Fortune Brands Innovations, Inc. (FBIN) reported mixed results for fourth-quarter 2023, with earnings beating the Zacks Consensus Estimate and net sales missing the same. On a year-over-year basis, net sales increased, but earnings declined.Despite a challenging macro environment, the company's teams successfully delivered, progressed long-term initiatives and executed on priorities. The company's results this year highlight its focus on surpassing market sales, maintaining margins and generating cash.In th ...

Have you been paying attention to shares of Fortune Brands Innovations (FBIN) ? Shares have been on the move with the stock up 7% over the past month. The stock hit a new 52-week high of $80.91 in the previous session. Fortune Brands Innovations has gained 6.1% since the start of the year compared to the 29.7% move for the Zacks Retail-Wholesale sector and the 52.2% return for the Zacks Retail - Home Furnishings industry.What's Driving the Outperformance?The stock has a great record of positive earnings sur ...

For the quarter ended December 2023, Fortune Brands Innovations (FBIN) reported revenue of $1.16 billion, up 2.6% over the same period last year. EPS came in at $0.95, compared to $1.07 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.18 billion, representing a surprise of -1.85%. The company delivered an EPS surprise of +2.15%, with the consensus EPS estimate being $0.93.While investors closely watch year-over-year changes in headline numbers -- revenue and earnin ...

Fortune Brands Innovations (FBIN) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.15%. A quarter ago, it was expected that this maker of products for the home, like faucets, cabinets, windows and doors would post earnings of $1.07 per share when it actually produced earnings of $1.1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35166 Fortune Brands Innovations, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Financial Performance - For the year ended December 31, 2022, total net sales were $4,723.0 million, a decrease of 1.6% compared to 2021[114]. - Operating income for 2022 was $774.3 million, down 4.5% from 2021, primarily due to lower net sales and higher commodity costs[129]. - Income from continuing operations decreased by $19.8 million, or 3.5%, due to lower net sales and higher interest expense, partially offset by higher other income and lower tax expense[140]. - Income from discontinued operations decreased by $65.9 million, or 31.0%, due to lower operating income and transaction costs related to the Separation[141]. - The company reported a foreign exchange impact of approximately $41 million on net sales and $12 million on operating income in 2022[130]. Sales Breakdown - The U.S. market accounted for 80% of net sales, with $3,763.6 million, while international sales contributed 20%[114]. - The Water Innovations segment reported net sales of $2,570.2 million, a decrease of 6.9% from 2021, while the Outdoors & Security segment saw a 5.5% increase to $2,152.8 million[129]. - Net sales in the Water Innovations segment decreased by $191.0 million, or 6.9%, attributed to slowing housing market activity in China and lower sales demand in the U.S. and Canada[142]. Acquisitions and Spin-offs - In December 2022, the company announced an agreement to acquire Emtek and Schaub for $800 million, expected to close in Q2 2023[121][122]. - The company completed the spin-off of its Cabinets business, MasterBrand, in December 2022, changing its name to Fortune Brands Innovations, Inc.[125]. Debt and Interest Expenses - Interest expense increased by 41.4% to $34.9 million due to higher average interest rates and borrowings[136]. - The company issued $900 million in senior unsecured notes in March 2022 to pay down a portion of the outstanding balance on the 2021 Term Loan[169]. - As of December 31, 2022, total long-term debt was $2,074.3 million, down from $2,309.8 million in 2021[176]. - Debt payments due in 2023 are $600 million, with a total of $1,600 million due in 2028 and beyond[197]. - Interest payments due in 2023 are $105 million, increasing to $642 million in 2028 and beyond[197]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $566.3 million in 2022, a decrease from $688.7 million in 2021[188]. - Net cash used in investing activities increased to $455.5 million in 2022, primarily due to acquisitions and capital expenditures[189]. - The Company expects capital spending in 2023 to be between $250 million and $300 million, focusing on decking product line investments[177]. Corporate Expenses and Income - Corporate expenses increased by $19.4 million, or 17.3%, due to higher consulting costs related to digital transformation initiatives[147]. - Other income increased to $12 million in 2022 from an expense of $0.4 million in 2021, primarily due to the absence of a non-cash loss related to the investment in Flo and higher defined benefit income[137]. Pension and Tax Liabilities - The fair value of total pension plan assets was $482.5 million as of December 31, 2022, covering 89% of the accumulated benefit obligation[192]. - The company recorded total pension income of $(7.8) million in 2022 compared to $(6.6) million in 2021[227]. - The company had liabilities for unrecognized tax benefits totaling $33.4 million as of December 31, 2022, with a potential decrease of $9.8 million in the next 12 months[232]. Impairments and Provisions - Impairment charges of $46.4 million were recognized in 2022 related to indefinite-lived tradenames within the legacy Cabinets segment[221]. - The inventory provision was $49.2 million as of December 31, 2022, up from $37.1 million in 2021[204]. - No impairments of long-lived assets were recorded in 2022, while a $0.2 million impairment was recorded in 2021[206].

Fortune Brands Innovations, Inc. (NYSE:FBIN) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET Company Participants Leigh Avsec - Vice President, IR and Corporate Affairs Nicholas Fink - Chief Executive Officer Patrick Hallinan - SVP & CFO David Barry - EVP and Incoming CFO Conference Call Participants Susan Maklari - Goldman Sachs Matthew Bouley - Barclays Adam Baumgarten - Zelman & Associates Stephen Kim - Evercore ISI Operator Greetings. At this time, I'd like to welcome everyone to the Fort ...

Financial Data and Key Metrics Changes - The company reported a 20% growth in EPS and a consolidated operating margin increase of 150 basis points year-over-year, reaching 16.3% [6][35]. - Sales for the third quarter were $2.1 billion, reflecting a 3% increase, while consolidated operating income rose 14% to $335 million [34][36]. - The three-year organic sales CAGR was reported at 10%, with operating income CAGR at 17% [10]. Business Line Data and Key Metrics Changes - **Water Innovations**: Sales decreased by 14% to $635 million, impacted by channel inventory reductions and a soft market in China, despite a 5% increase in U.S. POS [19][38]. - **Outdoors & Security**: Sales grew by 6% to $560 million, driven by strong performance from the Therma-Tru brand, while security sales declined due to retail inventory reductions [23][40]. - **Cabinets**: Sales increased by 20% to $858 million, with operating income up 71% to $119 million, reflecting successful pricing actions and backlog management [25][44]. Market Data and Key Metrics Changes - The U.S. housing market is experiencing a softening in single-family new construction and R&R activities due to rising interest rates, with expectations for flat growth in new construction [6][13]. - The company anticipates a global market decline of low to mid single-digits in 2023, with the first half expected to be more challenging than the second half [54][55]. Company Strategy and Development Direction - The company is focused on executing a planned separation into two independent public companies, aiming to enhance agility and operational efficiency [8][15]. - Strategic investments in digital transformation and innovation are prioritized to drive long-term growth despite short-term headwinds [6][15]. - The organizational redesign aims to leverage best practices across the company, enhancing productivity and margin progression [16][70]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing headwinds from macroeconomic uncertainties and shifting consumer behavior, particularly in response to housing affordability [13][49]. - The company remains optimistic about long-term housing demand, citing a significant shortage of homes in the U.S. as a fundamental growth driver [17][18]. - Full-year guidance has been revised downward due to market conditions, with expectations for net sales growth adjusted to 4.5% to 5.5% [50][51]. Other Important Information - The company has repurchased approximately $580 million in common stock year-to-date, reflecting a commitment to effective cash and balance sheet management [47][48]. - The upcoming Investor Day is expected to provide further insights into the company's strategic initiatives and operational successes [16][33]. Q&A Session Summary Question: Current demand environment and business performance - Management noted a significant inflection point in the demand environment during the third quarter, with a sharp decline in building orders and permits [59][60]. Question: Water Innovations margins and volume challenges - Management highlighted strong margin performance due to effective cost management and strategic prioritization, despite volume challenges [63][66]. Question: Organizational realignment rationale - The shift to a more aligned operating model is aimed at enhancing growth and productivity by leveraging best practices across the portfolio [69][70]. Question: Decremental margin guidance for 2023 - Management indicated that decremental margins are expected to be higher in the first half of 2023 due to inventory destocking, with a more cautious outlook for the second half [75][78].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35166 FORTUNE BRANDS HOME & SECURITY, INC. (Exact name of Registrant as specified in its charter) Delaware 62-1411546 (State or other jur ...

Financial Data and Key Metrics Changes - The company reported sales of $2.1 billion, a 9% increase year-over-year, with consolidated operating income of $320 million, up 7% [34][35] - Total operating margin improved to 15.1%, reflecting year-over-year margin expansion across all segments [34][36] - Earnings per share (EPS) were $1.67 for the quarter, representing a 7% increase [34] Business Line Data and Key Metrics Changes - **Water Innovations**: Sales decreased by mid-single digits to $650 million, impacted by COVID-related shutdowns in China, but grew by 4% excluding China [38][39] - **Outdoors and Security**: Sales increased by 13% to $605 million, driven by strong performance in Therma-Tru and decking sales [41][43] - **Cabinets**: Sales grew by 21% to $856 million, with strong demand across stock and semi-custom cabinets [44][46] Market Data and Key Metrics Changes - The company noted signs of slowing consumer behavior due to inflation and rising interest rates, particularly affecting the housing market [9][23] - Despite the slowdown, the long-term outlook for housing remains positive, supported by favorable demographics and home equity levels [10][25] Company Strategy and Development Direction - The company is progressing with its plan to separate into two publicly traded companies, expecting to file the initial draft of Form-10 with the SEC later this quarter [7][12] - Strategic investments are being made in digital transformation to drive future growth and margin expansion [36][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential short-term softness in the housing market, citing strong fundamentals and proactive measures to maintain value creation [10][11][30] - The company anticipates a potential air pocket in new construction towards the end of the year or into 2023, but remains optimistic about long-term demand [24][25] Other Important Information - The company is adjusting its full-year 2022 guidance to reflect incremental expenses related to the separation and updated market conditions [30][51] - Free cash flow is expected to be approximately $590 million to $630 million, with capital expenditures adjusted to reflect current market conditions [55] Q&A Session Summary Question: Update on the spin-off progress - Management confirmed that the spin-off is ahead of schedule, with significant progress made in scoping and execution [59][60] Question: State of the consumer and macro playbook execution - Management noted that the consumer has remained resilient, with positive trends in point-of-sale data, while preparing for potential market adjustments [62][64] Question: Performance across different price segments - Management indicated that the observed weakness was primarily limited to the Cabinets segment, with other segments performing well [70] Question: Inventory management strategies - Management discussed proactive inventory management, leveraging consumer insights to ensure appropriate stock levels [71][74] Question: Impact of inflation and pricing dynamics - Management acknowledged rising inflation and its impact on costs, but noted successful price adjustments to maintain margins [88][89] Question: Future outlook for decking and pricing - Management expects solid double-digit growth in decking, with a focus on innovation and maintaining pricing power [82][85]