UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 21, 2015
Commission file number 001-11625
Pentair plc
(Exact name of Registrant as specified in its charter)
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Ireland | | 98-1141328
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(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification number) |
P.O. Box 471, Sharp Street, Walkden, Manchester, M28 8BU United Kingdom
(Address of principal executive offices)
Registrant’s telephone number, including area code: 44-161-703-1885
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 Results of Operations and Financial Condition
On April 21, 2015, Pentair plc (the “Company”) issued a press release announcing its earnings for the first quarter of 2015 and a conference call in connection therewith. A copy of the release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
This press release refers to certain non-GAAP financial measures (core sales, adjusted operating income, adjusted operating margins, adjusted earnings per share from continuing operations and free cash flow) and a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in the Company’s financial statements prepared in accordance with generally accepted accounting principles.
The 2014 adjusted operating income, adjusted operating margins and adjusted earnings per share from continuing operations eliminate certain targeted restructuring activities, certain expenses related to the redomicile of the Company, "mark-to-market" loss for pension and other post-retirement plans and certain tax items.
We use the term “core sales” to refer to GAAP net sales excluding 1) the impact of currency translation and 2) the impact of revenue from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to divested product lines not considered discontinued operations (“acquisition sales”). The portion of GAAP net sales attributable to currency translation is calculated as the difference between (a) the period-to-period change in net sales (excluding acquisition sales) and (b) the period-to-period change in net sales (excluding acquisition sales) after applying current period foreign exchange rates to the prior year period. We use the term “core sales growth” to refer to the measure of comparing current period core sales with the corresponding period of the prior year. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Management utilizes these adjusted financial measures to assess the run-rate of its continuing operations against those of prior periods without the distortion of these factors. The Company believes that these non-GAAP financial measures will be useful to investors as well to assess the continuing strength of the Company’s underlying operations.
The Company uses free cash flow to assess its cash flow performance. The Company believes free cash flow is an important measure of operating performance because it provides the Company and its investors a measurement of cash generated from continuing operations that is available to pay dividends and repay debt. In addition, free cash flow is used as criterion to measure and pay compensation-based incentives. The Company’s measure of free cash flow may not be comparable to similarly titled measures reported by other companies.
ITEM 9.01 Financial Statements and Exhibits
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(a) | Financial Statements of Businesses Acquired |
Not applicable.
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(b) | Pro Forma Financial Information |
Not applicable.
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(c) | Shell Company Transactions |
Not applicable
The following exhibit is provided as part of the information furnished under Item 2.02 of this Current Report on Form 8-K:
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Exhibit | | Description |
99.1 | | Pentair plc press release dated April 21, 2015 announcing earnings results for the first quarter of 2015. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on April 21, 2015.
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| PENTAIR PLC |
| Registrant |
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| By | /s/ John L. Stauch |
| | John L. Stauch |
| | Executive Vice President and Chief Financial Officer |
PENTAIR PLC
Exhibit Index to Current Report on Form 8-K
Dated April 21, 2015
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Exhibit Number | | Description |
99.1 | | Pentair plc press release dated April 21, 2015 announcing earnings results for the first quarter of 2015. |
Exhibit 99.1
News Release
Pentair Reports First Quarter 2015 Results
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• | First quarter sales of $1.5 billion. Total sales declined 10 percent consisting of a 4 percent decline in core sales and negative FX translation of 6 percent. |
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• | EPS declined 8 percent to $0.65 and adjusted operating margins declined 60 basis points to 11.6 percent compared to first quarter 2014 adjusted results. |
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• | Free cash flow usage of $159 million in the quarter and the company expects to deliver full year free cash flow greater than 120 percent of net income. |
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• | The company updates 2015 adjusted EPS guidance to approximately $3.80 from a range of $4.10 - $4.25. |
Reconciliations of GAAP to Non-GAAP measures are in the attached financial tables.
MANCHESTER, United Kingdom — April 21, 2015— Pentair plc (NYSE: PNR) today announced first quarter 2015 sales of $1.5 billion. Sales were down 10 percent compared to sales for the same period last year. First quarter 2015 earnings per diluted share from continuing operations (“EPS”) were $0.65, down 8 percent from adjusted EPS of $0.71 in the first quarter of last year. Adjusted EPS, adjusted operating income, and segment income exclude redomicile-related expenses and restructuring costs.
“We started the year much slower than we had originally anticipated as a decline in oil prices and the strengthening dollar have led many of our customers to delay business in what feels like a global capital spending pause,” said Randall J. Hogan, Pentair Chairman and Chief Executive Officer. "We believe that Pentair is in the right markets for the long term and we have detailed plans in place to work through the anticipated near term challenges.”
First quarter 2015 operating income was $171 million, down 15 percent compared to adjusted operating income for first quarter 2014, and adjusted operating margins were 11.6 percent, a decline of 60 basis points when compared to adjusted first quarter 2014 operating margins.
Free cash flow in the quarter was a usage of $159 million, reflecting normal seasonality and timing of cash flows. The company expects to deliver full year free cash flow greater than 120 percent of net income.
Pentair paid dividends of $0.32 per share in the first quarter of 2015. Pentair previously announced on December 10, 2014 that its Board of Directors approved a 16 percent increase in the company's regular annual cash dividend rate for 2015 to $1.28 from $1.10. 2015 marks the 39th consecutive year that Pentair has increased its dividend.
FIRST QUARTER BUSINESS HIGHLIGHTS
All references to changes in core sales exclude the impact of currency translation. See attached reconciliations of these Non-GAAP measures.
Valves & Controls delivered first quarter 2015 sales of $429 million, down 19 percent versus the prior year quarter. Core sales declined 11 percent year over year for the first quarter and negative FX translation was 8 percent. Backlog decreased 4 percent to $1.2 billion compared to fourth quarter 2014.
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• | Core sales in the Energy vertical, which accounted for approximately 60 percent of Valves & Controls revenue in the quarter, decreased 12 percent. Core sales to the oil & gas industry were down 11 percent while core sales to the power industry decreased 6 percent. Core sales to the mining industry decreased 26 percent. |
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• | Core sales in the Industrial vertical, which accounted for approximately 40 percent of Valves & Controls revenue in the quarter, decreased 10 percent. |
Valves & Controls delivered first quarter segment income of $42 million, down 31 percent compared to $61 million in the same quarter last year. First quarter segment margins decreased 170 basis points to 9.8 percent.
Flow & Filtration Solutions first quarter sales were $350 million, down 13 percent versus the prior year quarter. Core sales declined 7 percent in the first quarter and negative FX translation was 6 percent.
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• | Core sales in the Residential & Commercial vertical, which accounted for approximately 35 percent of Flow & Filtration Solutions revenue in the quarter, decreased 11 percent. |
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• | Core sales in the Food & Beverage vertical, which accounted for approximately 30 percent of Flow & Filtration Solutions revenue in the quarter, decreased 2 percent. |
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• | Core sales in the Infrastructure vertical, which accounted for approximately 15 percent of Flow & Filtration Solutions revenue in the quarter, decreased 14 percent. |
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• | Core sales in the Industrial vertical, which accounted for approximately 15 percent of Flow & Filtration Solutions revenue in the quarter, decreased 1 percent. |
Flow & Filtration Solutions first quarter segment income of $29 million represented a 16 percent decrease as compared to $35 million in the same period last year. Segment margins decreased by 40 basis points to 8.3 percent.
Water Quality Systems delivered first quarter 2015 sales of $307 million, up 1 percent versus the prior year quarter. Core sales grew 4 percent in the first quarter and negative FX translation was 3 percent.
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• | Core sales in the Residential & Commercial vertical, which accounted for approximately 80 percent of Water Quality Systems revenue in the quarter, increased 3 percent. |
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• | Core sales in the Food & Beverage vertical, which accounted for approximately 20 percent of Water Quality Systems revenue in the quarter, increased 11 percent. |
Water Quality Systems delivered first quarter segment income of $49 million, represented a 3 percent increase compared to $48 million in the same quarter last year. First quarter 2015 segment margins increased 40 basis points to 16.1 percent.
Technical Solutions delivered first quarter 2015 sales of $396 million, down 5 percent versus the prior year quarter. Core sales grew 1 percent in the first quarter and negative FX translation was 6 percent.
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• | Core sales in the Industrial vertical, which accounted for approximately 45 percent of Technical Solutions revenue in the quarter, were flat. |
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• | Core sales in the Energy vertical, which accounted for approximately 25 percent of Technical Solutions revenue in the quarter, increased 2 percent. |
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• | Core sales in the Residential & Commercial vertical, which accounted for approximately 15 percent of Technical Solutions revenue in the quarter, increased 7 percent. |
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• | 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 first quarter segment income of $73 million, down 8 percent compared to $79 million in the same quarter last year. First quarter 2015 segment margins decreased 70 basis points to 18.4 percent.
OUTLOOK
The company updated its full year 2015 adjusted EPS guidance to approximately $3.80, which represents an increase of approximately one percent from 2014 adjusted EPS of $3.78. The company anticipates full year 2015 sales of $6.5 billion, or down approximately 8 to 9 percent over 2014 sales. The company expects to generate free cash flow in excess of 120 percent of net income in 2015.
“Given the significantly slower start to the year, we are adjusting our expectations for the full year,” said Hogan. "We have rebuilt our plan for the full year to deliver adjusted EPS to be at least flat compared to last year. Although the economic headwinds have worsened, we are focusing on the elements within our control. This includes getting more aggressive on cost actions, continuing to invest in differentiated growth, and select M&A where appropriate.”
In addition, the company introduced second quarter 2015 adjusted EPS guidance of $0.95 - $0.96, down approximately 6 percent on an adjusted basis versus the same quarter last year's adjusted EPS. The company expects second quarter revenue to be approximately $1.64 billion, which would be down approximately 10 to 11 percent on a reported basis and down 3 to 4 percent on a core basis compared to second quarter 2014 revenue.
EARNINGS CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will discuss the company’s performance and first quarter 2015 results 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 the ability to achieve the benefits of planned cost take-out actions, the ability to successfully complete the disposition of our Water Transport business on anticipated terms and timetable; overall global economic and business conditions; 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 ability to successfully identify, complete and integrate acquisitions; 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, including in our 2014 Annual Report on Form 10-K. All forward-looking statements speak only as of the date of this press release. We assume no obligation, and disclaim any obligation, to update the information contained in this press release.
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 2014 revenues of $7.0 billion, Pentair employs approximately 30,000 people worldwide.
PENTAIR CONTACTS:
Jim Lucas
Vice President, Investor Relations
Direct: 763-656-5575
Email: jim.lucas@pentair.com
Rebecca Osborn
Senior Manager, External Communications
Direct: 763-656-5589
Email: rebecca.osborn@pentair.com
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Pentair plc and Subsidiaries |
Condensed Consolidated Statements of Operations (Unaudited) |
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| Three months ended |
In millions, except per-share data | March 28,
2015 | March 29,
2014 |
Net sales | $ | 1,475.0 |
| $ | 1,644.0 |
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Cost of goods sold | 964.8 |
| 1,079.9 |
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Gross profit | 510.2 |
| 564.1 |
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% of net sales | 34.6 | % | 34.3 | % |
Selling, general and administrative | 309.2 |
| 352.5 |
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% of net sales | 21.0 | % | 21.4 | % |
Research and development | 29.8 |
| 29.5 |
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% of net sales | 2.0 | % | 1.8 | % |
Operating income | 171.2 |
| 182.1 |
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% of net sales | 11.6 | % | 11.1 | % |
Other (income) expense: | | |
Equity income of unconsolidated subsidiaries | (0.5 | ) | (0.3 | ) |
Net interest expense | 18.2 |
| 16.1 |
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% of net sales | 1.2 | % | 1.0 | % |
Income from continuing operations before income taxes | 153.5 |
| 166.3 |
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Provision for income taxes | 35.3 |
| 40.8 |
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Effective tax rate | 23.0 | % | 24.5 | % |
Net income from continuing operations | 118.2 |
| 125.5 |
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Loss from discontinued operations, net of tax | (4.3 | ) | (1.3 | ) |
Loss from sale / impairment of discontinued operations, net of tax | — |
| (5.6 | ) |
Net income | $ | 113.9 |
| $ | 118.6 |
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Earnings (loss) per ordinary share | | |
Basic | | |
Continuing operations | $ | 0.66 |
| $ | 0.64 |
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Discontinued operations | (0.03 | ) | (0.04 | ) |
Basic earnings per ordinary share | $ | 0.63 |
| $ | 0.60 |
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Diluted | | |
Continuing operations | $ | 0.65 |
| $ | 0.63 |
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Discontinued operations | (0.03 | ) | (0.04 | ) |
Diluted earnings per ordinary share | $ | 0.62 |
| $ | 0.59 |
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Weighted average ordinary shares outstanding | | |
Basic | 180.1 |
| 196.2 |
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Diluted | 182.7 |
| 199.7 |
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Cash dividends paid per ordinary share | $ | 0.32 |
| $ | 0.25 |
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Pentair plc and Subsidiaries |
Condensed Consolidated Balance Sheets (Unaudited) |
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| March 28,
2015 | December 31,
2014 |
In millions |
Assets |
Current assets | | |
Cash and cash equivalents | $ | 131.1 |
| $ | 110.4 |
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Accounts and notes receivable, net | 1,247.5 |
| 1,205.9 |
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Inventories | 1,177.0 |
| 1,130.4 |
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Other current assets | 412.5 |
| 366.8 |
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Current assets held for sale | 8.8 |
| 80.6 |
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Total current assets | 2,976.9 |
| 2,894.1 |
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Property, plant and equipment, net | 915.4 |
| 950.0 |
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Other assets | | |
Goodwill | 4,671.8 |
| 4,741.9 |
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Intangibles, net | 1,559.1 |
| 1,608.1 |
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Other non-current assets | 420.3 |
| 436.2 |
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Non-current assets held for sale | 25.9 |
| 24.9 |
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Total other assets | 6,677.1 |
| 6,811.1 |
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Total assets | $ | 10,569.4 |
| $ | 10,655.2 |
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Liabilities and Equity |
Current liabilities | | |
Current maturities of long-term debt and short-term borrowings | $ | 5.6 |
| $ | 6.7 |
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Accounts payable | 504.9 |
| 583.1 |
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Employee compensation and benefits | 254.9 |
| 305.5 |
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Other current liabilities | 654.2 |
| 709.1 |
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Current liabilities held for sale | 11.5 |
| 35.1 |
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Total current liabilities | 1,431.1 |
| 1,639.5 |
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Other liabilities | | |
Long-term debt | 3,403.4 |
| 2,997.4 |
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Pension and other post-retirement compensation and benefits | 300.9 |
| 322.0 |
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Deferred tax liabilities | 516.3 |
| 528.3 |
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Other non-current liabilities | 490.4 |
| 497.7 |
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Non-current liabilities held for sale | 4.0 |
| 6.5 |
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Total liabilities | 6,146.1 |
| 5,991.4 |
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Equity | 4,423.3 |
| 4,663.8 |
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Total liabilities and equity | $ | 10,569.4 |
| $ | 10,655.2 |
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Pentair plc and Subsidiaries |
Condensed Consolidated Statements of Cash Flows (Unaudited) |
| Three months ended |
In millions | March 28,
2015 | March 29,
2014 |
Operating activities | | |
Net income | $ | 113.9 |
| $ | 118.6 |
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Loss from discontinued operations, net of tax | 4.3 |
| 1.3 |
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Loss from sale / impairment of discontinued operations, net of tax | — |
| 5.6 |
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Adjustments to reconcile net income from continuing operations to net cash provided by (used for) operating activities of continuing operations | | |
Equity income of unconsolidated subsidiaries | (0.5 | ) | (0.3 | ) |
Depreciation | 32.4 |
| 34.8 |
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Amortization | 27.6 |
| 28.5 |
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Deferred income taxes | 5.7 |
| (1.4 | ) |
Share-based compensation | 9.7 |
| 7.4 |
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Excess tax benefits from share-based compensation | (2.8 | ) | (6.1 | ) |
Loss (gain) on sale of assets | (1.2 | ) | 0.3 |
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Changes in assets and liabilities, net of effects of business acquisitions | | |
Accounts and notes receivable | (85.8 | ) | (76.9 | ) |
Inventories | (88.2 | ) | (34.5 | ) |
Other current assets | (71.0 | ) | (32.2 | ) |
Accounts payable | (60.2 | ) | (35.7 | ) |
Employee compensation and benefits | (33.7 | ) | (49.3 | ) |
Other current liabilities | 38.8 |
| 33.4 |
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Other non-current assets and liabilities | (15.2 | ) | (6.2 | ) |
Net cash provided by (used for) operating activities of continuing operations | (126.2 | ) | (12.7 | ) |
Net cash provided by (used for) operating activities of discontinued operations | (7.0 | ) | 15.2 |
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Net cash provided by (used for) operating activities | (133.2 | ) | 2.5 |
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Investing activities | | |
Capital expenditures | (34.8 | ) | (27.2 | ) |
Proceeds from sale of property and equipment | 2.3 |
| 0.4 |
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Acquisitions, net of cash acquired | (3.0 | ) | — |
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Other | — |
| (0.5 | ) |
Net cash provided by (used for) investing activities of continuing operations | (35.5 | ) | (27.3 | ) |
Net cash provided by (used for) investing activities of discontinued operations | 54.9 |
| — |
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Net cash provided by (used for) investing activities | 19.4 |
| (27.3 | ) |
Financing activities | | |
Net receipts of short-term borrowings | — |
| 0.3 |
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Net receipts of commercial paper and revolving long-term debt | 406.0 |
| 381.9 |
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Repayments of long-term debt | (0.4 | ) | (0.9 | ) |
Excess tax benefits from share-based compensation | 2.8 |
| 6.1 |
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Shares issued to employees, net of shares withheld | 8.7 |
| 24.0 |
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Repurchases of ordinary shares | (200.0 | ) | (252.2 | ) |
Dividends paid | (57.5 | ) | (49.2 | ) |
Purchase of noncontrolling interest | — |
| (134.7 | ) |
Net cash provided by (used for) financing activities | 159.6 |
| (24.7 | ) |
Effect of exchange rate changes on cash and cash equivalents | (25.1 | ) | (2.6 | ) |
Change in cash and cash equivalents | 20.7 |
| (52.1 | ) |
Cash and cash equivalents, beginning of period | 110.4 |
| 256.0 |
|
Cash and cash equivalents, end of period | $ | 131.1 |
| $ | 203.9 |
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Free cash flow | | |
Net cash provided by (used for) operating activities of continuing operations | $ | (126.2 | ) | $ | (12.7 | ) |
Capital expenditures | (34.8 | ) | (27.2 | ) |
Proceeds from sale of property and equipment | 2.3 |
| 0.4 |
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Free cash flow | $ | (158.7 | ) | $ | (39.5 | ) |
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Pentair plc and Subsidiaries |
Supplemental Financial Information by Reportable Segment (Unaudited) |
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| 2015 | | 2014 |
In millions | First Quarter | | First Quarter |
Net sales | | | |
Valves & Controls | $ | 429.2 |
| | $ | 531.0 |
|
Flow & Filtration Solutions | 350.1 |
| | 401.1 |
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Water Quality Systems | 306.9 |
| | 304.0 |
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Technical Solutions | 395.8 |
| | 415.3 |
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Other | (7.0 | ) | | (7.4 | ) |
Consolidated | $ | 1,475.0 |
| | $ | 1,644.0 |
|
Segment income (loss) | | | |
Valves & Controls | $ | 42.0 |
| | $ | 60.9 |
|
Flow & Filtration Solutions | 29.1 |
| | 34.7 |
|
Water Quality Systems | 49.3 |
| | 47.7 |
|
Technical Solutions | 72.7 |
| | 79.0 |
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Other | (21.9 | ) | | (21.7 | ) |
Consolidated | $ | 171.2 |
| | $ | 200.6 |
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Segment income as a percent of net sales | | | |
Valves & Controls | 9.8 | % | | 11.5 | % |
Flow & Filtration Solutions | 8.3 | % | | 8.7 | % |
Water Quality Systems | 16.1 | % | | 15.7 | % |
Technical Solutions | 18.4 | % | | 19.1 | % |
Consolidated | 11.6 | % | | 12.2 | % |
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Pentair plc and Subsidiaries |
Reconciliation of the GAAP “As Reported” year ended December 31, 2015 to the “Adjusted” non-GAAP |
excluding the effect of 2015 adjustments (Unaudited) |
| | | | | | | |
| Actual | | Forecast |
In millions, except per-share data | First Quarter | | Second Quarter | | Full Year |
Total Pentair | | | | | | | |
Net sales | $ | 1,475.0 |
| | approx | $ | 1,640 |
| | approx | $ | 6,470 |
|
Operating income—as reported | 171.2 |
| | approx | 207 |
| | approx | 913 |
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% of net sales | 11.6 | % | | approx | 12.6 | % | | approx | 14.1 | % |
Adjustments: | | | |
|
| |
|
|
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Restructuring and other | — |
| | approx | 40 |
| | approx | 60 |
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Operating income—as adjusted | 171.2 |
| | approx | 247 |
| | approx | 973 |
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% of net sales | 11.6 | % | | approx | 15.1 | % | | approx | 15.0 | % |
Net income from continuing operations—as reported | 118.2 |
| | approx | 144 |
| | approx | 647 |
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Adjustments, net of tax | — |
| | approx | 31 |
| | approx | 46 |
|
Net income from continuing operations—as adjusted | $ | 118.2 |
| | approx | 175 |
| | approx | $ | 693 |
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Continuing earnings per ordinary share—diluted | | | |
|
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|
|
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Diluted earnings per ordinary share—as reported | $ | 0.65 |
| | approx | $ 0.78 - 0.79 |
| | approx | $ | 3.55 |
|
Adjustments | — |
| | approx | 0.17 |
| | approx | 0.25 |
|
Diluted earnings per ordinary share—as adjusted | $ | 0.65 |
| | approx | $ 0.95 - 0.96 |
| | approx | $ | 3.80 |
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Pentair plc and Subsidiaries |
Reconciliation of Net Sales Growth to Core Net Sales Growth by Vertical |
for the quarter ending March 28, 2015 (Unaudited) |
| Q1 Net Sales Growth |
| Core | Currency | Acq./ Div. | Total |
Valves & Controls | (11.1 | )% | (8.1 | )% | — | % | (19.2 | )% |
Industrial | (9.7 | )% | (6.2 | )% | — | % | (15.9 | )% |
Energy | (12.0 | )% | (9.3 | )% | — | % | (21.3 | )% |
Flow & Filtration Solutions | (6.5 | )% | (6.2 | )% | — | % | (12.7 | )% |
Industrial | (0.6 | )% | (3.8 | )% | — | % | (4.4 | )% |
Residential & Commercial | (11.3 | )% | (7.1 | )% | — | % | (18.4 | )% |
Food & Beverage | (1.6 | )% | (8.8 | )% | — | % | (10.4 | )% |
Infrastructure | (13.7 | )% | (2.5 | )% | — | % | (16.2 | )% |
Water Quality Systems | 4.1 | % | (3.2 | )% | — | % | 0.9 | % |
Residential & Commercial | 3.2 | % | (2.9 | )% | — | % | 0.3 | % |
Food & Beverage | 11.5 | % | (3.9 | )% | — | % | 7.6 | % |
Technical Solutions | 1.5 | % | (6.2 | )% | — | % | (4.7 | )% |
Industrial | (0.2 | )% | (6.5 | )% | — | % | (6.7 | )% |
Residential & Commercial | 7.0 | % | (8.2 | )% | — | % | (1.2 | )% |
Energy | 1.8 | % | (4.5 | )% | — | % | (2.7 | )% |
Infrastructure | 2.1 | % | (6.5 | )% | — | % | (4.4 | )% |
Total Pentair | (4.0 | )% | (6.3 | )% | — | % | (10.3 | )% |
Industrial | (4.6 | )% | (6.0 | )% | — | % | (10.6 | )% |
Residential & Commercial | (0.8 | )% | (4.9 | )% | — | % | (5.7 | )% |
Energy | (8.9 | )% | (7.9 | )% | — | % | (16.8 | )% |
Food & Beverage | 2.5 | % | (7.1 | )% | — | % | (4.6 | )% |
Infrastructure | (5.3 | )% | (4.6 | )% | — | % | (9.9 | )% |
|
| | | | | | | | | | | | | | | | |
Pentair plc and Subsidiaries |
Reconciliation of the GAAP “As Reported” year ended December 31, 2014 to the “Adjusted” 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—as reported | 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 |
|
Pension and other post-retirement mark-to-market loss | — |
| — |
| — |
| 49.9 |
| | 49.9 |
|
Redomicile related expenses | 1.5 |
| 8.8 |
| — |
| — |
| | 10.3 |
|
Operating income—as adjusted | 200.6 |
| 279.3 |
| 267.4 |
| 274.4 |
| | 1,021.7 |
|
% of net sales | 12.2 | % | 15.2 | % | 15.2 | % | 15.2 | % | | 14.5 | % |
Net income from continuing operations—as reported | 125.5 |
| 159.2 |
| 192.5 |
| 129.8 |
| | 607.0 |
|
Adjustments, net of tax | 16.4 |
| 41.5 |
| — |
| 66.8 |
| | 124.7 |
|
Net income from continuing operations—as adjusted | $ | 141.9 |
| $ | 200.7 |
| $ | 192.5 |
| $ | 196.6 |
| | $ | 731.7 |
|
Continuing earnings per ordinary share—diluted | | | | | | |
Diluted earnings per ordinary share—as reported | $ | 0.63 |
| $ | 0.81 |
| $ | 1.00 |
| $ | 0.70 |
| | $ | 3.14 |
|
Adjustments | 0.08 |
| 0.21 |
| — |
| 0.36 |
| | 0.64 |
|
Diluted earnings per ordinary share—as adjusted | $ | 0.71 |
| $ | 1.02 |
| $ | 1.00 |
| $ | 1.06 |
| | $ | 3.78 |
|
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