Diluted EPS of $0.79 and Adjusted Diluted
EPS of $0.81 from continuing operations on record first quarter
sales
First Quarter Highlights
- Announced the sale of OEM Supply -
Fasteners segment for $380 million
- Record 1st quarter sales of $1.39
billion, up 9%, reflecting 2% organic growth
- Record ECS security sales of $376
million, up 73%, reflecting 7% organic growth
Anixter International Inc. (NYSE: AXE) today reported record
first quarter sales of $1.39 billion for the quarter ended April 3,
2015, an 8.7 percent increase compared to the year-ago quarter. The
current quarter and year-ago quarter each had 65 billing days. The
favorable impact from the Tri-Ed acquisition was partially offset
by macroeconomic headwinds including the sharply stronger US dollar
and weaker average copper prices. As a result, organic sales
increased by 2.2 percent year-over-year.
On February 12, 2015, we announced that we entered into a
definitive agreement to sell the OEM Supply - Fasteners
("Fasteners") segment to American Industrial Partners for $380
million, with an expected closing in the second quarter of 2015.
All commentary in this release reflects continuing operations
unless otherwise noted. Please refer to the tables at the end of
this release for the reconciliations to GAAP from the adjusted
numbers as reported.
EBITDA of $65.5 million, or 4.7 percent of sales, compares to
$66.7 million, or 5.2 percent of sales, in the prior year quarter.
The decline in margin was caused by the mix impact from strong
growth in our security business, unfavorable impacts of foreign
exchange and lower average copper prices, and competitive pricing
pressure in the market.
Net income from continuing operations of $26.5 million compares
to $37.7 million in the prior year quarter. The currency, copper
and pricing impacts mentioned above account for nearly half of the
decline, and higher depreciation, interest and amortization
resulting from the Tri-Ed acquisition accounting for the remainder
of the decrease. This results in an adjusted diluted earnings per
share from continuing operations of $0.81 compared to $1.14 in the
prior year quarter.
"While we delivered strong growth in sales and profits in our
security business, overall the quarter was challenging. Enterprise
Cabling & Security Solutions ("ECS"), our largest segment,
delivered its third consecutive quarter of strong revenue
performance; however, operating performance was negatively impacted
by competitive margin pressure. While margin was solid in our
Electrical and Electronic Wire & Cable ("W&C") segment, our
sales growth was negatively affected by copper and slower
industrial growth, especially related to the oil and gas sector in
Canada. From a geographic perspective, we delivered our strongest
organic growth in the US; however, North America was significantly
impacted by the weaker Canadian macro environment," commented Bob
Eck, President and CEO. "Importantly, we made significant strategic
progress in the quarter as we began to sharpen our focus on our
cabling and security businesses and improve the return on capital.
As part of this effort, the announced sale of our Fasteners segment
enables us to better direct resources toward areas that will
maximize shareholder value in both the near term and the long
term."
Income Statement Detail
Gross margin of 22.3 percent in the current quarter improved 20
basis points sequentially, reflecting improved margin in our
W&C segment, and compares to 22.9 percent in the prior year
quarter. The acquisition of Tri-Ed accounts for 30 basis points of
the year-over-year margin decrease. The remaining year-over-year
margin decrease was caused by lower margins in ECS reflecting
faster growth in legacy security sales, in addition to currency
headwinds and competitive pressures.
Operating expense of $250.0 million compares to $241.1 million
in the fourth quarter of 2014, which included $1.5 million in
acquisition and integration costs. On an adjusted basis, sequential
operating expense increased by 4.3 percent. On a year-over-year
basis, operating expense compares to $221.8 million in the prior
year quarter. Excluding $23.6 million of expense for the impact of
Tri-Ed and favorable foreign currency of $8.2 million, adjusted
operating expense would have increased by 5.2 percent. Current
quarter operating expense includes the incremental impacts of
approximately $3.3 million from the previously disclosed higher
pension and other employee benefit costs, $0.8 million of bad debt
expense and approximately $1.0 million of severance costs. Further
adjusting for these items, operating expense would have increased
3.1 percent.
Adjusted EBITDA margin in the current quarter of 5.3 percent
compares to 6.2 percent in the year-ago quarter. The operating
expense items identified above negatively impacted adjusted EBITDA
margin in the current quarter by 30 basis points. The remaining
change in adjusted EBITDA margin versus prior year reflects lower
W&C sales combined with lower average copper prices, lower ECS
gross margin, and foreign currency headwinds, partially offset by
strong operating expense management.
Interest expense of $14.2 million increased by $4.1 million
compared to the prior year quarter. The increase in interest
expense results from the Senior notes due 2021 issued in September
2014 to fund the Tri-Ed acquisition and incremental interest
expense from a new bank term loan, partially offset by the
retirement of the notes that matured in the first quarter of 2014,
notes that matured in the first quarter of 2015, and lower balances
for the accounts receivable securitization facility and revolving
lines of credit.
Foreign exchange and other expense of $4.0 million compares to
$9.7 million in the year ago period, primarily due to the large
currency devaluation in Venezuela and Argentina in the prior year
quarter.
Our effective tax rate of 35.6 percent increased from the prior
year adjusted effective rate of 34.6 percent, primarily due to a
change in the country mix of earnings, in part due to the
acquisition of Tri-Ed.
Segment Update
Enterprise Cabling and Security Solutions (“ECS”) sales
of $915.8 million compares to $776.8 million in the prior year
period, a 17.9 percent increase, driven by an increase in security
sales, both from Tri-Ed and our legacy business. Adjusting for the
$27.9 million unfavorable impact from foreign exchange on current
year sales and the $141.8 favorable impact from the Tri-Ed
acquisition, ECS organic sales increased by 2.7 percent.
Geographically, organic sales increased by 3.0 percent in North
America and 12.5 percent in EMEA, partially offset by a 5.5 percent
decrease in Emerging Markets.
Record quarter ECS security sales of $375.9 million, which
represents approximately 40 percent of total segment sales,
increased from $217.9 million in the prior year quarter. Excluding
the favorable impact of Tri-Ed sales and the $6.6 million negative
currency impact, organic security sales growth was 6.5 percent. The
strength we experienced in the second half of 2014 continued,
reflecting the success of actions we took mid year 2014 to
significantly strengthen our legacy security business.
ECS operating income of $36.3 million decreased by 3.1 percent
versus $37.6 million. Currency had a $1.3 million unfavorable
impact on the current quarter. Operating margin of 4.0 percent
compares to 4.8 percent in the year-ago quarter. The acquisition of
Tri-Ed accounts for 20 basis points of the decline, with currency
headwinds, product mix and competitive pricing pressures causing
the remainder of the weakness.
ECS adjusted EBITDA of $45.5 million compares to $42.5 million
in the prior year quarter. The corresponding margin of 5.0 percent
compares to 5.5 percent in the prior year quarter.
Electrical and Electronic Wire & Cable (“W&C”)
sales of $469.3 million compares to $497.5 million in the prior
year period. Excluding the $18.6 million unfavorable impact from
foreign exchange and the $15.8 million unfavorable impact from
lower average copper prices, W&C organic sales increased by 1.2
percent.
Geographically, organic sales growth of 3.6 percent in North
America reflected strong sales growth in the US, partially offset
by slowing trends in Western Canada. Weakness in the oil and gas
sector continued to impact sales and operating profit. Sales
decreased by 3.7 percent in EMEA and 5.4 percent in Emerging
Markets, both versus prior year on an organic basis.
W&C operating income of $26.2 million compares to operating
income of $35.3 million in the year-ago quarter. Operating margin
of 5.6 percent compares to 6.3 percent in the prior quarter. The
decline in operating margin versus the prior quarter was caused by
the unfavorable impacts of lower copper prices and currency
headwinds combined with the overall weaker macro environment, all
creating significant negative operating expense leverage.
W&C adjusted EBITDA of $30.5 million compares to $39.8
million in the prior year quarter. The corresponding adjusted
EBITDA margin of 6.5 percent compares to 8.0 percent in the prior
year quarter.
Discontinued Operations
As a result of the previously announced sale of Anixter's
Fasteners segment, this segment has been reclassified as an "Asset
Held for Sale" and has been reported as Discontinued Operations
beginning in the current quarter, and 2014 results have been
restated to reflect this classification. The segment delivered
sales of $249.4 million and operating income of $11.9 million in
the current quarter. Also included in Discontinued Operations are
$2.2 million of costs associated with the transaction.
Cash Flow and Leverage
Net cash provided from operations was $18.0 million for the
current quarter, which compares to $8.0 million in the prior year
quarter. The increase in cash generation reflects lower working
capital investment in the business. Capital expenditures of $10.9
million in the current quarter compares to $9.0 million in the
prior year quarter. For the full year we expect to invest
approximately $50 million in capital investments while generating
over $150 million in cash flow from operations.
“While we experienced strong growth in certain of our markets,
overall the macro environment drove larger-than-expected currency,
copper and pricing effects. Consequently, we are focusing on
additional opportunities to drive cost reduction that we believe
will improve our long term cost structure and profitability,"
commented Ted Dosch, Executive Vice President - Finance and CFO.
"We are pleased with the successful integration of Tri-Ed, which
delivered expected synergies to the combined security businesses in
the first quarter. Finally, with the cash flow we expect to
generate from operations and proceeds from the sale of our
Fasteners business, our goal is to return to our target
debt-to-capital range of 45 - 50 percent during 2015, excluding any
further M&A activity."
Key capital structure and credit-related statistics for the
quarter:
- Debt-to-total capital ratio of 51.9%
compares to 51.6% at the end of 2014
- Weighted average cost of borrowed
capital of 4.6% compares to 4.8% in the year-ago quarter
- $291 million available under revolving
lines of credit and accounts receivable securitization facility at
quarter end
Business Outlook
“Overall, our first quarter 2015 organic sales growth of 2.2
percent was at the low end of the outlook we provided at the
beginning of the year. Looking ahead, we expect the positive trends
in our security business to continue, and are cautiously optimistic
that improved market conditions in our network infrastructure
business that began in late 2014 will persist. While our Wire &
Cable business delivered sales that were below our expectations, we
are pleased with the margin stabilization in the business."
commented Bob Eck. "We believe that the balance of the year will
bring with it more uncertainty in both the macro economic
environment and within our industry so we have expanded the range
for our sales growth outlook and now believe that full year organic
sales growth from continuing operations will be in the 0 - 4
percent range."
Financial Results
(In millions, except per share amounts)
Three Months Ended Apr 3, Apr 4,
Percent 2015 2014 Change Net
Sales $ 1,385.1 $ 1,274.3 9 % Operating Income $ 59.3 $ 70.0 (15 )%
EBITDA $ 65.5 $ 66.7 (2 )% Net Income $ 26.5 $ 37.7 (30 )% Diluted
Earnings Per Share $ 0.79 $ 1.13 (30 )% Diluted Weighted Shares
33.4 33.3 1 %
First Quarter Earnings Call
Details
We will host a conference call to discuss these results
beginning at 9:30 a.m. Central Time today. The call will be
available as a live audio webcast and can be accessed at the
Investor Relations portion of our website at anixter.com/investor. Dial-in numbers for the call
are as follows:
U.S./Canada toll-free dial-in: (888) 437-9445
International dial-in: (719) 325-2281 Passcode: 655 0853
A replay of the call will be available at anixter.com/investor
for 15 days following the call. Prior to the beginning of the call
a supplemental presentation titled “First Quarter 2015 Highlights
and Operating Review” will be available on the company’s Investor
Relations section of the website.
About Anixter
Anixter International is a leading global distributor of
enterprise cabling and security solutions, electrical and
electronic wire and cable, and OEM supply fasteners and other small
parts. The company adds value to the distribution process by
providing its customers access to 1) innovative inventory
management programs 2) approximately 500,000 products and $1.0
billion in inventory 3) approximately 270 warehouses/branch
locations with 7.5 million square feet of space and 4) locations in
300 cities in more than 50 countries. Founded in 1957 and
headquartered near Chicago, Anixter trades on the New York Stock
Exchange under the symbol AXE.
Safe Harbor Statement
The statements in this release other than historical facts are
forward-looking statements made in reliance upon the safe harbor of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to a number of factors that
could cause our actual results to differ materially from what is
indicated here. These factors include but are not limited to
general economic conditions, the level of customer demand
particularly for capital projects in the markets we serve, changes
in supplier sales strategies or financial viability, risks
associated with the sale of nonconforming products and services,
political, economic or currency risks related to foreign
operations, inventory obsolescence, copper price fluctuations,
customer viability, risks associated with accounts receivable, the
impact of regulation and regulatory, investigative and legal
proceedings and legal compliance risks and risks associated with
integration of acquired companies. These uncertainties may cause
our actual results to be materially different than those expressed
in any forward looking statements. We do not undertake to update
any forward looking statements. Please see our Securities and
Exchange Commission (“SEC”) filings for more information.
Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S.
Generally Accepted Accounting Principles (“GAAP”) above, this
release includes certain financial measures computed using non-GAAP
components as defined by the SEC. Specifically, net sales
comparisons to the prior corresponding period, both worldwide and
in relevant segments, are discussed in this release both on a GAAP
basis and non-GAAP basis. We believe that by reporting non-GAAP
organic growth, which adjusts for the impact of acquisitions (when
applicable), foreign exchange fluctuations and copper prices, both
management and investors are provided with meaningful supplemental
sales information to understand and analyze our underlying trends
and other aspects of our financial performance. Beginning in 2015,
we calculate the year-over-year organic sales growth impact
relating to the Tri-Ed acquisition by including the 2014 results
with our results (on a "pro forma" basis) as we believe this
represents the most accurate representation of organic growth,
considering the nature of the company we acquired and the
synergistic revenues that have been achieved. From time to time, we
may also exclude other items from reported financial results (e.g.,
impairment charges, inventory adjustments, restructuring charges,
tax items, currency devaluations, etc.) so that both management and
financial statement users can use these non-GAAP financial measures
to better understand and evaluate our performance period over
period and to analyze the underlying trends of our business.
EBITDA is defined as net income from continuing operations
before interest, income taxes, depreciation and amortization.
Adjusted EBITDA is defined as EBITDA before foreign exchange and
other non-operating expense and non-cash stock-based compensation,
excluding the other special items from reported financial results,
as defined above. EBITDA and Adjusted EBITDA are presented because
we believe they are useful indicators of our performance and our
ability to meet debt service requirements. They are not, however,
intended as an alternative measure of operating results or cash
flow from operations as determined in accordance with generally
accepted accounting principles.
Non-GAAP financial measures provide insight into selected
financial information and should be evaluated in the context in
which they are presented. These non-GAAP financial measures have
limitations as analytical tools, and should not be considered in
isolation from, or as a substitute for, financial information
presented in compliance with GAAP, and non-GAAP financial measures
as reported by us may not be comparable to similarly titled amounts
reported by other companies. The non-GAAP financial measures should
be considered in conjunction with the Condensed Consolidated
Financial Statements and Management’s Discussion and Analysis of
Financial Condition and Results of Operations. Management does not
use these non-GAAP financial measures for any purpose other than
the reasons stated above.
Additional information about Anixter is
available at anixter.com
ANIXTER INTERNATIONAL
INC. Condensed Consolidated Statements of
Operations (Unaudited) Three Months Ended
April 3,2015
April 4,2014
(In millions, except per share amounts) As Adjusted
Net sales $ 1,385.1 $ 1,274.3
Cost of goods sold 1,075.8 982.5
Gross profit
309.3 291.8 Operating expenses 250.0 221.8
Operating income 59.3 70.0 Interest
expense (14.2 ) (10.1 ) Other, net (4.0 ) (9.7 ) Income from
continuing operations before income taxes 41.1 50.2 Income tax
expense from continuing operations 14.6 12.5
Net
income from continuing operations 26.5 37.7
Income from discontinued operations before income taxes 11.2 14.0
Income tax expense from discontinued operations 18.6 4.3
Net (loss) income from discontinued operations
(7.4 ) 9.7 Net income $
19.1 $ 47.4 Income per
share: Basic: Continuing operations $ 0.80 $ 1.15 Discontinued
operations (0.22 ) 0.29 Net Income $ 0.58 $ 1.44
Diluted: Continuing operations $ 0.79 $ 1.13 Discontinued
operations (0.22 ) 0.30 Net Income $ 0.57 $ 1.43
Weighted-average common shares outstanding: Basic 33.2 32.9
Diluted 33.4 33.3
Reportable Segments Net
sales: Enterprise Cabling & Security Solutions $ 915.8 $
776.8 Electrical and Electronic Wire & Cable 469.3 497.5
Corporate — — $ 1,385.1 $ 1,274.3
Operating income: Enterprise Cabling & Security
Solutions $ 36.3 $ 37.6 Electrical and Electronic Wire & Cable
26.2 35.3 Corporate (3.2 ) (2.9 ) $ 59.3 $ 70.0
ANIXTER INTERNATIONAL INC. Condensed Consolidated
Balance Sheets (Unaudited)
April 3,2015
January 2,2015
(In millions, except share and per share amounts) As
Adjusted Assets Cash and cash equivalents $ 101.2 $ 92.0
Accounts receivable, net 1,109.4 1,171.0 Inventories 839.0 859.0
Deferred income taxes 33.4 33.7 Other current assets 51.5 54.9
Current assets held for sale 419.1 379.2 Total current
assets 2,553.6 2,589.8 Property and equipment, net 107.6 104.2
Goodwill 577.1 582.3 Other assets 270.9 282.5 Long-term assets held
for sale — 27.7
Total assets $ 3,509.2
$ 3,586.5 Liabilities and
Stockholders' Equity Accounts payable $ 682.5 $ 738.5 Accrued
expenses 169.7 183.2 Current liabilities held for sale 131.8
108.8 Total current liabilities 984.0 1,030.5 5.125% Senior notes
394.4 394.2 5.625% Senior notes 346.1 345.9 Term loan 197.5 198.8
Accounts receivable securitization facility 190.0 65.0 Revolving
lines of credit and other 74.0 3.8 5.95% senior notes — 200.0 Other
liabilities 208.7 215.1 Long-term liabilities held for sale —
0.2
Total liabilities 2,394.7 2,453.5
Stockholders' equity 1,114.5 1,133.0
Total liabilities and stockholders' equity $
3,509.2 $ 3,586.5 ANIXTER
INTERNATIONAL INC. Condensed Consolidated Statements of Cash
Flows (Unaudited) Three Months Ended
April 3,2015
April 4,2014
(In millions) Operating activities Net income
$ 19.1 $ 47.4 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation 6.1 5.6
Amortization of intangible assets 5.4 2.0 Stock-based compensation
3.6 3.3 Accretion of debt discount 0.4 0.3 Amortization of deferred
financing costs 0.4 0.4 Deferred income taxes — (3.8 ) Excess
income tax benefit from employee stock plans (0.4 ) (2.7 ) Pension
plan contributions (4.8 ) (4.7 ) Pension plan expenses 2.9 1.0
Changes in current assets and liabilities, net (15.5 ) (41.1 )
Other, net 0.8 0.3
Net cash provided by operating
activities 18.0 8.0 Investing
activities Capital expenditures, net (10.9 ) (9.0 ) Other 2.3
—
Net cash used in investing activities
(8.6 ) (9.0 ) Financing
activities Proceeds from borrowings 346.8 330.4 Repayment of
borrowings (151.5 ) (263.6 ) Retirement of Notes due 2015 (200.0 )
— Repayment of term loan (1.3 ) — Excess income tax benefit from
employee stock plans 0.4 2.7 Retirement of Notes due 2014 — (32.3 )
Proceeds from stock options exercised — 0.5 Other (1.0 ) (1.7 )
Net cash (used in) provided by financing activities
(6.6 ) 36.0 Increase in cash and
cash equivalents 2.8 35.0 Effect of
exchange rate changes on cash balances 6.4 (2.5
) Cash and cash equivalents at beginning of period
92.0 57.3
Cash and cash equivalents at end of
period $ 101.2 $ 89.8
ANIXTER INTERNATIONAL INC. Financial Measures That
Supplement GAAP (Unaudited)
First Quarter 2015 Sales Growth
Trends Q1 2015 Q1 2014
Foreign
Organic As Exchange Copper As
As Acquisition
Pro
Growth/ ($ millions) Reported Impact
Impact Adjusted Reported Impact
Forma
(Decline) (as adjusted)
Enterprise Cabling and Security
Solutions North America $ 720.2 $ 10.9 $ — $ 731.1 $ 568.6 $
140.9 $ 709.5 3.0 % Europe 83.4 10.7 — 94.1 83.6 — 83.6 12.5 %
Emerging Markets 112.2 6.3 — 118.5
124.6 0.9 125.5 (5.5 )%
Enterprise Cabling
and Security Solutions $ 915.8 $ 27.9 $ —
$ 943.7 $ 776.8 $ 141.8 $ 918.6 2.7 %
Electrical and Electronic Wire and Cable North
America $ 339.8 $ 9.9 $ 13.7 $ 363.4 $ 350.8 $ — $ 350.8 3.6 %
Europe 71.6 7.1 0.8 79.5 82.6 — 82.6 (3.7 )% Emerging Markets 57.9
1.6 1.3 60.8 64.1 — 64.1
(5.4 )%
Electrical and Electronic Wire and Cable $
469.3 $ 18.6 $ 15.8 $ 503.7 $ 497.5
$ — $ 497.5 1.2 %
Total Anixter
International $ 1,385.1 $ 46.5 $ 15.8 $
1,447.4 $ 1,274.3 $ 141.8 $ 1,416.1 2.2
%
Geographic Sales North America $ 1,060.0 $ 20.8 $
13.7 $ 1,094.5 $ 919.4 $ 140.9 $ 1,060.3 3.2 % Europe 155.0 17.8
0.8 173.6 166.2 — 166.2 4.4 % Emerging Markets 170.1 7.9
1.3 179.3 188.7 0.9 189.6
(5.5 )%
Total Anixter International $ 1,385.1 $ 46.5
$ 15.8 $ 1,447.4 $ 1,274.3 $ 141.8
$ 1,416.1 2.2 %
ANIXTER INTERNATIONAL INC. Financial
Measures That Supplement GAAP (Unaudited) - continued
(In millions, except per share amounts)
Positive (Negative) impact Three Months Ended
April 3,2015
April 4,2014
Continuing operations As Adjusted Items impacting
comparability of results: Items impacting operating expenses:
None $ — $ — Items impacting other expenses: Foreign exchange loss
from the devaluation of foreign currencies (0.7 ) (8.0 )
Total
of items impacting other expenses $ (0.7 )
$ (8.0 ) Total of items impacting pre-tax
income $ (0.7 ) $ (8.0
) Items impacting income taxes: Tax impact of items
impacting pre-tax income above 0.3 2.7 Primarily reversal of
deferred income tax valuation allowances — 4.9
Total of items impacting income taxes $ 0.3
$ 7.6 Net loss impact of these
items $ (0.4 ) $ (0.4
) Diluted EPS impact of these items $
(0.02 ) $ (0.01 )
(Discontinued operations) Items impacting comparability
of results: Items impacting operating expenses: None
$
— $ — Items impacting other expenses: None
— — Total of items impacting other
expenses $ — $ —
Total of items impacting pre-tax
income
$ — $ — Items impacting income taxes:
Change in permanent reinvestment assertion
(15.2 )
— Total of items impacting income taxes
$ (15.2 ) $ — Net loss
impact of these items $ (15.2 ) $
— Diluted EPS impact of these items $
(0.45 ) $ — GAAP to
Non-GAAP Net Income and EPS Reconciliation: Reconciliation to
most directly comparable GAAP financial measure:
Continuing
operations: Net income from continuing operations – Non-GAAP $
26.9 $ 38.1 Items impacting net income from continuing operations
(0.4 ) (0.4 ) Net income from continuing operations – GAAP $ 26.5
$ 37.7 Diluted EPS – Non-GAAP $ 0.81 $ 1.14
Diluted EPS impact of these items (0.02 ) (0.01 ) Diluted EPS –
GAAP $ 0.79 $ 1.13
Discontinued
operations: Net income from discontinued operations – Non-GAAP
$ 7.8 $ 9.7 Items impacting net income from discontinued operations
(15.2 ) — Net income (loss) from discontinued operations –
GAAP $ (7.4 ) $ 9.7 Diluted EPS – Non-GAAP $ 0.23 $
0.30 Diluted EPS impact of these items (0.45 ) — Diluted EPS
– GAAP $ (0.22 ) $ 0.30
Total: Net income –
Non-GAAP $ 34.7 $ 47.8 Items impacting net income (15.6 ) (0.4 )
Net income - GAAP $ 19.1 $ 47.4 Diluted EPS –
Non-GAAP $ 1.04 $ 1.44 Diluted EPS impact of these items (0.47 )
(0.01 ) Diluted EPS – GAAP $ 0.57 $ 1.43
ANIXTER INTERNATIONAL INC.
Financial Measures That Supplement GAAP
(Unaudited) - continued 2015 and 2014 Effective Tax
Rate – GAAP and Non-GAAP Three Months Ended April
3, April 4, 2015 2014 As Adjusted
Income from continuing operations before taxes - GAAP $ 41.1 $ 50.2
Income tax expense - GAAP $ 14.6 $ 12.5 Effective income tax rate
35.6 % 24.9 %
Total of items impacting pre-tax income
above $ (0.7 ) $ (8.0
) Total of items impacting income taxes above
$ 0.3 $ 7.6 Income
from continuing operations before income taxes - Non-GAAP $ 41.8 $
58.2 Income tax expense – Non-GAAP $ 14.9 $ 20.1 Adjusted effective
income tax rate 35.6 % 34.6 % No items significantly
impacting the comparability of operating expense.
2015 EBITDA by Segment Three Months
Ended April 3, 2015 ECS W&C
Corporate Total Net income from continuing
operations $ 36.3 $ 26.2 $ (36.0 ) $ 26.5 Interest expense — — 14.2
14.2 Income taxes — — 14.6 14.6 Depreciation 3.4 1.7 — 5.1
Amortization of intangible assets 3.7 1.4 —
5.1
EBITDA $ 43.4 $
29.3 $ (7.2 ) $
65.5 EBITDA leverage 2.0 %
nm nm nm EBITDA as a % of sales
4.7 % 6.3 % nm 4.7
% Foreign exchange and other non-operating expense $
— $ — $ 4.0 $ 4.0 Stock-based compensation 2.1 1.2 —
3.3
Adjusted EBITDA $ 45.5
$ 30.5 $ (3.2 )
$ 72.8 Adjusted EBITDA leverage
2.2 % nm nm nm Adjusted
EBITDA as a % of sales 5.0 % 6.5 %
nm 5.3 % nm - not meaningful
2014 EBITDA by Segment
Three Months Ended April 4, 2014 As Adjusted
ECS W&C Corporate
Total Net income from continuing operations $ 37.6 $ 35.3 $
(35.2 ) $ 37.7 Interest expense — — 10.1 10.1 Income taxes — — 12.5
12.5 Depreciation 2.9 1.8 — 4.7 Amortization of intangible assets
0.2 1.5 — 1.7
EBITDA $
40.7 $ 38.6 $
(12.6 ) $ 66.7 EBITDA
leverage 22.0 % nm nm nm
EBITDA as a % of sales 5.2 % 7.8
% nm 5.2 % Foreign exchange and
other non-operating expense $ — $ — $ 9.7 $ 9.7 Acquisition and
strategic project costs — — — — Stock-based compensation 1.8
1.2 — 3.0
Adjusted EBITDA $
42.5 $ 39.8 $ (2.9
) $ 79.4 Adjusted EBITDA
leverage 12.0 % nm nm nm
Adjusted EBITDA as a % of sales 5.5 %
8.0 % nm 6.2 % nm - not
meaningful
Anixter International Inc.Investor Contacts:Ted DoschEVP -
Finance & Chief Financial Officer(224) 521-4281orLisa Micou
Meers, CFAVP - Investor Relations(224) 521-8895
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