Graco Inc. Files 10-Q for Q2 2024

TL;DR

Graco Inc. 10-Q filed 7/24 for Q2 ending 6/28. Key financial data updated.

AI Summary

Graco Inc. reported its second quarter results for the period ending June 28, 2024. The company's fiscal year ends on December 27th. Key financial dates include the filing date of July 24, 2024, and the reporting period ending June 28, 2024. The filing also references prior periods such as March 30, 2024, and June 30, 2023.

Why It Matters

This 10-Q filing provides investors with the latest financial performance and operational details for Graco Inc. during the second quarter of 2024.

Risk Assessment

Risk Level: low — This filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

• 168,931,354 — Shares Outstanding (As of the reporting period, indicating the total number of shares available.)

Key Players & Entities

• GRACO INC (company) — Filer
• 0000042888 (company) — Central Index Key
• 20240628 (date) — Conformed Period of Report
• 20240724 (date) — Filed as of Date

FAQ

Key Financial Figures

• $1.00 — ich registered Common Stock, par value $1.00 per share GGG The New York Stock Exchan
• $3 million — rates decreased worldwide net sales by $3 million for the quarter and $4 million for the
• $4 million — sales by $3 million for the quarter and $4 million for the year to date. Operating earnin

Filing Documents

• ggg-20240628.htm (10-Q) — 1004KB
• ggg2024q2ex311-quarteronly.htm (EX-31.1) — 11KB
• ggg2024q2ex312-quarteronly.htm (EX-31.2) — 11KB
• ggg2024q2ex32-quarteronly.htm (EX-32) — 7KB
• ggg6282024exhibit991q2.htm (EX-99.1) — 226KB
• image0a02.jpg (GRAPHIC) — 4KB
• image1a02.jpg (GRAPHIC) — 34KB
• 0000042888-24-000028.txt ( ) — 5555KB
• ggg-20240628.xsd (EX-101.SCH) — 25KB
• ggg-20240628_cal.xml (EX-101.CAL) — 65KB
• ggg-20240628_def.xml (EX-101.DEF) — 88KB
• ggg-20240628_lab.xml (EX-101.LAB) — 453KB
• ggg-20240628_pre.xml (EX-101.PRE) — 298KB
• ggg-20240628_htm.xml (XML) — 798KB

- 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 15

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 21

Controls and Procedures

Item 4. Controls and Procedures 21

- OTHER INFORMATION

PART II - OTHER INFORMATION

Risk Factors

Item 1A. Risk Factors 22

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23

Other Information

Item 5. Other Information 24

Exhibits

Item 6. Exhibits 25

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 Six Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net Sales $ 553,243 $ 559,644 $ 1,045,432 $ 1,089,290 Cost of products sold 252,389 268,229 478,381 512,735 Gross Profit 300,854 291,415 567,051 576,555 Product development 21,897 21,286 43,769 41,765 Selling, marketing and distribution 69,001 68,380 135,632 133,763 General and administrative 48,597 44,697 93,295 87,307 Operating Earnings 161,359 157,052 294,355 313,720 Interest expense 634 1,798 1,378 3,145 Other (income) expense, net ( 4,453 ) ( 4,365 ) ( 12,531 ) ( 6,394 ) Earnings Before Income Taxes 165,178 159,619 305,508 316,969 Income taxes 32,200 25,351 50,331 53,535 Net Earnings $ 132,978 $ 134,268 $ 255,177 $ 263,434 Net Earnings per Common Share Basic $ 0.79 $ 0.80 $ 1.51 $ 1.56 Diluted $ 0.77 $ 0.78 $ 1.48 $ 1.53 See notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Three Months Ended Six Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net Earnings $ 132,978 $ 134,268 $ 255,177 $ 263,434 Components of other comprehensive income (loss) Cumulative translation adjustment ( 811 ) 4,553 ( 19,517 ) 9,528 Pension and postretirement medical liability adjustment 1,304 1,195 2,222 2,327 Income taxes - pension and postretirement medical liability adjustment ( 352 ) ( 264 ) ( 589 ) ( 508 ) Other comprehensive income (loss) 141 5,484 ( 17,884 ) 11,347 Comprehensive Income $ 133,119 $ 139,752 $ 237,293 $ 274,781 See notes to consolidated financial statements. 3 Table of Contents GRACO INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) June 28, 2024 December 29, 2023 ASSETS Current Assets Cash and cash equivalents $ 666,006 $ 537,951 Accounts receivable, less allowances of $ 5,

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 June 28, 2024 and the related statements of earnings, comprehensive income and shareholders' equity for the three and six months ended June 28, 2024 and June 30, 2023, and cash flows for the six months ended June 28, 2024 and June 30, 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 June 28, 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 Annual Report on Form 10-K for the year ended December 29, 2023 ( the "2023 Annual Report"). 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 Six Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net Sales Contractor $ 269,638 $ 255,648 $ 499,680 $ 501,619 Industrial 155,708 163,523 297,699 313,713 Process 127,897 140,473 248,053 273,958 Total $ 553,243 $ 559,644 $ 1,045,432 $ 1,089,290 Operating Earnings Contractor $ 84,362 $ 68,868 $ 150,503 $ 142,640 Industrial 52,720 55,887 97,521 108,657 Process 37,279 43,620 72,319 84,185 Unallocated corporate (expense) ( 13,002 ) ( 11,323

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 Six Months Ended Jun 28, 2024 Jun 30, 2023 % Change Jun 28, 2024 Jun 30, 2023 % Change Net Sales $ 553.2 $ 559.6 (1) % $ 1,045.4 $ 1,089.3 (4) % Operating Earnings 161.4 157.1 3 % 294.4 313.7 (6) % Net Earnings 133.0 134.3 (1) % 255.2 263.4 (3) % Net Earnings, adjusted (1) 132.2 128.8 3 % 244.8 255.3 (4) % Diluted Net Earnings per Common Share $ 0.77 $ 0.78 (1) % $ 1.48 $ 1.53 (3) % Diluted Net Earnings per Common Share, adjusted (1) $ 0.77 $ 0.75 3 % $ 1.42 $ 1.48 (4) % (1) See below for a reconciliation of adjusted non-GAAP financial measures to GAAP. Net sales for the second quarter decreased 1 percent from the comparable period last year. Sales growth in the Contractor segment was unable to offset declines in the Industrial and Process segments. Regionally, sales decreased in EMEA and Asia Pacific and increased i

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View this 10-Q filing on SEC EDGAR