Delaware | 94-1658138 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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 | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Earnings Press Release, dated July 28, 2015, issued by Anixter International Inc. |
ANIXTER INTERNATIONAL INC. | ||
July 28, 2015 | By: | /s/ Theodore A. Dosch |
Theodore A. Dosch | ||
Executive Vice President - Finance | ||
and Chief Financial Officer |
Exhibit No. | Description |
99.1 | Earnings Press Release, dated July 28, 2015, issued by Anixter International Inc. |
EXHIBIT 99.1 | |
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• | Second quarter sales of $1.5 billion, up 10%, reflecting 3.4% organic growth |
• | Record ECS security sales of $393 million, up 74%, reflecting 8% organic growth |
• | Announced the acquisition of the Power Solutions business of HD Supply for $825 million |
• | Completed the sale of OEM Supply - Fasteners segment for $380 million. |
• | Debt-to-total capital ratio of 44.0% compares to 51.6% at the end of 2014 |
• | Weighted average cost of borrowed capital of 4.7% compares to 4.6% in the year-ago quarter |
• | $458.7 million available under revolving lines of credit and accounts receivable securitization facility |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
Jul 3, 2015 | Jul 4, 2014 | Percent Change | Jul 3, 2015 | Jul 4, 2014 | Percent Change | |||||||||||||||||
Net Sales | $ | 1,480.4 | $ | 1,342.9 | 10 | % | $ | 2,865.5 | $ | 2,617.2 | 10 | % | ||||||||||
Operating Income | $ | 64.5 | $ | 77.2 | (17 | )% | $ | 123.8 | $ | 147.2 | (16 | )% | ||||||||||
EBITDA | $ | 71.6 | $ | 81.7 | (12 | )% | $ | 137.1 | $ | 148.4 | (8 | )% | ||||||||||
Net Income | $ | 29.5 | $ | 44.5 | (34 | )% | $ | 56.0 | $ | 82.2 | (32 | )% | ||||||||||
Diluted Earnings Per Share | $ | 0.88 | $ | 1.33 | (34 | )% | $ | 1.68 | $ | 2.47 | (32 | )% | ||||||||||
Diluted Weighted Shares | 33.4 | 33.3 | — | % | 33.4 | 33.3 | — | % |
Ted Dosch | Lisa Micou Meers, CFA |
EVP - Finance & Chief Financial Officer | VP - Investor Relations |
(224) 521-4281 | (224) 521-8895 |
ANIXTER INTERNATIONAL INC. | |||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2015 | July 4, 2014 | July 3, 2015 | July 4, 2014 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
As Adjusted | As Adjusted | ||||||||||||||
Net sales | $ | 1,480.4 | $ | 1,342.9 | $ | 2,865.5 | $ | 2,617.2 | |||||||
Cost of goods sold | 1,151.5 | 1,039.6 | 2,227.3 | 2,022.1 | |||||||||||
Gross profit | 328.9 | 303.3 | 638.2 | 595.1 | |||||||||||
Operating expenses | 264.4 | 226.1 | 514.4 | 447.9 | |||||||||||
Operating income | 64.5 | 77.2 | 123.8 | 147.2 | |||||||||||
Other expense: | |||||||||||||||
Interest expense | (12.7 | ) | (9.0 | ) | (26.9 | ) | (19.1 | ) | |||||||
Other, net | (3.5 | ) | (1.9 | ) | (7.5 | ) | (11.6 | ) | |||||||
Income from continuing operations before income taxes | 48.3 | 66.3 | 89.4 | 116.5 | |||||||||||
Income tax expense from continuing operations | 18.8 | 21.8 | 33.4 | 34.3 | |||||||||||
Net income from continuing operations | 29.5 | 44.5 | 56.0 | 82.2 | |||||||||||
Income from discontinued operations before income taxes (including gain on disposal of $42.3 million) | 46.5 | 13.4 | 57.7 | 27.4 | |||||||||||
Income tax expense from discontinued operations | 4.6 | 4.1 | 23.2 | 8.4 | |||||||||||
Net income from discontinued operations | 41.9 | 9.3 | 34.5 | 19.0 | |||||||||||
Net income | $ | 71.4 | $ | 53.8 | $ | 90.5 | $ | 101.2 | |||||||
Income per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 0.89 | $ | 1.35 | $ | 1.69 | $ | 2.49 | |||||||
Discontinued operations | 1.26 | 0.28 | 1.04 | 0.58 | |||||||||||
Net Income | $ | 2.15 | $ | 1.63 | $ | 2.73 | $ | 3.07 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 0.88 | $ | 1.33 | $ | 1.68 | $ | 2.47 | |||||||
Discontinued operations | 1.26 | 0.28 | 1.03 | 0.57 | |||||||||||
Net Income | $ | 2.14 | $ | 1.61 | $ | 2.71 | $ | 3.04 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 33.2 | 33.0 | 33.2 | 33.0 | |||||||||||
Diluted | 33.4 | 33.3 | 33.4 | 33.3 | |||||||||||
Reportable Segments | |||||||||||||||
Net sales: | |||||||||||||||
Enterprise Cabling & Security Solutions | $ | 1,001.6 | $ | 834.0 | $ | 1,917.4 | $ | 1,610.8 | |||||||
Electrical and Electronic Wire & Cable | 478.8 | 508.9 | 948.1 | 1,006.4 | |||||||||||
$ | 1,480.4 | $ | 1,342.9 | $ | 2,865.5 | $ | 2,617.2 | ||||||||
Operating income: | |||||||||||||||
Enterprise Cabling & Security Solutions | $ | 42.2 | $ | 45.5 | $ | 78.5 | $ | 83.1 | |||||||
Electrical and Electronic Wire & Cable | 25.0 | 34.7 | 51.2 | 70.0 | |||||||||||
Corporate | (2.7 | ) | (3.0 | ) | (5.9 | ) | (5.9 | ) | |||||||
$ | 64.5 | $ | 77.2 | $ | 123.8 | $ | 147.2 |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
July 3, 2015 | January 2, 2015 | ||||||
(In millions, except share and per share amounts) | |||||||
As Adjusted | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 206.2 | $ | 92.0 | |||
Accounts receivable, net | 1,177.6 | 1,171.0 | |||||
Inventories | 865.1 | 859.0 | |||||
Deferred income taxes | 33.4 | 33.7 | |||||
Other current assets | 50.9 | 54.9 | |||||
Current assets of discontinued operations | 47.6 | 379.2 | |||||
Total current assets | 2,380.8 | 2,589.8 | |||||
Property and equipment, net | 112.0 | 104.2 | |||||
Goodwill | 577.3 | 582.3 | |||||
Other assets | 265.3 | 282.5 | |||||
Long-term assets of discontinued operations | — | 27.7 | |||||
Total assets | $ | 3,335.4 | $ | 3,586.5 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 773.3 | $ | 738.5 | |||
Accrued expenses | 193.3 | 183.2 | |||||
Current liabilities of discontinued operations | 29.8 | 108.8 | |||||
Total current liabilities | 996.4 | 1,030.5 | |||||
5.125% Senior notes | 394.5 | 394.2 | |||||
5.625% Senior notes | 346.3 | 345.9 | |||||
Term loan | 196.3 | 198.8 | |||||
Revolving lines of credit and other | 3.6 | 3.8 | |||||
5.95% senior notes | — | 200.0 | |||||
Accounts receivable securitization facility | — | 65.0 | |||||
Other liabilities | 198.0 | 215.1 | |||||
Long-term liabilities of discontinued operations | 4.5 | 0.2 | |||||
Total liabilities | 2,139.6 | 2,453.5 | |||||
Total stockholders' equity | 1,195.8 | 1,133.0 | |||||
Total liabilities and stockholders' equity | $ | 3,335.4 | $ | 3,586.5 |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Six Months Ended | |||||||
July 3, 2015 | July 4, 2014 | ||||||
(In millions) | |||||||
Operating activities: | |||||||
Net income | $ | 90.5 | $ | 101.2 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on sale of business, net of tax of $10.0 | (49.3 | ) | — | ||||
Depreciation | 11.9 | 11.4 | |||||
Amortization of intangible assets | 10.7 | 3.9 | |||||
Stock-based compensation | 7.4 | 6.6 | |||||
Accretion of debt discount | 0.8 | 0.5 | |||||
Amortization of deferred financing costs | 0.7 | 0.7 | |||||
Deferred income taxes | — | (3.8 | ) | ||||
Excess income tax benefit from employee stock plans | (0.5 | ) | (3.6 | ) | |||
Pension plan contributions | (12.1 | ) | (8.3 | ) | |||
Pension plan expenses | 5.9 | 2.3 | |||||
Changes in current assets and liabilities, net | (30.5 | ) | (22.4 | ) | |||
Other, net | 3.8 | (1.8 | ) | ||||
Net cash provided by operating activities | 39.3 | 86.7 | |||||
Investing activities: | |||||||
Proceeds from sale of business | 358.0 | — | |||||
Capital expenditures, net | (22.1 | ) | (17.1 | ) | |||
Other | 2.2 | — | |||||
Net cash provided by (used in) investing activities | 338.1 | (17.1 | ) | ||||
Financing activities: | |||||||
Proceeds from borrowings | 508.8 | 625.4 | |||||
Repayment of borrowings | (573.8 | ) | (606.1 | ) | |||
Retirement of Notes due 2015 | (200.0 | ) | — | ||||
Repayment of term loan | (2.5 | ) | — | ||||
Excess income tax benefit from employee stock plans | 0.5 | 3.6 | |||||
Retirement of Notes due 2014 | — | (32.3 | ) | ||||
Proceeds from stock options exercised | — | 4.2 | |||||
Deferred financing costs | — | (0.5 | ) | ||||
Other | (1.0 | ) | (1.7 | ) | |||
Net cash used in financing activities | (268.0 | ) | (7.4 | ) | |||
Increase in cash and cash equivalents | 109.4 | 62.2 | |||||
Effect of exchange rate changes on cash balances | 4.8 | 1.9 | |||||
Cash and cash equivalents at beginning of period | 92.0 | 57.3 | |||||
Cash and cash equivalents at end of period | $ | 206.2 | $ | 121.4 |
ANIXTER INTERNATIONAL INC. | |||||||||||||||||||||||||||||||||
Financial Measures That Supplement GAAP (Unaudited) | |||||||||||||||||||||||||||||||||
Second Quarter 2015 Sales Growth Trends | |||||||||||||||||||||||||||||||||
Q2 2015 | Q2 2014 | ||||||||||||||||||||||||||||||||
($ millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Reported | Acquisition Impact | Pro Forma | Organic Growth/ (Decline) | |||||||||||||||||||||||||
(as adjusted) | |||||||||||||||||||||||||||||||||
Enterprise Cabling and Security Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 795.4 | $ | 12.6 | $ | — | $ | 808.0 | $ | 613.4 | $ | 148.4 | $ | 761.8 | 6.1 | % | |||||||||||||||||
Europe | 83.1 | 11.8 | — | 94.9 | 82.7 | — | 82.7 | 14.8 | % | ||||||||||||||||||||||||
Emerging Markets | 123.1 | 7.9 | — | 131.0 | 137.9 | 0.6 | 138.5 | (5.5 | )% | ||||||||||||||||||||||||
ECS | $ | 1,001.6 | $ | 32.3 | $ | — | $ | 1,033.9 | $ | 834.0 | $ | 149.0 | $ | 983.0 | 5.2 | % | |||||||||||||||||
Electrical and Electronic Wire and Cable | |||||||||||||||||||||||||||||||||
North America | $ | 344.0 | $ | 11.8 | $ | 8.0 | $ | 363.8 | $ | 352.8 | $ | — | $ | 352.8 | 3.1 | % | |||||||||||||||||
Europe | 64.3 | 7.2 | 0.2 | 71.7 | 88.1 | — | 88.1 | (18.6 | )% | ||||||||||||||||||||||||
Emerging Markets | 70.5 | 2.5 | 0.7 | 73.7 | 68.0 | — | 68.0 | 8.5 | % | ||||||||||||||||||||||||
W&C | $ | 478.8 | $ | 21.5 | $ | 8.9 | $ | 509.2 | $ | 508.9 | $ | — | $ | 508.9 | 0.1 | % | |||||||||||||||||
Total | $ | 1,480.4 | $ | 53.8 | $ | 8.9 | $ | 1,543.1 | $ | 1,342.9 | $ | 149.0 | $ | 1,491.9 | 3.4 | % | |||||||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||||
North America | $ | 1,139.4 | $ | 24.4 | $ | 8.0 | $ | 1,171.8 | $ | 966.2 | $ | 148.4 | $ | 1,114.6 | 5.1 | % | |||||||||||||||||
Europe | 147.4 | 19.0 | 0.2 | 166.6 | 170.8 | — | 170.8 | (2.4 | )% | ||||||||||||||||||||||||
Emerging Markets | 193.6 | 10.4 | 0.7 | 204.7 | 205.9 | 0.6 | 206.5 | (0.9 | )% | ||||||||||||||||||||||||
Total | $ | 1,480.4 | $ | 53.8 | $ | 8.9 | $ | 1,543.1 | $ | 1,342.9 | $ | 149.0 | $ | 1,491.9 | 3.4 | % | |||||||||||||||||
June Year-to-Date 2015 Sales Growth Trends | ||||||||||||||||||||||||||||||||
YTD 2015 | YTD 2014 | |||||||||||||||||||||||||||||||
($ millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Reported | Acquisition Impact | Pro Forma | Organic Growth/ (Decline) | ||||||||||||||||||||||||
(as adjusted) | ||||||||||||||||||||||||||||||||
Enterprise Cabling and Security Solutions | ||||||||||||||||||||||||||||||||
North America | $ | 1,515.6 | $ | 23.5 | $ | — | $ | 1,539.1 | $ | 1,182.0 | $ | 289.3 | $ | 1,471.3 | 4.6 | % | ||||||||||||||||
Europe | 166.5 | 22.5 | — | 189.0 | 166.3 | — | 166.3 | 13.7 | % | |||||||||||||||||||||||
Emerging Markets | 235.3 | 14.2 | — | 249.5 | 262.5 | 1.5 | 264.0 | (5.5 | )% | |||||||||||||||||||||||
ECS | $ | 1,917.4 | $ | 60.2 | $ | — | $ | 1,977.6 | $ | 1,610.8 | $ | 290.8 | $ | 1,901.6 | 4.0 | % | ||||||||||||||||
Electrical and Electronic Wire and Cable | ||||||||||||||||||||||||||||||||
North America | $ | 683.8 | $ | 21.7 | $ | 21.7 | $ | 727.2 | $ | 703.6 | $ | — | $ | 703.6 | 3.3 | % | ||||||||||||||||
Europe | 135.9 | 14.3 | 1.0 | 151.2 | 170.7 | — | 170.7 | (11.4 | )% | |||||||||||||||||||||||
Emerging Markets | 128.4 | 4.1 | 2.0 | 134.5 | 132.1 | — | 132.1 | 1.8 | % | |||||||||||||||||||||||
W&C | $ | 948.1 | $ | 40.1 | $ | 24.7 | $ | 1,012.9 | $ | 1,006.4 | $ | — | $ | 1,006.4 | 0.6 | % | ||||||||||||||||
Total | $ | 2,865.5 | $ | 100.3 | $ | 24.7 | $ | 2,990.5 | $ | 2,617.2 | $ | 290.8 | $ | 2,908.0 | 2.8 | % | ||||||||||||||||
Geographic Sales | ||||||||||||||||||||||||||||||||
North America | $ | 2,199.4 | $ | 45.2 | $ | 21.7 | $ | 2,266.3 | $ | 1,885.6 | $ | 289.3 | $ | 2,174.9 | 4.2 | % | ||||||||||||||||
Europe | 302.4 | 36.8 | 1.0 | 340.2 | 337.0 | — | 337.0 | 1.0 | % | |||||||||||||||||||||||
Emerging Markets | 363.7 | 18.3 | 2.0 | 384.0 | 394.6 | 1.5 | 396.1 | (3.1 | )% | |||||||||||||||||||||||
Total | $ | 2,865.5 | $ | 100.3 | $ | 24.7 | $ | 2,990.5 | $ | 2,617.2 | $ | 290.8 | $ | 2,908.0 | 2.8 | % | ||||||||||||||||
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
Financial Measures That Supplement GAAP (Unaudited) - continued | ||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Positive (Negative) impact | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2015 | July 4, 2014 | July 3, 2015 | July 4, 2014 | |||||||||||||
Continuing operations | As Adjusted | As Adjusted | ||||||||||||||
Items impacting comparability of results: | ||||||||||||||||
Items impacting operating income: | ||||||||||||||||
Restructuring charge | $ | (5.3 | ) | $ | — | $ | (5.3 | ) | $ | — | ||||||
Write-off of capitalized software | (3.1 | ) | — | (3.1 | ) | — | ||||||||||
Venezuelan customer bad debt expense | (2.6 | ) | — | (2.6 | ) | — | ||||||||||
Dilapidation provision | (1.7 | ) | — | (1.7 | ) | — | ||||||||||
Acquisition and integration costs | (1.0 | ) | — | (1.0 | ) | — | ||||||||||
Pension divestiture costs | (0.4 | ) | — | (0.4 | ) | — | ||||||||||
Total of items impacting operating income | $ | (14.1 | ) | $ | — | $ | (14.1 | ) | $ | — | ||||||
Items impacting other expenses: | ||||||||||||||||
Foreign exchange loss from the devaluation of foreign currencies | $ | — | $ | — | $ | (0.7 | ) | $ | (8.0 | ) | ||||||
Total of items impacting other expenses | $ | — | $ | — | $ | (0.7 | ) | $ | (8.0 | ) | ||||||
Total of items impacting pre-tax income | $ | (14.1 | ) | $ | — | $ | (14.8 | ) | $ | (8.0 | ) | |||||
Items impacting income taxes: | ||||||||||||||||
Tax impact of items impacting pre-tax income above | $ | 5.2 | $ | — | $ | 5.5 | $ | 2.7 | ||||||||
Primarily reversal of deferred income tax valuation allowances | — | 2.0 | — | 6.9 | ||||||||||||
Impact of change in forecast on effective tax rate | — | (0.5 | ) | — | — | |||||||||||
Total of items impacting income taxes | $ | 5.2 | $ | 1.5 | $ | 5.5 | $ | 9.6 | ||||||||
Net income impact of these items | $ | (8.9 | ) | $ | 1.5 | $ | (9.3 | ) | $ | 1.6 | ||||||
Diluted EPS impact of these items | $ | (0.27 | ) | $ | 0.04 | $ | (0.27 | ) | $ | 0.05 | ||||||
GAAP to Non-GAAP Net Income and EPS Reconciliation for continuing operations: | ||||||||||||||||
Net income from continuing operations – Non-GAAP | $ | 38.4 | $ | 43.0 | $ | 65.3 | $ | 80.6 | ||||||||
Items impacting net income from continuing operations | (8.9 | ) | 1.5 | (9.3 | ) | 1.6 | ||||||||||
Net income from continuing operations – GAAP | $ | 29.5 | $ | 44.5 | $ | 56.0 | $ | 82.2 | ||||||||
Diluted EPS – Non-GAAP | $ | 1.15 | $ | 1.29 | $ | 1.95 | $ | 2.42 | ||||||||
Diluted EPS impact of these items | (0.27 | ) | 0.04 | (0.27 | ) | 0.05 | ||||||||||
Diluted EPS – GAAP | $ | 0.88 | $ | 1.33 | $ | 1.68 | $ | 2.47 | ||||||||
Items impacting comparability of Operating Income by Segment | Three Months Ended July 3, 2015 | |||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Adjusted operating income - Non-GAAP | $ | 50.9 | $ | 30.0 | $ | (2.3 | ) | $ | 78.6 | |||||||
Adjusted operating margin - Non-GAAP | 5.1 | % | 6.3 | % | nm | 5.3 | % | |||||||||
Total of items impacting operating income for the three months ended July 3, 2015 | $ | (8.7 | ) | $ | (5.0 | ) | $ | (0.4 | ) | $ | (14.1 | ) | ||||
Operating income - GAAP | $ | 42.2 | $ | 25.0 | $ | (2.7 | ) | $ | 64.5 | |||||||
Operating margin - GAAP | 4.2 | % | 5.2 | % | nm | 4.4 | % | |||||||||
Items impacting comparability of Operating Income by Segment | Six Months Ended July 3, 2015 | |||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Adjusted operating income - Non-GAAP | $ | 87.2 | $ | 56.2 | $ | (5.5 | ) | $ | 137.9 | |||||||
Adjusted operating margin - Non-GAAP | 4.6 | % | 5.9 | % | nm | 4.8 | % | |||||||||
Total of items impacting operating income for the six months ended July 3, 2015 | $ | (8.7 | ) | $ | (5.0 | ) | $ | (0.4 | ) | $ | (14.1 | ) | ||||
Operating income - GAAP | $ | 78.5 | $ | 51.2 | $ | (5.9 | ) | $ | 123.8 | |||||||
Operating margin - GAAP | 4.1 | % | 5.4 | % | nm | 4.3 | % | |||||||||
nm - not meaningful |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
2015 and 2014 Effective Tax Rate – GAAP and Non-GAAP | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, | July 4, | July 3, | July 4, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
As Adjusted | As Adjusted | |||||||||||||||
Income from continuing operations before taxes – GAAP | $ | 48.3 | $ | 66.3 | $ | 89.4 | $ | 116.5 | ||||||||
Income tax expense – GAAP | $ | 18.8 | $ | 21.8 | $ | 33.4 | $ | 34.3 | ||||||||
Effective income tax rate | 38.8 | % | 32.9 | % | 37.4 | % | 29.4 | % | ||||||||
Total of items impacting pre-tax income above | $ | (14.1 | ) | $ | — | $ | (14.8 | ) | $ | (8.0 | ) | |||||
Total of items impacting income taxes above | $ | 5.2 | $ | 1.5 | $ | 5.5 | $ | 9.6 | ||||||||
Income from continuing operations before income taxes – Non-GAAP | $ | 62.4 | $ | 66.3 | $ | 104.2 | $ | 124.5 | ||||||||
Income tax expense – Non-GAAP | $ | 24.0 | $ | 23.3 | $ | 38.9 | $ | 43.9 | ||||||||
Adjusted effective income tax rate | 38.4 | % | 35.2 | % | 37.3 | % | 35.3 | % |
2015 EBITDA by Segment | ||||||||||||||||
Three Months Ended July 3, 2015 | ||||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Net income from continuing operations | $ | 42.2 | $ | 25.0 | $ | (37.7 | ) | $ | 29.5 | |||||||
Interest expense | — | — | 12.7 | 12.7 | ||||||||||||
Income taxes | — | — | 18.8 | 18.8 | ||||||||||||
Depreciation | 3.7 | 1.5 | 0.1 | 5.3 | ||||||||||||
Amortization of intangible assets | 3.7 | 1.5 | — | 5.2 | ||||||||||||
EBITDA | $ | 49.6 | $ | 28.0 | $ | (6.1 | ) | $ | 71.5 | |||||||
EBITDA leverage | 0.5 | % | 32.8 | % | nm | (7.5 | )% | |||||||||
EBITDA as a % of sales | 5.0 | % | 5.8 | % | nm | 4.8 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 3.5 | $ | 3.5 | ||||||||
Stock-based compensation | 2.3 | 1.2 | 0.1 | 3.6 | ||||||||||||
Restructuring charge | 3.0 | 2.2 | 0.1 | 5.3 | ||||||||||||
Write-off of capitalized software | 1.9 | 0.9 | 0.3 | 3.1 | ||||||||||||
Venezuelan customer bad debt expense | 2.6 | — | — | 2.6 | ||||||||||||
Dilapidation provision | 0.9 | 0.8 | — | 1.7 | ||||||||||||
Acquisition and integration costs | — | 1.0 | — | 1.0 | ||||||||||||
Pension divestiture costs | 0.3 | 0.1 | — | 0.4 | ||||||||||||
Adjusted EBITDA | $ | 60.6 | $ | 34.2 | $ | (2.1 | ) | $ | 92.7 | |||||||
Adjusted EBITDA leverage | 6.0 | % | 16.0 | % | nm | 4.3 | % | |||||||||
Adjusted EBITDA as a % of sales | 6.0 | % | 7.2 | % | nm | 6.3 | % | |||||||||
Six Months Ended July 3, 2015 | ||||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Net income from continuing operations | $ | 78.5 | $ | 51.2 | $ | (73.7 | ) | $ | 56.0 | |||||||
Interest expense | — | — | 26.9 | 26.9 | ||||||||||||
Income taxes | — | — | 33.4 | 33.4 | ||||||||||||
Depreciation | 7.1 | 3.2 | 0.1 | 10.4 | ||||||||||||
Amortization of intangible assets | 7.4 | 2.9 | — | 10.3 | ||||||||||||
EBITDA | $ | 93.0 | $ | 57.3 | $ | (13.3 | ) | $ | 137.0 | |||||||
EBITDA leverage | 1.2 | % | 32.8 | % | nm | (4.6 | )% | |||||||||
EBITDA as a % of sales | 4.9 | % | 6.1 | % | nm | 4.8 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 7.5 | $ | 7.5 | ||||||||
Stock-based compensation | 4.4 | 2.4 | 0.1 | 6.9 | ||||||||||||
Restructuring charge | 3.0 | 2.2 | 0.1 | 5.3 | ||||||||||||
Write-off of capitalized software | 1.9 | 0.9 | 0.3 | 3.1 | ||||||||||||
Venezuelan customer bad debt expense | 2.6 | — | — | 2.6 | ||||||||||||
Dilapidation provision | 0.9 | 0.8 | — | 1.7 | ||||||||||||
Acquisition and integration costs | — | 1.0 | — | 1.0 | ||||||||||||
Pension divestiture costs | 0.3 | 0.1 | — | 0.4 | ||||||||||||
Adjusted EBITDA | $ | 106.1 | $ | 64.7 | $ | (5.3 | ) | $ | 165.5 | |||||||
Adjusted EBITDA leverage | 4.3 | % | 24.2 | % | nm | (0.2 | )% | |||||||||
Adjusted EBITDA as a % of sales | 5.5 | % | 6.8 | % | nm | 5.8 | % | |||||||||
nm - not meaningful |
2014 EBITDA by Segment | ||||||||||||||||
Three Months Ended July 4, 2014 | ||||||||||||||||
As Adjusted | ||||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Net income from continuing operations | $ | 45.5 | $ | 34.7 | $ | (35.7 | ) | $ | 44.5 | |||||||
Interest expense | — | — | 9.0 | 9.0 | ||||||||||||
Income taxes | — | — | 21.8 | 21.8 | ||||||||||||
Depreciation | 2.9 | 1.9 | — | 4.8 | ||||||||||||
Amortization of intangible assets | 0.2 | 1.4 | — | 1.6 | ||||||||||||
EBITDA | $ | 48.6 | $ | 38.0 | $ | (4.9 | ) | $ | 81.7 | |||||||
EBITDA leverage | nm | nm | nm | nm | ||||||||||||
EBITDA as a % of sales | 5.8 | % | 7.4 | % | nm | 6.1 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 1.9 | $ | 1.9 | ||||||||
Stock-based compensation | 1.9 | 1.1 | — | 3.0 | ||||||||||||
Adjusted EBITDA | $ | 50.5 | $ | 39.1 | $ | (3.0 | ) | $ | 86.6 | |||||||
Adjusted EBITDA leverage | nm | nm | nm | nm | ||||||||||||
Adjusted EBITDA as a % of sales | 6.1 | % | 7.7 | % | nm | 6.5 | % | |||||||||
Six Months Ended July 4, 2014 | ||||||||||||||||
As Adjusted | ||||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Net income from continuing operations | $ | 83.1 | $ | 70.0 | $ | (70.9 | ) | $ | 82.2 | |||||||
Interest expense | — | — | 19.1 | 19.1 | ||||||||||||
Income taxes | — | — | 34.3 | 34.3 | ||||||||||||
Depreciation | 5.8 | 3.7 | — | 9.5 | ||||||||||||
Amortization of intangible assets | 0.4 | 2.9 | — | 3.3 | ||||||||||||
EBITDA | $ | 89.3 | $ | 76.6 | $ | (17.5 | ) | $ | 148.4 | |||||||
EBITDA leverage | nm | nm | nm | nm | ||||||||||||
EBITDA as a % of sales | 5.5 | % | 7.6 | % | nm | 5.7 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 11.6 | $ | 11.6 | ||||||||
Stock-based compensation | 3.7 | 2.3 | — | 6.0 | ||||||||||||
Adjusted EBITDA | $ | 93.0 | $ | 78.9 | $ | (5.9 | ) | $ | 166.0 | |||||||
Adjusted EBITDA leverage | nm | nm | nm | nm | ||||||||||||
Adjusted EBITDA as a % of sales | 5.8 | % | 7.8 | % | nm | 6.3 | % | |||||||||
nm - not meaningful |
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