Revenue up 4% (7% organic) driven primarily by Connect & Control Technologies (CCT)
Orders up 11% (14% organic) driven by strong demand in Industrial Process (IP) and CCT
Deployed over $235 million of capital, including $186 million of share repurchases
Announced $140 million acquisition of Habonim, a specialty valves manufacturer, in Q2
Maintaining full year 2022 revenue, segment margin and adjusted EPS guidance
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--May 3, 2022-- ITT Inc. (NYSE: ITT) today reported financial results for the first quarter ended April 2, 2022. The company reported a year-over-year revenue increase of 4.0%, up 6.8% on an organic basis. This was primarily driven by strong demand for connectors and aerospace components in CCT and short-cycle products in IP, strength in Motion Technologies (MT) Friction aftermarket, and pricing actions that contributed approximately 3% to organic revenue growth – most notably in MT.
Segment operating margin of 14.6% for the first quarter declined 240 basis points versus prior year driven by significant cost inflation, which negatively impacted margins by 760 basis points year over year, a charge related to the suspension of operations in Russia, and strategic investments for growth. This was partially offset by pricing actions and productivity savings across the businesses, and higher sales volume primarily in CCT.
Earnings per share of $0.88 for the first quarter declined 11.0% versus prior year due to lower segment operating income, which included a charge related to the suspension of operations in Russia, partially offset by the benefit of share repurchases and a lower effective tax rate. Excluding the impact of the Russia charge and other items, adjusted earnings per share of $0.97 declined 8.5% versus prior year driven by significantly higher material and overhead costs which more than offset the operational improvements and pricing actions.
Operating cash flow for the first quarter declined $73.5 million to $(2.7) million primarily due to lower segment operating income, increased working capital investments to support sales growth and to mitigate continued supply chain disruptions, and timing of accounts receivable collections.
Table 1. First Quarter Performance | ||||||||||||
Q1 2022 | Q1 2021 | Change | ||||||||||
Revenue | $ | 726.2 |
$ | 698.4 |
4.0 |
% | ||||||
Organic | 6.8 |
% | ||||||||||
Segment Operating Income | $ | 105.8 |
$ | 118.8 |
(10.9) |
% | ||||||
Segment Operating Margin | 14.6 |
% | 17.0 |
% | (240) |
bps | ||||||
Adjusted Segment Operating Income | $ | 116.4 |
$ | 122.1 |
(4.7) |
% | ||||||
Adjusted Segment Operating Margin | 16.0 |
% | 17.5 |
% | (150) |
bps | ||||||
Earnings Per Share | $ | 0.88 |
$ | 0.99 |
(11.1) |
% | ||||||
Adjusted Earnings Per Share | $ | 0.97 |
$ | 1.06 |
(8.5) |
% | ||||||
Operating Cash Flow | $ | (2.7) |
$ | 70.8 |
(103.8) |
% | ||||||
Free Cash Flow | $ | (32.7) |
$ | 53.6 |
(161.0) |
% | ||||||
Note: all results unaudited | ||||||||||||
Management Commentary
“Once again, this quarter all of our ITTers around the world drove a solid performance, focusing relentlessly on the right priorities, further demonstrating ITT’s resiliency. We fought a significant labor shortage at the beginning of 2022 stemming from the sudden and sharp rise in the COVID-19 omicron variant in January. We faced inflation that was higher than planned in raw materials and overhead costs as well as labor shortages in North America. And, we are now managing the impacts of the war in Ukraine which in the quarter impacted our Friction, rail, and Industrial Process businesses. Still, despite all these challenges, the team delivered on its commitments in Q1,” said Luca Savi, Chief Executive Officer and President of ITT.
“We continued to outperform in the main end markets where we participate and are investing for the future. In the first quarter we drove 14% organic orders growth on the strength of Industrial Process and Connect & Control Technologies. We generated 7% organic revenue growth driven by all businesses despite continued labor, material, and supply constraints, with CCT growing 23% organically. We deployed over $235 million of capital, including to repurchase $186 million of ITT shares, reducing our share count by 2%. Finally, on April 4th we announced the acquisition of Habonim, an Israeli-based manufacturer of specialty ball valves and actuation technologies, which further demonstrates our commitment to strategically deploy our capital,” Savi continued.
Savi concluded, “There are clear headwinds in the near term. We are taking actions to address these challenges and continue to invest in the future of ITT, both organically and through M&A, to ensure we grow profitability and outperform over the long term.”
Table 2. First Quarter Segment Results | ||||||||||||||||
Revenue | Operating Income | |||||||||||||||
Q1 2022 | Reported Increase / (Decrease) |
Organic Growth / (Decline) |
Q1 2022 | Reported Increase / (Decrease) |
Adjusted Increase / (Decrease) |
|||||||||||
Motion Technologies | $ | 370.1 |
0.3 |
% | 4.0 |
% | $ | 59.7 |
(21.4) |
% | (14.7) |
% | ||||
Industrial Process | 202.2 |
- |
% | 1.9 |
% | 20.4 |
(34.2) |
% | (19.1) |
% | ||||||
Connect & Control Technologies | 154.6 |
21.4 |
% | 23.2 |
% | 25.7 |
117.8 |
% | 81.7 |
% | ||||||
Total segment results | 726.2 |
4.0 |
% | 6.8 |
% | 105.8 |
(10.9) |
% | (4.7) |
% | ||||||
Note: all results unaudited; excludes intercompany eliminations; comparisons to Q1 2021 | ||||||||||||||||
Motion Technologies revenue increased primarily due to demand in Friction’s aftermarket business. Operating income decreased to $59.7 million primarily due to significantly higher material inflation, partially offset by pricing actions and productivity savings.
Industrial Process revenue was flat year over year due to growth in the short cycle businesses within the general industrial and chemical markets, offset by a decline in pump project activity. IP’s results continue to be impacted by labor shortages, supplier delays, and extended lead times, principally in the projects business. Operating income decreased to $20.4 million primarily due to higher material inflation, partially offset by productivity savings, favorable sales mix, and pricing actions.
Connect & Control Technologies revenue increased due to strong connector sales, principally in the industrial market, and higher component sales in commercial aerospace and defense. Operating income increased to $25.7 million primarily driven by productivity savings, higher sales volume, and limited pricing actions, partially offset by higher material costs and unfavorable sales mix.
We continue to expect revenue growth of 7% to 9%, or up 9% to 11% on an organic basis; segment operating margin of 17.5% to 18.4%; and adjusted segment operating margin of 17.6% to 18.5%, up 40 to 130 bps. We now expect earnings per share of $4.07 to $4.50, with no change to adjusted earnings per share of $4.30 to $4.70 per share, up 6% to 16%. Free cash flow is now expected to be in a range of $250 million to $300 million, representing free cash flow margin of approximately 8% to 10% for the full year.
The company’s 2022 guidance assumes continued disruptions in the global supply chain stemming from labor shortages, supplier delays, and raw material inflation, which we anticipate will persist through at least the first half of 2022. The guidance also assumes a significant reduction in sales in Russia stemming from the conflict in Ukraine, which we currently estimate will impact revenue by approximately $60 to $85 million for the full year. The guidance does not include the potential impact, if any, of a prolonged shutdown in China due to the reemergence of COVID-19.
Investor Conference Call Details
ITT’s management will host a conference call for investors on Tuesday, May 3 at 8:30 a.m., Eastern Time. The briefing can be accessed live via webcast which is available on the company’s website: investors.itt.com. A replay of the webcast will be available for 90 days following the presentation. A replay will also be available telephonically from two hours after the webcast until Tuesday, May 17, 2022, at midnight, Eastern Time. Reconciliations of non-GAAP financial performance metrics to their most comparable U.S. GAAP financial performance metrics are defined and presented below and should not be considered a substitute for, nor superior to, the financial data prepared in accordance with U.S. GAAP.
Safe Harbor Statement
This release contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In addition, the conference call (including the financial results presentation material) may include, and officers and representatives of ITT may from time to time make and discuss, projections, goals, assumptions, and statements that may constitute “forward-looking statements”. These forward-looking statements are not historical facts, but rather represent only a belief regarding future events based on current expectations, estimates, assumptions and projections about our business, future financial results, and the industry in which we operate, and other legal, regulatory, and economic developments. These forward-looking statements include, but are not limited to, future strategic plans and other statements that describe the company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future events and future operating or financial performance.
We use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “future,” “may,” “will,” “could,” “should,” “potential,” “continue,” “guidance” and other similar expressions to identify such forward-looking statements. Forward-looking statements are uncertain, and, by their nature, many are inherently unpredictable and outside of ITT’s control, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements.
Where in any forward-looking statement we express an expectation or belief as to future results or events, such expectation or belief is based on current plans and expectations of our management, expressed in good faith, and believed to have a reasonable basis. However, we cannot provide any assurance that the expectation or belief will occur or that anticipated results will be achieved or accomplished.
Among the factors that could cause our results to differ materially from those indicated by forward-looking statements are risks and uncertainties inherent in our business including, without limitation:
The forward-looking statements included in this release speak only as of the date hereof. We undertake no obligation (and expressly disclaim any obligation) to update any forward-looking statements, whether written or oral or as a result of new information, future events or otherwise. More information on factors that could cause actual results or events to differ materially from those anticipated is included in the Risk Factors section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the Securities and Exchange Commission.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |||||||||
For the Three Months Ended | April 2, 2022 | April 3, 2021 | |||||||
Revenue | $ | 726.2 |
|
$ | 698.4 |
|
|||
Cost of revenue | 507.8 |
|
469.4 |
|
|||||
Gross profit | 218.4 |
|
229.0 |
|
|||||
General and administrative expenses | 60.4 |
|
58.1 |
|
|||||
Sales and marketing expenses | 38.4 |
|
36.7 |
|
|||||
Research and development expenses | 25.0 |
|
24.3 |
|
|||||
Operating income | 94.6 |
|
109.9 |
|
|||||
Interest and non-operating income, net | (0.2 |
) |
(1.3 |
) |
|||||
Income from continuing operations before income tax expense | 94.8 |
|
111.2 |
|
|||||
Income tax expense | 19.5 |
|
24.7 |
|
|||||
Net income | 75.3 |
|
86.5 |
|
|||||
Less: Income attributable to noncontrolling interests | 0.5 |
|
0.3 |
|
|||||
Net income attributable to ITT Inc. | $ | 74.8 |
|
$ | 86.2 |
|
|||
Earnings (loss) per share attributable to ITT Inc.: | |||||||||
Basic | $ | 0.88 |
|
$ | 1.00 |
|
|||
Diluted | $ | 0.88 |
|
$ | 0.99 |
|
|||
Weighted average common shares – basic | 84.8 |
|
86.3 |
|
|||||
Weighted average common shares – diluted | 85.2 |
|
86.9 |
|
|||||
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) | |||||||||||||||
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |||||||||||||||
April 2, 2022 | December 31, 2021 |
||||||||||||||
Assets | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 710.4 |
$ | 647.5 |
|||||||||||
Receivables, net | 615.8 |
555.1 |
|||||||||||||
Inventories, net | 475.6 |
430.9 |
|||||||||||||
Other current assets | 102.7 |
88.6 |
|||||||||||||
Total current assets | 1,904.5 |
1,722.1 |
|||||||||||||
Non-current assets: | |||||||||||||||
Plant, property and equipment, net | 504.9 |
509.1 |
|||||||||||||
Goodwill | 918.5 |
924.3 |
|||||||||||||
Other intangible assets, net | 80.9 |
85.7 |
|||||||||||||
Other non-current assets | 316.8 |
324.2 |
|||||||||||||
Total non-current assets | 1,821.1 |
1,843.3 |
|||||||||||||
Total assets | $ | 3,725.6 |
$ | 3,565.4 |
|||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||
Current liabilities: | |||||||||||||||
Commercial paper and current maturities of long-term debt | $ | 487.0 |
$ | 197.6 |
|||||||||||
Accounts payable | 411.0 |
373.4 |
|||||||||||||
Accrued liabilities | 344.3 |
357.3 |
|||||||||||||
Total current liabilities | 1,242.3 |
928.3 |
|||||||||||||
Non-current liabilities: | |||||||||||||||
Postretirement benefits | 196.4 |
199.9 |
|||||||||||||
Other non-current liabilities | 196.7 |
206.5 |
|||||||||||||
Total non-current liabilities | 393.1 |
406.4 |
|||||||||||||
Total liabilities | 1,635.4 |
1,334.7 |
|||||||||||||
Shareholders’ equity: | |||||||||||||||
Common stock: | |||||||||||||||
Authorized – 250.0 shares, $1 par value per share | |||||||||||||||
Issued and outstanding – 83.6 shares and 85.5 shares, respectively | 83.6 |
85.5 |
|||||||||||||
Retained earnings | 2,334.6 |
2,461.6 |
|||||||||||||
Total accumulated other comprehensive loss | (333.3 |
) |
(321.3 |
) |
|||||||||||
Total ITT Inc. shareholders’ equity | 2,084.9 |
2,225.8 |
|||||||||||||
Noncontrolling interests | 5.3 |
4.9 |
|||||||||||||
Total shareholders’ equity | 2,090.2 |
2,230.7 |
|||||||||||||
Total liabilities and shareholders’ equity | $ | 3,725.6 |
$ | 3,565.4 |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||
(IN MILLIONS) | |||||||||
For the Three Months Ended | April 2, 2022 | April 3, 2021 | |||||||
Operating Activities | |||||||||
Income from continuing operations attributable to ITT Inc. | $ | 74.8 |
|
$ | 86.2 |
|
|||
Adjustments to income from continuing operations: | |||||||||
Depreciation and amortization | 27.3 |
|
28.5 |
|
|||||
Equity-based compensation | 3.7 |
|
3.3 |
|
|||||
Other non-cash charges, net | 10.2 |
|
6.3 |
|
|||||
Changes in assets and liabilities: | |||||||||
Change in receivables | (70.7 |
) |
(50.1 |
) |
|||||
Change in inventories | (48.4 |
) |
(21.2 |
) |
|||||
Change in contract assets | (1.7 |
) |
0.6 |
|
|||||
Change in contract liabilities | 11.8 |
|
(2.7 |
) |
|||||
Change in accounts payable | 48.6 |
|
36.6 |
|
|||||
Change in accrued expenses | (42.5 |
) |
(12.4 |
) |
|||||
Change in income taxes | 10.1 |
|
10.4 |
|
|||||
Other, net | (25.9 |
) |
(14.7 |
) |
|||||
Net Cash – Operating Activities | (2.7 |
) |
70.8 |
|
|||||
Investing Activities | |||||||||
Capital expenditures | (30.0 |
) |
(17.2 |
) |
|||||
Other, net | 0.6 |
|
0.1 |
|
|||||
Net Cash – Investing Activities | (29.4 |
) |
(17.1 |
) |
|||||
Financing Activities | |||||||||
Commercial paper, net borrowings | 290.7 |
|
(42.6 |
) |
|||||
Long-term debt, repayments | - |
|
(0.1 |
) |
|||||
Share repurchases under repurchase plan | (163.9 |
) |
(50.0 |
) |
|||||
Share repurchases from net settlement of employee stock incentive plans | (8.4 |
) |
(11.0 |
) |
|||||
Dividends paid | (22.4 |
) |
(19.1 |
) |
|||||
Other, net | 0.6 |
|
- |
|
|||||
Net Cash – Financing Activities | 96.6 |
|
(122.8 |
) |
|||||
Exchange rate effects on cash and cash equivalents | (1.5 |
) |
(10.4 |
) |
|||||
Net cash – operating activities of discontinued operations | (0.1 |
) |
(0.1 |
) |
|||||
Net change in cash and cash equivalents | 62.9 |
|
(79.6 |
) |
|||||
Cash and cash equivalents – beginning of year (includes restricted cash of $0.8 and $0.8, respectively) | 648.3 |
|
860.6 |
|
|||||
Cash and Cash Equivalents – End of Period (includes restricted cash of $0.8 and $0.8, respectively) | $ | 711.2 |
|
$ | 781.0 |
|
|||
Supplemental Disclosures of Cash Flow Information | |||||||||
Cash paid during the year for: | |||||||||
Interest | $ | 0.5 |
|
$ | 0.2 |
|
|||
Income taxes, net of refunds received | $ | 8.5 |
|
$ | 13.4 |
|
Key Performance Indicators and Non-GAAP Measures |
Management reviews a variety of key performance indicators including revenue, segment operating income and margins, earnings per share, order growth, and backlog, some of which are calculated on a non-GAAP basis. In addition, we consider certain measures to be useful to management and investors when evaluating our operating performance for the periods presented. These measures provide a tool for evaluating our ongoing operations and management of assets from period to period. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including, but not limited to, acquisitions, dividends, and share repurchases. Some of these metrics, however, are not measures of financial performance under accounting principles generally accepted in the United States of America (GAAP) and should not be considered a substitute for measures determined in accordance with GAAP. We consider the following non-GAAP measures, which may not be comparable to similarly titled measures reported by other companies, to be key performance indicators for purposes of our reconciliation tables. |
Organic Revenues and Organic Orders are defined, respectively, as revenue and orders, excluding the impacts of foreign currency fluctuations and acquisitions. The period-over-period change resulting from foreign currency fluctuations is estimated using a fixed exchange rate for both the current and prior periods. Management believes that reporting organic revenue and organic orders provides useful information to investors by helping identify underlying trends in our business and facilitating comparisons of our revenue performance with prior and future periods and to our peers. |
Adjusted Operating Income and Adjusted Segment Operating Income are defined, respectively, as total operating income and segment operating income, adjusted to exclude special items that include, but are not limited to, restructuring, severance, certain asset impairment charges, certain acquisition-related impacts, unusual or infrequent operating items and, for 2021, asbestos-related impacts. Special items represent charges or credits that impact current results, which management views as unrelated to the Company's ongoing operations and performance. Adjusted Operating Margin and Adjusted Segment Operating Margin are defined as adjusted operating income or adjusted segment operating income divided by revenue. Adjusted Segment Decremental or Incremental Operating Margin is defined as the change in adjusted segment operating income divided by the change in revenue. We believe these financial measures are useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors. |
Adjusted Income from Continuing Operations and Adjusted EPS are defined, respectively, as income from continuing operations attributable to ITT Inc. and income from continuing operations attributable to ITT Inc. per diluted share, adjusted to exclude special items that include, but are not limited to, restructuring, severance, certain asset impairment charges, certain acquisition-related impacts, income tax settlements or adjustments, unusual or infrequent items, and, for 2021, asbestos-related impacts. Special items represent charges or credits, on an after-tax basis, that impact current results which management views as unrelated to the Company's ongoing operations and performance. The after-tax basis of each special item is determined using the jurisdictional tax rate of where the expense or benefit occurred. We believe that adjusted income from continuing operations is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors. |
Free Cash Flow is defined as net cash provided by operating activities less capital expenditures. Free Cash Flow Margin is defined as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin provides useful information to investors as it provides insight into a primary cash flow metric used by management to monitor and evaluate cash flows generated by our operations. |
ITT Inc. Non-GAAP Reconciliation | |||||||||||||||||||||||||||||
Reported vs. Organic Revenue / Orders | |||||||||||||||||||||||||||||
First Quarter 2022 & 2021 | |||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
(all amounts unaudited) | |||||||||||||||||||||||||||||
(As Reported - GAAP) | (As Adjusted - Organic) | ||||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) = A-D-E | (G) =C-D-E | (H) = G / B | ||||||||||||||||||||||
$ Change | % Change | Revenue / | $ Change | % Change | |||||||||||||||||||||||||
2022 vs.
|
2022 vs.
|
Acquisitions | FX Impact | Orders | Adj. 2022 vs. 2021 |
Adj. 2022 vs. 2021 |
|||||||||||||||||||||||
Q1 2022 | Q1 2021 | Q1 2022 | Q1 2022 | Q1 2022 | |||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
ITT Inc. | $ |
726.2 |
$ |
698.4 |
$ |
27.8 |
|
4.0 |
% |
$ |
- |
$ |
(19.9 |
) |
$ |
746.1 |
$ |
47.7 |
6.8 |
% |
|||||||||
Motion Technologies |
|
370.1 |
|
369.1 |
|
1.0 |
|
0.3 |
% |
|
- |
|
(13.9 |
) |
|
384.0 |
|
14.9 |
4.0 |
% |
|||||||||
Industrial Process |
|
202.2 |
|
202.3 |
|
(0.1 |
) |
0.0 |
% |
|
- |
|
(3.9 |
) |
|
206.1 |
|
3.8 |
1.9 |
% |
|||||||||
Connect & Control Technologies |
|
154.6 |
|
127.3 |
|
27.3 |
|
21.4 |
% |
|
- |
|
(2.2 |
) |
|
156.8 |
|
29.5 |
23.2 |
% |
|||||||||
Orders | |||||||||||||||||||||||||||||
ITT Inc. | $ |
812.1 |
$ |
732.9 |
$ |
79.2 |
|
10.8 |
% |
$ |
- |
$ |
(21.3 |
) |
$ |
833.4 |
$ |
100.5 |
13.7 |
% |
|||||||||
Motion Technologies |
|
369.2 |
|
372.3 |
|
(3.1 |
) |
(0.8 |
%) |
|
- |
|
(14.1 |
) |
|
383.3 |
|
11.0 |
3.0 |
% |
|||||||||
Industrial Process |
|
260.1 |
|
215.5 |
|
44.6 |
|
20.7 |
% |
|
- |
|
(4.5 |
) |
|
264.6 |
|
49.1 |
22.8 |
% |
|||||||||
Connect & Control Technologies |
|
183.8 |
|
145.4 |
|
38.4 |
|
26.4 |
% |
|
- |
|
(2.7 |
) |
|
186.5 |
|
41.1 |
28.3 |
% |
|||||||||
Note: Excludes intercompany eliminations | |||||||||||||||||||||||||||||
Immaterial differences due to rounding | |||||||||||||||||||||||||||||
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||
Reported vs. Organic Orders (Sequential) | ||||||||||||||||||||||||||||
First Quarter 2022 vs. Fourth Quarter 2021 | ||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||
(As Reported - GAAP) | (As Adjusted - Organic) | |||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) = A-D-E | (G) =C-D-E | (H) = G / B | |||||||||||||||||||||
$ Change | % Change | $ Change | % Change | |||||||||||||||||||||||||
Q1 '22 vs. Q4 '21 |
Q1 '22 vs. Q4 '21 |
Acquisitions | FX Impact | Orders | Q1 '22 vs. Q4 '21 |
Q1 '22 vs. Q4 '21 |
||||||||||||||||||||||
Q1 2022 | Q4 2021 | Q1 2022 | Q1 2022 | Q1 2022 | ||||||||||||||||||||||||
Orders | ||||||||||||||||||||||||||||
ITT Inc. | $ |
812.1 |
$ |
722.2 |
$ |
89.9 |
12.4 |
% |
$ |
- |
$ |
(4.5 |
) |
$ |
816.6 |
$ |
94.4 |
13.1 |
% |
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||
Reported vs Adjusted Segment Operating Income & Segment Operating Margin | ||||||||||||||||||||||||||||
First Quarter 2022 & 2021 | ||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||
Q1 2022 | Q1 2022 | Q1 2022 | Q1 2021 | Q1 2021 | Q1 2021 | % Change | % Change | |||||||||||||||||||||
As Reported |
Special Items |
As Adjusted |
As Reported |
Special Items |
As Adjusted |
As Reported 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
|||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||
Motion Technologies | $ |
370.1 |
|
$ |
370.1 |
|
$ |
369.1 |
|
$ |
369.1 |
|
0.3% |
0.3% |
||||||||||||||
Industrial Process |
|
202.2 |
|
|
202.2 |
|
|
202.3 |
|
|
202.3 |
|
0.0% |
0.0% |
||||||||||||||
Connect & Control Technologies |
|
154.6 |
|
|
154.6 |
|
|
127.3 |
|
|
127.3 |
|
21.4% |
21.4% |
||||||||||||||
Intersegment eliminations |
|
(0.7 |
) |
|
(0.7 |
) |
|
(0.3 |
) |
|
(0.3 |
) |
||||||||||||||||
Total Revenue | $ |
726.2 |
|
$ |
726.2 |
|
$ |
698.4 |
|
$ |
698.4 |
|
4.0% |
4.0% |
||||||||||||||
Operating Margin: | ||||||||||||||||||||||||||||
Motion Technologies |
|
16.1 |
% |
|
140 |
BP |
|
17.5 |
% |
|
20.6 |
% |
|
- |
BP |
|
20.6 |
% |
(450) |
BP |
(310) |
BP |
||||||
Industrial Process |
|
10.1 |
% |
|
270 |
BP |
|
12.8 |
% |
|
15.3 |
% |
|
50 |
BP |
|
15.8 |
% |
(520) |
BP |
(300) |
BP |
||||||
Connect & Control Technologies |
|
16.6 |
% |
|
10 |
BP |
|
16.7 |
% |
|
9.3 |
% |
|
190 |
BP |
|
11.2 |
% |
730 |
BP |
550 |
BP |
||||||
Total Operating Segments |
|
14.6 |
% |
|
140 |
BP |
|
16.0 |
% |
|
17.0 |
% |
|
50 |
BP |
|
17.5 |
% |
(240) |
BP |
(150) |
BP |
||||||
Operating Income: | ||||||||||||||||||||||||||||
Motion Technologies | $ |
59.7 |
|
$ |
5.1 |
$ |
64.8 |
|
$ |
76.0 |
|
$ |
- |
$ |
76.0 |
|
(21.4%) |
(14.7%) |
||||||||||
Industrial Process |
|
20.4 |
|
|
5.4 |
|
25.8 |
|
|
31.0 |
|
|
0.9 |
|
31.9 |
|
(34.2%) |
(19.1%) |
||||||||||
Connect & Control Technologies |
|
25.7 |
|
|
0.1 |
|
25.8 |
|
|
11.8 |
|
|
2.4 |
|
14.2 |
|
117.8% |
81.7% |
||||||||||
Total Segment Operating Income | $ |
105.8 |
|
$ |
10.6 |
$ |
116.4 |
|
$ |
118.8 |
|
$ |
3.3 |
$ |
122.1 |
|
(10.9%) |
(4.7%) |
||||||||||
Note: Immaterial differences due to rounding. | ||||||||||||||
Special items include, but are not limited to, restructuring, severance costs, acquisition-related expenses, and other unusual or infrequent items. |
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||
Reported vs. Adjusted Income from Continuing Operations & Adjusted EPS | ||||||||||||||||||||||||||||||
First Quarter 2022 & 2021 | ||||||||||||||||||||||||||||||
(In Millions, except per share amounts) | ||||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||||
Q1 2022 | Q1 2022 | Q1 2021 | Q1 2021 | $ Change | % Change | |||||||||||||||||||||||||
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Adjusted 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
|||||||||||||||||||||||
Segment operating income | $ |
105.8 |
|
$ |
10.6 |
|
#A | $ |
116.4 |
|
$ |
118.8 |
|
$ |
3.3 |
|
#A | $ |
122.1 |
|
||||||||||
Corporate (expense) income |
|
(11.2 |
) |
|
0.9 |
|
#B |
|
(10.3 |
) |
|
(8.9 |
) |
|
3.8 |
|
#B |
|
(5.1 |
) |
||||||||||
Operating income (loss) |
|
94.6 |
|
|
11.5 |
|
|
106.1 |
|
|
109.9 |
|
|
7.1 |
|
|
117.0 |
|
|
(10.9 |
) |
(9.3 |
%) |
|||||||
Operating margin |
|
13.0 |
% |
|
14.6 |
% |
|
15.7 |
% |
|
16.8 |
% |
||||||||||||||||||
Interest income (expense), net |
|
- |
|
|
- |
|
|
- |
|
|
0.6 |
|
|
- |
|
|
0.6 |
|
||||||||||||
Other income (expense), net |
|
0.2 |
|
|
- |
|
|
0.2 |
|
|
0.7 |
|
|
- |
|
|
0.7 |
|
||||||||||||
Income from continuing operations before tax |
|
94.8 |
|
|
11.5 |
|
|
106.3 |
|
|
111.2 |
|
|
7.1 |
|
|
118.3 |
|
||||||||||||
Income tax (expense) benefit |
|
(19.5 |
) |
|
(3.4 |
) |
#C |
|
(22.9 |
) |
|
(24.7 |
) |
|
(1.3 |
) |
#C |
|
(26.0 |
) |
||||||||||
Income from continuing operations |
|
75.3 |
|
|
8.1 |
|
|
83.4 |
|
|
86.5 |
|
|
5.8 |
|
|
92.3 |
|
||||||||||||
Less: Income attributable to noncontrolling interests |
|
0.5 |
|
|
- |
|
|
0.5 |
|
|
0.3 |
|
|
- |
|
|
0.3 |
|
||||||||||||
Income from continuing operations - ITT Inc. | $ |
74.8 |
|
$ |
8.1 |
|
$ |
82.9 |
|
$ |
86.2 |
|
$ |
5.8 |
|
$ |
92.0 |
|
||||||||||||
EPS from continuing operations | $ |
0.88 |
|
$ |
0.09 |
|
$ |
0.97 |
|
$ |
0.99 |
|
$ |
0.07 |
|
$ |
1.06 |
|
$ |
(0.09 |
) |
(8.5 |
%) |
|||||||
Note: Amounts may not calculate due to rounding. |
#A - |
2022 includes impacts related to the Russia-Ukraine conflict ($8.8M), severance costs ($1.5M) and restructuring costs ($0.3M). |
||||||||||||||||
#A - |
2021 includes restructuring costs ($3.3M). |
||||||||||||||||
#B - |
2022 includes severance and other costs ($0.9M). |
||||||||||||||||
#B - |
2021 includes asbestos related expense ($2.4M), other costs ($1.1M) and restructuring costs ($0.3M). |
||||||||||||||||
#C- |
2022 includes the net tax benefit of special items #A and #B ($2.2M) and tax benefit for valuation allowance impacts of ($2.8M), partially offset by tax expense on future distribution of foreign earnings ($1.7M) and other tax-related special items. |
||||||||||||||||
#C - |
2021 includes the net tax benefit of special items #A and #B ($1.3M) and tax benefit for valuation allowance impacts ($2.1M), partially offset by tax expense on future distribution of foreign earnings ($2.5M) and other tax related special items. |
||||||||||||||||
ITT Inc. Non-GAAP Reconciliation | |||||||
Free Cash Flow | |||||||
First Quarter 2022 & 2021 | |||||||
(In Millions) | |||||||
(all amounts unaudited) | |||||||
|
3M 2022 |
|
|
3M 2021 |
|||
Net Cash - Operating Activities | $ |
(2.7 |
) |
$ |
70.8 |
||
Capital expenditures |
|
30.0 |
|
|
17.2 |
||
Free Cash Flow | $ |
(32.7 |
) |
$ |
53.6 |
ITT Inc. Non-GAAP Reconciliation | ||||||||
GAAP vs. Adjusted EPS Guidance | ||||||||
Full Year 2022 | ||||||||
(Per share amounts) | ||||||||
(all amounts unaudited) | ||||||||
2022 Full-Year Guidance | ||||||||
Low | High | |||||||
EPS from Continuing Operations - GAAP | $ |
4.07 |
|
$ |
4.50 |
|
||
Estimated restructuring, net of tax |
|
0.05 |
|
|
0.03 |
|
||
Other special items, net of tax |
|
0.19 |
|
|
0.18 |
|
||
Other tax special Items |
|
(0.01 |
) |
|
(0.01 |
) |
||
EPS from Continuing Operations - Adjusted | $ |
4.30 |
|
$ |
4.70 |
|
Note: | The Company has provided forward-looking non-GAAP financial measures for organic revenue growth and adjusted |
|
||||
|
segment operating margin. It is not possible, without unreasonable efforts, to estimate the impacts of foreign currency |
|||||
|
fluctuations, acquisitions and certain other special items that may occur in 2022 as these items are inherently uncertain |
|||||
|
and difficult to predict. As a result, the Company is unable to quantify certain amounts that would be included in a |
|
||||
|
reconciliation of organic revenue growth and adjusted segment operating margin to the most directly comparable GAAP |
|||||
financial measures without unreasonable efforts and has not provided reconciliations for these forward looking non-GAAP
|
ITT Inc. Non-GAAP Reconciliation | |||||||||
Free Cash Flow and Free Cash Flow Margin Guidance | |||||||||
Full Year 2022 | |||||||||
(In Millions) | |||||||||
(all amounts unaudited) | |||||||||
2022 Full-Year Guidance | |||||||||
Low | High | ||||||||
Net Cash - Operating Activities | $ |
405.0 |
|
$ |
455.0 |
|
|||
Capital expenditures |
|
155.0 |
|
|
155.0 |
|
|||
Free Cash Flow |
|
250.0 |
|
|
300.0 |
|
|||
Revenue #A | $ |
2,986.0 |
|
$ |
2,986.0 |
|
|||
Free Cash Flow margin |
|
8 |
% |
|
10 |
% |
|||
#A Represents the midpoint of the revenue range provided of 7% to 9%. |
Выручка выросла на 4% (органический рост на 7%) в основном за счет технологий Connect & Control (CCT)
Заказы выросли на 11% (14% органических) благодаря высокому спросу на Промышленные процессы (IP) и CCT
Привлечено капитала на сумму более 235 миллионов долларов, включая выкуп акций на сумму 186 миллионов долларов
Объявлено о приобретении Habonim, производителя специализированной арматуры, за 140 миллионов долларов во 2 квартале
Сохранение выручки за весь 2022 год, маржи сегмента и скорректированных прогнозов по прибыли на акцию
УАЙТ-ПЛЕЙНС, Нью-Йорк - (BUSINESS WIRE) - 3 мая 2022 г. - ITT Inc. (NYSE: ITT) сегодня сообщила о финансовых результатах за первый квартал, закончившийся 2 апреля 2022 г. Компания сообщила о росте выручки в годовом исчислении на 4,0%, увеличившись на 6,8% на органической основе. В первую очередь это было обусловлено высоким спросом на соединители и аэрокосмические компоненты в CCT и продукты короткого цикла в IP, на вторичном рынке трения strength in Motion Technologies (MT) и ценовыми действиями, которые способствовали примерно 3% органическому росту выручки - особенно в MT.
Операционная маржа сегмента в размере 14,6% за первый квартал снизилась на 240 базисных пунктов по сравнению с предыдущим годом из-за значительного роста издержек, который негативно повлиял на маржу на 760 базисных пунктов в годовом исчислении, расходов, связанных с приостановкой операций в России, и стратегических инвестиций для роста. Это было частично компенсировано ценовыми действиями и снижением производительности во всех подразделениях, а также увеличением объема продаж, в первую очередь в CCT.
Прибыль на акцию в размере 0,88 доллара США за первый квартал снизилась на 11,0% по сравнению с предыдущим годом из-за снижения операционной прибыли сегмента, которая включала расходы, связанные с приостановкой деятельности в России, частично компенсированные выгодой от выкупа акций и более низкой эффективной налоговой ставкой. Без учета влияния сборов в России и других статей скорректированная прибыль на акцию в размере 0,97 доллара США снизилась на 8,5% по сравнению с предыдущим годом из-за значительно более высоких материальных и накладных расходов, которые более чем компенсировали операционные улучшения и действия по ценообразованию.
Операционный денежный поток за первый квартал снизился на 73,5 млн долларов до (2,7) млн долларов в основном из-за снижения операционной прибыли сегмента, увеличения инвестиций в оборотный капитал для поддержки роста продаж и смягчения продолжающихся сбоев в цепочке поставок, а также сроков взыскания дебиторской задолженности.
Table 1. First Quarter Performance | ||||||||||||
Q1 2022 | Q1 2021 | Change | ||||||||||
Revenue | $ | 726.2 |
$ | 698.4 |
4.0 |
% | ||||||
Organic | 6.8 |
% | ||||||||||
Segment Operating Income | $ | 105.8 |
$ | 118.8 |
(10.9) |
% | ||||||
Segment Operating Margin | 14.6 |
% | 17.0 |
% | (240) |
bps | ||||||
Adjusted Segment Operating Income | $ | 116.4 |
$ | 122.1 |
(4.7) |
% | ||||||
Adjusted Segment Operating Margin | 16.0 |
% | 17.5 |
% | (150) |
bps | ||||||
Earnings Per Share | $ | 0.88 |
$ | 0.99 |
(11.1) |
% | ||||||
Adjusted Earnings Per Share | $ | 0.97 |
$ | 1.06 |
(8.5) |
% | ||||||
Operating Cash Flow | $ | (2.7) |
$ | 70.8 |
(103.8) |
% | ||||||
Free Cash Flow | $ | (32.7) |
$ | 53.6 |
(161.0) |
% | ||||||
Note: all results unaudited | ||||||||||||
Комментарий руководства
“В очередной раз, в этом квартале все наши ИТ-специалисты по всему миру показали хорошие результаты, неустанно фокусируясь на правильных приоритетах, что еще раз продемонстрировало устойчивость ITT. В начале 2022 года мы столкнулись со значительной нехваткой рабочей силы, вызванной внезапным и резким ростом заболеваемости омикроном COVID-19 в январе. Мы столкнулись с инфляцией, которая была выше запланированной в отношении сырья и накладных расходов, а также с нехваткой рабочей силы в Северной Америке. И сейчас мы справляемся с последствиями войны в Украине, которая в этом квартале повлияла на наш бизнес в сфере транспорта, железнодорожного транспорта и промышленных процессов. Тем не менее, несмотря на все эти проблемы, команда выполнила свои обязательства в первом квартале”, - сказал Лука Сави, главный исполнительный директор и президент ITT.
“Мы продолжали демонстрировать высокие результаты на основных конечных рынках, где мы участвуем и инвестируем в будущее. В первом квартале мы добились органического роста заказов на 14% благодаря технологиям Industrial Process и Connect & Control. Мы обеспечили органический рост выручки на 7% за счет всех предприятий, несмотря на сохраняющиеся ограничения в рабочей силе, материалах и поставках, при этом органический рост CCT составил 23%. Мы привлекли капитал на сумму более 235 миллионов долларов, в том числе на выкуп акций ITT на сумму 186 миллионов долларов, сократив количество наших акций на 2%. Наконец, 4 апреля мы объявили о приобретении Habonim, израильского производителя специальных шаровых кранов и приводных технологий, что еще раз демонстрирует нашу приверженность стратегическому размещению нашего капитала”, - продолжил Сави.
Сави заключил: “В ближайшей перспективе наблюдаются явные встречные ветры. Мы предпринимаем действия для решения этих проблем и продолжаем инвестировать в будущее ITT, как органически, так и посредством слияний и поглощений, чтобы обеспечить рост прибыльности и превосходство в долгосрочной перспективе”.
Table 2. First Quarter Segment Results | ||||||||||||||||
Revenue | Operating Income | |||||||||||||||
Q1 2022 | Reported Increase / (Decrease) |
Organic Growth / (Decline) |
Q1 2022 | Reported Increase / (Decrease) |
Adjusted Increase / (Decrease) |
|||||||||||
Motion Technologies | $ | 370.1 |
0.3 |
% | 4.0 |
% | $ | 59.7 |
(21.4) |
% | (14.7) |
% | ||||
Industrial Process | 202.2 |
- |
% | 1.9 |
% | 20.4 |
(34.2) |
% | (19.1) |
% | ||||||
Connect & Control Technologies | 154.6 |
21.4 |
% | 23.2 |
% | 25.7 |
117.8 |
% | 81.7 |
% | ||||||
Total segment results | 726.2 |
4.0 |
% | 6.8 |
% | 105.8 |
(10.9) |
% | (4.7) |
% | ||||||
Note: all results unaudited; excludes intercompany eliminations; comparisons to Q1 2021 | ||||||||||||||||
Выручка Motion Technologies увеличилась в основном за счет спроса на вторичном рынке Friction. Операционная прибыль снизилась до 59,7 млн долларов США в основном из-за значительно более высокой инфляции, частично компенсированной изменениями цен и снижением производительности.
Выручка от промышленных процессов осталась на прежнем уровне в годовом исчислении из-за роста бизнеса с коротким циклом на общих промышленных и химических рынках, компенсированного снижением активности по проектам насосов. На результаты IP по-прежнему влияют нехватка рабочей силы, задержки с поставщиками и увеличенные сроки выполнения заказов, главным образом в проектном бизнесе. Операционная прибыль снизилась до 20,4 млн долларов США в основном из-за более высокой материальной инфляции, частично компенсированной снижением производительности, благоприятной структурой продаж и ценовыми действиями.
Выручка Connect & Control Technologies увеличилась благодаря высоким продажам соединителей, главным образом на промышленном рынке, и увеличению продаж компонентов в коммерческой аэрокосмической и оборонной промышленности. Операционная прибыль увеличилась до 25,7 млн долларов США в основном за счет снижения производительности, увеличения объема продаж и ограниченного ценообразования, что частично компенсировалось более высокими материальными затратами и неблагоприятной структурой продаж.
Мы по-прежнему ожидаем роста выручки от 7% до 9%, или от 9% до 11% на органической основе; операционная маржа сегмента от 17,5% до 18,4%; и скорректированная операционная маржа сегмента от 17,6% до 18,5%, увеличившись на 40-130 базисных пунктов. Теперь мы ожидаем, что прибыль на акцию составит от $4,07 до $4,50, без изменений скорректированной прибыли на акцию в размере от $4,30 до $ 4,70 на акцию, что на 6-16% больше. Ожидается, что свободный денежный поток в настоящее время составит от 250 до 300 миллионов долларов, что представляет собой маржу свободного денежного потока примерно от 8% до 10% за весь год.
Руководство компании на 2022 год предполагает продолжение сбоев в глобальной цепочке поставок, вызванных нехваткой рабочей силы, задержками с поставками и инфляцией цен на сырье, которая, как мы ожидаем, сохранится по крайней мере в первой половине 2022 года. Руководство также предполагает значительное сокращение продаж в России из-за конфликта на Украине, которое, по нашим текущим оценкам, повлияет на выручку примерно на 60-85 миллионов долларов за весь год. Руководство не включает потенциальные последствия, если таковые имеются, длительного отключения в Китае из-за повторного появления COVID-19.
Подробности Телефонной конференции для инвесторов
Руководство ITT проведет телефонную конференцию для инвесторов во вторник, 3 мая, в 8:30 утра по восточному времени. Доступ к брифингу можно получить в прямом эфире через веб-трансляцию, которая доступна на веб-сайте компании: investors.ITT.com . Воспроизведение веб-трансляции будет доступно в течение 90 дней после презентации. Повтор также будет доступен по телефону через два часа после веб-трансляции до вторника, 17 мая 2022 года, в полночь по восточному времени. Сверки показателей финансовой деятельности, не относящихся к ОПБУ, с их наиболее сопоставимыми показателями финансовой деятельности по ОПБУ США определены и представлены ниже и не должны рассматриваться как замена или превосходство финансовых данных, подготовленных в соответствии с ОПБУ США.
Заявление о безопасной гавани
Этот релиз содержит “прогнозные заявления”, предназначенные для того, чтобы претендовать на безопасную гавань от ответственности, установленную Законом о реформе судебных разбирательств по частным ценным бумагам 1995 года. Кроме того, конференц-связь (включая презентационные материалы о финансовых результатах) может включать, и должностные лица и представители ITT могут время от времени делать и обсуждать прогнозы, цели, предположения и заявления, которые могут представлять собой “заявления о перспективах”. Эти прогнозные заявления не являются историческими фактами, а скорее представляют собой лишь предположения относительно будущих событий, основанные на текущих ожиданиях, оценках, предположениях и прогнозах относительно нашего бизнеса, будущих финансовых результатов и отрасли, в которой мы работаем, а также других правовых, нормативных и экономических изменений. Эти прогнозные заявления включают, но не ограничиваются ими, будущие стратегические планы и другие заявления, которые описывают бизнес-стратегию компании, перспективы, цели, планы, намерения или цели, а также любое обсуждение будущих событий и будущих операционных или финансовых показателей.
Мы используем такие слова, как “предвидеть”, “оценивать”, “ожидать”, “проектировать”, “намереваться”, “планировать”, “верить”, “цель”, “будущее”, “может”, “будет”, “может”, “должен”, “потенциал,” “продолжить”, “руководство” и другие подобные выражения для обозначения таких прогнозных заявлений. Прогнозные заявления являются неопределенными, и по своей природе многие из них по своей сути непредсказуемы и находятся вне контроля ITT, и включают известные и неизвестные риски, неопределенности и другие важные факторы, которые могут привести к тому, что фактические результаты будут существенно отличаться от тех, которые выражены или подразумеваются в таких прогнозных заявлениях или разумно выводятся из них. заявления.
В тех случаях, когда в каком-либо прогнозном заявлении мы выражаем ожидания или убеждения относительно будущих результатов или событий, такие ожидания или убеждения основаны на текущих планах и ожиданиях нашего руководства, выражены добросовестно и, как считается, имеют разумную основу. Однако мы не можем предоставить никаких гарантий в том, что ожидания или убеждения осуществятся или что ожидаемые результаты будут достигнуты или достигнуты.
Среди факторов, которые могут привести к тому, что наши результаты будут существенно отличаться от тех, которые указаны в прогнозных заявлениях, - риски и неопределенности, присущие нашему бизнесу, включая, помимо прочего:
Прогнозные заявления, включенные в этот релиз, относятся только к дате настоящего соглашения. Мы не берем на себя никаких обязательств (и прямо отказываемся от каких-либо обязательств) обновлять какие-либо прогнозные заявления, будь то письменные или устные, или в результате новой информации, будущих событий или иным образом. Дополнительная информация о факторах, которые могут привести к существенному отличию фактических результатов или событий от ожидаемых, включена в раздел "Факторы риска" Годового отчета Компании по форме 10-K, Ежеквартальных отчетов по форме 10-Q и других документов, время от времени подаваемых в Комиссию по ценным бумагам и биржам.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |||||||||
For the Three Months Ended | April 2, 2022 | April 3, 2021 | |||||||
Revenue | $ | 726.2 |
|
$ | 698.4 |
|
|||
Cost of revenue | 507.8 |
|
469.4 |
|
|||||
Gross profit | 218.4 |
|
229.0 |
|
|||||
General and administrative expenses | 60.4 |
|
58.1 |
|
|||||
Sales and marketing expenses | 38.4 |
|
36.7 |
|
|||||
Research and development expenses | 25.0 |
|
24.3 |
|
|||||
Operating income | 94.6 |
|
109.9 |
|
|||||
Interest and non-operating income, net | (0.2 |
) |
(1.3 |
) |
|||||
Income from continuing operations before income tax expense | 94.8 |
|
111.2 |
|
|||||
Income tax expense | 19.5 |
|
24.7 |
|
|||||
Net income | 75.3 |
|
86.5 |
|
|||||
Less: Income attributable to noncontrolling interests | 0.5 |
|
0.3 |
|
|||||
Net income attributable to ITT Inc. | $ | 74.8 |
|
$ | 86.2 |
|
|||
Earnings (loss) per share attributable to ITT Inc.: | |||||||||
Basic | $ | 0.88 |
|
$ | 1.00 |
|
|||
Diluted | $ | 0.88 |
|
$ | 0.99 |
|
|||
Weighted average common shares – basic | 84.8 |
|
86.3 |
|
|||||
Weighted average common shares – diluted | 85.2 |
|
86.9 |
|
|||||
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) | |||||||||||||||
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |||||||||||||||
April 2, 2022 | December 31, 2021 |
||||||||||||||
Assets | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 710.4 |
$ | 647.5 |
|||||||||||
Receivables, net | 615.8 |
555.1 |
|||||||||||||
Inventories, net | 475.6 |
430.9 |
|||||||||||||
Other current assets | 102.7 |
88.6 |
|||||||||||||
Total current assets | 1,904.5 |
1,722.1 |
|||||||||||||
Non-current assets: | |||||||||||||||
Plant, property and equipment, net | 504.9 |
509.1 |
|||||||||||||
Goodwill | 918.5 |
924.3 |
|||||||||||||
Other intangible assets, net | 80.9 |
85.7 |
|||||||||||||
Other non-current assets | 316.8 |
324.2 |
|||||||||||||
Total non-current assets | 1,821.1 |
1,843.3 |
|||||||||||||
Total assets | $ | 3,725.6 |
$ | 3,565.4 |
|||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||
Current liabilities: | |||||||||||||||
Commercial paper and current maturities of long-term debt | $ | 487.0 |
$ | 197.6 |
|||||||||||
Accounts payable | 411.0 |
373.4 |
|||||||||||||
Accrued liabilities | 344.3 |
357.3 |
|||||||||||||
Total current liabilities | 1,242.3 |
928.3 |
|||||||||||||
Non-current liabilities: | |||||||||||||||
Postretirement benefits | 196.4 |
199.9 |
|||||||||||||
Other non-current liabilities | 196.7 |
206.5 |
|||||||||||||
Total non-current liabilities | 393.1 |
406.4 |
|||||||||||||
Total liabilities | 1,635.4 |
1,334.7 |
|||||||||||||
Shareholders’ equity: | |||||||||||||||
Common stock: | |||||||||||||||
Authorized – 250.0 shares, $1 par value per share | |||||||||||||||
Issued and outstanding – 83.6 shares and 85.5 shares, respectively | 83.6 |
85.5 |
|||||||||||||
Retained earnings | 2,334.6 |
2,461.6 |
|||||||||||||
Total accumulated other comprehensive loss | (333.3 |
) |
(321.3 |
) |
|||||||||||
Total ITT Inc. shareholders’ equity | 2,084.9 |
2,225.8 |
|||||||||||||
Noncontrolling interests | 5.3 |
4.9 |
|||||||||||||
Total shareholders’ equity | 2,090.2 |
2,230.7 |
|||||||||||||
Total liabilities and shareholders’ equity | $ | 3,725.6 |
$ | 3,565.4 |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||
(IN MILLIONS) | |||||||||
For the Three Months Ended | April 2, 2022 | April 3, 2021 | |||||||
Operating Activities | |||||||||
Income from continuing operations attributable to ITT Inc. | $ | 74.8 |
|
$ | 86.2 |
|
|||
Adjustments to income from continuing operations: | |||||||||
Depreciation and amortization | 27.3 |
|
28.5 |
|
|||||
Equity-based compensation | 3.7 |
|
3.3 |
|
|||||
Other non-cash charges, net | 10.2 |
|
6.3 |
|
|||||
Changes in assets and liabilities: | |||||||||
Change in receivables | (70.7 |
) |
(50.1 |
) |
|||||
Change in inventories | (48.4 |
) |
(21.2 |
) |
|||||
Change in contract assets | (1.7 |
) |
0.6 |
|
|||||
Change in contract liabilities | 11.8 |
|
(2.7 |
) |
|||||
Change in accounts payable | 48.6 |
|
36.6 |
|
|||||
Change in accrued expenses | (42.5 |
) |
(12.4 |
) |
|||||
Change in income taxes | 10.1 |
|
10.4 |
|
|||||
Other, net | (25.9 |
) |
(14.7 |
) |
|||||
Net Cash – Operating Activities | (2.7 |
) |
70.8 |
|
|||||
Investing Activities | |||||||||
Capital expenditures | (30.0 |
) |
(17.2 |
) |
|||||
Other, net | 0.6 |
|
0.1 |
|
|||||
Net Cash – Investing Activities | (29.4 |
) |
(17.1 |
) |
|||||
Financing Activities | |||||||||
Commercial paper, net borrowings | 290.7 |
|
(42.6 |
) |
|||||
Long-term debt, repayments | - |
|
(0.1 |
) |
|||||
Share repurchases under repurchase plan | (163.9 |
) |
(50.0 |
) |
|||||
Share repurchases from net settlement of employee stock incentive plans | (8.4 |
) |
(11.0 |
) |
|||||
Dividends paid | (22.4 |
) |
(19.1 |
) |
|||||
Other, net | 0.6 |
|
- |
|
|||||
Net Cash – Financing Activities | 96.6 |
|
(122.8 |
) |
|||||
Exchange rate effects on cash and cash equivalents | (1.5 |
) |
(10.4 |
) |
|||||
Net cash – operating activities of discontinued operations | (0.1 |
) |
(0.1 |
) |
|||||
Net change in cash and cash equivalents | 62.9 |
|
(79.6 |
) |
|||||
Cash and cash equivalents – beginning of year (includes restricted cash of $0.8 and $0.8, respectively) | 648.3 |
|
860.6 |
|
|||||
Cash and Cash Equivalents – End of Period (includes restricted cash of $0.8 and $0.8, respectively) | $ | 711.2 |
|
$ | 781.0 |
|
|||
Supplemental Disclosures of Cash Flow Information | |||||||||
Cash paid during the year for: | |||||||||
Interest | $ | 0.5 |
|
$ | 0.2 |
|
|||
Income taxes, net of refunds received | $ | 8.5 |
|
$ | 13.4 |
|
Key Performance Indicators and Non-GAAP Measures |
Management reviews a variety of key performance indicators including revenue, segment operating income and margins, earnings per share, order growth, and backlog, some of which are calculated on a non-GAAP basis. In addition, we consider certain measures to be useful to management and investors when evaluating our operating performance for the periods presented. These measures provide a tool for evaluating our ongoing operations and management of assets from period to period. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including, but not limited to, acquisitions, dividends, and share repurchases. Some of these metrics, however, are not measures of financial performance under accounting principles generally accepted in the United States of America (GAAP) and should not be considered a substitute for measures determined in accordance with GAAP. We consider the following non-GAAP measures, which may not be comparable to similarly titled measures reported by other companies, to be key performance indicators for purposes of our reconciliation tables. |
Organic Revenues and Organic Orders are defined, respectively, as revenue and orders, excluding the impacts of foreign currency fluctuations and acquisitions. The period-over-period change resulting from foreign currency fluctuations is estimated using a fixed exchange rate for both the current and prior periods. Management believes that reporting organic revenue and organic orders provides useful information to investors by helping identify underlying trends in our business and facilitating comparisons of our revenue performance with prior and future periods and to our peers. |
Adjusted Operating Income and Adjusted Segment Operating Income are defined, respectively, as total operating income and segment operating income, adjusted to exclude special items that include, but are not limited to, restructuring, severance, certain asset impairment charges, certain acquisition-related impacts, unusual or infrequent operating items and, for 2021, asbestos-related impacts. Special items represent charges or credits that impact current results, which management views as unrelated to the Company's ongoing operations and performance. Adjusted Operating Margin and Adjusted Segment Operating Margin are defined as adjusted operating income or adjusted segment operating income divided by revenue. Adjusted Segment Decremental or Incremental Operating Margin is defined as the change in adjusted segment operating income divided by the change in revenue. We believe these financial measures are useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors. |
Adjusted Income from Continuing Operations and Adjusted EPS are defined, respectively, as income from continuing operations attributable to ITT Inc. and income from continuing operations attributable to ITT Inc. per diluted share, adjusted to exclude special items that include, but are not limited to, restructuring, severance, certain asset impairment charges, certain acquisition-related impacts, income tax settlements or adjustments, unusual or infrequent items, and, for 2021, asbestos-related impacts. Special items represent charges or credits, on an after-tax basis, that impact current results which management views as unrelated to the Company's ongoing operations and performance. The after-tax basis of each special item is determined using the jurisdictional tax rate of where the expense or benefit occurred. We believe that adjusted income from continuing operations is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors. |
Free Cash Flow is defined as net cash provided by operating activities less capital expenditures. Free Cash Flow Margin is defined as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin provides useful information to investors as it provides insight into a primary cash flow metric used by management to monitor and evaluate cash flows generated by our operations. |
ITT Inc. Non-GAAP Reconciliation | |||||||||||||||||||||||||||||
Reported vs. Organic Revenue / Orders | |||||||||||||||||||||||||||||
First Quarter 2022 & 2021 | |||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
(all amounts unaudited) | |||||||||||||||||||||||||||||
(As Reported - GAAP) | (As Adjusted - Organic) | ||||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) = A-D-E | (G) =C-D-E | (H) = G / B | ||||||||||||||||||||||
$ Change | % Change | Revenue / | $ Change | % Change | |||||||||||||||||||||||||
2022 vs.
|
2022 vs.
|
Acquisitions | FX Impact | Orders | Adj. 2022 vs. 2021 |
Adj. 2022 vs. 2021 |
|||||||||||||||||||||||
Q1 2022 | Q1 2021 | Q1 2022 | Q1 2022 | Q1 2022 | |||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
ITT Inc. | $ |
726.2 |
$ |
698.4 |
$ |
27.8 |
|
4.0 |
% |
$ |
- |
$ |
(19.9 |
) |
$ |
746.1 |
$ |
47.7 |
6.8 |
% |
|||||||||
Motion Technologies |
|
370.1 |
|
369.1 |
|
1.0 |
|
0.3 |
% |
|
- |
|
(13.9 |
) |
|
384.0 |
|
14.9 |
4.0 |
% |
|||||||||
Industrial Process |
|
202.2 |
|
202.3 |
|
(0.1 |
) |
0.0 |
% |
|
- |
|
(3.9 |
) |
|
206.1 |
|
3.8 |
1.9 |
% |
|||||||||
Connect & Control Technologies |
|
154.6 |
|
127.3 |
|
27.3 |
|
21.4 |
% |
|
- |
|
(2.2 |
) |
|
156.8 |
|
29.5 |
23.2 |
% |
|||||||||
Orders | |||||||||||||||||||||||||||||
ITT Inc. | $ |
812.1 |
$ |
732.9 |
$ |
79.2 |
|
10.8 |
% |
$ |
- |
$ |
(21.3 |
) |
$ |
833.4 |
$ |
100.5 |
13.7 |
% |
|||||||||
Motion Technologies |
|
369.2 |
|
372.3 |
|
(3.1 |
) |
(0.8 |
%) |
|
- |
|
(14.1 |
) |
|
383.3 |
|
11.0 |
3.0 |
% |
|||||||||
Industrial Process |
|
260.1 |
|
215.5 |
|
44.6 |
|
20.7 |
% |
|
- |
|
(4.5 |
) |
|
264.6 |
|
49.1 |
22.8 |
% |
|||||||||
Connect & Control Technologies |
|
183.8 |
|
145.4 |
|
38.4 |
|
26.4 |
% |
|
- |
|
(2.7 |
) |
|
186.5 |
|
41.1 |
28.3 |
% |
|||||||||
Note: Excludes intercompany eliminations | |||||||||||||||||||||||||||||
Immaterial differences due to rounding | |||||||||||||||||||||||||||||
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||
Reported vs. Organic Orders (Sequential) | ||||||||||||||||||||||||||||
First Quarter 2022 vs. Fourth Quarter 2021 | ||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||
(As Reported - GAAP) | (As Adjusted - Organic) | |||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) = A-D-E | (G) =C-D-E | (H) = G / B | |||||||||||||||||||||
$ Change | % Change | $ Change | % Change | |||||||||||||||||||||||||
Q1 '22 vs. Q4 '21 |
Q1 '22 vs. Q4 '21 |
Acquisitions | FX Impact | Orders | Q1 '22 vs. Q4 '21 |
Q1 '22 vs. Q4 '21 |
||||||||||||||||||||||
Q1 2022 | Q4 2021 | Q1 2022 | Q1 2022 | Q1 2022 | ||||||||||||||||||||||||
Orders | ||||||||||||||||||||||||||||
ITT Inc. | $ |
812.1 |
$ |
722.2 |
$ |
89.9 |
12.4 |
% |
$ |
- |
$ |
(4.5 |
) |
$ |
816.6 |
$ |
94.4 |
13.1 |
% |
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||
Reported vs Adjusted Segment Operating Income & Segment Operating Margin | ||||||||||||||||||||||||||||
First Quarter 2022 & 2021 | ||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||
Q1 2022 | Q1 2022 | Q1 2022 | Q1 2021 | Q1 2021 | Q1 2021 | % Change | % Change | |||||||||||||||||||||
As Reported |
Special Items |
As Adjusted |
As Reported |
Special Items |
As Adjusted |
As Reported 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
|||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||
Motion Technologies | $ |
370.1 |
|
$ |
370.1 |
|
$ |
369.1 |
|
$ |
369.1 |
|
0.3% |
0.3% |
||||||||||||||
Industrial Process |
|
202.2 |
|
|
202.2 |
|
|
202.3 |
|
|
202.3 |
|
0.0% |
0.0% |
||||||||||||||
Connect & Control Technologies |
|
154.6 |
|
|
154.6 |
|
|
127.3 |
|
|
127.3 |
|
21.4% |
21.4% |
||||||||||||||
Intersegment eliminations |
|
(0.7 |
) |
|
(0.7 |
) |
|
(0.3 |
) |
|
(0.3 |
) |
||||||||||||||||
Total Revenue | $ |
726.2 |
|
$ |
726.2 |
|
$ |
698.4 |
|
$ |
698.4 |
|
4.0% |
4.0% |
||||||||||||||
Operating Margin: | ||||||||||||||||||||||||||||
Motion Technologies |
|
16.1 |
% |
|
140 |
BP |
|
17.5 |
% |
|
20.6 |
% |
|
- |
BP |
|
20.6 |
% |
(450) |
BP |
(310) |
BP |
||||||
Industrial Process |
|
10.1 |
% |
|
270 |
BP |
|
12.8 |
% |
|
15.3 |
% |
|
50 |
BP |
|
15.8 |
% |
(520) |
BP |
(300) |
BP |
||||||
Connect & Control Technologies |
|
16.6 |
% |
|
10 |
BP |
|
16.7 |
% |
|
9.3 |
% |
|
190 |
BP |
|
11.2 |
% |
730 |
BP |
550 |
BP |
||||||
Total Operating Segments |
|
14.6 |
% |
|
140 |
BP |
|
16.0 |
% |
|
17.0 |
% |
|
50 |
BP |
|
17.5 |
% |
(240) |
BP |
(150) |
BP |
||||||
Operating Income: | ||||||||||||||||||||||||||||
Motion Technologies | $ |
59.7 |
|
$ |
5.1 |
$ |
64.8 |
|
$ |
76.0 |
|
$ |
- |
$ |
76.0 |
|
(21.4%) |
(14.7%) |
||||||||||
Industrial Process |
|
20.4 |
|
|
5.4 |
|
25.8 |
|
|
31.0 |
|
|
0.9 |
|
31.9 |
|
(34.2%) |
(19.1%) |
||||||||||
Connect & Control Technologies |
|
25.7 |
|
|
0.1 |
|
25.8 |
|
|
11.8 |
|
|
2.4 |
|
14.2 |
|
117.8% |
81.7% |
||||||||||
Total Segment Operating Income | $ |
105.8 |
|
$ |
10.6 |
$ |
116.4 |
|
$ |
118.8 |
|
$ |
3.3 |
$ |
122.1 |
|
(10.9%) |
(4.7%) |
||||||||||
Note: Immaterial differences due to rounding. | ||||||||||||||
Special items include, but are not limited to, restructuring, severance costs, acquisition-related expenses, and other unusual or infrequent items. |
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||
Reported vs. Adjusted Income from Continuing Operations & Adjusted EPS | ||||||||||||||||||||||||||||||
First Quarter 2022 & 2021 | ||||||||||||||||||||||||||||||
(In Millions, except per share amounts) | ||||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||||
Q1 2022 | Q1 2022 | Q1 2021 | Q1 2021 | $ Change | % Change | |||||||||||||||||||||||||
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Adjusted 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
|||||||||||||||||||||||
Segment operating income | $ |
105.8 |
|
$ |
10.6 |
|
#A | $ |
116.4 |
|
$ |
118.8 |
|
$ |
3.3 |
|
#A | $ |
122.1 |
|
||||||||||
Corporate (expense) income |
|
(11.2 |
) |
|
0.9 |
|
#B |
|
(10.3 |
) |
|
(8.9 |
) |
|
3.8 |
|
#B |
|
(5.1 |
) |
||||||||||
Operating income (loss) |
|
94.6 |
|
|
11.5 |
|
|
106.1 |
|
|
109.9 |
|
|
7.1 |
|
|
117.0 |
|
|
(10.9 |
) |
(9.3 |
%) |
|||||||
Operating margin |
|
13.0 |
% |
|
14.6 |
% |
|
15.7 |
% |
|
16.8 |
% |
||||||||||||||||||
Interest income (expense), net |
|
- |
|
|
- |
|
|
- |
|
|
0.6 |
|
|
- |
|
|
0.6 |
|
||||||||||||
Other income (expense), net |
|
0.2 |
|
|
- |
|
|
0.2 |
|
|
0.7 |
|
|
- |
|
|
0.7 |
|
||||||||||||
Income from continuing operations before tax |
|
94.8 |
|
|
11.5 |
|
|
106.3 |
|
|
111.2 |
|
|
7.1 |
|
|
118.3 |
|
||||||||||||
Income tax (expense) benefit |
|
(19.5 |
) |
|
(3.4 |
) |
#C |
|
(22.9 |
) |
|
(24.7 |
) |
|
(1.3 |
) |
#C |
|
(26.0 |
) |
||||||||||
Income from continuing operations |
|
75.3 |
|
|
8.1 |
|
|
83.4 |
|
|
86.5 |
|
|
5.8 |
|
|
92.3 |
|
||||||||||||
Less: Income attributable to noncontrolling interests |
|
0.5 |
|
|
- |
|
|
0.5 |
|
|
0.3 |
|
|
- |
|
|
0.3 |
|
||||||||||||
Income from continuing operations - ITT Inc. | $ |
74.8 |
|
$ |
8.1 |
|
$ |
82.9 |
|
$ |
86.2 |
|
$ |
5.8 |
|
$ |
92.0 |
|
||||||||||||
EPS from continuing operations | $ |
0.88 |
|
$ |
0.09 |
|
$ |
0.97 |
|
$ |
0.99 |
|
$ |
0.07 |
|
$ |
1.06 |
|
$ |
(0.09 |
) |
(8.5 |
%) |
|||||||
Note: Amounts may not calculate due to rounding. |
#A - |
2022 includes impacts related to the Russia-Ukraine conflict ($8.8M), severance costs ($1.5M) and restructuring costs ($0.3M). |
||||||||||||||||
#A - |
2021 includes restructuring costs ($3.3M). |
||||||||||||||||
#B - |
2022 includes severance and other costs ($0.9M). |
||||||||||||||||
#B - |
2021 includes asbestos related expense ($2.4M), other costs ($1.1M) and restructuring costs ($0.3M). |
||||||||||||||||
#C- |
2022 includes the net tax benefit of special items #A and #B ($2.2M) and tax benefit for valuation allowance impacts of ($2.8M), partially offset by tax expense on future distribution of foreign earnings ($1.7M) and other tax-related special items. |
||||||||||||||||
#C - |
2021 includes the net tax benefit of special items #A and #B ($1.3M) and tax benefit for valuation allowance impacts ($2.1M), partially offset by tax expense on future distribution of foreign earnings ($2.5M) and other tax related special items. |
||||||||||||||||
ITT Inc. Non-GAAP Reconciliation | |||||||
Free Cash Flow | |||||||
First Quarter 2022 & 2021 | |||||||
(In Millions) | |||||||
(all amounts unaudited) | |||||||
|
3M 2022 |
|
|
3M 2021 |
|||
Net Cash - Operating Activities | $ |
(2.7 |
) |
$ |
70.8 |
||
Capital expenditures |
|
30.0 |
|
|
17.2 |
||
Free Cash Flow | $ |
(32.7 |
) |
$ |
53.6 |
ITT Inc. Non-GAAP Reconciliation | ||||||||
GAAP vs. Adjusted EPS Guidance | ||||||||
Full Year 2022 | ||||||||
(Per share amounts) | ||||||||
(all amounts unaudited) | ||||||||
2022 Full-Year Guidance | ||||||||
Low | High | |||||||
EPS from Continuing Operations - GAAP | $ |
4.07 |
|
$ |
4.50 |
|
||
Estimated restructuring, net of tax |
|
0.05 |
|
|
0.03 |
|
||
Other special items, net of tax |
|
0.19 |
|
|
0.18 |
|
||
Other tax special Items |
|
(0.01 |
) |
|
(0.01 |
) |
||
EPS from Continuing Operations - Adjusted | $ |
4.30 |
|
$ |
4.70 |
|
Note: | The Company has provided forward-looking non-GAAP financial measures for organic revenue growth and adjusted |
|
||||
|
segment operating margin. It is not possible, without unreasonable efforts, to estimate the impacts of foreign currency |
|||||
|
fluctuations, acquisitions and certain other special items that may occur in 2022 as these items are inherently uncertain |
|||||
|
and difficult to predict. As a result, the Company is unable to quantify certain amounts that would be included in a |
|
||||
|
reconciliation of organic revenue growth and adjusted segment operating margin to the most directly comparable GAAP |
|||||
financial measures without unreasonable efforts and has not provided reconciliations for these forward looking non-GAAP
|
ITT Inc. Non-GAAP Reconciliation | |||||||||
Free Cash Flow and Free Cash Flow Margin Guidance | |||||||||
Full Year 2022 | |||||||||
(In Millions) | |||||||||
(all amounts unaudited) | |||||||||
2022 Full-Year Guidance | |||||||||
Low | High | ||||||||
Net Cash - Operating Activities | $ |
405.0 |
|
$ |
455.0 |
|
|||
Capital expenditures |
|
155.0 |
|
|
155.0 |
|
|||
Free Cash Flow |
|
250.0 |
|
|
300.0 |
|
|||
Revenue #A | $ |
2,986.0 |
|
$ |
2,986.0 |
|
|||
Free Cash Flow margin |
|
8 |
% |
|
10 |
% |
|||
#A Represents the midpoint of the revenue range provided of 7% to 9%. |