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)) |
Emerging Growth Company | o |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 |
ANIXTER INTERNATIONAL INC. | ||
January 30, 2018 | By: | /s/ Theodore A. Dosch |
Theodore A. Dosch | ||
Executive Vice President - Finance | ||
and Chief Financial Officer |
Exhibit No. | Description |
99.1 |
![]() |
• | Record fourth quarter sales of $2.0 billion, up 6.3%, reflecting growth in all segments and geographies |
• | Strong organic growth of 4.2%, including 13% in Emerging Markets and 7% in EMEA |
• | $16.8 million favorable impact from the higher average price of copper |
• | $22.5 million favorable impact from the fluctuation in foreign currencies |
• | Debt-to-total capital ratio improved to 46.1% from 51.6% at the end of 2016 |
• | Debt-to-adjusted EBITDA ratio improved to 3.1 times from 3.5 times at the end of 2016 |
• | Weighted average cost of borrowed capital of 5.6% compares to 5.1% at the end of 2016 |
• | $667.1 million available under revolving lines of credit and secured accounts receivable and inventory facilities |
• | $35.6 million expense recorded in the fourth quarter 2017 related to the impact of tax legislation which includes the following; |
◦ | $50.0 million unfavorable transition tax on deferred foreign income, to be paid over 8 years; and |
◦ | $14.4 million favorable rate change impact of net deferred tax liability |
• | A 2018 effective tax rate in the 28.5% - 29.5% range. |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
(In millions, except per share amounts) | December 29, 2017 | December 30, 2016 | Percent Change | December 29, 2017 | December 30, 2016 | Percent Change | |||||||||||||||
Net Sales | $ | 2,013.8 | $ | 1,894.6 | 6 | % | $ | 7,927.4 | $ | 7,622.8 | 4 | % | |||||||||
Operating Income | $ | 80.4 | $ | 81.0 | (1 | )% | $ | 313.1 | $ | 285.3 | 10 | % | |||||||||
Net Income | $ | 0.4 | $ | 36.8 | (99 | )% | $ | 109.0 | $ | 121.1 | (10 | )% | |||||||||
Diluted Earnings Per Share | $ | 0.01 | $ | 1.09 | (99 | )% | $ | 3.21 | $ | 3.61 | (11 | )% | |||||||||
Diluted Weighted Shares | 34.0 | 33.8 | 1 | % | 34.0 | 33.6 | 1 | % | |||||||||||||
Ted Dosch | Lisa M. Gregory, 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 | Twelve Months Ended | ||||||||||||||
December 29, 2017 | December 30, 2016 | December 29, 2017 | December 30, 2016 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Net sales | $ | 2,013.8 | $ | 1,894.6 | $ | 7,927.4 | $ | 7,622.8 | |||||||
Cost of goods sold | 1,615.4 | 1,507.5 | 6,356.4 | 6,074.8 | |||||||||||
Gross profit | 398.4 | 387.1 | 1,571.0 | 1,548.0 | |||||||||||
Operating expenses | 318.0 | 306.1 | 1,257.9 | 1,262.7 | |||||||||||
Operating income | 80.4 | 81.0 | 313.1 | 285.3 | |||||||||||
Other expense: | |||||||||||||||
Interest expense | (19.0 | ) | (19.0 | ) | (74.7 | ) | (78.7 | ) | |||||||
Other, net | 0.1 | (3.4 | ) | (0.8 | ) | (9.1 | ) | ||||||||
Income from continuing operations before income taxes | 61.5 | 58.6 | 237.6 | 197.5 | |||||||||||
Income tax expense from continuing operations | 61.1 | 21.8 | 128.6 | 76.4 | |||||||||||
Net income from continuing operations | 0.4 | 36.8 | 109.0 | 121.1 | |||||||||||
Income (loss) from discontinued operations before income taxes | — | 0.2 | — | (0.1 | ) | ||||||||||
Loss on sale of business | — | — | — | (0.7 | ) | ||||||||||
Income tax (benefit) expense from discontinued operations | — | 0.2 | — | (0.2 | ) | ||||||||||
Net loss from discontinued operations | — | — | — | (0.6 | ) | ||||||||||
Net income | $ | 0.4 | $ | 36.8 | $ | 109.0 | $ | 120.5 | |||||||
Income (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 0.01 | $ | 1.10 | $ | 3.24 | $ | 3.63 | |||||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||
Net Income | $ | 0.01 | $ | 1.10 | $ | 3.24 | $ | 3.61 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 0.01 | $ | 1.09 | $ | 3.21 | $ | 3.61 | |||||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||
Net Income | $ | 0.01 | $ | 1.09 | $ | 3.21 | $ | 3.59 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 33.6 | 33.4 | 33.6 | 33.4 | |||||||||||
Diluted | 34.0 | 33.8 | 34.0 | 33.6 | |||||||||||
Reportable Segments | |||||||||||||||
Net sales: | |||||||||||||||
Network & Security Solutions | $ | 1,050.9 | $ | 1,040.1 | $ | 4,114.4 | $ | 4,083.8 | |||||||
Electrical & Electronic Solutions | 581.6 | 507.0 | 2,225.5 | 2,103.2 | |||||||||||
Utility Power Solutions | 381.3 | 347.5 | 1,587.5 | 1,435.8 | |||||||||||
$ | 2,013.8 | $ | 1,894.6 | $ | 7,927.4 | $ | 7,622.8 | ||||||||
Operating income: | |||||||||||||||
Network & Security Solutions | $ | 68.4 | $ | 77.2 | $ | 262.6 | $ | 275.8 | |||||||
Electrical & Electronic Solutions | 30.0 | 22.4 | 114.3 | 97.5 | |||||||||||
Utility Power Solutions | 15.8 | 14.6 | 73.1 | 56.7 | |||||||||||
Corporate | (33.8 | ) | (33.2 | ) | (136.9 | ) | (144.7 | ) | |||||||
$ | 80.4 | $ | 81.0 | $ | 313.1 | $ | 285.3 | ||||||||
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
December 29, 2017 | December 30, 2016 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 116.0 | $ | 115.1 | |||
Accounts receivable, net | 1,434.2 | 1,353.2 | |||||
Inventories | 1,238.7 | 1,178.3 | |||||
Other current assets | 44.9 | 41.9 | |||||
Total current assets | 2,833.8 | 2,688.5 | |||||
Property and equipment, net | 154.3 | 140.3 | |||||
Goodwill | 778.1 | 764.6 | |||||
Intangible assets, net | 378.8 | 415.4 | |||||
Other assets | 107.2 | 84.8 | |||||
Total assets | $ | 4,252.2 | $ | 4,093.6 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,081.6 | $ | 1,006.0 | |||
Accrued expenses | 269.2 | 257.9 | |||||
Total current liabilities | 1,350.8 | 1,263.9 | |||||
Long-term debt | 1,247.9 | 1,378.8 | |||||
Other liabilities | 194.5 | 158.7 | |||||
Total liabilities | 2,793.2 | 2,801.4 | |||||
Total stockholders' equity | 1,459.0 | 1,292.2 | |||||
Total liabilities and stockholders' equity | $ | 4,252.2 | $ | 4,093.6 |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Twelve Months Ended | |||||||
December 29, 2017 | December 30, 2016 | ||||||
(In millions) | |||||||
Operating activities: | |||||||
Net income | $ | 109.0 | $ | 120.5 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 28.2 | 27.9 | |||||
Amortization of intangible assets | 36.1 | 37.6 | |||||
Stock-based compensation | 18.1 | 16.5 | |||||
Deferred income taxes | 13.6 | 0.7 | |||||
Accretion of debt discount | 2.3 | 2.2 | |||||
Amortization of deferred financing costs | 2.2 | 2.4 | |||||
Pension plan contributions | (27.4 | ) | (29.0 | ) | |||
Pension plan expenses | 10.5 | 20.8 | |||||
Impairment of intangible assets | 5.7 | — | |||||
Impact of tax legislation | 35.6 | — | |||||
Changes in current assets and liabilities, net | (45.5 | ) | 85.8 | ||||
Other, net | (4.6 | ) | (6.3 | ) | |||
Net cash provided by operating activities | 183.8 | 279.1 | |||||
Investing activities: | |||||||
Acquisitions of businesses, net of cash acquired | — | (4.7 | ) | ||||
Capital expenditures, net | (41.1 | ) | (32.6 | ) | |||
Net cash used in investing activities | (41.1 | ) | (37.3 | ) | |||
Financing activities: | |||||||
Proceeds from borrowings | 1,843.3 | 1,136.5 | |||||
Repayments of borrowings | (1,884.0 | ) | (1,327.9 | ) | |||
Repayments of Canadian term loan | (100.2 | ) | (83.7 | ) | |||
Proceeds from stock options exercised | 5.0 | 2.4 | |||||
Other, net | (0.2 | ) | (0.6 | ) | |||
Net cash used in financing activities | (136.1 | ) | (273.3 | ) | |||
Increase (decrease) in cash and cash equivalents | 6.6 | (31.5 | ) | ||||
Effect of exchange rate changes on cash balances | (5.7 | ) | (4.7 | ) | |||
Cash and cash equivalents at beginning of period | 115.1 | 151.3 | |||||
Cash and cash equivalents at end of period | $ | 116.0 | $ | 115.1 |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) | ||||||||||||||||||||||||
Fourth Quarter 2017 Sales Growth Trends | ||||||||||||||||||||||||
Q4 2017 | Q4 2016 | |||||||||||||||||||||||
(In millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Reported | Organic Growth/ (Decline) | ||||||||||||||||||
Network & Security Solutions | ||||||||||||||||||||||||
North America | $ | 809.0 | $ | (4.4 | ) | $ | — | $ | 804.6 | $ | 818.6 | (1.7 | )% | |||||||||||
EMEA | 93.3 | (5.0 | ) | — | 88.3 | 90.7 | (2.7 | )% | ||||||||||||||||
Emerging Markets | 148.6 | (2.2 | ) | — | 146.4 | 130.8 | 11.9 | % | ||||||||||||||||
NSS | $ | 1,050.9 | $ | (11.6 | ) | $ | — | $ | 1,039.3 | $ | 1,040.1 | (0.1 | )% | |||||||||||
Electrical & Electronic Solutions | ||||||||||||||||||||||||
North America | $ | 452.3 | $ | (3.9 | ) | $ | (13.7 | ) | $ | 434.7 | $ | 405.9 | 7.1 | % | ||||||||||
EMEA | 71.3 | (4.0 | ) | (1.6 | ) | 65.7 | 53.2 | 23.5 | % | |||||||||||||||
Emerging Markets | 58.0 | (0.9 | ) | (1.1 | ) | 56.0 | 47.9 | 17.0 | % | |||||||||||||||
EES | $ | 581.6 | $ | (8.8 | ) | $ | (16.4 | ) | $ | 556.4 | $ | 507.0 | 9.8 | % | ||||||||||
Utility Power Solutions | ||||||||||||||||||||||||
North America | $ | 381.3 | $ | (2.1 | ) | $ | (0.4 | ) | $ | 378.8 | $ | 347.5 | 9.0 | % | ||||||||||
UPS | $ | 381.3 | $ | (2.1 | ) | $ | (0.4 | ) | $ | 378.8 | $ | 347.5 | 9.0 | % | ||||||||||
Total | $ | 2,013.8 | $ | (22.5 | ) | $ | (16.8 | ) | $ | 1,974.5 | $ | 1,894.6 | 4.2 | % | ||||||||||
Geographic Sales | ||||||||||||||||||||||||
North America | $ | 1,642.6 | $ | (10.4 | ) | $ | (14.1 | ) | $ | 1,618.1 | $ | 1,572.0 | 2.9 | % | ||||||||||
EMEA | 164.6 | (9.0 | ) | (1.6 | ) | 154.0 | 143.9 | 7.0 | % | |||||||||||||||
Emerging Markets | 206.6 | (3.1 | ) | (1.1 | ) | 202.4 | 178.7 | 13.3 | % | |||||||||||||||
Total | $ | 2,013.8 | $ | (22.5 | ) | $ | (16.8 | ) | $ | 1,974.5 | $ | 1,894.6 | 4.2 | % | ||||||||||
Note: There were 62 billing days in the fourth quarter of 2017 and 2016. Adjustment for billing days unnecessary. |
ANIXTER INTERNATIONAL INC. | |||||||||||||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) | |||||||||||||||||||||||||||||||
December Year-to-Date 2017 Sales Growth Trends | |||||||||||||||||||||||||||||||
YTD 2017 | YTD 2016 | ||||||||||||||||||||||||||||||
(In millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Reported | Organic Growth/ (Decline) | Adjusted 2016 for Extra Day | Adjusted Per Day Organic Growth/(Decline) | |||||||||||||||||||||||
Network & Security Solutions | |||||||||||||||||||||||||||||||
North America | $ | 3,212.6 | $ | (6.0 | ) | $ | — | $ | 3,206.6 | $ | 3,250.6 | (1.4 | )% | $ | 3,237.8 | (1.0 | )% | ||||||||||||||
EMEA | 361.6 | 0.1 | — | 361.7 | 340.7 | 6.2 | % | 339.4 | 6.6 | % | |||||||||||||||||||||
Emerging Markets | 540.2 | (0.6 | ) | — | 539.6 | 492.5 | 9.6 | % | 490.6 | 10.0 | % | ||||||||||||||||||||
NSS | $ | 4,114.4 | $ | (6.5 | ) | $ | — | $ | 4,107.9 | $ | 4,083.8 | 0.6 | % | $ | 4,067.8 | 1.0 | % | ||||||||||||||
Electrical & Electronic Solutions | |||||||||||||||||||||||||||||||
North America | $ | 1,743.9 | $ | (5.2 | ) | $ | (51.1 | ) | $ | 1,687.6 | $ | 1,698.2 | (0.6 | )% | $ | 1,691.5 | (0.2 | )% | |||||||||||||
EMEA | 264.7 | 7.6 | (9.6 | ) | 262.7 | 229.4 | 14.5 | % | 228.5 | 15.0 | % | ||||||||||||||||||||
Emerging Markets | 216.9 | 0.2 | (3.6 | ) | 213.5 | 175.6 | 21.6 | % | 174.9 | 22.1 | % | ||||||||||||||||||||
EES | $ | 2,225.5 | $ | 2.6 | $ | (64.3 | ) | $ | 2,163.8 | $ | 2,103.2 | 2.9 | % | $ | 2,094.9 | 3.3 | % | ||||||||||||||
Utility Power Solutions | |||||||||||||||||||||||||||||||
North America | $ | 1,587.5 | $ | (3.2 | ) | $ | (1.1 | ) | $ | 1,583.2 | $ | 1,435.8 | 10.3 | % | $ | 1,430.1 | 10.7 | % | |||||||||||||
UPS | $ | 1,587.5 | $ | (3.2 | ) | $ | (1.1 | ) | $ | 1,583.2 | $ | 1,435.8 | 10.3 | % | $ | 1,430.1 | 10.7 | % | |||||||||||||
Total | $ | 7,927.4 | $ | (7.1 | ) | $ | (65.4 | ) | $ | 7,854.9 | $ | 7,622.8 | 3.0 | % | $ | 7,592.8 | 3.5 | % | |||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||
North America | $ | 6,544.0 | $ | (14.4 | ) | $ | (52.2 | ) | $ | 6,477.4 | $ | 6,384.6 | 1.5 | % | $ | 6,359.4 | 1.9 | % | |||||||||||||
EMEA | 626.3 | 7.7 | (9.6 | ) | 624.4 | 570.1 | 9.5 | % | 567.9 | 10.0 | % | ||||||||||||||||||||
Emerging Markets | 757.1 | (0.4 | ) | (3.6 | ) | 753.1 | 668.1 | 12.7 | % | 665.5 | 13.2 | % | |||||||||||||||||||
Total | $ | 7,927.4 | $ | (7.1 | ) | $ | (65.4 | ) | $ | 7,854.9 | $ | 7,622.8 | 3.0 | % | $ | 7,592.8 | 3.5 | % | |||||||||||||
Note: There were 253 billing days December YTD in 2017 compared to 254 billing days December YTD in 2016. |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||
(In millions, except per share amounts) | Positive (Negative) impact | |||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 29, 2017 | December 30, 2016 | December 29, 2017 | December 30, 2016 | |||||||||||||
Continuing operations | ||||||||||||||||
Items impacting comparability of results: | ||||||||||||||||
Items impacting operating expense and operating income: | ||||||||||||||||
Amortization of intangible assets | $ | (9.0 | ) | $ | (9.0 | ) | $ | (36.1 | ) | $ | (37.6 | ) | ||||
UK pension settlement | — | — | — | (9.6 | ) | |||||||||||
Impairment of intangible assets | (5.7 | ) | — | (5.7 | ) | — | ||||||||||
Restructuring charge | — | — | — | (5.4 | ) | |||||||||||
Acquisition and integration costs | (1.5 | ) | (0.8 | ) | (2.3 | ) | (5.1 | ) | ||||||||
Latin America bad debt provision | — | — | — | (7.6 | ) | |||||||||||
Total of items impacting operating expense and operating income | $ | (16.2 | ) | $ | (9.8 | ) | $ | (44.1 | ) | $ | (65.3 | ) | ||||
Total of items impacting pre-tax income | $ | (16.2 | ) | $ | (9.8 | ) | $ | (44.1 | ) | $ | (65.3 | ) | ||||
Items impacting income taxes: | ||||||||||||||||
Tax impact of items impacting pre-tax income above | $ | 5.7 | $ | 2.2 | $ | 14.8 | $ | 18.8 | ||||||||
Transition tax on deferred foreign income | (50.0 | ) | — | (50.0 | ) | — | ||||||||||
Rate change impact of net deferred tax liability | 14.4 | — | 14.4 | — | ||||||||||||
Establishment of deferred income tax valuation allowances | — | — | — | (1.1 | ) | |||||||||||
Tax (expense) benefits related to prior year tax positions | (1.3 | ) | — | (1.3 | ) | 3.2 | ||||||||||
Total of items impacting income taxes | $ | (31.2 | ) | $ | 2.2 | $ | (22.1 | ) | $ | 20.9 | ||||||
Net income impact of these items | $ | (47.4 | ) | $ | (7.6 | ) | $ | (66.2 | ) | $ | (44.4 | ) | ||||
Diluted EPS impact of these items | $ | (1.40 | ) | $ | (0.22 | ) | $ | (1.95 | ) | $ | (1.32 | ) | ||||
U.S. GAAP to Non-GAAP Net Income and EPS Reconciliation for continuing operations: | ||||||||||||||||
Net income from continuing operations – U.S. GAAP | $ | 0.4 | $ | 36.8 | $ | 109.0 | $ | 121.1 | ||||||||
Items impacting net income from continuing operations | 47.4 | 7.6 | 66.2 | 44.4 | ||||||||||||
Net income from continuing operations – Non-GAAP | $ | 47.8 | $ | 44.4 | $ | 175.2 | $ | 165.5 | ||||||||
Diluted EPS – U.S. GAAP | $ | 0.01 | $ | 1.09 | $ | 3.21 | $ | 3.61 | ||||||||
Diluted EPS impact of these items | 1.40 | 0.22 | 1.95 | 1.32 | ||||||||||||
Diluted EPS – Non-GAAP | $ | 1.41 | $ | 1.31 | $ | 5.16 | $ | 4.93 | ||||||||
ANIXTER INTERNATIONAL INC. | ||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||||||
Items Impacting Comparability of Operating Income by Segment | Three Months Ended December 29, 2017 | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - U.S. GAAP | $ | 68.4 | $ | 30.0 | $ | 15.8 | $ | (33.8 | ) | $ | 80.4 | |||||||||
Operating margin - U.S. GAAP | 6.5 | % | 5.2 | % | 4.1 | % | nm | 4.0 | % | |||||||||||
Total of items impacting operating income | $ | 9.3 | $ | 2.0 | $ | 3.4 | $ | 1.5 | $ | 16.2 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 77.7 | $ | 32.0 | $ | 19.2 | $ | (32.3 | ) | $ | 96.6 | |||||||||
Adjusted operating margin - Non-GAAP | 7.4 | % | 5.5 | % | 5.0 | % | nm | 4.8 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Twelve Months Ended December 29, 2017 | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - U.S. GAAP | $ | 262.6 | $ | 114.3 | $ | 73.1 | $ | (136.9 | ) | $ | 313.1 | |||||||||
Operating margin - U.S. GAAP | 6.4 | % | 5.1 | % | 4.6 | % | nm | 3.9 | % | |||||||||||
Total of items impacting operating income | $ | 20.1 | $ | 7.9 | $ | 13.4 | $ | 2.7 | $ | 44.1 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 282.7 | $ | 122.2 | $ | 86.5 | $ | (134.2 | ) | $ | 357.2 | |||||||||
Adjusted operating margin - Non-GAAP | 6.9 | % | 5.5 | % | 5.4 | % | nm | 4.5 | % | |||||||||||
nm - not meaningful |
Items Impacting Comparability of Operating Income by Segment | Three Months Ended December 30, 2016 | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - U.S. GAAP | $ | 77.2 | $ | 22.4 | $ | 14.6 | $ | (33.2 | ) | $ | 81.0 | |||||||||
Operating margin - U.S. GAAP | 7.4 | % | 4.4 | % | 4.2 | % | nm | 4.3 | % | |||||||||||
Total of items impacting operating income | $ | 3.5 | $ | 2.2 | $ | 3.1 | $ | 1.0 | $ | 9.8 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 80.7 | $ | 24.6 | $ | 17.7 | $ | (32.2 | ) | $ | 90.8 | |||||||||
Adjusted operating margin - Non-GAAP | 7.7 | % | 4.8 | % | 5.1 | % | nm | 4.8 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Twelve Months Ended December 30, 2016 | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - U.S. GAAP | $ | 275.8 | $ | 97.5 | $ | 56.7 | $ | (144.7 | ) | $ | 285.3 | |||||||||
Operating margin - U.S. GAAP | 6.8 | % | 4.6 | % | 3.9 | % | nm | 3.7 | % | |||||||||||
Total of items impacting operating income | $ | 19.7 | $ | 13.5 | $ | 17.4 | $ | 14.7 | $ | 65.3 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 295.5 | $ | 111.0 | $ | 74.1 | $ | (130.0 | ) | $ | 350.6 | |||||||||
Adjusted operating margin - Non-GAAP | 7.2 | % | 5.3 | % | 5.2 | % | nm | 4.6 | % | |||||||||||
nm - not meaningful |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||
2017 and 2016 Effective Tax Rate – U.S. GAAP and Non-GAAP | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
(In millions) | December 29, 2017 | December 30, 2016 | December 29, 2017 | December 30, 2016 | ||||||||||||
Income from continuing operations before taxes – U.S. GAAP | $ | 61.5 | $ | 58.6 | $ | 237.6 | $ | 197.5 | ||||||||
Income tax expense – U.S. GAAP | $ | 61.1 | $ | 21.8 | $ | 128.6 | $ | 76.4 | ||||||||
Effective income tax rate | 99.4 | % | 37.2 | % | 54.1 | % | 38.7 | % | ||||||||
Total of items impacting pre-tax income above | $ | 16.2 | $ | 9.8 | $ | 44.1 | $ | 65.3 | ||||||||
Total of items impacting income taxes above | $ | (31.2 | ) | $ | 2.2 | $ | (22.1 | ) | $ | 20.9 | ||||||
Income from continuing operations before income taxes – Non-GAAP | $ | 77.7 | $ | 68.4 | $ | 281.7 | $ | 262.8 | ||||||||
Income tax expense – Non-GAAP | $ | 29.9 | $ | 24.0 | $ | 106.5 | $ | 97.3 | ||||||||
Adjusted effective income tax rate | 38.5 | % | 35.1 | % | 37.8 | % | 37.0 | % | ||||||||
2017 EBITDA by Segment | ||||||||||||||||||||
Three Months Ended December 29, 2017 | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 68.4 | $ | 30.0 | $ | 15.8 | $ | (113.8 | ) | $ | 0.4 | |||||||||
Interest expense | — | — | — | 19.0 | 19.0 | |||||||||||||||
Income taxes | — | — | — | 61.1 | 61.1 | |||||||||||||||
Depreciation | 0.9 | 0.7 | 0.8 | 4.3 | 6.7 | |||||||||||||||
Amortization of intangible assets | 3.6 | 2.0 | 3.4 | — | 9.0 | |||||||||||||||
EBITDA | $ | 72.9 | $ | 32.7 | $ | 20.0 | $ | (29.4 | ) | $ | 96.2 | |||||||||
EBITDA leverage | -10.2x | 2.0x | 0.6x | nm | 0.5x | |||||||||||||||
EBITDA as a % of sales | 6.9 | % | 5.6 | % | 5.3 | % | nm | 4.8 | % | |||||||||||
Foreign exchange and other non-operating (income) | $ | — | $ | — | $ | — | $ | (0.1 | ) | $ | (0.1 | ) | ||||||||
Stock-based compensation | 0.8 | 0.3 | 0.5 | 3.2 | 4.8 | |||||||||||||||
Impairment of intangible assets | 5.7 | — | — | — | 5.7 | |||||||||||||||
Acquisition and integration costs | — | — | — | 1.5 | 1.5 | |||||||||||||||
Adjusted EBITDA | $ | 79.4 | $ | 33.0 | $ | 20.5 | $ | (24.8 | ) | $ | 108.1 | |||||||||
Adjusted EBITDA leverage | -2.9x | 2.0x | 0.7x | nm | 1.0x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.6 | % | 5.7 | % | 5.4 | % | nm | 5.4 | % | |||||||||||
Twelve Months Ended December 29, 2017 | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 262.6 | $ | 114.3 | $ | 73.1 | $ | (341.0 | ) | $ | 109.0 | |||||||||
Interest expense | — | — | — | 74.7 | 74.7 | |||||||||||||||
Income taxes | — | — | — | 128.6 | 128.6 | |||||||||||||||
Depreciation | 3.1 | 2.4 | 3.9 | 18.8 | 28.2 | |||||||||||||||
Amortization of intangible assets | 14.4 | 8.4 | 13.3 | — | 36.1 | |||||||||||||||
EBITDA | $ | 280.1 | $ | 125.1 | $ | 90.3 | $ | (118.9 | ) | $ | 376.6 | |||||||||
EBITDA leverage | -5.9x | 2.6x | 1.8x | nm | 2.6x | |||||||||||||||
EBITDA as a % of sales | 6.8 | % | 5.6 | % | 5.7 | % | nm | 4.8 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 0.8 | $ | 0.8 | ||||||||||
Stock-based compensation | 2.3 | 1.3 | 1.7 | 12.8 | 18.1 | |||||||||||||||
Impairment of intangible assets | 5.7 | — | — | — | 5.7 | |||||||||||||||
Restructuring charge | — | (0.5 | ) | 0.1 | 0.4 | — | ||||||||||||||
Acquisition and integration costs | — | — | — | 2.3 | 2.3 | |||||||||||||||
Adjusted EBITDA | $ | 288.1 | $ | 125.9 | $ | 92.1 | $ | (102.6 | ) | $ | 403.5 | |||||||||
Adjusted EBITDA leverage | -5.5x | 1.7x | 1.5x | nm | 0.5x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.0 | % | 5.7 | % | 5.8 | % | nm | 5.1 | % | |||||||||||
nm - not meaningful |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||||||
2016 EBITDA by Segment | ||||||||||||||||||||
Three Months Ended December 30, 2016 | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 77.2 | $ | 22.4 | $ | 14.6 | $ | (77.4 | ) | $ | 36.8 | |||||||||
Interest expense | — | — | — | 19.0 | 19.0 | |||||||||||||||
Income taxes | — | — | — | 21.8 | 21.8 | |||||||||||||||
Depreciation | 0.7 | 0.7 | 1.1 | 4.3 | 6.8 | |||||||||||||||
Amortization of intangible assets | 3.6 | 2.2 | 3.2 | — | 9.0 | |||||||||||||||
EBITDA | $ | 81.5 | $ | 25.3 | $ | 18.9 | $ | (32.3 | ) | $ | 93.4 | |||||||||
EBITDA leverage | 3.8x | 17.2x | nm | nm | 8.2x | |||||||||||||||
EBITDA as a % of sales | 7.8 | % | 5.0 | % | 5.5 | % | nm | 4.9 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 3.4 | $ | 3.4 | ||||||||||
Stock-based compensation | 0.5 | 0.3 | 0.4 | 2.9 | 4.1 | |||||||||||||||
Restructuring charge | (0.1 | ) | — | (0.1 | ) | 0.2 | — | |||||||||||||
Acquisition and integration costs | — | — | — | 0.8 | 0.8 | |||||||||||||||
Adjusted EBITDA | $ | 81.9 | $ | 25.6 | $ | 19.2 | $ | (25.0 | ) | $ | 101.7 | |||||||||
Adjusted EBITDA leverage | 1.4x | 4.2x | nm | nm | 0.0x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.9 | % | 5.1 | % | 5.5 | % | nm | 5.4 | % | |||||||||||
Twelve Months Ended December 30, 2016 | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 275.8 | $ | 97.5 | $ | 56.7 | $ | (308.9 | ) | $ | 121.1 | |||||||||
Interest expense | — | — | — | 78.7 | 78.7 | |||||||||||||||
Income taxes | — | — | — | 76.4 | 76.4 | |||||||||||||||
Depreciation | 3.2 | 2.7 | 4.2 | 17.8 | 27.9 | |||||||||||||||
Amortization of intangible assets | 14.1 | 8.5 | 15.0 | — | 37.6 | |||||||||||||||
EBITDA | $ | 293.1 | $ | 108.7 | $ | 75.9 | $ | (136.0 | ) | $ | 341.7 | |||||||||
EBITDA leverage | 2.1x | -1.0x | 0.7x | nm | 0.7x | |||||||||||||||
EBITDA as a % of sales | 7.2 | % | 5.2 | % | 5.3 | % | nm | 4.5 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 9.1 | $ | 9.1 | ||||||||||
Stock-based compensation | 1.8 | 1.0 | 1.4 | 12.3 | 16.5 | |||||||||||||||
UK pension settlement | — | — | — | 9.6 | 9.6 | |||||||||||||||
Restructuring charge | 1.7 | 1.3 | 2.1 | 0.3 | 5.4 | |||||||||||||||
Latin America bad debt provision | 3.9 | 3.7 | — | — | 7.6 | |||||||||||||||
Acquisition and integration costs | — | — | 0.3 | 4.8 | 5.1 | |||||||||||||||
Adjusted EBITDA | $ | 300.5 | $ | 114.7 | $ | 79.7 | $ | (99.9 | ) | $ | 395.0 | |||||||||
Adjusted EBITDA leverage | 1.0x | -0.9x | 0.7x | nm | 0.3x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.4 | % | 5.5 | % | 5.5 | % | nm | 5.2 | % | |||||||||||
nm - not meaningful |
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