Diluted EPS of
Operating margin before financial services of 22.0% reflects an increase of 80 basis points;
Sales of
-
Net sales of
$1,147.0 million in the third quarter of 2024 represented a decrease of$12.3 million , or 1.1%, from 2023 levels, reflecting a$19.2 million , or 1.7%, organic sales decline and$0.3 million of unfavorable foreign currency translation, partially offset by$7.2 million of acquisition-related sales. -
Operating earnings before financial services for the quarter of
$252.4 million compared to$245.2 million in 2023. As a percentage of net sales, operating earnings before financial services were 22.0% in the third quarter compared to 21.2% last year. -
Financial services revenue in the quarter of
$100.4 million compared to$94.9 million in 2023; financial services operating earnings of$71.7 million compared to$69.4 million last year. -
Consolidated operating earnings for the quarter of
$324.1 million , or 26.0% of revenues (net sales plus financial services revenue), compared to$314.6 million , or 25.1% of revenues, in 2023. - The third quarter effective income tax rate was 22.9% in 2024 and 22.6% last year.
-
Net earnings in the quarter of
$251.1 million , or$4.70 per diluted share, compared to net earnings of$243.1 million , or$4.51 per diluted share, a year ago.
See “Non-GAAP Measures” below for a definition of, and further explanation about, organic sales.
“We’re encouraged by our third quarter 2024 results as our businesses remained strong, yielding a balanced outcome and delivering profitability gains in these challenging times,” said
Segment Results
Operating earnings of
Operating earnings of
Operating earnings of
Financial Services operating earnings of
Corporate expenses in the third quarter of
Outlook
We believe that our markets and our operations possess and have demonstrated continuing and considerable resilience against the uncertainties of the current environment. For the remainder of 2024, Snap-on expects to make ongoing progress along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, we project that capital expenditures in 2024 will approximate
Snap-on currently anticipates that its full-year 2024 effective income tax rate will be in the range of 22% to 23%.
Conference Call and Webcast on
A discussion of this release will be webcast on
Non-GAAP Measures
References in this release to “organic sales” refer to sales from continuing operations calculated in accordance with generally accepted accounting principles in
About Snap-on
Forward-looking Statements
Statements in this news release that are not historical facts, including statements that (i) are in the future tense; (ii) include the words “expects,” “anticipates,” “intends,” “approximates,” or similar words that reference Snap-on or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on’s or management’s future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that this news release may contain statements, including earnings projections, that are forward-looking in nature and were developed by management in good faith and, accordingly, are subject to risks and uncertainties regarding Snap-on’s expected results that could cause (and in some cases have caused) actual results to differ materially from those described or contemplated in any forward-looking statement. Factors that may cause the company’s actual results to differ materially from those contained in the forward-looking statements include those found in the company’s reports filed with the
Condensed Consolidated Statements of Earnings (Amounts in millions, except per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,147.0 |
|
|
$ |
1,159.3 |
|
|
$ |
3,508.7 |
|
|
$ |
3,533.6 |
|
Cost of goods sold |
|
(559.2 |
) |
|
|
(581.1 |
) |
|
|
(1,726.9 |
) |
|
|
(1,762.1 |
) |
Gross profit |
|
587.8 |
|
|
|
578.2 |
|
|
|
1,781.8 |
|
|
|
1,771.5 |
|
Operating expenses |
|
(335.4 |
) |
|
|
(333.0 |
) |
|
|
(978.2 |
) |
|
|
(989.5 |
) |
Operating earnings before financial services |
|
252.4 |
|
|
|
245.2 |
|
|
|
803.6 |
|
|
|
782.0 |
|
|
|
|
|
|
|
|
|
||||||||
Financial services revenue |
|
100.4 |
|
|
|
94.9 |
|
|
|
300.5 |
|
|
|
280.9 |
|
Financial services expenses |
|
(28.7 |
) |
|
|
(25.5 |
) |
|
|
(90.3 |
) |
|
|
(78.3 |
) |
Operating earnings from financial services |
|
71.7 |
|
|
|
69.4 |
|
|
|
210.2 |
|
|
|
202.6 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings |
|
324.1 |
|
|
|
314.6 |
|
|
|
1,013.8 |
|
|
|
984.6 |
|
Interest expense |
|
(12.5 |
) |
|
|
(12.4 |
) |
|
|
(37.3 |
) |
|
|
(37.4 |
) |
Other income (expense) – net |
|
20.6 |
|
|
|
18.0 |
|
|
|
57.4 |
|
|
|
50.0 |
|
Earnings before income taxes |
|
332.2 |
|
|
|
320.2 |
|
|
|
1,033.9 |
|
|
|
997.2 |
|
Income tax expense |
|
(74.7 |
) |
|
|
(71.1 |
) |
|
|
(229.2 |
) |
|
|
(223.9 |
) |
Net earnings |
|
257.5 |
|
|
|
249.1 |
|
|
|
804.7 |
|
|
|
773.3 |
|
Net earnings attributable to noncontrolling interests |
|
(6.4 |
) |
|
|
(6.0 |
) |
|
|
(18.9 |
) |
|
|
(17.5 |
) |
Net earnings attributable to |
$ |
251.1 |
|
|
$ |
243.1 |
|
|
$ |
785.8 |
|
|
$ |
755.8 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net earnings per share attributable to |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
4.77 |
|
|
$ |
4.60 |
|
|
$ |
14.91 |
|
|
$ |
14.29 |
|
Diluted |
|
4.70 |
|
|
|
4.51 |
|
|
|
14.69 |
|
|
|
14.00 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
52.6 |
|
|
|
52.8 |
|
|
|
52.7 |
|
|
|
52.9 |
|
Effect of dilutive securities |
|
0.8 |
|
|
|
1.1 |
|
|
|
0.8 |
|
|
|
1.1 |
|
Diluted |
|
53.4 |
|
|
|
53.9 |
|
|
|
53.5 |
|
|
|
54.0 |
|
Supplemental Segment Information (Amounts in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales: |
|
|
|
|
|
|
|
||||||||
|
$ |
365.7 |
|
|
$ |
366.4 |
|
|
$ |
1,097.6 |
|
|
$ |
1,094.4 |
|
|
|
500.5 |
|
|
|
515.4 |
|
|
|
1,482.6 |
|
|
|
1,575.5 |
|
|
|
422.7 |
|
|
|
431.8 |
|
|
|
1,341.3 |
|
|
|
1,330.4 |
|
Segment net sales |
|
1,288.9 |
|
|
|
1,313.6 |
|
|
|
3,921.5 |
|
|
|
4,000.3 |
|
Intersegment eliminations |
|
(141.9 |
) |
|
|
(154.3 |
) |
|
|
(412.8 |
) |
|
|
(466.7 |
) |
Total net sales |
|
1,147.0 |
|
|
|
1,159.3 |
|
|
|
3,508.7 |
|
|
|
3,533.6 |
|
Financial Services revenue |
|
100.4 |
|
|
|
94.9 |
|
|
|
300.5 |
|
|
|
280.9 |
|
Total revenues |
$ |
1,247.4 |
|
|
$ |
1,254.2 |
|
|
$ |
3,809.2 |
|
|
$ |
3,814.5 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings: |
|
|
|
|
|
|
|
||||||||
|
$ |
61.0 |
|
|
$ |
58.1 |
|
|
$ |
178.6 |
|
|
$ |
172.0 |
|
|
|
108.3 |
|
|
|
113.4 |
|
|
|
340.4 |
|
|
|
382.8 |
|
|
|
107.3 |
|
|
|
104.9 |
|
|
|
333.8 |
|
|
|
319.9 |
|
Financial Services |
|
71.7 |
|
|
|
69.4 |
|
|
|
210.2 |
|
|
|
202.6 |
|
Segment operating earnings |
|
348.3 |
|
|
|
345.8 |
|
|
|
1,063.0 |
|
|
|
1,077.3 |
|
Corporate |
|
(24.2 |
) |
|
|
(31.2 |
) |
|
|
(49.2 |
) |
|
|
(92.7 |
) |
Operating earnings |
|
324.1 |
|
|
|
314.6 |
|
|
|
1,013.8 |
|
|
|
984.6 |
|
Interest expense |
|
(12.5 |
) |
|
|
(12.4 |
) |
|
|
(37.3 |
) |
|
|
(37.4 |
) |
Other income (expense) – net |
|
20.6 |
|
|
|
18.0 |
|
|
|
57.4 |
|
|
|
50.0 |
|
Earnings before income taxes |
$ |
332.2 |
|
|
$ |
320.2 |
|
|
$ |
1,033.9 |
|
|
$ |
997.2 |
|
Condensed Consolidated Balance Sheets (Amounts in millions) (unaudited) |
|||||||
|
|
|
|
||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,313.3 |
|
|
$ |
1,001.5 |
|
Trade and other accounts receivable – net |
|
796.4 |
|
|
|
791.3 |
|
Finance receivables – net |
|
624.7 |
|
|
|
594.1 |
|
Contract receivables – net |
|
122.1 |
|
|
|
120.8 |
|
Inventories – net |
|
995.8 |
|
|
|
1,005.9 |
|
Prepaid expenses and other current assets |
|
148.4 |
|
|
|
138.4 |
|
Total current assets |
|
4,000.7 |
|
|
|
3,652.0 |
|
|
|
|
|
||||
Property and equipment – net |
|
548.3 |
|
|
|
539.3 |
|
Operating lease right-of-use assets |
|
78.0 |
|
|
|
74.7 |
|
Deferred income tax assets |
|
79.7 |
|
|
|
76.0 |
|
Long-term finance receivables – net |
|
1,309.0 |
|
|
|
1,284.2 |
|
Long-term contract receivables – net |
|
422.1 |
|
|
|
407.9 |
|
|
|
1,086.6 |
|
|
|
1,097.4 |
|
Other intangible assets – net |
|
277.3 |
|
|
|
268.9 |
|
Pension assets |
|
134.5 |
|
|
|
130.5 |
|
Other long-term assets |
|
17.1 |
|
|
|
14.0 |
|
Total assets |
$ |
7,953.3 |
|
|
$ |
7,544.9 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Notes payable |
$ |
14.3 |
|
|
$ |
15.6 |
|
Accounts payable |
|
270.0 |
|
|
|
238.0 |
|
Accrued benefits |
|
59.4 |
|
|
|
64.4 |
|
Accrued compensation |
|
83.5 |
|
|
|
102.9 |
|
Franchisee deposits |
|
79.2 |
|
|
|
73.3 |
|
Other accrued liabilities |
|
450.0 |
|
|
|
447.4 |
|
Total current liabilities |
|
956.4 |
|
|
|
941.6 |
|
|
|
|
|
||||
Long-term debt |
|
1,185.3 |
|
|
|
1,184.6 |
|
Deferred income tax liabilities |
|
83.2 |
|
|
|
79.2 |
|
Retiree health care benefits |
|
20.2 |
|
|
|
21.8 |
|
Pension liabilities |
|
65.5 |
|
|
|
82.3 |
|
Operating lease liabilities |
|
57.1 |
|
|
|
54.6 |
|
Other long-term liabilities |
|
87.9 |
|
|
|
87.4 |
|
Total liabilities |
|
2,455.6 |
|
|
|
2,451.5 |
|
|
|
|
|
||||
Equity |
|
|
|
||||
Shareholders' equity attributable to |
|
|
|
||||
Common stock |
|
67.5 |
|
|
|
67.5 |
|
Additional paid-in capital |
|
549.0 |
|
|
|
545.5 |
|
Retained earnings |
|
7,439.0 |
|
|
|
6,948.5 |
|
Accumulated other comprehensive loss |
|
(424.7 |
) |
|
|
(449.5 |
) |
|
|
(2,155.8 |
) |
|
|
(2,040.7 |
) |
Total shareholders' equity attributable to |
|
5,475.0 |
|
|
|
5,071.3 |
|
Noncontrolling interests |
|
22.7 |
|
|
|
22.1 |
|
Total equity |
|
5,497.7 |
|
|
|
5,093.4 |
|
Total liabilities and equity |
$ |
7,953.3 |
|
|
$ |
7,544.9 |
|
Condensed Consolidated Statements of Cash Flows (Amounts in millions) (unaudited) |
|||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net earnings |
$ |
257.5 |
|
|
$ |
249.1 |
|
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: |
|
|
|
||||
Depreciation |
|
18.3 |
|
|
|
17.8 |
|
Amortization of other intangible assets |
|
6.3 |
|
|
|
6.8 |
|
Provision for losses on finance receivables |
|
15.2 |
|
|
|
12.8 |
|
Provision for losses on non-finance receivables |
|
6.0 |
|
|
|
6.2 |
|
Stock-based compensation expense |
|
5.7 |
|
|
|
11.0 |
|
Deferred income tax benefit |
|
(2.8 |
) |
|
|
(7.3 |
) |
Gain on sales of assets |
|
(0.2 |
) |
|
|
(0.3 |
) |
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
||||
Trade and other accounts receivable |
|
(7.3 |
) |
|
|
(7.6 |
) |
Contract receivables |
|
(11.7 |
) |
|
|
(25.0 |
) |
Inventories |
|
(13.3 |
) |
|
|
(7.6 |
) |
Prepaid expenses and other current assets |
|
22.4 |
|
|
|
16.1 |
|
Accounts payable |
|
(4.5 |
) |
|
|
12.6 |
|
Accrued and other liabilities |
|
(17.4 |
) |
|
|
0.8 |
|
Net cash provided by operating activities |
|
274.2 |
|
|
|
285.4 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Additions to finance receivables |
|
(227.1 |
) |
|
|
(243.5 |
) |
Collections of finance receivables |
|
206.5 |
|
|
|
208.4 |
|
Capital expenditures |
|
(20.4 |
) |
|
|
(25.1 |
) |
Disposals of property and equipment |
|
0.4 |
|
|
|
0.5 |
|
Other |
|
0.1 |
|
|
|
— |
|
Net cash used by investing activities |
|
(40.5 |
) |
|
|
(59.7 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Net decrease in other short-term borrowings |
|
(1.3 |
) |
|
|
(0.3 |
) |
Cash dividends paid |
|
(97.9 |
) |
|
|
(85.6 |
) |
Purchases of treasury stock |
|
(59.9 |
) |
|
|
(51.8 |
) |
Proceeds from stock purchase plans and stock option exercises |
|
9.9 |
|
|
|
9.9 |
|
Other |
|
(7.0 |
) |
|
|
(7.5 |
) |
Net cash used by financing activities |
|
(156.2 |
) |
|
|
(135.3 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
3.1 |
|
|
|
(2.4 |
) |
Increase in cash and cash equivalents |
|
80.6 |
|
|
|
88.0 |
|
|
|
|
|
||||
Cash and cash equivalents at beginning of period |
|
1,232.7 |
|
|
|
871.3 |
|
Cash and cash equivalents at end of period |
$ |
1,313.3 |
|
|
$ |
959.3 |
|
|
|
|
|
||||
Supplemental cash flow disclosures: |
|
|
|
||||
Cash paid for interest |
$ |
(13.8 |
) |
|
$ |
(13.8 |
) |
Net cash paid for income taxes |
|
(90.2 |
) |
|
|
(76.8 |
) |
|
|
|
|
Condensed Consolidated Statements of Cash Flows (Amounts in millions) (unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net earnings |
$ |
804.7 |
|
|
$ |
773.3 |
|
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: |
|
|
|
||||
Depreciation |
|
54.7 |
|
|
|
53.6 |
|
Amortization of other intangible assets |
|
19.0 |
|
|
|
20.7 |
|
Provision for losses on finance receivables |
|
50.6 |
|
|
|
40.7 |
|
Provision for losses on non-finance receivables |
|
17.8 |
|
|
|
15.0 |
|
Stock-based compensation expense |
|
21.5 |
|
|
|
31.4 |
|
Deferred income tax benefit |
|
(7.2 |
) |
|
|
(16.5 |
) |
Gain on sales of assets |
|
(0.5 |
) |
|
|
(0.6 |
) |
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
||||
Trade and other accounts receivable |
|
(28.1 |
) |
|
|
(38.3 |
) |
Contract receivables |
|
(15.4 |
) |
|
|
(27.9 |
) |
Inventories |
|
8.6 |
|
|
|
(21.0 |
) |
Prepaid expenses and other current assets |
|
10.5 |
|
|
|
30.3 |
|
Accounts payable |
|
33.6 |
|
|
|
4.3 |
|
Accrued and other liabilities |
|
(45.8 |
) |
|
|
(7.7 |
) |
Net cash provided by operating activities |
|
924.0 |
|
|
|
857.3 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Additions to finance receivables |
|
(731.3 |
) |
|
|
(779.8 |
) |
Collections of finance receivables |
|
629.3 |
|
|
|
626.5 |
|
Capital expenditures |
|
(65.4 |
) |
|
|
(73.9 |
) |
Disposals of property and equipment |
|
2.0 |
|
|
|
1.5 |
|
Other |
|
1.5 |
|
|
|
(1.5 |
) |
Net cash used by investing activities |
|
(163.9 |
) |
|
|
(227.2 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Net decrease in other short-term borrowings |
|
(0.9 |
) |
|
|
— |
|
Cash dividends paid |
|
(294.1 |
) |
|
|
(257.6 |
) |
Purchases of treasury stock |
|
(177.5 |
) |
|
|
(233.8 |
) |
Proceeds from stock purchase plans and stock option exercises |
|
61.6 |
|
|
|
94.5 |
|
Other |
|
(37.4 |
) |
|
|
(27.0 |
) |
Net cash used by financing activities |
|
(448.3 |
) |
|
|
(423.9 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
— |
|
|
|
(4.1 |
) |
Increase in cash and cash equivalents |
|
311.8 |
|
|
|
202.1 |
|
|
|
|
|
||||
Cash and cash equivalents at beginning of year |
|
1,001.5 |
|
|
|
757.2 |
|
Cash and cash equivalents at end of period |
$ |
1,313.3 |
|
|
$ |
959.3 |
|
|
|
|
|
||||
Supplemental cash flow disclosures: |
|
|
|
||||
Cash paid for interest |
$ |
(35.8 |
) |
|
$ |
(36.1 |
) |
Net cash paid for income taxes |
|
(243.9 |
) |
|
|
(224.5 |
) |
|
|
|
|
Non-GAAP Supplemental Data
The following non-GAAP supplemental data is presented for informational purposes to provide readers with insight into the information used by management for assessing the operating performance of
The supplemental Operations data reflects the results of operations and financial position of Snap-on's tools, diagnostics, equipment products, software and other non-financial services operations with Financial Services presented on the equity method. The supplemental Financial Services data reflects the results of operations and financial position of Snap-on's
Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Statements of Earnings (Amounts in millions) (unaudited) |
|||||||||||||||
|
Operations* |
|
Financial Services |
||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,147.0 |
|
|
$ |
1,159.3 |
|
|
$ |
— |
|
|
$ |
— |
|
Cost of goods sold |
|
(559.2 |
) |
|
|
(581.1 |
) |
|
|
— |
|
|
|
— |
|
Gross profit |
|
587.8 |
|
|
|
578.2 |
|
|
|
— |
|
|
|
— |
|
Operating expenses |
|
(335.4 |
) |
|
|
(333.0 |
) |
|
|
— |
|
|
|
— |
|
Operating earnings before financial services |
|
252.4 |
|
|
|
245.2 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Financial services revenue |
|
— |
|
|
|
— |
|
|
|
100.4 |
|
|
|
94.9 |
|
Financial services expenses |
|
— |
|
|
|
— |
|
|
|
(28.7 |
) |
|
|
(25.5 |
) |
Operating earnings from financial services |
|
— |
|
|
|
— |
|
|
|
71.7 |
|
|
|
69.4 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings |
|
252.4 |
|
|
|
245.2 |
|
|
|
71.7 |
|
|
|
69.4 |
|
Interest expense |
|
(12.5 |
) |
|
|
(12.4 |
) |
|
|
— |
|
|
|
— |
|
Intersegment interest income (expense) – net |
|
16.8 |
|
|
|
16.1 |
|
|
|
(16.8 |
) |
|
|
(16.1 |
) |
Other income (expense) – net |
|
20.6 |
|
|
|
17.9 |
|
|
|
— |
|
|
|
0.1 |
|
Earnings before income taxes and equity earnings |
|
277.3 |
|
|
|
266.8 |
|
|
|
54.9 |
|
|
|
53.4 |
|
Income tax expense |
|
(62.0 |
) |
|
|
(57.3 |
) |
|
|
(12.7 |
) |
|
|
(13.8 |
) |
Earnings before equity earnings |
|
215.3 |
|
|
|
209.5 |
|
|
|
42.2 |
|
|
|
39.6 |
|
Financial services – net earnings attributable to Snap-on |
|
42.2 |
|
|
|
39.6 |
|
|
|
— |
|
|
|
— |
|
Net earnings |
|
257.5 |
|
|
|
249.1 |
|
|
|
42.2 |
|
|
|
39.6 |
|
Net earnings attributable to noncontrolling interests |
|
(6.4 |
) |
|
|
(6.0 |
) |
|
|
— |
|
|
|
— |
|
Net earnings attributable to Snap-on |
$ |
251.1 |
|
|
$ |
243.1 |
|
|
$ |
42.2 |
|
|
$ |
39.6 |
|
|
|
|
|
|
|
|
|
||||||||
* Snap-on with Financial Services presented on the equity method. |
Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Statements of Earnings (Amounts in millions) (unaudited) |
|||||||||||||||
|
Operations* |
|
Financial Services |
||||||||||||
|
Nine Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
3,508.7 |
|
|
$ |
3,533.6 |
|
|
$ |
— |
|
|
$ |
— |
|
Cost of goods sold |
|
(1,726.9 |
) |
|
|
(1,762.1 |
) |
|
|
— |
|
|
|
— |
|
Gross profit |
|
1,781.8 |
|
|
|
1,771.5 |
|
|
|
— |
|
|
|
— |
|
Operating expenses |
|
(978.2 |
) |
|
|
(989.5 |
) |
|
|
— |
|
|
|
— |
|
Operating earnings before financial services |
|
803.6 |
|
|
|
782.0 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Financial services revenue |
|
— |
|
|
|
— |
|
|
|
300.5 |
|
|
|
280.9 |
|
Financial services expenses |
|
— |
|
|
|
— |
|
|
|
(90.3 |
) |
|
|
(78.3 |
) |
Operating earnings from financial services |
|
— |
|
|
|
— |
|
|
|
210.2 |
|
|
|
202.6 |
|
|
|
|
|
|
|
|
|
||||||||
Operating earnings |
|
803.6 |
|
|
|
782.0 |
|
|
|
210.2 |
|
|
|
202.6 |
|
Interest expense |
|
(37.3 |
) |
|
|
(37.4 |
) |
|
|
— |
|
|
|
— |
|
Intersegment interest income (expense) – net |
|
50.6 |
|
|
|
47.9 |
|
|
|
(50.6 |
) |
|
|
(47.9 |
) |
Other income (expense) – net |
|
57.3 |
|
|
|
49.8 |
|
|
|
0.1 |
|
|
|
0.2 |
|
Earnings before income taxes and equity earnings |
|
874.2 |
|
|
|
842.3 |
|
|
|
159.7 |
|
|
|
154.9 |
|
Income tax expense |
|
(189.3 |
) |
|
|
(183.8 |
) |
|
|
(39.9 |
) |
|
|
(40.1 |
) |
Earnings before equity earnings |
|
684.9 |
|
|
|
658.5 |
|
|
|
119.8 |
|
|
|
114.8 |
|
Financial services – net earnings attributable to Snap-on |
|
119.8 |
|
|
|
114.8 |
|
|
|
— |
|
|
|
— |
|
Net earnings |
|
804.7 |
|
|
|
773.3 |
|
|
|
119.8 |
|
|
|
114.8 |
|
Net earnings attributable to noncontrolling interests |
|
(18.9 |
) |
|
|
(17.5 |
) |
|
|
— |
|
|
|
— |
|
Net earnings attributable to Snap-on |
$ |
785.8 |
|
|
$ |
755.8 |
|
|
$ |
119.8 |
|
|
$ |
114.8 |
|
|
|
|
|
|
|
|
|
||||||||
* Snap-on with Financial Services presented on the equity method. |
Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Balance Sheets (Amounts in millions) (unaudited) |
|||||||||||
|
Operations* |
|
Financial Services |
||||||||
|
|
|
|
|
|
|
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Assets |
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
$ |
1,313.2 |
|
$ |
1,001.3 |
|
$ |
0.1 |
|
$ |
0.2 |
Intersegment receivables |
|
18.3 |
|
|
15.7 |
|
|
— |
|
|
— |
Trade and other accounts receivable – net |
|
795.8 |
|
|
790.6 |
|
|
0.6 |
|
|
0.7 |
Finance receivables – net |
|
— |
|
|
— |
|
|
624.7 |
|
|
594.1 |
Contract receivables – net |
|
4.7 |
|
|
5.5 |
|
|
117.4 |
|
|
115.3 |
Inventories – net |
|
995.8 |
|
|
1,005.9 |
|
|
— |
|
|
— |
Prepaid expenses and other current assets |
|
151.5 |
|
|
143.2 |
|
|
10.2 |
|
|
7.4 |
Total current assets |
|
3,279.3 |
|
|
2,962.2 |
|
|
753.0 |
|
|
717.7 |
|
|
|
|
|
|
|
|
||||
Property and equipment – net |
|
545.9 |
|
|
536.5 |
|
|
2.4 |
|
|
2.8 |
Operating lease right-of-use assets |
|
77.5 |
|
|
73.8 |
|
|
0.5 |
|
|
0.9 |
Investment in Financial Services |
|
405.9 |
|
|
393.9 |
|
|
— |
|
|
— |
Deferred income tax assets |
|
53.1 |
|
|
51.3 |
|
|
26.6 |
|
|
24.7 |
Intersegment long-term notes receivable |
|
844.2 |
|
|
785.6 |
|
|
— |
|
|
— |
Long-term finance receivables – net |
|
— |
|
|
— |
|
|
1,309.0 |
|
|
1,284.2 |
Long-term contract receivables – net |
|
8.3 |
|
|
8.3 |
|
|
413.8 |
|
|
399.6 |
|
|
1,086.6 |
|
|
1,097.4 |
|
|
— |
|
|
— |
Other intangible assets – net |
|
277.3 |
|
|
268.9 |
|
|
— |
|
|
— |
Pension assets |
|
134.5 |
|
|
130.5 |
|
|
— |
|
|
— |
Other long-term assets |
|
34.9 |
|
|
30.2 |
|
|
0.1 |
|
|
0.1 |
Total assets |
$ |
6,747.5 |
|
$ |
6,338.6 |
|
$ |
2,505.4 |
|
$ |
2,430.0 |
|
|
|
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
|
|
|
|
||||
Notes payable |
$ |
14.3 |
|
$ |
15.6 |
|
$ |
— |
|
$ |
— |
Accounts payable |
|
268.8 |
|
|
236.2 |
|
|
1.2 |
|
|
1.8 |
Intersegment payables |
|
— |
|
|
— |
|
|
18.3 |
|
|
15.7 |
Accrued benefits |
|
59.4 |
|
|
64.4 |
|
|
— |
|
|
— |
Accrued compensation |
|
80.6 |
|
|
99.9 |
|
|
2.9 |
|
|
3.0 |
Franchisee deposits |
|
79.2 |
|
|
73.3 |
|
|
— |
|
|
— |
Other accrued liabilities |
|
434.8 |
|
|
432.2 |
|
|
28.5 |
|
|
27.4 |
Total current liabilities |
|
937.1 |
|
|
921.6 |
|
|
50.9 |
|
|
47.9 |
|
|
|
|
|
|
|
|
||||
Long-term debt and intersegment long-term debt |
|
— |
|
|
— |
|
|
2,029.5 |
|
|
1,970.2 |
Deferred income tax liabilities |
|
83.2 |
|
|
79.2 |
|
|
— |
|
|
— |
Retiree health care benefits |
|
20.2 |
|
|
21.8 |
|
|
— |
|
|
— |
Pension liabilities |
|
65.5 |
|
|
82.3 |
|
|
— |
|
|
— |
Operating lease liabilities |
|
57.0 |
|
|
54.0 |
|
|
0.1 |
|
|
0.6 |
Other long-term liabilities |
|
86.8 |
|
|
86.3 |
|
|
19.0 |
|
|
17.4 |
Total liabilities |
|
1,249.8 |
|
|
1,245.2 |
|
|
2,099.5 |
|
|
2,036.1 |
|
|
|
|
|
|
|
|
||||
Total shareholders' equity attributable to Snap-on |
|
5,475.0 |
|
|
5,071.3 |
|
|
405.9 |
|
|
393.9 |
Noncontrolling interests |
|
22.7 |
|
|
22.1 |
|
|
— |
|
|
— |
Total equity |
|
5,497.7 |
|
|
5,093.4 |
|
|
405.9 |
|
|
393.9 |
Total liabilities and equity |
$ |
6,747.5 |
|
$ |
6,338.6 |
|
$ |
2,505.4 |
|
$ |
2,430.0 |
|
|
|
|
|
|
|
|
||||
* Snap-on with Financial Services presented on the equity method. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017724747/en/
For additional information, please visit
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or contact:
Investors:
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