展示99.1
ニュースリリース
nVentは2024年第3四半期の財務結果を発表
販売記録と強力なキャッシュフロー
•熱管理ビジネスは、現在および過去すべての期間において廃止措置として報告されました
•継続する事業の売上高は7800万ドルで、9％上昇し、有機的には1％上昇しました
・売上総額は$93,900万で、9%増加しました
•継続する事業から報告されたepsは$0.47です。調整後の継続する事業からのepsは$0.63です。
・EPSの合計は$0.62です。調整後のEPSの合計は$0.84です。
•継続する事業のキャッシュフローは15800万ドルで、29%増加しました；継続する事業のフリーキャッシュフローは14300万ドルで、33%増加しました
•連続する運営を反映した2024年通期ガイダンスの更新。
GAAP（報告された）と非GAAP指標との調整は、添付の財務表に記載されています。
ロンドン、イギリス-2024年11月1日-nVent Electric plc（nyse:NVT）（「nVent」）は、電気接続および保護ソリューションのグローバルリーダーである今日、2024年第3四半期の財務結果を発表し、2024年第4四半期および通期の見通しを発表しました。以前に発表された熱管理ビジネスの売却の結果、会社はそのビジネスの結果を、現在および過去すべての期間において中止された取引として報告しています。
「我々は利益とキャッシュフローが期待を上回る強い第3四半期を迎えました。新製品、成長が速い垂直市場、および買収が大きな貢献をしました。Trachte社の買収は好調なスタートを切り、nVentのBeth Wozniak会長兼最高経営責任者は、これがnVentにとって素晴らしい新しいプラットフォームであると述べています。」
熱管理ビジネスの売却が2025年初頭までに完了することを引き続き期待しています。これらのポートフォリオの移動により、nVentは、電化、持続可能性、デジタル化のメガトレンドに適切に位置付けられた、より焦点を絞った、高成長の電気接続と保護のリーダーになります。
第3四半期の継続事業からの報告売上高は78200万ドルで、四半期の中で中断された事業からの報告売上高は15700万ドルでした。この実績は、続行事業および合計でともに9％増加を表しています。オーガニックでは、通貨の変動と買収の影響を除いた継続事業ベースで売上高が1％成長しました。
2024年第3四半期の継続事業からの1株当たり希薄化後EPSは0.47ドルで、4%減少しました。一方、調整後のベースでは、企業のEPSは0.63ドルで、3%減少しました。中断された運用を含めた総EPSは0.62ドルで、前年比2%減少しました。総調整後EPSは0.84ドルで、前年と同じ水準です。調整後のEPS、調整後の運用収入、調整後の当期純利益、そしてフリーキャッシュフローは、このプレスリリースの添付された非GAAP財務指標セクションで説明されています。 調整後EPS、調整後の運用収入、調整後の当期純利益、およびフリーキャッシュフローは、このプレスリリースの添付された非GAAP財務指標セクションで説明されている非GAAP財務指標です。
2024年第3四半期の営業利益は1億3300万ドルで、前年比6%増の1億2600万ドルより 調整後の営業利益は1億6800万ドルで、前年比4%増の1億6200万ドルより 2023年第3四半期より
nVentは2023年第3四半期に継続する事業の運転活動による純現金は、第3四半期の12300万ドルに比べて15800万ドルでした。生成されたフリーキャッシュフローは、2023年第3四半期の10700万ドルに比べて14300万ドルでした。
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第3四半期の業績（百万ドル単位）(1)
| エンベント・エレクトリック | |||||||||||
| 2024年2月29日までの3ヶ月間 | |||||||||||
| 2024年9月30日 | 2023年9月30日 | % / ポイント 変更 | |||||||||
| ネット売上高 | $782 | $715 | 9% | ||||||||
| 有機 | 1% | ||||||||||
| 営業利益 | $133 | $126 | 6% | ||||||||
| 報告されたROS | 17.0% | 17.7% | -70 bps | ||||||||
| 調整後の営業収益 | $168 | $162 | 4% | ||||||||
| 調整後のROS | 21.5% | 22.7% | -120 bps | ||||||||
| エンクロージャー（外装） | |||||||||||
| 2024年2月29日までの3ヶ月間 | |||||||||||
| 2024年9月30日 | 2023年9月30日 | % / ポイント 変更 | |||||||||
| ネット売上高 | $477 | $413 | 16% | ||||||||
| 有機 | 1% | ||||||||||
| Adjusted ROS | 21.9% | 21.7% | 20 ベーシスポイント | ||||||||
| Electrical & Fastening Solutions | |||||||||||
| 2024年2月29日までの3ヶ月間 | |||||||||||
| 2024年9月30日 | 2023年9月30日 | % / point 変更 | |||||||||
| ネット売上高 | $305 | $302 | 1% | ||||||||
| 有機 | 1% | ||||||||||
| 調整後のROS | 30.4% | 32.3% | -190ベーシスポイント | ||||||||
(1) 表に示されている数値は四捨五入されています。
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2024年通年および第3四半期のガイダンス
nVentは、Thermal Managementビジネスの売却を除外した連続運営基準にガイダンスを更新しています。Th会社は、2024年の通期報告売上成長率を約13パーセント、有機成長率を約3パーセントと見積もっています。会社は、2024年の通期EPSをガー APベースでは1.99ドルから2.01ドル、調整後のEPSは2.49ドルから2.51ドルの見込みです。
会社は2024年第4四半期の報告済み売上成長率を11兆に見積もっています。有機売上成長率は1〜3パーセントです。会社は2024年第4四半期のGAAPベースのEPSを0.45〜0.47ドル、調整後のEPSを0.58〜0.60ドルと見積もっています。
配当
nVentは、以前2024年9月24日に発表しました。取締役会が株1株当たり$0.19の通常の現金配当を承認し、2024年11月1日に第4四半期に支払われることを承認しました。
決算説明会 コール
nVentの経営陣は、本日午前9時にアナリストと投資家とのコンファレンスコールで会社の第3四半期の業績について議論します。コンファレンスコールのライブオーディオウェブキャストと資料は、会社のウェブサイトの「投資家向け情報」セクション（http://investors.nvent.com）を通じてご利用いただけます。参加するには、午前9時のコールの約10分前に1-833-630-1071または1-412-317-1832にダイヤルしてください。コンファレンスコールのリプレイは入手可能になり次第、1-877-344-7529または1-412-317-0088にダイヤルし、アクセスコード2232766とともに2024年11月15日までアクセスできます。
nVentについて
nVentは、電気接続および保護ソリューションの世界的リーディングプロバイダーです。私たちは革新的な電気ソリューションがより安全なシステムを可能にし、より安全な世界を確保すると信じています。私たちは、世界で最も感度の高い機器、建物、および重要なプロセスの一部を接続および保護する高性能な製品とソリューションを設計、製造、販売、取り付け、およびサービス提供します。私たちは、品質、信頼性、革新性において世界的に認められている業界トップのブランドを通じて、業界をリードするケース、電気接続、ファスニング、および熱管理ソリューションの包括的範囲を提供しています。当社の本社はロンドンにあり、米国の管理オフィスはミネアポリスにあります。100年以上にわたる当社を代表する電気製品ブランドの強固なポートフォリオには、nVent CADDY、ERICO、HOFFMAN、ILSCO、およびSCHROFFが含まれています。
nVent CADDY、ERICO、HOFFMAN、ILSCOおよびSCHROFFは、nVent Services GmbHまたはその関連会社が所有する商標です。
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前向き見通しに関する注意事項
このプレスリリースには、1995年の米国私法訴訟改革法に定義される「将来を見据えた声明」と信じていると考える文書が含まれています。歴史的事実以外のすべての声明は将来を見据えた声明です。制限なく、「ターゲット」、「計画」、「信じる」、「期待する」、「意図する」、「するだろう」、「おそらく」、「かもしれない」、「予想する」、「見積もる」、「プロジェクト」、「予測」、「すべき」、「できるだろう」、「ポジショニングされた」、「戦略」、「将来」、「自信を持っている」などの言葉が含まれるまたは前置される声明は将来を見据えた声明です。このプレスリリース中のすべての予測も将来を見据えた声明です。これらの将来を見据えた声明は将来の業績の保証ではなく、予測される成果と異なる可能性があるリスク、不確実性、仮定および他の一部の要因に影響を受ける可能性があります。グローバル経済全体と当社のビジネスに影響を与える事業条件、熱管理ビジネスの未完了売却を予想される条件とタイムテーブルで完了する能力を含む当社の事業運営または財務結果に対する不利な影響の要因、当社の再編計画の利点を実現する能力、Trachte、ECm Industriesおよびその他の最近の取得物を含む買収の識別、資金調達、完了、統合を成功させる能力、関税の影響を含む、私たちの提供市場での競争および価格競争の圧力。為替レート、金利、商品価格の変動に関連する波乱があります。リーンエンタープライズ、供給管理、キャッシュフローの実践からなる運営の卓越性からの節約を生み出せないこと。材料およびその他のコストインフレを緩和できないこと。労働力、原材料、商品、包装資材、輸送を含む、サプライチェーンインプットの入手可能性、費用インフレに関連するリスクが増大しています。ロシアとウクライナの間のような軍事紛争に関連する、外国企業の運営に関連する増大したリスクと関連する制裁。バックログの提供と将来のプロジェクト作業の獲得に失敗すること。新しい製品の発売と向上の受容に市場の失敗。米国税制優遇を制限する法律および規制の変更の影響。訴訟と政府手続きの結果。長期的な戦略運用目標を達成する能力。これらおよびその他の要因に関する追加情報は、米国証券取引委員会への提出書類に記載されています、当社の10-Kフォームの年次報告書および10-Qフォームの四半期報告書を含みます。すべての将来を見据えた声明はこのプレスリリースの日付のみに有効です。nVentは、このプレスリリースに含まれる情報を更新する義務を負わず、また負わないと推定します。
Investor Contact
Tony Riter
Vice President, Investor Relations
nVent
763.204.7750
Tony.Riter@nVent.com
Media Contact
Stacey Wempen
Director, External Communications
nVent
763.204.7857
Stacey.Wempen@nVent.com
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| nVent Electric plc | |||||||||||||||||
| Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||
| In millions, except per share data | September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| Net sales | $ | 782.0 | $ | 715.0 | $ | 2,253.9 | $ | 1,978.4 | |||||||||
| Cost of goods sold | 470.9 | 425.9 | 1,344.3 | 1,179.7 | |||||||||||||
| Gross profit | 311.1 | 289.1 | 909.6 | 798.7 | |||||||||||||
| % of net sales | 39.8 | % | 40.4 | % | 40.4 | % | 40.4 | % | |||||||||
| Selling, general and administrative | 161.8 | 148.4 | 450.7 | 413.3 | |||||||||||||
| % of net sales | 20.7 | % | 20.8 | % | 20.0 | % | 20.9 | % | |||||||||
| Research and development | 16.1 | 14.5 | 48.9 | 40.2 | |||||||||||||
| % of net sales | 2.1 | % | 2.0 | % | 2.2 | % | 2.0 | % | |||||||||
| Operating income | 133.2 | 126.2 | 410.0 | 345.2 | |||||||||||||
| % of net sales | 17.0 | % | 17.7 | % | 18.2 | % | 17.4 | % | |||||||||
| Net interest expense | 30.4 | 25.5 | 76.6 | 55.0 | |||||||||||||
| Gain on sale of investment | — | — | — | (10.2) | |||||||||||||
| Other expense | 1.2 | 1.3 | 3.3 | 3.6 | |||||||||||||
Income before income taxes | 101.6 | 99.4 | 330.1 | 296.8 | |||||||||||||
| Provision for income taxes | 22.7 | 17.5 | 72.8 | 49.5 | |||||||||||||
| Effective tax rate | 22.3 | % | 17.6 | % | 22.1 | % | 16.7 | % | |||||||||
| Net income from continuing operations | 78.9 | 81.9 | 257.3 | 247.3 | |||||||||||||
| Income from discontinued operations, net of tax | 26.1 | 23.6 | 63.8 | 64.9 | |||||||||||||
| Net income | $ | 105.0 | $ | 105.5 | $ | 321.1 | $ | 312.2 | |||||||||
| Earnings per ordinary share | |||||||||||||||||
| Basic | |||||||||||||||||
| Continuing operations | $ | 0.47 | $ | 0.49 | $ | 1.55 | $ | 1.50 | |||||||||
| Discontinued operations | 0.16 | 0.15 | 0.39 | 0.39 | |||||||||||||
| Basic earnings per ordinary share | $ | 0.63 | $ | 0.64 | $ | 1.94 | $ | 1.89 | |||||||||
| Diluted | |||||||||||||||||
| Continuing operations | $ | 0.47 | $ | 0.49 | $ | 1.53 | $ | 1.47 | |||||||||
| Discontinued operations | 0.15 | 0.14 | 0.38 | 0.39 | |||||||||||||
| Diluted earnings per ordinary share | $ | 0.62 | $ | 0.63 | $ | 1.91 | $ | 1.86 | |||||||||
| Weighted average ordinary shares outstanding | |||||||||||||||||
| Basic | 165.6 | 165.8 | 165.7 | 165.6 | |||||||||||||
| Diluted | 168.1 | 168.6 | 168.5 | 168.2 | |||||||||||||
| Cash dividends paid per ordinary share | $ | 0.19 | $ | 0.175 | $ | 0.57 | $ | 0.525 | |||||||||
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| nVent Electric plc | ||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| In millions | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 137.1 | $ | 179.6 | ||||
| Accounts and notes receivable, net | 526.0 | 470.2 | ||||||
| Inventories | 366.2 | 360.2 | ||||||
| Other current assets | 132.9 | 72.5 | ||||||
| Current assets held for sale | 256.5 | 253.6 | ||||||
| Total current assets | 1,418.7 | 1,336.1 | ||||||
| Property, plant and equipment, net | 335.8 | 319.9 | ||||||
| Other assets | ||||||||
| Goodwill | 2,232.0 | 1,858.1 | ||||||
| Intangibles, net | 1,618.3 | 1,350.5 | ||||||
| Other non-current assets | 329.9 | 302.6 | ||||||
| Non-current assets held for sale | 983.3 | 994.5 | ||||||
| Total other assets | 5,163.5 | 4,505.7 | ||||||
| Total assets | $ | 6,918.0 | $ | 6,161.7 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt and short-term borrowings | $ | 37.5 | $ | 31.9 | ||||
| Accounts payable | 243.4 | 239.8 | ||||||
| Employee compensation and benefits | 95.3 | 102.7 | ||||||
| Other current liabilities | 273.5 | 244.5 | ||||||
| Current liabilities held for sale | 126.5 | 114.7 | ||||||
| Total current liabilities | 776.2 | 733.6 | ||||||
| Other liabilities | ||||||||
| Long-term debt | 2,220.7 | 1,748.8 | ||||||
| Pension and other post-retirement compensation and benefits | 140.1 | 140.4 | ||||||
| Deferred tax liabilities | 264.5 | 190.3 | ||||||
| Other non-current liabilities | 184.8 | 158.8 | ||||||
| Non-current liabilities held for sale | 48.0 | 47.7 | ||||||
| Total liabilities | 3,634.3 | 3,019.6 | ||||||
| Equity | 3,283.7 | 3,142.1 | ||||||
| Total liabilities and equity | $ | 6,918.0 | $ | 6,161.7 | ||||
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| nVent Electric plc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| Nine months ended | ||||||||
| In millions | September 30, 2024 | September 30, 2023 | ||||||
| Operating activities | ||||||||
| Net income | $ | 321.1 | $ | 312.2 | ||||
| Less: Income from discontinued operations, net of tax | 63.8 | 64.9 | ||||||
| Net income from continuing operations | 257.3 | 247.3 | ||||||
| Adjustments to reconcile net income from continuing operations to net cash provided by (used for) operating activities | ||||||||
| Depreciation | 37.8 | 30.2 | ||||||
| Amortization | 66.7 | 49.2 | ||||||
| Deferred income taxes | 0.3 | (4.6) | ||||||
| Share-based compensation | 20.1 | 16.3 | ||||||
| Gain on sale of investment | — | (10.2) | ||||||
| Amortization of bridge financing debt issuance costs | 2.2 | 3.6 | ||||||
| Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
| Accounts and notes receivable | (10.3) | (57.4) | ||||||
| Inventories | 0.3 | 8.5 | ||||||
| Other current assets | (28.1) | (22.3) | ||||||
| Accounts payable | (11.7) | (10.8) | ||||||
| Employee compensation and benefits | (13.1) | 2.0 | ||||||
| Other current liabilities | 2.6 | (18.4) | ||||||
| Other non-current assets and liabilities | — | (0.9) | ||||||
| Net cash provided by (used for) operating activities of continuing operations | 324.1 | 232.5 | ||||||
| Net cash provided by (used for) operating activities of discontinued operations | 94.4 | 59.1 | ||||||
| Net cash provided by (used for) operating activities | 418.5 | 291.6 | ||||||
| Investing activities | ||||||||
| Capital expenditures | (47.5) | (44.8) | ||||||
| Proceeds from sale of property and equipment | 0.5 | — | ||||||
| Proceeds from sale of investment | — | 14.1 | ||||||
| Settlement of net investment hedge | — | 3.1 | ||||||
| Acquisitions, net of cash acquired | (677.7) | (1,119.7) | ||||||
| Net cash provided by (used for) investing activities of continuing operations | (724.7) | (1,147.3) | ||||||
| Net cash provided by (used for) investing activities of discontinued operations | (5.6) | 3.2 | ||||||
| Net cash provided by (used for) investing activities | (730.3) | (1,144.1) | ||||||
| Financing activities | ||||||||
| Proceeds from long-term debt | 500.0 | 800.0 | ||||||
| Repayments of long-term debt | (22.5) | (20.0) | ||||||
| Settlement of cash flow hedge | — | 4.5 | ||||||
| Debt issuance costs | (3.9) | (11.2) | ||||||
| Dividends paid | (95.3) | (87.6) | ||||||
| Shares issued to employees, net of shares withheld | (0.2) | 1.6 | ||||||
| Repurchases of ordinary shares | (100.0) | (15.2) | ||||||
| Net cash provided by (used for) financing activities | 278.1 | 672.1 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (4.0) | (3.8) | ||||||
| Change in cash and cash equivalents | (37.7) | (184.2) | ||||||
| Cash and cash equivalents, beginning of period | 179.6 | 290.0 | ||||||
| Cash and cash equivalents within assets held for sale, beginning of period | 5.5 | 7.5 | ||||||
| Less: Cash and cash equivalents within assets held for sale, end of period | 10.3 | 5.4 | ||||||
| Cash and cash equivalents, end of period | $ | 137.1 | $ | 107.9 | ||||
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| nVent Electric plc | ||||||||||||||
| Supplemental Financial Information by Reportable Segment (Unaudited) | ||||||||||||||
| 2024 | ||||||||||||||
| In millions | First Quarter | Second Quarter | Third Quarter | Nine Months | ||||||||||
| Net sales | ||||||||||||||
| Enclosures | $ | 439.9 | $ | 440.8 | $ | 477.1 | $ | 1,357.8 | ||||||
| Electrical & Fastening Solutions | 292.2 | 299.0 | 304.9 | 896.1 | ||||||||||
| Total | $ | 732.1 | $ | 739.8 | $ | 782.0 | $ | 2,253.9 | ||||||
| Reportable segment income | ||||||||||||||
| Enclosures | $ | 94.8 | $ | 103.8 | $ | 104.4 | $ | 303.0 | ||||||
| Electrical & Fastening Solutions | 85.2 | 92.5 | 92.6 | 270.3 | ||||||||||
| Reportable segment income | 180.0 | 196.3 | 197.0 | 573.3 | ||||||||||
| Enterprise and other | (24.1) | (26.9) | (28.6) | (79.6) | ||||||||||
| Adjusted operating income | $ | 155.9 | $ | 169.4 | $ | 168.4 | $ | 493.7 | ||||||
| Return on sales | ||||||||||||||
| Enclosures | 21.6 | % | 23.5 | % | 21.9 | % | 22.3 | % | ||||||
| Electrical & Fastening Solutions | 29.2 | % | 30.9 | % | 30.4 | % | 30.2 | % | ||||||
| Adjusted return on sales | 21.3 | % | 22.9 | % | 21.5 | % | 21.9 | % | ||||||
| nVent Electric plc | ||||||||||||||
| Supplemental Financial Information by Reportable Segment (Unaudited) | ||||||||||||||
| 2023 | ||||||||||||||
| In millions | First Quarter | Second Quarter | Third Quarter | Nine Months | ||||||||||
| Net sales | ||||||||||||||
| Enclosures | $ | 391.0 | $ | 400.0 | $ | 412.7 | $ | 1,203.7 | ||||||
| Electrical & Fastening Solutions | 205.7 | 266.7 | 302.3 | 774.7 | ||||||||||
| Total | $ | 596.7 | $ | 666.7 | $ | 715.0 | $ | 1,978.4 | ||||||
| Reportable segment income | ||||||||||||||
| Enclosures | $ | 82.5 | $ | 90.0 | $ | 89.4 | $ | 261.9 | ||||||
| Electrical & Fastening Solutions | 61.3 | 86.5 | 97.6 | 245.4 | ||||||||||
| Reportable segment income | 143.8 | 176.5 | 187.0 | 507.3 | ||||||||||
| Enterprise and other | (30.1) | (27.6) | (24.7) | (82.4) | ||||||||||
| Adjusted operating income | $ | 113.7 | $ | 148.9 | $ | 162.3 | $ | 424.9 | ||||||
| Return on sales | ||||||||||||||
| Enclosures | 21.1 | % | 22.5 | % | 21.7 | % | 21.8 | % | ||||||
| Electrical & Fastening Solutions | 29.8 | % | 32.4 | % | 32.3 | % | 31.7 | % | ||||||
| Adjusted return on sales | 19.1 | % | 22.3 | % | 22.7 | % | 21.5 | % | ||||||
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NON-GAAP FINANCIAL MEASURES
This press release refers to certain non-GAAP financial measures (organic sales, adjusted operating income, adjusted return on sales, adjusted net income, adjusted diluted earnings per share and free cash flow) and a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in the Company's financial statements prepared in accordance with generally accepted accounting principles. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
As a result of the previously announced agreement to sell the Thermal Management business, the Company is reporting the results of that business as discontinued operations and has reclassified all prior periods presented. "Total" results referenced herein reflect continuing operations combined with discontinued operations. Management believes that these non-GAAP "total" measures will be useful to investors to compare historically provided guidance to results from the quarter.
The 2024 and 2023 adjusted operating income, adjusted return on sales, adjusted net income and adjusted diluted earnings per share eliminate, where applicable:
•Expense related to certain targeted restructuring activities.
•Expense related to certain acquisition and integration activities associated with our business acquisitions, and transaction costs associated with our business divestiture.
•Amortization of all intangible assets associated with our business acquisitions, including inventory step-up amortization, associated with those acquisitions. The Company excludes these non-cash expenses because the Company believes it (i) enhances management’s and investors’ ability to analyze underlying business performance, (ii) facilitates comparisons of our financial results over multiple periods, and (iii) provides more relevant comparisons of the Company's results with the results of other companies as the amortization expense, inventory step-up amortization, and acquisition related expenses may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. Although the Company excludes amortization of these acquired intangible assets and inventory step-up from its non-GAAP results, the Company believe that it is important for investors to understand that revenue generated, in part, from such intangibles is included within revenue in determining adjusted results.
•Gain on sale of investments.
•Pension and other postretirement mark-to-market loss (gain). The Company recognizes changes in the fair value of plan assets and net actuarial gains or losses for pension and other post-retirement benefits as a mark-to-market adjustment. Net actuarial gains and losses occur when the actual experience differs from any of the various assumptions used to value the Company's pension and other post-retirement plans or when assumptions change. This accounting method also results in the potential for volatile and difficult to forecast mark-to-market adjustments. The Company believes that the exclusion of pension and other postretirement mark-to-market loss (gain) better reflects the ongoing costs of providing pension and postretirement benefits to its employees.
•Amortization of bridge financing debt issuance costs.
•Income tax effects of the above adjustments, which are calculated using the Company's estimated non-GAAP tax rate. This non-GAAP tax approach eliminates the effects of period specific items, which can vary in size and frequency and do not necessarily reflect our long-term operations. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the Company's geographic earnings mix including due to acquisition activity or other changes in our strategy or business operations.
The Company uses the term "organic sales" to refer to GAAP net sales excluding 1) the impact of currency translation and 2) the impact of revenue from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to divested product lines not considered discontinued operations ("acquisition sales"). The portion of GAAP net sales attributable to currency translation is calculated as the difference between (a) the period-to-period change in net sales (excluding acquisition sales) and (b) the period-to-period change in net sales (excluding acquisition sales) after applying prior period foreign exchange rates to the current year period. The Company uses the term "organic sales growth" to refer to the measure of comparing current period organic net sales with the corresponding period of the prior year.
Management utilizes these adjusted financial measures to assess the run-rate of its continuing operations against those of prior periods without the distortion of these factors that the Company does not consider components of our core operating performance. The Company believes that these non-GAAP financial measures will be useful to investors as well to assess the continuing strength of the Company's underlying operations. In addition, adjusted diluted earnings per share is used as a criterion to measure and pay long-term incentive compensation and adjusted operating income is used as a criterion to measure and pay annual incentive compensation.
The Company uses free cash flow to assess its cash flow performance. The Company believes free cash flow is an important measure of liquidity because it provides the Company and its investors useful information regarding the Company's ability to generate cash without reliance on external financing. Management uses free cash flow to evaluate the resources available to pay dividends, make acquisitions, repay debt, repurchase shares and make investments in the business. In addition, free cash flow is used as criterion to measure and pay annual incentive compensation.
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| nVent Electric plc | ||||||||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for continuing operations for the year ending December 31, 2024 | ||||||||||||||||||||
| excluding the effect of adjustments (Unaudited) | ||||||||||||||||||||
| Actual | Forecast (1) | |||||||||||||||||||
| In millions, except per share data | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
| Net sales | $ | 732.1 | $ | 739.8 | $ | 782.0 | ||||||||||||||
| Operating income | 131.9 | 144.9 | 133.2 | |||||||||||||||||
| Return on sales | 18.0 | % | 19.6 | % | 17.0 | % | ||||||||||||||
| Adjustments: | ||||||||||||||||||||
| Restructuring and other | $ | 1.1 | $ | 2.0 | $ | 2.8 | ||||||||||||||
| Acquisition transaction and integration costs | 2.5 | 3.0 | 5.6 | |||||||||||||||||
| Intangible amortization | 20.4 | 19.5 | 26.8 | |||||||||||||||||
| Adjusted operating income (non-GAAP measure) | $ | 155.9 | $ | 169.4 | $ | 168.4 | ||||||||||||||
| Adjusted return on sales (non-GAAP measure) | 21.3 | % | 22.9 | % | 21.5 | % | ||||||||||||||
| Net income from continuing operations | $ | 85.2 | $ | 93.2 | $ | 78.9 | $ | 77 | $ | 334 | ||||||||||
| Adjustments to operating income | 24.0 | 24.5 | 35.2 | 28 | 112 | |||||||||||||||
| Amortization of bridge financing debt issuance costs | — | 2.2 | — | — | 2 | |||||||||||||||
| Income tax adjustments | (7.2) | (6.9) | (8.8) | (6) | (29) | |||||||||||||||
| Adjusted net income from continuing operations (non-GAAP measure) | $ | 102.0 | $ | 113.0 | $ | 105.3 | $ | 99 | $ | 419 | ||||||||||
| Earnings per ordinary share - diluted | ||||||||||||||||||||
| Diluted earnings per ordinary share from continuing operations | $ | 0.51 | $ | 0.55 | $ | 0.47 | $ 0.45 - 0.47 | $ 1.99 - 2.01 | ||||||||||||
| Adjustments | 0.10 | 0.12 | 0.16 | 0.13 | 0.50 | |||||||||||||||
| Adjusted diluted earnings per ordinary share from continuing operations (non-GAAP measure) | $ | 0.61 | $ | 0.67 | $ | 0.63 | $ 0.58 - 0.60 | $ 2.49 - 2.51 | ||||||||||||
(1) Forecast information represents an approximation | ||||||||||||||||||||
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| nVent Electric plc | |||||||||||
Reconciliation of GAAP to non-GAAP financial measures for discontinued operations for the year ending December 31, 2024 | |||||||||||
| excluding the effect of adjustments (Unaudited) | |||||||||||
| Actual | |||||||||||
| In millions, except per share data | First Quarter | Second Quarter | Third Quarter | ||||||||
| Net sales | $ | 142.5 | $ | 140.5 | $ | 157.1 | |||||
| Operating income | 27.3 | 22.9 | 31.2 | ||||||||
| Adjustments: | |||||||||||
| Restructuring and other | $ | 0.2 | $ | 0.8 | $ | 0.1 | |||||
| Transaction costs | 4.1 | 4.4 | 12.7 | ||||||||
| Intangible amortization | 4.8 | 4.9 | 1.6 | ||||||||
| Adjusted operating income (non-GAAP measure) | $ | 36.4 | $ | 33.0 | $ | 45.6 | |||||
| Net income from discontinued operations | $ | 19.9 | $ | 17.8 | $ | 26.1 | |||||
| Adjustments to operating income | 9.1 | 10.1 | 14.4 | ||||||||
| Income tax adjustments | (0.9) | (2.1) | (5.3) | ||||||||
| Adjusted net income from discontinued operations (non-GAAP measure) | $ | 28.1 | $ | 25.8 | $ | 35.2 | |||||
| Earnings per ordinary share - diluted | |||||||||||
| Diluted earnings per ordinary share from discontinued operations | $ | 0.11 | $ | 0.11 | $ | 0.15 | |||||
| Adjustments | 0.05 | 0.04 | 0.06 | ||||||||
| Adjusted diluted earnings per ordinary share from discontinued operations (non-GAAP measure) | $ | 0.16 | $ | 0.15 | $ | 0.21 | |||||
| nVent Electric plc | |||||||||||||||||
| Reconciliation of Total Net Sales for the year ended December 31, 2024 | |||||||||||||||||
| In millions | First Quarter | Second Quarter | Third Quarter | ||||||||||||||
| Net sales from continuing operations | $ | 732.1 | $ | 739.8 | $ | 782.0 | |||||||||||
| Net sales from discontinued operations | 142.5 | 140.5 | 157.1 | ||||||||||||||
| Total net sales (non-GAAP measure) | $ | 874.6 | $ | 880.3 | $ | 939.1 | |||||||||||
| nVent Electric plc | |||||||||||||||||
| Reconciliation of Total Adjusted EPS for the year ended December 31, 2024 | |||||||||||||||||
| First Quarter | Second Quarter | Third Quarter | |||||||||||||||
| Adjusted diluted earnings per ordinary share from continuing operations | $ | 0.61 | $ | 0.67 | $ | 0.63 | |||||||||||
| Adjusted diluted earnings per ordinary share from discontinued operations | 0.16 | 0.15 | 0.21 | ||||||||||||||
| Total adjusted diluted earnings per ordinary share (non-GAAP measure) | $ | 0.77 | $ | 0.82 | $ | 0.84 | |||||||||||
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| nVent Electric plc | |||||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for continuing operations for the year ended December 31, 2023 | |||||||||||||||||
excluding the effect of 2023 adjustments (Unaudited) | |||||||||||||||||
| Actual | |||||||||||||||||
| In millions, except per share data | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||
| Net sales | $ | 596.7 | $ | 666.7 | $ | 715.0 | $ | 690.5 | $ | 2,668.9 | |||||||
| Operating income | 97.7 | 121.3 | 126.2 | 117.5 | 462.7 | ||||||||||||
| Return on sales | 16.4 | % | 18.2 | % | 17.7 | % | 17.0 | % | 17.3 | % | |||||||
| Adjustments: | |||||||||||||||||
| Restructuring and other | 1.1 | 0.7 | 0.8 | 1.3 | 3.9 | ||||||||||||
| Acquisition transaction and integration costs | 2.3 | 4.9 | 3.0 | 2.6 | 12.8 | ||||||||||||
| Intangible amortization | 12.6 | 16.1 | 20.5 | 20.3 | 69.5 | ||||||||||||
| Inventory step-up amortization | — | 5.9 | 11.8 | — | 17.7 | ||||||||||||
| Adjusted operating income (non-GAAP measure) | $ | 113.7 | $ | 148.9 | $ | 162.3 | $ | 141.7 | $ | 566.6 | |||||||
| Adjusted return on sales (non-GAAP measure) | 19.1 | % | 22.3 | % | 22.7 | % | 20.5 | % | 21.2 | % | |||||||
| Net income from continuing operations | $ | 73.2 | $ | 92.2 | $ | 81.9 | $ | 212.4 | $ | 459.7 | |||||||
| Adjustments to operating income | 16.0 | 27.6 | 36.1 | 24.2 | 103.9 | ||||||||||||
| Pension and post-retirement mark-to-market loss | — | — | — | 13.4 | 13.4 | ||||||||||||
| Gain on sale of investment | — | (10.2) | — | (0.1) | (10.3) | ||||||||||||
| Amortization of bridge financing debt issuance costs | — | 3.6 | — | — | 3.6 | ||||||||||||
Income tax adjustments (1) | (3.9) | (10.1) | (8.9) | (156.5) | (179.4) | ||||||||||||
| Adjusted net income from continuing operations (non-GAAP measure) | $ | 85.3 | $ | 103.1 | $ | 109.1 | $ | 93.4 | $ | 390.9 | |||||||
| Continuing earnings per ordinary share - diluted | |||||||||||||||||
| Diluted earnings per ordinary share from continuing operations | $ | 0.44 | $ | 0.55 | $ | 0.49 | $ | 1.26 | $ | 2.73 | |||||||
| Adjustments | 0.07 | 0.06 | 0.16 | (0.71) | (0.41) | ||||||||||||
| Adjusted diluted earnings per ordinary share from continuing operations (non-GAAP measure) | $ | 0.51 | $ | 0.61 | $ | 0.65 | $ | 0.55 | $ | 2.32 | |||||||
(1) Income tax adjustments in the fourth quarter include $154.2 million resulting from favorable discrete items, primarily related to the initial recognition of tax basis in intangible assets in foreign jurisdictions and the related valuation allowance, and the tax benefit of statutory losses at a foreign holding company.
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| nVent Electric plc | |||||||||||||||||
| Reconciliation of GAAP to non-GAAP financial measures for discontinued operations for the year ending December 31, 2023 | |||||||||||||||||
| 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 | $ | 143.9 | $ | 136.3 | $ | 143.8 | $ | 170.7 | $ | 594.7 | |||||||
| Operating income | 26.4 | 25.4 | 30.0 | 42.9 | 124.7 | ||||||||||||
| Adjustments: | |||||||||||||||||
| Restructuring and other | $ | 2.9 | $ | 1.8 | $ | 4.6 | $ | (0.4) | $ | 8.9 | |||||||
| Transaction costs | — | — | — | 0.2 | 0.2 | ||||||||||||
| Intangible amortization | 5.0 | 5.2 | 5.1 | 4.9 | 20.2 | ||||||||||||
| Adjusted operating income (non-GAAP measure) | $ | 34.3 | $ | 32.4 | $ | 39.7 | $ | 47.6 | $ | 154.0 | |||||||
| Net income from discontinued operations | $ | 20.6 | $ | 20.7 | $ | 23.6 | $ | 42.5 | $ | 107.4 | |||||||
| Adjustments to operating income | 7.9 | 7.0 | 9.7 | 4.7 | 29.3 | ||||||||||||
| Pension and other post-retirement mark-to-market loss | — | — | — | 0.5 | 0.5 | ||||||||||||
| Income tax adjustments | (0.5) | (1.9) | (1.4) | (9.3) | (13.2) | ||||||||||||
| Adjusted net income from discontinued operations (non-GAAP measure) | $ | 28.0 | $ | 25.8 | $ | 31.9 | $ | 38.4 | $ | 124.0 | |||||||
| Earnings per ordinary share - diluted | |||||||||||||||||
| Diluted earnings per ordinary share from discontinued operations | $ | 0.12 | $ | 0.12 | $ | 0.14 | $ | 0.25 | $ | 0.64 | |||||||
| Adjustments | 0.04 | 0.04 | 0.05 | (0.02) | 0.10 | ||||||||||||
| Adjusted diluted earnings per ordinary share from discontinued operations (non-GAAP measure) | $ | 0.16 | $ | 0.16 | $ | 0.19 | $ | 0.23 | $ | 0.74 | |||||||
| nVent Electric plc | |||||||||||||||||||||||
| Reconciliation of Total Net Sales for the year ended December 31, 2023 | |||||||||||||||||||||||
| In millions | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||||
| Net sales from continuing operations | $ | 596.7 | $ | 666.7 | $ | 715.0 | $ | 690.5 | $ | 2,668.9 | |||||||||||||
| Net sales from discontinued operations | 143.9 | 136.3 | 143.8 | 170.7 | 594.7 | ||||||||||||||||||
| Total net sales (non-GAAP measure) | $ | 740.6 | $ | 803.0 | $ | 858.8 | $ | 861.2 | $ | 3,263.6 | |||||||||||||
| nVent Electric plc | |||||||||||||||||||||||
| Reconciliation of Total Adjusted EPS for the year ended December 31, 2023 | |||||||||||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||||||
| Adjusted diluted earnings per ordinary share from continuing operations | $ | 0.51 | $ | 0.61 | $ | 0.65 | $ | 0.55 | $ | 2.32 | |||||||||||||
| Adjusted diluted earnings per ordinary share from discontinued operations | 0.16 | 0.16 | 0.19 | 0.23 | 0.74 | ||||||||||||||||||
| Total adjusted diluted earnings per ordinary share (non-GAAP measure) | $ | 0.67 | $ | 0.77 | $ | 0.84 | $ | 0.78 | $ | 3.06 | |||||||||||||
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| nVent Electric plc | ||||||||||||||
| Reconciliation of Net Sales Growth (GAAP measure) to Organic Net Sales Growth (non-GAAP measure) by Segment | ||||||||||||||
for the quarter ended September 30, 2024 (Unaudited) | ||||||||||||||
Q3 Net Sales Growth | ||||||||||||||
| Organic | Currency | Acq./Div. | Total | |||||||||||
| Enclosures | 1.2 | % | 0.2 | % | 14.2 | % | 15.6 | % | ||||||
| Electrical & Fastening Solutions | 0.9 | % | — | % | — | % | 0.9 | % | ||||||
| nVent Continuing Operations | 1.0 | % | 0.2 | % | 8.2 | % | 9.4 | % | ||||||
| Thermal Management (Discontinued Operations) | 8.9 | % | 0.3 | % | — | % | 9.2 | % | ||||||
| Total nVent (non-GAAP Measure) | 2.4 | % | 0.2 | % | 6.8 | % | 9.4 | % | ||||||
| Reconciliation of Net Sales Growth (GAAP measure) to Organic Net Sales Growth (non-GAAP measure) | |||||||||||||||||||||||||||||
| for continuing operations for the quarter and year ending December 31, 2024 (Unaudited) | |||||||||||||||||||||||||||||
Forecast (1) | |||||||||||||||||||||||||||||
| Q4 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
| Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
| nVent | 1 - 3% | 1% | 9% | 11 - 13% | 3% | —% | 10% | 13% | |||||||||||||||||||||
(1) Forecast information represents an approximation | |||||||||||||||||||||||||||||
| nVent Electric plc | |||||||||||||||||
Reconciliation of cash from operating activities to free cash flow (Unaudited) | |||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||
| In millions | September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| Net cash provided by (used for) operating activities of continuing operations | $ | 158.4 | $ | 123.0 | $ | 324.1 | $ | 232.5 | |||||||||
| Capital expenditures | (15.7) | (15.6) | (47.5) | (44.8) | |||||||||||||
| Proceeds from sale of property and equipment | 0.2 | — | 0.5 | — | |||||||||||||
| Free cash flow (non-GAAP measure) | 142.9 | 107.4 | 277.1 | 187.7 | |||||||||||||
| Net cash provided by (used for) operating activities of discontinued operations | 39.3 | 22.0 | 94.4 | 59.1 | |||||||||||||
| Capital expenditures of discontinued operations | (2.8) | (1.0) | (5.6) | (4.1) | |||||||||||||
| Proceeds from sale of property and equipment of discontinued operations | — | 7.1 | — | 7.3 | |||||||||||||
| Total free cash flow (non-GAAP measure) | $ | 179.4 | $ | 135.5 | $ | 365.9 | $ | 250.0 | |||||||||