Exhibit 99.1
Pentair, Inc.
5500 Wayzata Blvd., Suite 800
MInneapolis, MN 55416
763 545 1730 Tel
763 656 5400 Fax
5500 Wayzata Blvd., Suite 800
MInneapolis, MN 55416
763 545 1730 Tel
763 656 5400 Fax
![(PENTAIR LOGO)](https://capedge.com/proxy/8-K/0000950123-09-051429/c54145c5414501.gif)
News Release
Pentair Reports Third Quarter Net Income Per Share from
Continuing Operations of $0.38; Adjusted EPS of $0.42
Continuing Operations of $0.38; Adjusted EPS of $0.42
• | Reports third quarter sales of $663 million, down 23 percent year-over-year. |
• | Delivers $103 million of free cash flow; Year to date free cash flow at $202 million |
• | Operating margins in Water Group increase year over year; Technical Products adjusted operating margins over 14 percent |
• | Introduces fourth quarter adjusted EPS guidance of $0.40 to $0.44 and updates full year adjusted EPS guidance of $1.40 to $1.44. |
All financial information and period-to-period references are on a continuing operations basis unless otherwise noted. Reconciliations to discontinued operations as well as GAAP and Non-GAAP reconciliations are in the attached financial tables.
MINNEAPOLIS, Minn. — October 20, 2009 — Pentair, Inc. (NYSE: PNR) today announced third quarter 2009 net earnings per diluted share from continuing operations (EPS) of $0.38. This represents a decrease of 12 percent as compared to the $0.43 of EPS in the third quarter last year. Current period results included a negative $0.04 per share impact from restructuring charges. Adjusting for these items, third quarter 2009 EPS was $0.42, compared to adjusted third quarter 2008 EPS of $0.56, a decrease of 25 percent.
Total company sales decreased 23 percent to $663 million, compared with $856 million in the third quarter of 2008. The company delivered third quarter operating income of $67 million. On an adjusted basis, the company delivered operating income of $74 million versus $101 million in the year-ago quarter. The company’s adjusted operating income in the current quarter excluded the impact of additional severance charges associated with the third quarter elimination of 275 positions not included in prior restructuring. Overall, adjusted operating margins for the third quarter contracted 60 basis points to 11.2 percent. The positive impact from productivity and price did not offset the significant negative impact related to lower volumes.
Total company free cash flow was positive $103 million for the quarter. Year-to-date the company has generated $202 million of free cash flow, which is $95 million more than was generated in the first three quarters of 2008. The company said it remains on track to achieve free cash flow greater than $225 million for 2009.
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“We continue to benefit from our cost actions and remain committed to our full year outlook. Additionally, with our strong free cash flow generation and the investments we have maintained in product innovation and sales and marketing we believe the company remains in an excellent position to benefit as markets recover,” said Randall J. Hogan, Pentair chairman and chief executive officer.
third Quarter Business Highlights
The Water Groupdelivered $462 million in sales, a 17 percent decline year-over-year. Sales were down 16 percent excluding foreign exchange.
• | Flow Technologies sales were down 14 percent versus the year-ago quarter, as growth in the company’s global municipal market did not offset declines in commercial, industrial and residential markets. | ||
• | Filtration sales were down 21 percent as sales to global residential, commercial and industrial markets continue to reflect inventory destocking and overall market softness. | ||
• | Global Pool sales were down 16 percent as the prolonged decline in North American residential pool markets persists. |
The Water Group’s third quarter reported operating income totaled $53 million, up 7 percent as compared to $50 million in the same period last year. In the quarter, the Water Group had $3 million in pre-tax restructuring charges associated with severance from recently announced additional headcount reductions. Excluding these items, third quarter 2009 adjusted operating income was $56 million, down 12 percent versus third quarter 2008 adjusted operating income of $63 million. Adjusted operating margins of 12.1 percent were up 80 basis points as benefits from productivity more than offset the negative impact from volume declines, inflation, and pay-as-you-go restructuring costs.
Technical Productsdelivered third quarter 2009 sales of $201 million, a decrease of 32 percent versus the year-earlier period. Sales were down 31 percent excluding the impact of foreign exchange.
• | Global Electrical sales were down 29 percent as industrial customers continue to reduce capital projects and distributors aggressively reduced inventory levels. | ||
• | Global Electronic sales were down 34 percent as each of our major vertical markets contracted. |
Technical Products’ third quarter reported operating income totaled $24 million, down 49 percent compared to $48 million in the same quarter last year. Adjusting for a restructuring charge, operating income was $29 million. Adjusted operating margins were 14.4 percent, down 180 basis points versus the third quarter 2008. In the quarter, the benefits from productivity did not offset the negative impact from volume declines and foreign exchange.
“Overall, our third quarter results were solid given the recessionary environment. The results of our productivity actions were reflected in our Water business adjusted margins which expanded 80 basis points year over year despite a 17 percent sales decline,” said Randall J. Hogan, Pentair chairman and chief executive officer. “Additionally, our Technical Products business produced adjusted margins of over 14 percent despite sales declines of 32 percent, which were worse than anticipated and reflected declines in most major end markets.”
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Outlook
The company introduces its fourth quarter reported 2009 EPS guidance range of $0.37 to $0.41 which would be up when compared to fourth quarter 2008 reported EPS of $0.22. Adjusting for non-recurring items in both years (see attached reconciliation table) fourth quarter adjusted EPS is expected to be $0.40 to $0.44 or essentially flat with the year ago quarter. Fourth quarter sales are expected to be down approximately 14 percent.
The company updates its full year reported 2009 EPS guidance to $1.25 to $1.29, which would be down approximately 50 percent when compared to reported full year 2008 EPS. Adjusting for non-recurring items in both years (see attached reconciliation table) full year adjusted 2009 EPS is expected to be $1.40 to $1.44 or down approximately 35 percent year over year. The company continues to anticipate future non-recurring gains from certain tax items but the timing is uncertain so these items are not included in the current full year reported EPS guidance.
“As anticipated, the benefits of our cost actions are rapidly improving our operating margins and earnings,” said Hogan. “Our fourth quarter EPS guidance demonstrates the results of our structural cost savings as we expect earnings to be flat year over year with higher operating margins despite anticipated sales declines.”
“We continue to position the company for market recovery, which we are seeing in some select markets and regions, and expect our operating margins and earnings growth will demonstrate that much of what we’ve accomplished in 2009 is sustainable,” Hogan added.
Earnings Conference Call
Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will discuss the company’s performance and fourth quarter and full year 2009 guidance on a two-way conference call with investors and a live audio webcast at 9 a.m. Eastern today. Reconciliation of non-GAAP financial measures are set forth in the attachments to this third quarter 2009 earnings release and in the third quarter 2009 earning release 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 web cast and presentation will be archived at the same site following the conclusion of the conference call.
Caution concerning forward-looking statements
Any statements made about the company’s anticipated financial results are forward-looking statements subject to risks and uncertainties such as the breadth and severity of the global economic downturn; the strength of housing and related markets; the ability to implement our restructuring and other cost reduction plans successfully and the risk that expected benefits may not be fully realized or may take longer to realize than expected; foreign currency effects; retail, commercial and industrial demand; product introductions; and pricing and other competitive pressures, as well as other risk factors set forth in our SEC filings. Forward-looking statements included herein are made as of the date hereof, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.
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About Pentair, Inc.
Pentair (www.pentair.com) is a diversified operating company headquartered in 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 house and protect sensitive electronics and electrical components. With 2008 revenues of $3.35 billion, Pentair employs approximately 13,100 people worldwide.
Pentair Contacts:
Todd Gleason
Vice President, Strategic Planning & Investor Relations
Tel.: (763) 656-5570
E-mail:todd.gleason@pentair.com
Todd Gleason
Vice President, Strategic Planning & Investor Relations
Tel.: (763) 656-5570
E-mail:todd.gleason@pentair.com
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
Three months ended | Nine months ended | |||||||||||||||
September 26 | September 27 | September 26 | September 27 | |||||||||||||
In thousands, except per-share data | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Net sales | $ | 662,665 | $ | 855,815 | $ | 1,990,217 | $ | 2,584,339 | ||||||||
Cost of goods sold | 455,698 | 599,862 | 1,417,539 | 1,799,282 | ||||||||||||
Gross profit | 206,967 | 255,953 | 572,678 | 785,057 | ||||||||||||
% of net sales | 31.2 | % | 29.9 | % | 28.8 | % | 30.4 | % | ||||||||
Selling, general and administrative | 125,578 | 154,118 | 361,957 | 437,831 | ||||||||||||
% of net sales | 18.9 | % | 18.0 | % | 18.2 | % | 16.9 | % | ||||||||
Research and development | 14,707 | 16,221 | 43,265 | 47,303 | ||||||||||||
% of net sales | 2.2 | % | 1.9 | % | 2.2 | % | 1.8 | % | ||||||||
Legal settlement | — | — | — | 20,435 | ||||||||||||
Operating income | 66,682 | 85,614 | 167,456 | 279,488 | ||||||||||||
% of net sales | 10.1 | % | 10.0 | % | 8.4 | % | 10.8 | % | ||||||||
Other (income) expense: | ||||||||||||||||
Gain on sale of interest in subsidiaries | — | — | — | (109,648 | ) | |||||||||||
Equity losses of unconsolidated subsidiary | 135 | 669 | 691 | 2,433 | ||||||||||||
Loss on early extinguishment of debt | — | 4,611 | 4,804 | 4,611 | ||||||||||||
Net interest expense | 9,711 | 13,740 | 31,328 | 45,691 | ||||||||||||
% of net sales | 1.5 | % | 1.6 | % | 1.6 | % | 1.8 | % | ||||||||
Income from continuing operations before income taxes and noncontrolling interest | 56,836 | 66,594 | 130,633 | 336,401 | ||||||||||||
Provision for income taxes | 18,159 | 21,592 | 41,808 | 99,099 | ||||||||||||
Income from continuing operations | 38,677 | 45,002 | 88,825 | 237,302 | ||||||||||||
Loss from discontinued operations, net of tax | — | (1,514 | ) | — | (3,652 | ) | ||||||||||
Loss on disposal of discontinued operations, net of tax | (85 | ) | (268 | ) | (153 | ) | (7,405 | ) | ||||||||
Net income before noncontrolling interest | 38,592 | 43,220 | 88,672 | 226,245 | ||||||||||||
Noncontrolling interest | 1,644 | 2,100 | 2,531 | 2,100 | ||||||||||||
Net income attributable to Pentair, Inc. | $ | 36,948 | $ | 41,120 | $ | 86,141 | $ | 224,145 | ||||||||
Net income from continuing operations attributable to Pentair, Inc. | $ | 37,033 | $ | 42,902 | $ | 86,294 | $ | 235,202 | ||||||||
Earnings (loss) per common share attributable to Pentair, Inc. | ||||||||||||||||
Basic | ||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.44 | $ | 0.89 | $ | 2.40 | ||||||||
Discontinued operations | — | (0.02 | ) | — | (0.11 | ) | ||||||||||
Basic earnings per common share | $ | 0.38 | $ | 0.42 | $ | 0.89 | $ | 2.29 | ||||||||
Diluted | ||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.43 | $ | 0.88 | $ | 2.37 | ||||||||
Discontinued operations | — | (0.02 | ) | — | (0.11 | ) | ||||||||||
Diluted earnings per common share | $ | 0.38 | $ | 0.41 | $ | 0.88 | $ | 2.26 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 97,496 | 97,827 | 97,495 | 98,049 | ||||||||||||
Diluted | 98,641 | 99,319 | 98,329 | 99,372 | ||||||||||||
Cash dividends declared per common share | $ | 0.18 | $ | 0.17 | $ | 0.54 | $ | 0.51 |
Pentair, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited)
September 26 | December 31 | September 27 | ||||||||||
In thousands | 2009 | 2008 | 2008 | |||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 50,214 | $ | 39,344 | $ | 93,544 | ||||||
Accounts and notes receivable, net | 423,125 | 461,081 | 511,779 | |||||||||
Inventories | 366,416 | 417,287 | 417,525 | |||||||||
Deferred tax assets | 52,997 | 51,354 | 50,061 | |||||||||
Prepaid expenses and other current assets | 48,446 | 63,113 | 53,383 | |||||||||
Current assets of discontinued operations | — | — | 18,443 | |||||||||
Total current assets | 941,198 | 1,032,179 | 1,144,735 | |||||||||
Property, plant and equipment, net | 339,412 | 343,881 | 359,543 | |||||||||
Other assets | ||||||||||||
Goodwill | 2,127,082 | 2,101,851 | 2,128,430 | |||||||||
Intangibles, net | 506,837 | 515,508 | 534,898 | |||||||||
Other | 67,723 | 59,794 | 69,873 | |||||||||
Non-current assets of discontinued operations | — | — | 13,646 | |||||||||
Total other assets | 2,701,642 | 2,677,153 | 2,746,847 | |||||||||
Total assets | $ | 3,982,252 | $ | 4,053,213 | $ | 4,251,125 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Current liabilities | ||||||||||||
Short-term borrowings | $ | 16 | $ | — | $ | — | ||||||
Current maturities of long-term debt | 98 | 624 | 3,913 | |||||||||
Accounts payable | 199,002 | 217,898 | 224,646 | |||||||||
Employee compensation and benefits | 78,225 | 90,210 | 106,939 | |||||||||
Current pension and post-retirement benefits | 8,890 | 8,890 | 8,557 | |||||||||
Accrued product claims and warranties | 33,179 | 41,559 | 42,618 | |||||||||
Income taxes | 24,302 | 5,451 | 9,454 | |||||||||
Accrued rebates and sales incentives | 27,989 | 28,897 | 35,748 | |||||||||
Other current liabilities | 95,367 | 104,975 | 100,890 | |||||||||
Current liabilities of discontinued operations | — | — | 252 | |||||||||
Total current liabilities | 467,068 | 498,504 | 533,017 | |||||||||
Other liabilities | ||||||||||||
Long-term debt | 814,857 | 953,468 | 1,035,150 | |||||||||
Pension and other retirement compensation | 264,472 | 270,139 | 164,776 | |||||||||
Post-retirement medical and other benefits | 32,019 | 34,723 | 34,218 | |||||||||
Long-term income taxes payable | 27,792 | 28,139 | 25,356 | |||||||||
Deferred tax liabilities | 153,984 | 146,559 | 183,780 | |||||||||
Other non-current liabilities | 102,924 | 101,612 | 96,941 | |||||||||
Non-current liabilities of discontinued operations | — | — | 1,665 | |||||||||
Total liabilities | 1,863,116 | 2,033,144 | 2,074,903 | |||||||||
Shareholders’ equity | 2,119,136 | 2,020,069 | 2,176,222 | |||||||||
Total liabilities and shareholders’ equity | $ | 3,982,252 | $ | 4,053,213 | $ | 4,251,125 | ||||||
Days sales in accounts receivable (13 month moving average) | 62 | 57 | 56 | |||||||||
Days inventory on hand (13 month moving average) | 92 | 79 | 76 | |||||||||
Days in accounts payable (13 month moving average) | 65 | 59 | 58 |
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine months ended | ||||||||
September 26 | September 27 | |||||||
In thousands | 2009 | 2008 | ||||||
Operating activities | ||||||||
Net income before noncontrolling interest | $ | 88,672 | $ | 226,245 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
Loss from discontinued operations | — | 3,652 | ||||||
Loss on disposal of discontinued operations | 153 | 7,405 | ||||||
Equity losses of unconsolidated subsidiary | 691 | 2,433 | ||||||
Depreciation | 44,186 | 44,929 | ||||||
Amortization | 22,054 | 20,220 | ||||||
Deferred income taxes | 170 | 25,905 | ||||||
Stock compensation | 13,092 | 15,948 | ||||||
Excess tax benefits from stock-based compensation | (754 | ) | (1,617 | ) | ||||
(Gain) loss on sale of assets | (177 | ) | 87 | |||||
Gain on sale of interest in subsidiaries | — | (109,648 | ) | |||||
Changes in assets and liabilities, net of effects of business acquisitions and dispositions | ||||||||
Accounts and notes receivable | 46,718 | (55,449 | ) | |||||
Inventories | 56,459 | (27,109 | ) | |||||
Prepaid expenses and other current assets | 16,061 | (15,785 | ) | |||||
Accounts payable | (18,659 | ) | 2,230 | |||||
Employee compensation and benefits | (17,883 | ) | (7,303 | ) | ||||
Accrued product claims and warranties | (8,565 | ) | (6,572 | ) | ||||
Income taxes | 19,166 | (6,224 | ) | |||||
Other current liabilities | (9,699 | ) | 9,040 | |||||
Pension and post-retirement benefits | (12,251 | ) | 592 | |||||
Other assets and liabilities | 747 | 13,143 | ||||||
Net cash provided by (used for) continuing operations | 240,181 | 142,122 | ||||||
Net cash provided by (used for) operating activities of discontinued operations | (1,531 | ) | (5,243 | ) | ||||
Net cash provided by (used for) operating activities | 238,650 | 136,879 | ||||||
Investing activities | ||||||||
Capital expenditures | (39,306 | ) | (39,769 | ) | ||||
Proceeds from sale of property and equipment | 817 | 4,304 | ||||||
Acquisitions, net of cash acquired or received | — | (1,609 | ) | |||||
Divestitures | 1,506 | 29,526 | ||||||
Other | (3,272 | ) | (7 | ) | ||||
Net cash provided by (used for) investing activities | (40,255 | ) | (7,555 | ) | ||||
Financing activities | ||||||||
Net short-term borrowings (repayments) | (16 | ) | (14,180 | ) | ||||
Proceeds from long-term debt | 490,000 | 479,405 | ||||||
Repayment of long-term debt | (628,776 | ) | (486,492 | ) | ||||
Debt issuance costs | (50 | ) | (114 | ) | ||||
Excess tax benefits from stock-based compensation | 754 | 1,617 | ||||||
Proceeds from exercise of stock options | 1,729 | 5,140 | ||||||
Repurchases of common stock | — | (37,342 | ) | |||||
Dividends paid | (53,162 | ) | (50,541 | ) | ||||
Net cash provided by (used for) financing activities | (189,521 | ) | (102,507 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 1,996 | (4,068 | ) | |||||
Change in cash and cash equivalents | 10,870 | 22,749 | ||||||
Cash and cash equivalents, beginning of period | 39,344 | 70,795 | ||||||
Cash and cash equivalents, end of period | $ | 50,214 | $ | 93,544 | ||||
Free cash flow | ||||||||
Net cash provided by (used for) continuing operations | $ | 240,181 | $ | 142,122 | ||||
Capital expenditures | (39,306 | ) | (39,769 | ) | ||||
Proceeds from sale of property and equipment | 817 | 4,304 | ||||||
Free cash flow | $ | 201,692 | $ | 106,657 | ||||
Pentair, Inc. and Subsidiaries
Supplemental Financial Information by Reportable Business Segment (Unaudited)
Supplemental Financial Information by Reportable Business Segment (Unaudited)
First Qtr | Second Qtr | Third Qtr | Nine Months | |||||||||||||
In thousands | 2009 | 2009 | 2009 | 2009 | ||||||||||||
Net sales to external customers | ||||||||||||||||
Water | $ | 423,932 | $ | 486,990 | $ | 461,570 | $ | 1,372,492 | ||||||||
Technical Products | 209,908 | 206,722 | 201,095 | 617,725 | ||||||||||||
Consolidated | $ | 633,840 | $ | 693,712 | $ | 662,665 | $ | 1,990,217 | ||||||||
Intersegment sales | ||||||||||||||||
Water | $ | 289 | $ | 198 | $ | 284 | $ | 771 | ||||||||
Technical Products | 233 | 600 | 544 | 1,377 | ||||||||||||
Other | (522 | ) | (798 | ) | (828 | ) | (2,148 | ) | ||||||||
Consolidated | $ | — | $ | — | $ | — | $ | — | ||||||||
Operating income (loss) | ||||||||||||||||
Water | $ | 26,976 | $ | 49,781 | $ | 53,085 | $ | 129,842 | ||||||||
Technical Products | 20,462 | 23,578 | 24,356 | 68,396 | ||||||||||||
Other | (10,224 | ) | (9,799 | ) | (10,759 | ) | (30,782 | ) | ||||||||
Consolidated | $ | 37,214 | $ | 63,560 | $ | 66,682 | $ | 167,456 | ||||||||
Operating income as a percent of net sales | ||||||||||||||||
Water | 6.4 | % | 10.2 | % | 11.5 | % | 9.5 | % | ||||||||
Technical Products | 9.7 | % | 11.4 | % | 12.1 | % | 11.1 | % | ||||||||
Consolidated | 5.9 | % | 9.2 | % | 10.1 | % | 8.4 | % |
First Qtr | Second Qtr | Third Qtr | Nine Months | |||||||||||||
In thousands | 2008 | 2008 | 2008 | 2008 | ||||||||||||
Net sales to external customers | ||||||||||||||||
Water | $ | 544,686 | $ | 594,118 | $ | 557,976 | $ | 1,696,780 | ||||||||
Technical Products | 285,460 | 304,260 | 297,839 | 887,559 | ||||||||||||
Consolidated | $ | 830,146 | $ | 898,378 | $ | 855,815 | $ | 2,584,339 | ||||||||
Intersegment sales | ||||||||||||||||
Water | $ | 372 | $ | 139 | $ | 305 | $ | 816 | ||||||||
Technical Products | 1,138 | 1,034 | 765 | 2,937 | ||||||||||||
Other | (1,510 | ) | (1,173 | ) | (1,070 | ) | (3,753 | ) | ||||||||
Consolidated | $ | — | $ | — | $ | — | $ | — | ||||||||
Operating income (loss) | ||||||||||||||||
Water | $ | 65,035 | $ | 59,475 | $ | 49,684 | $ | 174,194 | ||||||||
Technical Products | 45,337 | 49,732 | 47,585 | 142,654 | ||||||||||||
Other | (13,045 | ) | (12,660 | ) | (11,655 | ) | (37,360 | ) | ||||||||
Consolidated | $ | 97,327 | $ | 96,547 | $ | 85,614 | $ | 279,488 | ||||||||
Operating income as a percent of net sales | ||||||||||||||||
Water | 11.9 | % | 10.0 | % | 8.9 | % | 10.3 | % | ||||||||
Technical Products | 15.9 | % | 16.3 | % | 16.0 | % | 16.1 | % | ||||||||
Consolidated | 11.7 | % | 10.8 | % | 10.0 | % | 10.8 | % |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2009 to the “Adjusted” non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
Reconciliation of the GAAP “As Reported” year ending December 31, 2009 to the “Adjusted” non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands, except per-share data | 2009 | 2009 | 2009 | 2009 | 2009 | |||||||||||||||
Net sales | $ | 633,840 | $ | 693,712 | $ | 662,665 | $ | 655,000-$670,000 | approx $2,650M | |||||||||||
Operating income — as reported | 37,214 | 63,560 | 66,682 | 67,500-72,500 | approx 237,500 | |||||||||||||||
% of net sales | 5.9 | % | 9.2 | % | 10.1 | % | approx 10.6% | approx 9.0% | ||||||||||||
Adjustments: | ||||||||||||||||||||
Restructuring and asset impairment | 2,824 | 2,944 | 7,295 | approx 4,500 | approx 17,500 | |||||||||||||||
Operating income — as adjusted | 40,038 | 66,504 | 73,977 | 72,000-77,000 | approx 255,000 | |||||||||||||||
% of net sales | 6.3 | % | 9.6 | % | 11.2 | % | approx 11.3% | approx 9.6% | ||||||||||||
Net income from continuing operations attributable to Pentair, Inc. — as reported | 17,255 | 32,006 | 37,033 | 36,500-40,500 | approx 125,000 | |||||||||||||||
Adjustments — tax affected | ||||||||||||||||||||
Restructuring and asset impairment | 1,864 | 1,943 | 4,815 | approx 3,000 | approx 11,500 | |||||||||||||||
Bond tender | — | 3,171 | — | — | 3,171 | |||||||||||||||
Net income from continuing operations attributable to Pentair, Inc. — as adjusted | 19,119 | 37,120 | 41,848 | 39,500 - 43,500 | approx 140,000 | |||||||||||||||
Continuing earnings per common share attributable to Pentair, Inc. — diluted | ||||||||||||||||||||
Diluted earnings per common share — as reported | $ | 0.18 | $ | 0.33 | $ | 0.38 | $ | 0.37 - $0.41 | $ | 1.25 - $1.29 | ||||||||||
Adjustments | 0.02 | 0.05 | 0.04 | approx 0.03 | approx 0.15 | |||||||||||||||
Diluted earnings per common share — as adjusted | $ | 0.20 | $ | 0.38 | $ | 0.42 | $ | 0.40 - $0.44 | $ | 1.40 - $1.44 | ||||||||||
Weighted average common shares outstanding — Diluted | 97,966 | 98,422 | 98,641 | 98,900 | 98,500 |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2008 to the “Adjusted” non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
Reconciliation of the GAAP “As Reported” year ending December 31, 2008 to the “Adjusted” non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands, except per-share data | 2008 | 2008 | 2008 | 2008 | 2008 | |||||||||||||||
Net sales | $ | 830,146 | $ | 898,378 | $ | 855,815 | $ | 767,637 | $ | 3,351,976 | ||||||||||
Operating income — as reported | 97,327 | 96,547 | 85,614 | 45,197 | 324,685 | |||||||||||||||
% of net sales | 11.7 | % | 10.7 | % | 10.0 | % | 5.9 | % | 9.7 | % | ||||||||||
Adjustments: | ||||||||||||||||||||
Restructuring and asset impairment | — | 2,586 | 15,207 | 28,377 | 46,170 | |||||||||||||||
Horizon settlement | — | 20,435 | — | — | 20,435 | |||||||||||||||
Operating income — as adjusted | 97,327 | 119,568 | 100,821 | 73,574 | 391,290 | |||||||||||||||
% of net sales | 11.7 | % | 13.3 | % | 11.8 | % | 9.6 | % | 11.7 | % | ||||||||||
Net income from continuing operations attributable to Pentair, Inc. — as reported | 52,463 | 139,837 | 42,902 | 21,161 | 256,363 | |||||||||||||||
Adjustments — tax affected | ||||||||||||||||||||
Restructuring and asset impairment | — | 1,707 | 10,037 | 18,729 | 30,473 | |||||||||||||||
Horizon settlement | — | 13,487 | — | — | 13,487 | |||||||||||||||
Gain on PRF transaction | — | (85,832 | ) | — | — | (85,832 | ) | |||||||||||||
Bond tender | — | — | 3,043 | — | 3,043 | |||||||||||||||
Net income from continuing operations attributable to Pentair, Inc. — as adjusted | 52,463 | 69,199 | 55,982 | 39,890 | 217,534 | |||||||||||||||
Continuing earnings per common share attributable to Pentair, Inc. — diluted | ||||||||||||||||||||
Diluted earnings per common share — as reported | $ | 0.53 | $ | 1.41 | $ | 0.43 | $ | 0.22 | $ | 2.59 | ||||||||||
Adjustments | — | (0.71 | ) | 0.13 | 0.19 | (0.39 | ) | |||||||||||||
Diluted earnings per common share — as adjusted | $ | 0.53 | $ | 0.70 | $ | 0.56 | $ | 0.41 | $ | 2.20 | ||||||||||
Weighted average common shares outstanding — Diluted | 99,558 | 99,509 | 99,319 | 98,299 | 99,068 |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2009 to the “Adjusted” non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
Reconciliation of the GAAP “As Reported” year ending December 31, 2009 to the “Adjusted” non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands | 2009 | 2009 | 2009 | 2009 | 2009 | |||||||||||||||
Water | ||||||||||||||||||||
Net sales | $ | 423,932 | $ | 486,990 | $ | 461,570 | $ | 445,000-$455,000 | approx $1,825M | |||||||||||
Operating income — as reported | 26,976 | 49,781 | 53,085 | 52,000-57,000 | 182,000-187,000 | |||||||||||||||
% of net sales | 6.4 | % | 10.2 | % | 11.5 | % | 11.4% - 12.8 | % | approx 10.1% | |||||||||||
Adjustments — restructuring and asset impairment | 1,464 | 1,460 | 2,639 | approx 1,500 | approx 7,000 | |||||||||||||||
Operating income — as adjusted | 28,440 | 51,241 | 55,724 | 53,500-58,500 | 189,000-194,000 | |||||||||||||||
% of net sales | 6.7 | % | 10.5 | % | 12.1 | % | 11.8% - 13.1 | % | approx 10.5% | |||||||||||
Technical Products | ||||||||||||||||||||
Net sales | $ | 209,908 | $ | 206,722 | $ | 201,095 | $ | 210,000-$215,000 | approx $830M | |||||||||||
Operating income — as reported | 20,462 | 23,578 | 24,356 | 27,000-32,000 | 95,500-100,500 | |||||||||||||||
% of net sales | 9.7 | % | 11.4 | % | 12.1 | % | 12.6% - 15.2 | % | approx 11.8% | |||||||||||
Adjustments — restructuring and asset impairment | 792 | 1,139 | 4,557 | approx 3,000 | approx 9,500 | |||||||||||||||
Operating income — as adjusted | 21,254 | 24,717 | 28,913 | 30,000-35,000 | 105,000-110,000 | |||||||||||||||
% of net sales | 10.1 | % | 12.0 | % | 14.4 | % | 14.0% - 16.7 | % | approx 13.0% |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2008 to the “Adjusted” non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
Reconciliation of the GAAP “As Reported” year ending December 31, 2008 to the “Adjusted” non-GAAP
excluding the effect of 2008 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands | 2008 | 2008 | 2008 | 2008 | 2008 | |||||||||||||||
Water | ||||||||||||||||||||
Net sales | $ | 544,686 | $ | 594,118 | $ | 557,976 | $ | 509,362 | $ | 2,206,142 | ||||||||||
Operating income — as reported | 65,035 | 59,475 | 49,684 | 32,163 | 206,357 | |||||||||||||||
% of net sales | 11.9 | % | 10.0 | % | 8.9 | % | 6.3 | % | 9.4 | % | ||||||||||
Adjustments | ||||||||||||||||||||
Restructuring and asset impairment | — | 2,157 | 13,438 | 19,628 | 35,223 | |||||||||||||||
Horizon settlement | — | 20,435 | — | — | 20,435 | |||||||||||||||
Operating income — as adjusted | 65,035 | 82,067 | 63,122 | 51,791 | 262,015 | |||||||||||||||
% of net sales | 11.9 | % | 13.8 | % | 11.3 | % | 10.2 | % | 11.9 | % | ||||||||||
Technical Products | ||||||||||||||||||||
Net sales | $ | 285,460 | $ | 304,260 | $ | 297,839 | $ | 258,275 | $ | 1,145,834 | ||||||||||
Operating income — as reported | 45,337 | 49,732 | 47,585 | 26,661 | 169,315 | |||||||||||||||
% of net sales | 15.9 | % | 16.3 | % | 16.0 | % | 10.3 | % | 14.8 | % | ||||||||||
Adjustments — restructuring and asset impairment | — | 429 | 633 | 7,209 | 8,271 | |||||||||||||||
Operating income — as adjusted | 45,337 | 50,161 | 48,218 | 33,870 | 177,586 | |||||||||||||||
% of net sales | 15.9 | % | 16.4 | % | 16.2 | % | 13.1 | % | 15.5 | % |