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8-K - FORM 8-K - PENTAIR plc | c55968e8vk.htm |
Exhibit 99.1
Pentair, Inc.
5500 Wayzata Blvd., Suite 800
MInneapolis, MN 55416
763 545 1730 Tel
763 656 5400 Fax
5500 Wayzata Blvd., Suite 800
MInneapolis, MN 55416
763 545 1730 Tel
763 656 5400 Fax
News Release
Pentair Reports Full Year 2009 Net Income Per Share from Continuing Operations of
$1.17; Adjusted EPS of $1.47
Company Updates 2010 Full Year Guidance Range to $1.75 to $1.90, an Increase of 19 to
29 Percent Compared to 2009 Adjusted EPS
| Reports fourth quarter sales of $702 million, down 9 percent year-over-year | ||
| Announces fourth quarter net income per share from continuing operations (EPS) of 29 cents or 47 cents on an adjusted basis | ||
| Updates first quarter and full year 2010 EPS guidance |
All financial information and period-to-period references are on a continuing
operations basis unless otherwise noted. Reconciliations to discontinued operations as
well as GAAP and Non-GAAP reconciliations are in the attached financial tables.
MINNEAPOLIS, Minn. February 2, 2010 Pentair, Inc. (NYSE: PNR) today announced
fourth quarter 2009 net earnings per diluted share from continuing operations (EPS) of
$0.29. This represents an increase of 32 percent as compared to the $0.22 of EPS in
the fourth quarter last year. Current period results included a negative $0.18 per
share impact from restructuring and impairment charges. Adjusting for these items,
fourth quarter 2009 EPS was $0.47, compared to adjusted fourth quarter 2009 EPS of
$0.41, an increase of 15 percent.
Total company sales decreased 9 percent to $702 million, compared with $768 million
in the fourth quarter of 2008. The company delivered fourth quarter operating income
of $52 million. On an adjusted basis, the company delivered operating income of $77
million versus $74 million in the year-ago quarter. The companys adjusted operating
income in the current quarter excluded the impact of impairment charges and additional
restructuring activities. Overall, adjusted operating margins for the fourth quarter
increased 140 basis points to 11 percent. The positive impact on operating margins
from productivity and material savings more than offset the negative impact related to
lower volumes.
Total company free cash flow was positive $5 million for the quarter, or $30 million
excluding a $25 million discretionary pension contribution, which the company paid in
December.
We exited 2009 with a keen sense of achievement as both our fourth quarter
operating margins and EPS grew year over year despite a sales decline, said Randall J.
Hogan, Pentair chairman and chief executive officer. We continue to benefit from
tremendous productivity actions and, despite continued year-over-year sales declines,
we saw volumes improve sequentially in the fourth quarter in many of our key markets,
he added.
(more)
-2-
fourth Quarter Business Highlights
The Water Group delivered $475 million in sales, a 7 percent decline year-over-year. Sales
were down 9 percent excluding foreign exchange.
| Flow Technologies sales were down 3 percent versus the year-ago quarter, as growth in the companys global municipal market partially offset declines in commercial, industrial and residential markets. | ||
| Filtration sales were down 9 percent as growth in the companys food service and residential markets did not overcome commercial and industrial market declines. | ||
| Global Pool sales were down 13 percent as the prolonged decline in North American residential pool markets persists. |
The Water Groups fourth quarter reported operating income totaled $34 million, up 5 percent
as compared to $32 million in the same period last year. In the quarter, the Water Group
had $21 million in pre-tax restructuring charges and intangible and asset impairments.
Excluding these items, fourth quarter 2009 adjusted operating income was $55 million, up 7
percent versus fourth quarter 2008 adjusted operating income of $52 million, an increase of
140 basis points to 11.6 percent. The benefits from productivity and material savings more
than offset the negative impact from volume declines and inflation.
Technical Products delivered fourth quarter 2009 sales of $227 million, a decrease of 12
percent versus the year-earlier period. Sales were down 15 percent excluding the impact
of foreign exchange.
| Global Electrical sales were down 16 percent, as industrial customers continue to reduce capital projects and distributors are maintaining reduced inventory levels. | ||
| Global Electronic sales were down 7 percent, as growth in Asia markets could not overcome declines in North American and European markets. |
Technical Products fourth quarter reported operating income totaled $32 million, up 20
percent compared to $27 million in the same quarter last year. Adjusting for a
restructuring charge, operating income was $35 million. Adjusted operating margins
were 15.3 percent, up 220 basis points versus the fourth quarter 2008. The positive
impact of productivity and material savings more than offset the negative impact from
volume declines.
Overall, our fourth quarter results exceeded the expectations we provided in October.
While still down year-over-year, sales in the quarter were stronger than originally
expected for both Water and Technical Products. That, coupled with our continued solid
execution with respect to cost reductions, provides positive momentum as we enter
2010, said Hogan.
(more)
- 3 -
fiscal year 2009 results
Total company sales of $2.69 billion for fiscal year 2009 decreased 20 percent from $3.35
billion in 2008. For the year, the company reported EPS of $1.17, representing a decrease of
55 percent as compared to the $2.59 of reported EPS in 2008. Full year 2009 results
included a negative 27 cents per share impact from restructuring actions and impairment
charges and a negative 3 cents per share charge from the early redemption of bonds. Full
year 2008 results included a favorable impact of the 86 cents per share gain from the
formation of Pentair Residential Filtration, a negative 33 cents per share impact primarily
from restructuring actions and impairment charges and a negative 14 cents per share impact
from the settlement of the Horizon litigation. Excluding these items in both years, full
year 2009 adjusted EPS were $1.47, down 33 percent when compared to full year 2008 adjusted
EPS of $2.20.
For the year, Pentair generated $207 million in free cash flow, or $232 million
excluding the discretionary pension contribution. Full year 2009 free cash flow
represents a conversion of net income of over 160 percent. In 2008, the company
generated $164 million in free cash flow.
Pentair combated the global recession and delivered dependable results in 2009 by
significantly reducing our structural costs while maintaining investments in innovation and
global growth, said Hogan. We generated outstanding free cash flow and recently increased
our dividend for the 34th consecutive year. With our Global Business Unit (GBU)
structure, leaner manufacturing footprint, new product introductions and improved global
distribution capabilities, we will continue to serve our customers in 2010 and expect to
improve our performance well into the future.
Outlook
The company is updating its first quarter 2010 earnings per share guidance to a range of
$0.32 to $0.35, an increase of over 60 percent year-over-year over adjusted first quarter
2009 earnings. The company is also updating its full year 2010 EPS guidance range to $1.75
to $1.90, an increase of 19 to 29 percent versus 2009 adjusted EPS. The company expects
full year 2010 free cash flow to equal or exceed net income.
Over the past three years, our water business has dealt with steady declines in its largest
market residential. The past 18 months created new challenges for all our businesses, as
the global recession negatively affected each. However, through it all, we maintained
growth investments, increased our dividend, lowered our debt levels and dramatically
improved our manufacturing and administrative cost structure, said Hogan. Thanks to the
hard work and resiliency of our 13,000-plus employees, Pentair is in position to benefit
from improving markets and withstand new challenges and uncertainties as they arise.
(more)
- 4 -
Earnings Conference Call
Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will
discuss the companys performance and fourth quarter and full year 2009 results and
2010 outlook on a two-way conference call with investors and a live audio webcast at 9
a.m. Eastern today. Reconciliation of non-GAAP financial measures are set forth in the
attachments to this fourth quarter 2009 earnings release and in the fourth quarter and
full year 2009 earning release conference call presentation, both of which can be found
at Pentairs web site (www.pentair.com). Related financial charts and certain
other information to be discussed on the conference call will be available on the
companys website shortly before the conference call. The web cast and presentation
will be archived at the same site following the conclusion of the conference call.
Caution concerning forward-looking statements
Any statements made about the companys anticipated financial results are
forward-looking statements subject to risks and uncertainties such as the breadth and
severity of the global economic downturn; the strength of housing and related markets;
the ability to implement our restructuring and other cost reduction plans successfully
and the risk that expected benefits may not be fully realized or may take longer to
realize than expected; foreign currency effects; retail, commercial and industrial
demand; product introductions; and pricing and other competitive pressures, as well as
other risk factors set forth in our SEC filings. Forward-looking statements included
herein are made as of the date hereof, and the company undertakes no obligation to
update publicly such statements to reflect subsequent events or circumstances. Actual
results could differ materially from anticipated results.
About Pentair, Inc.
Pentair (www.pentair.com) is a global diversified industrial company headquartered in
Minneapolis, Minnesota. Its Water Group is a global leader in providing innovative products
and systems used worldwide in the movement, treatment, storage and enjoyment of water.
Pentairs Technical Products Group is a leader in the global enclosures and thermal
management markets, designing and manufacturing thermal management products and standard,
modified, and custom enclosures that protect sensitive electronics and the people that use
them. With 2009 revenues of $2.7 billion, Pentair employs approximately 13,150 people
worldwide.
Pentair Contacts:
Todd Gleason
Vice President, Strategic Planning & Investor Relations
Tel.: (763) 656-5570
E-mail: todd.gleason@pentair.com
Todd Gleason
Vice President, Strategic Planning & Investor Relations
Tel.: (763) 656-5570
E-mail: todd.gleason@pentair.com
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
Three months ended | Year ended | |||||||||||||||
December 31 | December 31 | December 31 | December 31 | |||||||||||||
In thousands, except per-share data | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Net sales |
$ | 702,251 | $ | 767,637 | $ | 2,692,468 | $ | 3,351,976 | ||||||||
Cost of goods sold |
489,794 | 538,144 | 1,907,333 | 2,337,426 | ||||||||||||
Gross profit |
212,457 | 229,493 | 785,135 | 1,014,550 | ||||||||||||
% of net sales |
30.3 | % | 29.9 | % | 29.2 | % | 30.3 | % | ||||||||
Selling, general and administrative |
145,346 | 169,149 | 507,303 | 606,980 | ||||||||||||
% of net sales |
20.7 | % | 22.0 | % | 18.8 | % | 18.1 | % | ||||||||
Research and development |
14,619 | 15,147 | 57,884 | 62,450 | ||||||||||||
% of net sales |
2.1 | % | 2.0 | % | 2.2 | % | 1.9 | % | ||||||||
Legal settlement |
| | | 20,435 | ||||||||||||
Operating income |
52,492 | 45,197 | 219,948 | 324,685 | ||||||||||||
% of net sales |
7.5 | % | 5.9 | % | 8.2 | % | 9.7 | % | ||||||||
Other (income) expense: |
||||||||||||||||
Gain on sale of interest in subsidiaries |
| | | (109,648 | ) | |||||||||||
Equity losses of unconsolidated subsidiary |
688 | 608 | 1,379 | 3,041 | ||||||||||||
Loss on early extinguishment of debt |
| | 4,804 | 4,611 | ||||||||||||
Net interest expense |
9,790 | 13,744 | 41,118 | 59,435 | ||||||||||||
% of net sales |
1.4 | % | 1.8 | % | 1.5 | % | 1.8 | % | ||||||||
Other |
| 106 | | 106 | ||||||||||||
Income from continuing operations before income taxes
and noncontrolling interest |
42,014 | 30,739 | 172,647 | 367,140 | ||||||||||||
% of net sales |
6.0 | % | 4.0 | % | 6.4 | % | 11.0 | % | ||||||||
Provision for income taxes |
14,620 | 9,245 | 56,428 | 108,344 | ||||||||||||
Effective tax rate |
34.8 | % | 30.1 | % | 32.7 | % | 29.5 | % | ||||||||
Income from continuing operations |
27,394 | 21,494 | 116,219 | 258,796 | ||||||||||||
Loss from discontinued operations, net of tax |
| (2,131 | ) | | (5,783 | ) | ||||||||||
Gain (Loss) on disposal of discontinued operations, net of tax |
134 | (14,441 | ) | (19 | ) | (21,846 | ) | |||||||||
Net income before noncontrolling interest |
27,528 | 4,922 | 116,200 | 231,167 | ||||||||||||
Noncontrolling interest |
(1,824 | ) | 333 | 707 | 2,433 | |||||||||||
Net income attributable to Pentair, Inc. |
$ | 29,352 | $ | 4,589 | $ | 115,493 | $ | 228,734 | ||||||||
Net income from continuing operations attributable to Pentair, Inc. |
$ | 29,218 | $ | 21,161 | $ | 115,512 | $ | 256,363 | ||||||||
Earnings (loss) per common share attributable to Pentair, Inc. |
||||||||||||||||
Basic |
||||||||||||||||
Continuing operations |
$ | 0.30 | $ | 0.22 | $ | 1.19 | $ | 2.62 | ||||||||
Discontinued operations |
| (0.17 | ) | | (0.28 | ) | ||||||||||
Basic earnings per common share |
$ | 0.30 | $ | 0.05 | $ | 1.19 | $ | 2.34 | ||||||||
Diluted |
||||||||||||||||
Continuing operations |
$ | 0.29 | $ | 0.22 | $ | 1.17 | $ | 2.59 | ||||||||
Discontinued operations |
| (0.17 | ) | | (0.28 | ) | ||||||||||
Diluted earnings per common share |
$ | 0.29 | $ | 0.05 | $ | 1.17 | $ | 2.31 | ||||||||
Weighted average common shares outstanding |
||||||||||||||||
Basic |
97,667 | 97,422 | 97,415 | 97,887 | ||||||||||||
Diluted |
99,226 | 98,299 | 98,522 | 99,068 | ||||||||||||
Cash dividends declared per common share |
$ | 0.18 | $ | 0.17 | $ | 0.72 | $ | 0.68 |
Pentair, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited)
December 31 | December 31 | |||||||
In thousands | 2009 | 2008 | ||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 33,396 | $ | 39,344 | ||||
Accounts and notes receivable, net |
455,090 | 461,081 | ||||||
Inventories |
360,627 | 417,287 | ||||||
Deferred tax assets |
49,609 | 51,354 | ||||||
Prepaid expenses and other current assets |
47,576 | 63,113 | ||||||
Total current assets |
946,298 | 1,032,179 | ||||||
Property, plant and equipment, net |
333,688 | 343,881 | ||||||
Other assets |
||||||||
Goodwill |
2,088,797 | 2,101,851 | ||||||
Intangibles, net |
486,407 | 515,508 | ||||||
Other |
56,144 | 59,794 | ||||||
Total other assets |
2,631,348 | 2,677,153 | ||||||
Total assets |
$ | 3,911,334 | $ | 4,053,213 | ||||
Liabilities and Shareholders Equity |
||||||||
Current liabilities |
||||||||
Short-term borrowings |
$ | 2,205 | $ | | ||||
Current maturities of long-term debt |
81 | 624 | ||||||
Accounts payable |
207,661 | 217,898 | ||||||
Employee compensation and benefits |
74,254 | 90,210 | ||||||
Current pension and post-retirement benefits |
8,948 | 8,890 | ||||||
Accrued product claims and warranties |
34,288 | 41,559 | ||||||
Income taxes |
5,659 | 5,451 | ||||||
Accrued rebates and sales incentives |
27,554 | 28,897 | ||||||
Other current liabilities |
85,629 | 104,975 | ||||||
Total current liabilities |
446,279 | 498,504 | ||||||
Other liabilities |
||||||||
Long-term debt |
803,351 | 953,468 | ||||||
Pension and other retirement compensation |
234,948 | 270,139 | ||||||
Post-retirement medical and other benefits |
31,790 | 34,723 | ||||||
Long-term income taxes payable |
26,936 | 28,139 | ||||||
Deferred tax liabilities |
146,630 | 146,559 | ||||||
Other non-current liabilities |
95,060 | 101,612 | ||||||
Total liabilities |
1,784,994 | 2,033,144 | ||||||
Shareholders equity |
2,126,340 | 2,020,069 | ||||||
Total liabilities and shareholders equity |
$ | 3,911,334 | $ | 4,053,213 | ||||
Days sales in accounts receivable (13 month moving average) |
62 | 57 | ||||||
Days inventory on hand (13 month moving average) |
90 | 79 | ||||||
Days in accounts payable (13 month moving average) |
66 | 59 |
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited)
Year ended | ||||||||
December 31 | December 31 | |||||||
In thousands | 2009 | 2008 | ||||||
Operating activities |
||||||||
Net income before noncontrolling interest |
$ | 116,200 | $ | 231,167 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities |
||||||||
Loss from discontinued operations |
| 5,783 | ||||||
Loss on disposal of discontinued operations |
19 | 21,846 | ||||||
Equity losses of unconsolidated subsidiary |
1,379 | 3,041 | ||||||
Depreciation |
64,823 | 59,673 | ||||||
Amortization |
40,657 | 27,608 | ||||||
Deferred income taxes |
30,616 | 40,754 | ||||||
Stock compensation |
17,324 | 20,572 | ||||||
Excess tax benefits from stock-based compensation |
(1,746 | ) | (1,617 | ) | ||||
Loss on sale of assets |
985 | 510 | ||||||
Gain on sale of interest in subsidiaries |
| (109,648 | ) | |||||
Changes in assets and liabilities, net of effects of business acquisitions and
dispositions |
||||||||
Accounts and notes receivable |
11,307 | (18,247 | ) | |||||
Inventories |
66,684 | (33,311 | ) | |||||
Prepaid expenses and other current assets |
16,202 | (27,394 | ) | |||||
Accounts payable |
(13,822 | ) | (1,973 | ) | ||||
Employee compensation and benefits |
(22,431 | ) | (21,919 | ) | ||||
Accrued product claims and warranties |
(7,440 | ) | (7,286 | ) | ||||
Income taxes |
1,972 | (4,409 | ) | |||||
Other current liabilities |
(21,081 | ) | 8,987 | |||||
Pension and post-retirement benefits |
(39,607 | ) | 301 | |||||
Other assets and liabilities |
(2,141 | ) | 18,174 | |||||
Net cash provided by (used for) continuing operations |
259,900 | 212,612 | ||||||
Net cash provided by (used for) operating activities of discontinued operations |
(1,531 | ) | (8,397 | ) | ||||
Net cash provided by (used for) operating activities |
258,369 | 204,215 | ||||||
Investing activities |
||||||||
Capital expenditures |
(54,137 | ) | (53,089 | ) | ||||
Proceeds from sale of property and equipment |
1,208 | 4,741 | ||||||
Acquisitions, net of cash acquired or received |
| (2,027 | ) | |||||
Divestitures |
1,567 | 37,907 | ||||||
Other |
(3,224 | ) | (12 | ) | ||||
Net cash provided by (used for) investing activities |
(54,586 | ) | (12,480 | ) | ||||
Financing activities |
||||||||
Net short-term borrowings (repayments) |
1,051 | (16,994 | ) | |||||
Proceeds from long-term debt |
580,000 | 715,000 | ||||||
Repayment of long-term debt |
(729,150 | ) | (805,016 | ) | ||||
Debt issuance costs |
(50 | ) | (114 | ) | ||||
Excess tax benefits from stock-based compensation |
1,746 | 1,617 | ||||||
Proceeds from exercise of stock options |
8,247 | 5,590 | ||||||
Repurchases of common stock |
| (50,000 | ) | |||||
Dividends paid |
(70,927 | ) | (67,284 | ) | ||||
Net cash provided by (used for) financing activities |
(209,083 | ) | (217,201 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
(648 | ) | (5,985 | ) | ||||
Change in cash and cash equivalents |
(5,948 | ) | (31,451 | ) | ||||
Cash and cash equivalents, beginning of period |
39,344 | 70,795 | ||||||
Cash and cash equivalents, end of period |
$ | 33,396 | $ | 39,344 | ||||
Free cash flow |
||||||||
Net cash provided by (used for) continuing operations |
$ | 259,900 | $ | 212,612 | ||||
Capital expenditures |
(54,137 | ) | (53,089 | ) | ||||
Proceeds from sale of property and equipment |
1,208 | 4,741 | ||||||
Free cash flow |
$ | 206,971 | $ | 164,264 | ||||
Pentair, Inc. and Subsidiaries
Supplemental Financial Information by Reportable Business Segment (Unaudited)
Supplemental Financial Information by Reportable Business Segment (Unaudited)
First Qtr | Second Qtr | Third Qtr | Fourth Qtr | Year | ||||||||||||||||
In thousands | 2009 | 2009 | 2009 | 2009 | 2009 | |||||||||||||||
Net sales to external
customers |
||||||||||||||||||||
Water |
$ | 423,932 | $ | 486,990 | $ | 461,570 | $ | 475,272 | $ | 1,847,764 | ||||||||||
Technical Products |
209,908 | 206,722 | 201,095 | 226,979 | 844,704 | |||||||||||||||
Consolidated |
$ | 633,840 | $ | 693,712 | $ | 662,665 | $ | 702,251 | $ | 2,692,468 | ||||||||||
Intersegment sales |
||||||||||||||||||||
Water |
$ | 289 | $ | 198 | $ | 284 | $ | 510 | $ | 1,281 | ||||||||||
Technical Products |
233 | 600 | 544 | 834 | 2,211 | |||||||||||||||
Other |
(522 | ) | (798 | ) | (828 | ) | (1,344 | ) | (3,492 | ) | ||||||||||
Consolidated |
$ | | $ | | $ | | $ | | $ | | ||||||||||
Operating income (loss) |
||||||||||||||||||||
Water |
$ | 26,976 | $ | 49,781 | $ | 53,085 | $ | 33,903 | $ | 163,745 | ||||||||||
Technical Products |
20,462 | 23,578 | 24,356 | 31,959 | 100,355 | |||||||||||||||
Other |
(10,224 | ) | (9,799 | ) | (10,759 | ) | (13,370 | ) | (44,152 | ) | ||||||||||
Consolidated |
$ | 37,214 | $ | 63,560 | $ | 66,682 | $ | 52,492 | $ | 219,948 | ||||||||||
Operating income as a
percent of net sales |
||||||||||||||||||||
Water |
6.4 | % | 10.2 | % | 11.5 | % | 7.1 | % | 8.9 | % | ||||||||||
Technical Products |
9.7 | % | 11.4 | % | 12.1 | % | 14.1 | % | 11.9 | % | ||||||||||
Consolidated |
5.9 | % | 9.2 | % | 10.1 | % | 7.5 | % | 8.2 | % |
First Qtr | Second Qtr | Third Qtr | Fourth Qtr | Year | ||||||||||||||||
In thousands | 2008 | 2008 | 2008 | 2008 | 2008 | |||||||||||||||
Net sales to external
customers |
||||||||||||||||||||
Water |
$ | 544,686 | $ | 594,118 | $ | 557,976 | $ | 509,362 | $ | 2,206,142 | ||||||||||
Technical Products |
285,460 | 304,260 | 297,839 | 258,275 | 1,145,834 | |||||||||||||||
Consolidated |
$ | 830,146 | $ | 898,378 | $ | 855,815 | $ | 767,637 | $ | 3,351,976 | ||||||||||
Intersegment sales |
||||||||||||||||||||
Water |
$ | 372 | $ | 139 | $ | 305 | $ | 228 | $ | 1,044 | ||||||||||
Technical Products |
1,138 | 1,034 | 765 | 1,081 | 4,018 | |||||||||||||||
Other |
(1,510 | ) | (1,173 | ) | (1,070 | ) | (1,309 | ) | (5,062 | ) | ||||||||||
Consolidated |
$ | | $ | | $ | | $ | | $ | | ||||||||||
Operating income (loss) |
||||||||||||||||||||
Water |
$ | 65,035 | $ | 59,475 | $ | 49,684 | $ | 32,163 | $ | 206,357 | ||||||||||
Technical Products |
45,337 | 49,732 | 47,585 | 26,661 | 169,315 | |||||||||||||||
Other |
(13,045 | ) | (12,660 | ) | (11,655 | ) | (13,627 | ) | (50,987 | ) | ||||||||||
Consolidated |
$ | 97,327 | $ | 96,547 | $ | 85,614 | $ | 45,197 | $ | 324,685 | ||||||||||
Operating income
as a percent of net sales |
||||||||||||||||||||
Water |
11.9 | % | 10.0 | % | 8.9 | % | 6.3 | % | 9.4 | % | ||||||||||
Technical Products |
15.9 | % | 16.3 | % | 16.0 | % | 10.3 | % | 14.8 | % | ||||||||||
Consolidated |
11.7 | % | 10.7 | % | 10.0 | % | 5.9 | % | 9.7 | % |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP As Reported year ending December 31, 2009 to the Adjusted non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
Reconciliation of the GAAP As Reported year ending December 31, 2009 to the Adjusted non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands, except per-share data | 2009 | 2009 | 2009 | 2009 | 2009 | |||||||||||||||
Net sales |
$ | 633,840 | $ | 693,712 | $ | 662,665 | $ | 702,251 | $ | 2,692,468 | ||||||||||
Operating income as reported |
37,214 | 63,560 | 66,682 | 52,492 | 219,948 | |||||||||||||||
% of net sales |
5.9 | % | 9.2 | % | 10.1 | % | 7.5 | % | 8.2 | % | ||||||||||
Adjustments: |
||||||||||||||||||||
Restructuring and asset impairment |
2,824 | 2,944 | 7,295 | 24,881 | 37,944 | |||||||||||||||
Operating income as adjusted |
40,038 | 66,504 | 73,977 | 77,373 | 257,892 | |||||||||||||||
% of net sales |
6.3 | % | 9.6 | % | 11.2 | % | 11.0 | % | 9.6 | % | ||||||||||
Net income from continuing operations attributable
to Pentair, Inc. as reported |
17,255 | 32,006 | 37,033 | 29,218 | 115,512 | |||||||||||||||
Adjustments tax affected |
||||||||||||||||||||
Restructuring and asset impairment, net of
minority interest |
1,864 | 1,943 | 4,815 | 17,549 | 26,171 | |||||||||||||||
Bond tender |
| 3,171 | | | 3,171 | |||||||||||||||
Net income from continuing operations attributable
to Pentair, Inc. as adjusted |
19,119 | 37,120 | 41,848 | 46,767 | 144,854 | |||||||||||||||
Continuing earnings per common share attributable
to Pentair, Inc. diluted |
||||||||||||||||||||
Diluted earnings per common share as reported |
$ | 0.18 | $ | 0.33 | $ | 0.38 | $ | 0.29 | $ | 1.17 | ||||||||||
Adjustments |
0.02 | 0.05 | 0.04 | 0.18 | 0.30 | |||||||||||||||
Diluted earnings per common share as adjusted |
$ | 0.20 | $ | 0.38 | $ | 0.42 | $ | 0.47 | $ | 1.47 | ||||||||||
Weighted average common shares outstanding Diluted |
97,966 | 98,422 | 98,641 | 99,226 | 98,522 |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP As Reported year ending December 31, 2008 to the Adjusted non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
Reconciliation of the GAAP As Reported year ending December 31, 2008 to the Adjusted non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands, except per-share data | 2008 | 2008 | 2008 | 2008 | 2008 | |||||||||||||||
Net sales |
$ | 830,146 | $ | 898,378 | $ | 855,815 | $ | 767,637 | $ | 3,351,976 | ||||||||||
Operating income as reported |
97,327 | 96,547 | 85,614 | 45,197 | 324,685 | |||||||||||||||
% of net sales |
11.7 | % | 10.7 | % | 10.0 | % | 5.9 | % | 9.7 | % | ||||||||||
Adjustments: |
||||||||||||||||||||
Restructuring and asset impairment |
| 2,586 | 15,207 | 28,377 | 46,170 | |||||||||||||||
Horizon settlement |
| 20,435 | | | 20,435 | |||||||||||||||
Operating income as adjusted |
97,327 | 119,568 | 100,821 | 73,574 | 391,290 | |||||||||||||||
% of net sales |
11.7 | % | 13.3 | % | 11.8 | % | 9.6 | % | 11.7 | % | ||||||||||
Net income from continuing operations attributable
to Pentair, Inc. as reported |
52,463 | 139,837 | 42,902 | 21,161 | 256,363 | |||||||||||||||
Adjustments tax affected |
||||||||||||||||||||
Restructuring and asset impairment |
| 1,707 | 10,037 | 18,729 | 30,473 | |||||||||||||||
Horizon settlement |
| 13,487 | | | 13,487 | |||||||||||||||
Gain on PRF transaction |
| (85,832 | ) | | | (85,832 | ) | |||||||||||||
Bond tender |
| | 3,043 | | 3,043 | |||||||||||||||
Net income from continuing operations attributable
to Pentair, Inc. as adjusted |
52,463 | 69,199 | 55,982 | 39,890 | 217,534 | |||||||||||||||
Continuing earnings per common share attributable to
Pentair, Inc. diluted |
||||||||||||||||||||
Diluted earnings per common share as reported |
$ | 0.53 | $ | 1.41 | $ | 0.43 | $ | 0.22 | $ | 2.59 | ||||||||||
Adjustments |
| (0.71 | ) | 0.13 | 0.19 | (0.39 | ) | |||||||||||||
Diluted earnings per common share as adjusted |
$ | 0.53 | $ | 0.70 | $ | 0.56 | $ | 0.41 | $ | 2.20 | ||||||||||
Weighted average common shares outstanding Diluted |
99,558 | 99,509 | 99,319 | 98,299 | 99,068 |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP As Reported year ending December 31, 2009 to the Adjusted non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
Reconciliation of the GAAP As Reported year ending December 31, 2009 to the Adjusted non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands | 2009 | 2009 | 2009 | 2009 | 2009 | |||||||||||||||
Water |
||||||||||||||||||||
Net sales |
$ | 423,932 | $ | 486,990 | $ | 461,570 | $ | 475,272 | $ | 1,847,764 | ||||||||||
Operating income as reported |
26,976 | 49,781 | 53,085 | 33,903 | 163,745 | |||||||||||||||
% of net sales |
6.4 | % | 10.2 | % | 11.5 | % | 7.1 | % | 8.9 | % | ||||||||||
Adjustments restructuring and asset impairment |
1,464 | 1,460 | 2,639 | 21,336 | 26,899 | |||||||||||||||
Operating income as adjusted |
28,440 | 51,241 | 55,724 | 55,239 | 190,644 | |||||||||||||||
% of net sales |
6.7 | % | 10.5 | % | 12.1 | % | 11.6 | % | 10.3 | % | ||||||||||
Technical Products |
||||||||||||||||||||
Net sales |
$ | 209,908 | $ | 206,722 | $ | 201,095 | $ | 226,979 | $ | 844,704 | ||||||||||
Operating income as reported |
20,462 | 23,578 | 24,356 | 31,959 | 100,355 | |||||||||||||||
% of net sales |
9.7 | % | 11.4 | % | 12.1 | % | 14.1 | % | 11.9 | % | ||||||||||
Adjustments restructuring and asset impairment |
792 | 1,139 | 4,557 | 2,729 | 9,217 | |||||||||||||||
Operating income as adjusted |
21,254 | 24,717 | 28,913 | 34,688 | 109,572 | |||||||||||||||
% of net sales |
10.1 | % | 12.0 | % | 14.4 | % | 15.3 | % | 13.0 | % |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP As Reported year ending December 31, 2008 to the Adjusted non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
Reconciliation of the GAAP As Reported year ending December 31, 2008 to the Adjusted non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands | 2008 | 2008 | 2008 | 2008 | 2008 | |||||||||||||||
Water |
||||||||||||||||||||
Net sales |
$ | 544,686 | $ | 594,118 | $ | 557,976 | $ | 509,362 | $ | 2,206,142 | ||||||||||
Operating income as reported |
65,035 | 59,475 | 49,684 | 32,163 | 206,357 | |||||||||||||||
% of net sales |
11.9 | % | 10.0 | % | 8.9 | % | 6.3 | % | 9.4 | % | ||||||||||
Adjustments |
||||||||||||||||||||
Restructuring and asset impairment |
| 2,157 | 13,438 | 19,628 | 35,223 | |||||||||||||||
Horizon settlement |
| 20,435 | | | 20,435 | |||||||||||||||
Operating income as adjusted |
65,035 | 82,067 | 63,122 | 51,791 | 262,015 | |||||||||||||||
% of net sales |
11.9 | % | 13.8 | % | 11.3 | % | 10.2 | % | 11.9 | % | ||||||||||
Technical Products |
||||||||||||||||||||
Net sales |
$ | 285,460 | $ | 304,260 | $ | 297,839 | $ | 258,275 | $ | 1,145,834 | ||||||||||
Operating income as reported |
45,337 | 49,732 | 47,585 | 26,661 | 169,315 | |||||||||||||||
% of net sales |
15.9 | % | 16.3 | % | 16.0 | % | 10.3 | % | 14.8 | % | ||||||||||
Adjustments restructuring and asset impairment |
| 429 | 633 | 7,209 | 8,271 | |||||||||||||||
Operating income as adjusted |
45,337 | 50,161 | 48,218 | 33,870 | 177,586 | |||||||||||||||
% of net sales |
15.9 | % | 16.4 | % | 16.2 | % | 13.1 | % | 15.5 | % |