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 October 27, 2015, issued by Anixter International Inc. |
ANIXTER INTERNATIONAL INC. | ||
October 27, 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 October 27, 2015, issued by Anixter International Inc. |
EXHIBIT 99.1 | |
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• | Third quarter sales of $1.5 billion, up 4%, reflecting 1% organic growth |
• | Record quarter ECS sales of $1.0 billion, up 15%, reflecting 4% organic growth |
• | Acquired the Power Solutions business of HD Supply on October 5th |
• | Debt-to-total capital ratio of 51.8% compares to 51.6% at the end of 2014 |
• | Weighted average cost of borrowed capital of 5.3% compares to 4.7% in the year-ago quarter |
• | $336.7 million available under revolving lines of credit and accounts receivable securitization facility |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
Oct 2, 2015 | Oct 3, 2014 | Percent Change | Oct 2, 2015 | Oct 3, 2014 | Percent Change | |||||||||||||||||
Net Sales | $ | 1,489.2 | $ | 1,438.0 | 4 | % | $ | 4,354.7 | $ | 4,055.2 | 7 | % | ||||||||||
Operating Income | $ | 78.2 | $ | 82.5 | (5 | )% | $ | 202.0 | $ | 229.7 | (12 | )% | ||||||||||
EBITDA | $ | 82.9 | $ | 87.6 | (5 | )% | $ | 219.9 | $ | 236.0 | (7 | )% | ||||||||||
Net Income | $ | 35.4 | $ | 45.4 | (22 | )% | $ | 91.4 | $ | 127.6 | (28 | )% | ||||||||||
Diluted Earnings Per Share | $ | 1.06 | $ | 1.36 | (22 | )% | $ | 2.73 | $ | 3.83 | (29 | )% | ||||||||||
Diluted Weighted Shares | 33.4 | 33.4 | — | % | 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 | Nine Months Ended | ||||||||||||||
October 2, 2015 | October 3, 2014 | October 2, 2015 | October 3, 2014 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
As Adjusted | As Adjusted | ||||||||||||||
Net sales | $ | 1,489.2 | $ | 1,438.0 | $ | 4,354.7 | $ | 4,055.2 | |||||||
Cost of goods sold | 1,158.3 | 1,115.3 | 3,385.6 | 3,137.4 | |||||||||||
Gross profit | 330.9 | 322.7 | 969.1 | 917.8 | |||||||||||
Operating expenses | 252.7 | 240.2 | 767.1 | 688.1 | |||||||||||
Operating income | 78.2 | 82.5 | 202.0 | 229.7 | |||||||||||
Interest expense | (15.8 | ) | (10.3 | ) | (42.7 | ) | (29.4 | ) | |||||||
Other, net | (5.5 | ) | (2.0 | ) | (13.0 | ) | (13.6 | ) | |||||||
Income from continuing operations before income taxes | 56.9 | 70.2 | 146.3 | 186.7 | |||||||||||
Income tax expense from continuing operations | 21.5 | 24.8 | 54.9 | 59.1 | |||||||||||
Net income from continuing operations | 35.4 | 45.4 | 91.4 | 127.6 | |||||||||||
(Loss) income from discontinued operations before income taxes (1) | (3.1 | ) | 10.2 | 54.6 | 37.6 | ||||||||||
Income tax (benefit) expense from discontinued operations | (0.2 | ) | 3.1 | 23.0 | 11.5 | ||||||||||
Net (loss) income from discontinued operations | (2.9 | ) | 7.1 | 31.6 | 26.1 | ||||||||||
Net income | $ | 32.5 | $ | 52.5 | $ | 123.0 | $ | 153.7 | |||||||
Income (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 1.06 | $ | 1.37 | $ | 2.75 | $ | 3.87 | |||||||
Discontinued operations | (0.09 | ) | 0.22 | 0.95 | 0.79 | ||||||||||
Net Income | $ | 0.97 | $ | 1.59 | $ | 3.70 | $ | 4.66 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 1.06 | $ | 1.36 | $ | 2.73 | $ | 3.83 | |||||||
Discontinued operations | (0.09 | ) | 0.21 | 0.95 | 0.78 | ||||||||||
Net Income | $ | 0.97 | $ | 1.57 | $ | 3.68 | $ | 4.61 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 33.3 | 33.1 | 33.2 | 33.0 | |||||||||||
Diluted | 33.4 | 33.4 | 33.4 | 33.3 | |||||||||||
Reportable Segments | |||||||||||||||
Net sales: | |||||||||||||||
Enterprise Cabling & Security Solutions | $ | 1,035.4 | $ | 903.9 | $ | 2,952.8 | $ | 2,514.7 | |||||||
Electrical and Electronic Wire & Cable | 453.8 | 534.1 | 1,401.9 | 1,540.5 | |||||||||||
$ | 1,489.2 | $ | 1,438.0 | $ | 4,354.7 | $ | 4,055.2 | ||||||||
Operating income: | |||||||||||||||
Enterprise Cabling & Security Solutions | $ | 61.8 | $ | 46.7 | $ | 140.3 | $ | 129.8 | |||||||
Electrical and Electronic Wire & Cable | 28.6 | 38.7 | 79.8 | 108.7 | |||||||||||
Corporate | (12.2 | ) | (2.9 | ) | (18.1 | ) | (8.8 | ) | |||||||
$ | 78.2 | $ | 82.5 | $ | 202.0 | $ | 229.7 | ||||||||
(1) Includes $2.6 million loss on disposal and $39.7 million gain on disposal during the three and nine months ended October 2, 2015, respectively. |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
October 2, 2015 | January 2, 2015 | ||||||
(In millions) | |||||||
As Adjusted | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 614.9 | $ | 92.0 | |||
Accounts receivable, net | 1,188.1 | 1,171.0 | |||||
Inventories | 881.9 | 859.0 | |||||
Deferred income taxes | 30.7 | 33.7 | |||||
Other current assets | 52.8 | 54.9 | |||||
Current assets of discontinued operations | 41.6 | 379.2 | |||||
Total current assets | 2,810.0 | 2,589.8 | |||||
Property and equipment, net | 107.0 | 104.2 | |||||
Goodwill | 572.4 | 582.3 | |||||
Other assets | 257.7 | 282.5 | |||||
Long-term assets of discontinued operations | 0.6 | 27.7 | |||||
Total assets | $ | 3,747.7 | $ | 3,586.5 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 852.5 | $ | 738.5 | |||
Accrued expenses | 194.3 | 183.2 | |||||
Current liabilities of discontinued operations | 26.2 | 108.8 | |||||
Total current liabilities | 1,073.0 | 1,030.5 | |||||
5.125% Senior notes due 2021 | 394.7 | 394.2 | |||||
5.625% Senior notes due 2019 | 346.6 | 345.9 | |||||
5.50% Senior notes due 2023 | 345.7 | — | |||||
Term loan | 195.0 | 198.8 | |||||
Revolving lines of credit and other | 3.4 | 3.8 | |||||
5.95% Senior notes | — | 200.0 | |||||
Accounts receivable securitization facility | — | 65.0 | |||||
Other liabilities | 188.8 | 215.1 | |||||
Long-term liabilities of discontinued operations | 4.5 | 0.2 | |||||
Total liabilities | 2,551.7 | 2,453.5 | |||||
Total stockholders' equity | 1,196.0 | 1,133.0 | |||||
Total liabilities and stockholders' equity | $ | 3,747.7 | $ | 3,586.5 |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Nine Months Ended | |||||||
October 2, 2015 | October 3, 2014 | ||||||
(In millions) | |||||||
Operating activities: | |||||||
Net income | $ | 123.0 | $ | 153.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on sale of business, net of tax of $9.8 | (47.1 | ) | — | ||||
Depreciation | 17.1 | 17.4 | |||||
Amortization of intangible assets | 15.8 | 6.3 | |||||
Stock-based compensation | 10.8 | 10.3 | |||||
Accretion of debt discount | 1.2 | 0.7 | |||||
Amortization of deferred financing costs | 1.1 | 1.1 | |||||
Deferred income taxes | 4.3 | (2.8 | ) | ||||
Excess income tax benefit from employee stock plans | (0.5 | ) | (4.7 | ) | |||
Pension plan contributions | (23.3 | ) | (14.6 | ) | |||
Pension plan expenses | 8.6 | 3.4 | |||||
Changes in current assets and liabilities, net | (20.5 | ) | (98.7 | ) | |||
Other, net | 3.2 | (3.5 | ) | ||||
Net cash provided by operating activities | 93.7 | 68.6 | |||||
Investing activities: | |||||||
Proceeds from sale of business | 381.0 | — | |||||
Capital expenditures, net | (29.2 | ) | (30.5 | ) | |||
Acquisition of business, net of cash acquired | 2.2 | (418.4 | ) | ||||
Net cash provided by (used in) investing activities | 354.0 | (448.9 | ) | ||||
Financing activities: | |||||||
Proceeds from borrowings | 643.6 | 1,161.9 | |||||
Repayments of borrowings | (707.5 | ) | (1,322.6 | ) | |||
Proceeds from issuance of Notes due 2023 | 345.6 | — | |||||
Retirement of Notes due 2015 | (200.0 | ) | — | ||||
Term loan payments | (3.8 | ) | — | ||||
Excess income tax benefit from employee stock plans | 0.5 | 4.7 | |||||
Proceeds from issuance of Notes due 2021 | — | 394.0 | |||||
Proceeds from term loan | — | 200.0 | |||||
Retirement of Notes due 2014 | — | (32.3 | ) | ||||
Proceeds from stock options exercised | — | 5.9 | |||||
Deferred financing costs | — | (1.3 | ) | ||||
Other | (1.0 | ) | (1.7 | ) | |||
Net cash provided by financing activities | 77.4 | 408.6 | |||||
Increase in cash and cash equivalents | 525.1 | 28.3 | |||||
Effect of exchange rate changes on cash balances | (2.2 | ) | 2.5 | ||||
Cash and cash equivalents at beginning of period | 92.0 | 57.3 | |||||
Cash and cash equivalents at end of period | $ | 614.9 | $ | 88.1 |
ANIXTER INTERNATIONAL INC. | |||||||||||||||||||||||||||||||||
Financial Measures That Supplement GAAP (Unaudited) | |||||||||||||||||||||||||||||||||
Third Quarter 2015 Sales Growth Trends | |||||||||||||||||||||||||||||||||
Q3 2015 | Q3 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 | $ | 797.6 | $ | 17.0 | $ | — | $ | 814.6 | $ | 692.3 | $ | 128.4 | $ | 820.7 | (0.7 | )% | |||||||||||||||||
Europe | 87.6 | 9.9 | — | 97.5 | 83.3 | — | 83.3 | 16.9 | % | ||||||||||||||||||||||||
Emerging Markets | 150.2 | 12.1 | — | 162.3 | 128.3 | 0.5 | 128.8 | 26.0 | % | ||||||||||||||||||||||||
ECS | $ | 1,035.4 | $ | 39.0 | $ | — | $ | 1,074.4 | $ | 903.9 | $ | 128.9 | $ | 1,032.8 | 4.0 | % | |||||||||||||||||
Electrical and Electronic Wire and Cable | |||||||||||||||||||||||||||||||||
North America | $ | 335.6 | $ | 15.1 | $ | 21.3 | $ | 372.0 | $ | 396.5 | $ | — | $ | 396.5 | (6.2 | )% | |||||||||||||||||
Europe | 65.7 | 5.9 | 1.7 | 73.3 | 75.5 | — | 75.5 | (3.0 | )% | ||||||||||||||||||||||||
Emerging Markets | 52.5 | 3.3 | 1.9 | 57.7 | 62.1 | — | 62.1 | (7.1 | )% | ||||||||||||||||||||||||
W&C | $ | 453.8 | $ | 24.3 | $ | 24.9 | $ | 503.0 | $ | 534.1 | $ | — | $ | 534.1 | (5.8 | )% | |||||||||||||||||
Total | $ | 1,489.2 | $ | 63.3 | $ | 24.9 | $ | 1,577.4 | $ | 1,438.0 | $ | 128.9 | $ | 1,566.9 | 0.7 | % | |||||||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||||
North America | $ | 1,133.2 | $ | 32.1 | $ | 21.3 | $ | 1,186.6 | $ | 1,088.8 | $ | 128.4 | $ | 1,217.2 | (2.5 | )% | |||||||||||||||||
Europe | 153.3 | 15.8 | 1.7 | 170.8 | 158.8 | — | 158.8 | 7.5 | % | ||||||||||||||||||||||||
Emerging Markets | 202.7 | 15.4 | 1.9 | 220.0 | 190.4 | 0.5 | 190.9 | 15.2 | % | ||||||||||||||||||||||||
Total | $ | 1,489.2 | $ | 63.3 | $ | 24.9 | $ | 1,577.4 | $ | 1,438.0 | $ | 128.9 | $ | 1,566.9 | 0.7 | % | |||||||||||||||||
September 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 | $ | 2,313.2 | $ | 40.5 | $ | — | $ | 2,353.7 | $ | 1,874.3 | $ | 417.7 | $ | 2,292.0 | 2.7 | % | ||||||||||||||||
Europe | 254.1 | 32.4 | — | 286.5 | 249.6 | — | 249.6 | 14.7 | % | |||||||||||||||||||||||
Emerging Markets | 385.5 | 26.3 | — | 411.8 | 390.8 | 2.0 | 392.8 | 4.8 | % | |||||||||||||||||||||||
ECS | $ | 2,952.8 | $ | 99.2 | $ | — | $ | 3,052.0 | $ | 2,514.7 | $ | 419.7 | $ | 2,934.4 | 4.0 | % | ||||||||||||||||
Electrical and Electronic Wire and Cable | ||||||||||||||||||||||||||||||||
North America | $ | 1,019.4 | $ | 36.8 | $ | 43.0 | $ | 1,099.2 | $ | 1,100.1 | $ | — | $ | 1,100.1 | (0.1 | )% | ||||||||||||||||
Europe | 201.6 | 20.2 | 2.7 | 224.5 | 246.2 | — | 246.2 | (8.8 | )% | |||||||||||||||||||||||
Emerging Markets | 180.9 | 7.4 | 3.9 | 192.2 | 194.2 | — | 194.2 | (1.1 | )% | |||||||||||||||||||||||
W&C | $ | 1,401.9 | $ | 64.4 | $ | 49.6 | $ | 1,515.9 | $ | 1,540.5 | $ | — | $ | 1,540.5 | (1.6 | )% | ||||||||||||||||
Total | $ | 4,354.7 | $ | 163.6 | $ | 49.6 | $ | 4,567.9 | $ | 4,055.2 | $ | 419.7 | $ | 4,474.9 | 2.1 | % | ||||||||||||||||
Geographic Sales | ||||||||||||||||||||||||||||||||
North America | $ | 3,332.6 | $ | 77.3 | $ | 43.0 | $ | 3,452.9 | $ | 2,974.4 | $ | 417.7 | $ | 3,392.1 | 1.8 | % | ||||||||||||||||
Europe | 455.7 | 52.6 | 2.7 | 511.0 | 495.8 | — | 495.8 | 3.1 | % | |||||||||||||||||||||||
Emerging Markets | 566.4 | 33.7 | 3.9 | 604.0 | 585.0 | 2.0 | 587.0 | 2.9 | % | |||||||||||||||||||||||
Total | $ | 4,354.7 | $ | 163.6 | $ | 49.6 | $ | 4,567.9 | $ | 4,055.2 | $ | 419.7 | $ | 4,474.9 | 2.1 | % | ||||||||||||||||
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
Financial Measures That Supplement GAAP (Unaudited) - continued | ||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Positive (Negative) impact | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2015 | October 3, 2014 | October 2, 2015 | October 3, 2014 | |||||||||||||
Continuing operations | As Adjusted | As Adjusted | ||||||||||||||
Items impacting comparability of results: | ||||||||||||||||
Items impacting operating income: | ||||||||||||||||
Restructuring charge | $ | — | $ | — | $ | (5.3 | ) | $ | — | |||||||
Write-off of capitalized software | — | — | (3.1 | ) | — | |||||||||||
Venezuelan customer bad debt expense | — | — | (2.6 | ) | — | |||||||||||
Dilapidation provision | — | — | (1.7 | ) | — | |||||||||||
Acquisition and integration costs | (8.1 | ) | (5.7 | ) | (9.1 | ) | (5.7 | ) | ||||||||
Pension divestiture costs | — | — | (0.4 | ) | — | |||||||||||
Total of items impacting operating income | $ | (8.1 | ) | $ | (5.7 | ) | $ | (22.2 | ) | $ | (5.7 | ) | ||||
Items impacting other expenses: | ||||||||||||||||
Foreign exchange loss from the devaluation of foreign currencies | $ | — | $ | — | $ | (0.7 | ) | $ | (8.0 | ) | ||||||
Acquisition financing costs | — | (0.3 | ) | — | (0.3 | ) | ||||||||||
Total of items impacting other expenses | $ | — | $ | (0.3 | ) | $ | (0.7 | ) | $ | (8.3 | ) | |||||
Total of items impacting pre-tax income | $ | (8.1 | ) | $ | (6.0 | ) | $ | (22.9 | ) | $ | (14.0 | ) | ||||
Items impacting income taxes: | ||||||||||||||||
Tax impact of items impacting pre-tax income above | $ | 3.1 | $ | 1.0 | $ | 8.6 | $ | 3.7 | ||||||||
Primarily reversal of deferred income tax valuation allowances | — | — | — | 6.9 | ||||||||||||
Tax benefits related to closing prior tax years | — | 1.9 | — | 1.9 | ||||||||||||
Total of items impacting income taxes | $ | 3.1 | $ | 2.9 | $ | 8.6 | $ | 12.5 | ||||||||
Net income impact of these items | $ | (5.0 | ) | $ | (3.1 | ) | $ | (14.3 | ) | $ | (1.5 | ) | ||||
Diluted EPS impact of these items | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.43 | ) | $ | (0.05 | ) | ||||
GAAP to Non-GAAP Net Income and EPS Reconciliation for continuing operations: | ||||||||||||||||
Net income from continuing operations – Non-GAAP | $ | 40.4 | $ | 48.5 | $ | 105.7 | $ | 129.1 | ||||||||
Items impacting net income from continuing operations | (5.0 | ) | (3.1 | ) | (14.3 | ) | (1.5 | ) | ||||||||
Net income from continuing operations – GAAP | $ | 35.4 | $ | 45.4 | $ | 91.4 | $ | 127.6 | ||||||||
Diluted EPS – Non-GAAP | $ | 1.21 | $ | 1.46 | $ | 3.16 | $ | 3.88 | ||||||||
Diluted EPS impact of these items | (0.15 | ) | (0.10 | ) | (0.43 | ) | (0.05 | ) | ||||||||
Diluted EPS – GAAP | $ | 1.06 | $ | 1.36 | $ | 2.73 | $ | 3.83 | ||||||||
Items Impacting Comparability of Operating Income by Segment | Three Months Ended October 2, 2015 | |||||||||||||||
(in millions) | ECS | W&C | Corporate | Total | ||||||||||||
Adjusted operating income - Non-GAAP | $ | 61.8 | $ | 27.6 | $ | (3.1 | ) | $ | 86.3 | |||||||
Adjusted operating margin - Non-GAAP | 6.0 | % | 6.1 | % | nm | 5.3 | % | |||||||||
Total of items impacting operating income for the three months ended October 2, 2015 | $ | — | $ | 1.0 | $ | (9.1 | ) | $ | (8.1 | ) | ||||||
Operating income - GAAP | $ | 61.8 | $ | 28.6 | $ | (12.2 | ) | $ | 78.2 | |||||||
Operating margin - GAAP | 6.0 | % | 6.3 | % | nm | 5.3 | % | |||||||||
Items Impacting Comparability of Operating Income by Segment | Nine Months Ended October 2, 2015 | |||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Adjusted operating income - Non-GAAP | $ | 149.0 | $ | 83.8 | $ | (8.6 | ) | $ | 224.2 | |||||||
Adjusted operating margin - Non-GAAP | 5.0 | % | 6.0 | % | nm | 5.1 | % | |||||||||
Total of items impacting operating income for the nine months ended October 2, 2015 | $ | (8.7 | ) | $ | (4.0 | ) | $ | (9.5 | ) | $ | (22.2 | ) | ||||
Operating income - GAAP | $ | 140.3 | $ | 79.8 | $ | (18.1 | ) | $ | 202.0 | |||||||
Operating margin - GAAP | 4.8 | % | 5.7 | % | nm | 4.6 | % | |||||||||
nm - not meaningful |
Items Impacting Comparability of Operating Income by Segment | Three Months Ended October 3, 2014 | |||||||||||||||
(in millions) | ECS | W&C | Corporate | Total | ||||||||||||
Adjusted operating income - Non-GAAP | $ | 52.4 | $ | 38.7 | $ | (2.9 | ) | $ | 88.2 | |||||||
Adjusted operating margin - Non-GAAP | 5.8 | % | 7.2 | % | nm | 6.1 | % | |||||||||
Total of items impacting operating income for the three months ended October 3, 2014 | $ | (5.7 | ) | $ | — | $ | — | $ | (5.7 | ) | ||||||
Operating income - GAAP | $ | 46.7 | $ | 38.7 | $ | (2.9 | ) | $ | 82.5 | |||||||
Operating margin - GAAP | 5.2 | % | 7.2 | % | nm | 5.7 | % | |||||||||
Items Impacting Comparability of Operating Income by Segment | Nine Months Ended October 3, 2014 | |||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Adjusted operating income - Non-GAAP | $ | 135.5 | $ | 108.7 | $ | (8.8 | ) | $ | 235.4 | |||||||
Adjusted operating margin - Non-GAAP | 5.4 | % | 7.1 | % | nm | 5.8 | % | |||||||||
Total of items impacting operating income for the nine months ended October 3, 2014 | $ | (5.7 | ) | $ | — | $ | — | $ | (5.7 | ) | ||||||
Operating income - GAAP | $ | 129.8 | $ | 108.7 | $ | (8.8 | ) | $ | 229.7 | |||||||
Operating margin - GAAP | 5.2 | % | 7.1 | % | nm | 5.7 | % | |||||||||
nm - not meaningful |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
2015 and 2014 Effective Tax Rate – GAAP and Non-GAAP | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
As Adjusted | As Adjusted | |||||||||||||||
Income from continuing operations before taxes – GAAP | $ | 56.9 | $ | 70.2 | $ | 146.3 | $ | 186.7 | ||||||||
Income tax expense – GAAP | $ | 21.5 | $ | 24.8 | $ | 54.9 | $ | 59.1 | ||||||||
Effective income tax rate | 37.8 | % | 35.4 | % | 37.5 | % | 31.7 | % | ||||||||
Total of items impacting pre-tax income above | $ | (8.1 | ) | $ | (6.0 | ) | $ | (22.9 | ) | $ | (14.0 | ) | ||||
Total of items impacting income taxes above | $ | 3.1 | $ | 2.9 | $ | 8.6 | $ | 12.5 | ||||||||
Income from continuing operations before income taxes – Non-GAAP | $ | 65.0 | $ | 76.2 | $ | 169.2 | $ | 200.7 | ||||||||
Income tax expense – Non-GAAP | $ | 24.6 | $ | 27.7 | $ | 63.5 | $ | 71.6 | ||||||||
Adjusted effective income tax rate | 37.8 | % | 36.4 | % | 37.5 | % | 35.7 | % |
2015 EBITDA by Segment | ||||||||||||||||
Three Months Ended October 2, 2015 | ||||||||||||||||
(in millions) | ECS | W&C | Corporate | Total | ||||||||||||
Net income from continuing operations | $ | 61.8 | $ | 28.6 | $ | (55.0 | ) | $ | 35.4 | |||||||
Interest expense | — | — | 15.8 | 15.8 | ||||||||||||
Income taxes | — | — | 21.5 | 21.5 | ||||||||||||
Depreciation | 3.3 | 1.8 | 0.1 | 5.2 | ||||||||||||
Amortization of intangible assets | 3.7 | 1.3 | — | 5.0 | ||||||||||||
EBITDA | $ | 68.8 | $ | 31.7 | $ | (17.6 | ) | $ | 82.9 | |||||||
EBITDA leverage | 13.8 | % | nm | nm | nm | |||||||||||
EBITDA as a % of sales | 6.6 | % | 7.0 | % | nm | 5.6 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 5.5 | $ | 5.5 | ||||||||
Stock-based compensation | 2.2 | 1.1 | — | 3.3 | ||||||||||||
Acquisition and integration costs | — | (1.0 | ) | 9.1 | 8.1 | |||||||||||
Adjusted EBITDA | $ | 71.0 | $ | 31.8 | $ | (3.0 | ) | $ | 99.8 | |||||||
Adjusted EBITDA leverage | 9.6 | % | nm | nm | 2.4 | % | ||||||||||
Adjusted EBITDA as a % of sales | 6.9 | % | 7.0 | % | nm | 6.7 | % | |||||||||
Nine Months Ended October 2, 2015 | ||||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Net income from continuing operations | $ | 140.3 | $ | 79.8 | $ | (128.7 | ) | $ | 91.4 | |||||||
Interest expense | — | — | 42.7 | 42.7 | ||||||||||||
Income taxes | — | — | 54.9 | 54.9 | ||||||||||||
Depreciation | 10.4 | 5.0 | 0.2 | 15.6 | ||||||||||||
Amortization of intangible assets | 11.1 | 4.2 | — | 15.3 | ||||||||||||
EBITDA | $ | 161.8 | $ | 89.0 | $ | (30.9 | ) | $ | 219.9 | |||||||
EBITDA leverage | 5.0 | % | nm | nm | nm | |||||||||||
EBITDA as a % of sales | 5.5 | % | 6.4 | % | nm | 5.1 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 13.0 | $ | 13.0 | ||||||||
Stock-based compensation | 6.6 | 3.5 | 0.1 | 10.2 | ||||||||||||
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 | — | — | 9.1 | 9.1 | ||||||||||||
Pension divestiture costs | 0.3 | 0.1 | — | 0.4 | ||||||||||||
Adjusted EBITDA | $ | 177.1 | $ | 96.5 | $ | (8.3 | ) | $ | 265.3 | |||||||
Adjusted EBITDA leverage | 5.9 | % | nm | nm | 0.2 | % | ||||||||||
Adjusted EBITDA as a % of sales | 6.0 | % | 6.9 | % | nm | 6.1 | % | |||||||||
nm - not meaningful |
2014 EBITDA by Segment | ||||||||||||||||
Three Months Ended October 3, 2014 | ||||||||||||||||
(in millions) | As Adjusted | |||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Net income from continuing operations | $ | 46.7 | $ | 38.7 | $ | (40.0 | ) | $ | 45.4 | |||||||
Interest expense | — | — | 10.3 | 10.3 | ||||||||||||
Income taxes | — | — | 24.8 | 24.8 | ||||||||||||
Depreciation | 3.2 | 1.8 | — | 5.0 | ||||||||||||
Amortization of intangible assets | 0.7 | 1.4 | — | 2.1 | ||||||||||||
EBITDA | $ | 50.6 | $ | 41.9 | $ | (4.9 | ) | $ | 87.6 | |||||||
EBITDA as a % of sales | 5.6 | % | 7.9 | % | nm | 6.1 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 2.0 | $ | 2.0 | ||||||||
Stock-based compensation | 2.0 | 1.3 | — | 3.3 | ||||||||||||
Acquisition and strategic project costs | 5.7 | — | — | 5.7 | ||||||||||||
Adjusted EBITDA | $ | 58.3 | $ | 43.2 | $ | (2.9 | ) | $ | 98.6 | |||||||
Adjusted EBITDA as a % of sales | 6.5 | % | 8.1 | % | nm | 6.9 | % | |||||||||
Nine Months Ended October 3, 2014 | ||||||||||||||||
As Adjusted | ||||||||||||||||
ECS | W&C | Corporate | Total | |||||||||||||
Net income from continuing operations | $ | 129.8 | $ | 108.7 | $ | (110.9 | ) | $ | 127.6 | |||||||
Interest expense | — | — | 29.4 | 29.4 | ||||||||||||
Income taxes | — | — | 59.1 | 59.1 | ||||||||||||
Depreciation | 9.0 | 5.5 | — | 14.5 | ||||||||||||
Amortization of intangible assets | 1.1 | 4.3 | — | 5.4 | ||||||||||||
EBITDA | $ | 139.9 | $ | 118.5 | $ | (22.4 | ) | $ | 236.0 | |||||||
EBITDA as a % of sales | 5.6 | % | 7.7 | % | nm | 5.8 | % | |||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | 13.6 | $ | 13.6 | ||||||||
Stock-based compensation | 5.7 | 3.6 | — | 9.3 | ||||||||||||
Acquisition and strategic project costs | 5.7 | — | — | 5.7 | ||||||||||||
Adjusted EBITDA | $ | 151.3 | $ | 122.1 | $ | (8.8 | ) | $ | 264.6 | |||||||
Adjusted EBITDA as a % of sales | 6.0 | % | 7.9 | % | nm | 6.5 | % | |||||||||
nm - not meaningful |
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