Pentair Reports Third Quarter 2019 Results
- Third quarter sales of $714 million.
- Third quarter GAAP EPS of $0.54 and adjusted EPS of $0.58.
-
The company maintains its 2019 GAAP EPS guidance of approximately $2.09 and on an adjusted basis of approximately $2.35.
Reconciliations of GAAP to Non-GAAP measures are in the attached financial tables.
LONDON--(BUSINESS WIRE)-- Pentair plc (NYSE: PNR) today announced third quarter 2019 sales of $714 million. Sales were flat compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales declined 2 percent in the third quarter. Third quarter 2019 earnings per diluted share from continuing operations (“EPS”) were $0.54 compared to $0.52 in the third quarter of 2018. On an adjusted basis, the company reported EPS of $0.58 compared to $0.54 in the third quarter of 2018. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.
Third quarter 2019 operating income was $109 million, flat compared to operating income for the third quarter of 2018, and return on sales (“ROS”) was 15.2 percent, flat compared to the third quarter of 2018. On an adjusted basis, the company reported segment income of $123 million for the third quarter, up 1 percent compared to segment income for the third quarter of 2018, and ROS was 17.2 percent, an increase of 10 basis points when compared to the third quarter of 2018.
Net cash provided by operating activities of continuing operations was $167 million and free cash flow provided by continuing operations was $152 million for the quarter.
Pentair paid a regular cash dividend of $0.18 per share in the third quarter of 2019. Pentair previously announced on December 10, 2018 that its Board of Directors approved a 3 percent increase in the company's regular annual cash dividend rate for 2019 to $0.72 from $0.70, adjusted for the spin-off of nVent Electric plc. This marks the 43rd consecutive year that Pentair has increased its dividend.
John L. Stauch, Pentair’s President and Chief Executive Officer, commented: “Our third quarter results showed further signs of stabilization in our core business and we are encouraged by the segment income growth and ROS expansion. We are seeing solid underlying demand in many of our businesses. Throughout the year, we have continued to invest in our strategic growth priorities and we expect to remain positioned to return to core sales growth in 2020. We continue to see many paths of growth as we execute our strategy of being a leading water treatment company.”
OUTLOOK
The company maintains its estimated 2019 GAAP EPS of approximately $2.09 and on an adjusted EPS basis of approximately $2.35. The company updates its full year 2019 sales guidance to approximately flat on a reported basis and approximately down 1 percent on a core basis compared to full year 2018. The company is targeting full year free cash flow to approximate adjusted net income.
In addition, the company introduces fourth quarter 2019 GAAP EPS of approximately $0.60 - $0.62 and on an adjusted EPS basis of approximately $0.64 - $0.66. The company expects fourth quarter sales to be up approximately 2 percent on a reported basis and approximately flat on a core basis compared to fourth quarter 2018.
EARNINGS CONFERENCE CALL
Pentair President and Chief Executive Officer John L. Stauch and Chief Financial Officer Mark C. Borin will discuss the company’s third quarter 2019 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 Investor Relations 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, each 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 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 impacting our business, including the strength of housing and related markets; demand, competition and pricing pressures in the markets we serve; volatility in currency exchange rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; the ability to successfully integrate the Aquion and Pelican Water Systems acquisitions; the ability to achieve the benefits of our restructuring plans and cost reduction initiatives; risks associated with operating foreign businesses; the impact of material cost and other inflation; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; the ability to realize the anticipated benefits from the separation of nVent Electric plc from Pentair; 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 Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018. All forward-looking statements speak only as of the date of this release. Pentair plc assumes no obligation, and disclaims any obligation, to update the information contained in this release.
ABOUT PENTAIR PLC
At Pentair, we believe the health of our world depends on reliable access to clean, safe water. We deliver a comprehensive range of smart, sustainable water solutions to homes, business and industry around the world. Our industry leading and proven portfolio of solutions enables our customers to access clean, safe water. Whether it’s improving, moving or enjoying water, we help manage the world’s most precious resource. Smart, Sustainable, Water Solutions. For Life.
Pentair had revenue in 2018 of $3 billion, and trades under the ticker symbol PNR. With approximately 110 locations in 30 countries and 10,000 employees, we believe that the future of water depends on us. To learn more, visit www.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 30,
|
September 30,
|
|
September 30,
|
September 30,
|
||||||||||
Net sales |
$ |
713.6 |
|
$ |
711.4 |
|
|
$ |
2,202.0 |
|
$ |
2,224.6 |
|
||
Cost of goods sold |
|
458.6 |
|
|
467.6 |
|
|
|
1,424.7 |
|
|
1,444.9 |
|
||
Gross profit |
|
255.0 |
|
|
243.8 |
|
|
|
777.3 |
|
|
779.7 |
|
||
% of net sales |
|
35.7 |
% |
|
34.3 |
% |
|
|
35.3 |
% |
|
35.0 |
% |
||
Selling, general and administrative |
|
126.4 |
|
|
116.3 |
|
|
|
405.9 |
|
|
399.0 |
|
||
% of net sales |
|
17.7 |
% |
|
16.3 |
% |
|
|
18.4 |
% |
|
17.9 |
% |
||
Research and development |
|
19.8 |
|
|
19.1 |
|
|
|
61.2 |
|
|
57.0 |
|
||
% of net sales |
|
2.8 |
% |
|
2.7 |
% |
|
|
2.8 |
% |
|
2.6 |
% |
||
Operating income |
|
108.8 |
|
|
108.4 |
|
|
|
310.2 |
|
|
323.7 |
|
||
% of net sales |
|
15.2 |
% |
|
15.2 |
% |
|
|
14.1 |
% |
|
14.6 |
% |
||
Other (income) expense: |
|
|
|
|
|
||||||||||
Loss (gain) on sale of business |
|
0.1 |
|
|
0.2 |
|
|
|
(3.3 |
) |
|
6.4 |
|
||
Loss on early extinguishment of debt |
— |
|
— |
|
|
— |
|
|
17.1 |
|
|||||
Other expense (income) |
|
0.6 |
|
|
2.1 |
|
|
|
(11.7 |
) |
|
(1.7 |
) |
||
Net interest expense |
|
6.9 |
|
|
4.3 |
|
|
|
23.6 |
|
|
27.9 |
|
||
% of net sales |
|
1.0 |
% |
|
0.6 |
% |
|
|
1.1 |
% |
|
1.3 |
% |
||
Income from continuing operations before income taxes |
|
101.2 |
|
|
101.8 |
|
|
|
301.6 |
|
|
274.0 |
|
||
Provision for income taxes |
|
9.9 |
|
|
10.6 |
|
|
|
42.8 |
|
|
46.5 |
|
||
Effective tax rate |
|
9.8 |
% |
|
10.4 |
% |
|
|
14.2 |
% |
|
17.0 |
% |
||
Net income from continuing operations |
|
91.3 |
|
|
91.2 |
|
|
|
258.8 |
|
|
227.5 |
|
||
Income (loss) from discontinued operations, net of tax |
|
1.0 |
|
|
18.9 |
|
|
|
(0.9 |
) |
|
27.0 |
|
||
Net income |
$ |
92.3 |
|
$ |
110.1 |
|
|
$ |
257.9 |
|
$ |
254.5 |
|
||
Earnings (loss) per ordinary share |
|
|
|
|
|
||||||||||
Basic |
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.54 |
|
$ |
0.52 |
|
|
$ |
1.53 |
|
$ |
1.29 |
|
||
Discontinued operations |
|
0.01 |
|
|
0.11 |
|
|
|
(0.01 |
) |
|
0.15 |
|
||
Basic earnings per ordinary share |
$ |
0.55 |
|
$ |
0.63 |
|
|
$ |
1.52 |
|
$ |
1.44 |
|
||
Diluted |
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.54 |
|
$ |
0.52 |
|
|
$ |
1.52 |
|
$ |
1.28 |
|
||
Discontinued operations |
|
0.01 |
|
|
0.11 |
|
|
|
(0.01 |
) |
|
0.15 |
|
||
Diluted earnings per ordinary share |
$ |
0.55 |
|
$ |
0.63 |
|
|
$ |
1.51 |
|
$ |
1.43 |
|
||
Weighted average ordinary shares outstanding |
|
|
|
|
|
||||||||||
Basic |
|
168.1 |
|
|
174.3 |
|
|
|
169.7 |
|
|
176.8 |
|
||
Diluted |
|
168.6 |
|
|
175.7 |
|
|
|
170.3 |
|
|
178.5 |
|
||
Cash dividends paid per ordinary share |
$ |
0.18 |
|
$ |
0.175 |
|
|
$ |
0.54 |
|
$ |
0.875 |
|
||
Pentair plc and Subsidiaries |
||||||||
Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
|
|
|
||||||
|
September 30,
|
December 31,
|
||||||
In millions |
||||||||
Assets |
||||||||
Current assets |
|
|
||||||
Cash and cash equivalents |
$ |
113.2 |
|
$ |
74.3 |
|
||
Accounts and notes receivable, net |
|
404.0 |
|
|
488.2 |
|
||
Inventories |
|
390.3 |
|
|
387.5 |
|
||
Other current assets |
|
95.1 |
|
|
89.4 |
|
||
Total current assets |
|
1,002.6 |
|
|
1,039.4 |
|
||
Property, plant and equipment, net |
|
277.9 |
|
|
272.6 |
|
||
Other assets |
|
|
||||||
Goodwill |
|
2,261.0 |
|
|
2,072.7 |
|
||
Intangibles, net |
|
341.4 |
|
|
276.3 |
|
||
Other non-current assets |
|
197.5 |
|
|
145.5 |
|
||
Total other assets |
|
2,799.9 |
|
|
2,494.5 |
|
||
Total assets |
$ |
4,080.4 |
|
$ |
3,806.5 |
|
||
Liabilities and Equity |
||||||||
Current liabilities |
|
|
||||||
Accounts payable |
$ |
253.4 |
|
$ |
378.6 |
|
||
Employee compensation and benefits |
|
70.7 |
|
|
111.7 |
|
||
Other current liabilities |
|
370.1 |
|
|
328.4 |
|
||
Total current liabilities |
|
694.2 |
|
|
818.7 |
|
||
Other liabilities |
|
|
||||||
Long-term debt |
|
1,118.7 |
|
|
787.6 |
|
||
Pension and other post-retirement compensation and benefits |
|
88.1 |
|
|
90.0 |
|
||
Deferred tax liabilities |
|
111.4 |
|
|
105.9 |
|
||
Other non-current liabilities |
|
199.2 |
|
|
168.2 |
|
||
Total liabilities |
|
2,211.6 |
|
|
1,970.4 |
|
||
Equity |
|
1,868.8 |
|
|
1,836.1 |
|
||
Total liabilities and equity |
$ |
4,080.4 |
|
$ |
3,806.5 |
|
||
Pentair plc and Subsidiaries |
||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
||||||||
|
Nine months ended |
|||||||
In millions |
September 30,
|
September 30,
|
||||||
Operating activities |
|
|
||||||
Net income |
$ |
257.9 |
|
$ |
254.5 |
|
||
Loss (income) from discontinued operations, net of tax |
|
0.9 |
|
|
(27.0 |
) |
||
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 |
|
(3.0 |
) |
|
(7.1 |
) |
||
Depreciation |
|
36.4 |
|
|
36.9 |
|
||
Amortization |
|
24.1 |
|
|
27.0 |
|
||
Deferred income taxes |
|
(17.7 |
) |
|
(4.1 |
) |
||
(Gain) loss on sale of business |
|
(3.3 |
) |
|
6.4 |
|
||
Share-based compensation |
|
15.3 |
|
|
16.4 |
|
||
Trade name and other impairment |
|
18.2 |
|
|
6.0 |
|
||
Loss on early extinguishment of debt |
— |
|
|
17.1 |
|
|||
Pension settlement (gain) loss |
|
(11.8 |
) |
|
2.2 |
|
||
Pension and other post-retirement plan contributions |
|
(11.1 |
) |
— |
|
|||
Changes in assets and liabilities, net of effects of business acquisitions |
|
|
||||||
Accounts and notes receivable |
|
82.8 |
|
|
73.5 |
|
||
Inventories |
|
4.0 |
|
|
(36.3 |
) |
||
Other current assets |
|
(10.5 |
) |
|
(11.0 |
) |
||
Accounts payable |
|
(128.8 |
) |
|
(60.1 |
) |
||
Employee compensation and benefits |
|
(19.1 |
) |
|
(25.4 |
) |
||
Other current liabilities |
|
21.3 |
|
|
27.7 |
|
||
Other non-current assets and liabilities |
|
10.5 |
|
|
2.5 |
|
||
Net cash provided by operating activities of continuing operations |
|
266.1 |
|
|
299.2 |
|
||
Net cash used for operating activities of discontinued operations |
|
(1.4 |
) |
|
(14.6 |
) |
||
Net cash provided by operating activities |
|
264.7 |
|
|
284.6 |
|
||
Investing activities |
|
|
||||||
Capital expenditures |
|
(44.6 |
) |
|
(33.8 |
) |
||
Proceeds from sale of property and equipment |
|
0.4 |
|
|
(0.4 |
) |
||
Proceeds from (payments due to) the sale of businesses, net |
|
0.7 |
|
|
(12.8 |
) |
||
Acquisitions, net of cash acquired |
|
(284.5 |
) |
|
(0.9 |
) |
||
Other |
|
(1.5 |
) |
— |
|
|||
Net cash used for investing activities of continuing operations |
|
(329.5 |
) |
|
(47.9 |
) |
||
Net cash used for investing activities of discontinued operations |
— |
|
|
(7.1 |
) |
|||
Net cash used for investing activities |
|
(329.5 |
) |
|
(55.0 |
) |
||
Financing activities |
|
|
||||||
Net receipts of commercial paper and revolving long-term debt |
|
91.2 |
|
|
46.0 |
|
||
Proceeds from long-term debt |
|
400.0 |
|
— |
|
|||
Repayments of long-term debt |
|
(151.5 |
) |
|
(675.1 |
) |
||
Debt issuance costs |
|
(6.3 |
) |
|
(2.0 |
) |
||
Premium paid on early extinguishment of debt |
— |
|
|
(16.0 |
) |
|||
Transfer of cash to nVent |
— |
|
|
(74.2 |
) |
|||
Distribution of cash from nVent |
— |
|
|
993.6 |
|
|||
Shares issued to employees, net of shares withheld |
|
6.8 |
|
|
16.0 |
|
||
Repurchases of ordinary shares |
|
(150.0 |
) |
|
(400.0 |
) |
||
Dividends paid |
|
(92.4 |
) |
|
(156.7 |
) |
||
Net cash provided by (used for) financing activities |
|
97.8 |
|
|
(268.4 |
) |
||
Change in cash held for sale |
— |
|
|
27.0 |
|
|||
Effect of exchange rate changes on cash and cash equivalents |
|
5.9 |
|
|
(9.8 |
) |
||
Change in cash and cash equivalents |
|
38.9 |
|
|
(21.6 |
) |
||
Cash and cash equivalents, beginning of period |
|
74.3 |
|
|
86.3 |
|
||
Cash and cash equivalents, end of period |
$ |
113.2 |
|
$ |
64.7 |
|
||
|
|
|
||||||
Pentair plc and Subsidiaries |
||||||||||||||||||||
Reconciliation of the GAAP operating activities cash flow to the non-GAAP free cash flow (Unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Nine months ended |
|
Nine months ended |
||||||||||||||
In millions |
March 31,
|
June 30,
|
September 30,
|
September 30,
|
|
September 30,
|
||||||||||||||
Net cash provided by (used for) operating activities of continuing operations |
$ |
(257.1 |
) |
$ |
356.3 |
|
$ |
166.9 |
|
$ |
266.1 |
|
|
$ |
299.2 |
|
||||
Capital expenditures |
|
(16.8 |
) |
|
(13.0 |
) |
|
(14.8 |
) |
|
(44.6 |
) |
|
|
(33.8 |
) |
||||
Proceeds from sale of property and equipment |
|
0.3 |
|
|
0.1 |
|
— |
|
|
0.4 |
|
|
|
(0.4 |
) |
|||||
Free cash flow from continuing operations |
$ |
(273.6 |
) |
$ |
343.4 |
|
$ |
152.1 |
|
$ |
221.9 |
|
|
$ |
265.0 |
|
||||
Net cash provided by (used for) operating activities of discontinued operations |
|
0.8 |
|
|
(3.3 |
) |
|
1.1 |
|
|
(1.4 |
) |
|
|
(14.6 |
) |
||||
Capital expenditures of discontinued operations |
— |
|
— |
|
— |
|
— |
|
|
|
(7.4 |
) |
||||||||
Proceeds from sale of property and equipment of discontinued operations |
— |
|
— |
|
— |
|
— |
|
|
|
2.3 |
|
||||||||
Free cash flow |
$ |
(272.8 |
) |
$ |
340.1 |
|
$ |
153.2 |
|
$ |
220.5 |
|
|
$ |
245.3 |
|
||||
Pentair plc and Subsidiaries |
||||||||||||||||||||||||||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
2019 |
|
2018 |
|||||||||||||||||||||||||||||
In millions |
First
|
Second
|
Third
|
Nine
|
|
First
|
Second
|
Third
|
Nine
|
|||||||||||||||||||||||
Net sales |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Aquatic Systems |
$ |
220.5 |
|
$ |
270.6 |
|
$ |
218.7 |
|
$ |
709.8 |
|
|
$ |
240.4 |
|
$ |
276.2 |
|
$ |
232.7 |
|
$ |
749.3 |
|
|||||||
Filtration Solutions |
|
239.3 |
|
|
285.6 |
|
|
273.5 |
|
|
798.4 |
|
|
|
251.6 |
|
|
262.1 |
|
|
240.4 |
|
|
754.1 |
|
|||||||
Flow Technologies |
|
228.7 |
|
|
243.0 |
|
|
221.0 |
|
|
692.7 |
|
|
|
240.3 |
|
|
241.9 |
|
|
238.0 |
|
|
720.2 |
|
|||||||
Other |
|
0.4 |
|
|
0.3 |
|
|
0.4 |
|
|
1.1 |
|
|
|
0.3 |
|
|
0.4 |
|
|
0.3 |
|
|
1.0 |
|
|||||||
Consolidated |
$ |
688.9 |
|
$ |
799.5 |
|
$ |
713.6 |
|
$ |
2,202.0 |
|
|
$ |
732.6 |
|
$ |
780.6 |
|
$ |
711.4 |
|
$ |
2,224.6 |
|
|||||||
Segment income (loss) |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Aquatic Systems |
$ |
52.4 |
|
$ |
76.8 |
|
$ |
54.8 |
|
$ |
184.0 |
|
|
$ |
60.0 |
|
$ |
79.6 |
|
$ |
59.9 |
|
$ |
199.5 |
|
|||||||
Filtration Solutions |
|
33.7 |
|
|
50.0 |
|
|
45.1 |
|
|
128.8 |
|
|
|
33.7 |
|
|
52.3 |
|
|
38.4 |
|
|
124.4 |
|
|||||||
Flow Technologies |
|
30.1 |
|
|
41.9 |
|
|
37.9 |
|
|
109.9 |
|
|
|
38.7 |
|
|
44.4 |
|
|
36.6 |
|
|
119.7 |
|
|||||||
Other |
|
(17.5 |
) |
|
(14.6 |
) |
|
(15.0 |
) |
|
(47.1 |
) |
|
|
(15.4 |
) |
|
(12.2 |
) |
|
(13.1 |
) |
|
(40.7 |
) |
|||||||
Consolidated |
$ |
98.7 |
|
$ |
154.1 |
|
$ |
122.8 |
|
$ |
375.6 |
|
|
$ |
117.0 |
|
$ |
164.1 |
|
$ |
121.8 |
|
$ |
402.9 |
|
|||||||
Return on sales |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Aquatic Systems |
|
23.8 |
% |
|
28.4 |
% |
|
25.1 |
% |
|
25.9 |
% |
|
|
25.0 |
% |
|
28.8 |
% |
|
25.7 |
% |
|
26.6 |
% |
|||||||
Filtration Solutions |
|
14.1 |
% |
|
17.5 |
% |
|
16.5 |
% |
|
16.1 |
% |
|
|
13.4 |
% |
|
20.0 |
% |
|
16.0 |
% |
|
16.5 |
% |
|||||||
Flow Technologies |
|
13.2 |
% |
|
17.2 |
% |
|
17.1 |
% |
|
15.9 |
% |
|
|
16.1 |
% |
|
18.4 |
% |
|
15.4 |
% |
|
16.6 |
% |
|||||||
Consolidated |
|
14.3 |
% |
|
19.3 |
% |
|
17.2 |
% |
|
17.1 |
% |
|
|
16.0 |
% |
|
21.0 |
% |
|
17.1 |
% |
|
18.1 |
% |
|||||||
Pentair plc and Subsidiaries |
||||||||||||||||||||||
Reconciliation of the GAAP year ended December 31, 2019 to the non-GAAP |
||||||||||||||||||||||
excluding the effect of 2019 adjustments (Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
Actual |
|
|
Forecast |
||||||||||||||||||
In millions, except per-share data |
First
|
Second
|
Third
|
|
|
Fourth
|
Full
|
|||||||||||||||
Net sales |
$ |
688.9 |
|
$ |
799.5 |
|
$ |
713.6 |
|
|
approx |
Up 2 % |
Flat |
|||||||||
Operating income |
|
67.6 |
|
|
133.8 |
|
|
108.8 |
|
|
approx |
Up 19 - 21 % |
Up 3 % |
|||||||||
% of net sales |
|
9.8 |
% |
|
16.7 |
% |
|
15.2 |
% |
|
|
|
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||||||||
Restructuring and other |
|
1.1 |
|
|
6.7 |
|
|
5.9 |
|
|
approx |
— |
|
|
14 |
|
||||||
Intangible amortization |
|
8.2 |
|
|
8.3 |
|
|
7.6 |
|
|
approx |
7 |
|
|
31 |
|
||||||
Asset impairment |
|
15.3 |
|
|
2.9 |
|
— |
|
|
approx |
— |
|
|
18 |
|
|||||||
Inventory step-up |
|
1.7 |
|
|
0.5 |
|
— |
|
|
approx |
— |
|
|
2 |
|
|||||||
Deal-related costs and expenses |
|
4.2 |
|
— |
|
— |
|
|
approx |
— |
|
|
4 |
|
||||||||
Equity income of unconsolidated subsidiaries |
|
0.6 |
|
|
1.9 |
|
|
0.5 |
|
|
approx |
1 |
|
|
4 |
|
||||||
Segment income |
|
98.7 |
|
|
154.1 |
|
|
122.8 |
|
|
approx |
Up 6 - 8 % |
Down 3 % |
|||||||||
Return on sales |
|
14.3 |
% |
|
19.3 |
% |
|
17.2 |
% |
|
|
|
|
|||||||||
Net income from continuing operations—as reported |
|
52.4 |
|
|
115.1 |
|
|
91.3 |
|
|
approx |
102 - 106 |
|
355 |
|
|||||||
(Gain) loss on sale of business |
|
(3.5 |
) |
|
0.1 |
|
|
0.1 |
|
|
approx |
— |
|
|
(3 |
) |
||||||
Pension settlement (gain) loss |
— |
|
|
(12.2 |
) |
|
0.4 |
|
|
approx |
— |
|
|
(12 |
) |
|||||||
Adjustments to operating income |
|
30.5 |
|
|
18.4 |
|
|
13.5 |
|
|
approx |
7 |
|
|
69 |
|
||||||
Income tax adjustments |
|
(5.4 |
) |
|
(3.8 |
) |
|
(7.4 |
) |
|
approx |
(1 |
) |
|
(9 |
) |
||||||
Net income from continuing operations—as adjusted |
$ |
74.0 |
|
$ |
117.6 |
|
$ |
97.9 |
|
|
approx |
$108 - $112 |
$ |
|
400 |
|
||||||
Continuing earnings per ordinary share—diluted |
|
|
|
|
|
|
|
|||||||||||||||
Diluted earnings per ordinary share—as reported |
$ |
0.30 |
|
$ |
0.68 |
|
$ |
0.54 |
|
|
approx |
$0.60 - $0.62 |
$ |
|
2.09 |
|
||||||
Adjustments |
|
0.13 |
|
|
0.01 |
|
|
0.04 |
|
|
approx |
0.04 |
|
0.26 |
|
|||||||
Diluted earnings per ordinary share—as adjusted |
$ |
0.43 |
|
$ |
0.69 |
|
$ |
0.58 |
|
|
approx |
$0.64 - $0.66 |
$ |
|
2.35 |
|
||||||
Pentair plc and Subsidiaries |
||||||||||||||||||||
Reconciliation of the GAAP year ended December 31, 2018 to the non-GAAP |
||||||||||||||||||||
excluding the effect of 2018 adjustments (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
In millions, except per-share data |
First
|
Second
|
Third
|
Fourth
|
Full
|
|||||||||||||||
Net sales |
$ |
732.6 |
|
$ |
780.6 |
|
$ |
711.4 |
|
$ |
740.5 |
|
$ |
2,965.1 |
|
|||||
Operating income |
|
92.7 |
|
|
122.6 |
|
|
108.4 |
|
|
113.0 |
|
|
436.7 |
|
|||||
% of net sales |
|
12.7 |
% |
|
15.7 |
% |
|
15.2 |
% |
|
15.3 |
% |
|
14.7 |
% |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Restructuring and other |
|
5.6 |
|
|
19.0 |
|
|
3.5 |
|
|
3.7 |
|
|
31.8 |
|
|||||
Intangible amortization |
|
9.3 |
|
|
9.1 |
|
|
8.6 |
|
|
7.9 |
|
|
34.9 |
|
|||||
Trade name and other impairment |
— |
|
|
6.0 |
|
— |
|
|
6.0 |
|
|
12.0 |
|
|||||||
Corporate allocations |
|
8.8 |
|
|
2.2 |
|
— |
|
— |
|
|
11.0 |
|
|||||||
Deal-related costs and expenses |
— |
|
— |
|
— |
|
|
2.0 |
|
|
2.0 |
|
||||||||
Equity income of unconsolidated subsidiaries |
|
0.6 |
|
|
5.2 |
|
|
1.3 |
|
|
1.3 |
|
|
8.4 |
|
|||||
Segment income |
|
117.0 |
|
|
164.1 |
|
|
121.8 |
|
|
133.9 |
|
|
536.8 |
|
|||||
Return on sales |
|
16.0 |
% |
|
21.0 |
% |
|
17.1 |
% |
|
18.1 |
% |
|
18.1 |
% |
|||||
Net income from continuing operations—as reported |
|
58.4 |
|
|
77.9 |
|
|
91.2 |
|
|
94.2 |
|
|
321.7 |
|
|||||
Loss on sale of business |
|
5.3 |
|
|
0.9 |
|
|
0.2 |
|
|
0.9 |
|
|
7.3 |
|
|||||
Loss on early extinguishment of debt |
— |
|
|
17.1 |
|
— |
|
— |
|
|
17.1 |
|
||||||||
Interest expense adjustment |
|
6.0 |
|
|
2.4 |
|
— |
|
— |
|
|
8.4 |
|
|||||||
Pension and other post-retirement mark-to-market loss |
— |
|
— |
|
|
2.2 |
|
|
1.4 |
|
|
3.6 |
|
|||||||
Adjustments to operating income |
|
23.7 |
|
|
36.3 |
|
|
12.1 |
|
|
19.6 |
|
|
91.7 |
|
|||||
Income tax adjustments |
|
(4.5 |
) |
|
(7.1 |
) |
|
(10.3 |
) |
|
(11.5 |
) |
|
(33.4 |
) |
|||||
Net income from continuing operations—as adjusted |
$ |
88.9 |
|
$ |
127.5 |
|
$ |
95.4 |
|
$ |
104.6 |
|
$ |
416.4 |
|
|||||
Continuing earnings per ordinary share—diluted |
|
|
|
|
|
|||||||||||||||
Diluted earnings per ordinary share—as reported |
$ |
0.32 |
|
$ |
0.44 |
|
$ |
0.52 |
|
$ |
0.54 |
|
$ |
1.81 |
|
|||||
Adjustments |
|
0.17 |
|
|
0.27 |
|
|
0.02 |
|
|
0.06 |
|
|
0.54 |
|
|||||
Diluted earnings per ordinary share—as adjusted |
$ |
0.49 |
|
$ |
0.71 |
|
$ |
0.54 |
|
$ |
0.60 |
|
$ |
2.35 |
|
|||||
Pentair plc and Subsidiaries |
||||||||||||
Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment |
||||||||||||
For the Quarter Ending September 30, 2019 (Unaudited) |
||||||||||||
|
||||||||||||
|
Actual |
|||||||||||
|
Q3 Net Sales Growth |
|||||||||||
|
Core |
Currency |
Acq. / Div. |
Total |
||||||||
Total Pentair |
(1.9 |
)% |
(1.1 |
)% |
3.3 |
% |
0.3 |
% |
||||
Aquatic Systems |
(4.5 |
)% |
(0.3 |
)% |
(1.2 |
)% |
(6.0 |
)% |
||||
Filtration Solutions |
3.6 |
% |
(1.8 |
)% |
12.0 |
% |
13.8 |
% |
||||
Flow Technologies |
(5.1 |
)% |
(1.1 |
)% |
(0.9 |
)% |
(7.1 |
)% |
||||
Pentair plc and Subsidiaries |
||||||||||||||||||||||||||
Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment |
||||||||||||||||||||||||||
For the Quarter and Year Ending December 31, 2019 (Unaudited) |
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||
|
|
Forecast |
||||||||||||||||||||||||
|
|
Q4 Net Sales Growth |
|
Full Year Net Sales Growth |
||||||||||||||||||||||
|
|
Core |
Currency |
Acq. /
|
Total |
|
Core |
Currency |
Acq. /
|
Total |
||||||||||||||||
Total Pentair |
approx |
0 |
% |
(1 |
)% |
3 |
% |
2 |
% |
|
(1 |
)% |
(1 |
)% |
2 |
% |
0 |
% |
||||||||
Aquatic Systems |
approx |
(3) - (1 |
)% |
0 |
% |
(1 |
)% |
(4) - (2 |
)% |
|
(5) - (4 |
)% |
0 |
% |
(1 |
)% |
(6) - (5 |
)% |
||||||||
Filtration Solutions |
approx |
0 |
% |
(1 |
)% |
12 |
% |
11 |
% |
|
0 |
% |
(3 |
)% |
10 |
% |
7 |
% |
||||||||
Flow Technologies |
approx |
0 |
% |
0 |
% |
(1 |
)% |
(1 |
)% |
|
0 |
% |
(1 |
)% |
(2 |
) % |
(3 |
)% |
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20191023005179/en/
PENTAIR CONTACTS
Jim Lucas
Senior Vice President, Investor Relations and Treasurer
Direct: 763-656-5575
Email: [email protected]
Rebecca Osborn
Senior Manager, External Communications
Direct: 763-656-5589
Email: [email protected]
Source: Pentair plc