Federal Signal Raises Full-Year Outlook after Reporting Strong Third Quarter Results
Federal Signal Corporation (NYSE:FSS) reported third-quarter results for 2020, with net sales of $280 million, down from $309 million year-over-year. The operating margin decreased slightly to 12.2%, while adjusted EBITDA margin improved to 16.4%. Net income fell to $25.3 million or $0.41 per share. However, orders increased by 32% to $266 million compared to Q2 2020. The company raised its adjusted EPS outlook for the year to $1.58 to $1.66, reflecting confidence amidst challenging market conditions.
- Orders increased by $65 million, or 32%, compared to Q2 2020.
- Adjusted EBITDA margin improved to 16.4%, exceeding target range.
- Year-to-date operating cash generation increased by $21 million, or 36%.
- Net sales decreased to $280 million from $309 million year-over-year.
- Net income fell to $25.3 million compared to $28.4 million in the prior-year quarter.
- Consolidated operating income decreased to $34 million from $38.6 million in the previous year.
OAK BROOK, Ill., Oct. 29, 2020 /PRNewswire/ -- Federal Signal Corporation (NYSE:FSS) (the "Company"), a leader in environmental and safety solutions, today reported results for the third quarter ended September 30, 2020.
Third Quarter Highlights
- Net sales of
$280 million - Operating margin of
12.2% , compared to12.5% last year - Adjusted EBITDA margin of
16.4% , exceeding high end of target range, and up from16.1% last year - GAAP EPS of
$0.41 - Adjusted EPS of
$0.42 - Orders of
$266 million , up$65 million , or32% , compared to the second quarter of 2020 - Year-to-date operating cash generation of
$80 million , up$21 million , or36% , from last year $66 million of cash and$251 million of credit facility availability at end of quarter- Raising full-year adjusted EPS* outlook to a new range of
$1.58 to$1.66 , from the previous range of$1.53 to$1.65
Consolidated net sales for the third quarter were
The Company also reported adjusted net income for the third quarter of
Impressive Operational Performance Despite Ongoing Disruptions; Margin Again Exceeds Target Range, and Order Trends Improve Sequentially
"Our operating results were in line with the high expectations we had for the quarter, with seasonally-strong performance at many of our businesses. Our teams continue to demonstrate excellent operational execution in challenging circumstances, while prioritizing the safety of our employees," commented Jennifer L. Sherman, President and Chief Executive Officer. "Once again, we delivered margin performance above the upper end of our target range, achieving an adjusted EBITDA margin of
In the Environmental Solutions Group, net sales for the third quarter were
Consolidated operating income for the third quarter was
Consolidated adjusted earnings before interest, tax, depreciation and amortization ("adjusted EBITDA") for the third quarter was
Adjusted EBITDA in the Environmental Solutions Group was
Consolidated backlog at September 30, 2020 was
Financial Position Remains Strong, Providing Flexibility to Fund Growth Opportunities and Cash Returns to Stockholders
Net cash of
At September 30, 2020, consolidated debt was
"Our financial position continues to be very strong," said Sherman. "It provides us with flexibility to pursue strategic acquisitions, invest in organic growth initiatives, and fund cash returns to stockholders."
The Company funded dividends of
Outlook
"Our track record of solid execution during these challenging times and the continued strength of our backlog provide us with confidence in the year," noted Sherman. "As a result, we are raising our 2020 adjusted EPS* outlook to a new range of
CONFERENCE CALL
Federal Signal will host its third quarter conference call on Thursday, October 29, 2020 at 10:00 a.m. Eastern Time. The call will last approximately one hour. The call may be accessed over the internet through Federal Signal's website at www.federalsignal.com or by dialing phone number 1-877-705-6003 and entering the pin number 13712051. A replay will be available on Federal Signal's website shortly after the call.
About Federal Signal
Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer and supplier of products and total solutions that serve municipal, governmental, industrial and commercial customers. Headquartered in Oak Brook, Ill., with manufacturing facilities worldwide, the Company operates two groups: Environmental Solutions and Safety and Security Systems. For more information on Federal Signal, visit: www.federalsignal.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: direct and indirect impacts of the coronavirus pandemic and the associated government response, economic conditions in various regions, product and price competition, supply chain disruptions, work stoppages, availability and pricing of raw materials, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, foreign currency exchange rate changes, interest rate changes, increased legal expenses and litigation results, legal and regulatory developments and other risks and uncertainties described in filings with the Securities and Exchange Commission.
* Adjusted earnings per share ("EPS") is a non-GAAP measure, which includes certain adjustments to reported GAAP net income and diluted EPS. When reporting adjusted EPS in 2020, we have made, and would expect to continue to make, certain adjustments to exclude the impact of acquisition and integration-related expenses, pension-related charges, restructuring activity, coronavirus-related expenses and purchase accounting effects, where applicable. In prior years, we have also made adjustments to GAAP net income and diluted EPS for hearing loss settlement charges and special tax items. Should any similar items occur in 2020, we would also expect to exclude them from the determination of adjusted EPS. However, because of the underlying uncertainty in quantifying amounts which may not yet be known, a reconciliation of our Adjusted EPS outlook to the most applicable GAAP measure is excluded based on the unreasonable efforts exception in Item 10(e)(1)(i)(B).
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(in millions, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net sales | $ | 279.8 | $ | 308.8 | $ | 836.0 | $ | 906.9 | |||||||
Cost of sales | 207.2 | 226.8 | 618.3 | 665.6 | |||||||||||
Gross profit | 72.6 | 82.0 | 217.7 | 241.3 | |||||||||||
Selling, engineering, general and administrative expenses | 38.4 | 43.0 | 118.0 | 128.7 | |||||||||||
Acquisition and integration-related expenses | 0.2 | 0.4 | 0.8 | 1.9 | |||||||||||
Restructuring | — | — | 1.3 | — | |||||||||||
Operating income | 34.0 | 38.6 | 97.6 | 110.7 | |||||||||||
Interest expense | 1.2 | 2.1 | 4.5 | 6.1 | |||||||||||
Other (income) expense, net | (0.1) | 0.2 | 2.1 | 0.5 | |||||||||||
Income before income taxes | 32.9 | 36.3 | 91.0 | 104.1 | |||||||||||
Income tax expense | 7.6 | 7.9 | 20.9 | 25.4 | |||||||||||
Net income | $ | 25.3 | $ | 28.4 | $ | 70.1 | $ | 78.7 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.42 | $ | 0.47 | $ | 1.16 | $ | 1.31 | |||||||
Diluted | $ | 0.41 | $ | 0.46 | $ | 1.14 | $ | 1.28 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 60.3 | 60.2 | 60.3 | 60.1 | |||||||||||
Diluted | 61.3 | 61.4 | 61.5 | 61.3 | |||||||||||
Cash dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 | |||||||
Operating data: | |||||||||||||||
Operating margin | 12.2 | % | 12.5 | % | 11.7 | % | 12.2 | % | |||||||
Adjusted EBITDA | $ | 45.9 | $ | 49.8 | $ | 135.2 | $ | 142.8 | |||||||
Adjusted EBITDA margin | 16.4 | % | 16.1 | % | 16.2 | % | 15.7 | % | |||||||
Total orders | $ | 265.8 | $ | 328.8 | $ | 771.0 | $ | 935.8 | |||||||
Backlog | 319.7 | 366.9 | 319.7 | 366.9 | |||||||||||
Depreciation and amortization | 11.2 | 10.8 | 33.1 | 30.1 | |||||||||||
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
September 30, | December 31, | ||||||
(in millions, except per share data) | (Unaudited) | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 66.2 | $ | 31.6 | |||
Accounts receivable, net of allowances for doubtful accounts of | 145.0 | 134.2 | |||||
Inventories | 196.6 | 182.9 | |||||
Prepaid expenses and other current assets | 9.9 | 12.0 | |||||
Total current assets | 417.7 | 360.7 | |||||
Properties and equipment, net of accumulated depreciation of | 105.6 | 91.9 | |||||
Rental equipment, net of accumulated depreciation of | 115.4 | 115.4 | |||||
Operating lease right-of-use assets | 22.4 | 27.6 | |||||
Goodwill | 392.0 | 388.8 | |||||
Intangible assets, net of accumulated amortization of | 155.4 | 162.9 | |||||
Deferred tax assets | 7.7 | 10.0 | |||||
Deferred charges and other long-term assets | 8.2 | 7.9 | |||||
Long-term assets of discontinued operations | 0.3 | 0.3 | |||||
Total assets | $ | 1,224.7 | $ | 1,165.5 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term borrowings and finance lease obligations | $ | 0.2 | $ | 0.2 | |||
Accounts payable | 71.1 | 65.0 | |||||
Customer deposits | 11.5 | 11.5 | |||||
Accrued liabilities: | |||||||
Compensation and withholding taxes | 27.8 | 31.1 | |||||
Current operating lease liabilities | 8.1 | 8.2 | |||||
Other current liabilities | 39.7 | 44.0 | |||||
Current liabilities of discontinued operations | 0.2 | 0.2 | |||||
Total current liabilities | 158.6 | 160.2 | |||||
Long-term borrowings and finance lease obligations | 238.7 | 220.3 | |||||
Long-term operating lease liabilities | 16.2 | 21.6 | |||||
Long-term pension and other postretirement benefit liabilities | 44.6 | 50.9 | |||||
Deferred tax liabilities | 58.1 | 52.7 | |||||
Other long-term liabilities | 27.8 | 17.3 | |||||
Long-term liabilities of discontinued operations | 0.9 | 0.9 | |||||
Total liabilities | 544.9 | 523.9 | |||||
Stockholders' equity: | |||||||
Common stock, | 67.8 | 66.9 | |||||
Capital in excess of par value | 237.4 | 228.6 | |||||
Retained earnings | 583.8 | 528.2 | |||||
Treasury stock, at cost, 7.3 and 6.4 shares, respectively | (119.3) | (93.0) | |||||
Accumulated other comprehensive loss | (89.9) | (89.1) | |||||
Total stockholders' equity | 679.8 | 641.6 | |||||
Total liabilities and stockholders' equity | $ | 1,224.7 | $ | 1,165.5 | |||
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Nine Months Ended | |||||||
(in millions) | 2020 | 2019 | |||||
Operating activities: | |||||||
Net income | $ | 70.1 | $ | 78.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 33.1 | 30.1 | |||||
Stock-based compensation expense | 5.4 | 5.9 | |||||
Payments for acquisition-related activity | — | (3.1) | |||||
Deferred income taxes | 8.4 | 8.6 | |||||
Changes in operating assets and liabilities | (37.4) | (61.6) | |||||
Net cash provided by operating activities | 79.6 | 58.6 | |||||
Investing activities: | |||||||
Purchases of properties and equipment | (24.3) | (21.2) | |||||
Proceeds from sales of properties and equipment | 0.5 | 0.3 | |||||
Payments for acquisition-related activity | (6.2) | (49.6) | |||||
Proceeds from acquisition-related activity | 0.8 | — | |||||
Other, net | — | 0.2 | |||||
Net cash used for investing activities | (29.2) | (70.3) | |||||
Financing activities: | |||||||
Increase in revolving lines of credit, net | 20.5 | 37.5 | |||||
Payments of debt financing fees | — | (1.0) | |||||
Purchases of treasury stock | (13.7) | (1.0) | |||||
Redemptions of common stock to satisfy withholding taxes related to stock-based compensation | (9.0) | (1.9) | |||||
Payments for acquisition-related activity | — | (10.3) | |||||
Cash dividends paid to stockholders | (14.5) | (14.5) | |||||
Proceeds from stock-based compensation activity | 0.6 | 1.7 | |||||
Other, net | 0.1 | — | |||||
Net cash (used for) provided by financing activities | (16.0) | 10.5 | |||||
Effects of foreign exchange rate changes on cash and cash equivalents | 0.2 | (0.3) | |||||
Increase (decrease) in cash and cash equivalents | 34.6 | (1.5) | |||||
Cash and cash equivalents at beginning of year | 31.6 | 37.4 | |||||
Cash and cash equivalents at end of period | $ | 66.2 | $ | 35.9 | |||
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES GROUP RESULTS (Unaudited) | |||||||||||||||||||||||
The following tables summarize group operating results as of and for the three and nine months ended September 30, 2020 and 2019: | |||||||||||||||||||||||
Environmental Solutions Group | |||||||||||||||||||||||
Three Months Ended September 30, | Nine months ended September 30, 2020 | ||||||||||||||||||||||
($ in millions) | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||
Net sales | $ | 231.0 | $ | 254.0 | $ | (23.0) | $ | 678.2 | $ | 740.7 | $ | (62.5) | |||||||||||
Operating income | 33.0 | 35.9 | (2.9) | 91.0 | 106.4 | (15.4) | |||||||||||||||||
Adjusted EBITDA | 43.9 | 46.0 | (2.1) | 124.8 | 135.1 | (10.3) | |||||||||||||||||
Operating data: | |||||||||||||||||||||||
Operating margin | 14.3 | % | 14.1 | % | 0.2 | % | 13.4 | % | 14.4 | % | (1.0) | % | |||||||||||
Adjusted EBITDA margin | 19.0 | % | 18.1 | % | 0.9 | % | 18.4 | % | 18.2 | % | 0.2 | % | |||||||||||
Total orders | $ | 220.0 | $ | 270.2 | $ | (50.2) | $ | 615.2 | $ | 767.1 | $ | (151.9) | |||||||||||
Backlog | 292.6 | 337.8 | (45.2) | 292.6 | 337.8 | (45.2) | |||||||||||||||||
Depreciation and amortization | 10.4 | 10.0 | 0.4 | 30.6 | 27.5 | 3.1 | |||||||||||||||||
Safety and Security Systems Group | |||||||||||||||||||||||
Three Months Ended September 30, | Nine months ended September 30, 2020 | ||||||||||||||||||||||
($ in millions) | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||
Net sales | $ | 48.8 | $ | 54.8 | $ | (6.0) | $ | 157.8 | $ | 166.2 | $ | (8.4) | |||||||||||
Operating income | 7.4 | 8.6 | (1.2) | 25.2 | 26.8 | (1.6) | |||||||||||||||||
Adjusted EBITDA | 8.2 | 9.4 | (1.2) | 28.1 | 29.3 | (1.2) | |||||||||||||||||
Operating data: | |||||||||||||||||||||||
Operating margin | 15.2 | % | 15.7 | % | (0.5) | % | 16.0 | % | 16.1 | % | (0.1) | % | |||||||||||
Adjusted EBITDA margin | 16.8 | % | 17.2 | % | (0.4) | % | 17.8 | % | 17.6 | % | 0.2 | % | |||||||||||
Total orders | $ | 45.8 | $ | 58.6 | $ | (12.8) | $ | 155.8 | $ | 168.7 | $ | (12.9) | |||||||||||
Backlog | 27.1 | 29.1 | (2.0) | 27.1 | 29.1 | (2.0) | |||||||||||||||||
Depreciation and amortization | 0.8 | 0.8 | — | 2.5 | 2.5 | — | |||||||||||||||||
Corporate Expenses
Corporate operating expenses were
SEC REGULATION G NON-GAAP RECONCILIATION
The financial measures presented below are unaudited and are not in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company has provided this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the reconciliations below, and to provide an additional measure of performance which management considers in operating the business.
Adjusted Net Income and Earnings Per Share ("EPS"):
The Company believes that modifying its 2020 and 2019 net income and diluted EPS provides additional measures which are representative of the Company's underlying performance and improves the comparability of results across reporting periods. During the three and nine months ended September 30, 2020 and 2019 adjustments were made to reported GAAP net income and diluted EPS to exclude the impact of acquisition and integration-related expenses, pension-related charges, restructuring activity, coronavirus-related expenses and purchase accounting effects, where applicable.
Three Months Ended | Nine Months Ended | ||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income | $ | 25.3 | $ | 28.4 | $ | 70.1 | $ | 78.7 | |||||||
Add: | |||||||||||||||
Income tax expense | 7.6 | 7.9 | 20.9 | 25.4 | |||||||||||
Income before income taxes | 32.9 | 36.3 | 91.0 | 104.1 | |||||||||||
Add: | |||||||||||||||
Acquisition and integration-related expenses | 0.2 | 0.4 | 0.8 | 1.9 | |||||||||||
Pension-related charges (a) | — | — | 2.5 | — | |||||||||||
Restructuring | — | — | 1.3 | — | |||||||||||
Coronavirus-related expenses (b) | 0.4 | — | 2.2 | — | |||||||||||
Purchase accounting effects (c) | 0.2 | 0.2 | 0.5 | 0.5 | |||||||||||
Adjusted income before income taxes | 33.7 | 36.9 | 98.3 | 106.5 | |||||||||||
Adjusted income tax expense (d) | (7.8) | (8.0) | (22.5) | (25.9) | |||||||||||
Adjusted net income | $ | 25.9 | $ | 28.9 | $ | 75.8 | $ | 80.6 | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(dollars per diluted share) | 2020 | 2019 | 2020 | 2019 | |||||||||||
EPS | $ | 0.41 | $ | 0.46 | $ | 1.14 | $ | 1.28 | |||||||
Add: | |||||||||||||||
Income tax expense | 0.13 | 0.13 | 0.34 | 0.41 | |||||||||||
Income before income taxes | 0.54 | 0.59 | 1.48 | 1.69 | |||||||||||
Add: | |||||||||||||||
Acquisition and integration-related expenses | 0.00 | 0.01 | 0.01 | 0.03 | |||||||||||
Pension-related charges (a) | — | — | 0.04 | — | |||||||||||
Restructuring | — | — | 0.02 | — | |||||||||||
Coronavirus-related expenses (b) | 0.01 | — | 0.04 | — | |||||||||||
Purchase accounting effects (c) | 0.00 | 0.00 | 0.01 | 0.01 | |||||||||||
Adjusted income before income taxes | 0.55 | 0.60 | 1.60 | 1.73 | |||||||||||
Adjusted income tax expense (d) | (0.13) | (0.13) | (0.37) | (0.42) | |||||||||||
Adjusted EPS | $ | 0.42 | $ | 0.47 | $ | 1.23 | $ | 1.31 | |||||||
(a) | Pension-related charges in the nine months ended September 30, 2020 relate to charges incurred in connection with the withdrawal from a multi-employer pension plan. Such charges are included as a component of Other (income) expense, net on the Condensed Consolidated Statement of Operations. |
(b) | Coronavirus-related expenses in the three and nine months ended September 30, 2020 include direct expenses incurred as a result of the coronavirus pandemic, that are incremental to, and separable from, normal operations. Such expenses primarily relate to incremental paid time off provided to employees and costs incurred to implement enhanced workplace safety protocols. |
(c) | Purchase accounting effects relate to adjustments to exclude the step-up in the valuation of acquired JJE equipment that was sold subsequent to the acquisition in the three and nine months ended September 30, 2020 and 2019, as well as to exclude the depreciation of the step-up in the valuation of the rental fleet acquired. |
(d) | Adjusted income tax expense for the three and nine months ended September 30, 2020 and 2019 was recomputed after excluding the impact of acquisition and integration-related expenses, pension-related charges, restructuring activity, coronavirus-related expenses and purchase accounting effects, where applicable. |
Adjusted EBITDA and Adjusted EBITDA Margin:
The Company uses adjusted EBITDA and the ratio of adjusted EBITDA to net sales ("adjusted EBITDA margin"), at both the consolidated and segment level, as additional measures which are representative of its underlying performance and to improve the comparability of results across reporting periods. We believe that investors use versions of these metrics in a similar manner. For these reasons, the Company believes that adjusted EBITDA and adjusted EBITDA margin, at both the consolidated and segment level, are meaningful metrics to investors in evaluating the Company's underlying financial performance.
Consolidated adjusted EBITDA is a non-GAAP measure that represents the total of net income, interest expense, acquisition and integration-related expenses, restructuring activity, coronavirus-related expenses, purchase accounting effects, other income/expense, income tax expense, and depreciation and amortization expense. Consolidated adjusted EBITDA margin is a non-GAAP measure that represents the total of net income, interest expense, acquisition and integration-related expenses, restructuring activity, coronavirus-related expenses, purchase accounting effects, other income/expense, income tax expense, and depreciation and amortization expense divided by net sales for the applicable period(s).
Segment adjusted EBITDA is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, restructuring activity, coronavirus-related expenses, purchase accounting effects and depreciation and amortization expense, as applicable. Segment adjusted EBITDA margin is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, restructuring activity, coronavirus-related expenses, purchase accounting effects and depreciation and amortization expense, as applicable, divided by net sales for the applicable period(s). Segment operating income includes all revenues, costs and expenses directly related to the segment involved. In determining segment income, neither corporate nor interest expenses are included. Segment depreciation and amortization expense relates to those assets, both tangible and intangible, that are utilized by the respective segment.
Other companies may use different methods to calculate adjusted EBITDA and adjusted EBITDA margin.
Consolidated
The following table summarizes the Company's consolidated adjusted EBITDA and adjusted EBITDA margin and reconciles net income to consolidated adjusted EBITDA for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income | $ | 25.3 | $ | 28.4 | $ | 70.1 | $ | 78.7 | |||||||
Add: | |||||||||||||||
Interest expense | 1.2 | 2.1 | 4.5 | 6.1 | |||||||||||
Acquisition and integration-related expenses | 0.2 | 0.4 | 0.8 | 1.9 | |||||||||||
Restructuring | — | — | 1.3 | — | |||||||||||
Coronavirus-related expenses | 0.4 | — | 2.2 | — | |||||||||||
Purchase accounting effects* | 0.1 | 0.0 | 0.2 | 0.1 | |||||||||||
Other (income) expense, net | (0.1) | 0.2 | 2.1 | 0.5 | |||||||||||
Income tax expense | 7.6 | 7.9 | 20.9 | 25.4 | |||||||||||
Depreciation and amortization | 11.2 | 10.8 | 33.1 | 30.1 | |||||||||||
Consolidated adjusted EBITDA | $ | 45.9 | $ | 49.8 | $ | 135.2 | $ | 142.8 | |||||||
Net sales | $ | 279.8 | $ | 308.8 | $ | 836.0 | $ | 906.9 | |||||||
Consolidated adjusted EBITDA margin | 16.4 | % | 16.1 | % | 16.2 | % | 15.7 | % | |||||||
* Excludes purchase accounting expenses reflected in depreciation and amortization of |
Environmental Solutions Group
The following table summarizes the Environmental Solutions Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Operating income | $ | 33.0 | $ | 35.9 | $ | 91.0 | $ | 106.4 | |||||||
Add: | |||||||||||||||
Acquisition and integration-related expenses | 0.1 | 0.1 | 0.3 | 1.1 | |||||||||||
Restructuring | — | — | 0.7 | — | |||||||||||
Coronavirus-related expenses | 0.3 | — | 2.0 | — | |||||||||||
Purchase accounting effects* | 0.1 | 0.0 | 0.2 | 0.1 | |||||||||||
Depreciation and amortization | 10.4 | 10.0 | 30.6 | 27.5 | |||||||||||
Adjusted EBITDA | $ | 43.9 | $ | 46.0 | $ | 124.8 | $ | 135.1 | |||||||
Net sales | $ | 231.0 | $ | 254.0 | $ | 678.2 | $ | 740.7 | |||||||
Adjusted EBITDA margin | 19.0 | % | 18.1 | % | 18.4 | % | 18.2 | % | |||||||
* Excludes purchase accounting expenses reflected in depreciation and amortization of |
Safety and Security Systems Group
The following table summarizes the Safety and Security Systems Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Operating income | $ | 7.4 | $ | 8.6 | $ | 25.2 | $ | 26.8 | |||||||
Add: | |||||||||||||||
Restructuring | — | — | 0.3 | — | |||||||||||
Coronavirus-related expenses | — | — | 0.1 | — | |||||||||||
Depreciation and amortization | 0.8 | 0.8 | 2.5 | 2.5 | |||||||||||
Adjusted EBITDA | $ | 8.2 | $ | 9.4 | $ | 28.1 | $ | 29.3 | |||||||
Net sales | $ | 48.8 | $ | 54.8 | $ | 157.8 | $ | 166.2 | |||||||
Adjusted EBITDA margin | 16.8 | % | 17.2 | % | 17.8 | % | 17.6 | % | |||||||
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SOURCE Federal Signal Corporation
FAQ
What were Federal Signal's Q3 2020 net sales figures?
How did the adjusted EBITDA margin perform in Q3 2020 for FSS?
What is the new adjusted EPS outlook for Federal Signal in 2020?
What was the order intake for Federal Signal in Q3 2020?
How much cash did Federal Signal generate from operations year-to-date?
