Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Vertiv Holdings Co | vrt-20210224.htm |
| EX-99.1 - EX-99.1 - Vertiv Holdings Co | exhibit991vrt02242021.htm |
Exhibit 99.2
Vertiv Holdings Co
Performance Metric Update
Beginning in the first quarter of 2021, adjusted operating profit (loss) and adjusted earnings (loss) per share will be the primary operating metrics used by Vertiv. This exhibit is intended to align the Company’s historical externally presented financial information with the internal performance metrics the Company will use in 2021 and beyond. The information presented in this exhibit reflects the Company’s financial information for 2020, 2019 and 2018 in this new format.
Reconciliation of GAAP and non-GAAP Financial Measures
To supplement this press release, we have included certain non-GAAP financial measures that reflect the historical financial results presented in the format of the performance metrics we are beginning to report in 2021. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Vertiv’s non-GAAP financial measures include:
•Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles;
•Adjusted operating profit (loss) margins, which represents adjusted operating profit (loss) divided by net sales;
•Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles.
1
Vertiv Holdings Co
2021 Guidance
Reconciliation of GAAP Operating Profit to Non-GAAP Adjusted Financial Performance
Full Year 2021 (4) | |||||||||||||||||||||||||||||||||||
| Net Sales | Adjusted Operating Profit (1) | Interest expense, net | Income tax expense | Net earnings (loss) | Diluted EPS (2)(3) | ||||||||||||||||||||||||||||||
| GAAP | $ | 4,775.0 | $ | 449.0 | $ | 93.0 | $ | 107.0 | $ | 249.0 | $ | 0.69 | |||||||||||||||||||||||
| Amortization of intangibles | — | 126.0 | — | — | 126.0 | 0.35 | |||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 4,775.0 | $ | 575.0 | $ | 93.0 | $ | 107.0 | $ | 375.0 | $ | 1.04 | |||||||||||||||||||||||
First Quarter 2021 (4) | |||||||||||||||||||||||||||||||||||
| Net Sales | Adjusted Operating Profit (1) | Interest expense, net | Income tax expense | Net earnings (loss) | Diluted EPS (2)(3) | ||||||||||||||||||||||||||||||
| GAAP | $ | 1,040.0 | $ | 43.0 | $ | 24.0 | $ | 12.0 | $ | 7.0 | $ | 0.02 | |||||||||||||||||||||||
| Amortization of intangibles | — | 32.0 | — | — | 32.0 | 0.09 | |||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 1,040.0 | $ | 75.0 | $ | 24.0 | $ | 12.0 | $ | 39.0 | $ | 0.11 | |||||||||||||||||||||||
(1)Items previously included in Other deductions, net will now be included in Operating Profit.
(2)First quarter and full year 2021 GAAP Diluted EPS and adjusted EPS based on an estimated 362 million shares (~351 million basic shares outstanding and ~11 million potential dilutive shares).
(3)Adjusted EPS will not use a pro-forma share count in 2021 and subsequent years.
(4)Represents mid-point of guidance range.
2
Vertiv Holdings Co
Performance Metric Update
2020 Data
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)(Unaudited)
(Dollars in millions except for per share data)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2020 | |||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Net sales - products | $ | 647.2 | $ | 750.2 | $ | 891.1 | $ | 1,020.1 | $ | 3,308.8 | |||||||||||||||||||
| Net sales - services | 250.1 | 255.5 | 270.9 | 285.4 | 1,061.8 | ||||||||||||||||||||||||
| Net sales | 897.3 | 1,005.7 | 1,162.0 | 1,305.5 | 4,370.6 | ||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||
| Cost of sales - products | 463.2 | 515.3 | 596.7 | 715.1 | 2,290.5 | ||||||||||||||||||||||||
| Cost of sales - services | 147.1 | 144.0 | 152.3 | 163.2 | 606.4 | ||||||||||||||||||||||||
| Cost of sales | 610.3 | 659.3 | 749.0 | 878.3 | 2,896.9 | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 264.8 | 226.3 | 251.7 | 265.5 | 1,008.4 | ||||||||||||||||||||||||
| Amortization of intangibles | 32.4 | 32.2 | 32.5 | 31.6 | 128.7 | ||||||||||||||||||||||||
| Restructuring costs | (1.1) | 2.4 | 71.7 | 0.9 | 73.9 | ||||||||||||||||||||||||
| Foreign currency (gain) loss, net | 1.8 | 2.8 | 11.7 | 9.7 | 26.0 | ||||||||||||||||||||||||
| Asset Impairments | — | 12.3 | 9.4 | — | 21.7 | ||||||||||||||||||||||||
| Other operating expense (income) | 1.3 | (0.2) | 0.9 | (0.6) | 1.5 | ||||||||||||||||||||||||
| Operating profit (loss) | (12.2) | 70.6 | 35.1 | 120.1 | 213.5 | ||||||||||||||||||||||||
| Interest expense, net | 68.9 | 30.1 | 26.4 | 25.0 | 150.4 | ||||||||||||||||||||||||
| Loss on extinguishment of debt | 174.0 | — | — | — | 174.0 | ||||||||||||||||||||||||
| Income (loss) before income taxes | (255.1) | 40.5 | 8.7 | 95.1 | (110.9) | ||||||||||||||||||||||||
| Income tax expense | 13.8 | 14.3 | 24.5 | 20.2 | 72.7 | ||||||||||||||||||||||||
| Net income (loss) | $ | (268.9) | $ | 26.2 | $ | (15.8) | $ | 74.9 | $ | (183.6) | |||||||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||||||||
| Basic | $ | (1.12) | $ | 0.08 | $ | (0.05) | $ | 0.23 | $ | (0.60) | |||||||||||||||||||
| Diluted | $ | (1.12) | $ | 0.08 | $ | (0.05) | $ | 0.22 | $ | (0.60) | |||||||||||||||||||
| Weighted-average shares outstanding | |||||||||||||||||||||||||||||
| Basic | 240,656,864 | 328,411,705 | 328,411,705 | 330,335,268 | 307,076,397 | ||||||||||||||||||||||||
| Diluted | 240,656,864 | 331,136,080 | 328,411,705 | 345,136,798 | 307,076,397 | ||||||||||||||||||||||||
3
Segment information
| Operating profit (loss) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2020 | ||||||||||||||||||||||||
| Americas | $ | 91.5 | $ | 130.0 | $ | 133.1 | $ | 142.4 | $ | 497.0 | |||||||||||||||||||
| Asia Pacific | 20.9 | 56.1 | 53.6 | 66.5 | 197.1 | ||||||||||||||||||||||||
| Europe, Middle East & Africa | 20.8 | 27.5 | 0.9 | 56.3 | 105.5 | ||||||||||||||||||||||||
| Total reportable segments | 133.2 | 213.6 | 187.6 | 265.2 | 799.6 | ||||||||||||||||||||||||
| Foreign currency gain (loss) | (1.8) | (2.8) | (11.7) | (9.7) | (26.0) | ||||||||||||||||||||||||
Corporate and other (1) | (111.2) | (108.0) | (108.3) | (103.8) | (431.4) | ||||||||||||||||||||||||
| Total corporate, other and eliminations | (113.0) | (110.8) | (120.0) | (113.5) | (457.4) | ||||||||||||||||||||||||
| Amortization of intangibles | (32.4) | (32.2) | (32.5) | (31.6) | (128.7) | ||||||||||||||||||||||||
| Operating profit (loss) | $ | (12.2) | $ | 70.6 | $ | 35.1 | 120.1 | $ | 213.5 | ||||||||||||||||||||
Reconciliation from operating profit (loss) to adjusted operating profit (loss)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2020 | |||||||||||||||||||||||||
| Operating profit (loss) | $ | (12.2) | $ | 70.6 | $ | 35.1 | $ | 120.1 | $ | 213.5 | |||||||||||||||||||
| Amortization of intangibles | 32.4 | 32.2 | 32.5 | 31.6 | 128.7 | ||||||||||||||||||||||||
| Adjusted operating profit (loss) | 20.2 | 102.8 | 67.6 | 151.7 | 342.2 | ||||||||||||||||||||||||
Other summarized historical information
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2020 | |||||||||||||||||||||||||
Net sales (2) | |||||||||||||||||||||||||||||
| Americas | $ | 466.7 | $ | 484.7 | $ | 532.0 | $ | 557.2 | $ | 2,040.6 | |||||||||||||||||||
| APAC | 223.9 | 322.8 | 379.6 | 442.0 | 1,368.4 | ||||||||||||||||||||||||
| EMEA | 206.7 | 198.2 | $ | 250.4 | 306.3 | 961.6 | |||||||||||||||||||||||
| Total reportable segments | $ | 897.3 | $ | 1,005.7 | $ | 1,162.0 | $ | 1,305.5 | $ | 4,370.6 | |||||||||||||||||||
| Adjusted operating profit (loss) | |||||||||||||||||||||||||||||
| Americas | $ | 91.5 | $ | 130.0 | $ | 133.1 | $ | 142.4 | $ | 497.0 | |||||||||||||||||||
| APAC | 20.9 | 56.1 | 53.6 | 66.5 | 197.1 | ||||||||||||||||||||||||
| EMEA | 20.8 | 27.5 | 0.9 | 56.3 | 105.5 | ||||||||||||||||||||||||
Corporate (1) | (113.0) | (110.8) | (120.0) | (113.5) | (457.4) | ||||||||||||||||||||||||
| Total | $ | 20.2 | $ | 102.8 | $ | 67.6 | $ | 151.7 | $ | 342.2 | |||||||||||||||||||
Adjusted operating profit (loss) margins (3) | |||||||||||||||||||||||||||||
| Americas | 19.6 | % | 26.8 | % | 25.0 | % | 25.6 | % | 24.4 | % | |||||||||||||||||||
| APAC | 9.3 | % | 17.4 | % | 14.1 | % | 15.0 | % | 14.4 | % | |||||||||||||||||||
| EMEA | 10.1 | % | 13.9 | % | 0.4 | % | 18.4 | % | 11.0 | % | |||||||||||||||||||
| Total | 2.3 | % | 10.2 | % | 5.8 | % | 11.6 | % | 7.8 | % | |||||||||||||||||||
(1)Corporate costs consist of headquarters management costs, other incentive compensation, global digital costs, and costs that support global product platform development and offering management.
(2)Segment net sales are presented excluding intercompany sales.
(3)Adjusted operating profit (loss) margins calculated as adjusted operating profit (loss) divided by net sales
4
Reconciliation of historically reported adjusted EBITDA by region to adjusted operating profit (loss) by region (1)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2020 | |||||||||||||||||||||||||
| (A) Adjusted EBITDA | |||||||||||||||||||||||||||||
| Americas | $ | 101.1 | $ | 137.2 | 161.8 | 150.4 | $ | 550.5 | |||||||||||||||||||||
| APAC | 28.5 | 58.7 | 67.2 | 70.6 | 225.0 | ||||||||||||||||||||||||
| EMEA | 27.6 | 33.0 | 46.5 | 61.1 | 168.1 | ||||||||||||||||||||||||
| Corporate | (86.8) | (84.1) | (96.8) | (95.2) | (362.7) | ||||||||||||||||||||||||
| Total | $ | 70.4 | $ | 144.8 | 178.7 | 186.9 | $ | 580.9 | |||||||||||||||||||||
(B) Depreciation and Amortization (2) | |||||||||||||||||||||||||||||
| Americas | $ | 29.8 | $ | 29.8 | $ | 29.6 | $ | 29.2 | $ | 118.4 | |||||||||||||||||||
| APAC | 8.5 | 8.6 | 8.5 | 9.9 | 35.5 | ||||||||||||||||||||||||
| EMEA | 5.9 | 6.0 | 6.1 | 6.9 | 24.8 | ||||||||||||||||||||||||
| Corporate | 6.3 | 5.6 | 6.0 | 6.4 | 24.4 | ||||||||||||||||||||||||
| Total | $ | 50.5 | $ | 50.0 | $ | 50.2 | $ | 52.4 | $ | 203.1 | |||||||||||||||||||
| (C) Historical EBITDA Adjustments | |||||||||||||||||||||||||||||
| Americas | $ | 8.7 | $ | 0.8 | $ | 23.3 | $ | 2.5 | $ | 35.3 | |||||||||||||||||||
| APAC | 6.0 | (0.8) | 14.0 | 2.1 | 21.2 | ||||||||||||||||||||||||
| EMEA | 5.4 | 2.9 | 43.1 | 1.4 | 52.8 | ||||||||||||||||||||||||
Corporate (3) | 12.0 | 21.3 | 13.0 | 8.4 | 55.0 | ||||||||||||||||||||||||
| Total | $ | 32.1 | $ | 24.2 | $ | 93.4 | $ | 14.4 | $ | 164.3 | |||||||||||||||||||
| (D) Amortization of Intangibles | |||||||||||||||||||||||||||||
| Americas | $ | 23.4 | $ | 23.3 | $ | 23.4 | $ | 22.2 | $ | 92.3 | |||||||||||||||||||
| APAC | 5.9 | 5.8 | 5.9 | 6.1 | 23.6 | ||||||||||||||||||||||||
| EMEA | 3.1 | 3.1 | 3.2 | 3.3 | 12.8 | ||||||||||||||||||||||||
| Corporate | — | — | — | — | — | ||||||||||||||||||||||||
| Total | $ | 32.4 | $ | 32.2 | $ | 32.5 | $ | 31.6 | $ | 128.7 | |||||||||||||||||||
| (E) Foreign Currency | |||||||||||||||||||||||||||||
| Americas | $ | 5.5 | 0.1 | 0.8 | $ | 1.5 | 7.9 | ||||||||||||||||||||||
| APAC | 1.0 | (0.6) | 3.0 | 1.8 | 5.2 | ||||||||||||||||||||||||
| EMEA | 1.4 | 0.3 | 0.4 | 0.2 | 2.2 | ||||||||||||||||||||||||
| Corporate | (7.9) | 0.2 | (4.2) | (3.5) | (15.3) | ||||||||||||||||||||||||
| Total | $ | — | — | — | $ | — | — | ||||||||||||||||||||||
| (A) - (B) - (C) + (D) + (E) = Adjusted Operating Profit (Loss) | |||||||||||||||||||||||||||||
| Americas | $ | 91.5 | $ | 130.0 | $ | 133.1 | $ | 142.4 | $ | 497.0 | |||||||||||||||||||
| APAC | 20.9 | 56.1 | 53.6 | 66.5 | 197.1 | ||||||||||||||||||||||||
| EMEA | 20.8 | 27.5 | 0.9 | 56.3 | 105.5 | ||||||||||||||||||||||||
| Corporate | (113.0) | (110.8) | (120.0) | (113.5) | (457.4) | ||||||||||||||||||||||||
| Total | $ | 20.2 | $ | 102.8 | $ | 67.6 | $ | 151.7 | $ | 342.2 | |||||||||||||||||||
(1)In order to align our historical presentation of our new operating metric of adjusted operating profit (loss), certain reclassifications have been made between the reportable business segments and Corporate that do not impact any of the totals above. Going forward, prior period presentation of segment operating profit (loss) will be recast to reflect these reclassifications.
(2)Includes amortization of both software and intangible assets.
(3)For the quarter ended March 31, 2020 and the year ended December 31, 2020 adjusting items excludes the $174.0 million loss on debt extinguishment as that is presented below Adjusted Operating Profit (loss) in our revised financial statement presentation.
5
Reconciliation of Diluted EPS to Non-GAAP Adjusted EPS
| First Quarter | |||||||||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Loss on extinguishment of debt | Income tax expense | Net income (loss) | Diluted EPS (1) | ||||||||||||||||||||||||||||||
| GAAP | $ | (12.2) | $ | 68.9 | $ | 174.0 | $ | 13.8 | $ | (268.9) | $ | (1.12) | |||||||||||||||||||||||
| Amortization of intangibles | 32.4 | — | — | — | 32.4 | 0.13 | |||||||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | — | 0.34 | |||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 20.2 | $ | 68.9 | $ | 174.0 | $ | 13.8 | $ | (236.5) | $ | (0.65) | |||||||||||||||||||||||
(1)GAAP Diluted EPS based on 240.7 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Second Quarter | ||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | ||||||||||||||||||||||
| GAAP | $ | 70.6 | $ | 30.1 | $ | 14.3 | $ | 26.2 | $ | 0.08 | ||||||||||||||||
| Amortization of intangibles | 32.2 | — | — | 32.2 | 0.10 | |||||||||||||||||||||
| Pro-forma share count | — | — | — | — | (0.02) | |||||||||||||||||||||
| Non-GAAP Adjusted | $ | 102.8 | $ | 30.1 | $ | 14.3 | $ | 58.4 | $ | 0.16 | ||||||||||||||||
(1)GAAP Diluted EPS based on 331.1 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Third Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | 35.1 | $ | 26.4 | $ | 24.5 | $ | (15.8) | $ | (0.05) | |||||||||||||||||||
| Amortization of intangibles | 32.5 | — | — | 32.5 | 0.10 | ||||||||||||||||||||||||
Pro-forma share count (1) | — | — | — | — | — | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 67.6 | $ | 26.4 | $ | 24.5 | $ | 16.7 | $ | 0.05 | |||||||||||||||||||
(1)GAAP Diluted EPS based on 328.4 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Fourth Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | 120.1 | $ | 25.0 | $ | 20.2 | $ | 74.9 | $ | 0.23 | |||||||||||||||||||
| Amortization of intangibles | 31.6 | — | — | 31.6 | 0.10 | ||||||||||||||||||||||||
Pro-forma share count (1) | — | — | — | — | (0.04) | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 151.7 | $ | 25.0 | $ | 20.2 | $ | 106.5 | $ | 0.29 | |||||||||||||||||||
(1)GAAP Diluted EPS based on 330.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes 330.3 million shares outstanding, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units).
| Full Year 2020 | |||||||||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Loss on extinguishment of debt | Income tax expense | Net income (loss) | Diluted EPS (1) | ||||||||||||||||||||||||||||||
| GAAP | $ | 213.5 | $ | 150.4 | $ | 174.0 | $ | 72.7 | $ | (183.6) | $ | (0.60) | |||||||||||||||||||||||
| Amortization of intangibles | 128.7 | — | — | — | 128.7 | 0.42 | |||||||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | — | 0.03 | |||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 342.2 | $ | 150.4 | $ | 174.0 | $ | 72.7 | $ | (54.9) | $ | (0.15) | |||||||||||||||||||||||
(1)GAAP Diluted EPS based on 307.1 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). While warrants and stock options were anti-dilutive for the twelve-month period, we believe that this presentation facilitates a more comprehensive view due to the impact of the reverse merger.
6
Vertiv Holdings Co
Performance Metric Update
2019 Data
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)(Unaudited)
(Dollars in millions except for per share data)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2019 | |||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Net sales - products | $ | 813.3 | $ | 865.3 | $ | 799.4 | $ | 878.1 | $ | 3,356.1 | |||||||||||||||||||
| Net sales - services | 241.5 | 268.8 | 271.3 | 293.4 | 1,075.1 | ||||||||||||||||||||||||
| Net sales | 1,054.8 | 1,134.1 | 1,070.7 | 1,171.5 | 4,431.2 | ||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||
| Cost of sales - products | 566.2 | 613.6 | 561.4 | 607.9 | 2,349.2 | ||||||||||||||||||||||||
| Cost of sales - services | 141.4 | 153.3 | 158.0 | 176.4 | 629.0 | ||||||||||||||||||||||||
| Cost of sales | 707.6 | 766.9 | 719.4 | 784.3 | 2,978.2 | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 286.4 | 263.3 | 259.3 | 291.8 | 1,100.8 | ||||||||||||||||||||||||
| Amortization of intangibles | 32.8 | 32.4 | 31.4 | 32.5 | 129.2 | ||||||||||||||||||||||||
| Restructuring costs | 0.8 | 4.6 | 4.0 | 11.3 | 20.7 | ||||||||||||||||||||||||
| Foreign currency (gain) loss, net | 3.5 | (5.3) | (4.8) | 5.2 | (1.5) | ||||||||||||||||||||||||
| Other operating expense (income) | 1.7 | (3.6) | 1.0 | (1.5) | (2.3) | ||||||||||||||||||||||||
| Operating profit (loss) | 22.0 | 75.8 | 60.4 | 47.9 | 206.1 | ||||||||||||||||||||||||
| Interest expense, net | 77.8 | 78.7 | 77.7 | 76.2 | 310.4 | ||||||||||||||||||||||||
| Income (loss) before income taxes | (55.8) | (2.9) | (17.3) | (28.3) | (104.3) | ||||||||||||||||||||||||
| Income tax expense | 18.5 | 16.0 | (3.6) | 5.6 | 36.5 | ||||||||||||||||||||||||
| Net income (loss) | $ | (74.3) | $ | (18.9) | $ | (13.7) | $ | (33.9) | $ | (140.8) | |||||||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||||||||
| Basic and diluted | $ | (0.63) | $ | (0.16) | $ | (0.12) | $ | (0.29) | $ | (1.19) | |||||||||||||||||||
| Weighted-average shares outstanding | |||||||||||||||||||||||||||||
| Basic and diluted | 118,261,955 | 118,261,955 | 118,261,955 | 118,261,955 | 118,261,955 | ||||||||||||||||||||||||
7
Segment Information
| Operating profit (loss) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2019 | ||||||||||||||||||||||||
| Americas | $ | 111.6 | $ | 125.8 | $ | 107.1 | $ | 105.8 | $ | 450.3 | |||||||||||||||||||
| Asia Pacific | 29.6 | 51.1 | 53.2 | 41.7 | 175.6 | ||||||||||||||||||||||||
| Europe, Middle East & Africa | 26.4 | 18.6 | 22.5 | 9.3 | 76.6 | ||||||||||||||||||||||||
| Total reportable segments | 167.6 | 195.5 | 182.8 | 156.8 | 702.5 | ||||||||||||||||||||||||
| Foreign currency gain (loss) | (3.5) | 5.3 | 4.8 | (5.2) | 1.5 | ||||||||||||||||||||||||
Corporate and other (1) | (109.3) | (92.6) | (95.8) | (71.2) | (368.7) | ||||||||||||||||||||||||
| Total corporate, other and eliminations | (112.8) | (87.3) | (91.0) | (76.4) | (367.2) | ||||||||||||||||||||||||
| Amortization of intangibles | (32.8) | (32.4) | (31.4) | (32.5) | (129.2) | ||||||||||||||||||||||||
| Operating profit (loss) | $ | 22.0 | $ | 75.8 | $ | 60.4 | $ | 47.9 | $ | 206.1 | |||||||||||||||||||
Reconciliation from operating profit (loss) to adjusted operating profit (loss)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2019 | |||||||||||||||||||||||||
| Operating profit (loss) | $ | 22.0 | $ | 75.8 | $ | 60.4 | $ | 47.9 | $ | 206.1 | |||||||||||||||||||
| Amortization of intangibles | 32.8 | 32.4 | 31.4 | 32.5 | 129.2 | ||||||||||||||||||||||||
| Adjusted operating profit (loss) | $ | 54.8 | $ | 108.2 | $ | 91.8 | $ | 80.4 | $ | 335.3 | |||||||||||||||||||
Other summarized historical information
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2019 | |||||||||||||||||||||||||
Net sales (2) | |||||||||||||||||||||||||||||
| Americas | $ | 554.4 | $ | 575.1 | $ | 545.7 | $ | 553.7 | $ | 2,229.1 | |||||||||||||||||||
| APAC | 259.0 | 323.3 | 323.7 | 371.9 | 1,278.0 | ||||||||||||||||||||||||
| EMEA | 241.4 | 235.7 | 201.3 | 245.9 | 924.1 | ||||||||||||||||||||||||
| Total reportable segments | $ | 1,054.8 | $ | 1,134.1 | $ | 1,070.7 | $ | 1,171.5 | $ | 4,431.2 | |||||||||||||||||||
| Adjusted operating profit (loss) | |||||||||||||||||||||||||||||
| Americas | $ | 111.6 | $ | 125.8 | $ | 107.1 | $ | 105.8 | $ | 450.3 | |||||||||||||||||||
| APAC | 29.6 | 51.1 | 53.2 | 41.7 | 175.6 | ||||||||||||||||||||||||
| EMEA | 26.4 | 18.6 | 22.5 | 9.3 | 76.6 | ||||||||||||||||||||||||
Corporate (1) | (112.8) | (87.3) | (91.0) | (76.4) | (367.2) | ||||||||||||||||||||||||
| Total reportable segments | $ | 54.8 | $ | 108.2 | $ | 91.8 | $ | 80.4 | $ | 335.3 | |||||||||||||||||||
Adjusted operating profit (loss) margins (3) | |||||||||||||||||||||||||||||
| Americas | 20.1 | % | 21.9 | % | 19.6 | % | 19.1 | % | 20.2 | % | |||||||||||||||||||
| APAC | 11.4 | % | 15.8 | % | 16.4 | % | 11.2 | % | 13.7 | % | |||||||||||||||||||
| EMEA | 10.9 | % | 7.9 | % | 11.2 | % | 3.8 | % | 8.3 | % | |||||||||||||||||||
| Total | 5.2 | % | 9.5 | % | 8.6 | % | 6.9 | % | 7.6 | % | |||||||||||||||||||
(1)Corporate costs consist of headquarters management costs, other incentive compensation, global digital costs, and costs that support global product platform development and offering management.
(2)Segment net sales are presented excluding intercompany sales.
(3)Adjusted operating profit (loss) margins calculated as adjusted operating profit (loss) divided by net sales
8
Reconciliation of historically reported adjusted EBITDA by region to adjusted operating profit (loss) by region (1)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2019 | |||||||||||||||||||||||||
| (A) Adjusted EBITDA | |||||||||||||||||||||||||||||
| Americas | $ | 125.5 | $ | 137.2 | 120.8 | $ | 143.3 | $ | 526.8 | ||||||||||||||||||||
| APAC | 35.3 | 54.1 | 57.1 | 59.6 | 206.1 | ||||||||||||||||||||||||
| EMEA | 32.4 | 28.4 | 30.4 | 33.6 | 124.7 | ||||||||||||||||||||||||
| Corporate | (83.2) | (73.1) | (72.2) | (87.8) | (316.1) | ||||||||||||||||||||||||
| Total | $ | 110.0 | $ | 146.6 | 136.1 | $ | 148.7 | $ | 541.5 | ||||||||||||||||||||
(B) Depreciation and Amortization (2) | |||||||||||||||||||||||||||||
| Americas | $ | 30.9 | $ | 30.7 | $ | 29.8 | $ | 30.8 | $ | 122.2 | |||||||||||||||||||
| APAC | 8.9 | 8.7 | 8.5 | 8.6 | 34.8 | ||||||||||||||||||||||||
| EMEA | 5.9 | 5.9 | 5.8 | 6.3 | 24.0 | ||||||||||||||||||||||||
| Corporate | 3.9 | 5.7 | 7.1 | 5.4 | 21.9 | ||||||||||||||||||||||||
| Total | $ | 49.6 | $ | 51.0 | $ | 51.2 | $ | 51.1 | $ | 202.9 | |||||||||||||||||||
| (C) Historical EBITDA Adjustments | |||||||||||||||||||||||||||||
| Americas | $ | 6.7 | $ | 4.2 | $ | 7.8 | $ | 27.8 | $ | 46.5 | |||||||||||||||||||
| APAC | 5.4 | (1.3) | (2.4) | 17.1 | 18.8 | ||||||||||||||||||||||||
| EMEA | 5.8 | 5.8 | 4.6 | 19.7 | 35.9 | ||||||||||||||||||||||||
| Corporate | 20.5 | 11.1 | 14.5 | (14.9) | 31.3 | ||||||||||||||||||||||||
| Total | $ | 38.4 | $ | 19.8 | $ | 24.5 | $ | 49.7 | $ | 132.5 | |||||||||||||||||||
| (D) Amortization of Intangibles | |||||||||||||||||||||||||||||
| Americas | $ | 23.5 | $ | 23.1 | $ | 22.4 | $ | 23.4 | $ | 92.5 | |||||||||||||||||||
| APAC | 6.0 | 6.0 | 5.9 | 5.9 | 23.8 | ||||||||||||||||||||||||
| EMEA | 3.3 | 3.3 | 3.1 | 3.2 | 12.9 | ||||||||||||||||||||||||
| Corporate | — | — | — | — | — | ||||||||||||||||||||||||
| Total | $ | 32.8 | $ | 32.4 | $ | 31.4 | $ | 32.5 | $ | 129.2 | |||||||||||||||||||
| (E) Foreign Currency | |||||||||||||||||||||||||||||
| Americas | $ | 0.2 | 0.4 | 1.5 | (2.3) | (0.3) | |||||||||||||||||||||||
| APAC | 2.6 | (1.6) | (3.7) | 1.9 | (0.7) | ||||||||||||||||||||||||
| EMEA | 2.4 | (1.4) | (0.6) | (1.5) | (1.1) | ||||||||||||||||||||||||
| Corporate | (5.2) | 2.6 | 2.8 | 1.9 | 2.1 | ||||||||||||||||||||||||
| Total | $ | — | — | — | — | — | |||||||||||||||||||||||
| (A) - (B) - (C) + (D) + (E) = Adjusted Operating Profit (Loss) | |||||||||||||||||||||||||||||
| Americas | $ | 111.6 | $ | 125.8 | $ | 107.1 | $ | 105.8 | $ | 450.3 | |||||||||||||||||||
| APAC | 29.6 | 51.1 | 53.2 | 41.7 | 175.6 | ||||||||||||||||||||||||
| EMEA | 26.4 | 18.6 | 22.5 | 9.3 | 76.6 | ||||||||||||||||||||||||
| Corporate | (112.8) | (87.3) | (91.0) | (76.4) | (367.2) | ||||||||||||||||||||||||
| Total | $ | 54.8 | $ | 108.2 | $ | 91.8 | $ | 80.4 | $ | 335.3 | |||||||||||||||||||
(1)In order to align our historical presentation of our new operating metric of adjusted operating profit (loss), certain reclassifications have been made between the reportable business segments and Corporate that do not impact any of the totals above. Going forward, prior period presentation of segment operating profit (loss) will be recast to reflect these reclassifications.
(2)Includes amortization of both software and intangible assets.
9
Reconciliation of Diluted EPS to Non-GAAP Adjusted EPS
| First Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | 22.0 | $ | 77.8 | $ | 18.5 | $ | (74.3) | $ | (0.63) | |||||||||||||||||||
| Amortization of intangibles | 32.8 | — | — | 32.8 | 0.28 | ||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | 0.24 | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 54.8 | $ | 77.8 | $ | 18.5 | $ | (41.5) | $ | (0.11) | |||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Second Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | 75.8 | $ | 78.7 | $ | 16.0 | $ | (18.9) | $ | (0.16) | |||||||||||||||||||
| Amortization of intangibles | 32.4 | — | — | 32.4 | 0.27 | ||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | (0.07) | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 108.2 | $ | 78.7 | $ | 16.0 | $ | 13.5 | $ | 0.04 | |||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Third Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | 60.4 | $ | 77.7 | $ | (3.6) | $ | (13.7) | $ | (0.12) | |||||||||||||||||||
| Amortization of intangibles | 31.4 | — | — | 31.4 | 0.27 | ||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | (0.10) | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 91.8 | $ | 77.7 | $ | (3.6) | $ | 17.7 | $ | 0.05 | |||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Fourth Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | 47.9 | $ | 76.2 | $ | 5.6 | $ | (33.9) | $ | (0.29) | |||||||||||||||||||
| Amortization of intangibles | 32.5 | — | — | 32.5 | 0.27 | ||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | 0.02 | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 80.4 | $ | 76.2 | $ | 5.6 | $ | (1.4) | $ | — | |||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes 330.3 million shares outstanding, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Full Year 2019 | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | 206.1 | $ | 310.4 | $ | 36.5 | $ | (140.8) | $ | (1.19) | |||||||||||||||||||
| Amortization of intangibles | 129.2 | — | — | 129.2 | 1.09 | ||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | 0.07 | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 335.3 | $ | 310.4 | $ | 36.5 | $ | (11.6) | $ | (0.03) | |||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe that this presentation facilitates comparison to the current period due to the impact of the reverse merger.
10
Vertiv Holdings Co
Performance Metric Update
2018 Data
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)(Unaudited)
(Dollars in millions except for per share data)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2018 | |||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Net sales - products | $ | 711.7 | $ | 808.8 | $ | 796.8 | $ | 913.0 | $ | 3,230.3 | |||||||||||||||||||
| Net sales - services | 239.0 | 277.2 | 280.5 | 258.6 | 1,055.3 | ||||||||||||||||||||||||
| Net sales | 950.7 | 1,086.0 | 1,077.3 | 1,171.6 | 4,285.6 | ||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||
| Cost of sales - products | 490.9 | 558.2 | 560.1 | 665.3 | 2,274.5 | ||||||||||||||||||||||||
| Cost of sales - services | 136.4 | 158.6 | 159.2 | 136.5 | 590.7 | ||||||||||||||||||||||||
| Cost of sales | 627.3 | 716.8 | 719.3 | 801.8 | 2,865.2 | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 305.9 | 320.7 | 293.8 | 303.4 | 1,223.8 | ||||||||||||||||||||||||
| Amortization of intangibles | 36.7 | 38.1 | 36.1 | 35.3 | 146.2 | ||||||||||||||||||||||||
| Restructuring costs | 14.8 | 5.9 | 9.3 | 16.2 | 46.2 | ||||||||||||||||||||||||
| Foreign currency (gain) loss, net | 2.0 | (4.3) | 0.6 | (3.7) | (5.4) | ||||||||||||||||||||||||
| Other operating expense (income) | 2.9 | 0.8 | 23.2 | (35.2) | (8.2) | ||||||||||||||||||||||||
| Operating profit (loss) | (38.9) | 8.0 | (5.0) | 53.8 | 17.8 | ||||||||||||||||||||||||
| Interest expense, net | 68.3 | 71.3 | 73.9 | 75.3 | 288.8 | ||||||||||||||||||||||||
| Income (loss) before income taxes | (107.2) | (63.3) | (78.9) | (21.5) | (271.0) | ||||||||||||||||||||||||
| Income tax expense (benefit) | (45.2) | 158.6 | (81.1) | 17.7 | 49.9 | ||||||||||||||||||||||||
| Earnings (loss) from Continuing Operations | (62.0) | (221.9) | 2.2 | (39.2) | (320.9) | ||||||||||||||||||||||||
| Earnings (loss) from Discontinued Operations - net of income taxes | — | 7.4 | — | (0.5) | 6.9 | ||||||||||||||||||||||||
| Net income (loss) | $ | (62.0) | $ | (214.5) | $ | 2.2 | $ | (39.7) | $ | (314.0) | |||||||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||||||||
| Basic and diluted | $ | (0.52) | $ | (1.81) | $ | 0.02 | $ | (0.34) | $ | (2.65) | |||||||||||||||||||
| Weighted-average shares outstanding | |||||||||||||||||||||||||||||
| Basic | 118,261,955 | 118,261,955 | 118,261,955 | 118,261,955 | 118,261,955 | ||||||||||||||||||||||||
11
Segment information
| Operating profit (loss) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2018 | ||||||||||||||||||||||||
| Americas | $ | 85.0 | $ | 115.9 | $ | 96.6 | $ | 103.8 | $ | 401.3 | |||||||||||||||||||
| Asia Pacific | 26.3 | 41.0 | 44.1 | 49.7 | 161.1 | ||||||||||||||||||||||||
| Europe, Middle East & Africa | 1.8 | 17.4 | 11.1 | 23.5 | 53.8 | ||||||||||||||||||||||||
| Total reportable segments | 113.1 | 174.3 | 151.8 | 177.0 | 616.2 | ||||||||||||||||||||||||
| Foreign currency (gain) loss | (2.0) | 4.3 | (0.6) | 3.7 | 5.4 | ||||||||||||||||||||||||
Corporate and other (1) | (113.3) | (132.5) | (120.1) | (91.6) | (457.6) | ||||||||||||||||||||||||
| Total corporate, other and eliminations | (115.3) | (128.2) | (120.7) | (87.9) | (452.2) | ||||||||||||||||||||||||
| Amortization of intangibles | (36.7) | (38.1) | (36.1) | (35.3) | (146.2) | ||||||||||||||||||||||||
| Operating profit (loss) | $ | (38.9) | $ | 8.0 | $ | (5.0) | $ | 53.8 | $ | 17.8 | |||||||||||||||||||
Reconciliation from operating profit (loss) to adjusted operating profit (loss)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2018 | |||||||||||||||||||||||||
| Operating profit (loss) | $ | (38.9) | $ | 8.0 | $ | (5.0) | $ | 53.8 | $ | 17.8 | |||||||||||||||||||
| Amortization of intangibles | 36.7 | 38.1 | 36.1 | 35.3 | 146.2 | ||||||||||||||||||||||||
| Adjusted operating profit (loss) | $ | (2.2) | $ | 46.1 | $ | 31.1 | $ | 89.1 | $ | 164.0 | |||||||||||||||||||
Other summarized historical information
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2018 | |||||||||||||||||||||||||
Net sales (2) | |||||||||||||||||||||||||||||
| Americas | $ | 498.4 | $ | 538.2 | $ | 553.2 | $ | 555.8 | $ | 2,145.7 | |||||||||||||||||||
| APAC | 255.5 | 325.0 | 319.1 | 344.6 | 1,244.2 | ||||||||||||||||||||||||
| EMEA | 196.8 | 222.8 | 205.0 | 271.2 | 895.7 | ||||||||||||||||||||||||
| Total reportable segments | $ | 950.7 | $ | 1,086.0 | $ | 1,077.3 | $ | 1,171.6 | $ | 4,285.6 | |||||||||||||||||||
| Adjusted operating profit (loss) | |||||||||||||||||||||||||||||
| Americas | $ | 85.0 | $ | 115.9 | $ | 96.6 | $ | 103.8 | $ | 401.3 | |||||||||||||||||||
| APAC | 26.3 | 41.0 | 44.1 | 49.7 | 161.1 | ||||||||||||||||||||||||
| EMEA | 1.8 | 17.4 | 11.1 | 23.5 | 53.8 | ||||||||||||||||||||||||
Corporate (1) | (115.3) | (128.2) | (120.7) | (87.9) | (452.2) | ||||||||||||||||||||||||
| Total | $ | (2.2) | $ | 46.1 | $ | 31.1 | $ | 89.1 | $ | 164.0 | |||||||||||||||||||
Adjusted operating profit (loss) margins(3) | |||||||||||||||||||||||||||||
| Americas | 17.1 | % | 21.5 | % | 17.5 | % | 18.7 | % | 18.7 | % | |||||||||||||||||||
| APAC | 10.3 | % | 12.6 | % | 13.8 | % | 14.4 | % | 12.9 | % | |||||||||||||||||||
| EMEA | 0.9 | % | 7.8 | % | 5.4 | % | 8.7 | % | 6.0 | % | |||||||||||||||||||
| Total | (0.2) | % | 4.2 | % | 2.9 | % | 7.6 | % | 3.8 | % | |||||||||||||||||||
(1)Corporate costs consist of headquarters management costs, other incentive compensation, global digital costs, and costs that support global product platform development and offering management.
(2)Segment net sales are presented excluding intercompany sales.
(3)Adjusted operating profit (loss) margins calculated as adjusted operating profit (loss) divided by net sales
12
Reconciliation of historically reported adjusted EBITDA by region to adjusted operating profit (loss) by region (1)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year 2018 | |||||||||||||||||||||||||
| (A) Adjusted EBITDA | |||||||||||||||||||||||||||||
| Americas | $ | 106.8 | $ | 138.8 | 126.2 | 123.6 | $ | 495.4 | |||||||||||||||||||||
| APAC | 33.4 | 48.4 | 50.3 | 59.1 | 191.2 | ||||||||||||||||||||||||
| EMEA | 14.7 | 22.6 | 23.1 | 48.9 | 109.3 | ||||||||||||||||||||||||
| Corporate | (70.9) | (76.1) | (72.0) | (74.5) | (293.5) | ||||||||||||||||||||||||
| Total | $ | 84.0 | $ | 133.7 | 127.6 | 157.1 | $ | 502.4 | |||||||||||||||||||||
(B) Depreciation and Amortization (2) | |||||||||||||||||||||||||||||
| Americas | $ | 32.2 | $ | 34.3 | $ | 32.1 | $ | 32.1 | $ | 130.7 | |||||||||||||||||||
| APAC | 10.0 | 9.9 | 9.4 | 8.5 | 37.8 | ||||||||||||||||||||||||
| EMEA | 9.9 | 9.6 | 9.0 | 7.3 | 35.8 | ||||||||||||||||||||||||
| Corporate | 2.6 | 2.9 | 3.0 | 4.2 | 12.7 | ||||||||||||||||||||||||
| Total | $ | 54.7 | $ | 56.7 | $ | 53.5 | $ | 52.1 | $ | 217.0 | |||||||||||||||||||
| (C) Historical EBITDA Adjustments | |||||||||||||||||||||||||||||
| Americas | $ | 14.0 | $ | 13.1 | $ | 23.9 | $ | 12.7 | $ | 63.7 | |||||||||||||||||||
| APAC | 6.0 | 1.9 | 2.0 | 6.9 | 16.8 | ||||||||||||||||||||||||
| EMEA | 10.1 | 2.3 | 7.1 | 24.2 | 43.7 | ||||||||||||||||||||||||
| Corporate | 38.1 | 51.7 | 46.1 | 7.4 | 143.4 | ||||||||||||||||||||||||
| Total | $ | 68.2 | $ | 69.0 | $ | 79.1 | $ | 51.2 | $ | 267.6 | |||||||||||||||||||
| (D) Amortization of Intangibles | |||||||||||||||||||||||||||||
| Americas | $ | 23.8 | $ | 25.5 | $ | 24.1 | $ | 24.2 | $ | 97.6 | |||||||||||||||||||
| APAC | 6.5 | 6.3 | 6.0 | 6.0 | 24.8 | ||||||||||||||||||||||||
| EMEA | 6.4 | 6.3 | 6.0 | 5.1 | 23.8 | ||||||||||||||||||||||||
| Corporate | — | — | — | — | — | ||||||||||||||||||||||||
| Total | $ | 36.7 | $ | 38.1 | $ | 36.1 | $ | 35.3 | $ | 146.2 | |||||||||||||||||||
| (E) Foreign Currency | |||||||||||||||||||||||||||||
| Americas | $ | 0.6 | (1.0) | 2.3 | $ | 0.8 | 2.7 | ||||||||||||||||||||||
| APAC | 2.4 | (1.9) | (0.8) | — | (0.3) | ||||||||||||||||||||||||
| EMEA | 0.7 | 0.4 | (1.9) | 1.0 | 0.2 | ||||||||||||||||||||||||
| Corporate | (3.7) | 2.5 | 0.4 | (1.8) | (2.6) | ||||||||||||||||||||||||
| Total | $ | — | — | — | $ | — | — | ||||||||||||||||||||||
| (A) - (B) - (C) + (D) + (E) = Adjusted Operating Profit (Loss) | |||||||||||||||||||||||||||||
| Americas | $ | 85.0 | $ | 115.9 | $ | 96.6 | $ | 103.8 | $ | 401.3 | |||||||||||||||||||
| APAC | 26.3 | 41.0 | 44.1 | 49.7 | 161.1 | ||||||||||||||||||||||||
| EMEA | 1.8 | 17.4 | 11.1 | 23.5 | 53.8 | ||||||||||||||||||||||||
| Corporate | (115.3) | (128.2) | (120.7) | (87.9) | (452.2) | ||||||||||||||||||||||||
| Total | $ | (2.2) | $ | 46.1 | $ | 31.1 | $ | 89.1 | $ | 164.0 | |||||||||||||||||||
(1)In order to align our historical presentation of our new operating metric of adjusted operating profit (loss), certain reclassifications have been made between the reportable business segments and Corporate that do not impact any of the totals above. Going forward, prior period presentation of segment operating profit (loss) will be recast to reflect these reclassifications.
(2)Includes amortization of both software and intangible assets
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Reconciliation of Diluted EPS to Non-GAAP Adjusted EPS
| First Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax benefit | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | (38.9) | $ | 68.3 | $ | (45.2) | $ | (62.0) | $ | (0.52) | ||||||||||||||||||||
| Amortization of intangibles | 36.7 | — | — | 36.7 | 0.31 | ||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | 0.14 | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | (2.2) | $ | 68.3 | $ | (45.2) | $ | (25.3) | $ | (0.07) | |||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Second Quarter | |||||||||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Earnings from Discontinued Operations - net of income taxes | Net income (loss) | Diluted EPS (1) | ||||||||||||||||||||||||||||||
| GAAP | $ | 8.0 | $ | 71.3 | $ | 158.6 | $ | 7.4 | $ | (214.5) | $ | (1.81) | |||||||||||||||||||||||
| Amortization of intangibles | 38.1 | — | — | — | 38.1 | 0.32 | |||||||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | — | 1.00 | |||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 46.1 | $ | 71.3 | $ | 158.6 | $ | 7.4 | $ | (176.4) | $ | (0.49) | |||||||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Third Quarter | |||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS (1) | |||||||||||||||||||||||||
| GAAP | $ | (5.0) | $ | 73.9 | $ | (81.1) | $ | 2.2 | $ | 0.02 | |||||||||||||||||||
| Amortization of intangibles | 36.1 | — | — | 36.1 | 0.31 | ||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | (0.22) | ||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 31.1 | $ | 73.9 | $ | (81.1) | $ | 38.3 | $ | 0.11 | |||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Fourth Quarter | |||||||||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Earnings from Discontinued Operations - net of income taxes | Net income (loss) | Diluted EPS (1) | ||||||||||||||||||||||||||||||
| GAAP | $ | 53.8 | $ | 75.3 | $ | 17.7 | $ | (0.5) | $ | (39.7) | $ | (0.34) | |||||||||||||||||||||||
| Amortization of intangibles | 35.3 | — | — | — | 35.3 | 0.30 | |||||||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | — | 0.03 | |||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 89.1 | $ | 75.3 | $ | 17.7 | $ | (0.5) | $ | (4.4) | $ | (0.01) | |||||||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe this presentation facilitates comparison to the current period due to the impact of the reverse merger.
| Full Year 2018 | |||||||||||||||||||||||||||||||||||
| Operating profit (loss) | Interest expense, net | Income tax expense | Earnings from Discontinued Operations - net of income taxes | Net income (loss) | Diluted EPS (1) | ||||||||||||||||||||||||||||||
| GAAP | $ | 17.8 | $ | 288.8 | $ | 49.9 | $ | 6.9 | $ | (314.0) | $ | (2.65) | |||||||||||||||||||||||
| Amortization of intangibles | 146.2 | — | — | — | 146.2 | 1.24 | |||||||||||||||||||||||||||||
| Pro-forma share count | — | — | — | — | — | 0.95 | |||||||||||||||||||||||||||||
| Non-GAAP Adjusted | $ | 164.0 | $ | 288.8 | $ | 49.9 | $ | 6.9 | $ | (167.8) | $ | (0.46) | |||||||||||||||||||||||
(1)GAAP Diluted EPS based on 118.3 million shares. Non-GAAP Adjusted EPS based on pro forma share count of 362.0 million diluted shares (includes shares outstanding of 330.3 million, 25.0 million potential dilutive warrants and 6.7 million potential dilutive stock options and restricted stock units). We believe this presentation facilitates comparison to the current period due to the impact of the reverse merger.
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