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 26, 2016, issued by Anixter International Inc. |
ANIXTER INTERNATIONAL INC. | ||
July 26, 2016 | 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 26, 2016, issued by Anixter International Inc. |
Exhibit 99.1 | |
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• | Diluted EPS of $0.62 and adjusted diluted EPS of $1.32 |
• | Record second quarter NSS sales of $1.0 billion |
• | Generated $149 million YTD in cash from operations, further improving liquidity |
• | $526.8 million favorable impact from the acquisition of Power Solutions |
• | $22.2 million unfavorable impact from the lower average price of copper |
• | $16.5 million unfavorable impact from the fluctuation in foreign currencies |
Earnings Impact of Adjustments to Operating Income | ||
(In millions, except per share amounts) | Three months ended July 1, 2016 | |
UK pension settlement | $9.6 | |
Amortization of intangible assets | 9.5 | |
Latin America bad debt provision | 7.6 | |
Restructuring charge | 5.6 | |
Acquisition and integration costs | 1.4 | |
Total pre-tax impact | $33.7 | |
Total after-tax impact | $23.4 | |
Adjusted Diluted EPS impact | $0.70 |
• | Debt-to-total capital ratio improved to 54.8% from 58.2% at the end of 2015 |
• | Weighted average cost of borrowed capital of 4.7% was the same as the year-ago quarter |
• | $522.9 million available under revolving lines of credit and secured accounts receivable and inventory facilities |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
(In millions, except per share amounts) | Jul 1, 2016 | Jul 3, 2015 | Percent Change | Jul 1, 2016 | Jul 3, 2015 | Percent Change | |||||||||||||||
Net Sales | $ | 1,955.7 | $ | 1,480.4 | 32 | % | $ | 3,771.9 | $ | 2,865.5 | 32 | % | |||||||||
Operating Income | $ | 56.7 | $ | 64.5 | (12 | )% | $ | 117.0 | $ | 123.8 | (6 | )% | |||||||||
Net Income | $ | 20.8 | $ | 29.5 | (30 | )% | $ | 44.0 | $ | 56.0 | (21 | )% | |||||||||
Diluted Earnings Per Share | $ | 0.62 | $ | 0.88 | (30 | )% | $ | 1.32 | $ | 1.68 | (21 | )% | |||||||||
Diluted Weighted Shares | 33.5 | 33.4 | — | % | 33.4 | 33.4 | — | % |
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 | ||||||||||||||
(In millions, except per share amounts) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | |||||||||||
Net sales | $ | 1,955.7 | $ | 1,480.4 | $ | 3,771.9 | $ | 2,865.5 | |||||||
Cost of goods sold | 1,562.3 | 1,151.5 | 3,007.7 | 2,227.3 | |||||||||||
Gross profit | 393.4 | 328.9 | 764.2 | 638.2 | |||||||||||
Operating expenses | 336.7 | 264.4 | 647.2 | 514.4 | |||||||||||
Operating income | 56.7 | 64.5 | 117.0 | 123.8 | |||||||||||
Other expense: | |||||||||||||||
Interest expense | (19.8 | ) | (12.7 | ) | (39.9 | ) | (26.9 | ) | |||||||
Other, net | (0.8 | ) | (3.5 | ) | (3.6 | ) | (7.5 | ) | |||||||
Income from continuing operations before income taxes | 36.1 | 48.3 | 73.5 | 89.4 | |||||||||||
Income tax expense from continuing operations | 15.3 | 18.8 | 29.5 | 33.4 | |||||||||||
Net income from continuing operations | 20.8 | 29.5 | 44.0 | 56.0 | |||||||||||
(Loss) income from discontinued operations before income taxes | (0.5 | ) | 46.5 | (1.2 | ) | 57.7 | |||||||||
Income tax (benefit) expense from discontinued operations | (0.2 | ) | 4.6 | (0.5 | ) | 23.2 | |||||||||
Net (loss) income from discontinued operations | (0.3 | ) | 41.9 | (0.7 | ) | 34.5 | |||||||||
Net income | $ | 20.5 | $ | 71.4 | $ | 43.3 | $ | 90.5 | |||||||
Income (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 0.62 | $ | 0.89 | $ | 1.32 | $ | 1.69 | |||||||
Discontinued operations | (0.01 | ) | 1.26 | (0.02 | ) | 1.04 | |||||||||
Net Income | $ | 0.61 | $ | 2.15 | $ | 1.30 | $ | 2.73 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 0.62 | $ | 0.88 | $ | 1.32 | $ | 1.68 | |||||||
Discontinued operations | (0.01 | ) | 1.26 | (0.03 | ) | 1.03 | |||||||||
Net Income | $ | 0.61 | $ | 2.14 | $ | 1.29 | $ | 2.71 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 33.4 | 33.2 | 33.3 | 33.2 | |||||||||||
Diluted | 33.5 | 33.4 | 33.4 | 33.4 | |||||||||||
Reportable Segments | |||||||||||||||
Net sales: | (As revised*) | (As revised*) | |||||||||||||
Network & Security Solutions | $ | 1,044.7 | $ | 1,011.7 | $ | 1,993.8 | $ | 1,939.7 | |||||||
Electrical & Electronic Solutions | 555.1 | 449.5 | 1,061.1 | 890.3 | |||||||||||
Utility Power Solutions | 355.9 | 19.2 | 717.0 | 35.5 | |||||||||||
$ | 1,955.7 | $ | 1,480.4 | $ | 3,771.9 | $ | 2,865.5 | ||||||||
Operating income: | |||||||||||||||
Network & Security Solutions | $ | 64.9 | $ | 66.6 | $ | 123.7 | $ | 122.3 | |||||||
Electrical & Electronic Solutions | 23.9 | 33.6 | 46.4 | 69.4 | |||||||||||
Utility Power Solutions | 12.0 | 2.4 | 26.3 | 4.4 | |||||||||||
Corporate | (44.1 | ) | (38.1 | ) | (79.4 | ) | (72.3 | ) | |||||||
$ | 56.7 | $ | 64.5 | $ | 117.0 | $ | 123.8 | ||||||||
* Revised due to change in composition of our reportable segments. |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
July 1, 2016 | January 1, 2016 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 133.2 | $ | 151.3 | |||
Accounts receivable, net | 1,350.5 | 1,326.4 | |||||
Inventories | 1,186.5 | 1,182.6 | |||||
Other current assets | 50.9 | 67.5 | |||||
Total current assets | 2,721.1 | 2,727.8 | |||||
Property and equipment, net | 140.6 | 131.8 | |||||
Goodwill | 767.0 | 756.5 | |||||
Intangible assets, net | 437.0 | 453.8 | |||||
Other assets | 72.9 | 72.1 | |||||
Total assets | $ | 4,138.6 | $ | 4,142.0 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,001.8 | $ | 905.6 | |||
Accrued expenses | 217.2 | 250.6 | |||||
Total current liabilities | 1,219.0 | 1,156.2 | |||||
5.50% Senior notes due 2023 | 346.0 | 345.8 | |||||
5.125% Senior notes due 2021 | 395.3 | 394.9 | |||||
5.625% Senior notes due 2019 | 347.2 | 346.8 | |||||
Canadian term loan | 162.1 | 172.9 | |||||
Revolving lines of credit | 270.0 | 390.1 | |||||
Other | 2.2 | 2.6 | |||||
Unamortized debt issuance costs | (8.4 | ) | (10.2 | ) | |||
Other liabilities | 155.4 | 163.5 | |||||
Total liabilities | 2,888.8 | 2,962.6 | |||||
Total stockholders' equity | 1,249.8 | 1,179.4 | |||||
Total liabilities and stockholders' equity | $ | 4,138.6 | $ | 4,142.0 |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Six Months Ended | |||||||
July 1, 2016 | July 3, 2015 | ||||||
(In millions) | |||||||
Operating activities: | |||||||
Net income | $ | 43.3 | $ | 90.5 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on sale of business, net of tax expense of $10.0 in 2015 | — | (49.3 | ) | ||||
Depreciation | 14.0 | 11.9 | |||||
Amortization of intangible assets | 19.2 | 10.7 | |||||
Stock-based compensation | 8.4 | 7.4 | |||||
Deferred income taxes | 1.4 | — | |||||
Accretion of debt discount | 1.1 | 0.8 | |||||
Amortization of deferred financing costs | 1.0 | 0.7 | |||||
Pension plan contributions | (10.5 | ) | (12.1 | ) | |||
Pension plan expenses | 15.2 | 5.9 | |||||
Excess income tax benefit from employee stock plans | (0.2 | ) | (0.5 | ) | |||
Changes in current assets and liabilities, net | 62.4 | (30.5 | ) | ||||
Other, net | (5.9 | ) | 3.8 | ||||
Net cash provided by operating activities | 149.4 | 39.3 | |||||
Investing activities: | |||||||
Capital expenditures, net | (16.4 | ) | (22.1 | ) | |||
Proceeds from sale of business | — | 358.0 | |||||
Other, net | (4.7 | ) | 2.2 | ||||
Net cash (used in) provided by investing activities | (21.1 | ) | 338.1 | ||||
Financing activities: | |||||||
Proceeds from borrowings | 376.7 | 508.8 | |||||
Repayments of borrowings | (496.7 | ) | (573.8 | ) | |||
Repayments of Canadian term loan | (23.1 | ) | — | ||||
Retirement of Notes due 2015 | — | (200.0 | ) | ||||
Repayments of term loan | — | (2.5 | ) | ||||
Excess income tax benefit from employee stock plans | 0.2 | 0.5 | |||||
Other, net | (0.6 | ) | (1.0 | ) | |||
Net cash used in financing activities | (143.5 | ) | (268.0 | ) | |||
(Decrease) increase in cash and cash equivalents | (15.2 | ) | 109.4 | ||||
Effect of exchange rate changes on cash balances | (2.9 | ) | 4.8 | ||||
Cash and cash equivalents at beginning of period | 151.3 | 92.0 | |||||
Cash and cash equivalents at end of period | $ | 133.2 | $ | 206.2 |
ANIXTER INTERNATIONAL INC. | |||||||||||||||||||||||||||||||||
Financial Measures That Supplement GAAP (Unaudited) | |||||||||||||||||||||||||||||||||
Second Quarter 2016 Sales Growth Trends | |||||||||||||||||||||||||||||||||
Q2 2016 | Q2 2015 | ||||||||||||||||||||||||||||||||
(In millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Revised* | Acquisition Impact | Pro Forma | Organic Growth/ (Decline) | |||||||||||||||||||||||||
Network & Security Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 838.7 | $ | 3.2 | $ | — | $ | 841.9 | $ | 801.9 | $ | — | $ | 801.9 | 5.0 | % | |||||||||||||||||
Europe | 85.8 | 1.1 | — | 86.9 | 83.8 | — | 83.8 | 3.6 | % | ||||||||||||||||||||||||
Emerging Markets | 120.2 | 3.7 | — | 123.9 | 126.0 | — | 126.0 | (1.8 | )% | ||||||||||||||||||||||||
NSS | $ | 1,044.7 | $ | 8.0 | $ | — | $ | 1,052.7 | $ | 1,011.7 | $ | — | $ | 1,011.7 | 4.0 | % | |||||||||||||||||
Electrical & Electronic Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 454.7 | $ | 2.5 | $ | 18.1 | $ | 475.3 | $ | 315.4 | $ | 145.1 | $ | 460.5 | 3.2 | % | |||||||||||||||||
Europe | 59.2 | 2.9 | 1.5 | 63.6 | 63.6 | — | 63.6 | (0.2 | )% | ||||||||||||||||||||||||
Emerging Markets | 41.2 | 1.3 | 2.2 | 44.7 | 70.5 | — | 70.5 | (36.6 | )% | ||||||||||||||||||||||||
EES | $ | 555.1 | $ | 6.7 | $ | 21.8 | $ | 583.6 | $ | 449.5 | $ | 145.1 | $ | 594.6 | (1.9 | )% | |||||||||||||||||
Utility Power Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 355.9 | $ | 1.8 | $ | 0.4 | $ | 358.1 | $ | 19.2 | $ | 381.7 | $ | 400.9 | (10.7 | )% | |||||||||||||||||
UPS | $ | 355.9 | $ | 1.8 | $ | 0.4 | $ | 358.1 | $ | 19.2 | $ | 381.7 | $ | 400.9 | (10.7 | )% | |||||||||||||||||
Total | $ | 1,955.7 | $ | 16.5 | $ | 22.2 | $ | 1,994.4 | $ | 1,480.4 | $ | 526.8 | $ | 2,007.2 | (0.6 | )% | |||||||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||||
North America | $ | 1,649.3 | $ | 7.5 | $ | 18.5 | $ | 1,675.3 | $ | 1,136.5 | $ | 526.8 | $ | 1,663.3 | 0.7 | % | |||||||||||||||||
Europe | 145.0 | 4.0 | 1.5 | 150.5 | 147.4 | — | 147.4 | 2.0 | % | ||||||||||||||||||||||||
Emerging Markets | 161.4 | 5.0 | 2.2 | 168.6 | 196.5 | — | 196.5 | (14.3 | )% | ||||||||||||||||||||||||
Total | $ | 1,955.7 | $ | 16.5 | $ | 22.2 | $ | 1,994.4 | $ | 1,480.4 | $ | 526.8 | $ | 2,007.2 | (0.6 | )% |
June Year-to-Date 2016 Sales Growth Trends | |||||||||||||||||||||||||||||||||
YTD 2016 | YTD 2015 | ||||||||||||||||||||||||||||||||
(In millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Revised* | Acquisition Impact | Pro Forma | Organic Growth/ (Decline) | |||||||||||||||||||||||||
Network & Security Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 1,586.7 | $ | 11.0 | $ | — | $ | 1,597.7 | $ | 1,528.5 | $ | — | $ | 1,528.5 | 4.5 | % | |||||||||||||||||
Europe | 167.2 | 3.5 | — | 170.7 | 168.0 | — | 168.0 | 1.6 | % | ||||||||||||||||||||||||
Emerging Markets | 239.9 | 10.0 | — | 249.9 | 243.2 | — | 243.2 | 2.7 | % | ||||||||||||||||||||||||
NSS | $ | 1,993.8 | $ | 24.5 | $ | — | $ | 2,018.3 | $ | 1,939.7 | $ | — | $ | 1,939.7 | 4.1 | % | |||||||||||||||||
Electrical & Electronic Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 859.5 | $ | 7.9 | $ | 35.3 | $ | 902.7 | $ | 627.5 | $ | 281.3 | $ | 908.8 | (0.7 | )% | |||||||||||||||||
Europe | 116.9 | 5.9 | 2.7 | 125.5 | 134.4 | — | 134.4 | (6.7 | )% | ||||||||||||||||||||||||
Emerging Markets | 84.7 | 2.9 | 3.8 | 91.4 | 128.4 | — | 128.4 | (28.9 | )% | ||||||||||||||||||||||||
EES | $ | 1,061.1 | $ | 16.7 | $ | 41.8 | $ | 1,119.6 | $ | 890.3 | $ | 281.3 | $ | 1,171.6 | (4.4 | )% | |||||||||||||||||
Utility Power Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 717.0 | $ | 7.0 | $ | 0.8 | $ | 724.8 | $ | 35.5 | $ | 728.1 | $ | 763.6 | (5.1 | )% | |||||||||||||||||
UPS | $ | 717.0 | $ | 7.0 | $ | 0.8 | $ | 724.8 | $ | 35.5 | $ | 728.1 | $ | 763.6 | (5.1 | )% | |||||||||||||||||
Total | $ | 3,771.9 | $ | 48.2 | $ | 42.6 | $ | 3,862.7 | $ | 2,865.5 | $ | 1,009.4 | $ | 3,874.9 | (0.3 | )% | |||||||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||||
North America | $ | 3,163.2 | $ | 25.9 | $ | 36.1 | $ | 3,225.2 | $ | 2,191.5 | $ | 1,009.4 | $ | 3,200.9 | 0.8 | % | |||||||||||||||||
Europe | 284.1 | 9.4 | 2.7 | 296.2 | 302.4 | — | 302.4 | (2.1 | )% | ||||||||||||||||||||||||
Emerging Markets | 324.6 | 12.9 | 3.8 | 341.3 | 371.6 | — | 371.6 | (8.2 | )% | ||||||||||||||||||||||||
Total | $ | 3,771.9 | $ | 48.2 | $ | 42.6 | $ | 3,862.7 | $ | 2,865.5 | $ | 1,009.4 | $ | 3,874.9 | (0.3 | )% |
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 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | |||||||||||||
(As revised*) | (As revised*) | |||||||||||||||
Continuing operations | ||||||||||||||||
Items impacting comparability of results: | ||||||||||||||||
Items impacting operating income: | ||||||||||||||||
Amortization of intangible assets | $ | (9.5 | ) | $ | (5.2 | ) | $ | (19.2 | ) | $ | (10.3 | ) | ||||
UK pension settlement | (9.6 | ) | (0.4 | ) | (9.6 | ) | (0.4 | ) | ||||||||
Restructuring charge | (5.6 | ) | (5.3 | ) | (5.6 | ) | (5.3 | ) | ||||||||
Acquisition and integration costs | (1.4 | ) | (1.0 | ) | (3.6 | ) | (1.0 | ) | ||||||||
Write-off of capitalized software | — | (3.1 | ) | — | (3.1 | ) | ||||||||||
Latin America bad debt provision | (7.6 | ) | (2.6 | ) | (7.6 | ) | (2.6 | ) | ||||||||
Dilapidation provision | — | (1.7 | ) | — | (1.7 | ) | ||||||||||
Total of items impacting operating income | $ | (33.7 | ) | $ | (19.3 | ) | $ | (45.6 | ) | $ | (24.4 | ) | ||||
Items impacting other expenses: | ||||||||||||||||
Foreign exchange loss from the devaluation of foreign currencies | — | — | — | (0.7 | ) | |||||||||||
Total of items impacting other expenses | $ | — | $ | — | $ | — | $ | (0.7 | ) | |||||||
Total of items impacting pre-tax income | $ | (33.7 | ) | $ | (19.3 | ) | $ | (45.6 | ) | $ | (25.1 | ) | ||||
Items impacting income taxes: | ||||||||||||||||
Tax impact of items impacting pre-tax income above | $ | 10.3 | $ | 7.2 | $ | 14.8 | $ | 9.3 | ||||||||
Total of items impacting income taxes | $ | 10.3 | $ | 7.2 | $ | 14.8 | $ | 9.3 | ||||||||
Net income impact of these items | $ | (23.4 | ) | $ | (12.1 | ) | $ | (30.8 | ) | $ | (15.8 | ) | ||||
Diluted EPS impact of these items | $ | (0.70 | ) | $ | (0.36 | ) | $ | (0.92 | ) | $ | (0.47 | ) | ||||
GAAP to Non-GAAP Net Income and EPS Reconciliation for continuing operations: | ||||||||||||||||
Net income from continuing operations – GAAP | $ | 20.8 | $ | 29.5 | $ | 44.0 | $ | 56.0 | ||||||||
Items impacting net income from continuing operations | 23.4 | 12.1 | 30.8 | 15.8 | ||||||||||||
Net income from continuing operations – Non-GAAP | $ | 44.2 | $ | 41.6 | $ | 74.8 | $ | 71.8 | ||||||||
Diluted EPS – GAAP | $ | 0.62 | $ | 0.88 | $ | 1.32 | $ | 1.68 | ||||||||
Diluted EPS impact of these items | 0.70 | 0.36 | 0.92 | 0.47 | ||||||||||||
Diluted EPS – Non-GAAP | $ | 1.32 | $ | 1.24 | $ | 2.24 | $ | 2.15 | ||||||||
* Revised due to change in composition of items impacting comparability of results to include amortization of intangible assets. |
Items Impacting Comparability of Operating Income by Segment | Three Months Ended July 1, 2016 | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - GAAP | $ | 64.9 | $ | 23.9 | $ | 12.0 | $ | (44.1 | ) | $ | 56.7 | |||||||||
Operating margin - GAAP | 6.2 | % | 4.3 | % | 3.4 | % | nm | 2.9 | % | |||||||||||
Total of items impacting operating income | $ | 9.4 | $ | 7.1 | $ | 6.1 | $ | 11.1 | $ | 33.7 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 74.3 | $ | 31.0 | $ | 18.1 | $ | (33.0 | ) | $ | 90.4 | |||||||||
Adjusted operating margin - Non-GAAP | 7.1 | % | 5.6 | % | 5.1 | % | nm | 4.6 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Six Months Ended July 1, 2016 | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - GAAP | $ | 123.7 | $ | 46.4 | $ | 26.3 | $ | (79.4 | ) | $ | 117.0 | |||||||||
Operating margin - GAAP | 6.2 | % | 4.4 | % | 3.7 | % | nm | 3.1 | % | |||||||||||
Total of items impacting operating income | $ | 13.0 | $ | 9.3 | $ | 10.3 | $ | 13.0 | $ | 45.6 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 136.7 | $ | 55.7 | $ | 36.6 | $ | (66.4 | ) | $ | 162.6 | |||||||||
Adjusted operating margin - Non-GAAP | 6.9 | % | 5.2 | % | 5.1 | % | nm | 4.3 | % | |||||||||||
nm - not meaningful |
Items Impacting Comparability of Operating Income by Segment | Three Months Ended July 3, 2015 (As revised*) | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - GAAP | $ | 66.6 | $ | 33.6 | $ | 2.4 | $ | (38.1 | ) | $ | 64.5 | |||||||||
Operating margin - GAAP | 6.6 | % | 7.5 | % | 12.5 | % | nm | 4.4 | % | |||||||||||
Total of items impacting operating income | $ | 8.1 | $ | 3.3 | $ | — | $ | 7.9 | $ | 19.3 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 74.7 | $ | 36.9 | $ | 2.4 | $ | (30.2 | ) | $ | 83.8 | |||||||||
Adjusted operating margin - Non-GAAP | 7.4 | % | 8.2 | % | 12.5 | % | nm | 5.7 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Six Months Ended July 3, 2015 (As revised*) | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - GAAP | $ | 122.3 | $ | 69.4 | $ | 4.4 | $ | (72.3 | ) | $ | 123.8 | |||||||||
Operating margin - GAAP | 6.3 | % | 7.8 | % | 12.5 | % | nm | 4.3 | % | |||||||||||
Total of items impacting operating income | $ | 11.8 | $ | 4.7 | $ | — | $ | 7.9 | $ | 24.4 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 134.1 | $ | 74.1 | $ | 4.4 | $ | (64.4 | ) | $ | 148.2 | |||||||||
Adjusted operating margin - Non-GAAP | 6.9 | % | 8.3 | % | 12.5 | % | nm | 5.2 | % | |||||||||||
nm - not meaningful | ||||||||||||||||||||
* Revised due to change in composition of our reportable segments. |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
2016 and 2015 Effective Tax Rate – GAAP and Non-GAAP | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | |||||||||||||
(In millions) | ||||||||||||||||
(As revised*) | (As revised*) | |||||||||||||||
Income from continuing operations before taxes – GAAP | $ | 36.1 | $ | 48.3 | $ | 73.5 | $ | 89.4 | ||||||||
Income tax expense – GAAP | $ | 15.3 | $ | 18.8 | $ | 29.5 | $ | 33.4 | ||||||||
Effective income tax rate | 42.4 | % | 38.8 | % | 40.1 | % | 37.3 | % | ||||||||
Total of items impacting pre-tax income above | $ | 33.7 | $ | 19.3 | $ | 45.6 | $ | 25.1 | ||||||||
Total of items impacting income taxes above | $ | 10.3 | $ | 7.2 | $ | 14.8 | $ | 9.3 | ||||||||
Income from continuing operations before income taxes – Non-GAAP | $ | 69.8 | $ | 67.6 | $ | 119.1 | $ | 114.5 | ||||||||
Income tax expense – Non-GAAP | $ | 25.6 | $ | 26.0 | $ | 44.3 | $ | 42.7 | ||||||||
Adjusted effective income tax rate | 37.2 | % | 37.3 | % | 37.2 | % | 37.3 | % | ||||||||
* Revised due to change in composition of items impacting comparability of results to include amortization of intangible assets. |
2016 EBITDA by Segment | ||||||||||||||||||||
Three Months Ended July 1, 2016 | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 64.9 | $ | 23.9 | $ | 12.0 | $ | (80.0 | ) | $ | 20.8 | |||||||||
Interest expense | — | — | — | 19.8 | 19.8 | |||||||||||||||
Income taxes | — | — | — | 15.3 | 15.3 | |||||||||||||||
Depreciation | 0.8 | 1.0 | 0.7 | 4.5 | 7.0 | |||||||||||||||
Amortization of intangible assets | 3.6 | 2.0 | 3.9 | — | 9.5 | |||||||||||||||
EBITDA | $ | 69.3 | $ | 26.9 | $ | 16.6 | $ | (40.4 | ) | $ | 72.4 | |||||||||
EBITDA leverage | -0.8x | -1.0x | 0.3x | nm | nm | |||||||||||||||
EBITDA as a % of sales | 6.6 | % | 4.8 | % | 4.7 | % | nm | 3.7 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 0.8 | $ | 0.8 | ||||||||||
Stock-based compensation | 0.6 | 0.3 | 0.5 | 3.0 | 4.4 | |||||||||||||||
UK pension settlement | — | — | — | 9.6 | 9.6 | |||||||||||||||
Restructuring charge | 1.9 | 1.4 | 2.2 | 0.1 | 5.6 | |||||||||||||||
Latin America bad debt provision | 3.9 | 3.7 | — | — | 7.6 | |||||||||||||||
Acquisition and integration costs | — | — | — | 1.4 | 1.4 | |||||||||||||||
Adjusted EBITDA | $ | 75.7 | $ | 32.3 | $ | 19.3 | $ | (25.5 | ) | $ | 101.8 | |||||||||
Adjusted EBITDA leverage | -0.2x | -0.6x | 0.4x | nm | 0.3x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.2 | % | 5.8 | % | 5.4 | % | nm | 5.2 | % | |||||||||||
Six Months Ended July 1, 2016 | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 123.7 | $ | 46.4 | $ | 26.3 | $ | (152.4 | ) | $ | 44.0 | |||||||||
Interest expense | — | — | — | 39.9 | 39.9 | |||||||||||||||
Income taxes | — | — | — | 29.5 | 29.5 | |||||||||||||||
Depreciation | 1.7 | 1.5 | 2.1 | 8.7 | 14.0 | |||||||||||||||
Amortization of intangible assets | 7.2 | 4.2 | 7.8 | — | 19.2 | |||||||||||||||
EBITDA | $ | 132.6 | $ | 52.1 | $ | 36.2 | $ | (74.3 | ) | $ | 146.6 | |||||||||
EBITDA leverage | 0.3x | -1.5x | 0.4x | nm | 0.2x | |||||||||||||||
EBITDA as a % of sales | 6.7 | % | 4.9 | % | 5.0 | % | nm | 3.9 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 3.6 | $ | 3.6 | ||||||||||
Stock-based compensation | 1.1 | 0.5 | 0.7 | 6.2 | 8.5 | |||||||||||||||
UK pension settlement | — | — | — | 9.6 | 9.6 | |||||||||||||||
Restructuring charge | 1.9 | 1.4 | 2.2 | 0.1 | 5.6 | |||||||||||||||
Latin America bad debt provision | 3.9 | 3.7 | — | — | 7.6 | |||||||||||||||
Acquisition and integration costs | — | — | 0.3 | 3.3 | 3.6 | |||||||||||||||
Adjusted EBITDA | $ | 139.5 | $ | 57.7 | $ | 39.4 | $ | (51.5 | ) | $ | 185.1 | |||||||||
Adjusted EBITDA leverage | 0.7x | -1.2x | 0.4x | nm | 0.4x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.0 | % | 5.4 | % | 5.5 | % | nm | 4.9 | % | |||||||||||
nm - not meaningful |
2015 EBITDA by Segment | ||||||||||||||||||||
Three Months Ended July 3, 2015 (As revised*) | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 66.6 | $ | 33.6 | $ | 2.4 | $ | (73.1 | ) | $ | 29.5 | |||||||||
Interest expense | — | — | — | 12.7 | 12.7 | |||||||||||||||
Income taxes | — | — | — | 18.8 | 18.8 | |||||||||||||||
Depreciation | 0.9 | 0.3 | — | 4.1 | 5.3 | |||||||||||||||
Amortization of intangible assets | 3.7 | 1.5 | — | — | 5.2 | |||||||||||||||
EBITDA | $ | 71.2 | $ | 35.4 | $ | 2.4 | $ | (37.5 | ) | $ | 71.5 | |||||||||
EBITDA leverage | .5x | nm | -.5x | nm | -1.2x | |||||||||||||||
EBITDA as a % of sales | 7.0 | % | 7.9 | % | 12.8 | % | nm | 4.8 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 3.5 | $ | 3.5 | ||||||||||
Stock-based compensation | 0.6 | 0.4 | — | 2.6 | 3.6 | |||||||||||||||
UK pension settlement | — | — | — | 0.4 | 0.4 | |||||||||||||||
Restructuring charge | 1.8 | 1.8 | — | 1.7 | 5.3 | |||||||||||||||
Acquisition and integration costs | — | — | — | 1.0 | 1.0 | |||||||||||||||
Write-off of capitalized software | — | — | — | 3.1 | 3.1 | |||||||||||||||
Latin America bad debt provision | 2.6 | — | — | — | 2.6 | |||||||||||||||
Dilapidation provision | — | — | — | 1.7 | 1.7 | |||||||||||||||
Adjusted EBITDA | $ | 76.2 | $ | 37.6 | $ | 2.4 | $ | (23.5 | ) | $ | 92.7 | |||||||||
Adjusted EBITDA leverage | .9x | nm | -.5x | nm | .7x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.5 | % | 8.3 | % | 12.8 | % | nm | 6.3 | % | |||||||||||
Six Months Ended July 3, 2015 (As revised*) | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 122.3 | $ | 69.4 | $ | 4.4 | $ | (140.1 | ) | $ | 56.0 | |||||||||
Interest expense | — | — | — | 26.9 | 26.9 | |||||||||||||||
Income taxes | — | — | — | 33.4 | 33.4 | |||||||||||||||
Depreciation | 1.8 | 0.5 | — | 8.1 | 10.4 | |||||||||||||||
Amortization of intangible assets | 7.4 | 2.9 | — | — | 10.3 | |||||||||||||||
EBITDA | $ | 131.5 | $ | 72.8 | $ | 4.4 | $ | (71.7 | ) | $ | 137.0 | |||||||||
EBITDA leverage | .4x | nm | -6.2x | nm | -.8x | |||||||||||||||
EBITDA as a % of sales | 6.8 | % | 8.2 | % | 12.5 | % | nm | 4.8 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 7.5 | $ | 7.5 | ||||||||||
Stock-based compensation | 1.0 | 0.7 | — | 5.2 | 6.9 | |||||||||||||||
UK pension settlement | — | — | — | 0.4 | 0.4 | |||||||||||||||
Restructuring charge | 1.8 | 1.8 | — | 1.7 | 5.3 | |||||||||||||||
Acquisition and integration costs | — | — | — | 1.0 | 1.0 | |||||||||||||||
Write-off of capitalized software | — | — | — | 3.1 | 3.1 | |||||||||||||||
Latin America bad debt provision | 2.6 | — | — | — | 2.6 | |||||||||||||||
Dilapidation provision | — | — | — | 1.7 | 1.7 | |||||||||||||||
Adjusted EBITDA | $ | 136.9 | $ | 75.3 | $ | 4.4 | $ | (51.1 | ) | $ | 165.5 | |||||||||
Adjusted EBITDA leverage | .6x | nm | -6.2x | nm | 0x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.1 | % | 8.4 | % | 12.5 | % | nm | 5.8 | % | |||||||||||
nm - not meaningful | ||||||||||||||||||||
* Revised due to change in composition of our reportable segments. |
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