ROCKFORD, Mich., July 21, 2015 /PRNewswire/ -- Wolverine Worldwide
(NYSE: WWW) today reported financial results for its second quarter
ended June 20, 2015. Adjusted
financial results exclude restructuring and impairment and
acquisition-related integration costs.
"The global demand for our family of brands remains strong and I
am pleased to report that our top-line growth accelerated in the
quarter and exceeded our internal expectations," commented
Blake W. Krueger, Wolverine
Worldwide's Chairman, Chief Executive Officer and President.
"As we move into the second half of the year, we remain intensely
focused on our consumers and further investing in our key strategic
initiatives – specifically our global brand-building efforts,
omnichannel transformation and the continued expansion of our
portfolio's international footprint."
SECOND-QUARTER 2015 REVIEW
- Consolidated revenue increased to a record $630.1 million, representing growth of 2.7%
versus the prior year and 4.9% on a constant currency basis.
Adjusting for the impact of foreign exchange, retail store closures
and termination of the Patagonia license agreement, adjusted
revenue grew 6.9% versus the prior year. Other highlights
include:
- Growth of 12.2% from the Heritage Group (14.6% in constant
currency) and growth of 5.7% from the Performance Group (9.4% in
constant currency).
- U.S. wholesale revenue growth in the mid-single digits.
- Planned retail store closures and termination of the Patagonia
license agreement reduced revenue $11.6
million versus the prior year.
- Gross margin was 39.1%, a decrease of 100 basis points versus
the prior year's gross margin, in line with Company
expectations.
- Adjusted operating margin decreased 90 basis points versus the
prior year to 8.1%, due primarily to higher pension expense and
planned incremental brand investment. Reported operating
margin declined 40 basis points versus the prior year to 7.6%.
- Adjusted diluted earnings per share were $0.27, compared to an adjusted $0.31 per share in the prior year, and well ahead
of Company expectations for the quarter. Reported diluted
earnings per share were $0.24,
compared to $0.27 per share in the
prior year.
- Cash and cash equivalents were $220.7
million and net debt was $612.4
million, a reduction of $286.5
million from the same period last year.
- The Company repurchased $5.9
million of its common stock in the quarter at an average
price of $29.93 per share.
"The strong performance in the quarter was highlighted by
mid-single digit revenue growth in our U.S. wholesale business,
double-digit growth in EMEA and growth exceeding 50% in the
Asia Pacific region, each on a
constant currency basis," commented Mike
Stornant, Senior Vice President and Chief Financial
Officer. "Revenue for the quarter also benefited from higher
than anticipated international shipments that were initially
expected to deliver in Q3 2015. Operating margin was also positive
relative to our projections heading into the quarter, aided by
strong discipline around discretionary spending to protect our key
brand investment initiatives. The Company's global diversity and
reliable fiscal discipline helped deliver another very good
financial performance in Q2 2015."
UPDATE ON KEY STRATEGIC INITIATIVES
Over the past
year, the Company has initiated several key strategic initiatives
to accelerate growth and improve profitability.
- In July 2014, the Company
announced a Strategic Realignment Plan for its consumer-direct
operations. As part of this effort, the Company announced
plans to close approximately 140 stores by the end of fiscal
2015. Today, the Company is announcing that total closures by
year end are expected to number approximately 120, and that
approximately 55 additional under-performing stores are expected to
be closed over the next five years at their natural lease
expiration.
- Also, as part of the Strategic Realignment Plan, the Company is
consolidating offices and infrastructure in Canada to streamline operations, further
realize synergies and drive growth in this important market.
This initiative was launched this past quarter and is expected to
conclude by mid 2016.
- As part of the continuing evaluation of the performance of
brands within its portfolio, the Company has decided to wind-down
operations for its smallest brand - Cushe - and redeploy talent and
resources to other higher-value opportunities. The Company
expects to incur $3.5 million of
restructuring and impairment costs in fiscal 2015, of which
$2.9 million was recorded in Q2
2015.
- The Company recently amended and extended its senior secured
credit facilities. In addition to increasing the overall size
of the Company's borrowing capacity, the amended credit agreement
extends the maturity date of the facilities, lowers the cost of the
Company's debt, and increases flexibility with respect to stock
repurchases and other restricted uses of cash.
FISCAL 2015 GUIDANCE
The Company is narrowing its
full-year revenue guidance and reaffirming its adjusted earnings
per share guidance, as follows:
- Consolidated reported revenue is expected in the range of
$2.82 billion to $2.85 billion,
representing growth in the range of approximately 2% to 3% versus
the prior year. Constant currency revenue growth is expected
in the range of approximately 5% to 6%.
- Adjusted diluted earnings per share is expected in the range of
$1.53 to $1.60. Constant
currency adjusted diluted earnings per share is expected in the
range of $1.68 to $1.75.
The Company now expects to incur total pre-tax charges of
approximately $48 million to $51
million related to the previously announced Strategic
Realignment Plan, exit of the Cushe business and debt
extinguishment costs from the debt refinancing. Of this
amount, $26 million was recorded in
fiscal 2014, and $23 million of the
charges are expected to be incurred in fiscal 2015 with the balance
recorded in fiscal 2016. As a result, reported diluted
earnings per share in fiscal 2015 is expected in the range of
$1.39 to $1.46.
EARNINGS CALL INFORMATION
The Company will host a
conference call today at 8:30 a.m. Eastern
Time to discuss these results and current business
trends. The conference call will be broadcast live and
accessible under the "Investor Relations" tab at
wolverineworldwide.com. A replay of the conference call will
be available at the Company's website for a period of approximately
30 days.
ABOUT WOLVERINE WORLDWIDE
With a commitment to service
and product excellence, Wolverine World Wide, Inc. is one of the
world's leading marketers of branded casual, active lifestyle,
work, outdoor sport, athletic, children's and uniform footwear and
apparel. The Company's portfolio of highly recognized brands
includes: Merrell®, Sperry®, Hush
Puppies®, Saucony®, Wolverine®,
Keds®, Stride Rite®, Sebago®,
Cushe®, Chaco®, Bates®, and
HYTEST®. The Company also is the global footwear
licensee of the popular brands Cat® and
Harley-Davidson®. The Company's products are
carried by leading retailers in the U.S. and globally in
approximately 200 countries and territories. For additional
information, please visit our website, wolverineworldwide.com.
FORWARD-LOOKING STATEMENTS
This press release contains
forward-looking statements, including statements regarding future
benefits relating to the amended credit agreement, the possibility
of future share repurchases or other uses of cash, expected 2015
financial performance, 2015 investment plans and benefits, future
growth plans and future benefits resulting from strategic
initiatives. In addition, words such as "guidance,"
"estimates," "anticipates," "believes," "forecasts," "step,"
"plans," "predicts," "projects," "is likely," "expects," "intends,"
"should," "will," "confident," variations of such words, and
similar expressions are intended to identify forward-looking
statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties, and
assumptions ("Risk Factors") that are difficult to predict with
regard to timing, extent, likelihood, and degree of
occurrence. Risk Factors include, among others: the
impact of financial and credit markets on the Company, its
suppliers and customers; changes in interest rates, tax laws,
duties, tariffs, quotas, or applicable assessments in countries of
import and export; changes in consumer preferences, spending
patterns, buying patterns, price sensitivity or demand for the
Company's products; changes in future pension funding requirements
and pension expenses; the ability to secure and protect owned
intellectual property or use licensed intellectual property; the
risk of impairment to goodwill and other intangibles; cancellation
of orders for future delivery; the failure of the U.S. Department
of Defense to exercise future purchase options or award new
contracts, or the cancellation or modification of existing
contracts by the Department of Defense or other military
purchasers; changes in relationships with, including the loss of,
significant customers; the financial strength of the Company's
customers, distributors and licensees; risks related to the
significant investment in, and performance of, the Company's
consumer-direct business; the impact of regulation, regulatory or
legal proceedings and legal compliance risks; the cost,
availability, and management of raw materials, inventories,
services and labor for owned and contract manufacturers; currency
fluctuations; currency restrictions; the risks of doing business in
developing countries and politically or economically volatile
areas; changes in national, regional or global economic and market
conditions; the impact of seasonality and unpredictable weather
conditions; problems affecting the Company's distribution system,
including service interruptions at shipping and receiving ports;
the potential breach of the Company's databases, or those of its
vendors, which contain certain personal information or payment card
data; the inability for any reason to effectively compete in global
footwear, apparel and consumer-direct markets; strategic actions,
including new initiatives and ventures, acquisitions and
dispositions, and the Company's success in integrating acquired
businesses and implementing new initiatives and ventures; the
success of the Company's consumer-direct realignment initiatives;
and additional factors discussed in the Company's reports filed
with the Securities and Exchange Commission and exhibits
thereto. The foregoing Risk Factors, as well as other
existing Risk Factors and new Risk Factors that emerge from time to
time, may cause actual results to differ materially from those
contained in any forward-looking statements. Given these
risks and uncertainties, investors should not place undue reliance
on forward-looking statements as a prediction of actual
results. Furthermore, the Company undertakes no obligation to
update, amend, or clarify forward-looking statements.
WOLVERINE WORLD
WIDE, INC.
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(In millions,
except per share data)
|
|
|
|
|
|
12 Weeks
Ended
|
|
24 Weeks
Ended
|
|
June 20,
2015
|
|
June 14,
2014
|
|
June 20,
2015
|
|
June 14,
2014
|
Revenue
|
$
|
630.1
|
|
|
$
|
613.5
|
|
|
$
|
1,261.5
|
|
|
$
|
1,241.1
|
|
Cost of goods
sold
|
383.7
|
|
|
367.7
|
|
|
753.7
|
|
|
739.1
|
|
Restructuring
costs
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.5
|
|
Gross
profit
|
246.4
|
|
|
245.7
|
|
|
507.8
|
|
|
501.5
|
|
Gross
margin
|
39.1
|
%
|
|
40.1
|
%
|
|
40.3
|
%
|
|
40.4
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
195.1
|
|
|
190.8
|
|
|
393.9
|
|
|
381.3
|
|
Acquisition-related
integration costs
|
—
|
|
|
2.5
|
|
|
—
|
|
|
4.1
|
|
Restructuring and
impairment costs
|
3.7
|
|
|
3.4
|
|
|
2.7
|
|
|
3.4
|
|
Operating
expenses
|
198.8
|
|
|
196.7
|
|
|
396.6
|
|
|
388.8
|
|
Operating expenses
as a % of revenue
|
31.6
|
%
|
|
32.1
|
%
|
|
31.4
|
%
|
|
31.3
|
%
|
|
|
|
|
|
|
|
|
Operating
profit
|
47.6
|
|
|
49.0
|
|
|
111.2
|
|
|
112.7
|
|
Operating
margin
|
7.6
|
%
|
|
8.0
|
%
|
|
8.8
|
%
|
|
9.1
|
%
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
9.0
|
|
|
10.5
|
|
|
18.5
|
|
|
21.4
|
|
Other expense,
net
|
1.8
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
10.8
|
|
|
10.5
|
|
|
19.3
|
|
|
22.2
|
|
Earnings before
income taxes
|
36.8
|
|
|
38.5
|
|
|
91.9
|
|
|
90.5
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
11.6
|
|
|
10.9
|
|
|
26.6
|
|
|
25.7
|
|
Effective tax
rate
|
31.4
|
%
|
|
28.2
|
%
|
|
28.9
|
%
|
|
28.4
|
%
|
|
|
|
|
|
|
|
|
Net
earnings
|
25.2
|
|
|
27.6
|
|
|
65.3
|
|
|
64.8
|
|
|
|
|
|
|
|
|
|
Less: net (loss)
earnings attributable to noncontrolling interest
|
(0.1)
|
|
|
0.1
|
|
|
(0.1)
|
|
|
0.2
|
|
Net earnings
attributable to Wolverine World Wide, Inc.
|
$
|
25.3
|
|
|
$
|
27.5
|
|
|
$
|
65.4
|
|
|
$
|
64.6
|
|
Diluted earnings per
share
|
$
|
0.24
|
|
|
$
|
0.27
|
|
|
$
|
0.63
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
Net earnings used to
calculate diluted earnings per share
|
$
|
24.9
|
|
|
$
|
27.1
|
|
|
$
|
64.3
|
|
|
$
|
63.5
|
|
Shares used to
calculate earnings per share
|
101.6
|
|
|
100.0
|
|
|
101.3
|
|
|
99.9
|
|
Weighted average
shares outstanding
|
103.2
|
|
|
101.4
|
|
|
102.8
|
|
|
101.2
|
|
WOLVERINE WORLD
WIDE, INC.
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
June 20,
2015
|
|
June 14,
2014
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
220.7
|
|
|
$
|
232.4
|
|
Accounts receivables,
net
|
355.3
|
|
|
434.3
|
|
Inventories,
net
|
452.2
|
|
|
459.8
|
|
Other current
assets
|
79.8
|
|
|
66.5
|
|
Total current
assets
|
1,108.0
|
|
|
1,193.0
|
|
Property, plant and
equipment, net
|
137.3
|
|
|
146.0
|
|
Goodwill and other
indefinite-lived intangibles
|
1,124.4
|
|
|
1,135.3
|
|
Other non-current
assets
|
184.9
|
|
|
206.9
|
|
Total
assets
|
$
|
2,554.6
|
|
|
$
|
2,681.2
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
|
345.8
|
|
|
$
|
286.7
|
|
Current maturities of
long-term debt
|
45.2
|
|
|
48.4
|
|
Total current
liabilities
|
391.0
|
|
|
335.1
|
|
Long-term
debt
|
787.9
|
|
|
1,082.9
|
|
Other non-current
liabilities
|
376.9
|
|
|
355.3
|
|
Stockholders'
equity
|
998.8
|
|
|
907.9
|
|
Total liabilities and
stockholders' equity
|
$
|
2,554.6
|
|
|
$
|
2,681.2
|
|
WOLVERINE WORLD
WIDE, INC.
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(In
millions)
|
|
|
|
24 Weeks
Ended
|
|
June 20,
2015
|
|
June 14,
2014
|
OPERATING
ACTIVITIES:
|
|
|
|
Net
earnings
|
$
|
65.3
|
|
|
$
|
64.8
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
21.7
|
|
|
25.0
|
|
Stock-based
compensation expense
|
14.1
|
|
|
11.2
|
|
Excess tax benefits
from stock-based compensation
|
(3.8)
|
|
|
(3.7)
|
|
Pension
expense
|
12.9
|
|
|
5.9
|
|
Restructuring and
impairment costs
|
2.7
|
|
|
3.9
|
|
Other
|
(7.0)
|
|
|
1.1
|
|
Changes in operating
assets and liabilities
|
(11.0)
|
|
|
(42.6)
|
|
Net cash provided by
operating activities
|
94.9
|
|
|
65.6
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
Additions to
property, plant and equipment
|
(15.8)
|
|
|
(12.5)
|
|
Investment in joint
venture
|
—
|
|
|
(0.7)
|
|
Other
|
3.2
|
|
|
(1.6)
|
|
Net cash used in
investing activities
|
(12.6)
|
|
|
(14.8)
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
Payments on long-term
debt
|
(67.7)
|
|
|
(19.4)
|
|
Cash dividends
paid
|
(12.3)
|
|
|
(12.0)
|
|
Purchase of common
stock for treasury
|
(5.9)
|
|
|
—
|
|
Purchases of shares
under employee stock plans
|
(7.5)
|
|
|
(9.4)
|
|
Proceeds from the
exercise of stock options
|
8.5
|
|
|
3.8
|
|
Excess tax benefits
from stock-based compensation
|
3.8
|
|
|
3.7
|
|
Net cash used in
financing activities
|
(81.1)
|
|
|
(33.3)
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
(4.3)
|
|
|
0.7
|
|
(Decrease) increase
in cash and cash equivalents
|
(3.1)
|
|
|
18.2
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the year
|
223.8
|
|
|
214.2
|
|
Cash and cash
equivalents at end of the period
|
$
|
220.7
|
|
|
$
|
232.4
|
|
The following tables contain information regarding the non-GAAP
adjustments used by the Company in the presentation of its
financial results:
WOLVERINE WORLD
WIDE, INC.
|
RECONCILIATION OF
FISCAL 2015 Q2 REPORTED REVENUE TO
|
ADJUSTED REVENUE
ON A CONSTANT CURRENCY BASIS*
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
Fiscal 2015 Q2
|
|
Foreign Exchange
Impact
|
|
Fiscal 2015 Q2
Constant Currency Basis
|
|
GAAP Basis
Fiscal 2014 Q2
|
|
Constant
Currency Growth
|
|
Reported
Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
630.1
|
|
|
$
|
13.5
|
|
|
$
|
643.6
|
|
|
$
|
613.5
|
|
|
4.9
|
%
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
FISCAL 2015 Q2 REPORTED REVENUE
|
GROWTH TO ADJUSTED
REVENUE GROWTH*
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
GAAP Basis
Revenue
|
|
Foreign
Exchange
Impact
|
|
Adjustments
(1)
|
|
As Adjusted
Revenue
|
|
|
|
|
|
|
|
|
Fiscal 2015
Q2
|
$
|
630.1
|
|
|
$
|
13.5
|
|
|
|
|
$
|
643.6
|
|
|
|
|
|
|
|
|
|
Fiscal 2014
Q2
|
$
|
613.5
|
|
|
|
|
$
|
(11.6)
|
|
|
$
|
601.9
|
|
|
|
|
|
|
|
|
|
Revenue
Growth
|
2.7
|
%
|
|
|
|
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2014 Q2
Adjustments include the impact from planned retail store closures
associated with the Strategic Realignment Plan and the termination
of the Patagonia license agreement.
|
RECONCILIATION OF
FISCAL 2015 Q2 REPORTED REVENUE TO
|
ADJUSTED REVENUE
ON A CONSTANT CURRENCY BASIS*
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
Fiscal 2015 Q2
|
|
Foreign Exchange
Impact
|
|
Fiscal 2015
Q2 Constant Currency
Basis
|
|
GAAP Basis
Fiscal 2014 Q2
|
|
Constant
Currency Growth
|
|
Reported
Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Lifestyle
Group
|
$
|
253.4
|
|
|
$
|
2.6
|
|
|
$
|
256.0
|
|
|
$
|
264.1
|
|
|
(3.1)
|
%
|
|
(4.1)
|
%
|
Performance
Group
|
223.3
|
|
|
7.8
|
|
|
231.1
|
|
|
211.2
|
|
|
9.4
|
|
|
5.7
|
|
Heritage
Group
|
127.4
|
|
|
2.7
|
|
|
130.1
|
|
|
113.5
|
|
|
14.6
|
|
|
12.2
|
|
Other
|
26.0
|
|
|
0.4
|
|
|
26.4
|
|
|
24.7
|
|
|
6.9
|
|
|
5.3
|
|
Total
|
$
|
630.1
|
|
|
$
|
13.5
|
|
|
$
|
643.6
|
|
|
$
|
613.5
|
|
|
4.9
|
%
|
|
2.7
|
%
|
RECONCILIATION OF
REPORTED OPERATING
|
PROFIT TO ADJUSTED
OPERATING PROFIT*
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
GAAP Basis
Operating Profit
|
|
Adjustments
(1)
|
|
As Adjusted
Operating Profit
|
|
|
|
|
|
|
Fiscal 2015
Q2
|
$
|
47.6
|
|
|
$
|
3.7
|
|
|
$
|
51.3
|
|
|
|
|
|
|
|
Operating
margin
|
7.6
|
%
|
|
|
|
8.1
|
%
|
|
|
|
|
|
|
Fiscal 2014
Q2
|
$
|
49.0
|
|
|
$
|
6.0
|
|
|
$
|
55.0
|
|
|
|
|
|
|
|
Operating
margin
|
8.0
|
%
|
|
|
|
9.0
|
%
|
|
|
(1)
|
Fiscal 2015 Q2
Adjustments include Restructuring and Impairment Costs. Fiscal 2014
Q2 Adjustments include Acquisition-Related Integration and
Restructuring Costs.
|
RECONCILIATION OF
REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS*
|
(Unaudited)
|
|
|
|
|
|
|
|
GAAP Basis
EPS
|
|
Adjustments
(1)
|
|
As Adjusted
EPS
|
|
|
|
|
|
|
Fiscal 2015
Q2
|
$
|
0.24
|
|
|
$
|
0.03
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
Fiscal 2014
Q2
|
$
|
0.27
|
|
|
$
|
0.04
|
|
|
$
|
0.31
|
|
|
|
(1)
|
Fiscal 2015 Q2
Adjustments include Restructuring and Impairment Costs. Fiscal 2014
Q2 Adjustments include Acquisition-Related Integration and
Restructuring Costs.
|
RECONCILIATION OF
REPORTED DEBT TO NET DEBT*
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
Fiscal 2015
Q2
|
|
Fiscal 2014
Q2
|
|
|
|
|
GAAP reported
debt
|
$
|
833.1
|
|
|
$
|
1,131.3
|
|
Cash and cash
equivalents
|
(220.7)
|
|
|
(232.4)
|
|
Net debt
|
$
|
612.4
|
|
|
$
|
898.9
|
|
RECONCILIATION OF
FISCAL 2015 Q2 REPORTED REVENUE GROWTH BY GEOGRAPHY
TO
|
ADJUSTED REVENUE
GROWTH BY GEOGRAPHY ON A CONSTANT CURRENCY BASIS*
|
(Unaudited)
|
|
|
|
|
|
|
|
Constant
Currency
Growth
|
|
Foreign
Exchange
Impact
|
|
GAAP Basis
Reported
Growth
|
|
|
|
|
|
|
Revenue
growth:
|
|
|
|
|
|
North
America
|
1.3
|
%
|
|
(0.7)
|
%
|
|
0.6
|
%
|
EMEA
|
10.0
|
|
|
(11.4)
|
|
|
(1.4)
|
|
Asia
Pacific
|
56.9
|
|
|
(1.6)
|
|
|
55.3
|
|
Latin
America
|
5.1
|
|
|
(6.5)
|
|
|
(1.4)
|
|
RECONCILIATION OF
FISCAL 2015 FULL-YEAR REPORTED REVENUE GUIDANCE
|
TO ADJUSTED
REVENUE GUIDANCE ON A CONSTANT CURRENCY BASIS*
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
GAAP
Basis
Full-Year 2015
Guidance
|
|
Foreign
Exchange
Impact
|
|
Full-Year 2015
Guidance
Constant
Currency Basis
|
|
|
|
|
|
|
Revenue
|
$
2,820 - 2,850
|
|
$
|
70.0
|
|
|
$
2,890 - 2,920
|
Percentage
growth
|
2.0 -
3.0%
|
|
|
|
5.0 -
6.0%
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
FISCAL 2015 FULL-YEAR REPORTED DILUTED
|
EPS GUIDANCE TO
ADJUSTED DILUTED EPS GUIDANCE*
|
(Unaudited)
|
|
|
|
|
|
|
|
GAAP
Basis
Full-Year 2015
Guidance
|
|
Adjustments
(1)
|
|
As
Adjusted
Full-Year 2015
Guidance
|
|
|
|
|
|
|
Diluted earnings per
share
|
$ 1.39
- 1.46
|
|
$
|
0.14
|
|
|
$ 1.53
- 1.60
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2015 Full-Year
Guidance Adjustments include estimated Restructuring and Impairment
Costs and estimated Debt Extinguishment Costs.
|
RECONCILIATION OF
FISCAL 2015 FULL-YEAR ADJUSTED DILUTED EPS GUIDANCE
|
TO ADJUSTED
DILUTED EPS GUIDANCE ON A CONSTANT CURRENCY BASIS*
|
(Unaudited)
|
|
|
|
|
|
|
|
As
Adjusted
Full-Year 2015
Guidance
|
|
Foreign
Exchange
Impact
|
|
As
Adjusted
Full-Year 2015
Guidance
Constant
Currency Basis
|
|
|
|
|
|
|
Diluted earnings per
share
|
$ 1.53
- 1.60
|
|
$
|
0.15
|
|
|
$ 1.68
- 1.75
|
|
|
|
|
|
|
|
|
*
|
To supplement the
consolidated financial statements presented in accordance with
Generally Accepted Accounting Principles ("GAAP"), the Company
describes what certain financial measures would have been if
acquisition-related integration costs, restructuring and impairment
costs and debt extinguishment costs were excluded. The
Company also describes the revenue impact from planned retail store
closures associated with the Strategic Realignment Plan and the
termination of the Patagonia license agreement. The Company
believes these non-GAAP measures provide useful information to both
management and investors to increase comparability to the prior
period by adjusting for certain items that may not be indicative of
core operating measures and to better identify trends in our
business. The adjusted financial results are used by
management to, and allow investors to, evaluate the operating
performance of the Company on a comparable basis. The Company
has defined net debt as debt less cash and cash equivalents.
The Company believes that netting these sources of cash against
debt provides a clearer picture of the future demands on cash to
repay debt. The Company evaluates results of operations on
both a reported and a constant currency basis. The constant
currency presentation, which is a non-GAAP measure, excludes the
impact of fluctuations in foreign currency exchange rates. The
Company believes providing constant currency information provides
valuable supplemental information regarding results of operations,
consistent with how the Company evaluates performance. The Company
calculates constant currency by converting the current-period local
currency financial results using the prior period exchange rates
and comparing these adjusted amounts to our current period reported
results. Management does not, nor should investors, consider such
non-GAAP financial measures in isolation from, or as a substitution
for, financial information prepared in accordance with GAAP.
A reconciliation of all non-GAAP measures included in this press
release, to the most directly comparable GAAP measures, are found
in the financial tables above.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wolverine-worldwide-reports-record-second-quarter-2015-revenue-reaffirms-full-year-adjusted-earnings-per-share-guidance-300115953.html
SOURCE Wolverine Worldwide