ROCKFORD, Mich., Feb. 22, 2017 /PRNewswire/ -- Wolverine
World Wide, Inc. (NYSE: WWW) today reported financial results for
the fourth quarter ended December 31,
2016. Adjusted financial results exclude restructuring and
impairment costs, organizational transformation costs, and debt
extinguishment and other costs. References to underlying
revenue indicate reported revenue adjusted for the impact of
foreign exchange, retail store closures, and the exit of the Cushe
business.
"Our diverse portfolio of global brands, exceptional operating
platform, and strong business model continue to fuel a powerful
earnings engine, even when faced with the current retail
environment," said Blake W. Krueger,
Wolverine Worldwide's Chairman, Chief Executive Officer and
President. "Revenue finished in line with our original
outlook entering the year, and we delivered solid adjusted
earnings. Our team worked diligently throughout 2016 to
execute on our new strategic platform, the WOLVERINE WAY FORWARD -
investing in consumer insights, creating a more robust product
pipeline with new innovation, and improving profitability through
operational excellence. As a result, we are well positioned
going into 2017 to deliver stronger earnings and perform in what we
believe will be a consumer and retail environment that we refer to
internally as the 'new normal.'"
FOURTH-QUARTER 2016 REVIEW
- Reported revenue of $729.6
million, down 2.9% versus the prior year. Underlying
revenue grew 0.1% versus the prior year.
- Reported gross margin of 36.6%, compared to 36.2% in the prior
year. Adjusted gross margin on a constant currency basis was
37.7%, up 110 basis points versus the prior year.
- Reported operating margin was 2.1%, compared to 1.9% in the
prior year. Adjusted operating margin on a constant currency
basis was 7.3%, up 140 basis points versus the prior year.
- Reported diluted loss per share was $0.02, compared to earnings per share of
$0.12 in the prior year.
Adjusted diluted earnings per share were $0.33, and, on a constant currency basis, were
$0.36, compared to $0.33 in the prior year.
- Inventory at the end of the quarter was down 25.3% versus the
prior year, meaningfully better than expected.
- Cash generated by operating activities in the quarter was
$153.1 million, up $47.4 million or 44.8% versus the prior
year.
- The Company repurchased 2,084,582 shares during the quarter at
an average price of $22.08 per
share.
FULL-YEAR 2016 REVIEW
- Reported revenue of $2,494.6
million, down 7.3% versus the prior year. Underlying
revenue declined 4.9% versus the prior year.
- Reported gross margin of 38.5%, compared to 39.1% in the prior
year. Adjusted gross margin on a constant currency basis was
39.7%, up 50 basis points versus the prior year.
- Reported operating margin was 6.4%, compared to 7.5% in the
prior year. Adjusted operating margin on a constant currency
basis was 9.3%, up 40 basis points versus the prior year.
- Reported diluted earnings per share were $0.89, compared to $1.20 in the prior year. Adjusted diluted
earnings per share were $1.36, and,
on a constant currency basis, were $1.52, compared to $1.45 in the prior year.
- Cash generated by operating activities for the year was
$296.3 million, up $80.8 million or 37.5% versus the prior
year.
- The Company closed 101 stores during 2016 as part of its
omnichannel transformation initiative.
- The Company completed a refinancing of its debt, which is
expected to result in approximately $30
million of interest savings through 2020 and provide more
flexibility for use of cash.
- The Company repurchased 2,838,919 shares during fiscal 2016 at
an average price of $21.80 per
share.
"We are pleased with the strong finish to the year and the
incredible progress made on our operational excellence initiatives
throughout 2016," stated Mike
Stornant, Senior Vice President and Chief Financial Officer.
"We exercised strong working capital management, reducing
accounts receivable by nearly $36
million and lowering inventory levels by $118 million, or 25% year-over-year, while
expanding gross margins in the fourth quarter. All of this
helped to deliver a 37% increase in operating cash flow in
2016. Over the past year, we worked hard to improve the
fundamentals of the business, and this approach served us well not
only in delivering the year's results but also in strengthening the
Company for the future. Looking ahead, we believe we have a
clear strategic direction and remain focused on improving
profitability to invest in organic growth and to return value to
our shareholders."
FISCAL 2017 OUTLOOK
The Company enters 2017 prepared to drive earnings growth
despite expectations that the macroeconomic challenges will
persist, the U.S. dollar will remain strong, and the global retail
environment will remain tepid with certain channels facing
continued pressure. For fiscal 2017, the Company expects:
- Reported revenue in the range of $2.270
billion to $2.370 billion, a decline of approximately 9.0%
to 5.0%. Underlying revenue is expected in the range of down
2.3% to growth of 1.9%, reflecting approximately $160 million to $180 million of impact from
currency and store closures.
- Slight gross margin improvement due to lower product costs and
supply chain efficiencies partially offset by negative currency
impact and mix impact from fewer stores.
- Reported operating margin in the range of 7.9% to 8.5% and
adjusted operating margin in the range of 9.9% to 10.4%, resulting
from operational excellence initiatives focused on a supply chain
optimization, omnichannel transformation, and operational
efficiencies.
- A reported effective tax rate range in the mid-twenties, and an
adjusted effective tax rate range in the high-twenties.
- Diluted weighted average shares outstanding in the range of
95.0 million to 96.0 million.
- Reported diluted earnings per share in the range of
$1.19 to $1.29. Adjusted
diluted earnings per share are expected in the range of
$1.45 to $1.55. On a constant
currency basis, adjusted earnings per share in the range of
$1.53 to $1.63.
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®, 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: the Company's ability to
successfully execute key strategic initiatives, the Company's
ability to deliver strong earnings; the advantages of the Company's
diversified portfolio, operating platform and business model; the
Company's ability to improve profitability, invest in organic
growth and return value to shareholders; and the Company's fiscal
2017 outlook and guidance. 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: changes
in general economic conditions, employment rates, business
conditions, interest rates, tax policies and other factors
affecting consumer spending in the markets and regions in which the
Company's products are sold; the inability for any reason to
effectively compete in global footwear, apparel and consumer-direct
markets; the inability to maintain positive brand images and
anticipate, understand and respond to changing footwear and apparel
trends and consumer preferences; the inability to effectively
manage inventory levels; increases or changes in duties, tariffs,
quotas or applicable assessments in countries of import and export;
currency fluctuations; currency restrictions; capacity constraints,
production disruptions, quality issues, price increases or other
risks associated with foreign sourcing; the cost and availability
of raw materials, inventories, services and labor for owned and
contract manufacturers; labor disruptions; changes in relationships
with, including the loss of, significant wholesale customers; 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; risks related to the significant
investment in, and performance of, the Company's consumer-direct
operations; risks related to the expanding into new markets and
complementary product categories as well as consumer-direct
operations; the impact of seasonality and unpredictable weather
conditions; changes in general economic conditions and/or the
credit markets on the Company's distributors, suppliers and
customers; increase in the Company's effective tax rates; failure
of licensees or distributors to meet planned annual sales goals or
to make timely payments to the Company; the risks of doing business
in developing countries, and politically or economically volatile
areas; the ability to secure and protect owned intellectual
property or use licensed intellectual property; the impact of
regulation, regulatory and legal proceedings and legal compliance
risks; the potential breach of the Company's databases, or those of
its vendors, which contain certain personal information or payment
card data; problems affecting the Company's distribution system,
including service interruptions at shipping and receiving ports;
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 risk of impairment to goodwill and other acquired
intangibles; the success of the Company's consumer-direct
realignment initiatives; changes in future pension funding
requirements and pension expenses; 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)
|
|
|
Quarter
Ended
|
|
Fiscal Year
Ended
|
|
December 31,
2016
|
|
January 2,
2016
|
|
December 31,
2016
|
|
January 2,
2016
|
|
Revenue
|
$
|
729.6
|
|
|
$
|
751.2
|
|
|
$
|
2,494.6
|
|
|
$
|
2,691.6
|
|
|
Cost of goods
sold
|
458.3
|
|
|
476.0
|
|
|
1,526.4
|
|
|
1,636.9
|
|
|
Restructuring
costs
|
4.1
|
|
|
3.0
|
|
|
8.3
|
|
|
3.0
|
|
|
Gross
profit
|
267.2
|
|
|
272.2
|
|
|
959.9
|
|
|
1,051.7
|
|
|
Gross
margin
|
36.6
|
%
|
|
36.2
|
%
|
|
38.5
|
%
|
|
39.1
|
%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
223.5
|
|
|
231.1
|
|
|
758.0
|
|
|
816.0
|
|
|
Restructuring and
impairment costs
|
28.6
|
|
|
27.1
|
|
|
42.0
|
|
|
34.6
|
|
|
Operating
expenses
|
252.1
|
|
|
258.2
|
|
|
800.0
|
|
|
850.6
|
|
|
Operating expenses
as a % of revenue
|
34.6
|
%
|
|
34.4
|
%
|
|
32.1
|
%
|
|
31.6
|
%
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
15.1
|
|
|
14.0
|
|
|
159.9
|
|
|
201.1
|
|
|
Operating
margin
|
2.1
|
%
|
|
1.9
|
%
|
|
6.4
|
%
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
9.9
|
|
|
10.7
|
|
|
34.8
|
|
|
38.2
|
|
|
Debt extinguishment
and other costs
|
17.6
|
|
|
—
|
|
|
18.1
|
|
|
1.6
|
|
|
Other income,
net
|
(4.5)
|
|
|
(4.6)
|
|
|
(3.5)
|
|
|
(3.3)
|
|
|
Total other
expenses
|
23.0
|
|
|
6.1
|
|
|
49.4
|
|
|
36.5
|
|
|
Earnings (loss)
before income taxes
|
(7.9)
|
|
|
7.9
|
|
|
110.5
|
|
|
164.6
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(5.5)
|
|
|
(4.0)
|
|
|
23.0
|
|
|
41.4
|
|
|
Effective tax
rate
|
69.7
|
%
|
|
(51.0)
|
%
|
|
20.8
|
%
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
(2.4)
|
|
|
11.9
|
|
|
87.5
|
|
|
123.2
|
|
|
|
|
|
|
|
|
|
|
Less: net earnings
(loss) attributable to noncontrolling interests
|
(0.5)
|
|
|
0.3
|
|
|
(0.2)
|
|
|
0.4
|
|
|
Net earnings (loss)
attributable to Wolverine World Wide, Inc.
|
$
|
(1.9)
|
|
|
$
|
11.6
|
|
|
$
|
87.7
|
|
|
$
|
122.8
|
|
|
Diluted earnings
(loss) per share
|
$
|
(0.02)
|
|
|
$
|
0.12
|
|
|
$
|
0.89
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
Net earnings used to
calculate diluted earnings (loss) per share
|
$
|
(2.0)
|
|
|
$
|
11.3
|
|
|
$
|
85.7
|
|
|
$
|
120.1
|
|
|
Shares used to
calculate earnings (loss) per share
|
95.8
|
|
|
97.4
|
|
|
96.2
|
|
|
100.0
|
|
|
Weighted average
shares outstanding
|
98.3
|
|
|
100.0
|
|
|
99.0
|
|
|
102.0
|
|
|
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED BALANCE SHEETS
(Unaudited)
(In
millions)
|
|
|
December 31,
2016
|
|
January 2,
2016
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
369.8
|
|
|
$
|
194.1
|
|
|
Accounts receivables,
net
|
263.3
|
|
|
298.9
|
|
|
Inventories,
net
|
348.7
|
|
|
466.6
|
|
|
Other current
assets
|
49.6
|
|
|
54.2
|
|
|
Total current
assets
|
1,031.4
|
|
|
1,013.8
|
|
|
Property, plant and
equipment, net
|
146.1
|
|
|
131.6
|
|
|
Goodwill and other
indefinite-lived intangibles
|
1,102.8
|
|
|
1,114.5
|
|
|
Other non-current
assets
|
151.4
|
|
|
174.5
|
|
|
Total
assets
|
$
|
2,431.7
|
|
|
$
|
2,434.4
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
|
293.3
|
|
|
$
|
336.4
|
|
|
Current maturities of
long-term debt
|
37.5
|
|
|
16.9
|
|
|
Borrowings under
revolving credit agreements and other short-term notes
|
2.9
|
|
|
—
|
|
|
Total current
liabilities
|
333.7
|
|
|
353.3
|
|
|
Long-term
debt
|
780.3
|
|
|
792.9
|
|
|
Other non-current
liabilities
|
343.6
|
|
|
318.5
|
|
|
Stockholders'
equity
|
974.1
|
|
|
969.7
|
|
|
Total liabilities and
stockholders' equity
|
$
|
2,431.7
|
|
|
$
|
2,434.4
|
|
|
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In
millions)
|
|
|
Fiscal Year
Ended
|
|
December 31,
2016
|
|
January 2,
2016
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
Net
earnings
|
$
|
87.5
|
|
|
$
|
123.2
|
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
43.5
|
|
|
48.7
|
|
|
Stock-based
compensation expense
|
22.8
|
|
|
18.7
|
|
|
Excess tax benefits
from stock-based compensation
|
(0.6)
|
|
|
(4.9)
|
|
|
Pension and SERP
expense
|
10.4
|
|
|
27.9
|
|
|
Debt extinguishment
costs
|
17.4
|
|
|
1.6
|
|
|
Restructuring and
impairment costs
|
50.3
|
|
|
37.6
|
|
|
Other
|
(33.0)
|
|
|
(39.0)
|
|
|
Changes in operating
assets and liabilities
|
98.0
|
|
|
1.7
|
|
|
Net cash provided by
operating activities
|
296.3
|
|
|
215.5
|
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
Additions to
property, plant and equipment
|
(55.3)
|
|
|
(46.4)
|
|
|
Proceeds from sale of
a business
|
7.8
|
|
|
—
|
|
|
Investment in joint
venture
|
(0.5)
|
|
|
—
|
|
|
Other
|
9.6
|
|
|
(3.6)
|
|
|
Net cash used in
investing activities
|
(38.4)
|
|
|
(50.0)
|
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
Net borrowings under
revolving credit agreements and other short-term notes
|
3.1
|
|
|
—
|
|
|
Borrowings of
long-term debt
|
400.0
|
|
|
450.0
|
|
|
Payments on long-term
debt
|
(393.8)
|
|
|
(530.9)
|
|
|
Payments of debt
issuance and debt extinguishment costs
|
(17.9)
|
|
|
(2.4)
|
|
|
Cash dividends
paid
|
(23.5)
|
|
|
(24.4)
|
|
|
Purchase of common
stock for treasury
|
(52.7)
|
|
|
(92.6)
|
|
|
Purchases of shares
under employee stock plans
|
(4.9)
|
|
|
(7.7)
|
|
|
Proceeds from the
exercise of stock options
|
7.4
|
|
|
13.3
|
|
|
Excess tax benefits
from stock-based compensation
|
0.6
|
|
|
4.9
|
|
|
Contributions from
noncontrolling interests
|
2.2
|
|
|
2.5
|
|
|
Net cash used in
financing activities
|
(79.5)
|
|
|
(187.3)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
(2.7)
|
|
|
(7.9)
|
|
|
Increase (decrease)
in cash and cash equivalents
|
175.7
|
|
|
(29.7)
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the year
|
194.1
|
|
|
223.8
|
|
|
Cash and cash
equivalents at end of the year
|
$
|
369.8
|
|
|
$
|
194.1
|
|
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.
|
|
|
Q4 2016
RECONCILIATION TABLES
|
|
|
RECONCILIATION OF
REPORTED REVENUE TO
UNDERLYING
REVENUE*
(Unaudited)
(In
millions)
|
|
|
GAAP Basis
Fiscal 2016
Q4
|
|
Foreign Exchange
Impact
|
|
Fiscal
2016 Q4
Constant
Currency
Basis
|
|
GAAP
Basis
Fiscal 2015
Q4
|
|
Adjustments
(1)
|
|
Fiscal
2015 Q4
Adjusted
Basis
|
|
Underlying
Growth
|
|
Reported
Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
729.6
|
|
|
$
|
4.2
|
|
|
$
|
733.8
|
|
|
$
|
751.2
|
|
|
$
|
(18.1)
|
|
|
$
|
733.1
|
|
|
0.1
|
%
|
|
(2.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustments include
the impact from retail store closures and the exit of the Cushe
business.
|
|
RECONCILIATION OF
REPORTED GROSS MARGIN TO ADJUSTED
GROSS MARGIN ON A
CONSTANT CURRENCY BASIS*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
|
|
Foreign
Exchange
Impact
|
|
Adjustments
(1)
|
|
As Adjusted on
a Constant
Currency Basis
|
|
|
|
|
|
|
|
|
|
Gross Profit - Fiscal
2016 Q4
|
$
|
267.2
|
|
|
$
|
5.4
|
|
|
$
|
4.1
|
|
|
$
|
276.7
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
36.6
|
%
|
|
|
|
|
|
37.7
|
%
|
|
|
|
|
|
|
|
|
|
Gross Profit - Fiscal
2015 Q4
|
$
|
272.2
|
|
|
|
|
$
|
3.0
|
|
|
$
|
275.2
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
36.2
|
%
|
|
|
|
|
|
36.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
include the impact from restructuring costs.
|
|
RECONCILIATION OF
REPORTED OPERATING MARGIN TO ADJUSTED
OPERATING MARGIN
ON A CONSTANT CURRENCY BASIS*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
|
|
Foreign
Exchange
Impact
|
|
Restructuring
and Impairment
Costs
|
|
Organizational
Transformation
Costs (1)
|
|
As Adjusted
on a Constant
Currency
Basis
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit -
Fiscal 2016 Q4
|
$
|
15.1
|
|
|
$
|
3.5
|
|
|
$
|
32.7
|
|
|
$
|
2.2
|
|
|
$
|
53.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
2.1
|
%
|
|
|
|
|
|
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit -
Fiscal 2015 Q4
|
$
|
14.0
|
|
|
|
|
$
|
30.1
|
|
|
$
|
—
|
|
|
$
|
44.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
1.9
|
%
|
|
|
|
|
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Organizational
transformation costs include certain third party consulting costs
and certain costs related to distribution center
optimization.
|
|
RECONCILIATION OF
REPORTED DILUTED EPS TO ADJUSTED
DILUTED EPS ON A
CONSTANT CURRENCY BASIS*
(Unaudited)
|
|
|
GAAP Basis
EPS
|
|
Adjustments
(1)
|
|
As Adjusted
EPS
|
|
Foreign
Exchange
Impact
|
|
As Adjusted
EPS On a
Constant
Currency Basis
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2016
Q4
|
$
|
(0.02)
|
|
|
$
|
0.35
|
|
|
$
|
0.33
|
|
|
$
|
0.03
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015
Q4
|
$
|
0.12
|
|
|
$
|
0.21
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments include
the impact of restructuring and impairment costs, organizational
transformation costs and debt extinguishment and other
costs.
|
|
FULL YEAR 2016
RECONCILIATION TABLES
|
|
|
RECONCILIATION OF
REPORTED REVENUE TO
UNDERLYING
REVENUE*
(Unaudited)
(In
millions)
|
|
|
GAAP Basis
Fiscal 2016
|
|
Foreign
Exchange
Impact
|
|
Fiscal
2016
Constant
Currency
Basis
|
|
GAAP
Basis
Fiscal 2015
|
|
Adjustments
(1)
|
|
Fiscal
2015
Adjusted
Basis
|
|
Underlying
Growth
|
|
Reported
Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
2,494.6
|
|
|
$
|
17.1
|
|
|
$
|
2,511.7
|
|
|
$
|
2,691.6
|
|
|
$
|
(49.4)
|
|
|
$
|
2,642.2
|
|
|
(4.9)%
|
|
|
(7.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
include the impact from retail store closures and the exit of the
Cushe business.
|
|
RECONCILIATION OF
REPORTED GROSS MARGIN TO ADJUSTED
GROSS MARGIN ON A
CONSTANT CURRENCY BASIS*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
|
|
Foreign
Exchange Impact
|
|
Adjustments
(1)
|
|
As Adjusted on
a Constant
Currency Basis
|
|
|
|
|
|
|
|
|
|
Gross Profit - Fiscal
2016
|
$
|
959.9
|
|
|
$
|
27.7
|
|
|
$
|
8.3
|
|
|
$
|
995.9
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
38.5
|
%
|
|
|
|
|
|
39.7
|
%
|
|
|
|
|
|
|
|
|
|
Gross Profit - Fiscal
2015
|
$
|
1,051.7
|
|
|
|
|
$
|
3.0
|
|
|
$
|
1,054.7
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
39.1
|
%
|
|
|
|
|
|
39.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments include
the impact from restructuring costs.
|
|
RECONCILIATION OF
REPORTED OPERATING MARGIN TO ADJUSTED
OPERATING MARGIN
ON A CONSTANT CURRENCY BASIS*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
|
|
Foreign
Exchange
Impact
|
|
Restructuring
and
Impairment
Costs
|
|
Organizational
Transformation
Costs (1)
|
|
As Adjusted
on a Constant
Currency
Basis
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit -
Fiscal 2016
|
$
|
159.9
|
|
|
$
|
21.4
|
|
|
$
|
50.3
|
|
|
$
|
2.2
|
|
|
$
|
233.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
6.4
|
%
|
|
|
|
|
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit -
Fiscal 2015
|
$
|
201.1
|
|
|
|
|
$
|
37.6
|
|
|
$
|
—
|
|
|
$
|
238.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
7.5
|
%
|
|
|
|
|
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Organizational
transformation costs include certain third party consulting costs
and certain costs related to distribution center
optimization.
|
|
RECONCILIATION OF
REPORTED DILUTED EPS TO ADJUSTED
DILUTED EPS ON A
CONSTANT CURRENCY BASIS*
(Unaudited)
|
|
|
GAAP Basis
EPS
|
|
Adjustments
(1)
|
|
As Adjusted
EPS
|
|
Foreign
Exchange
Impact
|
|
As Adjusted
EPS On a
Constant
Currency Basis
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2016
|
$
|
0.89
|
|
|
$
|
0.47
|
|
|
$
|
1.36
|
|
|
$
|
0.16
|
|
|
$
|
1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2015
|
$
|
1.20
|
|
|
$
|
0.25
|
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments include
the impact of restructuring and impairment costs, organizational
transformation costs and debt extinguishment and other
costs.
|
|
2017 GUIDANCE
RECONCILIATION TABLES
|
|
|
RECONCILIATION OF
FISCAL 2017 FULL-YEAR REPORTED REVENUE GROWTH
GUIDANCE TO
UNDERLYING REVENUE GROWTH GUIDANCE*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
Full-Year
Revenue
|
|
Foreign
Exchange
Impact
|
|
Adjustments
(1)
|
|
Underlying
Full-
Year Revenue
|
|
|
|
|
|
|
|
|
|
Fiscal 2017 Revenue
Guidance
|
$
|
2,270 -
2,370
|
|
|
$
|
30.0
|
|
|
|
|
$
|
2,300 -
2,400
|
|
|
Fiscal 2016
Revenue
|
$
|
2,494.6
|
|
|
|
|
$
|
(140.0)
|
|
|
$
|
2,354.6
|
|
|
Percentage growth
(decline)
|
|
(9.0) -
(5.0)%
|
|
|
|
|
|
|
|
(2.3) -
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
include the estimated impact from retail store closures.
|
|
RECONCILIATION OF
FISCAL 2017 FULL-YEAR REPORTED OPERATING PROFIT
GUIDANCE TO
ADJUSTED OPERATING PROFIT GUIDANCE*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
Full-Year
Operating Profit
|
|
Adjustments
(1)
|
|
As
Adjusted
Full-Year
Operating Profit
|
|
|
|
|
|
|
|
Fiscal 2017 Operating
Profit Guidance
|
$
180 - 202
|
|
$
|
44.0
|
|
|
$
224 - 246
|
|
Operating
Margin
|
7.9 -
8.5%
|
|
|
|
9.9 -
10.4%
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
include the estimated impact from restructure costs, organizational
transformation costs and operating losses of retail stores expected
to close during fiscal 2017.
|
|
RECONCILIATION OF
FISCAL 2017 FULL-YEAR REPORTED EFFECTIVE TAX RATE
GUIDANCE TO
ADJUSTED EFFECTIVE TAX RATE GUIDANCE*
(Unaudited)
|
|
|
GAAP
Basis
Full-Year
2017
|
|
Adjustments
(1)
|
|
As
Adjusted
Full-Year
2017
|
|
|
|
|
|
|
|
Fiscal 2017 Effective
Tax Rate Guidance
|
23.7 -
25.2%
|
|
3.3
|
%
|
|
27.0 -
28.5%
|
|
|
|
|
|
|
|
|
(1) Fiscal
2017 Full-Year Guidance Adjustments include the estimated tax
impact of restructuring costs, organizational transformation costs
and operating losses of retail stores expected to close during
fiscal 2017.
|
|
RECONCILIATION OF
FISCAL 2017 FULL-YEAR DILUTED EPS GUIDANCE TO ADJUSTED DILUTED EPS
ON A CONSTANT CURRENCY BASIS GUIDANCE*
(Unaudited)
|
|
|
GAAP
Basis
Full-Year
2017
|
|
Adjustments
(1)
|
|
As
Adjusted
Full-Year
2017
|
|
Foreign
Exchange
Impact
|
|
As
Adjusted
Full-Year 2017
Constant
Currency Basis
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share Guidance
|
$ 1.19
- 1.29
|
|
$
|
0.26
|
|
|
$ 1.45
- 1.55
|
|
$
|
0.08
|
|
|
$ 1.53
- 1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
include estimated restructuring costs, organizational
transformation costs and operating losses of retail stores expected
to close during fiscal 2017.
|
|
*
|
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 restructuring and impairment costs and organizational
transformation costs were excluded and for fiscal 2017 guidance,
the operating losses of retail stores expected to close during
fiscal 2017. The Company also describes underlying revenue,
which excludes the impact of foreign exchange, the impact of retail
store closures and the exit of the Cushe business in fiscal 2016.
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 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-fourth-quarter-and-full-year-results-and-announces-2017-outlook-300411407.html
SOURCE Wolverine World Wide, Inc.