Release – ACCO Brands Corporation Declares Quarterly Dividend

Research News and Market Data on ACCO

02/16/2024

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that its board of directors has declared a quarterly cash dividend of $0.075 per share. The dividend will be paid on March 27, 2024, to stockholders of record as of the close of business on March 15, 2024.

“This is the Company’s 25th quarterly cash dividend since it began paying dividends in 2018. The Company’s dividend has become an important part of our capital allocation strategy and we remain committed to supporting our quarterly dividend with our robust free cash flow. At the current stock price, on an annualized basis, our shareholders are receiving a 5% yield on their investment,” said Tom Tedford, President, and Chief Executive Officer of ACCO Brands.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Chris McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

Release – ACCO Brands Corporation Announces Fourth Quarter and Full Year 2023 Earnings Webcast

Research News and Market Data on ACCO

02/13/2024

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that it will release its fourth quarter and full year 2023 earnings after the market close on February 22, 2024. The Company will host a conference call and webcast to discuss the results on February 23 at 8:30 a.m. EST. The webcast can be accessed through the Investor Relations section of www.accobrands.com and will be available for replay.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Christopher McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

ACCO Brands (ACCO) – New Cost Reduction Plan


Wednesday, January 31, 2024

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New Plan. ACCO announced a multi-year restructuring and cost savings program, with anticipated annualized pre-tax cost savings of at least $60 million. The Company expects to record a pre-tax restructuring charge for the period ended December 31, 2023 of approximately $13 million. This is in addition to a $9 million charge relating to the closure of the Sidney, NY facility. Total cash expenditures are expected to be $26 million with cash outflows of $18 million in 2024 and $8 million in 2025. The restructuring will better position the Company for long-term sustainable profitable growth, in our view, adding to the Company’s 2023 improvement in margins.

Details. The program incorporates initiatives to simplify and delayer the Company’s operating structure and reduce costs through headcount reductions, supply chain optimization, global footprint rationalization, and better leveraging of sourcing capabilities.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – ACCO Brands Corporation Announces Cost Reduction Program Targeting Annualized Pre-Tax Savings of at least $60 Million

Research News and Market Data on ACCO

01/30/2024

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) announces a multi-year restructuring and cost savings program, with anticipated annualized pre-tax cost savings of at least $60 million. The program incorporates initiatives to simplify and delayer the Company’s operating structure and reduce costs through headcount reductions, supply chain optimization, global footprint rationalization, and better leveraging of our sourcing capabilities. As a result of these actions, the Company will improve its speed of execution and bring key leaders closer to the customers. In connection with this program, the Company will file a Form 8-K with the SEC disclosing its restructuring charges.

“The actions we are announcing today will better position the Company for long-term sustainable profitable growth. The cost reduction actions, as well as a renewed focus on innovation and new product development, will provide fuel for reinvestment and an improved growth trajectory for the long-term. During 2023, we were able to restore the Company’s margin profile and strengthen the balance sheet despite a slow demand environment. Our preliminary results indicate that we ended the year with reported sales and cash flows above our previously communicated outlook. I remain confident in the long-term growth prospects of the Company given our geographically diverse operating platform and our collection of leading brands” said ACCO Brands’ President and Chief Executive Officer, Tom Tedford.

The Company will operate and report under two segments. The Americas reportable segment will include the U.S., Canada, Brazil, Mexico and Chile and the International reportable segment will include EMEA, Australia, New Zealand and Asia. The Company will report on this basis for the fiscal year commencing January 1, 2024.

As a result of the segment realignment, effective January 1, 2024, Cezary Monko has been appointed Executive Vice President and President of the International segment and Patrick Buchenroth, has been appointed Executive Vice President and President of the Americas segment. These leaders have a long-established, successful history with the Company.

The Company will provide additional details about the restructuring program during its upcoming fourth quarter and full year 2023 earnings call.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Forward-Looking Statements

Statements contained in this press release, other than statements of historical fact, particularly statements relating to cost reductions and the anticipated pre-tax savings from the cost reduction program, restructuring costs, footprint rationalization, simplifying and streamlining our operations, reducing complexity, enhancing the speed of decision-making, leveraging our sourcing capabilities and the timing of implementation and completion of the cost reduction program, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Forward-looking statements are subject to the occurrence of many events outside the company’s control and actual results and the timing of events may differ materially from those suggested or implied by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties.

Factors that could affect our results or cause our plans, actions and results to differ materially from current expectations described in this press release include, among others, our ability to successfully execute the actions identified as part of the cost reduction program and realize the anticipated cost savings and operational synergies as well as other risks and uncertainties described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and in other reports we file with the SEC. Forward-looking statements should be considered in light of these risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements when deciding whether to buy, sell or hold the company’s securities.

Christopher McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

Release – ACCO Brands Corporation Announces Appointment of Beth Simermeyer to Board of Directors

Research News and Market Data on ACCO

December 7, 2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that Beth Simermeyer has been elected to the Board of Directors, effective December 5, 2023.

“We are excited to welcome Beth, a dynamic business leader with a proven track record of success to ACCO Brands’ Board of Directors. Beth’s extensive marketing expertise, P&L ownership and global leadership mindset, will further enhance our Board and help us execute on our strategic transformation. We look forward to leveraging Beth’s insights to continue to further strengthen the company going forward,” said Boris Elisman, Executive Chairman of ACCO Brands Corporation.

Ms. Simermeyer brings substantial business leadership experience in marketing, transformation, innovation, growth acceleration, acquisitions and top and bottom-line delivery in the consumer goods, industrial and healthcare sectors. In her most recent role as Global Group President, Executive Vice President, Healthcare and Life Sciences at Ecolab (NYSE: ECL) she launched and led the global Life Sciences business that has become a top investment priority for the company. During her more than thirty-year career, Ms. Simermeyer held several senior brand and general management roles, including Ecolab’s Chief Marketing Officer, where her responsibilities spanned sustainability, customer insights, branding and communications. Prior to joining Ecolab, Ms. Simermeyer was Senior Vice President, North America at S.C. Johnson. She started her career at The Procter & Gamble Company (NYSE: PG). Since 2019, she has served as an Independent Director at the Securian Financial Group.

About ACCO Brands

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Christopher McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source:

December 7, 2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that Beth Simermeyer has been elected to the Board of Directors, effective December 5, 2023.

“We are excited to welcome Beth, a dynamic business leader with a proven track record of success to ACCO Brands’ Board of Directors. Beth’s extensive marketing expertise, P&L ownership and global leadership mindset, will further enhance our Board and help us execute on our strategic transformation. We look forward to leveraging Beth’s insights to continue to further strengthen the company going forward,” said Boris Elisman, Executive Chairman of ACCO Brands Corporation.

Ms. Simermeyer brings substantial business leadership experience in marketing, transformation, innovation, growth acceleration, acquisitions and top and bottom-line delivery in the consumer goods, industrial and healthcare sectors. In her most recent role as Global Group President, Executive Vice President, Healthcare and Life Sciences at Ecolab (NYSE: ECL) she launched and led the global Life Sciences business that has become a top investment priority for the company. During her more than thirty-year career, Ms. Simermeyer held several senior brand and general management roles, including Ecolab’s Chief Marketing Officer, where her responsibilities spanned sustainability, customer insights, branding and communications. Prior to joining Ecolab, Ms. Simermeyer was Senior Vice President, North America at S.C. Johnson. She started her career at The Procter & Gamble Company (NYSE: PG). Since 2019, she has served as an Independent Director at the Securian Financial Group.

About ACCO Brands

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Christopher McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

Release – ACCO Brands Announced as One of America’s Safest Companies for 2023 by EHS Today

Research News and Market Data on ACCO

November 14, 2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands (NYSE: ACCO), a world leader in branded consumer and end user products, was named one of America’s Safest Companies in 2023 by EHS Today. The magazine for environment, health, and safety leaders, announced its list of the 2023 America’s Safest Companies last month with 10 companies on the list. These companies are involved in a broad range of activities, from industrial contracting to robotics, from packaging to cabinetry, from consumer packaged goods to electrical construction, and more.

ACCO Brands was among the outstanding companies being honored because of a committed understanding of the value that safety brings to an organization. This is the third time that ACCO Brands has been awarded this title, something only six other companies have achieved.

For more than 20 years, the America’s Safest Companies competition has sought to identify those characteristics that differentiate good safety programs from great ones, and to then celebrate the best practices and procedures that exemplify safety excellence.

“Every America’s Safest Company winner is a standard-bearer of safety excellence. Each winning company has engrained into their culture and their employees a consistent and constant need to keep every person and every situation free from harm,” said EHS Today Editor-in-Chief Dave Blanchard.

To be considered as one of America’s Safest Companies, organizations must complete an application that requires them to demonstrate excellence in several areas: support from leadership and management for EHS efforts; employee involvement in the EHS process; innovative solutions to safety challenges; injury and illness rates lower than the average for their industries; comprehensive training programs; evidence that prevention of incidents is the cornerstone of the safety process; good communication about the value of safety; and a way to substantiate the benefits of the safety process.

As a company with a personal stake in all things ergonomic, ACCO Brands understands the discomfort of aches and pains. That is why the company provides on-site massages using the certified active release technique (ART) to all U.S. manufacturing and distribution center employees—regardless of whether those aches and pains are job-related or not.

“While there is a significant cost to providing the ART benefit to our employees, we believe we have prevented many minor employee issues from becoming more serious medical issues and have a healthier workforce as a result of this program,” says James Edwards, senior director of environmental, health and safety, ACCO Brands.

The best practices from the 2023 America’s Safest Companies are featured in a special section in the July/August 2023 issue of EHS Today magazine and on the brand’s website, www.ehstoday.com. Since 2002, America’s Safest Companies has honored more than 250 organizations for their unwavering commitment to worker safety, health, and environmental stewardship.

About ACCO Brands
ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play, and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

About EHS Today
Owned by Endeavor Business Media, EHS Today is an American occupational safety, and health media brand. It is the leading US magazine for environmental, health and safety management professionals in the manufacturing, construction, and service sectors.

Kori Reed
Corporate Communication, ACCO Brands
Kori.reed@acco.com

Source: ACCO Brands Corporation

ACCO Brands (ACCO) – A Mixed Third Quarter


Monday, November 06, 2023

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Continued Margin Expansion. Gross profit margin increased 400 basis points to 32.3%, primarily due to the cumulative effect of global price increases and cost reduction actions. Year-to-date, ACCO has delivered 380 basis points of gross margin improvement and is now back to 2019 gross margin rate.

But Environment Is Challenged. Macroeconomic weakness, with prolonged softer global demand for technology accessories, and a stronger U.S. dollar, led to lower than expected sales in the quarter. In addition, major retailers in North America continue to focus on holding lower inventory levels, impacting ACCO revenue. The challenged environment is expected to continue at least through the fourth quarter.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – ACCO Brands Reports Third Quarter 2023 Results; Highlighted by Gross Margin Improvement and Strong Free Cash Flow

Research News and Market Data on ACCO

November 2, 2023

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  • Reported net sales of $448 million, with gross margin expanding 400 basis points
  • Operating income of $32 million; adjusted operating income grew 8% to $46 million
  • EPS of $0.15; adjusted EPS of $0.24, at the high end of the Company’s outlook
  • Net operating cash flow improved $80 million year to date; maintains full year 2023 free cash flow outlook of at least $110 million

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today reported financial results for the third quarter and nine months ended September 30, 2023.

“We are pleased with our overall performance and delivered significant gross margin improvement in the third quarter. Gross margins expanded 400 basis points year over year. This improvement reflects the continued recovery of margin from our pricing actions that lagged the pace of inflation last year, as well as cost savings from our restructuring and footprint rationalization efforts. However, macroeconomic weakness, with prolonged softer global demand for technology accessories, and a stronger U.S. dollar led to lower than expected sales in the quarter. Our updated full year sales outlook now reflects a continuing softer demand environment. We remain confident our margin recovery and cost mitigation efforts will drive operating income growth and improved cash flow,” said Tom Tedford, President and Chief Executive Officer of ACCO Brands.

Mr. Tedford concluded, “With our strong cash flow we have reduced debt, and lowered our leverage ratio, positioning us well for the future. We are evaluating ways to further optimize our cost structure and simplify our operations to better leverage our global scale. In addition, we are focused on accelerating our new product development and innovation, as this is a critical component for delivering organic revenue growth over the long term. I am confident that these initiatives, along with our geographically diverse portfolio of leading brands and talented employees, will enable us to further strengthen the company going forward. We are committed to expanding our margin profile and using our strong cash flow to support our quarterly dividend and reduce debt.”

Third Quarter Results

Net sales declined 7.7 percent to $448.0 million from $485.6 million in 2022. Comparable sales fell 9.9 percent, as favorable foreign exchange increased sales by $10.5 million, or 2.2 percent. Both reported and comparable sales declines reflect softer demand due to a weaker macroeconomic environment which has also led to lower global technology spending, and the stabilization of return to office trends.

Operating income was $32.2 million versus an operating loss of $63.0 million in 2022. In 2022, the operating loss was due to a non-cash goodwill impairment charge of $98.7 million related to the North America segment. In 2023, we recognized restructuring charges in EMEA of $3.0 million related to our continued footprint rationalization program. Adjusted operating income increased 7.5 percent to $46.0 million, from $42.8 million in the prior year. This increase reflects recovery of gross margin from the effect of cumulative global price increases and cost reduction actions. This was partially offset by negative fixed cost leverage, and higher SG&A expense primarily due to an increase in incentive compensation compared to the prior year.

The Company reported net income of $14.9 million, or $0.15 per share, compared with a prior year net loss of $68.7 million, or ($0.73) per share. The increase in reported net income was primarily due to the non-repeat of a goodwill impairment charge, partially offset by higher restructuring and income tax expense in the current year. Adjusted net income was $23.1 million, or $0.24 per share, compared with $24.1 million, or $0.25 per share in 2022. Reported and adjusted net income reflects higher interest and non-operating pension expenses.

Business Segment Results

ACCO Brands North America – Third quarter segment net sales of $218.9 million decreased 14.9 percent versus the prior year. Adverse foreign exchange reduced sales by 0.3 percent. Comparable sales of $219.6 million were down 14.6 percent. Both decreases reflect softer demand due to a weaker macroeconomic environment, which has caused lower volumes for technology accessories and certain office products, as well as tight inventory management by retail customers. This more than offset the effect of cumulative pricing actions.

Third quarter operating income in North America was $19.9 million versus an operating loss of $78.4 million a year earlier. The operating loss in 2022 was due to a $98.7 million non-cash goodwill impairment charge. Adjusted operating income was $25.5 million compared to $25.8 million a year ago. The benefit of pricing and cost savings actions was more than offset by the impact of lower sales, negative fixed cost leverage and higher incentive compensation.

ACCO Brands EMEA – Third quarter segment net sales of $126.6 million decreased 2.8 percent versus the prior year. Favorable foreign exchange increased sales by 5.4 percent. Comparable sales of $119.6 million decreased 8.2 percent versus the prior-year period. Both reported and comparable sales declines reflect reduced demand for technology accessories and lower overall demand in the region. This more than offset the effect of cumulative pricing actions.

Third quarter operating income in EMEA was $6.9 million compared to $4.9 million a year earlier, and adjusted operating income was $13.6 million compared to $7.4 million a year ago. In 2023, operating income includes a restructuring charge of $3.0 million related to our footprint rationalization program. The increases in both reported operating income and adjusted operating income reflect recovery of gross margins from price increases and cost savings actions, more than offsetting negative fixed cost leverage and higher incentive compensation.

ACCO Brands International – Thirdquarter segment sales of $102.5 million increased 4.5 percent versus the prior year. Favorable foreign exchange increased sales by 4.3 percent. Comparable sales of $98.3 million increased 0.2 percent versus the year-ago period. Both sales increases reflect stronger pricing and volume growth in Latin America, more than offsetting the impact of weaker economic conditions in Australia and Asia.

Third quarter operating income in the International segment was $16.4 million versus $17.3 million a year earlier. Adjusted operating income was $17.9 million compared to $19.2 million a year ago. The decline in both reflects increased spending to support go-to-market strategies and a favorable reduction of our bad debt reserve during the prior year, which more than offset pricing and cost savings actions.

Nine Month Results

Net sales decreased 7.2 percent to $1,344.2 million from $1,448.2 million in 2022. Adverse foreign exchange reduced sales by $0.9 million, or 0.1 percent. Comparable sales decreased 7.1 percent. Both reported and comparable sales declines reflect lower sales of technology accessories and softer demand in North America and EMEA due to the challenging macroeconomic environment, as well as tight inventory management by our customers. These more than offset the benefit of price increases across all segments, and volume growth in the International segment.

Operating income of $97.5 million compares to an operating loss of $0.8 million in 2022. The operating loss in 2022 was primarily due to a non-cash goodwill impairment charge of $98.7 million, partially offset by the change in value of the contingent consideration. In 2023, we recorded $6.3 million of restructuring charges, largely related to our footprint rationalization program. Adjusted operating income of $136.5 million increased from $123.5 million last year. Both reported and adjusted operating income increases reflect the benefit of global price increases and cost reduction initiatives, partially offset by negative fixed cost leverage and higher SG&A expense primarily due to increased incentive compensation.

Net income was $37.6 million, or $0.39 per share, compared with a net loss of $32.0 million, or ($0.33) per share, in 2022. The increase in reported net income was primarily due to the non-repeat of a goodwill impairment charge, partially offset by higher restructuring and income tax expense in the current year. Adjusted net income was $68.1 million, compared with $70.5 million in 2022, and adjusted earnings per share were $0.70 compared with $0.73 in 2022. Reported and adjusted net income reflect higher interest and non-operating pension expenses.

Capital Allocation and Dividend

Year to date, the Company significantly improved its operating cash flow to $70.7 million versus a cash outflow of $9.6 million in the prior year, driven primarily by improved working capital management. Adjusted free cash flow improved by $75.2 million and was an inflow of $63.2 million versus an outflow of $12.0 million a year earlier. Adjusted free cash flow in 2022 excludes the contingent earnout payment. At the end of the third quarter of 2023, our consolidated leverage ratio was 3.8x.

On October 27, 2023, ACCO Brands announced that its board of directors declared a regular quarterly cash dividend of $0.075 per share. The dividend will be paid on December 6, 2023, to stockholders of record at the close of business on November 15, 2023.

Updated Full Year 2023 Outlook

Reported sales for 2023 are now expected to be down 6 percent to 7 percent. The full year adjusted EPS outlook is now expected to be in the range of $1.03 to $1.07. Low double-digit growth in adjusted operating income is expected to be mostly offset by higher interest and non-cash, non-operating pension expenses. The update reflects the expectation of continued soft demand due to economic uncertainty and a stronger U.S. dollar. The Company is maintaining its 2023 free cash flow outlook to at least $110 million and now expects to end the year with a consolidated leverage ratio of approximately 3.5x.

Webcast

At 8:30 a.m. ET on November 3, 2023, ACCO Brands Corporation will host a conference call to discuss the Company’s third quarter 2023 results. The call will be broadcast live via webcast. The webcast can be accessed through the Investor Relations section of www.accobrands.com. The webcast will be in listen-only mode and will be available for replay following the event.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Non-GAAP Financial Measures

In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this earnings release to aid investors in understanding the Company’s performance. Each non-GAAP financial measure is defined and reconciled to its most directly comparable GAAP financial measure in the “About Non-GAAP Financial Measures” section of this earnings release.

Forward-Looking Statements

Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Because actual results may differ materially from those suggested or implied by such forward-looking statements, you should not place undue reliance on them when deciding whether to buy, sell or hold the Company’s securities.

Our outlook is based on certain assumptions, which we believe to be reasonable under the circumstances. These include, without limitation, assumptions regarding the impact of inflation and global geopolitical and economic uncertainties, fluctuations in foreign currency exchange rates and acquisitions; and the other factors described below.

Among the factors that could cause our actual results to differ materially from our forward-looking statements are: our ability to successfully execute our restructuring plans and realize the benefits of our productivity initiatives; our ability to obtain additional price increases and realize longer-term cost reductions; the ongoing impact of the COVID-19 pandemic; a relatively limited number of large customers account for a significant percentage of our sales; issues that influence customer and consumer discretionary spending during periods of economic uncertainty or weakness; risks associated with foreign currency exchange rate fluctuations; challenges related to the highly competitive business environment in which we operate; our ability to develop and market innovative products that meet consumer demands and to expand into new and adjacent product categories that are experiencing higher growth rates; our ability to successfully expand our business in emerging markets and the exposure to greater financial, operational, regulatory, compliance and other risks in such markets; the continued decline in the use of certain of our products; risks associated with seasonality; the sufficiency of investment returns on pension assets, risks related to actuarial assumptions, changes in government regulations and changes in the unfunded liabilities of a multi-employer pension plan; any impairment of our intangible assets; our ability to secure, protect and maintain our intellectual property rights, and our ability to license rights from major gaming console makers and video game publishers to support our gaming accessories business; continued disruptions in the global supply chain; risks associated with inflation and other changes in the cost or availability of raw materials, transportation, labor, and other necessary supplies and services and the cost of finished goods; risks associated with outsourcing production of certain of our products, information technology systems and other administrative functions; the failure, inadequacy or interruption of our information technology systems or its supporting infrastructure; risks associated with a cybersecurity incident or information security breach, including that related to a disclosure of personally identifiable information; our ability to grow profitably through acquisitions; our ability to successfully integrate acquisitions and achieve the financial and other results anticipated at the time of acquisition, including planned synergies; risks associated with our indebtedness, including limitations imposed by restrictive covenants, our debt service obligations, and our ability to comply with financial ratios and tests; a change in or discontinuance of our stock repurchase program or the payment of dividends; product liability claims, recalls or regulatory actions; the impact of litigation or other legal proceedings; our failure to comply with applicable laws, rules and regulations and self-regulatory requirements, the costs of compliance and the impact of changes in such laws; our ability to attract and retain qualified personnel; the volatility of our stock price; risks associated with circumstances outside our control, including those caused by public health crises, such as the occurrence of contagious diseases, severe weather events, war, terrorism and other geopolitical incidents; and other risks and uncertainties described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and in other reports we file with the Securities and Exchange Commission.

 
ACCO Brands Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
 
 September 30,
2023
December 31,
2022
(in millions)(unaudited) 
Assets  
Current assets:  
Cash and cash equivalents$73.7 $62.2 
Accounts receivable, net 351.7  384.1 
Inventories 368.5  395.2 
Other current assets 41.1  40.8 
Total current assets 835.0  882.3 
Total property, plant and equipment 585.7  589.2 
Less: accumulated depreciation (417.5) (404.1)
Property, plant and equipment, net 168.2  185.1 
Right of use asset, leases 86.4  88.8 
Deferred income taxes 92.5  99.7 
Goodwill 664.8  671.5 
Identifiable intangibles, net 814.4  847.0 
Other non-current assets 22.4  20.3 
Total assets$2,683.7 $2,794.7 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Notes payable$2.9 $10.3 
Current portion of long-term debt 67.2  49.7 
Accounts payable 173.0  239.5 
Accrued compensation 47.1  38.3 
Accrued customer program liabilities 97.0  103.3 
Lease liabilities 19.2  21.2 
Other current liabilities 112.5  126.7 
Total current liabilities 518.9  589.0 
Long-term debt, net 892.2  936.5 
Long-term lease liabilities 73.9  75.2 
Deferred income taxes 134.0  144.1 
Pension and post-retirement benefit obligations 140.3  155.5 
Other non-current liabilities 86.4  84.3 
Total liabilities 1,845.7  1,984.6 
Stockholders’ equity:  
Common stock 1.0  1.0 
Treasury stock (45.1) (43.4)
Paid-in capital 1,908.5  1,897.2 
Accumulated other comprehensive loss (537.5) (540.3)
Accumulated deficit (488.9) (504.4)
Total stockholders’ equity 838.0  810.1 
Total liabilities and stockholders’ equity$2,683.7 $2,794.7 
 
ACCO Brands Corporation and Subsidiaries
Consolidated Statements of Income (Loss) (Unaudited)
(In millions, except per share data)
 
  Three Months Ended
September 30,
   Nine Months Ended
September 30,
  
  2023 2022 % Change 2023 2022 % Change
Net sales $448.0  $485.6  (7.7)% $1,344.2  $1,448.2  (7.2)%
Cost of products sold  303.2   348.2  (12.9)%  915.9   1,041.2  (12.0)%
Gross profit  144.8   137.4  5.4%  428.3   407.0  5.2%
Operating costs and expenses:            
Selling, general and administrative expenses  98.8   93.9  5.2%  291.8   284.3  2.6%
Amortization of intangibles  10.8   9.9  9.1%  32.7   31.5  3.8%
Restructuring charges  3.0   0.1  NM   6.3   2.3  NM 
Goodwill impairment     98.7  NM      98.7  NM 
Change in fair value of contingent consideration     (2.2) NM      (9.0) NM 
Total operating costs and expenses  112.6   200.4  (43.8)%  330.8   407.8  (18.9)%
Operating income (loss)  32.2   (63.0) NM   97.5   (0.8) NM 
Non-operating expense (income):            
Interest expense  15.6   12.1  28.9%  45.0   32.6  38.0%
Interest income  (1.6)  (2.6) (38.5)%  (6.2)  (6.2) NM 
Non-operating pension expense (income)  0.2   (0.5) NM   0.5   (3.2) NM 
Other income, net  (3.6)  (7.4) (51.4)%  (2.1)  (10.2) (79.4)%
Income (loss) before income tax  21.6   (64.6) NM   60.3   (13.8) NM 
Income tax expense  6.7   4.1  63.4%  22.7   18.2  24.7%
Net income (loss) $14.9  $(68.7) NM  $37.6  $(32.0) NM 
             
Per share:            
Basic income (loss) per share $0.16  $(0.73) NM  $0.40  $(0.33) NM 
Diluted income (loss) per share $0.15  $(0.73) NM  $0.39  $(0.33) NM 
             
Weighted average number of shares outstanding:            
Basic  95.4   94.5     95.2   95.6   
Diluted  96.7   94.5     96.8   95.6   
             
Cash dividends declared per common share $0.075  $0.075    $0.225  $0.225   
             
             
Statistics (as a % of Net sales, except Income tax rate)            
  Three Months Ended
September 30,
   Nine Months Ended
September 30,
  
  2023 2022   2023 2022  
Gross profit (Net sales, less Cost of products sold)  32.3%  28.3%    31.9%  28.1%  
Selling, general and administrative expenses  22.1%  19.3%    21.7%  19.6%  
Operating income (loss)  7.2%  (13.0)%    7.3%  (0.1)%  
Income (loss) before income tax  4.8%  (13.3)%    4.5%  (1.0)%  
Net income (loss)  3.3%  (14.1)%    2.8%  (2.2)%  
Income tax rate  31.0%  (6.3)%    37.6%  (131.9)%  
 
ACCO Brands Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
 Nine Months Ended September 30,
(in millions)20232022
Operating activities  
Net income (loss)$37.6 $(32.0)
Payments of contingent consideration   (9.2)
Loss on disposal of assets (0.3) (0.1)
Change in fair value of contingent liability   (9.0)
Depreciation 25.2  28.6 
Amortization of debt issuance costs 2.3  2.0 
Amortization of intangibles 32.7  31.5 
Stock-based compensation 10.4  7.8 
Non-cash charge for goodwill impairment   98.7 
Changes in operating assets and liabilities:  
Accounts receivable 30.9  48.8 
Inventories 35.5  (20.9)
Other assets (5.4) (20.1)
Accounts payable (72.8) (80.8)
Accrued expenses and other liabilities (17.8) (47.2)
Accrued income taxes (7.6) (7.7)
Net cash provided (used) by operating activities 70.7  (9.6)
Investing activities  
Additions to property, plant and equipment (9.7) (11.8)
Proceeds from the disposition of assets 2.2  0.2 
Net cash used by investing activities (7.5) (11.6)
Financing activities  
Proceeds from long-term borrowings 121.9  218.0 
Repayments of long-term debt (145.4) (95.2)
Repayments of notes payable, net (7.3) (7.6)
Dividends paid (21.4) (21.5)
Payments of contingent consideration   (17.8)
Repurchases of common stock   (19.4)
Payments related to tax withholding for stock-based compensation (1.7) (2.5)
Proceeds from the exercise of stock options   4.3 
Net cash (used) provided by financing activities (53.9) 58.3 
Effect of foreign exchange rate changes on cash and cash equivalents 2.2  (0.3)
Net increase in cash and cash equivalents 11.5  36.8 
Cash and cash equivalents  
Beginning of the period 62.2  41.2 
End of the period$73.7 $78.0 
 

About Non-GAAP Financial Measures

We explain below how we calculate each of our non-GAAP financial measures. This is followed by a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financial measures.

We use our non-GAAP financial measures both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business. We believe our non-GAAP financial measures provide management and investors with a more complete understanding of our underlying operational results and trends, facilitate meaningful period-to-period comparisons and enhance an overall understanding of our past and future financial performance.

Our non-GAAP financial measures exclude certain items that may have a material impact upon our reported financial results such as restructuring charges, transaction and integration expenses associated with material acquisitions, the impact of foreign currency exchange rate fluctuations and acquisitions, unusual tax items, goodwill impairment charges, and other non-recurring items that we consider to be outside of our core operations. These measures should not be considered in isolation or as a substitute for, or superior to, the directly comparable GAAP financial measures and should be read in connection with the Company’s financial statements presented in accordance with GAAP.

Our non-GAAP financial measures include the following:

Comparable Sales : Represents net sales excluding the impact of material acquisitions, if any, with current-period foreign operation sales translated at prior-year currency rates. We believe comparable sales are useful to investors and management because they reflect underlying sales and sales trends without the effect of material acquisitions and fluctuations in foreign exchange rates and facilitate meaningful period-to-period comparisons. We sometimes refer to comparable sales as comparable net sales.

Adjusted Selling, General and Administrative (SG&A) Expenses : Represents selling, general and administrative expenses excluding transaction and integration expenses related to material acquisitions. We believe adjusted SG&A expenses are useful to investors and management because they reflect underlying SG&A expenses without the effect of expenses related to acquiring and integrating acquisitions that we consider to be outside our core operations and facilitate meaningful period-to-period comparisons.

Adjusted Operating Income (Loss)/Adjusted Income (Loss) Before Taxes/Adjusted Net Income (Loss)/Adjusted Net Income (Loss) Per Diluted Share: Represents operating income (loss), income (loss) before taxes, net income (loss), and net income per diluted share excluding restructuring and goodwill impairment charges, the amortization of intangibles, the amortization of the step-up in value of inventory, the change in fair value of contingent consideration, transaction and integration expenses associated with material acquisitions, non-recurring items in interest expense or other income/expense such as expenses associated with debt refinancing, a bond redemption, or a pension curtailment, and other non-recurring items as well as all unusual and discrete income tax adjustments, including income tax related to the foregoing. We believe these adjusted non-GAAP financial measures are useful to investors and management because they reflect our underlying operating performance before items that we consider to be outside our core operations and facilitate meaningful period-to-period comparisons. Senior management’s incentive compensation is derived, in part, using adjusted operating income and adjusted net income per diluted share, which is derived from adjusted net income. We sometimes refer to adjusted net income per diluted share as adjusted earnings per share or adjusted EPS.

Adjusted Income Tax Expense/Rate: Represents income tax expense/rate excluding the tax effect of the items that have been excluded from adjusted income before taxes, unusual income tax items such as the impact of tax audits and changes in laws, significant reserves for cash repatriation, excess tax benefits/losses, and other discrete tax items. We believe our adjusted income tax expense/rate is useful to investors because it reflects our baseline income tax expense/rate before benefits/losses and other discrete items that we consider to be outside our core operations and facilitates meaningful period-to-period comparisons.

Adjusted EBITDA: Represents net income excluding the effects of depreciation, stock-based compensation expense, amortization of intangibles, the change in fair value of contingent consideration, interest expense, net, other (income) expense, net, and income tax expense, the amortization of the step-up in value of inventory, transaction and integration expenses associated with material acquisitions, restructuring and goodwill impairment charges, non-recurring items in interest expense or other income/expense such as expenses associated with debt refinancing, a bond redemption, or a pension curtailment and other non-recurring items. We believe adjusted EBITDA is useful to investors because it reflects our underlying cash profitability and adjusts for certain non-cash charges, and items that we consider to be outside our core operations and facilitates meaningful period-to-period comparisons. In addition, this calculation of adjusted EBITDA is used in our loan agreement to calculate our leverage ratio covenant.

Free Cash Flow/Adjusted Free Cash Flow: Free cash flow represents cash flow from operating activities less cash used for additions to property, plant and equipment. Adjusted free cash flow represents free cash flow, less cash payments made for contingent earnouts, plus cash proceeds from the disposition of assets. We believe free cash flow and adjusted free cash flow are useful to investors because they measure our available cash flow for paying dividends, funding strategic material acquisitions, reducing debt, and repurchasing shares.

Consolidated Leverage Ratio: Represents balance sheet debt, plus debt origination costs and less any cash and cash equivalents divided by adjusted EBITDA. We believe that consolidated leverage ratio is useful to investors since the company has the ability to, and may decide to use, a portion of its cash and cash equivalents to retire debt.

We also provide forward-looking non-GAAP comparable sales, adjusted earnings per share, free cash flow, adjusted free cash flow, adjusted EBITDA, and adjusted tax rate, and historical and forward-looking consolidated leverage ratio. We do not provide a reconciliation of these forward-looking and historical non-GAAP measures to GAAP because the GAAP financial measure is not currently available and management cannot reliably predict all the necessary components of such non-GAAP measures without unreasonable effort or expense due to the inherent difficulty of forecasting and quantifying certain amounts that are necessary for such a reconciliation, including adjustments that could be made for restructuring, integration and acquisition-related expenses, the variability of our tax rate and the impact of foreign currency fluctuation and material acquisitions, and other charges reflected in our historical results. The probable significance of each of these items is high and, based on historical experience, could be material.

 
ACCO Brands Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited)
(In millions, except per share data)
The following tables set forth a reconciliation of certain Consolidated Statements of Income (Loss) information reported in accordance with GAAP to Adjusted Non-GAAP Information for the three months ended September 30, 2023 and 2022.
 
  Three Months Ended September 30, 2023
   Operating Income % of Sales  Income before Tax % of Sales  Income Tax Expense (A) Tax Rate  Net Income % of Sales
                     
Reported GAAP  $32.2 7.2%  $21.6  4.8%  $6.7  31.0%  $14.9  3.3%
Reported GAAP diluted income per share (EPS)                 $0.15   
Restructuring charges   3.0     3.0      0.7      2.3   
Amortization of intangibles   10.8     10.8      2.8      8.0   
Gain on sale of property        (1.5)     (0.5)     (1.0)  
Operating tax gains(D)       (1.3)     (0.4)     (0.9)  
Other discrete tax items              0.2      (0.2)  
Adjusted Non-GAAP  $46.0 10.3%  $32.6  7.3%  $9.5  29.1%  $23.1  5.2%
Adjusted net income per diluted share (Adjusted EPS)                 $0.24   
 
 
  Three Months Ended September 30, 2022
   SG&A % of Sales  Operating(Loss) Income % of Sales  (Loss) Income before Tax % of Sales  Income Tax Expense (A) Tax Rate  Net (Loss) Income % of Sales
                          
Reported GAAP $$93.9 19.3%  $(63.0) (13.0)%  $(64.6) (13.3)%  $4.1  (6.3)%  $(68.7) (14.1)%
Reported GAAP diluted loss per share (EPS)                      $(0.73)  
Release of charge for Russia business   0.7     (0.7)     (0.7)     (0.1)     (0.6)  
Restructuring charges        0.1      0.1      0.1         
Goodwill impairment charge        98.7      98.7            98.7   
Amortization of intangibles        9.9      9.9      2.6      7.3   
Change in fair value of contingent consideration(C)       (2.2)     (2.2)     (0.6)     (1.6)  
Operating tax gains(D)             (7.3)     (2.5)     (4.8)  
Other discrete tax items                    6.2      (6.2)  
Adjusted Non-GAAP  $94.6 19.5%  $42.8  8.8%  $33.9  7.0%  $9.8  29.0%  $24.1  5.0%
Adjusted net income per diluted share (Adjusted EPS)                      $0.25   
 
See “Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income (Loss) to Adjusted EBITDA (Unaudited)” for further information regarding adjusted items.
 
ACCO Brands Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited)
(In millions, except per share data)
The following tables set forth a reconciliation of certain Consolidated Statements of Income (Loss) information reported in accordance with GAAP to Adjusted Non-GAAP Information for the nine months ended September 30, 2023 and 2022.
 
  Nine Months Ended September 30, 2023
   Operating Income % of Sales  Income before Tax % of Sales  Income Tax Expense (A) Tax Rate  Net Income % of Sales
                     
Reported GAAP  $97.5 7.3%  $60.3  4.5%  $22.7  37.6%  $37.6  2.8%
Reported GAAP diluted income per share (EPS)                 $0.39   
Restructuring charges   6.3     6.3      1.6      4.7   
Amortization of intangibles   32.7     32.7      8.6      24.1   
Other asset write-off(B)       1.1      0.3      0.8   
Gain on sale of property        (1.5)     (0.5)     (1.0)  
Operating tax gains(D)       (1.3)     (0.4)     (0.9)  
Other discrete tax items              (2.8)     2.8   
Adjusted Non-GAAP  $136.5 10.2%  $97.6  7.3%  $29.5  30.2%  $68.1  5.1%
Adjusted net income per diluted share (Adjusted EPS)                 $0.70   
 
 
  Nine Months Ended September 30, 2022
   SG&A % of Sales  Operating (Loss) Income % of Sales  (Loss) Income before Tax % of Sales  Income Tax Expense (A) Tax Rate  Net (Loss) Income % of Sales 
                           
Reported GAAP  $284.3  19.6%  $(0.8) (0.1)%  $(13.8) (1.0)%  $18.2  (131.9)%  $(32.0) (2.2)% 
Reported GAAP diluted loss per share (EPS)                      $(0.33)   
Charge for Russia business   (0.8)     0.8      0.8      0.2      0.6    
Restructuring charges         2.3      2.3      0.6      1.7    
Goodwill impairment charge         98.7      98.7            98.7    
Amortization of intangibles         31.5      31.5      8.3      23.2    
Change in fair value of contingent consideration(C)        (9.0)     (9.0)     (2.3)     (6.7)   
Operating tax gains(D)              (11.2)     (3.8)     (7.4)   
Other discrete tax items                     7.6      (7.6)   
Adjusted Non-GAAP  $283.5  19.6%  $123.5  8.5%  $99.3  6.9%  $28.8  29.0%  $70.5  4.9% 
Adjusted net income per diluted share (Adjusted EPS)                      $0.73    
 
See “Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income (Loss) to Adjusted EBITDA (Unaudited)” for further information regarding adjusted items.
 
ACCO Brands Corporation and Subsidiaries
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)
(In millions)
The following table sets forth a reconciliation of net income (loss) reported in accordance with GAAP to Adjusted EBITDA.
 
   Three months ended
September 30,
   Nine months ended
September 30,
  
   2023 2022 % Change 2023 2022 % Change
Net income (loss)  $14.9  $(68.7) NM  $37.6  $(32.0) NM 
Stock-based compensation   1.5   0.6  NM   10.4   7.8  33.3%
Depreciation   7.9   9.0  (12.2)%  25.2   28.6  (11.9)%
(Release) charge for Russia business      (0.7) NM      0.8  NM 
Amortization of intangibles   10.8   9.9  9.1%  32.7   31.5  3.8%
Restructuring charges   3.0   0.1  NM   6.3   2.3  NM 
Goodwill impairment charge      98.7  NM      98.7  NM 
Change in fair value of contingent consideration(C)     (2.2) NM      (9.0) NM 
Interest expense, net   14.0   9.5  47.4%  38.8   26.4  47.0%
Other income, net   (3.6)  (7.4) (51.4)%  (2.1)  (10.2) (79.4)%
Income tax expense   6.7   4.1  63.4%  22.7   18.2  24.7%
Adjusted EBITDA (non-GAAP)  $55.2  $52.9  4.3% $171.6  $163.1  5.2%
Adjusted EBITDA as a % of Net Sales   12.3%  10.9%    12.8%  11.3%  
 
See “Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income (Loss) to Adjusted EBITDA (Unaudited)” for further information regarding adjusted items.
 
Reconciliation of Net Cash (Used) Provided by Operating Activities to Adjusted Free Cash Flow (Unaudited)
(In millions)
The following table sets forth a reconciliation of net cash (used) provided by operating activities reported in accordance with GAAP to Adjusted Free Cash Flow.
 
  Three months ended
September 30, 2023
 Three months ended
September 30, 2022
 For the nine months
ended September 30, 2023
 For the nine months
ended September 30, 2022
Net cash provided (used) by operating activities $110.0  $88.3  $70.7  $(9.6)
Net (used) provided by:        
Additions to property, plant and equipment  (3.6)  (4.8)  (9.7)  (11.8)
Proceeds from the disposition of assets  2.2      2.2   0.2 
Payments of contingent consideration           9.2 
Adjusted Free Cash Flow (non-GAAP) $108.6  $83.5  $63.2  $(12.0)
 
Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income (Loss) to Adjusted EBITDA (Unaudited)
 
A. The income tax impact of the non-GAAP adjustments and other discrete tax items.
B. Represents the write off of assets related to a capital project.
C. Represents income from the change in fair value of the contingent consideration for the PowerA acquisition.
D. Represents gains related to the release of reserves for certain operating taxes.
 
ACCO Brands Corporation and Subsidiaries
Supplemental Business Segment Information and Reconciliation (Unaudited)
(In millions)
 
  2023 2022 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) Margin Net Sales (Loss) Items (Loss) Margin $ % (Loss) $ (Loss) % Points
Q1:                              
ACCO Brands North America $176.7 $5.2  $5.7$ 10.9  6.2% $208.5 $13.9  $5.9  $19.8  9.5% $(31.8) (15.3)% $(8.9) (44.9)% (330)
ACCO Brands EMEA  135.8  7.8   5.8  13.6  10.0%  156.1  5.6   3.5   9.1  5.8%  (20.3) (13.0)%  4.5  49.5% 420 
ACCO Brands International  90.1  9.0   2.7  11.7  13.0%  77.0  4.2   2.0   6.2  8.1%  13.1  17.0%  5.5  88.7% 490 
Corporate    (11.9)    (11.9)      (16.9)  4.4   (12.5)         0.6     
Total $402.6 $10.1  $14.2$ 24.3  6.0% $441.6 $6.8  $15.8  $22.6  5.1% $(39.0) (8.8)% $1.7  7.5% 90 
                               
Q2:                              
ACCO Brands North America $292.6 $55.1  $5.6$ 60.7  20.7% $306.6 $50.7  $6.5  $57.2  18.7% $(14.0) (4.6)% $3.5  6.1% 200 
ACCO Brands EMEA  125.7  5.7   3.8  9.5  7.6%  137.9  (1.5)  3.6   2.1  1.5%  (12.2) (8.8)%  7.4  NM  610 
ACCO Brands International  75.3  6.7   1.6  8.3  11.0%  76.5  6.3   2.3   8.6  11.2%  (1.2) (1.6)%  (0.3) (3.5)% (20)
Corporate    (12.3)    (12.3)      (0.1)  (9.7)  (9.8)         (2.5)    
Total $493.6 $55.2  $11.0$ 66.2  13.4% $521.0 $55.4  $2.7  $58.1  11.2% $(27.4) (5.3)% $8.1  13.9% 220 
                               
Q3:                              
ACCO Brands North America $218.9 $19.9  $5.6$ 25.5  11.6% $257.2 $(78.4) $104.2  $25.8  10.0% $(38.3) (14.9)% $(0.3) (1.2)% 160 
ACCO Brands EMEA  126.6  6.9   6.7  13.6  10.7%  130.3  4.9   2.5   7.4  5.7%  (3.7) (2.8)%  6.2  83.8% 500 
ACCO Brands International  102.5  16.4   1.5  17.9  17.5%  98.1  17.3   1.9   19.2  19.6%  4.4  4.5%  (1.3) (6.8)% (210)
Corporate    (11.0)    (11.0)      (6.8)  (2.8)  (9.6)         (1.4)    
Total $448.0 $32.2  $13.8$ 46.0  10.3% $485.6 $(63.0) $105.8  $42.8  8.8% $(37.6) (7.7)% $3.2  7.5% 150 
                               
Q4:                              
ACCO Brands North America           $225.7 $8.9  $9.8  $18.7  8.3%          
ACCO Brands EMEA            156.0  12.7   5.7   18.4  11.8%          
ACCO Brands International            117.7  22.7   1.6   24.3  20.6%          
Corporate              (8.7)  (0.4)  (9.1)            
Total           $499.4 $35.6  $16.7  $52.3  10.5%          
                               
YTD:                              
ACCO Brands North America $688.2 $80.2  $16.9 $97.1  14.1% $998.0 $(4.9) $126.4  $121.5  12.2%          
ACCO Brands EMEA  388.1  20.4   16.3  36.7  9.5%  580.3  21.7   15.3   37.0  6.4%          
ACCO Brands International  267.9  32.1   5.8  37.9  14.1%  369.3  50.5   7.8   58.3  15.8%          
Corporate    (35.2)    (35.2)      (32.5)  (8.5)  (41.0)            
Total $1,344.2 $97.5  $39.0 $136.5  10.2% $1,947.6 $34.8  $141.0  $175.8  9.0%          
See “Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income (Loss) to Adjusted EBITDA (Unaudited)” for further information regarding adjusted items.
 
ACCO Brands Corporation and Subsidiaries
Supplemental Net Sales Change Analysis (Unaudited)
 
  % Change – Net Sales $ Change – Net Sales (in millions)  
  GAAPNon-GAAP  GAAPNon-GAAP  
      Comparable      Comparable  
  Net Sales Currency Net Sales  Net Sales Currency Net Sales Comparable
  Change Translation Change (A)  Change Translation Change (A) Net Sales
Q1 2023:               
ACCO Brands North America (15.3)% (0.7)% (14.6)%  $(31.8) $(1.5) $(30.3) $178.2
ACCO Brands EMEA (13.0)% (5.7)% (7.3)%  (20.3) (9.0) (11.3) 144.8
ACCO Brands International 17.0 % (0.2)% 17.2 %  13.1 (0.2) 13.3 90.3
Total (8.8)% (2.4)% (6.4)%  $(39.0) $(10.6) $(28.4) $413.2
                
Q2 2023:               
ACCO Brands North America (4.6)% (0.5)% (4.1)%  $(14.0) $(1.6) $(12.4) $294.2
ACCO Brands EMEA (8.8)% 0.3 % (9.1)%  (12.2) 0.4 (12.6) 125.3
ACCO Brands International (1.6)% 0.7 % (2.3)%  (1.2) 0.5 (1.7) 74.8
Total (5.3)% (0.2)% (5.1)%  $(27.4) $(0.8) $(26.6) $494.4
                
Q3 2023:               
ACCO Brands North America (14.9)% (0.3)% (14.6)%  $(38.3) $(0.7) $(37.6) $219.6
ACCO Brands EMEA (2.8)% 5.4 % (8.2)%  (3.7) 7.0 (10.7) 119.6
ACCO Brands International 4.5 % 4.3 % 0.2 %  4.4 4.2 0.2 98.3
Total (7.7)% 2.2 % (9.9)%  $(37.6) $10.5 $(48.1) $437.5
                
2023 YTD:               
ACCO Brands North America (10.9)% (0.5)% (10.4)%  $(84.1) $(3.8) $(80.3) $692.0
ACCO Brands EMEA (8.5)% (0.4)% (8.1)%  (36.2) (1.6) (34.6) 389.7
ACCO Brands International 6.5 % 1.8 % 4.7 %  16.3 4.5 11.8 263.4
Total (7.2)% (0.1)% (7.1)%  $(104.0) $(0.9) $(103.1) $1,345.1
(A) Comparable sales represents net sales excluding material acquisitions, if any, and with current-period foreign operation sales translated at the prior-year currency rates.

Christopher McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

ACCO Brands (ACCO) – First Look into a Mixed Third Quarter


Friday, November 03, 2023

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A Mixed Bag. ACCO’s 3Q23 results were a mixed bag. Global macroeconomic weakness, softer technology accessories product demand, and a stronger U.S. dollar negatively impacted 3Q23 top line. But gross margin improved by 400 basis points, reflecting the continued recovery of margin from pricing actions, as well as cost savings from the Company’s restructuring and footprint rationalization efforts.

3Q23 Results. Net sales for the quarter declined 7.7% to $448.0 million from $485.6 million last year. We had estimated sales of $475 million. Comparable sales fell 9.9%. Net income was $14.9 million, or $0.15 per share, compared to a net loss of $68.7 million, or $0.73, last year. Last year was impacted by a goodwill impairment charge, partially offset by higher restructuring and income tax expense in the current year. Adjusted net income was $23.1 million, or $0.24, compared to $24.1 million, or $0.25, last year.


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Release – ACCO Brands Corporation Declares Quarterly Dividend

Research News and Market Data on ACCO

October 27, 2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that its board of directors has declared a quarterly cash dividend of $0.075 per share. The dividend will be paid on December 6, 2023, to stockholders of record as of the close of business on November 15, 2023.

“This is the Company’s 24th quarterly cash dividend since it began paying dividends in 2018. The Company’s dividend has become an important part of our capital allocation strategy and we remain committed to supporting our quarterly dividend with our robust free cash flow. At the current stock price, on an annualized basis, our shareholders are receiving an almost 6% yield on their investment,” said Tom Tedford, President and Chief Executive Officer of ACCO Brands.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Chris McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

Release – ACCO Brands Corporation Announces Third Quarter 2023 Earnings Webcast

Research News and Market Data on ACCO

October 20, 2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that it will release its third quarter 2023 earnings after the market close on November 2, 2023. The Company will host a conference call and webcast to discuss the results on November 3 at 8:30 a.m. ET. The webcast can be accessed through the Investor Relations section of www.accobrands.com and will be available for replay.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Christopher McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

Release – ACCO Brands Publishes 2022 Environmental, Social and Governance (ESG) Report

Research News and Market Data on ACCO

09/18/2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) a leading global consumer, technology, and business branded products company, today published its 2022 Environmental, Social and Governance (ESG) Report.

“At ACCO Brands, we are committed to operating our business with the highest ethical standards. We foster accountability to our stakeholders with strong governance and risk management policies and practices,” noted Tom Tedford, President, and Chief Operating Officer. “Our ESG report highlights our progress in delivering on our commitments to our employees, the environment, and the communities in which we live and work. Our work is organized under the pillars of People, Planet and Products and is guided by our long-standing values: to act with integrity, embrace diversity and act responsibly in our global community,” concluded Mr. Tedford.

To access the Company’s 2022 ESG Report and learn more about the Company’s ESG efforts, read the full report by clicking here.

About ACCO Brands

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Lori Conley
Corporate Communications
lori.conley@acco.com

Source: ACCO Brands Corporation

Release – ACCO Brands Publishes 2022 Environmental, Social and Governance (ESG) Report

Research News and Market Data on ACCO

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) a leading global consumer, technology, and business branded products company, today published its 2022 Environmental, Social and Governance (ESG) Report.

“At ACCO Brands, we are committed to operating our business with the highest ethical standards. We foster accountability to our stakeholders with strong governance and risk management policies and practices,” noted Tom Tedford, President, and Chief Operating Officer. “Our ESG report highlights our progress in delivering on our commitments to our employees, the environment, and the communities in which we live and work. Our work is organized under the pillars of People, Planet and Products and is guided by our long-standing values: to act with integrity, embrace diversity and act responsibly in our global community,” concluded Mr. Tedford.

To access the Company’s 2022 ESG Report and learn more about the Company’s ESG efforts, read the full report by clicking here.

About ACCO Brands

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Lori Conley
Corporate Communications
lori.conley@acco.comSource: ACCO Brands Corporation