nVent Electric plc | |||||||||||
Three months ended | |||||||||||
June 30, 2021 | June 30, 2020 | % / point change | |||||||||
Net Sales | $601 | $447 | 34% | ||||||||
Organic | 29% | ||||||||||
Operating Income | $88 | $45 | 95% | ||||||||
Reported ROS | 14.7% | 10.1% | |||||||||
Segment Income | $110 | $68 | 61% | ||||||||
Adjusted ROS | 18.3% | 15.3% | 300 bps |
Enclosures | |||||||||||
Three months ended | |||||||||||
June 30, 2021 | June 30, 2020 | % / point change | |||||||||
Net Sales | $300 | $219 | 37% | ||||||||
Organic | 31% | ||||||||||
ROS | 17.9% | 12.9% | 500 bps |
Electrical & Fastening Solutions ("EFS") | |||||||||||
Three months ended | |||||||||||
June 30, 2021 | June 30, 2020 | % / point change | |||||||||
Net Sales | $169 | $132 | 28% | ||||||||
Organic | 24% | ||||||||||
ROS | 28.9% | 26.3% | 260 bps |
Thermal Management | |||||||||||
Three months ended | |||||||||||
June 30, 2021 | June 30, 2020 | % / point change | |||||||||
Net Sales | $132 | $96 | 37% | ||||||||
Organic | 30% | ||||||||||
ROS | 18.9% | 15.0% | 390 bps |
nVent Electric plc | |||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
In millions, except per-share data | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Net sales | $ | 601.3 | $ | 447.2 | $ | 1,150.2 | $ | 968.1 | |||||||||
Cost of goods sold | 366.1 | 286.9 | 706.0 | 612.5 | |||||||||||||
Gross profit | 235.2 | 160.3 | 444.2 | 355.6 | |||||||||||||
% of net sales | 39.1 | % | 35.8 | % | 38.6 | % | 36.7 | % | |||||||||
Selling, general and administrative | 135.2 | 104.3 | 252.4 | 227.4 | |||||||||||||
% of net sales | 22.5 | % | 23.3 | % | 21.9 | % | 23.5 | % | |||||||||
Research and development | 11.7 | 10.7 | 23.1 | 22.6 | |||||||||||||
% of net sales | 1.9 | % | 2.4 | % | 2.0 | % | 2.3 | % | |||||||||
Operating income | 88.3 | 45.3 | 168.7 | 105.6 | |||||||||||||
% of net sales | 14.7 | % | 10.1 | % | 14.7 | % | 10.9 | % | |||||||||
Net interest expense | 8.1 | 9.4 | 16.2 | 19.3 | |||||||||||||
Other expense | 0.6 | 0.7 | 1.2 | 1.5 | |||||||||||||
Income before income taxes | 79.6 | 35.2 | 151.3 | 84.8 | |||||||||||||
Provision for income taxes | 13.4 | 9.4 | 19.7 | 40.4 | |||||||||||||
Effective tax rate | 16.8 | % | 26.7 | % | 13.0 | % | 47.6 | % | |||||||||
Net income | $ | 66.2 | $ | 25.8 | $ | 131.6 | $ | 44.4 | |||||||||
Earnings per ordinary share | |||||||||||||||||
Basic | $ | 0.39 | $ | 0.15 | $ | 0.78 | $ | 0.26 | |||||||||
Diluted | $ | 0.39 | $ | 0.15 | $ | 0.78 | $ | 0.26 | |||||||||
Weighted average ordinary shares outstanding | |||||||||||||||||
Basic | 167.9 | 169.9 | 167.8 | 169.9 | |||||||||||||
Diluted | 169.6 | 170.4 | 169.2 | 170.7 | |||||||||||||
Cash dividends paid per ordinary share | $ | 0.175 | $ | 0.175 | $ | 0.35 | $ | 0.35 |
nVent Electric plc | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
June 30, 2021 | December 31, 2020 | |||||||
In millions | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 101.8 | $ | 122.5 | ||||
Accounts and notes receivable, net | 409.3 | 313.8 | ||||||
Inventories | 275.4 | 235.2 | ||||||
Other current assets | 116.0 | 92.9 | ||||||
Total current assets | 902.5 | 764.4 | ||||||
Property, plant and equipment, net | 291.6 | 289.4 | ||||||
Other assets | ||||||||
Goodwill | 2,193.3 | 2,098.2 | ||||||
Intangibles, net | 1,179.0 | 1,105.5 | ||||||
Other non-current assets | 143.4 | 108.6 | ||||||
Total other assets | 3,515.7 | 3,312.3 | ||||||
Total assets | $ | 4,709.8 | $ | 4,366.1 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt and short-term borrowings | $ | 20.0 | $ | 20.0 | ||||
Accounts payable | 219.1 | 171.1 | ||||||
Employee compensation and benefits | 95.3 | 70.4 | ||||||
Other current liabilities | 201.4 | 188.5 | ||||||
Total current liabilities | 535.8 | 450.0 | ||||||
Other liabilities | ||||||||
Long-term debt | 1,083.9 | 928.0 | ||||||
Pension and other post-retirement compensation and benefits | 231.8 | 237.9 | ||||||
Deferred tax liabilities | 231.3 | 230.1 | ||||||
Other non-current liabilities | 134.2 | 110.3 | ||||||
Total liabilities | 2,217.0 | 1,956.3 | ||||||
Equity | 2,492.8 | 2,409.8 | ||||||
Total liabilities and equity | $ | 4,709.8 | $ | 4,366.1 | ||||
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Six months ended | ||||||||
In millions | June 30, 2021 | June 30, 2020 | ||||||
Operating activities | ||||||||
Net income | $ | 131.6 | $ | 44.4 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
Depreciation | 20.0 | 19.0 | ||||||
Amortization | 31.9 | 32.0 | ||||||
Deferred income taxes | (0.9) | 26.2 | ||||||
Share-based compensation | 6.2 | 6.1 | ||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts and notes receivable | (69.2) | 31.9 | ||||||
Inventories | (20.5) | (2.9) | ||||||
Other current assets | (21.2) | 10.0 | ||||||
Accounts payable | 33.1 | (49.3) | ||||||
Employee compensation and benefits | 23.5 | (9.4) | ||||||
Other current liabilities | 6.7 | (16.5) | ||||||
Other non-current assets and liabilities | 2.1 | (1.0) | ||||||
Net cash provided by (used for) operating activities | 143.3 | 90.5 | ||||||
Investing activities | ||||||||
Capital expenditures | (17.9) | (17.2) | ||||||
Proceeds from sale of property and equipment | 0.1 | 1.4 | ||||||
Acquisitions, net of cash acquired | (232.6) | (27.0) | ||||||
Net cash provided by (used for) investing activities | (250.4) | (42.8) | ||||||
Financing activities | ||||||||
Net receipts of revolving long-term debt | 165.4 | 150.0 | ||||||
Repayments of long-term debt | (10.0) | (7.5) | ||||||
Dividends paid | (58.8) | (59.5) | ||||||
Shares issued to employees, net of shares withheld | 9.5 | 2.7 | ||||||
Repurchases of ordinary shares | (20.0) | (3.2) | ||||||
Net cash provided by (used for) financing activities | 86.1 | 82.5 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0.3 | (1.6) | ||||||
Change in cash and cash equivalents | (20.7) | 128.6 | ||||||
Cash and cash equivalents, beginning of period | 122.5 | 106.4 | ||||||
Cash and cash equivalents, end of period | $ | 101.8 | $ | 235.0 |
nVent Electric plc | |||||||||||||||||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
In millions | First Quarter | Second Quarter | Six Months | First Quarter | Second Quarter | Six Months | |||||||||||||||||
Net sales | |||||||||||||||||||||||
Enclosures | $ | 277.0 | $ | 300.4 | $ | 577.4 | $ | 258.5 | $ | 219.3 | $ | 477.8 | |||||||||||
Electrical & Fastening Solutions | 147.9 | 169.2 | 317.1 | 141.9 | 132.1 | 274.0 | |||||||||||||||||
Thermal Management | 124.0 | 131.7 | 255.7 | 120.5 | 95.8 | 216.3 | |||||||||||||||||
Total | $ | 548.9 | $ | 601.3 | $ | 1,150.2 | $ | 520.9 | $ | 447.2 | $ | 968.1 | |||||||||||
Segment income (loss) | |||||||||||||||||||||||
Enclosures | $ | 48.8 | $ | 53.7 | $ | 102.5 | $ | 40.9 | $ | 28.2 | $ | 69.1 | |||||||||||
Electrical & Fastening Solutions | 39.2 | 48.9 | 88.1 | 33.5 | 34.7 | 68.2 | |||||||||||||||||
Thermal Management | 21.0 | 24.9 | 45.9 | 20.3 | 14.4 | 34.7 | |||||||||||||||||
Other | (11.9) | (17.3) | (29.2) | (13.2) | (9.0) | (22.2) | |||||||||||||||||
Total | $ | 97.1 | $ | 110.2 | $ | 207.3 | $ | 81.5 | $ | 68.3 | $ | 149.8 | |||||||||||
Return on sales | |||||||||||||||||||||||
Enclosures | 17.6 | % | 17.9 | % | 17.8 | % | 15.8 | % | 12.9 | % | 14.5 | % | |||||||||||
Electrical & Fastening Solutions | 26.5 | % | 28.9 | % | 27.8 | % | 23.6 | % | 26.3 | % | 24.9 | % | |||||||||||
Thermal Management | 16.9 | % | 18.9 | % | 18.0 | % | 16.8 | % | 15.0 | % | 16.0 | % | |||||||||||
Total | 17.7 | % | 18.3 | % | 18.0 | % | 15.6 | % | 15.3 | % | 15.5 | % |
nVent Electric plc | |||||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the quarter ended June 30, 2021 | |||||||||||||||||
excluding the effect of adjustments (Unaudited) | |||||||||||||||||
Actual | Forecast (1) | ||||||||||||||||
In millions, except per-share data | First Quarter | Second Quarter | Third Quarter | Full Year | |||||||||||||
Net sales | $ | 548.9 | $ | 601.3 | |||||||||||||
Operating income | 80.4 | 88.3 | |||||||||||||||
% of net sales | 14.6 | % | 14.7 | % | |||||||||||||
Adjustments: | |||||||||||||||||
Restructuring and other | 0.8 | 4.3 | |||||||||||||||
Acquisition transaction and integration costs | — | 1.6 | |||||||||||||||
Intangible amortization | 15.9 | 16.0 | |||||||||||||||
Segment income | $ | 97.1 | $ | 110.2 | |||||||||||||
Return on sales | 17.7 | % | 18.3 | % | |||||||||||||
Net income - as reported | $ | 65.4 | $ | 66.2 | $ | 63 | $ | 260 | |||||||||
Adjustments to operating income | 16.7 | 21.9 | 18 | 75 | |||||||||||||
Income tax adjustments | (8.7) | (3.8) | (3) | (19) | |||||||||||||
Net income - as adjusted | $ | 73.4 | $ | 84.3 | $ | 78 | $ | 316 | |||||||||
Diluted earnings per ordinary share | |||||||||||||||||
Diluted earnings per ordinary share - as reported | $ | 0.39 | $ | 0.39 | $0.36 - $0.39 | $1.51 - $1.57 | |||||||||||
Adjustments | 0.04 | 0.11 | 0.09 | 0.33 | |||||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.43 | $ | 0.50 | $0.45 - $0.48 | $1.84 - $1.90 | |||||||||||
(1) Forecast information represents an approximation | |||||||||||||||||
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) | |||||||||||||||||
Actual | |||||||||||||||||
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 Net Sales Growth to Organic Net Sales Growth by Segment | |||||||||||||||||
for the quarter ended June 30, 2021 (Unaudited) | |||||||||||||||||
Q2 Net Sales Growth | |||||||||||||||||
Organic | Currency | Acq./Div. | Total | ||||||||||||||
nVent | 28.9 | % | 4.7 | % | 0.9 | % | 34.5 | % | |||||||||
Enclosures | 31.2 | % | 4.1 | % | 1.7 | % | 37.0 | % | |||||||||
Electrical & Fastening Solutions | 24.1 | % | 4.0 | % | — | % | 28.1 | % | |||||||||
Thermal Management | 30.0 | % | 7.5 | % | — | % | 37.5 | % | |||||||||
Reconciliation of Net Sales Growth to Organic Net Sales Growth | |||||||||||||||||||||||||||||
for the quarter ending September 30, 2021 and year ending December 31, 2021 (Unaudited) | |||||||||||||||||||||||||||||
Forecast (1) | |||||||||||||||||||||||||||||
Q3 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 10 - 13% | 2 - 3% | 4 | % | 16 - 20% | 10 - 13% | 3 | % | 2 | % | 15 - 18% | ||||||||||||||||||
(1) Forecast information represents an approximation |
Reconciliation of cash from operating activities to free cash flow (Unaudited) | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
In millions | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Net cash provided by (used for) operating activities | $ | 93.4 | $ | 83.8 | $ | 143.3 | $ | 90.5 | |||||||||
Capital expenditures | (8.0) | (7.0) | (17.9) | (17.2) | |||||||||||||
Proceeds from sale of property and equipment | — | 0.3 | 0.1 | 1.4 | |||||||||||||
Free cash flow | $ | 85.4 | $ | 77.1 | $ | 125.5 | $ | 74.7 | |||||||||