Brunswick Corporation (NYSE:BC) Q1 2024 Earnings Conference Call April 25, 2024 11:00 AM ET Company Participants Neha Clark - Senior Vice President, Enterprise Finance Dave Foulkes - Chief Executive Officer Ryan Gwillim - Chief Financial Officer Conference Call Participants James Hardiman - Citi Scott Stember - ROTH MKM Megan Alexander - Morgan Stanley Craig Kennison - Baird Mike Swartz - Truist Securities Matthew Boss - JPMorgan Fred Wightman - Wolfe Research Jamie Katz - Morningstar Xian Siew - BNP Pariba ...

Company Performance - Brunswick reported quarterly earnings of $1.35 per share, missing the Zacks Consensus Estimate of $1.36 per share, and down from $2.57 per share a year ago, representing an earnings surprise of -0.74% [1] - The company posted revenues of $1.37 billion for the quarter, missing the Zacks Consensus Estimate by 0.61%, and down from $1.74 billion year-over-year [1] - Over the last four quarters, Brunswick has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [1] Future Outlook - The current consensus EPS estimate for the coming quarter is $2.02 on revenues of $1.6 billion, and for the current fiscal year, it is $7.50 on revenues of $6.08 billion [4] - The estimate revisions trend for Brunswick is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The Leisure and Recreation Products industry, to which Brunswick belongs, is currently in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [5] - Another company in the same industry, Topgolf Callaway Brands, is expected to report break-even quarterly earnings, reflecting a year-over-year change of -100%, with revenues anticipated to be $1.15 billion, down 1.3% from the previous year [5][6]

[First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) Brunswick Corporation reported solid Q1 2024 results, reiterating full-year guidance, driven by market share gains and strategic financial management [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Brunswick reported solid Q1 2024 results, with GAAP diluted EPS of $1.00 and Adjusted diluted EPS of $1.35, reiterating full-year guidance | Metric (in millions, except per share data) | Q1 2024 GAAP | Change vs Q1'23 | Q1 2024 Adjusted | Change vs Q1'23 | | :------------------------------------------ | :----------- | :-------------- | :--------------- | :-------------- | | Net Sales | $1,365.0 | (21.7)% | $1,365.0 | (21.7)% | | Operating Earnings | $110.6 | (53.2)% | $141.5 | (46.1)% | | Operating Margin | 8.1% | (540) bps | 10.4% | (460) bps | | Diluted EPS from Continuing Operations | $1.00 | (35.9)% | $1.35 | (47.5)% | - Reiterated 2024 Full-Year Guidance: **Adjusted Diluted EPS in the range of $7.00 to $8.00**[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO David Foulkes highlighted solid business results from market share gains, new products, and cost control, strengthening the balance sheet - Early season internal boat unit retail performance is tracking with initial outlook of flat to 2023, with boat show results slightly above prior year levels on a unit basis and with a richer mix of premium products[4](index=4&type=chunk)[5](index=5&type=chunk) - Successfully completed a planned debt issuance of **$400 million** to cover the refinance of near-term debt, solidifying cash position and balance sheet[5](index=5&type=chunk) - Propulsion business gained **200 basis points of U.S. outboard engine market share** versus Q1 2023, with robust gains in 150 horsepower and greater categories[6](index=6&type=chunk) - Navico Group continues to focus investment in new products, including the recently launched Simrad NSX Ultrawide multi-function display[7](index=7&type=chunk) - Freedom Boat Club continues to deliver steady membership sales growth and now has **413 locations** network-wide, contributing approximately **9% of Boat segment sales**[8](index=8&type=chunk)[11](index=11&type=chunk) [Detailed First Quarter 2024 Financial Results](index=3&type=section&id=Detailed%20First%20Quarter%202024%20Financial%20Results) Brunswick's Q1 2024 saw consolidated net sales and earnings decline, with all segments experiencing reduced performance due to moderated wholesale orders and production adjustments [Consolidated Net Sales and Earnings](index=3&type=section&id=Consolidated%20Net%20Sales%20and%20Earnings) Consolidated net sales decreased by 21.7% to $1,365.0 million, with operating earnings down 53.2% due to lower sales and higher input costs | Metric (in millions) | Q1 2024 | Q1 2023 | % Change | | :------------------- | :------ | :------ | :------- | | Consolidated Net Sales | $1,365.0 | $1,743.6 | (21.7)% | | Diluted EPS (GAAP) | $1.00 | $1.56 | (35.9)% | | Diluted EPS (Adjusted)| $1.35 | $2.57 | (47.5)% | | Operating Earnings | $110.6 | $236.1 | (53.2)% | - Sales decrease attributed to continued measured wholesale ordering by dealers and OEMs, coupled with higher discounts, partially offset by annual price increases, market share gains, and new products[9](index=9&type=chunk) - Operating earnings decline due to lower net sales, slightly higher input costs, and unfavorable foreign currency exchange rates, partially offset by cost control measures[9](index=9&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) All segments experienced sales and operating earnings declines due to moderated wholesale orders, despite some market share gains and cost control [Propulsion Segment](index=3&type=section&id=Propulsion%20Segment) The Propulsion segment experienced a 23.1% sales decrease and a 45.2% operating earnings decline, despite market share gains in outboard engines | Metric (in millions) | Q1 2024 GAAP | Q1 2023 GAAP | % Change | | :------------------- | :----------- | :----------- | :------- | | Net Sales | $578.2 | $751.6 | (23.1)% | | Operating Earnings | $82.8 | $151.1 | (45.2)% | | Operating Margin | 14.3% | 20.1% | (580) bps| - Sales decrease due to enterprise factors, partially offset by continued market share gains in outboard engines and annual pricing impact[9](index=9&type=chunk) - Operating margins were below prior year due to lower net sales, unfavorable foreign currency, lapping of prior year favorable timing related to capitalized inventory variances, and lower absorption from reduced production, partially offset by cost control[9](index=9&type=chunk) [Engine Parts & Accessories Segment](index=3&type=section&id=Engine%20Parts%20%26%20Accessories%20Segment) The Engine Parts & Accessories segment saw a 9.1% sales decrease and a 30.5% operating earnings decline, with both products and distribution businesses down | Metric (in millions) | Q1 2024 GAAP | Q1 2023 GAAP | % Change | | :------------------- | :----------- | :----------- | :------- | | Net Sales | $262.4 | $288.6 | (9.1)% |\ | Operating Earnings | $33.2 | $47.8 | (30.5)% |\ | Operating Margin | 12.7% | 16.6% | (390) bps| - Products business sales were down **3%**, and Distribution business sales were down **13%**, both growing sales sequentially compared to Q4 2023[10](index=10&type=chunk) - Segment operating earnings decreased due to sales declines, which more than offset the impact of pricing and cost control[10](index=10&type=chunk) [Navico Group Segment](index=4&type=section&id=Navico%20Group%20Segment) Navico Group's sales decreased by 23.9%, resulting in an operating loss, primarily due to reduced marine OEM orders despite new product momentum | Metric (in millions) | Q1 2024 GAAP | Q1 2023 GAAP | % Change | | :------------------- | :----------- | :----------- | :------- | | Net Sales | $210.9 | $277.3 | (23.9)% | | Operating Earnings | $(2.4) | $12.8 | NM | | Operating Margin | (1.1)% | 4.6% | (570) bps| - Sales decrease driven by reduced sales to marine OEMs moderating orders, partially offset by strong new product momentum and slightly improved RV sales trends[10](index=10&type=chunk)[11](index=11&type=chunk) - Operating earnings decreased due to lower sales and increased discount activity, partially offset by lower operating expenses[11](index=11&type=chunk) [Boat Segment](index=4&type=section&id=Boat%20Segment) The Boat segment's sales decreased by 26.0% and operating earnings by 49.1% due to cautious wholesale orders, though it maintained resilient adjusted operating margins | Metric (in millions) | Q1 2024 GAAP | Q1 2023 GAAP | % Change | | :------------------- | :----------- | :----------- | :------- | | Net Sales | $425.7 | $575.2 | (26.0)% | | Operating Earnings | $29.4 | $57.8 | (49.1)% | | Operating Margin | 6.9% | 10.0% | (310) bps| - Sales decrease resulted from softer wholesale orders as channel partners order cautiously, partially offset by favorable carry-over pricing and share gains[11](index=11&type=chunk) - Delivered resilient adjusted operating margin as the impact of net sales declines and lower absorption from reduced production was partially offset by continued cost control[11](index=11&type=chunk) [Financial Position and Cash Flow](index=4&type=section&id=Financial%20Position%20and%20Cash%20Flow) Brunswick's Q1 2024 saw net cash used for operating activities due to seasonal working capital, offset by a significant debt issuance boosting cash and marketable securities [Cash Flow Review](index=4&type=section&id=Cash%20Flow%20Review) Net cash used for operating activities was $148.1 million due to seasonal working capital, offset by $396.9 million from debt issuance | Metric (in millions) | Q1 2024 | | :---------------------------------------------------- | :-------- | | Net cash used for operating activities of continuing operations | $(148.1) | | Net cash provided by investing and financing activities | $238.7 | | Proceeds from issuance of long-term debt | $396.9 | | Share repurchases | $(63.6) | | Capital expenditures | $(54.0) | | Dividend payments | $(28.6) | | Cash and marketable securities (end of Q1) | $560.3 | - Net cash used for operating activities of continuing operations included net earnings net of non-cash items and the seasonal impact of working capital build[12](index=12&type=chunk) [Balance Sheet Review](index=4&type=section&id=Balance%20Sheet%20Review) Cash and marketable securities increased to $560.3 million, with the debt-to-capitalization rate rising to 58.0% due to recent debt issuance | Metric (in millions) | March 30, 2024 | December 31, 2023 | | :---------------------------------------------------- | :------------- | :---------------- | | Cash and marketable securities | $560.3 | $479.7 | | Total assets | $6,508.7 | $6,230.5 | | Total liabilities and shareholders' equity | $6,508.7 | $6,230.5 | | Debt-to-capitalization rate | 58.0% | 53.8% | [2024 Outlook and Guidance](index=4&type=section&id=2024%20Outlook%20and%20Guidance) Brunswick reiterated its full-year 2024 guidance for net sales and adjusted diluted EPS, while also providing specific Q2 2024 projections [Full-Year Guidance](index=4&type=section&id=Full-Year%20Guidance) Brunswick reiterated full-year 2024 guidance for net sales of $6.0-$6.2 billion and adjusted diluted EPS of $7.00-$8.00 - Despite challenging conditions and cautious ordering patterns, the company remains focused on new product plans, growth initiatives, and driving resilient EPS and free cash flow[13](index=13&type=chunk) | Metric | 2024 Full-Year Guidance | | :---------------------- | :---------------------- | | Net sales | $6.0 to $6.2 billion | | Adjusted diluted EPS | $7.00 to $8.00 | | Free Cash Flow | In excess of $350 million | | Annual share repurchases| Approximately $250 million | [Second Quarter 2024 Guidance](index=5&type=section&id=Second%20Quarter%202024%20Guidance) Brunswick anticipates Q2 2024 net sales between $1.5 billion and $1.6 billion, with adjusted diluted EPS projected at $1.85 to $2.05 | Metric | Q2 2024 Guidance | | :---------------------- | :---------------------- | | Net sales | $1.5 billion to $1.6 billion | | Adjusted diluted EPS | $1.85 to $2.05 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Brunswick utilizes non-GAAP financial measures to provide clearer comparisons and internal alignment, excluding certain unpredictable items from forward-looking GAAP guidance [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures are used for internal alignment and comparisons, excluding unpredictable items from forward-looking GAAP guidance - Non-GAAP measures exclude the impact of purchase accounting amortization related to acquisitions, among other adjustments, to better align with internal metrics and provide better comparisons[15](index=15&type=chunk) - Forward-looking GAAP guidance for certain financial measures is not provided due to the inability to predict items like restructuring, exit and impairment costs, special tax items, and acquisition-related costs without unreasonable efforts[16](index=16&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides details on the Q1 2024 conference call, outlines the nature of forward-looking statements, and offers an overview of Brunswick Corporation's global marine recreation business [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Brunswick scheduled a Q1 2024 conference call for April 25, 2024, accessible via webcast or telephone, with a replay available through May 2 - Conference call held on **April 25, 2024, at 10 a.m. CDT**, hosted by CEO David M. Foulkes, CFO Ryan M. Gwillim, and SVP Enterprise Finance Neha Clark[17](index=17&type=chunk) - Webcast available at www.brunswick.com/investors; telephone access for security analysts and investors[17](index=17&type=chunk)[18](index=18&type=chunk) - Replay available through **1 p.m. CDT on Thursday, May 2, 2024**[18](index=18&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) Forward-looking statements are subject to risks like economic conditions, currency changes, and supply chain disruptions, with no obligation to update - Forward-looking statements are based on current expectations, estimates, and projections and address matters that are, to different degrees, uncertain[19](index=19&type=chunk) - Risks include adverse general economic conditions (e.g., rising interest rates, disposable income), changes in currency exchange rates, competitive pricing pressures, supply chain disruptions, and the ability to develop new products[19](index=19&type=chunk) - Brunswick does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of the news release[21](index=21&type=chunk) [About Brunswick Corporation](index=7&type=section&id=About%20Brunswick%20Corporation) Brunswick Corporation is a global leader in marine recreation, with over 60 brands across propulsion, parts, boats, and services - Brunswick Corporation (NYSE: BC) is the global leader in marine recreation, delivering innovation that transforms experiences on the water and beyond[22](index=22&type=chunk) - Portfolio includes over **60 industry-leading brands** across Marine Propulsion (Mercury Marine), Parts & Accessories (Lowrance, Simrad), Boat brands (Boston Whaler, Sea Ray), and Service, Digital & Shared-Access businesses (Freedom Boat Club)[22](index=22&type=chunk)[23](index=23&type=chunk) - Headquartered in Mettawa, IL, with over **17,000 employees in 25 countries**. Recognized by Forbes as a World's Best Employer and Newsweek as one of America's Most Responsible Companies for the fourth consecutive year in 2023[23](index=23&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section provides detailed GAAP and non-GAAP financial statements, including statements of operations, balance sheets, and cash flows, along with segment-specific reconciliations [Consolidated Statements of Operations (GAAP)](index=9&type=section&id=Consolidated%20Statements%20of%20Operations%20(GAAP)) GAAP Consolidated Statements of Operations show significant declines in net sales, operating earnings, and net earnings for Q1 2024 | Metric (in millions) | March 30, 2024 | April 1, 2023 | % Change | | :---------------------------------------- | :------------- | :------------ | :------- | | Net sales | $1,365.0 | $1,743.6 | (22)% | | Cost of sales | $991.4 | $1,238.0 | (20)% | | Operating earnings | $110.6 | $236.1 | (53)% | | Earnings before income taxes | $87.0 | $211.4 | (59)% | | Net earnings from continuing operations | $68.4 | $112.4 | (39)% | | Diluted Earnings from continuing operations per share | $1.00 | $1.56 | (36)% | | Effective tax rate | 21.4% | 46.8% | | - The decrease in the effective tax rate for Q1 2024 compared to the prior year is due to discrete income tax expense recorded in connection with intercompany sale of intellectual property rights during Q1 2023[24](index=24&type=chunk) [Reconciliation of Non-GAAP Measures - Consolidated](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures%20-%20Consolidated) This section reconciles GAAP to Adjusted financial measures for consolidated operating earnings and diluted EPS, detailing key adjustments | Metric | Q1 2024 GAAP | Adjustments | Q1 2024 Adjusted | | :--------------------------------------- | :----------- | :---------- | :--------------- | | Operating Earnings (in millions) | $110.6 | $30.9 | $141.5 | | Diluted Earnings Per Share | $1.00 | $0.35 | $1.35 | | GAAP operating margin | 8.1% | | | | Adjusted operating margin | 10.4% | | | - Key adjustments include **$13.5 million** for restructuring, exit and impairment charges, **$14.8 million** for purchase accounting amortization, and **$2.3 million** for acquisition, integration, and IT related costs in Q1 2024[26](index=26&type=chunk) [Segment Information](index=11&type=section&id=Segment%20Information) Segment information presents GAAP and Adjusted net sales, operating earnings, and margins, showing declines across all segments, with Navico Group reporting a GAAP operating loss [Segment Information - GAAP](index=11&type=section&id=Segment%20Information%20-%20GAAP) This table details GAAP net sales, operating earnings, and operating margins for all segments, showing year-over-year declines | Segment | Q1 2024 Net Sales (in millions) | Q1 2023 Net Sales (in millions) | % Change | Q1 2024 Operating Earnings (in millions) | Q1 2023 Operating Earnings (in millions) | % Change | Q1 2024 Operating Margin | Q1 2023 Operating Margin | | :------------------------- | :------------------------------ | :------------------------------ | :------- | :--------------------------------------- | :--------------------------------------- | :------- | :----------------------- | :----------------------- | | Propulsion | $578.2 | $751.6 | (23.1)% | $82.8 | $151.1 | (45.2)% | 14.3% | 20.1% | | Engine Parts & Accessories | $262.4 | $288.6 | (9.1)% | $33.2 | $47.8 | (30.5)% | 12.7% | 16.6% | | Navico Group | $210.9 | $277.3 | (23.9)% | $(2.4) | $12.8 | NM | (1.1)% | 4.6% | | Boat | $425.7 | $575.2 | (26.0)% | $29.4 | $57.8 | (49.1)% | 6.9% | 10.0% | | Total | $1,365.0 | $1,743.6 | (21.7)% | $110.6 | $236.1 | (53.2)% | 8.1% | 13.5% | [Segment Information - As Adjusted (Non-GAAP)](index=11&type=section&id=Segment%20Information%20-%20As%20Adjusted%20(Non-GAAP)) This table presents adjusted net sales, operating earnings, and operating margins for each segment, reflecting non-GAAP adjustments | Segment | Q1 2024 Net Sales (in millions) | Q1 2023 Net Sales (in millions) | % Change | Q1 2024 Adjusted Operating Earnings (in millions) | Q1 2023 Adjusted Operating Earnings (in millions) | % Change | Q1 2024 Adjusted Operating Margin | Q1 2023 Adjusted Operating Margin | | :------------------------- | :------------------------------ | :------------------------------ | :------- | :------------------------------------------------ | :------------------------------------------------ | :------- | :-------------------------------- | :-------------------------------- | | Propulsion | $578.2 | $751.6 | (23.1)% | $89.5 | $151.1 | (40.8)% | 15.5% | 20.1% | | Engine Parts & Accessories | $262.4 | $288.6 | (9.1)% | $36.5 | $48.5 | (24.7)% | 13.9% | 16.8% | | Navico Group | $210.9 | $277.3 | (23.9)% | $15.1 | $30.5 | (50.5)% | 7.2% | 11.0% | | Boat | $425.7 | $575.2 | (26.0)% | $31.6 | $61.1 | (48.3)% | 7.4% | 10.6% | | Total | $1,365.0 | $1,743.6 | (21.7)% | $141.5 | $262.4 | (46.1)% | 10.4% | 15.0% | [Reconciliation of Non-GAAP Measures - Segment Details](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures%20-%20Segment%20Details) Detailed reconciliations of GAAP to adjusted operating earnings for each segment and Corporate/Other are provided, highlighting non-GAAP adjustments [Propulsion Segment Reconciliation](index=12&type=section&id=Propulsion%20Segment%20Reconciliation) This table reconciles GAAP to adjusted operating earnings for the Propulsion segment, detailing specific adjustments | Metric (in millions) | Q1 2024 GAAP | Adjustments | Q1 2024 Adjusted | | :--------------------------------------- | :----------- | :---------- | :--------------- | | GAAP operating earnings | $82.8 | $6.7 | | | Restructuring, exit and impairment charges | | $5.6 | | | Purchase accounting amortization | | $0.6 | | | Acquisition, integration, and IT related costs | | $0.5 | | | Adjusted operating earnings | | | $89.5 | | GAAP operating margin | 14.3% | | | | Adjusted operating margin | 15.5% | | | [Engine Parts & Accessories Segment Reconciliation](index=12&type=section&id=Engine%20Parts%20%26%20Accessories%20Segment%20Reconciliation) This table reconciles GAAP to adjusted operating earnings for the Engine Parts & Accessories segment, detailing specific adjustments | Metric (in millions) | Q1 2024 GAAP | Adjustments | Q1 2024 Adjusted | | :--------------------------------------- | :----------- | :---------- | :--------------- | | GAAP operating earnings | $33.2 | $3.3 | | | Restructuring, exit and impairment charges | | $3.3 | | | Adjusted operating earnings | | | $36.5 | | GAAP operating margin | 12.7% | | | | Adjusted operating margin | 13.9% | | | [Navico Group Segment Reconciliation](index=12&type=section&id=Navico%20Group%20Segment%20Reconciliation) This table reconciles GAAP to adjusted operating earnings for the Navico Group segment, detailing specific adjustments | Metric (in millions) | Q1 2024 GAAP | Adjustments | Q1 2024 Adjusted | | :--------------------------------------- | :----------- | :---------- | :--------------- | | GAAP operating (loss) earnings | $(2.4) | $17.5 | | | Restructuring, exit and impairment charges | | $2.7 | | | Purchase accounting amortization | | $13.2 | | | Acquisition, integration, and IT related costs | | $1.6 | | | Adjusted operating earnings | | | $15.1 | | GAAP operating margin | (1.1)% | | | | Adjusted operating margin | 7.2% | | | [Boat Segment Reconciliation](index=13&type=section&id=Boat%20Segment%20Reconciliation) This table reconciles GAAP to adjusted operating earnings for the Boat segment, detailing specific adjustments | Metric (in millions) | Q1 2024 GAAP | Adjustments | Q1 2024 Adjusted | | :--------------------------------------- | :----------- | :---------- | :--------------- | | GAAP operating earnings | $29.4 | $2.2 | | | Restructuring, exit and impairment charges | | $1.0 | | | Purchase accounting amortization | | $1.0 | | | Acquisition, integration, and IT related costs | | $0.2 | | | Adjusted operating earnings | | | $31.6 | | GAAP operating margin | 6.9% | | | | Adjusted operating margin | 7.4% | | | [Corporate/Other Reconciliation](index=13&type=section&id=Corporate%2FOther%20Reconciliation) This table reconciles GAAP to adjusted operating loss for Corporate/Other, detailing specific adjustments | Metric (in millions) | Q1 2024 GAAP | Adjustments | Q1 2024 Adjusted | | :--------------------------------------- | :----------- | :---------- | :--------------- | | GAAP operating loss | $(32.4) | $1.2 | | | Restructuring, exit and impairment charges | | $0.9 | | | IT security incident costs | | $0.3 | | | Adjusted Operating loss | | | $(31.2) | [Comparative Condensed Consolidated Balance Sheets](index=14&type=section&id=Comparative%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows increased total assets to $6,508.7 million, with debt-to-capitalization rising to 58.0% due to recent debt issuance | Metric (in millions) | March 30, 2024 | December 31, 2023 | April 1, 2023 | | :---------------------------------------------------- | :------------- | :---------------- | :------------ | | Total assets | $6,508.7 | $6,230.5 | $6,288.6 | | Cash and cash equivalents, at cost | $548.4 | $467.8 | $387.8 | | Net inventories | $1,555.0 | $1,476.8 | $1,506.0 | | Short-term debt and current maturities of long-term debt | $455.4 | $454.7 | $89.8 | | Debt | $2,371.9 | $1,975.7 | $2,420.5 | | Shareholders' equity | $2,049.6 | $2,087.4 | $2,062.5 | | Debt-to-capitalization rate | 58.0% | 53.8% | 54.9% | [Comparative Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Comparative%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement indicates a net cash outflow from operating activities of $148.1 million, offset by a $294.1 million inflow from financing activities | Metric (in millions) | Q1 2024 | Q1 2023 | | :---------------------------------------------------- | :-------- | :-------- | | Net earnings | $68.0 | $112.3 | | Net cash used for operating activities of continuing operations | $(148.1) | $(14.5) | | Net cash used for investing activities | $(55.4) | $(94.6) | | Net cash provided by (used for) financing activities | $294.1 | $(100.9) | | Net proceeds from issuances of long-term debt | $396.9 | $0.0 | | Common stock repurchases | $(63.6) | $(60.0) | | Cash dividends paid | $(28.6) | $(28.5) | | Net increase (decrease) in Cash and cash equivalents and Restricted cash | $80.6 | $(209.6) | | Free cash flow | $(204.5) | $(103.6) | - Changes in certain current assets and current liabilities resulted in a cash outflow of **$301.2 million** in Q1 2024, contributing to the higher net cash used for operating activities[39](index=39&type=chunk)

Core Viewpoint - Brunswick Corporation has released its first quarter 2024 financial results, indicating ongoing performance and strategic initiatives in the marine recreation industry [1]. Financial Results - The financial results for the first quarter of 2024 will be discussed in a conference call hosted by key executives, including the CEO and CFO [1]. - A complete financial results press release is available on the company's website and will also be filed with the SEC [1]. Company Overview - Brunswick Corporation is a global leader in marine recreation, focusing on innovation and technology-driven solutions [3]. - The company operates over 60 industry-leading brands, including Mercury Marine and Boston Whaler, and has a significant presence in both marine propulsion and boat manufacturing [3]. - Brunswick is headquartered in Mettawa, IL, employs 17,000 people across 25 countries, and has received accolades such as being named one of the World's Best Employers by Forbes [3].

Core Insights - Brunswick Corporation (BC) is anticipated to report earnings soon, with favorable conditions suggesting a potential earnings beat [1] - Recent earnings estimate revisions indicate positive trends for BC, as analysts have raised their estimates ahead of the earnings report [1] - The Most Accurate Estimate for BC's current quarter stands at $1.41 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, resulting in a Zacks Earnings ESP of +4.06% [1] Importance of Earnings ESP - A positive Zacks Earnings ESP has historically led to positive surprises and market outperformance, with a 10-year backtest showing nearly 70% of stocks with a positive Earnings ESP and a Zacks Rank 3 or better achieving positive surprises [2] - Stocks with a positive Earnings ESP have averaged over 28% in annual returns, indicating strong investment potential [2] - Given BC's Zacks Rank 3 and positive ESP, it is suggested that investors consider this stock ahead of the earnings report [2]

The leisure industry is poised to have experienced positive effects from robust demand for recreational services. The shift in consumer behavior toward finding ways to manage financial pressures rather than completely cutting back on spending may have provided some support to the industry. Despite efforts by industry participants to tailor their operations to suit consumer preferences, the leisure industry faces a complex landscape in 2024.Heightened golfer participation from existing and new participants i ...

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, focusing on identifying undervalued companies through fundamental analysis [1] - Zacks has developed a Style Scores system to highlight stocks with specific traits, particularly for value investors seeking stocks with high grades in the "Value" category [1] Company Analysis: Brunswick (BC) - Brunswick (BC) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [2] - The stock's current P/E ratio is 11.96, significantly lower than the industry's average of 24.96, suggesting it may be undervalued [2] - Over the past 52 weeks, BC's Forward P/E has fluctuated between a high of 12.37 and a low of 7, with a median of 8.28 [2] - Brunswick's P/CF ratio stands at 9.33, which is attractive compared to the industry's average P/CF of 37.14, further indicating potential undervaluation [2] - The P/CF for BC has ranged from a high of 9.64 to a low of 6.20 over the past year, with a median of 7.23 [2] - Overall, Brunswick appears to be an impressive value stock, particularly when considering its strong earnings outlook [2]

METTAWA, Ill., April 04, 2024 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE: BC) will release its first quarter financial results on Thursday, April 25, 2024 before the market opens by way of an advisory release, notifying the public that the complete and full-text results will be available on the Company’s website at https://ir.brunswick.com.  The results will also be available on the SEC’s website with the Form 8-K filing of the release at http://goo.gl/wJQN1.  The Company will hold a conference call a ...

METTAWA, Ill., April 04, 2024 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE:BC) will release its first quarter financial results on Thursday, April 25, 2024 before the market opens by way of an advisory release, notifying the public that the complete and full-text results will be available on the Company's website at https://ir.brunswick.com.  The results will also be available on the SEC's website with the Form 8-K filing of the release at http://goo.gl/wJQN1.  The Company will hold a conference call at ...

METTAWA, Ill., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE:BC) Chief Executive Officer David M. Foulkes and Executive Vice President, CFO Ryan M. Gwillim will present at the Raymond James 45th Annual Institutional Investor Conference, March 4, at JW Marriott Grande Lakes in Orlando, Fla.  The presentation will be webcast live at approximately 1:05pm EST. The presentation can be accessed at https://wsw.com/webcast/rj129/bc/1315640.   Go to the site at least 15 minutes before the presentatio ...