Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - PENTAIR plc | d8k.htm |
Exhibit 99.1
Pentair, Inc.
5500 Wayzata Blvd., Suite 800
Minneapolis, MN 55416
763 545 1730 Tel
763 656 5400 Fax
News Release
Pentair Reports Strong Second Quarter Results
| • | Second quarter sales increased 14 percent to $910 million |
| • | Reported EPS of $0.67; Adjusted EPS increased 23 percent to record $0.75 |
| • | Generated free cash flow of $179 million in the quarter |
| • | Completed acquisition of Clean Process Technologies in the quarter |
| • | Raised full year adjusted EPS outlook |
All financial information and period-to-period references are on a continuing operations basis unless otherwise noted. Reconciliations of GAAP to Non-GAAP measures are in the attached financial tables.
MINNEAPOLIS — July 26, 2011 — Pentair, Inc. (NYSE: PNR) announced second quarter 2011 sales of $910 million, an increase of 14 percent from the same quarter last year. These results reflected broad-based growth across its two segments, Water and Technical Products, including 7 percentage points from the recent acquisition of Norit’s Clean Process Technologies (CPT) and 3 percentage points from favorable foreign currency. Earnings per diluted share from continuing operations (EPS) were $0.67 in the second quarter 2011. Adjusting to exclude acquisition related costs, second quarter 2011 EPS was $0.75, an increase of 23 percent over the same quarter last year.
“Pentair delivered another strong quarter. Successful execution of our growth initiatives, including an increasing presence in fast growth markets, continued innovation and an expanding portfolio of energy-efficient and sustainable products, led to higher sales in the quarter,” said Randall J. Hogan, Pentair chairman and chief executive officer. “The volume benefit, along with productivity gains and pricing actions, resulted in meaningful margin expansion and earnings growth.”
“We are very excited about the recently completed CPT acquisition, adding global reach, innovative membrane technologies and system capabilities in the attractive water and beverage sectors. The CPT business, now part of Pentair Filtration Solutions, is off to a great start,” added Hogan.
The company reported second quarter operating income of $109 million compared to $100 million in the prior year quarter. Adjusting to exclude acquisition related costs, operating income was $121 million, up 21 percent, and operating margins expanded in both Water and Technical Products. The benefit from higher sales volume, pricing and productivity gains more than offset the inflation impact. Second quarter 2011 results included the benefit of a lower effective tax rate, reflecting a favorable geographic mix largely resulting from the CPT acquisition and a reduction related to a state tax law change.
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Free cash flow was $179 million in the second quarter, resulting in $117 million for the first half of 2011. The company said it expects to achieve free cash flow greater than $250 million for the full year 2011.
SECOND QUARTER BUSINESS HIGHLIGHTS
Water sales grew 15 percent year-over-year to $632 million, including 10 percentage points from the CPT acquisition and a three-percentage point favorable impact from foreign currency. Year-over-year sales growth was negatively impacted by approximately 2 percentage points due to sales in 2010 related to the Gulf Intracoastal Waterway (GIWW) project. Within Water, U.S. sales were up modestly, while Western Europe and fast growth regions continued to deliver double-digit growth. Within the five Water global businesses, the second quarter sales performances were as follows:
| • | Residential Flow sales were up 7 percent versus the prior year quarter, led by double-digit growth in the agricultural business and solid global residential pump sales. |
| • | Residential Filtration sales were up 12 percent, reflecting increased distribution and new products in fast growth regions, especially Latin America and China. |
| • | Pool sales were up 7 percent driven by expanded distribution and strong demand for energy efficient pool products. |
| • | Engineered Flow sales were down 7 percent due to lower U.S. municipal sales largely related to the prior year benefit from GIWW, while commercial and industrial pumps sales increased year-over-year. Excluding the year-over-year impact of GIWW, sales were up modestly. |
| • | Filtration Solutions sales increased 86 percent year-over-year, reflecting a 79-percentage point or $54 million benefit from the CPT acquisition. The remaining 7 percentage points of growth reflected broad-based strength across end-markets served, including foodservice and desalination. |
Water’s second quarter reported operating income totaled $85 million. Excluding the acquisition related costs included in the Water segment, second quarter operating income increased 18 percent to $90 million and operating margins increased 40 basis points to 14.2 percent. Pricing and productivity improvements, along with volume leverage, more than offset the negative impact from inflation and continued growth investments.
Technical Products delivered second quarter 2011 sales of $278 million, an increase of 13 percent versus the prior year quarter, including a four-percentage point favorable impact from foreign currency.
| • | Strong global demand drove double-digit growth across many of the end markets served, including industrial, general electronics and energy. |
| • | Sales in the U.S. increased 7 percent year-over-year. Fast growth regions were up 29 percent, led by China, Eastern Europe and Southeast Asia. |
Technical Products’ second quarter reported operating income totaled $48 million, up 27 percent compared to $38 million in the same quarter last year. Second quarter 2011 operating margins increased to 17.3 percent, an increase of 190 basis points when compared to the prior year quarter. Strong volume leverage, along with pricing and productivity gains, more than offset the negative impact from inflation and continued growth investments.
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OUTLOOK
The company expects full year 2011 reported EPS to be in the $2.27 to $2.35 range, including approximately $0.15 of acquisition related costs. Excluding these costs, the company is raising its full year 2011 adjusted EPS guidance to a range of $2.42 to $2.50, reflecting the strong second quarter performance and benefit from the CPT acquisition. This represents an increase of 21 to 25 percent compared to 2010 EPS on expected full year 2011 sales of approximately $3.5 billion, up 14 to 16 percent compared to the prior year.
Pentair introduced third quarter 2011 EPS guidance of $0.51 to $0.54, which includes an estimated $0.04 impact from acquisition related costs. As a result, the company expects an adjusted EPS of $0.55 to $0.58 in the third quarter 2011, on an estimated sales growth of 12 to 14 percent.
“Our updated guidance reflects our strong second quarter performance and the added benefit of the new CPT acquisition. With our increased presence in fast growth markets, strong innovation and continued application of lean enterprise practices, we believe we are well positioned to deliver over 20 percent adjusted earnings growth in 2011,” added Hogan.
EARNINGS CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will discuss the company’s performance and second quarter 2011 results and 2011 outlook on a two-way conference call with investors and a live audio webcast at 11 a.m. Eastern today. Reconciliation of non-GAAP financial measures are set forth in the attachments to this second quarter 2011 earnings release and the second quarter 2011 earnings conference call presentation, both of which can be found at Pentair’s web site (www.pentair.com). Related financial charts and certain other information to be discussed on the conference call will be available on the company’s website shortly before the conference call. The webcast and presentation will be archived at the same site following the conclusion of the conference call.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Any statements made about the company’s anticipated financial results are forward-looking statements subject to risks and uncertainties such as our ability to integrate the CPT acquisition successfully; the magnitude, timing and scope of recovery from the global economic downturn; the strength of housing and related markets; foreign currency effects; material inflation outpacing our productivity and pricing actions; retail, commercial and industrial demand; increased risks associated with operating foreign businesses; product introductions; pricing and other competitive pressures; and the company’s ability to achieve its long-term strategic operating goals, as well as other risk factors set forth in our SEC filings. Forward-looking statements included herein are made as of the date hereof, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.
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ABOUT PENTAIR, INC.
Pentair (www.pentair.com) is a global diversified industrial company headquartered in Minneapolis, Minnesota. Its Water Group is a global leader in providing innovative products and systems used worldwide in the movement, treatment, storage and enjoyment of water. Pentair’s Technical Products Group is a leader in the global enclosures and thermal management markets, designing and manufacturing thermal management products and standard, modified, and custom enclosures that protect sensitive electronics and the people that use them. With 2010 revenues of $3.0 billion, Pentair employs over 15,000 people worldwide.
PENTAIR CONTACTS:
Sara Zawoyski
Vice President, Investor Relations
Tel.: (763) 656-5575
E-mail: sara.zawoyski@pentair.com
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Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
| Three months ended | Six months ended | |||||||||||||||
| In thousands, except per-share data |
July 2, 2011 |
July 3, 2010 |
July 2, 2011 |
July 3, 2010 |
||||||||||||
| Net sales |
$ | 910,175 | $ | 796,167 | $ | 1,700,448 | $ | 1,503,180 | ||||||||
| Cost of goods sold |
622,439 | 547,999 | 1,163,653 | 1,041,310 | ||||||||||||
| Gross profit |
287,736 | 248,168 | 536,795 | 461,870 | ||||||||||||
| % of net sales |
31.6 | % | 31.2 | % | 31.6 | % | 30.7 | % | ||||||||
| Selling, general and administrative |
158,432 | 131,043 | 303,192 | 263,933 | ||||||||||||
| % of net sales |
17.4 | % | 16.5 | % | 17.8 | % | 17.6 | % | ||||||||
| Research and development |
19,882 | 16,999 | 38,004 | 34,210 | ||||||||||||
| % of net sales |
2.2 | % | 2.1 | % | 2.3 | % | 2.2 | % | ||||||||
| Operating income |
109,422 | 100,126 | 195,599 | 163,727 | ||||||||||||
| % of net sales |
12.0 | % | 12.6 | % | 11.5 | % | 10.9 | % | ||||||||
| Other (income) expense: |
||||||||||||||||
| Equity income of unconsolidated subsidiaries |
(672 | ) | (1,375 | ) | (907 | ) | (1,459 | ) | ||||||||
| Net interest expense |
14,613 | 8,569 | 23,938 | 18,096 | ||||||||||||
| % of net sales |
1.6 | % | 1.1 | % | 1.4 | % | 1.2 | % | ||||||||
| Income from continuing operations before income taxes and noncontrolling interest |
95,481 | 92,932 | 172,568 | 147,090 | ||||||||||||
| Provision for income taxes |
27,344 | 31,320 | 52,397 | 49,449 | ||||||||||||
| effective tax rate |
28.6 | % | 33.7 | % | 30.4 | % | 33.6 | % | ||||||||
| Income from continuing operations |
68,137 | 61,612 | 120,171 | 97,641 | ||||||||||||
| Gain on disposal of discontinued operations, net of tax |
— | 593 | — | 1,117 | ||||||||||||
| Net income before noncontrolling interest |
68,137 | 62,205 | 120,171 | 98,758 | ||||||||||||
| Noncontrolling interest |
1,425 | 1,124 | 2,918 | 2,356 | ||||||||||||
| Net income attributable to Pentair, Inc. |
$ | 66,712 | $ | 61,081 | $ | 117,253 | $ | 96,402 | ||||||||
| Net income from continuing operations attributable to Pentair, Inc. |
$ | 66,712 | $ | 60,488 | $ | 117,253 | $ | 95,285 | ||||||||
| Earnings per common share attributable to Pentair, Inc. |
||||||||||||||||
| Basic |
||||||||||||||||
| Continuing operations |
$ | 0.68 | $ | 0.61 | $ | 1.19 | $ | 0.96 | ||||||||
| Discontinued operations |
— | 0.01 | — | 0.01 | ||||||||||||
| Basic earnings per common share |
$ | 0.68 | $ | 0.62 | $ | 1.19 | $ | 0.97 | ||||||||
| Diluted |
||||||||||||||||
| Continuing operations |
$ | 0.67 | $ | 0.61 | $ | 1.17 | $ | 0.96 | ||||||||
| Discontinued operations |
— | — | — | 0.01 | ||||||||||||
| Diluted earnings per common share |
$ | 0.67 | $ | 0.61 | $ | 1.17 | $ | 0.97 | ||||||||
| Weighted average common shares outstanding |
||||||||||||||||
| Basic |
98,333 | 98,208 | 98,190 | 98,081 | ||||||||||||
| Diluted |
100,065 | 99,638 | 99,825 | 99,435 | ||||||||||||
| Cash dividends declared per common share |
$ | 0.20 | $ | 0.19 | $ | 0.40 | $ | 0.38 | ||||||||
Pentair, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
| In thousands |
July 2, 2011 |
December 31, 2010 |
July 3, 2010 |
|||||||||
| Assets | ||||||||||||
| Current assets |
||||||||||||
| Cash and cash equivalents |
$ | 68,972 | $ | 46,056 | $ | 38,580 | ||||||
| Accounts and notes receivable, net |
595,407 | 516,905 | 475,679 | |||||||||
| Inventories |
484,795 | 405,356 | 389,428 | |||||||||
| Deferred tax assets |
60,833 | 56,349 | 49,058 | |||||||||
| Prepaid expenses and other current assets |
124,632 | 44,631 | 42,878 | |||||||||
| Total current assets |
1,334,639 | 1,069,297 | 995,623 | |||||||||
| Property, plant and equipment, net |
410,547 | 329,435 | 318,124 | |||||||||
| Other assets |
||||||||||||
| Goodwill |
2,573,430 | 2,066,044 | 2,033,064 | |||||||||
| Intangibles, net |
654,908 | 453,570 | 451,806 | |||||||||
| Other |
78,788 | 55,187 | 54,083 | |||||||||
| Total other assets |
3,307,126 | 2,574,801 | 2,538,953 | |||||||||
| Total assets |
$ | 5,052,312 | $ | 3,973,533 | $ | 3,852,700 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities |
||||||||||||
| Short-term borrowings |
$ | 21,451 | $ | 4,933 | $ | 2,320 | ||||||
| Current maturities of long-term debt |
1,289 | 18 | 163 | |||||||||
| Accounts payable |
315,403 | 262,357 | 248,679 | |||||||||
| Employee compensation and benefits |
108,836 | 107,995 | 86,471 | |||||||||
| Current pension and post-retirement benefits |
8,733 | 8,733 | 8,948 | |||||||||
| Accrued product claims and warranties |
47,259 | 42,295 | 42,981 | |||||||||
| Income taxes |
21,498 | 5,964 | 23,252 | |||||||||
| Accrued rebates and sales incentives |
42,567 | 33,559 | 34,418 | |||||||||
| Other current liabilities |
144,366 | 80,942 | 78,496 | |||||||||
| Total current liabilities |
711,402 | 546,796 | 525,728 | |||||||||
| Other liabilities |
||||||||||||
| Long-term debt |
1,384,167 | 702,521 | 734,472 | |||||||||
| Pension and other retirement compensation |
217,021 | 209,859 | 213,142 | |||||||||
| Post-retirement medical and other benefits |
27,954 | 30,325 | 29,819 | |||||||||
| Long-term income taxes payable |
23,832 | 23,507 | 24,821 | |||||||||
| Deferred tax liabilities |
235,422 | 169,198 | 139,977 | |||||||||
| Other non-current liabilities |
85,660 | 86,295 | 92,926 | |||||||||
| Total liabilities |
2,685,458 | 1,768,501 | 1,760,885 | |||||||||
| Shareholders’ equity |
2,366,854 | 2,205,032 | 2,091,815 | |||||||||
| Total liabilities and shareholders’ equity |
$ | 5,052,312 | $ | 3,973,533 | $ | 3,852,700 | ||||||
| Days sales in accounts receivable (13 month moving average) |
61 | 60 | 60 | |||||||||
| Days inventory on hand (13 month moving average) |
83 | 82 | 83 | |||||||||
| Days in accounts payable (13 month moving average) |
72 | 71 | 69 | |||||||||
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Six months ended | ||||||||
| July 2, | July 3, | |||||||
| In thousands |
2011 | 2010 | ||||||
| Operating activities |
||||||||
| Net income before noncontrolling interest |
$ | 120,171 | $ | 98,758 | ||||
| Adjustments to reconcile net income to net cash provided by (used for) operating activities |
||||||||
| Gain on disposal of discontinued operations |
— | (1,117 | ) | |||||
| Equity income of unconsolidated subsidiaries |
(907 | ) | (1,459 | ) | ||||
| Depreciation |
32,685 | 28,876 | ||||||
| Amortization |
17,180 | 13,357 | ||||||
| Deferred income taxes |
3,012 | 2,396 | ||||||
| Stock compensation |
10,527 | 12,365 | ||||||
| Excess tax benefits from stock-based compensation |
(1,465 | ) | (1,322 | ) | ||||
| Loss (gain) on sale of assets |
229 | (57 | ) | |||||
| Changes in assets and liabilities, net of effects of business acquisitions and dispositions |
||||||||
| Accounts and notes receivable |
(1,111 | ) | (33,438 | ) | ||||
| Inventories |
2,425 | (38,651 | ) | |||||
| Prepaid expenses and other current assets |
(2,696 | ) | 1,877 | |||||
| Accounts payable |
(22,878 | ) | 46,938 | |||||
| Employee compensation and benefits |
(22,675 | ) | 11,275 | |||||
| Accrued product claims and warranties |
2,901 | 9,196 | ||||||
| Income taxes |
12,780 | 18,872 | ||||||
| Other current liabilities |
25,481 | 1,043 | ||||||
| Pension and post-retirement benefits |
(853 | ) | (12,943 | ) | ||||
| Other assets and liabilities |
(22,195 | ) | 448 | |||||
| Net cash provided by (used for) operating activities |
152,611 | 156,414 | ||||||
| Investing activities |
||||||||
| Capital expenditures |
(35,221 | ) | (28,937 | ) | ||||
| Proceeds from sale of property and equipment |
89 | 243 | ||||||
| Acquisitions, net of cash acquired |
(733,105 | ) | — | |||||
| Other |
119 | (1,286 | ) | |||||
| Net cash provided by (used for) investing activities |
(768,118 | ) | (29,980 | ) | ||||
| Financing activities |
||||||||
| Net short-term borrowings |
16,518 | 115 | ||||||
| Proceeds from long-term debt |
1,320,957 | 335,021 | ||||||
| Repayment of long-term debt |
(661,422 | ) | (403,742 | ) | ||||
| Debt issuance costs |
(8,721 | ) | (50 | ) | ||||
| Excess tax benefits from stock-based compensation |
1,465 | 1,322 | ||||||
| Stock issued to employees, net of shares withheld |
9,551 | (817 | ) | |||||
| Repurchases of common stock |
(287 | ) | — | |||||
| Dividends paid |
(39,739 | ) | (37,700 | ) | ||||
| Net cash provided by (used for) financing activities |
638,322 | (105,851 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents |
101 | (15,399 | ) | |||||
| Change in cash and cash equivalents |
22,916 | 5,184 | ||||||
| Cash and cash equivalents, beginning of period |
46,056 | 33,396 | ||||||
| Cash and cash equivalents, end of period |
$ | 68,972 | $ | 38,580 | ||||
| Free cash flow |
||||||||
| Net cash provided by (used for) operating activities |
$ | 152,611 | $ | 156,414 | ||||
| Capital expenditures |
(35,221 | ) | (28,937 | ) | ||||
| Proceeds from sale of property and equipment |
89 | 243 | ||||||
| Free cash flow |
$ | 117,479 | $ | 127,720 | ||||
Pentair, Inc. and Subsidiaries
Supplemental Financial Information by Reportable Business Segment (Unaudited)
| First Qtr | Second Qtr | Six Months | First Qtr | Second Qtr | Six Months | |||||||||||||||||||
| In thousands |
2011 | 2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||||
| Net sales to external customers |
||||||||||||||||||||||||
| Water Group |
$ | 515,368 | $ | 631,994 | $ | 1,147,362 | $ | 478,038 | $ | 549,318 | $ | 1,027,356 | ||||||||||||
| Technical Products Group |
274,905 | 278,181 | 553,086 | 228,975 | 246,849 | 475,824 | ||||||||||||||||||
| Consolidated |
$ | 790,273 | $ | 910,175 | $ | 1,700,448 | $ | 707,013 | $ | 796,167 | $ | 1,503,180 | ||||||||||||
| Intersegment sales |
||||||||||||||||||||||||
| Water Group |
$ | 455 | $ | 316 | $ | 771 | $ | 517 | $ | 427 | $ | 944 | ||||||||||||
| Technical Products Group |
999 | 1,559 | 2,558 | 703 | 1,047 | 1,750 | ||||||||||||||||||
| Other |
(1,454 | ) | (1,875 | ) | (3,329 | ) | (1,220 | ) | (1,474 | ) | (2,694 | ) | ||||||||||||
| Consolidated |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Operating income (loss) |
||||||||||||||||||||||||
| Water Group |
$ | 56,528 | $ | 84,521 | $ | 141,049 | $ | 42,138 | $ | 75,954 | $ | 118,092 | ||||||||||||
| Technical Products Group |
48,087 | 48,261 | 96,348 | 33,098 | 37,990 | 71,088 | ||||||||||||||||||
| Other |
(18,438 | ) | (23,360 | ) | (41,798 | ) | (11,635 | ) | (13,818 | ) | (25,453 | ) | ||||||||||||
| Consolidated |
$ | 86,177 | $ | 109,422 | $ | 195,599 | $ | 63,601 | $ | 100,126 | $ | 163,727 | ||||||||||||
| Operating income as a percent of net sales |
||||||||||||||||||||||||
| Water Group |
11.0 | % | 13.4 | % | 12.3 | % | 8.8 | % | 13.8 | % | 11.5 | % | ||||||||||||
| Technical Products Group |
17.5 | % | 17.3 | % | 17.4 | % | 14.5 | % | 15.4 | % | 14.9 | % | ||||||||||||
| Consolidated |
10.9 | % | 12.0 | % | 11.5 | % | 9.0 | % | 12.6 | % | 10.9 | % | ||||||||||||
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2011 to the “Adjusted” non-GAAP
excluding the effect of 2011 adjustments (Unaudited)
| Total Pentair In thousands, except per-share data |
First Quarter 2011 |
Second Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2011 |
Year 2011 |
|||||||||||||||
| Net sales |
$ | 790,273 | $ | 910,175 | $ | 865,000 - $885,000 | $ | 905,000 - $925,000 | approx $ | 3.5B | ||||||||||
| Operating income - as reported |
86,177 | 109,422 | 92,000 - 97,000 | 102,000 - 107,000 | approx 389 - 399M | |||||||||||||||
| % of net sales |
10.9 | % | 12.0 | % | 10% - 11% | 11% - 12% | approx 11 | %+ | ||||||||||||
| Adjustments: |
||||||||||||||||||||
| CPT deal related costs |
1,709 | 6,136 | — | — | ||||||||||||||||
| Inventory step-up and customer backlog |
197 | 5,256 | approx 6,000 | approx 2,000 | approx 21M | |||||||||||||||
| Operating income - as adjusted |
88,083 | 120,814 | 98,000 - 103,000 | 104,000 - 109,000 | approx 410 -420M | |||||||||||||||
| % of net sales |
11.1 | % | 13.3 | % | approx 11.5 | % | 11% - 12% | approx 12 | % | |||||||||||
| Net income from continuing operations attributable to Pentair, Inc. - as reported |
50,541 | 66,712 | 51,000 - 54,000 | 58,000 - 63,000 | approx 226 - 234M | |||||||||||||||
| Adjustments net of tax |
1,287 | 8,803 | approx 4,000 | approx 2,000 | approx 15M | |||||||||||||||
| Net income from continuing operations attributable to Pentair, Inc. - as adjusted |
51,828 | 75,515 | 55,000 - 58,000 | 60,000 - 65,000 | approx 242 - 250M | |||||||||||||||
| Continuing earnings per common share attributable to Pentair, Inc. - diluted |
| |||||||||||||||||||
| Diluted earnings per common share - as reported |
$ | 0.51 | $ | 0.67 | $ | 0.51 - $0.54 | $ | 0.58 - $0.63 | $ | 2.27 - $2.35 | ||||||||||
| Adjustments |
0.01 | 0.08 | 0.04 | 0.02 | 0.15 | |||||||||||||||
| Diluted earnings per common share - as adjusted |
$ | 0.52 | $ | 0.75 | $ | 0.55 - $0.58 | $ | 0.60 - $0.65 | $ | 2.42 - $2.50 | ||||||||||
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2011 to the “Adjusted” non-GAAP
excluding the effect of 2011 adjustments (Unaudited)
| Water In thousands |
First Quarter 2011 |
Second Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2011 |
Year 2011 |
|||||||||||||||
| Net sales |
$ | 515,368 | $ | 631,944 | $ | 595,000 - $610,000 | $ | 640,000 - $660,000 | approx $ | 2.40M | ||||||||||
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| Operating income - as reported |
56,528 | 84,521 | 60,000 - 64,000 | 75,000 - 81,000 | 276 - 286M | |||||||||||||||
| % of net sales |
11.0 | % | 13.4 | % | 10 - 11 | % | approx 12 | % | approx 11.5 | %+ | ||||||||||
| Adjustments - inventory step-up and customer backlog |
197 | 5,256 | approx 6,000 | approx 2,000 | approx 14M | |||||||||||||||
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| Operating income - as adjusted |
56,725 | 89,777 | 66,000 - 70,000 | 77,000 -83,000 | 290 - 300M | |||||||||||||||
| % of net sales |
11.0 | % | 14.2 | % | approx 11 | %+ | approx 12 | %+ | approx 12 | %+ | ||||||||||
Pentair, Inc. and Subsidiaries
Reconciliation of the results excluding CPT for the three months ending July 2, 2011
(Unaudited)
| Total Pentair | Water | |||||||||||||||||||||||||||||||
| In thousands |
Net Sales | Net Sales Growth |
Adjusted Operating Income |
Adjusted Return on Sales |
Net Sales | Net Sales Growth |
Adjusted Operating Income |
Adjusted Return on Sales |
||||||||||||||||||||||||
| Including CPT |
$ | 910,175 | 14.3 | % | $ | 120,814 | 13.3 | % | $ | 631,994 | 15.1 | % | $ | 89,777 | 14.2 | % | ||||||||||||||||
| CPT Impact |
53,606 | 6.7 | % | 2,607 | 53,606 | 9.8 | % | 2,607 | ||||||||||||||||||||||||
| Excluding CPT |
$ | 856,569 | 7.6 | % | $ | 118,207 | 13.8 | % | $ | 578,388 | 5.3 | % | $ | 87,170 | 15.1 | % | ||||||||||||||||