Snap-on Incorporated · NYSE:SNA
Snap-on — Q1 2018 Earnings Presentation
15 slides from Snap-on's earnings presentation, Apr 19, 2018
Slide 1: Quarterly Financial Review First Quarter 2018
Quarterly Financial Review First Quarter 2018 Snap-on Tools In-Depth Business Review Q1-2018 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 April 19, 2018 conference call. The financial statement information included herein is unaudited. Statements made during the April 19, 2018 conference call and/or information included in this presentation may
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 Q1-2018 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 Q1-2018 Board Quarterly Review of Directors 5April DB-2 5 -5 © 2018 Snap-on 27, 2011 Incorporated
Slide 6: Consolidated Results – 1st Quarter
Consolidated Results – 1st Quarter 2018 2017 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 935.5 $ 887.1 5.5 % Organic sales 7.2 0.8 % Acquisitions 14.3 1.6 % Currency translation 26.9 3.1 % Gross profit $ 471.6 50.4 % $ 448.3 50.5 % Operating expenses 293.9 31.
Slide 7: Commercial & Industrial – 1st Quarter
Commercial & Industrial – 1st Quarter ($ in millions - unaudited) 2018 2017 Change Segment sales $ 331.6 $ 298.7 11.0 % Organic sales 6.0 1.9 % Acquisitions 13.6 4.4 % Currency translation 13.3 4.7 % Gross profit $ 129.3 $ 116.7 % of sales 39.0 % 39.1 % Operating expenses $ 82.8 $ 74.8 % of sa
Slide 8: Snap-on Tools – 1st Quarter
Snap-on Tools – 1st Quarter ($ in millions - unaudited) 2018 2017 Change Segment sales $ 404.7 $ 409.4 (1.1)% Organic sales (11.4) (2.7)% Currency translation 6.7 1.6 % Gross profit $ 180.3 $ 177.1 % of sales 44.6 % 43.3 % Operating expenses $ 111.4 $ 106.8 % of sales 27.6 % 26.1 % Operating ear
Slide 9: Repair Systems & Information – 1st Quarter
Repair Systems & Information – 1st Quarter ($ in millions - unaudited) 2018 2017 Change Segment sales $ 337.0 $ 318.8 5.7 % Organic sales 8.4 2.6 % Acquisition 0.7 0.2 % Currency translation 9.1 2.9 % Gross profit $ 162.0 $ 154.5 % of sales 48.1 % 48.5 % Operating expenses $ 76.2 $ 75.4 % of s
Slide 10: Financial Services – 1st Quarter
Financial Services – 1st Quarter ($ in millions - unaudited) 2018 2017 Change Segment revenue $ 83.0 $ 76.8 8.1 % Operating earnings $ 56.9 $ 52.5 8.4 % Originations $ 247.3 $ 264.6 (6.5)% Originations decreased $17.3 million or 6.5% due to lower originations of finance receivables Average yield
Slide 11: Financial Services Portfolio Data
Financial Services Portfolio Data United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,415.0 $ 1,740.8 $ 191.5 $ 269.4 Portfolio net losses (TTM) $ 47.2 $ 48.9 $ 2.2 $ 2.6 60+ Delinquency: As of 3/31/18 1.6 % 1.4 % 0.8 % 0.7
Slide 12: Cash Flows
Cash Flows 1st Quarter ($ in millions - unaudited) 2018 2017 Net cash provided by operating activities $ 231.9 $ 192.4 Net earnings 166.8 145.1 Depreciation and amortization 24.0 23.1 Changes in deferred income taxes 0.4 7.4 Settlement of treasury lock - 14.9 Loss on early extinguishment o
Slide 13: Balance Sheet
Balance Sheet March 31, December 30, ($ in millions - unaudited) 2018 2017 Trade & Other Accounts Receivable - net $ 680.8 $ 675.6 Days Sales Outstanding 66 66 Finance Receivables - net $ 1,548.1 $ 1,544.6 Contract Receivables - net $ 418.1 $ 419.4 Inventory - net $ 678.8 $ 638.8 Inventory turns - T
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures AS REPORTED 1st Quarter ($ in millions, except per share data - unaudited) 2018 2017 Debt-related items (“net debt items”) Gain on settlement of treasury lock (A) Gain on settlement of treasury lock $ 13.3 $ - Income tax expense (3.3) - Gain on settlemen
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ADJUSTED INFORMATION – NON-GAAP 1st Quarter ($ in millions - unaudited) 2018 2017 Net earnings attributable to Snap-on Incorporated As reported $ 163.0 $ 141.6 Net debt items, after tax (4.1) - Tax charge 2.6 - As adjusted to exclude net debt items and t