Exhibit 99.1
WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES
RETROSPECTIVE REVISION
OF SEGMENT INFORMATION FOR 2016 AND 2015
(Amounts in millions)
(Unaudited)
Net Sales
| | For the Quarter Ended | | Year Ended | |
| | April 3,
2016 | | July 3,
2016 | | October 2,
2016 | | December 31,
2016 | | December 31,
2016 | | December 31,
2015 | |
| | | | | | | | | | | | | |
Americas | | $ | 222.3 | | $ | 239.5 | | $ | 215.8 | | $ | 223.3 | | $ | 900.9 | | $ | 978.5 | |
Europe | | 108.3 | | 114.3 | | 107.0 | | $ | 101.7 | | 431.3 | | 436.0 | |
APMEA | | 13.6 | | 17.3 | | 18.3 | | $ | 17.0 | | 66.2 | | 53.2 | |
Total | | $ | 344.2 | | $ | 371.1 | | $ | 341.1 | | $ | 342.0 | | $ | 1,398.4 | | $ | 1,467.7 | |
GAAP Operating Income (Loss)
| | For the Quarter Ended | | Year Ended | |
| | April 3,
2016 | | July 3,
2016 | | October 2,
2016 | | December 31,
2016 | | December 31,
2016 | | December 31,
2015 | |
| | | | | | | | | | | | | |
Americas | | $ | 28.1 | | $ | 35.4 | | $ | 32.2 | | $ | 31.4 | | $ | 127.1 | | $ | 109.9 | |
Europe | | 9.8 | | 10.2 | | 12.3 | | $ | 7.7 | | 40.0 | | (99.6 | ) |
APMEA | | 1.7 | | 9.8 | | 1.6 | | $ | 2.0 | | 15.1 | | 0.5 | |
Corporate | | (8.4 | ) | (9.7 | ) | (9.6 | ) | $ | (9.5 | ) | (37.2 | ) | (100.9 | ) |
Total | | $ | 31.2 | | $ | 45.7 | | $ | 36.5 | | $ | 31.6 | | $ | 145.0 | | $ | (90.1 | ) |
Adjusted Operating Income (Loss)
| | For the Quarter Ended | | Year Ended | |
| | April 3,
2016 | | July 3,
2016 | | October 2,
2016 | | December 31,
2016 | | December 31,
2016 | | December 31,
2015 | |
| | | | | | | | | | | | | |
Americas | | $ | 33.0 | | $ | 39.5 | | $ | 36.3 | | $ | 34.2 | | $ | 143.0 | | $ | 135.7 | |
Europe | | 10.2 | | 12.8 | | 12.7 | | $ | 8.9 | | 44.6 | | 40.0 | |
APMEA | | 2.4 | | 1.6 | | 2.1 | | $ | 2.0 | | 8.1 | | 6.5 | |
Corporate | | (8.3 | ) | (9.8 | ) | (9.7 | ) | $ | (7.9 | ) | (35.7 | ) | (33.8 | ) |
Total | | $ | 37.3 | | $ | 44.1 | | $ | 41.4 | | $ | 37.2 | | $ | 160.0 | | $ | 148.4 | |
Note: The tables contains a retrospective revision of the quarterly, year-to-date, and annual operating results by operating segment of the Company for 2016 and the annual operating results by operating segment for 2015 to reflect the change in composition of reportable segments moving Watts Middle East FZE out of Europe and into APMEA. Note the four quarters may not sum to full year due to rounding.
RECONCILIATION OF GAAP “AS REPORTED” TO THE “ADJUSTED” NON-GAAP
EXCLUDING THE EFFECT OF ADJUSTMENTS FOR SPECIAL ITEMS
(Amounts in millions)
(Unaudited)
| | First Quarter Ended | | Second Quarter Ended | |
| | April 3, 2016 | | July 3, 2016 | |
| | Americas | | Europe | | APMEA | | Corporate | | Total | | Americas | | Europe | | APMEA | | Corporate | | Total | |
| | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 222.3 | | 108.3 | | 13.6 | | — | | 344.2 | | $ | 239.5 | | 114.3 | | 17.3 | | — | | 371.1 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) - as reported | | $ | 28.1 | | 9.8 | | 1.7 | | (8.4 | ) | 31.2 | | $ | 35.4 | | 10.2 | | 9.8 | | (9.7 | ) | 45.7 | |
Operating margin % | | 12.6 | % | 9.0 | % | 12.5 | % | | | 9.1 | % | 14.8 | % | 8.9 | % | 56.6 | % | | | 12.3 | % |
| | | | | | | | | | | | | | | | | | | | | |
Adjustments for special items | | $ | 4.9 | | 0.4 | | 0.7 | | 0.1 | | 6.1 | | $ | 4.1 | | 2.6 | | (8.2 | ) | (0.1 | ) | (1.6 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) - as adjusted | | $ | 33.0 | | 10.2 | | 2.4 | | (8.3 | ) | 37.3 | | $ | 39.5 | | 12.8 | | 1.6 | | (9.8 | ) | 44.1 | |
Adjusted operating margin % | | 14.8 | % | 9.4 | % | 17.6 | % | | | 10.8 | % | 16.5 | % | 11.2 | % | 9.2 | % | | | 11.9 | % |
| | Third Quarter Ended | | Fourth Quarter Ended | |
| | October 2, 2016 | | December 31, 2016 | |
| | Americas | | Europe | | APMEA | | Corporate | | Total | | Americas | | Europe | | APMEA | | Corporate | | Total | |
| | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 215.8 | | 107.0 | | 18.3 | | — | | 341.1 | | $ | 223.3 | | 101.7 | | 17.0 | | — | | 342.0 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) - as reported | | $ | 32.2 | | 12.3 | | 1.6 | | (9.6 | ) | 36.5 | | $ | 31.4 | | 7.7 | | 2.0 | | (9.5 | ) | 31.6 | |
Operating margin % | | 14.9 | % | 11.5 | % | 8.7 | % | | | 10.7 | % | 14.1 | % | 7.6 | % | 11.8 | % | | | 9.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
Adjustments for special items | | $ | 4.1 | | 0.4 | | 0.5 | | (0.1 | ) | 4.9 | | $ | 2.8 | | 1.2 | | — | | 1.6 | | 5.6 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) - as adjusted | | $ | 36.3 | | 12.7 | | 2.1 | | (9.7 | ) | 41.4 | | $ | 34.2 | | 8.9 | | 2.0 | | (7.9 | ) | 37.2 | |
Adjusted operating margin % | | 16.8 | % | 11.9 | % | 11.5 | % | | | 12.1 | % | 15.3 | % | 8.8 | % | 11.8 | % | | | 10.9 | % |
| | Year Ended | | Year Ended | |
| | December 31, 2016 | | December 31, 2015 | |
| | Americas | | Europe | | APMEA | | Corporate | | Total | | Americas | | Europe | | APMEA | | Corporate | | Total | |
| | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 900.9 | | 431.3 | | 66.2 | | — | | 1,398.4 | | $ | 978.5 | | 436.0 | | 53.2 | | — | | 1,467.7 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) - as reported | | $ | 127.1 | | 40.0 | | 15.1 | | (37.2 | ) | 145.0 | | $ | 109.9 | | (99.6 | ) | 0.5 | | (100.9 | ) | (90.1 | ) |
Operating margin % | | 14.1 | % | 9.3 | % | 22.8 | % | | | 10.4 | % | 11.2 | % | -22.8 | % | 0.9 | % | | | -6.1 | % |
| | | | | | | | | | | | | | | | | | | | | |
Adjustments for special items | | $ | 15.9 | | 4.6 | | (7.0 | ) | 1.5 | | 15.0 | | $ | 25.8 | | 139.6 | | 6.0 | | 67.1 | | 238.5 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) - as adjusted | | $ | 143.0 | | 44.6 | | 8.1 | | (35.7 | ) | 160.0 | | $ | 135.7 | | 40.0 | | 6.5 | | (33.8 | ) | 148.4 | |
Adjusted operating margin % | | 15.9 | % | 10.3 | % | 12.2 | % | | | 11.4 | % | 13.9 | % | 9.2 | % | 12.2 | % | | | 10.1 | % |
Note: The tables contains a retrospective revision of the quarterly, year-to-date, and annual operating results by operating segment of the Company for 2016 and the annual operating results by operating segment for 2015 to reflect the change in composition of reportable segments moving Watts Middle East FZE out of Europe and into APMEA. Note the four quarters may not sum to full year due to rounding.
