Delaware | 94-1658138 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging Growth Company | o |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Earnings Press Release, dated October 24, 2017, issued by Anixter International Inc. |
ANIXTER INTERNATIONAL INC. | ||
October 24, 2017 | By: | /s/ Theodore A. Dosch |
Theodore A. Dosch | ||
Executive Vice President - Finance | ||
and Chief Financial Officer |
Exhibit No. | Description |
99.1 |
Exhibit 99.1 | |
• | Record third quarter sales of $2.0 billion, up 3.1% YOY |
• | Strong growth in UPS segment, up 11.0%, 10.5% on an organic basis |
• | Hurricanes and earthquakes negatively impacted sales |
• | $19.9 million favorable impact from the higher average price of copper |
• | $11.1 million favorable impact from the fluctuation in foreign currencies |
• | Debt-to-total capital ratio improved to 46.6% from 51.6% at the end of 2016 |
• | Debt-to-adjusted EBITDA ratio improved to 3.2 times from 3.5 times at the end of 2016 |
• | Weighted average cost of borrowed capital of 5.4% compares to 4.7% in the prior year quarter |
• | $685.9 million available under revolving lines of credit and secured accounts receivable and inventory facilities |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In millions, except per share amounts) | September 29, 2017 | September 30, 2016 | Percent Change | September 29, 2017 | September 30, 2016 | Percent Change | |||||||||||||||
Net Sales | $ | 2,016.4 | $ | 1,956.3 | 3 | % | $ | 5,913.6 | $ | 5,728.2 | 3 | % | |||||||||
Operating Income | $ | 81.0 | $ | 87.3 | (7 | )% | $ | 232.7 | $ | 204.3 | 14 | % | |||||||||
Net Income | $ | 37.6 | $ | 40.3 | (7 | )% | $ | 108.6 | $ | 84.3 | 29 | % | |||||||||
Diluted Earnings Per Share | $ | 1.11 | $ | 1.20 | (8 | )% | $ | 3.20 | $ | 2.52 | 27 | % | |||||||||
Diluted Weighted Shares | 34.0 | 33.6 | 1 | % | 34.0 | 33.5 | 1 | % | |||||||||||||
Ted Dosch | Lisa M. Gregory, CFA |
EVP - Finance & Chief Financial Officer | VP - Investor Relations |
(224) 521-4281 | (224) 521-8895 |
ANIXTER INTERNATIONAL INC. | |||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 29, 2017 | September 30, 2016 | September 29, 2017 | September 30, 2016 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Net sales | $ | 2,016.4 | $ | 1,956.3 | $ | 5,913.6 | $ | 5,728.2 | |||||||
Cost of goods sold | 1,619.2 | 1,559.6 | 4,741.0 | 4,567.3 | |||||||||||
Gross profit | 397.2 | 396.7 | 1,172.6 | 1,160.9 | |||||||||||
Operating expenses | 316.2 | 309.4 | 939.9 | 956.6 | |||||||||||
Operating income | 81.0 | 87.3 | 232.7 | 204.3 | |||||||||||
Other expense: | |||||||||||||||
Interest expense | (18.9 | ) | (19.8 | ) | (55.7 | ) | (59.7 | ) | |||||||
Other, net | 0.3 | (2.1 | ) | (0.9 | ) | (5.7 | ) | ||||||||
Income from continuing operations before income taxes | 62.4 | 65.4 | 176.1 | 138.9 | |||||||||||
Income tax expense from continuing operations | 24.8 | 25.1 | 67.5 | 54.6 | |||||||||||
Net income from continuing operations | 37.6 | 40.3 | 108.6 | 84.3 | |||||||||||
Income (loss) from discontinued operations before income taxes | — | 0.2 | — | (1.0 | ) | ||||||||||
Income tax expense (benefit) from discontinued operations | — | 0.1 | — | (0.4 | ) | ||||||||||
Net income (loss) from discontinued operations | — | 0.1 | — | (0.6 | ) | ||||||||||
Net income | $ | 37.6 | $ | 40.4 | $ | 108.6 | $ | 83.7 | |||||||
Income (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 1.12 | $ | 1.21 | $ | 3.24 | $ | 2.53 | |||||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||
Net Income | $ | 1.12 | $ | 1.21 | $ | 3.24 | $ | 2.51 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 1.11 | $ | 1.20 | $ | 3.20 | $ | 2.52 | |||||||
Discontinued operations | — | 0.01 | — | (0.02 | ) | ||||||||||
Net Income | $ | 1.11 | $ | 1.21 | $ | 3.20 | $ | 2.50 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 33.6 | 33.4 | 33.6 | 33.4 | |||||||||||
Diluted | 34.0 | 33.6 | 34.0 | 33.5 | |||||||||||
Reportable Segments | |||||||||||||||
Net sales: | |||||||||||||||
Network & Security Solutions | $ | 1,049.2 | $ | 1,049.9 | $ | 3,063.5 | $ | 3,043.7 | |||||||
Electrical & Electronic Solutions | 555.0 | 535.1 | 1,643.9 | 1,596.2 | |||||||||||
Utility Power Solutions | 412.2 | 371.3 | 1,206.2 | 1,088.3 | |||||||||||
$ | 2,016.4 | $ | 1,956.3 | $ | 5,913.6 | $ | 5,728.2 | ||||||||
Operating income: | |||||||||||||||
Network & Security Solutions | $ | 67.5 | $ | 74.9 | $ | 194.2 | $ | 198.6 | |||||||
Electrical & Electronic Solutions | 26.8 | 28.7 | 84.3 | 75.1 | |||||||||||
Utility Power Solutions | 19.8 | 15.8 | 57.3 | 42.1 | |||||||||||
Corporate | (33.1 | ) | (32.1 | ) | (103.1 | ) | (111.5 | ) | |||||||
$ | 81.0 | $ | 87.3 | $ | 232.7 | $ | 204.3 | ||||||||
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
September 29, 2017 | December 30, 2016 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 76.9 | $ | 115.1 | |||
Accounts receivable, net | 1,482.5 | 1,353.2 | |||||
Inventories | 1,231.9 | 1,178.3 | |||||
Other current assets | 46.2 | 41.9 | |||||
Total current assets | 2,837.5 | 2,688.5 | |||||
Property and equipment, net | 150.9 | 140.3 | |||||
Goodwill | 779.3 | 764.6 | |||||
Intangible assets, net | 394.4 | 415.4 | |||||
Other assets | 90.4 | 84.8 | |||||
Total assets | $ | 4,252.5 | $ | 4,093.6 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,107.3 | $ | 1,006.0 | |||
Accrued expenses | 264.4 | 257.9 | |||||
Total current liabilities | 1,371.7 | 1,263.9 | |||||
Long-term debt | 1,270.1 | 1,378.8 | |||||
Other liabilities | 154.4 | 158.7 | |||||
Total liabilities | 2,796.2 | 2,801.4 | |||||
Total stockholders' equity | 1,456.3 | 1,292.2 | |||||
Total liabilities and stockholders' equity | $ | 4,252.5 | $ | 4,093.6 |
ANIXTER INTERNATIONAL INC. | |||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Nine Months Ended | |||||||
September 29, 2017 | September 30, 2016 | ||||||
(In millions) | |||||||
Operating activities: | |||||||
Net income | $ | 108.6 | $ | 83.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 21.5 | 21.1 | |||||
Amortization of intangible assets | 27.1 | 28.6 | |||||
Stock-based compensation | 13.3 | 12.4 | |||||
Deferred income taxes | 1.3 | 3.0 | |||||
Accretion of debt discount | 1.7 | 1.6 | |||||
Amortization of deferred financing costs | 1.6 | 1.8 | |||||
Pension plan contributions | (14.8 | ) | (16.8 | ) | |||
Pension plan expenses | 7.9 | 18.1 | |||||
Changes in current assets and liabilities, net | (53.9 | ) | 93.4 | ||||
Other, net | (4.2 | ) | (8.3 | ) | |||
Net cash provided by operating activities | 110.1 | 238.6 | |||||
Investing activities: | |||||||
Capital expenditures, net | (30.9 | ) | (24.9 | ) | |||
Other, net | — | (4.7 | ) | ||||
Net cash used in investing activities | (30.9 | ) | (29.6 | ) | |||
Financing activities: | |||||||
Proceeds from borrowings | 1,324.2 | 710.2 | |||||
Repayments of borrowings | (1,370.9 | ) | (879.2 | ) | |||
Repayments of Canadian term loan | (70.9 | ) | (58.5 | ) | |||
Proceeds from stock options exercised | 3.5 | 0.2 | |||||
Other, net | (0.2 | ) | (0.6 | ) | |||
Net cash used in financing activities | (114.3 | ) | (227.9 | ) | |||
Decrease in cash and cash equivalents | (35.1 | ) | (18.9 | ) | |||
Effect of exchange rate changes on cash balances | (3.1 | ) | (7.3 | ) | |||
Cash and cash equivalents at beginning of period | 115.1 | 151.3 | |||||
Cash and cash equivalents at end of period | $ | 76.9 | $ | 125.1 |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) | ||||||||||||||||||||||||
Third Quarter 2017 Sales Growth Trends | ||||||||||||||||||||||||
Q3 2017 | Q3 2016 | |||||||||||||||||||||||
(In millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Reported | Organic Growth/ (Decline) | ||||||||||||||||||
Network & Security Solutions | ||||||||||||||||||||||||
North America | $ | 818.5 | $ | (2.8 | ) | $ | — | $ | 815.7 | $ | 845.3 | (3.5 | )% | |||||||||||
EMEA | 88.9 | (1.9 | ) | — | 87.0 | 82.8 | 5.1 | % | ||||||||||||||||
Emerging Markets | 141.8 | (1.5 | ) | — | 140.3 | 121.8 | 15.2 | % | ||||||||||||||||
NSS | $ | 1,049.2 | $ | (6.2 | ) | $ | — | $ | 1,043.0 | $ | 1,049.9 | (0.7 | )% | |||||||||||
Electrical & Electronic Solutions | ||||||||||||||||||||||||
North America | $ | 433.8 | $ | (2.5 | ) | $ | (15.7 | ) | $ | 415.6 | $ | 432.8 | (4.0 | )% | ||||||||||
EMEA | 67.1 | (0.3 | ) | (2.8 | ) | 64.0 | 59.3 | 8.1 | % | |||||||||||||||
Emerging Markets | 54.1 | (0.5 | ) | (1.1 | ) | 52.5 | 43.0 | 21.8 | % | |||||||||||||||
EES | $ | 555.0 | $ | (3.3 | ) | $ | (19.6 | ) | $ | 532.1 | $ | 535.1 | (0.6 | )% | ||||||||||
Utility Power Solutions | ||||||||||||||||||||||||
North America | $ | 412.2 | $ | (1.6 | ) | $ | (0.3 | ) | $ | 410.3 | $ | 371.3 | 10.5 | % | ||||||||||
UPS | $ | 412.2 | $ | (1.6 | ) | $ | (0.3 | ) | $ | 410.3 | $ | 371.3 | 10.5 | % | ||||||||||
Total | $ | 2,016.4 | $ | (11.1 | ) | $ | (19.9 | ) | $ | 1,985.4 | $ | 1,956.3 | 1.5 | % | ||||||||||
Geographic Sales | ||||||||||||||||||||||||
North America | $ | 1,664.5 | $ | (6.9 | ) | $ | (16.0 | ) | $ | 1,641.6 | $ | 1,649.4 | (0.5 | )% | ||||||||||
EMEA | 156.0 | (2.2 | ) | (2.8 | ) | 151.0 | 142.1 | 6.3 | % | |||||||||||||||
Emerging Markets | 195.9 | (2.0 | ) | (1.1 | ) | 192.8 | 164.8 | 17.0 | % | |||||||||||||||
Total | $ | 2,016.4 | $ | (11.1 | ) | $ | (19.9 | ) | $ | 1,985.4 | $ | 1,956.3 | 1.5 | % | ||||||||||
Note: There were 63 billing days in the third quarter of 2017 and 2016. Adjustment for billing days unnecessary. |
ANIXTER INTERNATIONAL INC. | |||||||||||||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) | |||||||||||||||||||||||||||||||
September Year-to-Date 2017 Sales Growth Trends | |||||||||||||||||||||||||||||||
YTD 2017 | YTD 2016 | ||||||||||||||||||||||||||||||
(In millions) | As Reported | Foreign Exchange Impact | Copper Impact | As Adjusted | As Reported | Organic Growth/ (Decline) | Adjusted 2016 for Extra Day | Adjusted Per Day Organic Growth/(Decline) | |||||||||||||||||||||||
Network & Security Solutions | |||||||||||||||||||||||||||||||
North America | $ | 2,403.6 | $ | (1.6 | ) | $ | — | $ | 2,402.0 | $ | 2,432.0 | (1.2 | )% | $ | 2,419.3 | (0.7 | )% | ||||||||||||||
EMEA | 268.3 | 5.1 | — | 273.4 | 250.0 | 9.4 | % | 248.7 | 9.9 | % | |||||||||||||||||||||
Emerging Markets | 391.6 | 1.6 | — | 393.2 | 361.7 | 8.7 | % | 359.8 | 9.3 | % | |||||||||||||||||||||
NSS | $ | 3,063.5 | $ | 5.1 | $ | — | $ | 3,068.6 | $ | 3,043.7 | 0.8 | % | $ | 3,027.8 | 1.3 | % | |||||||||||||||
Electrical & Electronic Solutions | |||||||||||||||||||||||||||||||
North America | $ | 1,291.6 | $ | (1.3 | ) | $ | (37.4 | ) | $ | 1,252.9 | $ | 1,292.3 | (3.1 | )% | $ | 1,285.6 | (2.5 | )% | |||||||||||||
EMEA | 193.4 | 11.6 | (8.0 | ) | 197.0 | 176.2 | 11.8 | % | 175.3 | 12.4 | % | ||||||||||||||||||||
Emerging Markets | 158.9 | 1.1 | (2.5 | ) | 157.5 | 127.7 | 23.3 | % | 127.0 | 24.0 | % | ||||||||||||||||||||
EES | $ | 1,643.9 | $ | 11.4 | $ | (47.9 | ) | $ | 1,607.4 | $ | 1,596.2 | 0.7 | % | $ | 1,587.9 | 1.2 | % | ||||||||||||||
Utility Power Solutions | |||||||||||||||||||||||||||||||
North America | $ | 1,206.2 | $ | (1.1 | ) | $ | (0.7 | ) | $ | 1,204.4 | $ | 1,088.3 | 10.7 | % | $ | 1,082.6 | 11.2 | % | |||||||||||||
UPS | $ | 1,206.2 | $ | (1.1 | ) | $ | (0.7 | ) | $ | 1,204.4 | $ | 1,088.3 | 10.7 | % | $ | 1,082.6 | 11.2 | % | |||||||||||||
Total | $ | 5,913.6 | $ | 15.4 | $ | (48.6 | ) | $ | 5,880.4 | $ | 5,728.2 | 2.7 | % | $ | 5,698.3 | 3.2 | % | ||||||||||||||
Geographic Sales | |||||||||||||||||||||||||||||||
North America | $ | 4,901.4 | $ | (4.0 | ) | $ | (38.1 | ) | $ | 4,859.3 | $ | 4,812.6 | 1.0 | % | $ | 4,787.5 | 1.5 | % | |||||||||||||
EMEA | 461.7 | 16.7 | (8.0 | ) | 470.4 | 426.2 | 10.4 | % | 424.0 | 11.0 | % | ||||||||||||||||||||
Emerging Markets | 550.5 | 2.7 | (2.5 | ) | 550.7 | 489.4 | 12.5 | % | 486.8 | 13.1 | % | ||||||||||||||||||||
Total | $ | 5,913.6 | $ | 15.4 | $ | (48.6 | ) | $ | 5,880.4 | $ | 5,728.2 | 2.7 | % | $ | 5,698.3 | 3.2 | % | ||||||||||||||
Note: There were 191 billing days September YTD in 2017 compared to 192 billing days September YTD in 2016. |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||
(In millions, except per share amounts) | Positive (Negative) impact | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 29, 2017 | September 30, 2016 | September 29, 2017 | September 30, 2016 | |||||||||||||
Continuing operations | ||||||||||||||||
Items impacting comparability of results: | ||||||||||||||||
Items impacting operating expense and operating income: | ||||||||||||||||
Amortization of intangible assets | $ | (9.1 | ) | $ | (9.4 | ) | $ | (27.1 | ) | $ | (28.6 | ) | ||||
UK pension settlement | — | — | — | (9.6 | ) | |||||||||||
Restructuring charge | — | 0.2 | — | (5.4 | ) | |||||||||||
Acquisition and integration costs | (0.8 | ) | (0.7 | ) | (0.8 | ) | (4.3 | ) | ||||||||
Latin America bad debt provision | — | — | — | (7.6 | ) | |||||||||||
Total of items impacting operating expense and operating income | $ | (9.9 | ) | $ | (9.9 | ) | $ | (27.9 | ) | $ | (55.5 | ) | ||||
Total of items impacting pre-tax income | $ | (9.9 | ) | $ | (9.9 | ) | $ | (27.9 | ) | $ | (55.5 | ) | ||||
Items impacting income taxes: | ||||||||||||||||
Tax impact of items impacting pre-tax income above | $ | 3.3 | $ | 1.8 | $ | 9.1 | $ | 16.6 | ||||||||
Tax benefits related to prior year tax positions | — | 2.1 | — | 2.1 | ||||||||||||
Total of items impacting income taxes | $ | 3.3 | $ | 3.9 | $ | 9.1 | $ | 18.7 | ||||||||
Net income impact of these items | $ | (6.6 | ) | $ | (6.0 | ) | $ | (18.8 | ) | $ | (36.8 | ) | ||||
Diluted EPS impact of these items | $ | (0.19 | ) | $ | (0.18 | ) | $ | (0.55 | ) | $ | (1.10 | ) | ||||
U.S. GAAP to Non-GAAP Net Income and EPS Reconciliation for continuing operations: | ||||||||||||||||
Net income from continuing operations – U.S. GAAP | $ | 37.6 | $ | 40.3 | $ | 108.6 | $ | 84.3 | ||||||||
Items impacting net income from continuing operations | 6.6 | 6.0 | 18.8 | 36.8 | ||||||||||||
Net income from continuing operations – Non-GAAP | $ | 44.2 | $ | 46.3 | $ | 127.4 | $ | 121.1 | ||||||||
Diluted EPS – U.S. GAAP | $ | 1.11 | $ | 1.20 | $ | 3.20 | $ | 2.52 | ||||||||
Diluted EPS impact of these items | 0.19 | 0.18 | 0.55 | 1.10 | ||||||||||||
Diluted EPS – Non-GAAP | $ | 1.30 | $ | 1.38 | $ | 3.75 | $ | 3.62 | ||||||||
Items Impacting Comparability of Operating Income by Segment | Three Months Ended September 29, 2017 | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - U.S. GAAP | $ | 67.5 | $ | 26.8 | $ | 19.8 | $ | (33.1 | ) | $ | 81.0 | |||||||||
Operating margin - U.S. GAAP | 6.4 | % | 4.8 | % | 4.8 | % | nm | 4.0 | % | |||||||||||
Total of items impacting operating income | $ | 3.6 | $ | 2.2 | $ | 3.3 | $ | 0.8 | $ | 9.9 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 71.1 | $ | 29.0 | $ | 23.1 | $ | (32.3 | ) | $ | 90.9 | |||||||||
Adjusted operating margin - Non-GAAP | 6.8 | % | 5.2 | % | 5.6 | % | nm | 4.5 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Nine Months Ended September 29, 2017 | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - U.S. GAAP | $ | 194.2 | $ | 84.3 | $ | 57.3 | $ | (103.1 | ) | $ | 232.7 | |||||||||
Operating margin - U.S. GAAP | 6.3 | % | 5.1 | % | 4.7 | % | nm | 3.9 | % | |||||||||||
Total of items impacting operating income | $ | 10.8 | $ | 5.9 | $ | 10.0 | $ | 1.2 | $ | 27.9 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 205.0 | $ | 90.2 | $ | 67.3 | $ | (101.9 | ) | $ | 260.6 | |||||||||
Adjusted operating margin - Non-GAAP | 6.7 | % | 5.5 | % | 5.6 | % | nm | 4.4 | % | |||||||||||
nm - not meaningful |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||||||
Items Impacting Comparability of Operating Income by Segment | Three Months Ended September 30, 2016 | |||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Operating income - U.S. GAAP | $ | 74.9 | $ | 28.7 | $ | 15.8 | $ | (32.1 | ) | $ | 87.3 | |||||||||
Operating margin - U.S. GAAP | 7.1 | % | 5.4 | % | 4.3 | % | nm | 4.5 | % | |||||||||||
Total of items impacting operating income | $ | 3.2 | $ | 2.0 | $ | 4.0 | $ | 0.7 | $ | 9.9 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 78.1 | $ | 30.7 | $ | 19.8 | $ | (31.4 | ) | $ | 97.2 | |||||||||
Adjusted operating margin - Non-GAAP | 7.4 | % | 5.7 | % | 5.3 | % | nm | 5.0 | % | |||||||||||
Items Impacting Comparability of Operating Income by Segment | Nine Months Ended September 30, 2016 | |||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Operating income - U.S. GAAP | $ | 198.6 | $ | 75.1 | $ | 42.1 | $ | (111.5 | ) | $ | 204.3 | |||||||||
Operating margin - U.S. GAAP | 6.5 | % | 4.7 | % | 3.9 | % | nm | 3.6 | % | |||||||||||
Total of items impacting operating income | $ | 16.2 | $ | 11.3 | $ | 14.3 | $ | 13.7 | $ | 55.5 | ||||||||||
Adjusted operating income - Non-GAAP | $ | 214.8 | $ | 86.4 | $ | 56.4 | $ | (97.8 | ) | $ | 259.8 | |||||||||
Adjusted operating margin - Non-GAAP | 7.1 | % | 5.4 | % | 5.2 | % | nm | 4.5 | % | |||||||||||
nm - not meaningful |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||
2017 and 2016 Effective Tax Rate – U.S. GAAP and Non-GAAP | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(In millions) | September 29, 2017 | September 30, 2016 | September 29, 2017 | September 30, 2016 | ||||||||||||
Income from continuing operations before taxes – U.S. GAAP | $ | 62.4 | $ | 65.4 | $ | 176.1 | $ | 138.9 | ||||||||
Income tax expense – U.S. GAAP | $ | 24.8 | $ | 25.1 | $ | 67.5 | $ | 54.6 | ||||||||
Effective income tax rate | 39.7 | % | 38.4 | % | 38.3 | % | 39.3 | % | ||||||||
Total of items impacting pre-tax income above | $ | 9.9 | $ | 9.9 | $ | 27.9 | $ | 55.5 | ||||||||
Total of items impacting income taxes above | $ | 3.3 | $ | 3.9 | $ | 9.1 | $ | 18.7 | ||||||||
Income from continuing operations before income taxes – Non-GAAP | $ | 72.3 | $ | 75.3 | $ | 204.0 | $ | 194.4 | ||||||||
Income tax expense – Non-GAAP | $ | 28.1 | $ | 29.0 | $ | 76.6 | $ | 73.3 | ||||||||
Adjusted effective income tax rate | 38.8 | % | 38.5 | % | 37.6 | % | 37.7 | % | ||||||||
2017 EBITDA by Segment | ||||||||||||||||||||
Three Months Ended September 29, 2017 | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 67.5 | $ | 26.8 | $ | 19.8 | $ | (76.5 | ) | $ | 37.6 | |||||||||
Interest expense | — | — | — | 18.9 | 18.9 | |||||||||||||||
Income taxes | — | — | — | 24.8 | 24.8 | |||||||||||||||
Depreciation | 0.7 | 0.5 | 1.1 | 5.1 | 7.4 | |||||||||||||||
Amortization of intangible assets | 3.6 | 2.2 | 3.3 | — | 9.1 | |||||||||||||||
EBITDA | $ | 71.8 | $ | 29.5 | $ | 24.2 | $ | (27.7 | ) | $ | 97.8 | |||||||||
EBITDA leverage | nm | -1.5x | 1.5x | nm | 1.2x | |||||||||||||||
EBITDA as a % of sales | 6.8 | % | 5.3 | % | 5.9 | % | nm | 4.9 | % | |||||||||||
Foreign exchange and other non-operating (income) | $ | — | $ | — | $ | — | $ | (0.3 | ) | $ | (0.3 | ) | ||||||||
Stock-based compensation | 0.5 | 0.2 | 0.6 | 3.1 | 4.4 | |||||||||||||||
Acquisition and integration costs | — | — | — | 0.8 | 0.8 | |||||||||||||||
Adjusted EBITDA | $ | 72.3 | $ | 29.7 | $ | 24.8 | $ | (24.1 | ) | $ | 102.7 | |||||||||
Adjusted EBITDA leverage | nm | -1.5x | 1.6x | nm | -1.6x | |||||||||||||||
Adjusted EBITDA as a % of sales | 6.9 | % | 5.4 | % | 6.0 | % | nm | 5.1 | % | |||||||||||
Nine Months Ended September 29, 2017 | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 194.2 | $ | 84.3 | $ | 57.3 | $ | (227.2 | ) | $ | 108.6 | |||||||||
Interest expense | — | — | — | 55.7 | 55.7 | |||||||||||||||
Income taxes | — | — | — | 67.5 | 67.5 | |||||||||||||||
Depreciation | 2.2 | 1.7 | 3.1 | 14.5 | 21.5 | |||||||||||||||
Amortization of intangible assets | 10.8 | 6.4 | 9.9 | — | 27.1 | |||||||||||||||
EBITDA | $ | 207.2 | $ | 92.4 | $ | 70.3 | $ | (89.5 | ) | $ | 280.4 | |||||||||
EBITDA leverage | -2.0x | 3.0x | 2.0x | nm | 3.3x | |||||||||||||||
EBITDA as a % of sales | 6.8 | % | 5.6 | % | 5.8 | % | nm | 4.7 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 0.9 | $ | 0.9 | ||||||||||
Stock-based compensation | 1.5 | 1.0 | 1.2 | 9.6 | 13.3 | |||||||||||||||
Restructuring charge | — | (0.5 | ) | 0.1 | 0.4 | — | ||||||||||||||
Acquisition and integration costs | — | — | — | 0.8 | 0.8 | |||||||||||||||
Adjusted EBITDA | $ | 208.7 | $ | 92.9 | $ | 71.6 | $ | (77.8 | ) | $ | 295.4 | |||||||||
Adjusted EBITDA leverage | -4.4x | 1.2x | 1.5x | nm | 0.2x | |||||||||||||||
Adjusted EBITDA as a % of sales | 6.8 | % | 5.6 | % | 5.9 | % | nm | 5.0 | % | |||||||||||
nm - not meaningful |
ANIXTER INTERNATIONAL INC. | ||||||||||||||||||||
Financial Measures That Supplement U.S. GAAP (Unaudited) - continued | ||||||||||||||||||||
2016 EBITDA by Segment | ||||||||||||||||||||
Three Months Ended September 30, 2016 | ||||||||||||||||||||
(In millions) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net income from continuing operations | $ | 74.9 | $ | 28.7 | $ | 15.8 | $ | (79.1 | ) | $ | 40.3 | |||||||||
Interest expense | — | — | — | 19.8 | 19.8 | |||||||||||||||
Income taxes | — | — | — | 25.1 | 25.1 | |||||||||||||||
Depreciation | 0.8 | 0.5 | 1.0 | 4.8 | 7.1 | |||||||||||||||
Amortization of intangible assets | 3.3 | 2.1 | 4.0 | — | 9.4 | |||||||||||||||
EBITDA | $ | 79.0 | $ | 31.3 | $ | 20.8 | $ | (29.4 | ) | $ | 101.7 | |||||||||
EBITDA leverage | 1.8x | -0.3x | 0.4x | nm | 0.7x | |||||||||||||||
EBITDA as a % of sales | 7.5 | % | 5.8 | % | 5.6 | % | nm | 5.2 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 2.1 | $ | 2.1 | ||||||||||
Stock-based compensation | 0.2 | 0.2 | 0.3 | 3.2 | 3.9 | |||||||||||||||
Restructuring charge | (0.1 | ) | (0.1 | ) | — | — | (0.2 | ) | ||||||||||||
Acquisition and integration costs | — | — | — | 0.7 | 0.7 | |||||||||||||||
Adjusted EBITDA | $ | 79.1 | $ | 31.4 | $ | 21.1 | $ | (23.4 | ) | $ | 108.2 | |||||||||
Adjusted EBITDA leverage | -0.2x | -0.3x | 0.4x | nm | 0.3x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.5 | % | 5.9 | % | 5.7 | % | nm | 5.5 | % | |||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
NSS | EES | UPS | Corporate | Total | ||||||||||||||||
Net income from continuing operations | $ | 198.6 | $ | 75.1 | $ | 42.1 | $ | (231.5 | ) | $ | 84.3 | |||||||||
Interest expense | — | — | — | 59.7 | 59.7 | |||||||||||||||
Income taxes | — | — | — | 54.6 | 54.6 | |||||||||||||||
Depreciation | 2.5 | 2.0 | 3.1 | 13.5 | 21.1 | |||||||||||||||
Amortization of intangible assets | 10.5 | 6.3 | 11.8 | — | 28.6 | |||||||||||||||
EBITDA | $ | 211.6 | $ | 83.4 | $ | 57.0 | $ | (103.7 | ) | $ | 248.3 | |||||||||
EBITDA leverage | nm | nm | 0.4x | nm | 1.5x | |||||||||||||||
EBITDA as a % of sales | 7.0 | % | 5.2 | % | 5.2 | % | nm | 4.3 | % | |||||||||||
Foreign exchange and other non-operating expense | $ | — | $ | — | $ | — | $ | 5.7 | $ | 5.7 | ||||||||||
Stock-based compensation | 1.3 | 0.7 | 1.0 | 9.4 | 12.4 | |||||||||||||||
UK pension settlement | — | — | — | 9.6 | 9.6 | |||||||||||||||
Restructuring charge | 1.8 | 1.3 | 2.2 | 0.1 | 5.4 | |||||||||||||||
Latin America bad debt provision | 3.9 | 3.7 | — | — | 7.6 | |||||||||||||||
Acquisition and integration costs | — | — | 0.3 | 4.0 | 4.3 | |||||||||||||||
Adjusted EBITDA | $ | 218.6 | $ | 89.1 | $ | 60.5 | $ | (74.9 | ) | $ | 293.3 | |||||||||
Adjusted EBITDA leverage | nm | nm | 0.5x | nm | 1.2x | |||||||||||||||
Adjusted EBITDA as a % of sales | 7.2 | % | 5.6 | % | 5.6 | % | nm | 5.1 | % | |||||||||||
nm - not meaningful |
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