LINCOLNSHIRE, Ill.,
Feb. 15, 2012 /PRNewswire/ -- ACCO
Brands Corporation (NYSE: ABD), a world leader in branded office
products, today reported its fourth quarter results for the period
ended December 31, 2011.
"While consumer and business spending continued to be
constrained in the fourth quarter in both the U.S. and Europe, we managed the business well and are
pleased with our bottom-line performance for the quarter and the
year," said Robert J. Keller,
chairman and chief executive officer. "We've set the stage for a
transformation of ACCO Brands. Our pending merger with
MeadWestvaco's Consumer and Office Products business marks an
important first step in that transformation."
Fourth Quarter Results
Net sales decreased 2% to $350.7
million, compared to $359.5
million in the prior-year quarter. Volume declined
nearly 4% but was partially offset by favorable pricing, which
added more than 1%. Foreign exchange translation was modestly
negative. Fourth quarter income from continuing operations
was $9.4 million, or $0.16 per diluted share, compared to income of
$4.3 million, or $0.07 per diluted share, in the prior-year
quarter. Comparable earnings increased 26% to $0.29 per diluted share compared to $0.23 per share. Adjusted earnings use a
normalized effective tax rate of 30% in both periods and exclude
$4.1 million of costs associated with
the pending acquisition of MeadWestvaco's Consumer and Office
Products business.
Reported fourth quarter operating income increased 17% to
$40.0 million, excluding $4.1 million of costs associated with the pending
acquisition, from $34.2 million in
the prior-year quarter. Adjusted EBITDA increased 8% to
$52.4 million from $48.3 million in the prior year, also excluding
the costs of the pending acquisition. The company ended the
quarter with $121.2 million of cash
and no borrowings under its revolving credit facility.
Business Segment Highlights
ACCO Brands Americas
ACCO Brands Americas fourth quarter net sales decreased 4% to
$174.4 million from $181.7 million in the prior-year quarter.
Volume declined 5%, partially offset by pricing which added
2%. Foreign currency translation reduced sales by 1%.
The decline in volume was due to a difficult comparison to
the prior-year quarter as well as tight management of inventory by
certain customers. Operating income declined to $14.2 million compared to $17.1 million in the prior-year quarter and
operating margin declined to 8.1% from 9.4% primarily from the
deleveraging of fixed costs due to lower sales volume.
ACCO Brands International
ACCO Brands International net sales decreased 4% to $122.2 million from $126.9
million in the prior-year quarter. Volume declined 7% due to
lower demand in Europe. Pricing
and foreign currency translation favorably impacted sales by 3% and
1%, respectively. Operating income increased 47% to
$17.9 million, compared to
$12.2 million in the prior-year
quarter, and operating margin expanded 500 basis points to 14.6%
from 9.6% due to the strong improvement of the profitability of the
European business, resulting from price increases and operational
improvements executed in the first half of the year, as well as
continued strong performance in other regions.
Computer Products Group
Computer Products net sales increased 6% to $54.1 million compared to $50.9 million in the prior-year quarter.
Volume increased 10% driven by new products. Pricing
and foreign currency translation unfavorably impacted sales by 4%
and 1%, respectively. Operating income increased 17% to
$13.6 million, compared to
$11.6 million in the prior-year
quarter, and operating margin increased to 25.1% from 22.8% in the
prior-year quarter due to higher volumes.
Full Year Results
Net sales increased 3% to $1.32
billion compared to $1.28
billion in the prior year. Foreign currency
translation contributed 3% to sales growth. Volume declines
of 2% were offset by pricing which added 2%. Income from
continuing operations was $18.6
million, or $0.32 per diluted
share, for the twelve months ended December
31, 2011, compared to income of $7.8
million, or $0.14 per diluted
share, in the prior year. Adjusted earnings per share
increased 36% to $0.64 per share,
compared to $0.47 per share in the
prior year. Adjusted earnings, which were $36.9 million in the current period compared to
$26.9 million in the prior year, use
a normalized effective tax rate of 30% in both periods and exclude
$5.6 million of costs associated with
the pending acquisition of MeadWestvaco Corporation's Consumer and
Office Products business and $4.2
million of costs associated with the company's repurchase of
bonds in the current period.
Operating income increased 10% to $120.8
million, excluding $5.6
million of costs associated with the pending acquisition,
compared to operating income of $109.7
million in the prior year. Adjusted EBITDA increased
6% to $168.3 million, from
$158.4 million in the prior year, and
included a benefit from foreign exchange translation of
$8.6 million.
Business Outlook
The company expects to incur $5-7
million of restructuring charges in the first quarter of
2012 for severance and related expenses, as it streamlines its
sales and operations functions in the U.S. and Europe. Savings associated with these
actions are expected to be between $5-7
million in 2012, growing to $8
million on a full-year annualized basis thereafter.
The company expects the pre-tax net cash outflow from these
actions to be approximately $5
million, with an expected payback in the current year.
The company's 2012 outlook is for the current business only and
does not include business restructuring or refinancing costs, or
any impact from the pending acquisition of MeadWestvaco's Consumer
and Office Products business. The company is planning for sales to
be flat in 2012, with modest growth at constant currency offset by
negative impacts of foreign currency translation. Based on
continued productivity improvements, the company expects to grow
diluted earnings per share by approximately 30% on a normalized 30%
tax rate basis.
Targeted free cash flow, after interest, taxes and capital
expenditures, is expected to be approximately $50-60 million.
Webcast
At 8:30 a.m. Eastern Time today,
ACCO Brands Corporation will host a conference call to discuss the
company's results. The call will be broadcast live via
webcast. The webcast can be accessed through the Investor
Relations section of www.accobrands.com. The webcast will be
in listen-only mode and will be available for replay for one month
following the event.
Non-GAAP Financial Measures
"Adjusted" results exclude all unusual tax items. Adjusted
supplemental EBITDA from continuing operations also excludes other
non-operating items, including other income/expense and stock-based
compensation expense and costs associated with the pending
acquisition of MeadWestvaco's Consumer and Office Products
business. Adjusted results and supplemental EBITDA from continuing
operations are non-GAAP measures. There could be limitations
associated with the use of non-GAAP financial measures as compared
to the use of the most directly comparable GAAP financial measure.
Management uses the adjusted measures to determine the returns
generated by its operating segments and to evaluate and identify
cost-reduction initiatives. Management believes these measures
provide investors with helpful supplemental information regarding
the underlying performance of the company from year to year. These
measures may be inconsistent with measures presented by other
companies.
About ACCO Brands Corporation
ACCO Brands Corporation is a world leader in branded office
products. Its industry-leading brands include Day-Timer®,
Swingline®, Kensington®, Quartet®, GBC®, Rexel, NOBO, Derwent,
Marbig and Wilson Jones®, among others. Under the GBC brand, the
company is also a leader in the professional print finishing
market.
Forward-Looking Statements
This press release contains statements which may constitute
"forward-looking" statements as that term is defined in the Private
Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to certain risks
and uncertainties, are made as of the date hereof and the company
assumes no obligation to update them.
ACCO Brands' ability to predict results or the actual effect of
future plans or strategies is inherently uncertain. Because
actual results may differ from those predicted by such
forward-looking statements, you should not place undue reliance on
them when deciding to buy, sell or hold the company's securities.
Among the factors that could cause our plans, actions and
results to differ materially from current expectations are:
fluctuations in the cost and availability of raw materials;
competition within the markets in which the company operates; the
effects of both general and extraordinary economic, political and
social conditions, including any volatility and disruption in the
capital and credit markets; the effect of consolidation in the
office products industry; the liquidity and solvency of our major
customers; our continued ability to access the capital and credit
markets; the dependence of the company on certain suppliers of
manufactured products; the risk that targeted cost savings and
synergies from previous business combinations may not be fully
realized or take longer to realize than expected; future goodwill
and/or impairment charges; foreign exchange rate fluctuations; the
development, introduction and acceptance of new products; the
degree to which higher raw material costs, and freight and
distribution costs, can be passed on to customers through selling
price increases and the effect on sales volumes as a result
thereof; increases in health care, pension and other employee
welfare costs; as well as other risks and uncertainties detailed in
the company's Annual Report on Form 10-K for the year ended
December 31, 2010, under Item 1A,
"Risk Factors," and in the company's other SEC filings.
Forward-looking statements relating to the proposed merger
involving ACCO Brands and the Consumer & Office Products
business of MeadWestvaco Corporation include, but are not limited
to: statements about the benefits of the proposed merger, including
future financial and operating results; ACCO Brands' plans,
objectives, expectations and intentions; the expected timing of
completion of the merger; and other statements relating to the
merger that are not historical facts. With respect to the
proposed merger, important factors could cause actual results to
differ materially from those indicated by such forward-looking
statements, including, but not limited to: risks and uncertainties
relating to the ability to obtain the requisite ACCO Brands
Corporation shareholder approval; the risk that ACCO Brands or
MeadWestvaco Corporation may be unable to obtain governmental and
regulatory approvals required for the merger; the risk that a
condition to closing of the merger may not be satisfied; the length
of time necessary to consummate the merger; the risk that the cost
savings and any other synergies from the transaction may not be
fully realized or may take longer to realize than expected and the
impact of additional indebtedness. These risks, as well as
other risks associated with the proposed merger, are more fully
discussed in the preliminary proxy statement/prospectus included in
the registration statement on Form S-4/A that ACCO Brands filed
with the United States Securities and Exchange Commission ("SEC")
on February 13, 2012 in connection
with the proposed merger.
Additional Information
In connection with the proposed merger, ACCO Brands filed a
registration statement on Form S-4/A with the SEC on February 13, 2012, but this registration
statement has not been declared effective. This registration
statement includes a proxy statement of ACCO Brands that also
constitutes a prospectus of ACCO Brands, and will be sent to the
shareholders of ACCO Brands. Shareholders are urged to read the
proxy statement/prospectus and any other relevant documents when
they become available, because they will contain important
information about ACCO Brands and the proposed merger. The
proxy statement/prospectus and other documents relating to the
proposed merger (when they are available) can be obtained free of
charge from the SEC's website at www.sec.gov. The proxy
statement/prospectus and other documents (when they are available)
can also be obtained free of charge from ACCO Brands upon written
request to ACCO Brands Corporation, Investor Relations, 300 Tower
Parkway, Lincolnshire, Illinois
60069, or by calling (847) 484-3020.
This communication is not a solicitation of a proxy from any
security holder of ACCO Brands. However, ACCO Brands and certain of
its directors and executive officers may be deemed to be
participants in the solicitation of proxies from shareholders in
connection with the proposed merger under the rules of the SEC.
Information about the directors and executive officers of
ACCO Brands may be found in its 2010 Annual Report on Form 10-K
filed with the SEC on February 24,
2011, and its definitive proxy statement relating to its
2011 Annual Meeting of Shareholders filed with the SEC on
April 4, 2011.
ACCO Brands
Corporation
Consolidated
Statements of Operations and
Reconciliation of Adjusted
Results (Unaudited)
(In millions
of dollars, except per share data)
|
|
|
Three Months
Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
Change
|
|
Net sales
|
$
350.7
|
|
$
359.5
|
|
(2)%
|
|
Cost of products
sold.
|
237.8
|
|
245.7
|
|
(3)%
|
|
Gross profit
|
112.9
|
|
113.8
|
|
(1)%
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
Advertising, selling, general
and administrative expenses
|
75.4
|
|
77.7
|
|
(3)%
|
|
Amortization of
intangibles
|
1.5
|
|
1.6
|
|
(6)%
|
|
Restructuring charges
|
0.1
|
|
0.3
|
|
(67)%
|
|
Total operating costs and
expenses
|
77.0
|
|
79.6
|
|
(3)%
|
|
|
|
|
|
|
|
|
Operating income
|
35.9
|
|
34.2
|
|
5%
|
|
|
|
|
|
|
|
|
Non-operating expense
(income):
|
|
|
|
|
|
|
Interest expense, net
|
17.9
|
|
19.4
|
|
(8)%
|
|
Equity in earnings of joint
ventures
|
(2.3)
|
|
(3.7)
|
|
(38)%
|
|
Other expense, net
|
0.6
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income tax
|
19.7
|
|
18.5
|
|
6%
|
|
Income tax expense
|
10.3
|
|
14.2
|
|
(27)%
|
|
Income from continuing
operations
|
9.4
|
|
4.3
|
|
119%
|
|
Income from discontinued
operations, net of income taxes
|
-
|
|
2.5
|
|
(100)%
|
|
Net income
|
$
9.4
|
|
$
6.8
|
|
38%
|
|
|
|
|
|
|
|
|
Per share:
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
Income from continuing
operations
|
$
0.17
|
|
$
0.08
|
|
113%
|
|
Income from discontinued
operations
|
$
-
|
|
$
0.05
|
|
(100)%
|
|
Basic earnings per
share
|
$
0.17
|
|
$
0.12
|
|
42%
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
Income from continuing
operations
|
$
0.16
|
|
$
0.07
|
|
129%
|
|
Income from discontinued
operations
|
$
-
|
|
$
0.04
|
|
(100)%
|
|
Diluted earnings per
share
|
$
0.16
|
|
$
0.12
|
|
33%
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding:
|
|
|
|
|
|
|
Basic
|
55.4
|
|
54.9
|
|
|
|
Diluted
|
57.8
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Reported Consolidated Results to Adjusted Results
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
|
|
|
Excluded
|
|
Tax
|
|
|
|
|
|
Tax
|
|
|
|
|
|
|
Items
|
|
Adjustment
|
|
|
|
|
|
Adjustment
|
|
|
|
(in millions, except per share
data)
|
Reported
|
|
(B)
|
|
(A)
|
|
Adjusted
|
|
Reported
|
|
(A)
|
|
Adjusted
|
|
Income from continuing operations before income tax
|
$
19.7
|
|
$
4.1
|
|
$
-
|
|
$
23.8
|
|
$
18.5
|
|
$
-
|
|
$
18.5
|
|
Income tax expense
(benefit)
|
10.3
|
|
1.2
|
|
(4.4)
|
|
7.1
|
|
14.2
|
|
(8.7)
|
|
5.5
|
|
Income from continuing
operations
|
$
9.4
|
|
$
2.9
|
|
$
4.4
|
|
$
16.7
|
|
$
4.3
|
|
$
8.7
|
|
$
13.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
0.16
|
|
|
|
|
|
$
0.29
|
|
$
0.07
|
|
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
diluted shares outstanding
|
57.8
|
|
|
|
|
|
57.8
|
|
57.2
|
|
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note – "Adjusted" results are
non-GAAP measures. There could be limitations associated with the
use of non-GAAP financial measures as compared to the most directly
comparable GAAP financial measure. Management believes these
measures provide investors with helpful supplemental information
regarding the underlying performance of the Company from year to
year. These measures may be inconsistent with measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics(as a % of Net sales, except Income tax rate)
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
2011
|
|
2010
|
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Gross profit (Net sales, less
Cost of products sold)
|
32.2%
|
|
|
|
31.7%
|
|
|
|
Advertising, selling, general
and administrative
|
21.5%
|
|
20.3%
|
|
21.6%
|
|
|
|
Operating income
|
10.2%
|
|
11.4%
|
|
9.5%
|
|
|
|
Income from continuing operations before income tax
|
5.6%
|
|
6.8%
|
|
5.1%
|
|
|
|
Net income
|
2.7%
|
|
4.8%
|
|
1.9%
|
|
4.3%
|
|
Income tax rate
|
52.3%
|
|
30.0%
|
|
76.8%
|
|
30.0%
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The Company has incurred
significant pre-tax losses in several jurisdictions in prior
periods. In accordance with GAAP, tax valuation allowances
have been recorded on certain of the Company's deferred tax assets.
As a result, the results in these locations have recorded no
tax benefit or expense, which results in a high effective tax rate
for the prior-year period. Assuming all the locations become
profitable in the future and the valuation allowances were
reversed, the Company's ongoing effective tax rate would
approximate 30%. This estimated long-term rate will be
subject to variations from the mix of earnings in the Company's
operating jurisdictions.
|
|
(B)
|
During the fourth quarter of
2011, the Company recorded costs associated with the pending
acquisition of MeadWestvaco's Consumer and Office Products business
of $4.1 million, or $0.05 per diluted share, on an adjusted net of
tax basis.
|
|
|
|
|
|
Reconciliation of Net Income to
Adjusted Supplemental EBITDA from Continuing
Operations
|
|
(Unaudited)
|
|
(In millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
Net income
|
$
9.4
|
|
$
6.8
|
|
38%
|
|
|
Discontinued
operations
|
-
|
|
(2.5)
|
|
100%
|
|
|
Mead merger related expenses
(C)
|
4.1
|
|
-
|
|
NM
|
|
|
Income taxes, impact of
adjustments
|
3.2
|
|
8.7
|
|
(63)%
|
|
Adjusted income from continuing
operations
|
16.7
|
|
13.0
|
|
28%
|
|
|
Interest expense, net
|
17.8
|
|
19.4
|
|
(8)%
|
|
|
Adjusted income tax
expense
|
7.1
|
|
5.5
|
|
29%
|
|
|
Depreciation
|
6.1
|
|
7.1
|
|
(14)%
|
|
|
Amortization of intangibles
(D)
|
1.5
|
|
1.6
|
|
(6)%
|
|
|
Other expense, net
|
0.7
|
|
-
|
|
NM
|
|
|
Stock-based compensation
expense
|
2.5
|
|
1.7
|
|
47%
|
|
Adjusted supplemental EBITDA
from continuing operations
|
$
52.4
|
|
$
48.3
|
|
8%
|
|
|
|
|
|
|
|
|
|
Adjusted supplemental EBITDA
from continuing operations as a % of Net Sales
|
14.9%
|
|
13.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
During the fourth quarter of
2011, the company recorded costs associated with the pending
acquisition of MeadWestvaco's Consumer and Office Products business
of $4.1 million.
|
|
(D)
|
Amortization of intangibles for
the three months ended December 31, 2010 exclude $0.1 million that
has been included in discontinued operations, which is excluded
from adjusted income from continuing operations.
|
|
|
|
ACCO Brands
Corporation
Consolidated
Statements of Operations and
Reconciliation of Adjusted
Results (Unaudited)
(In millions
of dollars, except per share data)
|
|
|
Twelve
Months Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
Change
|
|
Net sales
|
$
1,318.4
|
|
$
1,284.6
|
|
3%
|
|
Cost of products sold
|
903.7
|
|
887.5
|
|
2%
|
|
Gross profit
|
414.7
|
|
397.1
|
|
4%
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
Advertising, selling, general
and administrative expenses
|
293.9
|
|
281.2
|
|
5%
|
|
Amortization of
intangibles
|
6.3
|
|
6.7
|
|
(6)%
|
|
Restructuring income
|
(0.7)
|
|
(0.5)
|
|
40%
|
|
Total operating costs and
expenses
|
299.5
|
|
287.4
|
|
4%
|
|
|
|
|
|
|
|
|
Operating income
|
115.2
|
|
109.7
|
|
5%
|
|
|
|
|
|
|
|
|
Non-operating expense
(income):
|
|
|
|
|
|
|
Interest expense, net
|
77.2
|
|
78.3
|
|
(1)%
|
|
Equity in earnings of joint
ventures
|
(8.5)
|
|
(8.3)
|
|
2%
|
|
Other expense, net
|
3.6
|
|
1.2
|
|
200%
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income tax
|
42.9
|
|
38.5
|
|
11%
|
|
Income tax expense
|
24.3
|
|
30.7
|
|
(21)%
|
|
Income from continuing
operations
|
18.6
|
|
7.8
|
|
138%
|
|
Income from discontinued
operations, net of income taxes
|
38.1
|
|
4.6
|
|
728%
|
|
Net income
|
$
56.7
|
|
$
12.4
|
|
357%
|
|
|
|
|
|
|
|
|
Per share:
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
Income from continuing
operations
|
$
0.34
|
|
$
0.14
|
|
143%
|
|
Income from discontinued
operations
|
$
0.69
|
|
$
0.08
|
|
763%
|
|
Basic earnings per
share
|
$
1.03
|
|
$
0.23
|
|
348%
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
Income from continuing
operations
|
$
0.32
|
|
$
0.14
|
|
129%
|
|
Income from discontinued
operations
|
$
0.66
|
|
$
0.08
|
|
725%
|
|
Diluted earnings per
share
|
$
0.98
|
|
$
0.22
|
|
345%
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding:
|
|
|
|
|
|
|
Basic
|
55.2
|
|
54.8
|
|
|
|
Diluted
|
57.6
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Consolidated Results to Adjusted Results
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
Twelve
Months Ended
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
|
|
|
Excluded
|
|
Tax
|
|
|
|
|
|
Tax
|
|
|
|
|
|
|
Items
|
|
Adjustment
|
|
|
|
|
|
Adjustment
|
|
|
|
(in millions, except per share
data)
|
Reported
|
|
(B)
|
|
(A)
|
|
Adjusted
|
|
Reported
|
|
(A)
|
|
Adjusted
|
|
Income from continuing operations before income tax
|
$
42.9
|
|
$
9.8
|
|
$
-
|
|
$
52.7
|
|
$
38.5
|
|
$
-
|
|
$
38.5
|
|
Income tax expense
(benefit)
|
24.3
|
|
2.9
|
|
(11.4)
|
|
15.8
|
|
30.7
|
|
(19.1)
|
|
11.6
|
|
Income (loss) from continuing
operations
|
$
18.6
|
|
$
6.9
|
|
$
11.4
|
|
$
36.9
|
|
$
7.8
|
|
$
19.1
|
|
$
26.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
$
0.32
|
|
|
|
|
|
$
0.64
|
|
$
0.14
|
|
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of diluted shares outstanding
|
57.6
|
|
|
|
|
|
57.6
|
|
57.2
|
|
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note – "Adjusted" results are
non-GAAP measures. There could be limitations associated with the
use of non-GAAP financial measures as compared to the most directly
comparable GAAP financial measure. Management believes these
measures provide investors with helpful supplemental information
regarding the underlying performance of the Company from year to
year. These measures may be inconsistent with measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (as a % of Net sales,
except Income tax rate)
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31,
|
|
|
2011
|
|
2010
|
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Gross profit (Net sales, less
Cost of products sold)
|
31.5%
|
|
|
|
30.9%
|
|
|
|
Advertising, selling, general
and administrative
|
22.3%
|
|
21.9%
|
|
21.9%
|
|
|
|
Operating income
|
8.7%
|
|
9.2%
|
|
8.5%
|
|
|
|
Income from continuing operations before income tax
|
3.3%
|
|
4.0%
|
|
3.0%
|
|
|
|
Net income
|
4.3%
|
|
5.7%
|
|
1.0%
|
|
2.5%
|
|
Income tax rate
|
56.6%
|
|
30.0%
|
|
79.7%
|
|
30.0%
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The Company has incurred
significant pre-tax losses in several jurisdictions in prior
periods. In accordance with GAAP, tax valuation allowances
have been recorded on certain of the Company's deferred tax assets.
As a result, the results in these locations have recorded no
tax benefit or expense, which results in a high effective tax rate
for the current and prior periods. Assuming all the locations
become profitable in the future and the valuation allowances were
reversed, the Company's ongoing effective tax rate would
approximate 30%. This estimated long-term rate will be
subject to variations from the mix of earnings in the Company's
operating jurisdictions.
|
|
(B)
|
During 2011, the Company
recorded a loss associated with bond repurchases of $4.2 million,
or $0.05 per diluted share, and recorded costs associated with the
pending acquisition of MeadWestvaco's Consumer and Office Products
business of $5.6 million, or $0.07 per diluted share, on an
adjusted net of tax basis.
|
|
|
|
|
|
Reconciliation of Net Income to
Adjusted Supplemental EBITDA from Continuing
Operations
|
|
(Unaudited)
|
|
(In millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
2011
|
|
2010
|
|
% Change
|
|
Net income
|
$
56.7
|
|
$
12.4
|
|
357%
|
|
|
Discontinued
operations
|
(38.1)
|
|
(4.6)
|
|
NM
|
|
|
Loss on bond repurchases
(C)
|
4.2
|
|
-
|
|
NM
|
|
|
Mead merger related expenses
(D)
|
5.6
|
|
-
|
|
NM
|
|
|
Income taxes, impact of
adjustments
|
8.5
|
|
19.1
|
|
(55)%
|
|
Adjusted income from continuing
operations
|
36.9
|
|
26.9
|
|
37%
|
|
|
Adjusted interest expense, net
(C)
|
75.9
|
|
78.3
|
|
(3)%
|
|
|
Adjusted income tax
expense
|
15.8
|
|
11.6
|
|
36%
|
|
|
Depreciation (E)
|
26.4
|
|
29.5
|
|
(11)%
|
|
|
Amortization of intangibles
(F)
|
6.3
|
|
6.7
|
|
(6)%
|
|
|
Adjusted other expense, net
(C)
|
0.7
|
|
1.2
|
|
(42)%
|
|
|
Stock-based compensation
expense
|
6.3
|
|
4.2
|
|
50%
|
|
Adjusted supplemental EBITDA
from continuing operations
|
$
168.3
|
|
$
158.4
|
|
6%
|
|
|
|
|
|
|
|
|
|
Adjusted supplemental EBITDA
from continuing operations as a % of Net Sales
|
12.8%
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
During the third quarter of
2011, the Company recorded a $4.2 million loss associated with bond
repurchases. $3.0 million of the premium paid was recorded in Other
expense, net and $1.2 million of accelerated debt origination costs
were recorded in Interest expense, net.
|
|
(D)
|
During the second half of 2011,
the company recorded costs associated with the pending acquisition
of MeadWestvaco's Consumer and Office Products business of $5.6
million.
|
|
(E)
|
Depreciation expense for the
twelve months ended December 31, 2011 and 2010, excludes $0.1
million and $0.1 million, respectively, that has been included in
discontinued operations, which is excluded from adjusted income
from continuing operations.
|
|
(F)
|
Amortization of intangibles for
the twelve months ended December 31, 2011 and 2010, excludes $0.1
million and $0.2 million, respectively, that has been included in
discontinued operations, which is excluded from adjusted income
from continuing operations.
|
|
|
|
ACCO Brands
Corporation
Supplemental
Business Segment Information
(Unaudited)
(In millions
of dollars
|
|
|
2011
|
|
2010
|
|
Changes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
Net Sales
|
|
|
Margin
|
|
|
Net Sales
|
|
OI
|
|
OI Margin
|
|
Net Sales
|
|
OI
|
|
OI Margin
|
|
$
|
%
|
OI $
|
OI %
|
Points
|
|
Q1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
$ 152.2
|
|
$ 5.5
|
|
3.6%
|
|
$ 158.6
|
|
$ 8.3
|
|
5.2%
|
|
$ (6.4)
|
(4)%
|
$
(2.8)
|
(34)%
|
(160)
|
|
ACCO Brands
International
|
104.9
|
|
4.1
|
|
3.9%
|
|
102.2
|
|
9.1
|
|
8.9%
|
|
2.7
|
3%
|
(5.0)
|
(55)%
|
(500)
|
|
Computer Products
|
41.3
|
|
9.3
|
|
22.5%
|
|
39.7
|
|
8.1
|
|
20.4%
|
|
1.6
|
4%
|
1.2
|
15%
|
210
|
|
Corporate
|
-
|
|
(5.6)
|
|
|
|
-
|
|
(5.0)
|
|
|
|
-
|
|
(0.6)
|
|
|
|
Total
|
$ 298.4
|
|
$ 13.3
|
|
4.5%
|
|
$ 300.5
|
|
$ 20.5
|
|
6.8%
|
|
$ (2.1)
|
(1)%
|
$
(7.2)
|
(35)%
|
(230)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
$ 175.7
|
|
$ 14.5
|
|
8.3%
|
|
$ 169.9
|
|
$ 14.4
|
|
8.5%
|
|
$ 5.8
|
3%
|
$
0.1
|
1%
|
(20)
|
|
ACCO Brands International
|
105.8
|
|
9.0
|
|
8.5%
|
|
93.2
|
|
4.9
|
|
5.3%
|
|
12.6
|
14%
|
4.1
|
84%
|
320
|
|
Computer Products
|
48.7
|
|
13.1
|
|
26.9%
|
|
42.1
|
|
10.7
|
|
25.4%
|
|
6.6
|
16%
|
2.4
|
22%
|
150
|
|
Corporate
|
-
|
|
(6.0)
|
|
|
|
-
|
|
(5.0)
|
|
|
|
|
|
(1.0)
|
|
|
|
Total
|
$ 330.2
|
|
$ 30.6
|
|
9.3%
|
|
$ 305.2
|
|
$ 25.0
|
|
8.2%
|
|
$ 25.0
|
8%
|
$
5.6
|
22%
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
$ 182.6
|
|
$ 16.5
|
|
9.0%
|
|
$ 178.1
|
|
$ 16.5
|
|
9.3%
|
|
$ 4.5
|
3%
|
$
-
|
0%
|
(30)
|
|
ACCO Brands
International
|
110.3
|
|
14.6
|
|
13.2%
|
|
97.0
|
|
5.3
|
|
5.5%
|
|
13.3
|
14%
|
9.3
|
175%
|
770
|
|
Computer Products
|
46.2
|
|
11.1
|
|
24.0%
|
|
44.3
|
|
12.6
|
|
28.4%
|
|
1.9
|
4%
|
(1.5)
|
(12)%
|
(440)
|
|
Corporate
|
-
|
|
(6.8)
|
|
|
|
-
|
|
(4.4)
|
|
|
|
|
|
(2.4)
|
|
|
|
Total
|
$ 339.1
|
|
$ 35.4
|
|
10.4%
|
|
$ 319.4
|
|
$ 30.0
|
|
9.4%
|
|
$ 19.7
|
6%
|
$
5.4
|
18%
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
$ 174.4
|
|
$ 14.2
|
|
8.1%
|
|
$ 181.7
|
|
$ 17.1
|
|
9.4%
|
|
$ (7.3)
|
(4)%
|
$
(2.9)
|
(17)%
|
(130)
|
|
ACCO Brands
International...
|
122.2
|
|
17.9
|
|
14.6%
|
|
126.9
|
|
12.2
|
|
9.6%
|
|
(4.7)
|
(4)%
|
5.7
|
47%
|
500
|
|
Computer Products
|
54.1
|
|
13.6
|
|
25.1%
|
|
50.9
|
|
11.6
|
|
22.8%
|
|
3.2
|
6%
|
2.0
|
17%
|
230
|
|
Corporate
|
-
|
|
(9.8)
|
|
|
|
-
|
|
(6.7)
|
|
|
|
|
|
(3.1)
|
|
|
|
Total
|
$ 350.7
|
|
$ 35.9
|
|
10.2%
|
|
$ 359.5
|
|
$ 34.2
|
|
9.5%
|
|
$ (8.8)
|
(2)%
|
$
1.7
|
5%
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
$ 684.9
|
|
$ 50.7
|
|
7.4%
|
|
$ 688.3
|
|
$ 56.3
|
|
8.2%
|
|
$ (3.4)
|
(0)%
|
$
(5.6)
|
(10)%
|
(80)
|
|
ACCO Brands
International
|
443.2
|
|
45.6
|
|
10.3%
|
|
419.3
|
|
31.5
|
|
7.5%
|
|
23.9
|
6%
|
14.1
|
45%
|
280
|
|
Computer Products
|
190.3
|
|
47.1
|
|
24.8%
|
|
177.0
|
|
43.0
|
|
24.3%
|
|
13.3
|
8%
|
4.1
|
10%
|
50
|
|
Corporate
|
-
|
|
(28.2)
|
|
|
|
-
|
|
(21.1)
|
|
|
|
|
|
(7.1)
|
|
|
|
Total
|
$ 1,318.4
|
|
$ 115.2
|
|
8.7%
|
|
$ 1,284.6
|
|
$ 109.7
|
|
8.5%
|
|
$ 33.8
|
3%
|
$
5.5
|
5%
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands
Corporation
|
|
Supplemental
Net Sales Growth Analysis
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
Change - Sales
|
|
|
|
Net
|
|
|
|
Comparable
|
|
|
|
|
|
|
|
Sales
|
|
Currency
|
|
Sales
|
|
|
|
|
|
|
|
Growth
|
|
Translation
|
|
Growth
|
|
Price
|
|
Volume
|
|
Q1 2011:
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
|
(4.0%)
|
|
1.4%
|
|
(5.4%)
|
|
1.1%
|
|
(6.5%)
|
|
ACCO Brands
International
|
|
2.6%
|
|
4.7%
|
|
(2.1%)
|
|
1.2%
|
|
(3.3%)
|
|
Computer Products
|
|
4.0%
|
|
1.3%
|
|
2.7%
|
|
1.8%
|
|
0.9%
|
|
Total
|
|
(0.7%)
|
|
2.5%
|
|
(3.2%)
|
|
1.2%
|
|
(4.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2011:
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
|
3.4%
|
|
1.5%
|
|
1.9%
|
|
1.5%
|
|
0.4%
|
|
ACCO Brands International
|
|
13.5%
|
|
14.6%
|
|
(1.1%)
|
|
3.3%
|
|
(4.4%)
|
|
Computer Products
|
|
15.7%
|
|
5.8%
|
|
9.9%
|
|
1.7%
|
|
8.2%
|
|
Total
|
|
8.2%
|
|
6.1%
|
|
2.1%
|
|
2.1%
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2011:
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
|
2.5%
|
|
1.2%
|
|
1.3%
|
|
1.7%
|
|
(0.4%)
|
|
ACCO Brands
International
|
|
13.7%
|
|
10.9%
|
|
2.8%
|
|
4.5%
|
|
(1.7%)
|
|
Computer Products
|
|
4.3%
|
|
4.1%
|
|
0.2%
|
|
(1.1%)
|
|
1.3%
|
|
Total
|
|
6.2%
|
|
4.5%
|
|
1.7%
|
|
2.2%
|
|
(0.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2011:
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
|
(4.0%)
|
|
(0.9%)
|
|
(3.1%)
|
|
1.9%
|
|
(5.0%)
|
|
ACCO Brands
International
|
|
(3.7%)
|
|
0.8%
|
|
(4.5%)
|
|
2.8%
|
|
(7.3%)
|
|
Computer Products
|
|
6.3%
|
|
(0.5%)
|
|
6.8%
|
|
(3.7%)
|
|
10.5%
|
|
Total
|
|
(2.4%)
|
|
(0.2%)
|
|
(2.2%)
|
|
1.4%
|
|
(3.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 YTD:
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Americas
|
|
(0.5%)
|
|
0.8%
|
|
(1.3%)
|
|
1.6%
|
|
(2.9%)
|
|
ACCO Brands
International
|
|
5.7%
|
|
7.2%
|
|
(1.5%)
|
|
2.9%
|
|
(4.4%)
|
|
Computer Products
|
|
7.5%
|
|
2.5%
|
|
5.0%
|
|
(0.6%)
|
|
5.6%
|
|
Total
|
|
2.6%
|
|
3.1%
|
|
(0.5%)
|
|
1.7%
|
|
(2.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands
Corporation
|
|
Key Stats
and Ratios
|
|
(Unaudited)
|
|
(In millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
Calculation
|
December 31,
2011
|
|
December 31,
2010
|
|
Current debt obligations,
including current portion of long-term debt
|
|
$
0.2
|
|
|
|
$
0.2
|
|
|
Long-term debt obligations
|
|
668.8
|
|
|
|
727.4
|
|
|
Total outstanding
debt
|
|
669.0
|
|
|
|
727.6
|
|
|
Less: cash and cash
equivalents
|
|
121.2
|
|
|
|
83.2
|
|
|
|
Net debt
|
|
$
547.8
|
|
|
|
$
644.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
Twelve
Months Ended
|
|
Leverage Ratio (Debt to EBITDA
from Continuing Operations)
|
December 31,
2011
|
|
December 31,
2010
|
|
Trailing twelve months (TTM)
adjusted supplemental EBITDA from Continuing Operations
(A)
|
|
$
168.3
|
|
|
|
$
158.4
|
|
|
Net debt
|
|
$
547.8
|
|
|
|
$
644.4
|
|
|
Gross debt
|
|
$
669.0
|
|
|
|
$
727.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Leverage (net debt divided
by TTM adjusted supplemental EBITDA from Continuing
Operations)
|
|
3.3
|
|
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior-Secured Leverage
(senior-secured debt ($422.7 million as of December 31, 2011 and
$456.3 million as of December 31, 2010) divided by TTM adjusted
supplemental EBITDA from Continuing Operations)
|
|
2.5
|
|
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and
for the
|
|
As of and
for the
|
|
|
|
Twelve
Months Ended
|
|
Twelve
Months Ended
|
|
Working Capital per Dollar Sales
Ratio (Working Capital to Sales)
|
December 31,
2011
|
|
December 31,
2010
|
|
Current assets, excluding cash
and cash equivalents (B)
|
|
$
501.7
|
|
|
|
$
537.5
|
|
|
Current liabilities, excluding
current debt obligations (C)
|
|
305.9
|
|
|
|
327.7
|
|
|
Net working capital
|
|
$
195.8
|
|
|
|
$
209.8
|
|
|
|
|
|
|
|
|
|
|
|
Trailing twelve months (TTM) net
sales (A)
|
|
$
1,318.4
|
|
|
|
$
1,284.6
|
|
|
|
|
|
|
|
|
|
|
|
Working capital ratio (net
working capital divided by TTM net sales) (A)
|
|
14.9%
|
|
|
|
16.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Management believes these
measures provide investors with helpful supplemental information
regarding the underlying performance of the Company from year to
year. These measures may be inconsistent with similar
measures presented by other companies.
|
|
(B)
|
Balance is comprised of
receivables, inventories, current deferred income taxes and other
current assets.
|
|
(C)
|
Balance is comprised of accounts
payable, accrued compensation, accrued customer programs and other
current liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands
Corporation
|
|
Reconciliation of Net Income
(Loss) to Adjusted Supplemental EBITDA from Continuing
Operations
|
|
(Unaudited)
|
|
(In millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
|
Trailing
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
Twelve Months
|
|
|
|
|
|
|
|
|
|
(A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
298.4
|
|
|
$
330.2
|
|
|
$
339.1
|
|
|
$
350.7
|
|
|
|
$
1,318.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
(8.1)
|
|
|
$
43.7
|
|
|
$
11.7
|
|
|
$
9.4
|
|
|
|
$
56.7
|
|
|
|
Discontinued
operations
|
|
(0.9)
|
|
|
(37.4)
|
|
|
0.2
|
|
|
-
|
|
|
|
(38.1)
|
|
|
|
Loss on bond
repurchases
|
|
-
|
|
|
-
|
|
|
4.2
|
|
|
-
|
|
|
|
4.2
|
|
|
|
Mead merger related expenses
(A)
|
|
-
|
|
|
-
|
|
|
1.5
|
|
|
4.1
|
|
|
|
5.6
|
|
|
|
Income taxes, impact of
adjustments
|
|
5.8
|
|
|
2.3
|
|
|
(2.8)
|
|
|
3.2
|
|
|
|
8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income (loss) from continuing operations
|
|
(3.2)
|
|
|
8.6
|
|
|
14.8
|
|
|
16.7
|
|
|
|
36.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense,
net
|
|
19.2
|
|
|
19.5
|
|
|
19.4
|
|
|
17.8
|
|
|
|
75.9
|
|
|
|
Adjusted income tax expense
(benefit)
|
|
(1.3)
|
|
|
3.7
|
|
|
6.3
|
|
|
7.1
|
|
|
|
15.8
|
|
|
|
Depreciation expense
|
|
7.1
|
|
|
6.8
|
|
|
6.4
|
|
|
6.1
|
|
|
|
26.4
|
|
|
|
Amortization of
intangibles
|
|
1.7
|
|
|
1.6
|
|
|
1.5
|
|
|
1.5
|
|
|
|
6.3
|
|
|
|
Adjusted other (income) expense,
net
|
|
(0.2)
|
|
|
-
|
|
|
0.2
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
Stock-based compensation
expense
|
|
0.8
|
|
|
2.0
|
|
|
1.0
|
|
|
2.5
|
|
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted supplemental EBITDA from continuing operations
|
|
$
24.1
|
|
|
$
42.2
|
|
|
$
49.6
|
|
|
$
52.4
|
|
|
|
$
168.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
During the second half of 2011,
the Company recorded costs associated with the pending acquisition
of MeadWestvaco's Consumer and Office Products business of $5.6
million. Of this, $1.5 million was incurred in, and reported
within, the Company's third quarter 2011 results.
|
|
|
|
ACCO Brands
Corporation and Subsidiaries
Condensed
Consolidated Balance Sheets
|
|
|
December
31,
|
December
31,
|
|
|
|
2011
|
|
|
|
2010
|
|
|
(in millions of
dollars)
|
|
(unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
121.2
|
|
|
|
$
83.2
|
|
|
Accounts receivable,
net
|
|
269.5
|
|
|
|
274.8
|
|
|
Inventories
|
|
197.7
|
|
|
|
205.9
|
|
|
Deferred income
taxes
|
|
7.6
|
|
|
|
9.1
|
|
|
Other current
assets
|
|
26.9
|
|
|
|
24.0
|
|
|
Assets of discontinued
operations
|
|
-
|
|
|
|
23.7
|
|
|
Total current assets
|
|
622.9
|
|
|
|
620.7
|
|
|
|
|
|
|
|
|
|
|
|
Total property, plant and
equipment
|
|
463.3
|
|
|
|
474.1
|
|
|
Less accumulated
depreciation
|
|
(316.1)
|
|
|
|
(310.9)
|
|
|
Property, plant and
equipment, net
|
|
147.2
|
|
|
|
163.2
|
|
|
Deferred income
taxes
|
|
16.7
|
|
|
|
10.6
|
|
|
Goodwill
|
|
135.0
|
|
|
|
136.9
|
|
|
Identifiable intangibles,
net
|
|
130.4
|
|
|
|
137.0
|
|
|
Other non-current
assets
|
|
64.5
|
|
|
|
71.8
|
|
|
Assets of discontinued
operations
|
|
-
|
|
|
|
9.4
|
|
|
Total assets
|
|
$
1,116.7
|
|
|
|
$
1,149.6
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Deficit
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
0.2
|
|
|
|
$
0.2
|
|
|
Accounts
payable
|
|
127.1
|
|
|
|
110.3
|
|
|
Accrued
compensation
|
|
24.2
|
|
|
|
23.9
|
|
|
Accrued customer program
liabilities
|
|
66.8
|
|
|
|
72.8
|
|
|
Accrued
interest
|
|
20.2
|
|
|
|
22.0
|
|
|
Other current
liabilities
|
|
66.5
|
|
|
|
84.1
|
|
|
Liabilities of
discontinued operations
|
|
1.1
|
|
|
|
14.6
|
|
|
Total current
liabilities
|
|
306.1
|
|
|
|
327.9
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
668.8
|
|
|
|
727.4
|
|
|
Deferred income
taxes
|
|
85.6
|
|
|
|
81.2
|
|
|
Pension and post
retirement benefit obligations
|
|
106.1
|
|
|
|
74.9
|
|
|
Other non-current
liabilities
|
|
12.0
|
|
|
|
12.7
|
|
|
Liabilities of
discontinued operations
|
|
-
|
|
|
|
5.3
|
|
|
Total liabilities
|
|
1,178.6
|
|
|
|
1,229.4
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficit:
|
|
|
|
|
|
|
|
|
Common stock
|
|
0.6
|
|
|
|
0.6
|
|
|
Treasury stock
|
|
(1.7)
|
|
|
|
(1.5)
|
|
|
Paid-in capital
|
|
1,407.4
|
|
|
|
1,401.1
|
|
|
Accumulated other
comprehensive loss
|
|
(131.0)
|
|
|
|
(86.1)
|
|
|
Accumulated
deficit
|
|
(1,337.2)
|
|
|
|
(1,393.9)
|
|
|
Total stockholders'
deficit
|
|
(61.9)
|
|
|
|
(79.8)
|
|
|
Total liabilities and
stockholders' deficit
|
|
$
1,116.7
|
|
|
|
$
1,149.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands
Corporation and Subsidiaries
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
Payments
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
December
31,
|
|
|
(in millions of
dollars)
|
|
2011
|
|
|
|
2010
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
56.7
|
|
|
|
$
12.4
|
|
|
Deferred income tax
provision
|
|
3.9
|
|
|
|
12.3
|
|
|
Gain on sale of
assets
|
|
(40.4)
|
|
|
|
(1.5)
|
|
|
Depreciation
|
|
26.5
|
|
|
|
29.6
|
|
|
Other non-cash
charges
|
|
0.1
|
|
|
|
0.7
|
|
|
Amortization of debt issuance
costs and bond discount
|
|
8.2
|
|
|
|
6.3
|
|
|
Amortization of
intangibles
|
|
6.4
|
|
|
|
6.9
|
|
|
Stock-based
compensation
|
|
6.3
|
|
|
|
4.2
|
|
|
Loss on debt
repurchase
|
|
2.9
|
|
|
|
-
|
|
|
Changes in balance sheet
items:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
0.6
|
|
|
|
(18.5)
|
|
|
|
|
Inventories
|
|
5.4
|
|
|
|
(9.8)
|
|
|
|
|
Other assets
|
|
1.8
|
|
|
|
(5.1)
|
|
|
|
|
Accounts payable
|
|
16.8
|
|
|
|
14.8
|
|
|
|
|
Accrued expenses and other
liabilities
|
|
(27.8)
|
|
|
|
(2.2)
|
|
|
|
|
Accrued income taxes
|
|
(1.1)
|
|
|
|
7.7
|
|
|
Equity in earnings of joint
ventures, net of dividends received
|
|
(2.9)
|
|
|
|
(2.9)
|
|
|
|
Net cash provided by operating
activities
|
|
63.4
|
|
|
|
54.9
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Additions to property, plant and
equipment
|
|
(13.5)
|
|
|
|
(12.6)
|
|
|
Assets acquired
|
|
(1.4)
|
|
|
|
(1.1)
|
|
|
Proceeds (payments) from sale of
discontinued operations
|
|
53.5
|
|
|
|
(3.7)
|
|
|
Proceeds from the disposition of
assets|
|
|
1.4
|
|
|
|
2.5
|
|
|
Payments in pursuit of business
acquisition
|
|
(1.6)
|
|
|
|
-
|
|
|
|
Net cash provided (used) by
investing activities
|
|
38.4
|
|
|
|
(14.9)
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from long-term
borrowings
|
|
0.1
|
|
|
|
1.5
|
|
|
Repayments of long-term
debt
|
|
(63.0)
|
|
|
|
(0.2)
|
|
|
Borrowings (repayments) of short
term debt, net
|
|
-
|
|
|
|
(0.5)
|
|
|
Cost of debt issuance
|
|
-
|
|
|
|
(0.8)
|
|
|
Other
|
|
(0.2)
|
|
|
|
(0.1)
|
|
|
|
Net cash used by financing
activities
|
|
(63.1)
|
|
|
|
(0.1)
|
|
|
Effect of foreign exchange rate
changes on cash
|
|
(0.7)
|
|
|
|
(0.3)
|
|
|
|
Net increase in cash and cash
equivalents
|
|
38.0
|
|
|
|
39.6
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
83.2
|
|
|
|
43.6
|
|
|
End of period
|
|
$ 121.2
|
|
|
|
$
83.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE ACCO Brands Corporation