·
Fourth quarter sales of $1.8 billion.
·
Fourth quarter adjusted EPS declined 3 percent to $1.13.
· Full
year free cash flow of $643 million was approximately 90 percent of
adjusted net income.
· The
company anticipates a pre-tax non-cash goodwill and intangible
asset impairment charge of $400 million to $600 million.
· The
company confirms adjusted 2016 EPS guidance of $4.05 - $4.25.
Reconciliations of GAAP to
Non-GAAP measures are in the attached financial tables.
MANCHESTER, United Kingdom - February 2,
2016- Pentair plc (NYSE: PNR) today announced fourth quarter 2015
sales of $1.8 billion. Sales were down 2 percent compared to sales
for the same period last year. Excluding the unfavorable impact of
currency translation and positive contribution from acquisitions,
core sales declined 4 percent in the fourth quarter. Adjusted
fourth quarter 2015 earnings per diluted share from continuing
operations ("EPS") were $1.13, down 3 percent from adjusted EPS of
$1.17 in the fourth quarter of last year. On a GAAP basis,
excluding impairment charges, the company reported EPS of $0.51
compared to $0.70 in the fourth quarter of 2014. Amounts excluded
from segment income, adjusted net income and adjusted EPS are
described in the attached schedules.
Fourth quarter 2015 segment income was $280
million, down 7 percent compared to segment income for fourth
quarter 2014, and return on sales was 15.9 percent, a decrease of
90 basis points when compared to 2014 return on sales. On a GAAP
basis, excluding impairment charges, the company reported operating
income of $163 million for the quarter.
For the full year, the company reported sales of
$6.4 billion, segment income of $1.0 billion, and adjusted EPS of
$3.94. On a GAAP basis, excluding impairment charges, the
company reported operating income of $732 million and EPS of
$2.63.
Free cash flow was $316 million for the quarter
and $643 million for the full year; which represented approximately
90 percent conversion of adjusted net income for the full year.
In the fourth quarter of 2015, we performed step
one of the goodwill impairment analysis required under U.S. GAAP.
As a result, we determined the fair value of our Valves &
Controls reporting unit was less than its carrying value. We are
currently in the process of completing the second step of the
goodwill impairment test in order to determine the implied fair
value of the goodwill of Valves & Controls. We will complete
the necessary work to determine an estimated impairment amount
prior to the issuance of our 2015 Annual Report on Form 10-K. We
estimate we will record a pre-tax, non-cash impairment charge of
$400 million - $600 million for the year ended December 31,
2015.
Pentair paid dividends of $0.32 per share in the
fourth quarter of 2015. Pentair previously announced on December 8,
2015 that its Board of Directors approved a 5 percent increase in
the company's regular annual cash dividend rate for 2016 to $1.34
from $1.28. 2016 will mark the 40th consecutive year that
Pentair has increased its dividend.
"We delivered on our fourth quarter commitments
despite the challenges our businesses serving the Energy and
Industrial markets continue to face," said Randall J. Hogan,
Pentair Chairman and Chief Executive Officer. "We are
maintaining our full year 2016 adjusted EPS guidance of $4.05 to
$4.25 per share, which assumes continued difficult business
conditions combined with additional productivity actions. We
continue to believe in the long-term prospects of all of our
businesses and we expect our proven track record around operational
rigor and cash flow will help us manage our way through this
uncertain economic environment."
FOURTH QUARTER BUSINESS
HIGHLIGHTS
All references to changes in core sales exclude
the impact of currency translation and acquisitions. See attached
reconciliations of these Non-GAAP measures.
Valves & Controls
delivered fourth quarter 2015 sales of $474 million, down 22
percent versus the prior year quarter. Core sales declined 15
percent year over year for the fourth quarter and FX translation
was a negative 7 percent. Backlog, including the impact of currency
translation, declined 4 percent to $1.1 billion compared to third
quarter 2015.
· Core
sales in the Energy vertical, which accounted for approximately 60
percent of Valves & Controls revenue in the quarter,
decreased 16 percent. Core sales to the oil & gas industry
decreased 20 percent while core sales to the power and mining
industries were down 10 percent.
· Core
sales in the Industrial vertical, which accounted for approximately
40 percent of Valves & Controls revenue in the quarter,
decreased 12 percent.
Valves & Controls delivered fourth
quarter segment income of $48 million, down 59 percent compared to
$116 million in the same quarter last year. Fourth quarter 2015
segment margins decreased 900 basis points to 10.0 percent.
Flow & Filtration
Solutions fourth quarter sales were $354 million, down 8
percent versus the prior year quarter. Core sales declined 2
percent in the fourth quarter and FX translation was negative 6
percent.
· Core
sales in the Residential & Commercial vertical, which
accounted for approximately 30 percent of Flow & Filtration
Solutions revenue in the quarter, decreased 7 percent.
· Core
sales in the Food & Beverage vertical, which accounted for
approximately 25 percent of Flow & Filtration Solutions revenue
in the quarter, decreased 2 percent.
· Core
sales in the Infrastructure vertical, which accounted for
approximately 20 percent of Flow & Filtration Solutions revenue
in the quarter, decreased 3 percent.
Flow & Filtration Solutions delivered fourth
quarter segment income of $40 million compared to $42 million in
the same period last year. Segment margins increased 40 basis
points to 11.3 percent.
Water Quality Systems
delivered fourth quarter 2015 sales of $365 million, up 4 percent
versus the prior year quarter. Core sales grew 7 percent in
the fourth quarter and FX translation was negative 3 percent.
· Core
sales in the Residential & Commercial vertical, which accounted
for approximately 80 percent of Water Quality Systems revenue in
the quarter, increased 7 percent.
· Core
sales in the Food & Beverage vertical, which accounted for
approximately 20 percent of Water Quality Systems revenue in the
quarter, increased 9 percent.
Water Quality Systems fourth quarter segment
income of $81 million represented a 30 percent increase as compared
to $62 million in the same quarter last year. Fourth quarter 2015
segment margins increased 450 basis points to 22.3 percent.
Technical Solutions delivered
fourth quarter 2015 sales of $574 million, up 23 percent versus the
prior year quarter. Core sales were flat in the fourth
quarter, ERICO added 29 percent and FX translation was negative 6
percent.
· Core
sales in the Industrial vertical, which accounted for approximately
35 percent of Technical Solutions revenue in the quarter, decreased
2 percent.
· Core
sales in the Residential & Commercial vertical, which
accounted for approximately 25 percent of Technical Solutions
revenue in the quarter, increased 7 percent.
· Core
sales in the Energy vertical, which accounted for approximately 20
percent of Technical Solutions revenue in the quarter, decreased 3
percent.
· Core
sales in the Infrastructure vertical, which accounted for
approximately 15 percent of Technical Solutions revenue in the
quarter, increased 2 percent.
Technical Solutions delivered fourth quarter
segment income of $130 million, up 17 percent compared to $111
million in the same quarter last year. Fourth quarter 2015 segment
margins decreased 130 basis points to 22.6 percent.
OUTLOOK
The company previously communicated its full year
2016 adjusted EPS outlook of $4.05 - $4.25. On an adjusted
basis, this would represent an increase of 5 percent over 2015
adjusted EPS of $3.94. The company anticipates full year 2016
sales of $6.6 billion, or up approximately 2 percent on a reported
basis and down 2 to 3 percent on a core sales basis. The
company expects to generate free cash flow approximately equal to
adjusted net income in 2016.
In addition, the company introduced first quarter
2016 adjusted EPS guidance of $0.70 - $0.72, down approximately 7
percent on an adjusted basis versus the same quarter last year's
adjusted EPS. The company expects first quarter revenue to be
approximately $1.6 billion, which would be up 7 to 8 percent on a
reported basis and up approximately 1 percent on a core basis
compared to first quarter 2015 revenue.
EARNINGS CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and
Chief Financial Officer John L. Stauch will discuss the company's
performance, fourth quarter and full year 2015 results, and 2016
outlook on a two-way conference call with investors at 9:00 a.m.
Eastern today. A live audio webcast of the call, along with the
related presentation, can be accessed in the Investors section of
the company's website, www.pentair.com, shortly before the call
begins. Reconciliations of non-GAAP financial measures are set
forth in the attachments to this release and in the presentation,
both of which can be found on Pentair's website. The webcast and
presentation will be archived at the company's website following
the conclusion of the event.
CAUTION CONCERNING
FORWARD-LOOKING STATEMENTS
This press release contains statements that we
believe to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical fact are
forward-looking statements. Without limitation, any statements
preceded or followed by or that include the words "targets,"
"plans," "believes," "expects," "intends," "will," "likely," "may,"
"anticipates," "estimates," "projects," "should," "would,"
"positioned," "strategy," "future" or words, phrases or terms of
similar substance or the negative thereof, are forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties,
assumptions and other factors, some of which are beyond our
control, which could cause actual results to differ materially from
those expressed or implied by such forward-looking statements.
These factors include overall global economic and business
conditions, including worldwide demand for oil and gas; the ability
to achieve the benefits of our restructuring plans; the ability to
successfully identify, finance, complete and integrate
acquisitions, including the ability to successfully integrate and
achieve the expected benefits of the acquisition of ERICO Global
Company; competition and pricing pressures in the markets we serve;
the strength of housing and related markets; volatility in currency
exchange rates and commodity prices; inability to generate savings
from excellence in operations initiatives consisting of lean
enterprise, supply management and cash flow practices; increased
risks associated with operating foreign businesses; the ability to
deliver backlog and win future project work; failure of markets to
accept new product introductions and enhancements; the impact of
changes in laws and regulations, including those that limit U.S.
tax benefits; the outcome of litigation and governmental
proceedings; and the ability to achieve our long-term strategic
operating goals. Additional information concerning these and other
factors is contained in our filings with the U.S. Securities and
Exchange Commission ("SEC"), including in our Quarterly Report on
Form 10-Q for the quarter ended September 26, 2015 and our 2014
Annual Report on Form 10-K. All forward-looking statements speak
only as of the date of this report. We assume no obligation, and
disclaim any obligation, to update the information contained in
this report.
ABOUT PENTAIR PLC
Pentair plc (www.pentair.com) delivers
industry-leading products, services and solutions for its
customers' diverse needs in water and other fluids, thermal
management and equipment protection. With 2015 revenues of $6.4
billion, Pentair employs approximately 30,000 people worldwide.
PENTAIR CONTACTS:
Jim Lucas
Vice President, Investor Relations & Strategic
Planning
Direct: 763-656-5575
Email: jim.lucas@pentair.com
Rebecca Osborn
Senior Manager, External Communications
Direct: 763-656-5589
Email: rebecca.osborn@pentair.com
|
|
|
Pentair plc
and Subsidiaries |
Condensed
Consolidated Statements of Operations (Unaudited) |
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
In millions, except per-share
data |
December 31,
2015 |
December 31,
2014 |
|
December 31,
2015 |
December 31,
2014 |
Net sales |
$ |
1,760.7 |
|
$ |
1,802.5 |
|
|
$ |
6,449.0 |
|
$ |
7,039.0 |
|
Cost
of goods sold |
1,191.4 |
|
1,174.6 |
|
|
4,263.2 |
|
4,576.0 |
|
Gross profit |
569.3 |
|
627.9 |
|
|
2,185.8 |
|
2,463.0 |
|
% of net sales |
32.3 |
% |
34.9 |
% |
|
33.9 |
% |
35.0 |
% |
Selling, general and administrative |
375.6 |
|
422.8 |
|
|
1,334.3 |
|
1,493.8 |
|
% of net sales |
21.3 |
% |
23.5 |
% |
|
20.7 |
% |
21.2 |
% |
Research and development |
30.9 |
|
29.1 |
|
|
119.6 |
|
117.3 |
|
% of net sales |
1.8 |
% |
1.6 |
% |
|
1.9 |
% |
1.7 |
% |
Operating income |
162.8 |
|
176.0 |
|
|
731.9 |
|
851.9 |
|
% of net sales |
9.2 |
% |
9.8 |
% |
|
11.3 |
% |
12.1 |
% |
Other (income) expense: |
|
|
|
|
|
Equity
income of unconsolidated subsidiaries |
(0.8 |
) |
(0.3 |
) |
|
(2.8 |
) |
(1.2 |
) |
Loss on sale of businesses, net |
3.2 |
|
- |
|
|
3.2 |
|
0.2 |
|
Net
interest expense |
34.6 |
|
17.5 |
|
|
102.7 |
|
68.6 |
|
% of net sales |
2.0 |
% |
1.0 |
% |
|
1.6 |
% |
1.0 |
% |
Income
from continuing operations before income taxes |
125.8 |
|
158.8 |
|
|
628.8 |
|
784.3 |
|
Provision for income taxes |
32.6 |
|
29.0 |
|
|
148.3 |
|
177.3 |
|
Effective tax rate |
25.9 |
% |
18.3 |
% |
|
23.6 |
% |
22.6 |
% |
Net income from continuing
operations |
93.2 |
|
129.8 |
|
|
480.5 |
|
607.0 |
|
Loss
(income) from discontinued operations, net of tax |
0.9 |
|
(9.0 |
) |
|
(4.7 |
) |
(6.4 |
) |
Loss from sale / impairment of discontinued operations,
net of tax |
(1.9 |
) |
- |
|
|
(6.7 |
) |
(385.7 |
) |
Net income |
$ |
92.2 |
|
$ |
120.8 |
|
|
$ |
469.1 |
|
$ |
214.9 |
|
Earnings (loss) per ordinary
share |
|
|
|
|
|
Basic |
|
|
|
|
|
Continuing operations |
$ |
0.52 |
|
$ |
0.71 |
|
|
$ |
2.66 |
|
$ |
3.19 |
|
Discontinued operations |
(0.01 |
) |
(0.05 |
) |
|
(0.06 |
) |
(2.06 |
) |
Basic earnings per ordinary share |
$ |
0.51 |
|
$ |
0.66 |
|
|
$ |
2.60 |
|
$ |
1.13 |
|
Diluted |
|
|
|
|
|
Continuing operations |
$ |
0.51 |
|
$ |
0.70 |
|
|
$ |
2.63 |
|
$ |
3.14 |
|
Discontinued operations |
(0.01 |
) |
(0.05 |
) |
|
(0.06 |
) |
(2.03 |
) |
Diluted earnings per ordinary share |
$ |
0.50 |
|
$ |
0.65 |
|
|
$ |
2.57 |
|
$ |
1.11 |
|
Weighted average ordinary shares
outstanding |
|
|
|
|
|
Basic |
180.5 |
|
183.1 |
|
|
180.3 |
|
190.6 |
|
Diluted |
182.5 |
|
185.8 |
|
|
182.6 |
|
193.7 |
|
Cash dividends paid per ordinary
share |
$ |
0.32 |
|
$ |
0.30 |
|
|
$ |
1.28 |
|
$ |
1.10 |
|
Note:
2015 excludes impairment charge |
|
|
|
|
|
|
|
|
|
|
|
Pentair plc
and Subsidiaries |
|
Condensed
Consolidated Balance Sheets (Unaudited) |
|
|
|
|
|
|
December
31,
2015 |
December
31,
2014 |
|
In millions |
|
Assets |
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
126.3 |
|
$ |
110.4 |
|
|
Accounts and notes receivable, net |
1,167.7 |
|
1,205.9 |
|
|
Inventories |
1,174.3 |
|
1,130.4 |
|
|
Other
current assets |
312.3 |
|
366.8 |
|
|
Current assets held for sale |
- |
|
80.6 |
|
|
Total current assets |
2,780.6 |
|
2,894.1 |
|
|
Property, plant and equipment,
net |
942.8 |
|
950.0 |
|
|
Other assets |
|
|
|
Goodwill |
5,770.6 |
|
4,741.9 |
|
|
Intangibles, net |
2,529.6 |
|
1,608.1 |
|
|
Other non-current assets |
388.1 |
|
436.2 |
|
|
Non-current assets held for sale |
- |
|
24.9 |
|
|
Total other assets |
8,688.3 |
|
6,811.1 |
|
|
Total assets |
$ |
12,411.7 |
|
$ |
10,655.2 |
|
|
Liabilities and Equity |
|
Current liabilities |
|
|
|
Current maturities of long-term debt and short-term
borrowings |
$ |
0.7 |
|
$ |
6.7 |
|
|
Accounts payable |
578.8 |
|
583.1 |
|
|
Employee compensation and benefits |
262.9 |
|
305.5 |
|
|
Other
current liabilities |
644.1 |
|
709.1 |
|
|
Current liabilities held for sale |
- |
|
35.1 |
|
|
Total current liabilities |
1,486.5 |
|
1,639.5 |
|
|
Other liabilities |
|
|
|
Long-term debt |
4,709.3 |
|
2,997.4 |
|
|
Pension and other post-retirement compensation and
benefits |
287.2 |
|
322.0 |
|
|
Deferred tax liabilities |
847.8 |
|
528.3 |
|
|
Other non-current liabilities |
526.6 |
|
497.7 |
|
|
Non-current liabilities held for sale |
- |
|
6.5 |
|
|
Total liabilities |
7,857.4 |
|
5,991.4 |
|
|
Equity |
4,554.3 |
|
4,663.8 |
|
|
Total liabilities and
equity |
$ |
12,411.7 |
|
$ |
10,655.2 |
|
|
Note:
2015 excludes impairment charge |
|
|
|
|
|
|
Pentair plc
and Subsidiaries |
Condensed
Consolidated Statements of Cash Flows (Unaudited) |
|
Twelve months ended |
In millions |
December 31,
2015 |
December
31,
2014 |
Operating activities |
|
|
Net income |
$ |
469.1 |
|
$ |
214.9 |
|
Loss
from discontinued operations, net of tax |
4.7 |
|
6.4 |
|
Loss from sale / impairment of discontinued
operations, net of tax |
6.7 |
|
385.7 |
|
Adjustments to reconcile net income (loss) from
continuing operations to net cash provided by (used for) operating
activities of continuing operations |
|
|
Equity income of unconsolidated subsidiaries |
(2.8 |
) |
(1.2 |
) |
Depreciation |
139.5 |
|
138.7 |
|
Amortization |
121.4 |
|
114.0 |
|
Loss
on sale of businesses, net |
3.2 |
|
0.2 |
|
Deferred income taxes |
40.3 |
|
2.0 |
|
Share-based compensation |
33.0 |
|
33.6 |
|
Excess tax benefits from share-based
compensation |
(6.0 |
) |
(12.6 |
) |
Amortization of bridge financing debt issuance costs |
10.8 |
|
- |
|
Pension and other post-retirement expense
(benefit) |
9.1 |
|
76.2 |
|
Pension and other post-retirement contributions |
(24.7 |
) |
(27.7 |
) |
Changes in assets and liabilities,
net of effects of business acquisitions |
|
|
Accounts and notes receivable |
48.8 |
|
9.0 |
|
Inventories |
1.4 |
|
(3.7 |
) |
Other
current assets |
(21.7 |
) |
(22.0 |
) |
Accounts payable |
(8.1 |
) |
34.5 |
|
Employee compensation and benefits |
(41.1 |
) |
13.2 |
|
Other current liabilities |
(31.2 |
) |
58.5 |
|
Other
non-current assets and liabilities |
(2.4 |
) |
(14.7 |
) |
Net cash provided by (used for) operating activities of
continuing operations |
750.0 |
|
1,005.0 |
|
Net cash provided by (used for) operating activities of
discontinued operations |
(10.7 |
) |
3.4 |
|
Net cash provided by (used for) operating
activities |
739.3 |
|
1,008.4 |
|
Investing activities |
|
|
Capital expenditures |
(134.3 |
) |
(129.6 |
) |
Proceeds from sale of property and equipment |
27.3 |
|
13.1 |
|
Acquisitions, net of cash acquired |
(1,913.9 |
) |
(12.3 |
) |
Other |
(3.6 |
) |
0.5 |
|
Net cash provided by (used for) investing activities of
continuing operations |
(2,024.5 |
) |
(128.3 |
) |
Net cash provided by (used for) investing activities of
discontinued operations |
59.0 |
|
- |
|
Net cash provided by (used for) investing
activities |
(1,965.5 |
) |
(128.3 |
) |
Financing activities |
|
|
Net receipts (repayments) of short-term
borrowings |
(2.3 |
) |
0.5 |
|
Net
receipts of commercial paper and revolving long-term debt |
363.5 |
|
468.6 |
|
Proceeds from long-term debt |
1,714.8 |
|
2.2 |
|
Repayment of long-term debt |
(356.6 |
) |
(16.8 |
) |
Debt issuance costs |
(26.8 |
) |
(3.1 |
) |
Excess
tax benefits from share-based compensation |
6.0 |
|
12.6 |
|
Shares issued to employees, net of shares
withheld |
19.4 |
|
37.0 |
|
Repurchases of ordinary shares |
(200.0 |
) |
(1,150.0 |
) |
Dividends paid |
(231.7 |
) |
(211.4 |
) |
Purchase of noncontrolling interest |
- |
|
(134.7 |
) |
Net cash provided by (used for) financing activities |
1,286.3 |
|
(995.1 |
) |
Effect of exchange rate changes on cash and cash
equivalents |
(44.2 |
) |
(30.6 |
) |
Change in cash and cash
equivalents |
15.9 |
|
(145.6 |
) |
Cash
and cash equivalents, beginning of year |
110.4 |
|
256.0 |
|
Cash and cash equivalents, end of
year |
$ |
126.3 |
|
$ |
110.4 |
|
Note: 2015 excludes impairment charge |
|
|
|
|
|
Pentair plc
and Subsidiaries |
Free Cash
Flow (Unaudited) |
|
Twelve months ended |
In millions |
December 31,
2015 |
December 31,
2014 |
Free cash flow |
|
|
Net cash provided by (used for) operating activities
of continuing operations |
$ |
750.0 |
|
$ |
1,005.0 |
|
Capital
expenditures |
(134.3 |
) |
(129.6 |
) |
Proceeds from sale of property and equipment |
27.3 |
|
13.1 |
|
Free cash flow |
$ |
643.0 |
|
$ |
888.5 |
|
|
|
|
Pentair plc
and Subsidiaries |
Supplemental
Financial Information by Reportable Segment (Unaudited) |
|
|
|
|
|
|
|
2015 |
In millions |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
Full
Year |
Net sales |
|
|
|
|
|
Valves & Controls |
$ |
429.2 |
|
$ |
496.4 |
|
$ |
440.9 |
|
$ |
473.6 |
|
$ |
1,840.1 |
|
Flow & Filtration Solutions |
350.1 |
|
374.6 |
|
362.7 |
|
354.2 |
|
1,441.6 |
|
Water
Quality Systems |
306.9 |
|
387.7 |
|
322.0 |
|
364.9 |
|
1,381.5 |
|
Technical Solutions |
395.8 |
|
407.1 |
|
432.3 |
|
574.1 |
|
1,809.3 |
|
Other |
(7.0 |
) |
(4.6 |
) |
(5.8 |
) |
(6.1 |
) |
(23.5 |
) |
Consolidated |
$ |
1,475.0 |
|
$ |
1,661.2 |
|
$ |
1,552.1 |
|
$ |
1,760.7 |
|
$ |
6,449.0 |
|
Segment income (loss) |
|
|
|
|
|
Valves & Controls |
$ |
55.4 |
|
$ |
64.4 |
|
$ |
55.7 |
|
$ |
47.5 |
|
$ |
223.0 |
|
Flow
& Filtration Solutions |
35.9 |
|
56.3 |
|
52.8 |
|
40.1 |
|
185.1 |
|
Water Quality Systems |
51.8 |
|
88.2 |
|
60.5 |
|
81.3 |
|
281.8 |
|
Technical Solutions |
77.6 |
|
86.4 |
|
101.0 |
|
130.0 |
|
395.0 |
|
Other |
(21.9 |
) |
(22.4 |
) |
(20.8 |
) |
(18.6 |
) |
(83.7 |
) |
Consolidated |
$ |
198.8 |
|
$ |
272.9 |
|
$ |
249.2 |
|
$ |
280.3 |
|
$ |
1,001.2 |
|
Return on sales |
|
|
|
|
|
Valves & Controls |
12.9 |
% |
13.0 |
% |
12.6 |
% |
10.0 |
% |
12.1 |
% |
Flow & Filtration Solutions |
10.2 |
% |
15.0 |
% |
14.6 |
% |
11.3 |
% |
12.8 |
% |
Water
Quality Systems |
16.9 |
% |
22.8 |
% |
18.8 |
% |
22.3 |
% |
20.4 |
% |
Technical Solutions |
19.6 |
% |
21.2 |
% |
23.4 |
% |
22.6 |
% |
21.8 |
% |
Consolidated |
13.5 |
% |
16.4 |
% |
16.1 |
% |
15.9 |
% |
15.5 |
% |
|
2014 |
In millions |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
Full
Year |
Net sales |
|
|
|
|
|
Valves & Controls |
$ |
531.0 |
|
$ |
628.6 |
|
$ |
607.9 |
|
$ |
609.8 |
|
$ |
2,377.3 |
|
Flow
& Filtration Solutions |
401.1 |
|
424.5 |
|
394.1 |
|
383.4 |
|
1,603.1 |
|
Water Quality Systems |
304.0 |
|
377.9 |
|
324.1 |
|
350.4 |
|
1,356.4 |
|
Technical Solutions |
415.3 |
|
408.6 |
|
438.8 |
|
465.4 |
|
1,728.1 |
|
Other |
(7.4 |
) |
(5.5 |
) |
(6.5 |
) |
(6.5 |
) |
(25.9 |
) |
Consolidated |
$ |
1,644.0 |
|
$ |
1,834.1 |
|
$ |
1,758.4 |
|
$ |
1,802.5 |
|
$ |
7,039.0 |
|
Segment income (loss) |
|
|
|
|
|
Valves & Controls |
$ |
74.3 |
|
$ |
100.9 |
|
$ |
107.6 |
|
$ |
115.7 |
|
$ |
398.5 |
|
Flow & Filtration Solutions |
42.3 |
|
61.8 |
|
53.5 |
|
41.9 |
|
199.5 |
|
Water
Quality Systems |
50.3 |
|
84.7 |
|
56.0 |
|
62.3 |
|
253.3 |
|
Technical Solutions |
83.9 |
|
81.9 |
|
101.1 |
|
111.2 |
|
378.1 |
|
Other |
(21.7 |
) |
(21.0 |
) |
(22.4 |
) |
(28.6 |
) |
(93.7 |
) |
Consolidated |
$ |
229.1 |
|
$ |
308.3 |
|
$ |
295.8 |
|
$ |
302.5 |
|
$ |
1,135.7 |
|
Return on sales |
|
|
|
|
|
Valves & Controls |
14.0 |
% |
16.1 |
% |
17.7 |
% |
19.0 |
% |
16.8 |
% |
Flow
& Filtration Solutions |
10.6 |
% |
14.6 |
% |
13.6 |
% |
10.9 |
% |
12.3 |
% |
Water Quality Systems |
16.6 |
% |
22.4 |
% |
17.3 |
% |
17.8 |
% |
18.7 |
% |
Technical Solutions |
20.2 |
% |
20.0 |
% |
23.1 |
% |
23.9 |
% |
21.9 |
% |
Consolidated |
13.9 |
% |
16.8 |
% |
16.8 |
% |
16.8 |
% |
16.1 |
% |
|
|
|
Pentair plc
and Subsidiaries |
Reconciliation of the GAAP year ended December 31,
2015 to the non-GAAP |
excluding the
effect of 2015 adjustments (Unaudited) |
|
|
|
|
|
|
|
In millions, except per-share
data |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
|
Full
Year |
Total Pentair |
|
|
|
|
|
|
Net sales |
$ |
1,475.0 |
|
$ |
1,661.2 |
|
$ |
1,552.1 |
|
$ |
1,760.7 |
|
|
$ |
6,449.0 |
|
Operating income |
171.2 |
|
217.9 |
|
180.0 |
|
162.8 |
|
|
731.9 |
|
% of net sales |
11.6 |
% |
13.1 |
% |
11.6 |
% |
9.2 |
% |
|
11.3 |
% |
Adjustments: |
|
|
|
|
|
|
Restructuring and other |
- |
|
25.5 |
|
25.3 |
|
70.1 |
|
|
120.9 |
|
Pension and other post-retirement mark-to-market
gain |
- |
|
- |
|
- |
|
(23.0 |
) |
|
(23.0 |
) |
Intangible amortization |
27.6 |
|
28.0 |
|
28.2 |
|
37.6 |
|
|
121.4 |
|
Inventory step-up |
- |
|
1.5 |
|
1.4 |
|
32.8 |
|
|
35.7 |
|
Deal related costs and expenses |
- |
|
- |
|
14.3 |
|
- |
|
|
14.3 |
|
Segment income |
198.8 |
|
272.9 |
|
249.2 |
|
280.3 |
|
|
1,001.2 |
|
% of net sales |
13.5 |
% |
16.4 |
% |
16.1 |
% |
15.9 |
% |
|
15.5 |
% |
Net income from continuing operations-as
reported |
118.2 |
|
153.9 |
|
115.2 |
|
93.2 |
|
|
480.5 |
|
Loss
on sale of businesses, net of tax |
- |
|
- |
|
- |
|
2.7 |
|
|
2.7 |
|
Amortization of bridge financing fees, net of
tax |
- |
|
- |
|
8.3 |
|
- |
|
|
8.3 |
|
Adjustments, net of tax |
21.2 |
|
42.4 |
|
53.2 |
|
110.5 |
|
|
227.3 |
|
Net income from continuing operations-as
adjusted |
$ |
139.4 |
|
$ |
196.3 |
|
$ |
176.7 |
|
$ |
206.4 |
|
|
$ |
718.8 |
|
Continuing earnings per ordinary
share-diluted |
|
|
|
|
|
|
Diluted earnings per ordinary share-as
reported |
$ |
0.65 |
|
$ |
0.84 |
|
$ |
0.63 |
|
$ |
0.51 |
|
|
$ |
2.63 |
|
Adjustments |
0.11 |
|
0.24 |
|
0.34 |
|
0.62 |
|
|
1.31 |
|
Diluted earnings per ordinary share-as
adjusted |
$ |
0.76 |
|
$ |
1.08 |
|
$ |
0.97 |
|
$ |
1.13 |
|
|
$ |
3.94 |
|
Note: Fourth quarter and full year excludes impairment
charge |
|
|
|
|
|
|
|
Pentair plc
and Subsidiaries |
Reconciliation of Net Sales Growth to Core Net Sales Growth
by Vertical |
for the
quarter and year ended December 31, 2015 (Unaudited) |
|
|
|
|
|
|
|
|
|
Q4 Net Sales
Growth |
|
Full Year Net
Sales Growth |
|
Core |
Currency |
Acq. / Div. |
Total |
|
Core |
Currency |
Acq. / Div. |
Total |
Valves & Controls |
(14.9 |
)% |
(7.4 |
)% |
- |
% |
(22.3 |
)% |
|
(13.7 |
)% |
(8.9 |
)% |
- |
% |
(22.6 |
)% |
Industrial |
(11.5 |
)% |
(6.0 |
)% |
- |
% |
(17.5 |
)% |
|
(13.4 |
)% |
(6.9 |
)% |
- |
% |
(20.3 |
)% |
Energy |
(16.4 |
)% |
(8.9 |
)% |
- |
% |
(25.3 |
)% |
|
(13.9 |
)% |
(10.1 |
)% |
- |
% |
(24.0 |
)% |
Flow & Filtration Solutions |
(1.7 |
)% |
(5.9 |
)% |
- |
% |
(7.6 |
)% |
|
(3.6 |
)% |
(6.5 |
)% |
- |
% |
(10.1 |
)% |
Residential & Commercial |
(6.8 |
)% |
(4.9 |
)% |
- |
% |
(11.7 |
)% |
|
(8.2 |
)% |
(6.9 |
)% |
- |
% |
(15.1 |
)% |
Food & Beverage |
(2.3 |
)% |
(8.7 |
)% |
- |
% |
(11.0 |
)% |
|
2.3 |
% |
(8.9 |
)% |
- |
% |
(6.6 |
)% |
Infrastructure |
(2.5 |
)% |
(5.6 |
)% |
- |
% |
(8.1 |
)% |
|
(3.6 |
)% |
(6.3 |
)% |
- |
% |
(9.9 |
)% |
Water Quality Systems |
7.0 |
% |
(2.9 |
)% |
- |
% |
4.1 |
% |
|
5.0 |
% |
(3.1 |
)% |
- |
% |
1.9 |
% |
Residential & Commercial |
7.0 |
% |
(2.8 |
)% |
- |
% |
4.2 |
% |
|
4.8 |
% |
(2.9 |
)% |
- |
% |
1.9 |
% |
Food & Beverage |
9.1 |
% |
(3.0 |
)% |
- |
% |
6.1 |
% |
|
7.6 |
% |
(3.9 |
)% |
- |
% |
3.7 |
% |
Technical Solutions |
- |
% |
(5.5 |
)% |
28.9 |
% |
23.4 |
% |
|
2.3 |
% |
(6.1 |
)% |
8.5 |
% |
4.7 |
% |
Industrial |
(1.5 |
)% |
(5.3 |
)% |
9.4 |
% |
2.6 |
% |
|
0.5 |
% |
(6.5 |
)% |
2.7 |
% |
(3.3 |
)% |
Residential & Commercial |
6.5 |
% |
(5.7 |
)% |
96.2 |
% |
97.0 |
% |
|
8.4 |
% |
(7.1 |
)% |
30.2 |
% |
31.5 |
% |
Energy |
(2.5 |
)% |
(6.3 |
)% |
10.1 |
% |
1.3 |
% |
|
5.5 |
% |
(5.6 |
)% |
3.5 |
% |
3.4 |
% |
Infrastructure |
1.5 |
% |
(4.1 |
)% |
51.3 |
% |
48.7 |
% |
|
(4.9 |
)% |
(5.6 |
)% |
12.8 |
% |
2.3 |
% |
Total Pentair |
(3.9 |
)% |
(5.4 |
)% |
7.0 |
% |
(2.3 |
)% |
|
(3.9 |
)% |
(6.6 |
)% |
2.1 |
% |
(8.4 |
)% |
Industrial |
(7.7 |
)% |
(5.3 |
)% |
3.8 |
% |
(9.2 |
)% |
|
(7.4 |
)% |
(6.0 |
)% |
1.0 |
% |
(12.4 |
)% |
Residential & Commercial |
3.4 |
% |
(3.8 |
)% |
15.1 |
% |
14.7 |
% |
|
1.6 |
% |
(4.7 |
)% |
4.2 |
% |
1.1 |
% |
Energy |
(10.4 |
)% |
(8.3 |
)% |
2.5 |
% |
(16.2 |
)% |
|
(8.6 |
)% |
(8.9 |
)% |
0.7 |
% |
(16.8 |
)% |
Food & Beverage |
1.6 |
% |
(6.5 |
)% |
- |
% |
(4.9 |
)% |
|
4.2 |
% |
(7.1 |
)% |
- |
% |
(2.9 |
)% |
Infrastructure |
(0.3 |
)% |
(5.1 |
)% |
22.4 |
% |
17.0 |
% |
|
(3.6 |
)% |
(6.0 |
)% |
6.1 |
% |
(3.5 |
)% |
|
|
|
Pentair plc
and Subsidiaries |
Reconciliation of the GAAP year ended December 31,
2014 to the non-GAAP |
excluding the
effect of 2014 adjustments (Unaudited) |
|
|
|
|
|
|
|
In millions, except per-share
data |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
|
Full
Year |
Total Pentair |
|
|
|
|
|
|
Net sales |
$ |
1,644.0 |
|
$ |
1,834.1 |
|
$ |
1,758.4 |
|
$ |
1,802.5 |
|
|
$ |
7,039.0 |
|
Operating income |
182.1 |
|
226.4 |
|
267.4 |
|
176.0 |
|
|
851.9 |
|
% of net sales |
11.1 |
% |
12.3 |
% |
15.2 |
% |
9.8 |
% |
|
12.1 |
% |
Adjustments: |
|
|
|
|
|
|
Restructuring and other |
17.0 |
|
44.1 |
|
- |
|
48.5 |
|
|
109.6 |
|
Intangible asset amortization |
28.5 |
|
29.0 |
|
28.4 |
|
28.1 |
|
|
114.0 |
|
Pension and other post-retirement mark-to-market loss |
- |
|
- |
|
- |
|
49.9 |
|
|
49.9 |
|
Redomicile related expenses |
1.5 |
|
8.8 |
|
- |
|
- |
|
|
10.3 |
|
Segment income |
229.1 |
|
308.3 |
|
295.8 |
|
302.5 |
|
|
1,135.7 |
|
% of net sales |
13.9 |
% |
16.8 |
% |
16.8 |
% |
16.8 |
% |
|
16.1 |
% |
Net
income from continuing operations-as reported |
125.5 |
|
159.2 |
|
192.5 |
|
129.8 |
|
|
607.0 |
|
Adjustments, net of tax |
38.1 |
|
63.5 |
|
21.5 |
|
87.6 |
|
|
210.7 |
|
Net income from continuing operations-as
adjusted |
$ |
163.6 |
|
$ |
222.7 |
|
$ |
214.0 |
|
$ |
217.4 |
|
|
$ |
817.7 |
|
Continuing earnings per ordinary
share-diluted |
|
|
|
|
|
|
Diluted earnings per ordinary share-as reported |
$ |
0.63 |
|
$ |
0.81 |
|
$ |
1.00 |
|
$ |
0.70 |
|
|
$ |
3.14 |
|
Adjustments |
0.19 |
|
0.32 |
|
0.11 |
|
0.47 |
|
|
$ |
1.09 |
|
Diluted earnings per ordinary share-as
adjusted |
$ |
0.82 |
|
$ |
1.13 |
|
$ |
1.11 |
|
$ |
1.17 |
|
|
$ |
4.23 |
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Pentair plc via Globenewswire
HUG#1982903
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