2013 ANNUAL REPORT

  FOR THE YEAR ENDED AUGUST 31
(in millions of dollars, except earnings per share) 2013(1) 2012(2) % Change
OPERATIONS      
Net sales $2,089.1 $1,933.7 8%
Gross profit % 40.1% 40.8%    
Operating profit $221.5 $208.0 6%
Operating profit % 10.6% 10.8%  
Net income $127.4 $116.3 10%
Diluted earnings per share $2.95 $2.72 8%
Diluted weighted average number of shares outstanding (in millions) 42.5 41.9  
Return on average shareholders’ equity 14.1% 14.6% (3)%
Cash provided by operating activities $132.3 $172.2 (23)%
Depreciation and amortization $40.8 $39.8 3%
Capital expenditures $40.6 $31.4 29%
       
FINANCIAL POSITION      
Total assets $1,904 $1,737 10%
Total cash $359 $285 26%
Total debt $354 $354 0%
Total stockholders’ equity $994 $834 19%
Ratio of total debt to capital 26.2% 29.8%  
Operating working capital as a percentage of net sales(3) 13.0% 11.6%  

(1) 2013 results include a $8.5 million pre-tax special charge (or $0.12 per diluted share) related to streamlining activities; $8.4 million (or $0.12 per diluted share) of temporary manufacturing inefficiencies associated with the closing of the Cochran facility; and, a pre-tax loss of $8.1 million (or $0.12 per diluted EPS) resulting from fraud perpetrated at a freight payment and audit service firm formerly retained by the Company.

(2) 2012 results include a $13.3 million pre-tax charge (or $0.21 per diluted share) for streamlining activities; $3.2 million of higher costs (or $0.05 per diluted share) directly related to manufacturing inefficiencies associated with the closing of the Cochran facility, and $1.2 million of non-cash expenses (or $0.02 per diluted share) related to the abandonment of certain otherwise usable inventory at the facility.

(3) Operating working capital is defined as net receivables plus inventories minus accounts payable.

REVENUES

($ in Billions)

$1.7

'09

$1.6

'10

$1.8

'11

$1.9

'12

$2.1

'13

DILUTED EPS

(from continuing operations)

$2.01

'09

$1.79

'10

$2.42

'11

$2.72

'12

$2.95

'13

OPERATING PROFIT

($ in Millions)

$154

9.3%

'09

$158

9.7%

'10

$189

10.5%

'11

$208

10.8%

'12

$222

10.6%

'13

MARGINS

FREE CASH FLOW

($ in Millions)

$72

'09

$139

'10

$138

'11

$141

'12

$92

'13

Free Cash Flow is defined as cash provided by operating activities minus purchases of property, plant, and equipment.