H.B. Fuller 10-Q: Q3 Sales Flat, Financial Hedges Detailed

TL;DR

H.B. Fuller Q3 sales flat at $1.004B, lots of financial hedging details in the 10-Q.

AI Summary

H.B. Fuller Co. filed its 10-Q for the period ending August 31, 2024. The company reported total net sales of $1,004.6 million for the third quarter of fiscal year 2024, compared to $1,004.6 million for the same period in fiscal year 2023. The filing also details various financial instruments, including interest rate swaps and net investment hedges.

Why It Matters

This filing provides insight into H.B. Fuller's financial performance and risk management strategies, particularly concerning interest rate and currency fluctuations, which can impact profitability.

Risk Assessment

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

Key Numbers

• $1,004.6M — Net Sales (Q3 FY2024 sales, same as Q3 FY2023)
• $160.0M — Total Assets (As of August 31, 2024)
• $54.6M — Total Liabilities (As of August 31, 2024)

Key Players & Entities

• H.B. Fuller Co. (company) — Filer of the 10-Q
• 20240831 (date) — End of reporting period
• $1,004.6 million (dollar_amount) — Net sales for Q3 FY2024
• $1,004.6 million (dollar_amount) — Net sales for Q3 FY2023

FAQ

Key Financial Figures

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

Filing Documents

• ful20240831_10q.htm (10-Q) — 2091KB
• ex_695944.htm (EX-31.1) — 13KB
• ex_695945.htm (EX-31.2) — 13KB
• ex_695946.htm (EX-32.1) — 5KB
• ex_695947.htm (EX-32.2) — 5KB
• 0001437749-24-030051.txt ( ) — 9139KB
• ful-20240831.xsd (EX-101.SCH) — 60KB
• ful-20240831_cal.xml (EX-101.CAL) — 56KB
• ful-20240831_def.xml (EX-101.DEF) — 414KB
• ful-20240831_lab.xml (EX-101.LAB) — 346KB
• ful-20240831_pre.xml (EX-101.PRE) — 450KB
• ful20240831_10q_htm.xml (XML) — 1905KB

FINANCIAL STATEMENTS (Unaudited)

FINANCIAL STATEMENTS (Unaudited) 4 Consolidated Statements of Income for the three and nine months ended August 31, 2024 and September 2, 2023 4 Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2024 and September 2, 2023 5 Consolidated Balance Sheets as of August 31, 2024 and December 2, 2023 6 Consolidated Statements of Total Equity for the three months and nine months ended August 31, 2024 and September 2, 2023 7 Consolidated Statements of Cash Flows for the nine months ended August 31, 2024 and September 2, 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 27 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 41 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 41

OTHER INFORMATION

PART II. OTHER INFORMATION 42 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 42 ITEM 1A.

RISK FACTORS

RISK FACTORS 42 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 43 ITEM 6. EXHIBITS 43

SIGNATURES

SIGNATURES 44 3 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 Nine Months Ended August 31, September 2, August 31, September 2, 2024 2023 2024 2023 Net revenue $ 917,927 $ 900,634 $ 2,645,452 $ 2,608,055 Cost of sales ( 642,198 ) ( 637,162 ) ( 1,848,435 ) ( 1,873,000 ) Gross profit 275,729 263,472 797,017 735,055 Selling, general and administrative expenses ( 171,388 ) ( 172,153 ) ( 525,204 ) ( 493,320 ) Other income, net 2,148 1,555 7,282 4,764 Interest expense ( 35,288 ) ( 35,105 ) ( 99,504 ) ( 101,305 ) Interest income 1,092 1,128 3,597 2,726 Income before income taxes and income from equity method investments 72,293 58,897 183,188 147,920 Income taxes ( 18,264 ) ( 22,231 ) ( 48,496 ) ( 51,255 ) Income from equity method investments 1,310 984 2,955 3,322 Net income including non-controlling interest 55,339 37,650 137,647 99,987 Net loss (income) attributable to non-controlling interest 22 ( 23 ) ( 32 ) ( 71 ) Net income attributable to H.B. Fuller $ 55,361 $ 37,627 $ 137,615 $ 99,916 Earnings per share attributable to H.B. Fuller common stockholders: Basic $ 1.01 $ 0.69 $ 2.51 $ 1.84 Diluted $ 0.98 $ 0.67 $ 2.43 $ 1.79 Weighted-average common shares outstanding: Basic 54,975 54,394 54,874 54,279 Diluted 56,650 56,033 56,620 55,890 Dividends declared per common share $ 0.223 $ 0.205 $ 0.651 $ 0.600 See accompanying Notes to Unaudited Consolidated Financial Statements. 4 Table of Contents H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (In thousands) (Unaudited) Three Months Ended Nine Months Ended August 31, September 2, August 31, September 2, 2024 2023 2024

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 Accounting Standards Update ("ASU") No. 2023 - 09, Income Taxes (Topic 740 ) - Improvements to Income Tax Disclosures . This ASU provides new disclosure requirements including presentation of prescribe

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View this 10-Q filing on SEC EDGAR