EX-99 3 dex99.txt PRESS RELEASE DATED SEPTEMBER 23, 2003 Exhibit 99 [LOGO OF H.B. FULLER] Corporate Headquarters Contact: Scott Dvorak Investor Relations 651-236-5150 P.O 64683 St. Paul, Minnesota 55164-0683 -------------------------------------------------------------------------------- NEWS For Immediate Release September 23, 2003 Note: H.B. Fuller will host a conference call September 24, 2003 at 9:30 a.m. central time (10:30 a.m. eastern time). The call can be heard live over the Internet at H.B. Fuller's website at http://www.hbfuller.com under the section shareholder information or at www.streetevents.com. A replay is also available. H.B. Fuller Reports Third Quarter Results ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL) today reported operating results for the third quarter that ended August 30, 2003. Third quarter net income as reported was $12.3 million or $0.43 per share (diluted). These results include $0.02 per share (diluted) of net income from gains on sale of assets, net of severance and other costs related to the restructuring initiative announced in the early part of 2002. Last year's third quarter net income as reported was $9.2 million or $0.32 per share (diluted), which included $0.14 per share (diluted) of charges for asset impairments, severance and other costs related to the restructuring initiative. Third quarter net income, excluding the net effect of gains and charges related to the restructuring initiative, totaled $11.8 million or $0.41 per share (diluted). Last year's third quarter net income, excluding special charges related to the restructuring initiative, was $13.1 million, or $0.46 per share (diluted).
-------------------------------------------------------------------------------------- Net income EPS (diluted) ------------------------------ As reported Q3, 2003 $12.3 million $0.43 Q3, 2002 $ 9.2 million $0.32 Change 33.6% 34.4% --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- Net income EPS (diluted) ------------------------------ Excluding special items related to the Q3, 2003 $11.8 million $0.41 restructuring initiative in 2003 and 2002 Q3, 2002 $13.1 million $0.46 Change -10.1% -10.9% --------------------------------------------------------------------------------------
1 Al Stroucken, CEO, said, "Throughout this year, our results have demonstrated our focus on taking the necessary and appropriate steps in an effort to provide consistent performance." Third Quarter Revenue Net revenue for the third quarter of 2003 was $322.1 million, a 2.6 percent increase from the third quarter of 2002. Reduced volume and pricing accounted for decreases of 0.5 percent and 1.0 percent respectively, while positive currency effects accounted for a 4.1 percent increase. Third Quarter Segment Revenue * Global Adhesives' net revenue increased 3.0 percent compared to last year. . Volume decreased 1.6 percent. . Prices decreased 0.6 percent. . Currency had a positive impact of 5.2 percent. * Full-Valu / Specialty Group's net revenue increased 1.6 percent compared to last year. . Volume increased 1.7 percent. . Prices decreased 1.8 percent. . Currency had a positive impact of 1.7 percent. Nine Month Results For the first nine months of 2003, net income as reported was $25.3 million or $0.88 per share (diluted). These results included $0.18 per share (diluted) of net charges for severance and other costs related to the restructuring initiative announced in the early part of 2002. For the same period last year, reported net income was $17.8 million, or $0.62 per share (diluted), which included $0.45 per share (diluted) of charges for asset impairments, severance and other costs relating to the restructuring initiative. For the first nine months of 2003, net income, excluding net charges for severance and other costs related to the restructuring initiative, was $30.4 million or $1.06 per share (diluted). For 2002, the first nine months' net income, excluding charges for asset impairments, severance and other costs relating to the restructuring initiative, was $30.7 million or $1.08 per share (diluted). 2
--------------------------------------------------------------------------------------- Nine Months Net income EPS (diluted) ----------------------------- As reported YTD, 2003 $25.3 million $0.88 YTD, 2002 $17.8 million $0.62 Change 42.1% 41.9% ---------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------- Nine Months Net income EPS (diluted) ----------------------------- Excluding special items related to the YTD, 2003 $30.4 million $1.06 restructuring initiative in 2003 and 2002 YTD, 2002 $30.7 million $1.08 Change -1.1% -1.9% ---------------------------------------------------------------------------------------
Net revenue for the first nine months of 2003 was $941.2 million, a 1.6 percent increase from the first nine months of 2002. Volume and pricing were down 1.6 percent and 0.8 percent respectively and positive currency effects accounted for an increase of 4.0 percent. __________ Some of the information presented above reflects adjustments to `As Reported' results to exclude certain special items related to the company's restructuring initiative. This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America. It is provided solely to assist in an investor's understanding of the impact of the special items on the comparability of the company's operations. A reconciliation of the company's results excluding the special items related to the company's restructuring initiatives and the company's reported results is provided in the accompanying consolidated income statements. Safe Harbor for Forward-Looking Statement Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; product mix; availability and price of raw materials; the company's relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations (particularly with respect to the euro, the British pound, the Japanese yen, the Australian dollar, the Argentine peso and the Brazilian real); the effect of new accounting pronouncements and accounting charges and credits, and similar matters. Further information about the various risks and uncertainties can be found in the company's SEC 10-K filing of February 28, 2003 and 10-Q filings of April 15 and July 14, 2003. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the company and the regions where the company does business makes it difficult to determine with certainty the increases or decreases in sales resulting from changes in the volume of products sold, currency impact, changes in product mix and selling prices. 3 However, management's best estimates of these changes as well as changes in other factors have been included. References to volume changes include volume and product mix changes, combined. __________ H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products, with fiscal 2002 net sales of $1.256 billion. Common stock is traded on the NYSE exchange under the symbol FUL. For more information about the Company, visit their website at: http://www.hbfuller.com. 4 H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)
13 Weeks 13 Weeks Ended Ended August 30, 2003 August 31, 2002 --------------- --------------- Net sales $ 322,089 $ 313,936 Cost of sales (235,023) (229,752) --------------- --------------- Gross profit 87,066 84,184 Selling, administrative and other expenses (67,838) (67,673) Interest expense (3,662) (4,353) Other income (expense), net 993 1,089 --------------- --------------- Income before income taxes, minority interests and income from equity investments 16,559 13,247 Income taxes (4,804) (4,223) Minority interests in consolidated income (30) (74) Income from equity investments 561 249 --------------- --------------- Net Income $ 12,286 $ 9,199 =============== =============== Basic income per common share $ 0.43 $ 0.33 =============== =============== Diluted income per common share $ 0.43 $ 0.32 =============== =============== Weighted-average common shares outstanding: Basic 28,262 28,135 Diluted 28,709 28,632
Selected Balance Sheet Information (subject to change prior to filing of the Company's Quarterly Report on Form 10-Q)
Unaudited Unaudited August 30, 2003 November 30, 2002 August 31, 2002 --------------- ----------------- --------------- Inventory $ 153,276 $ 143,012 $ 148,638 Trade accounts receivable, net 218,493 212,342 210,774 Trade accounts payable 103,593 113,297 112,321 Total assets 976,521 961,439 962,200 Long-term debt 171,953 163,125 170,372
H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)
13 Weeks Ended - August 30, 2003 13 Weeks Ended - August 31, 2002 ----------------------------------------- ----------------------------------------- Excluding Excluding As Reported Special Items Special Items As Reported Special Items Special Items ----------------------------------------- ----------------------------------------- Net sales $ 322,089 $ - $ 322,089 $ 313,936 $ - $ 313,936 Cost of sales (235,023) (358) (234,665) (229,752) (4,525) (225,227) ----------------------------------------- ----------------------------------------- Gross profit 87,066 (358) 87,424 84,184 (4,525) 88,709 Selling, administrative and other expenses (67,838) (671) (67,167) (67,673) (1,801) (65,872) Interest expense (3,662) - (3,662) (4,353) - (4,353) Other income (expense), net 993 1,955 (962) 1,089 - 1,089 ----------------------------------------- ----------------------------------------- Income before income taxes, minority interests and income from equity investments 16,559 926 15,633 13,247 (6,326) 19,573 Income taxes (4,804) (446) (4,358) (4,223) 2,302 (6,525) Minority interests in consolidated income (30) - (30) (74) 93 (167) Income from equity investments 561 - 561 249 - 249 ----------------------------------------- ----------------------------------------- Net Income $ 12,286 $ 480 $ 11,806 $ 9,199 $ (3,931) $ 13,130 ========================================= ========================================= Basic income (loss) per common share $ 0.43 $ 0.02 $ 0.42 $ 0.33 $ (0.14) $ 0.47 ========================================= ========================================= Diluted income (loss) per common share $ 0.43 $ 0.02 $ 0.41 $ 0.32 $ (0.14) $ 0.46 ========================================= ========================================= Weighted-average common shares outstanding: Basic 28,262 28,262 28,262 28,135 28,135 28,135 Diluted 28,709 28,709 28,709 28,632 28,632 28,632
The information presented above reflects adjustments to 'As Reported' results to exclude certain special items related to the Company's restructuring initiative. This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America. It is provided solely to assist in an investor's understanding of the impact of the special items on the comparability of the Company's operations. H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)
39 Weeks 39 Weeks Ended Ended August 30, 2003 August 31, 2002 --------------- --------------- Net sales $ 941,158 $ 926,578 Cost of sales (682,372) (679,779) --------- --------- Gross profit 258,786 246,799 Selling, administrative and other expenses (211,910) (207,887) Interest expense (11,029) (13,489) Other income (expense), net (2,302) (375) --------- --------- Income before income taxes, minority interests and income from equity investments 33,545 25,048 Income taxes (9,102) (7,734) Minority interests in consolidated income (580) (681) Income from equity investments 1,435 1,167 --------- --------- Net Income $ 25,298 $ 17,800 ========= ========= Basic income per common share $ 0.90 $ 0.63 ========= ========= Diluted income per common share $ 0.88 $ 0.62 ========= ========= Weighted-average common shares outstanding: Basic 28,228 28,071 Diluted 28,672 28,571
H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)
39 Weeks Ended - August 30, 2003 39 Weeks Ended - August 31, 2002 ------------------------------------------- ------------------------------------------ Excluding Excluding As Reported Special Items Special Items As Reported Special Items Special Items ------------------------------------------- ------------------------------------------ Net sales $ 941,158 $ - $ 941,158 $ 926,578 $ - $ 926,578 Cost of sales (682,372) (3,794) (678,578) (679,779) (14,623) (665,156) ------------------------------------------- ------------------------------------------ Gross profit 258,786 (3,794) 262,580 246,799 (14,623) 261,422 Selling, administrative and other expenses (211,910) (4,887) (207,023) (207,887) (6,000) (201,887) Interest expense (11,029) - (11,029) (13,489) - (13,489) Other income (expense), net (2,302) 1,955 (4,257) (375) - (375) ------------------------------------------- ------------------------------------------ Income before income taxes, minority interests and income from equity investments 33,545 (6,726) 40,271 25,048 (20,623) 45,671 Income taxes (9,102) 1,646 (10,748) (7,734) 7,267 (15,001) Minority interests in consolidated income (580) - (580) (681) 431 (1,112) Income from equity investments 1,435 - 1,435 1,167 - 1,167 ------------------------------------------- ------------------------------------------ Net Income $ 25,298 $ (5,080) $ 30,378 $ 17,800 $ (12,925) $ 30,725 =========================================== ========================================== Basic income (loss) per common share $ 0.90 $ (0.18) $ 1.08 $ 0.63 $ (0.46) $ 1.09 =========================================== ========================================== Diluted income (loss) per common share $ 0.88 $ (0.18) $ 1.06 $ 0.62 $ (0.45) $ 1.08 =========================================== ========================================== Weighted-average common shares outstanding: Basic 28,228 28,228 28,228 28,071 28,071 28,071 Diluted 28,672 28,672 28,672 28,571 28,571 28,571
The information presented above reflects adjustments to 'As Reported' results to exclude certain special items related to the Company's restructing initiative. This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America. It is provided solely to assist in an investor's understanding of the impact of the special items on the comparability of the Company's operations.