REXNORD CORPORATION |
(Exact name of registrant as specified in its charter) |
Delaware | 20-5197013 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
247 Freshwater Way, Suite 300, Milwaukee, Wisconsin | 53204 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Exhibits. |
Exhibit No. | Description |
99.1 | Earnings Release dated May 17, 2017 |
REXNORD CORPORATION | ||
BY: | /S/ Mark W. Peterson | |
Mark W. Peterson | ||
Senior Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Earnings Release dated May 17, 2017 |
Press Release | |
May 17, 2017 | Contact Information: |
For Immediate Release | Rob McCarthy |
Vice President - Investor Relations | |
414.223.1615 |
• | Net sales were $504 million and up 2% year over year. Core sales(1) were flat, excluding a 2% impact from the Rodney Hunt Fontaine (“RHF”) product line exit. Acquisitions contributed 4% to net sales. |
• | Diluted EPS was $0.21, compared with $0.00 in the prior year. |
• | Net income(2) was $22 million. |
• | Adjusted EPS(1) was $0.35, compared with $0.37 in the prior year. |
• | Adjusted EBITDA(1) was $98 million, or 19.5% of net sales. |
• | Net debt(1) leverage ratio reduced to 3.1x. |
• | Net sales were $1.918 billion for fiscal 2017 and essentially flat year over year. |
• | Diluted earnings per share was $0.64, compared with $0.66 in the prior year. |
• | Net income(2) was $67 million. |
• | Adjusted EPS(1) was $1.32, compared with $1.47 in the prior year. |
• | Adjusted EBITDA(1) of $347 million, or 18.1% of net sales. |
• | Free cash flow(1) was $141 million. |
(1) | Refer to "Non-GAAP Measures" for a definition of this non-GAAP metric, as well as the accompanying reconciliations to GAAP. |
(2) | Net Income reflects net income attributable to Rexnord common stockholders. |
(1) | Refer to "Non-GAAP Measures" for a definition of this non-GAAP metric, as well as the accompanying reconciliations to GAAP. |
(2) | Our guidance for GAAP net income is based upon the extent of information available as of the date of this filing regarding events and conditions that will impact our future operating results for the periods noted above. Our actual net income may be materially impacted by events for which information is not available, such as asset impairments, purchase accounting effects related to future acquisitions, future restructuring actions, gains (losses) recognized on the disposal of tangible and intangible assets, gains (losses) on debt extinguishment, actuarial gains (losses) on our defined benefit plans, and other gains (losses) related to events or conditions not yet known. Consequently, we have not included incremental gains or (losses) for these items in our forward-looking guidance since that information is not reasonably available. |
Fourth Quarter Ended | Fiscal Year Ended | |||||||||||||||
March 31, 2017 | March 31, 2016 | March 31, 2017 | March 31, 2016 | |||||||||||||
Net sales | $ | 503.6 | $ | 492.6 | $ | 1,918.2 | $ | 1,923.8 | ||||||||
Cost of sales | 328.0 | 324.8 | 1,250.2 | 1,258.6 | ||||||||||||
Gross profit | 175.6 | 167.8 | 668.0 | 665.2 | ||||||||||||
Selling, general and administrative expenses | 100.1 | 99.3 | 413.2 | 385.7 | ||||||||||||
Restructuring and other similar charges | 9.9 | 24.2 | 31.6 | 34.9 | ||||||||||||
Actuarial (gain) loss on pension and postretirement benefit obligations | (2.6 | ) | 12.9 | (2.6 | ) | 12.9 | ||||||||||
Amortization of intangible assets | 8.4 | 14.3 | 42.1 | 57.4 | ||||||||||||
Income from operations | 59.8 | 17.1 | 183.7 | 174.3 | ||||||||||||
Non-operating (expense) income: | ||||||||||||||||
Interest expense, net | (19.3 | ) | (23.4 | ) | (88.7 | ) | (91.4 | ) | ||||||||
Loss on the extinguishment of debt | — | — | (7.8 | ) | — | |||||||||||
Other (expense) income, net | (1.9 | ) | 5.6 | (5.2 | ) | 3.1 | ||||||||||
Income (loss) from continuing operations before income taxes | 38.6 | (0.7 | ) | 82.0 | 86.0 | |||||||||||
Provision (benefit) for income taxes | 11.2 | (1.5 | ) | 7.9 | 17.1 | |||||||||||
Net income from continuing operations | 27.4 | 0.8 | 74.1 | 68.9 | ||||||||||||
Loss from discontinued operations, net of tax | — | (1.4 | ) | — | (1.4 | ) | ||||||||||
Net income (loss) | 27.4 | (0.6 | ) | 74.1 | 67.5 | |||||||||||
Non-controlling interest loss | — | (0.2 | ) | — | (0.4 | ) | ||||||||||
Net income (loss) attributable to Rexnord | 27.4 | (0.4 | ) | 74.1 | 67.9 | |||||||||||
Dividends on preferred stock | (5.8 | ) | — | (7.3 | ) | — | ||||||||||
Net income (loss) attributable to Rexnord common stockholders | $ | 21.6 | $ | (0.4 | ) | $ | 66.8 | $ | 67.9 | |||||||
Basic net income (loss) per share attributable to Rexnord common stockholders: | ||||||||||||||||
Continuing operations | $ | 0.21 | $ | 0.01 | $ | 0.65 | $ | 0.69 | ||||||||
Discontinued operations | $ | — | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | ||||||
Net income (loss) | $ | 0.21 | $ | (0.00 | ) | $ | 0.65 | $ | 0.67 | |||||||
Diluted income (loss) per share attributable to Rexnord common stockholders: | ||||||||||||||||
Continuing operations | $ | 0.21 | $ | 0.01 | $ | 0.64 | $ | 0.67 | ||||||||
Discontinued operations | $ | — | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | ||||||
Net income (loss) | $ | 0.21 | $ | (0.00 | ) | $ | 0.64 | $ | 0.66 | |||||||
Weighted-average number of shares outstanding (in thousands): | ||||||||||||||||
Basic | 103,482 | 101,248 | 102,753 | 100,841 | ||||||||||||
Effect of dilutive stock options | 1,486 | 1,894 | 2,031 | 2,469 | ||||||||||||
Diluted | 104,968 | 103,142 | 104,784 | 103,310 |
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||
Adjusted EBITDA | March 31, 2017 | March 31, 2016 | March 31, 2017 | March 31, 2016 | |||||||||||
Net income (loss) attributable to Rexnord common shareholders | $ | 21.6 | $ | (0.4 | ) | $ | 66.8 | $ | 67.9 | ||||||
Dividends on preferred stock | 5.8 | — | 7.3 | — | |||||||||||
Non-controlling interest loss | — | (0.2 | ) | — | (0.4 | ) | |||||||||
Income tax provision (benefit) | 11.2 | (1.5 | ) | 7.9 | 17.1 | ||||||||||
Other expense (income), net (1) | 1.9 | (5.6 | ) | 5.2 | (3.1 | ) | |||||||||
Loss on the extinguishment of debt | — | — | 7.8 | — | |||||||||||
Loss from discontinued operations, net of tax | — | 1.4 | — | 1.4 | |||||||||||
Interest expense, net | 19.3 | 23.4 | 88.7 | 91.4 | |||||||||||
Income from operations | 59.8 | 17.1 | 183.7 | 174.3 | |||||||||||
Adjustments | |||||||||||||||
Depreciation and amortization | 26.3 | 29.4 | 105.4 | 115.4 | |||||||||||
Actuarial (gain) loss on pension and postretirement benefit obligations | (2.6 | ) | 12.9 | (2.6 | ) | 12.9 | |||||||||
Restructuring and other similar charges | 9.9 | 24.2 | 31.6 | 34.9 | |||||||||||
Acquisition-related fair value adjustment | — | — | 4.3 | — | |||||||||||
Stock-based compensation expense | 3.6 | 1.7 | 13.4 | 7.5 | |||||||||||
Impact of RHF product line exit (2) | 2.7 | 10.2 | 12.2 | 21.3 | |||||||||||
Last-in first-out inventory adjustments | (2.1 | ) | (2.2 | ) | (2.3 | ) | (0.8 | ) | |||||||
Other, net (1) | 0.4 | — | 0.8 | — | |||||||||||
Subtotal of adjustments | 38.2 | 76.2 | 162.8 | 191.2 | |||||||||||
Adjusted EBITDA | $ | 98.0 | $ | 93.3 | $ | 346.5 | $ | 365.5 |
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||
Adjusted Net Income and Earnings Per Share | March 31, 2017 | March 31, 2016 | March 31, 2017 | March 31, 2016 | |||||||||||
Net income (loss) attributable to Rexnord common shareholders | $ | 21.6 | $ | (0.4 | ) | $ | 66.8 | $ | 67.9 | ||||||
Actuarial (gain) loss on pension and postretirement benefit obligations | (2.6 | ) | 12.9 | (2.6 | ) | 12.9 | |||||||||
Supply chain optimization and footprint repositioning initiatives (3) | 4.4 | 1.0 | 9.6 | 2.5 | |||||||||||
Impact of RHF product line exit (2) | 2.7 | 10.7 | 12.7 | 23.3 | |||||||||||
Loss from discontinued operations, net of tax | — | 1.4 | — | 1.4 | |||||||||||
Loss on the extinguishment of debt | — | — | 7.8 | — | |||||||||||
Restructuring and other similar charges | 9.9 | 24.2 | 31.6 | 34.9 | |||||||||||
Acquisition-related fair value adjustment | — | — | 4.3 | — | |||||||||||
Amortization of intangible assets | 8.4 | 14.3 | 42.1 | 57.4 | |||||||||||
Other, net (1) | 2.3 | (5.8 | ) | 6.0 | (3.5 | ) | |||||||||
Dividends on preferred stock | 5.8 | — | 7.3 | — | |||||||||||
Tax effect on above items | (9.3 | ) | (20.5 | ) | (39.3 | ) | (45.2 | ) | |||||||
Adjusted net income | $ | 43.2 | $ | 37.8 | $ | 146.3 | $ | 151.6 | |||||||
GAAP diluted net income (loss) per share attributable to Rexnord common shareholders | $ | 0.21 | $ | (0.00 | ) | $ | 0.64 | $ | 0.66 | ||||||
Adjusted earnings per share - diluted | $ | 0.35 | $ | 0.37 | $ | 1.32 | $ | 1.47 | |||||||
Weighted-average number of shares outstanding (in thousands) | |||||||||||||||
GAAP diluted weighted-average shares | 104,968 | 103,142 | 104,784 | 103,310 | |||||||||||
Adjustment for assumed conversion of preferred stock into common stock | 18,009 | — | 5,833 | — | |||||||||||
Adjusted diluted weighted-average shares | 122,977 | 103,142 | 110,617 | 103,310 |
(1) | Includes the impact of foreign currency transactions, sale of long-lived assets, other miscellaneous expenses and a non-controlling interest loss. See "Management Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Form 10-K for the fiscal year ended March 31, 2017. |
(2) | During fiscal 2016, the Company announced its decision to exit the RHF flow control gate product line within its Water Management platform. The operating loss (excluding restructuring and other similar charges) is not included in Adjusted EBITDA in accordance with our credit agreement. Further, to enhance comparability between historical periods, the pre-tax loss of the RHF product line exit has also been excluded from our Adjusted earnings per share. |
(3) | Represents accelerated depreciation and other non-cash expenses associated with our strategic supply chain optimization and footprint repositioning initiatives. |
Fourth Quarter Ended | |||||||||||||||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||||||||||||||
Adjusted EBITDA by Segment | Process & Motion Control | Water Management | Corporate | Process & Motion Control | Water Management | Corporate | |||||||||||||||||
Income (loss) from operations | $ | 43.6 | $ | 22.0 | $ | (5.8 | ) | $ | 41.7 | $ | (5.3 | ) | $ | (19.3 | ) | ||||||||
Operating margin | 13.9 | % | 11.6 | % | 14.2 | % | (2.7 | )% | |||||||||||||||
Actuarial (gain) loss on pension and postretirement benefit obligations | — | — | (2.6 | ) | — | — | 12.9 | ||||||||||||||||
Depreciation and amortization | 18.1 | 8.2 | — | 19.6 | 9.8 | — | |||||||||||||||||
Restructuring and other similar charges | 8.8 | 1.1 | — | 7.5 | 16.6 | 0.1 | |||||||||||||||||
Stock-based compensation expense | 0.6 | 0.7 | 2.3 | 0.7 | — | 1.0 | |||||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | 1.4 | — | — | |||||||||||||||||
Impact of RHF product line exit (1) | — | 2.7 | — | — | 10.2 | — | |||||||||||||||||
Last-in first-out inventory adjustments | (1.2 | ) | (0.9 | ) | — | (4.5 | ) | 2.3 | — | ||||||||||||||
Other, net | 0.1 | 0.3 | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | $ | 70.0 | $ | 34.1 | $ | (6.1 | ) | $ | 65.0 | $ | 33.6 | $ | (5.3 | ) | |||||||||
Adjusted EBITDA margin (2) | 22.3 | % | 18.0 | % | 22.1 | % | 17.6 | % |
Fiscal Year Ended | |||||||||||||||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||||||||||||||
Adjusted EBITDA by Segment | Process & Motion Control | Water Management | Corporate | Process & Motion Control | Water Management | Corporate | |||||||||||||||||
Income (loss) from operations | 134.9 | 85.1 | (36.3 | ) | 146.8 | 72.8 | (45.3 | ) | |||||||||||||||
Operating margin | 11.9 | % | 10.9 | % | 13.3 | % | 8.8 | % | |||||||||||||||
Actuarial (gain) loss on pension and postretirement benefit obligations | — | — | (2.6 | ) | — | — | 12.9 | ||||||||||||||||
Depreciation and amortization | 69.9 | 35.5 | — | 77.3 | 38.1 | — | |||||||||||||||||
Restructuring and other similar charges | 23.4 | 8.2 | — | 12.0 | 22.5 | 0.4 | |||||||||||||||||
Acquisition-related fair value adjustment | 4.3 | — | — | — | — | — | |||||||||||||||||
Stock-based compensation expense | 3.1 | 2.1 | 8.2 | 2.3 | 1.3 | 3.9 | |||||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | 1.4 | — | — | |||||||||||||||||
Impact of RHF product line exit (1) | — | 12.2 | — | — | 21.3 | — | |||||||||||||||||
Last-in first-out inventory adjustments | (0.7 | ) | (1.6 | ) | — | (4.2 | ) | 3.4 | — | ||||||||||||||
Other, net | 0.5 | 0.3 | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | $ | 235.4 | $ | 141.8 | $ | (30.7 | ) | $ | 234.2 | $ | 159.4 | $ | (28.1 | ) | |||||||||
Adjusted EBITDA margin (2) | 20.7 | % | 18.4 | % | 21.3 | % | 20.3 | % |
(1) | During fiscal 2016, the Company announced its decision to exit the RHF flow control gate product line within its Water Management platform and its intention to exclude related RHF results from its forward-looking guidance. The operating loss (excluding restructuring and other similar charges) is not included in Adjusted EBITDA in accordance with our credit agreement. |
(2) | Calculation of Adjusted EBITDA margin for our Water Management platform excludes sales associated with the RHF product line. See reconciliation included within the supplemental data for additional details. |
Fiscal Year Ended | ||||||||
March 31, 2017 | March 31, 2016 | |||||||
Cash provided by operating activities | $ | 195.1 | $ | 219.0 | ||||
Expenditures for property, plant and equipment | (54.5 | ) | (52.1 | ) | ||||
Excess tax benefit on exercise of stock options | — | 4.0 | ||||||
Free cash flow | $ | 140.6 | $ | 170.9 |
Fiscal 2018 Earnings Outlook Reconciliation (1) | Earnings Guidance for | |||
the Fiscal Year Ending | ||||
March 31, 2018 | ||||
Net income attributable to Rexnord common shareholders | $87 million to $107 million | |||
Dividends on preferred stock | 23 | |||
Provision for income taxes | 54 | |||
Interest expense, net | 85 | |||
Depreciation and amortization | 88 | |||
Restructuring and other similar charges | 9 | |||
Stock-based compensation expense | 19 | |||
Adjusted EBITDA | $365 million to $385 million |
(1) | Our outlook is based upon the extent of information available as of the date of this filing regarding events and conditions that will impact our future operating results for our fiscal year 2018. Our actual results may be materially impacted by events for which information is not available, such as asset impairments, purchase accounting effects related to future acquisitions, future restructuring actions, gains (losses) recognized on the disposal of tangible and intangible assets, gains (losses) on debt extinguishment, actuarial gains (losses) on our defined benefit plans, and other gains (losses) related to events or conditions not yet known. Consequently, we have not included incremental gains or (losses) for these items in our forward-looking guidance since that information is not reasonably available. |
Twelve Months Ended | ||||||||
March 31, 2017 | March 31, 2016 | |||||||
Net income attributable to Rexnord | $ | 74.1 | $ | 67.9 | ||||
Other comprehensive loss: | ||||||||
Foreign currency translation adjustments | (12.8 | ) | (10.0 | ) | ||||
Unrealized income (loss) on interest rate derivatives, net of tax | 7.4 | (4.3 | ) | |||||
Change in pension and other postretirement defined benefit plans, net of tax | 7.4 | 5.5 | ||||||
Other comprehensive income (loss), net of tax | 2.0 | (8.8 | ) | |||||
Non-controlling interest loss | — | (0.4 | ) | |||||
Total comprehensive income | $ | 76.1 | $ | 58.7 |
March 31, 2017 | March 31, 2016 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 490.1 | $ | 484.6 | ||||
Receivables, net | 322.9 | 317.6 | ||||||
Inventories | 314.9 | 327.2 | ||||||
Other current assets | 50.2 | 46.7 | ||||||
Total current assets | 1,178.1 | 1,176.1 | ||||||
Property, plant and equipment, net | 400.9 | 397.2 | ||||||
Intangible assets, net | 558.6 | 520.9 | ||||||
Goodwill | 1,318.2 | 1,193.8 | ||||||
Other assets | 83.5 | 66.8 | ||||||
Total assets | $ | 3,539.3 | $ | 3,354.8 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Current maturities of debt | $ | 16.5 | $ | 20.2 | ||||
Trade payables | 197.8 | 200.8 | ||||||
Compensation and benefits | 54.3 | 54.0 | ||||||
Current portion of pension and postretirement benefit obligations | 4.3 | 5.0 | ||||||
Other current liabilities | 127.4 | 124.4 | ||||||
Total current liabilities | 400.3 | 404.4 | ||||||
Long-term debt | 1,606.2 | 1,899.9 | ||||||
Pension and postretirement benefit obligations | 174.4 | 195.5 | ||||||
Deferred income taxes | 208.8 | 186.0 | ||||||
Other liabilities | 79.0 | 81.0 | ||||||
Total liabilities | 2,468.7 | 2,766.8 | ||||||
Stockholders' equity: | ||||||||
Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued and outstanding: 103,600,540 at March 31, 2017 and 101,435,762 at March 31, 2016 | 1.0 | 1.0 | ||||||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; shares of 5.75% Series A Mandatory Convertible Preferred Stock issued and outstanding: 402,500 at March 31, 2017 and 0 at March 31, 2016 | 0.0 | — | ||||||
Additional paid-in capital | 1,262.1 | 856.2 | ||||||
Retained deficit | (55.5 | ) | (129.6 | ) | ||||
Accumulated other comprehensive loss | (137.0 | ) | (139.0 | ) | ||||
Total Rexnord stockholders' equity | 1,070.6 | 588.6 | ||||||
Non-controlling interest | — | (0.6 | ) | |||||
Total stockholders' equity | 1,070.6 | 588.0 | ||||||
Total liabilities and stockholders' equity | $ | 3,539.3 | $ | 3,354.8 |
Year Ended | ||||||||
March 31, 2017 | March 31, 2016 | |||||||
Operating activities | ||||||||
Net income | $ | 74.1 | $ | 67.5 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation | 63.3 | 58.0 | ||||||
Amortization of intangible assets | 42.1 | 57.4 | ||||||
Amortization of deferred financing costs | 2.4 | 2.0 | ||||||
Non-cash asset impairment | 1.5 | 17.5 | ||||||
Loss on dispositions of property, plant and equipment | 0.2 | 0.6 | ||||||
Deferred income taxes | (18.4 | ) | (13.9 | ) | ||||
Non-cash charge for disposal of discontinued operations | — | 1.5 | ||||||
Actuarial (gain) loss on pension and post retirement benefit obligations | (2.6 | ) | 12.9 | |||||
Other non-cash (credits) charges | (1.0 | ) | 9.6 | |||||
Loss on extinguishment of debt | 7.8 | — | ||||||
Stock-based compensation expense | 13.4 | 7.5 | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (5.8 | ) | 1.5 | |||||
Inventories | 22.5 | 37.7 | ||||||
Other assets | (9.2 | ) | 7.5 | |||||
Accounts payable | (5.3 | ) | (32.4 | ) | ||||
Accruals and other | 10.1 | (15.9 | ) | |||||
Cash provided by operating activities | 195.1 | 219.0 | ||||||
Investing activities | ||||||||
Expenditures for property, plant and equipment | (54.5 | ) | (52.1 | ) | ||||
Acquisitions, net of cash acquired | (213.7 | ) | 1.1 | |||||
Proceeds from dispositions of property, plant and equipment | 4.2 | 5.8 | ||||||
Proceeds from divestiture, net of cash | — | — | ||||||
Cash used for investing activities | (264.0 | ) | (45.2 | ) | ||||
Financing activities | ||||||||
Proceeds from borrowings of debt | 1,590.3 | 0.9 | ||||||
Repayments of long-term debt | (1,885.8 | ) | (19.5 | ) | ||||
Proceeds from borrowings of short-term debt | 16.1 | — | ||||||
Repayments of short-term debt | (19.5 | ) | (5.9 | ) | ||||
Payment of debt issuance costs | (11.8 | ) | (0.9 | ) | ||||
Deferred acquisition payment | (5.7 | ) | — | |||||
Proceeds from issuance of preferred stock, net of direct offering costs | 389.7 | — | ||||||
Payment of preferred stock dividends | (4.4 | ) | — | |||||
Proceeds from exercise of stock options | 11.0 | 5.1 | ||||||
Repurchase of Company common stock | — | (40.0 | ) | |||||
Excess tax benefit on exercise of stock options | — | 4.0 | ||||||
Cash provided by (used for) financing activities | 79.9 | (56.3 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (5.5 | ) | (3.2 | ) | ||||
Increase in cash and cash equivalents | 5.5 | 114.3 | ||||||
Cash and cash equivalents at beginning of period | 484.6 | 370.3 | ||||||
Cash and cash equivalents at end of period | $ | 490.1 | $ | 484.6 |
Fiscal 2017 | |||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||
Net sales | |||||||||||||||||||
Process & Motion Control | $ | 263.7 | $ | 286.9 | $ | 270.3 | $ | 313.8 | $ | 1,134.7 | |||||||||
Water Management, as adjusted (1) | 201.6 | 198.6 | 179.1 | 189.5 | 768.8 | ||||||||||||||
Total, as adjusted (1) | $ | 465.3 | $ | 485.5 | $ | 449.4 | $ | 503.3 | $ | 1,903.5 | |||||||||
Sales growth | |||||||||||||||||||
Core growth | (1)% | (2)% | (5)% | —% | (2)% | ||||||||||||||
Currency translation | (1)% | —% | (1)% | —% | (1)% | ||||||||||||||
Acquisition/divestiture | (1)% | 3% | 4% | 2% | 3% | ||||||||||||||
Reported growth | (3)% | 1% | (2)% | 2% | —% | ||||||||||||||
Adjusted EBITDA | |||||||||||||||||||
Process & Motion Control | $ | 49.0 | $ | 60.7 | $ | 55.7 | $ | 70.0 | $ | 235.4 | |||||||||
Water Management | 38.3 | 37.9 | 31.5 | 34.1 | 141.8 | ||||||||||||||
Corporate | (8.3 | ) | (8.3 | ) | (8.0 | ) | (6.1 | ) | (30.7 | ) | |||||||||
Total | $ | 79.0 | $ | 90.3 | $ | 79.2 | $ | 98.0 | $ | 346.5 | |||||||||
Adjusted EBITDA % | |||||||||||||||||||
Process & Motion Control | 18.6 | % | 21.2 | % | 20.6 | % | 22.3 | % | 20.7 | % | |||||||||
Water Management | 19.0 | % | 19.1 | % | 17.6 | % | 18.0 | % | 18.4 | % | |||||||||
Total (including Corporate) | 17.0 | % | 18.6 | % | 17.6 | % | 19.5 | % | 18.2 | % | |||||||||
Depreciation & amortization of intangible assets | |||||||||||||||||||
Process & Motion Control | $ | 19.3 | $ | 15.5 | $ | 17.0 | $ | 18.1 | $ | 69.9 | |||||||||
Water Management, as adjusted (1) (2) | 9.4 | 8.6 | 8.8 | 8.2 | 35.0 | ||||||||||||||
Total, as adjusted (1) (2) | $ | 28.7 | $ | 24.1 | $ | 25.8 | $ | 26.3 | $ | 104.9 |
Fiscal 2016 | |||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||
Net sales | |||||||||||||||||||
Process & Motion Control | $ | 271.6 | $ | 268.8 | $ | 265.8 | $ | 294.1 | $ | 1,100.3 | |||||||||
Water Management, as adjusted (1) | 196.6 | 208.5 | 188.2 | 191.2 | 784.5 | ||||||||||||||
Total, as adjusted (1) | 468.2 | 477.3 | 454.0 | 485.3 | 1,884.8 | ||||||||||||||
Sales growth | |||||||||||||||||||
Core growth | (2)% | (5)% | (4)% | (3)% | (3)% | ||||||||||||||
Currency translation | (5)% | (5)% | (4)% | (2)% | (4)% | ||||||||||||||
Acquisition/divestiture | 2% | 2% | 1% | —% | 1% | ||||||||||||||
Reported growth | (5)% | (8)% | (7)% | (5)% | (6)% | ||||||||||||||
Adjusted EBITDA | |||||||||||||||||||
Process & Motion Control | $ | 57.0 | $ | 55.7 | $ | 56.6 | $ | 65.0 | $ | 234.3 | |||||||||
Water Management | 38.9 | 43.5 | 43.4 | 33.6 | 159.4 | ||||||||||||||
Corporate | (8.8 | ) | (6.1 | ) | (7.9 | ) | (5.4 | ) | (28.2 | ) | |||||||||
Total | $ | 87.1 | $ | 93.1 | $ | 92.1 | $ | 93.2 | $ | 365.5 | |||||||||
Adjusted EBITDA % | |||||||||||||||||||
Process & Motion Control | 21.0 | % | 20.7 | % | 21.3 | % | 22.1 | % | 21.3 | % | |||||||||
Water Management | 19.8 | % | 20.9 | % | 23.1 | % | 17.6 | % | 20.3 | % | |||||||||
Total (including Corporate) | 18.6 | % | 19.5 | % | 20.3 | % | 19.2 | % | 19.4 | % | |||||||||
Depreciation & amortization of intangible assets | |||||||||||||||||||
Process & Motion Control | $ | 19.2 | $ | 19.0 | $ | 19.6 | $ | 19.5 | $ | 77.3 | |||||||||
Water Management, as adjusted (1) (2) | 9.0 | 9.4 | 9.9 | 9.8 | 38.1 | ||||||||||||||
Total, as adjusted (1) (2) | $ | 28.2 | $ | 28.4 | $ | 29.5 | $ | 29.3 | $ | 115.4 |
(1) | During the fourth quarter of fiscal 2016, the Company announced its decision to exit the RHF flow control gate product line within its Water Management platform and its intention to exclude related RHF results from its forward-looking guidance. To improve the comparability of historical and prospective financial information, this supplementary schedule presents pro forma Water Management and consolidated financial information that has been adjusted to exclude the RHF product line. Refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" schedules below. |
(2) | Water Management depreciation and amortization includes depreciation associated with RHF of $0.3 million and $0.2 million, in the first and second quarters of fiscal 2017, respectively. Water Management depreciation and amortization includes depreciation and amortization associated with RHF of $0.4 million, $0.5 million, $0.5 million and $0.5 million in the first, second, third and fourth quarters of fiscal 2016, respectively. |
Fiscal 2017 | |||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||
Water Management net sales, as reported | $ | 208.1 | $ | 204.1 | $ | 181.5 | $ | 189.8 | $ | 783.5 | |||||||||
Less RHF net sales (1) | (6.5 | ) | (5.5 | ) | (2.4 | ) | (0.3 | ) | (14.7 | ) | |||||||||
Water Management net sales, as adjusted (1) | $ | 201.6 | $ | 198.6 | $ | 179.1 | $ | 189.5 | $ | 768.8 | |||||||||
Fiscal 2016 | |||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||
Water Management net sales, as reported | $ | 213.5 | $ | 217.1 | $ | 194.4 | $ | 198.5 | $ | 823.5 | |||||||||
Less RHF net sales (1) | (16.9 | ) | (8.6 | ) | (6.2 | ) | (7.3 | ) | (39.0 | ) | |||||||||
Water Management net sales, as adjusted (1) | $ | 196.6 | $ | 208.5 | $ | 188.2 | $ | 191.2 | $ | 784.5 |
(1) | During fiscal 2016, the Company announced its decision to exit the RHF flow control gate product line within its Water Management platform and its intention to exclude related RHF results from its forward-looking guidance. To improve the comparability of historical and prospective financial information, this supplementary schedule presents pro forma Water Management net sales that has been adjusted to exclude the RHF product line. |
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