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EX-99.2 3 exhibit992financialsq12024.htm EX-99.2 STANLEY BLACK & DECKER, INC - Financial statements and supporting schedules contained in Stanley Black & Decker, Inc.'s May 2, 2024 press release.
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts) 
 FIRST QUARTER
 20242023
NET SALES$3,869.5 $3,931.8 
COSTS AND EXPENSES
Cost of sales2,761.0 3,096.3 
Gross profit1,108.5 835.5 
% of Net Sales28.6 %21.2 %
Selling, general and administrative851.8 825.1 
% of Net Sales22.0 %21.0 %
Other - net80.0 63.7 
Loss on sales of businesses— 7.6 
Asset impairment charge25.5 — 
Restructuring charges15.0 12.1 
Income (loss) from operations136.2 (73.0)
Interest - net87.9 91.1 
EARNINGS (LOSS) BEFORE INCOME TAXES48.3 (164.1)
Income taxes28.8 23.7 
NET EARNINGS (LOSS)$19.5 $(187.8)
EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Basic$0.13 $(1.26)
Diluted$0.13 $(1.26)
DIVIDENDS PER SHARE OF COMMON STOCK$0.81 $0.80 
WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)
Basic150,235149,574
Diluted150,941149,574
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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
 
March 30, 2024December 30, 2023
ASSETS
Cash and cash equivalents$476.6 $449.4 
Accounts and notes receivable, net1,708.9 1,302.0 
Inventories, net4,693.3 4,738.6 
Current assets held for sale136.3 140.8 
Other current assets405.7 386.5 
Total current assets7,420.8 7,017.3 
Property, plant and equipment, net2,115.9 2,169.9 
Goodwill and other intangibles, net11,857.8 11,945.5 
Long-term assets held for sale691.2 716.8 
Other assets1,768.2 1,814.3 
Total assets$23,853.9 $23,663.8 
LIABILITIES AND SHAREOWNERS’ EQUITY
Short-term borrowings$1,740.4 $1,074.8 
Current maturities of long-term debt500.0 1.1 
Accounts payable2,337.5 2,298.9 
Accrued expenses2,206.5 2,464.3 
Current liabilities held for sale45.0 44.1 
Total current liabilities6,829.4 5,883.2 
Long-term debt5,602.1 6,101.0 
Long-term liabilities held for sale83.4 84.8 
Other long-term liabilities2,462.6 2,538.7 
Shareowners’ equity8,876.4 9,056.1 
Total liabilities and shareowners' equity$23,853.9 $23,663.8 

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
 
FIRST QUARTER
 20242023
OPERATING ACTIVITIES
Net earnings (loss)$19.5 $(187.8)
Depreciation and amortization140.2 161.2 
Loss on sales of businesses— 7.6 
Asset impairment charge25.5 — 
Changes in working capital1
(359.8)(181.2)
Other(256.4)(86.1)
Net cash used in operating activities(431.0)(286.3)
INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures(65.7)(68.2)
Proceeds from debt issuances, net of fees— 747.2 
Net short-term commercial paper borrowings (repayments) 674.9 (285.9)
Proceeds from issuances of common stock3.8 3.1 
Purchases of common stock for treasury(6.3)(4.8)
Cash dividends on common stock(121.8)(119.8)
Effect of exchange rate changes on cash(27.6)9.1 
Other0.5 (8.6)
Net cash provided by investing and financing activities457.8 272.1 
Increase (decrease) in cash, cash equivalents and restricted cash26.8 (14.2)
Cash, cash equivalents and restricted cash, beginning of period454.6 404.9 
Cash, cash equivalents and restricted cash, end of period$481.4 $390.7 
Free Cash Flow Computation2
Net cash used in operating activities$(431.0)$(286.3)
Less: capital and software expenditures(65.7)(68.2)
Free cash flow (before dividends)$(496.7)$(354.5)
Reconciliation of Cash, Cash Equivalents and Restricted Cash
March 30, 2024December 30, 2023
Cash and cash equivalents$476.6 $449.4 
Restricted cash included in Other current assets1.5 4.6 
Cash and cash equivalents included in Current assets held for sale3.3 0.6 
Cash, cash equivalents and restricted cash$481.4 $454.6 
1
Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
2
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items.
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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)

 
 FIRST QUARTER
 20242023
NET SALES
Tools & Outdoor$3,284.6 $3,315.4 
Industrial584.9 616.4 
Total$3,869.5 $3,931.8 
SEGMENT PROFIT
Tools & Outdoor$255.7 $18.7 
Industrial65.2 67.4 
Segment Profit320.9 86.1 
Corporate Overhead (64.2)(75.7)
Total$256.7 $10.4 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor7.8 %0.6 %
Industrial11.1 %10.9 %
Segment Profit8.3 %2.2 %

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

 
FIRST QUARTER 2024
 GAAPNon-GAAP Adjustments
Non-GAAP1
Gross profit$1,108.5 $14.4 $1,122.9 
% of Net Sales28.6 %29.0 %
Selling, general and administrative851.8 (20.1)831.7 
% of Net Sales22.0 %21.5 %
Earnings before income taxes48.3 71.5 119.8 
Income taxes28.8 6.8 35.6 
Net earnings19.5 64.7 84.2 
Diluted earnings per share of common stock$0.13 $0.43 $0.56 
FIRST QUARTER 2023
 GAAPNon-GAAP Adjustments
Non-GAAP1
Gross profit$835.5 $73.4 $908.9 
% of Net Sales21.2 %23.1 %
Selling, general and administrative825.1 (20.7)804.4 
% of Net Sales21.0 %20.5 %
Loss before income taxes(164.1)106.8 (57.3)
Income taxes23.7 (20.4)3.3 
Net loss(187.8)127.2 (60.6)
Diluted loss per share of common stock$(1.26)$0.85 $(0.41)
1
The Non-GAAP 2024 and 2023 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 14.
 


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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
FIRST QUARTER 2024
 GAAP
Non-GAAP Adjustments1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$255.7 $22.9 $278.6 
Industrial65.2 5.7 70.9 
Segment Profit320.9 28.6 349.5 
Corporate Overhead(64.2)5.9 (58.3)
Total$256.7 $34.5 $291.2 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor7.8 %8.5 %
Industrial11.1 %12.1 %
Segment Profit8.3 %9.0 %
1
Non-GAAP adjustments relate primarily to footprint actions associated with the supply chain transformation and transition services costs related to previously divested businesses.
FIRST QUARTER 2023
 GAAP
Non-GAAP Adjustments2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$18.7 $79.2 $97.9 
Industrial67.4 0.3 67.7 
Segment Profit86.1 79.5 165.6 
Corporate Overhead (75.7)14.6 (61.1)
Total$10.4 $94.1 $104.5 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor0.6 %3.0 %
Industrial10.9 %11.0 %
Segment Profit2.2 %4.2 %
2
Non-GAAP adjustments relate primarily to footprint actions and other costs associated with the supply chain transformation and integration-related costs.
3
The Non-GAAP 2024 and 2023 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS (LOSS) TO EBITDA
(Unaudited, Millions of Dollars)
FIRST QUARTER
20242023
Net earnings (loss)$19.5 $(187.8)
% of Net Sales0.5 %(4.8)%
Interest - net87.9 91.1 
Income taxes28.8 23.7 
Depreciation and amortization140.2 161.2 
EBITDA1
$276.4 $88.2 
% of Net Sales7.1 %2.2 %
Non-GAAP Adjustments before income taxes71.5 106.8 
Less: Accelerated depreciation included in Non-GAAP Adjustments before income taxes5.3 17.5 
Adjusted EBITDA1
$342.6 $177.5 
% of Net Sales8.9 %4.5 %
1EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized below. EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company’s operating results and ensures appropriate comparability to prior periods.

SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES
(Unaudited, Millions of Dollars)
FIRST QUARTER
20242023
Supply Chain Transformation Costs:
Footprint Rationalization2
$8.4 $59.3 
Strategic Sourcing & Operational Excellence3
5.8 14.1 
Facility-related costs0.7 0.7 
Voluntary retirement program— (0.1)
Other charges (gains)(0.5)(0.6)
Gross Profit$14.4 $73.4 
Supply Chain Transformation Costs:
Footprint Rationalization2
$7.5 $0.1 
Complexity Reduction0.3 0.1 
Acquisition & integration-related costs4
2.8 10.1 
Transition services costs related to previously divested businesses5.5 12.8 
Voluntary retirement program— (0.9)
Other charges (gains)4.0 (1.5)
Selling, general and administrative$20.1 $20.7 
Other, net5
$(3.5)$(7.0)
Loss on sale of businesses— 7.6 
Asset impairment charge6
25.5 — 
Restructuring charges 15.0 12.1 
Earnings (loss) before income taxes$71.5 $106.8 

2Footprint Rationalization costs in 2024 primarily relate to accelerated depreciation of production equipment of $4.9 million and other facility exit and re-configuration costs of $10.0 million. In 2023, transfers and closures of targeted manufacturing sites, including Fort Worth, Texas and Cheraw, South Carolina as previously announced in March 2023, resulted in accelerated depreciation of production equipment of $17.0 million and non-cash asset write-downs of $42.2 million (predominantly tooling, raw materials and WIP).
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Exhibit 99.2
3Strategic Sourcing & Operational Excellence costs in 2023 primarily relate to third-party consultant fees to provide expertise in identifying and quantifying opportunities to source in a more integrated manner and re-design in-plant operations following footprint rationalization, developing a detailed program and related governance, and assisting the Company with the implementation of actions necessary to achieve the related objectives.
4Acquisition & integration-related costs primarily relate to the MTD and Excel acquisitions, including costs to integrate the organizations and shared processes, as well as harmonize key IT applications and infrastructure.
5Includes deal-related costs, net of income related to providing transition services to previously divested businesses.
6The $25.5 million pre-tax asset impairment charge in 2024 related to the Infrastructure business.
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