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/0000950137-08-012849/c47153c4715300.gif)
News Release
Pentair Reports Third Quarter Net Income Per Share from
Continuing Operations of $0.42; Adjusted EPS of $0.55, up 2%
Continuing Operations of $0.42; Adjusted EPS of $0.55, up 2%
• | Reports third quarter sales of $864 million, up 5 percent versus the third quarter 2007 | ||
• | Delivers earnings per share from continuing operations (EPS) of $0.42 on a reported basis and adjusted* EPS of $0.55, up 2 percent | ||
• | Introduces fourth quarter guidance and updates full year guidance |
* | Adjusted 2008 and 2007 EPS exclude the impact of gains/losses from acquisitions and divestitures, the settlement of the Horizon litigation and the negative impact associated with restructuring costs and other market related actions. Adjusted 2008 and 2007 Operating Income and Margins exclude the settlement of the Horizon litigation, the negative impact associated with restructuring costs and other market related actions in the respective period. 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 21, 2008 — Pentair, Inc. (NYSE: PNR) today announced third quarter 2008 net earnings per diluted share from continuing operations (EPS) of $0.42. This represents a decrease of 29 percent as compared to the $0.59 of reported EPS from continuing operations in the third quarter last year. Current period results include a negative $0.13 per share impact from restructuring charges and other market-related actions. Adjusting for these items, third quarter 2008 EPS was $0.55, up two percent over year-earlier adjusted EPS of $0.54.
Total company sales increased five percent to $864 million, compared with $821 million in the third quarter of 2007. The company delivered third quarter operating income of $84 million. On an adjusted basis, the company delivered operating income of $99 million versus $102 million in the year-ago quarter. The company’s adjusted operating income includes the impact of approximately $6 million of integration, intangible amortization and inventory step-up expenses related to the second quarter 2008 transaction with GE Water & Process Technologies, a unit of the General Electric Company (GE), to combine the companies’ respective residential water filtration businesses. Overall, adjusted operating margins for the third quarter contracted 100 basis points to 11.5 percent. A positive 400 basis point impact from price and productivity did not offset a negative 500 basis point impact related to total inflation, foreign exchange and lower volumes.
Pentair generated free cash flow of $70 million for the quarter. Year-to-date, the company has generated $128 million of free cash flow. These figures exclude $23 million associated with the settlement of the Horizon litigation case. The company said it expects to achieve free cash flow greater than adjusted net income for 2008.
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“Overall, our businesses performed well in the third quarter as we navigated through increasingly more difficult and less predictable end-markets. Our strong balance sheet, with stable financing arrangements in place, enabled us to look past many of the credit issues troubling other firms and focus on our growth and productivity strategies,” said Randall J. Hogan, Pentair chairman and chief executive officer.
Third Quarter Business Highlights
The Water Groupdelivered $566 million in sales, up four percent year over year. Organic sales were flat; excluding the impact of foreign exchange, organic sales were down one percent driven by continuing softness in the North American residential markets and slowing Western European markets. In Asia, the Middle East and Eastern Europe, Water sales increased at double-digit rates.
• | Global Flow Technologies sales were up seven percent versus the year-ago quarter, as sales of pump equipment for global commercial, municipal and agricultural markets outpaced declines in North American residential markets. | ||
• | Global Filtration sales grew ten percent, or down one percent excluding the increased sales associated with the recent transaction with GE in residential water filtration. Sales increases in the industrial filtration, food service and desalination vertical markets offset declines in the North American residential market. | ||
• | Global Pool and Spa sales were down ten percent as the prolonged decline in North American residential pool and spa markets continued to impact sales. | ||
• | International Water sales grew as demand in Asia-Pacific produced sales growth of 21 percent. Sales in Europe, Middle East and Africa were essentially flat versus last year as Western European economies slowed in the third quarter. |
The Water Group’s third quarter reported operating income totaled $48 million, down 15 percent as compared to $56 million in the same period last year. In the quarter, the company had $14 million in pre-tax restructuring charges associated with severance from headcount reductions and costs related to facility rationalizations. Excluding these items, adjusted operating income was $61 million, down seven percent versus $66 million a year-ago. Adjusted operating margins of 10.8 percent were down 130 basis points as benefits from productivity, price and product mix did not offset the negative impact from inflation, volume declines, inventory step-up and integration expenses associated with the residential filtration business combination with GE.
Technical Productsdelivered third quarter 2008 sales of $298 million, an increase of eight percent versus the year-earlier period. Sales were up five percent excluding the impact of foreign exchange.
• | Global Electrical sales were up nine percent, led by continued strength in several key vertical markets, price increases and new product introductions. | ||
• | Global Electronic sales were up seven percent. In Asia, electronic sales were up over 20 percent while sales in Europe were up five percent in local currencies. North American sales were down nine percent. | ||
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Technical Products’ third quarter reported operating income totaled $48 million, up three percent compared to $46 million in the same quarter last year. Reported operating margins were 16.0 percent. Adjusting for a modest restructuring charge, operating margins were 16.2 percent, down 30 basis points versus the third quarter 2007. In the quarter, the benefits from volume, productivity and price did not fully offset the negative impact from inflation and foreign exchange.
“We continue to perform well in our respective markets. In the third quarter, our Technical Products business maintained outstanding market and financial momentum - achieving solid results even when compared against a record quarter a year ago. In our Water businesses, we continue to drive solid growth in our industrial, commercial and municipal Water markets globally to help compensate for severe declines in the North American residential market and slowing Western European markets,” Hogan said.
Outlook
The company introduced its fourth quarter reported 2008 EPS guidance range of $0.17 to $0.20. Adjusting for charges associated with restructuring, fourth quarter EPS is expected to be $0.52 to $0.55, approximately flat when compared against the fourth quarter 2007. The fourth quarter 2008 adjusted EPS range includes approximately $0.03 per share of expenses associated mainly with integration and intangibles amortization charges related to the GE residential filtration transaction.
The company updates its full year 2008 reported EPS guidance range to $2.51 to $2.54, up 18 to 20 percent versus reported full year 2007 EPS. Adjusting for the GE transaction gain, the settlement of the Horizon litigation, restructuring actions and the expenses incurred in connection with the August repurchase of $116 million of the company’s publicly-held bonds, full year EPS is expected to be $2.28 to $2.31, up about 10 percent versus adjusted full year 2007 EPS. The full year adjusted EPS guidance includes approximately $0.07 per share of expenses mainly associated with integration, inventory step-up, and intangibles amortization charges related to the GE residential filtration transaction.
“We expect our positive performance to continue in many of our non-residential and international Water and global Technical Products’ businesses. However, with more difficult economic conditions on the horizon, we are taking additional actions to improve our cost structure and better position the company to continue to control our own destiny,” Hogan said.
“We expect that unpredictable end-markets will soften sales volumes but we have a solid path to deliver full year earnings, which remains fundamentally the same as that which we have outlined in previous quarters. We have been battling very difficult residential end-markets for several years now, which gives us confidence we can continue to navigate challenging environments. Additionally, we remain committed to delivering on the long-term strategic outlook we presented at our September 10th Investor and Analyst Day and we have not wavered from our multi-year outlook,” Hogan added.
Presentations regarding the company’s long-term strategic outlook discussed at the Pentair 2008 Investor and Analyst Day can be accessed at www.pentair.com/Investors.aspx.
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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 2008 guidance on a two-way conference call with investors at 12:00 p.m. Eastern today. Reconciliation of non-GAAP financial measures are set forth in the attachments to this third quarter 2008 earnings release and in the third quarter 2008 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 continued economic growth, including the strength of housing and related markets; the ability to integrate acquisitions successfully and the risk that expected synergies may not be fully realized or may take longer to realize than expected; foreign currency effects; retail 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.
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 2007 revenues of $3.30 billion, Pentair employs approximately 16,000 people worldwide.
Pentair Contacts: | ||||
Todd Gleason | Rachael Jarosh | |||
Vice President, Investor Relations | Vice President, Communications | |||
Tel.: (763) 656-5570 | Tel.: (763) 656-5280 | |||
E-mail:todd.gleason@pentair.com | E-mail:rachael.jarosh@pentair.com |
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Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
Three months ended | Nine months ended | |||||||||||||||
September 27 | September 29 | September 27 | September 29 | |||||||||||||
In thousands, except per-share data | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Net sales | $ | 864,167 | $ | 821,215 | $ | 2,614,328 | $ | 2,513,359 | ||||||||
Cost of goods sold | 608,854 | 576,519 | 1,829,622 | 1,753,183 | ||||||||||||
Gross profit | 255,313 | 244,696 | 784,706 | 760,176 | ||||||||||||
% of net sales | 29.5 | % | 29.8 | % | 30.0 | % | 30.2 | % | ||||||||
Selling, general and administrative | 154,972 | 137,100 | 439,929 | 428,463 | ||||||||||||
% of net sales | 17.9 | % | 16.7 | % | 16.8 | % | 17.0 | % | ||||||||
Research and development | 16,691 | 14,446 | 48,871 | 44,204 | ||||||||||||
% of net sales | 1.9 | % | 1.8 | % | 1.9 | % | 1.8 | % | ||||||||
Legal settlement | — | — | 20,435 | — | ||||||||||||
Operating income | 83,650 | 93,150 | 275,471 | 287,509 | ||||||||||||
% of net sales | 9.7 | % | 11.3 | % | 10.5 | % | 11.4 | % | ||||||||
Other (income) expense: | ||||||||||||||||
Gain on sale of interest in subsidiaries | — | — | (109,648 | ) | — | |||||||||||
Equity losses of unconsolidated subsidiary | 669 | 845 | 2,433 | 1,838 | ||||||||||||
Loss on early extinguishment of debt | 4,611 | — | 4,611 | — | ||||||||||||
Net interest expense | 13,735 | 18,157 | 45,685 | 51,351 | ||||||||||||
% of net sales | 1.6 | % | 2.2 | % | 1.7 | % | 2.0 | % | ||||||||
Income from continuing operations before income taxes and minority interest | 64,635 | 74,148 | 332,390 | 234,320 | ||||||||||||
% of net sales | 7.5 | % | 9.0 | % | 12.7 | % | 9.3 | % | ||||||||
Provision for income taxes | 21,146 | 14,869 | 97,522 | 71,419 | ||||||||||||
Effective tax rate | 32.7 | % | 20.1 | % | 29.3 | % | 30.5 | % | ||||||||
Minority interest | 2,100 | — | 2,100 | — | ||||||||||||
Income from continuing operations | 41,389 | 59,279 | 232,768 | 162,901 | ||||||||||||
Loss from discontinued operations, net of tax | — | (1,235 | ) | (1,217 | ) | (726 | ) | |||||||||
Gain (loss) on disposal of discontinued operations, net of tax | (269 | ) | — | (7,406 | ) | 207 | ||||||||||
Net income | $ | 41,120 | $ | 58,044 | $ | 224,145 | $ | 162,382 | ||||||||
Earnings (loss) per common share | ||||||||||||||||
Basic | ||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.60 | $ | 2.37 | $ | 1.65 | ||||||||
Discontinued operations | — | (0.01 | ) | (0.08 | ) | (0.01 | ) | |||||||||
Basic earnings per common share | $ | 0.42 | $ | 0.59 | $ | 2.29 | $ | 1.64 | ||||||||
Diluted | ||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.59 | $ | 2.34 | $ | 1.63 | ||||||||
Discontinued operations | — | (0.01 | ) | (0.08 | ) | (0.01 | ) | |||||||||
Diluted earnings per common share | $ | 0.42 | $ | 0.58 | $ | 2.26 | $ | 1.62 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 97,827 | 98,747 | 98,049 | 98,859 | ||||||||||||
Diluted | 99,319 | 100,365 | 99,372 | 100,339 | ||||||||||||
Cash dividends declared per common share | $ | 0.17 | $ | 0.15 | $ | 0.51 | $ | 0.45 |
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Pentair, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited)
September 27 | December 31 | September 29 | ||||||||||
In thousands | 2008 | 2007 | 2007 | |||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 93,544 | $ | 70,795 | $ | 56,555 | ||||||
Accounts and notes receivable, net | 517,240 | 466,675 | 473,496 | |||||||||
Inventories | 430,386 | 392,416 | 395,638 | |||||||||
Deferred tax assets | 50,061 | 50,511 | 52,038 | |||||||||
Prepaid expenses and other current assets | 53,504 | 35,908 | 47,746 | |||||||||
Current assets of discontinued operations | — | 21,716 | 26,868 | |||||||||
Total current assets | 1,144,735 | 1,038,021 | 1,052,341 | |||||||||
Property, plant and equipment, net | 363,352 | 365,990 | 356,594 | |||||||||
Other assets | ||||||||||||
Goodwill | 2,134,031 | 2,004,720 | 1,989,620 | |||||||||
Intangibles, net | 539,133 | 491,263 | 492,732 | |||||||||
Other | 69,874 | 82,237 | 77,084 | |||||||||
Non-current assets of discontinued operations | — | 18,383 | 18,500 | |||||||||
Total other assets | 2,743,038 | 2,596,603 | 2,577,936 | |||||||||
Total assets | $ | 4,251,125 | $ | 4,000,614 | $ | 3,986,871 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Current liabilities | ||||||||||||
Short-term borrowings | $ | — | $ | 13,586 | $ | 4,800 | ||||||
Current maturities of long-term debt | 3,913 | 5,075 | 4,992 | |||||||||
Accounts payable | 225,928 | 229,937 | 204,360 | |||||||||
Employee compensation and benefits | 107,163 | 111,475 | 107,271 | |||||||||
Current pension and post-retirement benefits | 8,557 | 8,557 | 7,918 | |||||||||
Accrued product claims and warranties | 43,012 | 49,382 | 47,719 | |||||||||
Income taxes | 7,806 | 12,919 | 10,862 | |||||||||
Accrued rebates and sales incentives | 35,907 | 36,663 | 36,910 | |||||||||
Other current liabilities | 101,662 | 90,377 | 111,833 | |||||||||
Current liabilities of discontinued operations | — | 2,935 | 5,431 | |||||||||
Total current liabilities | 533,948 | 560,906 | 542,096 | |||||||||
Other liabilities | ||||||||||||
Long-term debt | 1,035,150 | 1,041,925 | 1,102,707 | |||||||||
Pension and other retirement compensation | 164,776 | 161,042 | 222,098 | |||||||||
Post-retirement medical and other benefits | 34,218 | 37,147 | 46,499 | |||||||||
Long-term income taxes payable | 25,356 | 21,306 | 18,214 | |||||||||
Deferred tax liabilities | 184,514 | 167,633 | 134,683 | |||||||||
Other non-current liabilities | 96,941 | 97,086 | 89,898 | |||||||||
Non-current liabilities of discontinued operations | — | 2,698 | 2,519 | |||||||||
Total liabilities | 2,074,903 | 2,089,743 | 2,158,714 | |||||||||
Minority interest | 120,230 | — | — | |||||||||
Shareholders’ equity | 2,055,992 | 1,910,871 | 1,828,157 | |||||||||
Total liabilities and shareholders’ equity | $ | 4,251,125 | $ | 4,000,614 | $ | 3,986,871 | ||||||
Days sales in accounts receivable (13 month moving average) | 56 | 53 | 54 | |||||||||
Days inventory on hand (13 month moving average) | 78 | 75 | 76 | |||||||||
Days in accounts payable (13 month moving average) | 57 | 54 | 54 | |||||||||
Debt/total capital | 33.6 | % | 35.7 | % | 37.8 | % |
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Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine months ended | ||||||||
September 27 | September 29 | |||||||
In thousands | 2008 | 2007 | ||||||
Operating activities | ||||||||
Net income | $ | 224,145 | $ | 162,382 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
(Income) loss from discontinued operations | 1,217 | 726 | ||||||
(Gain) loss on disposal of discontinued operations | 7,406 | (207 | ) | |||||
Equity losses of unconsolidated subsidiary | 2,433 | 1,838 | ||||||
Minority interest | 2,100 | — | ||||||
Depreciation | 45,759 | 45,538 | ||||||
Amortization | 20,220 | 18,635 | ||||||
Deferred income taxes | 25,927 | (18,883 | ) | |||||
Stock compensation | 15,948 | 17,071 | ||||||
Excess tax benefits from stock-based compensation | (1,617 | ) | (2,706 | ) | ||||
Gain on sale of investment | 87 | (2,195 | ) | |||||
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 | (55,727 | ) | (27,927 | ) | ||||
Inventories | (26,518 | ) | 13,973 | |||||
Prepaid expenses and other current assets | (15,798 | ) | (8,681 | ) | ||||
Accounts payable | 1,343 | (1,088 | ) | |||||
Employee compensation and benefits | (7,471 | ) | 3,037 | |||||
Accrued product claims and warranties | (6,483 | ) | 3,199 | |||||
Income taxes | (5,792 | ) | (4,573 | ) | ||||
Other current liabilities | 9,380 | 15,955 | ||||||
Pension and post-retirement benefits | 592 | 7,924 | ||||||
Other assets and liabilities | 13,146 | 7,396 | ||||||
Net cash provided by (used for) continuing operations | 140,649 | 231,414 | ||||||
Net cash provided by (used for) operating activities of discontinued operations | (3,432 | ) | (2,081 | ) | ||||
Net cash provided by (used for) operating activities | 137,217 | 229,333 | ||||||
Investing activities | ||||||||
Capital expenditures | (40,107 | ) | (45,163 | ) | ||||
Proceeds from sale of property and equipment | 4,304 | 5,136 | ||||||
Acquisitions, net of cash acquired or received | (1,609 | ) | (486,264 | ) | ||||
Divestitures | 29,526 | — | ||||||
Other | (7 | ) | (4,044 | ) | ||||
Net cash provided by (used for) investing activities | (7,893 | ) | (530,335 | ) | ||||
Financing activities | ||||||||
Net short-term borrowings (repayments) | (14,180 | ) | (10,378 | ) | ||||
Proceeds from long-term debt | 479,405 | 1,147,132 | ||||||
Repayment of long-term debt | (486,492 | ) | (770,822 | ) | ||||
Debt issuance costs | (114 | ) | (1,876 | ) | ||||
Excess tax benefits from stock-based compensation | 1,617 | 2,706 | ||||||
Proceeds from exercise of stock options | 5,140 | 5,512 | ||||||
Repurchases of common stock | (37,342 | ) | (27,119 | ) | ||||
Dividends paid | (50,541 | ) | (44,986 | ) | ||||
Net cash provided by (used for) financing activities | (102,507 | ) | 300,169 | |||||
Effect of exchange rate changes on cash and cash equivalents | (4,068 | ) | 2,568 | |||||
Change in cash and cash equivalents | 22,749 | 1,735 | ||||||
Cash and cash equivalents, beginning of period | 70,795 | 54,820 | ||||||
Cash and cash equivalents, end of period | $ | 93,544 | $ | 56,555 | ||||
Free cash flow | ||||||||
Net cash provided by (used for) continuing operations | $ | 140,649 | $ | 231,414 | ||||
Capital expenditures | (40,107 | ) | (45,163 | ) | ||||
Proceeds from sale of property and equipment | 4,304 | 5,136 | ||||||
Net cash — Horizon settlement | 22,680 | — | ||||||
Free cash flow | $ | 127,526 | $ | 191,387 | ||||
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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 | 2008 | 2008 | 2008 | 2008 | ||||||||||||
Net sales to external customers | ||||||||||||||||
Water Group | $ | 554,944 | $ | 605,497 | $ | 566,328 | $ | 1,726,769 | ||||||||
Technical Products Group | 285,460 | 304,260 | 297,839 | 887,559 | ||||||||||||
Consolidated | $ | 840,404 | $ | 909,757 | $ | 864,167 | $ | 2,614,328 | ||||||||
Intersegment sales | ||||||||||||||||
Water Group | $ | 372 | $ | 139 | $ | 305 | $ | 816 | ||||||||
Technical Products Group | 1,138 | 1,034 | 765 | 2,937 | ||||||||||||
Other | (1,510 | ) | (1,173 | ) | (1,070 | ) | (3,753 | ) | ||||||||
Consolidated | $ | — | $ | — | $ | — | $ | — | ||||||||
Operating income (loss) | ||||||||||||||||
Water Group | $ | 64,419 | $ | 57,822 | $ | 47,612 | $ | 169,853 | ||||||||
Technical Products Group | 45,337 | 49,732 | 47,585 | 142,654 | ||||||||||||
Other | (12,937 | ) | (12,552 | ) | (11,547 | ) | (37,036 | ) | ||||||||
Consolidated | $ | 96,819 | $ | 95,002 | $ | 83,650 | $ | 275,471 | ||||||||
Operating income as a percent of net sales | ||||||||||||||||
Water Group | 11.6 | % | 9.5 | % | 8.4 | % | 9.8 | % | ||||||||
Technical Products Group | 15.9 | % | 16.3 | % | 16.0 | % | 16.1 | % | ||||||||
Consolidated | 11.5 | % | 10.4 | % | 9.7 | % | 10.5 | % |
First Qtr | Second Qtr | Third Qtr | Nine Months | |||||||||||||
In thousands | 2007 | 2007 | 2007 | 2007 | ||||||||||||
Net sales to external customers | ||||||||||||||||
Water Group | $ | 540,262 | $ | 642,149 | $ | 545,514 | $ | 1,727,925 | ||||||||
Technical Products Group | 252,583 | 257,150 | 275,701 | 785,434 | ||||||||||||
Other | — | — | — | |||||||||||||
Consolidated | $ | 792,845 | $ | 899,299 | $ | 821,215 | $ | 2,513,359 | ||||||||
Intersegment sales | ||||||||||||||||
Water Group | $ | 214 | $ | 46 | $ | 207 | $ | 467 | ||||||||
Technical Products Group | 896 | 1,689 | 1,526 | 4,111 | ||||||||||||
Other | (1,110 | ) | (1,735 | ) | (1,733 | ) | (4,578 | ) | ||||||||
Consolidated | $ | — | $ | — | $ | — | $ | — | ||||||||
Operating income (loss) | ||||||||||||||||
Water Group | $ | 62,426 | $ | 89,195 | $ | 56,061 | $ | 207,682 | ||||||||
Technical Products Group | 31,631 | 36,140 | 46,237 | 114,008 | ||||||||||||
Other | (12,558 | ) | (12,475 | ) | (9,148 | ) | (34,181 | ) | ||||||||
Consolidated | $ | 81,499 | $ | 112,860 | $ | 93,150 | $ | 287,509 | ||||||||
Operating income as a percent of net sales | ||||||||||||||||
Water Group | 11.6 | % | 13.9 | % | 10.3 | % | 12.0 | % | ||||||||
Technical Products Group | 12.5 | % | 14.1 | % | 16.8 | % | 14.5 | % | ||||||||
Consolidated | 10.3 | % | 12.5 | % | 11.3 | % | 11.4 | % |
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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 | $ | 840,404 | $ | 909,757 | $ | 864,167 | $ | 840,000-$850,000 | approx. $3,500M | ||||||||||||
Operating income — as reported | 96,819 | 95,002 | 83,650 | 43,000 - 47,000 | 318M - 322M | ||||||||||||||||
% of net sales | 11.5 | % | 10.4 | % | 9.7 | % | 5.1% - 5.6 | % | 9.1% - 9.3 | % | |||||||||||
Adjustments | — | 23,140 | 15,480 | approx. 53,000 | approx. 92M | ||||||||||||||||
Operating income — as adjusted | 96,819 | 118,142 | 99,130 | 96,000 - 100,000 | 410M - 414M | ||||||||||||||||
% of net sales | 11.5 | % | 13.0 | % | 11.5 | % | 11.3% - 11.9 | % | 11.7% - 11.8 | % | |||||||||||
Income from continuing operations — as reported | 52,644 | 138,735 | 41,389 | 17,000 - 20,000 | 250M - 253M | ||||||||||||||||
Adjustments — tax affected | — | (70,560 | ) | 13,260 | approx. 35,000 | approx. (22M) | |||||||||||||||
Income from continuing operations — as adjusted | 52,644 | 68,175 | 54,649 | 52,000 - 55,000 | 228M - 231M | ||||||||||||||||
Continuing earnings per common share — diluted | |||||||||||||||||||||
Diluted earnings per common share — as reported | $ | 0.53 | $ | 1.39 | $ | 0.42 | $ | 0.17 - $0.20 | $ | 2.51 - $2.54 | |||||||||||
Adjustments | — | (0.71 | ) | 0.13 | approx. 0.35 | approx. (0.23) | |||||||||||||||
Diluted earnings per common share — as adjusted | $ | 0.53 | $ | 0.68 | $ | 0.55 | $ | 0.52 - $0.55 | $ | 2.28 - $2.31 | |||||||||||
Weighted average common shares outstanding — Diluted | 99,558 | 99,509 | 99,319 | approx. 99,200 | approx. 99,400 |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2007 to the “Adjusted” non-GAAP
excluding the effect of 2007 adjustments (Unaudited)
Reconciliation of the GAAP “As Reported” year ending December 31, 2007 to the “Adjusted” non-GAAP
excluding the effect of 2007 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands, except per-share data | 2007 | 2007 | 2007 | 2007 | 2007 | |||||||||||||||
Net sales | $ | 792,845 | $ | 899,299 | $ | 821,215 | $ | 817,518 | $ | 3,330,877 | ||||||||||
Operating income — as reported | 81,499 | 112,860 | 93,150 | 91,518 | 379,027 | |||||||||||||||
% of net sales | 10.3 | % | 12.5 | % | 11.3 | % | 11.2 | % | 11.4 | % | ||||||||||
Adjustments | — | — | 9,192 | 5,970 | 15,162 | |||||||||||||||
Operating income — as adjusted | 81,499 | 112,860 | 102,342 | 97,488 | 394,189 | |||||||||||||||
% of net sales | 10.3 | % | 12.5 | % | 12.5 | % | 11.9 | % | 11.8 | % | ||||||||||
Income from continuing operations — as reported | 42,629 | 60,994 | 59,279 | 49,468 | 212,370 | |||||||||||||||
Adjustments — tax affected | — | — | 6,246 | 3,881 | 10,127 | |||||||||||||||
Non-recurring tax items | (145 | ) | (83 | ) | (11,517 | ) | (1,073 | ) | (12,818 | ) | ||||||||||
Income from continuing operations — as adjusted | 42,484 | 60,911 | 54,008 | 52,276 | 209,679 | |||||||||||||||
Continuing earnings per common share — diluted | ||||||||||||||||||||
Diluted earnings per common share — as reported | $ | 0.42 | $ | 0.61 | $ | 0.59 | $ | 0.50 | $ | 2.12 | ||||||||||
Adjustments | — | — | (0.05 | ) | 0.03 | (0.02 | ) | |||||||||||||
Diluted earnings per common share — as adjusted | $ | 0.42 | $ | 0.61 | $ | 0.54 | $ | 0.53 | $ | 2.10 | ||||||||||
Weighted average common shares outstanding — Diluted | 100,271 | 100,371 | 100,365 | 99,859 | 100,205 |
(more)
-10-
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 | $ | 554,944 | $ | 605,497 | $ | 566,328 | $ | 560,000 - $570,000 | approx. $2,290M | |||||||||||
Operating income — as reported | 64,419 | 57,822 | 47,612 | 15,000 - 19,000 | 185M - 189M | |||||||||||||||
% of net sales | 11.6 | % | 9.5 | % | 8.4 | % | 2.6% - 3.5 | % | 8.1% - 8.3 | % | ||||||||||
Adjustments | — | 22,711 | 13,711 | approx. 45,000 | approx. 81M | |||||||||||||||
Operating income — as adjusted | 64,419 | 80,533 | 61,323 | 60,000-64,000 | 266M - 270M | |||||||||||||||
% of net sales | 11.6 | % | 13.3 | % | 10.8 | % | 10.4% - 11.5 | % | 11.6% - 11.8 | % | ||||||||||
Technical Products | ||||||||||||||||||||
Net sales | $ | 285,460 | $ | 304,260 | $ | 297,839 | $ | 280,000 - $285,000 | approx. $1,170M | |||||||||||
Operating income — as reported | 45,337 | 49,732 | 47,585 | 38,000-40,000 | 181M - 183M | |||||||||||||||
% of net sales | 15.9 | % | 16.3 | % | 16.0 | % | 13.3% - 14.3 | % | 15.4% - 15.7 | % | ||||||||||
Adjustments | — | 429 | 633 | approx. 5,000 | approx. 6M | |||||||||||||||
Operating income — as adjusted | 45,337 | 50,161 | 48,218 | 43,000-45,000 | 187M - 189M | |||||||||||||||
% of net sales | 15.9 | % | 16.4 | % | 16.2 | % | 15.1% - 16.1 | % | 15.9% - 16.2 | % |
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP “As Reported” year ending December 31, 2007 to the “Adjusted” non-GAAP
excluding the effect of 2007 adjustments (Unaudited)
Reconciliation of the GAAP “As Reported” year ending December 31, 2007 to the “Adjusted” non-GAAP
excluding the effect of 2007 adjustments (Unaudited)
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | ||||||||||||||||
In thousands | 2007 | 2007 | 2007 | 2007 | 2007 | |||||||||||||||
Water | ||||||||||||||||||||
Net sales | $ | 540,262 | $ | 642,149 | $ | 545,514 | $ | 552,819 | $ | 2,280,744 | ||||||||||
Operating income — as reported | 62,426 | 89,195 | 56,061 | 65,541 | 273,223 | |||||||||||||||
% of net sales | 11.6 | % | 13.9 | % | 10.3 | % | 11.9 | % | 12.0 | % | ||||||||||
Adjustments | — | — | 9,843 | 3,897 | 13,740 | |||||||||||||||
Operating income — as adjusted | 62,426 | 89,195 | 65,904 | 69,438 | 286,963 | |||||||||||||||
% of net sales | 11.6 | % | 13.9 | % | 12.1 | % | 12.6 | % | 12.6 | % | ||||||||||
Technical Products | ||||||||||||||||||||
Net sales | $ | 252,583 | $ | 257,150 | $ | 275,701 | $ | 264,699 | $ | 1,050,133 | ||||||||||
Operating income — as reported | 31,631 | 36,140 | 46,237 | 39,578 | 153,586 | |||||||||||||||
% of net sales | 12.5 | % | 14.1 | % | 16.8 | % | 15.0 | % | 14.6 | % | ||||||||||
Adjustments | — | — | (652 | ) | 2,073 | 1,421 | ||||||||||||||
Operating income — as adjusted | 31,631 | 36,140 | 45,585 | 41,651 | 155,007 | |||||||||||||||
% of net sales | 12.5 | % | 14.1 | % | 16.5 | % | 15.7 | % | 14.8 | % |
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