TIDMFERG
FY2023 Guidance
Total Company* 2023 Guidance
Net sales Low single digit growth
Adjusted operating margin 9.4% - 9.8%
Interest expense $185 - $195 million
Adjusted effective tax rate Approximately 25%
Capital expenditures $400 - $450 million
*Net sales guidance continues to reflect market outperformance, completed
acquisitions and one additional sales day. Adjusted operating margin narrowed
from previous guidance of 9.3% - 9.9% and interest expense range reduced from
$185 - $205 million.
Kevin Murphy, Ferguson CEO, commented "The year is progressing
as expected and our associates again delivered solid results,
leveraging our scale and core strengths to help our customers
navigate their complex projects. Our balanced business is serving
us well in challenging markets. During the quarter we continued to
take targeted actions to manage the cost base and working capital
to deliver strong cash flows.
"Our financial guidance continues to reflect market
outperformance, both organically and from acquisitions. Our markets
remain attractive over the medium term and our scale and advantaged
platform position us to capitalize on structural tailwinds. Our
strong balance sheet and cash generative model allow us to continue
to invest for organic growth, consolidate our fragmented markets
through acquisitions and return capital to shareholders."
Three months ended April 30,
US$ (In millions,
except per share
amounts) 2023 2022 Change
Reported(1) Adjusted(2) Reported(1) Adjusted(2) Reported Adjusted
Net sales 7,140 7,140 7,284 7,284 (2.0) % (2.0) %
Gross margin 30.0 % 30.0 % 30.3 % 30.3 % (30) bps (30) bps
Operating profit 497 657 712 747 (30.2) % (12.0) %
(280) (110)
Operating margin 7.0 % 9.2 % 9.8 % 10.3 % bps bps
Earnings per share
- diluted 1.63 2.20 2.50 2.50 (34.8) % (12.0) %
Adjusted EBITDA 705 795 (11.3) %
Nine months ended April 30,
US$ (In millions,
except per share
amounts) 2023 2022 Change
Reported(1) Adjusted(2) Reported(1) Adjusted(2) Reported Adjusted
Net sales 21,896 21,896 20,595 20,595 +6.3 % +6.3 %
Gross margin 30.2 % 30.2 % 30.7 % 30.7 % (50) bps (50) bps
Operating profit 1,877 2,103 2,006 2,102 (6.4) % -- %
(110)
Operating margin 8.6 % 9.6 % 9.7 % 10.2 % bps (60) bps
Earnings per share
- diluted 6.28 7.07 6.88 6.93 (8.7) % +2.0 %
Adjusted EBITDA 2,247 2,257 (0.4) %
Net debt(2) : 1.1x 0.8x
Adjusted EBITDA
(1) The results are presented in accordance with U.S. GAAP on a continuing
operations basis.
(2) The Company uses certain non-GAAP measures, which are not defined or
specified under U.S. GAAP. See the section titled "Non-GAAP
Reconciliations and Supplementary Information."
Summary of financial results
Third quarter
Net sales of $7.1 billion were 2.0% below last year primarily
driven by the 1.9% adverse impact from one fewer sales day and the
impact of foreign exchange. Organic revenue declined 2.5% and was
largely offset by acquisition growth of 2.4%. The Company's
decrease in net sales was mainly driven by declines in residential,
partially offset by growth in non-residential sales compared to the
prior year period. As expected, price inflation stepped down from
approximately 10% in the second quarter to approximately 5% in the
third quarter.
Gross margin of 30.0% was 30 basis points lower than last year,
impacted by certain commodity categories. Operating expenses were
diligently managed, with costs sequentially flat to the second
quarter, and we remain focused on productivity and efficiencies
while investing in core capabilities for future growth.
Reported operating profit was $497 million (7.0% operating
margin), 30.2% lower than last year, in part due to branch closure
and software impairment charges. Adjusted operating profit of $657
million (9.2% adjusted operating margin) was 12.0% lower than last
year.
Reported diluted earnings per share was $1.63 (Q3 2022: $2.50),
a decrease of 34.8%, and adjusted diluted earnings per share of
$2.20 decreased 12.0% with the reduction due to lower adjusted
operating profit and higher interest expense, partially offset by
the impact of share repurchases.
Branch closure and software impairment charges
During the quarter we continued to take additional steps to
review and control our cost base. As a result, we recorded a charge
of $20 million related to the closure of 44 smaller,
underperforming branches.
In addition, we have been upgrading portions of our IT systems
to enhance our customer experience and associate productivity. One
of the solutions developed targeted certain branch transactional
processes and was piloted at select locations. We determined during
the third quarter that this solution did not meet our customer
service, speed and efficiency goals and we chose not to proceed
with this component. As a result, we recorded a non-cash impairment
charge of $107 million.
USA - third quarter
Net sales in the US business declined 1.6%, driven by a 1.6%
adverse impact from one fewer selling day. Organic revenue was down
2.5%, offset by 2.5% from acquisitions.
Residential end markets, which comprise just over half of US
revenue, slowed further during the quarter as expected. New
residential housing start and permit activity was relatively stable
on a sequential basis but is significantly below prior year levels,
while repairs, maintenance and improvement ("RMI") work remained
more resilient. Overall, residential revenue declined by
approximately 6% in the third quarter.
Non-residential end markets, representing just under half of US
revenue, continued to moderate with non-residential revenues
growing by approximately 3% in the third quarter. Industrial and
non-residential waterworks projects saw strength in the quarter
and, as expected, we are beginning to see increased levels of
megaproject related bid activity.
Adjusted operating profit of $664 million was 9.8% or $72
million behind last year.
Canada - third quarter
Net sales compressed by 9.5%, with organic revenue decline of
1.5%, a 1.8% adverse impact from one fewer sales day, and a further
6.2% due to the adverse impact of foreign exchange rates. Similar
to the US segment, non-residential end markets have been more
resilient than residential end markets. Adjusted operating profit
of $7 million declined by $13 million compared to last year.
Segmental overview
Three months Nine months
ended April ended April
30, 30,
US$ (In millions) 2023 2022 Change 2023 2022 Change
Net sales:
USA 6,827 6,938 (1.6) % 20,863 19,528 6.8 %
Canada 313 346 (9.5) % 1,033 1,067 (3.2) %
Total net sales 7,140 7,284 (2.0) % 21,896 20,595 6.3 %
Adjusted operating
profit:
USA 664 736 (9.8) % 2,088 2,064 1.2 %
Canada 7 20 (65.0) % 54 77 (29.9) %
Central and other
costs (14) (9) (39) (39)
Total adjusted
operating profit 657 747 (12.0) % 2,103 2,102 -- %
Financial position
Net debt at April 30, 2023 was $3.3 billion and during the
quarter we completed share repurchases of $0.2 billion.
Taking into account the Company's strong financial position, we
have extended the share repurchase program by an additional $0.5
billion, resulting in a remaining balance of approximately $0.7
billion.
We have declared a quarterly dividend of $0.75, having
transitioned from a semi-annual distribution schedule earlier in
the fiscal year. This implies a 9% increase, as compared to a
quarter of the prior year's total dividend, and will be paid on
August 4, 2023 to shareholders on the register as of June 16,
2023.
Subsequent to quarter end we signed a definitive purchase
agreement to acquire S. G. Torrice, an HVAC business with 15
locations in the Northeast, which we expect to complete in the
fourth quarter subject to regulatory approval.
There have been no other significant changes to the financial
position of the Company.
For further information please contact
Investor relations
Brian Lantz, Vice President IR and
Communications Mobile: +1 224 285 2410
Pete Kennedy, Director of Investor Relations Mobile: +1 757 603 0111
Media inquiries
John Pappas, Director of Financial
Communications Mobile: +1 484 790 2727
Investor conference call and webcast
A call with Kevin Murphy, CEO and Bill Brundage, CFO will
commence at 8:30 a.m. ET (1:30 p.m. BST) today. The call will be
recorded and available on our website after the event at
www.corporate.ferguson.com.
Dial in number US: +1 646 787 9445
UK: +44 (0) 20 3936 2999
Ask for the Ferguson call quoting 519626. To access the call via
your laptop, tablet or mobile device please go to
www.corporate.ferguson.com. If you have technical difficulties,
please click the "Listen by Phone" button on the webcast player and
dial the number provided.
About us
Ferguson plc (NYSE: FERG; LSE: FERG) is a leading value-added
distributor in North America providing expertise, solutions and
products from infrastructure, plumbing and appliances to HVAC,
fire, fabrication and more. We exist to make our customers' complex
projects simple, successful and sustainable. Ferguson is
headquartered in the U.K., with its operations and associates
solely focused on North America and managed from Newport News,
Virginia. For more information, please visit
www.corporate.ferguson.com or follow us on LinkedIn
www.linkedin.com/company/ferguson-enterprises.
Analyst resources
For further information on quarterly financial breakdowns, visit
www.corporate.ferguson.com on the Investors menu under Analyst
Consensus and Resources.
Provisional financial calendar
Q4 Results for period ending July 31, September 26, 2023
2023
Timetable for the quarterly dividend
The timetable for payment of the quarterly dividend of $0.75 per
share is as follows:
Ex-dividend date: June 15, 2023
Record date: June 16, 2023
Payment date: August 4, 2023
The quarterly dividend is declared in U.S. dollars and since
March 2021, the default currency for dividends is also U.S.
dollars. Those shareholders who have not elected to receive the
dividend in pounds sterling and who would like to make such an
election may do so online by going to Computershare's Investor
Center and returning the completed form to the address located in
the upper--right corner of the form. The deadline to elect to
receive the quarterly dividend in pounds sterling, or to amend an
existing election, is 5:00 p.m. ET on July 7, 2023 and any requests
should be made in good time ahead of that date.
The form is available at
www--us.computershare.com/investor/#home and navigating to Company
Info > FERG > GBP Dividend Election and Mandate Form.
The completion of cross-border movements of shares between the
U.K. and the U.S. is contingent upon the receiving broker
identifying and acknowledging any such movements. Where a
cross-border movement of shares has been initiated but not
completed by the relevant dividend record date (being June 16, 2023
for this quarterly dividend), there is a risk that the dividend in
respect of such shares will not be received on the dividend payment
date. Accordingly, shareholders are advised not to initiate any
cross-border movements of shares during the period from June 14,
2023 through June 16, 2023 inclusive.
Cautionary note on forward-looking statements
Certain information included in this announcement is
forward-looking, including within the meaning of the Private
Securities Litigation Reform Act of 1995, and involves risks,
assumptions and uncertainties that could cause actual results to
differ materially from those expressed or implied by
forward-looking statements. Forward-looking statements cover all
matters which are not historical facts and include, without
limitation, statements or guidance regarding or relating to our
future financial position, results of operations and growth,
projected interest in and ownership of our ordinary shares by
domestic US investors, plans and objectives for future
capabilities, risks associated with changes in global and regional
economic, market and political conditions, ability to manage supply
chain challenges, ability to manage the impact of product price
fluctuations, our financial condition and liquidity, legal or
regulatory changes, and other statements concerning the success of
our business and strategies. Forward-looking statements can be
identified by the use of forward-looking terminology, including
terms such as "believes", "estimates", "anticipates", "potential",
"expects", "forecasts", "guidance", "intends", "continues",
"plans", "projects", "goal", "target", "aim", "may", "will",
"would", "could" or "should" or, in each case, their negative or
other variations or comparable terminology and other similar
references to future periods. Forward-looking statements speak only
as of the date on which they are made. They are not assurances of
future performance and are based only on our current beliefs,
expectations and assumptions regarding the future of our business,
future plans and strategies, projections, anticipated events and
trends, the economy and other future conditions. Therefore, you
should not place undue reliance on any of these forward-looking
statements. Although we believe that the forward-looking statements
contained in this announcement are based on reasonable assumptions,
you should be aware that many factors could cause actual results to
differ materially from those in such forward-looking statements,
including but not limited to: weakness in the economy, market
trends, uncertainty and other conditions in the markets in which we
operate, and other factors beyond our control, including any
macroeconomic or other consequences of the current conflict in
Ukraine; failure to rapidly identify or effectively respond to
direct and/or end customers' wants, expectations or trends,
including costs and potential problems associated with new or
upgraded information technology systems; decreased demand for our
products as a result of operating in highly competitive industries
and the impact of declines in the residential and non-residential
markets, as well as the RMI and new construction markets; changes
in competition, including as a result of market consolidation;
failure of a key information technology system or process as well
as exposure to fraud or theft resulting from payment-related risks;
privacy and protection of sensitive data failures, including
failures due to data corruption, cybersecurity incidents or network
security breaches; ineffectiveness of or disruption in our domestic
or international supply chain or our fulfillment network, including
delays in inventory, increased delivery costs or lack of
availability; failure to effectively manage and protect our
facilities and inventory; unsuccessful execution of our operational
strategies; failure to attract, retain and motivate key associates;
exposure of associates, contractors, customers, suppliers and other
individuals to health and safety risks; inherent risks associated
with acquisitions, partnerships, joint ventures and other business
combinations, dispositions or strategic transactions; regulatory,
product liability and reputational risks and the failure to achieve
and maintain a high level of product and service quality; inability
to renew leases on favorable terms or at all, as well as any
remaining obligations under a lease if we close a facility; changes
in, interpretations of, or compliance with tax laws in the United
States, the United Kingdom, Switzerland or Canada; our indebtedness
and changes in our credit ratings and outlook; fluctuations in
foreign currency and product prices (e.g., commodity-priced
materials, inflation/deflation); funding risks related to our
defined benefit pension plans; legal proceedings as well as failure
to comply with domestic and foreign laws and regulations or the
occurrence of unforeseen developments such as litigation; risks
associated with the relocation of our primary listing to the United
States and any volatility in our share price and shareholder base
in connection therewith; the costs and risk exposure relating to
environmental, social and governance matters; adverse impacts
caused by the COVID--19 pandemic (or related variants); and other
risks and uncertainties set forth under the heading "Risk Factors"
in our Quarterly Report on Form 10-Q for the fiscal quarter ended
January 31, 2023 as filed with the SEC on March 8, 2023, our Annual
Report on Form 10-K for the fiscal year ended July 31, 2022 as
filed with the SEC on September 27, 2022 and in other filings we
make with the SEC in the future.
Additionally, forward-looking statements regarding past trends
or activities should not be taken as a representation that such
trends or activities will continue in the future. Other than in
accordance with our legal or regulatory obligations, we undertake
no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Ferguson plc
Non-GAAP Reconciliations and Supplementary Information
(unaudited)
Non-GAAP items
This announcement contains certain financial information that is
not presented in conformity with U.S. GAAP. These non-GAAP measures
include adjusted operating profit, adjusted operating margin,
adjusted net income, adjusted earnings per share - diluted,
adjusted EBITDA, adjusted effective tax rate, net debt and net debt
to adjusted EBITDA ratio. The Company believes that these non-GAAP
measures provide users of the Company's financial information with
additional meaningful information to assist in understanding
financial results and assessing the Company's performance from
period to period. Management believes these measures are important
indicators of operations because they exclude items that may not be
indicative of our core operating results and provide a better
baseline for analyzing trends in our underlying businesses, and
they are consistent with how business performance is planned,
reported and assessed internally by management and the Board. Such
non-GAAP adjustments include amortization of acquired intangible
assets, discrete tax items, and any other items that are
non-recurring. Non-recurring items may include business
restructuring charges, corporate restructuring charges, which
includes costs associated with the Company's listing in the United
States, gains or losses on the disposals of businesses which by
their nature do not reflect primary operations, as well as certain
other items deemed non-recurring in nature and/or that are not a
result of the Company's
primary operations. Because non-GAAP financial measures are not
standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names. These non-GAAP financial measures should
not be considered in isolation or as a substitute for results
reported under U.S. GAAP. These non-GAAP financial measures reflect
an additional way of viewing aspects of operations that, when
viewed with U.S. GAAP results, provide a more complete
understanding of the business. The Company strongly encourages
investors and shareholders to review the Company's financial
statements and publicly filed reports in their entirety and not to
rely on any single financial measure.
The Company does not provide a reconciliation of forward-looking
non-GAAP financial measures to the most directly comparable U.S.
GAAP financial measures on a forward-looking basis because it is
unable to predict with reasonable certainty or without unreasonable
effort non-recurring items, such as those described above, that may
arise in the future. The variability of these items is
unpredictable and may have a significant impact.
Summary of Organic Revenue
Management evaluates organic revenue as it provides a consistent
measure of the change in revenue year-on-year. Organic revenue
growth (or decline) is determined as the growth (or decline) in
total reported revenue excluding the growth (or decline)
attributable to currency exchange rate fluctuations, sales days,
acquisitions and disposals, divided by the preceding financial
year's revenue at the current year's exchange rates.
A summary of the Company's historical revenue and organic
revenue growth is below:
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022
Organic Organic Organic Organic Organic
Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue
USA (1.6)% (2.5)% 5.4% 2.6% 17.4% 13.0% 22.1% 19.8% 23.9% 23.7%
Canada (9.5)% (1.5)% (4.5)% 3.0% 3.6% 8.2% 10.5% 14.2% 8.8% 11.3%
Continuing
operations (2.0)% (2.5)% 4.9% 2.7% 16.6% 12.7% 21.4% 19.5% 23.1% 23.1%
For further details regarding organic revenue growth, visit
www.corporate.ferguson.com on the Investors menu under Analyst
Consensus and Resources.
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted
EBITDA
Three months ended Nine months ended
April 30, April 30,
(In millions) 2023 2022 2023 2022
Net income $336 $546 $1,305 $1,542
Income from discontinued
operations (net of tax) -- -- -- (25)
Income from continuing
operations 336 546 1,305 1,517
Provision for income taxes 111 144 429 416
Interest expense, net 48 22 136 71
Other expense, net 2 -- 7 2
Operating profit 497 712 1,877 2,006
Corporate restructurings(1) -- 5 -- 12
Impairments and other
charges(2) 127 -- 127 --
Amortization of acquired
intangibles 33 30 99 84
Adjusted Operating Profit 657 747 2,103 2,102
Depreciation & impairment
of PP&E 38 35 111 105
Amortization & impairment
of non-acquired
intangibles 10 13 33 50
Adjusted EBITDA $705 $795 $2,247 $2,257
(1) For the three and nine months ended April 30, 2022, corporate
restructuring costs related to the incremental costs of the Company's
listing in the United States.
(2) For the three and nine months ended April 30, 2023, impairments and
other charges related to the $107 million in software impairment
charges in the United States, as well as $20 million in charges
associated with the closure of certain smaller, underperforming
branches in the United States.
Net Debt : Adjusted EBITDA Reconciliation
To assess the appropriateness of its capital structure, the
Company's principal measure of financial leverage is net debt to
adjusted EBITDA. The Company aims to operate with investment grade
credit metrics and keep this ratio within one to two times.
Net debt
Net debt comprises bank overdrafts, bank and other loans and
derivative financial instruments, excluding lease liabilities, less
cash and cash equivalents. Long-term debt is presented net of debt
issuance costs.
As of April 30,
(In millions) 2023 2022
Long-term debt(1) $3,839 $3,221
Short-term debt(2) 87 300
Derivative liabilities (assets) 12 14
Cash and cash equivalents (625) (1,160)
Net debt $3,313 $2,375
(1) The increase in long-term debt as of April 30, 2023 primarily reflects
the $500 million in term loans entered into in October 2022, net of
other borrowings and repayments since April 2022.
(2) Includes bank overdrafts of $32 million and $50 million, respectively.
Adjusted EBITDA (Rolling 12-month)
Adjusted EBITDA is net income before charges/credits relating to
depreciation, amortization, impairment and certain non-GAAP
adjustments. A rolling 12-month adjusted EBITDA is used in the net
debt to adjusted EBITDA ratio to assess the appropriateness of the
Company's financial leverage.
Twelve months ended
(In millions, except ratios) April 30,
2023 2022
Net income $1,885 $2,216
Loss (income) from discontinued operations (net of
tax) 2 (34)
Provision for income taxes 622 401
Interest expense, net 176 91
Other expense (income), net 6 (7)
Corporate restructurings(1) 5 20
Impairments and other charges(2) 127 --
Depreciation and amortization 320 312
Adjusted EBITDA $3,143 $2,999
Net Debt: Adjusted EBITDA 1.1x 0.8x
(1) For the rolling twelve months ended April 30, 2023 and 2022, the
corporate restructuring costs primarily related to incremental costs in
connection with the Company's listing in the United States.
(2) For the rolling twelve months ended April 30, 2023, impairments and
other charges related to the $107 million in software impairment
charges in the United States, as well as $20 million in charges
associated with the closure of certain smaller, underperforming
branches in the United States.
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS -
Diluted
Three months ended
April 30,
(In millions, except per
share amounts) 2023 2022
per share(1) per share(1)
Net income $336 $1.63 $546 $2.50
Income from discontinued
operations (net of tax) -- -- -- --
Income from continuing
operations 336 1.63 546 2.50
Corporate
restructurings(2) -- -- 5 0.02
Impairments and other
charges(3) 127 0.62 -- --
Amortization of acquired
intangibles 33 0.16 30 0.14
Discrete tax
adjustments(4) (1) (0.01) (33) (0.15)
Tax impact-non-GAAP
adjustments(5) (41) (0.20) (2) (0.01)
Adjusted net income $454 $2.20 $546 $2.50
Diluted weighted-average
shares 206.1 218.0
Nine months ended
April 30,
(In millions, except per
share amounts) 2023 2022
per share(1) per share(1)
Net income $1,305 $6.28 $1,542 $6.99
Income from discontinued
operations (net of tax) -- -- (25) (0.11)
Income from continuing
operations 1,305 6.28 1,517 6.88
Corporate
restructurings(2) -- -- 12 0.05
Impairments and other
charges(3) 127 0.61 -- --
Amortization of acquired
intangibles 99 0.48 84 0.38
Discrete tax
adjustments(4) (4) (0.02) (72) (0.33)
Tax impact-non-GAAP
adjustments(5) (57) (0.28) (12) (0.05)
Adjusted net income $1,470 $7.07 $1,529 $6.93
Diluted weighted-average
shares 207.9 220.6
(1) Per share on a dilutive basis.
(2) For the three and nine months ended April 30, 2022, corporate
restructuring costs related to the incremental costs of the Company's
listing in the United States.
(3) For the three and nine months ended April 30, 2023, impairments and
other charges related to the $107 million in software impairment
charges in the United States, as well as $20 million in charges
associated with the closure of certain smaller, underperforming
branches in the United States.
(4) For the three and nine months ended April 30, 2023, discrete tax items
primarily related to adjustments in connection with amended returns.
For the three and nine months ended April 30, 2022, the discrete tax
adjustments primarily related to prior year tax adjustments, including
the release of uncertain tax positions following the closure of tax
audits and amended tax returns.
(5) For the three and nine months ended April 30, 2023, the tax impact on
non-GAAP adjustments primarily related to the tax impact on the
impairments and other charges and amortization of acquired intangibles.
For the three and nine months ended April 30, 2022, the tax impact on
non-GAAP adjustments primarily related to the tax impact on the
amortization of acquired intangibles.
Ferguson plc
Condensed Consolidated Statements of Earnings
(unaudited)
Three months ended Nine months ended
April 30, April 30,
(In millions, except per
share amounts) 2023 2022 2023 2022
Net sales $7,140 $7,284 $21,896 $20,595
Cost of sales (5,000) (5,079) (15,273) (14,274)
Gross profit 2,140 2,205 6,623 6,321
Selling, general and
administrative expenses (1,435) (1,415) (4,376) (4,091)
Impairments and other
charges (127) -- (127) --
Depreciation and
amortization (81) (78) (243) (224)
Operating profit 497 712 1,877 2,006
Interest expense, net (48) (22) (136) (71)
Other expense, net (2) -- (7) (2)
Income before income taxes 447 690 1,734 1,933
Provision for income taxes (111) (144) (429) (416)
Income from continuing
operations 336 546 1,305 1,517
Income from discontinued
operations (net of tax) -- -- -- 25
Net income $336 $546 $1,305 $1,542
Earnings per share -
Basic:
Continuing operations $1.64 $2.52 $6.30 $6.91
Discontinued operations -- -- -- 0.11
Total $1.64 $2.52 $6.30 $7.02
Earnings per share -
Diluted:
Continuing operations $1.63 $2.50 $6.28 $6.88
Discontinued operations -- -- -- 0.11
Total $1.63 $2.50 $6.28 $6.99
Weighted average number of
shares outstanding:
Basic 205.4 217.1 207.1 219.5
Diluted 206.1 218.0 207.9 220.6
Ferguson plc
Condensed Consolidated Balance Sheets
(unaudited)
As of
(In millions) April 30, 2023 July 31, 2022
Assets
Cash and cash equivalents $625 $771
Accounts receivable, net 3,382 3,610
Inventories 4,089 4,333
Prepaid and other current assets 783 834
Assets held for sale 30 3
Total current assets 8,909 9,551
Property, plant and equipment, net 1,542 1,376
Operating lease right-of-use assets 1,321 1,200
Deferred income taxes, net 265 177
Goodwill 2,090 2,048
Other non-current assets 1,237 1,309
Total assets $15,364 $15,661
Liabilities and shareholders' equity
Accounts payable $3,297 $3,607
Other current liabilities 1,828 2,192
Total current liabilities 5,125 5,799
Long-term debt 3,839 3,679
Long-term portion of operating lease
liabilities 995 878
Other long-term liabilities 684 640
Total liabilities 10,643 10,996
Total shareholders' equity 4,721 4,665
Total liabilities and shareholders' equity $15,364 $15,661
Ferguson plc
Condensed Consolidated Statements of Cash Flows
(unaudited)
Nine months ended
April 30,
(In millions) 2023 2022
Cash flows from operating activities:
Net income $1,305 $1,542
Income from discontinued operations -- (25)
Income from continuing operations 1,305 1,517
Depreciation and amortization 243 224
Share-based compensation 38 44
Non-cash impact of impairments and net loss on
disposal of assets 127 14
Decrease (increase) in inventories 315 (808)
Decrease (increase) in receivables and other assets 313 (636)
(Decrease) increase in accounts payable and other
liabilities (441) 439
Other operating activities (94) (113)
Net cash provided by operating activities of
continuing operations 1,806 681
Net cash used in operating activities of
discontinued operations (4) --
Net cash provided by operating activities 1,802 681
Cash flows from investing activities:
Purchase of businesses acquired, net of cash acquired (179) (275)
Capital expenditures (361) (195)
Other investing activities (3) (6)
Net cash used in investing activities of continuing
operations (543) (476)
Net cash provided by investing activities of
discontinued operations -- 25
Net cash used in investing activities (543) (451)
Cash flows from financing activities:
Purchase of own shares by Employee Benefit Trusts -- (92)
Purchase of treasury shares (784) (918)
Net change in debt and bank overdrafts (29) 1,003
Cash dividends (557) (364)
Other financing activities (19) (12)
Net cash used in financing activities (1,389) (383)
Change in cash, cash equivalents and restricted cash (130) (153)
Effects of exchange rate changes 20 (19)
Cash, cash equivalents and restricted cash, beginning
of period 785 1,342
Cash, cash equivalents and restricted cash, end of
period $675 $1,170
Investor relations
Brian Lantz, Vice President IR and Communications
Mobile: +1 224 285 2410
Pete Kennedy, Director of Investor Relations
Mobile: +1 757 603 0111
Media inquiries
John Pappas, Director of Financial Communications
Mobile: +1 484 790 2727
View source version on businesswire.com:
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CONTACT:
Ferguson plc
SOURCE: Ferguson plc
Copyright Business Wire 2023
(END) Dow Jones Newswires
June 06, 2023 06:45 ET (10:45 GMT)
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