nVent Electric plc | |||||||||||
Three months ended | |||||||||||
March 31, 2022 | March 31, 2021 | % / point change | |||||||||
Net Sales | $695 | $549 | 27% | ||||||||
Organic | 24% | ||||||||||
Operating Income | $90 | $80 | 12% | ||||||||
Reported ROS | 13.0% | 14.6% | |||||||||
Segment Income | $110 | $97 | 13% | ||||||||
Adjusted ROS | 15.9% | 17.7% | -180 bps |
Enclosures | |||||||||||
Three months ended | |||||||||||
March 31, 2022 | March 31, 2021 | % / point change | |||||||||
Net Sales | $359 | $277 | 30% | ||||||||
Organic | 23% | ||||||||||
ROS | 14.0% | 17.6% | -360 bps |
Electrical & Fastening Solutions | |||||||||||
Three months ended | |||||||||||
March 31, 2022 | March 31, 2021 | % / point change | |||||||||
Net Sales | $188 | $148 | 27% | ||||||||
Organic | 29% | ||||||||||
ROS | 25.1% | 26.5% | -140 bps |
Thermal Management | |||||||||||
Three months ended | |||||||||||
March 31, 2022 | March 31, 2021 | % / point change | |||||||||
Net Sales | $148 | $124 | 19% | ||||||||
Organic | 22% | ||||||||||
ROS | 21.9% | 16.9% | 500 bps |
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||
Three months ended | ||||||||
In millions, except per-share data | March 31, 2022 | March 31, 2021 | ||||||
Net sales | $ | 694.7 | $ | 548.9 | ||||
Cost of goods sold | 447.4 | 339.9 | ||||||
Gross profit | 247.3 | 209.0 | ||||||
% of net sales | 35.6 | % | 38.1 | % | ||||
Selling, general and administrative | 142.0 | 117.2 | ||||||
% of net sales | 20.4 | % | 21.4 | % | ||||
Research and development | 15.2 | 11.4 | ||||||
% of net sales | 2.2 | % | 2.1 | % | ||||
Operating income | 90.1 | 80.4 | ||||||
% of net sales | 13.0 | % | 14.6 | % | ||||
Net interest expense | 7.2 | 8.1 | ||||||
Other expense | 0.6 | 0.6 | ||||||
Income before income taxes | 82.3 | 71.7 | ||||||
Provision for income taxes | 14.5 | 6.3 | ||||||
Effective tax rate | 17.6 | % | 8.8 | % | ||||
Net income | $ | 67.8 | $ | 65.4 | ||||
Earnings per ordinary share | ||||||||
Basic | $ | 0.41 | $ | 0.39 | ||||
Diluted | $ | 0.40 | $ | 0.39 | ||||
Weighted average ordinary shares outstanding | ||||||||
Basic | 166.2 | 167.7 | ||||||
Diluted | 168.2 | 168.8 | ||||||
Cash dividends paid per ordinary share | $ | 0.175 | $ | 0.175 |
nVent Electric plc | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
In millions | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 51.1 | $ | 49.5 | ||||
Accounts and notes receivable, net | 441.7 | 438.1 | ||||||
Inventories | 348.3 | 321.9 | ||||||
Other current assets | 123.8 | 102.0 | ||||||
Total current assets | 964.9 | 911.5 | ||||||
Property, plant and equipment, net | 287.5 | 291.1 | ||||||
Other assets | ||||||||
Goodwill | 2,185.2 | 2,186.7 | ||||||
Intangibles, net | 1,125.8 | 1,143.8 | ||||||
Other non-current assets | 140.2 | 141.1 | ||||||
Total other assets | 3,451.2 | 3,471.6 | ||||||
Total assets | $ | 4,703.6 | $ | 4,674.2 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt and short-term borrowings | $ | 5.0 | $ | 5.0 | ||||
Accounts payable | 263.7 | 261.0 | ||||||
Employee compensation and benefits | 84.7 | 113.9 | ||||||
Other current liabilities | 234.9 | 256.4 | ||||||
Total current liabilities | 588.3 | 636.3 | ||||||
Other liabilities | ||||||||
Long-term debt | 1,040.8 | 994.2 | ||||||
Pension and other post-retirement compensation and benefits | 204.1 | 208.1 | ||||||
Deferred tax liabilities | 210.0 | 210.3 | ||||||
Other non-current liabilities | 126.5 | 129.2 | ||||||
Total liabilities | 2,169.7 | 2,178.1 | ||||||
Equity | 2,533.9 | 2,496.1 | ||||||
Total liabilities and equity | $ | 4,703.6 | $ | 4,674.2 |
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Three months ended | ||||||||
In millions | March 31, 2022 | March 31, 2021 | ||||||
Operating activities | ||||||||
Net income | $ | 67.8 | $ | 65.4 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
Depreciation | 10.7 | 9.7 | ||||||
Amortization | 17.8 | 15.9 | ||||||
Deferred income taxes | (0.1) | (1.5) | ||||||
Share-based compensation | 6.6 | (0.2) | ||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts and notes receivable | (5.5) | (42.2) | ||||||
Inventories | (29.1) | (6.2) | ||||||
Other current assets | (22.7) | (12.6) | ||||||
Accounts payable | 6.3 | 10.1 | ||||||
Employee compensation and benefits | (28.4) | 7.1 | ||||||
Other current liabilities | (16.9) | 2.5 | ||||||
Other non-current assets and liabilities | — | 1.9 | ||||||
Net cash provided by (used for) operating activities | 6.5 | 49.9 | ||||||
Investing activities | ||||||||
Capital expenditures | (11.1) | (9.9) | ||||||
Proceeds from sale of property and equipment | 1.9 | 0.1 | ||||||
Acquisitions, net of cash acquired | — | (3.9) | ||||||
Net cash provided by (used for) investing activities | (9.2) | (13.7) | ||||||
Financing activities | ||||||||
Net receipts of revolving long-term debt | 47.8 | — | ||||||
Repayments of long-term debt | (1.4) | (5.0) | ||||||
Dividends paid | (29.0) | (29.4) | ||||||
Shares issued to employees, net of shares withheld | (3.0) | 2.0 | ||||||
Repurchases of ordinary shares | (8.5) | (20.0) | ||||||
Net cash provided by (used for) financing activities | 5.9 | (52.4) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1.6) | (1.4) | ||||||
Change in cash and cash equivalents | 1.6 | (17.6) | ||||||
Cash and cash equivalents, beginning of period | 49.5 | 122.5 | ||||||
Cash and cash equivalents, end of period | $ | 51.1 | $ | 104.9 |
nVent Electric plc | ||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | ||||||||
2022 | 2021 | |||||||
In millions | First Quarter | First Quarter | ||||||
Net sales | ||||||||
Enclosures | $ | 359.4 | $ | 277.0 | ||||
Electrical & Fastening Solutions | 187.6 | 147.9 | ||||||
Thermal Management | 147.7 | 124.0 | ||||||
Total | $ | 694.7 | $ | 548.9 | ||||
Segment income (loss) | ||||||||
Enclosures | $ | 50.3 | $ | 48.8 | ||||
Electrical & Fastening Solutions | 47.1 | 39.2 | ||||||
Thermal Management | 32.4 | 21.0 | ||||||
Other | (19.6) | (11.9) | ||||||
Total | $ | 110.2 | $ | 97.1 | ||||
Return on sales | ||||||||
Enclosures | 14.0 | % | 17.6 | % | ||||
Electrical & Fastening Solutions | 25.1 | % | 26.5 | % | ||||
Thermal Management | 21.9 | % | 16.9 | % | ||||
Total | 15.9 | % | 17.7 | % |
nVent Electric plc | ||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2022 | ||||||||||||||
excluding the effect of adjustments (Unaudited) | ||||||||||||||
Actual | Forecast (1) | |||||||||||||
In millions, except per-share data | First Quarter | Second Quarter | Full Year | |||||||||||
Net sales | $ | 694.7 | ||||||||||||
Operating income | 90.1 | |||||||||||||
% of net sales | 13.0 | % | ||||||||||||
Adjustments: | ||||||||||||||
Restructuring and other | 2.0 | |||||||||||||
Acquisition transaction and integration costs | 0.3 | |||||||||||||
Intangible amortization | 17.8 | |||||||||||||
Segment income | $ | 110.2 | ||||||||||||
Return on sales | 15.9 | % | ||||||||||||
Net income - as reported | $ | 67.8 | $ | 74 | $ | 309 | ||||||||
Adjustments to operating income | 20.1 | 18 | 74 | |||||||||||
Income tax adjustments | (3.4) | (3) | (13) | |||||||||||
Net income - as adjusted | $ | 84.5 | $ | 89 | $ | 370 | ||||||||
Diluted earnings per ordinary share | ||||||||||||||
Diluted earnings per ordinary share - as reported | $ | 0.40 | $ 0.43 - 0.45 | $ 1.78 - 1.86 | ||||||||||
Adjustments | 0.10 | 0.09 | 0.36 | |||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.50 | $ 0.52 - 0.54 | $ 2.14 - 2.22 | ||||||||||
(1) Forecast information represents an approximation | ||||||||||||||
nVent Electric plc | |||||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2021 | |||||||||||||||||
excluding the effect of adjustments (Unaudited) | |||||||||||||||||
Actual | |||||||||||||||||
In millions, except per-share data | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||
Net sales | $ | 548.9 | $ | 601.3 | $ | 642.8 | $ | 669.0 | 2,462.0 | ||||||||
Operating income | 80.4 | 88.3 | 97.7 | 89.0 | 355.4 | ||||||||||||
% of net sales | 14.6 | % | 14.7 | % | 15.2 | % | 13.3 | % | 14.4 | % | |||||||
Adjustments: | |||||||||||||||||
Restructuring and other | 0.8 | 4.3 | 1.9 | 1.8 | 8.8 | ||||||||||||
Acquisition transaction and integration costs | — | 1.6 | 0.8 | 1.7 | 4.1 | ||||||||||||
Intangible amortization | 15.9 | 16.0 | 17.8 | 17.8 | 67.5 | ||||||||||||
Segment income | $ | 97.1 | $ | 110.2 | $ | 118.2 | $ | 110.3 | $ | 435.8 | |||||||
Return on sales | 17.7 | % | 18.3 | % | 18.4 | % | 16.5 | % | 17.7 | % | |||||||
Net income (loss) - as reported | $ | 65.4 | $ | 66.2 | $ | 74.3 | $ | 67.0 | $ | 272.9 | |||||||
Adjustments to operating income | 16.7 | 21.9 | 20.5 | 21.3 | 80.4 | ||||||||||||
Pension and other post-retirement mark-to-market gain | — | — | — | (15.1) | (15.1) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 15.2 | 15.2 | ||||||||||||
Income tax adjustments | (8.7) | (3.8) | (4.0) | (3.8) | (20.4) | ||||||||||||
Net income - as adjusted | $ | 73.4 | $ | 84.3 | $ | 90.8 | $ | 84.6 | $ | 333.0 | |||||||
Diluted earnings per ordinary share | |||||||||||||||||
Diluted earnings per ordinary share - as reported | $ | 0.39 | $ | 0.39 | $ | 0.44 | $ | 0.39 | $ | 1.61 | |||||||
Adjustments | 0.04 | 0.11 | 0.09 | 0.11 | 0.35 | ||||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.43 | $ | 0.50 | $ | 0.53 | $ | 0.50 | $ | 1.96 | |||||||
nVent Electric plc | |||||||||||||||||||||||||||||
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment | |||||||||||||||||||||||||||||
for the quarter ended March 31, 2022 (Unaudited) | |||||||||||||||||||||||||||||
Q1 Net Sales Growth | |||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||||||
nVent | 24.5 | % | (2.4) | % | 4.5 | % | 26.6 | % | |||||||||||||||||||||
Enclosures | 23.2 | % | (2.2) | % | 8.7 | % | 29.7 | % | |||||||||||||||||||||
Electrical & Fastening Solutions | 28.9 | % | (2.1) | % | — | % | 26.8 | % | |||||||||||||||||||||
Thermal Management | 22.0 | % | (2.9) | % | — | % | 19.1 | % |
Reconciliation of Net Sales Growth to Organic Net Sales Growth | |||||||||||||||||||||||||||||
for the quarter ending June 30, 2022 and year ending December 31, 2022 (Unaudited) | |||||||||||||||||||||||||||||
Forecast (1) | |||||||||||||||||||||||||||||
Q2 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 12 - 14% | (3) | % | 4 | % | 13 - 15% | 11 - 13% | (2) | % | 2 | % | 11 - 13% | |||||||||||||||||
(1) Forecast information represents an approximation |
Reconciliation of cash from operating activities to free cash flow (Unaudited) | ||||||||
Three months ended | ||||||||
In millions | March 31, 2022 | March 31, 2021 | ||||||
Net cash provided by (used for) operating activities | $ | 6.5 | $ | 49.9 | ||||
Capital expenditures | (11.1) | (9.9) | ||||||
Proceeds from sale of property and equipment | 1.9 | 0.1 | ||||||
Free cash flow | $ | (2.7) | $ | 40.1 | ||||