Nordson Corporation. Investor Presentation

Transcription

1 Nordson Corporation Investor Presentation A premier industrial technology company focused on precision dispensing, fluid control and related processes : NDSN December 13, 2017 Fiscal Q Results & Fiscal Q Outlook

2 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Information in this presentation may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of Forward-looking statements can be identified by words such as may, will, should, expects, intends, plans, anticipates, believes, estimates, predicts, projects, or potential or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. All statements regarding our future performance, earnings projections, events or developments are forward-looking statements. These forward-looking statements are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties are described under Risk Factors in Item 1A of our annual report on Form 10-K and any updates to those factors set forth in our subsequent quarterly reports on Form 10-Q or current reports on Form 8-K. We make these statements as of the date of this disclosure, and undertake no obligation to update them unless otherwise required by law. 2

3 Nordson at a Glance A premier industrial technology company focused on precision dispensing, fluid control and related processes Founded in 1954 FY17 sales = $2.1 billion 7,500 employees Direct presence in 35+ countries Best-in-class technology Diversified, growing end markets Market leading positions Sustained financial performance Outstanding long-term returns 3

4 Diversified Sources of Revenue FY2017 Profile - $2.1 billion Product Type High percentage of recurring revenue from parts and consumables Geography Nearly 70% of revenue outside USA. Direct presence in over 35 countries. Diverse End Markets Consumer non-durables, durables, industrial, medical and technology Operating Segments Three segments with leading product lines and brands 4

5 *((Share Price at 10/31/2017 Share Price at 10/31/ dividends) / Share Price at 10/31/2012 ) = (($ $ $4.39) / $59.03 ) = 122% Investment Highlights Strong growth: organic and acquisitive Outstanding gross margins Excellent EBITDA margins High level of free cash flow before dividends Strong cash returns to shareholders Reliable and consistent dividend Outstanding long term Total Shareholder Returns 8% CAGR % Gross Margin Average % EBITDA Margin Average $1.5 billion 100% of net income $1.0 billion Share repurchases & dividends Years of annual increases (22% payout ratio in 2017) 122% TSR*

6 Total Shareholder Return Above Our Peers Source: Nordson Corporation $ $70.90 $ $ $ $ $ $ $ $ $ S&P 500 Index $ $63.90 $70.17 $81.76 $88.37 $ $ $ $ $ $ S&P MidCap 400 $ $63.54 $75.09 $95.84 $ $ $ $ $ $ $ S&P 500 Ind. Machinery $ $57.23 $76.58 $97.99 $ $ $ $ $ $ $ S&P MidCap 400 Ind. Machinery $ $57.90 $71.57 $93.02 $ $ $ $ $ $ $ Peer Group $ $67.28 $72.96 $89.87 $ $ $ $ $ $ $ *Peer Group = AIN, AME, ATU, B, DCI, ENTG, ESL, FLIR, GGG, GTLS, IEX, ITT, KEYS, LECO, ROP, TER, WTS, WWD

7 Why invest in Nordson? Clear Strategy and Goals Strong Execution and Performance Leading Global Businesses Numerous Growth Opportunities Outstanding Culture and Values 7

8 Common Themes of our Strategic Plan Continue to be a Premier Industrial Technology Company Accelerate organic growth Product innovation New applications Emerging markets Recapitalize installed base Segmentation Add key acquisitions Targeted spaces Growth and technology Cultivate proprietary deals Execute and close deals effectively Disciplined pricing Fast integration Further optimize our business Embed Nordson Business System Expand margins Working capital initiatives Drive synergies with acquisitions Enhance and expand organization capability Deepen bench strength Leadership development Rotational assignments Diversity 8 Deliver top quartile total shareholder returns Support our communities & good corporate citizenship

9 Strategic Plan Targets Focused initiatives drive premium sales growth and expand profitability Outpace Revenue Growth % Continuous Improvement ~2x global GDP% Growth Initiatives Underlying Markets Revenue Operating Profit 9

10 The Nordson Business System Driving Continuous Improvement Across the Organization Key Performance Indicators Growth Initiatives Price Effectiveness Cost Reduction Initiatives Cost of Poor Quality Customer Delivery Performance Days of Sales in Inventory Productivity Sales from New Products 10

11 Why invest in Nordson? Clear Strategy and Goals Strong Execution and Performance Leading Global Businesses Numerous Growth Opportunities Outstanding Culture and Values 11

12 Millions of $ Financial Highlights Strong Top Line Growth organic, acquisitive, and currency Industry Leading Gross Margins Consistently mid 50s and above 10 Year CAGR = 7.6% 70% currency +14.3% over FY16 60% 50% 40% +0.2 pts over FY16 30% 20% 10% 0% '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Strong Operating Margins Continuous Improvement Initiatives EPS Growth Outpaces Sales Growth Over Time 30% 25% 20% 15% 10% Dilutive effect of acquisitions +0.7 pts over FY16 $5.50 $5.00 $4.50 $4.00 $3.50 $3.00 $ Year CAGR = 14.3% +7.4% over FY16 5% $2.00 0% '07 '08 '09* '10 '11 '12 '13 '14 '15 '16 '17 $1.50 $1.00 '07 '08 '09* '10 '11 '12 '13 '14 '15 '16 '17 12 *FY09 excludes non-cash charges for impairment of goodwill and other long-lived assets. FY15 results impacted by significant negative currency translation effects compared to the prior year. source NDSN SEC filings

13 $000 $000 Strong Cash Generation Funds Growth and Returns to Shareholders Cash from Operations: > 10% as a % of sales every year Strong Cash Conversion: Free cash flow before dividends = 102% of net income $400,000 $350,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 $- Net cash provided by operating activities Free cash flow before dividends Net income 13 *FY09 excludes non-cash charges for impairment of goodwill and other long-lived assets. FY15 results impacted by significant negative currency translation effects compared to the prior year. source NDSN SEC filings

14 Disciplined Capital Deployment $ millions 100% 90% 80% 70% 60% $20.2 $88.5 $33.8 $25.8 $40.6 $37.7 $33.4 $40.5 $166.4 $383.9 $21.3 $33.4 $56.4 $61.0 Working Cap. 6% $206.6 $63.8 $3.2 Share Repur. 22% $708.8 Dividends 9% $ % or $1.0 billion to shareholders via share repurchases and dividends 50% 40% $441.7 $176.3 $48.4 $42.7 $805.9 Acquisitions 53% $1, % $186.4 $ % 10% 0% $75.6 $64.6 $49.2 $49.1 $66.7 PP&E/Leases 10% $30.0 $72.8 $ TOTAL Self funding business model generates excess cash Low Working Capital Requirements Low Capital Expenditures (approx. 3% of sales) Strong free cash 54 consecutive years of dividend increases - 14 th among publicly traded companies 14

15 In millions $ Strong Capital Management Net Debt to EBITDA* Strong Cash Generation Lets Nordson De-lever Quickly Debt Position at 10/31/ EFD Acquisition (2001) 10% Outstanding Stock Repurchase Four Acquisitions Acquisitions & Share Repurchases Vention Acquisition $1,000 $900 $800 $700 $600 $500 Drawn $905 Available $ $ $300 $200 $100 $0 $100 Private Placement(1) [ 10.5] $12 Term Loan A EUR(2) Term Loan A US(3) $100 (a) $47 (b) NYLIM Shelf(4) $173 Private Placement(5) $249 Syndicated Revolver(6) at fiscal years ending 10/31 At 10/31/2017 Net Debt to TTM EBITDA = 2.5 times (including TTM acquired EBITDA) (1) Amortizing-avg rate 3.04% -Remaining Avg. life 6.24 years (2) Term: ~$12m o/s 3 years (Q4 FY19) at 100 bps over EUR Libor / EUR denominated (3) -Term $100m - 3 years (Q2 FY18) at 100 bps over USD Libor -Term $100m - 5 years (Q2 FY20) at 110 bps over USD Libor -Term $305m 5 years (Q2 FY22) at bps over USD Libor -Term $200m 3 years (Q2 FY20) at 110 bps over USD Libor -Term $200m 18 mos (Q4 FY18) at 100 bps over USD Libor (4) (a) $100m matures Oct 2026 at 125 bps over USD Libor (b) $47m 1.94 remaining avg life at 2.4% (5) Amortizing-avg rate 3.02% -Remaining Avg. life 4.11 years (6) Ends Feb bps over USD Libor based on Q3 grid *Net Debt to EBITDA calculated net of cash 15

16 Fiscal Year Q Results and Fiscal Year Q Guidance as reported in December 13-14, 2017 press release and webcast Nordson Corporation Reports Fiscal Year 2017 Fourth Quarter and Full Year Results Fourth Quarter: Fourth quarter sales increased 13 percent over prior year s fourth quarter to $574 million Fourth quarter operating profit increased 13 percent over prior year s fourth quarter to $125 million and is inclusive of $6 million of intangible asset amortization expense for fiscal 2017 acquisitions Fourth quarter GAAP diluted EPS increased 5 percent over prior year s fourth quarter to $1.37, inclusive of $0.07 per diluted share of intangible asset amortization expense for fiscal 2017 acquisitions Fourth quarter EBITDA increased 17 percent over prior year s fourth quarter to $150 million Full Year: Full year sales, operating profit, diluted EPS, and EBITDA are company records Full year sales of $2.1 billion included 8 percent organic growth, with operating profit and EBITDA growth over the prior year of 18 percent and 19 percent, respectively GAAP diluted EPS increased 7 percent to $5.08, and adjusted diluted EPS increased 15 percent to $5.37, all compared to the prior year. Full year GAAP diluted EPS and adjusted diluted EPS includes a charge of $0.18 per diluted share related to intangible asset amortization expense for fiscal 2017 acquisitions. Guidance First quarter 2018 guidance: sales expected to increase 30 to 34 percent over prior year; GAAP diluted EPS in the range of $1.29 to $1.39; EBITDA in the range of $141 to $150 million 16 See Nordson press release, conference call transcript, presentation Appendix, and SEC filings reconciling adjusted amounts to reported amounts

17 Why invest in Nordson? Clear Strategy and Goals Strong Execution and Performance Leading Global Businesses Numerous Growth Opportunities Outstanding Culture and Values 17

18 We Win with Unique Competitive Advantages Common across our businesses Core Competencies Application development Precision manufacturing Engineering strength Technical expertise Direct global sales and service Customer touch / solutions provider Strategic Assets Customer relationships with leaders Product breadth Technology position Premier brand reputation Large installed product base Global footprint (distribution, support) Balance sheet / ability to scale production Customer Value Proposition Product reliability = more uptime Speed = greater productivity and yield Efficiency = lower material usage Leading product features = ease of operation Unmatched global support Lower Cost of Ownership 18

19 Every Day You Experience the Value We Bring Adhesive Dispensing Systems: consumer non-durable market focus Advanced Technology Systems: electronics, medical and industrial market focus Industrial Coating Systems: durable goods and industrial market focus 19

20 Adhesive Dispensing Systems Leader in recession-resistant, consumer non-durable end markets Targeted organic growth rate: 1.5 to 2x global GDP Packaging Sales CAGR = 6.0% average annual operating margin = 26.6% What we do: Products to melt, filter, pump, transport, dispense and deposit adhesives, polymers and other materials in the manufacturing of a wide range of goods. Nonwovens Growth Drivers Increased use of disposable hygiene products (diapers, fem care, etc) Increased use of packaged convenience foods Increased use of plastics Emerging markets Product tiering Recapitalization of large installed base Productivity investments Material, machinery and process innovations Key End Markets Food and beverage packaging Nonwovens / disposable hygiene / diapers Furniture and building products Macro electronics General industrial assembly Alternative energy Medical devices Labeling Transportation Product Assembly Polymer Processing 20

21 Advanced Technology Systems Leader in rapidly growing electronics, medical and related markets Targeted organic growth rate: 2 to 3x global GDP Automated Dispensing Sales CAGR = 11.7% average annual operating margin = 24.1% Test & Inspection What we do: Precision dispensing, fluid management, test, inspection and surface treatment products for electronics, medical and general industrial markets Growth Drivers Mobile computing smart phones, tablets Circuit shrinkage / new architectures / flip chips Medical needs driven by aging population Medical OEM outsourcing New consumers in emerging markets Product tiering Internet of things Key End Markets Semiconductor packaging Printed circuit board assembly General electronic assembly Medical devices Medical components General industrial assembly Automotive electronics MEMS, sensors, LEDs Solar Surface Treatment Semi Automated Dispensing Single Use Fluid Components 21

22 Industrial Coating Systems Leader in consumer durable goods and industrial end markets Targeted organic growth rate: global GDP+ Powder Coating Sales CAGR = 3.9% average annual operating margin = 15.5% Container Coating What we do: Precision equipment and systems to apply and cure paints, sealants, coatings, cold materials and other materials to a wide range of products Growth Drivers Growth in emerging markets Environmental advantages of powder coatings Glues replacing mechanical fasteners Light-weighting of vehicles Productivity investments Lean manufacturing Quick color change Product tiering Key End Markets Appliances Lawn and garden Food and beverage Automotive assembly Cold material dispensing Pipe coating and construction Woodworking General industrial Electronics / UV curing Cold Material Dispensing Liquid Painting 22

23 Why invest in Nordson? Clear Strategy and Goals Strong Execution and Performance Leading Global Businesses Numerous Growth Opportunities Outstanding Culture and Values 23

24 Multiple Paths to Organic Growth Annual Target is ~2x global GDP 20 New Products 15 Emerging Markets 10 Recapitalize Installed Base 5 Customer Product Changes New Applications 0 Global GDP NDSN Annual Organic Growth Rate Target 24

25 Innovation Drives Organic Growth Steady stream of new products R&D Spend ($ 000) US Patents Granted $55, $50,000 $45, $40,000 $35, $30,000 $25, $20,

26 Emerging Markets Drive Organic Growth Growing middle class drives increased consumption Nordson Sales (000s) Asia Pacific Americas $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ baby diapers, disposable hygiene products packaged foods, beverages, convenience items appliances and other durable goods electronic devices medical products plastic goods 26 Americas reporting includes Canada, but not US -Asia Pacific excludes Japan -Eastern Europe, Middle East and Africa are reported in Europe and not broken out separately

27 New Applications Drive Organic Growth Leveraging our expertise numerous emerging opportunities over last five years Sensor assembly LED assembly MEMS assembly Wafer level inspection Wearable electronics Micro-materials testing Aerospace assembly Biopharmaceuticals Orthobiologics Minimally invasive catheters Bottle labeling Pipe coating Flexible packaging 27

28 Recapitalization Drives Organic Growth Large installed base of Nordson products worldwide provides regular replacement and upgrade opportunities Packaging lines Nonwovens lines Powder coating lines Extrusion & injection molding lines Electronics assembly lines 28

29 Acquisitions Drive Growth High quality properties supplement organic growth : 4.4% average annual growth from acquisitions 35.0% Organic Volume Acquisitions Key Criteria 25.0% 15.0% pause during recession Strategic fit Strong performers Growth rate at/above Nordson 5.0% High % recurring revenue -5.0% -15.0% Reasonable multiples Revenue and cost synergies -25.0% Current Focus and Recent Transactions Polymer Processing Fluid Mgmt. (medical) Test & Inspection Cold Material Dispense Core Dispense Portfolio 29

30 Why invest in Nordson? Clear Strategy and Goals Strong Execution and Performance Leading Global Businesses Numerous Growth Opportunities Outstanding Culture and Values 30

31 Strong Culture and Values Rooted in the vision of our founders My hope for Nordson is that we continue to be a venturesome company, operating somewhere out on the leading edge we must encourage innovators and entrepreneurs. Eric Nord To be truly fit, we must exercise our giving muscles. Evan Nord 31

32 Giving Back - Part of Who We Are ~$53 million donated Foundation Grants Corporate Donations $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Employees also volunteer thousands of hours via Time n Talent program 32

33 Investment Summary Proven Model for Long Term Value Creation Clear Strategy and Goals Strong Execution and Performance Leading Global Businesses Numerous Growth Opportunities Outstanding Culture and Values Strong growth: organic and acquisitive Outstanding gross margins Excellent EBITDA margins High level of free cash flow Strong cash returns to shareholders Reliable and consistent dividend Outstanding long term Total Shareholder Returns 33

34 Financial Appendix

35 FOURTH QUARTER PERIOD Period Ending October 31, 2017 (Unaudited) CONSOLIDATED STATEMENT OF INCOME NORDSON CORPORATION FINANCIAL HIGHLIGHTS (Dollars in thousands except for per-share amounts) CONSOLIDATED BALANCE SHEET Fourth Quarter Year-to-Date October 31 October Net sales $ 573,938 $ 509,283 $ 2,066,982 $ 1,808,994 Cash and marketable securities $ 90,383 $ 67,239 Cost of sales 261, , , ,495 Receivables 505, ,560 Selling & administrative expenses 187, , , ,068 Inventories 264, ,361 Other current assets 28,636 29,415 Operating profit 124, , , ,431 Total current assets 888, ,575 Interest expense - net (11,436) (5,606) (35,477) (20,594) Property, plant & equipment - net 346, ,129 Other income (expense) - net (482) 106 (1,934) 657 Other assets 2,179,756 1,401,879 $ 3,414,539 $ 2,420,583 Income before income taxes 112, , , ,494 Income taxes 33,035 29, ,489 96,651 Notes payable and debt due within one year $ 326,587 $ 40,234 Accounts payable and accrued liabilities 321, ,309 Net Income $ 79,835 $ 75,867 $ 295,802 $ 271,843 Total current liabilities 647, ,543 Long-term debt 1,256, ,771 Other liabilities 354, ,666 Return on sales 14% 15% 14% 15% Total shareholders' equity 1,155, ,603 Return on average shareholders' equity 29% 36% 30% 37% $ 3,414,539 $ 2,420,583 Average common shares outstanding (000's) 57,643 57,206 57,533 57,060 Average common shares and common share equivalents (000's) 58,301 57,864 58,204 57,530 Per share: Other information: Basic earnings $ 1.38 $ 1.33 $ 5.14 $ 4.76 Diluted earnings $ 1.37 $ 1.31 $ 5.08 $ 4.73 Employees 7,532 6,127 Dividends paid $.30 $.27 $ 1.11 $.99 Common shares outstanding (000's) 57,715 57,307 Total dividends $ 17,291 $ 15,428 $ 63,840 $ 56,436 35

36 FOURTH QUARTER PERIOD Period Ending October 31, 2017 (Unaudited) NORDSON CORPORATION FINANCIAL HIGHLIGHTS (Dollars in thousands) Fourth Quarter % Growth over 2016 Year-to-Date % Growth over 2016 SALES BY BUSINESS SEGMENT Volume Currency Total Volume Currency Total Adhesive dispensing systems $ 247,873 $ 234, % 2.0% 5.8% $ 916,019 $ 879, % -0.2% 4.1% Advanced technology systems 251, , % 0.2% 29.4% 897, , % -0.7% 32.7% Industrial coating systems 74,349 80, % 0.5% -7.6% 253, , % -0.7% 0.1% Total sales by business segment $ 573,938 $ 509, % 1.1% 12.7% $ 2,066,982 $ 1,808, % -0.5% 14.3% Fourth Quarter Year-to-Date OPERATING PROFIT BY BUSINESS SEGMENT Adhesive dispensing systems $ 68,354 $ 55,383 $ 253,580 $ 229,143 Advanced technology systems 60,008 49, , ,531 Industrial coating systems 13,462 18,430 43,991 43,511 Corporate (17,036) (12,662) (67,931) (43,754) Total operating profit by business segment $ 124,788 $ 110,863 $ 457,702 $ 388,431 Fourth Quarter % Growth over 2016 Year-to-Date % Growth over 2016 SALES BY GEOGRAPHIC REGION Volume Currency Total Volume Currency Total United States $ 183,088 $ 147, % % $ 647,657 $ 531, % % Americas 39,055 33, % 1.7% 15.4% 147, , % -0.1% 17.9% Europe 149, , % 5.9% 15.2% 530, , % -0.2% 5.3% Japan 50,685 38, % -11.0% 31.7% 147, , % -3.9% 20.6% Asia Pacific 151, , % 1.0% -5.1% 594, , % -0.5% 12.7% Total Sales by Geographic Region $ 573,938 $ 509, % 1.1% 12.7% $ 2,066,982 $ 1,808, % -0.5% 14.3% Fourth Quarter Year-to-Date FREE CASH FLOW BEFORE DIVIDENDS Net income $ 79,835 $ 75,867 $ 295,802 $ 271,843 Depreciation and amortization 25,488 17,480 90,854 70,304 Other non-cash charges 23,644 7,100 26,685 20,313 Changes in operating assets and liabilities 4,515 35,977 (63,668) (31,302) Net cash provided by operating activities 133, , , ,158 Additions to property, plant and equipment (22,234) (15,399) (71,558) (60,851) Proceeds from the sale of property, plant and equipment ,007 1,300 Free cash flow before dividends $ 111,349 $ 121,281 $ 282,122 $ 271,607 Adjustments: Acquisition costs and adjustments, net of tax (1) ,695 1,486 Free cash flow before dividends, adjusted $ 111,349 $ 121,433 $ 294,817 $ 273, (1) Represents one-time costs, net of tax, associated with our 2017 and 2016 acquisitions, including the step up in the value of acquired inventory and acquisition transaction costs that are required to be expensed as incurred.

37 FOURTH QUARTER PERIOD Period Ending October 31, 2017 (Unaudited) NORDSON CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Dollars in thousands except for per-share amounts) EBITDA and EBITDA per diluted share Fourth Quarter Year-to-Date Net income $ 79,835 $ 75,867 $ 295,802 $ 271,843 Adjustments: Depreciation and amortization expense 25,488 17,480 90,854 70,304 Interest expense, net 11,436 5,606 35,477 20,594 Income taxes 33,035 29, ,489 96,651 EBITDA $ 149,794 $ 128,449 $ 546,622 $ 459,392 Adjustments: Acquisition costs and adjustments (1) ,898 2,099 EBITDA As Adjusted $ 149,794 $ 128,660 $ 564,520 $ 461,491 EBITDA per diluted share $ 2.57 $ 2.22 $ 9.39 $ 7.99 EBITDA As Adjusted per diluted share $ 2.57 $ 2.22 $ 9.70 $ 8.02 (1) Represents one-time costs associated with our 2017 and 2016 acquisitions, including the step up in the value of acquired inventory and acquisition transaction costs that are required to be expensed as incurred. EBITDA and EBITDA per diluted share are non-gaap financial measures used by management to evaluate the Company's ongoing operations. EBITDA is defined as earnings before interest, taxes, depreciation and amortization and EBITDA As Adjusted is defined as EBITDA plus certain acquisition costs and adjustments. EBITDA per diluted share is defined as EBITDA divided by the Company's diluted weighted average shares outstanding. EBITDA As Adjusted per diluted share is defined as EBITDA As Adjusted divided by the Company's diluted weighted average shares outstanding. Fourth Quarter Year-to-Date Diluted EPS as reported (U.S. GAAP) $ 1.37 $ 1.31 $ 5.08 $ 4.73 Short-term inventory purchase accounting adjustments Acquisition costs Severance and restructuring Litigation settlement (0.01) Discrete tax items (0.19) Other pre-tax items related to discrete tax benefits (0.01) Diluted EPS as adjusted (Non-GAAP) $ 1.38 $ 1.39 $ 5.37 $ Adjusted Diluted EPS is not a measurement of financial performance under GAAP, and should not be considered as an alternative to EPS determined in accordance with GAAP. Management believes that EPS as adjusted to exclude the items in the table above assist in understanding the results of Nordson Corporation. Our calculations of this non-gaap financial measure may not be comparable to the calculations of similarly titled measures reported by other companies.

38 Appendix: Currency Impact Annual Sales Growth and EPS 30% 20% Volume Growth Currency Effect EPS Currency Effect 10% 0% -10% -20% -30% $0.18 $0.29 ($0.23) $0.15 $0.16 ($0.11) ($0.09) ($0.06) ($0.54) ($0.19) ($0.03) 38 Numbers as reported and do not factor in stock splits