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July 26, 2016 6:18 AM EDT

 
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): July 26, 2016
 
__________________________________________ 
SENSATA TECHNOLOGIES HOLDING N.V.
(Exact name of Registrant as specified in its charter)
 
 __________________________________________


The Netherlands
 
001-34652
 
98-0641254
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
Kolthofsingel 8, 7602 EM Almelo
The Netherlands
(Address of Principal executive offices, including Zip Code)
31-546-879-555
(Registrant's telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
 __________________________________________
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:
 


o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


o
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 July 26, 2016, Sensata Technologies Holding N.V. (the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2016. The press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
The Company will conduct a webcast on July 26, 2016 at 8:00 AM eastern time to discuss the financial results for its second quarter ended June 30, 2016 and its outlook for the remainder of the year. The dial-in numbers for the call are 1-877-486-0682 (toll-free) or +1-706-634-5536 (international) and the Conference ID is 43137786. Additional information relating to the Company's financial results will be contained in a presentation that will be referenced during the webcast, and that is being made available on the investor relations page of the Company’s website at www.investors.sensata.com. The live webcast and a replay will be available on the investor relations page of the Company’s website.
The information contained in, or incorporated into, this Current Report on Form 8-K is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in any such filing.

Item 9.01
Financial Statements and Exhibits.
(d) Exhibits
99.1
 
July 26, 2016 press release entitled "Sensata Technologies Reports Second Quarter 2016 Financial Results" (furnished pursuant to Item 2.02).



2


SIGNATURES
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 hereunto duly authorized.
 


 
 
 
 
SENSATA TECHNOLOGIES HOLDING N.V.
 
 
 
 
 
 
 
/s/ Paul Vasington
Date: July 26, 2016
 
 
 
Name: Paul Vasington
 
 
 
 
Title: Executive Vice President and Chief Financial Officer
 



3


EXHIBIT INDEX

Exhibit No.
 
Description
 
 
99.1
 
July 26, 2016 press release entitled "Sensata Technologies Reports Second Quarter 2016 Financial Results" (furnished pursuant to Item 2.02).




4


SENSATA TECHNOLOGIES REPORTS SECOND QUARTER 2016 FINANCIAL RESULTS


Almelo, the Netherlands – July 26, 2016 - Sensata Technologies (NYSE: ST) today announced financial results for its second quarter and six months ended June 30, 2016.
Revenue for the second quarter 2016 was $827.5 million, an increase of $57.1 million, or 7.4%, from $770.4 million for the second quarter of 2015. Excluding an 8.5 percent positive effect from acquisitions, net of exited businesses, and a 1.2 percent negative effect from changes in foreign exchange rates, Sensata reported flat organic revenue growth in the second quarter of 2016.
Net income for the second quarter 2016 was $65.5 million, which was 7.9% of revenue, or $0.38 per diluted share. This compares to net income for the second quarter 2015 of $40.9 million, which was 5.3% of revenue or $0.24 per diluted share. Adjusted net income for the second quarter 2016 was $124.3 million which was 15.0% of revenue or $0.73 per diluted share. This compares to adjusted net income of $124.6 million which was 16.2% of revenue, or $0.73 per diluted share in the second quarter of 2015.
On a sequential basis, Sensata's adjusted net income margin of 15.0% for the second quarter increased by 80 basis points compared to an adjusted net income margin of 14.2% in the first quarter of 2016. A definition of non-GAAP measures and a reconciliation of GAAP to non-GAAP financial measures is provided in the financial tables accompanying this press release.
Revenue for the six months ended June 30, 2016 was $1,624.1 million, an increase of $103.0 million, or 6.8% from $1,521.1 million for the six months ended June 30, 2015. Excluding an 8.7 percent positive effect from acquisitions, net of exited businesses, and a 1.6 percent negative effect from changes in foreign exchange rates, Sensata reported flat organic revenue growth in the first six months of 2016.
Net income for the six months ended June 30, 2016 was $126.1 million, which was 7.8% of revenue, or $0.74 per diluted share. This compares to net income for the six months ended June 30, 2015 of $76.3 million, which was 5.0% of revenue, or $0.44 per diluted share. Adjusted net income for the six months ended June 30, 2016 was $237.5 million which was 14.6% of revenue, or $1.39 per diluted share. This was an increase of 0.9% compared to adjusted net income for the six months ended June 30, 2015 of $235.4 million which was 15.5% of revenue, or $1.37 per diluted share.
"Sensata delivered steady sequential margin expansion and earnings growth in the face of currency headwinds and a challenging market," said Martha Sullivan, President and Chief Executive Officer. "We also generated strong cash flow, which enabled us to further pay down our revolver debt and improve our leverage position. As we look ahead to the remainder of the year, we believe we can continue to improve our margins and further strengthen our balance sheet."

1

Sensata’s ending cash balance at June 30, 2016 was $309.1 million. During the first six months of 2016, the Company generated operating cash flow of $246.6 million and free cash flow of $182.2 million. The Company’s total gross indebtedness at June 30, 2016 was $3.5 billion, a reduction of $168.1 million from December 31, 2015 as a result of debt repayment.
Segment Performance
 
 
Three months ended
Six months ended
$ in 000s
 
June 30, 2016
 
June 30, 2015
June 30, 2016
 
June 30, 2015
Performance Sensing net revenue
 
$
615,570

 
$
606,353

$
1,212,745

 
$
1,197,605

Performance Sensing profit from operations
 
152,525

 
153,008

298,312

 
296,880

    % of Performance Sensing revenue
 
24.8
%
 
25.2
%
24.6
%
 
24.8
%
 
 
 
 
 
 
 
 
Sensing Solutions net revenue
 
$
211,975

 
$
164,092

$
411,349

 
$
323,525

Sensing Solutions profit from operations
 
68,175

 
52,117

131,423

 
101,335

    % of Sensing Solutions revenue
 
32.2
%
 
31.8
%
31.9
%
 
31.3
%
Performance Sensing’s profit from operations as a percentage of revenue totaled 24.8 percent in the second quarter of 2016. The impact of changes in foreign exchange rates and the CST acquisition lowered Performance Sensing’s profit from operations as a percentage of revenue by 120 basis points in the second quarter of 2016. Sensing Solution’s profit from operations as a percentage of revenue totaled 32.2 percent in the second quarter of 2016. The impact of changes in foreign exchange rates and the CST acquisition lowered Sensing Solution’s profit from operations as a percentage of revenue by 80 basis points in the second quarter of 2016.
Guidance
Sensata anticipates net revenue of $770 to $810 million for the third quarter 2016 as compared to third quarter 2015 net revenue of $727 million. In addition, the Company expects adjusted earnings per share for the third quarter 2016 to be between $0.70 and $0.76. This guidance assumes a diluted share count of 171.6 million for the third quarter 2016.
For the full year 2016, the Company anticipates net revenue of $3.17 to $3.25 billion which, at the midpoint, represents growth of 7.9% compared to the full year 2015 net revenue of $2.98 billion. In addition, the Company expects adjusted net income of $480 million to $505 million, or $2.80 to $2.94 per diluted share for the full year 2016. At the midpoint, this represents 4% growth compared to full year 2015 adjusted net income per diluted share of $2.75. This guidance assumes a diluted share count of 171.5 million for the full year 2016.
Conference Call & Webcast
The Company will conduct a conference call today at 8:00 AM eastern time to discuss the financial results and its outlook for the remainder of the year. The dial-in numbers for the call are 1-877-486-0682 (toll-free) or +1-706-634-5536 (international) and the Conference ID is 43137786. A live webcast and a replay of the conference call will also be available on the investor relations page of the Company’s website at http://investors.sensata.com.

2

About Sensata Technologies
Sensata Technologies is one of the world’s leading suppliers of sensing, electrical protection, control and power management solutions with operations and business centers in fourteen countries.  Sensata’s products improve safety, efficiency and comfort for millions of people every day in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning and ventilation, data, telecommunications, recreational vehicle and marine applications. For more information, please visit Sensata’s website at www.sensata.com.
Use of Non-GAAP Financial Measures

The non-GAAP financial measures referenced by Sensata in this press release are organic revenue growth; adjusted net income; adjusted net income margin; adjusted earnings per diluted share; and free cash flow. Organic revenue growth is defined as the percentage change in net revenue calculated in accordance with U.S. GAAP, excluding the impact of acquisitions, exited businesses, and the effects of changes in foreign currency exchange rates.

Adjusted net income is defined as net income excluding certain non-GAAP adjustments which are described in the accompanying reconciliation tables. Adjusted net income margin is calculated by dividing adjusted net income by net revenue. Adjusted earnings per share is calculated by dividing adjusted net income by the number of diluted weighted average ordinary shares outstanding in the period. We define free cash flow as net cash provided by operating activities less additions to property, plant, and equipment and capitalized software.

There are limitations in using non-GAAP financial measures as they are not prepared in accordance with U.S. generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. We believe that the non-GAAP financial measures provide useful and supplementary information to investors regarding our quarterly and annual performance. We regularly use non-GAAP financial measures internally to understand, manage, and evaluate our business results and make operating decisions. We also measure our employees and compensate them, in part, based on such non-GAAP measures. For the same reasons, we also use this information for our forecasting activities.
Safe Harbor Statement
This earnings release contains forward-looking statements within the meaning of the federal securities laws. These statements relate to analyses and other information, which are based on forecasts of future results and estimates of amounts not yet determinable, and our future prospects, developments, and business strategies. Such forward-looking statements include, among other things, our anticipated results for the third quarter and full year 2016. Such statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Factors that might cause these differences include, but are not limited to, risks associated with: adverse conditions in the automotive industry; competitive pressures that could require us to lower prices or could result in reduced demand for our products; integration of acquired companies, including CST and Schrader; the assumption of known and unknown liabilities in the acquisition of CST and Schrader; risks associated with our non-US operations and international business; litigation and disputes involving us, including the extent of intellectual property, product liability, warranty, and recall claims asserted against us; risks associated with our historical and future tax positions; risks associated with labor disruptions or increased labor costs; risks associated with our substantial indebtedness; and risks associated with breaches and other disruptions to our information technology infrastructure. Readers are

3

cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made; and we undertake no obligation to publicly update or revise any forward-looking statements, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings.  Copies of our filings are available from our Investor Relations department or from the SEC website, www.sec.gov.


4


SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Statements of Operations
(Unaudited)

(In 000s, except per share amounts)
 
 
 
 
 
 
 
 
 
 
For the three months ended
 
For the six months ended
 
 
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
Net revenue
 
$
827,545

 
$
770,445

 
$
1,624,094

 
$
1,521,130

Operating costs and expenses:
 
 
 
 
 
 
 
 
Cost of revenue
 
537,441

 
517,875

 
1,065,819

 
1,024,508

Research and development
 
32,288

 
31,242

 
63,639

 
61,978

Selling, general and administrative
 
77,660

 
73,008

 
149,591

 
137,404

Amortization of intangible assets
 
50,563

 
45,075

 
101,010

 
90,884

Restructuring and special charges
 
1,475

 
10,089

 
2,330

 
10,809

Total operating costs and expenses
 
699,427

 
677,289

 
1,382,389

 
1,325,583

Profit from operations
 
128,118

 
93,156

 
241,705

 
195,547

Interest expense, net
 
(41,757
)
 
(31,562
)
 
(84,025
)
 
(66,323
)
Other, net
 
130

 
(12,085
)
 
5,618

 
(33,842
)
Income before taxes
 
86,491

 
49,509

 
163,298

 
95,382

Provision for income taxes
 
20,981

 
8,609

 
37,176

 
19,127

Net income
 
$
65,510

 
$
40,900

 
$
126,122

 
$
76,255

 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.38

 
$
0.24

 
$
0.74

 
$
0.45

Diluted
 
$
0.38

 
$
0.24

 
$
0.74

 
$
0.44

 
 
 
 
 
 
 
 
 
Weighted-average ordinary shares outstanding:
 
 
 
 
 
 
Basic
 
170,723

 
170,007

 
170,563

 
169,747

Diluted
 
171,343

 
171,667

 
171,299

 
171,464



5


SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

($ in 000s)
 
 
 
 
 
 
 
 
 
 
For the three months ended
 
For the six months ended
 
 
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
Net income
 
$
65,510

 
$
40,900

 
$
126,122

 
$
76,255

Other comprehensive income/(loss), net of tax:
 
 
 
 
 
 
 
 
Deferred gain/(loss) on derivative instruments, net of reclassifications
 
178

 
(17,132
)
 
(16,525
)
 
4,372

Defined benefit and retiree healthcare plans
 
59

 
407

 
267

 
18

Other comprehensive income/(loss)
 
237

 
(16,725
)
 
(16,258
)
 
4,390

Comprehensive income
 
$
65,747

 
$
24,175

 
$
109,864

 
$
80,645



6


SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Balance Sheets
(Unaudited)

($ in 000s)
 
 
 
 
 
 
June 30, 2016
 
December 31, 2015
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
309,120

 
$
342,263

Accounts receivable, net of allowances
 
535,488

 
467,567

Inventories
 
346,120

 
358,701

Prepaid expenses and other current assets
 
105,593

 
109,392

Total current assets
 
1,296,321

 
1,277,923

Property, plant and equipment, net
 
709,260

 
694,155

Goodwill
 
3,013,693

 
3,019,743

Other intangible assets, net
 
1,168,301

 
1,262,572

Deferred income tax assets
 
32,034

 
26,417

Other assets
 
69,312

 
18,100

Total assets
 
$
6,288,921

 
$
6,298,910

 
 
 
 
 
Liabilities and shareholders’ equity
 
 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt, capital lease and other financing obligations
 
$
139,203

 
$
300,439

Accounts payable
 
323,062

 
290,779

Income taxes payable
 
19,137

 
21,968

Accrued expenses and other current liabilities
 
247,867

 
251,989

Total current liabilities
 
729,269

 
865,175

Deferred income tax liabilities
 
405,344

 
390,490

Pension and other post-retirement benefit obligations
 
33,966

 
34,314

Capital lease and other financing obligations, less current portion
 
34,341

 
36,219

Long-term debt, net of discount and deferred financing costs, less current portion
 
3,263,061

 
3,264,333

Other long-term liabilities
 
34,981

 
39,803

Total liabilities
 
4,500,962

 
4,630,334

Total shareholders’ equity
 
1,787,959

 
1,668,576

Total liabilities and shareholders’ equity
 
$
6,288,921

 
$
6,298,910



7

SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
($ in 000s)
 
For the six months ended
 
 
June 30, 2016
 
June 30, 2015
Cash flows from operating activities:
 
 
 
 
Net income
 
$
126,122

 
$
76,255

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation
 
51,345

 
48,808

Amortization of deferred financing costs and original issue discounts
 
3,678

 
3,231

Currency remeasurement gain on debt
 
(39
)
 
(654
)
Share-based compensation
 
8,522

 
7,581

Loss on debt financing
 
—

 
25,538

Amortization of inventory step-up to fair value
 
2,319

 
—

Amortization of intangible assets
 
101,010

 
90,884

Deferred income taxes
 
15,599

 
6,844

Unrealized (gain)/loss on hedges and other non-cash items
 
(2,004
)
 
2,335

Changes in operating assets and liabilities, net of effects of acquisitions
 
(59,921
)
 
(48,623
)
Net cash provided by operating activities
 
246,631

 
212,199

 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
Acquisition of CST, net of cash received
 
4,688

 
—

Acquisition of Schrader, net of cash received
 
—

 
(958
)
Other acquisitions, net of cash received
 
—

 
3,881

Additions to property, plant and equipment and capitalized software
 
(64,466
)
 
(86,801
)
Investment in equity securities
 
(50,000
)
 
—

Proceeds from the sale of assets
 
650

 
—

Net cash used in investing activities
 
(109,128
)
 
(83,878
)
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
Proceeds from exercise of stock options and issuance of ordinary shares
 
3,067

 
13,266

Proceeds from issuance of debt
 
—

 
1,795,120

Payments on debt
 
(168,679
)
 
(1,892,263
)
Payments to repurchase ordinary shares
 
(4,516
)
 
(50
)
Payments of debt issuance costs
 
(518
)
 
(28,928
)
Net cash used in financing activities
 
(170,646
)
 
(112,855
)
Net change in cash and cash equivalents
 
(33,143
)
 
15,466

Cash and cash equivalents, beginning of period
 
342,263

 
211,329

Cash and cash equivalents, end of period
 
$
309,120

 
$
226,795


8

Net Revenue by Business, Geography and End Market

(% of total net revenue)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Performance Sensing
 
74.4
%
 
78.7
%
 
74.7
%
 
78.7
%
Sensing Solutions
 
25.6
%
 
21.3
%
 
25.3
%
 
21.3
%
Total
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%


(% of total net revenue)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Americas
 
42.8
%
 
41.2
%
 
43.2
%
 
41.0
%
Europe
 
33.0
%
 
33.1
%
 
33.2
%
 
33.1
%
Asia
 
24.2
%
 
25.7
%
 
23.6
%
 
25.9
%
Total
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%


(% of total net revenue)1
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2016
 
2015
 
2016
 
2015
European automotive
 
25.5
%
 
28.4
%
 
25.5
%
 
28.2
%
North American automotive
 
20.0
%
 
21.3
%
 
20.0
%
 
21.2
%
Asian automotive
 
16.8
%
 
17.3
%
 
16.5
%
 
17.3
%
Rest of world automotive
 
0.2
%
 
0.9
%
 
0.2
%
 
0.9
%
Heavy vehicle off-road
 
13.6
%
 
12.6
%
 
14.1
%
 
12.8
%
Appliance and heating, ventilation and air-conditioning
 
5.7
%
 
6.2
%
 
5.7
%
 
6.2
%
Industrial
 
9.0
%
 
5.4
%
 
9.5
%
 
5.4
%
All other
 
9.2
%
 
7.9
%
 
8.5
%
 
8.0
%
Total
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%

1 Reclassification of certain acquired product lines has led to retrospective adjustments of certain of end-market percentages. Revenues have shifted from Industrial into the European, North American and Asian automotive end-markets.


9

The following unaudited table reconciles the Company’s net income to adjusted net income for the three and six months ended June 30, 2016 and 2015.
(In 000s, except per share amounts)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Net income
 
$
65,510

 
$
40,900

 
$
126,122

 
$
76,255

Restructuring and special charges
 
3,161

 
22,023

 
6,800

 
23,179

Financing and other transaction costs
 
275

 
5,974

 
1,056

 
25,796

Deferred (gain)/loss on other hedges
 
(8,294
)
 
2,424

 
(21,567
)
 
6,462

Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory
 
51,891

 
46,308

 
105,757

 
93,654

Deferred income tax and other tax expense
 
9,942

 
5,368

 
15,699

 
6,854

Amortization of deferred financing costs
 
1,834

 
1,578

 
3,678

 
3,231

Total adjustments
 
$
58,809

 
$
83,675

 
$
111,423

 
$
159,176

Adjusted net income
 
$
124,319

 
$
124,575

 
$
237,545

 
$
235,431

Weighted average diluted shares outstanding
 
171,343

 
171,667

 
171,299

 
171,464

Adjusted net income per diluted share
 
$
0.73

 
$
0.73

 
$
1.39

 
$
1.37

The Company’s definition of adjusted net income excludes the deferred provision for/(benefit from) income taxes and other tax expense/(benefit). The Company’s deferred provision for/(benefit from) income taxes includes adjustments in book-to-tax basis differences primarily related to the step-up in fair value of fixed and intangible assets and goodwill, utilization of net operating losses and adjustments to our U.S. valuation allowance in connection with certain acquisitions. Other tax expense/(benefit) includes certain adjustments to unrecognized tax positions.
As the Company treats deferred income tax and other tax expense/(benefit) as an adjustment to compute adjusted net income, the deferred income tax effect associated with the reconciling items, above, would not change adjusted net income for any period presented.
The current income tax (benefit)/expense associated with the reconciling items above, which is included in adjusted net income, would be as follows: Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory: ($0.0) million and $(0.2) million for the three months ended June 30, 2016 and 2015, respectively, and ($0.1) million and ($0.3) million for the six months ended June 30, 2016 and 2015, respectively; and Restructuring and special charges: ($0.3) million and ($1.0) million for the three months ended June 30, 2016 and 2015, respectively, and ($0.3) million and ($1.1) million for the six months ended June 30, 2016 and 2015, respectively.

10

The following unaudited table identifies where in the Condensed Consolidated Statements of Operations the adjustments to reconcile Net income to adjusted net income were recorded for the three and six months ended June 30, 2016 and 2015.

($ in 000s)
 
Three months ended June 30,
Six months ended June 30,
 
 
2016
 
2015
2016
 
2015
Cost of revenue
 
$
3,551

 
$
14,121

$
6,924

 
$
23,326

Selling, general and administrative
 
1,075

 
5,644

2,720

 
5,902

Amortization of intangible assets
 
49,130

 
43,719

98,198

 
88,335

Restructuring and special charges
 
904

 
9,847

1,704

 
9,945

Interest expense, net
 
1,834

 
1,578

3,678

 
3,231

Other, net
 
(7,627
)
 
8,398

(17,500
)
 
26,583

Provision for income taxes
 
9,942

 
368

15,699

 
1,854

Total adjustments
 
$
58,809

 
$
83,675

$
111,423

 
$
159,176

The following unaudited table reconciles the Company’s net cash provided by operating activities to free cash flow.
($ in 000s)
 
Three months ended June 30,
Six months ended June 30,
 
 
2016
 
2015
2016
 
2015
Net cash provided by operating activities
 
$
110,429

 
$
109,089

$
246,631

 
$
212,199

Additions to property, plant and equipment and capitalized software
 
(30,231
)
 
(48,923
)
(64,466
)
 
(86,801
)
Free cash flow
 
$
80,198

 
$
60,166

$
182,165

 
$
125,398


11

The following unaudited table reconciles the Company’s projected GAAP earnings per share to projected adjusted net income per diluted share for the three months ended September 30, 2016 and full year ended December 31, 2016. The amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not add due to the effect of rounding.
 
 
Three months ended
September 30, 2016
 
Full year ended
December 31, 2016
 
 
Low End
 
High End
 
Low End
 
High End
 
 
 
 
 
 
 
 
 
Projected GAAP earnings per diluted share
 
$
0.32

 
$
0.37

 
$
1.41

 
$
1.54

Restructuring and special charges
 
0.01

 
0.02

 
0.05

 
0.06

Financing and other transaction costs
 
—

 
—

 
0.01

 
0.01

Deferred (gain)/loss on other hedges
 
—

 
—

 
(0.13
)
 
(0.13
)
Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory
 
0.30

 
0.30

 
1.21

 
1.21

Deferred income tax and other tax expense/(benefit)
 
0.06

 
0.06

 
0.21

 
0.21

Amortization of deferred financing costs
 
0.01

 
0.01

 
0.04

 
0.04

Projected Adjusted net income per diluted share
 
$
0.70

 
$
0.76

 
$
2.80

 
$
2.94

Weighted average diluted shares outstanding
 
171,600

 
171,600

 
171,500

 
171,500

# # #
Contacts:
 
 
 
 
 
Investors:
 
News Media:
Joshua Young
 
Alexia Taxiarchos
(508) 236-2196
 
(508) 236-1761
 


12

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