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Pentair Reports Fourth Quarter and Full Year 2021 Results
02.01.2022
  • Fourth quarter sales of $989 million; full year 2021 sales of $3.76 billion.
  • Fourth quarter GAAP EPS of $0.89 and adjusted EPS of $0.87; full year 2021 GAAP EPS of $3.32 and adjusted EPS of $3.40.
  • The Company introduces its 2022 GAAP EPS guidance of approximately $3.54 to $3.64 and on an adjusted basis of approximately $3.70 to $3.80.

Reconciliations of GAAP to Non-GAAP measures are in the attached financial tables.

LONDON--(BUSINESS WIRE)-- Pentair plc (NYSE: PNR) today announced fourth quarter 2021 sales of $989 million. Sales were up 24 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 19 percent in the fourth quarter. Fourth quarter 2021 earnings per diluted share from continuing operations (“EPS”) were $0.89 compared to $0.60 in the fourth quarter of 2020. On an adjusted basis, the Company reported EPS of $0.87 compared to $0.70 in the fourth quarter of 2020. Segment income, adjusted net income, free cash flow, and adjusted EPS are described in the attached schedules.

Fourth quarter 2021 operating income was $151 million, up 24 percent compared to operating income for the fourth quarter of 2020, and return on sales (“ROS”) was 15.2 percent, a decrease of 10 basis points when compared to the fourth quarter of 2020. On an adjusted basis, the Company reported segment income of $167 million, up 18 percent for the fourth quarter, compared to segment income for the fourth quarter of 2020, and ROS was 16.9 percent, a decrease of 80 basis points when compared to the fourth quarter of 2020.

“We exit 2021 feeling very grateful for the tireless efforts of all of our employees to help Pentair deliver for our customers and create value for shareholders despite significant inflation and global supply chain challenges,” said John L. Stauch, Pentair’s President and Chief Executive Officer. “I am humbled and proud of how our employees remained agile and accountable throughout all of 2021.”

Full year 2021 sales were $3.76 billion. Sales were up 25 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 21 percent in 2021. Full year 2021 EPS from continuing operations was $3.32 compared to $2.13 in 2020. On an adjusted basis, the Company reported EPS of $3.40 compared to $2.50 in 2020.

Full year 2021 operating income was $637 million, up 38 percent compared to operating income in 2020, and return on sales (“ROS”) was 16.9 percent, an increase of 160 basis points when compared to 2020. On an adjusted basis, the Company reported segment income of $686 million, up 33 percent in 2021, compared to segment income in 2020, and ROS was 18.2 percent, an increase of 100 basis points when compared to 2020.

Mr. Stauch continued, “Our residential businesses remained strong and we saw continued recovery in both our commercial and industrial businesses throughout the year. Even though we exited 2021 with near record backlog, we were extremely proud to deliver robust growth in sales, income, and EPS while also expanding margins. Our balance sheet ended the year well positioned as we delivered another strong year of free cash flow. In 2021, we returned half of our free cash flow to shareholders through dividends and share repurchases in addition to funding two strategic acquisitions that help build out our water treatment and pool capabilities. We recently announced a dividend increase that will mark the 46th consecutive year of Pentair raising its dividend, an important component of our long-term capital allocation strategy.”

Consumer Solutions sales were up 31 percent in the fourth quarter of 2021 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 23 percent in the fourth quarter. Segment income of $136 million was up 10 percent compared to the fourth quarter of 2020, and ROS was 21.6 percent, a decrease of 410 basis points when compared to the fourth quarter of 2020. Fourth quarter ROS was negatively impacted by the lower margin contribution from recent acquisitions, increased inflation, and ongoing supply chain inefficiencies.

Consumer Solutions sales were up 34 percent for the full year of 2021 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 30 percent in 2021. Segment income of $554 million was up 32 percent compared to 2020, and ROS was 23.7 percent, a decrease of 30 basis points when compared to 2020.

Industrial & Flow Technologies sales were up 14 percent in the fourth quarter of 2021 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 13 percent in the fourth quarter. Segment income of $54 million was up 63 percent compared to the fourth quarter of 2020, and ROS was 15.0 percent, an increase of 440 basis points when compared to the fourth quarter of 2020.

Industrial & Flow Technologies sales were up 12 percent for the full year of 2021 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 9 percent in 2021. Segment income of $213 million was up 30 percent compared to 2020, and ROS was 15.0 percent, an increase of 210 basis points when compared to 2020.

Full year net cash provided by operating activities of continuing operations was $614 million and free cash flow from continuing operations was $557 million.

Pentair paid a regular cash dividend of $0.20 per share in the fourth quarter of 2021. Pentair previously announced on December 7, 2021 that it will pay a regular quarterly cash dividend of $0.21 per share on February 4, 2022 to shareholders of record at the close of business on January 21, 2022. This dividend reflects a 5 percent increase in the Company’s regular cash dividend rate; 2022 marks the 46th consecutive year that Pentair has increased its dividend.

OUTLOOK

Mr. Stauch concluded, “While we enter 2022 with continued uncertainty around COVID-19 impacts and global supply chain stability, we remain confident of the long-term growth trends in all of our businesses. Our Residential businesses primarily benefit from our installed base and many of our customers are signaling strong order trends, which we believe bodes well for our Pool, Water Treatment, and Residential Flow businesses. Commercial demand continues to improve and is another positive indicator for our Water Treatment business. Finally, our Industrial facing businesses saw orders and backlog improve as the year progressed, which builds confidence in further growth in the new year. We believe we are well positioned for 2022 and our efforts in 2021 highlight our ability to be agile and navigate the continued challenging environment we are all facing to start the new year.”

The Company introduces 2022 GAAP EPS guidance of approximately $3.54 to $3.64 and on an adjusted basis of approximately $3.70 to $3.80. The Company anticipates full year 2022 sales to be up approximately 6 to 9 percent on a reported basis. The Company expects to deliver full year free cash flow approximately equal to 100 percent of net income.

In addition, the Company introduces first quarter 2022 GAAP EPS of approximately $0.76 and on an adjusted EPS basis of approximately $0.80. The Company expects first quarter sales to be up approximately 7 to 11 percent on a reported basis compared to first quarter 2021.

EARNINGS CONFERENCE CALL

Pentair President and Chief Executive Officer John L. Stauch and Chief Financial Officer Robert P. Fishman will discuss the Company’s fourth quarter and full year 2021 results on a two-way conference call with investors at 9:00 a.m. Eastern today. A live audio webcast of the call, along with the related presentation, can be accessed in the Investor Relations section of the Company’s website, www.pentair.com, shortly before the call begins.

Reconciliations of non-GAAP financial measures are set forth in the attachments to this release and in the presentations, each of which can be found on Pentair’s website. The webcast and presentations will be archived at the Company’s website following the conclusion of the event.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” “future” or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the overall impact of the COVID-19 pandemic on our business; the duration and severity of the COVID-19 pandemic, the impact of virus variants and the effectiveness of vaccinations; actions that may be taken by us, other businesses and governments to address or otherwise mitigate the impact of the COVID-19 pandemic, including those that may impact our ability to operate our facilities, meet production demands, and deliver products to our customers; the impacts of the COVID-19 pandemic on the global economy, our workforce, customers and suppliers, and customer demand; overall global economic and business conditions impacting our business, including the strength of housing and related markets; supply, demand, logistics, competition and pricing pressures related to and in the markets we serve; volatility in currency exchange rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; the ability to achieve the benefits of our restructuring plans, cost reduction initiatives and transformation program; risks associated with operating foreign businesses; the impact of raw material, logistics and labor costs and other inflation; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating and ESG goals. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2020 and our quarterly reports on Form 10-Q. All forward-looking statements, including all financial forecasts, speak only as of the date of this release. Pentair assumes no obligation, and disclaims any obligation, to update the information contained in this release.

ABOUT PENTAIR PLC

At Pentair, we inspire people to move, improve and enjoy life’s essential resources for happier, healthier lives. From our residential and business water solutions, to our sustainable innovations and applications, we deliver smart, sustainable solutions for life.

Pentair had revenue in 2021 of approximately $3.8 billion, and trades under the ticker symbol PNR. With approximately 11,250 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit Pentair.com.

Pentair plc and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

 

 

 

 

 

 

 

Three months ended

 

Twelve months ended

In millions, except per-share data

December 31,
2021

December 31,
2020

 

December 31,
2021

December 31,
2020

Net sales

$

988.6

 

$

796.0

 

 

$

3,764.8

 

$

3,017.8

 

Cost of goods sold

 

660.4

 

 

512.5

 

 

 

2,445.6

 

 

1,960.2

 

Gross profit

 

328.2

 

 

283.5

 

 

 

1,319.2

 

 

1,057.6

 

% of net sales

 

33.2

%

 

35.6

%

 

 

35.0

%

 

35.0

%

Selling, general and administrative

 

156.0

 

 

141.9

 

 

 

596.4

 

 

520.5

 

% of net sales

 

15.8

%

 

17.8

%

 

 

15.8

%

 

17.2

%

Research and development

 

21.5

 

 

20.1

 

 

 

85.9

 

 

75.7

 

% of net sales

 

2.2

%

 

2.5

%

 

 

2.3

%

 

2.5

%

Operating income

 

150.7

 

 

121.5

 

 

 

636.9

 

 

461.4

 

% of net sales

 

15.2

%

 

15.3

%

 

 

16.9

%

 

15.3

%

Other (income) expense:

 

 

 

 

 

(Gain) loss on sale of businesses

 

 

 

 

 

 

(1.4

)

 

0.1

 

Other (income) expense

 

(2.0

)

 

6.9

 

 

 

(1.0

)

 

5.3

 

Net interest expense

 

1.0

 

 

3.9

 

 

 

12.5

 

 

23.9

 

% of net sales

 

0.1

%

 

0.5

%

 

 

0.3

%

 

0.8

%

Income from continuing operations before income taxes

 

151.7

 

 

110.7

 

 

 

626.8

 

 

432.1

 

Provision for income taxes

 

3.1

 

 

10.9

 

 

 

70.8

 

 

75.0

 

Effective tax rate

 

2.0

%

 

9.8

%

 

 

11.3

%

 

17.4

%

Net income from continuing operations

 

148.6

 

 

99.8

 

 

 

556.0

 

 

357.1

 

Income (loss) from discontinued operations, net of tax

 

0.1

 

 

3.2

 

 

 

(3.0

)

 

1.5

 

Net income

$

148.7

 

$

103.0

 

 

$

553.0

 

$

358.6

 

Earnings (loss) per ordinary share

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

$

0.90

 

$

0.60

 

 

$

3.36

 

$

2.14

 

Discontinued operations

 

 

 

0.02

 

 

 

(0.02

)

 

0.01

 

Basic earnings per ordinary share

$

0.90

 

$

0.62

 

 

$

3.34

 

$

2.15

 

Diluted

 

 

 

 

 

Continuing operations

$

0.89

 

$

0.60

 

 

$

3.32

 

$

2.13

 

Discontinued operations

 

 

 

0.01

 

 

 

(0.02

)

 

0.01

 

Diluted earnings per ordinary share

$

0.89

 

$

0.61

 

 

$

3.30

 

$

2.14

 

Weighted average ordinary shares outstanding

 

 

 

 

 

Basic

 

165.3

 

 

166.2

 

 

 

165.8

 

 

166.5

 

Diluted

 

167.0

 

 

167.5

 

 

 

167.5

 

 

167.4

 

Cash dividends paid per ordinary share

$

0.20

 

$

0.19

 

 

$

0.80

 

$

0.76

 

 

Pentair plc and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

December 31,
2021

December 31,
2020

In millions

Assets

Current assets

 

 

Cash and cash equivalents

$

94.5

$

82.1

Accounts and notes receivable, net

 

534.3

 

367.5

Inventories

 

562.9

 

420.0

Other current assets

 

112.3

 

105.5

Total current assets

 

1,304.0

 

975.1

Property, plant and equipment, net

 

310.0

 

301.2

Other assets

 

 

Goodwill

 

2,504.5

 

2,392.2

Intangibles, net

 

428.0

 

325.9

Other non-current assets

 

207.1

 

202.8

Total other assets

 

3,139.6

 

2,920.9

Total assets

$

4,753.6

$

4,197.2

Liabilities and Equity

Current liabilities

 

 

Accounts payable

$

385.7

$

245.1

Employee compensation and benefits

 

140.1

 

117.0

Other current liabilities

 

525.9

 

410.4

Total current liabilities

 

1,051.7

 

772.5

Other liabilities

 

 

Long-term debt

 

894.1

 

839.6

Pension and other post-retirement compensation and benefits

 

93.2

 

102.0

Deferred tax liabilities

 

89.8

 

107.4

Other non-current liabilities

 

202.9

 

269.4

Total liabilities

 

2,331.7

 

2,090.9

Equity

 

2,421.9

 

2,106.3

Total liabilities and equity

$

4,753.6

$

4,197.2

 

Pentair plc and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

Years ended December 31

In millions

2021

2020

Operating activities

 

 

Net income

$

553.0

 

$

358.6

 

Loss (income) from discontinued operations, net of tax

 

3.0

 

 

(1.5

)

Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations

 

 

Equity income of unconsolidated subsidiaries

 

(0.3

)

 

(1.4

)

Depreciation

 

51.2

 

 

46.7

 

Amortization

 

26.3

 

 

28.4

 

(Gain) loss on sale of businesses

 

(1.4

)

 

0.1

 

Deferred income taxes

 

(9.0

)

 

4.6

 

Share-based compensation

 

29.8

 

 

20.3

 

Pension and other post-retirement expense

 

2.8

 

 

12.2

 

Pension and other post-retirement contributions

 

(9.4

)

 

(8.4

)

Changes in assets and liabilities, net of effects of business acquisitions

 

 

Accounts receivable

 

(142.0

)

 

148.3

 

Inventories

 

(121.4

)

 

(29.1

)

Other current assets

 

(12.3

)

 

(2.3

)

Accounts payable

 

114.2

 

 

(81.9

)

Employee compensation and benefits

 

24.5

 

 

42.5

 

Other current liabilities

 

116.2

 

 

32.0

 

Other non-current assets and liabilities

 

(11.6

)

 

5.1

 

Net cash provided by operating activities of continuing operations

 

613.6

 

 

574.2

 

Net cash used for operating activities of discontinued operations

 

(0.4

)

 

(0.6

)

Net cash provided by operating activities

 

613.2

 

 

573.6

 

Investing activities

 

 

Capital expenditures

 

(60.2

)

 

(62.2

)

Proceeds from sale of property and equipment

 

3.9

 

 

0.1

 

Proceeds from sale of businesses, net

 

1.4

 

 

 

Acquisitions, net of cash acquired

 

(338.5

)

 

(58.0

)

Other

 

2.7

 

 

2.2

 

Net cash used for investing activities

 

(390.7

)

 

(117.9

)

Financing activities

 

 

Net borrowings (repayments) of revolving long-term debt

 

158.9

 

 

(117.5

)

Repayments of long-term debt

 

(103.8

)

 

(74.0

)

Shares issued to employees, net of shares withheld

 

22.2

 

 

32.9

 

Repurchases of ordinary shares

 

(150.0

)

 

(150.2

)

Dividends paid

 

(133.0

)

 

(127.1

)

Payments upon the maturity of cross currency swaps

 

(14.7

)

 

 

Other

 

(1.8

)

 

 

Net cash used for financing activities

 

(222.2

)

 

(435.9

)

Effect of exchange rate changes on cash and cash equivalents

 

12.1

 

 

(20.2

)

Change in cash and cash equivalents

 

12.4

 

 

(0.4

)

Cash and cash equivalents, beginning of year

 

82.1

 

 

82.5

 

Cash and cash equivalents, end of year

$

94.5

 

$

82.1

 

 

 

 

Pentair plc and Subsidiaries

Reconciliation of the GAAP Operating Activities Cash Flow to the Non-GAAP Free Cash Flow (Unaudited)

 

 

 

 

Years ended December 31

In millions

2021

2020

Net cash provided by operating activities of continuing operations

$

613.6

 

$

574.2

 

Capital expenditures

 

(60.2

)

 

(62.2

)

Proceeds from sale of property and equipment

 

3.9

 

 

0.1

 

Free cash flow from continuing operations

$

557.3

 

$

512.1

 

Net cash used for operating activities of discontinued operations

 

(0.4

)

 

(0.6

)

Free cash flow

$

556.9

 

$

511.5

 

 

Pentair plc and Subsidiaries

Supplemental Financial Information by Reportable Segment (Unaudited)

 

 

 

 

 

 

 

2021

In millions

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Full
Year

Net sales

 

 

 

 

 

Consumer Solutions

$

521.4

 

$

576.9

 

$

613.6

 

$

630.0

 

$

2,341.9

 

Industrial & Flow Technologies

 

344.1

 

 

363.9

 

 

355.1

 

 

358.3

 

 

1,421.4

 

Other

 

0.4

 

 

0.3

 

 

0.5

 

 

0.3

 

 

1.5

 

Consolidated

$

865.9

 

$

941.1

 

$

969.2

 

$

988.6

 

$

3,764.8

 

Segment income (loss)

 

 

 

 

 

Consumer Solutions

$

131.0

 

$

143.4

 

$

144.2

 

$

135.8

 

$

554.4

 

Industrial & Flow Technologies

 

50.0

 

 

57.1

 

 

52.4

 

 

53.8

 

 

213.3

 

Other

 

(16.6

)

 

(25.6

)

 

(16.9

)

 

(22.7

)

 

(81.8

)

Consolidated

$

164.4

 

$

174.9

 

$

179.7

 

$

166.9

 

$

685.9

 

Return on sales

 

 

 

 

 

Consumer Solutions

 

25.1

%

 

24.9

%

 

23.5

%

 

21.6

%

 

23.7

%

Industrial & Flow Technologies

 

14.5

%

 

15.7

%

 

14.8

%

 

15.0

%

 

15.0

%

Consolidated

 

19.0

%

 

18.6

%

 

18.5

%

 

16.9

%

 

18.2

%

 

Pentair plc and Subsidiaries

Supplemental Financial Information by Reportable Segment (Unaudited)

 

 

 

 

 

 

 

2020

In millions

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Full
Year

Net sales

 

 

 

 

 

Consumer Solutions

$

388.8

 

$

401.2

 

$

470.8

 

$

482.1

 

$

1,742.9

 

Industrial & Flow Technologies

 

320.9

 

 

311.8

 

 

327.4

 

 

313.5

 

 

1,273.6

 

Other

 

0.3

 

 

0.3

 

 

0.3

 

 

0.4

 

 

1.3

 

Consolidated

$

710.0

 

$

713.3

 

$

798.5

 

$

796.0

 

$

3,017.8

 

Segment income (loss)

 

 

 

 

 

Consumer Solutions

$

84.8

 

$

96.7

 

$

113.8

 

$

123.8

 

$

419.1

 

Industrial & Flow Technologies

 

44.7

 

 

44.1

 

 

42.7

 

 

33.1

 

 

164.6

 

Other

 

(18.0

)

 

(16.1

)

 

(16.0

)

 

(16.0

)

 

(66.1

)

Consolidated

$

111.5

 

$

124.7

 

$

140.5

 

$

140.9

 

$

517.6

 

Return on sales

 

 

 

 

 

Consumer Solutions

 

21.8

%

 

24.1

%

 

24.2

%

 

25.7

%

 

24.0

%

Industrial & Flow Technologies

 

13.9

%

 

14.1

%

 

13.0

%

 

10.6

%

 

12.9

%

Consolidated

 

15.7

%

 

17.5

%

 

17.6

%

 

17.7

%

 

17.2

%

 

Pentair plc and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2021

Excluding the Effect of Adjustments (Unaudited)

 

 

 

 

 

 

In millions, except per-share data

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Full
Year

Net sales

$

865.9

 

$

941.1

 

$

969.2

 

$

988.6

 

$

3,764.8

 

Operating income

 

157.1

 

 

161.8

 

 

167.3

 

 

150.7

 

 

636.9

 

% of net sales

 

18.1

%

 

17.2

%

 

17.3

%

 

15.2

%

 

16.9

%

Adjustments:

 

 

 

 

 

Restructuring and other

 

1.5

 

 

3.9

 

 

0.1

 

 

2.0

 

 

7.5

 

Transformation costs

 

 

 

1.9

 

 

4.0

 

 

5.8

 

 

11.7

 

Intangible amortization

 

7.1

 

 

6.3

 

 

6.0

 

 

6.9

 

 

26.3

 

COVID-19 related costs and expenses

 

0.2

 

 

0.1

 

 

0.1

 

 

0.2

 

 

0.6

 

Legal accrual adjustments and settlements

 

(2.4

)

 

 

 

 

 

(5.2

)

 

(7.6

)

Inventory step-up

 

 

 

 

 

 

 

2.3

 

 

2.3

 

Deal-related costs and expenses

 

0.7

 

 

1.0

 

 

2.1

 

 

4.1

 

 

7.9

 

Equity income (loss) of unconsolidated subsidiaries

 

0.2

 

 

(0.1

)

 

0.1

 

 

0.1

 

 

0.3

 

Segment income

 

164.4

 

 

174.9

 

 

179.7

 

 

166.9

 

 

685.9

 

Return on sales

 

19.0

%

 

18.6

%

 

18.5

%

 

16.9

%

 

18.2

%

Net income from continuing operations—as reported

 

131.1

 

 

132.6

 

 

143.7

 

 

148.6

 

 

556.0

 

Gain on sale of businesses

 

 

 

 

 

(1.4

)

 

 

 

(1.4

)

Pension and other post-retirement mark-to-market gain

 

 

 

 

 

 

 

(2.4

)

 

(2.4

)

Other income

 

 

 

(0.3

)

 

 

 

 

 

(0.3

)

Adjustments to operating income

 

7.1

 

 

13.2

 

 

12.3

 

 

16.1

 

 

48.7

 

Income tax adjustments

 

(2.4

)

 

(4.6

)

 

(6.2

)

 

(17.0

)

 

(30.2

)

Net income from continuing operations—as adjusted

$

135.8

 

$

140.9

 

$

148.4

 

$

145.3

 

$

570.4

 

Continuing earnings per ordinary share—diluted

 

 

 

 

 

Diluted earnings per ordinary share—as reported

$

0.78

 

$

0.79

 

$

0.86

 

$

0.89

 

$

3.32

 

Adjustments

 

0.03

 

 

0.05

 

 

0.03

 

 

(0.02

)

 

0.08

 

Diluted earnings per ordinary share—as adjusted

$

0.81

 

$

0.84

 

$

0.89

 

$

0.87

 

$

3.40

 

 

Pentair plc and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2022

Excluding the Effect of Adjustments (Unaudited)

 

 

 

 

 

 

 

 

Forecast

In millions, except per-share data

 

First
Quarter

 

Full
Year

Net sales

 

approx

Up 7% - 11%

 

approx

Up 6% - 9%

Operating income

 

approx

Flat

 

approx

Up 14% - 17%

Adjustments:

 

 

 

 

 

 

Intangible amortization

 

approx

$6

 

approx

$23

Equity income of unconsolidated subsidiaries

 

approx

1

 

approx

4

Segment income

 

approx

Flat

 

approx

Up 10% - 13%

 

 

 

 

 

 

 

Net income from continuing operations—as reported

 

approx

$127

 

approx

$593 - $610

Adjustments to operating income

 

approx

6

 

approx

23

Income tax adjustments

 

approx

1

 

approx

4

Net income from continuing operations—as adjusted

 

approx

$134

 

approx

$620 - $637

Continuing earnings per ordinary share—diluted

 

 

 

 

 

 

Diluted earnings per ordinary share—as reported

 

approx

$0.76

 

approx

$3.54 - $3.64

Adjustments

 

approx

0.04

 

approx

0.16

Diluted earnings per ordinary share—as adjusted

 

approx

$0.80

 

approx

$3.70 - $3.80

   

Pentair plc and Subsidiaries

Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment

For the Quarter and Year Ended December 31, 2021 (Unaudited)

 

 

 

 

 

 

 

Q4 Net Sales Growth

 

Full Year Net Sales Growth

 

Core

Currency

Acq. /
Div.

Total

 

Core

Currency

Acq. /
Div.

Total

Total Pentair

19.4 %

(0.5) %

5.3 %

24.2 %

 

20.9 %

1.3 %

2.6 %

24.8 %

Consumer Solutions

23.2 %

(0.1) %

7.6 %

30.7 %

 

29.5 %

0.6 %

4.3 %

34.4 %

Industrial & Flow Technologies

13.4 %

(0.9) %

1.8 %

14.3 %

 

9.1 %

2.1 %

0.4 %

11.6 %

 

Pentair plc and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2020

Excluding the Effect of Adjustments (Unaudited)

 

 

 

 

 

 

In millions, except per-share data

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Full
Year

Net sales

$

710.0

 

$

713.3

 

$

798.5

 

$

796.0

 

$

3,017.8

 

Operating income

 

100.7

 

 

111.1

 

 

128.1

 

 

121.5

 

 

461.4

 

% of net sales

 

14.2

%

 

15.6

%

 

16.0

%

 

15.3

%

 

15.3

%

Adjustments:

 

 

 

 

 

Restructuring and other

 

2.4

 

 

1.1

 

 

2.1

 

 

9.8

 

 

15.4

 

Intangible amortization

 

7.6

 

 

7.0

 

 

6.9

 

 

6.9

 

 

28.4

 

COVID-19 related costs and expenses

 

0.9

 

 

4.8

 

 

2.6

 

 

2.1

 

 

10.4

 

Deal related costs and expenses

 

0.4

 

 

 

 

 

 

0.2

 

 

0.6

 

Equity (loss) income of unconsolidated subsidiaries

 

(0.5

)

 

0.7

 

 

0.8

 

 

0.4

 

 

1.4

 

Segment income

 

111.5

 

 

124.7

 

 

140.5

 

 

140.9

 

 

517.6

 

Return on sales

 

15.7

%

 

17.5

%

 

17.6

%

 

17.7

%

 

17.2

%

Net income from continuing operations—as reported

 

72.7

 

 

73.8

 

 

110.8

 

 

99.8

 

 

357.1

 

Loss on sale of businesses

 

 

 

0.1

 

 

 

 

 

 

0.1

 

Pension and other post-retirement mark-to-market loss

 

 

 

 

 

 

 

6.7

 

 

6.7

 

Other income

 

 

 

 

 

(2.2

)

 

 

 

(2.2

)

Adjustments to operating income

 

11.3

 

 

12.9

 

 

11.6

 

 

19.0

 

 

54.8

 

Income tax adjustments

 

3.3

 

 

11.1

 

 

(3.6

)

 

(8.1

)

 

2.7

 

Net income from continuing operations—as adjusted

$

87.3

 

$

97.9

 

$

116.6

 

$

117.4

 

$

419.2

 

Continuing earnings per ordinary share—diluted

 

 

 

 

 

Diluted earnings per ordinary share—as reported

$

0.43

 

$

0.44

 

$

0.66

 

$

0.60

 

$

2.13

 

Adjustments

 

0.09

 

 

0.15

 

 

0.04

 

 

0.10

 

 

0.37

 

Diluted earnings per ordinary share—as adjusted

$

0.52

 

$

0.59

 

$

0.70

 

$

0.70

 

$

2.50

 

 

James C. Lucas
SVP, Treasurer, FP&A and Investor Relations
Direct: 763-656-5575
Email: jim.lucas@pentair.com

Rebecca Osborn
Senior Manager, External Communications
Direct: 763-656-5589
Email: rebecca.osborn@pentair.com

Source: Pentair plc

Categories: Press Releases