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]

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 June 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 jurisdic ...