Full Year 2010 Highlights
- Reports full year sales up 13 percent year-over-year to $3.0 billion, with double digit growth in both Water and Technical Products
- Operating margins improved year-over-year to 11 percent, up 140 basis points compared to 2009 adjusted operating margins of 9.6 percent
- Diluted earnings per share from continuing operations (EPS) of $2.00, up 71 percent year-over-year on GAAP basis; up 36 percent compared to adjusted 2009 EPS
- Quarterly dividend increased for the 35th consecutive year to $0.20 per share in 2011
All financial information and period-to-period references are on a continuing operations basis unless otherwise noted. Reconciliations of GAAP to Non-GAAP are in the attached financial tables.
MINNEAPOLIS, Feb. 1, 2011 /PRNewswire via COMTEX/ --
Pentair, Inc. (NYSE: PNR) reported organic revenue growth of 13 percent for full year 2010, as revenues reached $3.0 billion compared to $2.7 billion in 2009. The company delivered EPS of $2.00 for the full year 2010, representing an increase of 71 percent as compared to $1.17 per share in the prior year. Adjusting 2009 EPS to exclude restructuring and impairment items and the impact from the early redemption of bonds, full year 2010 EPS increased 36 percent.
During 2010, Pentair generated $211 million in free cash flow, which represents a greater than 100 percent conversion of net income. Excluding the $25 million accelerated pension contribution at the end of the year, free cash flow was $236 million for the full year 2010, representing an approximate 120 percent conversion of net income.
"2010 was a year of tremendous progress. Organic sales grew 13 percent for the full year, reflecting broad-based growth across businesses and geographies," said Randall J. Hogan, chairman and chief executive officer. "Fast growth regions grew at an even faster pace, led by China sales up 26 percent and Latin America up 18 percent for the full year 2010, as we strengthened our presence through more localized capabilities. Expanded distribution and stepped up new product development helped fuel top-line growth, along with solid recovery in many end-markets. For the full year 2010, volume growth along with productivity offset material inflation and the impact of reinstated employee benefits, driving more than 140 basis points of margin expansion."
Total company fourth quarter sales increased 7 percent to $754 million, compared with $702 million in the fourth quarter of 2009, despite four fewer selling days. The company delivered fourth quarter operating income of $80 million, up 52 percent year-over-year or up 3 percent compared to adjusted operating income in the same period last year. Overall, operating margins of 10.6 percent for the fourth quarter 2010 decreased 40 basis points when compared to adjusted operating margins of a year ago, due mainly to higher material inflation and lower cost absorption from fewer selling days. The company delivered net income from continuing operations of $49 million, or $0.49 per share. This compares to EPS of $0.29 in the fourth quarter last year. Adjusting fourth quarter 2009 EPS to exclude restructuring and impairment items, year-over-year adjusted EPS increased 4 percent.
"We exit 2010 with confidence, as top-line strength continued in the fourth quarter with average daily sales accelerating from the third quarter," continued Hogan. "Fourth quarter operating margins came in as expected, negatively impacted by material inflation with only a modest benefit from pricing. Pricing actions were announced in the fourth quarter with realization beginning during the first quarter, helping to mitigate expected 2011 commodity inflation. We expect operating margins in both segments as well as Pentair to expand at least 100 basis points year over year for the first quarter and full year of 2011."
Fourth Quarter Business Highlights
Water sales grew 5 percent year-over-year to $501 million, including an unfavorable one-percentage point impact from foreign exchange. Within Water, U.S. sales grew 7 percent led by growth in municipal pumps and agricultural products. In fast growth regions, Water grew 16 percent led by 42 percent growth in China and double-digit increases in India and Southeast Asia. Within the five Water global business units, the fourth quarter sales were as follows:
- Residential Flow sales were up 1 percent versus the year-ago quarter, as robust growth in the agricultural business and a stable U.S. residential pump business helped mitigate the impact of declines in specialty pumps.
- Residential Filtration sales were up 1 percent as expanded distribution and new products in fast growth regions were partially offset by softness in Europe.
- Pool sales were up 4 percent driven by continued dealer expansion and demand for energy-efficient Eco-Select products.
- Engineered Flow sales were up 20 percent reflecting municipal pump sales from the final shipment for the Gulf Intracoastal Waterway project in New Orleans.
- Filtration Solutions sales were up 9 percent led by growth in desalination and energy markets, along with increased system sales.
Water's fourth quarter reported operating income totaled $55 million, up 62 percent as compared to $34 million in the same period last year. When compared to fourth quarter 2009 adjusted operating income of $55 million, operating income remained flat in 2010. The benefits from volume growth and productivity continued to offset reinstated employee benefits and growth investments, while higher material inflation unfavorably impacted margins.
Technical Products delivered fourth quarter 2010 sales of $253 million, an increase of 11 percent versus the year-earlier period. Sales grew 13 percent, excluding the impact of foreign exchange, driven by solid demand across most key end-markets and one percentage point of pricing.
- Industrial, general electronics and energy markets all posted strong double digit sales growth.
- Sales in the U.S. increased 11 percent year-over-year. Fast growth regions were up 32 percent, led by robust growth of greater than 50 percent in China and India.
Technical Products' fourth quarter reported operating income totaled $38 million, up 18 percent compared to $32 million in the same quarter last year. When compared to fourth quarter 2009 adjusted operating income of $35 million, fourth quarter 2010 operating income increased 9 percent. Volume growth, productivity, and higher pricing offset the negative impact from material inflation and reinstated employee benefits.
Outlook
The company anticipates full year 2011 sales growing in the mid-single digit range to approximately $3.2 billion. This reflects expected recurring organic revenue growth in the high-single digits, partially offset by the negative year-over-year impact of the Gulf Intracoastal Waterway project, which contributed $56 million in full year 2010. Pentair continues to expect full year 2011 EPS to be between $2.20 and $2.35, which represents an increase of approximately 10 to 18 percent from 2010 EPS of $2.00. The company expects to generate free cash flow in excess of $240 million for 2011.
"The tremendous progress we made in 2010 positions us for another strong year. We expect to leverage our increased presence in fast growth regions, expanded innovation capabilities and continued application of lean disciplines to deliver continued, strong top-line growth and margin expansion," said Hogan. "We anticipate operating margins to expand over 100 basis points in 2011, reflecting volume leverage, price increases and productivity more than offsetting expected material inflation. Our growth investments are yielding positive results and position us well for sustainable, profitable growth in 2011 and beyond."
First quarter 2011 EPS is expected to be $0.42 to $0.45, which represents an increase of approximately 20 to 29 percent when compared to first quarter 2010 EPS of $0.35. The company expects first quarter 2011 revenue to be up high-single digits compared to the same period last year.
Earnings Conference Call
Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will discuss the company's fourth quarter and full year 2010 performance and first quarter 2011 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 earnings release and the fourth quarter and full year 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; pricing and other competitive pressures; and the company's ability to achieve its long-term strategic operating goals, 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 2010 revenues of $3.0 billion, Pentair employs over 14,000 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
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
Net sales
|
$
|
753,858
|
$
|
702,251
|
$
|
3,030,773
|
$
|
2,692,468
|
|
|
Cost of goods sold
|
|
521,630
|
|
489,794
|
|
2,100,133
|
|
1,907,333
|
|
|
Gross profit
|
|
232,228
|
|
212,457
|
|
930,640
|
|
785,135
|
|
|
% of net sales
|
|
30.8%
|
|
30.3%
|
|
30.7%
|
|
29.2%
|
|
|
Selling, general and administrative
|
136,542
|
|
145,346
|
|
529,329
|
|
507,303
|
|
|
% of net sales
|
|
18.1%
|
|
20.7%
|
|
17.5%
|
|
18.8%
|
|
|
Research and development
|
|
16,081
|
|
14,619
|
|
67,156
|
|
57,884
|
|
|
% of net sales
|
|
2.1%
|
|
2.1%
|
|
2.2%
|
|
2.2%
|
|
|
Operating income
|
|
79,605
|
|
52,492
|
|
334,155
|
|
219,948
|
|
|
% of net sales
|
|
10.6%
|
|
7.5%
|
|
11.0%
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity (income) losses of unconsolidated subsidiaries
|
|
(302)
|
|
688
|
|
(2,108)
|
|
1,379
|
|
|
Loss on early extinguishment of debt
|
--
|
|
--
|
|
--
|
|
4,804
|
|
|
Net interest expense
|
|
9,067
|
|
9,790
|
|
36,116
|
|
41,118
|
|
|
% of net sales
|
|
1.2%
|
|
1.4%
|
|
1.2%
|
|
1.5%
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
|
|
and noncontrolling interest
|
70,840
|
|
42,014
|
|
300,147
|
|
172,647
|
|
|
Provision for income taxes
|
|
21,263
|
|
14,620
|
|
97,200
|
|
56,428
|
|
|
effective tax rate
|
|
30.0%
|
|
34.8%
|
|
32.4%
|
|
32.7%
|
|
|
Income from continuing operations
|
|
49,577
|
|
27,394
|
|
202,947
|
|
116,219
|
|
|
Gain (loss) on disposal of discontinued operations, net of tax
|
|
(2,292)
|
|
134
|
|
(626)
|
|
(19)
|
|
|
Net income before noncontrolling interest
|
|
47,285
|
|
27,528
|
|
202,321
|
|
116,200
|
|
|
Noncontrolling interest
|
|
909
|
|
(1,824)
|
|
4,493
|
|
707
|
|
|
Net income attributable to Pentair, Inc.
|
$
|
46,376
|
$
|
29,352
|
$
|
197,828
|
$
|
115,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to Pentair, Inc.
|
$
|
48,668
|
$
|
29,218
|
$
|
198,454
|
$
|
115,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share attributable to Pentair, Inc.
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.50
|
$
|
0.30
|
$
|
2.02
|
$
|
1.19
|
|
|
Discontinued operations
|
|
(0.02)
|
|
--
|
|
(0.01)
|
|
--
|
|
|
Basic earnings per common share
|
$
|
0.48
|
$
|
0.30
|
$
|
2.01
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.49
|
$
|
0.29
|
$
|
2.00
|
$
|
1.17
|
|
|
Discontinued operations
|
|
(0.02)
|
|
--
|
|
(0.01)
|
|
--
|
|
|
Diluted earnings per common share
|
$
|
0.47
|
$
|
0.29
|
$
|
1.99
|
$
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
98,219
|
|
97,667
|
|
98,037
|
|
97,415
|
|
|
Diluted
|
|
99,606
|
|
99,226
|
|
99,294
|
|
98,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
$
|
0.19
|
$
|
0.18
|
$
|
0.76
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
|
|
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31
|
|
December 31
|
|
|
In thousands
|
|
2010
|
|
2009
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
46,056
|
$
|
33,396
|
|
|
Accounts and notes receivable, net
|
|
516,905
|
|
455,090
|
|
|
Inventories
|
|
405,356
|
|
360,627
|
|
|
Deferred tax assets
|
|
55,086
|
|
49,609
|
|
|
Prepaid expenses and other current assets
|
|
45,894
|
|
47,576
|
|
|
Total current assets
|
|
1,069,297
|
|
946,298
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
329,435
|
|
333,688
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
Goodwill
|
|
2,066,044
|
|
2,088,797
|
|
|
Intangibles, net
|
|
453,570
|
|
486,407
|
|
|
Other
|
|
55,187
|
|
56,144
|
|
|
Total other assets
|
|
2,574,801
|
|
2,631,348
|
|
|
Total assets
|
$
|
3,973,533
|
$
|
3,911,334
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Short-term borrowings
|
$
|
4,933
|
$
|
2,205
|
|
|
Current maturities of long-term debt
|
|
18
|
|
81
|
|
|
Accounts payable
|
|
262,357
|
|
207,661
|
|
|
Employee compensation and benefits
|
|
107,995
|
|
74,254
|
|
|
Current pension and post-retirement benefits
|
|
8,733
|
|
8,948
|
|
|
Accrued product claims and warranties
|
|
42,295
|
|
34,288
|
|
|
Income taxes
|
|
5,964
|
|
5,659
|
|
|
Accrued rebates and sales incentives
|
|
33,559
|
|
27,554
|
|
|
Other current liabilities
|
|
80,942
|
|
85,629
|
|
|
Total current liabilities
|
|
546,796
|
|
446,279
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
|
|
|
Long-term debt
|
|
702,521
|
|
803,351
|
|
|
Pension and other retirement compensation
|
|
215,482
|
|
234,948
|
|
|
Post-retirement medical and other benefits
|
|
30,325
|
|
31,790
|
|
|
Long-term income taxes payable
|
|
23,507
|
|
26,936
|
|
|
Deferred tax liabilities
|
|
167,005
|
|
146,630
|
|
|
Other non-current liabilities
|
|
86,295
|
|
95,060
|
|
|
Total liabilities
|
|
1,771,931
|
|
1,784,994
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
2,201,602
|
|
2,126,340
|
|
|
Total liabilities and shareholders' equity
|
$
|
3,973,533
|
$
|
3,911,334
|
|
|
|
|
|
|
|
|
Days sales in accounts receivable (13 month moving average)
|
|
60
|
|
62
|
|
|
Days inventory on hand (13 month moving average)
|
|
82
|
|
90
|
|
|
Days in accounts payable (13 month moving average)
|
|
71
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
|
|
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
December 31
|
|
|
December 31
|
|
|
In thousands
|
|
2010
|
|
|
2009
|
|
|
Operating activities
|
|
|
|
|
|
|
|
Net income before noncontrolling interest
|
$
|
202,321
|
|
$
|
116,200
|
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities
|
|
|
|
|
|
|
|
Loss on disposal of discontinued operations
|
|
626
|
|
|
19
|
|
|
Equity (income) losses of unconsolidated subsidiaries
|
|
(2,108)
|
|
|
1,379
|
|
|
Depreciation
|
|
57,995
|
|
|
64,823
|
|
|
Amortization
|
|
26,184
|
|
|
40,657
|
|
|
Deferred income taxes
|
|
30,716
|
|
|
30,616
|
|
|
Stock compensation
|
|
21,468
|
|
|
17,324
|
|
|
Excess tax benefits from stock-based compensation
|
|
(2,686)
|
|
|
(1,746)
|
|
|
Loss on sale of assets
|
|
466
|
|
|
985
|
|
|
Changes in assets and liabilities, net of effects of business acquisitions and dispositions
|
|
|
|
|
|
|
|
Accounts and notes receivable
|
|
(62,344)
|
|
|
11,307
|
|
|
Inventories
|
|
(44,495)
|
|
|
66,684
|
|
|
Prepaid expenses and other current assets
|
|
1,514
|
|
|
16,202
|
|
|
Accounts payable
|
|
55,321
|
|
|
(13,822)
|
|
|
Employee compensation and benefits
|
|
27,252
|
|
|
(22,431)
|
|
|
Accrued product claims and warranties
|
|
8,068
|
|
|
(7,440)
|
|
|
Income taxes
|
|
1,791
|
|
|
1,972
|
|
|
Other current liabilities
|
|
561
|
|
|
(21,081)
|
|
|
Pension and post-retirement benefits
|
|
(43,024)
|
|
|
(39,607)
|
|
|
Other assets and liabilities
|
|
(9,250)
|
|
|
(2,141)
|
|
|
Net cash provided by (used for) continuing operations
|
|
270,376
|
|
|
259,900
|
|
|
Net cash provided by (used for) operating activities of discontinued operations
|
|
--
|
|
|
(1,531)
|
|
|
|
Net cash provided by (used for) operating activities
|
|
270,376
|
|
|
258,369
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(59,523)
|
|
|
(54,137)
|
|
|
Proceeds from sale of property and equipment
|
|
358
|
|
|
1,208
|
|
|
Divestitures
|
|
--
|
|
|
1,567
|
|
|
Other
|
|
(1,148)
|
|
|
(3,224)
|
|
|
|
Net cash provided by (used for) investing activities
|
|
(60,313)
|
|
|
(54,586)
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
Net short-term borrowings
|
|
2,728
|
|
|
2,205
|
|
|
Proceeds from long-term debt
|
|
703,641
|
|
|
580,000
|
|
|
Repayment of long-term debt
|
|
(804,713)
|
|
|
(730,304)
|
|
|
Debt issuance costs
|
|
(50)
|
|
|
(50)
|
|
|
Excess tax benefits from stock-based compensation
|
|
2,686
|
|
|
1,746
|
|
|
Stock issued to employees, net of shares withheld
|
|
9,941
|
|
|
8,247
|
|
|
Repurchases of common stock
|
|
(24,712)
|
|
|
--
|
|
|
Dividends paid
|
|
(75,465)
|
|
|
(70,927)
|
|
|
Distribution to noncontrolling interest
|
|
(4,647)
|
|
|
--
|
|
|
|
Net cash provided by (used for) financing activities
|
|
(190,591)
|
|
|
(209,083)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(6,812)
|
|
|
(648)
|
|
|
Change in cash and cash equivalents
|
|
12,660
|
|
|
(5,948)
|
|
|
Cash and cash equivalents, beginning of period
|
|
33,396
|
|
|
39,344
|
|
|
Cash and cash equivalents, end of period
|
$
|
46,056
|
|
$
|
33,396
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
Net cash provided by (used for) continuing operations
|
$
|
270,376
|
|
$
|
259,900
|
|
|
Capital expenditures
|
|
(59,523)
|
|
|
(54,137)
|
|
|
Proceeds from sale of property and equipment
|
|
358
|
|
|
1,208
|
|
|
Free cash flow
|
$
|
211,211
|
|
$
|
206,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pentair, Inc. and Subsidiaries
|
|
|
Supplemental Financial Information by Reportable Business Segment (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Qtr
|
|
Second Qtr
|
|
Third Qtr
|
|
Fourth Qtr
|
|
Year
|
|
|
In thousands
|
|
2010
|
|
2010
|
|
2010
|
|
2010
|
|
2010
|
|
|
Net sales to external customers
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
478,038
|
$
|
549,318
|
$
|
512,587
|
$
|
501,338
|
$
|
2,041,281
|
|
|
Technical Products Group
|
|
228,975
|
|
246,849
|
|
261,148
|
|
252,520
|
|
989,492
|
|
|
Consolidated
|
$
|
707,013
|
$
|
796,167
|
$
|
773,735
|
$
|
753,858
|
$
|
3,030,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
517
|
$
|
427
|
$
|
442
|
$
|
444
|
$
|
1,830
|
|
|
Technical Products Group
|
|
703
|
|
1,047
|
|
1,154
|
|
913
|
|
3,817
|
|
|
Intercompany sales eliminations
|
|
(1,220)
|
|
(1,474)
|
|
(1,596)
|
|
(1,357)
|
|
(5,647)
|
|
|
Consolidated
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
42,138
|
$
|
75,954
|
$
|
58,457
|
$
|
55,039
|
$
|
231,588
|
|
|
Technical Products Group
|
|
33,098
|
|
37,990
|
|
42,605
|
|
37,840
|
|
151,533
|
|
|
Unallocated corporate expenses and
|
|
|
|
|
|
|
|
|
|
|
|
|
intercompany eliminations
|
|
(11,635)
|
|
(13,818)
|
|
(10,239)
|
|
(13,274)
|
|
(48,966)
|
|
|
Consolidated
|
$
|
63,601
|
$
|
100,126
|
$
|
90,823
|
$
|
79,605
|
$
|
334,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a percent of net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
8.8%
|
|
13.8%
|
|
11.4%
|
|
11.0%
|
|
11.3%
|
|
|
Technical Products
|
|
14.5%
|
|
15.4%
|
|
16.3%
|
|
15.0%
|
|
15.3%
|
|
|
Consolidated
|
|
9.0%
|
|
12.6%
|
|
11.7%
|
|
10.6%
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Qtr
|
|
Second Qtr
|
|
Third Qtr
|
|
Fourth Qtr
|
|
Year
|
|
|
In thousands
|
|
2009
|
|
2009
|
|
2009
|
|
2009
|
|
2009
|
|
|
Net sales to external customers
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
423,932
|
$
|
486,990
|
$
|
461,570
|
$
|
475,272
|
$
|
1,847,764
|
|
|
Technical Products Group
|
|
209,908
|
|
206,722
|
|
201,095
|
|
226,979
|
|
844,704
|
|
|
Consolidated
|
$
|
633,840
|
$
|
693,712
|
$
|
662,665
|
$
|
702,251
|
$
|
2,692,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
289
|
$
|
198
|
$
|
284
|
$
|
510
|
$
|
1,281
|
|
|
Technical Products Group
|
|
233
|
|
600
|
|
544
|
|
834
|
|
2,211
|
|
|
Intercompany sales eliminations
|
|
(522)
|
|
(798)
|
|
(828)
|
|
(1,344)
|
|
(3,492)
|
|
|
Consolidated
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Group
|
$
|
26,976
|
$
|
49,781
|
$
|
53,085
|
$
|
33,903
|
$
|
163,745
|
|
|
Technical Products Group
|
|
20,462
|
|
23,578
|
|
24,356
|
|
31,959
|
|
100,355
|
|
|
Unallocated corporate expenses and
|
|
|
|
|
|
|
|
|
|
|
|
|
intercompany eliminations
|
|
(10,224)
|
|
(9,799)
|
|
(10,759)
|
|
(13,370)
|
|
(44,152)
|
|
|
Consolidated
|
$
|
37,214
|
$
|
63,560
|
$
|
66,682
|
$
|
52,492
|
$
|
219,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a percent of net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
6.4%
|
|
10.2%
|
|
11.5%
|
|
7.1%
|
|
8.9%
|
|
|
Technical Products
|
|
9.7%
|
|
11.4%
|
|
12.1%
|
|
14.1%
|
|
11.9%
|
|
|
Consolidated
|
|
5.9%
|
|
9.2%
|
|
10.1%
|
|
7.5%
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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