Ingersoll Rand Reports Fourth Quarter and Full Year 2021 Results
Ingersoll Rand reported a strong fourth-quarter 2021, achieving record orders of $1,507 million and revenues of $1,419 million, marking increases of 24% and 16%, respectively, compared to the previous year. Net income rose to $293 million or $0.71 per share. The company generated $247 million in operating cash flow and ended the year with a robust liquidity position of $3.2 billion. Guidance for 2022 forecasts 11%-13% revenue growth, with adjusted EBITDA between $1,375 million and $1,415 million. The strategic focus remains on disciplined capital allocation and sustainability initiatives.
- Reported orders increased by 24% to $1,507 million.
- Revenue grew by 16% to $1,419 million.
- Net income attributable to shareholders reached $293 million, up $0.35 from the previous year.
- Full-year guidance for 2022 projects revenue growth of 11%-13%.
- Liquidity is strong at $3.2 billion, including $2.1 billion in cash.
- Adjusted EBITDA margin decreased to 24.1% despite an increase in EBITDA.
- Segment Adjusted EBITDA margin for ITS fell by 40 basis points year-over-year.
Record Orders and Revenue Support Strong Outlook for 2022
Fourth-Quarter 2021 Highlights
(All comparisons against the fourth-quarter of 2020 unless otherwise noted)
-
Reported orders of
, up$1,507 million 24% (18% organically) -
Reported revenues of
, up$1,419 million 16% (11% organically) -
Reported net income attributable to
Ingersoll Rand Inc. of , or earnings of$293 million per share, up$0.71 per share$0.35 -
Adjusted net income from continuing operations, net of tax1 of
, or$280 million per share$0.68
-
Adjusted net income from continuing operations, net of tax1 of
-
Adjusted EBITDA1 of
, up$342 million 15% , with a margin of24.1% -
Reported operating cash flow from continuing operations of
and free cash flow from continuing operations1 of$247 million $224 million -
Adjusted free cash flow1 of
, excluding outflows of transaction-related expenses of$225 million and inflows of cash taxes related to recent divestitures of$4 million $3 million
-
Adjusted free cash flow1 of
-
Liquidity of
as of$3.2 billion December 31, 2021 , including of cash on hand and undrawn capacity of$2.1 billion under available credit facilities$1.1 billion -
Deployed
to acquisitions in the fourth quarter of 2021, including Air Dimensions,$165 million Lawrence Factor and Tuthill Pumps and subsequently acquired Jorc for€27 million inFebruary 2022 -
Initiated a
per share quarterly dividend program$0.02
Full-Year 2021 Highlights
(All comparisons against the 2020 Supplemental Financial Information2 unless otherwise noted)
-
Reported orders of
, up$5,765 million 31% (24% organically) -
Reported revenues of
, up$5,152 million 19% (12% organically) -
Reported net income attributable to
Ingersoll Rand Inc. of , or earnings of$563 million per share, up$1.34 per share3$1.43 -
Adjusted net income from continuing operations, net of tax of
, or$881 million per share$2.09
-
Adjusted net income from continuing operations, net of tax of
-
Adjusted EBITDA1 of
, up$1,192 million 28% , with a margin of23.1% -
Reported operating cash flow from continuing operations of
and free cash flow from continuing operations1 of$628 million $564 million -
Adjusted free cash flow1 of
, excluding outflows of transaction-related expenses of$799 million and cash taxes related to recent divestitures of$31 million , and cash inflows from Trane Technologies for Transaction post-closing adjustments of$254 million $49 million
-
Adjusted free cash flow1 of
2022 Guidance
-
Full-year 2022 revenue growth expected to be
11% to13% and Adjusted EBITDA1 of to$1,375 , up$1,415 million 15% to19% over prior year
“The momentum from our strong fourth quarter commercial and operational performance has positioned us for continued success as we move into 2022. Our company, driven by our purpose to Make Life Better and enabled by our IRX process, successfully navigated through a continued challenging supply chain and inflationary environment,” said
Fourth-Quarter 2021 Segment Review
(All comparisons against the fourth quarter of 2020 unless otherwise noted.)
Industrial Technologies and Services (ITS) Segment: broad range of compressor, vacuum and blower solutions as well as fluid transfer equipment, loading systems, power tools and lifting equipment
-
Reported Orders of
, up$1,201 million 20% (19% organically)
-
Reported Revenues of
, up$1,129 million 12% (11% organically)
-
Reported Segment Adjusted EBITDA4 of
, up$291 million 10%
-
Reported Segment Adjusted EBITDA Margin4 of
25.7% , down 40 basis points against a tough comparison in the fourth quarter of 2020 which saw 400 bps of margin expansion. Remained price / cost positive in the quarter with 20 bps of sequential margin expansion as compared to the third quarter of 2021.
-
Core industrial end markets saw continued strong demand with orders up
20% as compared to prior year, including strong positive momentum across all major regions. Orders for total compressor offerings, which represent approximately65% of the total segment, were up in excess of20% , while orders in Industrial Vacuum & Blowers were up approximately20% . Orders in Power Tools and Lifting were also up approximately20% .
Precision and Science Technologies (PST) Segment: highly specialized gas, fluid management systems, liquid and precision syringe pumps and compressors
-
Reported Orders of
, up$306 million 39% (14% organically)
-
Reported Revenues of
, up$290 million 40% (15% organically)
-
Reported Segment Adjusted EBITDA4 of
, up$78 million 22%
-
Reported Segment Adjusted EBITDA Margin4 of
26.8% , down 400 basis points, driven primarily by the impact of M&A
-
Orders increased
39% as compared to prior year orders led by continued strong double-digit growth in medical pumps, which primarily serves lab and life sciences end markets, Dosatron (water treatment, food sanitation and animal health end markets) and Specialty businesses, as well as the impact of M&A
Discontinued Operations
Specialty Vehicle Technologies (SVT) Segment: Club Car® golf, utility and consumer low-speed vehicles
- Beginning in Q2 2021, Ingersoll Rand classified the SVT business as discontinued operations and has reclassified certain prior year amounts to conform to the current year presentation
High Pressure Solutions (HPS) Segment: diverse range of positive displacement pumps, integrated systems, consumables and associated aftermarket parts and services largely for use in the upstream oil and gas market
- Beginning in Q1 2021, Ingersoll Rand classified the HPS business as discontinued operations and has reclassified certain prior year amounts to conform to the current year presentation
Balance Sheet and Cash Flow
Ingersoll Rand remains in a strong financial position with ample liquidity of
2022 Guidance
Ingersoll Rand is establishing full-year 2022 guidance based on expected continued strong demand trends and operational execution in 2022:
|
Revenue
|
Adjusted EBITDA5 |
Phasing Revenue
|
Total |
11 |
|
H1: 12 |
Organic |
7 |
|
|
ITS |
7 |
|
|
PST |
8 |
|
|
FX Impact |
(~ |
|
H1: (1 |
M&A |
|
|
|
Corporate |
|
(~135M)
|
|
Conference Call
Ingersoll Rand will host a live earnings conference call to discuss the fourth-quarter and full year results on
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to Ingersoll Rand Inc.’s (the “Company” or “Ingersoll Rand”) expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “target,” “endeavor,” “seek,” “predict,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “on track to” “will continue,” “will likely result,” “guidance” or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than historical facts are forward-looking statements.
These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the impact on the Company’s business, suppliers and customers and global economic conditions of the COVID-19 pandemic; (2) unexpected costs, charges or expenses resulting from the completed and proposed business combinations; (3) uncertainty of the expected financial performance of the Company; (4) failure to realize the anticipated benefits of the completed and proposed business combinations; (5) the ability of the Company to implement its business strategy; (6) difficulties and delays in achieving revenue and cost synergies; (7) inability of the Company to retain and hire key personnel; (8) evolving legal, regulatory and tax regimes; (9) changes in general economic and/or industry specific conditions; (10) actions by third parties, including government agencies; (11) adverse impact on our operations and financial performance due to natural disaster, catastrophe, pandemic or other events outside of our control; and (12) other risk factors detailed in Ingersoll Rand’s most recent Annual Report on Form 10-K filed with the
Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
About
Non-
In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth,” “Adjusted EBITDA,” “Supplemental Adjusted EBITDA,” “Adjusted Net Income,” “Supplemental Further Adjusted Net Income,” “Supplemental Further Adjusted Diluted EPS,” “Adjusted Diluted EPS,” “Free Cash Flow,” “Adjusted Free Cash Flow,” “Supplemental Revenue” and “Supplemental Adjusted Revenue.”
Ingersoll Rand believes Supplemental Adjusted EBITDA, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS and Supplemental Revenue are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they provide supplemental information about the Company’s financial performance on a combined basis as if the Transaction had occurred on
Ingersoll Rand uses Free Cash Flow and Adjusted Free Cash Flow to review the liquidity of its operations. Ingersoll Rand measures Free Cash Flow as cash flows from operating activities less capital expenditures, and Adjusted Free Cash Flow as cash flows from operating activities less capital expenditures and other adjustments. Ingersoll Rand believes Free Cash Flow and Adjusted Free Cash Flow are useful supplemental financial measures for management and investors in assessing the Company’s ability to pursue business opportunities and investments and to service its debt. Free Cash Flow and Adjusted Free Cash Flow are not measures of our liquidity under GAAP and should not be considered as an alternative to cash flows from operating activities.
Management and Ingersoll Rand’s board of directors regularly use these measures as tools in evaluating the Company’s operating and financial performance and in establishing discretionary annual compensation. Such measures are provided in addition to, and should not be considered to be a substitute for, or superior to, the comparable measures under GAAP. In addition, Ingersoll Rand believes that Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow and Adjusted Free Cash Flow are frequently used by investors and other interested parties in the evaluation of issuers, many of which also present Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow and Adjusted Free Cash Flow when reporting their results in an effort to facilitate an understanding of their operating and financial results and liquidity.
Organic Revenue Growth, Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow, Adjusted Free Cash Flow and Supplemental Revenue should not be considered as alternatives to net income, diluted earnings per share or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities as a measure of our liquidity. Organic Revenue Growth, Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow, Adjusted Free Cash Flow and Supplemental Revenue have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing Ingersoll Rand’s results as reported under GAAP.
Reconciliations of Organic Revenue Growth, Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow, Adjusted Free Cash Flow and Supplemental Revenue to their most comparable
Reconciliations of non-GAAP measures related to full year 2022 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for acquisitions-related expenses, restructuring and other business transformation costs, gains or losses on foreign currency exchange and the timing and magnitude of other amounts in the reconciliation of historic numbers. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in millions, except per share amounts) |
|||||||||||||||
|
For the Three Month Period
|
|
For the Twelve Month Period
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues |
$ |
1,418.8 |
|
|
$ |
1,218.5 |
|
|
$ |
5,152.4 |
|
|
$ |
3,973.2 |
|
Cost of sales |
|
909.4 |
|
|
|
755.5 |
|
|
|
3,163.9 |
|
|
|
2,568.3 |
|
Gross Profit |
|
509.4 |
|
|
|
463.0 |
|
|
|
1,988.5 |
|
|
|
1,404.9 |
|
Selling and administrative expenses |
|
255.9 |
|
|
|
222.2 |
|
|
|
1,028.0 |
|
|
|
789.3 |
|
Amortization of intangible assets |
|
88.1 |
|
|
|
95.0 |
|
|
|
332.9 |
|
|
|
335.1 |
|
Impairment of other intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19.9 |
|
Other operating expense, net |
|
25.0 |
|
|
|
30.9 |
|
|
|
61.9 |
|
|
|
201.0 |
|
Operating Income |
|
140.4 |
|
|
|
114.9 |
|
|
|
565.7 |
|
|
|
59.6 |
|
Interest expense |
|
19.4 |
|
|
|
24.4 |
|
|
|
87.7 |
|
|
|
111.1 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
2.0 |
|
Other income, net |
|
(3.9 |
) |
|
|
(3.0 |
) |
|
|
(44.0 |
) |
|
|
(8.1 |
) |
Income (Loss) from Continuing Operations Before Income Taxes |
|
124.9 |
|
|
|
93.5 |
|
|
|
513.0 |
|
|
|
(45.4 |
) |
Provision (benefit) for income taxes |
|
(47.6 |
) |
|
|
(12.9 |
) |
|
|
(21.8 |
) |
|
|
11.4 |
|
Loss on equity method investments |
|
(8.5 |
) |
|
|
— |
|
|
|
(11.4 |
) |
|
|
— |
|
Income (Loss) from Continuing Operations |
|
164.0 |
|
|
|
106.4 |
|
|
|
523.4 |
|
|
|
(56.8 |
) |
Income from discontinued operations, net of tax |
|
129.7 |
|
|
|
44.7 |
|
|
|
41.6 |
|
|
|
24.4 |
|
Net Income (Loss) |
|
293.7 |
|
|
|
151.1 |
|
|
|
565.0 |
|
|
|
(32.4 |
) |
Less: Net income (loss) attributable to noncontrolling interests |
|
0.7 |
|
|
|
(0.5 |
) |
|
|
2.5 |
|
|
|
0.9 |
|
Net Income (Loss) Attributable to |
$ |
293.0 |
|
|
$ |
151.6 |
|
|
$ |
562.5 |
|
|
$ |
(33.3 |
) |
|
|
|
|
|
|
|
|
||||||||
Amounts attributable to |
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of tax |
$ |
163.3 |
|
|
$ |
106.9 |
|
|
$ |
520.9 |
|
|
$ |
(57.7 |
) |
Income from discontinued operations, net of tax |
|
129.7 |
|
|
|
44.7 |
|
|
|
41.6 |
|
|
|
24.4 |
|
Net income (loss) attributable to |
$ |
293.0 |
|
|
$ |
151.6 |
|
|
$ |
562.5 |
|
|
$ |
(33.3 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share of common stock: |
|
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations |
$ |
0.40 |
|
|
$ |
0.26 |
|
|
$ |
1.26 |
|
|
$ |
(0.15 |
) |
Earnings from discontinued operations |
|
0.32 |
|
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.06 |
|
Net earnings (loss) |
|
0.72 |
|
|
|
0.36 |
|
|
|
1.36 |
|
|
|
(0.09 |
) |
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share of common stock: |
|
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations |
$ |
0.40 |
|
|
$ |
0.25 |
|
|
$ |
1.24 |
|
|
$ |
(0.15 |
) |
Earnings from discontinued operations |
|
0.31 |
|
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.06 |
|
Net earnings (loss) |
|
0.71 |
|
|
|
0.36 |
|
|
|
1.34 |
|
|
|
(0.09 |
) |
CONSOLIDATED BALANCE SHEETS (Unaudited; in millions, except share amounts) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,109.6 |
|
|
$ |
1,750.9 |
|
Accounts receivable, net of allowance for credit losses of |
|
948.6 |
|
|
|
861.8 |
|
Inventories |
|
854.2 |
|
|
|
716.7 |
|
Other current assets |
|
186.9 |
|
|
|
195.3 |
|
Assets of discontinued operations - current |
|
15.6 |
|
|
|
337.4 |
|
Total current assets |
|
4,114.9 |
|
|
|
3,862.1 |
|
Property, plant and equipment, net of accumulated depreciation of |
|
648.6 |
|
|
|
609.0 |
|
|
|
5,981.6 |
|
|
|
5,582.6 |
|
Other intangible assets, net |
|
3,912.7 |
|
|
|
3,797.2 |
|
Deferred tax assets |
|
28.0 |
|
|
|
15.6 |
|
Other assets |
|
468.7 |
|
|
|
329.3 |
|
Assets of discontinued operations - long-term |
|
— |
|
|
|
1,862.8 |
|
Total assets |
$ |
15,154.5 |
|
|
$ |
16,058.6 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings and current maturities of long-term debt |
$ |
38.8 |
|
|
$ |
40.4 |
|
Accounts payable |
|
670.5 |
|
|
|
536.4 |
|
Accrued liabilities |
|
741.3 |
|
|
|
708.9 |
|
Liabilities of discontinued operations - current |
|
17.1 |
|
|
|
212.9 |
|
Total current liabilities |
|
1,467.7 |
|
|
|
1,498.6 |
|
Long-term debt, less current maturities |
|
3,401.8 |
|
|
|
3,859.1 |
|
Pensions and other postretirement benefits |
|
195.1 |
|
|
|
272.5 |
|
Deferred income taxes |
|
708.6 |
|
|
|
702.4 |
|
Other liabilities |
|
310.1 |
|
|
|
343.7 |
|
Liabilities of discontinued operations - long-term |
|
— |
|
|
|
192.8 |
|
Total liabilities |
$ |
6,083.3 |
|
|
$ |
6,869.1 |
|
Stockholders' equity: |
|
|
|
||||
Common stock, |
|
4.3 |
|
|
|
4.2 |
|
Capital in excess of par value |
|
9,408.6 |
|
|
|
9,310.3 |
|
Retained earnings (accumulated deficit) |
|
378.6 |
|
|
|
(175.7 |
) |
Accumulated other comprehensive income (loss) |
|
(41.6 |
) |
|
|
14.2 |
|
|
|
(748.4 |
) |
|
|
(33.3 |
) |
Total Ingersoll Rand stockholders' equity |
$ |
9,001.5 |
|
|
$ |
9,119.7 |
|
Noncontrolling interests |
|
69.7 |
|
|
|
69.8 |
|
Total equity |
$ |
9,071.2 |
|
|
$ |
9,189.5 |
|
Total liabilities and equity |
$ |
15,154.5 |
|
|
$ |
16,058.6 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions) |
|||||||
|
Twelve Month Period Ended
|
||||||
|
2021 |
|
2020 |
||||
Cash Flows From Operating Activities From Continuing Operations: |
|
|
|||||
Net income (loss) |
$ |
565.0 |
|
|
$ |
(32.4 |
) |
Income from discontinued operations, net of tax |
|
41.6 |
|
|
|
24.4 |
|
Income (loss) from continuing operations |
|
523.4 |
|
|
|
(56.8 |
) |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations: |
|
|
|
||||
Amortization of intangible assets |
|
332.9 |
|
|
|
335.1 |
|
Depreciation |
|
89.2 |
|
|
|
77.4 |
|
Impairment of intangible assets |
|
— |
|
|
|
19.9 |
|
Non-cash restructuring charges |
|
1.1 |
|
|
|
6.2 |
|
Stock-based compensation expense |
|
87.2 |
|
|
|
47.5 |
|
Loss on equity method investments |
|
11.4 |
|
|
|
— |
|
Foreign currency transaction losses (gains), net |
|
(12.0 |
) |
|
|
18.6 |
|
Loss on extinguishment of debt |
|
9.0 |
|
|
|
2.0 |
|
Non-cash adjustments to carrying value of LIFO inventories |
|
33.2 |
|
|
|
39.8 |
|
Deferred income taxes |
|
(103.6 |
) |
|
|
(83.1 |
) |
Other non-cash adjustments |
|
(0.2 |
) |
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
||||
Receivables |
|
(62.5 |
) |
|
|
52.4 |
|
Inventories |
|
(134.4 |
) |
|
|
159.0 |
|
Accounts payable |
|
118.2 |
|
|
|
(43.4 |
) |
Accrued liabilities |
|
(220.0 |
) |
|
|
115.7 |
|
Other assets and liabilities, net |
|
(45.1 |
) |
|
|
(36.8 |
) |
Net cash provided by operating activities from continuing operations |
|
627.8 |
|
|
|
653.5 |
|
Cash Flows From Investing Activities From Continuing Operations: |
|
|
|
||||
Capital expenditures |
|
(64.1 |
) |
|
|
(42.0 |
) |
Net cash (paid) acquired in business combinations |
|
(974.8 |
) |
|
|
9.0 |
|
Disposals of property, plant and equipment |
|
9.5 |
|
|
|
1.7 |
|
Net cash used in investing activities from continuing operations |
|
(1,029.4 |
) |
|
|
(31.3 |
) |
Cash Flows From Financing Activities From Continuing Operations: |
|
|
|
||||
Principal payments on long-term debt |
|
(435.7 |
) |
|
|
(1,619.1 |
) |
Proceeds from long-term debt |
|
— |
|
|
|
1,980.1 |
|
Cash dividends on common stock | (8.2 |
) |
— |
||||
Purchases of treasury stock |
|
(736.8 |
) |
|
|
(2.1 |
) |
Proceeds from stock option exercises |
|
23.7 |
|
|
|
22.7 |
|
Payments of debt issuance costs |
|
— |
|
|
|
(47.8 |
) |
Purchase of shares from noncontrolling interests |
|
— |
|
|
|
(14.9 |
) |
Proceeds from sale of noncontrolling interests |
|
— |
|
|
|
11.9 |
|
Other financing |
|
— |
|
|
|
(2.1 |
) |
Net cash provided by (used in) financing activities from continuing operations |
|
(1,157.0 |
) |
|
|
328.7 |
|
Cash Flows From Discontinued Operations: |
|
|
|
||||
Net cash provided by (used in) operating activities |
|
(12.3 |
) |
|
|
260.8 |
|
Net cash provided by (used in) investing activities |
|
1,943.7 |
|
|
|
(6.6 |
) |
Net cash provided by discontinued operations |
|
1,931.4 |
|
|
|
254.2 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(14.1 |
) |
|
|
40.3 |
|
Net increase in cash and cash equivalents |
|
358.7 |
|
|
|
1,245.4 |
|
Cash and cash equivalents, beginning of year |
|
1,750.9 |
|
|
|
505.5 |
|
Cash and cash equivalents, end of year |
$ |
2,109.6 |
|
|
$ |
1,750.9 |
|
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (Unaudited; in millions) |
|||||||||||||||
|
For the Three Months Ended
|
|
For the Twelve Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net Income (Loss) |
$ |
293.7 |
|
|
$ |
151.1 |
|
|
$ |
565.0 |
|
|
$ |
(32.4 |
) |
Less: Income from Discontinued Operations |
|
47.9 |
|
|
|
15.4 |
|
|
|
121.0 |
|
|
|
26.0 |
|
Less: Income Tax Benefit (Provision) from Discontinued Operations |
|
81.8 |
|
|
|
29.3 |
|
|
|
(79.4 |
) |
|
|
(1.6 |
) |
Income (Loss) from Continuing Operations |
|
164.0 |
|
|
|
106.4 |
|
|
|
523.4 |
|
|
|
(56.8 |
) |
Plus: |
|
|
|
|
|
|
|
||||||||
Provision (benefit) for income taxes |
|
(47.6 |
) |
|
|
(12.9 |
) |
|
|
(21.8 |
) |
|
|
11.4 |
|
Amortization of acquisition related intangible assets |
|
83.9 |
|
|
|
92.0 |
|
|
|
315.9 |
|
|
|
327.0 |
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19.9 |
|
Restructuring and related business transformation costs |
|
6.3 |
|
|
|
8.4 |
|
|
|
18.8 |
|
|
|
88.0 |
|
Acquisition related expenses and non-cash charges |
|
26.0 |
|
|
|
22.6 |
|
|
|
65.2 |
|
|
|
181.5 |
|
Stock-based compensation |
|
23.0 |
|
|
|
20.2 |
|
|
|
95.9 |
|
|
|
47.0 |
|
Foreign currency transaction losses (gains), net |
|
1.6 |
|
|
|
5.9 |
|
|
|
(12.0 |
) |
|
|
18.6 |
|
Loss on equity method investments |
|
8.5 |
|
|
|
— |
|
|
|
11.4 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
2.0 |
|
Adjustments to LIFO inventories |
|
33.2 |
|
|
|
4.2 |
|
|
|
33.2 |
|
|
|
39.8 |
|
Gain on settlement of post-acquisition contingencies |
|
— |
|
|
|
— |
|
|
|
(30.1 |
) |
|
|
— |
|
Other adjustments |
|
(3.0 |
) |
|
|
1.8 |
|
|
|
(6.8 |
) |
|
|
5.2 |
|
Minus: |
|
|
|
|
|
|
|
||||||||
Income tax provision, as adjusted |
|
15.9 |
|
|
|
58.7 |
|
|
|
120.7 |
|
|
|
163.6 |
|
Adjusted Net Income |
$ |
280.0 |
|
|
$ |
189.9 |
|
|
$ |
881.4 |
|
|
$ |
520.0 |
|
RECONCILIATION OF DILUTED NET INCOME (LOSS) PER SHARE TO ADJUSTED DILUTED NET INCOME
(Unaudited; in millions, except per share amounts) |
|||||||||||||||
|
For the Three Months Ended
|
|
For the Twelve Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Diluted Net Income (Loss) Per Share (As Reported)1 |
$ |
0.71 |
|
|
$ |
0.36 |
|
|
$ |
1.34 |
|
|
$ |
(0.09 |
) |
Less: Diluted Net Income (Loss) Per Share from Discontinued Operations (As Reported)1 |
|
0.31 |
|
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.06 |
|
Diluted Net Income (Loss) Per Share from Continuing Operations (As Reported)1 |
|
0.40 |
|
|
|
0.25 |
|
|
|
1.24 |
|
|
|
(0.15 |
) |
Plus: |
|
|
|
|
|
|
|
||||||||
Effect of Adjusted diluted shares |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provision (benefit) for income taxes |
|
(0.11 |
) |
|
|
(0.03 |
) |
|
|
(0.05 |
) |
|
|
0.03 |
|
Amortization of acquisition related intangible assets |
|
0.20 |
|
|
|
0.22 |
|
|
|
0.75 |
|
|
|
0.84 |
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
Restructuring and related business transformation costs |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.23 |
|
Acquisition related expenses and non-cash charges |
|
0.06 |
|
|
|
0.05 |
|
|
|
0.15 |
|
|
|
0.47 |
|
Stock-based compensation |
|
0.06 |
|
|
|
0.05 |
|
|
|
0.23 |
|
|
|
0.12 |
|
Foreign currency transaction losses (gains), net |
|
— |
|
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
0.05 |
|
Loss on equity method investments |
|
0.02 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.01 |
|
Adjustments to LIFO inventories |
|
0.08 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.10 |
|
Gain on settlement of post-acquisition contingencies |
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
|
|
— |
|
Other adjustments |
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.02 |
) |
|
|
0.01 |
|
Minus: |
|
|
|
|
|
|
|
||||||||
Income tax provision, as adjusted |
|
0.04 |
|
|
|
0.14 |
|
|
|
0.29 |
|
|
|
0.42 |
|
Adjusted Diluted Net Income Per Share from Continuing Operations2 |
$ |
0.68 |
|
|
$ |
0.45 |
|
|
$ |
2.09 |
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic, as reported |
|
407.8 |
|
|
|
418.4 |
|
|
|
414.8 |
|
|
|
382.8 |
|
Diluted, as reported3 |
|
413.4 |
|
|
|
424.5 |
|
|
|
421.2 |
|
|
|
382.8 |
|
Adjusted diluted2 |
|
413.4 |
|
|
|
424.5 |
|
|
|
421.2 |
|
|
|
387.2 |
|
1 Diluted (loss) earnings per share (as reported) are calculated by dividing net (loss) income attributable to |
2 Adjusted diluted share count and adjusted diluted earnings per share include incremental dilutive shares, using the treasury stock method, which are added to average shares outstanding. |
3 Due to net losses in certain periods shown, basic and diluted average shares outstanding are the same in those periods. |
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED INCOME FROM
(Unaudited; in millions) |
|||||||||||||||
|
For the Three Month Period
|
|
For the Twelve Month Period
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net Income (Loss) |
$ |
293.7 |
|
|
$ |
151.1 |
|
|
$ |
565.0 |
|
|
$ |
(32.4 |
) |
Less: Income from discontinued operations |
|
47.9 |
|
|
|
15.4 |
|
|
|
121.0 |
|
|
|
26.0 |
|
Less: Income tax benefit (provision) from discontinued operations |
|
81.8 |
|
|
|
29.3 |
|
|
|
(79.4 |
) |
|
|
(1.6 |
) |
Income (loss) from continuing operations, net of tax |
|
164.0 |
|
|
|
106.4 |
|
|
|
523.4 |
|
|
|
(56.8 |
) |
Plus: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
19.4 |
|
|
|
24.4 |
|
|
|
87.7 |
|
|
|
111.1 |
|
Provision for income taxes |
|
(47.6 |
) |
|
|
(12.9 |
) |
|
|
(21.8 |
) |
|
|
11.4 |
|
Depreciation expense |
|
22.6 |
|
|
|
20.7 |
|
|
|
85.1 |
|
|
|
75.3 |
|
Amortization expense |
|
88.1 |
|
|
|
95.0 |
|
|
|
332.9 |
|
|
|
335.1 |
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19.9 |
|
Restructuring and related business transformation costs |
|
6.3 |
|
|
|
8.4 |
|
|
|
18.8 |
|
|
|
88.0 |
|
Acquisition related expenses and non-cash charges |
|
26.0 |
|
|
|
22.6 |
|
|
|
65.2 |
|
|
|
181.5 |
|
Stock-based compensation |
|
23.0 |
|
|
|
20.2 |
|
|
|
95.9 |
|
|
|
47.0 |
|
Foreign currency transaction losses (gains), net |
|
1.6 |
|
|
|
5.9 |
|
|
|
(12.0 |
) |
|
|
18.6 |
|
Loss on equity method investments |
|
8.5 |
|
|
|
— |
|
|
|
11.4 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
2.0 |
|
Adjustments to LIFO inventories |
|
33.2 |
|
|
|
4.2 |
|
|
|
33.2 |
|
|
|
39.8 |
|
Gain on settlement of post-acquisition contingencies |
|
— |
|
|
|
— |
|
|
|
(30.1 |
) |
|
|
— |
|
Other adjustments |
|
(3.0 |
) |
|
|
1.8 |
|
|
|
(6.8 |
) |
|
|
5.2 |
|
Adjusted EBITDA |
$ |
342.1 |
|
|
$ |
296.7 |
|
|
$ |
1,191.9 |
|
|
$ |
878.1 |
|
Minus: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
19.4 |
|
|
|
24.4 |
|
|
|
87.7 |
|
|
|
111.1 |
|
Income tax provision, as adjusted |
|
15.9 |
|
|
|
58.7 |
|
|
|
120.7 |
|
|
|
163.6 |
|
Depreciation expense |
|
22.6 |
|
|
|
20.7 |
|
|
|
85.1 |
|
|
|
75.3 |
|
Amortization of non-acquisition related intangible assets |
|
4.2 |
|
|
|
3.0 |
|
|
|
17.0 |
|
|
|
8.1 |
|
Adjusted Income from Continuing Operations, Net of Tax |
$ |
280.0 |
|
|
$ |
189.9 |
|
|
$ |
881.4 |
|
|
$ |
520.0 |
|
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow from Continuing Operations: |
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities from continuing operations |
|
246.9 |
|
|
|
315.3 |
|
|
|
627.8 |
|
|
|
653.5 |
|
Minus: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
22.9 |
|
|
|
12.9 |
|
|
|
64.1 |
|
|
|
42.0 |
|
Free Cash Flow |
$ |
224.0 |
|
|
$ |
302.4 |
|
|
$ |
563.7 |
|
|
$ |
611.5 |
|
RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES TO ADJUSTED CASH FLOW FROM
(Unaudited; in millions) |
|||||||||||||
|
For the Three Month Period
|
|
For the Twelve Month Period
|
||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||
Cash Flow from Operating Activities from Continuing Operations |
$ |
246.9 |
|
|
$ |
315.3 |
|
$ |
627.8 |
|
|
$ |
653.5 |
Plus: |
|
|
|
|
|
|
|
||||||
Synergy delivery and stand-up related costs |
|
3.9 |
|
|
|
25.5 |
|
|
31.3 |
|
|
|
153.4 |
Cash taxes related to SVT and HPS divestitures |
|
(2.6 |
) |
|
|
— |
|
|
253.7 |
|
|
|
— |
Settlement of post-acquisition contingencies |
|
— |
|
|
|
— |
|
|
(49.5 |
) |
|
|
— |
Adjusted Cash Flow from Operating Activities |
|
248.2 |
|
|
|
340.8 |
|
|
863.3 |
|
|
|
806.9 |
Minus: |
|
|
|
|
|
|
|
||||||
Capital expenditures |
|
22.9 |
|
|
|
12.9 |
|
|
64.1 |
|
|
|
42.0 |
Adjusted Free Cash Flow |
$ |
225.3 |
|
|
$ |
327.9 |
|
$ |
799.2 |
|
|
$ |
764.9 |
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS) (Unaudited; in millions) |
|||||||||||||||
|
For the Three Months
|
|
For the Twelve Months
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Orders |
|
|
|
|
|
|
|
||||||||
Industrial Technologies and Services |
$ |
1,201.1 |
|
|
$ |
996.8 |
|
|
$ |
4,678.8 |
|
|
$ |
3,254.3 |
|
Precision and Science Technologies |
|
305.9 |
|
|
|
220.3 |
|
|
|
1,085.6 |
|
|
|
746.9 |
|
Total Orders |
$ |
1,507.0 |
|
|
$ |
1,217.1 |
|
|
$ |
5,764.4 |
|
|
$ |
4,001.2 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Industrial Technologies and Services |
$ |
1,129.0 |
|
|
$ |
1,012.0 |
|
|
$ |
4,161.0 |
|
|
$ |
3,248.2 |
|
Precision and Science Technologies |
|
289.8 |
|
|
|
206.5 |
|
|
|
991.4 |
|
|
|
725.0 |
|
Total Revenue |
$ |
1,418.8 |
|
|
$ |
1,218.5 |
|
|
$ |
5,152.4 |
|
|
$ |
3,973.2 |
|
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Industrial Technologies and Services |
$ |
290.7 |
|
|
$ |
264.4 |
|
|
$ |
1,033.7 |
|
|
$ |
759.8 |
|
Precision and Science Technologies |
|
77.6 |
|
|
|
63.5 |
|
|
|
291.4 |
|
|
|
220.2 |
|
Total Segment Adjusted EBITDA |
$ |
368.3 |
|
|
$ |
327.9 |
|
|
$ |
1,325.1 |
|
|
$ |
980.0 |
|
Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes: |
|
|
|
|
|
|
|
||||||||
Corporate expenses not allocated to segments |
$ |
26.2 |
|
|
$ |
31.2 |
|
|
$ |
133.2 |
|
|
$ |
101.9 |
|
Interest expense |
|
19.4 |
|
|
|
24.4 |
|
|
|
87.7 |
|
|
|
111.1 |
|
Depreciation and amortization expense |
|
110.7 |
|
|
|
115.7 |
|
|
|
418.0 |
|
|
|
410.4 |
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19.9 |
|
Restructuring and related business transformation costs |
|
6.3 |
|
|
|
8.4 |
|
|
|
18.8 |
|
|
|
88.0 |
|
Acquisition related expenses and non-cash charges |
|
26.0 |
|
|
|
22.6 |
|
|
|
65.2 |
|
|
|
181.5 |
|
Stock-based compensation |
|
23.0 |
|
|
|
20.2 |
|
|
|
95.9 |
|
|
|
47.0 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
2.0 |
|
Foreign currency transaction losses (gains), net |
|
1.6 |
|
|
|
5.9 |
|
|
|
(12.0 |
) |
|
|
18.6 |
|
Adjustments to LIFO inventories |
|
33.2 |
|
|
|
4.2 |
|
|
|
33.2 |
|
|
|
39.8 |
|
Gain on settlement of post-acquisition contingencies |
|
— |
|
|
|
— |
|
|
|
(30.1 |
) |
|
|
— |
|
Other adjustments |
|
(3.0 |
) |
|
|
1.8 |
|
|
|
(6.8 |
) |
|
|
5.2 |
|
Income (Loss) from Continuing Operations Before Income Taxes |
|
124.9 |
|
|
|
93.5 |
|
|
|
513.0 |
|
|
|
(45.4 |
) |
Provision (benefit) for income taxes |
|
(47.6 |
) |
|
|
(12.9 |
) |
|
|
(21.8 |
) |
|
|
11.4 |
|
Loss on equity method investments |
|
(8.5 |
) |
|
|
— |
|
|
|
(11.4 |
) |
|
|
— |
|
Income (Loss) from Continuing Operations |
|
164.0 |
|
|
|
106.4 |
|
|
|
523.4 |
|
|
|
(56.8 |
) |
Income from discontinued operations, net of tax |
|
129.7 |
|
|
|
44.7 |
|
|
|
41.6 |
|
|
|
24.4 |
|
Net Income (Loss) |
$ |
293.7 |
|
|
$ |
151.1 |
|
|
$ |
565.0 |
|
|
$ |
(32.4 |
) |
ADJUSTED COMBINED FINANCIAL INFORMATION BY SEGMENT (Dollars in millions, per share amounts in whole dollars) |
|||||||
|
For the Three Months
|
|
For the Twelve Months
|
||||
Ingersoll Rand |
|
|
|
||||
Orders |
$ |
1,507.0 |
|
|
$ |
5,764.5 |
|
Revenue |
|
1,418.8 |
|
|
|
5,152.4 |
|
Adjusted EBITDA (non-GAAP) |
|
342.1 |
|
|
|
1,191.9 |
|
Adjusted EBITDA Margin (non-GAAP) |
|
24.1 |
% |
|
|
23.1 |
% |
Adjusted Net Income (non-GAAP) |
|
280.0 |
|
|
|
881.4 |
|
Adjusted Diluted EPS (non-GAAP) |
$ |
0.68 |
|
|
$ |
2.09 |
|
|
|
|
|
||||
Industrial Technologies & Services |
|
|
|
||||
Orders |
$ |
1,201.1 |
|
|
$ |
4,678.8 |
|
Revenue |
|
1,129.0 |
|
|
|
4,161.0 |
|
Adjusted EBITDA (non-GAAP) |
|
290.7 |
|
|
|
1,033.7 |
|
Adjusted EBITDA Margin (non-GAAP) |
|
25.7 |
% |
|
|
24.8 |
% |
|
|
|
|
||||
Precision & Science Technologies |
|
|
|
||||
Orders |
$ |
305.9 |
|
|
$ |
1,085.7 |
|
Revenue |
|
289.8 |
|
|
|
991.4 |
|
Adjusted EBITDA (non-GAAP) |
|
77.6 |
|
|
|
291.4 |
|
Adjusted EBITDA Margin (non-GAAP) |
|
26.8 |
% |
|
|
29.4 |
% |
ORDER AND REVENUE GROWTH BY SEGMENT(1) |
|||||
(Unaudited) |
For the Three Month Period.
|
||||
|
Orders |
|
Revenue |
||
Ingersoll Rand |
|
|
|
||
Organic growth |
18.3 |
% |
|
11.3 |
% |
Impact of foreign currency |
(1.2 |
%) |
|
(1.2 |
%) |
Impact of acquisitions |
6.7 |
% |
|
6.3 |
% |
Total adjusted orders and revenue growth |
23.8 |
% |
|
16.4 |
% |
|
|
|
|
||
Industrial Technologies & Services |
|
|
|
||
Organic growth |
19.2 |
% |
|
10.6 |
% |
Impact of foreign currency |
(1.2 |
%) |
|
(1.1 |
%) |
Impact of acquisitions |
2.5 |
% |
|
2.1 |
% |
Total adjusted orders and revenue growth |
20.5 |
% |
|
11.6 |
% |
|
|
|
|
||
Precision & Science Technologies |
|
|
|
||
Organic growth |
14.3 |
% |
|
15.0 |
% |
Impact of foreign currency |
(1.5 |
%) |
|
(1.5 |
%) |
Impact of acquisitions |
26.1 |
% |
|
26.8 |
% |
Total adjusted orders and revenue growth |
38.9 |
% |
|
40.3 |
% |
(1) |
Organic growth/(decline), impact of foreign currency, and impact of acquisitions are non-GAAP measures. References to “impact of acquisitions” refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition. The portion of GAAP revenue attributable to currency translation is calculated as the difference between (a) the period-to-period change in revenue (excluding acquisition sales) and (b) the period-to-period change in revenue (excluding acquisition sales) after applying prior year foreign exchange rates to the current year period. |
Ingersoll Rand is providing the below unaudited supplemental historical financial information of the Company on a non-GAAP adjusted basis for the fiscal year ended
-
Table 1: In Table 1, the Company presents its unaudited combined Supplemental Adjusted Orders, Supplemental Adjusted Revenues, Supplemental Adjusted EBITDA, and Supplemental Adjusted EBITDA Margin at both the consolidated Company level and segment levels for the period ended
December 31, 2020 on a basis that reflects the Transaction happening onJanuary 1, 2018 and Ingersoll Rand’s new segment structure post-Transaction. Additionally, the tables present unaudited Supplemental Further Adjusted Net Income and unaudited Supplemental Further Adjusted Diluted EPS at the consolidated Company level.
-
Table 2: In Table 2, the Company presents unaudited supplemental adjusted combined revenue growth/(decline), orders growth/(decline), and their components (including the non-GAAP measures of organic revenue growth/(decline), impact of foreign currency, and impact of acquisitions) on a basis that reflects the Transaction happening on
January 1, 2018 and Ingersoll Rand’s new segment structure post-Transaction.
- Table 3: In Table 3, the Company presents a reconciliation of GAAP Revenue to Supplemental Adjusted Revenue by Segment and for the Company and Adjusted EBITDA to Supplemental Segment Adjusted EBITDA.
- Table 4: In Table 4, the Company presents a reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA and Supplemental Adjusted EBITDA and Supplemental Further Adjusted Net Income.
- Table 5: In Table 5, the Company presents a reconciliation of GAAP Diluted EPS to Supplemental Further Adjusted Diluted EPS.
Table 1: Unaudited Supplemental Adjusted Combined Financial Information by Segment
UNAUDITED SUPPLEMENTAL ADJUSTED COMBINED FINANCIAL INFORMATION BY SEGMENT (Dollars in millions, per share amounts in whole dollars) |
|||
|
For the Twelve Months
|
||
Ingersoll Rand |
|
||
Supplemental Adjusted Orders |
$ |
4,410.5 |
|
Supplemental Adjusted Revenue (non-GAAP) |
|
4,344.4 |
|
Supplemental Adjusted EBITDA (non-GAAP) |
|
933.9 |
|
Supplemental Adjusted EBITDA Margin (non-GAAP) |
|
21.5 |
% |
Supplemental Further Adjusted Net Income (non-GAAP) |
|
542.5 |
|
Supplemental Further Adjusted Diluted EPS (non-GAAP) |
$ |
1.28 |
|
|
|
||
Industrial Technologies & Services |
|
||
Supplemental Adjusted Orders |
$ |
3,576.2 |
|
Supplemental Adjusted Revenue (non-GAAP) |
|
3,540.0 |
|
Supplemental Adjusted EBITDA (non-GAAP) |
|
800.1 |
|
Supplemental Adjusted EBITDA Margin (non-GAAP) |
|
22.6 |
% |
|
|
||
Precision & Science Technologies |
|
||
Supplemental Adjusted Orders |
$ |
834.3 |
|
Supplemental Adjusted Revenue (non-GAAP) |
|
804.4 |
|
Supplemental Adjusted EBITDA (non-GAAP) |
|
240.6 |
|
Supplemental Adjusted EBITDA Margin (non-GAAP) |
|
29.9 |
% |
Table 2: Unaudited Supplemental Adjusted Combined Revenue Growth and Order Growth by Segment (1)
UNAUDITED SUPPLEMENTAL ADJUSTED COMBINED FINANCIAL INFORMATION UNAUDITED SUPPLEMENTAL ADJUSTED REVENUE AND ORDER GROWTH BY SEGMENT |
|||
|
For the Twelve Month
|
||
|
Orders |
|
Revenue |
Ingersoll Rand |
|
|
|
Organic growth |
|
|
|
Impact of foreign currency |
|
|
|
Impact of acquisitions |
|
|
|
Total adjusted orders and revenue growth |
|
|
|
|
|
|
|
Industrial Technologies & Services |
|
|
|
Organic growth |
|
|
|
Impact of foreign currency |
|
|
|
Impact of acquisitions |
|
|
|
Total adjusted orders and revenue growth |
|
|
|
|
|
|
|
Precision & Science Technologies |
|
|
|
Organic growth |
|
|
|
Impact of foreign currency |
|
|
|
Impact of acquisitions |
|
|
|
Total adjusted orders and revenue growth |
|
|
|
(1) |
Organic growth, impact of foreign currency, and impact of acquisitions are non-GAAP measures. References to “impact of acquisitions” refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition. The portion of GAAP revenue attributable to currency translation is calculated as the difference between (a) the period-to-period change in revenue (excluding acquisition sales) and (b) the period-to-period change in revenue (excluding acquisition sales) after applying prior year foreign exchange rates to the current year period. |
Table 3: Reconciliation of GAAP Revenue to Supplemental Adjusted Revenue by Segment and for the Company and Segment Adjusted EBITDA to Supplemental Segment Adjusted EBITDA
UNAUDITED SUPPLEMENTAL ADJUSTED COMBINED FINANCIAL INFORMATION RECONCILIATION OF
(Dollars in millions) |
||||||||
|
For the Twelve Month Period Ended
|
|||||||
|
GAAP
|
|
Adjustments
|
|
Supplemental
|
|||
Segment |
|
|
|
|
|
|||
Industrial Technologies & Services |
$ |
3,248.2 |
|
$ |
291.8 |
|
$ |
3,540.0 |
Precision & Science Technologies |
|
725.0 |
|
|
79.4 |
|
|
804.4 |
|
$ |
3,973.2 |
|
$ |
371.2 |
|
$ |
4,344.4 |
|
|
|
|
|
|
|||
|
Adjusted
|
|
Adjustments
|
|
Supplemental
|
|||
Segment |
|
|
|
|
|
|||
Industrial Technologies & Services |
$ |
759.8 |
|
$ |
40.3 |
|
$ |
800.1 |
Precision & Science Technologies |
|
220.2 |
|
|
20.4 |
|
|
240.6 |
Total Segments |
$ |
980.0 |
|
$ |
60.7 |
|
$ |
1,040.7 |
(1) |
For the year ended |
Table 4: Reconciliation of GAAP Net Loss to Adjusted EBITDA and Supplemental Adjusted EBITDA and Supplemental Further Adjusted Net Income
UNAUDITED SUPPLEMENTAL ADJUSTED COMBINED FINANCIAL INFORMATION
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA AND SUPPLEMENTAL ADJUSTED EBITDA
(in millions) |
|||
|
For the Twelve Months
|
||
Net Loss (GAAP) |
$ |
(32.4 |
) |
Less: Income from discontinued operations |
|
26.0 |
|
Less: Income tax provision from discontinued operations |
|
(1.6 |
) |
Loss from continuing operations, net of tax |
|
(56.8 |
) |
Plus (1): |
|
||
Interest expense |
|
111.1 |
|
Provision for income taxes |
|
11.4 |
|
Depreciation expense |
|
75.3 |
|
Amortization expense |
|
335.1 |
|
Impairment of intangible assets |
|
19.9 |
|
Restructuring and related business transformation costs |
|
88.0 |
|
Acquisition related expenses and non-cash charges |
|
181.5 |
|
Stock-based compensation |
|
47.0 |
|
Foreign currency transaction losses, net |
|
18.6 |
|
Loss on extinguishment of debt |
|
2.0 |
|
Adjustments to LIFO inventories |
|
39.8 |
|
Other adjustments |
|
5.2 |
|
Adjusted EBITDA (1) |
|
878.1 |
|
Additional Segment Adjusted EBITDA Adjustments (2): |
|
||
Industrial Technologies & Services |
$ |
40.3 |
|
Precision & Science Technologies |
|
20.4 |
|
Incremental corporate expenses not allocated to segments |
|
(4.9 |
) |
Supplemental Adjusted EBITDA |
|
933.9 |
|
Minus: |
|
||
Adjusted interest expense |
|
119.2 |
|
Adjusted income tax provision, as adjusted |
|
177.0 |
|
Adjusted depreciation expense |
|
83.8 |
|
Adjusted amortization of non-acquisition related intangible assets |
|
11.4 |
|
Supplemental Further Adjusted Net Income |
$ |
542.5 |
|
(1) |
These amounts are reported in accordance with US GAAP and have not been adjusted to reflect the pro forma impact of a full quarter of the recently combined Ingersoll Rand. |
|
(2) |
These “Additional Segment Adjusted EBITDA Adjustments” represent the impact of two months (January and February of 2020) of standalone legacy Ingersoll Rand Industrial Segment activity in the twelve month period ended
|
Table 5: Reconciliation of GAAP Diluted EPS to Supplemental Further Adjusted Diluted EPS
UNAUDITED SUPPLEMENTAL ADJUSTED COMBINED FINANCIAL INFORMATION RECONCILIATION OF GAAP DILUTED EARNINGS PER SHARE TO SUPPLEMENTAL FURTHER ADJUSTED DILUTED EARNINGS PER SHARE (Shares in millions, per share amounts in whole dollars) |
|||
|
For the Twelve Months
|
||
Diluted Loss Per Share (GAAP) |
$ |
(0.09 |
) |
Diluted Earnings Per Share from Discontinued Operations (GAAP) |
|
0.06 |
|
Diluted Loss Per Share from Continuing Operations (GAAP) |
|
(0.15 |
) |
Plus: |
|
||
Effect of transaction (1) |
|
0.01 |
|
|
|
0.13 |
|
Interest expense |
|
0.26 |
|
Provision for income taxes |
|
0.03 |
|
Depreciation expense |
|
0.18 |
|
Amortization expense |
|
0.79 |
|
Impairment of intangible assets |
|
0.05 |
|
Restructuring and related business transformation costs |
|
0.21 |
|
Acquisition related expenses and non-cash charges |
|
0.43 |
|
Stock-based compensation |
|
0.11 |
|
Foreign currency transaction losses, net |
|
0.04 |
|
Shareholder litigation settlement recoveries |
|
0.09 |
|
Other adjustments |
|
0.03 |
|
Minus: |
|
||
Adjusted interest expense |
|
0.28 |
|
Adjusted income tax provision, as adjusted |
|
0.42 |
|
Adjusted depreciation expense |
|
0.20 |
|
Adjusted amortization of non-acquisition related intangible assets |
|
0.03 |
|
Supplemental Further Adjusted Diluted Earnings Per Share |
$ |
1.28 |
|
Supplemental Adjusted Diluted Shares Outstanding |
|
422.5 |
|
(1) |
This amount represents the impact of adjusting the GAAP weighted average shares outstanding for the period by the additional shares outstanding as if the acquisition of the Ingersoll Rand Industrial Segment was in effect for the entirety of the twelve month periods ended |
|
(2) |
The “Legacy Ingersoll Rand Industrial Segment's earnings” represent the impact of two months (January and February of 2020) of standalone legacy Ingersoll Rand Industrial Segment activity in the twelve month period ended |
_______________________________
1 Non-GAAP measure (definitions and/or reconciliations in appendix).
2 On
3 Compared to 2020 reported earnings per share
4 Non-GAAP measure (definitions and/or reconciliations in appendix).
5 Non-GAAP measure (definitions and/or reconciliations in appendix).
View source version on businesswire.com: https://www.businesswire.com/news/home/20220222006292/en/
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Source:
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