-- Reports third quarter sales up 17 percent year-over-year to $774 million, with double digit growth in both Water and Technical Products
-- Operating margins improved year-over-year to 11.7 percent
-- Diluted earnings per share from continuing operations (EPS) of $0.55, up 45 percent year-over-year on GAAP basis; up 31 percent when compared to adjusted third quarter 2009 EPS
-- Updated full-year 2010 EPS guidance to a range of $1.93 to $1.98 from previous guidance of $1.86 to $1.96 per share
All financial information and period-to-period references are on a continuing operations basis unless otherwise noted. Reconciliations to discontinued operations as well as GAAP and Non-GAAP reconciliations are in the attached financial tables.
MINNEAPOLIS, Oct 26, 2010 /PRNewswire via COMTEX/ --
Pentair, Inc. (NYSE: PNR) today reported third quarter 2010 revenue of $774 million and net income from continuing operations attributable to Pentair, Inc. of $55 million, or $0.55 per share. This compares to $0.38 of EPS in the third quarter last year. Adjusting third quarter 2009 for restructuring items, year-over-year adjusted EPS increased 31 percent.
Total company sales increased 17 percent to $774 million, compared with $663 million in the third quarter of 2009. Both Water and Technical Products grew sales double-digits with broad-based growth across geographies and most key end-markets served. The company delivered third quarter operating income of $91 million, up 36 percent year-over-year or up 23 percent compared to adjusted third quarter 2009 operating income. Overall, operating margins for the third quarter increased 50 basis points to 11.7 percent when compared to adjusted third quarter 2009 operating margins, driven mostly by revenue growth.
The company generated free cash flow of $79 million for the quarter, with year-to-date free cash flow performance of $207 million, which is $5 million greater than the same period of a year ago. The company said it is on track to achieve free cash flow of greater than $225 million for the full year 2010.
"Third quarter results were solid, with broad-based top-line growth across our portfolio of businesses and geographies," said Randall J. Hogan, Pentair chairman and chief executive officer. "Our performance reflects focused execution on our growth and productivity initiatives and underscores the strength of our brands, channels and geographies."
"We are encouraged by the continued strength in the industrial end markets and robust growth in emerging markets, while the U.S. residential end market continues its modest recovery. We continue to generate strong cash flows and invest in product innovation and expanding our presence in key emerging markets to fuel further growth," Hogan continued.
THIRD QUARTER BUSINESS HIGHLIGHTS
Water sales grew 11 percent year-over-year to $513 million, including an unfavorable one-percentage point impact from foreign exchange. Within Water, U.S. sales grew 14 percent led by strong sales in municipal pumps, pool equipment and agriculture. In emerging markets, water grew 13 percent led by 18 percent growth in Latin America and sales almost doubling in India. Within the five Water global business units, the third quarter sales were as follows:
- Residential Flow sales were up 1 percent versus the year-ago quarter, as robust growth in the agricultural business helped offset a modest decline in U.S. residential pumps.
- Residential Filtration sales were up 9 percent due to expanded distribution in emerging markets and product innovations across all markets.
- Pool sales were up 10 percent as the U.S. business continued to grow faster than the market due to dealer expansion and demand for energy-efficient Eco-Select products.
- Engineered Flow sales were up 35 percent reflecting strong municipal pump sales driven by the Gulf Intracoastal Waterway project in New Orleans. Commercial business declines continued, reflecting a weak commercial market.
- Filtration Solutions sales were up 10 percent led by strong global sales and expanded distribution in Food Service and the Energy market, which helped offset lower municipal project sales.
Water's third quarter reported operating income totaled $58 million, up 10 percent as compared to $53 million in the same period last year. When compared to third quarter 2009 adjusted operating income of $56 million, third quarter 2010 operating margins decreased by 70 basis points to 11.4 percent. Higher than expected material costs due to inflation and mix, along with lower pricing drove margins lower year-over-year. The benefits from volume growth and productivity continued to offset reinstated employee benefits and growth investments.
Technical Products delivered third quarter 2010 sales of $261 million, an increase of 30 percent versus the year-earlier period. Sales grew 32 percent, excluding the impact of foreign exchange, driven by solid demand across all key markets.
- Industrial, communications and general electronics all posted strong double digit sales, while the commercial business grew for the second sequential quarter.
- The U.S. had strong growth, with sales up 35 percent year-over-year, while Western European geographies grew in the low teens. Emerging markets were up 38 percent in total, led by robust growth in China.
Technical Products' third quarter reported operating income totaled $43 million, up 75 percent compared to $24 million in the same quarter last year. When compared to third quarter 2009 adjusted operating income of $29 million, third quarter 2010 operating margins increased 190 basis points to 16.3 percent. Volume growth, productivity, and slightly higher pricing more than offset the negative impact from inflation, reinstated employee benefits and growth investments.
OUTLOOK
The company provided its fourth quarter 2010 EPS guidance of $0.42 to $0.47, which is flat to down 11 percent when compared to adjusted fourth quarter 2009 EPS of $0.47. The fourth quarter 2010 EPS includes a higher tax rate and four less selling days when compared to the same period of a year ago. The company expects fourth quarter 2010 sales to be up mid single digits compared to the same period last year.
The company updated its full year 2010 EPS guidance to a range of $1.93 to $1.98, an increase of 31 to 35 percent versus full year 2009 adjusted EPS. Full year 2010 sales are now expected to be around $3.0 billion and full year free cash flow is expected to be greater than $225 million.
"Our updated full year 2010 guidance reflects sales growth of approximately 12 percent for the year and expected EPS growth in the 31 to 35 percent range, demonstrating the strength of our businesses and positive results from our focused execution on growth and productivity initiatives," said Hogan.
"The fourth quarter EPS guidance reflects continued strength in daily sales. We anticipate higher year-over-year costs in the fourth quarter related to material inflation, the reinstatement of the employee benefits and continued investments in innovation and selling capabilities. Moving beyond the fourth quarter, we expect pricing and higher productivity to offset material inflation and we will continue to drive initiatives to sustain accelerated growth," Hogan added.
EARNINGS CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will discuss the company's performance and third quarter 2010 results and 2010 outlook on a two-way conference call with investors and a live audio webcast at 9 a.m. Eastern today. Reconciliation of non-GAAP financial measures are set forth in the attachments to this third quarter 2010 earnings release and the third quarter 2010 earnings 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 webcast 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 the magnitude, timing and scope of recovery from the global economic downturn; the strength of housing and related markets; the risk that expected benefits from our recent restructuring and other cost reduction plans may not be fully realized, or may take longer to realize than expected; foreign currency effects; material inflation outpacing our productivity and pricing actions; retail, commercial 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 global diversified industrial company headquartered in Minneapolis, 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 protect sensitive electronics and the people that use them. With 2009 revenues of $2.7 billion, Pentair employs approximately 13,500 people worldwide.
|
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
|
October 2,
|
|
September 26,
|
|
October 2,
|
|
September 26,
|
|
|
In thousands, except per-share data
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
Net sales
|
|
$
|
773,735
|
$
|
662,665
|
$
|
2,276,915
|
$
|
1,990,217
|
|
|
Cost of goods sold
|
|
537,193
|
|
455,698
|
|
1,578,503
|
|
1,417,539
|
|
|
Gross profit
|
|
|
236,542
|
|
206,967
|
|
698,412
|
|
572,678
|
|
|
% of net sales
|
|
30.6%
|
|
31.2%
|
|
30.7%
|
|
28.8%
|
|
|
Selling, general and administrative
|
|
128,854
|
|
125,578
|
|
392,787
|
|
361,957
|
|
|
% of net sales
|
|
16.7%
|
|
18.9%
|
|
17.3%
|
|
18.2%
|
|
|
Research and development
|
|
16,865
|
|
14,707
|
|
51,075
|
|
43,265
|
|
|
% of net sales
|
|
2.2%
|
|
2.2%
|
|
2.2%
|
|
2.2%
|
|
|
Operating income
|
|
90,823
|
|
66,682
|
|
254,550
|
|
167,456
|
|
|
% of net sales
|
|
11.7%
|
|
10.1%
|
|
11.2%
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity (income) losses of unconsolidated subsidiaries
|
|
(347)
|
|
135
|
|
(1,806)
|
|
691
|
|
|
Loss on early extinguishment of debt
|
|
--
|
|
--
|
|
--
|
|
4,804
|
|
|
Net interest expense
|
|
8,953
|
|
9,711
|
|
27,049
|
|
31,328
|
|
|
% of net sales
|
|
1.2%
|
|
1.5%
|
|
1.2%
|
|
1.6%
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
|
|
and noncontrolling interest
|
|
82,217
|
|
56,836
|
|
229,307
|
|
130,633
|
|
|
Provision for income taxes
|
|
26,488
|
|
18,159
|
|
75,937
|
|
41,808
|
|
|
effective tax rate
|
|
32.2%
|
|
31.9%
|
|
33.1%
|
|
32.0%
|
|
|
Income from continuing operations
|
|
55,729
|
|
38,677
|
|
153,370
|
|
88,825
|
|
|
Gain (loss) on disposal of discontinued operations, net of tax
|
|
549
|
|
(85)
|
|
1,666
|
|
(153)
|
|
|
Net income before noncontrolling interest
|
|
56,278
|
|
38,592
|
|
155,036
|
|
88,672
|
|
|
Noncontrolling interest
|
|
1,228
|
|
1,644
|
|
3,584
|
|
2,531
|
|
|
Net income attributable to Pentair, Inc.
|
$
|
55,050
|
$
|
36,948
|
$
|
151,452
|
$
|
86,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to Pentair, Inc.
|
$
|
54,501
|
$
|
37,033
|
$
|
149,786
|
$
|
86,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share attributable to Pentair, Inc.
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.55
|
$
|
0.38
|
$
|
1.53
|
$
|
0.89
|
|
|
Discontinued operations
|
|
0.01
|
|
--
|
|
0.01
|
|
--
|
|
|
Basic earnings per common share
|
$
|
0.56
|
$
|
0.38
|
$
|
1.54
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.55
|
$
|
0.38
|
$
|
1.51
|
$
|
0.88
|
|
|
Discontinued operations
|
|
--
|
|
--
|
|
0.01
|
|
--
|
|
|
Diluted earnings per common share
|
$
|
0.55
|
$
|
0.38
|
$
|
1.52
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
98,298
|
|
97,496
|
|
98,105
|
|
97,495
|
|
|
Diluted
|
|
|
99,514
|
|
98,641
|
|
99,326
|
|
98,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
$
|
0.19
|
$
|
0.18
|
$
|
0.57
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
October 2,
|
|
December 31,
|
|
September 26,
|
|
|
In thousands
|
|
2010
|
|
2009
|
|
2009
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
56,995
|
$
|
33,396
|
$
|
50,214
|
|
|
Accounts and notes receivable, net
|
|
490,221
|
|
455,090
|
|
423,125
|
|
|
Inventories
|
|
410,072
|
|
360,627
|
|
366,416
|
|
|
Deferred tax assets
|
|
50,991
|
|
49,609
|
|
52,997
|
|
|
Prepaid expenses and other current assets
|
|
48,555
|
|
47,576
|
|
48,446
|
|
|
Total current assets
|
|
1,056,834
|
|
946,298
|
|
941,198
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
327,602
|
|
333,688
|
|
339,412
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
|
|
Goodwill
|
|
2,070,911
|
|
2,088,797
|
|
2,127,082
|
|
|
Intangibles, net
|
|
461,378
|
|
486,407
|
|
506,837
|
|
|
Other
|
|
56,033
|
|
56,144
|
|
67,723
|
|
|
Total other assets
|
|
2,588,322
|
|
2,631,348
|
|
2,701,642
|
|
|
Total assets
|
$
|
3,972,758
|
$
|
3,911,334
|
$
|
3,982,252
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
$
|
4,180
|
$
|
2,205
|
$
|
16
|
|
|
Current maturities of long-term debt
|
|
37
|
|
81
|
|
98
|
|
|
Accounts payable
|
|
266,416
|
|
207,661
|
|
199,002
|
|
|
Employee compensation and benefits
|
|
100,626
|
|
74,254
|
|
78,225
|
|
|
Current pension and post-retirement benefits
|
|
8,948
|
|
8,948
|
|
8,890
|
|
|
Accrued product claims and warranties
|
|
40,783
|
|
34,288
|
|
33,179
|
|
|
Income taxes
|
|
22,202
|
|
5,659
|
|
24,302
|
|
|
Accrued rebates and sales incentives
|
|
39,066
|
|
27,554
|
|
27,989
|
|
|
Other current liabilities
|
|
90,286
|
|
85,629
|
|
95,367
|
|
|
Total current liabilities
|
|
572,544
|
|
446,279
|
|
467,068
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
673,265
|
|
803,351
|
|
814,857
|
|
|
Pension and other retirement compensation
|
|
219,463
|
|
234,948
|
|
264,472
|
|
|
Post-retirement medical and other benefits
|
|
28,506
|
|
31,790
|
|
32,019
|
|
|
Long-term income taxes payable
|
|
23,857
|
|
26,936
|
|
27,792
|
|
|
Deferred tax liabilities
|
|
147,772
|
|
146,630
|
|
153,984
|
|
|
Other non-current liabilities
|
|
93,681
|
|
95,060
|
|
102,924
|
|
|
Total liabilities
|
|
1,759,088
|
|
1,784,994
|
|
1,863,116
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
2,213,670
|
|
2,126,340
|
|
2,119,136
|
|
|
Total liabilities and shareholders' equity
|
$
|
3,972,758
|
$
|
3,911,334
|
$
|
3,982,252
|
|
|
|
|
|
|
|
|
|
|
Days sales in accounts receivable (13 month moving average)
|
|
59
|
|
62
|
|
62
|
|
|
Days inventory on hand (13 month moving average)
|
|
82
|
|
90
|
|
92
|
|
|
Days in accounts payable (13 month moving average)
|
|
68
|
|
66
|
|
65
|
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
Nine months ended
|
|
|
|
|
|
October 2,
|
|
|
September 26,
|
|
|
In thousands
|
|
2010
|
|
|
2009
|
|
|
Operating activities
|
|
|
|
|
|
|
|
Net income before noncontrolling interest
|
$
|
155,036
|
|
$
|
88,672
|
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities
|
|
|
|
|
|
|
|
(Gain) loss on disposal of discontinued operations
|
|
(1,666)
|
|
|
153
|
|
|
Equity (income) losses of unconsolidated subsidiaries
|
|
(1,806)
|
|
|
691
|
|
|
Depreciation
|
|
43,141
|
|
|
44,186
|
|
|
Amortization
|
|
19,742
|
|
|
22,054
|
|
|
Deferred income taxes
|
|
4,866
|
|
|
170
|
|
|
Stock compensation
|
|
16,598
|
|
|
13,092
|
|
|
Excess tax benefits from stock-based compensation
|
|
(2,193)
|
|
|
(754)
|
|
|
Gain on sale of assets
|
|
166
|
|
|
(177)
|
|
|
Changes in assets and liabilities, net of effects of business acquisitions and dispositions
|
|
|
|
|
|
|
|
Accounts and notes receivable
|
|
(36,216)
|
|
|
46,718
|
|
|
Inventories
|
|
(49,822)
|
|
|
56,459
|
|
|
Prepaid expenses and other current assets
|
|
(1,476)
|
|
|
16,061
|
|
|
Accounts payable
|
|
60,162
|
|
|
(18,659)
|
|
|
Employee compensation and benefits
|
|
21,600
|
|
|
(17,883)
|
|
|
Accrued product claims and warranties
|
|
6,556
|
|
|
(8,565)
|
|
|
Income taxes
|
|
18,013
|
|
|
19,166
|
|
|
Other current liabilities
|
|
15,493
|
|
|
(9,699)
|
|
|
Pension and post-retirement benefits
|
|
(15,197)
|
|
|
(12,251)
|
|
|
Other assets and liabilities
|
|
(3,754)
|
|
|
747
|
|
|
Net cash provided by (used for) continuing operations
|
|
249,243
|
|
|
240,181
|
|
|
Net cash provided by (used for) operating activities of discontinued operations
|
|
--
|
|
|
(1,531)
|
|
|
|
Net cash provided by (used for) operating activities
|
|
249,243
|
|
|
238,650
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(42,981)
|
|
|
(39,306)
|
|
|
Proceeds from sale of property and equipment
|
|
340
|
|
|
817
|
|
|
Divestitures
|
|
--
|
|
|
1,506
|
|
|
Other
|
|
(1,232)
|
|
|
(3,272)
|
|
|
Net cash provided by (used for) investing activities
|
|
(43,873)
|
|
|
(40,255)
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
Net short-term borrowings
|
|
1,975
|
|
|
(16)
|
|
|
Proceeds from long-term debt
|
|
493,821
|
|
|
490,000
|
|
|
Repayment of long-term debt
|
|
(624,007)
|
|
|
(628,776)
|
|
|
Debt issuance costs
|
|
(50)
|
|
|
(50)
|
|
|
Excess tax benefits from stock-based compensation
|
|
2,193
|
|
|
754
|
|
|
Stock issued to employees, net of shares withheld
|
|
7,861
|
|
|
1,729
|
|
|
Repurchases of common stock
|
|
|
|
(2,786)
|
|
|
--
|
|
|
Dividends paid
|
|
(56,584)
|
|
|
(53,162)
|
|
|
Net cash provided by (used for) financing activities
|
|
(177,577)
|
|
|
(189,521)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(4,194)
|
|
|
1,996
|
|
|
Change in cash and cash equivalents
|
|
23,599
|
|
|
10,870
|
|
|
Cash and cash equivalents, beginning of period
|
|
33,396
|
|
|
39,344
|
|
|
Cash and cash equivalents, end of period
|
$
|
56,995
|
|
$
|
50,214
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
Net cash provided by (used for) continuing operations
|
$
|
249,243
|
|
$
|
240,181
|
|
|
Capital expenditures
|
|
(42,981)
|
|
|
(39,306)
|
|
|
Proceeds from sale of property and equipment
|
|
340
|
|
|
817
|
|
|
Free cash flow
|
$
|
206,602
|
|
$
|
201,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
Supplemental Financial Information by Reportable Business Segment (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Qtr
|
|
Second Qtr
|
|
Third Qtr
|
|
Nine Months
|
|
|
In thousands
|
|
2010
|
|
2010
|
|
2010
|
|
2010
|
|
|
Net sales to external customers
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
478,038
|
$
|
549,318
|
$
|
512,587
|
$
|
1,539,943
|
|
|
Technical Products Group
|
|
228,975
|
|
246,849
|
|
261,148
|
|
736,972
|
|
|
Consolidated
|
$
|
707,013
|
$
|
796,167
|
$
|
773,735
|
$
|
2,276,915
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
517
|
$
|
427
|
$
|
442
|
$
|
1,386
|
|
|
Technical Products Group
|
|
703
|
|
1,047
|
|
1,154
|
|
2,904
|
|
|
Intercompany sales eliminations
|
|
(1,220)
|
|
(1,474)
|
|
(1,596)
|
|
(4,290)
|
|
|
Consolidated
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
42,138
|
$
|
75,954
|
$
|
58,457
|
$
|
176,549
|
|
|
Technical Products Group
|
|
33,098
|
|
37,990
|
|
42,605
|
|
113,693
|
|
|
Unallocated corporate expenses and
|
|
|
|
|
|
|
|
|
|
|
intercompany eliminations
|
|
(11,635)
|
|
(13,818)
|
|
(10,239)
|
|
(35,692)
|
|
|
Consolidated
|
$
|
63,601
|
$
|
100,126
|
$
|
90,823
|
$
|
254,550
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a percent of net sales
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
8.8%
|
|
13.8%
|
|
11.4%
|
|
11.5%
|
|
|
Technical Products
|
|
14.5%
|
|
15.4%
|
|
16.3%
|
|
15.4%
|
|
|
Consolidated
|
|
9.0%
|
|
12.6%
|
|
11.7%
|
|
11.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Qtr
|
|
Second Qtr
|
|
Third Qtr
|
|
Nine Months
|
|
|
In thousands
|
|
2009
|
|
2009
|
|
2009
|
|
2009
|
|
|
Net sales to external customers
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
423,932
|
$
|
486,990
|
$
|
461,570
|
$
|
1,372,492
|
|
|
Technical Products Group
|
|
209,908
|
|
206,722
|
|
201,095
|
|
617,725
|
|
|
Consolidated
|
$
|
633,840
|
$
|
693,712
|
$
|
662,665
|
$
|
1,990,217
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
289
|
$
|
198
|
$
|
284
|
$
|
771
|
|
|
Technical Products Group
|
|
233
|
|
600
|
|
544
|
|
1,377
|
|
|
Intercompany sales eliminations
|
|
(522)
|
|
(798)
|
|
(828)
|
|
(2,148)
|
|
|
Consolidated
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
26,976
|
$
|
49,781
|
$
|
53,085
|
$
|
129,842
|
|
|
Technical Products Group
|
|
20,462
|
|
23,578
|
|
24,356
|
|
68,396
|
|
|
Unallocated corporate expenses and
|
|
|
|
|
|
|
|
|
|
|
intercompany eliminations
|
|
(10,224)
|
|
(9,799)
|
|
(10,759)
|
|
(30,782)
|
|
|
Consolidated
|
$
|
37,214
|
$
|
63,560
|
$
|
66,682
|
$
|
167,456
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a percent of net sales
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
6.4%
|
|
10.2%
|
|
11.5%
|
|
9.5%
|
|
|
Technical Products
|
|
9.7%
|
|
11.4%
|
|
12.1%
|
|
11.1%
|
|
|
Consolidated
|
|
5.9%
|
|
9.2%
|
|
10.1%
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP "As Reported" year ending December 31, 2009 to the "Adjusted" non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
Year
|
|
|
In thousands, except per-share data
|
2009
|
2009
|
2009
|
2009
|
2009
|
|
|
Net sales
|
$ 633,840
|
$ 693,712
|
$ 662,665
|
$ 702,251
|
$ 2,692,468
|
|
|
|
|
|
|
|
|
|
Operating income - as reported
|
37,214
|
63,560
|
66,682
|
52,492
|
219,948
|
|
|
% of net sales
|
5.9%
|
9.2%
|
10.1%
|
7.5%
|
8.2%
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Restructuring and asset impairment
|
2,824
|
2,944
|
7,295
|
24,881
|
37,944
|
|
|
Operating income - as adjusted
|
40,038
|
66,504
|
73,977
|
77,373
|
257,892
|
|
|
% of net sales
|
6.3%
|
9.6%
|
11.2%
|
11.0%
|
9.6%
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable
|
|
|
|
|
|
|
|
to Pentair, Inc. - as reported
|
17,255
|
32,006
|
37,033
|
29,218
|
115,512
|
|
|
Adjustments - tax affected
|
|
|
|
|
|
|
|
Restructuring and asset impairment, net of
|
|
|
|
|
|
|
|
minority interest
|
1,864
|
1,943
|
4,815
|
17,549
|
26,171
|
|
|
Bond tender
|
--
|
3,171
|
--
|
--
|
3,171
|
|
|
Net income from continuing operations attributable
|
|
|
|
|
|
|
|
to Pentair, Inc. - as adjusted
|
19,119
|
37,120
|
41,848
|
46,767
|
144,854
|
|
|
|
|
|
|
|
|
|
Continuing earnings per common share attributable to Pentair, Inc. - diluted
|
|
|
|
|
|
|
|
Diluted earnings per common share - as reported
|
$ 0.18
|
$ 0.33
|
$ 0.38
|
$ 0.29
|
$ 1.17
|
|
|
Adjustments
|
0.02
|
0.05
|
0.04
|
0.18
|
0.30
|
|
|
Diluted earnings per common share - as adjusted
|
$ 0.20
|
$ 0.38
|
$ 0.42
|
$ 0.47
|
$ 1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - Diluted
|
97,966
|
98,422
|
98,641
|
99,226
|
98,522
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
Reconciliation of the GAAP "As Reported" year ending December 31, 2009 to the "Adjusted" non-GAAP
excluding the effect of 2009 adjustments (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
Year
|
|
|
In thousands
|
2009
|
2009
|
2009
|
2009
|
2009
|
|
|
Water
|
|
|
|
|
|
|
|
Net sales
|
$ 423,932
|
$ 486,990
|
$ 461,570
|
$ 475,272
|
$ 1,847,764
|
|
|
|
|
|
|
|
|
|
Operating income - as reported
|
26,976
|
49,781
|
53,085
|
33,903
|
163,745
|
|
|
% of net sales
|
6.4%
|
10.2%
|
11.5%
|
7.1%
|
8.9%
|
|
|
Adjustments - restructuring and asset impairment
|
1,464
|
1,460
|
2,639
|
21,336
|
26,899
|
|
|
Operating income - as adjusted
|
28,440
|
51,241
|
55,724
|
55,239
|
190,644
|
|
|
% of net sales
|
6.7%
|
10.5%
|
12.1%
|
11.6%
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technical Products
|
|
|
|
|
|
|
|
Net sales
|
$ 209,908
|
$ 206,722
|
$ 201,095
|
$ 226,979
|
$ 844,704
|
|
|
|
|
|
|
|
Operating income - as reported
|
20,462
|
23,578
|
24,356
|
31,959
|
100,355
|
|
|
% of net sales
|
9.7%
|
11.4%
|
12.1%
|
14.1%
|
11.9%
|
|
|
Adjustments - restructuring and asset impairment
|
792
|
1,139
|
4,557
|
2,729
|
9,217
|
|
|
Operating income - as adjusted
|
21,254
|
24,717
|
28,913
|
34,688
|
109,572
|
|
|
% of net sales
|
10.1%
|
12.0%
|
14.4%
|
15.3%
|
13.0%
|
|
|
|
|
|
|
|
SOURCE Pentair, Inc.