nVent Electric plc | |||||||||||
Three months ended | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $669 | $521 | 28% | ||||||||
Organic | 24% | ||||||||||
Operating Income | $89 | $74 | 20% | ||||||||
Reported ROS | 13.3% | 14.3% | |||||||||
Segment Income | $110 | $97 | 14% | ||||||||
Adjusted ROS | 16.5% | 18.6% | -210 bps |
Enclosures | |||||||||||
Three months ended | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $332 | $230 | 44% | ||||||||
Organic | 35% | ||||||||||
ROS | 13.0% | 15.4% | -240 bps |
Electrical & Fastening Solutions | |||||||||||
Three months ended | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $171 | $147 | 16% | ||||||||
Organic | 17% | ||||||||||
ROS | 26.3% | 28.0% | -170bps |
Thermal Management | |||||||||||
Three months ended | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $166 | $143 | 16% | ||||||||
Organic | 16% | ||||||||||
ROS | 26.4% | 23.5% | 290 bps |
nVent Electric plc | |||||||||||
Full-Year | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $2,462 | $1,999 | 23% | ||||||||
Organic | 18% | ||||||||||
Operating Income | $355 | $38 | 826% | ||||||||
Reported ROS | 14.4% | 1.9% | |||||||||
Segment Income | $436 | $348 | 25% | ||||||||
Adjusted ROS | 17.7% | 17.4% | 30 bps |
Enclosures | |||||||||||
Full-Year | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $1,245 | $953 | 31% | ||||||||
Organic | 23% | ||||||||||
ROS | 16.2% | 15.6% | 60 bps |
Electrical & Fastening Solutions | |||||||||||
Full-Year | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $658 | $569 | 16% | ||||||||
Organic | 14% | ||||||||||
ROS | 27.6% | 26.4% | 120 bps |
Thermal Management | |||||||||||
Full-Year | |||||||||||
December 31, 2021 | December 31, 2020 | % / point change | |||||||||
Net Sales | $560 | $477 | 17% | ||||||||
Organic | 15% | ||||||||||
ROS | 21.7% | 19.7% | 200 bps |
nVent Electric plc | |||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||
In millions, except per-share data | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
Net sales | $ | 669.0 | $ | 521.2 | $ | 2,462.0 | $ | 1,998.6 | |||||||||
Cost of goods sold | 421.8 | 324.2 | 1,520.1 | 1,249.2 | |||||||||||||
Gross profit | 247.2 | 197.0 | 941.9 | 749.4 | |||||||||||||
% of net sales | 37.0 | % | 37.8 | % | 38.3 | % | 37.5 | % | |||||||||
Selling, general and administrative | 145.8 | 112.2 | 537.9 | 447.0 | |||||||||||||
% of net sales | 21.8 | % | 21.5 | % | 21.8 | % | 22.4 | % | |||||||||
Research and development | 12.4 | 10.4 | 48.6 | 43.5 | |||||||||||||
% of net sales | 1.9 | % | 2.0 | % | 2.0 | % | 2.2 | % | |||||||||
Impairment of goodwill and trade names | — | — | — | 220.5 | |||||||||||||
Operating income | 89.0 | 74.4 | 355.4 | 38.4 | |||||||||||||
% of net sales | 13.3 | % | 14.3 | % | 14.4 | % | 1.9 | % | |||||||||
Net interest expense | 7.9 | 8.6 | 32.3 | 36.4 | |||||||||||||
Loss on early extinguishment of debt | 15.2 | — | 15.2 | — | |||||||||||||
Other expense (income) | (14.6) | 9.3 | (12.8) | 11.5 | |||||||||||||
Income (loss) before income taxes | 80.5 | 56.5 | 320.7 | (9.5) | |||||||||||||
Provision for income taxes | 13.5 | 9.4 | 47.8 | 37.7 | |||||||||||||
Effective tax rate | 16.8 | % | 16.6 | % | 14.9 | % | (396.8 | %) | |||||||||
Net income (loss) | $ | 67.0 | $ | 47.1 | $ | 272.9 | $ | (47.2) | |||||||||
Earnings (loss) per ordinary share | |||||||||||||||||
Basic | $ | 0.40 | $ | 0.28 | $ | 1.63 | $ | (0.28) | |||||||||
Diluted | $ | 0.39 | $ | 0.28 | $ | 1.61 | $ | (0.28) | |||||||||
Weighted average ordinary shares outstanding | |||||||||||||||||
Basic | 167.7 | 168.6 | 167.9 | 169.6 | |||||||||||||
Diluted | 170.1 | 169.4 | 169.7 | 169.6 | |||||||||||||
Cash dividends paid per ordinary share | $ | 0.175 | $ | 0.175 | $ | 0.70 | $ | 0.70 | |||||||||
nVent Electric plc | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
In millions | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 49.5 | $ | 122.5 | ||||
Accounts and notes receivable, net | 438.1 | 313.8 | ||||||
Inventories | 321.9 | 235.2 | ||||||
Other current assets | 102.0 | 92.9 | ||||||
Total current assets | 911.5 | 764.4 | ||||||
Property, plant and equipment, net | 291.1 | 289.4 | ||||||
Other assets | ||||||||
Goodwill | 2,186.7 | 2,098.2 | ||||||
Intangibles, net | 1,143.8 | 1,105.5 | ||||||
Other non-current assets | 141.1 | 108.6 | ||||||
Total other assets | 3,471.6 | 3,312.3 | ||||||
Total assets | $ | 4,674.2 | $ | 4,366.1 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt and short-term borrowings | $ | 5.0 | $ | 20.0 | ||||
Accounts payable | 261.0 | 171.1 | ||||||
Employee compensation and benefits | 113.9 | 70.4 | ||||||
Other current liabilities | 256.4 | 188.5 | ||||||
Total current liabilities | 636.3 | 450.0 | ||||||
Other liabilities | ||||||||
Long-term debt | 994.2 | 928.0 | ||||||
Pension and other post-retirement compensation and benefits | 208.1 | 237.9 | ||||||
Deferred tax liabilities | 210.3 | 230.1 | ||||||
Other non-current liabilities | 129.2 | 110.3 | ||||||
Total liabilities | 2,178.1 | 1,956.3 | ||||||
Equity | 2,496.1 | 2,409.8 | ||||||
Total liabilities and equity | $ | 4,674.2 | $ | 4,366.1 | ||||
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Twelve months ended | ||||||||
In millions | December 31, 2021 | December 31, 2020 | ||||||
Operating activities | ||||||||
Net income (loss) | $ | 272.9 | $ | (47.2) | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
Depreciation | 40.9 | 38.4 | ||||||
Amortization | 67.5 | 64.2 | ||||||
Deferred income taxes | (18.8) | (2.9) | ||||||
Share-based compensation | 16.6 | 13.9 | ||||||
Loss on early extinguishment of debt | 15.2 | — | ||||||
Impairment of goodwill and trade names | — | 220.5 | ||||||
Pension and other post-retirement expense (income) | (9.5) | 17.2 | ||||||
Pension and other post-retirement contributions | (6.5) | (6.8) | ||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts and notes receivable | (104.2) | 28.3 | ||||||
Inventories | (74.0) | 18.3 | ||||||
Other current assets | (7.6) | 21.5 | ||||||
Accounts payable | 73.7 | (18.6) | ||||||
Employee compensation and benefits | 43.6 | (4.2) | ||||||
Other current liabilities | 59.3 | 1.5 | ||||||
Other non-current assets and liabilities | 4.2 | (0.1) | ||||||
Net cash provided by (used for) operating activities | 373.3 | 344.0 | ||||||
Investing activities | ||||||||
Capital expenditures | (39.5) | (40.0) | ||||||
Proceeds from sale of property and equipment | 0.6 | 2.0 | ||||||
Acquisitions, net of cash acquired | (235.1) | (27.0) | ||||||
Net cash provided by (used for) investing activities | (274.0) | (65.0) | ||||||
Financing activities | ||||||||
Net receipts (repayments) of revolving credit facility | 72.1 | (100.0) | ||||||
Proceeds from long-term debt | 300.0 | — | ||||||
Repayments of long-term debt | (318.7) | (17.5) | ||||||
Debt issuance costs | (5.4) | — | ||||||
Premium paid on early extinguishment of debt | (15.2) | — | ||||||
Settlement of interest rate swap | 9.6 | — | ||||||
Dividends paid | (117.7) | (119.0) | ||||||
Shares issued to employees, net of shares withheld | 20.0 | 7.2 | ||||||
Repurchases of ordinary shares | (111.5) | (43.2) | ||||||
Net cash provided by (used for) financing activities | (166.8) | (272.5) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (5.5) | 9.6 | ||||||
Change in cash and cash equivalents | (73.0) | 16.1 | ||||||
Cash and cash equivalents, beginning of period | 122.5 | 106.4 | ||||||
Cash and cash equivalents, end of period | $ | 49.5 | $ | 122.5 | ||||
nVent Electric plc | |||||||||||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | |||||||||||||||||
2021 | |||||||||||||||||
In millions | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||
Net sales | |||||||||||||||||
Enclosures | $ | 277.0 | $ | 300.4 | $ | 335.2 | $ | 332.2 | $ | 1,244.8 | |||||||
Electrical & Fastening Solutions | 147.9 | 169.2 | 169.3 | 171.1 | 657.5 | ||||||||||||
Thermal Management | 124.0 | 131.7 | 138.3 | 165.7 | 559.7 | ||||||||||||
Total | $ | 548.9 | $ | 601.3 | $ | 642.8 | $ | 669.0 | $ | 2,462.0 | |||||||
Segment income (loss) | |||||||||||||||||
Enclosures | $ | 48.8 | $ | 53.7 | $ | 56.4 | $ | 43.2 | $ | 202.1 | |||||||
Electrical & Fastening Solutions | 39.2 | 48.9 | 48.4 | 45.0 | 181.5 | ||||||||||||
Thermal Management | 21.0 | 24.9 | 31.6 | 43.7 | 121.2 | ||||||||||||
Other | (11.9) | (17.3) | (18.2) | (21.6) | (69.0) | ||||||||||||
Total | $ | 97.1 | $ | 110.2 | $ | 118.2 | $ | 110.3 | $ | 435.8 | |||||||
Return on sales | |||||||||||||||||
Enclosures | 17.6 | % | 17.9 | % | 16.8 | % | 13.0 | % | 16.2 | % | |||||||
Electrical & Fastening Solutions | 26.5 | % | 28.9 | % | 28.6 | % | 26.3 | % | 27.6 | % | |||||||
Thermal Management | 16.9 | % | 18.9 | % | 22.8 | % | 26.4 | % | 21.7 | % | |||||||
Total | 17.7 | % | 18.3 | % | 18.4 | % | 16.5 | % | 17.7 | % |
2020 | |||||||||||||||||
In millions | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||
Net sales | |||||||||||||||||
Enclosures | $ | 258.5 | $ | 219.3 | $ | 244.7 | $ | 230.4 | $ | 952.9 | |||||||
Electrical & Fastening Solutions | 141.9 | 132.1 | 147.7 | 147.4 | 569.1 | ||||||||||||
Thermal Management | 120.5 | 95.8 | 116.9 | 143.4 | 476.6 | ||||||||||||
Total | $ | 520.9 | $ | 447.2 | $ | 509.3 | $ | 521.2 | $ | 1,998.6 | |||||||
Segment income (loss) | |||||||||||||||||
Enclosures | $ | 40.9 | $ | 28.2 | $ | 44.0 | $ | 35.4 | $ | 148.5 | |||||||
Electrical & Fastening Solutions | 33.5 | 34.7 | 40.7 | 41.3 | 150.2 | ||||||||||||
Thermal Management | 20.3 | 14.4 | 25.5 | 33.7 | 93.9 | ||||||||||||
Other | (13.2) | (9.0) | (9.3) | (13.5) | (45.0) | ||||||||||||
Total | $ | 81.5 | $ | 68.3 | $ | 100.9 | $ | 96.9 | $ | 347.6 | |||||||
Return on sales | |||||||||||||||||
Enclosures | 15.8 | % | 12.9 | % | 18.0 | % | 15.4 | % | 15.6 | % | |||||||
Electrical & Fastening Solutions | 23.6 | % | 26.3 | % | 27.6 | % | 28.0 | % | 26.4 | % | |||||||
Thermal Management | 16.8 | % | 15.0 | % | 21.8 | % | 23.5 | % | 19.7 | % | |||||||
Total | 15.6 | % | 15.3 | % | 19.8 | % | 18.6 | % | 17.4 | % | |||||||
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 GAAP to non-GAAP financial measures for the year ended December 31, 2020 | |||||||||||||||||
excluding the effect of 2020 adjustments (Unaudited) | |||||||||||||||||
In millions, except per-share data | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||
Net sales | $ | 520.9 | $ | 447.2 | $ | 509.3 | $ | 521.2 | $ | 1,998.6 | |||||||
Operating income (loss) | 60.3 | 45.3 | (141.6) | 74.4 | 38.4 | ||||||||||||
% of net sales | 11.6 | % | 10.1 | % | (27.8 | %) | 14.3 | % | 1.9 | % | |||||||
Adjustments: | |||||||||||||||||
Restructuring and other | 4.3 | 6.2 | 5.4 | 6.1 | 22.0 | ||||||||||||
Acquisition transaction and integration costs | 0.9 | 0.8 | 0.5 | 0.3 | 2.5 | ||||||||||||
Intangible amortization | 16.0 | 16.0 | 16.1 | 16.1 | 64.2 | ||||||||||||
Impairment of goodwill | — | — | 212.3 | — | 212.3 | ||||||||||||
Impairment of trade names | — | — | 8.2 | — | 8.2 | ||||||||||||
Segment income | $ | 81.5 | $ | 68.3 | $ | 100.9 | $ | 96.9 | $ | 347.6 | |||||||
Return on sales | 15.6 | % | 15.3 | % | 19.8 | % | 18.6 | % | 17.4 | % | |||||||
Net income (loss) - as reported | $ | 18.6 | $ | 25.8 | $ | (138.7) | $ | 47.1 | $ | (47.2) | |||||||
Adjustments to operating income (loss) | 21.2 | 23.0 | 242.5 | 22.5 | 309.2 | ||||||||||||
Pension and other post-retirement mark-to-market loss | — | — | — | 8.7 | 8.7 | ||||||||||||
Income tax adjustments | 18.3 | 0.2 | (27.7) | (5.5) | (14.8) | ||||||||||||
Net income - as adjusted | $ | 58.1 | $ | 49.0 | $ | 76.1 | $ | 72.8 | $ | 255.9 | |||||||
Diluted earnings (loss) per ordinary share | |||||||||||||||||
Diluted earnings (loss) per ordinary share - as reported | $ | 0.11 | $ | 0.15 | $ | (0.82) | $ | 0.28 | $ | (0.28) | |||||||
Adjustments | 0.23 | 0.14 | 1.27 | 0.15 | 1.78 | ||||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.34 | $ | 0.29 | $ | 0.45 | $ | 0.43 | $ | 1.50 | |||||||
nVent Electric plc | ||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2022 | ||||||||||||||
excluding the effect of 2022 adjustments (Unaudited) | ||||||||||||||
In millions, except per-share data | Forecast (1) | |||||||||||||
First Quarter | Full Year | |||||||||||||
Net income - as reported | $ | 58 | $ | 305 | ||||||||||
Intangible amortization | 18 | 72 | ||||||||||||
Income tax adjustments | (3) | (13) | ||||||||||||
Net income - as adjusted | $ | 73 | $ | 364 | ||||||||||
Diluted earnings per ordinary share | ||||||||||||||
Diluted earnings per ordinary share - as reported | $0.33 - $0.35 | $1.75 - $1.85 | ||||||||||||
Adjustments | 0.09 | 0.35 | ||||||||||||
Diluted earnings per ordinary share - as adjusted | $0.42 - $0.44 | $2.10 - $2.20 | ||||||||||||
(1) Forecast information represents an approximation |
nVent Electric plc | |||||||||||||||||||||||||||||
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment | |||||||||||||||||||||||||||||
for the quarter and year ended December 31, 2021 (Unaudited) | |||||||||||||||||||||||||||||
Q4 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 24.4 | % | (0.7) | % | 4.7 | % | 28.4 | % | 18.4 | % | 2.0 | % | 2.8 | % | 23.2 | % | |||||||||||||
Enclosures | 34.5 | % | (1.0) | % | 10.7 | % | 44.2 | % | 23.2 | % | 1.7 | % | 5.7 | % | 30.6 | % | |||||||||||||
Electrical & Fastening Solutions | 16.8 | % | (0.8) | % | — | % | 16.0 | % | 13.7 | % | 1.5 | % | 0.3 | % | 15.5 | % | |||||||||||||
Thermal Management | 15.8 | % | (0.2) | % | — | % | 15.6 | % | 14.5 | % | 2.9 | % | — | % | 17.4 | % |
nVent Electric plc | |||||||||||||||||||||||||||||
Reconciliation of Net Sales Growth to Organic Net Sales Growth | |||||||||||||||||||||||||||||
for the quarter ending March 31, 2022 and the year ending December 31, 2022 (Unaudited) | |||||||||||||||||||||||||||||
Forecast (1) | |||||||||||||||||||||||||||||
Q1 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 10 - 12 % | (1 %) | 4 | % | 13 - 15 % | 6 - 9 % | (1 - 2 %) | 2 | % | 6 - 10 % | |||||||||||||||||||
(1) Forecast information represents an approximation |
Reconciliation of cash from operating activities to free cash flow (Unaudited) | |||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||
In millions | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
Net cash provided by (used for) operating activities | $ | 115.2 | $ | 140.3 | $ | 373.3 | $ | 344.0 | |||||||||
Capital expenditures | (14.3) | (14.6) | (39.5) | (40.0) | |||||||||||||
Proceeds from sale of property and equipment | 0.5 | 0.5 | 0.6 | 2.0 | |||||||||||||
Free cash flow | $ | 101.4 | $ | 126.2 | $ | 334.4 | $ | 306.0 | |||||||||