Attached files
| file | filename |
|---|---|
| 8-K - THOMAS & BETTS CORPORATION 8-K - THOMAS & BETTS CORP | a6691707.htm |
Exhibit 99.1
Thomas & Betts Corporation Reports First Quarter Net Earnings of $0.71 per Share Excluding Consolidation Charges
2011 Earnings Guidance Unchanged at $3.15 to $3.35 per Share
NOTE: Financial metrics discussed in the text of this press release are stated on a continuing operations basis and exclude unusual items in all time periods unless otherwise noted. E.P.S. amounts are on a diluted basis. The accompanying financial tables present financial information in accordance with GAAP as well as non-GAAP reconciliations for items discussed in the text. Investors are strongly encouraged to consider all available information in their evaluation of Thomas & Betts.
MEMPHIS, Tenn.--(BUSINESS WIRE)--April 21, 2011--Thomas & Betts Corporation (NYSE:TNB) today reported $523.1 million in consolidated sales for first quarter 2011, a 15.3% increase year over year. The improvement was driven by the strong performance of the company’s Electrical segment, including solid organic sales growth and beneficial price and foreign currency.
First quarter 2011 net earnings per share increased 31.5% to $0.71 per diluted share, excluding $0.04 per share ($3.2 million pre-tax) in facility consolidation charges. This compares to net earnings of $0.54 per share excluding charges in the first quarter of 2010. GAAP net earnings from continuing operations were $0.67 and $0.50 per share in the first quarter of 2011 and 2010, respectively.
“2011 started out strong for Thomas & Betts. Our core Electrical business delivered excellent top- and bottom-line performance with sales up nearly 21% and earnings of over 20% of sales,” said Dominic J. Pileggi, chairman and chief executive officer. “Organic electrical sales grew nearly 10% driven by improved global demand for industrial and utility products. The strong Electrical segment results, coupled with solid performance in our HVAC segment, allowed us to deliver a year-over-year earnings increase of over 31%.”
SEGMENT HIGHLIGHTS:
Consolidated segment earnings were $99.0 million or 18.9% of sales, compared to $81.3 million or 17.9% of sales for first quarter 2010. Both periods exclude charges related to facility consolidations.
Electrical:
First quarter 2011 Electrical segment sales increased 20.8% to $443.5 million. Excluding acquisitions, sales increased 12.1% with organic growth contributing nearly 10% and the remainder from favorable foreign currency and price increases taken to offset rising raw material costs. Organic growth was driven by an increase of approximately 17% in industrial product demand and nearly 22% in utility product demand. Demand for construction products was essentially flat year over year. Electrical segment earnings were $89.4 million, or 20.2% of sales, excluding $2.5 million in pre-tax charges related to on-going consolidation activities. This compares to $67.1 million, or 18.3% of sales in the prior-year period, excluding $3.2 million in pre-tax consolidation charges. The earnings improvement is due to favorable product mix, prior-year acquisitions, the benefits of consolidation activities completed in 2010 and manufacturing leverage.
Steel Structures:
First quarter 2011 Steel Structures sales were $50.9 million, down 14.9% compared to 2010. Segment earnings were $4.3 million or 8.4% of sales. As expected, Steel Structures segment margins were lower than the typical mid-teen range for this business as a result of project mix and a very competitive pricing environment. In 2010, first quarter segment earnings were $9.9 million, or 16.5% of sales.
HVAC:
HVAC segment sales increased 8.2% to $28.7 million compared to $26.5 million last year. HVAC segment earnings were $5.3 million, or 18.3% of sales, excluding $0.7 million in pre-tax charges related to facility consolidation activities. This compares to $4.3 million, or 16.2% of sales, last year.
BALANCE SHEET/LIQUIDITY HIGHLIGHTS:
Thomas & Betts ended the quarter with $434 million in cash and cash equivalents and $447 million of availability under its existing credit facilities. Working capital was 16.8% of sales and total debt-to-total capitalization was 26.9% at quarter end.
GUIDANCE:
“We are very pleased with our first quarter performance and remain confident in our ability to continue to execute against our plans. There is, however, a greater degree of uncertainty today about the pace of the global macro-economic recovery given the on-going geo-political unrest and lingering impact from recent natural disasters than when we last provided guidance,” continued Pileggi. “Nonetheless, we are maintaining our full-year 2011 guidance of mid- to high-single digit sales growth and operating earnings of $3.15 to $3.35 per share (exclusive of consolidation charges).”
CORPORATE OVERVIEW:
Thomas & Betts Corporation (NYSE:TNB) is a global leader in the design, manufacture and marketing of essential components used to manage the connection, distribution, transmission and reliability of electrical power in industrial, construction and utility applications. With a portfolio of over 200,000 products marketed under more than 45 premium brand names, Thomas & Betts products are found wherever electricity is used. Headquartered in Memphis, Tenn., Thomas & Betts reported revenues of $2.0 billion and had approximately 8,750 employees in 2010. For more information, please visit www.tnb.com.
|
CONFERENCE CALL AND WEBCAST INFORMATION: |
|||||
|
Date: |
Thursday, April 21, 2011 | ||||
|
Time: |
11:00 a.m. Eastern (10:00 a.m. Central) | ||||
|
Phone: |
201.689.8341 | ||||
|
URL: |
www.tnb.com (audio only) |
||||
|
Replay: |
201.612.7415, account 9517, access code 369738 | ||||
| (through April 28, 2011). | |||||
CAUTIONARY STATEMENT
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are identified by terms such as "expected," "includes," "will" and "could" and make assumptions regarding the company’s operations, business, economic and political environment. Actual results may be materially different from any results expressed or implied by such forward-looking statements. Please see the "Risk Factors" section of the company's current Form 10-K for further information related to these uncertainties. The company undertakes no obligation to publicly revise any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events.
|
FINANCIAL TABLES ATTACHED: (Unaudited) |
| Consolidated Statements of Operations |
| Segment Information |
| Consolidated Balance Sheets |
| Consolidated Statements of Cash Flows |
| Selected Information: |
| Reconciliation of Unusual Items |
| Reconciliation of Unusual Items – Segment Earnings |
| Reconciliation of Free Cash Flow |
| Reconciliation of Working Capital as a Percentage of Sales |
| Reconciliation of Total Debt-to-Total Capitalization |
| THOMAS & BETTS CORPORATION AND SUBSIDIARIES | |||||||||||||
| Consolidated Statements of Operations | |||||||||||||
| (In thousands, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Quarter Ended | |||||||||||||
| March 31, | March 31, | ||||||||||||
| 2011 | 2010 | ||||||||||||
| Net sales | $ | 523,135 | $ | 453,629 | |||||||||
| Cost of sales | 359,532 | 319,029 | |||||||||||
| Gross profit | 163,603 | 134,600 | |||||||||||
| Gross profit - % of net sales | 31.3 | % | 29.7 | % | |||||||||
| Selling, general and administrative | 104,101 | 88,479 | |||||||||||
| Selling, general and administrative - % of net sales | 19.9 | % | 19.5 | % | |||||||||
| Earnings from operations | 59,502 | 46,121 | |||||||||||
| Earnings from operations - % of net sales | 11.4 | % | 10.2 | % | |||||||||
| Interest expense, net | (7,765 | ) | (8,371 | ) | |||||||||
| Other (expense) income, net | (985 | ) | 130 | ||||||||||
| Earnings before income taxes | 50,752 | 37,880 | |||||||||||
| Income tax provision | 15,226 | 11,565 | |||||||||||
| Effective tax rate | 30.0 | % | 30.5 | % | |||||||||
| Net earnings from continuing operations | 35,526 | 26,315 | |||||||||||
| Earnings from discontinued operations, net | - | 1,637 | |||||||||||
| Net earnings | $ | 35,526 | $ | 27,952 | |||||||||
| Basic earnings (loss) per share: | |||||||||||||
| Continuing operations | $ | 0.69 | $ | 0.51 | |||||||||
| Discontinued operations | - | 0.03 | |||||||||||
| Net earnings | $ | 0.69 | $ | 0.54 | |||||||||
| Diluted earnings (loss) per share: | |||||||||||||
| Continuing operations | $ | 0.67 | $ | 0.50 | |||||||||
| Discontinued operations | - | 0.03 | |||||||||||
| Net earnings | $ | 0.67 | $ | 0.53 | |||||||||
| Average shares outstanding: | |||||||||||||
| Basic | 51,546 | 52,067 | |||||||||||
| Diluted | 52,917 | 53,005 | |||||||||||
| THOMAS & BETTS CORPORATION AND SUBSIDIARIES | ||||||||||||
| Segment Information | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Quarter Ended | ||||||||||||
| March 31, | March 31, | |||||||||||
| 2011 | 2010 | |||||||||||
| Net sales: | ||||||||||||
| Electrical | $ | 443,520 | $ | 367,246 | ||||||||
| Steel Structures | 50,945 | 59,897 | ||||||||||
| HVAC | 28,670 | 26,486 | ||||||||||
| Total net sales | $ | 523,135 | $ | 453,629 | ||||||||
| Segment earnings: | ||||||||||||
| Electrical | $ | 86,936 | $ | 63,888 | ||||||||
| Steel Structures | 4,292 | 9,890 | ||||||||||
| HVAC | 4,562 | 4,291 | ||||||||||
| Total reportable segment earnings | $ | 95,790 | $ | 78,069 | ||||||||
| Corporate expense | (11,509 | ) | (9,887 | ) | ||||||||
| Depreciation and amortization expense | (21,037 | ) | (18,460 | ) | ||||||||
| Share-based compensation expense | (3,742 | ) | (3,601 | ) | ||||||||
| Interest expense, net | (7,765 | ) | (8,371 | ) | ||||||||
| Other (expense) income, net | (985 | ) | 130 | |||||||||
| Earnings before income taxes | $ | 50,752 | $ | 37,880 | ||||||||
| Segment earnings - % of net sales: | ||||||||||||
| Electrical | 19.6 | % | 17.4 | % | ||||||||
| Steel Structures | 8.4 | % | 16.5 | % | ||||||||
| HVAC | 15.9 | % | 16.2 | % | ||||||||
| Total | 18.3 | % | 17.2 | % | ||||||||
| THOMAS & BETTS CORPORATION AND SUBSIDIARIES | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2011 | 2010 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 434,283 | $ | 455,198 | |||||||
| Restricted cash | 359 | 358 | |||||||||
| Receivables, net | 276,562 | 230,203 | |||||||||
| Inventories | 258,514 | 220,250 | |||||||||
| Other current assets | 51,357 | 51,086 | |||||||||
| Total current assets | 1,021,075 | 957,095 | |||||||||
| Net property, plant and equipment | 309,481 | 305,796 | |||||||||
| Goodwill | 977,640 | 967,889 | |||||||||
| Other intangible assets, net | 338,128 | 340,544 | |||||||||
| Other assets | 60,629 | 61,069 | |||||||||
| Total assets | $ | 2,706,953 | $ | 2,632,393 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of long-term debt | $ | 326 | $ | 322 | |||||||
| Accounts payable | 185,917 | 190,839 | |||||||||
| Accrued liabilities | 128,492 | 126,241 | |||||||||
| Income taxes payable | 14,481 | 26,263 | |||||||||
| Total current liabilities | 329,216 | 343,665 | |||||||||
| Long-term debt, net of current maturities | 574,077 | 574,090 | |||||||||
| Other long-term liabilities | 244,576 | 247,856 | |||||||||
| Shareholders' equity | 1,559,084 | 1,466,782 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,706,953 | $ | 2,632,393 | |||||||
| THOMAS & BETTS CORPORATION AND SUBSIDIARIES | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| March 31, | March 31, | |||||||||||
| 2011 | 2010 | |||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net earnings | $ | 35,526 | $ | 27,952 | ||||||||
| Adjustments: | ||||||||||||
| Depreciation and amortization | 21,037 | 18,889 | ||||||||||
| Share-based compensation expense | 3,742 | 3,633 | ||||||||||
| Deferred income taxes | 3,599 | 1,882 | ||||||||||
| Incremental tax benefits from share-based payment arrangements | (1,326 | ) | (598 | ) | ||||||||
| Changes in operating assets and liabilities, net (a): | ||||||||||||
| Receivables | (41,364 | ) | (39,084 | ) | ||||||||
| Inventories | (35,505 | ) | (12,557 | ) | ||||||||
| Accounts payable | (7,487 | ) | (134 | ) | ||||||||
| Accrued liabilities | 786 | 5,916 | ||||||||||
| Income taxes payable | (11,001 | ) | 3,002 | |||||||||
| Other | (5,213 | ) | 4,750 | |||||||||
| Net cash provided by (used in) operating activities | (37,206 | ) | 13,651 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchases of businesses, net of cash acquired | - | (21,395 | ) | |||||||||
| Purchases of property, plant and equipment | (12,111 | ) |
|
(5,315 | ) | |||||||
| Other | 2 | 5 | ||||||||||
| Net cash provided by (used in) investing activities | (12,109 | ) |
|
(26,705 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Stock options exercised | 18,518 | 3,326 | ||||||||||
| Repayments of debt and other borrowings | (78 | ) | (72 | ) | ||||||||
| Incremental tax benefits from share-based payment arrangements | 1,326 | 598 | ||||||||||
| Net cash provided by (used in) financing activities | 19,766 | 3,852 | ||||||||||
| EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 8,634 | (2,887 | ) | |||||||||
| Net increase (decrease) in cash and cash equivalents | (20,915 | ) | (12,089 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 455,198 | 478,613 | ||||||||||
| Cash and cash equivalents at end of period | $ | 434,283 | $ | 466,524 | ||||||||
| Cash payments for interest | $ | 4,716 | $ | 5,603 | ||||||||
| Cash payments for income taxes | $ | 26,768 | $ | 8,155 | ||||||||
| (a) Net of foreign exchange and acquisition effects | ||||||||||||
| THOMAS & BETTS CORPORATION AND SUBSIDIARIES | ||||||||||||||
| Selected Information | ||||||||||||||
| (In millions, except E.P.S.) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Reconciliation of Unusual Items | ||||||||||||||
| Quarter Ended | ||||||||||||||
| March 31, 2011 | March 31, 2010 | |||||||||||||
| Net-of-Tax | E.P.S. | Net-of-Tax | E.P.S. | |||||||||||
|
Reported net earnings from continuing operations |
$ | 35.5 | $ | 0.67 | $ | 26.3 | $ | 0.50 | ||||||
|
Unusual Items: |
||||||||||||||
| Facility consolidations | 2.3 | 0.04 | 2.1 | 0.04 | ||||||||||
| Total unusual items | 2.3 | 0.04 | 2.1 | 0.04 | ||||||||||
|
Net earnings from continuing operations excluding unusual items |
$ | 37.8 | $ | 0.71 | $ | 28.4 | $ | 0.54 | ||||||
|
Note: The Selected Information above is not calculated in accordance with Generally Accepted Accounting Principles (GAAP) and should not be considered a substitute for or superior to financial measures in accordance with GAAP. Management believes these non-GAAP financial measures provide investors and our management with additional useful information to measure and forecast our liquidity and operating results and to compare our liquidity and operating results on a more consistent basis against that of other companies in the markets that we serve. |
||||||||||||||
| THOMAS & BETTS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
| Selected Information (continued) | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Reconciliation of Unusual Items - Segment Earnings | |||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||
| March 31, 2011 | March 31, 2010 | ||||||||||||||||||||||||
| Electrical | Steel | HVAC | Total | Electrical | Steel | HVAC | Total | ||||||||||||||||||
| Reported segment earnings | $ | 86.9 | $ | 4.3 | $ | 4.6 | $ | 95.8 | $ | 63.9 | $ | 9.9 | $ | 4.3 | $ | 78.1 | |||||||||
|
Unusual Items: |
|||||||||||||||||||||||||
| Facility consolidations | 2.5 | - | 0.7 | 3.2 | 3.2 | - | - | 3.2 | |||||||||||||||||
| Total unusual items | 2.5 | - | 0.7 | 3.2 | 3.2 | - | - | 3.2 | |||||||||||||||||
|
Segment earnings excluding unusual items |
$ | 89.4 | $ | 4.3 | $ | 5.3 | $ | 99.0 | $ | 67.1 | $ | 9.9 | $ | 4.3 | $ | 81.3 | |||||||||
|
Segment earnings - % of net sales |
20.2% | 8.4% | 18.3% | 18.9% | 18.3% | 16.5% | 16.2% | 17.9% | |||||||||||||||||
|
Note: The Selected Information above is not calculated in accordance with Generally Accepted Accounting Principles (GAAP) and should not be considered a substitute for or superior to financial measures in accordance with GAAP. Management believes these non-GAAP financial measures provide investors and our management with additional useful information to measure and forecast our liquidity and operating results and to compare our liquidity and operating results on a more consistent basis against that of other companies in the markets that we serve. |
|||||||||||||||||||||||||
| THOMAS & BETTS CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| Selected Information (continued) | ||||||||||||||||||
| (In thousands, except ratios) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Reconciliation of Free Cash Flow | ||||||||||||||||||
| Quarter Ended | ||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||
| 2011 | 2010 | |||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (37,206 | ) | $ | 13,651 | |||||||||||||
| Less: Purchases of property, plant and equipment | (12,111 | ) | (5,315 | ) | ||||||||||||||
| Free Cash Flow | $ | (49,317 | ) | $ | 8,336 | |||||||||||||
| Reconciliation of Working Capital as a Percentage of Sales | ||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||
| 2011 | 2010 | 2010 | ||||||||||||||||
| Receivables, net | $ | 276,562 | $ | 230,203 | $ | 243,184 | ||||||||||||
| Inventories | 258,514 | 220,250 | 222,905 | |||||||||||||||
| Accounts payable | (185,917 | ) | (190,839 | ) | (157,390 | ) | ||||||||||||
| Working capital | $ | 349,159 | $ | 259,614 | $ | 308,699 | ||||||||||||
| Net sales - rolling 4 quarters | $ | 2,073,872 | $ | 2,004,366 | $ | 1,842,731 | ||||||||||||
| Working capital as a percentage of sales |
16.8% |
|
13.0% |
|
16.8% |
|
||||||||||||
| Reconciliation of Total Debt-to-Total Capitalization | ||||||||||||||||||
| March 31, | December 31, | |||||||||||||||||
| 2011 | 2010 | |||||||||||||||||
| Current maturities of long-term debt | $ | 326 | $ | 322 | ||||||||||||||
| Long-term debt, net of current maturities | 574,077 | 574,090 | ||||||||||||||||
| Total debt | 574,403 | 574,412 | ||||||||||||||||
| Shareholders' equity | 1,559,084 | 1,466,782 | ||||||||||||||||
| Total capitalization | $ | 2,133,487 | $ | 2,041,194 | ||||||||||||||
| Total debt-to-total capitalization |
26.9% |
|
28.1% |
|
||||||||||||||
|
Note: The Selected Information above is not calculated in accordance with Generally Accepted Accounting Principles (GAAP) and should not be considered a substitute for or superior to financial measures in accordance with GAAP. Management believes these non-GAAP financial measures provide investors and our management with additional useful information to measure and forecast our liquidity and operating results and to compare our liquidity and operating results on a more consistent basis against that of other companies in the markets that we serve. |
||||||||||||||||||
CONTACT:
Thomas & Betts Corporation
Tricia Bergeron,
901-252-8266
tricia.bergeron@tnb.com