Vontier Reports Strong Third Quarter 2024 Results and Narrows Full Year Guidance
Vontier (VNT) reported Q3 2024 results with sales of $750 million, down 2% year-over-year, while core sales increased 2.8%. The company posted GAAP diluted EPS of $0.60 and adjusted EPS of $0.73. Operating profit declined 7.8% to $131.5 million, with margins decreasing 110 basis points to 17.5%. The Environmental & Fueling Solutions segment showed strong performance with 8.5% core sales growth, while Repair Solutions declined 5.1%. Vontier narrowed its full-year 2024 adjusted EPS guidance to a midpoint of $2.90 and initiated Q4 2024 adjusted EPS guidance of approximately $0.79.
Vontier (VNT) ha riportato i risultati del terzo trimestre 2024 con vendite di 750 milioni di dollari, in calo del 2% rispetto all'anno precedente, mentre le vendite core sono aumentate del 2,8%. L'azienda ha registrato un utile per azione diluito GAAP di 0,60 dollari e un utile per azione corretto di 0,73 dollari. L'utile operativo è diminuito del 7,8% a 131,5 milioni di dollari, con margini in calo di 110 punti base al 17,5%. Il segmento Soluzioni Ambientali e di Rifornimento ha mostrato un forte incremento con una crescita delle vendite core dell'8,5%, mentre le Soluzioni di Riparazione sono diminuite del 5,1%. Vontier ha ristretto la sua guidance sull'utile per azione corretto per l'intero anno 2024 a un punto medio di 2,90 dolari e ha iniziato la guidance sull'utile per azione corretto per il quarto trimestre 2024 di circa 0,79 dollari.
Vontier (VNT) informó los resultados del tercer trimestre de 2024 con ventas de 750 millones de dólares, una disminución del 2% en comparación con el año anterior, mientras que las ventas básicas aumentaron un 2,8%. La compañía reportó un BPA diluido GAAP de 0,60 dólares y un BPA ajustado de 0,73 dólares. El beneficio operativo cayó un 7,8% a 131,5 millones de dólares, con márgenes que disminuyeron 110 puntos básicos al 17,5%. El segmento de Soluciones Ambientales y de Combustible mostró un fuerte rendimiento con un crecimiento de ventas básicas del 8,5%, mientras que las Soluciones de Reparación cayeron un 5,1%. Vontier ajustó su guía de BPA ajustado para todo el año 2024 a un punto medio de 2,90 dólares e inició la guía de BPA ajustado para el cuarto trimestre de 2024 de aproximadamente 0,79 dólares.
Vontier (VNT)는 2024년 3분기 결과를 발표하였으며, 판매액은 7억 5천만 달러로 전년 대비 2% 감소했고, 핵심 매출은 2.8% 증가했습니다. 회사는 GAAP 희석 주당순이익(EPS)을 0.60달러, 조정 주당순이익(EPS)을 0.73달러로 보고했습니다. 운영 이익은 131.5백만 달러로 7.8% 감소하였으며, 마진은 17.5%로 110 베이시스 포인트 감소했습니다. 환경 및 연료 솔루션 부문은 8.5%의 핵심 매출 성장을 보이며 강한 성과를 나타냈고, 수리 솔루션은 5.1% 감소했습니다. Vontier는 2024년 전체 조정 EPS 지침을 2.90달러의 중간값으로 조정하고, 2024년 4분기 조정 EPS 지침을 약 0.79달러로 시작했습니다.
Vontier (VNT) a publié ses résultats pour le troisième trimestre 2024 avec des ventes de 750 millions de dollars, en baisse de 2 % par rapport à l'année précédente, tandis que les ventes principales ont augmenté de 2,8 %. La société a affiché un BPA dilué GAAP de 0,60 dollar et un BPA ajusté de 0,73 dollar. Le bénéfice d'exploitation a diminué de 7,8 % à 131,5 millions de dollars, avec des marges en baisse de 110 points de base à 17,5 %. Le segment des Solutions Environnementales et de Ravitaillement a montré une solide performance avec une croissance des ventes principales de 8,5 %, tandis que les Solutions de Réparation ont diminué de 5,1 %. Vontier a réduit sa prévision de BPA ajusté pour l'année 2024 à un point médian de 2,90 dollars et a initié une prévision de BPA ajusté pour le quatrième trimestre 2024 d'environ 0,79 dollar.
Vontier (VNT) hat die Ergebnisse für das 3. Quartal 2024 bekannt gegeben, mit einem Umsatz von 750 Millionen Dollar, was einem Rückgang von 2 % im Vergleich zum Vorjahr entspricht, während der Kernumsatz um 2,8 % gestiegen ist. Das Unternehmen verzeichnete einen verwässerten GAAP-Gewinn pro Aktie von 0,60 USD und einen angepassten Gewinn pro Aktie von 0,73 USD. Der Betriebsgewinn fiel um 7,8 % auf 131,5 Millionen Dollar, wobei die Margen um 110 Basispunkte auf 17,5 % zurückgingen. Das Segment Umwelt- und Tanklösungen zeigte eine starke Leistung mit einem Wachstum des Kernumsatzes von 8,5 %, während die Reparaturlösungen um 5,1 % zurückgingen. Vontier hat die Prognose für den angepassten Gewinn pro Aktie für das Gesamtjahr 2024 auf einen Mittelwert von 2,90 USD eingegrenzt und die Prognose für das 4. Quartal 2024 auf etwa 0,79 USD initiiert.
- Core sales increased 2.8% driven by improved retail fueling equipment demand
- Environmental & Fueling Solutions segment showed 8.5% core sales growth
- Strong cash flow with 98% adjusted free cash flow conversion
- Share repurchase of $105 million executed during the quarter
- Overall sales declined 2.0% year-over-year to $750.0 million
- Operating profit decreased 7.8% with margins down 110 basis points
- Repair Solutions segment sales declined 5.1% with operating margin down 560 basis points
- Mobility Technologies segment operating profit margin declined 270 basis points
Insights
The Q3 results demonstrate mixed performance with some concerning trends. While core sales grew 2.8%, reported sales declined
The company's guidance narrowing suggests management confidence in near-term execution, though the full-year adjusted EPS midpoint of
The segment performance reveals diverging market dynamics. The Environmental & Fueling Solutions segment benefits from strong North American and International demand for dispenser equipment and aftermarket parts. However, challenging conditions persist in car wash and auto repair markets, impacting the Mobility Technologies and Repair Solutions segments. The
-
Sales of
, down$750 million 2% vs. prior year; Core sales increased3% -
GAAP diluted net EPS of
; Adjusted diluted net EPS of$0.60 $0.73 -
Operating cash flow was
; Adjusted free cash flow was$122 million , representing$109 million 98% Adjusted free cash flow conversion -
Initiates Q4 2024 guidance for adjusted diluted net EPS of
~ $0.79 -
Narrows full year 2024 adjusted diluted net EPS to midpoint of
~ $2.90
Reported sales in the third quarter declined
“Vontier delivered solid third quarter results overall, with performance that exceeded our expectations as we continue to capitalize on strong momentum across our Convenience Retail and Fueling end markets, where we are gaining traction on new product introductions,” said Mark Morelli, President and Chief Executive Officer. “Most of our end markets remain constructive, and we are seeing encouraging signs of market stabilization in the parts of our businesses impacted by softer market demand.”
“We continue to advance our Connected Mobility strategy through innovative solutions that enable our customers’ digital transformation journey,” Morelli continued. “Vontier is uniquely positioned to lead this evolution, and I am confident we are on the right trajectory.”
Segment Results
Environmental & Fueling Solutions |
Q3 2024 |
Q3 2023 |
Change |
|||||
Sales ($M) |
$ |
349.9 |
|
$ |
331.6 |
|
5.5 |
% |
Segment Operating Profit ($M) |
$ |
103.0 |
|
$ |
95.7 |
|
7.6 |
% |
Segment Operating Profit Margin |
|
29.4 |
% |
|
28.9 |
% |
50bps |
Environmental & Fueling Solutions reported sales increased
Mobility Technologies |
Q3 2024 |
Q3 2023 |
Change |
|||||
Sales(a) ($M) |
$ |
257.4 |
|
$ |
247.7 |
|
3.9 |
% |
Segment Operating Profit ($M) |
$ |
46.6 |
|
$ |
51.4 |
|
(9.3 |
)% |
Segment Operating Profit Margin |
|
18.1 |
% |
|
20.8 |
% |
-270bps |
|
(a) Includes |
Mobility Technologies reported sales increased
Repair Solutions |
Q3 2024 |
Q3 2023 |
Change |
|||||
Sales ($M) |
$ |
152.1 |
|
$ |
160.2 |
|
(5.1 |
)% |
Segment Operating Profit ($M) |
$ |
32.6 |
|
$ |
43.3 |
|
(24.7 |
)% |
Segment Operating Profit Margin |
|
21.4 |
% |
|
27.0 |
% |
-560bps |
Repair Solutions reported sales declined
Other Items
-
Repurchased
~ , or ~3.1 million shares during the quarter ($105 million ~ year-to-date)$165 million - Net leverage ratio ended Q3 at 2.7x
2024 Outlook
-
Total sales
to$2,955 ; Core sales +$2,985 million 0.7% to +1.7% - Adjusted operating profit margin approximately flat year-over-year
-
Adjusted diluted net earnings per share in the range of
to$2.86 $2.92 -
Adjusted free cash flow conversion of ~
90%
Q4 2024 Outlook
-
Total sales approximately
; Core sales approximately +$770 million 1.5% - Adjusted operating profit margin down approximately 20 basis points year-over-year
-
Adjusted diluted net earnings per share approximately
$0.79
Conference Call Details
Vontier will discuss results and outlook during its quarterly investor conference call today starting at 8:30 a.m. ET. The call and an accompanying slide presentation will be webcast on the “Investors” section of Vontier’s website, www.vontier.com, under “Events & Presentations.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.
The call can be accessed via webcast or by dialing +1 800-549-8228, along with the conference ID: 47424. A replay of the webcast will be available at the same location shortly after the conclusion of the presentation, or by dialing +1 888-660-6264, along with the passcode 47424 or under the “Investors” section of the Vontier website under “Events & Presentations.”
ABOUT VONTIER
Vontier (NYSE: VNT) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier enables the way the world moves – delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation built upon the foundation of the Vontier Business System and embraced by colleagues worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com.
NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references “core sales growth,” “adjusted operating profit,” “adjusted operating profit margin,” “segment operating profit,” “segment operating profit margin,” “adjusted net earnings,” “adjusted diluted net earnings per share,” “free cash flow,” “adjusted free cash flow,” “adjusted free cash flow conversion,” “EBITDA,” “adjusted EBITDA” and “net leverage ratio,” which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Vontier in this release may be different from similarly-titled non-GAAP measures used by other companies.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities and anticipated earnings, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” or “will” or other words of similar meaning. There are a number of important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These risks and uncertainties include, among other things, deterioration of or instability in the economy, the markets we serve, international trade policies and the financial markets, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations that may adversely impact demand for our products or our costs, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, impact of divestitures, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to global economic, political, war or hostility, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, impact of changes to
VONTIER CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) |
|||||||
|
September 27,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
330.9 |
|
|
$ |
340.9 |
|
Accounts receivable, net |
|
531.4 |
|
|
|
497.5 |
|
Inventories |
|
333.0 |
|
|
|
296.6 |
|
Prepaid expenses and other current assets |
|
147.7 |
|
|
|
141.4 |
|
Current assets held for sale |
|
— |
|
|
|
56.1 |
|
Total current assets |
|
1,343.0 |
|
|
|
1,332.5 |
|
Property, plant and equipment, net |
|
123.5 |
|
|
|
102.3 |
|
Operating lease right-of-use assets |
|
50.2 |
|
|
|
47.0 |
|
Long-term financing receivables, net |
|
288.4 |
|
|
|
276.2 |
|
Other intangible assets, net |
|
508.6 |
|
|
|
568.3 |
|
Goodwill |
|
1,743.9 |
|
|
|
1,742.4 |
|
Other assets |
|
249.5 |
|
|
|
225.3 |
|
Total assets |
$ |
4,307.1 |
|
|
$ |
4,294.0 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings and current portion of long-term debt |
$ |
5.4 |
|
|
$ |
106.6 |
|
Trade accounts payable |
|
370.2 |
|
|
|
366.8 |
|
Current operating lease liabilities |
|
16.1 |
|
|
|
14.0 |
|
Accrued expenses and other current liabilities |
|
426.5 |
|
|
|
435.8 |
|
Current liabilities held for sale |
|
— |
|
|
|
32.1 |
|
Total current liabilities |
|
818.2 |
|
|
|
955.3 |
|
Long-term operating lease liabilities |
|
39.9 |
|
|
|
37.1 |
|
Long-term debt |
|
2,191.1 |
|
|
|
2,189.0 |
|
Other long-term liabilities |
|
214.5 |
|
|
|
217.0 |
|
Total liabilities |
|
3,263.7 |
|
|
|
3,398.4 |
|
Commitments and Contingencies |
|
|
|
||||
Equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
— |
|
|
|
— |
|
Treasury stock |
|
(567.6 |
) |
|
|
(403.4 |
) |
Additional paid-in capital |
|
75.8 |
|
|
|
56.8 |
|
Retained earnings |
|
1,419.3 |
|
|
|
1,132.1 |
|
Accumulated other comprehensive income |
|
107.1 |
|
|
|
104.9 |
|
Total Vontier stockholders’ equity |
|
1,034.6 |
|
|
|
890.4 |
|
Noncontrolling interests |
|
8.8 |
|
|
|
5.2 |
|
Total equity |
|
1,043.4 |
|
|
|
895.6 |
|
Total liabilities and equity |
$ |
4,307.1 |
|
|
$ |
4,294.0 |
|
VONTIER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 27,
|
|
September 29,
|
|
September 27,
|
|
September 29,
|
||||||||
Sales |
$ |
750.0 |
|
|
$ |
765.4 |
|
|
$ |
2,202.2 |
|
|
$ |
2,306.2 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of sales, excluding amortization of acquisition-related intangible assets |
|
(395.8 |
) |
|
|
(406.4 |
) |
|
|
(1,140.5 |
) |
|
|
(1,246.1 |
) |
Selling, general and administrative expenses |
|
(157.0 |
) |
|
|
(157.2 |
) |
|
|
(478.7 |
) |
|
|
(481.6 |
) |
Research and development expenses |
|
(45.7 |
) |
|
|
(39.1 |
) |
|
|
(135.3 |
) |
|
|
(120.4 |
) |
Amortization of acquisition-related intangible assets |
|
(20.0 |
) |
|
|
(20.1 |
) |
|
|
(60.0 |
) |
|
|
(61.1 |
) |
Operating profit |
|
131.5 |
|
|
|
142.6 |
|
|
|
387.7 |
|
|
|
397.0 |
|
Non-operating income (expense), net: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(18.9 |
) |
|
|
(22.8 |
) |
|
|
(56.2 |
) |
|
|
(70.7 |
) |
Gain on sale of business |
|
— |
|
|
|
0.3 |
|
|
|
37.2 |
|
|
|
34.4 |
|
Other non-operating expense, net |
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(1.6 |
) |
|
|
(1.6 |
) |
Earnings before income taxes |
|
112.3 |
|
|
|
119.9 |
|
|
|
367.1 |
|
|
|
359.1 |
|
Provision for income taxes |
|
(20.5 |
) |
|
|
(29.3 |
) |
|
|
(68.4 |
) |
|
|
(88.4 |
) |
Net earnings |
$ |
91.8 |
|
|
$ |
90.6 |
|
|
$ |
298.7 |
|
|
$ |
270.7 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.60 |
|
|
$ |
0.59 |
|
|
$ |
1.94 |
|
|
$ |
1.74 |
|
Diluted |
$ |
0.60 |
|
|
$ |
0.58 |
|
|
$ |
1.93 |
|
|
$ |
1.73 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
152.4 |
|
|
|
154.8 |
|
|
|
153.8 |
|
|
|
155.3 |
|
Diluted |
|
153.2 |
|
|
|
155.8 |
|
|
|
154.7 |
|
|
|
156.1 |
|
VONTIER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
September 27,
|
|
September 29,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net earnings |
$ |
298.7 |
|
|
$ |
270.7 |
|
Non-cash items: |
|
|
|
||||
Depreciation expense |
|
34.5 |
|
|
|
32.7 |
|
Amortization of acquisition-related intangible assets |
|
60.0 |
|
|
|
61.1 |
|
Stock-based compensation expense |
|
25.3 |
|
|
|
24.1 |
|
Gain on sale of business |
|
(37.2 |
) |
|
|
(34.4 |
) |
Change in deferred income taxes |
|
(11.4 |
) |
|
|
(16.1 |
) |
Other non-cash items |
|
5.0 |
|
|
|
2.4 |
|
Change in accounts receivable and long-term financing receivables, net |
|
(46.2 |
) |
|
|
(33.6 |
) |
Change in other operating assets and liabilities |
|
(69.3 |
) |
|
|
(16.8 |
) |
Net cash provided by operating activities |
|
259.4 |
|
|
|
290.1 |
|
Cash flows from investing activities: |
|
|
|
||||
Proceeds from sale of business, net of cash provided |
|
68.4 |
|
|
|
107.5 |
|
Payments for additions to property, plant and equipment |
|
(62.6 |
) |
|
|
(43.5 |
) |
Proceeds from sale of property, plant and equipment |
|
1.3 |
|
|
|
4.3 |
|
Cash paid for equity investments |
|
(2.3 |
) |
|
|
(2.7 |
) |
Proceeds from sale of equity securities |
|
0.2 |
|
|
|
20.4 |
|
Net cash provided by investing activities |
|
5.0 |
|
|
|
86.0 |
|
Cash flows from financing activities: |
|
|
|
||||
Repayment of long-term debt |
|
(100.0 |
) |
|
|
(240.0 |
) |
Net (repayments of) proceeds from short-term borrowings |
|
(1.2 |
) |
|
|
1.4 |
|
Payments of common stock cash dividend |
|
(11.5 |
) |
|
|
(11.7 |
) |
Purchases of treasury stock |
|
(164.6 |
) |
|
|
(61.6 |
) |
Proceeds from stock option exercises |
|
14.4 |
|
|
|
6.0 |
|
Other financing activities |
|
(13.9 |
) |
|
|
(7.4 |
) |
Net cash used in financing activities |
|
(276.8 |
) |
|
|
(313.3 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
2.4 |
|
|
|
(3.7 |
) |
Net change in cash and cash equivalents |
|
(10.0 |
) |
|
|
59.1 |
|
Beginning balance of cash and cash equivalents |
|
340.9 |
|
|
|
204.5 |
|
Ending balance of cash and cash equivalents |
$ |
330.9 |
|
|
$ |
263.6 |
|
VONTIER CORPORATION AND SUBSIDIARIES SEGMENT FINANCIAL SUMMARY (in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 27,
|
|
September 29,
|
|
September 27,
|
|
September 29,
|
||||||||
Sales |
|
|
|
|
|
|
|
||||||||
Mobility Technologies |
$ |
257.4 |
|
|
$ |
247.7 |
|
|
$ |
737.7 |
|
|
$ |
732.4 |
|
Repair Solutions |
|
152.1 |
|
|
|
160.2 |
|
|
|
485.3 |
|
|
|
500.0 |
|
Environmental & Fueling Solutions |
|
349.9 |
|
|
|
331.6 |
|
|
|
992.1 |
|
|
|
984.7 |
|
Other |
|
— |
|
|
|
25.9 |
|
|
|
1.3 |
|
|
|
89.1 |
|
Intersegment eliminations |
|
(9.4 |
) |
|
|
— |
|
|
|
(14.2 |
) |
|
|
— |
|
Total Vontier Sales |
$ |
750.0 |
|
|
$ |
765.4 |
|
|
$ |
2,202.2 |
|
|
$ |
2,306.2 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit (GAAP) |
$ |
131.5 |
|
|
$ |
142.6 |
|
|
$ |
387.7 |
|
|
$ |
397.0 |
|
|
|
|
|
|
|
|
|
||||||||
Segment & Adjusted Operating Profit |
|
|
|
|
|
|
|
||||||||
Mobility Technologies |
$ |
46.6 |
|
|
$ |
51.4 |
|
|
$ |
135.4 |
|
|
$ |
144.0 |
|
Repair Solutions |
|
32.6 |
|
|
|
43.3 |
|
|
|
109.4 |
|
|
|
132.2 |
|
Environmental & Fueling Solutions |
|
103.0 |
|
|
|
95.7 |
|
|
|
289.6 |
|
|
|
271.6 |
|
Other |
|
— |
|
|
|
2.2 |
|
|
|
(0.4 |
) |
|
|
8.2 |
|
Segment Operating Profit (Non-GAAP) |
|
182.2 |
|
|
|
192.6 |
|
|
|
534.0 |
|
|
|
556.0 |
|
Corporate & Other Unallocated Costs |
|
(22.6 |
) |
|
|
(23.5 |
) |
|
|
(66.1 |
) |
|
|
(65.6 |
) |
Adjusted Operating Profit (Non-GAAP) |
$ |
159.6 |
|
|
$ |
169.1 |
|
|
$ |
467.9 |
|
|
$ |
490.4 |
|
|
|
|
|
|
|
|
|
||||||||
Segment & Adjusted Operating Profit Margin |
|
|
|
|
|
|
|
||||||||
Mobility Technologies |
|
18.1 |
% |
|
|
20.8 |
% |
|
|
18.4 |
% |
|
|
19.7 |
% |
Repair Solutions |
|
21.4 |
% |
|
|
27.0 |
% |
|
|
22.5 |
% |
|
|
26.4 |
% |
Environmental & Fueling Solutions |
|
29.4 |
% |
|
|
28.9 |
% |
|
|
29.2 |
% |
|
|
27.6 |
% |
Other |
|
— |
% |
|
|
8.5 |
% |
|
|
(30.8 |
%) |
|
|
9.2 |
% |
Segment Operating Profit Margin (Non-GAAP) |
|
24.3 |
% |
|
|
25.2 |
% |
|
|
24.2 |
% |
|
|
24.1 |
% |
Adjusted Operating Profit Margin (Non-GAAP) |
|
21.3 |
% |
|
|
22.1 |
% |
|
|
21.2 |
% |
|
|
21.3 |
% |
VONTIER CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
AND OTHER INFORMATION
Core Sales Growth
We define core sales growth as the change in total sales calculated according to GAAP but excluding (i) sales from acquired and certain divested businesses; (ii) the impact of currency translation; and (iii) certain other items.
- References to sales attributable to acquisitions or acquired businesses refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to certain divested or exited businesses or product lines not considered discontinued operations.
- The portion of sales attributable to the impact of currency translation is calculated as the difference between (a) the period-to-period change in sales (excluding sales from acquired businesses) and (b) the period-to-period change in sales, including foreign operations, (excluding sales from acquired businesses) after applying the current period foreign exchange rates to the prior year period.
- The portion of sales attributable to other items is calculated as the impact of those items which are not directly correlated to core sales which do not have an impact on the current or comparable period.
Core sales growth should be considered in addition to, and not as a replacement for or superior to, total sales, and may not be comparable to similarly titled measures reported by other companies.
Management believes that reporting the non-GAAP financial measure of core sales growth provides useful information to investors by helping identify underlying growth trends in our business and facilitating easier comparisons of our sales performance with our performance in prior and future periods and to our peers. We exclude the effect of acquisitions and certain divestiture-related items because the nature, size and number of such transactions can vary dramatically from period to period and between us and our peers. We exclude the effect of currency translation and certain other items from core sales because these items are either not under management’s control or relate to items not directly correlated to core sales growth. Management believes the exclusion of these items from core sales growth may facilitate assessment of underlying business trends and may assist in comparisons of long-term performance.
Adjusted Operating Profit and Adjusted Operating Profit Margin
Adjusted operating profit refers to operating profit calculated in accordance with GAAP, but excluding amortization of acquisition-related intangible assets, costs associated with restructurings including one-time termination benefits and related charges and impairment and other charges associated with facility closure, contract termination and other related activities, and the related impact of certain divested or exited businesses or product lines not considered discontinued operations ("Restructuring- and divestiture-related adjustments"), transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, and other charges which represent charges incurred that are not part of our core operating results (“Other charges”). Adjusted operating profit margin refers to adjusted operating profit divided by GAAP sales.
Segment Operating Profit and Segment Operating Profit Margin
Segment operating profit is used by Vontier’s management in determining how to allocate resources and assess performance. Segment operating profit represents total segment sales less operating costs attributable to the segment, which does not include unallocated corporate costs and other operating costs not allocated to the reportable segments as part of management’s assessment of reportable segment operating performance, including stock-based compensation expense, amortization of acquisition-related intangible assets and other costs shown in the reconciliation to GAAP operating profit below. As part of management’s assessment of the Repair Solutions segment, a capital charge based on the segment’s financing receivables portfolio is assessed by Corporate. Segment operating profit margin refers to segment operating profit divided by GAAP sales.
Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share
Adjusted net earnings refers to net earnings calculated in accordance with GAAP, but excluding on a pretax basis amortization of acquisition-related intangible assets, Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments, including the tax effect of these adjustments and other tax adjustments. The tax effect of such adjustments was calculated by applying our estimated adjusted effective tax rate to the pretax amount of each adjustment. Adjusted diluted net earnings per share refers to adjusted net earnings divided by the weighted average diluted shares outstanding.
Free Cash Flow, Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion
Free cash flow refers to cash flow from operations calculated according to GAAP but excluding capital expenditures. Adjusted free cash flow refers to free cash flow adjusted for cash received from the sale of property, plant and equipment and cash paid for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs and Other charges. Adjusted free cash flow conversion refers to adjusted free cash flow divided by adjusted net earnings.
Net Leverage Ratio, EBITDA and Adjusted EBITDA
EBITDA refers to net earnings calculated in accordance with GAAP, excluding interest, taxes, depreciation and amortization of acquisition-related intangible assets. Adjusted EBITDA refers to EBITDA adjusted for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments. Net leverage ratio refers to net debt divided by Adjusted EBITDA.
Management believes that these non-GAAP financial measures provide useful information to investors by reflecting additional ways of viewing aspects of our operations that, when reconciled to the corresponding GAAP measure, help our investors to understand the long-term profitability trends of our business, and facilitate comparisons of our profitability to prior and future periods and to our peers.
These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.
A reconciliation of each of the projected Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings Per Share and Adjusted Free Cash Flow Conversion, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure.
Components of Sales Growth |
|||||||||||
|
% Change Three Months Ended September 27, 2024 vs. Comparable 2023 Period |
||||||||||
|
Mobility
|
|
Repair
|
|
Environmental &
|
|
Total |
||||
Total Sales Growth (GAAP) |
3.9 |
% |
|
(5.1 |
)% |
|
5.5 |
% |
|
(2.0 |
)% |
Core sales growth (Non-GAAP) |
4.2 |
% |
|
(5.1 |
)% |
|
8.5 |
% |
|
2.8 |
% |
Acquisitions and divestitures (Non-GAAP) |
— |
% |
|
— |
% |
|
(2.3 |
)% |
|
(4.4 |
)% |
Currency exchange rates (Non-GAAP) |
(0.3 |
)% |
|
— |
% |
|
(0.7 |
)% |
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
% Change Nine Months Ended September 27, 2024 vs. Comparable 2023 Period |
|||||||||||||
|
Mobility
|
|
Repair
|
|
Environmental &
|
|
Other
|
|
Total |
|||||
Total Sales Growth (GAAP) |
0.7 |
% |
|
(2.9 |
)% |
|
0.8 |
% |
|
(98.5 |
)% |
|
(4.5 |
)% |
Core sales growth (Non-GAAP) |
1.9 |
% |
|
(2.9 |
)% |
|
4.2 |
% |
|
— |
% |
|
1.2 |
% |
Acquisitions and divestitures (Non-GAAP) |
— |
% |
|
— |
% |
|
(2.7 |
)% |
|
(98.5 |
)% |
|
(5.0 |
)% |
Currency exchange rates (Non-GAAP) |
(1.2 |
)% |
|
— |
% |
|
(0.7 |
)% |
|
— |
% |
|
(0.7 |
)% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Profit to Adjusted Operating Profit and Segment Operating Profit |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
$ in millions |
September 27,
|
|
September 29,
|
|
September 27,
|
|
September 29,
|
||||||||
Operating Profit (GAAP) |
$ |
131.5 |
|
|
$ |
142.6 |
|
|
$ |
387.7 |
|
|
$ |
397.0 |
|
Amortization of acquisition-related intangible assets |
|
20.0 |
|
|
|
20.1 |
|
|
|
60.0 |
|
|
|
61.1 |
|
Restructuring- and divestiture-related adjustments |
|
4.2 |
|
|
|
3.5 |
|
|
|
12.8 |
|
|
|
22.3 |
|
Transaction- and deal-related costs |
|
0.2 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
8.8 |
|
Asbestos-related adjustments |
|
3.3 |
|
|
|
— |
|
|
|
6.6 |
|
|
|
— |
|
One-time costs related to separation |
|
0.4 |
|
|
|
0.8 |
|
|
|
1.3 |
|
|
|
2.7 |
|
Amortization of acquisition-related inventory fair value step-up |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
Gain on sale of property |
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
(2.8 |
) |
Adjusted Operating Profit (Non-GAAP) |
|
159.6 |
|
|
|
169.1 |
|
|
|
467.9 |
|
|
|
490.4 |
|
Corporate & Other Unallocated Costs |
|
22.6 |
|
|
|
23.5 |
|
|
|
66.1 |
|
|
|
65.6 |
|
Segment Operating Profit (Non-GAAP) |
$ |
182.2 |
|
|
$ |
192.6 |
|
|
$ |
534.0 |
|
|
$ |
556.0 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit Margin (GAAP) |
|
17.5 |
% |
|
|
18.6 |
% |
|
|
17.6 |
% |
|
|
17.2 |
% |
Adjusted Operating Profit Margin (Non-GAAP) |
|
21.3 |
% |
|
|
22.1 |
% |
|
|
21.2 |
% |
|
|
21.3 |
% |
Segment Operating Profit Margin (Non-GAAP) |
|
24.3 |
% |
|
|
25.2 |
% |
|
|
24.2 |
% |
|
|
24.1 |
% |
Reconciliation of Net Earnings to Adjusted Net Earnings |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
($ in millions) |
September 27,
|
|
September 29,
|
|
September 27,
|
|
September 29,
|
||||||||
Net Earnings (GAAP) |
$ |
91.8 |
|
|
$ |
90.6 |
|
|
$ |
298.7 |
|
|
$ |
270.7 |
|
Amortization of acquisition-related intangible assets |
|
20.0 |
|
|
|
20.1 |
|
|
|
60.0 |
|
|
|
61.1 |
|
Restructuring- and divestiture-related adjustments |
|
4.2 |
|
|
|
3.5 |
|
|
|
12.8 |
|
|
|
22.3 |
|
Transaction- and deal-related costs |
|
0.2 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
8.8 |
|
Asbestos-related adjustments |
|
3.3 |
|
|
|
— |
|
|
|
6.6 |
|
|
|
— |
|
One-time costs related to separation |
|
0.4 |
|
|
|
0.8 |
|
|
|
1.3 |
|
|
|
2.7 |
|
Amortization of acquisition-related inventory fair value step-up |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
Gain on sale of property |
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
(2.8 |
) |
Non-cash write-off of deferred financing costs |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
Gain on sale of business |
|
— |
|
|
|
(0.3 |
) |
|
|
(37.2 |
) |
|
|
(34.4 |
) |
Loss on equity investments |
|
0.2 |
|
|
|
0.2 |
|
|
|
0.4 |
|
|
|
1.0 |
|
Tax effect of the Non-GAAP adjustments and other tax adjustments |
|
(9.0 |
) |
|
|
(3.7 |
) |
|
|
(17.7 |
) |
|
|
(6.0 |
) |
Adjusted Net Earnings (Non-GAAP) |
$ |
111.1 |
|
|
$ |
113.4 |
|
|
$ |
324.4 |
|
|
$ |
324.9 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares outstanding |
|
153.2 |
|
|
|
155.8 |
|
|
|
154.7 |
|
|
|
156.1 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted Net Earnings Per Share (GAAP) |
$ |
0.60 |
|
|
$ |
0.58 |
|
|
$ |
1.93 |
|
|
$ |
1.73 |
|
Adjusted Diluted Net Earnings Per Share (Non-GAAP) |
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
2.10 |
|
|
$ |
2.08 |
|
Reconciliation of Operating Cash Flow to Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Conversion |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
($ in millions) |
September 27,
|
|
September 29,
|
|
September 27,
|
|
September 29,
|
||||||||
Operating Cash Flow (GAAP) |
$ |
121.8 |
|
|
$ |
131.6 |
|
|
$ |
259.4 |
|
|
$ |
290.1 |
|
Less: Purchases of property, plant & equipment (capital expenditures) |
|
(18.6 |
) |
|
|
(17.4 |
) |
|
|
(62.6 |
) |
|
|
(43.5 |
) |
Free Cash Flow (Non-GAAP) |
$ |
103.2 |
|
|
$ |
114.2 |
|
|
$ |
196.8 |
|
|
$ |
246.6 |
|
Restructuring- and divestiture-related adjustments |
|
2.6 |
|
|
|
6.6 |
|
|
|
8.3 |
|
|
|
16.1 |
|
Transaction- and deal-related costs |
|
2.4 |
|
|
|
7.6 |
|
|
|
6.2 |
|
|
|
16.1 |
|
Proceeds from sale of property, plant and equipment |
|
0.3 |
|
|
|
— |
|
|
|
1.3 |
|
|
|
4.3 |
|
Adjusted Free Cash Flow (Non-GAAP) |
$ |
108.5 |
|
|
$ |
128.4 |
|
|
$ |
212.6 |
|
|
$ |
283.1 |
|
Adjusted Net Earnings (Non-GAAP) |
$ |
111.1 |
|
|
$ |
113.4 |
|
|
$ |
324.4 |
|
|
$ |
324.9 |
|
Adjusted Free Cash Flow Conversion (Non-GAAP) |
|
97.7 |
% |
|
|
113.2 |
% |
|
|
65.5 |
% |
|
|
87.1 |
% |
Net Leverage Ratio and Reconciliation from Net Earnings to EBITDA to Adjusted EBITDA |
|||
Total Debt |
$ |
2,205.4 |
|
Less: Cash |
|
(330.9 |
) |
Net Debt |
$ |
1,874.5 |
|
Adjusted EBITDA (Non-GAAP) |
$ |
687.3 |
|
Net Leverage Ratio |
|
2.7 |
|
|
|
Three Months Ended |
|
LTM |
|||
($ in millions) |
|
September 27, 2024 |
|
September 27, 2024 |
|||
Net Earnings (GAAP) |
|
$ |
91.8 |
|
$ |
404.9 |
|
Interest expense, net |
|
|
18.9 |
|
|
79.2 |
|
Income tax expense |
|
|
20.5 |
|
|
86.6 |
|
Depreciation and amortization expense |
|
|
32.0 |
|
|
125.7 |
|
EBITDA (Non-GAAP) |
|
$ |
163.2 |
|
$ |
696.4 |
|
Restructuring- and divestiture-related adjustments |
|
|
4.2 |
|
|
16.5 |
|
Transaction- and deal-related costs |
|
|
0.2 |
|
|
3.2 |
|
Asbestos-related adjustments |
|
|
3.3 |
|
|
6.6 |
|
One-time costs related to separation |
|
|
0.4 |
|
|
1.8 |
|
Gain on sale of property |
|
|
— |
|
|
(0.5 |
) |
Gain on sale of business |
|
|
— |
|
|
(37.2 |
) |
Loss on equity investments |
|
|
0.2 |
|
|
0.5 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
171.5 |
|
$ |
687.3 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031881089/en/
INVESTOR RELATIONS:
Ryan Edelman
Vice President, Investor Relations
+1 (984) 238-1929
ryan.edelman@vontier.com
MEDIA:
Nicole Beck
Vontier Corporation
nicole.beck@vontier.com
Source: Vontier Corporation
FAQ
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