Business Context and Reporting Period
Company: Brunswick Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: July 27, 2017
Reporting Period: Second Quarter 2017
This filing serves as a notification that Brunswick Corporation has announced its financial results for the second quarter of 2017. The detailed earnings announcement is incorporated by reference as Exhibit 99.1.
Key Financial Metrics
The provided text does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the referenced news release (Exhibit 99.1) and are not present in the body of this Form 8-K.
The filing defines the following non-GAAP measures used in the referenced earnings release:
- Adjusted Diluted EPS: Diluted earnings per common share from continuing operations, excluding impacts from restructuring, exit, integration, impairment charges, pension settlements, debt extinguishment, special tax items, and discontinued operations.
- Adjusted Operating Earnings: Operating earnings excluding pension settlement charges and restructuring, exit, integration, and impairment charges.
- Adjusted Pretax Earnings: Earnings before income taxes excluding pension settlements, restructuring, exit, integration, impairment charges, equity method investment impairments, and loss on early debt extinguishment.
- Free Cash Flow: Cash flow from operating and investing activities, excluding cash used for acquisitions, investments, and marketable securities transactions.
Material Changes and Methodology
The filing does not provide specific data on material changes versus the prior period. However, it notes the following methodological context for the referenced results:
- Constant Currency: Percentage changes in net sales are presented on a constant currency basis to reflect underlying business trends by excluding the impact of foreign currency exchange rate fluctuations.
- Non-GAAP Usage: Management utilizes non-GAAP measures to provide a perspective on ongoing business performance and improve comparability against prior periods by excluding unusual or non-recurring items.
Guidance, Outlook, and Risks
Guidance: Brunswick does not provide forward-looking guidance for certain financial measures on a GAAP basis. Management states it is unable to predict specific items included in GAAP measures without unreasonable effort, such as pension settlement charges, restructuring costs, and special tax items.
Management Commentary: Management believes the defined non-GAAP measures are useful to investors as they align with internal evaluation tools and allow for a clearer view of ongoing performance.
Risks and Contingencies: The filing includes standard disclaimers that the information in the report and exhibits is not deemed "filed" under Section 18 of the Securities Exchange Act of 1934 and is not subject to the liabilities of that section, except as expressly incorporated by reference.
Investor Verification Checklist
- Review Exhibit 99.1 (News Release dated July 27, 2017) for specific revenue, earnings, and cash flow figures.
- Verify the reconciliation between GAAP and non-GAAP financial measures (Adjusted EPS, Adjusted Operating Earnings) in the news release.
- Assess the impact of foreign currency exchange rates on net sales by comparing reported growth versus constant currency growth in the news release.
- Identify specific amounts excluded from non-GAAP measures, such as restructuring charges, pension settlements, and impairment charges.