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 25, 2016, issued by Anixter International Inc. |
ANIXTER INTERNATIONAL INC. | ||
October 25, 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 October 25, 2016, issued by Anixter International Inc. |
Exhibit 99.1 | |
• | Awarded $750 million, 5-year contract serving a large utility customer |
• | Diluted EPS of $1.20 and adjusted diluted EPS of $1.38, up 6% versus prior year |
• | Generated $238 million YTD in cash from operations, further improving liquidity |
• | $533.5 million favorable impact from the acquisition of Power Solutions |
• | $7.7 million unfavorable impact from the lower average price of copper |
• | $12.6 million unfavorable impact from the fluctuation in foreign currencies |
• | Debt-to-total capital ratio improved to 52.7% from 58.2% at the end of 2015 |
• | Weighted average cost of borrowed capital of 4.7% compares to 5.3% in the prior year quarter |
• | $580.0 million available under revolving lines of credit and secured accounts receivable and inventory facilities |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In millions, except per share amounts) | Sep 30, 2016 | Oct 2, 2015 | Percent Change | Sep 30, 2016 | Oct 2, 2015 | Percent Change | |||||||||||||||
Net Sales | $ | 1,956.3 | $ | 1,489.2 | 31 | % | $ | 5,728.2 | $ | 4,354.7 | 32 | % | |||||||||
Operating Income | $ | 87.3 | $ | 78.2 | 12 | % | $ | 204.3 | $ | 202.0 | 1 | % | |||||||||
Net Income | $ | 40.3 | $ | 35.4 | 14 | % | $ | 84.3 | $ | 91.4 | (8 | )% | |||||||||
Diluted Earnings Per Share | $ | 1.20 | $ | 1.06 | 13 | % | $ | 2.52 | $ | 2.73 | (8 | )% | |||||||||
Diluted Weighted Shares | 33.6 | 33.4 | 1 | % | 33.5 | 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 | Nine Months Ended | ||||||||||||||
(In millions, except per share amounts) | September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | |||||||||||
Net sales | $ | 1,956.3 | $ | 1,489.2 | $ | 5,728.2 | $ | 4,354.7 | |||||||
Cost of goods sold | 1,559.6 | 1,158.3 | 4,567.3 | 3,385.6 | |||||||||||
Gross profit | 396.7 | 330.9 | 1,160.9 | 969.1 | |||||||||||
Operating expenses | 309.4 | 252.7 | 956.6 | 767.1 | |||||||||||
Operating income | 87.3 | 78.2 | 204.3 | 202.0 | |||||||||||
Other expense: | |||||||||||||||
Interest expense | (19.8 | ) | (15.8 | ) | (59.7 | ) | (42.7 | ) | |||||||
Other, net | (2.1 | ) | (5.5 | ) | (5.7 | ) | (13.0 | ) | |||||||
Income from continuing operations before income taxes | 65.4 | 56.9 | 138.9 | 146.3 | |||||||||||
Income tax expense from continuing operations | 25.1 | 21.5 | 54.6 | 54.9 | |||||||||||
Net income from continuing operations | 40.3 | 35.4 | 84.3 | 91.4 | |||||||||||
Income (loss) from discontinued operations before income taxes | 0.2 | (3.1 | ) | (1.0 | ) | 54.6 | |||||||||
Income tax expense (benefit) from discontinued operations | 0.1 | (0.2 | ) | (0.4 | ) | 23.0 | |||||||||
Net income (loss) from discontinued operations | 0.1 | (2.9 | ) | (0.6 | ) | 31.6 | |||||||||
Net income | $ | 40.4 | $ | 32.5 | $ | 83.7 | $ | 123.0 | |||||||
Income (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 1.21 | $ | 1.06 | $ | 2.53 | $ | 2.75 | |||||||
Discontinued operations | — | (0.09 | ) | (0.02 | ) | 0.95 | |||||||||
Net Income | $ | 1.21 | $ | 0.97 | $ | 2.51 | $ | 3.70 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 1.20 | $ | 1.06 | $ | 2.52 | $ | 2.73 | |||||||
Discontinued operations | 0.01 | (0.09 | ) | (0.02 | ) | 0.95 | |||||||||
Net Income | $ | 1.21 | $ | 0.97 | $ | 2.50 | $ | 3.68 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 33.4 | 33.3 | 33.4 | 33.2 | |||||||||||
Diluted | 33.6 | 33.4 | 33.5 | 33.4 | |||||||||||
Reportable Segments | |||||||||||||||
Net sales: | (As revised*) | (As revised*) | |||||||||||||
Network & Security Solutions | $ | 1,049.9 | $ | 1,046.9 | $ | 3,043.7 | $ | 2,986.6 | |||||||
Electrical & Electronic Solutions | 535.1 | 423.6 | 1,596.2 | 1,313.9 | |||||||||||
Utility Power Solutions | 371.3 | 18.7 | 1,088.3 | 54.2 | |||||||||||
$ | 1,956.3 | $ | 1,489.2 | $ | 5,728.2 | $ | 4,354.7 | ||||||||
Operating income: | |||||||||||||||
Network & Security Solutions | $ | 74.9 | $ | 74.1 | $ | 198.6 | $ | 196.4 | |||||||
Electrical & Electronic Solutions | 28.7 | 32.5 | 75.1 | 101.9 | |||||||||||
Utility Power Solutions | 15.8 | 2.7 | 42.1 | 7.1 | |||||||||||
Corporate | (32.1 | ) | (31.1 | ) | (111.5 | ) | (103.4 | ) | |||||||
$ | 87.3 | $ | 78.2 | $ | 204.3 | $ | 202.0 | ||||||||
* Revised due to change in composition of our reportable segments in the first quarter of 2016. |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
September 30, 2016 | January 1, 2016 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 125.1 | $ | 151.3 | |||
Accounts receivable, net | 1,393.5 | 1,326.4 | |||||
Inventories | 1,184.4 | 1,182.6 | |||||
Other current assets | 48.8 | 67.5 | |||||
Total current assets | 2,751.8 | 2,727.8 | |||||
Property and equipment, net | 140.8 | 131.8 | |||||
Goodwill | 769.6 | 756.5 | |||||
Intangible assets, net | 426.4 | 453.8 | |||||
Other assets | 73.2 | 72.1 | |||||
Total assets | $ | 4,161.8 | $ | 4,142.0 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,044.6 | $ | 905.6 | |||
Accrued expenses | 253.7 | 250.6 | |||||
Total current liabilities | 1,298.3 | 1,156.2 | |||||
5.50% Senior notes due 2023 | 346.2 | 345.8 | |||||
5.125% Senior notes due 2021 | 395.5 | 394.9 | |||||
5.625% Senior notes due 2019 | 347.4 | 346.8 | |||||
Canadian term loan | 123.8 | 172.9 | |||||
Revolving lines of credit | 221.0 | 390.1 | |||||
Other | 2.1 | 2.6 | |||||
Unamortized debt issuance costs | (7.5 | ) | (10.2 | ) | |||
Other liabilities | 151.1 | 163.5 | |||||
Total liabilities | 2,877.9 | 2,962.6 | |||||
Total stockholders' equity | 1,283.9 | 1,179.4 | |||||
Total liabilities and stockholders' equity | $ | 4,161.8 | $ | 4,142.0 |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Nine Months Ended | |||||||
September 30, 2016 | October 2, 2015 | ||||||
(In millions) | |||||||
Operating activities: | |||||||
Net income | $ | 83.7 | $ | 123.0 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on sale of business, net of tax expense of $9.8 in 2015 | — | (47.1 | ) | ||||
Depreciation | 21.1 | 17.1 | |||||
Amortization of intangible assets | 28.6 | 15.8 | |||||
Stock-based compensation | 12.4 | 10.8 | |||||
Deferred income taxes | 3.0 | 4.3 | |||||
Accretion of debt discount | 1.6 | 1.2 | |||||
Amortization of deferred financing costs | 1.8 | 1.1 | |||||
Pension plan contributions | (16.8 | ) | (23.3 | ) | |||
Pension plan expenses | 18.1 | 8.6 | |||||
Excess income tax benefit from employee stock plans | (0.2 | ) | (0.5 | ) | |||
Changes in current assets and liabilities, net | 93.4 | (20.5 | ) | ||||
Other, net | (8.3 | ) | 3.2 | ||||
Net cash provided by operating activities | 238.4 | 93.7 | |||||
Investing activities: | |||||||
Capital expenditures, net | (24.9 | ) | (29.2 | ) | |||
Proceeds from sale of business | — | 381.0 | |||||
Other, net | (4.7 | ) | 2.2 | ||||
Net cash (used in) provided by investing activities | (29.6 | ) | 354.0 | ||||
Financing activities: | |||||||
Proceeds from borrowings | 710.2 | 643.6 | |||||
Repayments of borrowings | (879.2 | ) | (707.5 | ) | |||
Proceeds from issuance of Notes due 2023 | — | 345.6 | |||||
Repayments of Canadian term loan | (58.5 | ) | — | ||||
Retirement of Notes due 2015 | — | (200.0 | ) | ||||
Repayments of term loan | — | (3.8 | ) | ||||
Proceeds from stock options exercised | 0.2 | — | |||||
Excess income tax benefit from employee stock plans | 0.2 | 0.5 | |||||
Other, net | (0.6 | ) | (1.0 | ) | |||
Net cash (used in) provided by financing activities | (227.7 | ) | 77.4 | ||||
(Decrease) increase in cash and cash equivalents | (18.9 | ) | 525.1 | ||||
Effect of exchange rate changes on cash balances | (7.3 | ) | (2.2 | ) | |||
Cash and cash equivalents at beginning of period | 151.3 | 92.0 | |||||
Cash and cash equivalents at end of period | $ | 125.1 | $ | 614.9 |
ANIXTER INTERNATIONAL INC. | |||||||||||||||||||||||||||||||||
Financial Measures That Supplement GAAP (Unaudited) | |||||||||||||||||||||||||||||||||
Third Quarter 2016 Sales Growth Trends | |||||||||||||||||||||||||||||||||
Q3 2016 | Q3 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 | $ | 845.3 | $ | — | $ | — | $ | 845.3 | $ | 808.5 | $ | — | $ | 808.5 | 4.5 | % | |||||||||||||||||
Europe | 82.8 | 3.0 | — | 85.8 | 87.9 | — | 87.9 | (2.3 | )% | ||||||||||||||||||||||||
Emerging Markets | 121.8 | 1.4 | — | 123.2 | 150.5 | — | 150.5 | (18.1 | )% | ||||||||||||||||||||||||
NSS | $ | 1,049.9 | $ | 4.4 | $ | — | $ | 1,054.3 | $ | 1,046.9 | $ | — | $ | 1,046.9 | 0.7 | % | |||||||||||||||||
Electrical & Electronic Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 432.8 | $ | (0.1 | ) | $ | 6.4 | $ | 439.1 | $ | 305.8 | $ | 145.1 | $ | 450.9 | (2.6 | )% | ||||||||||||||||
Europe | 59.3 | 7.2 | 0.7 | 67.2 | 65.3 | — | 65.3 | 2.9 | % | ||||||||||||||||||||||||
Emerging Markets | 43.0 | 1.1 | 0.5 | 44.6 | 52.5 | — | 52.5 | (14.8 | )% | ||||||||||||||||||||||||
EES | $ | 535.1 | $ | 8.2 | $ | 7.6 | $ | 550.9 | $ | 423.6 | $ | 145.1 | $ | 568.7 | (3.1 | )% | |||||||||||||||||
Utility Power Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 371.3 | $ | — | $ | 0.1 | $ | 371.4 | $ | 18.7 | $ | 388.4 | $ | 407.1 | (8.8 | )% | |||||||||||||||||
UPS | $ | 371.3 | $ | — | $ | 0.1 | $ | 371.4 | $ | 18.7 | $ | 388.4 | $ | 407.1 | (8.8 | )% | |||||||||||||||||
Total | $ | 1,956.3 | $ | 12.6 | $ | 7.7 | $ | 1,976.6 | $ | 1,489.2 | $ | 533.5 | $ | 2,022.7 | (2.3 | )% | |||||||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||||
North America | $ | 1,649.4 | $ | (0.1 | ) | $ | 6.5 | $ | 1,655.8 | $ | 1,133.0 | $ | 533.5 | $ | 1,666.5 | (0.7 | )% | ||||||||||||||||
Europe | 142.1 | 10.2 | 0.7 | 153.0 | 153.2 | — | 153.2 | (0.1 | )% | ||||||||||||||||||||||||
Emerging Markets | 164.8 | 2.5 | 0.5 | 167.8 | 203.0 | — | 203.0 | (17.3 | )% | ||||||||||||||||||||||||
Total | $ | 1,956.3 | $ | 12.6 | $ | 7.7 | $ | 1,976.6 | $ | 1,489.2 | $ | 533.5 | $ | 2,022.7 | (2.3 | )% | |||||||||||||||||
Organic sales per day | 31.6 | ||||||||||||||||||||||||||||||||
Pro forma sales (adjusted by one billing day) | $ | 1,991.1 | |||||||||||||||||||||||||||||||
Adjusted Organic sales per day decline | (0.7 | )% |
September 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 | $ | 2,432.0 | $ | 11.0 | $ | — | $ | 2,443.0 | $ | 2,337.0 | $ | — | $ | 2,337.0 | 4.5 | % | |||||||||||||||||
Europe | 250.0 | 6.5 | — | 256.5 | 255.9 | — | 255.9 | 0.2 | % | ||||||||||||||||||||||||
Emerging Markets | 361.7 | 11.4 | — | 373.1 | 393.7 | — | 393.7 | (5.2 | )% | ||||||||||||||||||||||||
NSS | $ | 3,043.7 | $ | 28.9 | $ | — | $ | 3,072.6 | $ | 2,986.6 | $ | — | $ | 2,986.6 | 2.9 | % | |||||||||||||||||
Electrical & Electronic Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 1,292.3 | $ | 7.8 | $ | 41.7 | $ | 1,341.8 | $ | 933.3 | $ | 426.4 | $ | 1,359.7 | (1.3 | )% | |||||||||||||||||
Europe | 176.2 | 13.1 | 3.4 | 192.7 | 199.7 | — | 199.7 | (3.5 | )% | ||||||||||||||||||||||||
Emerging Markets | 127.7 | 4.0 | 4.3 | 136.0 | 180.9 | — | 180.9 | (24.8 | )% | ||||||||||||||||||||||||
EES | $ | 1,596.2 | $ | 24.9 | $ | 49.4 | $ | 1,670.5 | $ | 1,313.9 | $ | 426.4 | $ | 1,740.3 | (4.0 | )% | |||||||||||||||||
Utility Power Solutions | |||||||||||||||||||||||||||||||||
North America | $ | 1,088.3 | $ | 7.0 | $ | 0.9 | $ | 1,096.2 | $ | 54.2 | $ | 1,116.5 | $ | 1,170.7 | (6.4 | )% | |||||||||||||||||
UPS | $ | 1,088.3 | $ | 7.0 | $ | 0.9 | $ | 1,096.2 | $ | 54.2 | $ | 1,116.5 | $ | 1,170.7 | (6.4 | )% | |||||||||||||||||
Total | $ | 5,728.2 | $ | 60.8 | $ | 50.3 | $ | 5,839.3 | $ | 4,354.7 | $ | 1,542.9 | $ | 5,897.6 | (1.0 | )% | |||||||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||||
North America | $ | 4,812.6 | $ | 25.8 | $ | 42.6 | $ | 4,881.0 | $ | 3,324.5 | $ | 1,542.9 | $ | 4,867.4 | 0.3 | % | |||||||||||||||||
Europe | 426.2 | 19.6 | 3.4 | 449.2 | 455.6 | — | 455.6 | (1.4 | )% | ||||||||||||||||||||||||
Emerging Markets | 489.4 | 15.4 | 4.3 | 509.1 | 574.6 | — | 574.6 | (11.4 | )% | ||||||||||||||||||||||||
Total | $ | 5,728.2 | $ | 60.8 | $ | 50.3 | $ | 5,839.3 | $ | 4,354.7 | $ | 1,542.9 | $ | 5,897.6 | (1.0 | )% |
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 | |||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | |||||||||||||
(As revised*) | (As revised*) | |||||||||||||||
Continuing operations | ||||||||||||||||
Items impacting comparability of results: | ||||||||||||||||
Items impacting operating expense and operating income: | ||||||||||||||||
Amortization of intangible assets | $ | (9.4 | ) | $ | (5.0 | ) | $ | (28.6 | ) | $ | (15.3 | ) | ||||
UK pension settlement | — | — | (9.6 | ) | (0.4 | ) | ||||||||||
Restructuring charge | 0.2 | — | (5.4 | ) | (5.3 | ) | ||||||||||
Acquisition and integration costs | (0.7 | ) | (8.1 | ) | (4.3 | ) | (9.1 | ) | ||||||||
Write-off of capitalized software | — | — | — | (3.1 | ) | |||||||||||
Latin America bad debt provision | — | — | (7.6 | ) | (2.6 | ) | ||||||||||
Dilapidation provision | — | — | — | (1.7 | ) | |||||||||||
Total of items impacting operating expense and operating income | $ | (9.9 | ) | $ | (13.1 | ) | $ | (55.5 | ) | $ | (37.5 | ) | ||||
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 | $ | (9.9 | ) | $ | (13.1 | ) | $ | (55.5 | ) | $ | (38.2 | ) | ||||
Items impacting income taxes: | ||||||||||||||||
Tax impact of items impacting pre-tax income above | $ | 1.8 | $ | 4.9 | $ | 16.6 | $ | 14.3 | ||||||||
Tax benefits related to prior year tax positions | 2.1 | — | 2.1 | — | ||||||||||||
Total of items impacting income taxes | $ | 3.9 | $ | 4.9 | $ | 18.7 | $ | 14.3 | ||||||||
Net income impact of these items | $ | (6.0 | ) | $ | (8.2 | ) | $ | (36.8 | ) | $ | (23.9 | ) | ||||
Diluted EPS impact of these items | $ | (0.18 | ) | $ | (0.24 | ) | $ | (1.10 | ) | $ | (0.72 | ) | ||||
GAAP to Non-GAAP Net Income and EPS Reconciliation for continuing operations: | ||||||||||||||||
Net income from continuing operations – GAAP | $ | 40.3 | $ | 35.4 | $ | 84.3 | $ | 91.4 | ||||||||
Items impacting net income from continuing operations | 6.0 | 8.2 | 36.8 | 23.9 | ||||||||||||
Net income from continuing operations – Non-GAAP | $ | 46.3 | $ | 43.6 | $ | 121.1 | $ | 115.3 | ||||||||
Diluted EPS – GAAP | $ | 1.20 | $ | 1.06 | $ | 2.52 | $ | 2.73 | ||||||||
Diluted EPS impact of these items | 0.18 | 0.24 | 1.10 | 0.72 | ||||||||||||
Diluted EPS – Non-GAAP | $ | 1.38 | $ | 1.30 | $ | 3.62 | $ | 3.45 | ||||||||
* 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 September 30, 2016 | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - GAAP | $ | 74.9 | $ | 28.7 | $ | 15.8 | $ | (32.1 | ) | $ | 87.3 | |||||||||
Operating margin - GAAP | 7.1 | % | 5.4 | % | 4.3 | % | nm | 4.5 | % | |||||||||||
Total of items impacting operating income | $ | 3.2 | $ | 2.0 | $ | 4.0 | $ | 0.7 | $ | 9.9 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 78.1 | $ | 30.7 | $ | 19.8 | $ | (31.4 | ) | $ | 97.2 | |||||||||
Adjusted operating margin - Non-GAAP | 7.4 | % | 5.7 | % | 5.3 | % | nm | 5.0 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Nine Months Ended September 30, 2016 | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - GAAP | $ | 198.6 | $ | 75.1 | $ | 42.1 | $ | (111.5 | ) | $ | 204.3 | |||||||||
Operating margin - GAAP | 6.5 | % | 4.7 | % | 3.9 | % | nm | 3.6 | % | |||||||||||
Total of items impacting operating income | $ | 16.2 | $ | 11.3 | $ | 14.3 | $ | 13.7 | $ | 55.5 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 214.8 | $ | 86.4 | $ | 56.4 | $ | (97.8 | ) | $ | 259.8 | |||||||||
Adjusted operating margin - Non-GAAP | 7.1 | % | 5.4 | % | 5.2 | % | nm | 4.5 | % | |||||||||||
nm - not meaningful |
Items Impacting Comparability of Operating Income by Segment | Three Months Ended October 2, 2015 (As revised*) | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - GAAP | $ | 74.1 | $ | 32.5 | $ | 2.7 | $ | (31.1 | ) | $ | 78.2 | |||||||||
Operating margin - GAAP | 7.1 | % | 7.7 | % | 14.4 | % | nm | 5.3 | % | |||||||||||
Total of items impacting operating income | $ | 3.7 | $ | 1.3 | $ | — | $ | 8.1 | $ | 13.1 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 77.8 | $ | 33.8 | $ | 2.7 | $ | (23.0 | ) | $ | 91.3 | |||||||||
Adjusted operating margin - Non-GAAP | 7.4 | % | 8.0 | % | 14.4 | % | nm | 6.1 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Nine Months Ended October 2, 2015 (As revised*) | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - GAAP | $ | 196.4 | $ | 101.9 | $ | 7.1 | $ | (103.4 | ) | $ | 202.0 | |||||||||
Operating margin - GAAP | 6.6 | % | 7.8 | % | 13.2 | % | nm | 4.6 | % | |||||||||||
Total of items impacting operating income | $ | 15.5 | $ | 6.0 | $ | — | $ | 16.0 | $ | 37.5 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 211.9 | $ | 107.9 | $ | 7.1 | $ | (87.4 | ) | $ | 239.5 | |||||||||
Adjusted operating margin - Non-GAAP | 7.1 | % | 8.2 | % | 13.2 | % | nm | 5.5 | % | |||||||||||
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 | Nine Months Ended | |||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | |||||||||||||
(In millions) | ||||||||||||||||
(As revised*) | (As revised*) | |||||||||||||||
Income from continuing operations before taxes – GAAP | $ | 65.4 | $ | 56.9 | $ | 138.9 | $ | 146.3 | ||||||||
Income tax expense – GAAP | $ | 25.1 | $ | 21.5 | $ | 54.6 | $ | 54.9 | ||||||||
Effective income tax rate | 38.4 | % | 37.8 | % | 39.3 | % | 37.5 | % | ||||||||
Total of items impacting pre-tax income above | $ | 9.9 | $ | 13.1 | $ | 55.5 | $ | 38.2 | ||||||||
Total of items impacting income taxes above | $ | 3.9 | $ | 4.9 | $ | 18.7 | $ | 14.3 | ||||||||
Income from continuing operations before income taxes – Non-GAAP | $ | 75.3 | $ | 70.0 | $ | 194.4 | $ | 184.5 | ||||||||
Income tax expense – Non-GAAP | $ | 29.0 | $ | 26.4 | $ | 73.3 | $ | 69.2 | ||||||||
Adjusted effective income tax rate | 38.5 | % | 37.8 | % | 37.7 | % | 37.5 | % | ||||||||
* 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 September 30, 2016 | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 74.9 | $ | 28.7 | $ | 15.8 | $ | (79.1 | ) | $ | 40.3 | |||||||||
Interest expense | — | — | — | 19.8 | 19.8 | |||||||||||||||
Income taxes | — | — | — | 25.1 | 25.1 | |||||||||||||||
Depreciation | 0.8 | 0.5 | 1.0 | 4.8 | 7.1 | |||||||||||||||
Amortization of intangible assets | 3.3 | 2.1 | 4.0 | — | 9.4 | |||||||||||||||
EBITDA | $ | 79.0 | $ | 31.3 | $ | 20.8 | $ | (29.4 | ) | $ | 101.7 | |||||||||
EBITDA leverage | 1.8x | -0.3x | 0.4x | nm | 0.7x | |||||||||||||||
EBITDA as a % of sales | 7.5 | % | 5.8 | % | 5.6 | % | nm | 5.2 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 2.1 | $ | 2.1 | ||||||||||
Stock-based compensation | 0.2 | 0.2 | 0.3 | 3.2 | 3.9 | |||||||||||||||
UK pension settlement | — | — | — | — | — | |||||||||||||||
Restructuring charge | (0.1 | ) | (0.1 | ) | — | — | (0.2 | ) | ||||||||||||
Latin America bad debt provision | — | — | — | — | — | |||||||||||||||
Acquisition and integration costs | — | — | — | 0.7 | 0.7 | |||||||||||||||
Adjusted EBITDA | $ | 79.1 | $ | 31.4 | $ | 21.1 | $ | (23.4 | ) | $ | 108.2 | |||||||||
Adjusted EBITDA leverage | -0.2x | -0.3x | 0.4x | nm | 0.3x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.5 | % | 5.9 | % | 5.7 | % | nm | 5.5 | % | |||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 198.6 | $ | 75.1 | $ | 42.1 | $ | (231.5 | ) | $ | 84.3 | |||||||||
Interest expense | — | — | — | 59.7 | 59.7 | |||||||||||||||
Income taxes | — | — | — | 54.6 | 54.6 | |||||||||||||||
Depreciation | 2.5 | 2.0 | 3.1 | 13.5 | 21.1 | |||||||||||||||
Amortization of intangible assets | 10.5 | 6.3 | 11.8 | — | 28.6 | |||||||||||||||
EBITDA | $ | 211.6 | $ | 83.4 | $ | 57.0 | $ | (103.7 | ) | $ | 248.3 | |||||||||
EBITDA leverage | nm | nm | 0.4x | nm | 1.5x | |||||||||||||||
EBITDA as a % of sales | 7.0 | % | 5.2 | % | 5.2 | % | nm | 4.3 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 5.7 | $ | 5.7 | ||||||||||
Stock-based compensation | 1.3 | 0.7 | 1.0 | 9.4 | 12.4 | |||||||||||||||
UK pension settlement | — | — | — | 9.6 | 9.6 | |||||||||||||||
Restructuring charge | 1.8 | 1.3 | 2.2 | 0.1 | 5.4 | |||||||||||||||
Latin America bad debt provision | 3.9 | 3.7 | — | — | 7.6 | |||||||||||||||
Acquisition and integration costs | — | — | 0.3 | 4.0 | 4.3 | |||||||||||||||
Adjusted EBITDA | $ | 218.6 | $ | 89.1 | $ | 60.5 | $ | (74.9 | ) | $ | 293.3 | |||||||||
Adjusted EBITDA leverage | nm | nm | 0.5x | nm | 1.2x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.2 | % | 5.6 | % | 5.6 | % | nm | 5.1 | % | |||||||||||
nm - not meaningful |
2015 EBITDA by Segment | ||||||||||||||||||||
Three Months Ended October 2, 2015 (As revised*) | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 74.1 | $ | 32.5 | $ | 2.7 | $ | (73.9 | ) | $ | 35.4 | |||||||||
Interest expense | — | — | — | 15.8 | 15.8 | |||||||||||||||
Income taxes | — | — | — | 21.5 | 21.5 | |||||||||||||||
Depreciation | 0.9 | 0.2 | — | 4.1 | 5.2 | |||||||||||||||
Amortization of intangible assets | 3.7 | 1.3 | — | — | 5.0 | |||||||||||||||
EBITDA | $ | 78.7 | $ | 34.0 | $ | 2.7 | $ | (32.5 | ) | $ | 82.9 | |||||||||
EBITDA leverage | .7x | nm | nm | nm | -1.5x | |||||||||||||||
EBITDA as a % of sales | 7.5 | % | 8.0 | % | 14.5 | % | nm | 5.6 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 5.5 | $ | 5.5 | ||||||||||
Stock-based compensation | 0.4 | 0.3 | — | 2.6 | 3.3 | |||||||||||||||
Acquisition and integration costs | — | — | — | 8.1 | 8.1 | |||||||||||||||
Adjusted EBITDA | $ | 79.1 | $ | 34.3 | $ | 2.7 | $ | (16.3 | ) | $ | 99.8 | |||||||||
Adjusted EBITDA leverage | .1x | nm | nm | nm | .0x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.6 | % | 8.1 | % | 14.5 | % | nm | 6.7 | % | |||||||||||
Nine Months Ended October 2, 2015 (As revised*) | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 196.4 | $ | 101.9 | $ | 7.1 | $ | (214.0 | ) | $ | 91.4 | |||||||||
Interest expense | — | — | — | 42.7 | 42.7 | |||||||||||||||
Income taxes | — | — | — | 54.9 | 54.9 | |||||||||||||||
Depreciation | 2.7 | 0.7 | — | 12.2 | 15.6 | |||||||||||||||
Amortization of intangible assets | 11.1 | 4.2 | — | — | 15.3 | |||||||||||||||
EBITDA | $ | 210.2 | $ | 106.8 | $ | 7.1 | $ | (104.2 | ) | $ | 219.9 | |||||||||
EBITDA leverage | .5x | nm | -9.7x | nm | -.9x | |||||||||||||||
EBITDA as a % of sales | 7.0 | % | 8.1 | % | 13.2 | % | nm | 5.1 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 13.0 | $ | 13.0 | ||||||||||
Stock-based compensation | 1.4 | 1.0 | — | 7.8 | 10.2 | |||||||||||||||
UK pension settlement | — | — | — | 0.4 | 0.4 | |||||||||||||||
Restructuring charge | 1.8 | 1.8 | — | 1.7 | 5.3 | |||||||||||||||
Acquisition and integration costs | — | — | — | 9.1 | 9.1 | |||||||||||||||
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 | $ | 216.0 | $ | 109.6 | $ | 7.1 | $ | (67.4 | ) | $ | 265.3 | |||||||||
Adjusted EBITDA leverage | .5x | nm | -9.7x | nm | .0x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.2 | % | 8.3 | % | 13.2 | % | nm | 6.1 | % | |||||||||||
nm - not meaningful | ||||||||||||||||||||
* Revised due to change in composition of our reportable segments. |
*'$]RA]WA0:82M1"4)*W%$)0VD74I1-@
MD#RDT%ZWMMM6W-E8. L_ZI^6N1D"DW2I\LGAWAL>JFI!7ME(0YO'#-N)"VU2
M0%(4 01H5S!JT26?WCN%C+Y: PZPU%2](BI2B,PE09*BC1K"=7L]MZ#