CLARCOR Reports Third Quarter Results Diluted EPS Negatively Impacted by $0.10 from Non-Cash Charges Business Wire FRANKLIN, Tenn. -- September 18, 2013 CLARCOR Inc. (NYSE: CLC): Unaudited Third Quarter 2013 Highlights (Amounts in millions, except per share data and percentages) GAAP Financial Results: Three Months Ended Nine Months Ended 8/31/13 9/1/12 Change 8/31/13 9/1/12 Change Net sales $ 289.1 $ 286.7 1 % $ 833.0 $ 828.9 1 % Operating 42.0 46.2 -9 % 125.2 129.6 -3 % profit Net earnings 28.7 30.3 -5 % 85.2 86.7 -2 % – CLARCOR Diluted earnings $ 0.57 $ 0.60 -5 % $ 1.69 $ 1.70 -1 % per share Operating 14.5 % 16.1 % -1.6 15.0 % 15.6 % -0.6 margin pts pts Adjusted Financial Results: The third quarter and first nine months of 2013 contained two pre-tax, non-cash charges aggregating $7.7 million—including a $4.6 million loss on the disposal of equipment and a $3.1 million charge to account for a final pension obligation. The following table reflects 2013 third quarter and year-to-date GAAP results adjusted for these two non-cash charges. A reconciliation of non-GAAP figures adjusting for the non-cash charges in the third quarter and first nine months of 2013 to GAAP figures is available at the end of this release. Three Months Ended Nine Months Ended 8/31/13 9/1/12 Change 8/31/13 9/1/12 Change Net sales $ 289.1 $ 286.7 1 % $ 833.0 $ 828.9 1 % Operating 49.7 46.2 8 % 132.9 129.6 3 % profit Net earnings 33.7 30.3 11 % 90.2 86.7 4 % – CLARCOR Diluted earnings $ 0.67 $ 0.60 12 % $ 1.79 $ 1.70 5 % per share Operating 17.2 % 16.1 % 1.1 16.0 % 15.6 % 0.4 margin pts pts CLARCOR Inc. (NYSE: CLC) reported that third quarter 2013 diluted earnings per share of $0.57 declined 5% from $0.60 in the third quarter of 2012. However, third quarter 2013 diluted earnings per share were impacted by two non-cash charges, a $4.6 million loss on disposal of equipment and a $3.1 million charge to account for a final pension obligation settlement. These two items reduced diluted earnings per share by approximately $0.10 in the third quarter of 2013. Third quarter net sales increased 1% from last year’s third quarter, including a 2% increase at the Engine/Mobile Filtration segment and a 1% increase at the Industrial/ Environmental Filtration segment, partially offset by a 5% reduction at the Packaging segment. A lower effective tax rate in the third quarter of 2013 favorably impacted diluted earnings per share by approximately $0.02 from the third quarter of 2012. Changes in average foreign currency exchange rates reduced net sales by $0.3 million and operating profit by $0.2 million, each less than 1%, in the third quarter of 2013 compared with last year’s third quarter. For the first nine months of 2013, changes in average foreign currency exchange rates lowered net sales by $0.7 million and operating profit by $0.4 million, also each less than 1%, from the first nine months of 2012. Chris Conway, CLARCOR’s Chief Executive Officer and Chairman, commented, “Our third quarter results were negatively impacted by a $4.6 million non-cash loss on disposal of equipment at our HVAC filtration operating unit and a $3.1 million non-cash pension charge pursuant to last year’s retirement of our former CEO and Chairman. The equipment disposed of at our HVAC filter operations was initially designed and built to automate the production of low-end disposable air filters consistent with our ‘Project 14’ strategy developed in 2007. However, our current strategy is focused on higher-end air filtration products. In addition, we have recently redesigned our low-end disposable filter products and developed technology which now allows us to manufacture these filters more cost effectively than with the equipment designed pursuant to ‘Project 14.’ As a result, in the third quarter we reached the decision to dispose of this equipment. Adjusted for the financial impact of this $4.6 million non-cash loss on disposal and the $3.1 million non-cash charge pursuant to the final settlement accounting for the pension obligation, diluted earnings per share would have increased 12% from last year’s third quarter, and our operating margin would have increased 1.1 percentage points to 17.2%. Our third quarter diluted earnings per share, as adjusted, would have been a record third quarter high, and our operating margin, as adjusted, would have been the highest third quarter operating margin in almost twenty years. “Several of our core filtration markets—including our U.S. and China heavy-duty engine markets—posted solid third quarter top-line growth. Sales in our domestic heavy-duty engine filtration aftermarket increased 6% from the third quarter of 2012—indicative of our continued success in developing new distribution and introducing new products. After double-digit sales growth in the second quarter, our third quarter heavy-duty engine filtration sales in China increased almost 9% from last year’s third quarter. This growth was driven almost entirely from the development of the China aftermarket, both through independent distribution and OE dealers. Despite solid heavy-duty engine filtration growth in the U.S. and China in the third quarter, sales in several other foreign markets declined from the third quarter of 2012—notably Europe, Australia and South Africa. Although some European economies have exhibited signs of recovery, our sales in that region continue to be sluggish. Lower third quarter heavy-duty engine filtration sales in Australia and South Africa were negatively impacted by slowing economic growth in those countries. “Third quarter sales in our global oil & gas filtration business increased 6% from last year’s third quarter. We experienced solid growth on a global basis, but our Latin American and European sales were especially strong. Oil & gas filtration sales in Latin America increased over $4.7 million, or 300%, in this year’s third quarter as we continued to develop key customer relationships in this expanding market. Our European oil & gas filtration sales grew over 12% primarily as the result of a significant natural gas vessel project that shipped in the third quarter of 2013. We were able to grow our global oil & gas filtration business by 6% in the third quarter despite significantly lower sales of off-shore oil drilling filtration products, which we expect to decline for the full year primarily due to a temporary order delay from a major customer. Our third quarter oil & gas filtration sales—primarily natural gas and aviation—would have increased approximately 9% excluding the impact of lower off-shore oil drilling filtration product sales. “Strong third quarter sales in our global oil & gas filtration business were partially offset in our Industrial/Environmental Filtration segment by lower sales in our domestic air filtration market and at TransWeb—which continues to be negatively impacted by lower year-over-year sales to a major customer. Sales in our domestic air filtration market declined approximately 10% from last year’s third quarter, almost entirely driven by lower sales of swine filtration products. Although we are certainly disappointed with lower than expected third quarter sales, we recognize that we are still in the launch and penetration stage of this higher-margin swine filtration market, and we remain excited with its long-term growth potential. “Our strong operational execution continued in the third quarter as evidenced by our financial and operational metrics when adjusted for the two non-cash charges. Gross margin, as adjusted, at each of our reporting segments increased from the third quarter of 2012, and our selling and administrative expenses as a percentage of net sales, as adjusted, declined 0.8 percentage points from last year’s third quarter. Of particular note, operating margin, as adjusted, in our Industrial/ Environmental Filtration segment was 12.5%, a record third quarter operating margin in this reporting segment and 1.1 percentage points higher than last year’s third quarter. These solid operational results across the Company demonstrate our on-going commitment to expand operating margins while focusing on long-term growth.” Third Quarter Results: Engine/Mobile Filtration Segment Net sales at our Engine/Mobile Filtration segment rose 2% from the third quarter of 2012. Higher net sales included a 5% increase in the U.S.—primarily due to higher heavy-duty engine filter aftermarket sales driven by growth in U.S. truck tonnage—partially offset by a 4% reduction in foreign markets including lower heavy-duty engine filtration sales in most of our major foreign markets including Europe and Australia. Operating profit at our Engine/Mobile Filtration segment increased $0.1 million from the third quarter of 2012, and operating margin declined slightly to 22.2% from 22.4% in last year’s third quarter. However, adjusted for the impact of an allocated portion of the non-cash pension charge in the third quarter, operating profit increased $1.5 million and operating margin increased to 23.2%, or 0.8 percentage points, from last year’s third quarter. Industrial/Environmental Filtration Segment Net sales at our Industrial/Environmental Filtration segment increased 1% from the third quarter of 2012. These higher net sales included 7% growth outside the U.S. partially offset by a 1% reduction domestically. Higher sales outside the U.S. were the result of strong oil & gas filtration sales in several foreign markets—notably Brazil and Europe. The 1% decline in U.S. sales was primarily driven by lower swine filtration sales at our HVAC operating unit partially offset by continued growth in our domestic oil & gas filtration market. Operating profit at our Industrial/Environmental Filtration segment declined $4.4 million from the third quarter of 2012, and operating margin declined to 8.1% from 11.4% in last year’s third quarter. However, adjusted for the impact of the loss on disposal of equipment at our HVAC operations and an allocated portion of the non-cash pension charge in the third quarter, operating profit increased $1.7 million and operating margin increased to 12.5%, or 1.1 percentage points, from last year’s third quarter. Packaging Segment Net sales at our Packaging segment declined $1.0 million, or 5%, from the third quarter of 2012 primarily due to the expected sales decline in film packaging products in addition to lower flat sheet decorating activity. Despite this reduction in sales, operating profit—adjusted for the impact of an allocated portion of the non-cash pension charge—increased 15% in this reporting segment as our operating margin, as adjusted, improved to 11.1%, a 1.9 percentage point improvement from last year’s third quarter. This higher operating margin was primarily the continuing result of operational improvements initiated last year pursuant to our transition from several large volume sales programs. Fiscal 2013 Guidance Chris Conway commented on 2013 guidance: “Even though our third quarter operating results—excluding the impact of the two non-cash charges—were solid compared with last year’s third quarter, our top-line fell short of our internal expectations heading into the quarter. Primary headwinds included lower heavy-duty engine filtration sales outside the U.S., lower sales of commercial and industrial HVAC and swine filtration products in the U.S. and lower sales of off-shore oil drilling filtration products. Although we expect continued growth in our core filtration markets in the fourth quarter, including projected 3% to 5% growth in our domestic heavy-duty engine filtration aftermarket and continued growth in our oil & gas business, we believe we will continue to experience top-line headwinds in several filtration markets. As a result, we are lowering our 2013 full-year expectations for sales growth and diluted earnings per share. We expect our 2013 diluted earnings per share to be between $2.35 and $2.45. This range includes the $0.10 per diluted share negative impact of both the $4.6 million loss on disposal of equipment and the $3.1 million non-cash pension charge recognized in the third quarter.” Projected changes in net sales for fiscal 2013 as compared to 2012 and operating margin by segment and on a consolidated basis are as follows: 2013 Estimated 2013 Estimated Sales Change Operating Margin Engine/Mobile Filtration 1.0% to 2.0% 21.5% to 22.0% Industrial/Environmental Filtration 1.5% to 2.5% 10.5% to 11.5% Packaging -4.0% to -1.0% 8.0% to 9.0% CLARCOR 1.0% to 2.0% 15.3% to 16.1% We project fiscal year 2013 cash from operations to be between $120 million and $130 million, capital expenditures to be between $45 million and $55 million and our effective tax rate to be between 31.8% and 32.2%. CLARCOR will be holding a conference call to discuss the third quarter 2013 results at 10:00 a.m. CST on September 19, 2013. Interested parties can listen to the conference call at www.clarcor.com or www.viavid.net. A replay will be available on these websites and also at 877-870-5176 or 858-384-5517 by providing confirmation code 5657881. The replay will be available through October 3, 2013 by telephone and for 30 days on the Internet. CLARCOR is based in Franklin, Tennessee, and is a diversified marketer and manufacturer of mobile, industrial and environmental filtration products and consumer and industrial packaging products sold in domestic and international markets. Common shares of CLARCOR are traded on the New York Stock Exchange under the symbol CLC. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements made in this press release other than statements of historical fact, are forward-looking statements. These statements may be identified from use of the words “may,” “should,” “could,” “potential,” “continue,” “plan,” “forecast,” “estimate,” “project,” “believe,” “intent,” “anticipate,” “expect,” “target,” “is likely,” “will,” or the negative of these terms, and similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, among other things: statements and assumptions relating to anticipated future growth and results of operations, including the anticipated 2013 performance of the Company and each of its segments, our projections with respect to 2013 estimated sales growth and 2013 estimated operating margins for the Company and each of its segments, our projections with respect to 2013 diluted earnings per share (including our implied projected fourth quarter diluted earnings per share range), and our projections with respect to 2013 cash from operations, 2013 capital expenditures and 2013 effective tax rates; statements regarding management's short-term and long-term performance goals; statements regarding anticipated order patterns from our customers or the anticipated economic conditions of the industries and markets that we serve; statements related to the performance of the U.S. and other economies generally; statements relating to the anticipated effects on results of operations or financial condition from recent and expected developments or events; statements regarding our expectation that sales of off-shore oil drilling filtration products will decline for fiscal year 2013 compared to 2012, primarily due to order delays from a major customer; statements regarding our expectations regarding our long-term strategic position in China; statements regarding the volatility and uncertainty that exists in the China geographic market; statements regarding our long-term growth potential in the swine filtration market; statements regarding our expectations with respect to anticipated continued growth in our core filtration markets in the fourth quarter, including projected 3% to 5% growth in our domestic heavy-duty engine filtration market; statements regarding our expectations with respect to anticipated continued growth in our oil & gas business; statements regarding our expectations that we will continue to experience top-line headwinds in several filtration markets; and any other statements or assumptions that are not historical facts. The Company believes that its expectations are based on reasonable assumptions. However, these forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Company's actual results, performance or achievements, or industry results, to differ materially from the Company's expectations of future results, performance or achievements expressed or implied by these forward-looking statements. The Company's past results do not necessarily indicate its future results. The Company’s future results may differ materially from the Company’s past results as a result of various risks and uncertainties, including the risk factors discussed in the “Risk Factors” section of the Company’s 2012 Form 10-K and other risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release. Except as otherwise required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements or the risk factors described in this press release, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release. TABLES FOLLOW CLARCOR INC. 2013 UNAUDITED THIRD QUARTER RESULTS CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Dollars in thousands, except share data) Quarter Ended Nine Months Ended August 31, September August September 2013 1, 31, 1, 2012 2013 2012 Net sales $ 289,126 $ 286,733 $ 832,980 $ 828,852 Cost of sales 197,226 191,845 561,380 549,563 Gross profit 91,900 94,888 271,600 279,289 Selling and administrative 49,915 48,707 146,399 149,685 expenses Operating 41,985 46,181 125,201 129,604 profit Other income (expense): Interest (139 ) (176 ) (451 ) (364 ) expense Interest income 221 156 528 459 Other, net 153 (186 ) (70 ) 309 235 (206 ) 7 404 Earnings before 42,220 45,975 125,208 130,008 income taxes Provision for 13,447 15,564 39,754 43,026 income taxes Net earnings 28,773 30,411 85,454 86,982 Net earnings attributable to (66 ) (141 ) (234 ) (306 ) noncontrolling interests Net earnings attributable to $ 28,707 $ 30,270 $ 85,220 $ 86,676 CLARCOR Inc. Net earnings per share attributable to $ 0.57 $ 0.60 $ 1.71 $ 1.72 CLARCOR Inc. - Basic Net earnings per share attributable to $ 0.57 $ 0.60 $ 1.69 $ 1.70 CLARCOR Inc. - Diluted Weighted average number of shares 50,092,548 50,283,340 49,917,939 50,357,567 outstanding - Basic Weighted average number of shares 50,604,809 50,863,894 50,481,049 50,979,542 outstanding - Diluted Dividends paid $ 0.1350 $ 0.1200 $ 0.4050 $ 0.3600 per share CLARCOR INC. 2013 UNAUDITED THIRD QUARTER RESULTS, continued CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE EARNINGS (Dollars in thousands) Quarter Ended Nine Months Ended August September August 31, September 31, 2013 1, 2013 1, 2012 2012 Net earnings $ 28,773 $ 30,411 $ 85,454 $ 86,982 Other comprehensive income: Pension and other postretirement benefits -- Pension and other postretirement 4,432 1,726 7,074 5,180 benefits liability adjustments Pension and other postretirement benefits liability (1,580 ) (654 ) (2,522 ) (1,943 ) adjustments tax amounts Pension and other postretirement benefits liability 2,852 1,072 4,552 3,237 adjustments, net of tax Foreign currency translation -- Translation (614 ) 5,086 (4,549 ) (5,550 ) adjustments Translation adjustments tax — — — — amounts Translation adjustments, net of (614 ) 5,086 (4,549 ) (5,550 ) tax Comprehensive 31,011 36,569 85,457 84,669 earnings Comprehensive earnings attributable to (27 ) (134 ) (168 ) (77 ) non-redeemable noncontrolling interests Comprehensive earnings attributable to (28 ) (92 ) (60 ) (150 ) redeemable noncontrolling interests Comprehensive earnings $ 30,956 $ 36,343 $ 85,229 $ 84,442 attributable to CLARCOR Inc. CLARCOR INC. 2013 UNAUDITED THIRD QUARTER RESULTS, continued CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands) August 31, December 1, 2013 2012 ASSETS Current assets: Cash and cash equivalents $ 206,859 $ 185,496 Restricted cash 9,748 566 Accounts receivable, less allowance for losses 210,182 214,474 of $10,077 and $9,554, respectively Inventories 224,613 211,251 Deferred income taxes 27,563 34,693 Income taxes receivable 379 — Prepaid expenses and other current assets 11,411 8,114 Total current assets 690,755 654,594 Property, plant and equipment, at cost, less accumulated depreciation of $326,598 and 197,473 195,101 $315,018, respectively Assets held for sale — 2,000 Goodwill 240,686 241,924 Acquired intangibles, less accumulated 91,003 95,681 amortization Other noncurrent assets 15,827 16,202 Total assets $ 1,235,744 $ 1,205,502 LIABILITIES Current liabilities: Current portion of long-term debt $ 224 $ 201 Accounts payable and accrued liabilities 135,558 172,262 Income taxes payable — 2,428 Total current liabilities 135,782 174,891 Long-term debt, less current portion 16,469 16,391 Long-term pension and postretirement 46,263 50,680 healthcare benefits liabilities Deferred income taxes 53,015 51,385 Other long-term liabilities 5,096 8,571 Total liabilities 256,625 301,918 Contingencies Redeemable noncontrolling interests 1,814 1,754 SHAREHOLDERS' EQUITY Capital stock 50,094 49,653 Capital in excess of par value 13,281 — Accumulated other comprehensive loss (51,705 ) (51,708 ) Retained earnings 964,687 902,899 Total CLARCOR Inc. equity 976,357 900,844 Noncontrolling interests 948 986 Total shareholders' equity 977,305 901,830 Total liabilities and shareholders' equity $ 1,235,744 $ 1,205,502 CLARCOR INC. 2013 UNAUDITED THIRD QUARTER RESULTS, continued CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) Nine Months Ended August 31, September 1, 2013 2012 Cash flows from operating activities: Net earnings $ 85,454 $ 86,982 Depreciation 19,885 19,387 Amortization 4,454 4,383 Other noncash items 3,092 (24 ) Net loss (gain) on disposition of assets 3,824 (792 ) Stock-based compensation expense 4,074 5,397 Excess tax benefit from stock-based (7,313 ) (2,606 ) compensation Deferred income taxes 6,610 8,355 Change in assets and liabilities (48,884 ) (41,325 ) Net cash provided by operating activities 71,196 79,757 Cash flows from investing activities: Restricted cash (9,207 ) (79 ) Business acquisitions, net of cash acquired (3,811 ) (11,974 ) Additions to plant assets (25,491 ) (29,473 ) Proceeds from disposition of plant assets 2,673 502 Investment in affiliates (615 ) (801 ) Net cash used in investing activities (36,451 ) (41,825 ) Cash flows from financing activities: Cash dividends paid (20,219 ) (18,132 ) Payments on long-term debt (168 ) (1,253 ) Payment of financing costs — (564 ) Sale of capital stock under stock option and 24,204 5,389 employee purchase plans Payments for repurchase of common stock (24,149 ) (16,724 ) Excess tax benefits from stock-based 7,313 2,606 compensation Dividend paid to noncontrolling interests (206 ) — Net cash used in financing activities (13,225 ) (28,678 ) Net effect of exchange rate changes on cash (157 ) 94 Net change in cash and cash equivalents 21,363 9,348 Cash and cash equivalents, beginning of period 185,496 155,999 Cash and cash equivalents, end of period $ 206,859 $ 165,347 Cash paid during the period for: Interest $ 301 $ 319 Income taxes, net of refunds $ 29,947 $ 27,827 CLARCOR INC. 2013 UNAUDITED THIRD QUARTER RESULTS, continued QUARTERLY INCOME STATEMENT DATA BY SEGMENT (Dollars in thousands) Quarter Ended Nine Months Ended August September August September 31, 1, 31, 1, 2013 2012 2013 2012 Net sales by segment: Engine/Mobile Filtration $ 129,148 $ 126,903 $ 379,195 $ 377,863 Industrial/Environmental 139,659 138,532 398,945 394,275 Filtration Packaging 20,319 21,298 54,840 56,714 $ 289,126 $ 286,733 $ 832,980 $ 828,852 Operating profit by segment: Engine/Mobile Filtration $ 28,611 $ 28,478 $ 81,156 $ 81,403 Industrial/Environmental 11,315 15,741 39,404 44,193 Filtration Packaging 2,059 1,962 4,641 4,008 $ 41,985 $ 46,181 $ 125,201 $ 129,604 Operating margin by segment: Engine/Mobile Filtration 22.2 % 22.4 % 21.4 % 21.5 % Industrial/Environmental 8.1 % 11.4 % 9.9 % 11.2 % Filtration Packaging 10.1 % 9.2 % 8.5 % 7.1 % 14.5 % 16.1 % 15.0 % 15.6 % CLARCOR INC. 2013 UNAUDITED THIRD QUARTER RESULTS, continued RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (Dollars in thousands, except share data) In addition to the GAAP results provided in this release, we are providing non-GAAP gross profit, non-GAAP selling and administrative expense, non-GAAP operating profit, non-GAAP net earnings and non-GAAP diluted earnings per share for the third quarter and nine months ended August 31, 2013. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The GAAP measures most directly comparable to non-GAAP gross profit, non-GAAP selling and administrative expense, non-GAAP operating profit, non-GAAP net earnings and non-GAAP diluted earnings per share are gross profit, selling and administrative expense, operating profit, net earnings and diluted earnings per share, respectively. The quarter ended and nine months ended August 31, 2013 non-GAAP financial measures provided in this release exclude the impact of two non-cash items that occurred during the third quarter of 2013, a $4.6 million loss on the disposal of equipment and a $3.1 million charge to account for a final pension obligation. Although the comparison of data excluding these selected items in our quarter ended and nine months ended August 31, 2013 is not a measure of financial performance under GAAP, we believe that providing these non-GAAP financial measures better enables investors to understand and evaluate our historical and prospective operating performance. We believe that removing the impact of these selected items provides a more comparable measure of the changes in gross profit, selling and administrative expense, operating profit, net earnings and diluted earnings per share in the quarter ended and nine months ended August 31, 2013 compared to the quarter ended and nine months ended September 1, 2012. These non-GAAP financial measures may have limitations as analytical tools, and we do not intend these measures to be considered in isolation or as a substitute for the related GAAP measures. Following are reconciliations to the most comparable GAAP financial measures of these non-GAAP financial measures. Quarter Ended Nine Months Ended August September August September 31, 1, 31, 1, 2013 2012 Change 2013 2012 Change Consolidated Gross profit, as reported $ 91,900 $ 94,888 -3 % $ 271,600 $ 279,289 -3 % (GAAP) Impact of 4,631 — 4,631 — selected items Non-GAAP gross $ 96,531 $ 94,888 2 % $ 276,231 $ 279,289 -1 % profit Selling and administrative expense, as $ 49,915 $ 48,707 2 % $ 146,399 $ 149,685 -2 % reported (GAAP) Impact of (3,111 ) — (3,111 ) — selected items Non-GAAP selling and $ 46,804 $ 48,707 -4 % $ 143,288 $ 149,685 -4 % administrative expense Operating profit, as $ 41,985 $ 46,181 -9 % $ 125,201 $ 129,604 -3 % reported (GAAP) Impact of 7,742 — 7,742 — selected items Non-GAAP operating $ 49,727 $ 46,181 8 % $ 132,943 $ 129,604 3 % profit Net earnings - CLARCOR, as $ 28,707 $ 30,270 -5 % $ 85,220 $ 86,676 -2 % reported (GAAP) Impact of 4,955 — 4,955 — selected items Non-GAAP net earnings - $ 33,662 $ 30,270 11 % $ 90,175 $ 86,676 4 % CLARCOR Diluted earnings per share, as $ 0.57 $ 0.60 -5 % $ 1.69 $ 1.70 -1 % reported (GAAP) Impact of 0.10 — 0.10 — selected items Non-GAAP diluted earnings per $ 0.67 $ 0.60 12 % $ 1.79 $ 1.70 5 % share - CLARCOR CLARCOR INC. 2013 UNAUDITED THIRD QUARTER RESULTS, continued RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (Dollars in thousands, except share data) Quarter Ended Nine Months Ended August September August September 31, 1, 31, 1, 2013 2012 Change 2013 2012 Change Consolidated (continued) Gross margin, -1.3 -1.1 as reported 31.8 % 33.1 % pts 32.6 % 33.7 % pts (GAAP) Non-GAAP gross 33.4 % 33.1 % 0.3 33.2 % 33.7 % -0.5 margin pts pts Selling and administrative expense as % 17.3 % 17.0 % 0.3 17.6 % 18.1 % -0.5 of sales, as pts pts reported (GAAP) Non-GAAP Selling and -0.8 -0.9 administrative 16.2 % 17.0 % pts 17.2 % 18.1 % pts expense as a % of sales Operating margin, as 14.5 % 16.1 % -1.6 15.0 % 15.6 % -0.6 reported pts pts (GAAP) Non-GAAP 1.1 0.4 operating 17.2 % 16.1 % pts 16.0 % 15.6 % pts margin Segment Data Engine/Mobile Filtration Operating profit, as $ 28,611 $ 28,478 0 % $ 81,156 $ 81,403 0 % reported (GAAP) Impact of 1,384 — 1,384 — selected items Non-GAAP operating $ 29,995 $ 28,478 5 % $ 82,540 $ 81,403 1 % profit Operating margin, as 22.2 % 22.4 % -0.2 21.4 % 21.5 % -0.1 reported pts pts (GAAP) Non-GAAP 0.8 0.3 operating 23.2 % 22.4 % pts 21.8 % 21.5 % pts margin Industrial Environmental Filtration Operating profit, as $ 11,315 $ 15,741 -28 % $ 39,404 $ 44,193 -11 % reported (GAAP) Impact of 6,165 — 6,165 — selected items Non-GAAP operating $ 17,480 $ 15,741 11 % $ 45,569 $ 44,193 3 % profit Operating margin, as 8.1 % 11.4 % -3.3 9.9 % 11.2 % -1.3 reported pts pts (GAAP) Non-GAAP 1.1 0.2 operating 12.5 % 11.4 % pts 11.4 % 11.2 % pts margin Packaging Operating profit, as $ 2,059 $ 1,962 5 % $ 4,641 $ 4,008 16 % reported (GAAP) Impact of 193 — 193 — selected items Non-GAAP operating $ 2,252 $ 1,962 15 % $ 4,834 $ 4,008 21 % profit Operating margin, as 10.1 % 9.2 % 0.9 8.5 % 7.1 % 1.4 reported pts pts (GAAP) Non-GAAP 1.9 1.7 operating 11.1 % 9.2 % pts 8.8 % 7.1 % pts margin Contact: CLARCOR Inc. David J. Fallon, 615-771-3100 Chief Financial Officer
CLARCOR Reports Third Quarter Results
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