Graco Inc. Files 10-Q for Q3 2024

TL;DR

GRACO 10-Q filed. Financials for Q3 2024 out.

AI Summary

Graco Inc. filed its 10-Q for the period ending September 27, 2024. The company's fiscal year ends on December 27. Key financial data points and dates related to its reporting periods are included in the filing.

Why It Matters

This filing provides investors with an update on Graco Inc.'s financial performance and position as of the end of the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 168,849,576 — Shares Outstanding (As of the fiscal year end 12-27, likely for the previous year.)

Key Players & Entities

• GRACO INC (company) — Filer of the 10-Q
• 20240927 (date) — End of reporting period
• 20241023 (date) — Filing date
• MINNEAPOLIS (location) — Company headquarters and mail address city

FAQ

Key Financial Figures

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

Filing Documents

• ggg-20240927.htm (10-Q) — 1042KB
• ggg2024q3ex311-quarteronly.htm (EX-31.1) — 11KB
• ggg2024q3ex312-quarteronly.htm (EX-31.2) — 11KB
• ggg2024q3ex32-quarteronly.htm (EX-32) — 7KB
• ggg9272024exhibit991q3.htm (EX-99.1) — 255KB
• image0a02a.jpg (GRAPHIC) — 4KB
• image1a02a.jpg (GRAPHIC) — 34KB
• 0000042888-24-000029.txt ( ) — 5725KB
• ggg-20240927.xsd (EX-101.SCH) — 25KB
• ggg-20240927_cal.xml (EX-101.CAL) — 67KB
• ggg-20240927_def.xml (EX-101.DEF) — 95KB
• ggg-20240927_lab.xml (EX-101.LAB) — 467KB
• ggg-20240927_pre.xml (EX-101.PRE) — 309KB
• ggg-20240927_htm.xml (XML) — 810KB

- 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 Nine Months Ended September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Net Sales $ 519,212 $ 539,672 $ 1,564,644 $ 1,628,962 Cost of products sold 243,082 255,148 721,463 767,883 Gross Profit 276,130 284,524 843,181 861,079 Product development 21,306 19,817 65,076 61,582 Selling, marketing and distribution 65,143 60,495 200,773 194,258 General and administrative 43,958 41,823 137,252 129,130 Contingent consideration — ( 8,600 ) — ( 8,600 ) Impairment — 7,800 — 7,800 Operating Earnings 145,723 163,189 440,080 476,909 Interest expense 656 1,391 2,034 4,536 Other income, net ( 6,225 ) ( 2,483 ) ( 18,756 ) ( 8,877 ) Earnings Before Income Taxes 151,292 164,281 456,802 481,250 Income taxes 29,095 31,158 79,426 84,693 Net Earnings $ 122,197 $ 133,123 $ 377,376 $ 396,557 Net Earnings per Common Share Basic $ 0.72 $ 0.79 $ 2.24 $ 2.35 Diluted $ 0.71 $ 0.77 $ 2.19 $ 2.30 See notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Three Months Ended Nine Months Ended September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Net Earnings $ 122,197 $ 133,123 $ 377,376 $ 396,557 Components of other comprehensive income (loss) Cumulative translation adjustment 19,491 ( 9,022 ) ( 26 ) 506 Pension and postretirement medical liability adjustment ( 268 ) 1,100 1,954 3,427 Income taxes - pension and postretirement medical liability adjustment 66 ( 252 ) ( 523 ) ( 760 ) Other comprehensive income (loss) 19,289 ( 8,174 ) 1,405 3,173 Comprehensive Income $ 141,486 $ 124,949 $ 378,781 $ 399,730 See notes to consolidated financial statements. 3 Table of Contents GRACO INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) September 27, 2024 December 29, 2023 ASSE

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 September 27, 2024 and the related statements of earnings, comprehensive income and shareholders' equity for the three and nine months ended September 27, 2024 and September 29, 2023, and cash flows for the nine months ended September 27, 2024 and September 29, 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 September 27, 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 Nine Months Ended September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Net Sales Contractor $ 242,295 $ 245,269 $ 741,975 $ 746,888 Industrial 156,294 157,084 453,993 470,797 Process 120,623 137,319 368,676 411,277 Total $ 519,212 $ 539,672 $ 1,564,644 $ 1,628,962 Operating Earnings Contractor $ 71,053 $ 73,512 $ 221,555 $ 216,152 Industrial 52,361 54,298 149,881 162,955 Process 32,452 43,001 104,772 127,1

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 channels 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 Nine Months Ended Sep 27, 2024 Sep 29, 2023 % Change Sep 27, 2024 Sep 29, 2023 % Change Net Sales $ 519.2 $ 539.7 (4) % $ 1,564.6 $ 1,629.0 (4) % Operating Earnings 145.7 163.2 (11) % 440.1 476.9 (8) % Operating Earnings, adjusted (1) 145.7 162.4 (10) % 440.1 476.1 (8) % Net Earnings 122.2 133.1 (8) % 377.4 396.6 (5) % Net Earnings, adjusted (1) 122.2 131.5 (7) % 367.1 386.9 (5) % Diluted Net Earnings per Common Share $ 0.71 $ 0.77 (8) % $ 2.19 $ 2.30 (5) % Diluted Net Earnings per Common Share, adjusted (1) $ 0.71 $ 0.76 (7) % $ 2.13 $ 2.24 (5) % (1) See below for a reconciliation of adjusted non-GAAP financial measures to GAAP. Net sales for the third quarter decreased 4 percent from the comparable period last year. Regionally, net sales decreased in EMEA and Asia Pacific. Net sales in the Americas increased in t

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