· Third
quarter sales of $1.6 billion. Total sales declined 12
percent consisting of a 5 percent decline in core sales and FX
translation impact of negative 7 percent.
·
Adjusted EPS decreased 13 percent to $0.97 and adjusted operating
margins declined 70 basis points to 16.1 percent compared to third
quarter 2014 adjusted results.
· Free
cash flow was $176 million in the quarter and the company expects
to deliver full year free cash flow equal to approximately 100
percent of adjusted net income.
·
Beginning last quarter, Pentair started excluding non-cash
intangible amortization from adjusted EPS guidance to better
reflect the company's performance.
· The
company updates 2015 adjusted EPS guidance to a range of $3.84 -
$3.86. This excludes approximately $0.50 per share of
non-cash intangible amortization. The company's prior
adjusted EPS guidance of $3.80 - $3.90 also excludes non-cash
intangible amortization.
Reconciliations of GAAP to
Non-GAAP measures are in the attached financial tables.
MANCHESTER, United Kingdom - October 20, 2015
- Pentair plc (NYSE: PNR) today announced third quarter 2015 sales
of $1.6 billion. Sales were down 12 percent compared to sales for
the same period last year. Adjusted third quarter 2015 earnings per
diluted share from continuing operations ("EPS") were $0.97, down
13 percent from adjusted EPS of $1.11 in the third quarter of last
year. On a GAAP basis, the company reported EPS of $0.63
compared to EPS of $1.00 in the third quarter of 2014.
Amounts excluded from adjusted EPS, adjusted net income, adjusted
operating income and segment income are described in the attached
schedules.
"Our third quarter results were in line with our
previously communicated expectations as three of our four segments
delivered solid margin improvement," said Randall J. Hogan, Pentair
Chairman and Chief Executive Officer. "Our sales into the
Residential & Commercial and Food & Beverage verticals
remained healthy as we continued to face ongoing challenges in the
Energy and Industrial verticals. We continue to drive
productivity and adjust our cost structure aggressively as we
manage these ongoing challenges, particularly within our Valves
& Controls business. We are pleased to have closed the
acquisition of ERICO during the quarter and our integration efforts
are underway. We are focused on delivering strong cash flow
and reducing our balance sheet leverage. We remain committed
to delivering long-term shareholder value."
Third quarter 2015 adjusted operating income was
$249 million, down 16 percent compared to the same period last
year, and adjusted operating margins were 16.1 percent, a decline
of 70 basis points when compared to adjusted third quarter 2014
operating margins.
Free cash flow in the quarter was $176 million and
was $327 million for the first nine months of 2015. The
company expects to deliver full year free cash flow equal to
approximately 100 percent of adjusted net income.
Pentair paid dividends of $0.32 per share in the
third 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.
THIRD 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 third quarter 2015 sales of $441 million, down 28 percent
versus the prior year quarter. Core sales declined 18 percent year
over year for the third quarter and FX translation was negative 10
percent. Backlog including FX decreased 3 percent sequentially to
$1.2 billion.
· Core
sales in the Energy vertical, which accounted for approximately 60
percent of Valves & Controls revenue in the quarter,
decreased 17 percent. Core sales to the oil & gas industry
were down 17 percent while core sales to the power industry
decreased 18 percent. Core sales to the mining industry
decreased 30 percent.
· Core
sales in the Industrial vertical, which accounted for approximately
40 percent of Valves & Controls revenue in the quarter,
decreased 18 percent.
Valves & Controls delivered third quarter
segment income of $56 million, down 48 percent compared to $108
million in the same quarter last year. Third quarter segment
margins decreased 510 basis points to 12.6 percent.
Flow & Filtration
Solutions third quarter sales were $363 million, down 8 percent
versus the prior year quarter. Core sales declined 1 percent in the
third quarter and FX translation was negative 7 percent.
· Core
sales in the Residential & Commercial vertical, which
accounted for approximately 35 percent of Flow & Filtration
Solutions revenue in the quarter, decreased 5 percent.
· Core
sales in the Food & Beverage vertical, which accounted for
approximately 30 percent of Flow & Filtration Solutions revenue
in the quarter, increased 11 percent.
· Core
sales in the Infrastructure vertical, which accounted for
approximately 15 percent of Flow & Filtration Solutions revenue
in the quarter, increased 6 percent.
· Core
sales in the Industrial vertical, which accounted for approximately
15 percent of Flow & Filtration Solutions revenue in the
quarter, decreased 19 percent.
Flow & Filtration Solutions third quarter
segment income of $53 million was flat as compared to the same
period last year. Segment margins increased by 100 basis points to
14.6 percent.
Water Quality Systems
delivered third quarter 2015 sales of $322 million, down 1 percent
versus the prior year quarter. Core sales grew 3 percent in the
third quarter and FX translation was negative 4 percent.
· Core
sales in the Residential & Commercial vertical, which accounted
for approximately 85 percent of Water Quality Systems revenue in
the quarter, increased 4 percent.
· Core
sales in the Food & Beverage vertical, which accounted for
approximately 15 percent of Water Quality Systems revenue in the
quarter was flat.
Water Quality Systems delivered third quarter
segment income of $61 million, which represented an 8 percent
increase compared to $56 million in the same quarter last year.
Third quarter 2015 segment margins increased 150 basis points to
18.8 percent.
Technical Solutions delivered
third quarter 2015 sales of $432 million, down 1 percent versus the
prior year quarter. Core sales grew 2 percent, acquisitions
contributed an additional 3 percent in the third quarter, and FX
translation was negative 6 percent.
· Core
sales in the Industrial vertical, which accounted for approximately
45 percent of Technical Solutions revenue in the quarter, decreased
1 percent.
· Core
sales in the Energy vertical, which accounted for approximately 25
percent of Technical Solutions revenue in the quarter, increased 9
percent.
· Core
sales in the Residential & Commercial vertical, which accounted
for approximately 20 percent of Technical Solutions revenue in the
quarter, increased 9 percent.
· Core
sales in the Infrastructure vertical, which accounted for
approximately 10 percent of Technical Solutions revenue in the
quarter, decreased 17 percent.
Technical Solutions delivered third quarter
segment income of $101 million, flat compared to $101 million in
the same quarter last year. Third quarter 2015 segment margins
increased 30 basis points to 23.4 percent.
OUTLOOK
The company updated its full year 2015 adjusted
EPS guidance to a range of $3.84 - $3.86, which excludes
approximately $0.50 per share of non-cash intangible
amortization. The prior 2015 adjusted EPS guidance of $3.80 -
$3.90 excluded non-cash intangible amortization. On a
comparable basis to the company's updated guidance, 2014 adjusted
EPS was $4.23 excluding $0.45 of non-cash intangible
amortization. The company anticipates full year 2015 sales of
$6.4 billion, or down approximately 9 percent compared to 2014
sales on a reported basis and down 4 percent on a core basis.
The company expects to generate free cash flow equal to
approximately 100 percent of adjusted net income in 2015.
Pentair excludes non-cash intangible amortization
from adjusted EPS guidance to better reflect the company's
performance. The company introduced fourth quarter 2015
adjusted EPS guidance of $1.03 - $1.05, which excludes $0.17 of
non-cash intangible amortization, and down approximately 10 to 12
percent versus the same quarter last year's adjusted EPS. The
company expects fourth quarter revenue to be approximately $1.7
billion, which would be down approximately 3 percent on a reported
basis and down 5 percent on a core basis excluding FX translation
and acquisitions compared to fourth 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 third 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
identify, complete and integrate acquisitions, including the
ability to successfully integrate and achieve the expected benefits
of the acquisition of ERICO Global Company; 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
complete the disposition of the remaining portion of the Water
Transport business on anticipated terms and timetable; 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 & 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 |
|
Nine months ended |
In millions, except per-share
data |
September 26,
2015 |
September 27,
2014 |
|
September 26,
2015 |
September 27,
2014 |
Net sales |
$ |
1,552.1 |
|
$ |
1,758.4 |
|
|
$ |
4,688.3 |
|
$ |
5,236.5 |
|
Cost
of goods sold |
1,012.0 |
|
1,133.7 |
|
|
3,071.8 |
|
3,401.4 |
|
Gross profit |
540.1 |
|
624.7 |
|
|
1,616.5 |
|
1,835.1 |
|
% of net sales |
34.8 |
% |
35.5 |
% |
|
34.5 |
% |
35.0 |
% |
Selling, general and administrative |
330.2 |
|
328.8 |
|
|
958.7 |
|
1,071.0 |
|
% of net sales |
21.3 |
% |
18.8 |
% |
|
20.5 |
% |
20.6 |
% |
Research and development |
29.9 |
|
28.5 |
|
|
88.7 |
|
88.2 |
|
% of net sales |
1.9 |
% |
1.6 |
% |
|
1.9 |
% |
1.7 |
% |
Operating income |
180.0 |
|
267.4 |
|
|
569.1 |
|
675.9 |
|
% of net sales |
11.6 |
% |
15.2 |
% |
|
12.1 |
% |
12.9 |
% |
Other (income) expense: |
|
|
|
|
|
Equity
income of unconsolidated subsidiaries |
(0.9 |
) |
(0.3 |
) |
|
(2.0 |
) |
(0.9 |
) |
Loss on sale of business |
- |
|
- |
|
|
- |
|
0.2 |
|
Net
interest expense |
31.3 |
|
17.1 |
|
|
68.1 |
|
51.1 |
|
% of net sales |
2.0 |
% |
1.0 |
% |
|
1.5 |
% |
1.0 |
% |
Income
from continuing operations before income taxes |
149.6 |
|
250.6 |
|
|
503.0 |
|
625.5 |
|
Provision for income taxes |
34.4 |
|
58.1 |
|
|
115.7 |
|
148.3 |
|
Effective tax rate |
23.0 |
% |
23.2 |
% |
|
23.0 |
% |
23.7 |
% |
Net income from continuing
operations |
115.2 |
|
192.5 |
|
|
387.3 |
|
477.2 |
|
Income
(loss) from discontinued operations, net of tax |
- |
|
1.6 |
|
|
(5.6 |
) |
2.6 |
|
Loss from sale / impairment of discontinued operations,
net of tax |
- |
|
(380.1 |
) |
|
(4.8 |
) |
(385.7 |
) |
Net income (loss) |
$ |
115.2 |
|
$ |
(186.0 |
) |
|
$ |
376.9 |
|
$ |
94.1 |
|
Earnings (loss) per ordinary
share |
|
|
|
|
|
Basic |
|
|
|
|
|
Continuing operations |
$ |
0.64 |
|
$ |
1.01 |
|
|
$ |
2.15 |
|
$ |
2.47 |
|
Discontinued operations |
- |
|
(1.99 |
) |
|
(0.06 |
) |
(1.98 |
) |
Basic earnings (loss) per ordinary share |
$ |
0.64 |
|
$ |
(0.98 |
) |
|
$ |
2.09 |
|
$ |
0.49 |
|
Diluted |
|
|
|
|
|
Continuing operations |
$ |
0.63 |
|
$ |
1.00 |
|
|
$ |
2.12 |
|
$ |
2.43 |
|
Discontinued operations |
- |
|
(1.95 |
) |
|
(0.06 |
) |
(1.95 |
) |
Diluted earnings (loss) per ordinary share |
$ |
0.63 |
|
$ |
(0.95 |
) |
|
$ |
2.06 |
|
$ |
0.48 |
|
Weighted average ordinary shares
outstanding |
|
|
|
|
|
Basic |
180.2 |
|
190.2 |
|
|
180.1 |
|
193.2 |
|
Diluted |
182.6 |
|
193.1 |
|
|
182.6 |
|
196.4 |
|
Cash dividends paid per ordinary
share |
$ |
0.32 |
|
$ |
0.30 |
|
|
$ |
0.96 |
|
$ |
0.80 |
|
|
|
|
|
|
|
Pentair plc
and Subsidiaries |
|
Condensed
Consolidated Balance Sheets (Unaudited) |
|
|
|
|
|
|
September
26,
2015 |
December
31,
2014 |
|
In millions |
|
Assets |
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
144.9 |
|
$ |
110.4 |
|
|
Accounts and notes receivable, net |
1,136.5 |
|
1,205.9 |
|
|
Inventories |
1,296.2 |
|
1,130.4 |
|
|
Other
current assets |
385.7 |
|
366.8 |
|
|
Current assets held for sale |
0.9 |
|
80.6 |
|
|
Total current assets |
2,964.2 |
|
2,894.1 |
|
|
Property, plant and equipment,
net |
921.4 |
|
950.0 |
|
|
Other assets |
|
|
|
Goodwill |
5,827.4 |
|
4,741.9 |
|
|
Intangibles, net |
2,515.6 |
|
1,608.1 |
|
|
Other non-current assets |
426.7 |
|
436.2 |
|
|
Non-current assets held for sale |
15.6 |
|
24.9 |
|
|
Total other assets |
8,785.3 |
|
6,811.1 |
|
|
Total assets |
$ |
12,670.9 |
|
$ |
10,655.2 |
|
|
Liabilities and Equity |
|
Current liabilities |
|
|
|
Current maturities of long-term debt and short-term
borrowings |
$ |
3.2 |
|
$ |
6.7 |
|
|
Accounts payable |
531.0 |
|
583.1 |
|
|
Employee compensation and benefits |
264.6 |
|
305.5 |
|
|
Other
current liabilities |
693.9 |
|
709.1 |
|
|
Current liabilities held for sale |
3.5 |
|
35.1 |
|
|
Total current liabilities |
1,496.2 |
|
1,639.5 |
|
|
Other liabilities |
|
|
|
Long-term debt |
4,983.2 |
|
2,997.4 |
|
|
Pension and other post-retirement compensation and
benefits |
301.6 |
|
322.0 |
|
|
Deferred tax liabilities |
827.9 |
|
528.3 |
|
|
Other non-current liabilities |
525.6 |
|
497.7 |
|
|
Non-current liabilities held for sale |
0.5 |
|
6.5 |
|
|
Total liabilities |
8,135.0 |
|
5,991.4 |
|
|
Equity |
4,535.9 |
|
4,663.8 |
|
|
Total liabilities and
equity |
$ |
12,670.9 |
|
$ |
10,655.2 |
|
|
|
|
|
Pentair plc
and Subsidiaries |
Condensed
Consolidated Statements of Cash Flows (Unaudited) |
|
Nine months ended |
In millions |
September
26,
2015 |
September
27,
2014 |
Operating activities |
|
|
Net
income |
$ |
376.9 |
|
$ |
94.1 |
|
Loss (income) from discontinued operations, net of
tax |
5.6 |
|
(2.6 |
) |
Loss from
sale / impairment of discontinued operations, net of tax |
4.8 |
|
385.7 |
|
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 |
(2.0 |
) |
(0.9 |
) |
Depreciation |
101.4 |
|
103.9 |
|
Amortization |
83.8 |
|
85.9 |
|
Deferred income taxes |
1.9 |
|
6.7 |
|
Share-based compensation |
27.5 |
|
24.8 |
|
Excess tax benefits from share-based compensation |
(6.0 |
) |
(10.0 |
) |
Amortization of bridge financing fees |
10.8 |
|
- |
|
Loss (gain) on sales of assets and businesses |
(7.7 |
) |
1.2 |
|
Changes in assets and liabilities, net of effects of
business acquisitions |
|
|
Accounts and notes receivable |
85.8 |
|
71.5 |
|
Inventories |
(115.3 |
) |
(38.5 |
) |
Other current assets |
(45.1 |
) |
(36.8 |
) |
Accounts
payable |
(82.3 |
) |
(34.4 |
) |
Employee compensation and benefits |
(42.0 |
) |
(11.9 |
) |
Other
current liabilities |
30.5 |
|
95.4 |
|
Other non-current assets and liabilities |
(25.5 |
) |
(45.9 |
) |
Net cash
provided by (used for) operating activities of continuing
operations |
403.1 |
|
688.2 |
|
Net cash provided by (used for) operating activities of
discontinued operations |
(7.2 |
) |
(4.8 |
) |
Net cash
provided by (used for) operating activities |
395.9 |
|
683.4 |
|
Investing activities |
|
|
Capital
expenditures |
(100.6 |
) |
(92.5 |
) |
Proceeds from sale of property and equipment |
24.8 |
|
4.1 |
|
Acquisitions, net of cash acquired |
(1,913.0 |
) |
- |
|
Other |
(0.8 |
) |
0.9 |
|
Net cash provided by (used for) investing activities of
continuing operations |
(1,989.6 |
) |
(87.5 |
) |
Net cash provided by (used for) investing activities
of discontinued operations |
59.0 |
|
- |
|
Net cash provided by (used for) investing activities |
(1,930.6 |
) |
(87.5 |
) |
Financing activities |
|
|
Net
receipts (repayments) of short-term borrowings |
(2.0 |
) |
0.3 |
|
Net receipts of commercial paper and revolving
long-term debt |
276.5 |
|
426.2 |
|
Proceeds
from long-term debt |
1,714.8 |
|
- |
|
Repayments of long-term debt |
(4.6 |
) |
(13.2 |
) |
Debt
issuance costs |
(26.8 |
) |
- |
|
Excess tax benefits from share-based compensation |
6.0 |
|
10.0 |
|
Shares
issued to employees, net of shares withheld |
21.9 |
|
30.3 |
|
Repurchases of ordinary shares |
(200.0 |
) |
(850.0 |
) |
Dividends
paid |
(173.3 |
) |
(156.2 |
) |
Purchase of noncontrolling interest |
- |
|
(134.7 |
) |
Net cash provided by (used for) financing activities |
1,612.5 |
|
(687.3 |
) |
Effect of exchange rate changes on
cash and cash equivalents |
(43.3 |
) |
(8.0 |
) |
Change in cash and cash
equivalents |
34.5 |
|
(99.4 |
) |
Cash and cash equivalents, beginning of period |
110.4 |
|
256.0 |
|
Cash and cash equivalents, end of
period |
$ |
144.9 |
|
$ |
156.6 |
|
Free cash flow |
|
|
Net cash
provided by (used for) operating activities of continuing
operations |
$ |
403.1 |
|
$ |
688.2 |
|
Capital expenditures |
(100.6 |
) |
(92.5 |
) |
Proceeds from sale of property and equipment |
24.8 |
|
4.1 |
|
Free cash flow |
$ |
327.3 |
|
$ |
599.8 |
|
|
|
|
Pentair plc
and Subsidiaries |
Supplemental
Financial Information by Reportable Segment (Unaudited) |
|
|
|
|
|
|
2015 |
In millions |
First
Quarter |
Second
Quarter |
Third
Quarter |
Nine
Months |
Net sales |
|
|
|
|
Valves
& Controls |
$ |
429.2 |
|
$ |
496.4 |
|
$ |
440.9 |
|
$ |
1,366.5 |
|
Flow & Filtration Solutions |
350.1 |
|
374.6 |
|
362.7 |
|
1,087.4 |
|
Water
Quality Systems |
306.9 |
|
387.7 |
|
322.0 |
|
1,016.6 |
|
Technical Solutions |
395.8 |
|
407.1 |
|
432.3 |
|
1,235.2 |
|
Other |
(7.0 |
) |
(4.6 |
) |
(5.8 |
) |
(17.4 |
) |
Consolidated |
$ |
1,475.0 |
|
$ |
1,661.2 |
|
$ |
1,552.1 |
|
$ |
4,688.3 |
|
Segment income (loss)* |
|
|
|
|
Valves & Controls |
$ |
55.4 |
|
$ |
64.4 |
|
$ |
55.7 |
|
$ |
175.5 |
|
Flow
& Filtration Solutions |
35.9 |
|
56.3 |
|
52.8 |
|
145.0 |
|
Water Quality Systems |
51.8 |
|
88.2 |
|
60.5 |
|
200.5 |
|
Technical
Solutions |
77.6 |
|
86.4 |
|
101.0 |
|
265.0 |
|
Other |
(21.9 |
) |
(22.4 |
) |
(20.8 |
) |
(65.1 |
) |
Consolidated |
$ |
198.8 |
|
$ |
272.9 |
|
$ |
249.2 |
|
$ |
720.9 |
|
Segment income as a percent of net
sales |
|
|
|
|
Valves
& Controls |
12.9 |
% |
13.0 |
% |
12.6 |
% |
12.8 |
% |
Flow & Filtration Solutions |
10.2 |
% |
15.0 |
% |
14.6 |
% |
13.3 |
% |
Water
Quality Systems |
16.9 |
% |
22.8 |
% |
18.8 |
% |
19.7 |
% |
Technical Solutions |
19.6 |
% |
21.2 |
% |
23.4 |
% |
21.5 |
% |
Consolidated |
13.5 |
% |
16.4 |
% |
16.1 |
% |
15.4 |
% |
|
|
|
|
|
|
2014 |
In millions |
First
Quarter |
Second
Quarter |
Third
Quarter |
Nine
Months |
Net sales |
|
|
|
|
Valves
& Controls |
$ |
531.0 |
|
$ |
628.6 |
|
$ |
607.9 |
|
$ |
1,767.5 |
|
Flow & Filtration Solutions |
401.1 |
|
424.5 |
|
394.1 |
|
1,219.7 |
|
Water
Quality Systems |
304.0 |
|
377.9 |
|
324.1 |
|
1,006.0 |
|
Technical Solutions |
415.3 |
|
408.6 |
|
438.8 |
|
1,262.7 |
|
Other |
(7.4 |
) |
(5.5 |
) |
(6.5 |
) |
(19.4 |
) |
Consolidated |
$ |
1,644.0 |
|
$ |
1,834.1 |
|
$ |
1,758.4 |
|
$ |
5,236.5 |
|
Segment income (loss)* |
|
|
|
|
Valves & Controls |
$ |
74.3 |
|
$ |
100.9 |
|
$ |
107.6 |
|
$ |
282.8 |
|
Flow
& Filtration Solutions |
42.3 |
|
61.8 |
|
53.5 |
|
157.6 |
|
Water Quality Systems |
50.3 |
|
84.7 |
|
56.0 |
|
191.0 |
|
Technical
Solutions |
83.9 |
|
81.9 |
|
101.1 |
|
266.9 |
|
Other |
(21.7 |
) |
(21.0 |
) |
(22.4 |
) |
(65.1 |
) |
Consolidated |
$ |
229.1 |
|
$ |
308.3 |
|
$ |
295.8 |
|
$ |
833.2 |
|
Segment income (loss) as a percent
of net sales |
|
|
|
|
Valves
& Controls |
14.0 |
% |
16.1 |
% |
17.7 |
% |
16.0 |
% |
Flow & Filtration Solutions |
10.6 |
% |
14.6 |
% |
13.6 |
% |
12.9 |
% |
Water
Quality Systems |
16.6 |
% |
22.4 |
% |
17.3 |
% |
19.0 |
% |
Technical Solutions |
20.2 |
% |
20.0 |
% |
23.1 |
% |
21.1 |
% |
Consolidated |
13.9 |
% |
16.8 |
% |
16.8 |
% |
15.9 |
% |
* Segment income (loss) represents
operating income (loss) from continuing operations exclusive of
non-cash intangible amortization, certain acquisition related
expenses, costs of restructuring activities, "mark-to-market" gain
(loss) for pension and other post-retirement plans, impairments,
and other unusual non-operating items. |
|
|
|
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 |
Third
Quarter |
|
Fourth
Quarter |
|
Full
Year |
Total Pentair |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,475.0 |
|
$ |
1,661.2 |
|
$ |
1,552.1 |
|
|
approx |
$ |
1,745 |
|
|
approx |
$ |
6,430 |
|
Operating income-as reported |
|
171.2 |
|
217.9 |
|
180.0 |
|
|
approx |
158 |
|
|
approx |
726 |
|
% of net sales |
|
11.6 |
% |
13.1 |
% |
11.6 |
% |
|
approx |
9.1 |
% |
|
approx |
11.3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Restructuring and other |
|
- |
|
25.5 |
|
25.3 |
|
|
approx |
54 |
|
|
approx |
105 |
|
Intangible amortization |
|
27.6 |
|
28.0 |
|
28.2 |
|
|
approx |
39 |
|
|
approx |
123 |
|
Inventory step-up |
|
- |
|
1.5 |
|
1.4 |
|
|
approx |
29 |
|
|
approx |
32 |
|
Deal related costs and expenses |
|
- |
|
- |
|
14.3 |
|
|
approx |
- |
|
|
approx |
14 |
|
Operating income-as adjusted |
|
198.8 |
|
272.9 |
|
249.2 |
|
|
approx |
280 |
|
|
approx |
1,000 |
|
% of net sales |
|
13.5 |
% |
16.4 |
% |
16.1 |
% |
|
approx |
16.0 |
% |
|
approx |
15.6 |
% |
Net
income from continuing operations-as reported |
|
118.2 |
|
153.9 |
|
115.2 |
|
|
approx |
96 |
|
|
approx |
484 |
|
Amortization of bridge financing fees |
|
- |
|
- |
|
8.3 |
|
|
approx |
- |
|
|
approx |
8 |
|
Adjustments, net of tax |
|
21.2 |
|
42.4 |
|
53.2 |
|
|
approx |
94 |
|
|
approx |
211 |
|
Net income from continuing operations-as
adjusted |
|
$ |
139.4 |
|
$ |
196.3 |
|
$ |
176.7 |
|
|
approx |
$ |
190 |
|
|
approx |
$ |
703 |
|
Continuing earnings per ordinary
share-diluted |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per ordinary share-as
reported |
|
$ |
0.65 |
|
$ |
0.84 |
|
$ |
0.63 |
|
|
approx |
$0.52 - $0.54 |
|
approx |
$2.64 - $2.66 |
Adjustments |
|
0.11 |
|
0.24 |
|
0.34 |
|
|
approx |
0.51 |
|
|
approx |
1.20 |
|
Diluted earnings per ordinary share-as
adjusted |
|
$ |
0.76 |
|
$ |
1.08 |
|
$ |
0.97 |
|
|
approx |
$1.03 - $1.05 |
|
approx |
$3.84 - $3.86 |
|
|
|
Pentair plc
and Subsidiaries |
Reconciliation of Net Sales Growth to Core Net Sales Growth
by Vertical |
for the
quarter ending September 26, 2015 (Unaudited) |
|
Q3 Net Sales Growth |
|
Core |
Currency |
Acq./
Div. |
Total |
Valves & Controls |
(17.6 |
)% |
(9.9 |
)% |
- |
% |
(27.5 |
)% |
Industrial |
(18.1 |
)% |
(8.0 |
)% |
- |
% |
(26.1 |
)% |
Energy |
(17.3 |
)% |
(11.0 |
)% |
- |
% |
(28.3 |
)% |
Flow & Filtration Solutions |
(1.0 |
)% |
(7.0 |
)% |
|
(8.0 |
)% |
Industrial |
(18.5 |
)% |
4.0 |
% |
- |
% |
(14.5 |
)% |
Residential & Commercial |
(4.7 |
)% |
(8.4 |
)% |
- |
% |
(13.1 |
)% |
Food & Beverage |
11.2 |
% |
(9.6 |
)% |
- |
% |
1.6 |
% |
Infrastructure |
5.7 |
% |
(10.2 |
)% |
- |
% |
(4.5 |
)% |
Water Quality Systems |
2.8 |
% |
(3.5 |
)% |
- |
% |
(0.7 |
)% |
Residential & Commercial |
3.8 |
% |
(3.3 |
)% |
- |
% |
0.5 |
% |
Food & Beverage |
(0.1 |
)% |
(3.8 |
)% |
- |
% |
(3.9 |
)% |
Technical Solutions |
2.0 |
% |
(6.5 |
)% |
3.0 |
% |
(1.5 |
)% |
Industrial |
(0.8 |
)% |
(5.8 |
)% |
1.0 |
% |
(5.6 |
)% |
Residential & Commercial |
8.6 |
% |
(5.6 |
)% |
10.1 |
% |
13.1 |
% |
Energy |
8.6 |
% |
(5.3 |
)% |
1.5 |
% |
4.8 |
% |
Infrastructure |
(16.9 |
)% |
(5.1 |
)% |
4.1 |
% |
(17.9 |
)% |
Total Pentair |
(5.3 |
)% |
(7.1 |
)% |
0.7 |
% |
(11.7 |
)% |
Industrial |
(10.9 |
)% |
(6.2 |
)% |
0.4 |
% |
(16.7 |
)% |
Residential & Commercial |
2.2 |
% |
(5.4 |
)% |
1.5 |
% |
(1.7 |
)% |
Energy |
(10.1 |
)% |
(9.7 |
)% |
0.3 |
% |
(19.5 |
)% |
Food & Beverage |
7.4 |
% |
(7.3 |
)% |
- |
% |
0.1 |
% |
Infrastructure |
(4.7 |
)% |
(8.0 |
)% |
2.0 |
% |
(10.7 |
)% |
|
|
|
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 |
|
Intangible 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 |
|
Operating income-as adjusted |
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#1959955
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