ACCO Brands Posts First Quarter 2021 Sales Increase of 7 Percent Based on Strength in PowerA and EMEA
ACCO Brands Corporation (NYSE: ACCO) today announced its first quarter results for the period ended March 31, 2021.
-
EPS was
$(0.21) versus$0.08 in prior year -
Adjusted EPS was
$0.10 versus$0.14 in 2020 -
Net sales were
$411 million , up 7 percent from 2020 - PowerA results exceeded expectations
- Strong EMEA performance continued
- Refinanced bond and bank debt to reduce interest cost/extend tenor
"Our first quarter results were better than we expected, as we posted strong results despite comparisons against a quarter last year that was minimally impacted by COVID-19. I am particularly pleased that we accelerated our growth in consumer and work-from-home product categories as we progressed with our strategy of transforming toward a more consumer-oriented business. We saw improvements in many of our businesses, led by outstanding results in PowerA and EMEA. We also took strategic restructuring and refinancing actions to further lower long-term costs, and extend the tenor and reduce interest costs on our debt. I believe we are well-positioned for solid growth as the world economies recover from the pandemic," said Boris Elisman, Chairman, President and Chief Executive Officer of ACCO Brands.
First Quarter Results
Net sales increased 6.9 percent to
The Company reported an operating loss of
The Company had a net loss of
Business Segment Results
ACCO Brands North America - Sales of
The segment had an operating loss of
ACCO Brands EMEA - Sales of
Operating income of
ACCO Brands International - Sales of
Operating income of
Capital Allocation
For the quarter, the company had
Outlook
Second quarter sales are expected to be in a range of
As previously announced, beginning with the first quarter of 2021, the Company changed the way it calculates and reports its adjusted non-GAAP measures by excluding non-cash amortization of acquisition-related intangible assets. The Company has made several large acquisitions over the last few years, and has publicly committed to continue to transform its business through acquisitions in the future. As a result of its acquisition strategy, the Company has, and likely will continue to have in the foreseeable future, a large amount of acquisition-related amortization expense. The Company believes that this change will enhance the usefulness of its non-GAAP measures to its investors because it reflects the underlying operating results before amortization expense which is not associated with core operations, and facilitates meaningful period-to-period and peer comparisons.
Webcast
At 8:30 a.m. EDT on April 28, 2021, ACCO Brands Corporation will host a conference call to discuss the company's first quarter 2021 results. The call will be broadcast live via webcast. The webcast can be accessed through the Investor Relations section of www.accobrands.com. The webcast will be in listen-only mode and will be available for replay following the event.
About ACCO Brands Corporation
ACCO Brands Corporation is one of the world's largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Barrilito®, Derwent®, Esselte®, Five Star®, Foroni®, GBC®, Hilroy®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, Wilson Jones®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this earnings release to aid investors in understanding the company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the "About Non-GAAP Financial Measures" section of this earnings release.
Forward-Looking Statements
Statements contained in this earnings release, other than statements of historical fact, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, operating strategies and similar matters, including without limitation, statements concerning the impacts of the COVID-19 pandemic on the Company's business, operations, results of operations, liquidity and financial condition, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words "will," "believe," "expect," "intend," "anticipate," "estimate," "forecast," "project," "plan," and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Because actual results may differ materially from those suggested or implied by such forward-looking statements, you should not place undue reliance on them when deciding whether to buy, sell or hold the Company's securities.
Our outlook is based on certain assumptions, which we believe to be reasonable under the circumstances. These include, without limitation, assumptions regarding both the near-term and long-term impact of the COVID-19 pandemic on the economy and our business, our customers and the end-users of our products, and other changes in the macro environment; changes in the competitive landscape, including ongoing uncertainties in the traditional office products channels; as well as the impact of fluctuations in foreign currency and acquisitions and the other factors described below.
Among the factors that could cause our actual results to differ materially from our forward-looking statements are: the scope and duration of the COVID-19 pandemic, government actions and other third-party responses to it and the consequences for the global economy, as well as the regional and local economies in which we operate, uncertainties regarding when the risks of the pandemic will subside and how geographies, distribution channels and consumer behaviors will evolve over time in response to the pandemic, and its impact on our business, operations, results of operations and financial condition, including, among others, manufacturing, distribution and supply chain disruptions, reduced demand for our products and services, and the financial condition of our suppliers and customers, including their ability to fund their operations and pay their invoices. Additionally, many of the other risk factors affecting us are currently elevated by, and likely will continue to be elevated by, the COVID-19 pandemic.
Other factors that could cause actual results to differ materially from our forward-looking statements are: a relatively limited number of large customers account for a significant percentage of our sales; risks associated with shifts in the channels of distribution for our products; issues that affect customer and consumer spending decisions during periods of economic uncertainty or weakness; risks associated with foreign currency fluctuations; challenges related to the highly competitive business environments in which we operate; our ability to develop and market innovative products that meet consumer demands; our ability to grow profitably through acquisitions and expand our product assortment into new and adjacent categories; our ability to successfully integrate acquisitions and achieve the financial and other results anticipated at the time of acquisition, including planned synergies; our ability to successfully implement our cost reduction and productivity initiatives; risks associated with the changes to U.S. trade policies and regulations, including increased import tariffs and overall uncertainty surrounding international trade relations; the failure, inadequacy or interruption of our information technology systems or supporting infrastructure; risks associated with a cybersecurity incident or information security breach, including that related to a disclosure of personally identifiable information; our ability to successfully expand our business in emerging markets and the exposure to greater financial, operational, regulatory and compliance and other risks in such markets; the effects of the U.S. Tax Cuts and Jobs Act; the impact of litigation or other legal proceedings; the risks associated with outsourcing production of certain of our products, information systems and other administrative functions; the continued decline in the use of certain of our products; risks associated with seasonality; risks associated with changes in the cost or availability of raw materials, labor, transportation and other necessary supplies and services and the cost of finished goods; our failure to comply with applicable laws, rules and regulations and self-regulatory requirements and the costs of compliance; the sufficiency of investment returns on pension assets; risks related to actuarial assumptions and changes in the unfunded liabilities of a multi-employer pension plan; any impairment of our intangible assets; risks associated with our indebtedness, including our debt service obligations, limitations imposed by restrictive covenants, our ability to comply with financial ratios and tests, and the phase out of the London Interbank Offered Rate; a change in or discontinuance of our stock repurchase program or the payment of dividends; the bankruptcy or financial instability of our customers and suppliers; our ability to secure, protect and maintain our intellectual property rights; product liability claims, recalls or regulatory actions; our ability to attract and retain key employees; the volatility of our stock price; risks associated with circumstances outside our control, including those caused by public health crises, such as the occurrence of contagious diseases like COVID-19, war, terrorism and other geopolitical incidents; and other risks and uncertainties described in "Part I, Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2020, and in other reports we file with the SEC.
1 "COVID-19 impacts" include the operational, financial, and other effects on ACCO Brands, its customers, and end users of its products, of school and business closures, work from home, remote and hybrid learning, government orders, and manufacturing, distribution, supply chain and other disruptions resulting from COVID-19 and the actions ACCO Brands, its customers and end users have taken in response to the pandemic, including actions we have taken to manage our inventory and credit risk under the circumstances.
ACCO Brands Corporation and Subsidiaries Condensed Consolidated Balance Sheets |
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(unaudited) |
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(in millions) |
March 31,
|
|
December 31,
|
||||||
Assets |
|
|
|
||||||
Current assets: |
|
|
|
||||||
Cash and cash equivalents |
$ |
75.1 |
|
|
|
$ |
36.6 |
|
|
Accounts receivable, net |
307.8 |
|
|
|
356.0 |
|
|
||
Inventories |
351.2 |
|
|
|
305.1 |
|
|
||
Other current assets |
45.7 |
|
|
|
30.5 |
|
|
||
Total current assets |
779.8 |
|
|
|
728.2 |
|
|
||
Total property, plant and equipment |
648.1 |
|
|
|
657.8 |
|
|
||
Less: accumulated depreciation |
(418.9 |
) |
|
|
(416.4 |
) |
|
||
Property, plant and equipment, net |
229.2 |
|
|
|
241.4 |
|
|
||
Right of use asset, leases |
84.1 |
|
|
|
89.2 |
|
|
||
Deferred income taxes |
124.4 |
|
|
|
136.5 |
|
|
||
Goodwill |
799.7 |
|
|
|
827.4 |
|
|
||
Identifiable intangibles, net |
947.9 |
|
|
|
977.0 |
|
|
||
Other non-current assets |
36.6 |
|
|
|
49.0 |
|
|
||
Total assets |
$ |
3,001.7 |
|
|
|
$ |
3,048.7 |
|
|
Liabilities and Stockholders' Equity |
|
ACCO Brands Corporation
NYSE:ACCOACCO RankingsACCO Latest NewsACCO Stock Data
492.54M
90.54M
3.24%
85.28%
1.61%
Office Supplies (except Paper) Manufacturing
Manufacturing
United States of America
LAKE ZURICH
About ACCOacco brands (nyse: acco) is one of the world's largest suppliers of select categories of branded office products, with revenues of nearly $1.8 billion. we market products in over 100 countries across the globe through our own sales force and distribution networks. our industry-leading brands and products include at-a-glance® and day-timer®, five star®, gbc®, hilroy®, kensington®, marbig, mead®, quartet®, rexel, swingline®, tilibra®, wilson jones and many others. we're proud of our long history of industry leadership and innovation, and we're focused on delivering exceptional value for our shareholders and customers by providing unique, leading-edge, branded office products. we are passionate about building a winning culture for its employees. we are dedicated to providing a rewarding and challenging career path with opportunities across the globe in a variety of disciplines. our results–oriented and fast paced, dynamic environment will provide an opportunity to thrive in your career
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