Vertiv Reports 57% Organic Orders Growth, 13% Net Sales Growth and 63% Operating Profit Growth in Second Quarter; Raises Full Year 2024 Outlook
Vertiv Holdings Co (NYSE: VRT) reported strong financial results for Q2 2024, with 57% organic orders growth and 13% net sales growth to $1,953 million. The company saw a 63% increase in operating profit to $336 million and a 52% rise in adjusted operating profit to $382 million. Adjusted operating margin expanded by 510 basis points to 19.6%.
Vertiv raised its full-year 2024 guidance, projecting net sales of $7,665 million at the midpoint, a $50 million increase from previous estimates. The company also increased its adjusted free cash flow guidance to $875 million at the midpoint. These improvements are attributed to increased AI deployment scaling and Vertiv's strong market position in critical digital infrastructure solutions.
Vertiv Holdings Co (NYSE: VRT) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con una crescita degli ordini organici del 57% e una crescita delle vendite nette del 13% a $1.953 milioni. L'azienda ha registrato un aumento del profitto operativo del 63% a $336 milioni e un aumento del profitto operativo rettificato del 52% a $382 milioni. Il margine operativo rettificato è aumentato di 510 punti base al 19,6%.
Vertiv ha alzato le previsioni per l'intero anno 2024, stimando vendite nette di $7.665 milioni al punto medio, con un incremento di $50 milioni rispetto alle stime precedenti. L'azienda ha anche aumentato la sua stima di flusso di cassa libero rettificato a $875 milioni al punto medio. Questi miglioramenti sono attribuiti all'aumento della scalabilità nel deployment dell'AI e alla posizione di mercato forte di Vertiv nelle soluzioni per infrastrutture digitali critiche.
Vertiv Holdings Co (NYSE: VRT) informó resultados financieros sólidos para el segundo trimestre de 2024, con un crecimiento del 57% en pedidos orgánicos y un crecimiento del 13% en ventas netas alcanzando $1,953 millones. La compañía vio un aumento del 63% en el beneficio operativo a $336 millones y un aumento del 52% en el beneficio operativo ajustado a $382 millones. El margen operativo ajustado se expandió en 510 puntos básicos, alcanzando el 19.6%.
Vertiv elevó sus proyecciones para el año completo 2024, estimando ventas netas de $7,665 millones en el punto medio, un aumento de $50 millones respecto a estimaciones anteriores. La compañía también aumentó su guía de flujo de caja libre ajustado a $875 millones en el punto medio. Estas mejoras se atribuyen al aumento de la escalabilidad en la implementación de AI y a la fuerte posición de mercado de Vertiv en soluciones críticas de infraestructura digital.
Vertiv Holdings Co (NYSE: VRT)는 2024년 2분기에 강력한 재무 결과를 보고했으며, 57%의 유기적 주문 성장과 13%의 순매출 성장을 기록하여 총 $1,953 백만 달러에 이릅니디. 회사는 운영 이익이 63% 증가하여 $336 백만 달러에 도달했으며, 조정된 운영 이익은 52% 증가하여 $382 백만 달러에 이르렀습니다. 조정된 운영 마진은 510 포인트 확장되어 19.6%에 도달했습니다.
Vertiv는 2024년 전체 연도에 대한 전망을 상향 조정하며, 중간 지점에서 $7,665 백만 달러의 순매출을 예측하며, 이는 이전 추정치보다 $50 백만 달러 증가한 것입니다. 회사는 또한 조정된 자유 현금 흐름 가이드를 중간 지점에서 $875 백만 달러로 증가시켰습니다. 이러한 개선은 AI 배포 확대와 Vertiv의 중요한 디지털 인프라 솔루션에서의 강력한 시장 위치에 기인합니다.
Vertiv Holdings Co (NYSE: VRT) a annoncé des résultats financiers solides pour le deuxième trimestre 2024, avec une croissance des commandes organiques de 57% et une croissance des ventes nettes de 13% atteignant 1,953 millions de dollars. L'entreprise a enregistré une augmentation de 63% du bénéfice d'exploitation à 336 millions de dollars et une augmentation de 52% du bénéfice d'exploitation ajusté à 382 millions de dollars. La marge d'exploitation ajustée s'est élargie de 510 points de base, atteignant 19,6%.
Vertiv a rehaussé ses prévisions pour l'année 2024, estimant des ventes nettes de 7,665 millions de dollars au point médian, soit une augmentation de 50 millions de dollars par rapport aux estimations précédentes. L'entreprise a également augmenté sa prévision de flux de trésorerie libre ajusté à 875 millions de dollars au point médian. Ces améliorations sont attribuées à l'augmentation de l'échelle de déploiement de l'IA et à la forte position de marché de Vertiv dans les solutions d'infrastructure numérique critiques.
Vertiv Holdings Co (NYSE: VRT) meldete im zweiten Quartal 2024 starke Finanzergebnisse mit einem Wachstum der organischen Bestellungen um 57% und einem Wachstum des Nettoumsatzes um 13% auf $1.953 Millionen. Das Unternehmen verzeichnete einen 63%igen Anstieg des Betriebsergebnisses auf $336 Millionen und einen 52%igen Anstieg des bereinigten Betriebsergebnisses auf $382 Millionen. Die bereinigte Betriebsmarge erweiterte sich um 510 Basispunkte auf 19,6%.
Vertiv hob seine Prognose für das Gesamtjahr 2024 an und rechnet mit Nettoumsätzen von $7,665 Millionen im Mittelwert, was eine Erhöhung um $50 Millionen im Vergleich zu vorherigen Schätzungen darstellt. Das Unternehmen erhöhte auch seine Prognose für den bereinigten freien Cashflow auf $875 Millionen im Mittelwert. Diese Verbesserungen werden auf die erhöhte Skalierung der KI-Implementierung sowie auf die starke Marktposition von Vertiv in kritischen digitalen Infrastrukturlösungen zurückgeführt.
- 57% organic orders growth in Q2 2024 compared to Q2 2023
- 13% net sales growth to $1,953 million in Q2 2024
- 63% increase in operating profit to $336 million
- 52% rise in adjusted operating profit to $382 million
- Adjusted operating margin expanded by 510 basis points to 19.6%
- Book-to-bill ratio of 1.4x in Q2 2024
- Raised full-year 2024 net sales guidance to $7,665 million at midpoint
- Increased adjusted free cash flow guidance to $875 million at midpoint
- Net leverage reduced to 1.8x, within target range of 1.0x to 2.0x
- Term loan repriced, resulting in annual interest savings of $13 million
- None.
Insights
The growth metrics reported by Vertiv are impressive and significantly above industry averages. The 57% growth in organic orders and 13% increase in net sales are indicative of strong market demand and effective operational execution. The adjusted operating margin improvement of 510 basis points to 19.6% highlights the company’s ability to scale efficiently.
Investors should note the improved guidance for 2024, with net sales expected to increase by $50 million at the midpoint and operating profit projections raised by 36%. This suggests that the company is confident in sustaining its growth trajectory. However, it's essential to consider the capital expenditures increase to support this growth, which could impact free cash flow in the short term.
Overall, Vertiv’s strong financial performance and upward revision in guidance indicate a robust outlook, positioning it well for sustained growth and shareholder value creation.
Vertiv’s performance can be attributed to the increasing demand for digital infrastructure, particularly due to the rise in AI deployment. The company's positioning as a key player in the data center and digital infrastructure markets is strategic, leveraging its extensive portfolio and global service network.
The book-to-bill ratio of 1.4x is a positive signal, indicating that new orders are outpacing shipments, which is a strong indicator of future revenue growth. Additionally, the company’s focus on operational excellence and productivity improvements has clearly paid off, as seen in the significant profit margin expansion.
For retail investors, Vertiv’s core market dynamics seem favorable, with growing demand for data center solutions driven by AI and digital transformation. This trend is likely to continue, providing a tailwind for the company’s future growth prospects.
Vertiv’s expanding role in the AI and data center markets is noteworthy. The emphasis on scaling AI deployment and the capacity to support this growth is critical as the demand for robust digital infrastructure escalates. With 3,750 field service engineers globally, Vertiv has a significant advantage in terms of service delivery and customer support.
The company's technology partnerships and comprehensive portfolio of thermal and power solutions uniquely position it to capitalize on the accelerating digital transformation. This is further evidenced by the strong organic order growth and increased sales guidance.
Investors should recognize Vertiv's potential to leverage its technological expertise to drive further market penetration and innovation in the digital infrastructure space, which is important for long-term growth.
-
Second quarter 2024 organic orders up
57% compared to second quarter 2023, and up37% on a trailing twelve-month basis
-
Second quarter 2024 net sales of
$1,953 million 13% higher than second quarter 2023 and organic net sales growth(1) of14%
-
Second quarter 2024 operating profit of
$336 million 63% from second quarter 2023, and adjusted operating profit(1) of$382 million 52% from second quarter 2023
-
Adjusted operating margin(1) of
19.6% , up 510 basis points compared to second quarter 2023
-
Raising 2024 net sales guidance to
$7,665 million $50 million
-
Raising 2024 operating profit guidance to
$1,256 million $1,435 million 36% compared to full year 2023
-
Raising 2024 adjusted free cash flow guidance to
$875 million $50 million
Second quarter 2024 operating profit of
“Vertiv delivered another strong performance in the second quarter with order growth again exceeding our expectations, rising
Dave Cote, Vertiv’s Executive Chairman, added: “Significant demand growth coupled with Vertiv’s unrelenting focus on operational execution to benefit our customers is translating into strong performance across the board with robust cash flow and higher profitability, accelerating progress toward our long-term target of
Adjusted Free Cash Flow(1) and Liquidity
Net cash generated by operating activities in second quarter was
Liquidity was
Updated Full Year and Third Quarter 2024 Guidance
Vertiv’s industry expertise, advanced technologies, global capacity, scale, technology partnerships and service network are key strengths that are uniquely aligned to the data center market and AI acceleration. We believe Vertiv’s continued focus on operational execution and high-performance culture will support our outlook for 2024, which has been increased for all financial measures.
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Organic net sales growth(2) |
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Adjusted operating profit(1) |
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Adjusted diluted EPS(1) |
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Full Year 2024 Guidance |
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Net sales |
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Organic net sales growth(2) |
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Adjusted operating profit(1) |
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Adjusted operating margin(2) |
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Adjusted diluted EPS(1) |
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Adjusted free cash flow(2) |
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(1) |
This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP measures and an explanation of the non-GAAP measures and reasons for their use, please refer to sections of this release entitled “Non-GAAP Financial Measures” and “Reconciliation of GAAP and non-GAAP Financial Measures.” |
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(2) |
This is a forward-looking non-GAAP financial measure that cannot be reconciled for those reasons set forth under “Non-GAAP Financial Measures” of this release. |
Second Quarter 2024 Earnings Conference Call
Vertiv’s management team will discuss the Company’s results during a conference call on Wednesday, July 24, starting at 11 a.m. Eastern Time. The call will contain forward-looking statements and other material information regarding Vertiv’s financial and operating results. A webcast of the live conference call will be available for interested parties to listen to by going to the Investor Relations section of the Company’s website at investors.vertiv.com. A slide presentation will be available before the call and will be posted to the website, also at investors.vertiv.com. A replay of the conference call will also be available for 30 days following the webcast.
About Vertiv Holdings Co
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers’ vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today’s data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in
Category: Financial News
Non-GAAP Financial Measures
Financial information included in this release has been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). Vertiv has included certain non-GAAP financial measures in this news release, as indicated above, that may not be directly comparable to other similarly titled measures used by other companies and therefore may not be comparable among companies. These non-GAAP financial measures include organic net sales growth (including on a segment basis), adjusted operating profit, adjusted operating margin, adjusted diluted EPS and adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company’s ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Pursuant to the requirements of Regulation G, Vertiv has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to third quarter and full-year 2024 guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
See “Reconciliation of GAAP and Non-GAAP Financial Measures” in this release for Vertiv’s reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Cautionary Note Concerning Forward-Looking Statements
This news release, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv’s future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding Vertiv’s financial position, capital structure, indebtedness, business strategy and plans, and objectives of Vertiv management for future operations, as well as statements regarding growth, anticipated demand for our products and services, and our business prospects during 2024, as well as expected impacts from our pricing actions, and our guidance for third quarter and full year 2024. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Vertiv cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on Vertiv. There can be no assurance that future developments affecting Vertiv will be those that Vertiv has anticipated. Vertiv undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Vertiv’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Vertiv has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports, including those set forth in the Vertiv 2023 Annual Report on Form 10-K filed with the SEC on February 23, 2024. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: risks relating to the continued growth of Vertiv’s customers’ markets; disruption of Vertiv’s customers’ orders or Vertiv’s customers’ markets; less favorable contractual terms with large customers; risks associated with governmental contracts; failure to mitigate risks associated with long-term fixed price contracts; competition in the infrastructure technologies industry; failure to obtain performance and other guarantees from financial institutions; failure to realize sales expected from Vertiv’s backlog of orders and contracts; failure to properly manage Vertiv’s supply chain or difficulties with third-party manufacturers; our ability to forecast changes in prices, including due to inflation in material, freight and/or labor costs, and timely implement measures necessary to mitigate the impacts of any such changes; risks associated with our significant backlog, including that the impacts of any measures taken to mitigate inflation will not be reflected in our financial statements immediately; failure to meet or anticipate technology changes; risks associated with information technology disruption or security; risks associated with the implementation and enhancement of information systems; failure to realize the expected benefit from any rationalization, restructuring and improvement efforts; Vertiv’s ability to realize cost savings in connection with Vertiv’s restructuring program; disruption of, or changes in, Vertiv’s independent sales representatives, distributors and original equipment manufacturers; changes to tax law; ongoing tax audits; costs or liabilities associated with product liability; the global scope of Vertiv’s operations; risks associated with Vertiv’s sales and operations in emerging markets; risks associated with future legislation and regulation of Vertiv’s customers’ markets both in
Forward-looking statements included in this news release speak only as of the date of this news release or any earlier date specified for such statements. All subsequent written or oral forward-looking statements attributable to Vertiv or persons acting on Vertiv’s behalf may be qualified in their entirety by this Cautionary Note Concerning Forward-Looking Statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) |
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Vertiv Holdings Co |
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(Dollars in millions except for per share data) |
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Three months ended
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Three months ended
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Six months ended
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Six months ended
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|||||||||
Net sales |
|
|
|
|
|
|
|
|||||||||
Net sales - products |
$ |
1,555.2 |
|
|
$ |
1,360.4 |
|
|
$ |
2,825.5 |
|
|
$ |
2,546.9 |
|
|
Net sales - services |
|
397.6 |
|
|
|
373.7 |
|
|
|
766.4 |
|
|
|
708.3 |
|
|
Net sales |
|
1,952.8 |
|
|
|
1,734.1 |
|
|
|
3,591.9 |
|
|
|
3,255.2 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|||||||||
Cost of sales - products |
|
981.0 |
|
|
|
912.9 |
|
|
|
1,827.3 |
|
|
|
1,732.4 |
|
|
Cost of sales - services |
|
230.6 |
|
|
|
227.2 |
|
|
|
457.0 |
|
|
|
433.3 |
|
|
Cost of sales |
|
1,211.6 |
|
|
|
1,140.1 |
|
|
|
2,284.3 |
|
|
|
2,165.7 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative expenses |
|
363.8 |
|
|
|
327.6 |
|
|
|
677.8 |
|
|
|
636.3 |
|
|
Amortization of intangibles |
|
45.8 |
|
|
|
45.4 |
|
|
|
91.8 |
|
|
|
90.6 |
|
|
Restructuring costs |
|
(2.5 |
) |
|
|
9.1 |
|
|
|
(2.2 |
) |
|
|
22.2 |
|
|
Foreign currency (gain) loss, net |
|
0.2 |
|
|
|
7.5 |
|
|
|
3.4 |
|
|
|
10.6 |
|
|
Other operating expense (income) |
|
(2.1 |
) |
|
|
(1.4 |
) |
|
|
(1.8 |
) |
|
|
(6.3 |
) |
|
Operating profit (loss) |
|
336.0 |
|
|
|
205.8 |
|
|
|
538.6 |
|
|
|
336.1 |
|
|
Interest expense, net |
|
44.8 |
|
|
|
46.9 |
|
|
|
83.8 |
|
|
|
93.7 |
|
|
Loss on extinguishment of debt |
|
1.1 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
|
Change in fair value of warrant liabilities |
|
25.4 |
|
|
|
46.0 |
|
|
|
202.0 |
|
|
|
41.8 |
|
|
Income (loss) before income taxes |
|
264.7 |
|
|
|
112.9 |
|
|
|
251.7 |
|
|
|
200.6 |
|
|
Income tax expense (benefit) |
|
86.6 |
|
|
|
29.7 |
|
|
|
79.5 |
|
|
|
67.1 |
|
|
Net income (loss) |
$ |
178.1 |
|
|
$ |
83.2 |
|
|
$ |
172.2 |
|
|
$ |
133.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
0.48 |
|
|
$ |
0.22 |
|
|
$ |
0.46 |
|
|
$ |
0.35 |
|
|
Diluted |
$ |
0.46 |
|
|
$ |
0.22 |
|
|
$ |
0.44 |
|
|
$ |
0.35 |
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
374,734,093 |
|
|
|
379,938,365 |
|
|
|
376,934,638 |
|
|
|
379,039,072 |
|
|
Diluted |
|
384,488,069 |
|
|
|
382,351,210 |
|
|
|
387,001,428 |
|
|
|
381,116,189 |
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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Vertiv Holdings Co |
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(Dollars in millions) |
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|
June 30, 2024 |
|
December 31, 2023 |
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ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
579.7 |
|
|
$ |
780.4 |
|
|
Accounts receivable, less allowances of |
|
2,218.8 |
|
|
|
2,118.1 |
|
|
Inventories |
|
1,103.7 |
|
|
|
884.3 |
|
|
Other current assets |
|
289.2 |
|
|
|
218.7 |
|
|
Total current assets |
|
4,191.4 |
|
|
|
4,001.5 |
|
|
Property, plant and equipment, net |
|
571.1 |
|
|
|
560.1 |
|
|
Other assets: |
|
|
|
|||||
Goodwill |
|
1,321.9 |
|
|
|
1,330.3 |
|
|
Other intangible assets, net |
|
1,577.6 |
|
|
|
1,672.9 |
|
|
Deferred income taxes |
|
160.9 |
|
|
|
159.8 |
|
|
Right-of-use assets, net |
|
180.0 |
|
|
|
173.5 |
|
|
Other |
|
105.4 |
|
|
|
100.4 |
|
|
Total other assets |
|
3,345.8 |
|
|
|
3,436.9 |
|
|
Total assets |
$ |
8,108.3 |
|
|
$ |
7,998.5 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Current portion of long-term debt |
$ |
21.2 |
|
|
$ |
21.8 |
|
|
Current portion of warrant liabilities |
|
397.0 |
|
|
|
— |
|
|
Accounts payable |
|
1,098.2 |
|
|
|
986.4 |
|
|
Deferred revenue |
|
888.8 |
|
|
|
638.9 |
|
|
Accrued expenses and other liabilities |
|
600.6 |
|
|
|
611.8 |
|
|
Income taxes |
|
74.0 |
|
|
|
46.5 |
|
|
Total current liabilities |
|
3,079.8 |
|
|
|
2,305.4 |
|
|
Long-term debt, net |
|
2,913.7 |
|
|
|
2,919.1 |
|
|
Deferred income taxes |
|
158.9 |
|
|
|
159.5 |
|
|
Warrant liabilities |
|
— |
|
|
|
195.0 |
|
|
Long-term lease liabilities |
|
149.9 |
|
|
|
142.6 |
|
|
Other long-term liabilities |
|
268.5 |
|
|
|
262.0 |
|
|
Total liabilities |
|
6,570.8 |
|
|
|
5,983.6 |
|
|
Equity |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
2,141.0 |
|
|
|
2,711.3 |
|
|
Accumulated deficit |
|
(538.4 |
) |
|
|
(691.9 |
) |
|
Accumulated other comprehensive (loss) income |
|
(65.1 |
) |
|
|
(4.5 |
) |
|
Total equity |
|
1,537.5 |
|
|
|
2,014.9 |
|
|
Total liabilities and equity |
$ |
8,108.3 |
|
|
$ |
7,998.5 |
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
Vertiv Holdings Co |
||||||||||||||||
(Dollars in millions) |
||||||||||||||||
|
Three months ended
|
|
Three months ended
|
|
Six months ended
|
|
Six months ended
|
|||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
178.1 |
|
|
$ |
83.2 |
|
|
$ |
172.2 |
|
|
$ |
133.5 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
|
|
|
|
|
|
|
|||||||||
Depreciation |
|
20.1 |
|
|
|
18.0 |
|
|
|
39.9 |
|
|
|
35.7 |
|
|
Amortization |
|
48.3 |
|
|
|
49.3 |
|
|
|
97.2 |
|
|
|
98.2 |
|
|
Deferred income taxes |
|
4.8 |
|
|
|
(1.8 |
) |
|
|
(2.8 |
) |
|
|
1.6 |
|
|
Amortization of debt discount and issuance costs |
|
2.0 |
|
|
|
2.0 |
|
|
|
4.1 |
|
|
|
4.7 |
|
|
Change in fair value of warrant liabilities |
|
25.4 |
|
|
|
46.0 |
|
|
|
202.0 |
|
|
|
41.8 |
|
|
Changes in operating working capital |
|
96.1 |
|
|
|
51.4 |
|
|
|
(3.6 |
) |
|
|
(35.5 |
) |
|
Stock-based compensation |
|
8.5 |
|
|
|
6.8 |
|
|
|
17.7 |
|
|
|
12.3 |
|
|
Other |
|
(4.9 |
) |
|
|
(1.3 |
) |
|
|
(10.8 |
) |
|
|
3.3 |
|
|
Net cash provided by (used for) operating activities |
|
378.4 |
|
|
|
253.6 |
|
|
|
515.9 |
|
|
|
295.6 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|||||||||
Capital expenditures |
|
(34.1 |
) |
|
|
(25.8 |
) |
|
|
(69.9 |
) |
|
|
(53.6 |
) |
|
Investments in capitalized software |
|
(10.9 |
) |
|
|
(0.5 |
) |
|
|
(11.6 |
) |
|
|
(2.5 |
) |
|
Proceeds from disposition of property, plant and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12.4 |
|
|
Net cash provided by (used for) investing activities |
|
(45.0 |
) |
|
|
(26.3 |
) |
|
|
(81.5 |
) |
|
|
(43.7 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|||||||||
Borrowings from ABL revolving credit facility and short-term borrowings |
|
80.0 |
|
|
|
59.5 |
|
|
|
270.0 |
|
|
|
159.7 |
|
|
Repayments of ABL revolving credit facility and short-term borrowings |
|
(80.0 |
) |
|
|
(284.5 |
) |
|
|
(270.0 |
) |
|
|
(394.7 |
) |
|
Repayment of long-term debt |
|
(5.3 |
) |
|
|
(5.5 |
) |
|
|
(10.6 |
) |
|
|
(16.4 |
) |
|
Dividend payment |
|
(9.4 |
) |
|
|
— |
|
|
|
(18.7 |
) |
|
|
— |
|
|
Repurchase of common stock |
|
— |
|
|
|
— |
|
|
|
(599.9 |
) |
|
|
— |
|
|
Exercise of employee stock options |
|
9.2 |
|
|
|
7.8 |
|
|
|
23.6 |
|
|
|
10.0 |
|
|
Employee taxes paid from shares withheld |
|
(15.0 |
) |
|
|
(2.4 |
) |
|
|
(18.0 |
) |
|
|
(2.5 |
) |
|
Net cash provided by (used for) financing activities |
|
(20.5 |
) |
|
|
(225.1 |
) |
|
|
(623.6 |
) |
|
|
(243.9 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(5.7 |
) |
|
|
(2.8 |
) |
|
|
(11.7 |
) |
|
|
(1.0 |
) |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
307.2 |
|
|
|
(0.6 |
) |
|
|
(200.9 |
) |
|
|
7.0 |
|
|
Beginning cash, cash equivalents and restricted cash |
|
280.5 |
|
|
|
280.8 |
|
|
|
788.6 |
|
|
|
273.2 |
|
|
Ending cash, cash equivalents and restricted cash |
$ |
587.7 |
|
|
$ |
280.2 |
|
|
$ |
587.7 |
|
|
$ |
280.2 |
|
|
Changes in operating working capital |
|
|
|
|
|
|
|
|||||||||
Accounts receivable |
$ |
(125.0 |
) |
|
$ |
(184.2 |
) |
|
$ |
(115.1 |
) |
|
$ |
(274.3 |
) |
|
Inventories |
|
(117.6 |
) |
|
|
(17.0 |
) |
|
|
(224.1 |
) |
|
|
(96.5 |
) |
|
Other current assets |
|
0.8 |
|
|
|
154.0 |
|
|
|
(30.9 |
) |
|
|
152.8 |
|
|
Accounts payable |
|
120.5 |
|
|
|
25.7 |
|
|
|
130.3 |
|
|
|
(36.6 |
) |
|
Deferred revenue |
|
154.7 |
|
|
|
17.1 |
|
|
|
254.7 |
|
|
|
161.3 |
|
|
Accrued expenses and other liabilities |
|
60.1 |
|
|
|
44.0 |
|
|
|
(8.4 |
) |
|
|
27.5 |
|
|
Income taxes |
|
2.6 |
|
|
|
11.8 |
|
|
|
(10.1 |
) |
|
|
30.3 |
|
|
Total changes in operating working capital |
$ |
96.1 |
|
|
$ |
51.4 |
|
|
$ |
(3.6 |
) |
|
$ |
(35.5 |
) |
|
Reconciliation of GAAP and non-GAAP Financial Measures
To supplement this news release, we have included certain non-GAAP financial measures in the format of performance metrics. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Vertiv’s non-GAAP financial measures include:
- Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles;
- Adjusted operating margin, which represents adjusted operating profit (loss) divided by net sales;
- Organic net sales growth, which represents the change in net sales adjusted to exclude the impacts of foreign currency exchange rate;
- Adjusted free cash flow, which represents net cash provided by (used for) operating activities adjusted to exclude capital expenditures, investments in capitalized software and include proceeds from disposition of PP&E; and
- Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles and change in warranty liability.
Regional Segment Results |
||||||||||||||||||||||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
|||||||||||||||||||||||||||||||||
|
2024 |
|
2023 |
|
Δ |
|
Δ% |
|
Organic
|
|
2024 |
|
2023 |
|
Δ |
|
Δ% |
|
Organic
|
|||||||||||||||||
Net sales (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
$ |
1,121.1 |
|
|
$ |
959.4 |
|
|
$ |
161.7 |
|
|
16.9 |
% |
|
17.2 |
% |
|
$ |
2,046.1 |
|
|
$ |
1,821.7 |
|
|
$ |
224.4 |
|
|
12.3 |
% |
|
12.4 |
% |
|
APAC |
|
409.1 |
|
|
|
395.8 |
|
|
|
13.3 |
|
|
3.4 |
% |
|
5.7 |
% |
|
|
741.4 |
|
|
|
708.8 |
|
|
|
32.6 |
|
|
4.6 |
% |
|
7.2 |
% |
|
EMEA |
|
422.6 |
|
|
|
378.9 |
|
|
|
43.7 |
|
|
11.5 |
% |
|
13.5 |
% |
|
|
804.4 |
|
|
|
724.7 |
|
|
|
79.7 |
|
|
11.0 |
% |
|
11.7 |
% |
|
Total |
$ |
1,952.8 |
|
|
$ |
1,734.1 |
|
|
$ |
218.7 |
|
|
12.6 |
% |
|
13.7 |
% |
|
$ |
3,591.9 |
|
|
$ |
3,255.2 |
|
|
$ |
336.7 |
|
|
10.3 |
% |
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted operating profit (loss)(3) |
|
|
||||||||||||||||||||||||||||||||||
|
$ |
285.1 |
|
|
$ |
191.7 |
|
|
$ |
93.4 |
|
|
48.7 |
% |
|
|
|
$ |
472.9 |
|
|
$ |
337.5 |
|
|
$ |
135.4 |
|
|
40.1 |
% |
|
|
|||
APAC |
|
32.3 |
|
|
|
38.2 |
|
|
|
(5.9 |
) |
|
(15.4 |
)% |
|
|
|
|
62.7 |
|
|
|
54.8 |
|
|
|
7.9 |
|
|
14.4 |
% |
|
|
|||
EMEA |
|
109.5 |
|
|
|
79.9 |
|
|
|
29.6 |
|
|
37.0 |
% |
|
|
|
|
179.8 |
|
|
|
126.0 |
|
|
|
53.8 |
|
|
42.7 |
% |
|
|
|||
Corporate (4) |
|
(45.1 |
) |
|
|
(58.6 |
) |
|
|
13.5 |
|
|
(23.0 |
)% |
|
|
|
|
(85.0 |
) |
|
|
(91.6 |
) |
|
|
6.6 |
|
|
(7.2 |
)% |
|
|
|||
Total |
$ |
381.8 |
|
|
$ |
251.2 |
|
|
$ |
130.6 |
|
|
52.0 |
% |
|
|
|
$ |
630.4 |
|
|
$ |
426.7 |
|
|
$ |
203.7 |
|
|
47.7 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted operating margins (5) |
|
|
||||||||||||||||||||||||||||||||||
|
|
25.4 |
% |
|
|
20.0 |
% |
|
|
5.4 |
% |
|
|
|
|
|
|
23.1 |
% |
|
|
18.5 |
% |
|
|
4.6 |
% |
|
|
|
|
|||||
APAC |
|
7.9 |
% |
|
|
9.7 |
% |
|
|
(1.8 |
)% |
|
|
|
|
|
|
8.5 |
% |
|
|
7.7 |
% |
|
|
0.8 |
% |
|
|
|
|
|||||
EMEA |
|
25.9 |
% |
|
|
21.1 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
22.4 |
% |
|
|
17.4 |
% |
|
|
5.0 |
% |
|
|
|
|
|||||
Vertiv |
|
19.6 |
% |
|
|
14.5 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
17.6 |
% |
|
|
13.1 |
% |
|
|
4.5 |
% |
|
|
|
|
|||||
(1) |
Segment net sales are presented excluding intercompany sales. |
|
(2) |
Organic basis is adjusted to exclude foreign currency exchange rate impact. |
|
(3) |
Adjusted operating profit (loss) is only adjusted at the Corporate segment. There are no adjustments at the reportable segment level between operating profit (loss) and adjusted operating profit (loss). |
|
(4) |
Corporate costs consist of headquarters management costs, stock-based compensation, other incentive compensation, asset impairments and costs that support centralized global functions including Finance, Treasury, Risk Management, Strategy & Marketing, and Legal. |
|
(5) |
Adjusted operating margins calculated as adjusted operating profit (loss) divided by net sales. |
Sales by product and service offering |
||||||||||||
|
Three months ended June 30, |
|||||||||||
|
2024 |
|
2023 |
|
Δ |
|
Δ % |
|||||
|
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
892.1 |
|
$ |
751.5 |
|
$ |
140.6 |
|
18.7 |
% |
|
Services & spares |
|
229.0 |
|
|
207.9 |
|
|
21.1 |
|
10.1 |
% |
|
|
$ |
1,121.1 |
|
$ |
959.4 |
|
$ |
161.7 |
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
293.1 |
|
$ |
285.7 |
|
$ |
7.4 |
|
2.6 |
% |
|
Services & spares |
|
116.0 |
|
|
110.1 |
|
|
5.9 |
|
5.4 |
% |
|
|
$ |
409.1 |
|
$ |
395.8 |
|
$ |
13.3 |
|
3.4 |
% |
|
EMEA: |
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
332.1 |
|
$ |
292.7 |
|
$ |
39.4 |
|
13.5 |
% |
|
Services & spares |
|
90.5 |
|
|
86.2 |
|
|
4.3 |
|
5.0 |
% |
|
|
$ |
422.6 |
|
$ |
378.9 |
|
$ |
43.7 |
|
11.5 |
% |
|
Total: |
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
1,517.3 |
|
$ |
1,329.9 |
|
$ |
187.4 |
|
14.1 |
% |
|
Services & spares |
|
435.5 |
|
|
404.2 |
|
|
31.3 |
|
7.7 |
% |
|
|
$ |
1,952.8 |
|
$ |
1,734.1 |
|
$ |
218.7 |
|
12.6 |
% |
|
(1) Refer to Exhibit 99.2 to Vertiv’s current report on Form 8-K filed on February 21, 2024 for a fiscal year 2023 summary of changes made to conform with the current year presentation of sales by product and service offering. |
||||||||||||
|
||||||||||||
|
Six months ended June 30, |
|||||||||||
|
2024 |
|
2023 |
|
Δ |
|
Δ % |
|||||
|
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
1,608.2 |
|
$ |
1,425.4 |
|
$ |
182.8 |
|
12.8 |
% |
|
Services & spares |
|
437.9 |
|
|
396.3 |
|
|
41.6 |
|
10.5 |
% |
|
|
$ |
2,046.1 |
|
$ |
1,821.7 |
|
$ |
224.4 |
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
517.1 |
|
$ |
494.6 |
|
$ |
22.5 |
|
4.5 |
% |
|
Services & spares |
|
224.3 |
|
|
214.2 |
|
|
10.1 |
|
4.7 |
% |
|
|
$ |
741.4 |
|
$ |
708.8 |
|
$ |
32.6 |
|
4.6 |
% |
|
EMEA: |
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
629.4 |
|
$ |
560.4 |
|
$ |
69.0 |
|
12.3 |
% |
|
Services & spares |
|
175.0 |
|
|
164.3 |
|
|
10.7 |
|
6.5 |
% |
|
|
$ |
804.4 |
|
$ |
724.7 |
|
$ |
79.7 |
|
11.0 |
% |
|
Total: |
|
|
|
|
|
|
|
|||||
Products(1) |
$ |
2,754.7 |
|
$ |
2,480.4 |
|
$ |
274.3 |
|
11.1 |
% |
|
Services & spares |
|
837.2 |
|
|
774.8 |
|
|
62.4 |
|
8.1 |
% |
|
|
$ |
3,591.9 |
|
$ |
3,255.2 |
|
$ |
336.7 |
|
10.3 |
% |
|
(1) Refer to Exhibit 99.2 to Vertiv’s current report on Form 8-K filed on February 21, 2024 for a fiscal year 2023 summary of changes made to conform with the current year presentation of sales by product and service offering. |
||||||||||||
Organic growth by product and service offering |
|||||||||||||
|
Three months ended June 30, 2024 |
||||||||||||
|
Net Sales Δ |
|
FX Δ |
|
Organic growth |
|
Organic Δ %(1) |
||||||
|
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
140.6 |
|
$ |
5.9 |
|
|
$ |
146.5 |
|
19.5 |
% |
|
Services & spares |
|
21.1 |
|
|
(2.8 |
) |
|
|
18.3 |
|
8.8 |
% |
|
|
$ |
161.7 |
|
$ |
3.1 |
|
|
$ |
164.8 |
|
17.2 |
% |
|
|
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
7.4 |
|
$ |
6.9 |
|
|
$ |
14.3 |
|
5.0 |
% |
|
Services & spares |
|
5.9 |
|
|
2.2 |
|
|
|
8.1 |
|
7.4 |
% |
|
|
$ |
13.3 |
|
$ |
9.1 |
|
|
$ |
22.4 |
|
5.7 |
% |
|
EMEA: |
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
39.4 |
|
$ |
3.8 |
|
|
$ |
43.2 |
|
14.8 |
% |
|
Services & spares |
|
4.3 |
|
|
3.6 |
|
|
|
7.9 |
|
9.2 |
% |
|
|
$ |
43.7 |
|
$ |
7.4 |
|
|
$ |
51.1 |
|
13.5 |
% |
|
Total: |
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
187.4 |
|
$ |
16.6 |
|
|
$ |
204.0 |
|
15.3 |
% |
|
Services & spares |
|
31.3 |
|
|
3.0 |
|
|
|
34.3 |
|
8.5 |
% |
|
|
$ |
218.7 |
|
$ |
19.6 |
|
|
$ |
238.3 |
|
13.7 |
% |
|
(1) Organic growth percentage change is calculated as organic growth divided by net sales for the three months ended June 30, 2023. |
|||||||||||||
(2) Refer to Exhibit 99.2 to Vertiv’s current report on Form 8-K filed on February 21, 2024 for a fiscal year 2023 summary of changes made to conform with the current year presentation of sales by product and service offering. |
|||||||||||||
|
|||||||||||||
|
Six months ended June 30, 2024 |
||||||||||||
|
Net Sales Δ |
|
FX Δ |
|
Organic growth |
|
Organic Δ %(1) |
||||||
|
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
182.8 |
|
$ |
6.4 |
|
|
$ |
189.2 |
|
13.3 |
% |
|
Services & spares |
|
41.6 |
|
|
(4.7 |
) |
|
|
36.9 |
|
9.3 |
% |
|
|
$ |
224.4 |
|
$ |
1.7 |
|
|
$ |
226.1 |
|
12.4 |
% |
|
|
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
22.5 |
|
$ |
13.0 |
|
|
$ |
35.5 |
|
7.2 |
% |
|
Services & spares |
|
10.1 |
|
|
5.4 |
|
|
|
15.5 |
|
7.2 |
% |
|
|
$ |
32.6 |
|
$ |
18.4 |
|
|
$ |
51.0 |
|
7.2 |
% |
|
EMEA: |
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
69.0 |
|
$ |
(0.9 |
) |
|
$ |
68.1 |
|
12.2 |
% |
|
Services & spares |
|
10.7 |
|
|
6.1 |
|
|
|
16.8 |
|
10.2 |
% |
|
|
$ |
79.7 |
|
$ |
5.2 |
|
|
$ |
84.9 |
|
11.7 |
% |
|
Total: |
|
|
|
|
|
|
|
||||||
Products(2) |
$ |
274.3 |
|
$ |
18.5 |
|
|
$ |
292.8 |
|
11.8 |
% |
|
Services & spares |
|
62.4 |
|
|
6.8 |
|
|
|
69.2 |
|
8.9 |
% |
|
|
$ |
336.7 |
|
$ |
25.3 |
|
|
$ |
362.0 |
|
11.1 |
% |
|
(1) Organic growth percentage change is calculated as organic growth divided by net sales for the six months ended June 30, 2023. |
|||||||||||||
(2) Refer to Exhibit 99.2 to Vertiv’s current report on Form 8-K filed on February 21, 2024 for a fiscal year 2023 summary of changes made to conform with the current year presentation of sales by product and service offering. |
|||||||||||||
Segment operating profit (loss) |
||||||||||||||||
Operating profit (loss) |
Three months ended
|
|
Three months ended
|
|
Six months ended
|
|
Six months ended
|
|||||||||
|
$ |
285.1 |
|
|
$ |
191.7 |
|
|
$ |
472.9 |
|
|
$ |
337.5 |
|
|
|
|
32.3 |
|
|
|
38.2 |
|
|
|
62.7 |
|
|
|
54.8 |
|
|
EMEA |
|
109.5 |
|
|
|
79.9 |
|
|
|
179.8 |
|
|
|
126.0 |
|
|
Total reportable segments |
|
426.9 |
|
|
|
309.8 |
|
|
|
715.4 |
|
|
|
518.3 |
|
|
Foreign currency gain (loss) |
|
(0.2 |
) |
|
|
(7.5 |
) |
|
|
(3.4 |
) |
|
|
(10.6 |
) |
|
Corporate and other |
|
(44.9 |
) |
|
|
(51.1 |
) |
|
|
(81.6 |
) |
|
|
(81.0 |
) |
|
Total corporate, other and eliminations |
|
(45.1 |
) |
|
|
(58.6 |
) |
|
|
(85.0 |
) |
|
|
(91.6 |
) |
|
Amortization of intangibles |
|
(45.8 |
) |
|
|
(45.4 |
) |
|
|
(91.8 |
) |
|
|
(90.6 |
) |
|
Operating profit (loss) |
$ |
336.0 |
|
|
$ |
205.8 |
|
|
$ |
538.6 |
|
|
$ |
336.1 |
|
|
Reconciliation of net cash provided by (used for) operating activities to adjusted free cash flow |
||||||||||||||||
|
Three months ended
|
|
Three months ended
|
|
Six months ended
|
|
Six months ended
|
|||||||||
Net cash provided by (used for) operating activities |
$ |
378.4 |
|
|
$ |
253.6 |
|
|
$ |
515.9 |
|
|
$ |
295.6 |
|
|
Capital expenditures |
|
(34.1 |
) |
|
|
(25.8 |
) |
|
|
(69.9 |
) |
|
|
(53.6 |
) |
|
Investments in capitalized software |
|
(10.9 |
) |
|
|
(0.5 |
) |
|
|
(11.6 |
) |
|
|
(2.5 |
) |
|
Proceeds from disposition of PP&E |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12.4 |
|
|
Adjusted free cash flow |
$ |
333.4 |
|
|
$ |
227.3 |
|
|
$ |
434.4 |
|
|
$ |
251.9 |
|
|
Reconciliation from operating profit (loss) to adjusted operating profit (loss) |
||||||||||||||||
|
Three months ended
|
Three months ended
|
Six months ended
|
Six months ended
|
||||||||||||
Operating profit (loss) |
$ |
336.0 |
|
$ |
205.8 |
|
$ |
538.6 |
|
$ |
336.1 |
|
||||
Amortization of intangibles |
|
45.8 |
|
|
45.4 |
|
|
91.8 |
|
|
90.6 |
|
||||
Adjusted operating profit (loss) |
$ |
381.8 |
|
$ |
251.2 |
|
$ |
630.4 |
|
$ |
426.7 |
|
||||
Reconciliation from operating margin to adjusted operating margin |
||||||||||||||||||||||||
|
Three months ended
|
|
Three months ended
|
|
Δ |
|
Six months ended
|
|
Six months ended
|
|
Δ |
|||||||||||||
Vertiv net sales |
$ |
1,952.8 |
|
|
$ |
1,734.1 |
|
|
$ |
218.7 |
|
|
$ |
3,591.9 |
|
|
$ |
3,255.2 |
|
|
$ |
336.7 |
|
|
Vertiv operating profit (loss) |
|
336.0 |
|
|
|
205.8 |
|
|
|
130.2 |
|
|
|
538.6 |
|
|
|
336.1 |
|
|
|
202.5 |
|
|
Vertiv operating margin |
|
17.2 |
% |
|
|
11.9 |
% |
|
|
5.3 |
% |
|
|
15.0 |
% |
|
|
10.3 |
% |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Amortization of intangibles |
$ |
45.8 |
|
|
$ |
45.4 |
|
|
$ |
0.4 |
|
|
$ |
91.8 |
|
|
$ |
90.6 |
|
|
$ |
1.2 |
|
|
Vertiv adjusted operating profit (loss) |
|
381.8 |
|
|
|
251.2 |
|
|
|
130.6 |
|
|
|
630.4 |
|
|
|
426.7 |
|
|
|
203.7 |
|
|
Vertiv adjusted operating margin |
|
19.6 |
% |
|
|
14.5 |
% |
|
|
5.1 |
% |
|
|
17.6 |
% |
|
|
13.1 |
% |
|
|
4.5 |
% |
|
Reconciliation of Diluted EPS to Adjusted Diluted EPS
Three months ended June 30, 2024 |
|||||||||||||||||||||||
|
Operating profit
|
|
Interest
|
|
Loss on
|
|
Change in
|
|
Income tax
|
|
Net income
|
|
Diluted EPS (1) |
||||||||||
GAAP |
$ |
336.0 |
|
$ |
44.8 |
|
$ |
1.1 |
|
$ |
25.4 |
|
|
$ |
86.6 |
|
|
$ |
178.1 |
|
$ |
0.46 |
|
Amortization of intangibles |
|
45.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
45.8 |
|
|
0.12 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
(25.4 |
) |
|
|
(9.1 |
) |
|
|
34.5 |
|
|
0.09 |
|
Non-GAAP Adjusted |
$ |
381.8 |
|
$ |
44.8 |
|
$ |
1.1 |
|
$ |
— |
|
|
$ |
77.5 |
|
|
$ |
258.4 |
|
$ |
0.67 |
|
Diluted Shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
384.5 |
|||||||||
(1) |
Diluted EPS and adjusted diluted EPS is based on 384.5 million shares (includes 374.7 million basic shares and 9.8 million potential dilutive stock options and restricted stock units). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted EPS. |
Three months ended June 30, 2023 |
|||||||||||||||||||
|
Operating profit
|
|
Interest expense,
|
|
Change in warrant
|
|
Income tax
|
|
Net income (loss) |
|
Diluted EPS (1) |
||||||||
GAAP |
$ |
205.8 |
|
$ |
46.9 |
|
$ |
46.0 |
|
|
$ |
29.7 |
|
$ |
83.2 |
|
$ |
0.22 |
|
Amortization of intangibles |
|
45.4 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
45.4 |
|
|
0.12 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
(46.0 |
) |
|
|
— |
|
|
46.0 |
|
|
0.12 |
|
Non-GAAP Adjusted |
$ |
251.2 |
|
$ |
46.9 |
|
$ |
— |
|
|
$ |
29.7 |
|
$ |
174.6 |
|
$ |
0.46 |
|
Diluted Shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
382.4 |
|||||||
(1) |
Diluted EPS and adjusted diluted EPS based on 382.4 million shares (includes 379.9 million basic shares and 2.4 million potential dilutive stock options and restricted stock units). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted EPS. |
Six months ended June 30, 2024 |
||||||||||||||||||||||
|
Operating profit
|
|
Interest
|
|
Loss on
|
|
Change in
|
|
Income tax
|
|
Net income
|
|
Diluted EPS (1) |
|||||||||
GAAP |
$ |
538.6 |
|
$ |
83.8 |
|
$ |
1.1 |
|
$ |
202.0 |
|
|
$ |
79.5 |
|
$ |
172.2 |
|
$ |
0.44 |
|
Amortization of intangibles |
|
91.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
91.8 |
|
|
0.24 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
(202.0 |
) |
|
|
38.8 |
|
|
163.2 |
|
|
0.42 |
|
Non-GAAP Adjusted |
$ |
630.4 |
|
$ |
83.8 |
|
$ |
1.1 |
|
$ |
— |
|
|
$ |
118.3 |
|
$ |
427.2 |
|
$ |
1.10 |
|
Diluted Shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
387.0 |
||||||||
(1) |
Diluted EPS and adjusted diluted EPS is based on 387.0 million shares (includes 376.9 million basic shares and 10.1 million potential dilutive stock options and restricted stock units). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted EPS. |
Six months ended June 30, 2023 |
|||||||||||||||||||
|
Operating profit
|
|
Interest expense,
|
|
Change in warrant
|
|
Income tax
|
|
Net income (loss) |
|
Diluted EPS (1) |
||||||||
GAAP |
$ |
336.1 |
|
$ |
93.7 |
|
$ |
41.8 |
|
|
$ |
67.1 |
|
$ |
133.5 |
|
$ |
0.35 |
|
Amortization of intangibles |
|
90.6 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
90.6 |
|
|
0.24 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
(41.8 |
) |
|
|
— |
|
|
41.8 |
|
|
0.11 |
|
Non-GAAP Adjusted |
$ |
426.7 |
|
$ |
93.7 |
|
$ |
— |
|
|
$ |
67.1 |
|
$ |
265.9 |
|
$ |
0.70 |
|
Diluted Shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
381.1 |
|||||||
(1) |
Diluted EPS and adjusted diluted EPS based on 381.1 million shares (includes 379.0 million basic shares and 2.1 million potential dilutive stock options and restricted stock units). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted EPS. |
Vertiv Holdings Co |
||||||||||||||||
2024 Adjusted Guidance |
||||||||||||||||
Reconciliation of Diluted EPS to Adjusted Diluted EPS (1) |
||||||||||||||||
Third Quarter 2024 |
|
|
|
|
|
|
|
|
||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Income tax expense |
|
Net income (loss) |
|
Diluted EPS (2) |
|||||||
GAAP |
$ |
341.0 |
|
$ |
41.0 |
|
$ |
104.0 |
|
|
$ |
196.0 |
|
$ |
0.51 |
|
Amortization of intangibles |
|
44.0 |
|
|
— |
|
|
— |
|
|
|
44.0 |
|
|
0.11 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
(20.0 |
) |
|
|
20.0 |
|
|
0.05 |
|
Non-GAAP Adjusted |
$ |
385.0 |
|
$ |
41.0 |
|
$ |
84.0 |
|
|
$ |
260.0 |
|
$ |
0.67 |
|
Diluted Shares (in millions) |
|
|
|
|
|
|
|
|
|
385.0 |
||||||
Full Year 2024 |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Change in warrant liability |
|
Income tax expense |
|
Net income (loss) |
|
Diluted EPS (3) |
||||||||
GAAP |
$ |
1,256.0 |
|
$ |
165.0 |
|
$ |
202.0 |
|
|
$ |
301.0 |
|
$ |
588.0 |
|
$ |
1.52 |
|
Amortization of intangibles |
|
179.0 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
179.0 |
|
|
0.46 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
(202.0 |
) |
|
|
— |
|
|
202.0 |
|
|
0.52 |
|
Non-GAAP Adjusted |
$ |
1,435.0 |
|
$ |
165.0 |
|
$ |
— |
|
|
$ |
301.0 |
|
$ |
969.0 |
|
$ |
2.50 |
|
Diluted Shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
387.0 |
|||||||
(1) |
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2024 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. |
|
(2) |
Diluted EPS and adjusted diluted EPS based on 385.0 million shares (includes 375.0 million basic shares and a weighted average 10.0 million potential dilutive stock options and restricted stock units). |
|
(3) |
Diluted EPS and adjusted diluted EPS based on 387.0 million shares (includes 377.0 million basic shares and a weighted average 10.0 million potential dilutive stock options and restricted stock units). |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723199943/en/
For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
T +1 614-841-6776
E: lynne.maxeiner@vertiv.com
For media inquiries, please contact:
Peter Poulos
FleishmanHillard for Vertiv
T +1 646-284-4991
E: peter.poulos@fleishman.com
Source: Vertiv Holdings Co
FAQ
What was Vertiv's organic orders growth in Q2 2024?
How much did Vertiv's net sales increase in Q2 2024?
What is Vertiv's updated full-year 2024 net sales guidance?
How much did Vertiv's adjusted operating profit grow in Q2 2024?
What was Vertiv's adjusted operating margin in Q2 2024?
