0001104659-17-027150.txt : 20170428 0001104659-17-027150.hdr.sgml : 20170428 20170428060126 ACCESSION NUMBER: 0001104659-17-027150 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170428 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170428 DATE AS OF CHANGE: 20170428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WATTS WATER TECHNOLOGIES INC CENTRAL INDEX KEY: 0000795403 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FABRICATED METAL PRODUCTS [3490] IRS NUMBER: 042916536 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11499 FILM NUMBER: 17791507 BUSINESS ADDRESS: STREET 1: 815 CHESTNUT ST CITY: NORTH ANDOVER STATE: MA ZIP: 01845 BUSINESS PHONE: 9786881811 MAIL ADDRESS: STREET 1: 815 CHESTNUT STREET CITY: NORTH ANDOVER STATE: MA ZIP: 01845 FORMER COMPANY: FORMER CONFORMED NAME: WATTS INDUSTRIES INC DATE OF NAME CHANGE: 19920703 8-K 1 a17-12046_18k.htm 8-K

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 28, 2017

 


 

WATTS WATER TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in its Charter)

 

DELAWARE

 

001-11499

 

04-2916536

(State or Other Jurisdiction

 

(Commission File Number)

 

(IRS Employer

of Incorporation)

 

 

 

Identification No.)

 

815 Chestnut Street, North Andover, Massachusetts 01845

(Address of Principal Executive Offices) (Zip Code)

 

(978) 688-1811

(Registrant’s telephone number, including area code)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 2.02.                                        Results of Operations and Financial Condition.

 

On April 28, 2017, Watts Water Technologies, Inc. (the “Company”) announced that it began reporting the results of Watts Industries Middle East FZE, an indirect, wholly owned subsidiary, within the Company’s former Asia-Pacific segment, effective as of January 1, 2017.  These results had previously been reported within the Company’s former Europe, Middle East and Africa segment (“EMEA”). The Company now refers to its three geographic segments as Americas, Europe, and Asia-Pacific, Middle East and Africa (“APMEA”).  This change does not represent a change in the Company’s reportable segments and represents only a change to composition of its segments.

 

Exhibit 99.1 attached hereto contains a retrospective revision of the quarterly, year-to-date, and annual operating results by operating segment of the Company for 2016 and the annual operating results by operating segment for 2015 and is incorporated herein by reference. Exhibit 99.1 is unaudited and is being furnished by the Company as of the date hereof as supplementary information to investors about the reclassification of the results of Watts Industries Middle East FZE to the Company’s Asia-Pacific, Middle East and Africa segment previously recorded within the Europe segment.

 

In Exhibit 99.1 to this Current Report on form 8-K, we refer to non-GAAP financial measures  and provide a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in our consolidated financial statements prepared in accordance with GAAP. We believe that these financial measures are appropriate to enhance an overall understanding of our historical financial performance and future prospects. Adjusted operating income and adjusted operating margins eliminate certain expenses incurred in the periods presented that relate primarily to our global restructuring programs, deployment costs, acquisition related costs, gains on acquisition and disposition,  the related income tax impacts on these items and other tax adjustments. Management then utilizes these adjusted financial measures to assess the run-rate of the Company’s operations against those of comparable periods.  For these reasons, management believes these non-GAAP financial measures can be useful to investors, potential investors and others. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.

 

The information in Item 2.02 of this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01.                                        Financial Statements and Exhibits

 

(d) Exhibits.                               See Exhibit Index attached hereto.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Date: April 28, 2017

WATTS WATER TECHNOLOGIES, INC.

 

 

 

 

By:

/s/ Todd A. Trapp

 

 

Todd A. Trapp

 

 

Chief Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit No.

 

Title

 

 

 

99.1

 

Supplementary Financial Information

 

4


EX-99.1 2 a17-12046_1ex99d1.htm EX-99.1

Exhibit 99.1

 

WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES

RETROSPECTIVE REVISION

OF SEGMENT INFORMATION FOR 2016 AND 2015

(Amounts in millions)

(Unaudited)

 

Net Sales

 

 

 

For the Quarter Ended

 

Year Ended

 

 

 

April 3,
2016

 

July 3,
2016

 

October 2,
2016

 

December 31,
2016

 

December 31,
2016

 

December 31,
2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

222.3

 

$

239.5

 

$

215.8

 

$

223.3

 

$

900.9

 

$

978.5

 

Europe

 

108.3

 

114.3

 

107.0

 

$

101.7

 

431.3

 

436.0

 

APMEA

 

13.6

 

17.3

 

18.3

 

$

17.0

 

66.2

 

53.2

 

Total

 

$

344.2

 

$

371.1

 

$

341.1

 

$

342.0

 

$

1,398.4

 

$

1,467.7

 

 

GAAP Operating Income (Loss)

 

 

 

For the Quarter Ended

 

Year Ended

 

 

 

April 3,
2016

 

July 3,
2016

 

October 2,
2016

 

December 31,
2016

 

December 31,
2016

 

December 31,
2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

28.1

 

$

35.4

 

$

32.2

 

$

31.4

 

$

127.1

 

$

109.9

 

Europe

 

9.8

 

10.2

 

12.3

 

$

7.7

 

40.0

 

(99.6

)

APMEA

 

1.7

 

9.8

 

1.6

 

$

2.0

 

15.1

 

0.5

 

Corporate

 

(8.4

)

(9.7

)

(9.6

)

$

(9.5

)

(37.2

)

(100.9

)

Total

 

$

31.2

 

$

45.7

 

$

36.5

 

$

31.6

 

$

145.0

 

$

(90.1

)

 

Adjusted Operating Income (Loss)

 

 

 

For the Quarter Ended

 

Year Ended

 

 

 

April 3,
2016

 

July 3,
2016

 

October 2,
2016

 

December 31,
2016

 

December 31,
2016

 

December 31,
2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

33.0

 

$

39.5

 

$

36.3

 

$

34.2

 

$

143.0

 

$

135.7

 

Europe

 

10.2

 

12.8

 

12.7

 

$

8.9

 

44.6

 

40.0

 

APMEA

 

2.4

 

1.6

 

2.1

 

$

2.0

 

8.1

 

6.5

 

Corporate

 

(8.3

)

(9.8

)

(9.7

)

$

(7.9

)

(35.7

)

(33.8

)

Total

 

$

37.3

 

$

44.1

 

$

41.4

 

$

37.2

 

$

160.0

 

$

148.4

 

 

Note: The tables contains a retrospective revision of the quarterly, year-to-date, and annual operating results by operating segment of the Company for 2016 and the annual operating results by operating segment for 2015 to reflect the change in composition of reportable segments moving Watts Middle East FZE out of Europe and into APMEA.  Note the four quarters may not sum to full year due to rounding.

 



 

RECONCILIATION OF GAAP “AS REPORTED” TO THE “ADJUSTED” NON-GAAP

EXCLUDING THE EFFECT OF ADJUSTMENTS FOR SPECIAL ITEMS

(Amounts in millions)

(Unaudited)

 

 

 

First Quarter Ended

 

Second Quarter Ended

 

 

 

April 3, 2016

 

July 3, 2016

 

 

 

Americas

 

Europe

 

APMEA

 

Corporate

 

Total

 

Americas

 

Europe

 

APMEA

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

222.3

 

108.3

 

13.6

 

 

344.2

 

$

239.5

 

114.3

 

17.3

 

 

371.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) - as reported

 

$

28.1

 

9.8

 

1.7

 

(8.4

)

31.2

 

$

35.4

 

10.2

 

9.8

 

(9.7

)

45.7

 

Operating margin %

 

12.6

%

9.0

%

12.5

%

 

 

9.1

%

14.8

%

8.9

%

56.6

%

 

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for special items

 

$

4.9

 

0.4

 

0.7

 

0.1

 

6.1

 

$

4.1

 

2.6

 

(8.2

)

(0.1

)

(1.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) - as adjusted

 

$

33.0

 

10.2

 

2.4

 

(8.3

)

37.3

 

$

39.5

 

12.8

 

1.6

 

(9.8

)

44.1

 

Adjusted operating margin %

 

14.8

%

9.4

%

17.6

%

 

 

10.8

%

16.5

%

11.2

%

9.2

%

 

 

11.9

%

 

 

 

Third Quarter Ended

 

Fourth Quarter Ended

 

 

 

October 2, 2016

 

December 31, 2016

 

 

 

Americas

 

Europe

 

APMEA

 

Corporate

 

Total

 

Americas

 

Europe

 

APMEA

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

215.8

 

107.0

 

18.3

 

 

341.1

 

$

223.3

 

101.7

 

17.0

 

 

342.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) - as reported

 

$

32.2

 

12.3

 

1.6

 

(9.6

)

36.5

 

$

31.4

 

7.7

 

2.0

 

(9.5

)

31.6

 

Operating margin %

 

14.9

%

11.5

%

8.7

%

 

 

10.7

%

14.1

%

7.6

%

11.8

%

 

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for special items

 

$

4.1

 

0.4

 

0.5

 

(0.1

)

4.9

 

$

2.8

 

1.2

 

 

1.6

 

5.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) - as adjusted

 

$

36.3

 

12.7

 

2.1

 

(9.7

)

41.4

 

$

34.2

 

8.9

 

2.0

 

(7.9

)

37.2

 

Adjusted operating margin %

 

16.8

%

11.9

%

11.5

%

 

 

12.1

%

15.3

%

8.8

%

11.8

%

 

 

10.9

%

 

 

 

Year Ended

 

Year Ended

 

 

 

December 31, 2016

 

December 31, 2015

 

 

 

Americas

 

Europe

 

APMEA

 

Corporate

 

Total

 

Americas

 

Europe

 

APMEA

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

900.9

 

431.3

 

66.2

 

 

1,398.4

 

$

978.5

 

436.0

 

53.2

 

 

1,467.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) - as reported

 

$

127.1

 

40.0

 

15.1

 

(37.2

)

145.0

 

$

109.9

 

(99.6

)

0.5

 

(100.9

)

(90.1

)

Operating margin %

 

14.1

%

9.3

%

22.8

%

 

 

10.4

%

11.2

%

-22.8

%

0.9

%

 

 

-6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for special items

 

$

15.9

 

4.6

 

(7.0

)

1.5

 

15.0

 

$

25.8

 

139.6

 

6.0

 

67.1

 

238.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) - as adjusted

 

$

143.0

 

44.6

 

8.1

 

(35.7

)

160.0

 

$

135.7

 

40.0

 

6.5

 

(33.8

)

148.4

 

Adjusted operating margin %

 

15.9

%

10.3

%

12.2

%

 

 

11.4

%

13.9

%

9.2

%

12.2

%

 

 

10.1

%

 

Note: The tables contains a retrospective revision of the quarterly, year-to-date, and annual operating results by operating segment of the Company for 2016 and the annual operating results by operating segment for 2015 to reflect the change in composition of reportable segments moving Watts Middle East FZE out of Europe and into APMEA.  Note the four quarters may not sum to full year due to rounding.