Graco Inc (GGG) 10-Q Quarterly Report October 2018



FOR IMMEDIATE RELEASE:	FOR FURTHER INFORMATION:
Monday, January 29, 2018	Financial Contact: Christian Rothe, 612-623-6205 Media Contact: Charlotte Boyd, 612-623-6153 Charlotte_M_Boyd@graco.com

Graco Reports 2017 Financial Results

Finishes Year with Double-digit Percentage Annual Sales Growth

MINNEAPOLIS (January 29, 2018) - Graco Inc. (NYSE: GGG) today announced results for the fourth quarter and year ended December 29, 2017.

Summary

$ in millions except per share amounts



	Three Months Ended							Twelve Months Ended
	Dec 29, 2017		Dec 30, 2016			% Change		Dec 29, 2017		Dec 30, 2016		% Change
Net Sales	$	374.9	$	349.1		7	%	$	1,474.7	$	1,329.3	11	%
Operating Earnings	76.2		(106.9		)	171	%	360.4		113.9		217	%
Net Earnings	36.4		(104.2		)	135	%	252.4		40.7		521	%
Diluted Net Earnings per Common Share	$	0.21	$	(0.61	)	134	%	$	1.45	$	0.24	504	%

Adjusted (non-GAAP) (1):
Operating Earnings, adjusted	$	88.3	$	85.1		4	%	$	372.5	$	305.9	22	%
Net Earnings, adjusted	59.4		57.2			4	%	249.4		202.1		23	%
Diluted Net Earnings per Common Share, adjusted	$	0.34	$	0.33		3	%	$	1.43	$	1.18	21	%

(1) Excludes impacts of non-recurring income tax adjustments, changes in accounting for stock compensation, and pension restructuring in 2017. Also excludes the effects of impairment charges recorded in 2016. See Financial Results Adjusted for Comparability below for a reconciliation of adjusted non-GAAP financial measures to GAAP.


•	Sales for the quarter increased in all segments and regions. There were 14 weeks in the fiscal fourth quarter of 2016 compared to 13 weeks in 2017. All segments finished with double-digit percentage growth for the year.


•	Gross margin rates for the quarter and year remained strong.


•	Increases in sales and earnings-based incentives, spending on growth initiatives and the pension settlement loss contributed to higher operating expenses in the fourth quarter of 2017.


•	Diluted earnings per share in 2017 include a benefit of $0.09 for the quarter and $0.21 for the year from a required change in accounting for stock compensation.


•	Non-recurring income tax adjustments reduced diluted earnings per share in 2017 by $0.17 for the quarter and $0.14 for the year.


•	2016 results included impairment charges that reduced diluted earnings per share for the quarter and year by $0.94.

More . . .

The following information was filed by Graco Inc (GGG) on Monday, January 29, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Graco Inc's 10-Q Quarterly Report:

Financial - Income Highlight
Adjusted to exclude the impacts of excess tax benefits related to stock option exercises, the benefit from a $40 million contribution to a pension plan in 2018, and the benefits from certain tax planning activities in 2017 see above for reconciliation of adjusted non-GAAP financial measures to GAAP, the effective income tax rate was approximately 21 percent for both the quarter and year to date.
Financial - Income Highlight
A calculation of the non-GAAP measurements of adjusted income taxes, effective income tax rates, net earnings and diluted earnings per share follows in millions except per share amounts:
Revenue - Product Highlight
As a result, we believe Graco is well positioned to deliver another record year of sales and earnings in 2018.
Financial - Earnings Highlight
Gross profit margin rate for the quarter decreased from the comparable period last year due to lower margin rates of acquired operations.
Financial - Earnings
Operating margin rates for this...Read more
M & A - Other
The increase includes $6 million...Read more
M & A - Other
Acquired operations contributed 3 percentage...Read more
Financial - Shares
The new credit agreement provides...Read more
Financial - Expense
The favorable effects of realized...Read more
Revenue - Product
For the year to date,...Read more
M & A - Other
Increases in accounts receivable and...Read more
Revenue - Product
Industrial segment sales growth included...Read more
Revenue - Product
The Process segment had sales...Read more
Financial - Expense
Year-to-date operating expenses increased $29...Read more
Financial - Earnings
Operating margin rates for the...Read more
Revenue - Product
Increases in Contractor segment sales...Read more
Revenue - Product
Sales for the quarter and...Read more
Revenue - Product
Finishing systems sales and other...Read more
Financial - Earnings
The favorable effects of currency...Read more
Financial - Expense
Total operating expenses for the...Read more
Other - Other
Future results could differ materially...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Graco Inc provided additional information to their SEC Filing as exhibits

Exhibit 31: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Exhibit 99: Additional Exhibits

Ticker: GGG
CIK: 42888
Form Type: 10-Q Quarterly Report
Accession Number: 0000042888-18-000053
Submitted to the SEC: Wed Oct 24 2018 4:18:33 PM EST
Accepted by the SEC: Wed Oct 24 2018
Period: Friday, September 28, 2018
Industry: Pumps And Pumping Equipment