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8-K - 8-K - Johnson Controls International plca13-3685_18k.htm

Exhibit 99.1

 

 

Investor Relations Contacts:

 

Media Contacts:

 

Antonella Franzen

 

Ira Gottlieb

 

+1-609-720-4665

 

+1-609-610-1999

 

afranzen@tyco.com

 

igottlieb@tycoint.com

 

 

 

 

 

Joe Longo

 

Brett Ludwig

 

+1-609-720-4545

 

+1-609-216-3255

 

jlongo@tyco.com

 

bludwig@tyco.com

 

 

FOR IMMEDIATE RELEASE:

 

TYCO REPORTS FIRST QUARTER 2013 EARNINGS

FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS OF $0.40 PER SHARE

AND GAAP EARNINGS OF $0.34 PER SHARE

 

·                  The Company reports first quarter revenue of $2.6 billion, with 5% revenue growth and 1% organic growth

 

·                  Diluted EPS from continuing operations before special items increases 11% over normalized first quarter 2012 results*

 

·                  Tyco’s Board of Directors proposes for shareholder approval a 7% annual dividend increase

 

·                  The Board of Directors increases authorization for share repurchases to $750 million

 

(Income and EPS amounts are attributable to Tyco common shareholders)

($ millions, except per-share amounts)

 

 

 

Q1 2013

 

Q1 2012

 

% Change

 

Revenue

 

$

2,600

 

$

2,478

 

5

%

Segment Operating Income

 

$

296

 

$

277

 

7

%

Operating Income

 

$

235

 

$

186

 

26

%

Income from Continuing Operations

 

$

159

 

$

98

 

62

%

Diluted EPS from Continuing Operations

 

$

0.34

 

$

0.21

 

62

%

Special Items

 

$

(0.06

)

$

(0.05

)

 

 

Segment Operating Income Before Special Items

 

$

318

 

$

310

 

3

%

Income from Continuing Ops Before Special Items

 

$

191

 

$

123

 

55

%

Diluted EPS from Continuing Ops Before Special Items

 

$

0.40

 

$

0.26

 

54

%

 

SCHAFFHAUSEN, Switzerland — January 29, 2013 — Tyco (NYSE: TYC) today reported $0.34 in GAAP diluted earnings per share (EPS) from continuing operations for the fiscal first quarter of 2013 and diluted EPS from continuing operations before special items of $0.40. Revenue in the quarter increased 5% versus the prior year to $2.6 billion including a 3% benefit from acquisitions. Organic revenue grew 1% in the quarter with 6% growth in products, 2% growth in service and a 3% decline in installation revenue.

 

Tyco Chief Executive Officer George Oliver said, “We’re off to a great start as the new Tyco, integrating our fire and security businesses and executing on our growth strategy. We had another very good quarter,

 


* Normalized first quarter 2012 results reflect pro forma adjustments to corporate and interest expense to reflect the impact of the separation, and include dis-synergy costs associated with the separation of the Company’s North American security operations, also as a result of the separation. See Non-GAAP reconciliations.

 



 

with a 5% increase in revenue, driven partly by our acquisition strategy, and an 11% increase in earnings per share before special items on a normalized basis.  I am especially pleased with the traction we are getting from our productivity and sourcing initiatives, and the positive impact we are seeing from our increased investments in research and development.  Overall, our performance in the first quarter is a solid beginning to fiscal 2013.”

 

Organic revenue, free cash flow, operating income, segment operating income, and diluted and normalized EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as first quarter review slides can be found at www.tyco.com on the Investor Relations portion of Tyco’s website.

 

SEGMENT RESULTS

 

The financial results presented in the tables below are in accordance with GAAP unless otherwise indicated. All dollar amounts are pre-tax and stated in millions. All comparisons are to the fiscal first quarter of 2012 unless otherwise indicated.

 

North America Systems Installation & Services

 

 

 

Q1 2013

 

Q1 2012

 

% Change

 

Revenue

 

$

976

 

$

962

 

1.5

%

Operating Income

 

$

108

 

$

86

 

26

%

Operation Margin

 

11.1

%

8.9

%

 

 

Special Items

 

$

(12

)

$

(22

)

 

 

Operating Income Before Special Items

 

$

120

 

$

108

 

11

%

Operating Margin Before Special Items

 

12.3

%

11.2

%

 

 

 

Revenue of $976 million increased 1.5% in the quarter. Service revenue increased 1% and installation revenue was flat with the prior year, for total organic revenue growth of 1%. Backlog of $2.4 billion declined 3% on a quarter sequential basis, excluding the impact of foreign currency, in line with expectations and the previously announced project selectivity in commercial security.

 

Operating income for the quarter was $108 million and the operating margin was 11.1%. Special items of $12 million consisted primarily of separation charges. Operating income before special items was $120 million and the operating margin was 12.3%. The 110 basis point improvement in operating margin before special items was driven by a higher mix of service revenue, improved execution in installation, and accelerated productivity benefits. These benefits more than offset dis-synergy costs associated with the separation of the ADT residential security business from our commercial security business, Tyco Integrated Security.

 

Rest of World Systems Installation & Services

 

 

 

Q1 2013

 

Q1 2012

 

% Change

 

Revenue

 

$

1,090

 

$

1,056

 

3

%

Operating Income

 

$

114

 

$

110

 

4

%

Operation Margin

 

10.5

%

10.4

%

 

 

Special Items

 

$

(7

)

$

(8

)

 

 

Operating Income Before Special Items

 

$

121

 

$

118

 

3

%

Operating Margin Before Special Items

 

11.1

%

11.2

%

 

 

 



 

Revenue of $1.1 billion increased 3% in the quarter, primarily driven by acquisitions. Organic revenue was flat with 3% growth in service and a 5% decline in installation. Backlog of $2.6 billion increased 3% on a quarter sequential basis, excluding the impact of foreign currency.

 

Operating income for the quarter was $114 million and the operating margin was 10.5%. Special items of $7 million consisted primarily of restructuring charges. Operating income before special items was $121 million, and the operating margin was 11.1%. The benefit of higher margin service revenue was offset by growth investments.

 

Global Products

 

 

 

Q1 2013

 

Q1 2012

 

% Change

 

Revenue

 

$

534

 

$

460

 

16

%

Operating Income

 

$

74

 

$

81

 

(9

)%

Operation Margin

 

13.9

%

17.6

%

 

 

Special Items

 

$

(3

)

$

(3

)

 

 

Operating Income Before Special Items

 

$

77

 

$

84

 

(8

)%

Operating Margin Before Special Items

 

14.4

%

18.3

%

 

 

 

Revenue of $534 million increased 16% in the quarter, including a 9% benefit due to acquisitions. Organic revenue grew 6% with growth across all three product platforms.

 

Operating income for the quarter was $74 million and the operating margin was 13.9%. Special items of $3 million consisted primarily of restructuring charges. Operating income before special items was $77 million and the operating margin was 14.4%. The year-over-year margin decrease was primarily driven by a double digit increase in research and development and sales and marketing investments. Additionally, the operating margin was impacted by a $6 million environmental remediation charge and lower sales of higher margin products due to the timing of shipments.  We estimate that these two items impacted operating margin by approximately 200 basis points.

 

OTHER ITEMS

 

·                  Cash from operating activities was negative $39 million and free cash flow was negative $133 million, which included a cash outflow of $103 million primarily related to separation and restructuring activities. Adjusted free cash outflow for the quarter was $30 million. The Company completed the quarter with $501 million in cash and cash equivalents.

·                  Corporate expense before special items was $58 million for the quarter.

·                  The tax rate before special items was 17.4% for the quarter.

·                  On December 21, 2012 the Company announced that its Board of Directors recommended shareholders approve a dividend increase of approximately 7% from $0.60 to $0.64 per share at the Company’s annual general meeting of shareholders, to be held on March 6, 2013.

·                  The Company purchased 1.8 million shares for $50 million during the quarter, and the Company’s Board of Directors approved an additional $600 million in repurchase authority to the existing $150 million.

 

ABOUT TYCO

 

Tyco (NYSE: TYC) is the world’s largest pure-play fire protection and security company. Tyco provides more than three million customers around the globe with the latest fire protection and security products and services. A company with $10+ billion in annual revenue, Tyco has over 70,000 employees in more than 1,000 locations

 



 

across 50 countries serving various end markets, including commercial, institutional, governmental, retail, industrial, energy, residential and small business. For more information, visit the new www.tyco.com.

 

CONFERENCE CALL AND WEBCAST

 

Management will discuss the company’s first quarter results for 2013 during a conference call and webcast today beginning at 9:00 a.m. ET. Today’s conference call for investors can be accessed in the following ways:

 

·                  At Tyco’s website: http://investors.tyco.com.

·                  By telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the telephone dial-in number in the United States is (800) 857-9797. The telephone dial-in number for participants outside the United States is (517) 308-9262, passcode “Tyco”.

·                  An audio replay of the conference call will be available at 11:00 a.m. EST on January 29, 2013 and ending at 11:59 p.m. EST on February 5, 2013.The replay dial-in number for participants in the United States is (800) 568-4850. For participants outside the United States, the replay dial-in number is (203) 369-3813, passcode 3151.

·                  A webcast replay of the conference call will be available on the “Presentations & Webcasts” section of Tyco’s website: http://investors.tyco.com.

 

NON-GAAP MEASURES

 

Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income and segment operating income, and normalized EPS, in each case “before special items,” are non-GAAP measures and should not be considered replacements for GAAP results.

 

Organic revenue is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net revenue (the most comparable GAAP measure) and organic revenue (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures, and other changes that either do not reflect the underlying results and trends of the Company’s businesses or are not completely under management’s control. There are limitations associated with organic revenue, such as the fact that, as presented herein, the metric may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using organic revenue in combination with the GAAP numbers. Organic revenue may be used as a component in the company’s incentive compensation plans.

 

FCF is a useful measure of the company’s cash that permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation and is available to service debt and make investments. The difference between Cash Flows from Operating Activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash flows that the company believes are useful to identify. It, or a measure that is based on it, may be used as a component in the company’s incentive compensation plans. The difference reflects the impact from:

 

·                  net capital expenditures,

·                  dealer generated accounts and bulk accounts purchased,

·                  cash paid for purchase accounting and holdback liabilities, and

·                  voluntary pension contributions.

 



 

Capital expenditures and dealer generated and bulk accounts purchased are subtracted because they represent long-term investments that are required for normal business activities. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general corporate uses. Voluntary pension contributions are added because this activity is driven by economic financing decisions rather than operating activity. In addition, from time to time the company may present adjusted free cash flow, which is free cash flow, adjusted to exclude the cash impact of the special items highlighted below. This number provides information to investors regarding the cash impact of certain items management believes are useful to identify, as described below.

 

The limitation associated with using these cash flow metrics is that they adjust for cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and therefore may imply that there is less or more cash that is available for the company’s programs than the most comparable GAAP measure. Furthermore, these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using FCF in combination with the GAAP cash flow numbers.

 

The company has presented its income and EPS from continuing operations, operating income and segment operating income before special items. Special items include charges and gains related to divestitures, acquisitions, restructurings, impairments, certain changes to accounting methodologies, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends of the company or business segment, as applicable. The company utilizes these measures to assess overall operating performance and segment level core operating performance, as well as to provide insight to management in evaluating overall and segment operating plan execution and underlying market conditions. The Company also presents its effective tax rate as adjusted for special items for consistency, and from time to time presents corporate expense excluding special items. One or more of these measures may be used as components in the company’s incentive compensation plans. These measures are useful for investors because they may permit more meaningful comparisons of the company’s underlying operating results and business trends between periods. The difference between income and EPS from continuing operations before special items and income and EPS from continuing operations (the most comparable GAAP measures) consists of the impact of the special items noted above on the applicable GAAP measure. The limitation of these measures is that they exclude the impact (which may be material) of items that increase or decrease the company’s reported GAAP metrics, and these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using the non-GAAP measures in combination with the most comparable GAAP measures in order to better understand the amounts, character and impact of any increase or decrease on reported results.

 

The company provides general corporate services to its segments and those costs are reported in the “Corporate and Other” segment. This segment’s operating income (loss) is presented as “Corporate Expense.” Segment Operating Income represents Tyco’s operating income excluding the Corporate and Other segment, and reflects the results of Tyco’s three operating segments. Segment Operating Income before special items reflects GAAP operating income adjusted for the special items noted in the paragraph above.

 

In order to provide more meaningful comparison of fiscal 2013 results to fiscal 2012 results, normalized EPS before special items is presented. Normalized EPS adjusts fiscal 2012 GAAP results by replacing the GAAP interest and corporate expenses reported for fiscal 2012 (on a pre-separation basis) with the interest and corporate expenses estimated to be incurred in fiscal 2013 (on a post-separation basis), and adding estimated dis-synergy costs related to the separation of the Company’s North American security business to fiscal 2012 results. Normalized EPS before special items further adjusts normalized EPS for the special items described above.

 



 

FORWARD-LOOKING STATEMENTS

 

This press release contains a number of forward-looking statements. Words, and variations of words, such as “expect”, “intend”, “will”, “anticipate”, “believe”, “propose”, “potential”, “continue”, “opportunity”, “estimate”, “project” and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, revenue, operating income and other financial projections, statements regarding the health and growth prospects of the industries and end markets in which Tyco operates, the leadership, resources, potential, priorities, and opportunities for Tyco in the future, statements regarding Tyco’s credit profile, capital allocation priorities and other capital market related activities, and statements regarding Tyco’s acquisition, divestiture, restructuring and other productivity initiatives. The forward-looking statements in this press release are based on current expectations and assumptions that are subject to risks and uncertainties, many of which are outside of our control, and could cause results to materially differ from expectations. Such risks and uncertainties include, but are not limited to: economic, business, competitive, technological or regulatory factors that adversely impact Tyco or the markets and industries in which it competes; unanticipated expenses such as litigation or legal settlement expenses; tax law changes; and industry specific events or conditions that may adversely impact revenue or other financial projections. Actual results could differ materially from anticipated results. Tyco is under no obligation (and expressly disclaims any obligation) to update its forward-looking statements. More detailed information about these and other factors is set forth in Tyco’s Annual Report on Form 10-K for the fiscal year ended Sept. 28, 2012 and in subsequent filings with the Securities and Exchange Commission.

 

###

 



 

TYCO INTERNATIONAL LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(Unaudited)

 

 

 

Quarters Ended

 

 

 

December 28,

 

December 30,

 

 

 

2012

 

2011

 

Revenue from product sales

 

$

1,443

 

$

1,369

 

Service revenue

 

1,157

 

1,109

 

Net revenue

 

2,600

 

2,478

 

Cost of product sales

 

1,004

 

769

 

Cost of services

 

664

 

810

 

Selling, general and administrative expenses

 

682

 

677

 

Separation costs

 

5

 

 

Restructuring and asset impairment charges, net

 

10

 

36

 

Operating income

 

235

 

186

 

Interest income

 

4

 

5

 

Interest expense

 

(24

)

(58

)

Other (expense) income, net

 

(9

)

2

 

Income from continuing operations before income taxes

 

206

 

135

 

Income tax expense

 

(39

)

(27

)

Equity loss in earnings of unconsolidated subsidiaries

 

(6

)

(10

)

Income from continuing operations

 

161

 

98

 

Income from discontinued operations, net of income taxes

 

4

 

224

 

Net income

 

165

 

322

 

Less: noncontrolling interest in subsidiaries net income

 

2

 

 

Net income attributable to Tyco common shareholders

 

$

163

 

$

322

 

 

 

 

 

 

 

Amounts attributable to Tyco common shareholders:

 

 

 

 

 

Income from continuing operations

 

$

159

 

$

98

 

Income from discontinued operations

 

4

 

224

 

Net income attributable to Tyco common shareholders

 

$

163

 

$

322

 

 

 

 

 

 

 

Basic earnings per share attributable to Tyco common shareholders:

 

 

 

 

 

Income from continuing operations

 

$

0.34

 

$

0.21

 

Income from discontinued operations

 

0.01

 

0.48

 

Net income attributable to Tyco common shareholders

 

$

0.35

 

$

0.69

 

Diluted earnings per share attributable to Tyco common shareholders:

 

 

 

 

 

Income from continuing operations

 

$

0.34

 

$

0.21

 

Income from discontinued operations

 

 

0.48

 

Net income attributable to Tyco common shareholders

 

$

0.34

 

$

0.69

 

 

 

 

 

 

 

Weighted-average number of shares outstanding:

 

 

 

 

 

Basic

 

466

 

464

 

Diluted

 

473

 

469

 

 

NOTE:                    These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2012.

 



 

TYCO INTERNATIONAL LTD.

RESULTS OF SEGMENTS

(in millions)

(Unaudited)

 

 

 

Quarters Ended

 

 

 

 

 

December 28,

 

 

 

December 30,

 

 

 

 

 

2012

 

 

 

2011

 

 

 

Net Revenue

 

 

 

 

 

 

 

 

 

NA Installation & Services

 

$

976

 

 

 

$

962

 

 

 

ROW Installation & Services

 

1,090

 

 

 

1,056

 

 

 

Global Products

 

534

 

 

 

460

 

 

 

Total Net Revenue

 

$

2,600

 

 

 

$

2,478

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income and Margin

 

 

 

 

 

 

 

 

 

NA Installation & Services

 

$

108

 

11.1

%

$

86

 

8.9

%

ROW Installation & Services

 

114

 

10.5

%

110

 

10.4

%

Global Products

 

74

 

13.9

%

81

 

17.6

%

Corporate and Other

 

(61

)

N/M

 

(91

)

N/M

 

Operating Income and Margin

 

$

235

 

9.0

%

$

186

 

7.5

%

 



 

TYCO INTERNATIONAL LTD.

CONSOLIDATED BALANCE SHEETS

(in millions)

(Unaudited)

 

 

 

December 28,

 

September 28,

 

 

 

2012

 

2012

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

501

 

$

844

 

Accounts receivable, net

 

1,709

 

1,711

 

Inventories

 

664

 

634

 

Prepaid expenses and other current assets

 

912

 

850

 

Deferred income taxes

 

295

 

295

 

Total current assets

 

4,081

 

4,334

 

 

 

 

 

 

 

Property, plant and equipment, net

 

1,682

 

1,670

 

Goodwill

 

4,406

 

4,377

 

Intangible assets, net

 

765

 

780

 

Other assets

 

1,191

 

1,204

 

Total Assets

 

$

12,125

 

$

12,365

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Loans payable and current maturities of long-term debt

 

$

10

 

$

10

 

Accounts payable

 

839

 

897

 

Accrued and other current liabilities

 

1,522

 

1,788

 

Deferred revenue

 

364

 

402

 

Total current liabilities

 

2,735

 

3,097

 

 

 

 

 

 

 

Long-term debt

 

1,481

 

1,481

 

Deferred revenue

 

416

 

424

 

Other liabilities

 

2,337

 

2,341

 

Total Liabilities

 

6,969

 

7,343

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

12

 

12

 

 

 

 

 

 

 

Total Tyco shareholders’ equity

 

5,126

 

4,994

 

Nonredeemable noncontrolling interest

 

18

 

16

 

Total Equity

 

5,144

 

5,010

 

Total Liabilities, Redeemable Noncontrolling Interest and Equity

 

$

12,125

 

$

12,365

 

 

Note: These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2012.

 



 

TYCO INTERNATIONAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

 

 

 

For the Quarters Ended

 

 

 

December 28,

 

December 30,

 

 

 

2012

 

2011

 

Cash Flows From Operating Activities:

 

 

 

 

 

Net income attributable to Tyco common shareholders

 

$

163

 

$

322

 

Noncontrolling interest in subsidiaries net income

 

2

 

 

Income from discontinued operations, net of income taxes

 

(4

)

(224

)

Income from continuing operations

 

161

 

98

 

Adjustments to reconcile net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

105

 

101

 

Non-cash compensation expense

 

14

 

21

 

Deferred income taxes

 

10

 

2

 

Provision for losses on accounts receivable and inventory

 

18

 

11

 

Other non-cash items

 

6

 

40

 

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

 

 

 

 

 

Accounts receivable, net

 

(9

)

43

 

Contracts in progress

 

(2

)

(14

)

Inventories

 

(29

)

(33

)

Prepaid expenses and other current assets

 

31

 

(52

)

Accounts payable

 

(61

)

(34

)

Accrued and other liabilities

 

(228

)

(159

)

Deferred revenue

 

(47

)

(28

)

Other

 

(8

)

(72

)

Net cash used in operating activities

 

(39

)

(76

)

Net cash provided by discontinued operating activities

 

4

 

414

 

Cash Flows From Investing Activities:

 

 

 

 

 

Capital expenditures

 

(90

)

(90

)

Proceeds from disposal of assets

 

3

 

1

 

Acquisition of businesses, net of cash acquired

 

(23

)

(95

)

Acquisition of dealer generated customer accounts and bulk account purchases

 

(6

)

(6

)

Sales and maturities of investments

 

11

 

32

 

Purchases of investments

 

(91

)

(23

)

Other

 

8

 

19

 

Net cash used in investing activities

 

(188

)

(162

)

Net cash used in discontinued investing activities

 

 

(279

)

Cash Flows From Financing Activities:

 

 

 

 

 

Proceeds from issuance of short-term debt

 

 

411

 

Repayment of short-term debt

 

 

(376

)

Proceeds from exercise of share options

 

46

 

29

 

Dividends paid

 

(70

)

(116

)

Repurchase of common shares by treasury

 

(50

)

(200

)

Transfer (to) from discontinued operations

 

(29

)

82

 

Other

 

(16

)

(19

)

Net cash used in financing activities

 

(119

)

(189

)

Net cash provided by (used in) discontinued financing activities

 

29

 

(82

)

Effect of currency translation on cash

 

3

 

(3

)

Net decrease in cash and cash equivalents

 

(310

)

(377

)

Less: net increase in cash and cash equivalents related to discontinued operations

 

(33

)

(53

)

Cash and cash equivalents at beginning of period

 

844

 

1,229

 

Cash and cash equivalents at end of period

 

$

501

 

$

799

 

 

 

 

 

 

 

Reconciliation to “Free Cash Flow”:

 

 

 

 

 

Net cash used in operating activities

 

$

(39

)

$

(76

)

Capital expenditures, net

 

(87

)

(89

)

Acquisition of dealer generated customer accounts and bulk account purchases

 

(6

)

(6

)

Purchase accounting and holdback liabilities

 

(1

)

 

Free Cash Flow

 

$

(133

)

$

(171

)

 

 

 

 

 

 

Reconciliation to “Adjusted Free Cash Flow”:

 

 

 

 

 

Free Cash Flow

 

$

(133

)

$

(171

)

Cash restructuring costs

 

19

 

23

 

Cash (receipt)/payment from Covidien/TE Connectivity

 

(5

)

 

Separation costs

 

73

 

 

Separation costs-capital expenditures

 

3

 

 

Legal settlement

 

13

 

 

Adjusted Free Cash Flow

 

$

(30

)

$

(148

)

 

NOTE: Free cash flow is a non-GAAP measure.  See description of non-GAAP measures contained in this release.

 


 


 

Tyco International Ltd.

Organic Growth Reconciliation - Revenue

(in millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 28, 2012

 

 

 

 

 

 

 

Net Revenue for the

 

Base Year

 

Adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue for the

 

 

 

Quarter Ended

 

Adjustments

 

2012 Base

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

December 30, 2011

 

(Divestitures)

 

Revenue

 

Foreign Currency

 

Acquisitions

 

Other (2)

 

Organic Revenue (1)

 

December 28, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA Installation & Services

 

$

962

 

$

 

0.0

%

$

962

 

$

4

 

0.4

%

$

2

 

0.2

%

$

 

0.0

%

$

8

 

0.8

%

$

976

 

1.5

%

ROW Installation & Services

 

1,056

 

 

0.0

%

1,056

 

3

 

0.3

%

35

 

3.3

%

 

0.0

%

(4

)

-0.4

%

1,090

 

3.2

%

Global Products

 

460

 

 

0.0

%

460

 

2

 

0.4

%

39

 

8.5

%

7

 

1.5

%

26

 

5.7

%

534

 

16.1

%

Total Net Revenue

 

$

2,478

 

$

 

0.0

%

$

2,478

 

$

9

 

0.4

%

$

76

 

3.1

%

$

7

 

0.3

%

$

30

 

1.2

%

$

2,600

 

4.9

%

 


(1)                                 Organic revenue growth percentage based on adjusted 2012 base revenue.

 

(2)                                 Amount represents contractual revenue from ADT under the 2012 Separation and Distribution Agreement which is excluded from the organic revenue calculation.

 



 

Earnings Per Share Summary

(Unaudited)

 

 

 

Quarter Ended

 

Quarter Ended

 

 

 

 

 

Dec. 28, 2012

 

Dec. 30, 2011

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP)

 

$

0.34

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

expense / (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

0.01

 

0.02

 

 

 

 

 

 

 

 

 

 

 

Separation costs included in SG&A

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

Asset impairment charges

 

 

0.03

 

 

 

 

 

 

 

 

 

 

 

Separation costs

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

Tax items

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

2012 Tax Sharing Agreement

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

Total Before Special Items

 

$

0.40

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

Anticipated dis-synergies in NA I&S segment

 

 

 

(0.01

)

Represents forecast amounts for fiscal 2013

 

 

 

 

 

 

Corporate expense from $86M to expected $56M

 

 

 

0.05

 

 

 

 

 

 

 

Net interest expense from $53M to expected $25M

 

 

 

0.04

 

 

 

 

 

 

 

Effective tax rate from 23.1% to expected 19.5%

 

 

 

0.02

 

 

 

 

 

 

 

 

 

Q1 FY12 “Normalized” EPS

 

 

 

$

0.36

 

 

 

 

 



 

Tyco International Ltd.

For the Quarter Ended December 28, 2012

(in millions, except per share data)

(Unaudited)

expense / (benefit)

 

 

 

NA Installation

 

ROW Installation

 

Global

 

Segment

 

Corporate

 

Total

 

Segments

 

& Service

 

& Service

 

Products

 

Revenue

 

and Other

 

Revenue

 

Revenue (GAAP)

 

$

976

 

$

1,090

 

$

534

 

$

2,600

 

 

 

$

2,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from

 

EPS from

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing

 

Continuing

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Equity in earnings

 

Noncontrolling

 

Attributable

 

Attributable

 

 

 

NA Installation

 

 

 

ROW Installation

 

 

 

Global

 

 

 

Operating

 

 

 

Corporate

 

 

 

Operating

 

 

 

Interest

 

Other

 

Income

 

of unconsolidated

 

Interest

 

to Tyco

 

to Tyco

 

 

 

& Service

 

Margin

 

& Service

 

Margin

 

Products

 

Margin

 

Income

 

Margin

 

and Other

 

Margin

 

Income

 

Margin

 

(Expense), net

 

(Expense), net

 

Tax (Expense)

 

subsidiaries

 

(Expense)

 

Shareholders

 

Shareholders

 

Operating Income (GAAP)

 

$

108

 

11.1

%

$

114

 

10.5

%

$

74

 

13.9

%

$

296

 

11.4

%

$

(61

)

N/M

 

$

235

 

9.0

%

$

(20

)

$

(9

)

$

(39

)

$

(6

)

$

(2

)

$

159

 

$

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

 

 

 

 

7

 

 

 

2

 

 

 

9

 

 

 

1

 

 

 

10

 

 

 

 

 

 

 

(2

)

 

 

 

 

8

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs included in SG&A

 

12

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

1

 

 

 

13

 

 

 

 

 

 

 

(5

)

 

 

 

 

8

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gains) / losses on divestitures, net included in SG&A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition / integration costs

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asbestos

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

4

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 Tax Sharing Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

10

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Before Special Items

 

$

120

 

12.3

%

$

121

 

11.1

%

$

77

 

14.4

%

$

318

 

12.2

%

$

(58

)

N/M

 

$

260

 

10.0

%

$

(20

)

$

1

 

$

(42

)

$

(6

)

$

(2

)

$

191

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding - Before Special Items

 

473

 

 



 

Tyco International Ltd.

For the Quarter Ended December 30, 2011

(in millions, except per share data)

(Unaudited)

expense / (benefit)

 

 

 

NA Installation

 

ROW Installation

 

Global

 

Segment

 

Corporate

 

Total

 

Segments

 

& Service

 

& Service

 

Products

 

Revenue

 

and Other

 

Revenue

 

Revenue (GAAP)

 

$

962

 

$

1,056

 

$

460

 

$

2,478

 

 

 

$

2,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from

 

EPS from

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing

 

Continuing

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

Operations

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Equity (loss) in earnings

 

Attributable

 

Attributable

 

 

 

NA Installation

 

 

 

ROW Installation

 

 

 

Global

 

 

 

Operating

 

 

 

Corporate

 

 

 

Operating

 

 

 

Interest

 

Other

 

Income

 

of unconsolidated

 

to Tyco

 

to Tyco

 

 

 

& Service

 

Margin

 

& Service

 

Margin

 

Products

 

Margin

 

Income

 

Margin

 

and Other

 

Margin

 

Income

 

Margin

 

(Expense), net

 

(Expense), net

 

Tax (Expense)

 

subsidiary

 

Shareholders

 

Shareholders

 

Operating Income (GAAP)

 

$

86

 

8.9

%

$

110

 

10.4

%

$

81

 

17.6

%

$

277

 

11.2

%

$

(91

)

N/M

 

$

186

 

7.5

%

$

(53

)

$

2

 

$

(27

)

$

(10

)

$

98

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

1

 

 

 

6

 

 

 

1

 

 

 

8

 

 

 

5

 

 

 

13

 

 

 

 

 

 

 

(4

)

 

 

9

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition / integration costs

 

1

 

 

 

1

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

(1

)

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset impairment charges

 

20

 

 

 

1

 

 

 

2

 

 

 

23

 

 

 

 

 

 

 

23

 

 

 

 

 

 

 

(8

)

 

 

15

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Before Special Items

 

$

108

 

11.2

%

$

118

 

11.2

%

$

84

 

18.3

%

$

310

 

12.5

%

$

(86

)

N/M

 

$

224

 

9.0

%

$

(53

)

$

2

 

$

(40

)

$

(10

)

$

123

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding - Before Special Items

 

469