In the 2017 10-K for Brunswick Corporation (BC), please review the financial statements and read Item 7 (page 23 – 40) and Disclosure Notes 1 – 4 (page 55 – 64). You’ll also need to review recent investor presentations and earnings releases. Then, consider the following…
Brunswick has a history of buying and selling brands in both its fitness and boating businesses. It also has a history of taking restructuring, exit, and impairment charges. Most recently, Brunswick announces plans to divest its Searay boat business. It is also taking an impairment charge on Cybex, which is a brand of cardio machines.
Cybex was a publicly traded company until late 2012 / early 2013 when it was acquired for roughly $22MM. For more information, research the company’s history and/or read this article: http://www.cnssecuritieslaw.com/2012/11/15/643.htm
Brunswick has owned SeaRay for longer. For the full history on Sea Ray, read this article:
http://www.boattest.com/view-news/5617_sea-ray-boat-company-for-sale
What price does Brunswick need to receive for Sea Ray in order to avoid a loss on sale?
Look at the cash flow statement for Brunswick. Should they continue to make acquisitions?
What questions would you ask the executive team at BC?
What does management want you to believe are BC’s normalized earnings?
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