OREANDA-NEWS. ACCO Brands Corporation (NYSE: ACCO), one of the world's largest designers, marketers and manufacturers of branded business, academic and consumer products, today reported its second quarter results for the period ended June 30, 2016.

"Our strong second quarter results were driven by sales growth and continued effective operational execution," said Boris Elisman, Chairman, President and Chief Executive Officer, ACCO Brands. "With the completion of the Pelikan Artline acquisition and strong back-to-school sell-in, I'm optimistic that profitable sales growth will continue despite the challenging macro and industry environments. After a solid first half, we are raising our 2016 earnings and free cash flow guidance."

Second Quarter Results

Net sales increased 4% to $410.1 million from $394.7 million in the prior-year quarter.  The acquisition of the remaining 50% interest of the company's Pelikan Artline joint venture, which was completed May 2, 2016, added 4% to sales. Foreign exchange reduced sales by 2%. The comparable sales growth of 1% was driven by strong back-to-school sell-in in North America.  Operating income decreased to $45.4 million from $49.2 million in the prior-year quarter due primarily to restructuring and one-time charges of $5.7 million in the current quarter versus $0.2 million in the prior-year quarter.  Adjusted operating income increased to $51.1 million from $49.4 million in the prior year primarily due to sales growth and gross margin expansion.  Net income was $61.9 million, or $0.57 per share, and included a $35.2 million gain from the revaluation to fair value of the company's previously held equity investment in Pelikan Artline.  This compared to a net income of $27.7 million, or $0.25 per share, in the prior-year quarter.  Adjusted net income increased 1% to $27.1 million, or $0.25 per share, from $26.8 million, or $0.24 per share, in the prior-year quarter.  The improvement was primarily driven by sales growth and improved gross margin.

Business Segment Highlights

ACCO Brands North America - Sales increased 4% to $279.1 million from $268.6 million in the prior-year quarter.  Sales increased 5% on a constant currency basis driven by strong back-to-school sell-in, notably with mass merchant and e-tail customers.  Operating income increased to $51.6 million from $50.1 million in the prior-year quarter and adjusted operating income increased to $52.8 million from $50.1 million in the prior-year quarter, primarily due to sales growth, cost savings and productivity improvements.

ACCO Brands International - Sales increased 5% to $101.3 million from $96.7 million in the prior-year quarter.  The Pelikan Artline acquisition added 17% to International sales, or $16.8 million, and foreign exchange reduced sales by 5%.  On a comparable basis, sales decreased 8% due to volume declines as a result of overall market softness and the non-repeating pre-buys in some markets ahead of mid-year price increases taken in 2015.  Operating income decreased to $2.9 million from $6.2 million in the prior-year quarter due to $3.8 million of restructuring and other items related to the Pelikan Artline acquisition.  Adjusted operating income was $6.7 million compared to $6.2 million in the prior-year quarter as the addition of $1.8 million from Pelikan Artline largely offset the non-repeating $2.3 million tax recovery in the prior year.

Computer Products - Sales increased 1% to $29.7 million from $29.4 million in the prior-year quarter.  On a constant currency basis, sales increased 2% due to increased sales of desktop accessories.  Operating income increased to $3.2 million from $2.2 million in the prior-year quarter and adjusted operating income increased to $3.1 million from $2.4 million in the prior-year quarter due to improved gross margin and lower selling, general and administrative expenses.

Six Month Results

Net sales increased 1% to $688.2 million compared to $684.7 million in the prior-year six-month period.  The Pelikan Artline acquisition contributed 3% and foreign currency reduced sales by 3%. On a comparable basis, sales increased 1%.  Net income was $66.7 million, or $0.61 per share, compared to net income of $21.9 million, or $0.19 per share, in the prior-year period.  The increase was due to the $35.2 million gain from the revaluation to fair value of the company's previously held equity investment in Pelikan Artline, as well as a tax benefit of $10.7 million.  Adjusted net income increased 15% to $26.2 million, or $0.24 per share, from $22.8 million, or $0.20 per share, in the prior-year period. The improvement was primarily the result of sales growth and gross margin expansion, offset by the negative impact of foreign currency translation of $0.02 per share.

Business Outlook

As a result of the strong performance in the first six months of the year, the company is increasing its 2016 outlook for adjusted earnings per share and free cash flow. The company now expects 2016 sales to increase low single-digits, adjusted earnings per share of $0.80-$0.84 and free cash flow of approximately $140 million, inclusive of the Pelikan Artline acquisition.

About ACCO Brands Corporation

ACCO Brands Corporation is one of the world's largest designers, marketers and manufacturers of branded business, academic and consumer products.  Our widely recognized brands include AT-A-GLANCE®, Day-Timer®, Five Star®, GBC®, Hilroy®, Kensington®, Marbig, Mead®, NOBO, Quartet®, Rexel, Swingline®, Tilibra®, Wilson Jones® and many others.  Our products are sold in more than 100 countries around the world.

ACCO Brands Corporation and Subsidiaries

Condensed Consolidated Balance Sheets
 
 

(unaudited)

    

(in millions of dollars)

June 30,
 2016

  

December 31,
 2015

Assets

      

Current assets:

      

Cash and cash equivalents

$

96.2

    

$

55.4

  

Accounts receivable, net

350.8

    

369.3

  

Inventories

303.2

    

203.6

  

Other current assets

42.1

    

25.3

  

Total current assets

792.3

    

653.6

  

Total property, plant and equipment

539.8

    

526.1

  

Less: accumulated depreciation

(333.4)

    

(317.0)

  

Property, plant and equipment, net

206.4

    

209.1

  

Deferred income taxes

27.5

    

25.1

  

Goodwill

598.6

    

496.9

  

Identifiable intangibles, net

583.0

    

520.9

  

Other non-current assets

16.7

    

47.8

  

Total assets

$

2,224.5

    

$

1,953.4

  

Liabilities and Stockholders' Equity

      

Current liabilities:

      

Notes payable

$

45.0

    

$

—

  

Current portion of long-term debt

3.9

    

—

  

Accounts payable

181.7

    

147.6

  

Accrued compensation

30.6

    

34.0

  

Accrued customer program liabilities

75.5

    

108.7

  

Accrued interest

7.2

    

6.3

  

Other current liabilities

57.8

    

58.7

  

Total current liabilities

401.7

    

355.3

  

Long-term debt, net

827.4

    

720.5

  

Deferred income taxes

140.6

    

142.3

  

Pension and post-retirement benefit obligations

80.1

    

89.1

  

Other non-current liabilities

76.0

    

65.0

  

Total liabilities

1,525.8

    

1,372.2

  

Stockholders' equity:

      

Common stock

1.1

    

1.1

  

Treasury stock

(16.9)

    

(11.8)

  

Paid-in capital

1,998.7

    

1,988.3

  

Accumulated other comprehensive loss

(383.7)

    

(429.2)

  

Accumulated deficit

(900.5)

    

(967.2)

  

Total stockholders' equity

698.7

    

581.2

  

Total liabilities and stockholders' equity

$

2,224.5

    

$

1,953.4

  

ACCO Brands Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(In millions of dollars, except per share data)
 
 

Three Months Ended
June 30,

      

Six Months Ended
June 30,

    
 

2016

  

2015

  

% Change

  

2016

  

2015

  

% Change

Net sales

$

410.1

    

$

394.7

    

4%

  

$

688.2

    

$

684.7

    

1%

Cost of products sold

275.3

    

268.0

    

3%

  

471.0

    

477.8

    

(1)%

Gross profit

134.8

    

126.7

    

6%

  

217.2

    

206.9

    

5%

Operating costs and expenses:

                      

Advertising, selling, general and administrative expenses

79.6

    

72.4

    

10%

  

150.8

    

145.3

    

4%

Amortization of intangibles

5.4

    

4.9

    

10%

  

10.1

    

10.1

    

—%

Restructuring charges (credits)

4.4

    

0.2

    

NM

  

4.4

    

(0.3)

    

NM

Total operating costs and expenses

89.4

    

77.5

    

15%

  

165.3

    

155.1

    

7%

Operating income

45.4

    

49.2

    

(8)%

  

51.9

    

51.8

    

—%

Non-operating expense (income):

                      

Interest expense

12.8

    

11.3

    

13%

  

23.5

    

22.5

    

4%

Interest income

(1.9)

    

(2.3)

    

(17)%

  

(3.3)

    

(3.4)

    

(3)%

Equity in earnings of joint venture

(0.8)

    

(1.2)

    

(33)%

  

(2.1)

    

(2.6)

    

(19)%

Other (income) expense, net

(36.6)

    

2.3

    

NM

  

(35.5)

    

1.9

    

NM

Income before income tax

71.9

    

39.1

    

84%

  

69.3

    

33.4

    

107%

Income tax expense

10.0

    

11.4

    

(12)%

  

2.6

    

11.5

    

(77)%

Net income

$

61.9

    

$

27.7

    

123%

  

$

66.7

    

$

21.9

    

205%
                       

Per share:

                      

Basic income per share

$

0.58

    

$

0.25

    

132%

  

$

0.63

    

$

0.20

    

215%

Diluted income per share

$

0.57

    

$

0.25

    

128%

  

$

0.61

    

$

0.19

    

221%
                       

Weighted average number of shares outstanding:

                      

Basic

107.1

    

109.1

        

106.6

    

110.6

      

Diluted

109.0

    

110.6

        

108.6

    

112.5

      
                       
                       

Statistics (as a % of Net sales, except Income tax rate)

                  
 

Three Months Ended
June 30,

      

Six Months Ended
June 30,

    
 

2016

  

2015

      

2016

  

2015

    

Gross profit (Net sales, less Cost of products sold)

32.9

%

  

32.1

%

      

31.6

%

  

30.2

%

    

Advertising, selling, general and administrative

19.4

%

  

18.3

%

      

21.9

%

  

21.2

%

    

Operating income

11.1

%

  

12.5

%

      

7.5

%

  

7.6

%

    

Income before income tax

17.5

%

  

9.9

%

      

10.1

%

  

4.9

%

    

Net income

15.1

%

  

7.0

%

      

9.7

%

  

3.2

%

    

Income tax rate

13.9

%

  

29.2

%

      

3.8

%

  

34.4

%

    

ACCO Brands Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)
 
 

Six Months Ended June 30,

(in millions of dollars)

2016

  

2015

Operating activities

      

Net income

$

66.7

    

$

21.9

  

Revaluation gain on previously held joint-venture equity interest

(35.2)

    

—

  

Amortization of inventory step-up

0.2

    

—

  

Loss on disposal of assets

0.2

    

0.3

  

Depreciation

15.5

    

16.8

  

Amortization of debt issuance costs

1.8

    

1.7

  

Amortization of intangibles

10.1

    

10.1

  

Stock-based compensation

7.9

    

7.6

  

Loss on debt extinguishment

—

    

1.9

  

Equity in earnings of joint ventures, net of dividends received

(1.6)

    

1.2

  

Changes in balance sheet items:

      

Accounts receivable

60.6

    

59.4

  

Inventories

(70.7)

    

(91.7)

  

Other assets

(8.7)

    

(9.1)

  

Accounts payable

24.4

    

37.3

  

Accrued expenses and other liabilities

(65.4)

    

(52.5)

  

Accrued income taxes

(5.0)

    

4.0

  

Net cash provided by operating activities

0.8

    

8.9

  

Investing activities

      

Additions to property, plant and equipment

(6.9)

    

(15.6)

  

Proceeds from the disposition of assets

0.1

    

0.1

  

Cost of acquisitions, net of cash acquired

(85.4)

    

—

  

Net cash used by investing activities

(92.2)

    

(15.5)

  

Financing activities

      

Proceeds from long-term borrowings

187.4

    

300.0

  

Repayments of long-term debt

(90.3)

    

(304.1)

  

Borrowings of notes payable, net

32.8

    

94.5

  

Payments for debt issuance costs

(0.8)

    

(1.7)

  

Repurchases of common stock

—

    

(40.0)

  

Payments related to tax withholding for share-based compensation

(5.0)

    

(5.7)

  

Excess tax benefit from share-based compensation

0.9

    

—

  

Proceeds from the exercise of stock options

1.6

    

0.3

  

Net cash provided by financing activities

126.6

    

43.3

  

Effect of foreign exchange rate changes on cash and cash equivalents

5.6

    

(3.0)

  

Net increase in cash and cash equivalents

40.8

    

33.7

  

Cash and cash equivalents

      

Beginning of the period

55.4

    

53.2

  

End of the period

$

96.2

    

$

86.9

  

ACCO Brands Corporation and Subsidiaries

Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited)

(In millions of dollars, except per share data)
 
 

Three Months Ended June 30, 2016

  

Three Months Ended June 30, 2015

    
 

Reported

  

% of

  

Adjusted

  

Adjusted

  

% of

  

Reported

  

% of

  

Adjusted

  

Adjusted

  

% of

  

% Change
 

GAAP

  

Sales

  

Items

  

Non-GAAP

  

Sales

  

GAAP

  

Sales

  

Items

  

Non-GAAP

  

Sales

  

Adjusted

Gross profit

$

134.8

    

32.9

%

  

$

0.2

  

 (A.1)

$

135.0

    

32.9

%

  

$

126.7

    

32.1

%

  

$

—

    

$

126.7

    

32.1

%

  

7

%

Advertising, selling, general and administrative expenses

79.6

    

19.4

%

  

(1.1)

  

 (A.2)

78.5

    

19.1

%

  

72.4

    

18.3

%

  

—

    

72.4

    

18.3

%

  

8

%

Restructuring charges (credits)

4.4

        

(4.4)

  

 (A.3)

—

        

0.2

        

(0.2)

  

 (A.3)

—

        

NM

  

Operating income

45.4

    

11.1

%

  

5.7

    

51.1

    

12.5

%

  

49.2

    

12.5

%

  

0.2

    

49.4

    

12.5

%

  

3

%

Interest expense

12.8

        

(0.9)

  

 (A.4)

11.9

        

11.3

        

(0.1)

  

 (A.5)

11.2

        

6

%

Other (income) expense, net

(36.6)

        

36.8

  

 (A.6)

0.2

        

2.3

        

(1.9)

  

 (A.5)

0.4

        

(50)

%

Income before income tax

71.9

    

17.5

%

  

(30.2)

    

41.7

    

10.2

%

  

39.1

    

9.9

%

  

2.2

    

41.3

    

10.5

%

  

1

%

Income tax expense

10.0

        

4.6

  

 (A.7)

14.6

        

11.4

        

3.1

  

 (A.7)

14.5

        

1

%

Income tax rate

13.9

%

          

35.0

%

      

29.2

%

          

35.0

%

        

Net income

$

61.9

    

15.1

%

  

$

(34.8)

    

$

27.1

    

6.6

%

  

$

27.7

    

7.0

%

  

$

(0.9)

    

$

26.8

    

6.8

%

  

1

%

Diluted income per share

$

0.57

        

$

(0.32)

    

$

0.25

        

$

0.25

        

$

(0.01)

    

$

0.24

        

4

%

Weighted average number of shares outstanding:

109.0

            

109.0

        

110.6

            

110.6

          
                                           
 

Six Months Ended June 30, 2016

  

Six Months Ended June 30, 2015

    
 

Reported

  

% of

  

Adjusted

  

Adjusted

  

% of

  

Reported

  

% of

  

Adjusted

  

Adjusted

  

% of

  

% Change
 

GAAP

  

Sales

  

Items

  

Non-GAAP

  

Sales

  

GAAP

  

Sales

  

Items

  

Non-GAAP

  

Sales

  

Adjusted

Gross profit

$

217.2

    

31.6

%

  

$

0.2

  

 (A.1)

$

217.4

    

31.6

%

  

$

206.9

    

30.2

%

  

$

—

    

$

206.9

    

30.2

%

  

5

%

Advertising, selling, general and administrative expenses

150.8

    

21.9

%

  

(1.7)

  

 (A.2)

149.1

    

21.7

%

  

145.3

    

21.2

%

  

—

    

145.3

    

21.2

%

  

3

%

Restructuring charges (credits)

4.4

        

(4.4)

  

 (A.3)

—

        

(0.3)

        

0.3

  

 (A.3)

—

        

NM

  

Operating income

51.9

    

7.5

%

  

6.3

    

58.2

    

8.5

%

  

51.8

    

7.6

%

  

(0.3)

    

51.5

    

7.5

%

  

13

%

Interest expense

23.5

        

(0.9)

  

 (A.4)

22.6

        

22.5

        

(0.1)

  

 (A.5)

22.4

        

1

%

Other (income) expense, net

(35.5)

        

36.2

  

 (A.6)

0.7

        

1.9

        

(1.9)

  

 (A.5)

—

        

NM

  

Income before income tax

69.3

    

10.1

%

  

(29.0)

    

40.3

    

5.9

%

  

33.4

    

4.9

%

  

1.7

    

35.1

    

5.1

%

  

15

%

Income tax expense

2.6

        

11.5

  

 (A.7)

14.1

        

11.5

        

0.8

  

 (A.7)

12.3

        

15

%

Income tax rate

3.8

%

          

35.0

%

      

34.4

%

          

35.0

%

        

Net income

$

66.7

    

9.7

%

  

$

(40.5)

    

$

26.2

    

3.8

%

  

$

21.9

    

3.2

%

  

$

0.9

    

$

22.8

    

3.3

%

  

15

%

Diluted income per share

$

0.61

        

$

(0.37)

    

$

0.24

        

$

0.19

        

$

0.01

    

$

0.20

        

20

%

Weighted average number of shares outstanding:

108.6

            

108.6

        

112.5

            

112.5

          

Notes for Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited)

A. "Adjusted" results exclude restructuring (credits) charges, amortization of the step-up in value of finished goods, transaction and integration expenses associated with the acquisition of Pelikan Artline, other one-time or non-recurring items and all unusual income tax items, including income taxes related to the aforementioned items, in order to provide a comparison of underlying results of operations; in addition, income taxes have been recalculated at a normalized tax rate.

  1. Represents the adjustment related to the amortization of step-up in the value of finished goods inventory associated with the acquisition of Pelikan Artline.
  2. Represents the elimination of transaction and integration expenses associated with the acquisition of Pelikan Artline.
  3. Represents restructuring charges (credits).
  4. Represents a loan breakage fee of $0.5 million incurred in the acquisition of Pelikan Artline and the write-off debt issuance costs of $0.4 million due to a debt swap of part of our USD term loan for the new Australian dollar revolving loan.
  5. Represents the write-off of debt issuance costs and other costs associated with the Company's refinancing in the second quarter of 2015.
  6. Represents:
    1. Fair value gain upon acquisition of Pelikan Artline of $35.2 million and
    2. The foreign currency losses/(gains), net related to the settlement of certain intercompany transactions.
  7. Primarily reflects the tax effect of the adjustments outlined in items A.1-6 above and adjusts the company's effective tax rate to a normalized rate of 35%. The Company's estimated long-term rate remains subject to variations from the mix of earnings across the Company's operating jurisdictions.

ACCO Brands Corporation and Subsidiaries

Reconciliation of Net Income to Adjusted EBITDA (Unaudited)

(In millions of dollars)
 

The following table sets forth a reconciliation of reported net income (loss) in accordance with GAAP to Adjusted EBITDA.
 
   

Three Months Ended
June 30,

      

Six Months Ended
June 30,

    
   

2016

  

2015

  

% Change

  

2016

  

2015

  

% Change

Net income

$

61.9

    

$

27.7

    

123

%

  

$

66.7

    

$

21.9

    

205

%
 

Inventory step-up amortization

0.2

    

—

    

NM

    

0.2

    

—

    

NM

  
 

Transaction and integration expenses

1.1

    

—

    

NM

    

1.7

    

—

    

NM

  
 

Restructuring charges (credits)

4.4

    

0.2

    

NM

    

4.4

    

(0.3)

    

NM

  
 

Depreciation

7.7

    

8.3

    

(7)

%

  

15.5

    

16.8

    

(8)

%
 

Stock-based compensation

4.6

    

4.6

    

—

%

  

7.9

    

7.6

    

4

%
 

Amortization of intangibles

5.4

    

4.9

    

10

%

  

10.1

    

10.1

    

—

%
 

Interest expense, net

10.9

    

9.0

    

21

%

  

20.2

    

19.1

    

6

%
 

Other (income) expense, net

(36.6)

    

2.3

    

NM

    

(35.5)

    

1.9

    

NM

  
 

Income tax expense

10.0

    

11.4

    

(12)

%

  

2.6

    

11.5

    

(77)

%

Adjusted EBITDA (non-GAAP)

$

69.6

    

$

68.4

    

2

%

  

$

93.8

    

$

88.6

    

6

%
                         

Adjusted EBITDA as a % of Net Sales

17.0

%

  

17.3

%

      

13.6

%

  

12.9

%

    

Notes for Reconciliation of Net Income to Adjusted EBITDA

"Adjusted EBITDA" represents net income after adding back depreciation; stock-based compensation expense; amortization of intangibles; interest expense, net; other (income) expense, net and income tax expense. Adjusted EBITDA also excludes the amortization of step-up in value of finished goods inventory, transaction and integration expenses and restructuring charges (credits).

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)

(In millions of dollars)
 

"Free Cash Flow" represents cash flow from operating activities less cash used for additions to property, plant and equipment and plus cash proceeds from the disposition of assets. The following table sets forth a reconciliation of reported net cash provided by operating activities in accordance with GAAP to Free Cash Flow.
 
 

Six Months Ended
June 30, 2016

  

Six Months Ended
June 30, 2015

Net cash provided by operating activities

$

0.8

    

$

8.9

  
       

Net cash (used) provided by:

      

Additions to property, plant and equipment

(6.9)

    

(15.6)

  

Proceeds from the disposition of assets

0.1

    

0.1

  

Free cash flow (non-GAAP)

$

(6.0)

    

$

(6.6)

  

ACCO Brands Corporation and Subsidiaries

Supplemental Business Segment Information and Reconciliation (Unaudited)

(In millions of dollars)
 
 

2016

  

2015

  

Changes
                 

Adjusted

                  

Adjusted

            
     

Reported

      

Adjusted

  

Operating

      

Reported

      

Adjusted

  

Operating

      

Adjusted

Adjusted

  
     

Operating

      

Operating

  

Income

      

Operating

      

Operating

  

Income

      

Operating

Operating

  
 

Reported

  

Income

  

Adjusted

  

Income

  

(Loss)

  

Reported

  

Income

  

Adjusted

  

Income

  

(Loss)

  

Net Sales

Net Sales

Income

Income

Margin
 

Net Sales

  

(Loss)

  

Items

  

(Loss) (A)

  

Margin (A)

  

Net Sales

  

(Loss)

  

Items

  

(Loss) (A)

  

Margin (A)

  

$

%

(Loss) $

(Loss) %

Points

Q1:

                                                  

ACCO Brands North America

$

165.7

    

$

10.3

    

$

—

    

$

10.3

    

6.2%

  

$

166.7

    

$

5.6

    

$

(0.5)

    

$

5.1

    

3.1%

  

$

(1.0)

  

(1)%

$

5.2

  

102%

310

ACCO Brands International

85.3

    

3.8

    

—

    

3.8

    

4.5%

  

94.6

    

3.3

    

—

    

3.3

    

3.5%

  

(9.3)

  

(10)%

0.5

  

15%

100

Computer Products

27.1

    

1.7

    

—

    

1.7

    

6.3%

  

28.7

    

2.0

    

—

    

2.0

    

7.0%

  

(1.6)

  

(6)%

(0.3)

  

(15)%

(70)

Corporate

—

    

(9.3)

    

0.6

    

(8.7)

        

—

    

(8.3)

    

—

    

(8.3)

        

—

    

(0.4)

      

Total

$

278.1

    

$

6.5

    

$

0.6

    

$

7.1

    

2.6%

  

$

290.0

    

$

2.6

    

$

(0.5)

    

$

2.1

    

0.7%

  

$

(11.9)

  

(4)%

$

5.0

  

238%

190
                                                   

Q2:

                                                  

ACCO Brands North America

$

279.1

    

$

51.6

    

$

1.2

    

$

52.8

    

18.9%

  

$

268.6

    

$

50.1

    

$

—

    

$

50.1

    

18.7%

  

$

10.5

  

4%

$

2.7

  

5%

20

ACCO Brands International

101.3

    

2.9

    

3.8

    

6.7

    

6.6%

  

96.7

    

6.2

    

—

    

6.2

    

6.4%

  

4.6

  

5%

0.5

  

8%

20

Computer Products

29.7

    

3.2

    

(0.1)

    

3.1

    

10.4%

  

29.4

    

2.2

    

0.2

    

2.4

    

8.2%

  

0.3

  

1%

0.7

  

29%

220

Corporate

—

    

(12.3)

    

0.8

    

(11.5)

        

—

    

(9.3)

    

—

    

(9.3)

        

—

    

(2.2)

      

Total

$

410.1

    

$

45.4

    

$

5.7

    

$

51.1

    

12.5%

  

$

394.7

    

$

49.2

    

$

0.2

    

$

49.4

    

12.5%

  

$

15.4

  

4%

$

1.7

  

3%

—
                                                   

Q3:

                                                  

ACCO Brands North America

                    

$

279.8

    

$

48.4

    

$

—

    

$

48.4

    

17.3%

            

ACCO Brands International

                    

104.3

    

11.3

    

(0.1)

    

11.2

    

10.7%

            

Computer Products

                    

29.5

    

2.7

    

0.1

    

2.8

    

9.5%

            

Corporate

                    

—

    

(7.6)

    

—

    

(7.6)

                  

Total

                    

$

413.6

    

$

54.8

    

$

—

    

$

54.8

    

13.2%

            
                                                   

Q4:

                                                  

ACCO Brands North America

                    

$

248.2

    

$

43.5

    

$

(0.1)

    

$

43.4

    

17.5%

            

ACCO Brands International

                    

131.3

    

20.0

    

—

    

20.0

    

15.2%

            

Computer Products

                    

32.6

    

3.4

    

—

    

3.4

    

10.4%

            

Corporate

                    

—

    

(10.0)

    

—

    

(10.0)

                  

Total

                    

$

412.1

    

$

56.9

    

$

(0.1)

    

$

56.8

    

13.8%

            
                                                   

Full Year:

                                                  

ACCO Brands North America

$

444.8

    

$

61.9

    

$

1.2

    

$

63.1

    

14.2%

  

$

963.3

    

$

147.6

    

$

(0.6)

    

$

147.0

    

15.3%

            

ACCO Brands International

186.6

    

6.7

    

3.8

    

10.5

    

5.6%

  

426.9

    

40.8

    

(0.1)

    

40.7

    

9.5%

            

Computer Products

56.8

    

4.9

    

(0.1)

    

4.8

    

8.5%

  

120.2

    

10.3

    

0.3

    

10.6

    

8.8%

            

Corporate

—

    

(21.6)

    

1.4

    

(20.2)

        

—

    

(35.2)

    

—

    

(35.2)

                  

Total

$

688.2

    

$

51.9

    

$

6.3

    

$

58.2

    

8.5%

  

$

1,510.4

    

$

163.5

    

$

(0.4)

    

$

163.1

    

10.8%

            
                                                   

(A)   See "Notes for Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited)" for a description of adjusted items on page 8.

ACCO Brands Corporation and Subsidiaries

Supplemental Net Sales Change Analysis (Unaudited)
 
   

Percent Change - Sales
   

GAAP

Non-GAAP
                         
               

Comparable

        
   

Net Sales

  

Currency

      

Net Sales

        
   

Change

  

Translation

  

Acquisition

  

Change (A)

  

Price

  

$ Volume/Mix

Q1 2016:

                        

ACCO Brands North America

  

(0.6)%

  

(1.2)%

  

—%

  

0.6%

  

1.0%

  

(0.4)%

ACCO Brands International

  

(9.8)%

  

(11.6)%

  

—%

  

1.8%

  

9.3%

  

(7.5)%

Computer Products

  

(5.6)%

  

(2.1)%

  

—%

  

(3.5)%

  

3.8%

  

(7.3)%

    Total

  

(4.1)%

  

(4.7)%

  

—%

  

0.6%

  

4.0%

  

(3.4)%
                         

Q2 2016:

                        

ACCO Brands North America

  

3.9%

  

(0.7)%

  

—%

  

4.6%

  

1.8%

  

2.8%

ACCO Brands International

  

4.8%

  

(4.8)%

  

17.4%

  

(7.8)%

  

10.2%

  

(18.0)%

Computer Products

  

1.0%

  

(0.7)%

  

—%

  

1.7%

  

2.0%

  

(0.3)%

    Total

  

3.9%

  

(1.7)%

  

4.3%

  

1.3%

  

3.9%

  

(2.6)%
                         

2016 YTD:

                        

ACCO Brands North America

  

2.2%

  

(0.9)%

  

—%

  

3.1%

  

1.5%

  

1.6%

ACCO Brands International

  

(2.5)%

  

(8.2)%

  

8.8%

  

(3.1)%

  

9.8%

  

(12.9)%

Computer Products

  

(2.2)%

  

(1.4)%

  

—%

  

(0.8)%

  

2.9%

  

(3.7)%

    Total

  

0.5%

  

(3.0)%

  

2.5%

  

1.0%

  

3.9%

  

(2.9)%

(A)   Sales excluding acquisitions and with current period foreign operation sales translated at prior year currency rates.