Hubbell Reports First Quarter 2021 Results
Hubbell reported a Q1 2021 diluted EPS of $1.42 and adjusted EPS of $1.72. Net sales decreased by 1% year-over-year, with organic sales down by 4%. Despite slight declines, the company anticipates an 8-10% annual sales growth, driven by expected improvements across various sectors. Hubbell's adjusted EPS guidance for FY21 is set at $8.20-$8.60. The company successfully refinanced $300 million of senior notes to enhance liquidity. Inflationary pressures affected margins, but operational efficiencies and restructuring efforts are expected to provide support.
- Q1 2021 adjusted EPS of $1.72 shows year-over-year growth.
- FY21 adjusted EPS guidance raised to $8.20-$8.60.
- Successful refinancing of $300 million in senior notes enhances liquidity.
- Operational efficiencies are improving adjusted operating margins.
- Q1 net sales declined by 1% and organic sales decreased by 4%.
- Inflationary pressures negatively impacted margins despite price realization.
- Net cash from operating activities dropped to $59 million from $108 million year-over-year.
Shelton, CT, April 27, 2021 (GLOBE NEWSWIRE) --
HUBBELL REPORTS FIRST QUARTER 2021
EARNINGS PER DILUTED SHARE OF
ADJUSTED EARNINGS PER DILUTED SHARE OF
- Q1 net sales -
1% (organic -4% ) - Q1 diluted EPS of
$1.42 ; adjusted diluted EPS of$1.72 - Raise FY21 adjusted diluted EPS to
$8.20 -$8.60 ; reported diluted EPS of$6.80 -$7.20
Hubbell Incorporated (NYSE: HUBB) today reported operating results for the first quarter ended March 31, 2021.
"Hubbell achieved year-over-year earnings growth and adjusted operating margin expansion in the first quarter," said Gerben Bakker, President and Chief Executive Officer. "We continue to see improvement in demand across each of our end markets, reflected in sequential sales growth in the quarter, as well as strengthening orders across both segments. In Utility Solutions, renewables projects and grid modernization initiatives in electrical transmission and distribution markets continue to drive strong demand for T&D Components. While Communications & Controls deployments remained affected by project delays as a result of the COVID-19 pandemic, we saw significant order growth in AMI and meters during the first quarter, supporting our expectations for a return to growth over the balance of the full year. In Electrical Solutions, markets continue to steadily improve. Non-residential markets remained stable in the quarter, while light industrial verticals strengthened, driving increased demand for our Connectors & Grounding and Wiring Systems products."
“Operationally, our prior investments in restructuring initiatives are producing sustainable productivity savings and contributing to adjusted operating margin expansion. We also continue to actively manage our cost structure and benefited from lower year-over-year operating expenses in the quarter. While we achieved positive price realization in the quarter, these tailwinds were more than offset by inflationary pressures in commodities and freight."
Mr. Bakker concluded, “Looking ahead, we are confident that our markets are rebounding and that Hubbell is successfully positioned to benefit from near-term economic recovery, as well as long-term electrification and grid modernization megatrends. While we expect inflationary pressures to persist, we have already taken significant pricing and productivity actions, with further initiatives set to be implemented. We also continue to actively manage our cost structure to drive operational efficiencies while ensuring Hubbell's continued ability to provide our customers with safe, reliable and efficient critical infrastructure solutions."
Certain terms used in this release, including "Net debt", "Free Cash Flow", "Organic net sales", "Organic growth", "Restructuring-related costs", "EBITDA", and certain "adjusted" measures, are defined under the section entitled "Non-GAAP Definitions." See page 8 for more information.
FIRST QUARTER FINANCIAL HIGHLIGHTS
The comments and year-over-year comparisons in this segment review are based on first quarter results in 2021 and 2020.
Electrical Solutions segment net sales in the first quarter of 2021 was
Utility Solutions segment net sales in the first quarter of 2021 increased
Adjusted first quarter 2021 results exclude
Net cash provided by operating activities was
SUMMARY & OUTLOOK
For the full year 2021, Hubbell anticipates sales growth of 8
Hubbell anticipates 2021 earnings per diluted share in the range of
The earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of 22
As previously announced, the Company successfully priced an offering of
CONFERENCE CALL
Hubbell will conduct an earnings conference call to discuss its first quarter 2021 financial results today, April 27, 2021 at 10:00 a.m. ET. A live audio of the conference call will be available and can be accessed by visiting Hubbell's "Investor Relations - Events/Presentations" section of www.hubbell.com. Audio replays of the recorded conference call will be available after the call and can be accessed two hours after the conclusion of the original conference call by calling (855) 859-2056 and using passcode 9246149. The replay will remain available until May 26, 2021 at 11:59 p.m. ET. Audio replays will also be available at the conclusion of the call by visiting www.hubbell.com and selecting "Investors" from the options at the bottom of the page and then "Events/Presentations" from the drop-down menu.
FORWARD-LOOKING STATEMENTS
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, condition and outlook, anticipated end markets, near-term volume, continued opportunity for operational improvement, our ability to drive consistent and differentiated performance, the impact of our high quality portfolio of electrical solutions and utility solutions with strong brand value and best in class reliability, and anticipated effects of the COVID-19 pandemic and the responses thereto, including the pandemic’s impact on general economic and market conditions, as well as on our business, customers, end markets, results of operations and financial condition and anticipated actions to be taken by management to sustain the Company during the economic uncertainty caused by the pandemic and related governmental and business actions, and our projected financial results set forth in “Summary & Outlook” above, as well as other statements that are not strictly historic in nature. In addition, all statements regarding anticipated growth, changes in operating results, market conditions and economic conditions are forward-looking, including those regarding the adverse impact of the COVID-19 pandemic on the Company’s end markets. These statements may be identified by the use of forward-looking words or phrases such as “believe”, “expect”, “anticipate”, “plan”, “estimated”, “target”, “should”, “could”, “may”, "subject to", “continues”, “growing”, “projected”, “if”, “potential”, “will likely be”, and similar words and phrases. Such forward-looking statements are based on our current expectations and involve numerous assumptions, known and unknown risks, uncertainties and other factors which may cause actual and future performance or the Company’s achievements 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: The scope and duration of the COVID-19 pandemic and its impact on global economic systems, our employees, sites, operations, customers, and supply chain; the outcome of contingencies or costs compared to amounts provided for such contingencies, including those with respect to pension withdrawal liabilities; achieving sales levels to meet revenue expectations; unexpected costs or charges, certain of which may be outside the Company’s control; the effects of tariffs and other trade actions taken by the U.S. and other countries; changes in demand for our products, as well as product sales prices and material costs; expected benefits of productivity improvements and cost reduction actions; effects of unfavorable foreign currency exchange rates; the impact of U.S. tax reform legislation; general economic and business conditions; the impact of and the ability to complete and integrate strategic acquisitions; the impact of certain divestitures; the ability to effectively develop and introduce new products, expand into new markets and deploy capital; 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, 2020 and Quarterly Reports on Form 10-Q.
About the Company
Hubbell Incorporated is a global manufacturer of quality electrical products and utility solutions for a broad range of applications in the Electrical Solutions and Utility Solutions segments. With 2020 revenues of
Contact:
| Dan Innamorato |
| Hubbell Incorporated |
| 40 Waterview Drive |
| P.O. Box 1000 |
| Shelton, CT 06484 |
| (475) 882-4000 |
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NON-GAAP DEFINITIONS
References to "adjusted" operating measures exclude the impact of certain costs, gains or losses. Management believes these adjusted operating measures provide useful information regarding our underlying performance from period to period and an understanding of our results of operations without regard to items we do not consider a component of our core operating performance. Adjusted operating measures are non-GAAP measures, and include adjusted operating income, adjusted operating margin, adjusted net income, adjusted net income available to common shareholders, adjusted net income attributable to Hubbell, adjusted earnings per diluted share, and adjusted EBITDA. These non-GAAP measures exclude, where applicable:
- Amortization of all intangible assets associated with our business acquisitions, including inventory step-up amortization associated with those acquisitions. The intangible assets associated with our business acquisitions arise from the allocation of the purchase price using the acquisition method of accounting in accordance with Accounting Standards Codification 805, “Business Combinations.” These assets consist primarily of customer relationships, developed technology, trademarks and tradenames, and patents, as reported in Note 6—Goodwill and Other Intangible Assets, under the heading “Total Definite-Lived Intangibles,” within the Company’s audited consolidated financial statements set forth in its Annual Report on Form 10-K for Fiscal Year Ended December 31, 2020. The Company excludes these non-cash expenses because we believe it (i) enhances management’s and investors’ ability to analyze underlying business performance, (ii) facilitates comparisons of our financial results over multiple periods, and (iii) provides more relevant comparisons of our results with the results of other companies as the amortization expense associated with these assets may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. Although we exclude amortization of these acquired intangible assets and inventory step-up from our non-GAAP results, we believe that it is important for investors to understand that revenue generated, in part, from such intangibles is included within revenue in determining adjusted net income attributable to Hubbell Incorporated.
- Income tax effects of the above adjustments which are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction, unless otherwise noted.
Adjusted EBITDA is a non-GAAP measure that excludes the items noted above and also excludes the Other income (expense), net, Interest expense, net, and Provision for income taxes captions of the Condensed Consolidated Statement of Income, as well as depreciation and amortization expense.
Net debt (defined as total debt less cash and investments) to total capital is a non-GAAP measure that we believe is a useful measure for evaluating the Company's financial leverage and the ability to meet its funding needs.
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 financing. 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.
In connection with our restructuring and related actions we have incurred restructuring costs as defined by U.S. GAAP, which are primarily severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. We also incur restructuring-related costs, which 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.
Organic net sales, a non-GAAP measure, represent net sales according to U.S. GAAP, less net sales from acquisitions and divestitures during the first twelve months of ownership or divestiture, respectively, less the effect of fluctuations in net sales from foreign currency exchange. The period-over-period effect of fluctuations in net sales from foreign currency exchange is calculated as the difference between local currency net sales of the prior period translated at the current period exchange rate as compared to the same local currency net sales translated at the prior period exchange rate. We believe this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. When comparing net sales growth between periods excluding the effects of acquisitions, business dispositions and currency exchange rates, those effects are different when comparing results for different periods. For example, because net sales from acquisitions are considered inorganic from the date we complete an acquisition through the end of the first year following the acquisition, net sales from such acquisition are reflected as organic net sales thereafter.
There are limitations to the use of non-GAAP measures. Non-GAAP measures do not present complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported GAAP financial results, and should be viewed in conjunction with the most comparable GAAP financial measures and the provided reconciliations thereto. We believe, however, that these non-GAAP financial measures, when viewed together with our GAAP results and related reconciliations, provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.
Reconciliations of each of these non-GAAP measures to the most directly comparable GAAP measure can be found in the tables below.
RECAST SEGMENT INFORMATION
As previously disclosed, beginning in the first quarter of 2021, the Company is reporting the results of its Gas Connectors and Accessories business as part of the Utility Solutions segment. This realignment has no impact on the Company's historical consolidated financial position, results of operations or cash flows. The historical segment information has been recast to conform to the new reporting structure. The recast financial information does not represent a restatement of previously issued financial statements.
HUBBELL INCORPORATED
Condensed Consolidated Statement of Income
(unaudited)
(in millions, except per share amounts)
| Three Months Ended March 31, | |||||||||
| 2021 | 2020 | ||||||||
| Net sales | $ | 1,078.4 | $ | 1,090.3 | |||||
| Cost of goods sold | 788.6 | 776.8 | |||||||
| Gross profit | 289.8 | 313.5 | |||||||
| Selling & administrative expenses | 172.2 | 194.7 | |||||||
| Operating income | 117.6 | 118.8 | |||||||
| Operating income as a % of Net sales | 10.9 | % | 10.9 | % | |||||
| Interest expense, net | (15.2 | ) | (15.1 | ) | |||||
| Other income (expense), net | (0.9 | ) | (3.8 | ) | |||||
| Total other expense, net | (16.1 | ) | (18.9 | ) | |||||
| Income before income taxes | 101.5 | 99.9 | |||||||
| Provision for income taxes | 22.4 | 24.2 | |||||||
| Net income | 79.1 | 75.7 | |||||||
| Less: Net income attributable to noncontrolling interest | 1.4 | 0.7 | |||||||
| Net income attributable to Hubbell Incorporated | $ | 77.7 | $ | 75.0 | |||||
| Earnings Per Share: | |||||||||
| Basic | $ | 1.43 | $ | 1.38 | |||||
| Diluted | $ | 1.42 | $ | 1.37 | |||||
| Cash dividends per common share | $ | 0.98 | $ | 0.91 | |||||
HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(unaudited)
(in millions)
| March 31, 2021 | December 31, 2020 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 433.8 | $ | 259.6 | |||
| Short-term investments | 10.2 | 9.3 | |||||
| Accounts receivable (net of allowances of | 703.1 | 634.7 | |||||
| Inventories, net | 616.4 | 607.3 | |||||
| Other current assets | 64.0 | 76.7 | |||||
| TOTAL CURRENT ASSETS | 1,827.5 | 1,587.6 | |||||
| Property, plant and equipment, net | 516.7 | 519.2 | |||||
| Investments | 69.6 | 71.1 | |||||
| Goodwill | 1,924.4 | 1,923.3 | |||||
| Other intangible assets, net | 786.0 | 810.6 | |||||
| Other long-term assets | 168.7 | 173.3 | |||||
| TOTAL ASSETS | $ | 5,292.9 | $ | 5,085.1 | |||
| LIABILITIES AND EQUITY | |||||||
| Short-term debt and current portion of long-term debt | $ | 360.8 | $ | 153.1 | |||
| Accounts payable | 421.3 | 378.0 | |||||
| Accrued salaries, wages and employee benefits | 63.9 | 91.5 | |||||
| Accrued insurance | 77.8 | 71.6 | |||||
| Other accrued liabilities | 224.9 | 254.0 | |||||
| TOTAL CURRENT LIABILITIES | 1,148.7 | 948.2 | |||||
| Long-term debt | 1,433.7 | 1,436.9 | |||||
| Other non-current liabilities | 612.5 | 614.6 | |||||
| TOTAL LIABILITIES | 3,194.9 | 2,999.7 | |||||
| Hubbell Incorporated Shareholders’ Equity | 2,082.7 | 2,070.0 | |||||
| Noncontrolling interest | 15.3 | 15.4 | |||||
| TOTAL EQUITY | 2,098.0 | 2,085.4 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 5,292.9 | $ | 5,085.1 | |||
HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in millions)
| Three Months Ended March 31, | |||||||||
| 2021 | 2020 | ||||||||
| Cash Flows From Operating Activities | |||||||||
| Net income attributable to Hubbell Incorporated | $ | 77.7 | $ | 75.0 | |||||
| Depreciation and amortization | 42.6 | 38.9 | |||||||
| Stock-based compensation expense | 9.5 | 11.6 | |||||||
| Provision for bad debt expense | (0.5 | ) | 5.3 | ||||||
| Deferred income taxes | 1.7 | 1.6 | |||||||
| Accounts receivable, net | (68.2 | ) | (36.8 | ) | |||||
| Inventories, net | (12.1 | ) | 32.7 | ||||||
| Accounts payable | 45.2 | 15.2 | |||||||
| Current liabilities | (48.3 | ) | (48.8 | ) | |||||
| Contributions to defined benefit pension plans | (0.1 | ) | (0.1 | ) | |||||
| Other, net | 11.4 | 13.8 | |||||||
| Net cash provided by operating activities | 58.9 | 108.4 | |||||||
| Cash Flows From Investing Activities | |||||||||
| Capital expenditures | (19.6 | ) | (17.8 | ) | |||||
| Acquisition of businesses, net of cash acquired | 0.1 | (2.1 | ) | ||||||
| Net change in investments | (1.1 | ) | 1.8 | ||||||
| Other, net | 5.3 | 2.5 | |||||||
| Net cash used in investing activities | (15.3 | ) | (15.6 | ) | |||||
| Cash Flows From Financing Activities | |||||||||
| Long-term debt issuance (repayment), net | 298.7 | 93.7 | |||||||
| Short-term debt borrowings (repayments), net | (91.6 | ) | 38.1 | ||||||
| Payment of dividends | (53.2 | ) | (49.5 | ) | |||||
| Repurchase of common stock | (10.0 | ) | (41.3 | ) | |||||
| Other, net | (11.5 | ) | (5.3 | ) | |||||
| Net cash (used) provided by financing activities | 132.4 | 35.7 | |||||||
| Effect of exchange rate changes on cash and cash equivalents | (1.8 | ) | (10.5 | ) | |||||
| Increase in cash and cash equivalents | 174.2 | 118.0 | |||||||
| Cash and cash equivalents | |||||||||
| Beginning of period | 259.6 | 182.0 | |||||||
| End of period | $ | 433.8 | $ | 300.0 | |||||
HUBBELL INCORPORATED
Earnings Per Share
(unaudited)
(in millions, except per share amounts)
| Three Months Ended March 31, | ||||||||||||
| 2021 | 2020 | Change | ||||||||||
| Net income attributable to Hubbell (GAAP measure) | $ | 77.7 | $ | 75.0 | 4 | % | ||||||
| Amortization of acquisition-related intangible assets | 22.2 | 19.5 | ||||||||||
| Subtotal | $ | 99.9 | $ | 94.5 | ||||||||
| Income tax effects | 5.5 | 4.9 | ||||||||||
| Adjusted Net Income | $ | 94.4 | $ | 89.6 | 5 | % | ||||||
| Numerator: | ||||||||||||
| Net income attributable to Hubbell (GAAP measure) | $ | 77.7 | $ | 75.0 | ||||||||
| Less: Earnings allocated to participating securities | (0.3 | ) | (0.3 | ) | ||||||||
| Net income available to common shareholders (GAAP measure) [a] | $ | 77.4 | $ | 74.7 | 4 | % | ||||||
| Adjusted Net Income | $ | 94.4 | $ | 89.6 | ||||||||
| Less: Earnings allocated to participating securities | (0.3 | ) | (0.3 | ) | ||||||||
| Adjusted net income available to common shareholders [b] | $ | 94.1 | $ | 89.3 | 5 | % | ||||||
| Denominator: | ||||||||||||
| Average number of common shares outstanding [c] | 54.2 | 54.3 | ||||||||||
| Potential dilutive shares | 0.5 | 0.3 | ||||||||||
| Average number of diluted shares outstanding [d] | 54.7 | 54.6 | ||||||||||
| Earnings per share (GAAP measure): | ||||||||||||
| Basic [a] / [c] | $ | 1.43 | $ | 1.38 | ||||||||
| Diluted [a] / [d] | $ | 1.42 | $ | 1.37 | 4 | % | ||||||
| Adjusted earnings per diluted share [b] / [d] | $ | 1.72 | $ | 1.64 | 5 | % | ||||||
HUBBELL INCORPORATED
Segment Information
(unaudited)
(in millions)
| Hubbell Incorporated | Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | Change | |||||||||
| Net Sales [a] | $ | 1,078.4 | $ | 1,090.3 | (1 | ) | % | ||||
| Operating Income | |||||||||||
| GAAP measure [b] | $ | 117.6 | $ | 118.8 | (1 | ) | % | ||||
| Amortization of acquisition-related intangible assets | 22.2 | 19.5 | |||||||||
| Adjusted operating income [c] | $ | 139.8 | $ | 138.3 | 1 | % | |||||
| Operating margin | |||||||||||
| GAAP measure [b] / [a] | 10.9 | % | 10.9 | % | — bps | ||||||
| Adjusted operating margin [c] / [a] | 13.0 | % | 12.7 | % | +30 bps | ||||||
| Electrical Solutions | Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | Change | |||||||||
| Net Sales [a] | $ | 546.2 | $ | 563.7 | (3 | ) | % | ||||
| Operating Income | |||||||||||
| GAAP measure [b] | $ | 53.0 | $ | 52.5 | 1 | % | |||||
| Amortization of acquisition-related intangible assets | 4.2 | 4.8 | |||||||||
| Adjusted operating income [c] | $ | 57.2 | $ | 57.3 | — | % | |||||
| Operating margin | |||||||||||
| GAAP measure [b] / [a] | 9.7 | % | 9.3 | % | +40 bps | ||||||
| Adjusted operating margin [c] / [a] | 10.5 | % | 10.2 | % | +30 bps | ||||||
| Utility Solutions | Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | Change | |||||||||
| Net Sales [a] | $ | 532.2 | $ | 526.6 | 1 | % | |||||
| Operating Income | |||||||||||
| GAAP measure [b] | $ | 64.6 | $ | 66.3 | (3 | ) | % | ||||
| Amortization of acquisition-related intangible assets | 18.0 | 14.7 | |||||||||
| Adjusted operating income [c] | $ | 82.6 | $ | 81.0 | 2 | % | |||||
| Operating margin | |||||||||||
| GAAP measure [b] / [a] | 12.1 | % | 12.6 | % | -50 bps | ||||||
| Adjusted operating margin [c] / [a] | 15.5 | % | 15.4 | % | +10 bps | ||||||
HUBBELL INCORPORATED
Organic Net Sales Growth
(unaudited)
(in millions and percentage change)
| Hubbell Incorporated | Three Months Ended March 31, | ||||||||||||||||
| 2021 | Inc/(Dec)% | 2020 | Inc/(Dec)% | ||||||||||||||
| Net sales growth (GAAP measure) | $ | (11.9 | ) | (1.1 | ) | $ | 3.0 | 0.3 | |||||||||
| Impact of acquisitions | 32.9 | 3.0 | 11.0 | 1.0 | |||||||||||||
| Impact of divestitures | — | — | (9.5 | ) | (0.9 | ) | |||||||||||
| Foreign currency exchange | 1.0 | 0.1 | (1.0 | ) | — | ||||||||||||
| Organic net sales growth (decline) | $ | (45.8 | ) | (4.2 | ) | $ | 2.5 | 0.2 | |||||||||
| Electrical Solutions | Three Months Ended March 31, | ||||||||||||||||
| 2021 | Inc/(Dec)% | 2020 | Inc/(Dec)% | ||||||||||||||
| Net sales growth (GAAP measure) | $ | (17.5 | ) | (3.1 | ) | $ | (16.3 | ) | (2.8 | ) | |||||||
| Impact of acquisitions | 5.7 | 1.0 | 3.5 | 0.6 | |||||||||||||
| Impact of divestitures | — | — | (9.5 | ) | (1.6 | ) | |||||||||||
| Foreign currency exchange | 2.0 | 0.4 | 0.2 | — | |||||||||||||
| Organic net sales growth (decline) | $ | (25.2 | ) | (4.5 | ) | $ | (10.5 | ) | (1.8 | ) | |||||||
| Utility Solutions | Three Months Ended March 31, | ||||||||||||||||
| 2021 | Inc/(Dec)% | 2020 | Inc/(Dec)% | ||||||||||||||
| Net sales growth (GAAP measure) | $ | 5.6 | 1.1 | $ | 19.3 | 3.8 | |||||||||||
| Impact of acquisitions | 27.2 | 5.2 | 7.5 | 1.5 | |||||||||||||
| Impact of divestitures | — | — | — | — | |||||||||||||
| Foreign currency exchange | (1.0 | ) | (0.2 | ) | (1.2 | ) | (0.2 | ) | |||||||||
| Organic net sales growth (decline) | $ | (20.6 | ) | (3.9 | ) | $ | 13.0 | 2.5 | |||||||||
HUBBELL INCORPORATED
Adjusted EBITDA
(unaudited)
(in millions)
| Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | Change | ||||||||
| Net income | $ | 79.1 | $ | 75.7 | 4 | % | ||||
| Provision for income taxes | 22.4 | 24.2 | ||||||||
| Interest expense, net | 15.2 | 15.1 | ||||||||
| Other expense, net | 0.9 | 3.8 | ||||||||
| Depreciation and amortization | 42.6 | 38.9 | ||||||||
| Subtotal | 81.1 | 82.0 | ||||||||
| Adjusted EBITDA | $ | 160.2 | $ | 157.7 | 2 | % | ||||
HUBBELL INCORPORATED
Restructuring and Related Costs Included in Consolidated Results
(unaudited)
(in millions, except per share amounts)
| Three Months Ended March 31, | ||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Costs of goods sold | S&A expense | Total | ||||||||||||||||||||||
| Restructuring costs | $ | 0.8 | $ | 3.0 | $ | (0.2 | ) | $ | 0.5 | $ | 0.6 | $ | 3.5 | |||||||||||
| Restructuring related costs (benefit) | 3.1 | 1.0 | (2.9 | ) | 1.1 | 0.2 | 2.1 | |||||||||||||||||
| Restructuring and related costs (non-GAAP measure) | $ | 3.9 | $ | 4.0 | $ | (3.1 | ) | $ | 1.6 | $ | 0.8 | $ | 5.6 | |||||||||||
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Restructuring and related costs included in Cost of goods sold | ||||||||
| Electrical Solutions | $ | 3.6 | $ | 1.1 | ||||
| Utility Solutions | 0.3 | 2.9 | ||||||
| Total | $ | 3.9 | $ | 4.0 | ||||
| Restructuring and related costs included in Selling & administrative expenses | ||||||||
| Electrical Solutions | $ | (3.2 | ) | $ | 1.2 | |||
| Utility Solutions | 0.1 | 0.4 | ||||||
| Total | $ | (3.1 | ) | $ | 1.6 | |||
| Impact on income before income taxes | $ | 0.8 | $ | 5.6 | ||||
| Impact on Net income available to Hubbell common shareholders | 0.6 | 4.3 | ||||||
| Impact on Diluted earnings per share | $ | 0.01 | $ | 0.08 | ||||
HUBBELL INCORPORATED
Additional Non-GAAP Financial Measures
(unaudited)
(in millions)
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
| March 31, 2021 | December 31, 2020 | ||||||
| Total Debt | $ | 1,794.5 | $ | 1,590.0 | |||
| Total Hubbell Shareholders’ Equity | 2,082.7 | 2,070.0 | |||||
| Total Capital | $ | 3,877.2 | $ | 3,660.0 | |||
| Total Debt to Total Capital | 46 | % | 43 | % | |||
| Less: Cash and Investments | $ | 513.6 | $ | 340.0 | |||
| Net Debt | $ | 1,280.9 | $ | 1,250.0 | |||
| Net Debt to Total Capital | 33 | % | 34 | % | |||
Free Cash Flow Reconciliation
| Three Months Ended March 31, | |||||||||
| 2021 | 2020 | ||||||||
| Net cash provided by operating activities | $ | 58.9 | $ | 108.4 | |||||
| Less: Capital expenditures | (19.6 | ) | (17.8 | ) | |||||
| Free cash flow | $ | 39.3 | $ | 90.6 | |||||
FAQ
What were Hubbell's Q1 2021 earnings per share?
How did Hubbell's net sales perform in Q1 2021?
What is Hubbell's adjusted EPS guidance for FY21?
What are the key factors affecting Hubbell's margins?
What was the impact of the senior notes refinancing for Hubbell?
