Wolverine Worldwide reported financial results for both the fourth quarter and full year ended December 29, 2012.During the fourth quarter, the Company completed the $1.25 billion acquisition of the Performance+Lifestyle Group ("PLG") from Collective Brands, Inc., adding four world-class lifestyle brands — Sperry Top-Sider, Saucony, Stride Rite, and Keds — to the Company's impressive portfolio of brands.
Consolidated full-year revenue increased 16.4% to $1.641 billion, including a contribution of $219.4 million from the PLG brands in the stub period since the date of acquisition. Consolidated fourth fiscal quarter revenue was $652.2 million, growth of 60.5% versus the prior year.
Fourth fiscal quarter revenue for the legacy WWW business grew to a record $432.8 million, growth of 6.5% versus the prior year. Foreign exchange had minimal impact on the quarter's reported revenue.
Full-year revenue for the legacy WWW business grew to a record $1.421 billion, an increase of 0.9%. Foreign exchange negatively impacted full-year reported revenue for the legacy business by $10.6 million.
Full-year operating expenses for the legacy WWW business increased only 2.1%, as the Company demonstrated excellent operating discipline in a challenging global business environment. Reported operating expenses, including both PLG and recurring and non-recurring transaction and integration costs, increased 33.1%.
The effective tax rate for the full fiscal year was 14.2%, reflecting both non-recurring tax benefits realized in the first half of the year and acquisition-related expense deductions in high statutory tax rate jurisdictions in the second half of the year.
Excluding non-recurring transaction and integration expenses, full-year fully diluted earnings per share were $2.29, compared to the Company's prior guidance of $1.96 to $2.06 per share.
In the fourth quarter, excluding non-recurring transaction and integration expenses, earnings per share were $0.48 – comprised of $0.53 per share from the legacy WWW business and $0.05 of dilution from the PLG acquisition – compared to the Company's prior guidance of $0.12 to $0.22 per share.
These excellent results were due to better than forecasted operating performance from both the legacy and PLG businesses and lower than anticipated costs related to the acquisition. Reported earnings per share were $1.63 for the full fiscal year and ($0.08) in the fourth fiscal quarter.
The Company generated strong cash flow from operating activities in 2012 and ended the year with $171.4 million of cash and cash equivalents and net debt of $1.080 billion. The net debt reflects a voluntary prepayment of $25.0 million of principal during the fourth fiscal quarter.