Snap-on Incorporated · NYSE:SNA
Snap-on — Q3 2018 Earnings Presentation
16 slides from Snap-on's earnings presentation, Oct 18, 2018
Slide 1: Quarterly Financial Review Third Quarter 2018
Quarterly Financial Review Third Quarter 2018 Snap-on Tools In-Depth Business Review Q3-2018 Board Quarterly Review of Directors 1April DB-2 1 -1 © 2018 Snap-on 27, 2011 Incorporated
Slide 2: Cautionary Statement
Cautionary Statement These slides should be read in conjunction with comments from the October 18, 2018 conference call. The financial statement information included herein is unaudited. Statements made during the October 18, 2018 conference call and/or information included in this presentation
Slide 3: Snap-on Tools In-Depth Business Review
Snap-on Tools In-Depth Business Review Board of Directors DB-2 3April 27, 2011 3 -3
Slide 4: Nick Pinchuk
Nick Pinchuk Chairman and Chief Executive Officer Snap-on Tools In-Depth Business Review Q3-2018 Board Quarterly Review of Directors 4April DB-2 4 -4 © 2018 Snap-on 27, 2011 Incorporated
Slide 5: Aldo Pagliari
Aldo Pagliari Senior Vice President and Chief Financial Officer Snap-on Tools In-Depth Business Review Q3-2018 Board Quarterly Review of Directors 5April DB-2 5 -5 © 2018 Snap-on 27, 2011 Incorporated
Slide 6: Consolidated Results – 3rd Quarter
Consolidated Results – 3rd Quarter 2018 2017 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 898.1 $ 903.8 (0.6)% Organic sales 5.4 0.6 % Acquisitions 1.4 0.2 % Currency translation (12.5) (1.4)% Gross profit $ 453.9 50.5 % $ 448.8 49.7 % Operating expenses 280.8
Slide 7: Commercial & Industrial – 3rd Quarter
Commercial & Industrial – 3rd Quarter ($ in millions - unaudited) 2018 2017 Change Segment sales $ 330.2 $ 314.6 5.0 % Organic sales 20.7 6.7 % Acquisitions 1.4 0.5 % Currency translation (6.5) (2.2)% Gross profit $ 130.9 $ 126.8 % of sales 39.6 % 40.3 % Operating expenses $ 77.9 $ 76.5 % of s
Slide 8: Snap-on Tools – 3rd Quarter
Snap-on Tools – 3rd Quarter ($ in millions - unaudited) 2018 2017 Change Segment sales $ 389.8 $ 392.7 (0.7)% Organic sales 0.3 0.1 % Currency translation (3.2) (0.8)% Gross profit $ 169.8 $ 164.2 % of sales 43.6 % 41.8 % Operating expenses $ 110.5 $ 107.8 % of sales 28.4 % 27.4 % Operating earn
Slide 9: Repair Systems & Information – 3rd Quarter
Repair Systems & Information – 3rd Quarter ($ in millions - unaudited) 2018 2017 Change Segment sales $ 314.4 $ 333.5 (5.7)% Organic sales (15.9) (4.8)% Currency translation (3.2) (0.9)% Gross profit $ 153.2 $ 157.8 % of sales 48.7 % 47.3 % Operating expenses $ 72.5 $ 74.0 % of sales 23.0 % 22.2
Slide 10: Financial Services – 3rd Quarter
Financial Services – 3rd Quarter ($ in millions - unaudited) 2018 2017 Change Segment revenue $ 82.0 $ 79.0 3.8 % Operating earnings $ 59.3 $ 56.0 5.9 % Originations $ 267.0 $ 271.8 (1.8)% Originations decreased $4.8 million or 1.8% Average yield on finance receivables of 17.7% compared to 17.9%
Slide 11: Financial Services Portfolio Data
Financial Services Portfolio Data United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,447.5 $ 1,798.4 $ 189.4 $ 267.8 Portfolio net losses (TTM) $ 49.5 $ 51.1 $ 2.5 $ 2.9 60+ Delinquency: As of 9/30/18 1.7 % 1.4 % 0.7 % 0.8
Slide 12: Cash Flows
Cash Flows 3rd Quarter September YTD ($ in millions - unaudited) 2018 2017 2018 2017 Net cash provided by operating activities $ 129.8 $ 95.5 $ 548.6 $ 415.0 Net earnings 167.4 137.1 516.9 439.0 Depreciation and amortization 23.2 23.5 71.2 69.4 Changes in deferred income taxes (2.8) (13.2) (6.
Slide 13: Balance Sheet
Balance Sheet September 29, December 30, ($ in millions - unaudited) 2018 2017 Trade & Other Accounts Receivable - net $ 678.7 $ 675.6 Days Sales Outstanding 65 66 Finance Receivables - net $ 1,577.3 $ 1,544.6 Contract Receivables - net $ 443.7 $ 419.4 Inventory - net $ 690.6 $ 638.8 Inventory turns
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures AS REPORTED 3rd Quarter ($ in millions, except per share data - unaudited) 2018 2017 Adjustments related to implementation of tax legislation (“tax charge”) Tax charge $ (1.8) $ - Weighted-average shares outstanding – diluted 57.3 58.3 Diluted EPS – tax
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ADJUSTED INFORMATION – NON-GAAP 3rd Quarter ($ in millions - unaudited) 2018 2017 Operating earnings before financial services As reported $ 173.1 $ 152.7 Legal charge - 15.0 As adjusted $ 173.1 $ 167.7 Operating earnings before financial services as a p
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ADJUSTED INFORMATION – NON-GAAP 3rd Quarter ($ in millions - unaudited) 2018 2017 Net earnings attributable to Snap-on Incorporated As reported $ 163.2 $ 133.4 Tax charge 1.8 - Legal charge, after tax - 9.3 As adjusted $ 165.0 $ 142.7 Diluted EPS As repo