2010 OUTLOOK: IMPROVING REVENUE AND REDUCED LOSSES, COMBINED WITH
CONTINUED STRONG LIQUIDITY LAKE FOREST, Ill., Jan. 28
/PRNewswire-FirstCall/ -- Brunswick Corporation (NYSE:BC) today
reported results for the fourth quarter of 2009: -- Total net sales
of $657.3 million were down 22 percent versus 2008. -- A net loss
of $124.0 million, or $1.40 per diluted share, which includes $0.78
per diluted share of impairment and restructuring charges, and
$1.20 per diluted share of benefits from special tax items. -- Cash
totaled $526.6 million, up from 2008 year-end balance of $317.5
million. -- Pipeline reduction and inventory management strategies
implemented throughout the year led to significantly lower dealer
inventory levels and company cash flow benefits, while having a
negative impact on revenue and earnings. "During the fourth quarter
we continued to successfully execute against our key strategic
objectives, which has allowed us not only to remain stable during
the worst marine market in decades, but also to position ourselves
to take advantage of market opportunities as they evolve," said
Brunswick's Chairman and Chief Executive Officer Dustan E. McCoy.
"We exited 2009 with $527 million in cash, a stronger dealer
network with low inventories, and a leaner company with a
significantly reduced cost structure. "The factors that negatively
affected our revenues and earnings in the fourth quarter of 2009,
compared to the previous year, included: lower overall unit sales
levels across the company; higher discounts to facilitate retail
boat sales, particularly of older boat models; and a reversal of
variable compensation and defined contribution retirement accruals
that benefited the fourth quarter of 2008. During the quarter, we
also experienced reduced fixed-cost absorption and higher pension
and interest expense, as well as higher impairment and
restructuring charges. Partially offsetting these factors were cost
savings generated from our successful and ongoing fixed-cost
reduction activities, and a special tax benefit recorded in the
fourth quarter of 2009," McCoy said. Fourth Quarter Results For the
fourth quarter of 2009, the company reported net sales of $657.3
million, down from $837.7 million a year earlier. For the quarter,
the company reported an operating loss of $188.2 million, which
included $68.6 million of impairment and restructuring charges. In
the fourth quarter of 2008, the company had an operating loss of
$38.4 million, which included an $81.2 million benefit from the
reversal of variable compensation and defined contribution
retirement accruals, affecting all of the company's segments, and
$48.9 million of impairment and restructuring charges. For the
fourth quarter of 2009, Brunswick reported a net loss of $124.0
million, or $1.40 per diluted share, as compared with a net loss of
$66.3 million, or $0.75 per diluted share, for the fourth quarter
of 2008. The diluted loss per share for the fourth quarter of 2009
included impairment and restructuring charges of $0.78 per diluted
share, and a $1.20 per diluted share benefit from special tax
items. Diluted loss per share for the fourth quarter of 2008
included $0.34 per diluted share of impairment and restructuring
charges, and $0.59 per diluted share of non-cash charges for
special tax items. 2009 Full-Year Results For the year ended Dec.
31, 2009, the company reported net sales of $2,776.1 million, down
from $4,708.7 million a year earlier, and an operating loss of
$570.5 million, which included $172.5 million of impairment and
restructuring charges. In 2008, the company had an operating loss
of $611.6 million, which included $688.4 million of impairment and
restructuring charges. For 2009, the company reported a net loss of
$586.2 million, or $6.63 per diluted share, as compared with a net
loss of $788.1 million, or $8.93 per diluted share, for 2008. The
diluted loss per share for 2009 included impairment and
restructuring charges of $1.95 per diluted share, and a $1.09 per
diluted share benefit from special tax items. Diluted loss per
share for 2008 included $5.68 per diluted share of impairment and
restructuring charges, $3.90 per diluted share of non-cash charges
for special tax items, and $0.11 per diluted share gain on
investment sales. Review of Cash Flow and Balance Sheet During the
quarter, the company completed open market purchases of
approximately $85 million of its outstanding 11.75 percent notes
due 2013. Combined with previous period purchases, the company
reduced the amount of its 2013 notes outstanding to approximately
$153 million, representing the only significant long-term debt
maturity from 2010 to 2015. Cash and cash equivalents were $527
million at the end of the fourth quarter, up $209 million from
year-end 2008 levels. The company's increased cash position
resulted primarily from a change in certain current assets and
current liabilities and net tax refunds, partially offset by net
losses experienced during the year. The change in certain current
assets and current liabilities was largely the result of reductions
of the company's inventory and accounts and notes receivable,
partially offset by lower accrued expenses and decreased accounts
payable. Net debt (defined as total debt, less cash and cash
equivalents) was $324 million, down $90 million from year-end 2008
levels. The company's total liquidity (defined as cash and cash
equivalents, plus amounts available under its asset-backed lending
facilities) totaled $615 million, up $96 million from year-end 2008
levels. Marine Engine Segment The Marine Engine segment, consisting
of the Mercury Marine Group, including the marine service, parts
and accessories businesses, reported net sales of $302.4 million in
the fourth quarter of 2009, down 11 percent from $340.2 million in
the year-ago fourth quarter. International sales, which represented
51 percent of total segment sales in the quarter, declined by 3
percent. For the quarter, the Marine Engine segment reported an
operating loss of $59.4 million, including restructuring charges of
$8.2 million. This compares with an operating loss of $12.9 million
in the year-ago quarter, which benefited from a $0.8 million gain
related to restructuring activities. Sales were lower across all
Marine Engine operations, with sterndrive engines experiencing a
greater sales decline than outboard engines. Sales from the
segment's domestic marine service, parts and accessories
businesses, which represented 22 percent of total segment sales in
the quarter, were down mid-single digits, as boat usage and the
purchase of parts and accessories remained relatively stable.
Mercury's manufacturing facilities began to ramp up production
during the quarter in response to customer inventory requirements.
Lower sales, higher pension expense and restructuring charges as
well as a reversal of variable compensation and defined
contribution retirement accruals that benefited the fourth quarter
of 2008 had an adverse effect on operating earnings comparisons,
which were partially offset by Mercury Marine's expense reductions.
Boat Segment The Boat segment is comprised of the Brunswick Boat
Group and includes 17 boat brands. The Boat segment reported net
sales of $153.4 million for the fourth quarter of 2009, down 38
percent compared with $248.0 million in the fourth quarter of 2008.
International sales, which represented 40 percent of total segment
sales in the quarter, decreased by 51 percent during the period.
For the fourth quarter of 2009, the Boat segment reported an
operating loss of $131.6 million, including impairment and
restructuring charges of $58.3 million. This compares with an
operating loss of $59.4 million, including impairment and
restructuring charges of $39.4 million, in the fourth quarter of
2008. Boat manufacturing facilities also began to ramp up
production during the quarter to address inventory requirements of
their dealers, although production levels remained below the prior
year quarter. Lower sales, reduced fixed-cost absorption on lower
production volumes, higher discounts to support retail sales by
dealers, higher impairment and restructuring charges, as well as a
reversal of variable compensation and defined contribution
retirement accruals that benefited the fourth quarter of 2008, had
an adverse effect on operating earnings comparisons, which were
partially offset by the Boat Group's expense reductions. Fitness
Segment The Fitness segment is comprised of the Life Fitness
Division, which manufactures and sells Life Fitness and Hammer
Strength fitness equipment. Fitness segment sales in the fourth
quarter of 2009 totaled $146.4 million, down 15 percent from $171.8
million in the year-ago quarter. International sales, which
represented 52 percent of total segment sales in the quarter,
declined by 10 percent. For the quarter, the Fitness segment
reported operating earnings of $20.5 million, including $0.5
million of restructuring charges. This compares with operating
earnings of $25.6 million, including restructuring charges of $1.2
million, in the fourth quarter of 2008. Commercial equipment sales,
which account for the largest percentage of Fitness segment sales,
declined in the quarter as gym and fitness club operators remained
cautious about ordering equipment. Sales of consumer exercise
equipment were also down during the quarter. Lower operating
earnings in the fourth quarter of 2009, when compared with 2008,
reflect the unfavorable effect of lower sales and a reversal of
variable compensation and defined contribution retirement accruals
that benefited the fourth quarter of 2008, partially offset by
actions taken by Life Fitness to reduce expenses, including
improvements in material costs. Bowling & Billiards Segment The
Bowling & Billiards segment is comprised of Brunswick retail
bowling centers; bowling equipment and products; and billiards
tables and accessories. Segment sales in the fourth quarter of 2009
totaled $82.2 million, down 27 percent compared with $113.2 million
in the year-ago quarter. For the quarter, the segment reported
operating earnings of $2.2 million, including restructuring charges
of $0.5 million. This compares with operating earnings of $16.6
million, including impairment and restructuring charges of $3.8
million in the fourth quarter of 2008. For the quarter, retail
bowling equivalent-center sales declined by a mid-single-digit
percentage. The bowling products and the billiards businesses
experienced greater sales declines, as bowling center operators and
retail billiards customers remained cautious about purchases. Lower
operating earnings in the fourth quarter of 2009, when compared
with 2008, reflect the unfavorable effect of the reduced sales,
higher pension expenses and a reversal of variable compensation and
defined contribution retirement accruals that benefited the fourth
quarter of 2008, partially offset by Bowling & Billiards' cost
reduction activities. Outlook See Brunswick's Web Site for
Supplemental Chart:
http://www.brunswick.com/investors/investorinformation/events.php
"We remain committed to the strategic focus that has ensured our
financial health and uniquely positioned us compared to most of our
competitors in the marine, fitness and bowling and billiards
segments," McCoy said. "We will continue to focus on maintaining
strong liquidity at our current net debt levels, taking all
reasonable actions to strengthen our dealer network, and doing the
work necessary to come out of this downturn stronger than when we
began the period. "Although our plans reflect a modest reduction in
retail marine demand, our boat facilities will gradually increase
wholesale shipments throughout the year because dealer inventories
are at historically low levels. The increase in wholesale boat
shipments will require us to raise production rates throughout the
year. Additionally, although over-supply conditions still exist in
the overall marine market, we believe that based on our 2009
achievements in lowering our dealer pipeline, the amount of
discounts will be lower in 2010 as compared to 2009. "The factors
affecting our Boat segment should also lead to revenue growth in
our engine business, but the anticipated sales improvement will be
less due to the mix of businesses within the Marine Engine segment.
Specifically, Mercury's parts and accessories business and its
international operations, which together currently account for
roughly 72 percent of the segment's revenues, are expected to grow
at substantially lower rates than Brunswick's Boat segment. "As a
result of the favorable fundamentals affecting our marine segments,
our plan reflects improved revenue and significantly reduced
operating losses in 2010. Additionally, our plan reflects that our
Fitness and Bowling & Billiards segments will experience modest
growth in both revenue and operating earnings. Contributing to the
decline in operating losses for the company are lower impairment
and restructuring costs and pension expense. Partially offsetting
the improvement in operating losses will be slightly higher
interest expense during 2010. "Our extraordinary performance
against our strategic goals in this recession has positioned
Brunswick to transition from a focus on liquidity, to a focus on
continuous improvement in financial results and strength relative
to the competition in all of our business segments. "So while the
economy and markets in which our businesses operate may remain
challenging for the foreseeable future, this transition requires
that in 2010 and beyond, as the world's economies improve, we
remain disciplined to: generate positive cash flow, perform better
than the market in each of our business segments, and grow earnings
faster than we grow sales," McCoy concluded. Conference Call
Scheduled Brunswick will host a conference call today at 10 a.m.
CST, hosted by Dustan E. McCoy, chairman and chief executive
officer, Peter B. Hamilton, senior vice president and chief
financial officer, and Bruce J. Byots, vice president - corporate
and investor relations. The call will be broadcast over the
Internet at http://www.brunswick.com/. To listen to the call, go to
the Web site at least 15 minutes before the call to register,
download and install any needed audio software. Security analysts
and investors wishing to participate via telephone should call
(866) 831-6224 (passcode: Brunswick Q4). Callers outside North
America should call (617) 213-8853 (passcode: Brunswick Q4) to be
connected. These numbers can be accessed 15 minutes before the call
begins, as well as during the call. A replay of the conference call
will be available through midnight CST Thursday, Feb. 4, 2010, by
calling (888) 286-8010 or (617) 801-6888 (passcode: 87644274). The
replay will also be available at http://www.brunswick.com/.
Forward-Looking Statements Certain statements in this news release
are forward-looking as defined in the Private Securities Litigation
Reform Act of 1995. Such statements are based on current
expectations, estimates and projections about Brunswick's business.
These statements are not guarantees of future performance and
involve certain risks and uncertainties that may cause actual
results to differ materially from expectations as of the date of
this news release. These risks include, but are not limited to: the
effect of the amount of disposable income available to consumers
for discretionary purchases, and the level of consumer confidence
on the demand for marine, fitness, billiards and bowling equipment,
products and services; the ability to successfully complete
restructuring efforts in the timeframe and cost anticipated; the
ability to successfully complete the disposition of non-core
assets; the effect of higher product prices due to technology
changes and added product features and components on consumer
demand; the effect of competition from other leisure pursuits on
the level of participation in boating, fitness, bowling and
billiards activities; the effect of interest rates and fuel prices
on demand for marine products; the ability to successfully manage
pipeline inventories; the financial strength of dealers,
distributors and independent boat builders; the ability to maintain
mutually beneficial relationships with dealers, distributors and
independent boat builders; the ability to maintain effective
distribution and to develop alternative distribution channels
without disrupting incumbent distribution partners; the ability to
maintain market share, particularly in high-margin products; the
success of new product introductions; the ability to maintain
product quality and service standards expected by customers;
competitive pricing pressures; the ability to develop
cost-effective product technologies that comply with regulatory
requirements; the ability to transition and ramp up certain
manufacturing operations within time and budgets allowed; the
ability to successfully develop and distribute products
differentiated for the global marketplace; shifts in currency
exchange rates; adverse foreign economic conditions; the success of
global sourcing and supply chain initiatives; the ability to obtain
components and raw materials from suppliers; increased competition
from Asian competitors; competition from new technologies; the
ability to complete environmental remediation efforts and resolve
claims and litigation at the cost estimated; and the effect of
weather conditions on demand for marine products and retail bowling
center revenues. Additional factors are included in the company's
Annual Report on Form 10-K for 2008 and Quarterly Report on Form
10-Q for the quarter ended Oct. 3, 2009. Such forward-looking
statements speak only as of the date on which they are made and
Brunswick does not undertake any obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this news release, or for changes made to this document
by wire services or Internet service providers. About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors
to instill "Genuine Ingenuity"(TM) in all its leading consumer
brands, including Mercury and Mariner outboard engines; Mercury
MerCruiser sterndrives and inboard engines; MotorGuide trolling
motors; Attwood marine parts and accessories; Land 'N' Sea, Kellogg
Marine, Diversified Marine and Benrock parts and accessories
distributors; Arvor, Bayliner, Bermuda, Boston Whaler, Cabo Yachts,
Crestliner, Cypress Cay, Harris, Hatteras, Lowe, Lund, Meridian,
Ornvik, Princecraft, Quicksilver, Rayglass, Sea Ray, Sealine,
Triton, Trophy, Uttern and Valiant boats; Life Fitness and Hammer
Strength fitness equipment; Brunswick bowling centers, equipment
and consumer products; Brunswick billiards tables. For more
information, visit http://www.brunswick.com/. Brunswick Corporation
Comparative Consolidated Statements of Operations (in millions,
except per share data) (unaudited) Three Months Ended
------------------ Dec. 31, Dec. 31, 2009 2008 % Change ---- ----
-------- Net sales $657.3 $837.7 -22% Cost of sales 582.5 719.8
-19% Selling, general and administrative expense 170.6 82.3 NM
Research and development expense 23.8 25.1 -5% Restructuring, exit
and impairment charges 68.6 48.9 40% ---- ---- Operating loss
(188.2) (38.4) NM Equity loss (4.6) (3.6) -28% Other expense, net
(1.2) (4.2) 71% ---- ---- Loss before interest, loss on early
extinguishment of debt and income taxes (194.0) (46.2) NM Interest
expense (25.9) (18.6) -39% Interest income 1.0 1.3 -23% Loss on
early extinguishment of debt (13.1) - NM ----- ------ Loss before
income taxes (232.0) (63.5) NM Income tax provision (benefit)
(108.0) 2.8 ------ --- Net loss $(124.0) $(66.3) -87% =======
====== Loss per common share: Basic $(1.40) $(0.75) Diluted $(1.40)
$(0.75) Weighted average shares used for computation of: Basic loss
per common share 88.5 88.3 Diluted loss per common share 88.5 88.3
Effective tax rate 46.6% -4.4% Supplemental Information
------------------------ Diluted net loss $(1.40) $(0.75)
Restructuring, exit and impairment charges (1) 0.78 0.34 Special
tax items (1.20) 0.59 ----- ---- Diluted net loss, as adjusted
$(1.82) $0.18 ====== ===== (1) The 2009 Restructuring, exit and
impairment charges assume no tax benefit, while the 2008
Restructuring, exit and impairment charges include a tax benefit.
Brunswick Corporation Comparative Consolidated Statements of
Operations (in millions, except per share data) Twelve Months Ended
------------------- Dec. 31, Dec. 31, 2009 2008 % Change ---- ----
-------- (unaudited) Net sales $2,776.1 $4,708.7 -41% Cost of sales
2,460.5 3,841.3 -36% Selling, general and administrative expense
625.1 668.4 -6% Research and development expense 88.5 122.2 -28%
Goodwill impairment charges - 377.2 NM Trade name impairment
charges - 133.9 NM Restructuring, exit and impairment charges 172.5
177.3 -3% ----- ----- Operating loss (570.5) (611.6) 7% Equity
earnings (loss) (15.7) 6.5 NM Investment sale gains - 23.0 NM Other
expense, net (2.5) (2.6) 4% ---- ---- Loss before interest, loss on
early extinguishment of debt and income taxes (588.7) (584.7) -1%
Interest expense (86.1) (54.2) -59% Interest income 3.2 6.7 -52%
Loss on early extinguishment of debt (13.1) - NM ----- ------ Loss
before income taxes (684.7) (632.2) -8% Income tax provision
(benefit) (98.5) 155.9 ----- ----- Net loss $(586.2) $(788.1) 26%
======= ======= Loss per common share: Basic $(6.63) $(8.93)
Diluted $(6.63) $(8.93) Weighted average shares used for
computation of: Basic loss per common share 88.4 88.3 Diluted loss
per common share 88.4 88.3 Effective tax rate 14.4% -24.7%
Supplemental Information ------------------------ Diluted net loss
$(6.63) $(8.93) Restructuring, exit and impairment charges (1) 1.95
1.25 Goodwill Impairment - 3.40 Trade Name Impairment - 1.03
Investment sale gain, net of tax - (0.11) Special tax items (1.09)
3.90 ----- ---- Diluted net earnings (loss), as adjusted $(5.77)
$0.54 ====== ===== (1) The 2009 Restructuring, exit and impairment
charges assume no tax benefit, while the 2008 Restructuring, exit
and impairment charges include a tax benefit. Brunswick Corporation
Selected Financial Information (in millions) (unaudited) Segment
Information (1) Three Months Ended ------------------ Net Sales
Operating Earnings (Loss) (2) -------------------------
------------------------- Dec. 31, Dec. 31, % Dec. 31, Dec. 31, %
2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------
Marine Engine $302.4 $340.2 -11% $(59.4) $(12.9) NM Boat 153.4
248.0 -38% (131.6) (59.4) NM Marine eliminations (27.1) (35.4) - -
----- ----- --- --- Total Marine 428.7 552.8 -22% (191.0) (72.3) NM
Fitness 146.4 171.8 -15% 20.5 25.6 -20% Bowling & Billiards
82.2 113.2 -27% 2.2 16.6 -87% Eliminations - (0.1) - - Corp/Other -
- (19.9) (8.3) NM --- --- ----- ---- Total $657.3 $837.7 -22%
$(188.2) $(38.4) NM ====== ====== ======= ====== Operating Margin
---------------- Dec. 31, Dec. 31, 2009 2008 ---- ---- Marine
Engine -19.6% -3.8% Boat -85.8% -24.0% Marine eliminations Total
Marine -44.6% -13.1% Fitness 14.0% 14.9% Bowling & Billiards
2.7% 14.7% Eliminations Corp/Other Total -28.6% -4.6% Twelve Months
Ended ------------------- Net Sales Operating Earnings (Loss) (3)
-------------------------- ---------------------------- Dec. 31,
Dec. 31, % Dec. 31, Dec. 31, % 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------ Marine Engine $1,425.0 $2,207.6
-35% $(131.2) $69.9 NM Boat 615.7 1,719.5 -64% (398.5) (655.3) 39%
Marine eliminations (98.3) (306.0) - - ----- ------ ------ ------
Total Marine 1,942.4 3,621.1 -46% (529.7) (585.4) 10% Fitness 496.8
639.5 -22% 33.5 52.2 -36% Bowling & Billiards 337.0 448.3 -25%
3.1 (12.7) NM Eliminations (0.1) (0.2) - - Corp/Other - - (77.4)
(65.7) -18% --- --- ----- ----- Total $2,776.1 $4,708.7 -41%
$(570.5) $(611.6) 7% ======== ======== ======= ======= Operating
Margin ---------------- Dec. 31, Dec. 31, 2009 2008 ---- ----
Marine Engine -9.2% 3.2% Boat -64.7% -38.1% Marine eliminations
Total Marine -27.3% -16.2% Fitness 6.7% 8.2% Bowling &
Billiards 0.9% -2.8% Eliminations Corp/Other Total -20.6% -13.0%
(1) During the first quarter of 2009, the company realigned the
management of its marine service, parts and accessories businesses.
The Boat segment's parts and accessories businesses of Attwood,
Land 'N' Sea, Benrock, Kellogg Marine and Diversified Marine
Products are now being managed by the Marine Engine segment's
service and parts business leaders. As a result, the parts and
accessories businesses operating results previously reported in the
Boat segment are now being reported in the Marine Engine segment.
Segment results have been restated for all periods presented to
reflect the change in Brunswick's reported segments. (2) Operating
earnings (loss) in the fourth quarter of 2009 includes $68.6
million of pretax restructuring, exit and impairment charges. The
$68.6 million charge consists of $8.2 million in the Marine Engine
segment, $58.3 million in the Boat segment, $0.5 million in the
Fitness segment, $0.5 million in the Bowling & Billiards
segment and $1.1 million in Corp/Other. Operating earnings (loss)
in the fourth quarter of 2008 includes $48.9 million of pretax
restructuring, exit and impairment charges. The $48.9 million
charge consists of $(0.8) million in the Marine Engine segment,
$39.4 million in the Boat segment, $1.2 million in the Fitness
segment, $3.8 million in the Bowling & Billiards segment and
$5.3 million in Corp/Other. (3) Operating earnings (loss) in 2009
includes $172.5 million of pretax restructuring, exit and
impairment charges. The $172.5 million consists of $48.3 million in
the Marine Engine segment, $107.8 million in the Boat segment, $2.1
million in the Fitness segment, $5.3 million in the Bowling &
Billiards segment and $9.0 million in Corp/Other. Operating
earnings (loss) in 2008 includes $688.4 million of restructuring,
exit and impairment charges. The $688.4 million consists of $36.9
million in the Marine Engine segment, $582.4 million in the Boat
segment, $3.3 million in the Fitness segment, $44.6 million in the
Bowling & Billiards segment and $21.2 million in Corp/Other.
Brunswick Corporation Comparative Condensed Consolidated Balance
Sheets (in millions) December 31, December 31, 2009 2008 ---- ----
(unaudited) Assets Current assets Cash and cash equivalents $526.6
$317.5 Accounts and notes receivables, net 332.4 444.8 Inventories
Finished goods 234.4 457.7 Work-in-process 174.3 248.2 Raw
materials 76.2 105.8 ---- ----- Net inventories 484.9 811.7
Deferred income taxes 79.3 103.2 Prepaid expenses and other 35.5
59.7 ---- ---- Current assets 1,458.7 1,736.9 ------- ------- Net
property 724.3 917.6 ----- ----- Other assets Goodwill, net 292.5
290.9 Other intangibles, net 75.6 86.6 Investments 56.7 75.4 Other
long-term assets 101.6 116.5 ----- ----- Other assets 526.4 569.4
----- ----- Total assets $2,709.4 $3,223.9 ======== ========
Liabilities and shareholders' equity Current liabilities Short-term
debt $11.5 $3.2 Accounts payable 261.2 301.3 Accrued expenses 633.9
696.7 ----- ----- Current liabilities 906.6 1,001.2 Long-term debt
839.4 728.5 Other long-term liabilities 753.1 764.3 Shareholders'
equity 210.3 729.8 ----- ----- Total liabilities and shareholders'
equity $2,709.4 $3,223.8 ======== ======== Supplemental Information
------------------------ Debt-to-capitalization rate 80.2% 50.1%
Brunswick Corporation Comparative Condensed Consolidated Statements
of Cash Flows (in millions) (unaudited) Twelve Months Ended
------------------- December 31, December 31, 2009 2008 ---- ----
Cash flows from operating activities Net loss $(586.2) $(788.1)
Depreciation and amortization 157.3 177.2 Pension expense, net of
funding 74.6 11.3 Provision for doubtful accounts 49.7 32.3
Deferred income taxes (96.0) 236.2 Goodwill, trade name, and other
long-lived asset impairment charges 63.0 564.3 Equity in earnings
of unconsolidated affiliates, net of dividends 16.0 1.3 Loss on
early extinguishment of debt 13.1 - Changes in certain current
assets and current liabilities 400.8 (132.3) Income taxes 88.0
(72.5) Repurchase of accounts receivable (84.2) - Other, net 29.4
(41.8) ---- ----- Net cash provided by (used for) operating
activities 125.5 (12.1) ----- ----- Cash flows from investing
activities Capital expenditures (33.3) (102.0) Investments 6.2 20.0
Proceeds from investment sales - 45.5 Proceeds from sale of
property, plant and equipment 13.0 28.3 Other, net 1.8 17.2 ---
---- Net cash provided by (used for) investing activities (12.3)
9.0 ----- --- Cash flows from financing activities Net proceeds
(issuances) of short- term debt 7.7 (7.4) Proceeds from asset-based
lending facility 81.1 - Payments of asset-based lending facility
(81.1) - Net proceeds from issuance of long-term debt 353.7 252.0
Payments of long-term debt including current maturities (247.9)
(251.0) Payments of tender premium on debt (13.2) - Cash dividends
paid (4.4) (4.4) ---- ---- Net cash provided by (used for)
financing activities 95.9 (10.8) ---- ----- Net increase (decrease)
in cash and cash equivalents 209.1 (13.9) Cash and cash equivalents
at beginning of period 317.5 331.4 ----- ----- Cash and cash
equivalents at end of period $526.6 $317.5 ====== ====== Free Cash
Flow Net cash provided by (used for) operating activities $125.5
$(12.1) Net cash provided by (used for): Capital expenditures
(33.3) (102.0) Proceeds from investment sales - 45.5 Proceeds from
sale of property, plant and equipment 13.0 28.3 Other, net 1.8 17.2
--- ---- Total free cash flow $107.0 $(23.1) ====== ======
DATASOURCE: Brunswick Corporation CONTACT: Bruce Byots, Vice
President - Corporate and Investor Relations, +1-847-735-4612, or
Daniel Kubera, Director - Media Relations and Corporate
Communications, +1-847-735-4617, , both of Brunswick Corporation
Web Site: http://www.brunswick.com/
Copyright