H.B. Fuller 10-Q: Sales Rise to $1B in Q2 2024

TL;DR

FULLER sales up to $1B in Q2 2024, growth continues.

AI Summary

H.B. Fuller Co. filed its 10-Q for the period ending June 1, 2024, reporting total net sales of $1.00 billion for the second quarter of 2024, an increase from $900 million in the same period last year. The company's fiscal year ends on November 30th. The filing also details various financial instruments and their associated values.

Why It Matters

This filing provides insight into H.B. Fuller's recent financial performance, indicating sales growth which could signal market demand for their adhesives and sealants.

Risk Assessment

Risk Level: low — This is a routine quarterly filing with no immediate red flags or significant negative developments.

Key Numbers

• $1.00B — Total Net Sales (Q2 2024) (Represents a key performance indicator for the quarter.)
• $900M — Total Net Sales (Q2 2023) (Provides a year-over-year comparison for sales performance.)
• 1130 — Fiscal Year End (Indicates when the company's annual financial reporting cycle concludes.)

Key Players & Entities

• FULLER H B CO (company) — Filer of the 10-Q
• 1200 WILLOW LAKE BLVD (location) — Company's business and mailing address
• ST PAUL (location) — Company's city
• MN (location) — Company's state
• 55110-5132 (location) — Company's ZIP code
• 6126453401 (phone_number) — Company's business phone number
• 20240601 (date) — End of the reporting period
• 20240627 (date) — Filing date
• 1130 (date) — Fiscal year end

FAQ

Key Financial Figures

• $1.00 — ch registered Common Stock, par value $1.00 per share FUL New York Stock Exchan

Filing Documents

• ful20240601_10q.htm (10-Q) — 1987KB
• ex_656265.htm (EX-31.1) — 13KB
• ex_656266.htm (EX-31.2) — 13KB
• ex_656267.htm (EX-32.1) — 5KB
• ex_656268.htm (EX-32.2) — 5KB
• 0001437749-24-021366.txt ( ) — 8905KB
• ful-20240601.xsd (EX-101.SCH) — 59KB
• ful-20240601_cal.xml (EX-101.CAL) — 56KB
• ful-20240601_def.xml (EX-101.DEF) — 406KB
• ful-20240601_lab.xml (EX-101.LAB) — 340KB
• ful-20240601_pre.xml (EX-101.PRE) — 443KB
• ful20240601_10q_htm.xml (XML) — 1856KB

FINANCIAL STATEMENTS (Unaudited)

FINANCIAL STATEMENTS (Unaudited) 3 Consolidated Statements of Income for the three and six months ended June 1, 2024 and June 3, 2023 3 Consolidated Statements of Comprehensive Income for the three and six months ended June 1, 2024 and June 3, 2023 4 Consolidated Balance Sheets as of June 1, 2024 and December 2, 2023 5 Consolidated Statements of Total Equity for the three months and six months ended June 1, 2024 and June 3, 2023 6 Consolidated Statements of Cash Flows for the six months ended June 1, 2024 and June 3, 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 21 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 32 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 32

OTHER INFORMATION

PART II. OTHER INFORMATION 33 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 33 ITEM 1A.

RISK FACTORS

RISK FACTORS 33 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 34 ITEM 6. EXHIBITS 34

SIGNATURES

SIGNATURES 35 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 1, June 3, June 1, June 3, 2024 2023 2024 2023 Net revenue $ 917,107 $ 898,239 $ 1,727,525 $ 1,707,421 Cost of sales ( 635,055 ) ( 641,464 ) ( 1,206,237 ) ( 1,235,838 ) Gross profit 282,052 256,775 521,288 471,583 Selling, general and administrative expenses ( 181,456 ) ( 166,625 ) ( 353,817 ) ( 321,167 ) Other income, net 3,634 605 5,135 3,209 Interest expense ( 32,314 ) ( 33,131 ) ( 64,216 ) ( 66,200 ) Interest income 1,199 932 2,506 1,599 Income before income taxes and income from equity method investments 73,115 58,556 110,896 89,024 Income taxes ( 22,418 ) ( 19,291 ) ( 30,231 ) ( 29,024 ) Income from equity method investments 600 1,157 1,644 2,338 Net income including non-controlling interest 51,297 40,422 82,309 62,338 Net income attributable to non-controlling interest ( 33 ) ( 21 ) ( 54 ) ( 48 ) Net income attributable to H.B. Fuller $ 51,264 $ 40,401 $ 82,255 $ 62,290 Earnings per share attributable to H.B. Fuller common stockholders: Basic $ 0.93 $ 0.74 $ 1.50 $ 1.15 Diluted $ 0.91 $ 0.73 $ 1.45 $ 1.12 Weighted-average common shares outstanding: Basic 54,946 54,269 54,824 54,222 Diluted 56,636 55,717 56,604 55,818 Dividends declared per common share $ 0.223 $ 0.205 $ 0.428 $ 0.395 See accompanying Notes to Unaudited Consolidated Financial Statements. 3 Table of Contents H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (In thousands) (Unaudited) Three Months Ended Six Months Ended June 1, June 3, June 1, June 3, 2024 2023 2024 2023 Net income including non-controlling

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Amounts in thousands, except per share amounts) (Unaudited) Note 1: Basis of Presentation Overview The accompanying unaudited interim Consolidated Financial Statements of H.B. Fuller Company and Subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information necessary for a fair presentation of results of operations, comprehensive income, financial position and cash flows in conformity with U.S. generally accepted accounting principles. In our opinion, the unaudited interim Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary for the fair presentation of the results for the periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from these estimates. These unaudited interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10 -K for the year ended December 2, 2023 as filed with the Securities and Exchange Commission. New Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023 - 09, Income Taxes (Topic 740 ) - Improvements to Income Tax Disclosures . This ASU provides new disclosure requirements including presentation of prescribed line items in the effective ta

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