Hubbell Reports Fourth Quarter and Full Year Results; Fourth Quarter Net Sales of $854 Million and Earnings Per Diluted Share of $1.16, Including $0.19 of Restructuring and Related Costs
(Thomson Reuters ONE) -
* Q4 net sales up 3% (+4% acquisitions, flat organic, -1% FX)
* Q4 adjusted diluted EPS((1)) up 3% to $1.35
* Strong operating cash flow; acceleration of restructuring and related
actions
* FY16 diluted EPS of $5.24, including $0.42 of restructuring and related
costs
* Expected FY17 diluted EPS: $5.60 to $5.80, including $0.25 of restructuring
and related costs
SHELTON, CT. (January 31, 2017) - Hubbell Incorporated (NYSE: HUBB) today
reported operating results for the fourth quarter and full year ended
December 31, 2016.
Net sales in the fourth quarter of 2016 were $854 million, an increase of 3%
compared to the $830 million reported in the same period of 2015. Operating
income in the quarter was $108 million, or 12.6% of net sales, as compared to
$112 million, or 13.5% of net sales, in the same period of 2015. Excluding $16.0
million and $6.7 million of restructuring and related costs in 2016 and 2015,
respectively, adjusted operating income increased 4%((1) )in the fourth quarter.
Net income attributable to Hubbell in the fourth quarter of 2016 was $64 million
as compared to $62 million reported in the same period of 2015. Earnings per
diluted share for the fourth quarter of 2016 were $1.16, compared to $1.06 in
the fourth quarter of 2015. Excluding restructuring and related costs in both
periods and the costs associated with the Common Stock reclassification in
2015, adjusted earnings per diluted share for the fourth quarter of 2016 were
$1.35 compared to $1.31 in the same period of 2015((1)).
Net cash provided from operating activities of $138 million in the fourth
quarter of 2016 included $16 million of voluntary contributions to defined
benefit pension plans and was flat to the prior year's fourth quarter. Free cash
flow (defined as cash flow provided by operating activities less capital
expenditures) was $116 million in the fourth quarter of 2016 versus $113 million
reported in the comparable period of 2015((3)).
Net sales for the full year 2016 were $3.5 billion, an increase of 3% compared
to the full year 2015. Operating income was $478 million compared to $475
million for the comparable period of 2015. Excluding restructuring and related
costs, adjusted operating income was $513 million compared to $514 million in
the same period of 2015((1)). Net income attributable to Hubbell for the full
year 2016 was $293 million compared to the $277 million reported in 2015.
Earnings per diluted share were $5.24 for 2016 and $4.77 for 2015. Excluding
restructuring and related costs in both years and the costs associated with the
Common Stock reclassification in 2015, adjusted earnings per diluted share for
the full year 2016 were up 3% to $5.66, compared to $5.52 in the same period of
2015((1)). Net cash provided from operating activities was $398 million compared
to $331 million reported in 2015. Free cash flow was $331 million compared to
$254 million reported in 2015((3)).
OPERATIONS REVIEW
"End markets trended largely as expected in the fourth quarter," said David G.
Nord, Chairman, President and Chief Executive Officer. "Flat year-over-year
organic sales reflected moderating declines in core industrial and oil markets,
robust growth in residential demand, modest increases in non-residential
construction, and flat distribution markets. Acquisitions drove sales growth in
both the quarter and the year.
"In response to the ongoing shift to LED products in the Lighting market, we
intensified our efforts in the fourth quarter to better align our operations
with the needs of our business. As a result, we incurred higher restructuring
and related costs than previously expected due to the proposed consolidation of
two Lighting facilities," Mr. Nord commented. "More generally, restructuring and
related activities across the Company are exceeding return expectations, with
incremental savings greater than $0.30 per diluted share realized in 2016. Since
we began our restructuring and related program in late 2014, we've realized
cumulative savings of more than $0.45 per diluted share from investment of $0.93
per diluted share and exited 20 manufacturing and warehouse facilities,
representing almost 10% of square footage."
In association with the aforementioned proposed Lighting facility consolidation,
the Company expects to incur approximately $0.30 of restructuring and related
costs per diluted share, of which approximately $0.19 were recognized in the
fourth quarter of 2016; the remainder is expected to be incurred in 2017. The
costs of the proposed consolidation were partially offset by a gain on the sale
of a real estate asset associated with a separate Lighting restructuring action.
The charges related to the Lighting facility consolidation consist primarily of
employee-related costs, including an anticipated withdrawal liability associated
with a multi-employer pension plan obligation. The Company is currently
bargaining with the union about the proposed consolidation plan, and certain
aspects of the activities related to the consolidation plan may require
adjustments, including expected costs and timing.
SEGMENT REVIEW
The year-over-year comparisons in this segment review are based on fourth
quarter results in 2016 and 2015.
Electrical segment net sales in the fourth quarter of 2016 increased 3% to $602
million compared to $586 million reported in the fourth quarter of 2015.
Acquisitions added 3% to sales in the quarter. Organic growth of 1% offset the
unfavorable impact of foreign currency translation of 1%. Operating income was
$54 million, or 9.0% of net sales, compared to $62 million, or 10.6% of net
sales in the same period of 2015. Excluding restructuring and related costs,
adjusted operating income was $69 million, or 11.5% of net sales compared to $69
million, or 11.7% of net sales in the same period of 2015((1)).
Power segment net sales in the fourth quarter of 2016 increased 4% to $253
million compared to $244 million reported in the fourth quarter of 2015.
Acquisitions added 6% to sales in the quarter while organic sales decreased 2%
due to lower telecom shipments and transmission project delays. Compared to the
fourth quarter of 2015, operating income increased 9% to $54 million, or 100
basis points to 21.3% of net sales. Excluding restructuring and related costs,
adjusted operating income also increased 9% and margin expanded 100 basis
points((1)). Both increases were primarily due to productivity in excess of cost
inflation, including the reduction of an environmental liability.
SUMMARY & OUTLOOK
"Looking back on 2016, we navigated choppy end markets while our acquisition
program delivered three percentage points of sales growth," stated Mr. Nord.
"Savings from cost actions helped support operating margins and partially offset
unfavorable price, foreign exchange, and mix impact of industrial and oil market
declines. We also benefited from a lower tax rate, as well as share repurchases
completed early in the year. Adjusted diluted earnings per share were within the
range we expected. We also absorbed higher restructuring and related costs than
previously communicated. Free cash flow was greater than net income. All told,
solid and steady performance.
"In 2017, we expect growth across end markets to be more consistent than in
2016; we also expect continued improvements in our cost structure, as well as a
number of anticipated challenges. We are planning to outperform a slow-growth
macroeconomic environment of approximately two percent in the aggregate,
comprised of low to mid single digit growth in non-residential and residential
markets and modest growth in transmission and distribution, industrial and
energy markets. We anticipate tailwinds from cost actions and lower
restructuring spend, in addition to incremental profit from higher sales.
Pricing challenges are expected to continue at Lighting, as are headwinds from
foreign exchange and material costs across the Company." Mr. Nord added, "We
anticipate full year earnings per diluted share in the range of $5.60 to $5.80,
up 7% to 11% compared to 2016 and including approximately $0.25 of restructuring
and related costs. This range incorporates approximately $0.20 of incremental
savings in 2017 from restructuring and related actions initiated prior to year-
end 2016. We also expect free cash flow to equal net income in 2017."
Mr. Nord concluded, "Our long-term strategy remains focused on serving our
customers with reliable and innovative solutions delivered through a competitive
cost structure and allocating capital effectively, including funding
acquisitions that complement organic growth, to create sustainable shareholder
value."
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 and
outlook, including projected earnings and free cash flow expectations; completed
and future acquisitions; restructuring and related actions, including those
related to the proposed Lighting facility consolidation; improving our cost
structure to support earnings growth; market conditions; foreign exchange rates;
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
conditions 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 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: 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
cost reduction actions; pension expense; effects of unfavorable foreign currency
exchange rates; price and material costs; political factors and their impact on
our end markets; the ability to complete strategic acquisitions and integrate
acquired companies; the ability to effectively develop and introduce new
products, expand into new markets and deploy capital; general economic and
business conditions; competition; and other factors described in our Securities
and Exchange Commission filings, including without limitation 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, 2015.
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 2016 revenues of $3.5
billion, Hubbell Incorporated operates manufacturing facilities in the United
States and around the world. The corporate headquarters is located in Shelton,
CT.
Contact: Steve Beers
Hubbell Incorporated
40 Waterview Drive
P.O. Box 1000
Shelton, CT 06484
(475) 882-4000
#######
HUBBELL INCORPORATED
Condensed Consolidated Statement of Income
(unaudited)
(in millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- --------------------------
2016 2015 2016 2015
----------- ----------- ------------- ------------
Net sales $ 854.2 $ 829.7 $ 3,505.2 $ 3,390.4
Cost of goods sold 595.6 562.8 2,404.5 2,298.6
----------- ----------- ------------- ------------
Gross profit 258.6 266.9 1,100.7 1,091.8
Selling & administrative
expenses 150.8 155.0 622.9 617.2
----------- ----------- ------------- ------------
Operating income 107.8 111.9 477.8 474.6
Operating income as a % of Net
sales 12.6 % 13.5 % 13.6 % 14.0 %
Interest expense, net (11.0 ) (7.8 ) (42.9 ) (30.5 )
Other income (expense), net 1.1 (13.4 ) (4.5 ) (25.5 )
----------- ----------- ------------- ------------
Total other expense, net (9.9 ) (21.2 ) (47.4 ) (56.0 )
Income before income taxes 97.9 90.7 430.4 418.6
Provision for income taxes 32.2 28.0 132.6 136.5
----------- ----------- ------------- ------------
Net income 65.7 62.7 297.8 282.1
Less: Net income attributable
to noncontrolling interest 1.3 1.2 4.8 4.8
----------- ----------- ------------- ------------
Net income attributable to
Hubbell $ 64.4 $ 61.5 $ 293.0 $ 277.3
----------- ----------- ------------- ------------
Earnings Per Share:
Basic $ 1.16 $ 1.06 $ 5.26 $ 4.79
Diluted $ 1.16 $ 1.06 $ 5.24 $ 4.77
Cash dividends per common
share $ 0.70 $ 0.63 $ 2.59 $ 2.31
HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(unaudited)
(in millions)
December December
31, 2016 31, 2015
--------------- --------------
ASSETS
Cash and cash equivalents $ 437.6 $ 343.5
Short-term investments 11.2 12.2
Accounts receivable, net 530.0 466.6
Inventories, net 532.4 540.0
Other current assets 40.1 25.5
--------------- --------------
TOTAL CURRENT ASSETS 1,551.3 1,387.8
Property, plant and equipment, net 439.8 419.7
Investments 56.4 49.5
Goodwill 991.0 928.5
Intangible assets, net 431.5 372.2
Other long-term assets 55.0 51.0
--------------- --------------
TOTAL ASSETS $ 3,525.0 $ 3,208.7
--------------- --------------
LIABILITIES AND EQUITY
Short-term debt $ 3.2 $ 48.2
Accounts payable 291.6 289.5
Accrued salaries, wages and employee benefits 82.8 75.3
Accrued insurance 55.8 50.4
Other accrued liabilities 156.2 139.7
--------------- --------------
TOTAL CURRENT LIABILITIES 589.6 603.1
Long-term debt 990.5 595.9
Other non-current liabilities 341.7 260.7
--------------- --------------
TOTAL LIABILITIES 1,921.8 1,459.7
Hubbell Shareholders' Equity 1,592.8 1,740.6
Noncontrolling interest 10.4 8.4
--------------- --------------
TOTAL EQUITY 1,603.2 1,749.0
--------------- --------------
TOTAL LIABILITIES AND EQUITY $ 3,525.0 $ 3,208.7
--------------- --------------
HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in millions)
Twelve Months Ended
December 31,
----------------------
2016 2015
----------- ----------
Cash Flows From Operating Activities
Net income attributable to Hubbell $ 293.0 $ 277.3
Depreciation and amortization 92.3 85.2
Stock-based compensation expense 22.3 17.0
Deferred income taxes 12.7 (4.5 )
Changes in working capital (10.1 ) (32.3 )
Contributions to defined benefit pension plans (18.0 ) (22.6 )
Other, net 6.0 11.0
----------- ----------
Net cash provided by operating activities 398.2 331.1
----------- ----------
Cash Flows From Investing Activities
Capital expenditures (67.2 ) (77.1 )
Acquisition of businesses, net of cash acquired (173.4 ) (163.4 )
Net change in investments (6.7 ) (10.7 )
Other, net 17.3 2.0
----------- ----------
Net cash used in investing activities (230.0 ) (249.2 )
----------- ----------
Cash Flows From Financing Activities
Long-term debt borrowings, net 397.0 -
Short-term debt borrowings, net (50.3 ) 46.8
Payment of dividends (144.0 ) (133.7 )
Repurchase of common shares (246.8 ) (79.1 )
Share reclassification payments - (200.7 )
Other, net (2.7 ) (4.4 )
----------- ----------
Net cash used in financing activities (46.8 ) (371.1 )
----------- ----------
Effect of foreign exchange rate changes on cash and cash
equivalents (27.3 ) (21.2 )
----------- ----------
Increase (decrease) in cash and cash equivalents 94.1 (310.4 )
Cash and cash equivalents
Beginning of period 343.5 653.9
----------- ----------
End of period $ 437.6 $ 343.5
----------- ----------
HUBBELL INCORPORATED
Restructuring and Related Costs Included in Consolidated Results
(unaudited)
(in millions, except per share amounts)
Three Months Ended December 31,
----------------------------------------------------------
2016 2015 2016 2015 2016 2015
------------------- ------------------- ------------------
Cost of goods
sold S&A expense Total
------------------- ------------------- ------------------
Restructuring costs $ 19.2 $ 2.2 $ 1.9 $ 1.9 $ 21.1 $ 4.1
Restructuring related
costs (benefit) 0.8 1.1 (5.9 ) 1.5 (5.1 ) 2.6
------------------- ------------------- ------------------
Restructuring and
related costs (non-
GAAP measure) ((1)) $ 20.0 $ 3.3 $ (4.0 ) $ 3.4 $ 16.0 $ 6.7
------------------- ------------------- ------------------
Twelve Months Ended December 31,
----------------------------------------------------------
2016 2015 2016 2015 2016 2015
------------------- ------------------- ------------------
Cost of goods
sold S&A expense Total
------------------- ------------------- ------------------
Restructuring costs $ 27.5 $ 15.3 $ 7.5 $ 8.3 $ 35.0 $ 23.6
Restructuring related
costs (benefit) 2.6 8.4 (2.6 ) 6.9 - 15.3
------------ --- ------------ --- ------------------
Restructuring and
related costs (non-
GAAP measure)( (1)) $ 30.1 $ 23.7 $ 4.9 $ 15.2 $ 35.0 $ 38.9
------------------- ------------------- ------------------
Restructuring related costs in S&A expense for the three months and twelve
months ended December 31, 2016 include a $7.2 million gain on the sale of a
property associated with a restructuring action.
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2016 2015 2016 2015
---------- ---------- ---------- ----------
Restructuring and related costs
included in Cost of goods sold
Electrical $ 19.8 $ 3.2 $ 29.5 $ 20.7
Power 0.2 0.1 0.6 3.0
---------- ---------- ---------- ----------
Total $ 20.0 $ 3.3 $ 30.1 $ 23.7
---------- ---------- ---------- ----------
Restructuring and related costs
(benefit) included in Selling &
administrative expenses
Electrical $ (4.7 ) $ 2.9 $ 2.6 $ 12.1
Power 0.7 0.5 2.3 3.1
---------- ---------- ---------- ----------
Total $ (4.0 ) $ 3.4 $ 4.9 $ 15.2
---------- ---------- ---------- ----------
Impact on income before income taxes $ 16.0 $ 6.7 $ 35.0 $ 38.9
Impact on Net income available to
Hubbell common shareholders 10.9 4.5 23.8 26.3
Impact on Diluted earnings per share $ 0.19 $ 0.08 $ 0.42 $ 0.45
HUBBELL INCORPORATED
Earnings Per Share Calculation
(unaudited)
(in millions, except per share amounts)
Three Months Ended December Twelve Months Ended December
31, 31,
------------------------------ -------------------------------
2016 2015 Change 2016 2015 Change
---------- ---------- -------- ----------- ----------- -------
Net income
attributable to
Hubbell (GAAP
measure) $ 64.4 $ 61.5 5 % $ 293.0 $ 277.3 6 %
Restructuring and
related costs, net
of tax 10.9 4.5 23.8 26.3
Reclassification
costs, net of tax - 10.0 - 17.4
---------- ---------- ----------- -----------
Adjusted Net
Income( (1)) $ 75.3 $ 76.0 (1 )% $ 316.8 $ 321.0 (1 )%
---------- ---------- ----------- -----------
Numerator:
Net income
attributable to
Hubbell (GAAP
measure) $ 64.4 $ 61.5 $ 293.0 $ 277.3
Less: Earnings
allocated to
participating
securities (0.2 ) (0.2 ) (0.9 ) (0.7 )
---------- ---------- ----------- -----------
Net income
available to
common
shareholders (GAAP
measure) [a] $ 64.2 $ 61.3 5 % $ 292.1 $ 276.6 6 %
Adjusted Net
Income ((1)) $ 75.3 $ 76.0 $ 316.8 $ 321.0
Less: Earnings
allocated to
participating
securities (0.2 ) (0.2 ) (1.0 ) (0.8 )
---------- ---------- ----------- -----------
Adjusted net
income available
to common
shareholders [b] $ 75.1 $ 75.8 (1 )% $ 315.8 $ 320.2 (1 )%
Denominator:
Average number of
common shares
outstanding [c] 55.3 57.7 55.5 57.7
Potential dilutive
shares 0.3 0.3 0.2 0.3
---------- ---------- ----------- -----------
Average number of
diluted shares
outstanding [d] 55.6 58.0 55.7 58.0
---------- ---------- ----------- -----------
Earnings per share
(GAAP measure):
Basic [a] / [c] $ 1.16 $ 1.06 $ 5.26 $ 4.79
Diluted [a] / [d] $ 1.16 $ 1.06 9 % $ 5.24 $ 4.77 10 %
Adjusted earnings
per diluted share
((1)) [b] / [d] $ 1.35 $ 1.31 3 % $ 5.66 $ 5.52 3 %
Full Year 2016 Full Year 2017
---------------- ------------------
Earnings Per Diluted Share (GAAP measure) $5.24 $5.60 - $5.80
Restructuring and related costs $0.42 $0.25
---------------- ------------------
Adjusted Earnings Per Diluted Share ( (1)) $5.66 $5.85 - $6.05
HUBBELL INCORPORATED
Segment Information
(unaudited)
(in millions)
Hubbell Three Months Ended December
Incorporated 31, Twelve Months Ended December 31,
-------------------------------- -----------------------------------
2016 2015 Change 2016 2015 Change
----------- ----------- -------- ------------- ------------- -------
Net Sales [a] $ 854.2 $ 829.7 3 % $ 3,505.2 $ 3,390.4 3 %
Operating
Income
GAAP measure
[b] $ 107.8 $ 111.9 (4 )% $ 477.8 $ 474.6 1 %
Restructuring
and related
costs 16.0 6.7 35.0 38.9
----------- ----------- ------------- -------------
Adjusted
operating
income ((1))
[c] $ 123.8 $ 118.6 4 % $ 512.8 $ 513.5 - %
----------- ----------- ------------- -------------
Operating
margin
GAAP measure -90 -40
[b] / [a] 12.6 % 13.5 % bps 13.6 % 14.0 % bps
Adjusted
operating
margin ((1)) +20 -50
[c] / [a] 14.5 % 14.3 % bps 14.6 % 15.1 % bps
Electrical Three Months Ended December
segment 31, Twelve Months Ended December 31,
-------------------------------- -----------------------------------
2016 2015 Change 2016 2015 Change
----------- ----------- -------- ------------- ------------- -------
Net Sales [a] $ 601.5 $ 586.0 3 % $ 2,460.2 $ 2,388.3 3 %
Operating
Income
GAAP measure
[b] $ 54.0 $ 62.4 (13 )% $ 267.4 $ 279.0 (4 )%
Restructuring
and related
costs 15.1 6.1 32.1 32.8
----------- ----------- ------------- -------------
Adjusted
operating
income ((1))
[c] $ 69.1 $ 68.5 1 % $ 299.5 $ 311.8 (4 )%
----------- ----------- ------------- -------------
Operating
margin
GAAP measure -160 -80
[b] / [a] 9.0 % 10.6 % bps 10.9 % 11.7 % bps
Adjusted
operating
margin ((1)) -20 -90
[c] / [a] 11.5 % 11.7 % bps 12.2 % 13.1 % bps
Three Months Ended December
Power segment 31, Twelve Months Ended December 31,
-------------------------------- -----------------------------------
2016 2015 Change 2016 2015 Change
----------- ----------- -------- ------------- ------------- -------
Net Sales [a] $ 252.7 $ 243.7 4 % $ 1,045.0 $ 1,002.1 4 %
Operating
Income
GAAP measure
[b] $ 53.8 $ 49.5 9 % $ 210.4 $ 195.6 8 %
Restructuring
and related
costs 0.9 0.6 2.9 6.1
----------- ----------- ------------- -------------
Adjusted
operating
income ((1))
[c] $ 54.7 $ 50.1 9 % $ 213.3 $ 201.7 6 %
----------- ----------- ------------- -------------
Operating
margin
GAAP measure +100 +60
[b] / [a] 21.3 % 20.3 % bps 20.1 % 19.5 % bps
Adjusted
operating
margin ((1)) +100 +30
[c] / [a] 21.6 % 20.6 % bps 20.4 % 20.1 % bps
HUBBELL INCORPORATED
Non-GAAP Financial Measures
(unaudited)
(in millions)
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
December 31, 2016 December 31, 2015
--------------------- --------------------
Total Debt $ 993.7 $ 644.1
Total Hubbell Shareholders' Equity 1,592.8 1,740.6
--------------------- --------------------
Total Capital $ 2,586.5 $ 2,384.7
--------------------- --------------------
Total Debt to Total Capital 38 % 27 %
Total Debt $ 993.7 $ 644.1
Less: Cash and investments 505.2 405.2
--------------------- --------------------
Net Debt ((2)) $ 488.5 $ 238.9
--------------------- --------------------
Net Debt to Total Capital ((2)) 19 % 10 %
Free Cash Flow Reconciliation
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- ----------------------
2016 2015 2016 2015
----------- ----------- ----------- ----------
Net cash provided by operating
activities $ 137.5 $ 138.0 $ 398.2 $ 331.1
Less: Capital Expenditures (21.4 ) (24.8 ) (67.2 ) (77.1 )
----------- ----------- ----------- ----------
Free cash flow ((3)) $ 116.1 $ 113.2 $ 331.0 $ 254.0
----------- ----------- ----------- ----------
HUBBELL INCORPORATED
Footnotes
Non-GAAP Information
((1) )In order to provide a comparison that we believe provides investors with
useful information regarding our underlying performance from period to period
and to allow investors to assess the impact of restructuring activities and
business transformation initiatives on our results of operations, the Company
refers to adjusted operating income and adjusted operating margin, each of which
excludes restructuring and related costs. The Company also refers to adjusted
net income, adjusted net income available to common shareholders, adjusted
earnings per diluted share, and the adjusted effective tax rate, each of which
exclude restructuring and related costs as well as the costs associated with the
2015 reclassification of the Company's common stock to eliminate its two-class
structure (the "reclassification costs"). Management uses these non-GAAP
measures when assessing the performance of the business.
Restructuring costs support our cost reduction efforts involving the
consolidation of manufacturing and distribution facilities, workforce reductions
and the sale or exit of business units we determine to be non-strategic and is a
GAAP measure. Restructuring costs may include severance and employee benefits,
asset impairments, as well as facility closure, contract termination and certain
pension costs that are directly related to restructuring actions. Restructuring-
related costs are costs associated with our business transformation initiatives,
including the consolidation of back-office functions and streamlining our
processes, and certain other costs and gains associated with restructuring
actions. We refer to these costs on a combined basis as "restructuring and
related costs", which is a non-GAAP measure.
Each of the adjusted operating measures, which exclude the impact of
restructuring and related as well as reclassification costs, are non-GAAP
measures. Reconciliations of each of these non-GAAP measures to the most
directly comparable GAAP measure can be found in the tables within this press
release.
((2)) 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.
((3) )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.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Hubbell Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 31.01.2017 - 13:22 Uhr
Sprache: Deutsch
News-ID 521012
Anzahl Zeichen: 42597
contact information:
Town:
Shelton
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 169 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Hubbell Reports Fourth Quarter and Full Year Results; Fourth Quarter Net Sales of $854 Million and Earnings Per Diluted Share of $1.16, Including $0.19 of Restructuring and Related Costs"
steht unter der journalistisch-redaktionellen Verantwortung von
Hubbell Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
