Brunswick Corporation (NYSE:BC) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET

Company Participants

Neha Clark – Senior Vice President-Enterprise Finance

Dave Foulkes – Chief Executive Officer

Ryan Gwillim – Chief Financial Officer

Conference Call Participants

Megan Alexander – Morgan Stanley

James Hardiman – Citi

Xian Siew – BNB Paribas

Craig Kennison – Baird

Jaime Katz – Morningstar

Joe Altobello – Raymond James

Scott Stember – ROTH MKM

Mike Swartz – Truist Securities

Matthew Boss – JPMorgan

Tristan Thomas-Martin – BMO Capital Markets

Operator

Good morning. Welcome to Brunswick Corporation's Third Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer period. Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

I would like to introduce Neha Clark, Senior Vice President Enterprise Finance Brunswick Corporation. You may begin.

Neha Clark

Good morning and thank you for joining us. With me on the call this morning are Dave Foulkes, Brunswick's CEO; and Ryan Gwillim, CFO.

Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For details on these factors to consider, please refer to our recent SEC filings and today's press release. All of these documents are available on our website at brunswick.com.

During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation sections of the unaudited consolidated financial statements accompanying today's results.

I will now turn the call over to Dave.

Dave Foulkes

Thanks, Neha, and good morning, everyone. Our businesses delivered a solid third quarter as continued market share gains, strengthen new products, efficient operations at our facilities, comprehensive cost control measures and the resilient composition of our portfolio drove strong earnings and free cash flow despite the ongoing challenging macroeconomic backdrop. We delivered $1.6 billion in net sales and slightly stronger-than-expected adjusted earnings per share of $2.42 in the quarter in the upper half of our guidance range. We also generated strong free cash flow of $143 million in the third quarter, resulting in free cash flow conversion of 84% and delivering year-to-date free cash flow $233 million higher than prior year.