983

 
69,370

 
298,706

 
265,447

Restructuring expense
676

 
2,732

 
1,666

 
4,307

Operating income/(expense),net
28,683

 
22,469

 
131,994

 
107,228

Interest expense
(2,362
)
 
(2,267
)
 
(9,839
)
 
(10,322
)
Other income/(expense), net
(461
)
 
40

 
(1,042
)
 
6,656

Foreign exchange income/(expense)
2,445

 
729

 
(706
)
 
1,025

Income before income taxes
28,305

 
20,971

 
120,407

 
104,587

Income tax expense
3,974

 
13,104

 
14,890

 
25,994

Net income
$
24,331

 
$
7,867

 
$
105,517

 
$
78,593

Less: Net (income)/loss attributable to noncontrolling interests
(131
)
 
204

 
360

 
(413
)
Net income attributable to Franklin Electric Co., Inc.
$
24,200

 
$
8,071

 
$
105,877

 
$
78,180

 
 
 
 
 
 
 
 
Income per share:
 
 
 
 
 
 
 
Basic
$
0.52

 
$
0.17

 
$
2.25

 
$
1.67

Diluted
$
0.51

 
$
0.17

 
$
2.23

 
$
1.65

 
 
 
 
 
 
 
 

























FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
 
 
(In thousands)
 
 
 
 
December 31, 2018
 
December 31, 2017
ASSETS
 
 
 
 
 
 
 
Cash and equivalents
$
59,173

 
$
67,233

Receivables
172,899

 
171,007

Inventories
314,049

 
312,325

Other current assets
33,758

 
38,566

Total current assets
579,879

 
589,131

 
 
 
 
Property, plant, and equipment, net
207,064

 
215,694

Goodwill and other assets
395,422

 
380,528

Total assets
$
1,182,365

 
$
1,185,353

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Accounts payable
$
76,652

 
$
79,348

Accrued expenses and other current liabilities
67,230

 
66,100

Current maturities of long-term debt and short-term borrowings
111,975

 
100,453

Total current liabilities
255,857

 
245,901

 
 
 
 
Long-term debt
94,379

 
125,596

Income taxes payable non-current
10,881

 
17,391

Deferred income taxes
28,949

 
30,913

Employee benefit plans
38,020

 
42,178

Other long-term liabilities
17,934

 
19,251

 
 
 
 
Redeemable noncontrolling interest
518

 
1,502

 
 
 
 
Total equity
735,827

 
702,621

Total liabilities and equity
$
1,182,365

 
$
1,185,353

 
 
 
 





FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
(In thousands)
2018
 
2017
 
 
 
 
Cash flows from operating activities:
 
 
 
Net income
$
105,517

 
$
78,593

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation and amortization
38,604

 
38,506

Share-based compensation
8,450

 
7,109

Income taxes-U.S. Tax Cuts and Jobs Act
—

 
10,198

Gain on equity investment
—

 
(5,165
)
Other
(4,147
)
 
(5,764
)
Changes in assets and liabilities:
 
 
 
Receivables
(8,194
)
 
9,948

Inventory
(4,775
)
 
(46,372
)
Accounts payable and accrued expenses
1,677

 
(11,071
)
Income taxes-U.S. Tax Cuts and Jobs Act
(6,510
)
 
—

Other
(2,187
)
 
(9,228
)
Net cash flows from operating activities
128,435

 
66,754

 
 
 
 
Cash flows from investing activities:
 
 
 
Additions to property, plant, and equipment
(22,432
)
 
33,484

Proceeds from sale of property, plant, and equipment
724

 
211

Acquisitions and investments
(44,971
)
 
(51,783
)
Other investing activities
387

 
355

Net cash flows from investing activities
(66,292
)
 
(84,701
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Change in debt
(18,985
)
 
1,882

Proceeds from issuance of common stock
8,999

 
4,497

Purchases of common stock
(34,188
)
 
(3,621
)
Dividends paid
(22,612
)
 
(20,289
)
Purchase of redeemable non-controlling shares
—

 
(5,047
)
Net cash flows from financing activities
(66,786
)
 
(22,578
)
Effect of exchange rate changes on cash
(3,417
)
 
3,427

Net change in cash and equivalents
(8,060
)
 
(37,098
)
Cash and equivalents at beginning of period
67,233

 
104,331

Cash and equivalents at end of period
$
59,173

 
$
67,233

 
 
 
 






“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases,  raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2017, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.