nVent Electric plc | |||||||||||
Three months ended | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $742 | $669 | 11% | ||||||||
Organic | 15% | ||||||||||
Operating Income | $125 | $89 | 40% | ||||||||
Reported ROS | 16.9% | 13.3% | |||||||||
Segment Income | $144 | $110 | 31% | ||||||||
Adjusted ROS | 19.4% | 16.5% | 290 bps |
Enclosures | |||||||||||
Three months ended | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $376 | $332 | 13% | ||||||||
Organic | 17% | ||||||||||
ROS | 19.2% | 13.0% | 620 bps |
Electrical & Fastening Solutions | |||||||||||
Three months ended | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $194 | $171 | 13% | ||||||||
Organic | 16% | ||||||||||
ROS | 27.5% | 26.3% | 120 bps |
Thermal Management | |||||||||||
Three months ended | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $172 | $166 | 4% | ||||||||
Organic | 9% | ||||||||||
ROS | 25.7% | 26.4% | -70bps |
nVent Electric plc | |||||||||||
Full-Year | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $2,909 | $2,462 | 18% | ||||||||
Organic | 20% | ||||||||||
Operating Income | $440 | $355 | 24% | ||||||||
Reported ROS | 15.1% | 14.4% | |||||||||
Segment Income | $524 | $436 | 20% | ||||||||
Adjusted ROS | 18.0% | 17.7% | 30 bps |
Enclosures | |||||||||||
Full-Year | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $1,504 | $1,245 | 21% | ||||||||
Organic | 21% | ||||||||||
ROS | 17.0% | 16.2% | 80 bps |
Electrical & Fastening Solutions | |||||||||||
Full-Year | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $791 | $658 | 20% | ||||||||
Organic | 24% | ||||||||||
ROS | 27.8% | 27.6% | 20 bps |
Thermal Management | |||||||||||
Full-Year | |||||||||||
December 31, 2022 | December 31, 2021 | % / point change | |||||||||
Net Sales | $614 | $560 | 10% | ||||||||
Organic | 14% | ||||||||||
ROS | 22.9% | 21.7% | 120 bps |
nVent Electric plc | |||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||
In millions, except per-share data | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
Net sales | $ | 741.6 | $ | 669.0 | $ | 2,909.0 | $ | 2,462.0 | |||||||||
Cost of goods sold | 450.0 | 421.8 | 1,812.3 | 1,520.1 | |||||||||||||
Gross profit | 291.6 | 247.2 | 1,096.7 | 941.9 | |||||||||||||
% of net sales | 39.3 | % | 37.0 | % | 37.7 | % | 38.3 | % | |||||||||
Selling, general and administrative | 150.7 | 145.8 | 595.9 | 537.9 | |||||||||||||
% of net sales | 20.3 | % | 21.8 | % | 20.5 | % | 21.8 | % | |||||||||
Research and development | 15.8 | 12.4 | 60.4 | 48.6 | |||||||||||||
% of net sales | 2.1 | % | 1.9 | % | 2.1 | % | 2.0 | % | |||||||||
Operating income | 125.1 | 89.0 | 440.4 | 355.4 | |||||||||||||
% of net sales | 16.9 | % | 13.3 | % | 15.1 | % | 14.4 | % | |||||||||
Net interest expense | 8.4 | 7.9 | 31.2 | 32.3 | |||||||||||||
Loss on early extinguishment of debt | — | 15.2 | — | 15.2 | |||||||||||||
Other expense (income) | (65.7) | (14.6) | (63.4) | (12.8) | |||||||||||||
Income before income taxes | 182.4 | 80.5 | 472.6 | 320.7 | |||||||||||||
Provision for income taxes | 23.7 | 13.5 | 72.8 | 47.8 | |||||||||||||
Effective tax rate | 13.0 | % | 16.8 | % | 15.4 | % | 14.9 | % | |||||||||
Net income | $ | 158.7 | $ | 67.0 | $ | 399.8 | $ | 272.9 | |||||||||
Earnings per ordinary share | |||||||||||||||||
Basic | $ | 0.95 | $ | 0.40 | $ | 2.40 | $ | 1.63 | |||||||||
Diluted | $ | 0.94 | $ | 0.39 | $ | 2.38 | $ | 1.61 | |||||||||
Weighted average ordinary shares outstanding | |||||||||||||||||
Basic | 166.2 | 167.7 | 166.3 | 167.9 | |||||||||||||
Diluted | 168.4 | 170.1 | 168.3 | 169.7 | |||||||||||||
Cash dividends paid per ordinary share | $ | 0.175 | $ | 0.175 | $ | 0.70 | $ | 0.70 | |||||||||
nVent Electric plc | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
December 31, 2022 | December 31, 2021 | |||||||
In millions | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 297.5 | $ | 49.5 | ||||
Accounts and notes receivable, net | 472.5 | 438.1 | ||||||
Inventories | 346.7 | 321.9 | ||||||
Other current assets | 112.5 | 102.0 | ||||||
Total current assets | 1,229.2 | 911.5 | ||||||
Property, plant and equipment, net | 289.2 | 291.1 | ||||||
Other assets | ||||||||
Goodwill | 2,178.1 | 2,186.7 | ||||||
Intangibles, net | 1,066.1 | 1,143.8 | ||||||
Other non-current assets | 139.6 | 141.1 | ||||||
Total other assets | 3,383.8 | 3,471.6 | ||||||
Total assets | $ | 4,902.2 | $ | 4,674.2 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt and short-term borrowings | $ | 15.0 | $ | 5.0 | ||||
Accounts payable | 252.1 | 261.0 | ||||||
Employee compensation and benefits | 109.3 | 113.9 | ||||||
Other current liabilities | 273.1 | 256.4 | ||||||
Total current liabilities | 649.5 | 636.3 | ||||||
Other liabilities | ||||||||
Long-term debt | 1,068.2 | 994.2 | ||||||
Pension and other post-retirement compensation and benefits | 128.5 | 208.1 | ||||||
Deferred tax liabilities | 199.6 | 210.3 | ||||||
Other non-current liabilities | 124.7 | 129.2 | ||||||
Total liabilities | 2,170.5 | 2,178.1 | ||||||
Equity | 2,731.7 | 2,496.1 | ||||||
Total liabilities and equity | $ | 4,902.2 | $ | 4,674.2 | ||||
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Twelve months ended | ||||||||
In millions | December 31, 2022 | December 31, 2021 | ||||||
Operating activities | ||||||||
Net income | $ | 399.8 | $ | 272.9 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
Depreciation | 43.5 | 40.9 | ||||||
Amortization | 70.7 | 67.5 | ||||||
Deferred income taxes | (13.6) | (18.8) | ||||||
Share-based compensation | 25.0 | 16.6 | ||||||
Loss on early extinguishment of debt | — | 15.2 | ||||||
Pension and other post-retirement expense (income) | (61.4) | (9.5) | ||||||
Pension and other post-retirement contributions | (5.5) | (6.5) | ||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts and notes receivable | (45.9) | (104.2) | ||||||
Inventories | (34.7) | (74.0) | ||||||
Other current assets | 13.4 | (7.6) | ||||||
Accounts payable | (4.7) | 73.7 | ||||||
Employee compensation and benefits | (2.1) | 43.6 | ||||||
Other current liabilities | 18.1 | 59.3 | ||||||
Other non-current assets and liabilities | (8.0) | 4.2 | ||||||
Net cash provided by (used for) operating activities | 394.6 | 373.3 | ||||||
Investing activities | ||||||||
Capital expenditures | (45.9) | (39.5) | ||||||
Proceeds from sale of property and equipment | 2.0 | 0.6 | ||||||
Acquisitions, net of cash acquired | (8.6) | (235.1) | ||||||
Net cash provided by (used for) investing activities | (52.5) | (274.0) | ||||||
Financing activities | ||||||||
Net receipts (repayments) of revolving credit facility | (106.7) | 72.1 | ||||||
Proceeds from long-term debt | 200.0 | 300.0 | ||||||
Repayments of long-term debt | (10.0) | (318.7) | ||||||
Settlement of cross currency swaps | 10.0 | — | ||||||
Settlement of interest rate swap | — | 9.6 | ||||||
Debt issuance costs | — | (5.4) | ||||||
Premium paid on early extinguishment of debt | — | (15.2) | ||||||
Dividends paid | (117.0) | (117.7) | ||||||
Shares issued to employees, net of shares withheld | 7.5 | 20.0 | ||||||
Repurchases of ordinary shares | (65.9) | (111.5) | ||||||
Net cash provided by (used for) financing activities | (82.1) | (166.8) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (12.0) | (5.5) | ||||||
Change in cash and cash equivalents | 248.0 | (73.0) | ||||||
Cash and cash equivalents, beginning of period | 49.5 | 122.5 | ||||||
Cash and cash equivalents, end of period | $ | 297.5 | $ | 49.5 | ||||
nVent Electric plc | |||||||||||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | |||||||||||||||||
2022 | |||||||||||||||||
In millions | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||
Net sales | |||||||||||||||||
Enclosures | $ | 359.4 | $ | 380.8 | $ | 387.7 | $ | 375.8 | $ | 1,503.7 | |||||||
Electrical & Fastening Solutions | 187.6 | 200.9 | 209.2 | 193.7 | 791.4 | ||||||||||||
Thermal Management | 147.7 | 145.8 | 148.3 | 172.1 | 613.9 | ||||||||||||
Total | $ | 694.7 | $ | 727.5 | $ | 745.2 | $ | 741.6 | $ | 2,909.0 | |||||||
Segment income (loss) | |||||||||||||||||
Enclosures | $ | 50.3 | $ | 61.5 | $ | 71.9 | $ | 72.3 | $ | 256.0 | |||||||
Electrical & Fastening Solutions | 47.1 | 58.8 | 60.8 | 53.2 | 219.9 | ||||||||||||
Thermal Management | 32.4 | 28.3 | 35.9 | 44.2 | 140.8 | ||||||||||||
Other | (19.6) | (23.4) | (24.6) | (25.5) | (93.1) | ||||||||||||
Total | $ | 110.2 | $ | 125.2 | $ | 144.0 | $ | 144.2 | $ | 523.6 | |||||||
Return on sales | |||||||||||||||||
Enclosures | 14.0 | % | 16.2 | % | 18.5 | % | 19.2 | % | 17.0 | % | |||||||
Electrical & Fastening Solutions | 25.1 | % | 29.3 | % | 29.1 | % | 27.5 | % | 27.8 | % | |||||||
Thermal Management | 21.9 | % | 19.4 | % | 24.2 | % | 25.7 | % | 22.9 | % | |||||||
Total | 15.9 | % | 17.2 | % | 19.3 | % | 19.4 | % | 18.0 | % |
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 | % | |||||||
nVent Electric plc | |||||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2022 | |||||||||||||||||
excluding the effect of adjustments (Unaudited) | |||||||||||||||||
In millions, except per-share data | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||
Net sales | $ | 694.7 | $ | 727.5 | $ | 745.2 | $ | 741.6 | 2,909.0 | ||||||||
Operating income | 90.1 | 104.7 | 120.5 | 125.1 | 440.4 | ||||||||||||
% of net sales | 13.0 | % | 14.4 | % | 16.2 | % | 16.9 | % | 15.1 | % | |||||||
Adjustments: | |||||||||||||||||
Restructuring and other | 2.0 | 2.3 | 5.9 | 1.5 | 11.7 | ||||||||||||
Acquisition transaction and integration costs | 0.3 | 0.5 | — | — | 0.8 | ||||||||||||
Intangible amortization | 17.8 | 17.7 | 17.6 | 17.6 | 70.7 | ||||||||||||
Segment income | $ | 110.2 | $ | 125.2 | $ | 144.0 | $ | 144.2 | $ | 523.6 | |||||||
Return on sales | 15.9 | % | 17.2 | % | 19.3 | % | 19.4 | % | 18.0 | % | |||||||
Net income - as reported | $ | 67.8 | $ | 79.9 | $ | 93.4 | $ | 158.7 | $ | 399.8 | |||||||
Adjustments to operating income | 20.1 | 20.5 | 23.5 | 19.1 | 83.2 | ||||||||||||
Pension and other post-retirement mark-to-market gain | — | — | — | (66.3) | (66.3) | ||||||||||||
Income tax adjustments | (3.4) | (4.3) | (5.2) | 0.1 | (12.8) | ||||||||||||
Net income - as adjusted | $ | 84.5 | $ | 96.1 | $ | 111.7 | $ | 111.6 | $ | 403.9 | |||||||
Diluted earnings per ordinary share | |||||||||||||||||
Diluted earnings per ordinary share - as reported | $ | 0.40 | $ | 0.48 | $ | 0.55 | $ | 0.94 | $ | 2.38 | |||||||
Adjustments | 0.10 | 0.09 | 0.11 | (0.28) | 0.02 | ||||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.50 | $ | 0.57 | $ | 0.66 | $ | 0.66 | $ | 2.40 | |||||||
nVent Electric plc | |||||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2021 | |||||||||||||||||
excluding the effect of 2021 adjustments (Unaudited) | |||||||||||||||||
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 - 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 ending December 31, 2023 | ||||||||||||||
excluding the effect of 2023 adjustments (Unaudited) | ||||||||||||||
In millions, except per-share data | Forecast (1) | |||||||||||||
First Quarter | Full Year | |||||||||||||
Net income - as reported | $ | 81 | $ | 371 | ||||||||||
Intangible amortization | 18 | 72 | ||||||||||||
Income tax adjustments | (3) | (13) | ||||||||||||
Net income - as adjusted | $ | 96 | $ | 430 | ||||||||||
Diluted earnings per ordinary share | ||||||||||||||
Diluted earnings per ordinary share - as reported | $0.47 - $0.49 | $2.16 - $2.26 | ||||||||||||
Adjustments | 0.09 | 0.35 | ||||||||||||
Diluted earnings per ordinary share - as adjusted | $0.56 - $0.58 | $2.51 - $2.61 | ||||||||||||
(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, 2022 (Unaudited) | |||||||||||||||||||||||||||||
Q4 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 14.8 | % | (3.9) | % | — | % | 10.9 | % | 20.0 | % | (3.7) | % | 1.9 | % | 18.2 | % | |||||||||||||
Enclosures | 17.0 | % | (3.9) | % | — | % | 13.1 | % | 20.6 | % | (3.6) | % | 3.8 | % | 20.8 | % | |||||||||||||
Electrical & Fastening Solutions | 16.3 | % | (3.1) | % | — | % | 13.2 | % | 23.5 | % | (3.1) | % | — | % | 20.4 | % | |||||||||||||
Thermal Management | 8.9 | % | (5.1) | % | — | % | 3.8 | % | 14.3 | % | (4.6) | % | — | % | 9.7 | % |
nVent Electric plc | |||||||||||||||||||||||||||||
Reconciliation of Net Sales Growth to Organic Net Sales Growth | |||||||||||||||||||||||||||||
for the quarter ending March 31, 2023 and the year ending December 31, 2023 (Unaudited) | |||||||||||||||||||||||||||||
Forecast (1) | |||||||||||||||||||||||||||||
Q1 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 5 - 7 % | (2) | % | — | % | 3 - 5 % | 4 - 6 % | (1) | % | — | % | 3 - 5 % | |||||||||||||||||
(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, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
Net cash provided by (used for) operating activities | $ | 194.8 | $ | 115.2 | $ | 394.6 | $ | 373.3 | |||||||||
Capital expenditures | (15.1) | (14.3) | (45.9) | (39.5) | |||||||||||||
Proceeds from sale of property and equipment | — | 0.5 | 2.0 | 0.6 | |||||||||||||
Free cash flow | $ | 179.7 | $ | 101.4 | $ | 350.7 | $ | 334.4 | |||||||||