Hubbell Reports Third Quarter Results: Sales of $877 Million and Earnings Per Diluted Share of $1.27, Including $0.13 of Reclassification Costs
(Thomson Reuters ONE) -
* Net sales down 2% (-2% FX, +2% acquisitions, -2% organic)
* Adjusted diluted EPS((1)) up 1% to $1.53, excluding:
* Restructuring and related costs ($0.13)
* Costs associated with proposed share reclassification ($0.13)
* Acquired natural gas components manufacturer
SHELTON, CT. (October 22, 2015) - Hubbell Incorporated (NYSE: HUBA, HUBB) today
reported operating results for the third quarter ended September 30, 2015.
Net sales in the third quarter of 2015 were $877.0 million, a decrease of 2%
compared to the $895.3 million reported in the third quarter of 2014. Operating
income in the quarter was $131.0 million as compared to $142.8 million in the
same period of 2014. Excluding $11.9 million of restructuring and related costs,
adjusted operating income was essentially flat year over year ((1)). The
effective tax rate in the quarter was 35.1% compared to 32.9% in the third
quarter of 2014. Excluding the impact of $7.4 million of non-deductible
reclassification costs recorded in the third quarter of 2015, the adjusted
effective tax rate for the quarter was 33.0% ((1)). Net income in the third
quarter of 2015 was $73.3 million compared to $89.6 million reported in the
comparable period of 2014. Earnings per diluted share for the third quarter of
2015 were $1.27, compared to $1.51 reported in the third quarter of 2014.
Excluding restructuring and related costs and the costs associated with the
proposed share reclassification, adjusted earnings per diluted share increased
1% to $1.53( (1)). Free cash flow (defined as cash flow from operations less
capital expenditures) was $76.6 million in the third quarter of 2015 versus
$121.6 million reported in the comparable period of 2014.
For the first nine months of 2015, net sales were $2.6 billion, an increase of
2% compared to the same period last year. Operating income was $362.7 million
compared to $391.3 million for the comparable period of 2014 and included $32.2
million of restructuring and related costs ((1)). The effective tax rate for the
first nine months of 2015 was 33.1% compared to 32.9% reported in the first nine
months of 2014. Excluding the impact of $7.4 million of non-deductible
reclassification costs recorded in the third quarter of 2015, the adjusted
effective tax rate was 32.4%((1)). Net income in the first nine months of 2015
was $215.8 million compared to the $244.0 million for the comparable period of
2014. Earnings per diluted share were $3.71, compared to $4.10 reported for the
comparable period of 2014. Excluding restructuring and related costs and the
costs related with our proposed share reclassification, adjusted earnings per
diluted share were $4.21((1)). Free cash flow was $140.8 million compared to
$195.7 million reported in the first nine months of 2014.
OPERATIONS REVIEW
"In the face of challenging end markets, we continued to execute on our One
Hubbell strategy," said David G. Nord, Chairman, President and Chief Executive
Officer. "During the quarter, we made investments to grow the business, took
actions to improve our cost structure, and announced a plan to reclassify our
common stock into a single class structure. We saw mixed results in our end
markets, with expansion of construction-related markets and declines in certain
industrial and energy-related markets.
"While macro trends continue to impact the business, we are focused on what we
can control and, importantly, our cost reduction initiatives have begun to yield
savings in line with our expectations. We continue to exit facilities, totaling
eight this year. Additionally, actions to better align staffing levels with
demand in weak markets are well underway, and we continue to execute plans to
realize efficiencies in process and back-office activities.
"Our long-term strategy of supplementing market growth with acquisitions
continued during the quarter with the purchase of a natural gas components
manufacturer, and we are excited about its future contributions to Hubbell. We
look forward to continuing to execute our strategic growth initiatives to drive
enhanced value for our shareholders," continued Mr. Nord.
SEGMENT REVIEW
The comments and year-over-year comparisons in this segment review are based on
third quarter results in 2015 and 2014.
Electrical segment net sales in the third quarter of 2015 were $617.5 million
compared to $641.6 million reported in the third quarter of 2014. Acquisitions
added 2% to net sales in the quarter while the unfavorable impact of foreign
currency translation reduced sales by 3%. Organic volume declined by 3% due to
lower shipments in industrial and energy-related businesses partially offset by
higher shipments in construction-related businesses. Operating income was $78.8
million, or 12.8% of net sales, compared to $92.6 million, or 14.4% of net
sales, in the same period of 2014. Excluding restructuring and related costs,
adjusted operating income was $88.8 million, or 14.4% of net sales ((1)).
Excluding restructuring and related costs, the decrease in operating income was
primarily due to lower volumes((1)).
Power segment net sales in the third quarter of 2015 increased 2% to $259.5
million compared to $253.7 million reported in the third quarter of 2014.
Acquisitions added 4% to net sales in the quarter while foreign currency
translation reduced net sales by 2%. Organic sales were flat, with strength in
telecommunications largely offset by lower transmission shipments. Compared to
the third quarter of 2014, operating income increased 4% to $52.2 million, or
30 basis points to 20.1% of net sales. Excluding restructuring and related
costs, operating income increased 8% and margin expanded 100 basis points ((1)).
Both increases were primarily due to the favorable impact of material costs and
price.
SUMMARY & OUTLOOK
Mr. Nord commented, "Recent order trends continue to show weakness, primarily in
industrial businesses, and support our expectation of flat organic sales for the
year. In addition, we anticipate acquisitions will contribute 3% to our net
sales and foreign exchange will reduce our net sales by 2% on a full year basis.
We now expect full year 2015 diluted earnings per share in the range of $4.95 to
$5.05, which reflects the lower end of our prior range and includes
approximately $0.45 of restructuring and related costs. The range excludes the
costs related to the proposed share reclassification. If the transaction is
completed by year end, we expect related costs to be approximately $0.35, of
which $0.13 was incurred in the third quarter ((1)).
"For 2016, we expect end markets to continue to be mixed, with modest growth in
the aggregate. Strength in construction and growth in utility are expected to be
partially offset by weak industrial and oil markets," Mr. Nord continued. "We
expect continued restructuring and related initiatives to impact diluted
earnings per share by approximately $0.25 to $0.35, as we reduce our variable
and structural costs to better position the Company for sustainable profitable
growth. And we expect to continue realizing the benefits of our cost reduction
efforts, with $0.30 of incremental savings expected in 2016."
Previously Announced Proposed Share Reclassification
Mr. Nord said, "As announced in August, we are undertaking a plan to simplify
our equity capital structure by creating a single class of Common Stock. The
proposed reclassification will align voting rights with the economic interests
of our shareholders and achieve the efficiencies associated with a single-class
structure. Pending shareholder approvals and the satisfaction of other customary
closing conditions, we expect the proposed reclassification of Hubbell's shares
to close in late 2015 or early 2016. As previously announced, we intend to
execute share repurchases of up to $250 million following the shareholder vote
on the transaction."
Certain statements contained herein may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These include statements about expectations regarding our financial results, the
completion of our proposed reclassification, completed and future acquisitions,
restructuring actions, improving our cost structure to support earnings growth,
market conditions, foreign exchange rates, intent to repurchase shares,
shareholder value creation, and other statements that are not strictly historic
in nature. In addition, all statements regarding anticipated growth or
improvement in operating results, anticipated market conditions, and economic
recovery are forward-looking. These statements may be identified by the use of
forward-looking words or phrases such as "improved", "leading", "improving",
"continuing growth", "continued", "ranging", "contributing", "primarily",
"plan", "expect", "anticipated", "expected", "expectations," "should result",
"uncertain", "goals", "projected", "on track", "likely", "intend" and others.
Such forward-looking statements are based on the Company's reasonable current
expectations and involve numerous assumptions, known and unknown risks,
uncertainties and other factors which may cause actual and future performance or
achievements of the Company to be materially different from any future results,
performance, or achievements expressed or implied by such forward-looking
statements. Such factors include, but are not limited to: failure to receive the
requisite approvals of our shareholders necessary to complete the
reclassification; any other delays with respect to, or the failure to complete,
the reclassification achieving sales levels to fulfill revenue expectations;
unexpected costs or charges, certain of which may be outside the control of the
Company; expected benefits of process improvement and other lean initiatives;
the expected benefit and effect of the business information system initiatives
and streamlining programs; the availability and costs of raw materials and
purchased components; realization of price increases; the ability to achieve
projected levels of efficiencies and cost reduction measures; general economic
and business conditions; competition; and other factors described in our
Securities and Exchange Commission filings, including the "Business", "Risk
Factors", and "Quantitative and Qualitative Disclosures about Market Risk"
Sections in the Annual Report on Form 10-K for the year ended December 31, 2014.
Additional Information
This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval nor
shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. On September 11, 2015, the
Company initially filed with the U.S. Securities and Exchange Commission a
registration statement on Form S-4, as amended, which contains a proxy
statement/prospectus in connection with the proposed reclassification.
Shareholders are urged to read the proxy statement/prospectus in its entirety
because it contains important information. Shareholders will be able to obtain
a free copy of the definitive proxy statement/prospectus (when available), as
well as other filings containing information about the Company, without charge,
at the SEC's website, www.sec.gov, and on the Investor Relations page of
Hubbell's web site at http://www.hubbell.com/Investor/SECFilings.aspx. Copies of
the proxy statement/prospectus and other Company filings with the SEC can also
be obtained, without charge, by directing a request to Hubbell Incorporated
Investor Relations, by phone to (475) 882-4000, or in writing to Hubbell
Incorporated, 40 Waterview Drive, Shelton, Connecticut, 06484.
The directors and executive officers of the Company and other persons may be
deemed to be participants in the solicitation of proxies in respect of the
proposed reclassification. Information regarding the Company's directors and
executive officers is available in the Company's most recent proxy statement,
dated March 18, 2015, for the Annual Meeting of Shareholders held on May
5, 2015, which was filed with the SEC on March 18, 2015, and the Company's other
filings with the SEC. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests will be
contained in the definitive proxy statement/prospectus when it becomes
available.
About the Company
Hubbell Incorporated is an international manufacturer of quality electrical and
electronic products for a broad range of non-residential and residential
construction, industrial and utility applications. With 2014 revenues of $3.4
billion, Hubbell Incorporated operates manufacturing facilities in the United
States, Canada, Switzerland, Puerto Rico, Mexico, the People's Republic of China
("China"), Italy, the United Kingdom, Brazil and Australia. Hubbell also
participates in joint ventures in Taiwan and Hong Kong, and maintains sales
offices in Singapore, China, India, Mexico, South Korea and countries in the
Middle East. The corporate headquarters is located in Shelton, CT.
#######
HUBBELL INCORPORATED
Condensed Consolidated Statement of Income
(unaudited)
(in millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- --------------------------
2015 2014 2015 2014
----------- ----------- ------------- ------------
Net sales $ 877.0 $ 895.3 $ 2,560.7 $ 2,510.6
Cost of goods sold 585.9 599.1 1,732.8 1,676.9
----------- ----------- ------------- ------------
Gross profit 291.1 296.2 827.9 833.7
Selling & administrative
expenses 160.1 153.4 465.2 442.4
----------- ----------- ------------- ------------
Operating income 131.0 142.8 362.7 391.3
Operating income as a % of
Net sales 14.9 % 15.9 % 14.2 % 15.6 %
Interest expense, net (7.6 ) (7.5 ) (22.7 ) (22.0 )
Other income (expense), net (8.3 ) (0.5 ) (12.1 ) (2.0 )
----------- ----------- ------------- ------------
Total other expense, net (15.9 ) (8.0 ) (34.8 ) (24.0 )
Income before income taxes 115.1 134.8 327.9 367.3
Provision for income taxes 40.4 44.3 108.5 120.7
----------- ----------- ------------- ------------
Net income 74.7 90.5 219.4 246.6
Less: Net income
attributable to
noncontrolling interest 1.4 0.9 3.6 2.6
----------- ----------- ------------- ------------
Net income attributable to
Hubbell $ 73.3 $ 89.6 $ 215.8 $ 244.0
----------- ----------- ------------- ------------
Earnings Per Share:
Basic $ 1.27 $ 1.52 $ 3.73 $ 4.13
Diluted $ 1.27 $ 1.51 $ 3.71 $ 4.10
Cash dividends per common
share $ 0.56 $ 0.50 $ 1.68 $ 1.50
HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(unaudited)
(in millions)
September December
30, 2015 31, 2014
---------------- --------------
ASSETS
Cash and cash equivalents $ 433.8 $ 653.9
Short-term investments 9.9 7.8
Accounts receivable, net 530.9 469.8
Inventories, net 527.0 441.8
Deferred taxes and other 64.5 56.1
---------------- --------------
TOTAL CURRENT ASSETS 1,566.1 1,629.4
Property, plant and equipment, net 411.0 401.2
Investments 47.4 44.1
Goodwill 928.5 874.7
Intangible assets, net 379.6 322.8
Other long-term assets 49.9 50.6
---------------- --------------
TOTAL ASSETS $ 3,382.5 $ 3,322.8
---------------- --------------
LIABILITIES AND EQUITY
Short-term debt $ 0.4 $ 1.4
Accounts payable 270.1 244.0
Accrued salaries, wages and employee benefits 67.5 76.0
Accrued insurance 54.2 47.8
Other accrued liabilities 161.3 130.0
---------------- --------------
TOTAL CURRENT LIABILITIES 553.5 499.2
Long-term debt 597.9 597.6
Other non-current liabilities 277.5 290.3
---------------- --------------
TOTAL LIABILITIES 1,428.9 1,387.1
Hubbell Shareholders' Equity 1,943.9 1,927.1
Noncontrolling interest 9.7 8.6
---------------- --------------
TOTAL EQUITY 1,953.6 1,935.7
---------------- --------------
TOTAL LIABILITIES AND EQUITY $ 3,382.5 $ 3,322.8
---------------- --------------
HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in millions)
Nine Months Ended
September 30,
----------------------
2015 2014
----------- ----------
Cash Flows From Operating Activities
Net income attributable to Hubbell $ 215.8 $ 244.0
Depreciation and amortization 63.6 59.0
Stock-based compensation expense 10.8 9.9
Deferred income taxes (10.8 ) 4.6
Changes in working capital (73.8 ) (84.2 )
Contributions to defined benefit pension plans (22.1 ) (3.0 )
Other, net 9.6 8.0
----------- ----------
Net cash provided by operating activities 193.1 238.3
----------- ----------
Cash Flows From Investing Activities
Capital expenditures (52.3 ) (42.6 )
Acquisition of businesses, net of cash acquired (163.3 ) (163.9 )
Net change in investments (6.1 ) 2.0
Other, net 2.1 1.6
----------- ----------
Net cash used in investing activities (219.6 ) (202.9 )
----------- ----------
Cash Flows From Financing Activities
Short-term debt borrowings, net (1.0 ) 0.7
Payment of dividends (97.2 ) (88.6 )
Repurchase of common shares (76.0 ) (35.0 )
Proceeds from stock issuance, net - 1.1
Other, net (0.5 ) 6.0
----------- ----------
Net cash used in financing activities (174.7 ) (115.8 )
----------- ----------
Effect of foreign exchange rate changes on cash and cash
equivalents (18.9 ) (6.5 )
----------- ----------
(Decrease) increase in cash and cash equivalents (220.1 ) (86.9 )
Cash and cash equivalents
Beginning of period 653.9 740.7
----------- ----------
End of period $ 433.8 $ 653.8
----------- ----------
HUBBELL INCORPORATED
Restructuring and Related Costs Included in Consolidated Results
(unaudited)
(in millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- --------------------
2015 2014 2015 2014
---------- ----------- ---------- ---------
Restructuring and related costs
included in Cost of goods sold
((2))
Electrical $ 6.3 - $ 17.5 -
Power 0.7 - 3.0 -
---------- ----------- ---------- ---------
Total $ 7.0 $ - $ 20.5 $ -
---------- ----------- ---------- ---------
Restructuring and related costs
included in Selling &
administrative expenses( (3))
Electrical $ 3.7 $ - $ 9.1 $ -
Power 1.2 - 2.6 -
---------- ----------- ---------- ---------
Total $ 4.9 $ - $ 11.7 $ -
---------- ----------- ---------- ---------
Impact on income before income
taxes $ 11.9 - $ 32.2 -
Impact on Net income available to
Hubbell common shareholders 7.9 - 21.7 -
Impact on Diluted earnings per
share $ 0.13 $ - $ 0.37 -
The Company incurred no restructuring and related costs in the three and nine
months ended September 30, 2014.
HUBBELL INCORPORATED
Earnings Per Share
(unaudited)
(in millions, except per share amounts)
Three Months Ended September Nine Months Ended September
30, 30,
------------------------------- -------------------------------
2015 2014 Change 2015 2014 Change
---------- ---------- --------- ----------- ----------- -------
Numerator:
Net income
attributable to
Hubbell $ 73.3 $ 89.6 $ 215.8 $ 244.0
Less: Earnings
allocated to
participating
securities (0.2 ) (0.1 ) (0.6 ) (0.6 )
---------- ---------- --------- ----------- ----------- -------
Net income
available to
common
shareholders
(GAAP measure)
[a] $ 73.1 $ 89.5 (18 )% $ 215.2 $ 243.4 (12 )%
Less:
Restructuring
and related
costs, after tax 7.9 - 21.7 -
Less:
Reclassification
costs, after tax 7.4 - 7.4 -
---------- ---------- --------- ----------- ----------- -------
Adjusted net
income available
to common
shareholders
((1)) [b] 88.4 89.5 (1.2 )% 244.3 243.4 0.4 %
Denominator:
Average number
of common shares
outstanding [c] 57.7 58.9 57.8 59.0
Potential
dilutive shares 0.2 0.5 0.3 0.4
---------- ---------- ----------- -----------
Average number
of diluted
shares
outstanding [d] 57.9 59.4 58.1 59.4
---------- ---------- ----------- -----------
Earnings per
share (GAAP
measure):
Basic [a] / [c] $ 1.27 $ 1.52 $ 3.73 $ 4.13
Diluted [a] /
[d] $ 1.27 $ 1.51 (16 )% $ 3.71 $ 4.10 (10 )%
Adjusted
earnings per
diluted share
((1)) [b] / [d] $ 1.53 $ 1.51 1 % $ 4.21 $ 4.10 3 %
Full Year 2015
----------------
Earnings per diluted share (GAAP measure) $4.60 - $4.70
Reclassification costs ** $0.35
----------------
Earnings per diluted share, excluding reclassification costs $4.95 - $5.05
Restructuring and related costs $0.45
----------------
Adjusted earnings per diluted share $5.40 - $5.50
** On August 24, 2015, the Company announced a plan to reclassify its common
stock to eliminate the existing two-class structure (the "Reclassification").
In the third quarter of 2015 the Company incurred $7.4 million, or $0.13 per
diluted share, of one-time costs related to the Reclassification (the
"reclassification costs"), primarily relating to professional fees. Those
reclassification costs are recognized in Other expense, net in the Condensed
Consolidated Statement of Income and generally are not tax deductible. Certain
other one-time reclassification costs that are generally not tax deductible and
estimated to be $13 million, or approximately $0.22 per diluted share, including
additional professional fees and the reimbursement of certain costs of Bessemer
Trust Company, N.A. (the "Trustee"), are contingent upon closing the
Reclassification, or upon certain other events of termination specified in the
Reclassification Agreement between the Company and the Trustee (the
"Reclassification Agreement"), and those additional reclassification costs will
be recognized in the period the Reclassification is completed or upon the
specified termination event.
Subject to shareholder approvals and the satisfaction of customary closing
conditions, the Company expects to complete the Reclassification during the
fourth quarter of 2015 or the first quarter of 2016.
HUBBELL INCORPORATED
Segment Information
(unaudited)
(in millions)
Hubbell Three Months Ended September
Incorporated 30, Nine Months Ended September 30,
-------------------------------- -----------------------------------
2015 2014 Change 2015 2014 Change
----------- ----------- -------- ------------- ------------- -------
Net Sales [a] $ 877.0 $ 895.3 (2 )% $ 2,560.7 $ 2,510.6 2 %
Operating
Income
GAAP measure
[b] $ 131.0 $ 142.8 (8 )% $ 362.7 $ 391.3 (7 )%
Restructuring
and related
costs 11.9 - 32.2 -
----------- ----------- ------------- -------------
Adjusted
operating
income ((1))
[c] $ 142.9 $ 142.8 - % $ 394.9 $ 391.3 1 %
----------- ----------- ------------- -------------
Operating
margin
GAAP measure -100 -140
[b] / [a] 14.9 % 15.9 % bps 14.2 % 15.6 % bps
Adjusted
operating
margin ((1)) +40 -20
[c] / [a] 16.3 % 15.9 % bps 15.4 % 15.6 % bps
Electrical Three Months Ended September
segment 30, Nine Months Ended September 30,
-------------------------------- -----------------------------------
2015 2014 Change 2015 2014 Change
----------- ----------- -------- ------------- ------------- -------
Net Sales [a] $ 617.5 $ 641.6 (4 )% $ 1,802.3 $ 1,792.8 1 %
Operating
Income
GAAP measure
[b] $ 78.8 $ 92.6 (15 )% $ 216.6 $ 256.2 (15 )%
Restructuring
and related
costs 10.0 - 26.6 -
----------- ----------- ------------- -------------
Adjusted
operating
income ((1))
[c] $ 88.8 $ 92.6 (4 )% $ 243.2 $ 256.2 (5 )%
----------- ----------- ------------- -------------
Operating
margin
GAAP measure -160 -230
[b] / [a] 12.8 % 14.4 % bps 12.0 % 14.3 % bps
Adjusted
operating
margin ((1)) -80
[c] / [a] 14.4 % 14.4 % 0 bps 13.5 % 14.3 % bps
Three Months Ended September Nine Months Ended September
Power segment 30, 30,
-------------------------------- -------------------------------
2015 2014 Change 2015 2014 Change
----------- ----------- -------- ----------- ----------- -------
Net Sales [a] $ 259.5 $ 253.7 2 % $ 758.4 $ 717.8 6 %
Operating
Income
GAAP measure
[b] $ 52.2 $ 50.2 4 % $ 146.1 $ 135.1 8 %
Restructuring
and related
costs 1.9 - 5.6 -
----------- ----------- ----------- -----------
Adjusted
operating
income ((1))
[c] $ 54.1 $ 50.2 8 % $ 151.7 $ 135.1 12 %
----------- ----------- ----------- -----------
Operating
margin
GAAP measure +30 +50
[b] / [a] 20.1 % 19.8 % bps 19.3 % 18.8 % bps
Adjusted
operating
margin ((1)) +100 +120
[c] / [a] 20.8 % 19.8 % bps 20.0 % 18.8 % bps
HUBBELL INCORPORATED
Adjusted Effective Tax Rate
(unaudited)
(in millions)
Three Months Ended Nine Months Ended
Hubbell Incorporated September 30, September 30,
---------------------------- --------------------------
2015 2014 Change 2015 2014 Change
-------- -------- ---------- -------- -------- --------
Effective tax rate
(GAAP measure) 35.1 % 32.9 % +220 bps 33.1 % 32.9 % +20 bps
Restructuring and
related costs 0.1 % - % - % - %
Reclassification costs 2.0 % - % 0.7 % - %
-------- -------- -------- --------
Adjusted effective tax
rate 33.0 % 32.9 % +10 bps 32.4 % 32.9 % -50 bps
-------- -------- -------- --------
HUBBELL INCORPORATED
Debt to Capital and Free Cash Flow
(unaudited)
(in millions)
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
September December
30, 2015 31, 2014
---------------- --------------
Total Debt $ 598.3 $ 599.0
Total Hubbell Shareholders' Equity 1,943.9 1,927.1
---------------- --------------
Total Capital $ 2,542.2 $ 2,526.1
---------------- --------------
Total Debt to Total Capital 24 % 24 %
Total Debt $ 598.3 $ 599.0
Less: Cash and cash equivalents (433.8 ) (653.9 )
Investments (57.3 ) (51.9 )
---------------- --------------
Net Debt $ 107.2 $ (106.8 )
---------------- --------------
Net Debt to Total Capital ((4)) 4 % (4 )%
Free Cash Flow Reconciliation
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2015 2014 2015 2014
---------- ----------- ----------- ----------
Net cash provided by operating
activities $ 94.4 $ 137.1 $ 193.1 $ 238.3
Less: Capital expenditures (17.8 ) (15.5 ) (52.3 ) (42.6 )
---------- ----------- ----------- ----------
Free cash flow( (5)) 76.6 121.6 $ 140.8 $ 195.7
---------- ----------- ----------- ----------
HUBBELL INCORPORATED
Footnotes
((1) ) In order to provide a comparison that we believe provides more useful
information regarding our underlying performance from period to period and to
allow readers to assess the impact of restructuring activities and business
transformation initiatives on our results of operations, the Company refers
adjusted operating income and adjusted operating margins, each of which exclude
restructuring and related costs. The Company also refers to adjusted earnings
per diluted share, adjusted net income available to common shareholders, each
of which exclude restructuring and related costs as well as the direct costs
associated with the proposed reclassification of the Company's common stock to
eliminate its current two-class structure (the "reclassification costs"). The
adjusted effective tax rate excludes the impact of non-deductible
reclassification costs on the effective tax rate.
Restructuring costs support our cost reduction efforts involving the
consolidation of manufacturing and distribution facilities and workforce
reductions. Restructuring related costs are one-time costs associated with our
business transformation initiatives, including the consolidation of back-office
functions and streamlining our processes. Reclassification costs are the direct
costs associated with the proposed reclassification of the Company's common
stock to eliminate its current two-class structure and generally are not
deductible. Each of the adjusted operating measures which exclude the impact of
those costs are non-GAAP measures. Reconciliations of these non-GAAP measures to
the most directly comparable GAAP measure can be found in the Earnings Per Share
Calculation and Segment Information tables within this press release.
((2)) Restructuring and related costs is a non-GAAP measure that we believe is
useful to assess the impact of restructuring activities and business
transformation initiatives on our operating results. Restructuring costs are
incurred to support our cost reduction efforts involving the consolidation of
manufacturing and distribution facilities and workforce reductions.
Restructuring related costs are one-time costs associated with our business
transformation initiatives, including the consolidation of back-office functions
and streamlining our processes. Restructuring and related costs recognized in
Cost of goods sold for the three months ended September 30, 2015 includes
restructuring costs of $5.0 million in the Electrical segment and $0.1 million
in the Power segment. For the nine months ended September 30, 2015,
restructuring and related costs recognized in Cost of goods sold include
restructuring costs of $12.3 million in the Electrical segment and $0.8 million
in the Power segment.
((3)) Restructuring and related costs recognized in Selling & administrative
expenses for the three months ended September 30, 2015 includes restructuring
costs of $2.2 million in the Electrical segment and $0.5 million in the Power
segment. For the nine months ended September 30, 2015, restructuring and related
costs recognized in Selling & administrative expenses include restructuring
costs of $5.4 million in the Electrical segment and $1.0 million in the Power
segment.
((4)) Net debt to total capital is a non-GAAP measure we believe is a useful
measure for evaluating the Company's financial leverage and the ability to meet
its funding needs.
((5) )Free cash flow is a non-GAAP measure that we believe provides useful
information regarding the Company's ability to generate cash without reliance on
external financings. In addition, management uses free cash flow to evaluate the
resources available for investments in the business, strategic acquisitions and
further strengthening the balance sheet.
Contact: Maria R. Lee
Hubbell Incorporated
40 Waterview Drive
P.O. Box 1000
Shelton, Connecticut 06484
(475) 882-4000
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originality of the information contained therein.
Source: Hubbell Inc. via GlobeNewswire
[HUG#1960682]
Unternehmensinformation / Kurzprofil:
Datum: 22.10.2015 - 13:30 Uhr
Sprache: Deutsch
News-ID 428837
Anzahl Zeichen: 46382
contact information:
Town:
Shelton
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 299 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Hubbell Reports Third Quarter Results: Sales of $877 Million and Earnings Per Diluted Share of $1.27, Including $0.13 of Reclassification Costs"
steht unter der journalistisch-redaktionellen Verantwortung von
Hubbell Inc. (Nachricht senden)
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