Allegion Reports First-Quarter 2018 Financial Results
- First-quarter 2018 net earnings per share (EPS) of $0.75, compared
with 2017 EPS of $0.71; Adjusted 2018 EPS of $0.80, up 9.6 percent
compared with 2017 adjusted EPS of $0.73
- First-quarter 2018 revenue of $613.1 million, up 11.7 percent
compared to 2017, up 3.3 percent on an organic basis
- First-quarter 2018 operating margin of 16.1 percent, compared with
2017 operating margin of 18.1 percent; Adjusted operating margin of 17
percent, declined 150 basis points compared with 2017 adjusted
operating margin of 18.5 percent
- Affirming prior outlook for 2018 full-year revenue and full-year
EPS; Full-year 2018 reported revenue growth of 10.5 to 11.5 percent
and organic revenue growth of 4 to 5 percent; Full-year 2018 EPS
outlook of $4.20 to $4.35 and $4.35 to $4.50 per share on an adjusted
basis
DUBLIN--(BUSINESS WIRE)--
Allegion
plc (NYSE: ALLE), a leading global provider of security products and
solutions, today reported first-quarter 2018 net revenues of $613.1
million and net earnings of $72.2 million, or $0.75 per share. Excluding
charges related to restructuring and acquisitions, adjusted net earnings
were $76.6 million, or $0.80 per share, up 9.6 percent when compared
with first-quarter 2017 adjusted EPS of $0.73.
First-quarter net revenues increased 11.7 percent, when compared to the
prior year period (up 3.3 percent on an organic basis). Reported
revenues reflect modest organic growth as well as benefits from
acquisitions and foreign currency.
The Americas segment revenue increased 7.7 percent (up 2.7 percent on an
organic basis). The revenue growth was driven by favorable price and
high-teens growth in electronics, which offset the impact of order
choppiness. The newly acquired TGP and AD Systems businesses contributed
4.7 percent to the overall growth.
The EMEIA segment revenues were up 26.9 percent (up 5.9 percent on an
organic basis), reflecting solid volume, favorable price, favorable
foreign currency and contributions from the QMI acquisition. The organic
growth was driven by strong volume across most products and geographies
along with solid price realization.
“First-quarter revenues increased in all three regions and reflected
modest organic growth,” said David D. Petratis, Allegion chairman,
president and CEO. “European markets continued to rebound and delivered
solid organic growth for the region, while Americas’ end-market
fundamentals remained strong, including electronics growth, which grew
high-teens.”
The Asia-Pacific segment revenues increased 3.9 percent (up 0.2 percent
on an organic basis). Favorable currency drove the revenue growth in the
quarter.
First-quarter 2018 operating income was $98.7 million, a decrease of
$0.8 million or 0.8 percent compared to 2017. Adjusted operating income
in first-quarter 2018 was $104.2 million, representing an increase of
$2.8 million or 2.8 percent compared to 2017.
First-quarter 2018 operating margin was 16.1 percent, compared with 18.1
percent in 2017. The adjusted operating margin in first-quarter 2018 was
17 percent, compared with 18.5 percent in 2017. The 150-basis-point
decline in adjusted operating margin was driven by increased
investments, dilution related to acquisitions, inflation and unfavorable
mix partially offset by favorable price, productivity and volume.
“We delivered double-digit, top-line revenue growth in the quarter,
while accelerated inflationary pressures challenged operating margins.
Pricing in the quarter was solid, and even with the margin pressures, we
delivered a nearly 10-percent increase in EPS. We remain focused on
executing our strategy to drive increased shareholder returns and are
well positioned to achieve the full-year commitments put forth in
Allegion’s prior earnings call,” Petratis added.
Additional Items
Interest expense for first-quarter 2018 was $12.9 million, down from the
$15.9 million for first-quarter 2017. The decrease is driven by the
refinancing of the company’s debt completed in 2017.
Other income net for first-quarter 2018 was $0.4 million. This compares
to other expense net for first-quarter 2017 of $1.3 million.
The company’s effective tax rate for first-quarter 2018 was 16 percent,
compared with 16.5 percent in 2017. The company’s adjusted effective tax
rate for first-quarter 2018 was 16.2 percent, compared with 16.9 percent
in 2017. The decrease in the adjusted effective tax rate is primarily
due to decreased tax rates related to U.S. tax reform.
Cash Flow and Liquidity
Year-to-date 2018 available cash flow was negative $18.8 million, a
$29.9 million improvement versus the prior year. The
year-over-year improvement in available cash flow is primarily due to
the $50 million discretionary pension funding payment in the prior year
along with higher earnings. Those increases were partially offset by
increases in cash taxes and working capital.
The company ended first-quarter 2018 with cash of $151.8 million and
total debt of $1,509.4 million.
Share Repurchase
During the first quarter of 2018, the company repurchased approximately
0.4 million shares for approximately $30 million related to the $500
million share repurchase authorization approved by the company's board
of directors in February 2017.
2018 Outlook
The company affirms full-year 2018 revenue outlook reflecting total
growth of 10.5 to 11.5 percent and organic growth of 4 to 5 percent
compared to 2017.
The company affirms full-year 2018 reported EPS with a range of $4.20 to
$4.35, or $4.35 to $4.50 per share on an adjusted basis. Adjustments to
2018 EPS include estimated impacts for restructuring and acquisition
activities. The outlook assumes a full-year adjusted effective tax rate
of approximately 16 percent, as well as an average diluted share count
for the full year of approximately 96 million shares.
The company continues to target full-year available cash flow of
approximately $380 to $400 million.
Conference Call Information
On Thursday, April 26, 2018, David D. Petratis, chairman, president and
CEO, and Patrick Shannon, senior vice president and chief financial
officer, will conduct a conference call for analysts and investors,
beginning at 8 a.m. ET, to review the company's results.
A real-time, listen-only webcast of the conference call will be
broadcast live online. Individuals wishing to listen may access the call
through the company's website at http://investor.allegion.com.
About Allegion™
Allegion (NYSE: ALLE) is a global pioneer in safety and security, with
leading brands like CISA®, Interflex®, LCN®,
Schlage®, SimonsVoss® and Von Duprin®. Focusing
on security around the door and adjacent areas, Allegion produces a
range of solutions for homes, businesses, schools and other
institutions. Allegion is a $2.4 billion company, with products sold in
approximately 130 countries.
For more, visit www.allegion.com.
Adoption of New Accounting Standard
During the first quarter, the company adopted ASU 2017-07, “Compensation
– Retirement Benefits (Topic 715): Improving the Presentation of Net
Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU
2017-07 requires that an employer report the service cost component in
the same line item or items as other compensation costs arising from
services rendered by the pertinent employees during the period. The
other components of net benefit cost are required to be presented in the
statement of comprehensive income separately from the service cost
component and outside of a subtotal of operating income. The company has
applied ASU 2017-07 retrospectively for the presentation of the service
cost component and the other components of net periodic pension cost and
net periodic postretirement benefit cost and prospectively for the
capitalization of the service cost component of net periodic pension
cost and net periodic postretirement benefit in assets. As a result of
adopting the new accounting standard, there is a minor restatement
within the prior year P&L with no impact revenue, net earnings or
earnings per share. Schedule 6, accompanying this press release,
summarizes the impact to prior periods.
Non-GAAP Measures
This news release also includes adjusted 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.
Further information about the adjusted non-GAAP financial tables is
attached to this news release.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the company's 2018 financial performance,
the company’s growth strategy, the company’s capital allocation
strategy, the company’s tax planning strategies and the performance of
the markets in which the company operates. These forward-looking
statements are based on the company's current available information and
its current assumptions, expectations and projections about future
events. They are subject to future events, risks and
uncertainties - many of which are beyond the company’s control - as well
as potentially inaccurate assumptions, that could cause actual results
to differ materially from those in the forward-looking
statements. Further information on these factors and other risks that
may affect the company's business is included in filings it makes with
the Securities and Exchange Commission from time to time, including its
Form 10-K for the year ended Dec. 31, 2017, Form 10-Q for the quarter
ended March 31, 2018, and in its other SEC filings. The company assumes
no obligations to update these forward-looking statements.
|
| | |
| ALLEGION PLC |
| Condensed and Consolidated Income Statements |
| (in millions, except per share data) |
|
|
UNAUDITED |
| | |
|
| | Three Months Ended March 31, |
| | 2018 |
| 2017 |
| | | | |
|
|
Net revenues
| |
$
|
613.1
| | |
$
|
548.8
| |
|
Cost of goods sold
| |
355.3
|
| |
307.6
|
|
|
Gross profit
| |
257.8
| | |
241.2
| |
| | | | |
|
|
Selling and administrative expenses
| |
159.1
|
| |
141.7
|
|
|
Operating income
| |
98.7
| | |
99.5
| |
| | | | |
|
|
Interest expense
| |
12.9
| | |
15.9
| |
|
Other (income) expense, net
| |
(0.4
|
)
|
|
1.3
|
|
|
Earnings before income taxes
| |
86.2
| | |
82.3
| |
| | | | |
|
|
Provision for income taxes
| |
13.8
|
|
|
13.6
|
|
| | | | |
|
|
Net earnings
| |
72.4
| | |
68.7
| |
| | | | |
|
|
Less: Net earnings attributable to noncontrolling interests
| |
0.2
|
| |
0.3
|
|
| | | | |
|
|
Net earnings attributable to Allegion plc
| |
$
|
72.2
|
| |
$
|
68.4
|
|
| | | | |
|
| Basic earnings per ordinary share | | | | | |
|
attributable to Allegion plc shareholders:
| | | | | |
|
Net earnings
| |
$
|
0.76
|
|
|
$
|
0.72
|
|
| | | | |
|
| Diluted earnings per ordinary share | | | | | |
|
attributable to Allegion plc shareholders:
| |
| |
|
|
|
Net earnings
| |
$
|
0.75
|
| |
$
|
0.71
|
|
| | | | |
|
|
Shares outstanding - basic
| |
95.1
| | |
95.3
| |
|
Shares outstanding - diluted
| |
95.8
| | |
96.1
| |
| | | | | |
|
|
| |
| | |
| ALLEGION PLC |
| Condensed and Consolidated Balance Sheets |
| (in millions) |
|
|
UNAUDITED |
| | | | |
|
| | March 31, 2018 | | December 31, 2017 |
| ASSETS | | | | | |
|
Cash and cash equivalents
| |
$
|
151.8
| | |
$
|
466.2
| |
|
Accounts and notes receivables, net
| |
336.4
| | |
296.6
| |
|
Inventory
| |
271.5
| | |
239.8
| |
|
Other current assets
| |
42.9
|
| |
30.1
|
|
|
Total current assets
| |
802.6
| | |
1,032.7
| |
|
Property, plant and equipment, net
| |
277.4
| | |
252.2
| |
|
Goodwill
| |
878.0
| | |
761.2
| |
|
Intangible assets, net
| |
545.8
| | |
394.3
| |
|
Other noncurrent assets
| |
124.3
|
| |
101.6
|
|
|
Total assets
| |
$
|
2,628.1
|
| |
$
|
2,542.0
|
|
| | | | |
|
| LIABILITIES AND EQUITY | | | | | |
|
Accounts payable
| |
$
|
197.5
| | |
$
|
188.3
| |
|
Accrued expenses and other current liabilities
| |
219.3
| | |
237.5
| |
|
Short-term borrowings and current maturities
| | | | | |
|
of long-term debt
| |
35.3
|
| |
35.0
|
|
|
Total current liabilities
| |
452.1
| | |
460.8
| |
|
Long-term debt
| |
1,474.1
| | |
1,442.3
| |
|
Other noncurrent liabilities
| |
240.8
|
| |
233.4
|
|
|
Equity
| |
461.1
|
| |
405.5
|
|
|
Total liabilities and equity
| |
$
|
2,628.1
|
| |
$
|
2,542.0
|
|
| | | | | | | |
|
|
| |
| ALLEGION PLC |
| Condensed and Consolidated Cash Flows |
| (in millions) |
|
|
UNAUDITED |
| |
|
| | Three Months Ended March 31, |
| | 2018 |
| 2017 |
|
Operating Activities
| | | | |
|
Net earnings
| |
$
|
72.4
| | |
$
|
68.7
| |
|
Depreciation and amortization
| |
22.5
| | |
16.5
| |
|
Discretionary pension plan contribution
| |
—
| | |
(50.0
|
)
|
|
Changes in assets and liabilities and other non-cash items
| |
(105.0
|
)
| |
(76.1
|
)
|
|
Net cash used in operating activities
| |
(10.1
|
)
| |
(40.9
|
)
|
| | | |
|
|
Investing Activities
| | | | |
|
Capital expenditures
| |
(8.7
|
)
| |
(7.8
|
)
|
|
Acquisition of and equity investments in businesses, net of cash
acquired
| |
(276.3
|
)
| |
(20.8
|
)
|
|
Other investing activities, net
| |
0.1
|
| |
0.8
|
|
|
Net cash used in investing activities
| |
(284.9
|
)
| |
(27.8
|
)
|
| | | |
|
|
Financing Activities
| | | | |
|
Net debt proceeds (repayments)
| |
31.2
| | |
(12.9
|
)
|
|
Dividends paid to ordinary shareholders
| |
(19.7
|
)
| |
(15.2
|
)
|
|
Repurchase of ordinary shares
| |
(30.0
|
)
| |
(30.0
|
)
|
|
Other financing activities, net
| |
(2.4
|
)
| |
2.1
|
|
|
Net cash used in financing activities
| |
(20.9
|
)
| |
(56.0
|
)
|
| | | |
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
1.5
|
| |
1.9
|
|
|
Net decrease in cash and cash equivalents
| |
(314.4
|
)
| |
(122.8
|
)
|
|
Cash and cash equivalents - beginning of period
| |
466.2
|
| |
312.4
|
|
|
Cash and cash equivalents - end of period
| |
$
|
151.8
|
| |
$
|
189.6
|
|
| | | | | | | |
|
|
|
|
|
|
| |
SUPPLEMENTAL SCHEDULES |
ALLEGION PLC | | | | | | SCHEDULE 1 |
|
|
| SELECTED OPERATING SEGMENT INFORMATION |
| (in millions) |
| | | | | |
|
| | | | | | Three months ended |
| | | | | | March 31, |
| | | | | | 2018 |
| 2017 |
|
Net revenues
| | | | | | | | |
| Americas | | | | | |
$
|
439.1
| | |
$
|
407.6
| |
|
EMEIA
| | | | | |
150.3
| | |
118.4
| |
| Asia Pacific | | | | | |
23.7
|
| |
22.8
|
|
|
Total net revenues
| | | | | |
$
|
613.1
|
| |
$
|
548.8
|
|
| | | | | | | |
|
|
Operating income (loss)
| | | | | | | | |
| Americas | | | | | |
$
|
109.7
| | |
$
|
108.8
| |
|
EMEIA
| | | | | |
8.5
| | |
6.4
| |
| Asia Pacific | | | | | |
(1.5
|
)
| |
0.6
| |
|
Corporate unallocated
| | | | | |
(18.0
|
)
| |
(16.3
|
)
|
|
Total operating income
| | | | | |
$
|
98.7
|
| |
$
|
99.5
|
|
| | | | | | | | | | | |
|
The Company presents operating income, operating margin, net earnings,
diluted earnings per share (EPS), on both a U.S. GAAP basis and on an
adjusted basis, organic revenue growth on a U.S. GAAP basis, and also
presents adjusted EBITDA and adjusted EBITDA margin. The Company
presents these measures because management believes they provide useful
perspective of the Company’s underlying business results, trends and a
more comparable measure of period-over-period results. These measures
are also used to evaluate senior management and are a factor in
determining at-risk compensation. Investors should not consider non-GAAP
measures as alternatives to the related U.S. GAAP measures.
The Company defines the presented non-GAAP measures as follows:
-
Adjustments to operating income, operating margin, net earnings, EPS,
and EBITDA include items such as goodwill impairment charges,
restructuring charges, asset impairments, merger and acquisitions
costs, and charges related to the divestiture of businesses
-
Organic revenue growth is defined as U.S. GAAP revenue growth
excluding the impact of divestitures, acquisitions and currency effects
-
Available cash flow is defined as U.S. GAAP net cash provided by
operating activities less capital expenditures.
These non-GAAP measures may not be defined and calculated the same as
similar measures used by other companies.
|
| |
| |
| RECONCILIATION OF GAAP TO NON-GAAP NET EARNINGS |
|
|
| (in millions, except per share data) |
| | | |
|
| | Three months ended March 31, 2018 | | Three months ended March 31, 2017 |
| | |
| | |
Adjusted
| | |
| | |
Adjusted
|
| | | | | |
(non-
| | | | | |
(non-
|
| |
Reported
| |
Adjustments
| |
GAAP)
| |
Reported
| |
Adjustments
| |
GAAP)
|
|
Net revenues
| |
$
|
613.1
| | |
$
|
—
| | |
$
|
613.1
| | |
$
|
548.8
| | |
$
|
—
| | |
$
|
548.8
| |
| | | | | | | | | | | |
|
|
Operating income
| |
98.7
| | |
5.5
| | (1) |
104.2
| | |
99.5
| | |
$
|
1.9
| | (1) |
101.4
| |
|
Operating margin
| |
16.1
|
%
| | | |
17.0
|
%
| |
18.1
|
%
| | | |
18.5
|
%
|
| | | | | | | | | | | |
|
|
Earnings before income taxes
| |
86.2
| | |
5.5
| | (2) |
91.7
| | |
82.3
| | |
1.9
| | (2) |
84.2
| |
|
Provision for income taxes
| |
13.8
| | |
1.1
| | (3) |
14.9
| | |
13.6
| | |
0.6
| | (3) |
14.2
| |
|
Effective income tax rate
| | 16.0 | % | |
| | 16.2 | % | | 16.5 | % | |
| | 16.9 | % |
|
Net earnings
| |
72.4
| | |
4.4
| | |
76.8
| | |
68.7
| | |
1.3
| | |
70.0
| |
| | | | | | | | | | | |
|
|
Non-controlling interest
| |
0.2
|
| |
—
|
| |
0.2
|
| |
0.3
|
| |
—
|
| |
0.3
|
|
| | | | | | | | | | | |
|
|
Net earnings attributable to Allegion plc
| |
$
|
72.2
|
| |
$
|
4.4
|
| |
$
|
76.6
|
| |
$
|
68.4
|
| |
$
|
1.3
|
| |
$
|
69.7
|
|
| |
| |
| |
| |
| |
| |
|
Diluted earnings (loss) per ordinary share attributable to
Allegion plc shareholders:
| |
$
|
0.75
|
| |
$
|
0.05
|
| |
$
|
0.80
|
| |
$
|
0.71
|
| |
$
|
0.02
|
| |
$
|
0.73
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
(1)
|
|
Adjustments to operating income for the three months ended March 31,
2018 consist of $5.5 million of restructuring charges, merger and
acquisition expenses, and backlog amortization related to an
acquisition. Adjustments to operating income for the three months
ended March 31, 2017 consist of $1.9 million of restructuring
charges and merger and acquisition expenses.
|
|
(2)
| |
Adjustments to earnings before income taxes for the three months
ended March 31, 2018 and March 31, 2017 consist of the adjustments
to operating income discussed above.
|
|
(3)
| |
Adjustments to the provision for income taxes for the three months
ended March 31, 2018 and March 31, 2017 consist of $1.1 million and
$0.6 million, respectively, of tax expense related to the excluded
items discussed above.
|
| |
|
|
| |
| |
ALLEGION PLC | | | | SCHEDULE 3 |
| | | |
|
| RECONCILIATION OF GAAP TO NON-GAAP REVENUE AND OPERATING INCOME
BY REGION |
| (in millions) |
| | | |
|
| | Three months ended March 31, 2018 | | Three months ended March 31, 2017 |
| |
As Reported
|
|
Margin
| |
As Reported
|
|
Margin
|
| Americas | | | | | | | | |
|
Net revenues (GAAP)
| |
$
|
439.1
| | | | |
$
|
407.6
| | | |
| | | | | | | |
|
|
Operating income (GAAP)
| |
$
|
109.7
| | |
25.0
|
%
| |
$
|
108.8
| | |
26.7
|
%
|
|
Restructuring charges
| |
—
| | |
—
|
%
| |
0.2
| | |
—
|
%
|
|
Merger and acquisition costs
| |
0.9
| | |
0.2
|
%
| |
—
| | |
—
|
%
|
|
Backlog amortization
| |
2.9
|
| |
0.6
|
%
| |
—
|
| |
—
|
%
|
|
Adjusted operating income
| |
113.5
| | |
25.8
|
%
| |
109.0
| | |
26.7
|
%
|
|
Depreciation and amortization
| |
8.6
|
| |
2.0
|
%
| |
6.6
|
| |
1.7
|
%
|
|
Adjusted EBITDA
| |
$
|
122.1
|
| |
27.8
|
%
| |
$
|
115.6
|
| |
28.4
|
%
|
| | | | | | | |
|
|
EMEIA
| | | | | | | | |
|
Net revenues (GAAP)
| |
$
|
150.3
| | | | |
$
|
118.4
| | | |
| | | | | | | |
|
|
Operating income (GAAP)
| |
$
|
8.5
| | |
5.7
|
%
| |
$
|
6.4
| | |
5.4
|
%
|
|
Restructuring charges
| |
0.2
| | |
0.1
|
%
| |
1.6
| | |
1.4
|
%
|
|
Merger and acquisition costs
| |
0.3
|
| |
0.2
|
%
| |
—
|
| |
—
|
%
|
|
Adjusted operating income
| |
9.0
| | |
6.0
|
%
| |
8.0
| | |
6.8
|
%
|
|
Depreciation and amortization
| |
8.4
|
| |
5.6
|
%
| |
6.9
|
| |
5.8
|
%
|
|
Adjusted EBITDA
| |
$
|
17.4
|
| |
11.6
|
%
| |
$
|
14.9
|
| |
12.6
|
%
|
| | | | | | | |
|
| Asia Pacific | | | | | | | | |
|
Net revenues (GAAP)
| |
$
|
23.7
| | | | |
$
|
22.8
| | | |
| | | | | | | |
|
|
Operating income (loss) (GAAP)
| |
(1.5
|
)
| |
(6.3
|
)%
| |
0.6
| | |
2.6
|
%
|
|
Restructuring charges
| |
0.5
|
| |
2.1
|
%
| |
—
|
| |
—
|
%
|
|
Adjusted operating income
| |
(1.0
|
)
| |
(4.2
|
)%
| |
0.6
| | |
2.6
|
%
|
|
Depreciation and amortization
| |
0.7
|
| |
3.0
|
%
| |
0.6
|
| |
2.6
|
%
|
|
Adjusted EBITDA
| |
$
|
(0.3
|
)
| |
(1.2
|
)%
| |
$
|
1.2
|
| |
5.2
|
%
|
| | | | | | | |
|
|
Corporate
| | | | | | | | |
|
Operating loss (GAAP)
| |
$
|
(18.0
|
)
| | | |
$
|
(16.3
|
)
| | |
|
Merger and acquisition costs
| |
0.7
|
| | | |
0.1
|
| | |
|
Adjusted operating loss
| |
(17.3
|
)
| | | |
(16.2
|
)
| | |
|
Depreciation and amortization
| |
1.0
|
| | | |
1.0
|
| | |
|
Adjusted EBITDA
| |
$
|
(16.3
|
)
| | | |
$
|
(15.2
|
)
| | |
| | | | | | | |
|
|
Total
| | | | | | | | |
|
Net revenues
| |
$
|
613.1
| | | | |
$
|
548.8
| | | |
| | | | | | | |
|
|
Adjusted operating income
| |
104.2
| | |
17.0
|
%
| |
101.4
| | |
18.5
|
%
|
|
Depreciation and amortization
| |
18.7
|
| |
3.0
|
%
| |
15.1
|
| |
2.7
|
%
|
|
Adjusted EBITDA
| |
$
|
122.9
|
| |
20.0
|
%
| |
$
|
116.5
|
| |
21.2
|
%
|
| | | | | | | | | | | | | |
|
|
|
ALLEGION PLC | SCHEDULE 4 |
|
|
| RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO
AVAILABLE CASH FLOW AND NET EARNINGS TO ADJUSTED EBITDA |
|
|
| (in millions) | |
| | Three months ended March 31, |
| | 2018 |
| 2017 (1) |
|
Net cash used in operating activities
| |
$
|
(10.1
|
)
| |
$
|
(40.9
|
)
|
|
Capital expenditures
| |
(8.7
|
)
| |
(7.8
|
)
|
|
Available cash flow
| |
$
|
(18.8
|
)
| |
$
|
(48.7
|
)
|
| | | | | | | |
|
|
(1) includes a $50.0 million discretionary pension plan contribution
|
| |
|
| | Three months ended March 31, |
| | 2018 | | 2017 |
|
Net earnings (GAAP)
| |
$
|
72.4
| | |
$
|
68.7
| |
|
Provision for income taxes
| |
13.8
| | |
13.6
| |
|
Interest expense
| |
12.9
| | |
15.9
| |
|
Depreciation and amortization
| |
18.7
| | |
15.1
| |
|
Backlog amortization
| |
2.9
|
| |
—
|
|
|
EBITDA
| |
120.7
| | |
113.3
| |
| | | | |
|
|
Other (income) expense, net
| |
(0.4
|
)
| |
1.3
| |
|
Merger and acquisition costs and restructuring charges
| |
2.6
|
| |
1.9
|
|
|
Adjusted EBITDA
| |
$
|
122.9
|
| |
$
|
116.5
|
|
| | | | | | | |
|
|
| |
| |
| ALLEGION PLC | | | | SCHEDULE 5 |
| RECONCILIATION OF GAAP REVENUE GROWTH TO NON-GAAP ORGANIC REVENUE
GROWTH BY REGION |
| | | |
|
| | Three Months Ended |
| | March 31, |
| | 2018 | | 2017 |
| Americas | | | | |
|
Revenue growth (GAAP)
| |
7.7
|
%
| |
12.3
|
%
|
|
Acquisitions and Divestitures
| |
(4.7
|
)%
| |
(1.7
|
)%
|
|
Currency translation effects
| |
(0.3
|
)%
| |
(0.3
|
)%
|
|
Organic growth (non-GAAP)
| |
2.7
|
%
| |
10.3
|
%
|
| | | |
|
| EMEIA | | | | |
|
Revenue growth (GAAP)
| |
26.9
|
%
| |
(0.1
|
)%
|
|
Acquisitions and Divestitures
| |
(5.6
|
)%
| |
(3.0
|
)%
|
|
Currency translation effects
| |
(15.4
|
)%
| |
4.4
|
%
|
|
Organic growth (non-GAAP)
| |
5.9
|
%
| |
1.3
|
%
|
| | | |
|
| Asia Pacific | | | | |
|
Revenue growth (GAAP)
| |
3.9
|
%
| |
9.6
|
%
|
|
Acquisitions and Divestitures
| |
—
|
%
| |
(1.9
|
)%
|
|
Currency translation effects
| |
(3.7
|
)%
| |
(2.9
|
)%
|
|
Organic growth (non-GAAP)
| |
0.2
|
%
| |
4.8
|
%
|
| | | |
|
| Total | | | | |
|
Revenue growth (GAAP)
| |
11.7
|
%
| |
9.3
|
%
|
|
Acquisitions and Divestitures
| |
(4.7
|
)%
| |
(2.0
|
)%
|
|
Currency translation effects
| |
(3.7
|
)%
| |
0.7
|
%
|
|
Organic growth (non-GAAP)
| |
3.3
|
%
| |
8.0
|
%
|
| | | | | |
|
| | |
| | | |
| | | |
| | | | | |
| ALLEGION PLC | SCHEDULE 6 |
| RECONCILIATION OF 2017 PENSION RESTATEMENT BY QUARTER |
|
| | | | | | | | | | | | | | | | | | | |
| Allegion plc |
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | Q1'17 | | Q2'17 | | Q3'17 | | Q4'17 | | FY2017 |
| | As | | | | As | | | | As | | | | As | | | | As | | |
| | Reported | Adj | Restated | | Reported | Adj | Restated | | Reported | Adj | Restated | | Reported | Adj | Restated | | Reported | Adj | Restated |
| | | | | | | | | | | | | | | | | | | |
|
|
Sales
| |
$
|
548.8
| |
$
|
—
| |
$
|
548.8
| | |
$
|
627.0
| |
$
|
—
| |
$
|
627.0
| | |
$
|
609.4
| |
$
|
—
| |
$
|
609.4
| | |
$
|
623.0
| |
$
|
—
| |
$
|
623.0
| | |
$
|
2,408.2
| |
$
|
—
| |
$
|
2,408.2
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Operating income (GAAP)
| |
98.8
| |
0.7
| |
99.5
| | |
134.1
| |
0.9
| |
135.0
| | |
126.1
| |
|
1.0
| |
127.1
| | |
129.2
| |
1.8
| |
|
131.0
| | |
488.2
| |
4.4
| |
492.6
| |
| % of Sales | | 18.0 | % | | 18.1 | % | | 21.4 | % | | 21.5 | % | | 20.7 | % | | 20.9 | % | | 20.7 | % | | 21.0 | % | | 20.3 | % | | 20.5 | % |
| | | | | | | | | | | | | | | | | | | |
|
|
Other income (expense), net
| |
(0.6
|
)
|
(0.7
|
)
|
(1.3
|
)
| |
5.2
| |
(0.9
|
)
|
4.3
| | |
3.7
| |
(1.0
|
)
|
2.7
| | |
5.0
| |
(1.8
|
)
|
3.2
| | |
13.2
| |
(4.4
|
)
|
8.8
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Earnings before tax (GAAP)
| |
$
|
82.3
|
|
$
|
—
|
|
$
|
82.3
|
| |
$
|
123.2
|
|
$
|
—
|
|
$
|
123.2
|
| |
$
|
112.0
|
|
$
|
—
|
|
$
|
112.0
|
| |
$
|
78.2
|
|
$
|
—
|
|
$
|
78.2
|
| |
$
|
395.7
|
|
$
|
—
|
|
$
|
395.7
|
|
| | | | | | | | | | | | | | | | | |
|
| Americas' |
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| |
Q1'17
| |
Q2'17
| |
Q3'17
| |
Q4'17
| |
FY2017
|
| |
As
| | | |
As
| | | |
As
| | | |
As
| | | |
As
| | |
| |
Reported
|
Adj
|
Restated
| |
Reported
|
Adj
|
Restated
| |
Reported
|
Adj
|
Restated
| |
Reported
|
Adj
|
Restated
| |
Reported
|
Adj
|
Restated
|
| | | | | | | | | | | | | | | | | | | |
|
|
Sales
| |
$
|
407.6
| |
$
|
—
| |
$
|
407.6
| | |
$
|
468.6
| |
$
|
—
| |
$
|
468.6
| | |
$
|
455.2
| |
$
|
—
| |
$
|
455.2
| | |
$
|
436.1
| |
$
|
—
| |
$
|
436.1
| | |
$
|
1,767.5
| |
$
|
—
| |
$
|
1,767.5
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Operating income (GAAP)
| |
107.6
| |
1.2
| |
108.8
| | |
140.3
| |
1.3
| |
141.6
| | |
131.8
| |
1.4
| |
133.2
| | |
123.6
| |
1.2
| |
124.8
| | |
503.3
| |
5.1
| |
508.4
| |
| % of Sales | | 26.4 | % |
| 26.7 | % | | 29.9 | % |
| 30.2 | % | | 29.0 | % |
| 29.3 | % | | 28.3 | % |
| 28.6 | % | | 28.5 | % |
| 28.8 | % |
| | | | | | | | | | | | | | | | | |
|
| EMEIA |
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| |
Q1'17
| |
Q2'17
| |
Q3'17
| |
Q4'17
| |
FY2017
|
| |
As Reported
|
Adj
|
Restated
| |
As Reported
|
Adj
|
Restated
| |
As Reported
|
Adj
|
Restated
| |
As Reported
|
Adj
|
Restated
| |
As Reported
|
Adj
|
Restated
|
| | | | | | | | | | | | | | | | | | | |
|
|
Sales
| |
$
|
118.4
| |
$
|
—
| |
$
|
118.4
| | |
$
|
129.2
| |
$
|
—
| |
$
|
129.2
| | |
$
|
125.1
| |
$
|
—
| |
$
|
125.1
| | |
$
|
150.8
| |
$
|
—
| |
$
|
150.8
| | |
$
|
523.5
| |
$
|
—
| |
$
|
523.5
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Operating income (GAAP)
| |
6.9
| |
(0.5
|
)
|
6.4
| | |
8.5
| |
(0.4
|
)
|
8.1
| | |
9.1
| |
(0.5
|
)
|
8.6
| | |
20.7
| |
0.3
| |
21.0
| | |
45.2
| |
(1.1
|
)
|
44.1
| |
| % of Sales | | 5.8 | % |
| 5.4 | % | | 6.6 | % |
| 6.3 | % | | 7.3 | % |
| 6.9 | % | | 13.7 | % |
| 13.9 | % | | 8.6 | % |
| 8.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180426005239/en/
Allegion plc
Media:
Maria Pia Tamburri, 317-810-3399
Director,
Public Affairs
[email protected]
or
Analysts::
Mike
Wagnes, 317-810-3494
Vice President, Treasurer and Investor
Relations
[email protected]
Source: Allegion plc
