nVent Electric plc | |||||||||||
Three months ended | |||||||||||
March 31, 2021 | March 31, 2020 | % / point change | |||||||||
Net Sales | $549 | $521 | 5% | ||||||||
Organic | 2% | ||||||||||
Operating Income | $80 | $60 | 33% | ||||||||
Reported ROS | 14.6% | 11.6% | |||||||||
Segment Income | $97 | $82 | 19% | ||||||||
Adjusted ROS | 17.7% | 15.6% | 210 bps |
Enclosures | |||||||||||
Three months ended | |||||||||||
March 31, 2021 | March 31, 2020 | % / point change | |||||||||
Net Sales | $277 | $259 | 7% | ||||||||
Organic | 4% | ||||||||||
ROS | 17.6% | 15.8% | 180 bps |
Electrical & Fastening Solutions ("EFS") | |||||||||||
Three months ended | |||||||||||
March 31, 2021 | March 31, 2020 | % / point change | |||||||||
Net Sales | $148 | $142 | 4% | ||||||||
Organic | 1% | ||||||||||
ROS | 26.5% | 23.6% | 290 bps |
Thermal Management | |||||||||||
Three months ended | |||||||||||
March 31, 2021 | March 31, 2020 | % / point change | |||||||||
Net Sales | $124 | $121 | 3% | ||||||||
Organic | -1% | ||||||||||
ROS | 16.9% | 16.8% | 10 bps |
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||
Three months ended | ||||||||
In millions, except per-share data | March 31, 2021 | March 31, 2020 | ||||||
Net sales | $ | 548.9 | $ | 520.9 | ||||
Cost of goods sold | 339.9 | 325.6 | ||||||
Gross profit | 209.0 | 195.3 | ||||||
% of net sales | 38.1 | % | 37.5 | % | ||||
Selling, general and administrative | 117.2 | 123.1 | ||||||
% of net sales | 21.4 | % | 23.6 | % | ||||
Research and development | 11.4 | 11.9 | ||||||
% of net sales | 2.1 | % | 2.3 | % | ||||
Operating income | 80.4 | 60.3 | ||||||
% of net sales | 14.6 | % | 11.6 | % | ||||
Net interest expense | 8.1 | 9.9 | ||||||
Other expense | 0.6 | 0.8 | ||||||
Income before income taxes | 71.7 | 49.6 | ||||||
Provision for income taxes | 6.3 | 31.0 | ||||||
Effective tax rate | 8.8 | % | 62.5 | % | ||||
Net income | $ | 65.4 | $ | 18.6 | ||||
Earnings per ordinary share | ||||||||
Basic | $ | 0.39 | $ | 0.11 | ||||
Diluted | $ | 0.39 | $ | 0.11 | ||||
Weighted average ordinary shares outstanding | ||||||||
Basic | 167.7 | 169.8 | ||||||
Diluted | 168.8 | 171.0 | ||||||
Cash dividends paid per ordinary share | $ | 0.175 | $ | 0.175 |
nVent Electric plc | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
March 31, 2021 | December 31, 2020 | |||||||
In millions | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 104.9 | $ | 122.5 | ||||
Accounts and notes receivable, net | 351.7 | 313.8 | ||||||
Inventories | 237.9 | 235.2 | ||||||
Other current assets | 104.5 | 92.9 | ||||||
Total current assets | 799.0 | 764.4 | ||||||
Property, plant and equipment, net | 282.7 | 289.4 | ||||||
Other assets | ||||||||
Goodwill | 2,094.3 | 2,098.2 | ||||||
Intangibles, net | 1,088.7 | 1,105.5 | ||||||
Other non-current assets | 133.3 | 108.6 | ||||||
Total other assets | 3,316.3 | 3,312.3 | ||||||
Total assets | $ | 4,398.0 | $ | 4,366.1 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt and short-term borrowings | $ | 20.0 | $ | 20.0 | ||||
Accounts payable | 176.9 | 171.1 | ||||||
Employee compensation and benefits | 76.3 | 70.4 | ||||||
Other current liabilities | 190.6 | 188.5 | ||||||
Total current liabilities | 463.8 | 450.0 | ||||||
Other liabilities | ||||||||
Long-term debt | 923.2 | 928.0 | ||||||
Pension and other post-retirement compensation and benefits | 228.7 | 237.9 | ||||||
Deferred tax liabilities | 229.4 | 230.1 | ||||||
Other non-current liabilities | 102.9 | 110.3 | ||||||
Total liabilities | 1,948.0 | 1,956.3 | ||||||
Equity | 2,450.0 | 2,409.8 | ||||||
Total liabilities and equity | $ | 4,398.0 | $ | 4,366.1 |
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Three months ended | ||||||||
In millions | March 31, 2021 | March 31, 2020 | ||||||
Operating activities | ||||||||
Net income | $ | 65.4 | $ | 18.6 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
Depreciation | 9.7 | 9.6 | ||||||
Amortization | 15.9 | 16.0 | ||||||
Deferred income taxes | (1.5) | 26.0 | ||||||
Share-based compensation | (0.2) | 1.9 | ||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts and notes receivable | (42.2) | (2.6) | ||||||
Inventories | (6.2) | (6.1) | ||||||
Other current assets | (12.6) | (5.7) | ||||||
Accounts payable | 10.1 | (33.3) | ||||||
Employee compensation and benefits | 7.1 | (9.3) | ||||||
Other current liabilities | 2.5 | (8.6) | ||||||
Other non-current assets and liabilities | 1.9 | 0.2 | ||||||
Net cash provided by (used for) operating activities | 49.9 | 6.7 | ||||||
Investing activities | ||||||||
Capital expenditures | (9.9) | (10.2) | ||||||
Proceeds from sale of property and equipment | 0.1 | 1.1 | ||||||
Acquisitions, net of cash acquired | (3.9) | (27.0) | ||||||
Net cash provided by (used for) investing activities | (13.7) | (36.1) | ||||||
Financing activities | ||||||||
Net receipts of revolving long-term debt | — | 150.0 | ||||||
Repayments of long-term debt | (5.0) | (3.8) | ||||||
Dividends paid | (29.4) | (29.7) | ||||||
Shares issued to employees, net of shares withheld | 2.0 | 3.0 | ||||||
Repurchases of ordinary shares | (20.0) | (3.2) | ||||||
Net cash provided by (used for) financing activities | (52.4) | 116.3 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1.4) | (5.4) | ||||||
Change in cash and cash equivalents | (17.6) | 81.5 | ||||||
Cash and cash equivalents, beginning of period | 122.5 | 106.4 | ||||||
Cash and cash equivalents, end of period | $ | 104.9 | $ | 187.9 |
nVent Electric plc | ||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | ||||||||
2021 | 2020 | |||||||
In millions | First Quarter | First Quarter | ||||||
Net sales | ||||||||
Enclosures | $ | 277.0 | $ | 258.5 | ||||
Electrical & Fastening Solutions | 147.9 | 141.9 | ||||||
Thermal Management | 124.0 | 120.5 | ||||||
Total | $ | 548.9 | $ | 520.9 | ||||
Segment income (loss) | ||||||||
Enclosures | $ | 48.8 | $ | 40.9 | ||||
Electrical & Fastening Solutions | 39.2 | 33.5 | ||||||
Thermal Management | 21.0 | 20.3 | ||||||
Other | (11.9) | (13.2) | ||||||
Total | $ | 97.1 | $ | 81.5 | ||||
Return on sales | ||||||||
Enclosures | 17.6 | % | 15.8 | % | ||||
Electrical & Fastening Solutions | 26.5 | % | 23.6 | % | ||||
Thermal Management | 16.9 | % | 16.8 | % | ||||
Total | 17.7 | % | 15.6 | % |
nVent Electric plc | ||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2021 | ||||||||||||||
excluding the effect of adjustments (Unaudited) | ||||||||||||||
Actual | Forecast (1) | |||||||||||||
In millions, except per-share data | First Quarter | Second Quarter | Full Year | |||||||||||
Net sales | $ | 548.9 | ||||||||||||
Operating income | 80.4 | |||||||||||||
% of net sales | 14.6 | % | ||||||||||||
Adjustments: | ||||||||||||||
Restructuring and other | 0.8 | |||||||||||||
Intangible amortization | 15.9 | |||||||||||||
Segment income | $ | 97.1 | ||||||||||||
Return on sales | 17.7 | % | ||||||||||||
Net income - as reported | $ | 65.4 | $ | 52 | $ | 241 | ||||||||
Adjustments to operating income | 16.7 | 16 | 65 | |||||||||||
Income tax adjustments | (8.7) | (3) | (17) | |||||||||||
Net income - as adjusted | $ | 73.4 | $ | 65 | $ | 289 | ||||||||
Diluted earnings per ordinary share | ||||||||||||||
Diluted earnings per ordinary share - as reported | $ | 0.39 | $ 0.28 - 0.32 | $ 1.39 - 1.47 | ||||||||||
Adjustments | 0.04 | 0.08 | 0.28 | |||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.43 | $ 0.36 - 0.40 | $ 1.67 - 1.75 | ||||||||||
(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 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 March 31, 2021 (Unaudited) | |||||||||||||||||||||||||||||
Q1 Net Sales Growth | |||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||||||
nVent | 2.0 | % | 3.1 | % | 0.3 | % | 5.4 | % | |||||||||||||||||||||
Enclosures | 4.3 | % | 2.9 | % | — | % | 7.2 | % | |||||||||||||||||||||
Electrical & Fastening Solutions | 0.7 | % | 2.4 | % | 1.1 | % | 4.2 | % | |||||||||||||||||||||
Thermal Management | (1.2) | % | 4.1 | % | — | % | 2.9 | % |
Reconciliation of Net Sales Growth to Organic Net Sales Growth | |||||||||||||||||||||||||||||
for the quarter ending June 30, 2021 and year ending December 31, 2021 (Unaudited) | |||||||||||||||||||||||||||||
Forecast (1) | |||||||||||||||||||||||||||||
Q2 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 14 - 17 % | 3 | % | 1 | % | 18 - 21 % | 5 - 8 % | 2 % | 1 | % | 8 - 11 % | ||||||||||||||||||
(1) Forecast information represents an approximation |
Reconciliation of cash from operating activities to free cash flow (Unaudited) | ||||||||
Three months ended | ||||||||
In millions | March 31, 2021 | March 31, 2020 | ||||||
Net cash provided by (used for) operating activities | $ | 49.9 | $ | 6.7 | ||||
Capital expenditures | (9.9) | (10.2) | ||||||
Proceeds from sale of property and equipment | 0.1 | 1.1 | ||||||
Free cash flow | $ | 40.1 | $ | (2.4) | ||||