Graco Inc. Files 10-Q for Period Ending March 29, 2024

TL;DR

<b>Graco Inc. filed its Q1 2024 10-Q report, detailing financial performance and segment data.</b>

AI Summary

GRACO INC (GGG) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. Graco Inc. reported financial results for the period ending March 29, 2024. The filing covers the first quarter of fiscal year 2024. Key financial data from previous periods, including December 31, 2023, and March 31, 2023, are referenced. Segment information for Contractor, Industrial, and Process is included. The company is incorporated in Minnesota (MN) and operates in the Pumps & Pumping Equipment industry.

Why It Matters

For investors and stakeholders tracking GRACO INC, this filing contains several important signals. This filing provides investors with the latest quarterly financial snapshot of Graco Inc., crucial for understanding recent performance and trends. The inclusion of segment data allows for a deeper analysis of which business areas are driving growth or facing challenges within the company.

Risk Assessment

Risk Level: low — GRACO INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk disclosures.

Analyst Insight

Monitor upcoming earnings calls and subsequent filings for detailed financial performance analysis and management commentary.

Revenue Breakdown

Key Numbers

• 169,135,876 — Shares Outstanding (As of 2024 Q1)
• 2024-03-29 — Report End Date (Quarterly filing)
• 2023-12-30 — Previous Period End Date (Fiscal year end)
• 2023-03-31 — Prior Year Period End Date (Quarterly filing)

Key Players & Entities

• GRACO INC (company) — Filer name
• 2024-03-29 (date) — Period of report
• 2024-04-24 (date) — Filed as of date
• PUMPS & PUMPING EQUIPMENT (industry) — Standard Industrial Classification
• MN (location) — State of incorporation
• 6126236000 (phone) — Business phone

FAQ

Key Dates

• 2024-03-29: Quarter End — Reporting period for the 10-Q filing.
• 2024-04-24: Filing Date — Date the 10-Q was officially submitted to the SEC.

Key Financial Figures

• $1.00 — ich registered Common Stock, par value $1.00 per share GGG The New York Stock Exchan
• $5 million — ting expenses for the quarter increased $5 million (4 percent) compared to last year, incl
• $3 million — d to last year, including approximately $3 million (2 percentage points) of increased unal
• $1 million — cremental share-based compensation) and $1 million (1 percentage point) of increases in pr
• $6 million — Other income for the quarter increased $6 million from the comparable period last year, l
• $4 million — reased interest income of approximately $4 million. Income Taxes The effective income t

Filing Documents

• ggg-20240329.htm (10-Q) — 780KB
• ggg2024q1ex311-quarteronly.htm (EX-31.1) — 11KB
• ggg2024q1ex312-quarteronly.htm (EX-31.2) — 11KB
• ggg2024q1ex32-quarteronly.htm (EX-32) — 7KB
• ggg4242024exhibit991q1.htm (EX-99.1) — 155KB
• image0a02a.jpg (GRAPHIC) — 4KB
• image1a02a.jpg (GRAPHIC) — 34KB
• 0000042888-24-000014.txt (&nbsp;) — 4837KB
• ggg-20240329.xsd (EX-101.SCH) — 25KB
• ggg-20240329_cal.xml (EX-101.CAL) — 65KB
• ggg-20240329_def.xml (EX-101.DEF) — 88KB
• ggg-20240329_lab.xml (EX-101.LAB) — 436KB
• ggg-20240329_pre.xml (EX-101.PRE) — 291KB
• ggg-20240329_htm.xml (XML) — 638KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Statements of Earnings 3 Consolidated Statements of Comprehensive Income 3 Consolidated Balance Sheets 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Shareholders' Equity 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 20

Controls and Procedures

Item 4. Controls and Procedures 20

- OTHER INFORMATION

PART II - OTHER INFORMATION

Risk Factors

Item 1A. Risk Factors 21

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22

Other Information

Item 5. Other Information 23

Exhibits

Item 6. Exhibits 24

SIGNATURES

SIGNATURES 2 Table of Contents

Item 1

PART I Item 1. GRACO INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In thousands except per share amounts) Three Months Ended March 29, 2024 March 31, 2023 Net Sales $ 492,189 $ 529,646 Cost of products sold 225,992 244,506 Gross Profit 266,197 285,140 Product development 21,872 20,479 Selling, marketing and distribution 66,631 65,383 General and administrative 44,698 42,610 Operating Earnings 132,996 156,668 Interest expense 744 1,347 Other (income) expense, net ( 8,078 ) ( 2,029 ) Earnings Before Income Taxes 140,330 157,350 Income taxes 18,131 28,184 Net Earnings $ 122,199 $ 129,166 Net Earnings per Common Share Basic $ 0.73 $ 0.77 Diluted $ 0.71 $ 0.75 See notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Three Months Ended March 29, 2024 March 31, 2023 Net Earnings $ 122,199 $ 129,166 Components of other comprehensive income (loss) Cumulative translation adjustment ( 18,706 ) 4,975 Pension and postretirement medical liability adjustment 918 1,132 Income taxes - pension and postretirement medical liability adjustment ( 237 ) ( 244 ) Other comprehensive (loss) income ( 18,025 ) 5,863 Comprehensive Income $ 104,174 $ 135,029 See notes to consolidated financial statements. 3 Table of Contents GRACO INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) March 29, 2024 December 29, 2023 ASSETS Current Assets Cash and cash equivalents $ 622,728 $ 537,951 Accounts receivable, less allowances of $ 6,100 and $ 5,300 321,870 354,439 Inventories 459,118 438,349 Other current assets 40,512 35,070 Total current assets 1,444,228 1,365,809 Property, Plant and Equipment, net 751,174 741,713 Goodwill 363,360 370,228 Other Intangible Assets, net 117,850 126,258 Operating Lease Assets 16,573 18,768 Deferred Income Taxes 54,658 61,381 Other Assets 38,982 37,850 Total Assets $ 2,786,825 $ 2,722,007

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation The consolidated balance sheet of Graco Inc. and subsidiaries (the "Company") as of March 29, 2024 and the related statements of earnings, comprehensive income and shareholders' equity for the three months ended March 29, 2024 and March 31, 2023, and cash flows for the three months ended March 29, 2024 and March 31, 2023 have been prepared by the Company and have not been audited. In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of the Company as of March 29, 2024, and the results of operations and cash flows for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company's 2023 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year. 2. Segment Information The Company has three reportable segments: Contractor, Industrial and Process. Sales and operating earnings by segment were as follows (in thousands): Three Months Ended March 29, 2024 March 31, 2023 Net Sales Contractor $ 230,042 $ 245,971 Industrial 141,991 150,190 Process 120,156 133,485 Total $ 492,189 $ 529,646 Operating Earnings Contractor $ 66,141 $ 73,772 Industrial 44,801 52,770 Process 35,040 40,565 Unallocated corporate (expense) ( 12,986 ) ( 10,439 ) Total $ 132,996 $ 156,668 Assets by segment were as follows (in thousands): March 29, 2024 December 29, 2023 Contractor $ 730,987 $ 712,224 Industrial 605,991 640,487 Process 553,816 554,753 Unallocated corporate

GRACO INC. AND SUBSIDIARIES

Item 2. GRACO INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview The Company supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and coating materials. Management classifies the Company's business into three reportable segments: Contractor, Industrial and Process. Key strategies include developing and marketing new products, leveraging products and technologies into additional, growing end-user markets, expanding distribution globally and completing strategic acquisitions that provide additional channel and technologies. The following Management's Discussion and Analysis reviews significant factors affecting the Company's results of operations and financial condition. This discussion should be read in conjunction with the financial statements and the accompanying notes to the financial statements. Consolidated Results A summary of financial results follows (in millions except per share amounts): Three Months Ended Mar 29, 2024 Mar 31, 2023 % Change Net Sales $ 492.2 $ 529.6 (7) % Operating Earnings 133.0 156.7 (15) % Net Earnings 122.2 129.2 (5) % Net Earnings, adjusted (1) 112.6 126.6 (11) % Diluted Net Earnings per Common Share $ 0.71 $ 0.75 (5) % Diluted Net Earnings per Common Share, adjusted (1) $ 0.65 $ 0.74 (12) % (1) See below for a reconciliation of adjusted non-GAAP financial measures to GAAP. Net sales for the quarter decreased 7 percent from the comparable period last year, with decreases in all segments. Regionally, sales decreased in the Americas and Asia Pacific and were up modestly in EMEA. Operating earnings for the quarter decreased 15 percent compared to last year, as an improved gross profit margin rate was unable to offset lower sales volume and higher operating expenses. Net earnings decreased 5 percent

View Full Filing

View this 10-Q filing on SEC EDGAR