Jim Lucas | Rebecca Osborn |
SVP, Treasurer, FP&A, and Investor Relations | Senior Manager, External Communications |
Direct: 763-656-5575 | Direct: 763-656-5589 |
Email: jim.lucas@pentair.com
|
Email: rebecca.osborn@pentair.com
|
Pentair plc and Subsidiaries | ||||||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
Three months ended | Six months ended | |||||||
In millions, except per-share data |
June 30, 2021 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | ||||
Net sales | $ | 941.1 | $ | 713.3 | $ | 1,807.0 | $ | 1,423.3 |
Cost of goods sold | 600.1 | 468.2 | 1,150.8 | 926.6 | ||||
Gross profit | 341.0 | 245.1 | 656.2 | 496.7 | ||||
% of net sales | 36.2 | % | 34.4 | % | 36.3 | % | 34.9 | % |
Selling, general and administrative | 158.2 | 116.7 | 294.8 | 248.6 | ||||
% of net sales | 16.8 | % | 16.4 | % | 16.3 | % | 17.5 | % |
Research and development | 21.0 | 17.3 | 42.5 | 36.3 | ||||
% of net sales | 2.2 | % | 2.4 | % | 2.4 | % | 2.6 | % |
Operating income | 161.8 | 111.1 | 318.9 | 211.8 | ||||
% of net sales | 17.2 | % | 15.6 | % | 17.6 | % | 14.9 | % |
Other expense: | ||||||||
Loss on sale of businesses | - | 0.1 | - | 0.1 | ||||
Other expense (income) | 0.3 | (0.3) | 0.7 | 0.9 | ||||
Net interest expense | 3.8 | 7.7 | 8.9 | 14.6 | ||||
% of net sales | 0.4 | % | 1.1 | % | 0.5 | % | 1.0 | % |
Income from continuing operations before income taxes
| 157.7 | 103.6 | 309.3 | 196.2 | ||||
Provision for income taxes | 25.1 | 29.8 | 45.6 | 49.7 | ||||
Effective tax rate | 15.9 | % | 28.8 | % | 14.7 | % | 25.3 | % |
Net income from continuing operations
| 132.6 | 73.8 | 263.7 | 146.5 | ||||
Loss from discontinued operations, net of tax | (0.5) | (1.7) | (3.0) | (1.7) | ||||
Net income | $ | 132.1 | $ | 72.1 | $ | 260.7 | $ | 144.8 |
Earnings (loss) per ordinary share | ||||||||
Basic | ||||||||
Continuing operations | $ | 0.80 | $ | 0.44 | $ | 1.59 | $ | 0.88 |
Discontinued operations | - | (0.01) | (0.02) | (0.01) | ||||
Basic earnings per ordinary share | $ | 0.80 | $ | 0.43 | $ | 1.57 | $ | 0.87 |
Diluted | ||||||||
Continuing operations | $ | 0.79 | $ | 0.44 | $ | 1.57 | $ | 0.87 |
Discontinued operations | - | (0.01) | (0.02) | (0.01) | ||||
Diluted earnings per ordinary share | $ | 0.79 | $ | 0.43 | $ | 1.55 | $ | 0.86 |
Weighted average ordinary shares outstanding | ||||||||
Basic | 166.0 | 165.8 | 166.1 | 166.8 | ||||
Diluted | 167.8 | 166.4 | 167.7 | 167.5 | ||||
Cash dividends paid per ordinary share | $ | 0.20 | $ | 0.19 | $ | 0.40 | $ | 0.38 |
Pentair plc and Subsidiaries | ||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||
June 30, 2021 |
December 31, 2020 | |||
In millions | ||||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 95.9 | $ | 82.1 |
Accounts and notes receivable, net | 435.3 | 367.5 | ||
Inventories | 463.4 | 420.0 | ||
Other current assets | 112.7 | 105.5 | ||
Total current assets | 1,107.3 | 975.1 | ||
Property, plant and equipment, net | 297.1 | 301.2 | ||
Other assets | ||||
Goodwill | 2,402.1 | 2,392.2 | ||
Intangibles, net | 348.4 | 325.9 | ||
Other non-current assets | 199.8 | 202.8 | ||
Total other assets | 2,950.3 | 2,920.9 | ||
Total assets | $ | 4,354.7 | $ | 4,197.2 |
Liabilities and Equity | ||||
Current liabilities | ||||
Accounts payable | $ | 315.3 | $ | 245.1 |
Employee compensation and benefits | 126.1 | 117.0 | ||
Other current liabilities | 489.7 | 410.4 | ||
Total current liabilities | 931.1 | 772.5 | ||
Other liabilities | ||||
Long-term debt | 716.6 | 839.6 | ||
Pension and other post-retirement compensation and benefits | 100.0 | 102.0 | ||
Deferred tax liabilities | 96.3 | 107.4 | ||
Other non-current liabilities | 239.1 | 269.4 | ||
Total liabilities | 2,083.1 | 2,090.9 | ||
Equity | 2,271.6 | 2,106.3 | ||
Total liabilities and equity | $ | 4,354.7 | $ | 4,197.2 |
Pentair plc and Subsidiaries | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited)
| ||||
Six months ended | ||||
In millions |
June 30, 2021 |
June 30, 2020 | ||
Operating activities | ||||
Net income | $ | 260.7 | $ | 144.8 |
Loss from discontinued operations, net of tax | 3.0 | 1.7 | ||
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 | (0.1) | (0.3) | ||
Depreciation | 25.5 | 22.8 | ||
Amortization | 13.4 | 14.6 | ||
Deferred income taxes | (4.3) | 13.4 | ||
Loss on sale of businesses | - | 0.1 | ||
Share-based compensation | 16.6 | 10.4 | ||
Changes in assets and liabilities, net of effects of business acquisitions | ||||
Accounts receivable | (49.8) | 103.1 | ||
Inventories | (31.9) | (17.7) | ||
Other current assets | (10.5) | (14.5) | ||
Accounts payable | 51.3 | (64.2) | ||
Employee compensation and benefits | 9.4 | 7.5 | ||
Other current liabilities | 78.7 | 44.9 | ||
Other non-current assets and liabilities | (1.0) | (0.1) | ||
Net cash provided by operating activities of continuing operations | 361.0 | 266.5 | ||
Net cash used for operating activities of discontinued operations | (0.2) | (0.5) | ||
Net cash provided by operating activities | 360.8 | 266.0 | ||
Investing activities | ||||
Capital expenditures | (24.3) | (30.5) | ||
Proceeds from sale of property and equipment | 3.5 | 0.1 | ||
Acquisitions, net of cash acquired | (82.8) | (28.5) | ||
Other | 2.7 | - | ||
Net cash used for investing activities | (100.9) | (58.9) | ||
Financing activities | ||||
Net borrowings of commercial paper and revolving long-term debt | (20.0) | (17.1) | ||
Repayments of long-term debt | (103.8) | - | ||
Shares issued to employees, net of shares withheld | 4.0 | 7.3 | ||
Repurchases of ordinary shares | (50.0) | (115.2) | ||
Dividends paid | (66.7) | (63.7) | ||
Payments upon the maturity of cross currency swaps | (14.7) | - | ||
Net cash used for financing activities | (251.2) | (188.7) | ||
Effect of exchange rate changes on cash and cash equivalents | 5.1 | (10.3) | ||
Change in cash and cash equivalents | 13.8 | 8.1 | ||
Cash and cash equivalents, beginning of period | 82.1 | 82.5 | ||
Cash and cash equivalents, end of period | $ | 95.9 | $ | 90.6 |
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 |
Six months ended | ||||
In millions |
March 31, 2021 |
June 30, 2021 |
June 30, 2021 | |||
Net cash (used for) provided by operating activities of continuing operations | $ | (18.8) | $ | 379.8 | $ | 361.0 |
Capital expenditures | (13.2) | (11.1) | (24.3) | |||
Proceeds from sale of property and equipment | 3.4 | 0.1 | 3.5 | |||
Free cash flow from continuing operations | $ | (28.6) | $ | 368.8 | $ | 340.2 |
Net cash used for discontinued operations | (0.2) | - | (0.2) | |||
Free cash flow | $ | (28.8) | $ | 368.8 | $ | 340.0 |
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 | Six months ended | ||||
In millions |
March 31, 2020 |
June 30, 2020 |
June 30, 2020 | |||
Net cash (used for) provided by operating activities of continuing operations | $ | (162.4) | $ | 428.9 | $ | 266.5 |
Capital expenditures | (18.7) | $ | (11.8) | (30.5) | ||
Proceeds from sale of property and equipment | 0.1 | $ | - | 0.1 | ||
Free cash flow from continuing operations | $ | (181.0) | $ | 417.1 | $ | 236.1 |
Net cash used for discontinued operations | - | (0.5) | (0.5) | |||
Free cash flow | $ | (181.0) | $ | 416.6 | $ | 235.6 |
Pentair plc and Subsidiaries | ||||||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | ||||||||||||
2021 | 2020 | |||||||||||
In millions |
First Quarter |
Second Quarter |
Six Months |
First Quarter |
Second Quarter |
Six Months | ||||||
Net sales | ||||||||||||
Consumer Solutions | $ | 521.4 | $ | 576.9 | $ | 1,098.3 | $ | 388.8 | $ | 401.2 | $ | 790.0 |
Industrial & Flow Technologies | 344.1 | 363.9 | 708.0 | 320.9 | 311.8 | 632.7 | ||||||
Other | 0.4 | 0.3 | 0.7 | 0.3 | 0.3 | 0.6 | ||||||
Consolidated | $ | 865.9 | $ | 941.1 | $ | 1,807.0 | $ | 710.0 | $ | 713.3 | $ | 1,423.3 |
Segment income (loss) | ||||||||||||
Consumer Solutions | $ | 131.0 | $ | 143.4 | $ | 274.4 | $ | 84.8 | $ | 96.7 | $ | 181.5 |
Industrial & Flow Technologies | 50.0 | 57.1 | 107.1 | 44.7 | 44.1 | 88.8 | ||||||
Other | (16.6) | (25.6) | (42.2) | (18.0) | (16.1) | (34.1) | ||||||
Consolidated | $ | 164.4 | $ | 174.9 | $ | 339.3 | $ | 111.5 | $ | 124.7 | $ | 236.2 |
Return on sales | ||||||||||||
Consumer Solutions | 25.1 | % | 24.9 | % | 25.0 | % | 21.8 | % | 24.1 | % | 23.0 | % |
Industrial & Flow Technologies | 14.5 | % | 15.7 | % | 15.1 | % | 13.9 | % | 14.1 | % | 14.0 | % |
Consolidated | 19.0 | % | 18.6 | % | 18.8 | % | 15.7 | % | 17.5 | % | 16.6 | % |
Pentair plc and Subsidiaries | ||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2021 | ||||||||
excluding the effect of adjustments (Unaudited) | ||||||||
Actual | Forecast | |||||||
In millions, except per-share data |
First Quarter |
Second Quarter |
Third Quarter |
Full Year | ||||
Net sales | $ | 865.9 | $ | 941.1 | approx | Up 16% - 19% | approx | Up 21% - 23% |
Operating income | 157.1 | 161.8 | ||||||
% of net sales | 18.1 | % | 17.2 | % | ||||
Adjustments: | ||||||||
Restructuring, transformation and other costs | 1.5 | 5.8 | approx | $ | - | approx | $ | 7 |
Intangible amortization | 7.1 | 6.3 | approx | 6 | approx | 26 | ||
COVID-19 related costs and expenses | 0.2 | 0.1 | approx | - | approx | - | ||
Legal accrual adjustments | (2.4) | - | approx | - | approx | (2) | ||
Deal-related costs and expenses | 0.7 | 1.0 | approx | - | approx | 2 | ||
Equity income (loss) of unconsolidated subsidiaries | 0.2 | (0.1) | approx | 1 | approx | 2 | ||
Segment income | 164.4 | 174.9 | approx | Up 18% - 23% | approx | Up 30% - 34% | ||
Return on sales | 19.0 | % | 18.6 | % | ||||
Net income from continuing operations-as reported
| 131.1 | 132.6 | approx | $129 - $136 | approx | $525 - $542 | ||
Other income | - | (0.3) | approx | - | approx | $ | - | |
Adjustments to operating income | 7.1 | 13.2 | approx | 6 | approx | 33 | ||
Income tax adjustments | (2.4) | (4.6) | approx | 1 | approx | (5) | ||
Net income from continuing operations-as adjusted
| $ | 135.8 | $ | 140.9 | approx | $136 - $143 | approx | $553 - $570 |
Continuing earnings per ordinary share-diluted
| ||||||||
Diluted earnings per ordinary share-as reported | $ | 0.78 | $ | 0.79 | approx | $0.77 - $0.81 | approx | $3.13 - $3.23 |
Adjustments | 0.03 | 0.05 | approx | 0.04 | approx | 0.17 | ||
Diluted earnings per ordinary share-as adjusted | $ | 0.81 | $ | 0.84 | approx | $0.81 - $0.85 | approx | $3.30 - $3.40 |
Pentair plc and Subsidiaries | ||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2020 | ||||||||||
excluding the effect of 2020 adjustments (Unaudited) | ||||||||||
In millions, except per-share data |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full Year | |||||
Net sales | $ | 710.0 | $ | 713.3 | $ | 798.5 | $ | 796.0 | $ | 3,017.8 |
Operating income | 100.7 | 111.1 | 128.1 | 121.5 | 461.4 | |||||
% of net sales | 14.2 | % | 15.6 | % | 16.0 | % | 15.3 | % | 15.3 | % |
Adjustments: | ||||||||||
Restructuring and other | 2.4 | 1.1 | 2.1 | 9.8 | 15.4 | |||||
Intangible amortization | 7.6 | 7.0 | 6.9 | 6.9 | 28.4 | |||||
COVID-19 related costs and expenses
| 0.9 | 4.8 | 2.6 | 2.1 | 10.4 | |||||
Deal-related costs and expenses
| 0.4 | - | - | 0.2 | 0.6 | |||||
Equity (loss) income of unconsolidated subsidiaries
| (0.5) | 0.7 | 0.8 | 0.4 | 1.4 | |||||
Segment income | 111.5 | 124.7 | 140.5 | 140.9 | 517.6 | |||||
Return on sales | 15.7 | % | 17.5 | % | 17.6 | % | 17.7 | % | 17.2 | % |
Net income from continuing operations-as reported
| 72.7 | 73.8 | 110.8 | 99.8 | 357.1 | |||||
Loss on sale of businesses | - | 0.1 | - | - | 0.1 | |||||
Pension and other post retirement mark-to-market loss | - | - | - | 6.7 | 6.7 | |||||
Other income | - | - | (2.2) | - | (2.2) | |||||
Adjustments to operating income | 11.3 | 12.9 | 11.6 | 19.0 | 54.8 | |||||
Income tax adjustments | 3.3 | 11.1 | (3.6) | (8.1) | 2.7 | |||||
Net income from continuing operations-as adjusted
| $ | 87.3 | $ | 97.9 | $ | 116.6 | $ | 117.4 | $ | 419.2 |
Continuing earnings per ordinary share-diluted
| ||||||||||
Diluted earnings per ordinary share-as reported | $ | 0.43 | $ | 0.44 | $ | 0.66 | $ | 0.60 | $ | 2.13 |
Adjustments | 0.09 | 0.15 | 0.04 | 0.10 | 0.37 | |||||
Diluted earnings per ordinary share-as adjusted | $ | 0.52 | $ | 0.59 | $ | 0.70 | $ | 0.70 | $ | 2.50 |
Pentair plc and Subsidiaries | ||||||||
Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment | ||||||||
For the Quarter Ended June 30, 2021 (Unaudited) | ||||||||
Q2 Net Sales Growth | ||||||||
Core | Currency | Acq. / Div. | Total | |||||
Total Pentair | 27.7 | % | 2.5 | % | 1.7 | % | 31.9 | % |
Consumer Solutions | 39.4 | % | 1.3 | % | 3.1 | % | 43.8 | % |
Industrial & Flow Technologies | 12.4 | % | 4.3 | % | - | % | 16.7 | % |
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Disclaimer
Pentair plc published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 10:59:04 UTC.