GOLDEN VALLEY, Minn.--(BUSINESS WIRE)--Feb. 5, 2008--Pentair, Inc.
(NYSE:PNR):
- Delivers full year net earnings per share from continuing
operations (EPS) on adjusted basis(a) $2.08, up 21 percent
versus 2006 adjusted EPS of $1.72
- Generates record free cash flow of $285 million for the full
year 2007, up $104 million versus 2006
- Reports strong fourth quarter sales of $830 million, up 12
percent year over year
- Announces fourth quarter reported EPS of 48 cents or 51 cents
on an adjusted basis(a)
- Affirms full year 2008 EPS guidance of between $2.25 and $2.40
(a) Adjusted 2007 and 2006 EPS exclude the benefit of
non-recurring tax items as well as the negative impact associated with
restructuring costs, legal settlements, and other market related
actions in the respective period. Adjusted 2007 and 2006 Operating
Income and Margins exclude the negative impact associated with
restructuring costs, legal settlements and other market related
actions in the respective period (see reconciliation tables attached
to this release).
Pentair, Inc. (NYSE:PNR) today announced fourth-quarter earnings
per share of 48 cents, up 23 percent from 39 cents per share in the
fourth quarter 2006. Fourth quarter 2007 adjusted earnings per share
of 51 cents were up 65 percent as compared to fourth quarter 2006
adjusted earnings per share of 31 cents. Fourth quarter 2007 adjusted
earnings per share exclude $0.01 per share favorable impact from
one-time net tax benefits and $0.04 per share negative impact from
restructuring and legal matters. Fourth quarter 2007 earnings per
share benefited from curtailments associated with changes to the
company's long-term, defined benefit and retiree medical plans
partially offset by certain cost actions. The net impact of these
items provided a $0.02 EPS benefit in the fourth quarter of 2007.
Pentair's sales for fourth quarter 2007 were $830 million, an
increase of 11.7 percent from the year-ago quarter or 4 percent
excluding acquisitions and foreign exchange. In the quarter, the
company delivered operating income of $90 million versus $61 million
in the year-earlier quarter. On a reported basis, operating margins
expanded 260 basis points to 10.9 percent. The company delivered
adjusted operating income of $96 million. On this basis, operating
margins expanded 330 basis points to 11.6 percent. Margin expansion
was driven by a positive 600 basis point improvement from
productivity, price, acquisitions, and volume. These items more than
offset a negative 270 basis point impact related to total inflation.
"Pentair's fourth quarter results demonstrate the value of the
diversity in our end markets," said Randall J. Hogan, Pentair chairman
and CEO. "Our investments in key growth regions and vertical market
initiatives, such as food service, desalination, commercial pools and
industrial water, produced double digit growth. These focused
initiatives, coupled with our strong overall growth in China, India
and the Middle East, provide momentum as we exit the year," he added.
"Further, the actions we took early in the decline of the North
American residential market and our productivity and lean enterprise
disciplines enabled the company to expand margins as expected."
FOURTH QUARTER BUSINESS HIGHLIGHTS
The Water Group delivered $566 million in sales or 13 percent
year-over-year sales growth. Acquisitions accounted for 7 points of
growth and foreign exchange equaled 2 points of growth.
- Sales in Asia-Pacific grew 28 percent year-over-year. These
results reflect strong growth in China sales for filtration
and pump systems, and in India led by sales of commercial
pump, food service solutions and rural water systems.
- Sales in Europe grew 51 percent year-over-year or 12 percent
excluding the Jung Pump acquisition. These results reflect
strength in the East European markets as well as key successes
in the flow technologies market in the Middle East.
- North American filtration sales rose 11 percent with strong
growth in food service, commercial water treatment and
industrial markets muted by declines in residential water
treatment markets. Total North American filtration sales were
down when adjusted to exclude the Porous Media acquisition.
- North American flow technologies (previously named North
American pump) sales were flat as growth in commercial and
municipal markets, new products and pricing actions offset
declines in residential markets.
- North American pool and spa sales increased 11 percent as new
products, price actions and a solid early buy program more
than offset residential market softness.
The Water Group's fourth quarter operating income totaled $64
million, an increase of 70 percent as compared to $38 million in the
same period last year. On an adjusted basis, the Group's operating
income was $68 million or 80 percent higher than the $38 million in
the year-ago period. Adjusted operating margins of 12 percent expanded
450 basis points as the benefit from productivity actions,
acquisitions, curtailment, and positive price more than offset the
negative impact from inflation, decreased volumes and cost actions.
Technical Products delivered fourth quarter 2007 sales of $265
million, an increase of 9 percent versus the year-earlier period.
Strong sales in Asia and in the North American electrical market set
the pace.
- Total electrical sales grew approximately 10 percent driven by
continued market share gains year-over-year in the industrial,
commercial and networking segments. New products contributed
significantly to this growth, especially in the networking
segment.
- Global electronic sales increased approximately 8 percent. In
Asia, sales grew 44 percent, reflecting continued growth in
China. In Europe, sales increased 8 percent; in North America,
sales declined approximately 3 percent.
Technical Products' fourth quarter reported operating income
totaled $40 million, an increase of 15 percent as compared to $34
million in the same quarter last year. Reported operating margins were
15 percent, up 80 basis points. Adjusting for the restructuring
expenses associated with a North America plant closure, operating
income totaled $42 million, up 21 percent versus the $34 million in
the fourth quarter 2006. Adjusted operating margins were 15.7 percent,
an increase of 150 basis points versus the year-ago period. In the
quarter, the benefits from volume, price, and productivity more than
offset the negative impact from total inflation.
FISCAL YEAR 2007 RESULTS
Record sales of $3.4 billion for fiscal year 2007 increased 7.7
percent from $3.15 billion a year ago. For the year, the company
reported EPS of $2.10. This represents an increase of 16 percent as
compared to the $1.81 of reported EPS in 2006. Full year 2007 results
include the favorable impact of $0.12 per share from one-time net tax
benefits and a negative $0.10 per share impact from adjustments. Full
year 2006 results included the favorable impact of $0.20 per share
from one-time net tax benefits and a negative $0.11 per share impact
from similar adjustments. Full year adjusted 2007 EPS was $2.08, up 21
percent as compared to adjusted full year 2006 EPS of $1.72.
For the year, Pentair generated a record $285 million in free cash
flow, up 57 percent compared to free cash flow of $181 million in
2006, driven by higher income and working capital reductions. The
company paid a $0.60 dividend for each share of common stock and
repurchased 1.2 million shares of stock in 2007. The company recently
announced it increased its dividend to $0.68 for each share of common
stock. Additionally, the board has approved a $50 million share
repurchase authorization that the company expects to utilize in 2008.
"Pentair's 2007 results demonstrate tremendous achievements," said
Hogan. "Despite the uncertain economic environment, we believe we are
better positioned to deliver results than we were a year ago. We
delivered in 2007 because of several key factors. First, we
aggressively reduced general and administrative cost and streamlined
our leadership. Second, we aggressively drove Pentair's Integrated
Management System (PIMS) and achieved productivity to offset high
material inflation. Moreover, we increased our investments for growth,
positioned ourselves in more attractive market segments, and improved
customer service levels from 2006.
"Our ability to expand margins 120 basis points on an adjusted
basis and deliver free cash flow well in excess of net income reflects
lean disciplines taking deeper root throughout the company, and
actions taken to improve our cost structure and to lower our corporate
tax rate," Hogan noted. "The $0.04 per share or $6.0 million total
pre-tax charge in the fourth quarter was taken to improve our North
American electronics footprint and to settle a portion of the Horizon
case. The expected benefits associated with our 2007 restructuring
actions - as well as continued productivity improvements driven by
lean disciplines - are included in our 2008 outlook," he said.
OUTLOOK
The company introduces first quarter 2008 earnings per share
guidance in the range of $0.46 to $0.48, an increase of 10 to 14
percent year-over-year. The company affirms full year 2008 EPS
guidance range of $2.25 to $2.40, an increase of 8 to 15 percent
versus 2007 adjusted EPS.
"Pentair remains focused on delivering operating margin and
earnings growth in 2008," Hogan said. "We expect the return on the
investments we made this past year to drive growth and expand
international sales in 2008 - and we will further increase investments
against our best opportunities. We remain relentless on cost
productivity and we expect greater improvements from supply
management," he noted. "These factors, coupled with our lower
sustainable tax rate, enable us to remain committed to our EPS range
of $2.25 to $2.40 for 2008. We continue to drive working capital
performance and expect full year 2008 free cash flow to be at least
100 percent conversion of net income," Hogan concluded.
EARNINGS CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and Chief Financial
Officer John L. Stauch will discuss the Company's performance, and
first quarter and full year 2008 guidance on a two-way conference call
with investors at 12:00 p.m. Eastern today. Reconciliation of any
non-GAAP financial measures are set forth in the attachments to this
fourth quarter 2007 earnings release and in the fourth quarter 2007
earning release conference call presentation, both of which can be
found at Pentair's web site (www.pentair.com). Related financial
charts and certain other information to be discussed on the conference
call will be available on the company's website shortly before the
conference call. The web cast and presentation will be archived at the
same site following the conclusion of the conference call.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Any statements made about the company's anticipated financial
results are forward-looking statements subject to risks and
uncertainties such as continued economic growth, including: the
strength of housing and related markets; the ability to integrate
acquisitions successfully and the risk that expected synergies may not
be fully realized or may take longer to realize than expected; the
ability to successfully limit any judgment arising out of the Horizon
litigation; foreign currency effects; retail and industrial demand;
product introductions; and pricing and other competitive pressures, as
well as other risk factors set forth in our SEC filings.
Forward-looking statements included herein are made as of the date
hereof, and the company undertakes no obligation to update publicly
such statements to reflect subsequent events or circumstances. Actual
results could differ materially from anticipated results.
ABOUT PENTAIR, INC.
Pentair (www.pentair.com) is a diversified operating company
headquartered in Minnesota. Its Water Group is a global leader in
providing innovative products and systems used worldwide in the
movement, treatment, storage and enjoyment of water. Pentair's
Technical Products Group is a leader in the global enclosures and
thermal management markets, designing and manufacturing thermal
management products and standard, modified, and custom enclosures that
house and protect sensitive electronics and electrical components.
With 2007 revenues of $3.40 billion, Pentair employs approximately
16,000 people worldwide.
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
Three months ended Year ended
----------------------- -----------------------
December 31 December 31 December 31 December 31
In thousands, except
per-share data 2007 2006 2007 2006
----------------------------------------------------------------------
Net sales $ 830,224 $ 743,038 $3,398,698 $3,154,469
Cost of goods sold 572,589 534,472 2,374,048 2,248,219
----------------------------------------------------------------------
Gross profit 257,635 208,566 1,024,650 906,250
% of net sales 31.0% 28.1% 30.1% 28.7%
Selling, general and
administrative 152,866 133,126 587,865 537,877
% of net sales 18.4% 17.9% 17.3% 17.1%
Research and
development 14,606 14,038 58,810 58,055
% of net sales 1.8% 1.9% 1.7% 1.8%
----------------------------------------------------------------------
Operating income 90,163 61,402 377,975 310,318
% of net sales 10.9% 8.3% 11.1% 9.8%
Gain (loss) on sale of
assets, net (1,230) 197 (1,230) 364
Equity losses of
unconsolidated
subsidiary (1,027) (1,240) (2,865) (3,332)
Net interest expense 17,396 13,020 70,237 51,881
% of net sales 2.1% 1.7% 2.1% 1.6%
----------------------------------------------------------------------
Income from continuing
operations before
income taxes 70,510 47,339 303,643 255,469
% of net sales 8.5% 6.4% 8.9% 8.1%
Provision for income
taxes 22,196 8,717 93,154 71,702
Effective tax rate 31.5% 18.4% 30.7% 28.1%
----------------------------------------------------------------------
Income from continuing
operations 48,314 38,622 210,489 183,767
Gain (loss) on
disposal of
discontinued
operations, net of
tax 231 15 438 (36)
----------------------------------------------------------------------
Net income $ 48,545 $ 38,637 $ 210,927 $ 183,731
======================================================================
Earnings per common
share
Basic
Continuing operations $ 0.49 $ 0.39 $ 2.13 $ 1.84
Discontinued
operations -- -- -- --
----------------------------------------------------------------------
Basic earnings per
common share $ 0.49 $ 0.39 $ 2.13 $ 1.84
======================================================================
Diluted
Continuing operations $ 0.48 $ 0.39 $ 2.10 $ 1.81
Discontinued
operations -- -- -- --
----------------------------------------------------------------------
Diluted earnings per
common share $ 0.48 $ 0.39 $ 2.10 $ 1.81
======================================================================
Weighted average
common shares
outstanding
Basic 98,448 98,747 98,762 99,784
Diluted 99,859 100,233 100,205 101,371
Cash dividends
declared per common
share $ 0.15 $ 0.14 $ 0.60 $ 0.56
Pentair, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
December 31 December 31
In thousands 2007 2006
----------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 70,795 $ 54,820
Accounts and notes receivable, net 472,222 422,134
Inventories 407,127 398,857
Deferred tax assets 51,556 50,578
Prepaid expenses and other current assets 36,321 31,239
----------------------------------------------------------------------
Total current assets 1,038,021 957,628
Property, plant and equipment, net 367,426 330,372
Other assets
Goodwill 2,021,526 1,718,771
Intangibles, net 491,403 287,011
Other 82,238 71,197
----------------------------------------------------------------------
Total other assets 2,595,167 2,076,979
----------------------------------------------------------------------
Total assets $4,000,614 $3,364,979
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Short-term borrowings $ 13,586 $ 14,563
Current maturities of long-term debt 5,182 7,625
Accounts payable 231,643 206,286
Employee compensation and benefits 112,147 88,882
Current pension and post-retirement benefits 8,557 7,918
Accrued product claims and warranties 49,382 44,093
Income taxes 12,599 22,493
Accrued rebates and sales incentives 36,867 39,419
Other current liabilities 90,943 90,003
----------------------------------------------------------------------
Total current liabilities 560,906 521,282
Other liabilities
Long-term debt 1,042,223 721,873
Long term income taxes payable 21,306 --
Pension and other retirement compensation 161,042 207,676
Post-retirement medical and other benefits 37,147 47,842
Deferred tax liabilities 170,033 109,781
Other non-current liabilities 97,086 86,526
----------------------------------------------------------------------
Total liabilities 2,089,743 1,694,980
Shareholders' equity 1,910,871 1,669,999
----------------------------------------------------------------------
Total liabilities and shareholders' equity $4,000,614 $3,364,979
======================================================================
Days sales in accounts receivable (13 month
moving average) 53 54
Days inventory on hand (13 month moving
average) 77 76
Days in accounts payable (13 month moving
average) 54 56
Debt/total capital 35.7% 30.8%
NOTE: The Company adopted the provisions of Financial Accounting
Standards Board (FASB) Interpretation No. 48, Accounting for
Uncertainty in Income Taxes - an interpretation of FASB No. 109 ("FIN
48") on January 1, 2007. As a result of adoption of FIN 48, the
Company recorded an adjustment to retained earnings of $2.9 million in
the first quarter of 2007. Additionally, the Company has added the
line "Long-term income taxes payable" to the Company's Condensed
Consolidated Balance Sheets to report its total long-term liability
for unrecognized tax benefits.
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Year ended
-----------------------
December 31 December 31
In thousands 2007 2006
----------------------------------------------------------------------
Operating activities
Net income $ 210,927 $ 183,731
Adjustments to reconcile net income to net
cash provided by operating activities
Loss (gain) on disposal of discontinued
operations (438) 36
Equity losses of unconsolidated subsidiary 2,865 3,332
Depreciation 58,948 56,899
Amortization 25,601 18,197
Deferred income taxes (16,496) (11,085)
Stock compensation 22,913 25,377
Excess tax benefits from stock-based
compensation (4,204) (3,043)
Loss on sale of assets, net (1,929) (364)
Changes in assets and liabilities, net of
effects of business acquisitions
Accounts and notes receivable (16,777) 15,873
Inventories 19,057 (39,354)
Prepaid expenses and other current assets 2,504 (5,052)
Accounts payable 18,134 (18,935)
Employee compensation and benefits 4,129 (13,229)
Accrued product claims and warranties 4,739 456
Income taxes 1,885 9,556
Other current liabilities (2,947) (13,784)
Pension and post-retirement benefits 6 19,398
Other assets and liabilities 12,963 3,554
----------------------------------------------------------------------
Net cash provided by continuing
operations 341,880 231,563
Net cash provided by operating activities
of discontinued operations -- 48
----------------------------------------------------------------------
Net cash provided by operating
activities 341,880 231,611
Investing activities
Capital expenditures (62,129) (51,078)
Proceeds from sale of property and equipment 5,209 684
Acquisitions, net of cash acquired (487,561) (29,286)
Divestitures -- (24,007)
Proceeds from sale of investment -- 1,153
Other (5,544) (7,523)
----------------------------------------------------------------------
Net cash used for investing activities (550,025) (110,057)
Financing activities
Net short-term borrowings (1,830) 13,831
Proceeds from long-term debt 1,269,428 608,975
Repayment of long-term debt (954,077) (631,755)
Debt issuance costs (1,876) --
Excess tax benefits from stock-based
compensation 4,204 3,043
Proceeds from exercise of stock options 7,388 4,066
Repurchases of common stock (40,641) (59,359)
Dividends paid (59,910) (56,583)
----------------------------------------------------------------------
Net cash provided by (used for)
financing activities 222,686 (117,782)
Effect of exchange rate changes on cash 1,434 2,548
----------------------------------------------------------------------
Change in cash and cash equivalents 15,975 6,320
Cash and cash equivalents, beginning of period 54,820 48,500
----------------------------------------------------------------------
Cash and cash equivalents, end of period $ 70,795 $ 54,820
======================================================================
Free cash flow
Net cash provided by operating activities $ 341,880 $ 231,611
Less capital expenditures (62,129) (51,078)
Proceeds from sale of property and equipment 5,209 684
----------------------------------------------------------------------
Free cash flow $ 284,960 $ 181,217
======================================================================
Pentair, Inc. and Subsidiaries
Supplemental Financial Information by Reportable Business Segment for
2007 (Unaudited)
First Qtr Second Qtr Third Qtr Fourth Qtr Year
In thousands 2007 2007 2007 2007 2007
----------------------------------------------------------------------
Net sales to
external
customers
Water $555,412 $665,495 $562,133 $ 565,525 $2,348,565
Technical
Products 252,583 257,150 275,701 264,699 1,050,133
----------------------------------------------------------------------
Consolidated $807,995 $922,645 $837,834 $ 830,224 $3,398,698
======================================================================
Intersegment
sales
Water $ 214 $ 46 $ 207 $ 196 $ 663
Technical
Products 896 1,689 1,526 1,192 5,303
Other (1,110) (1,735) (1,733) (1,388) (5,966)
----------------------------------------------------------------------
Consolidated $ -- $ -- $ -- $ -- $ --
======================================================================
Operating income
(loss)
Water $ 61,836 $ 91,014 $ 54,530 $ 63,987 $ 271,367
Technical
Products 31,631 36,140 46,237 39,578 153,586
Other (12,357) (12,273) (8,946) (13,402) (46,978)
----------------------------------------------------------------------
Consolidated $ 81,110 $114,881 $ 91,821 $ 90,163 $ 377,975
======================================================================
Operating income
as a percent of
net sales
Water 11.1% 13.7% 9.7% 11.3% 11.6%
Technical
Products 12.5% 14.1% 16.8% 15.0% 14.6%
Consolidated 10.0% 12.5% 11.0% 10.9% 11.1%
Pentair, Inc. and Subsidiaries
Supplemental Financial Information by Reportable Business Segment for
2006 (Unaudited)
First Qtr Second Qtr Third Qtr Fourth Qtr Year
In thousands 2006 2006 2006 2006 2006
----------------------------------------------------------------------
Net sales to
external
customers
Water $517,169 $605,516 $531,703 $ 500,837 $2,155,225
Technical
Products 254,220 256,506 246,317 242,201 999,244
----------------------------------------------------------------------
Consolidated $771,389 $862,022 $778,020 $ 743,038 $3,154,469
======================================================================
Intersegment
sales
Water $ 50 $ 55 $ 140 $ 214 $ 459
Technical
Products 889 1,312 1,133 623 3,957
Other (939) (1,367) (1,273) (837) (4,416)
----------------------------------------------------------------------
Consolidated $ -- $ -- $ -- $ -- $ --
======================================================================
Operating income
(loss)
Water $ 56,196 $ 84,956 $ 36,944 $ 37,734 $ 215,830
Technical
Products 37,704 39,678 37,050 34,473 148,905
Other (14,735) (15,894) (12,983) (10,805) (54,417)
----------------------------------------------------------------------
Consolidated $ 79,165 $108,740 $ 61,011 $ 61,402 $ 310,318
======================================================================
Operating income
as a percent of
net sales
Water 10.9% 14.0% 6.9% 7.5% 10.0%
Technical
Products 14.8% 15.5% 15.0% 14.2% 14.9%
Consolidated 10.3% 12.6% 7.8% 8.3% 9.8%
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP "As Reported" year ending December 31, 2007
to the "Adjusted" non-GAAP
excluding the effect of 2007 adjustments (Unaudited)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
In thousands,
except per-share
data 2007 2007 2007 2007 2007
----------------------------------------------------------------------
Net sales $807,995 $922,645 $837,834 $830,224 $3,398,698
----------------------------------------------------------------------
Operating income -
as reported 81,110 114,881 91,821 90,163 377,975
% of net sales 10.0% 12.5% 11.0% 10.9% 11.1%
Adjustments -- -- 9,192 5,970 15,162
----------------------------------------------------------------------
Operating income -
as adjusted 81,110 114,881 101,013 96,133 393,137
% of net sales 10.0% 12.5% 12.1% 11.6% 11.6%
Income from
continuing
operations - as
reported 42,130 62,001 58,044 48,314 210,489
Adjustments - tax
affected -- -- 6,246 3,881 10,127
Non-recurring tax
items (145) (83) (11,517) (1,073) (12,818)
----------------------------------------------------------------------
Income from
continuing
operations - as
adjusted 41,985 61,918 52,773 51,122 207,798
======================================================================
Continuing
earnings per
common share -
diluted
Diluted earnings
per common share
- as reported $ 0.42 $ 0.62 $ 0.58 $ 0.48 $ 2.10
Adjustments -- -- (0.05) 0.03 (0.02)
----------------------------------------------------------------------
Diluted earnings
per common share
- as adjusted $ 0.42 $ 0.62 $ 0.53 $ 0.51 $ 2.08
======================================================================
Weighted average
common shares
outstanding -
Diluted 100,271 100,371 100,365 99,859 100,205
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP "As Reported" year ending December 31, 2006
to the "Adjusted" non-GAAP
excluding the effect of 2006 adjustments (Unaudited)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
In thousands,
except per-share
data 2006 2006 2006 2006 2006
----------------------------------------------------------------------
Net sales $771,389 $862,022 $778,020 $743,038 $3,154,469
----------------------------------------------------------------------
Operating income -
as reported 79,165 108,740 61,011 61,402 310,318
% of net sales 10.3% 12.6% 7.8% 8.3% 9.8%
Adjustments -- -- 16,949 -- 16,949
----------------------------------------------------------------------
Operating income -
as adjusted 79,165 108,740 77,960 61,402 327,267
% of net sales 10.3% 12.6% 10.0% 8.3% 10.4%
Income from
continuing
operations - as
reported 43,071 68,633 33,441 38,622 183,767
Adjustments - tax
affected -- -- 10,847 -- 10,847
Non-recurring tax
items (878) (8,023) (3,080) (8,285) (20,266)
----------------------------------------------------------------------
Income from
continuing
operations - as
adjusted 42,193 60,610 41,208 30,337 174,348
======================================================================
Continuing
earnings per
common share -
diluted
Diluted earnings
per common share
- as reported $ 0.42 $ 0.67 $ 0.33 $ 0.39 $ 1.81
Adjustments (0.01) (0.08) 0.08 (0.08) (0.09)
----------------------------------------------------------------------
Diluted earnings
per common share
- as adjusted $ 0.41 $ 0.59 $ 0.41 $ 0.31 $ 1.72
======================================================================
Weighted average
common shares
outstanding -
Diluted 102,492 102,429 101,062 100,233 101,371
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP "As Reported" year ending December 31, 2007
to the "Adjusted" non-GAAP
excluding the effect of 2007 adjustments (Unaudited)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
In thousands 2007 2007 2007 2007 2007
----------------------------------------------------------------------
Water
Net sales $555,412 $665,495 $562,133 $565,525 $2,348,565
----------------------------------------------------------------------
Operating income -
as reported 61,836 91,014 54,530 63,987 271,367
% of net sales 11.1% 13.7% 9.7% 11.3% 11.6%
Adjustments -- -- 9,843 3,897 13,740
----------------------------------------------------------------------
Operating income -
as adjusted 61,836 91,014 64,373 67,884 285,107
% of net sales 11.1% 13.7% 11.5% 12.0% 12.1%
Technical Products
Net sales $252,583 $257,150 $275,701 $264,699 $1,050,133
----------------------------------------------------------------------
Operating income -
as reported 31,631 36,140 46,237 39,578 153,586
% of net sales 12.5% 14.1% 16.8% 15.0% 14.6%
Adjustments -- -- (652) 2,073 1,421
----------------------------------------------------------------------
Operating income -
as adjusted 31,631 36,140 45,585 41,651 155,007
% of net sales 12.5% 14.1% 16.5% 15.7% 14.8%
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP "As Reported" year ending December 31, 2006
to the "Adjusted" non-GAAP
excluding the effect of 2006 adjustments (Unaudited)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
In thousands 2006 2006 2006 2006 2006
----------------------------------------------------------------------
Water
Net sales $517,169 $605,516 $531,703 $500,837 $2,155,225
----------------------------------------------------------------------
Operating income -
as reported 56,196 84,956 36,944 37,734 215,830
% of net sales 10.9% 14.0% 6.9% 7.5% 10.0%
Adjustments -- -- 14,906 -- 14,906
----------------------------------------------------------------------
Operating income -
as adjusted 56,196 84,956 51,850 37,734 230,736
% of net sales 10.9% 14.0% 9.8% 7.5% 10.7%
Technical Products
Net sales $254,220 $256,506 $246,317 $242,201 $ 999,244
----------------------------------------------------------------------
Operating income -
as reported 37,704 39,678 37,050 34,473 148,905
% of net sales 14.8% 15.5% 15.0% 14.2% 14.9%
Adjustments -- -- -- -- --
----------------------------------------------------------------------
Operating income -
as adjusted 37,704 39,678 37,050 34,473 148,905
% of net sales 14.8% 15.5% 15.0% 14.2% 14.9%
CONTACT: Pentair, Inc.
Todd Gleason, 763-656-5570
Vice President, Investor Relations
E-mail: todd.gleason@pentair.com
or
Rachael Jarosh, 763-656-5280
Vice President, Communications
E-mail: rachael.jarosh@pentair.com
SOURCE: Pentair, Inc.