SWORDS, Ireland--(BUSINESS WIRE)--
Highlights (versus prior year, unless otherwise noted):
|
•
|
Bookings growth up 14 percent; organic bookings* up 9 percent
with growth in both Climate and Industrial
|
|
|
|
|
•
|
Revenues up 13 percent, organic revenues* up 8 percent with
continued strength in both Climate
and Industrial
|
|
|
|
|
•
|
Q1 continuing EPS of $0.51, up 9 percent; adjusted continuing
EPS* of $0.70, up 23 percent
|
|
|
|
|
•
|
Operating income up 13 percent; adjusted operating income* up 16
percent
|
|
|
|
|
•
|
Expect to exceed high end of annual guidance range on enterprise
revenue and earnings per share
|
|
|
|
|
*This news release contains non-GAAP financial measures.
Definitions of the non-GAAP financial measures can be found in the
footnotes of this news release. See attached tables for additional
details and reconciliations.
|
Ingersoll-Rand plc (NYSE:IR), a world leader in creating comfortable,
sustainable and efficient environments, today reported diluted earnings
per share (EPS) from continuing operations of $0.51 for the first
quarter of 2018. Excluding restructuring costs of ($44.4M) and debt
redemption premium and related charges of ($16.6M), adjusted continuing
EPS was $0.70.
First-Quarter 2018 Results
Financial Comparisons - First-Quarter Continuing Operations
|
$, millions except EPS
|
|
Q1 2018
|
|
Q1 2017
|
|
Y-O-Y Change
|
|
Organic Y-O-Y
Change
|
|
Bookings
|
|
$
|
3,909
|
|
|
$
|
3,435
|
|
|
14
|
%
|
|
9
|
%
|
|
Net Revenues
|
|
$
|
3,385
|
|
|
$
|
3,001
|
|
|
13
|
%
|
|
8
|
%
|
|
Operating Income
|
|
$
|
243
|
|
|
$
|
215
|
|
|
13
|
%
|
|
|
|
Operating Margin
|
|
|
7.2
|
%
|
|
|
7.2
|
%
|
|
flat
|
|
|
Adjusted Operating Income
|
|
$
|
288
|
|
|
$
|
248
|
|
|
16
|
%
|
|
|
Adjusted Operating Margin*
|
|
|
8.5
|
%
|
|
|
8.3
|
%
|
|
0.2 PPts
|
|
|
Continuing EPS
|
|
$
|
0.51
|
|
|
$
|
0.47
|
|
|
9
|
%
|
|
|
Adjusted Continuing EPS
|
|
$
|
0.70
|
|
|
$
|
0.57
|
|
|
23
|
%
|
|
|
Restructuring Cost
|
|
|
($44.4
|
)
|
|
|
($32.7
|
)
|
|
($11.7
|
)
|
|
“We are off to a strong start in 2018. Through sustained execution of
our business strategy and healthy end markets, we delivered double-digit
bookings and revenue growth in our Climate and Industrial segments and
23 percent adjusted continuing EPS growth in the first quarter. This
demonstrates our continued progress in building a more sustainable and
resilient company for the long-term,” said Michael W. Lamach, chairman
and chief executive officer. "At this early stage in the year, our
volumes are exceeding our initial expectations and we see good pricing
receptivity in the market driving margin expansion. Margin improvement
is being partially dampened by persistent and rising inflation. We
continue to see growth opportunities ahead as our markets and customers
move toward solutions that address energy efficiency and lower
greenhouse gas emissions. Overall, we are confident that we will exceed
the high end of our ranges for revenue and EPS for 2018, and we plan to
provide our comprehensive guidance update per our normal cadence on our
second quarter earnings call.”
Highlights from the First Quarter of 2018 (all comparisons against
the first quarter of 2017 unless otherwise noted)
-
Bookings up 14 percent, strong organic bookings growth of 9 percent
with growth across all businesses.
-
Enterprise revenue up 13 percent, organic revenue up 8 percent with
growth in virtually all products and geographies and particularly
strong growth in services and parts.
-
Enterprise reported revenue growth included approximately 4 percentage
points of growth from foreign exchange and approximately 1 percentage
point from acquisitions.
-
Enterprise revenue mix was 66 percent equipment and 34 percent
services and parts, reflecting our services focus.
-
Operating margin flat; adjusted operating margin up 20 basis points
driven by strong volume, positive price and productivity partially
offset by material and freight inflation.
-
Restructuring costs of $44.4M were consistent with the company's
expectations. Costs were primarily related to a European footprint
optimization to shift production to plants near customer demand.
-
Q1 adjusted effective tax rate* of 20.4 percent consistent with
expectations for full-year estimated adjusted effective tax rate of 21
percent to 22 percent.
First-Quarter Business Review (all comparisons against the first
quarter of 2017 unless otherwise noted)
Climate Segment: delivers energy-efficient products and
innovative energy services. The segment includes Trane® and
American Standard® Heating & Air Conditioning which provide
heating, ventilation and air conditioning (HVAC) systems, and commercial
and residential building services, parts, support and controls; energy
services and building automation through Trane Building Advantage™ and
Nexia™; and Thermo King® transport temperature control
solutions.
|
$, millions
|
|
Q1 2018
|
|
|
Q1 2017
|
|
|
Y-O-Y Change
|
|
|
Organic Y-O-Y
Change
|
|
Bookings
|
|
$
|
3,067
|
|
|
|
$
|
2,673
|
|
|
|
15
|
%
|
|
|
11
|
%
|
|
Net Revenues
|
|
$
|
2,610
|
|
|
|
$
|
2,324
|
|
|
|
12
|
%
|
|
|
8
|
%
|
|
Operating Income
|
|
$
|
260.4
|
|
|
|
$
|
217.3
|
|
|
|
20
|
%
|
|
|
|
|
Operating Margin
|
|
|
10.0
|
%
|
|
|
|
9.4
|
%
|
|
|
0.6 PPts
|
|
|
|
Adjusted Operating Income
|
|
$
|
264.3
|
|
|
|
$
|
245.3
|
|
|
|
8
|
%
|
|
|
|
Adjusted Operating Margin
|
|
|
10.1
|
%
|
|
|
|
10.6
|
%
|
|
|
(0.5) PPts
|
|
|
-
Bookings up 15 percent, organic bookings up 11 percent. Revenue up 12
percent, organic revenue up 8 percent.
-
Broad-based revenue growth in all businesses and regions, and services.
-
Climate reported revenue growth included approximately 3 percentage
points of growth from foreign exchange and approximately 1 percentage
point from acquisitions.
-
Climate revenue mix was 68 percent equipment and 32 percent services
and parts, reflecting our services focus.
-
Operating margin expansion due to reduced restructuring actions
primarily related to plant consolidation within the U.S. in 2017;
adjusted operating margin positive impacts from price, volume and
productivity were more than offset by inflationary headwinds.
Industrial Segment: delivers products and services that enhance
energy efficiency, productivity and operations. The segment includes
compressed air and gas systems and services, power tools, material
handling systems, ARO® fluid management equipment, as well as
Club Car® golf, utility and consumer low-speed vehicles.
|
$, millions
|
|
Q1 2018
|
|
Q1 2017
|
|
Y-O-Y Change
|
|
Organic Y-O-Y
Change
|
|
Bookings
|
|
$
|
842
|
|
|
$
|
762
|
|
|
10
|
%
|
|
5
|
%
|
|
Net Revenues
|
|
$
|
775
|
|
|
$
|
676
|
|
|
15
|
%
|
|
9
|
%
|
|
Operating Income
|
|
$
|
59.9
|
|
|
$
|
65.8
|
|
|
(9
|
%)
|
|
|
|
Operating Margin
|
|
|
7.7
|
%
|
|
|
9.7
|
%
|
|
(2.0) PPts
|
|
|
Adjusted Operating Income
|
|
$
|
95.6
|
|
|
$
|
70.5
|
|
|
36
|
%
|
|
|
Adjusted Operating Margin
|
|
|
12.3
|
%
|
|
|
10.4
|
%
|
|
1.9 PPts
|
|
-
Bookings up 10 percent and organic bookings up 5 percent. Revenue up
15 percent with organic revenue up 9 percent.
-
Strong revenue growth in all products and services.
-
Industrial reported revenue growth included approximately 5 percentage
points of growth from foreign exchange and approximately 1 percentage
point from acquisitions.
-
Industrial revenue mix was 61 percent equipment and 39 percent
services and parts, reflecting our services focus.
-
Operating margin down 200 bps primarily due to increased restructuring
actions principally related to European footprint optimization to
shift production to plants near customer demand; adjusted operating
margin up 190 bps driven by strong revenue growth, positive price and
productivity more than offsetting inflation headwinds.
Balance Sheet and Cash Flow
|
$, millions
|
|
Q1 2018
|
|
Q1 2017
|
|
|
Y-O-Y Change
|
|
Cash From Continuing Operating Activities Y-T-D
|
|
|
($45.8
|
)
|
|
|
($33.3
|
)
|
|
|
|
($12.5
|
)
|
|
Free Cash Flow Y-T-D*
|
|
|
($89.8
|
)
|
|
|
($63.3
|
)
|
|
|
|
($26.5
|
)
|
|
Working Capital/Revenue*
|
|
|
6.0
|
%
|
|
|
5.8
|
%
|
|
|
20 bps increase
|
|
Cash Balance 31 March
|
|
$
|
1,175
|
|
|
$
|
1,322
|
|
|
|
|
($147
|
)
|
|
Debt Balance 31 March
|
|
$
|
4,351
|
|
|
$
|
4,072
|
|
|
|
$
|
279
|
|
-
The company repurchased $250 million or 2.8 million shares in the
first quarter.
-
Acquisition pipeline remains active; Trane / Mitsubishi Electric joint
venture regulatory approval expected Q2 2018.
-
First-quarter cash flow from continuing operating activities was ($46)
million, consistent with the company’s expectations and normal
business seasonality.
-
Working capital / revenue on track for 2018.
Guidance
-
The company will provide a full update to 2018 guidance in conjunction
with its second quarter 2018 earnings call per its normal cadence.
This news release includes “forward-looking statements,” which are
statements that are not historical facts, including statements that
relate to the mix of and demand for our products; performance of the
markets in which we operate; our share repurchase program including the
amount of shares to be repurchased and timing of such repurchases; our
capital allocation strategy including projected acquisitions; the timing
of receiving regulatory approvals for our joint venture; our projected
2018 full-year financial performance and targets including assumptions
regarding our effective tax rate and other factors described in our
guidance. These forward-looking statements are based on our current
expectations and are subject to risks and uncertainties, which may cause
actual results to differ materially from our current expectations. Such
factors include, but are not limited to, global economic conditions, the
outcome of any litigation, demand for our products and services, and tax
law changes. Additional factors that could cause such differences can be
found in our Form 10-K for the year ended December 31, 2017, as well as
our subsequent reports on Form 10-Q and other SEC filings. We assume no
obligation to update these forward-looking statements.
This news release also includes non-GAAP financial information which
should be considered supplemental to, not a substitute for, or superior
to, the financial measure calculated in accordance with GAAP. The
definitions of our non-GAAP financial information and reconciliation to
GAAP is attached to this news release.
All amounts reported within the earnings release above related to net
earnings (loss), earnings (loss) from continuing operations, earnings
(loss) from discontinued operations, and per share amounts are
attributed to Ingersoll Rand’s ordinary shareholders.
Ingersoll Rand (NYSE:IR) advances the quality of life by creating
comfortable, sustainable and efficient environments. Our people and our
family of brands - including Club Car®,
Ingersoll Rand®,
Thermo King®
and Trane®
- work together to enhance the quality and comfort of air in
homes and buildings; transport and protect food and perishables; and
increase industrial productivity and efficiency. We are a $14 billion
global business committed to a world of sustainable progress and
enduring results. For more information, visit ingersollrand.com.
4/25/18
(See Accompanying Tables)
-
Table 1: Condensed Consolidated Income Statement
-
Table 2: Business Review
-
Tables 3 - 5: Reconciliation of GAAP to Non-GAAP
-
Table 6: Condensed Consolidated Balance Sheets
-
Table 7: Condensed Consolidated Statement of Cash Flows
-
Table 8: Balance Sheet Metrics and Free Cash Flow
*Non-GAAP measures definitions
Organic revenue is defined as GAAP net revenues adjusted for the
impact of currency and acquisitions. Organic bookings is
defined as reported orders closed/completed in the current period
adjusted for the impact of currency and acquisitions.
-
Currency impacts on net revenues and bookings are measured by applying
the prior year’s foreign currency exchange rates to the current
period’s net revenues and bookings reported in local currency. This
measure allows for a direct comparison of operating results excluding
the year-over-year impact of foreign currency translation.
Adjusted operating income is defined as GAAP operating income
plus restructuring costs in 2018 and 2017. Please refer to the
reconciliation of GAAP to non-GAAP measures on tables 3 and 4 of the
news release.
Adjusted operating margin is defined as the ratio of adjusted
operating income divided by net revenues.
Adjusted continuing EPS in 2018 is defined as GAAP continuing EPS
plus restructuring costs and debt redemption premium and related
charges, net of tax impacts. Adjusted continuing EPS in 2017 is defined
as GAAP continuing EPS plus restructuring costs, net of tax impacts.
Please refer to the reconciliation of GAAP to non-GAAP measures on
tables 3 and 4 of the news release.
Free cash flow in 2018 and 2017 is defined as net cash provided
by (used in) continuing operating activities, less capital expenditures,
plus cash payments for restructuring. In 2018, the Company updated its
definition of free cash flow to exclude the impacts of discontinued
operations. As a result, free cash flow amounts in 2017 have been
restated to conform with the current year definition. Please refer to
the free cash flow reconciliation on table 8 of the news release.
Working capital measures a firm’s operating liquidity position
and its overall effectiveness in managing the enterprises’ current
accounts.
-
Working capital is calculated by adding net accounts and notes
receivables and inventories and subtracting total current liabilities
that exclude short term debt, dividend payables and income tax
payables.
-
Working capital as a percent of revenue is calculated by
dividing the working capital balance (e.g. as of March 31) by the
annualized revenue for the period (e.g. reported revenues for the
three months ended March 31) multiplied by 4 to annualize for a full
year.
Adjusted effective tax rate for 2018 is defined as the ratio of
income tax expense, plus or minus the tax effect of adjustments for
restructuring costs and debt redemption premium and related charges,
divided by earnings from continuing operations before income taxes plus
restructuring costs and debt redemption premium and related charges.
Adjusted effective tax rate for 2017 is defined as the ratio of income
tax expense, plus or minus the tax effect of adjustments for
restructuring costs, divided by earnings from continuing operations
before income taxes plus restructuring costs. This measure allows for a
direct comparison of the effective tax rate between periods.
Adjusted OI + D&A is defined as adjusted operating income
plus depreciation and amortization expense.
|
|
|
|
|
INGERSOLL-RAND PLC
Condensed Consolidated Income Statement
(In millions, except per share amounts)
UNAUDITED
|
|
|
|
|
|
|
|
For the quarter
|
|
|
ended March 31,
|
|
|
2018
|
|
2017
|
|
Net revenues
|
|
$
|
3,384.5
|
|
|
$
|
3,000.6
|
|
|
Cost of goods sold
|
|
(2,420.2
|
)
|
|
(2,126.1
|
)
|
|
Selling and administrative expenses
|
|
(720.9
|
)
|
|
(659.5
|
)
|
|
Operating income
|
|
243.4
|
|
|
215.0
|
|
|
Interest expense
|
|
(72.9
|
)
|
|
(54.0
|
)
|
|
Other income/(expense), net
|
|
(4.0
|
)
|
|
(4.7
|
)
|
|
Earnings before income taxes
|
|
166.5
|
|
|
156.3
|
|
|
Provision for income taxes
|
|
(33.0
|
)
|
|
(28.7
|
)
|
|
Earnings from continuing operations
|
|
133.5
|
|
|
127.6
|
|
|
Discontinued operations, net of tax
|
|
(9.4
|
)
|
|
(6.5
|
)
|
|
Net earnings
|
|
124.1
|
|
|
121.1
|
|
|
Less: Net earnings attributable to noncontrolling interests
|
|
(3.7
|
)
|
|
(4.0
|
)
|
|
Net earnings attributable to Ingersoll-Rand plc
|
|
$
|
120.4
|
|
|
$
|
117.1
|
|
|
|
|
|
|
|
|
Amounts attributable to Ingersoll-Rand plc
ordinary shareholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
129.8
|
|
|
$
|
123.6
|
|
|
Discontinued operations
|
|
(9.4
|
)
|
|
(6.5
|
)
|
|
Net earnings
|
|
$
|
120.4
|
|
|
$
|
117.1
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to
Ingersoll-Rand plc ordinary shareholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.51
|
|
|
$
|
0.47
|
|
|
Discontinued operations
|
|
(0.03
|
)
|
|
(0.02
|
)
|
|
|
|
$
|
0.48
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
Diluted
|
|
253.0
|
|
|
262.6
|
|
|
|
|
|
|
INGERSOLL-RAND PLC
Business Review
(In millions, except percentages)
UNAUDITED
|
|
|
|
|
|
|
|
For the quarter
|
|
|
ended March 31,
|
|
|
2018
|
|
2017
|
|
Climate
|
|
|
|
|
|
Net revenues
|
|
$
|
2,609.8
|
|
|
$
|
2,324.1
|
|
|
Segment operating income *
|
|
260.4
|
|
|
217.3
|
|
|
and as a % of Net revenues
|
|
10.0
|
%
|
|
9.4
|
%
|
|
|
|
|
|
|
|
Industrial
|
|
|
|
|
|
Net revenues
|
|
774.7
|
|
|
676.5
|
|
|
Segment operating income *
|
|
59.9
|
|
|
65.8
|
|
|
and as a % of Net revenues
|
|
7.7
|
%
|
|
9.7
|
%
|
|
|
|
|
|
|
|
Unallocated corporate expense
|
|
(76.9
|
)
|
|
(68.1
|
)
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Net revenues
|
|
$
|
3,384.5
|
|
|
$
|
3,000.6
|
|
|
Consolidated operating income
|
|
$
|
243.4
|
|
|
$
|
215.0
|
|
|
and as a % of Net revenues
|
|
7.2
|
%
|
|
7.2
|
%
|
|
* Segment operating income is the measure of profit and loss that
the Company uses to evaluate the financial performance of the
business and as the basis for performance reviews, compensation and
resource allocation. For these reasons, the Company believes that
Segment operating income represents the most relevant measure of
segment profit and loss.
|
|
|
|
|
|
|
INGERSOLL-RAND PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
|
|
|
|
|
|
|
|
|
|
For the quarter ended March 31, 2018
|
|
|
|
|
As
|
|
|
|
|
|
As
|
|
|
|
|
Reported
|
|
|
Adjustments
|
|
|
Adjusted
|
|
|
Net revenues
|
|
$
|
3,384.5
|
|
|
|
$
|
—
|
|
|
|
$
|
3,384.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
243.4
|
|
|
|
44.4
|
|
(a)
|
|
287.8
|
|
|
|
Operating margin
|
|
7.2
|
%
|
|
|
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
166.5
|
|
|
|
61.0
|
|
(a,b)
|
|
227.5
|
|
|
|
Provision for income taxes
|
|
(33.0
|
)
|
|
|
(13.4
|
)
|
(c)
|
|
(46.4
|
)
|
|
|
Tax rate
|
|
19.8
|
%
|
|
|
|
|
|
20.4
|
%
|
|
|
Earnings from continuing operations attributable to Ingersoll-Rand
plc
|
|
$
|
129.8
|
|
|
|
$
|
47.6
|
|
(d)
|
|
$
|
177.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.51
|
|
|
|
$
|
0.19
|
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
253.0
|
|
|
|
—
|
|
|
|
253.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Adjustments:
|
|
|
|
|
|
|
|
|
|
(a)
|
Restructuring costs
|
|
|
|
|
$
|
44.4
|
|
|
|
|
|
(b)
|
Debt redemption premium and related charges
|
|
|
|
|
16.6
|
|
|
|
|
|
(c)
|
Tax impact of adjustments (a,b)
|
|
|
|
|
(13.4
|
)
|
|
|
|
|
(d)
|
Impact of adjustments on earnings from continuing operations
attributable to Ingersoll-Rand plc
|
|
|
|
|
$
|
47.6
|
|
|
|
|
|
The Company reports its financial results in accordance with
generally accepted accounting principles in the United States
(GAAP). This supplemental schedule provides non-GAAP financial
information and a quantitative reconciliation of the difference
between the non-GAAP financial measures and the financial measures
calculated and reported in accordance with GAAP.
|
|
|
|
The non-GAAP financial measures should be considered supplemental
to, not a substitute for or superior to, financial measures
calculated in accordance with GAAP. They have limitations in that
they do not reflect all of the costs associated with the operations
of our businesses as determined in accordance with GAAP. In
addition, these measures may not be comparable to non-GAAP financial
measures reported by other companies.
|
|
|
|
We believe the non-GAAP financial information provides important
supplemental information to both management and investors regarding
financial and business trends used in assessing our financial
condition and results of operations.
|
|
|
|
The non-GAAP financial measures associated with operating income and
margin, tax rate and EPS assist investors with analyzing our
business segment results as well as with predicting future
performance. In addition, these non-GAAP financial measures are also
reviewed by management in order to evaluate the financial
performance of each segment. They are the basis for performance
reviews, compensation and resource allocation. We believe that the
presentation of these non-GAAP financial measures will permit
investors to assess the performance of the Company on the same basis
as management.
|
|
|
|
As a result, one should not consider these measures in isolation or
as a substitute for our results reported under GAAP. We compensate
for these limitations by analyzing results on a GAAP basis as well
as a non-GAAP basis, prominently disclosing GAAP results and
providing reconciliations from GAAP results to non-GAAP results.
|
|
|
|
|
|
|
INGERSOLL-RAND PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
|
|
|
|
|
|
|
|
|
|
For the quarter ended March 31, 2017
|
|
|
|
|
As
|
|
|
|
|
|
As
|
|
|
|
|
Reported
|
|
|
Adjustments
|
|
|
Adjusted
|
|
|
Net revenues
|
|
$
|
3,000.6
|
|
|
|
$
|
—
|
|
|
|
$
|
3,000.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
215.0
|
|
|
|
32.7
|
|
(a)
|
|
247.7
|
|
|
|
Operating margin
|
|
7.2
|
%
|
|
|
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
156.3
|
|
|
|
32.7
|
|
(a)
|
|
189.0
|
|
|
|
Provision for income taxes
|
|
(28.7
|
)
|
|
|
(7.9
|
)
|
(b)
|
|
(36.6
|
)
|
|
|
Tax rate
|
|
18.4
|
%
|
|
|
|
|
|
19.4
|
%
|
|
|
Earnings from continuing operations attributable to Ingersoll-Rand
plc
|
|
$
|
123.6
|
|
|
|
$
|
24.8
|
|
(c)
|
|
$
|
148.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.47
|
|
|
|
$
|
0.10
|
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
262.6
|
|
|
|
—
|
|
|
|
262.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Adjustments:
|
|
|
|
|
|
|
|
|
|
(a)
|
Restructuring costs
|
|
|
|
|
$
|
32.7
|
|
|
|
|
|
(b)
|
Tax impact of adjustment (a)
|
|
|
|
|
(7.9
|
)
|
|
|
|
|
(c)
|
Impact of adjustments on earnings from continuing operations
attributable to Ingersoll-Rand plc
|
|
|
|
|
$
|
24.8
|
|
|
|
|
|
The Company reports its financial results in accordance with
generally accepted accounting principles in the United States
(GAAP). This supplemental schedule provides non-GAAP financial
information and a quantitative reconciliation of the difference
between the non-GAAP financial measures and the financial measures
calculated and reported in accordance with GAAP.
|
|
|
|
The non-GAAP financial measures should be considered supplemental
to, not a substitute for or superior to, financial measures
calculated in accordance with GAAP. They have limitations in that
they do not reflect all of the costs associated with the operations
of our businesses as determined in accordance with GAAP. In
addition, these measures may not be comparable to non-GAAP financial
measures reported by other companies.
|
|
|
|
We believe the non-GAAP financial information provides important
supplemental information to both management and investors regarding
financial and business trends used in assessing our financial
condition and results of operations.
|
|
|
|
The non-GAAP financial measures associated with operating income and
margin, tax rate and EPS assist investors with analyzing our
business segment results as well as with predicting future
performance. In addition, these non-GAAP financial measures are also
reviewed by management in order to evaluate the financial
performance of each segment. They are the basis for performance
reviews, compensation and resource allocation. We believe that the
presentation of these non-GAAP financial measures will permit
investors to assess the performance of the Company on the same basis
as management.
|
|
|
|
As a result, one should not consider these measures in isolation or
as a substitute for our results reported under GAAP. We compensate
for these limitations by analyzing results on a GAAP basis as well
as a non-GAAP basis, prominently disclosing GAAP results and
providing reconciliations from GAAP results to non-GAAP results.
|
|
|
|
|
|
|
|
|
INGERSOLL-RAND PLC
Reconciliation of GAAP to non-GAAP
(In millions)
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended March 31, 2018
|
|
|
For the quarter ended March 31, 2017
|
|
|
|
As Reported
|
|
|
Margin
|
|
|
As Reported
|
|
|
Margin
|
|
Climate
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
2,609.8
|
|
|
|
|
|
|
$
|
2,324.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating income
|
|
$
|
260.4
|
|
|
|
10.0
|
%
|
|
|
$
|
217.3
|
|
|
|
9.4
|
%
|
|
Restructuring
|
|
3.9
|
|
|
|
0.1
|
%
|
|
|
28.0
|
|
|
|
1.2
|
%
|
|
Adjusted operating income
|
|
264.3
|
|
|
|
10.1
|
%
|
|
|
245.3
|
|
|
|
10.6
|
%
|
|
Depreciation and amortization
|
|
64.3
|
|
|
|
2.5
|
%
|
|
|
60.8
|
|
|
|
2.6
|
%
|
|
Adjusted OI plus D&A *
|
|
$
|
328.6
|
|
|
|
12.6
|
%
|
|
|
$
|
306.1
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
774.7
|
|
|
|
|
|
|
$
|
676.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating income
|
|
$
|
59.9
|
|
|
|
7.7
|
%
|
|
|
$
|
65.8
|
|
|
|
9.7
|
%
|
|
Restructuring
|
|
35.7
|
|
|
|
4.6
|
%
|
|
|
4.7
|
|
|
|
0.7
|
%
|
|
Adjusted operating income
|
|
95.6
|
|
|
|
12.3
|
%
|
|
|
70.5
|
|
|
|
10.4
|
%
|
|
Depreciation and amortization
|
|
21.0
|
|
|
|
2.7
|
%
|
|
|
19.2
|
|
|
|
2.8
|
%
|
|
Adjusted OI plus D&A
|
|
$
|
116.6
|
|
|
|
15.0
|
%
|
|
|
$
|
89.7
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate expense
|
|
$
|
(76.9
|
)
|
|
|
|
|
|
$
|
(68.1
|
)
|
|
|
|
|
Restructuring
|
|
4.8
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Adjusted corporate expense
|
|
(72.1
|
)
|
|
|
|
|
|
(68.1
|
)
|
|
|
|
|
Depreciation and amortization
|
|
8.1
|
|
|
|
|
|
|
6.7
|
|
|
|
|
|
Adjusted corporate expense plus D&A
|
|
$
|
(64.0
|
)
|
|
|
|
|
|
$
|
(61.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
3,384.5
|
|
|
|
|
|
|
$
|
3,000.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
243.4
|
|
|
|
7.2
|
%
|
|
|
$
|
215.0
|
|
|
|
7.2
|
%
|
|
Restructuring
|
|
44.4
|
|
|
|
1.3
|
%
|
|
|
32.7
|
|
|
|
1.1
|
%
|
|
Adjusted operating income
|
|
287.8
|
|
|
|
8.5
|
%
|
|
|
247.7
|
|
|
|
8.3
|
%
|
|
Depreciation and amortization
|
|
93.4
|
|
|
|
2.8
|
%
|
|
|
86.7
|
|
|
|
2.8
|
%
|
|
Adjusted OI plus D&A
|
|
$
|
381.2
|
|
|
|
11.3
|
%
|
|
|
$
|
334.4
|
|
|
|
11.1
|
%
|
|
The Company reports its financial results in accordance with
generally accepted accounting principles in the United States
(GAAP). This supplemental schedule provides non-GAAP financial
information and a quantitative reconciliation of the difference
between the non-GAAP financial measures and the financial measures
calculated and reported in accordance with GAAP.
|
|
|
|
The non-GAAP financial measures should be considered supplemental
to, not a substitute for or superior to, financial measures
calculated in accordance with GAAP. They have limitations in that
they do not reflect all of the costs associated with the operations
of our businesses as determined in accordance with GAAP. In
addition, these measures may not be comparable to non-GAAP financial
measures reported by other companies.
|
|
|
|
We believe the non-GAAP financial information provides important
supplemental information to both management and investors regarding
financial and business trends used in assessing our financial
condition and results of operations.
|
|
|
|
The non-GAAP financial measures of adjusted operating income, plus
depreciation and amortization, adjusted corporate expense, plus
depreciation and amortization, and related margins assist investors
with analyzing our business segment results as well as with
predicting future performance. In addition, these non-GAAP financial
measures are also reviewed by management in order to evaluate the
financial performance of each segment. They are the basis for
performance reviews, compensation and resource allocation. We
believe that the presentation of these non-GAAP financial measures
will permit investors to assess the performance of the Company on
the same basis as management.
|
|
|
|
As a result, one should not consider these measures in isolation or
as a substitute for our results reported under GAAP. We compensate
for these limitations by analyzing results on a GAAP basis as well
as a non-GAAP basis, prominently disclosing GAAP results and
providing reconciliations from GAAP results to non-GAAP results.
|
|
|
|
|
|
|
|
|
INGERSOLL-RAND PLC
Condensed Consolidated Balance Sheets
(In millions)
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
ASSETS
|
|
UNAUDITED
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,175.1
|
|
|
|
$
|
1,549.4
|
|
Accounts and notes receivable, net
|
|
2,516.0
|
|
|
|
2,477.4
|
|
Inventories, net
|
|
1,778.8
|
|
|
|
1,555.4
|
|
Other current assets
|
|
601.6
|
|
|
|
536.9
|
|
Total current assets
|
|
6,071.5
|
|
|
|
6,119.1
|
|
Property, plant and equipment, net
|
|
1,611.3
|
|
|
|
1,551.3
|
|
Goodwill
|
|
6,118.9
|
|
|
|
5,935.7
|
|
Intangible assets, net
|
|
3,756.3
|
|
|
|
3,742.9
|
|
Other noncurrent assets
|
|
807.1
|
|
|
|
824.3
|
|
Total assets
|
|
$
|
18,365.1
|
|
|
|
$
|
18,173.3
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,666.1
|
|
|
|
$
|
1,556.1
|
|
Accrued expenses and other current liabilities
|
|
2,049.4
|
|
|
|
2,164.9
|
|
Short-term borrowings and current maturities of long-term debt
|
|
605.2
|
|
|
|
1,107.0
|
|
Total current liabilities
|
|
4,320.7
|
|
|
|
4,828.0
|
|
Long-term debt
|
|
3,745.5
|
|
|
|
2,957.0
|
|
Other noncurrent liabilities
|
|
3,158.5
|
|
|
|
3,181.4
|
|
Shareholders' equity
|
|
7,140.4
|
|
|
|
7,206.9
|
|
Total liabilities and equity
|
|
$
|
18,365.1
|
|
|
|
$
|
18,173.3
|
|
|
|
|
|
INGERSOLL-RAND PLC
Condensed Consolidated Statement of Cash Flows
(In millions)
UNAUDITED
|
|
|
|
|
|
|
|
For three months
|
|
|
|
ended March 31,
|
|
|
|
2018
|
|
|
2017
|
|
Operating Activities
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
133.5
|
|
|
|
$
|
127.6
|
|
|
Depreciation and amortization
|
|
93.4
|
|
|
|
86.7
|
|
|
Changes in assets and liabilities and other non-cash items
|
|
(272.7
|
)
|
|
|
(247.6
|
)
|
|
Net cash provided by (used in) continuing operating activities
|
|
(45.8
|
)
|
|
|
(33.3
|
)
|
|
Net cash provided by (used in) discontinued operating activities
|
|
(20.4
|
)
|
|
|
(10.1
|
)
|
|
Net cash provided by (used in) operating activities
|
|
(66.2
|
)
|
|
|
(43.4
|
)
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
Capital expenditures
|
|
(52.8
|
)
|
|
|
(35.2
|
)
|
|
Acquisition of businesses and other, net
|
|
(204.9
|
)
|
|
|
(9.4
|
)
|
|
Net cash provided by (used in) investing activities
|
|
(257.7
|
)
|
|
|
(44.6
|
)
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
Short-term borrowings
|
|
247.9
|
|
|
|
—
|
|
|
Proceeds from long-term borrowings, net
|
|
31.6
|
|
|
|
—
|
|
|
Dividends paid to ordinary shareholders
|
|
(111.6
|
)
|
|
|
(102.7
|
)
|
|
Repurchase of ordinary shares
|
|
(250.0
|
)
|
|
|
(250.1
|
)
|
|
Other financing activities, net
|
|
(14.3
|
)
|
|
|
11.3
|
|
|
Net cash provided by (used in) financing activities
|
|
(96.4
|
)
|
|
|
(341.5
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
46.0
|
|
|
|
37.3
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
(374.3
|
)
|
|
|
(392.2
|
)
|
|
Cash and cash equivalents - beginning of period
|
|
1,549.4
|
|
|
|
1,714.7
|
|
|
Cash and cash equivalents - end of period
|
|
$
|
1,175.1
|
|
|
|
$
|
1,322.5
|
|
|
|
|
|
|
|
|
|
|
|
INGERSOLL-RAND PLC
Balance Sheet Metrics and Free Cash Flow
($ in millions)
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
Net Receivables
|
|
|
$
|
2,516
|
|
|
$
|
2,199
|
|
|
$
|
2,477
|
|
Days Sales Outstanding
|
|
|
67.8
|
|
|
66.9
|
|
|
62.5
|
|
|
|
|
|
|
|
|
|
|
Net Inventory
|
|
|
$
|
1,779
|
|
|
$
|
1,600
|
|
|
$
|
1,555
|
|
Inventory Turns
|
|
|
5.4
|
|
|
5.3
|
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
|
$
|
1,666
|
|
|
$
|
1,379
|
|
|
$
|
1,556
|
|
Days Payable Outstanding
|
|
|
62.8
|
|
|
59.2
|
|
|
55.8
|
|
|
|
|
|
|
|
|
|
|
-------------------------------------------------------------------------------------------------------------------------------------------------------
|
|
|
|
|
Quarter ended
|
|
Quarter ended
|
|
|
|
|
March 31, 2018
|
|
March 31, 2017
|
|
Cash flow provided by (used in) continuing operating activities
|
|
|
$
|
(45.8
|
)
|
|
$
|
(33.3
|
)
|
|
Capital expenditures
|
|
|
(52.8
|
)
|
|
(35.2
|
)
|
|
Cash payments for restructuring
|
|
|
8.8
|
|
|
5.2
|
|
|
Free cash flow *
|
|
|
$
|
(89.8
|
)
|
|
$
|
(63.3
|
)
|
|
The Company reports its financial results in accordance with
generally accepted accounting principles in the United States
(GAAP). This supplemental schedule provides non-GAAP financial
information and a quantitative reconciliation of the difference
between the non-GAAP financial measure and the financial measure
calculated and reported in accordance with GAAP.
|
|
|
|
The non-GAAP financial measure should be considered supplemental to,
not a substitute for or superior to, the financial measure
calculated in accordance with GAAP. It has limitations in that it
does not reflect all of the costs associated with the operations of
our businesses as determined in accordance with GAAP. In addition,
this measure may not be comparable to non-GAAP financial measures
reported by other companies.
|
|
|
|
We believe the non-GAAP financial information provides important
supplemental information to both management and investors regarding
financial and business trends used in assessing our financial
condition and cash flow.
|
|
|
|
The non-GAAP financial measure of free cash flow assists investors
with analyzing our business results as well as with predicting
future performance. In addition, this non-GAAP financial measure is
reviewed by management in order to evaluate the financial
performance of each segment as well as the Company as a whole. It is
the basis for performance reviews, compensation and resource
allocation. We believe that the presentation of this non-GAAP
financial measure will permit investors to assess the performance of
the Company on the same basis as management.
|
|
|
|
As a result, one should not consider this measure in isolation or as
a substitute for our results reported under GAAP. We compensate for
these limitations by analyzing results on a GAAP basis as well as a
non-GAAP basis, prominently disclosing GAAP results and providing
reconciliations from GAAP results to non-GAAP results.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180425005553/en/
Source: Ingersoll-Rand plc