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As Of Filer Filing For·On·As Docs:Size 10/30/19 Sensata Technologies Holding plc 8-K:2,9 10/30/19 13:901K |
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Exhibit |
• | Revenue was $849.7 million, a decrease of $23.8 million, or 2.7%,
compared to $873.6 million in the third quarter of 2018. |
• | Revenue declined 2.8% on an organic basis, which excludes the effects of the following: |
◦ | Foreign currency exchange rates: (0.3%) change versus the prior year period. |
◦ | Acquisitions
and divestitures, net: 0.4% change versus the prior year period. |
• | Operating income was $146.1 million (17.2% of revenue), a decrease of $76.2 million, or 34.3%, compared to $222.3 million (25.5% of revenue) in the third quarter of 2018. |
• | Adjusted
operating income was $199.5 million (23.5% of revenue), a decrease of $8.2 million, or 3.9%, compared to $207.6 million (23.8% of revenue) in the third quarter of 2018. |
• | Earnings per share were $0.44, a decrease of 50.0% compared to $0.88
per share in the third quarter of 2018. |
• | Adjusted earnings per share were $0.90, a decrease of 1.1% compared to $0.91 per share in the third quarter of 2018 |
• | Changes in foreign currency exchange rates increased
Sensata's adjusted earnings per share by $0.04 in the third quarter of 2019 compared to the prior year period. The net effect of acquisitions and divestitures decreased Sensata's adjusted earnings per share by $0.03 in the third quarter of 2019 compared to the prior year period. |
• | Revenue was $2,603.9 million, a decrease of $69.8 million, or 2.6%, compared to $2,673.7 million in the nine
months ended September 30, 2018. |
• | Revenue declined 1.2% on an organic basis, which excludes the effects of the following: |
◦ | Foreign currency exchange rates: (0.9%) change versus the prior year period. |
◦ | Acquisitions
and divestitures, net: (0.5%) change versus the prior year period. |
• | Operating income was $436.2 million (16.8% of revenue), a decrease of $111.9 million, or 20.4%, compared to $548.1 million, (20.5% of revenue), in the nine months ended September 30, 2018. |
• | Adjusted
operating income was $593.2 million (22.8% of revenue), a decrease of $28.7 million, or 4.6%, compared to $621.9 million (23.3% of revenue) in the nine months ended September 30, 2018. |
• | Earnings per share were $1.41, a decrease of
29.9% compared to $2.01 per share in the nine months ended September 30, 2018. |
• | Adjusted earnings per share were $2.67, a decrease of 0.7% compared to $2.69 per share in the nine months ended September 30, 2018 |
• | Changes
in foreign currency exchange rates increased Sensata's adjusted earnings per share by $0.13 in the first nine months of 2019 compared to the prior year period. The net effect of acquisitions and divestitures decreased Sensata's adjusted earnings per share by $0.11 in the first nine months of 2019 compared to the prior year period. |
For
the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
$ in 000s | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Performance Sensing revenue | $ | 628,593 | $ | 649,611 | $ | 1,913,137 | $ | 1,988,657 | ||||||||
Performance
Sensing operating income | 165,076 | 178,391 | 483,657 | 535,166 | ||||||||||||
% of Performance Sensing
revenue | 26.3 | % | 27.5 | % | 25.3 | % | 26.9 | % | ||||||||
Sensing
Solutions revenue | $ | 221,122 | $ | 223,941 | $ | 690,803 | $ | 685,048 | ||||||||
Sensing
Solutions operating income | 70,952 | 73,295 | 223,036 | 224,249 | ||||||||||||
% of Sensing Solutions
revenue | 32.1 | % | 32.7 | % | 32.3 | % | 32.7 | % |
Fiscal Year 2019 Financial Guidance | ||||||||
$
in millions, except EPS | FY-18 | Previous FY-19 Guidance as of 7/30/19 | Updated FY-19 Guidance as of 10/30/19 | Y/Y Change | ||||
Revenue | $3,521.6 | $3,461 - $3,523 | $3,422-
$3,446 | (3%) - (2%) | ||||
organic growth | (2%) - (1%) | |||||||
Adjusted Operating Income | $832.0 | $807
- $823 | $779 - $785 | (6%) - (6%) | ||||
Adjusted Net Income | $619.4 | $596 - $612 | $569 - $575 | (8%) - (7%) | ||||
Adjusted
EPS | $3.65 | $3.67 - $3.77 | $3.51 - $3.55 | (4%) - (3%) |
SENSATA
TECHNOLOGIES HOLDING PLC |
Condensed Consolidated Statements of Operations |
(In thousands, except per share amounts) |
(Unaudited) |
For
the three months ended | For the nine months ended | |||||||||||||||
Net revenue | $ | 849,715 | $ | 873,552 | $ | 2,603,940 | $ | 2,673,705 | ||||||||
Operating
costs and expenses: | ||||||||||||||||
Cost of revenue | 554,910 | 558,334 | 1,710,951 | 1,723,300 | ||||||||||||
Research
and development | 38,189 | 37,800 | 109,970 | 111,781 | ||||||||||||
Selling, general and administrative | 68,158 | 73,886 | 210,733 | 235,681 | ||||||||||||
Amortization
of intangible assets | 35,905 | 33,911 | 108,079 | 103,574 | ||||||||||||
Restructuring and other
charges, net | 6,421 | (52,698 | ) | 28,040 | (48,688 | ) | ||||||||||
Total operating costs and expenses | 703,583 | 651,233 | 2,167,773 | 2,125,648 | ||||||||||||
Operating
income | 146,132 | 222,319 | 436,167 | 548,057 | ||||||||||||
Interest expense, net | (39,556 | ) | (38,058 | ) | (118,417 | ) | (114,808 | ) | ||||||||
Other,
net | (7,560 | ) | (10,581 | ) | (7,925 | ) | (26,267 | ) | ||||||||
Income before taxes | 99,016 | 173,680 | 309,825 | 406,982 | ||||||||||||
Provision
for income taxes | 28,341 | 24,562 | 80,649 | 62,086 | ||||||||||||
Net income | $ | 70,675 | $ | 149,118 | $ | 229,176 | $ | 344,896 | ||||||||
Net
income per share: | ||||||||||||||||
Basic | $ | 0.44 | $ | 0.89 | $ | 1.42 | $ | 2.03 | ||||||||
Diluted | $ | 0.44 | $ | 0.88 | $ | 1.41 | $ | 2.01 | ||||||||
Weighted-average
ordinary shares outstanding: | ||||||||||||||||
Basic | 160,458 | 167,290 | 161,774 | 170,045 | ||||||||||||
Diluted | 161,308 | 168,594 | 162,769 | 171,381 |
SENSATA
TECHNOLOGIES HOLDING PLC |
Condensed Consolidated Balance Sheets |
(In thousands) |
(Unaudited) |
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 721,386 | $ | 729,833 | ||||
Accounts
receivable, net of allowances | 596,814 | 581,769 | ||||||
Inventories | 502,939 | 492,319 | ||||||
Prepaid
expenses and other current assets | 128,447 | 113,234 | ||||||
Total current assets | 1,949,586 | 1,917,155 | ||||||
Property,
plant and equipment, net | 817,040 | 787,178 | ||||||
Goodwill | 3,104,447 | 3,081,302 | ||||||
Other
intangible assets, net | 790,692 | 897,191 | ||||||
Deferred income tax assets | 25,599 | 27,971 | ||||||
Other
assets | 156,210 | 86,890 | ||||||
Total assets | $ | 6,843,574 | $ | 6,797,687 | ||||
Liabilities
and shareholders’ equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt, finance lease and other financing obligations | $ | 7,863 | $ | 14,561 | ||||
Accounts
payable | 365,823 | 379,824 | ||||||
Income taxes payable | 29,753 | 27,429 | ||||||
Accrued
expenses and other current liabilities | 217,064 | 218,130 | ||||||
Total current liabilities | 620,503 | 639,944 | ||||||
Deferred
income tax liabilities | 246,216 | 225,694 | ||||||
Pension and other post-retirement benefit obligations | 29,249 | 33,958 | ||||||
Finance
lease and other financing obligations, less current portion | 29,415 | 30,618 | ||||||
Long-term debt, net | 3,219,412 | 3,219,762 | ||||||
Other
long-term liabilities | 95,891 | 39,277 | ||||||
Total liabilities | 4,240,686 | 4,189,253 | ||||||
Total
shareholders’ equity | 2,602,888 | 2,608,434 | ||||||
Total liabilities and shareholders’ equity | $ | 6,843,574 | $ | 6,797,687 |
SENSATA
TECHNOLOGIES HOLDING PLC |
Condensed Consolidated Statements of Cash Flows |
(In thousands) |
(Unaudited) |
For the nine months ended | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 229,176 | $ | 344,896 | ||||
Adjustments
to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 84,354 | 79,518 | ||||||
Amortization of debt issuance costs | 5,573 | 5,480 | ||||||
Gain
on sale of business | — | (63,688 | ) | |||||
Share-based compensation | 15,188 | 17,813 | ||||||
Loss
on debt financing | 4,364 | 2,350 | ||||||
Amortization of intangible assets | 108,079 | 103,574 | ||||||
Deferred
income taxes | 20,313 | 9,547 | ||||||
Unrealized loss on derivative instruments and other | 23,545 | 9,020 | ||||||
Changes
in operating assets and liabilities | (57,065 | ) | (88,371 | ) | ||||
Net cash provided by operating activities | 433,527 | 420,139 | ||||||
Cash
flows from investing activities: | ||||||||
Acquisitions, net of cash received | (32,315 | ) | — | |||||
Additions to property, plant and equipment and capitalized software | (123,206 | ) | (111,275 | ) | ||||
Proceeds
from the sale of business, net of cash sold | — | 149,136 | ||||||
Other | (5,003 | ) | 5,000 | |||||
Net
cash (used in)/provided by investing activities | (160,524 | ) | 42,861 | |||||
Cash flows from financing activities: | ||||||||
Proceeds
from exercise of stock options and issuance of ordinary shares | 10,309 | 6,051 | ||||||
Payments of employee restricted stock tax withholdings | (6,953 | ) | (3,673 | ) | ||||
Proceeds
from issuance of debt | 450,000 | — | ||||||
Payments on debt | (461,190 | ) | (14,094 | ) | ||||
Payments
to repurchase ordinary shares | (265,846 | ) | (399,417 | ) | ||||
Payments of debt and equity issuance costs | (7,770 | ) | (9,931 | ) | ||||
Other | — | 16,369 | ||||||
Net
cash used in financing activities | (281,450 | ) | (404,695 | ) | ||||
Net change in cash and cash equivalents | (8,447 | ) | 58,305 | |||||
Cash
and cash equivalents, beginning of period | 729,833 | 753,089 | ||||||
Cash and cash equivalents, end of period | $ | 721,386 | $ | 811,394 |
(percent of total revenue) | Three months ended September 30, | Nine months ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Performance
Sensing | 74.0 | % | 74.4 | % | 73.5 | % | 74.4 | % | ||||
Sensing Solutions | 26.0 | % | 25.6 | % | 26.5 | % | 25.6 | % | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(percent
of total revenue) | Three months ended September 30, | Nine months ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Americas | 44.1 | % | 43.5 | % | 43.4 | % | 42.3 | % | ||||
Europe | 27.1 | % | 28.4 | % | 28.5 | % | 29.5 | % | ||||
Asia/Rest
of World | 28.8 | % | 28.1 | % | 28.1 | % | 28.2 | % | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(percent
of total revenue) | Three months ended September 30, | Nine months ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Automotive* | 59.4 | % | 59.5 | % | 58.3 | % | 60.2 | % | ||||
Heavy
vehicle and off-road | 15.9 | % | 16.2 | % | 16.5 | % | 15.6 | % | ||||
Appliance and heating, ventilation and air-conditioning | 5.9 | % | 6.1 | % | 6.0 | % | 6.1 | % | ||||
Industrial | 9.9 | % | 9.6 | % | 10.5 | % | 9.5 | % | ||||
Aerospace | 4.9 | % | 4.7 | % | 5.0 | % | 4.6 | % | ||||
All
other | 4.0 | % | 3.9 | % | 3.7 | % | 4.0 | % | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
* | Includes
amounts reflected in the Sensing Solutions segment as follows: $10.7 million and $11.5 million of revenue in the three months ended September 30, 2019 and 2018, respectively, and $32.8 million and $38.4 million of revenue in the nine months ended September 30, 2019 and 2018, respectively. |
For the three months ended September 30, 2019 | For the nine months
ended September 30, 2019 | ||||||||||||||||||
Reported Growth | Organic Growth | End Market Growth | Reported Growth | Organic Growth | End
Market Growth | ||||||||||||||
Automotive | (2.8 | %) | (0.4 | %) | (1.8 | %) | * | (5.5 | %) | (0.9 | %) | (5.2 | %) | * | |||||
Heavy
vehicle and off-road | (4.8 | %) | (6.2 | %) | (7.8 | %) | 2.6 | % | 1.7 | % | (2.4 | %) |
($
in thousands, except per share amounts) | For the three months ended September 30, 2019 | ||||||||||||||||||
Operating Income | Operating Margin | Income Tax Expense | Net Income | Diluted
EPS | |||||||||||||||
Reported (GAAP) | $ | 146,132 | 17.2 | % | $ | 28,341 | $ | 70,675 | $ | 0.44 | |||||||||
Non-GAAP
adjustments: | |||||||||||||||||||
Restructuring related and other | 15,557 | 1.8 | % | (700 | ) | 14,857 | 0.09 | ||||||||||||
Financing
and other transaction costs | 3,473 | 0.4 | % | — | 8,605 | 0.05 | |||||||||||||
Step-up
depreciation and amortization | 34,966 | 4.1 | % | — | 34,966 | 0.22 | |||||||||||||
Deferred
gain on derivative instruments | (654 | ) | (0.1 | %) | — | (2,440 | ) | (0.02 | ) | ||||||||||
Amortization
of debt issuance costs | — | — | % | — | 1,855 | 0.01 | |||||||||||||
Deferred
taxes and other tax related | — | — | % | 16,040 | 16,040 | 0.10 | |||||||||||||
Total
adjustments | 53,342 | 6.3 | % | 15,340 | 73,883 | 0.46 | |||||||||||||
Adjusted
(non-GAAP) | $ | 199,474 | 23.5 | % | $ | 13,001 | $ | 144,558 | $ | 0.90 |
($
in thousands, except per share amounts) | For the three months ended September 30, 2018 | ||||||||||||||||||
Operating Income | Operating Margin | Income Tax Expense | Net Income | Diluted
EPS | |||||||||||||||
Reported (GAAP) | $ | 222,319 | 25.5 | % | $ | 24,562 | $ | 149,118 | $ | 0.88 | |||||||||
Non-GAAP
adjustments: | |||||||||||||||||||
Restructuring related and other | 9,268 | 1.1 | % | — | 9,268 | 0.05 | |||||||||||||
Financing
and other transaction costs | (57,773 | ) | (6.6 | %) | — | (54,173 | ) | (0.32 | ) | ||||||||||
Step-up
depreciation and amortization | 33,512 | 3.8 | % | — | 33,512 | 0.20 | |||||||||||||
Deferred
loss on derivative instruments | 320 | 0.0 | % | — | 4,553 | 0.03 | |||||||||||||
Amortization
of debt issuance costs | — | — | % | — | 1,837 | 0.01 | |||||||||||||
Deferred
taxes and other tax related | — | — | % | 9,897 | 9,897 | 0.06 | |||||||||||||
Total
adjustments | (14,673 | ) | (1.7 | %) | 9,897 | 4,894 | 0.03 | ||||||||||||
Adjusted
(non-GAAP) | $ | 207,646 | 23.8 | % | $ | 14,665 | $ | 154,012 | $ | 0.91 |
($
in thousands, except per share amounts) | For the nine months ended September 30, 2019 | ||||||||||||||||||
Operating Income | Operating Margin | Income Tax Expense | Net Income | Diluted
EPS | |||||||||||||||
Reported (GAAP) | $ | 436,167 | 16.8 | % | $ | 80,649 | $ | 229,176 | $ | 1.41 | |||||||||
Non-GAAP
adjustments: | |||||||||||||||||||
Restructuring related and other | 44,916 | 1.7 | % | (1,500 | ) | 43,416 | 0.27 | ||||||||||||
Financing
and other transaction costs | 8,069 | 0.3 | % | — | 14,009 | 0.09 | |||||||||||||
Step-up
depreciation and amortization | 105,764 | 4.1 | % | — | 105,764 | 0.65 | |||||||||||||
Deferred
gain on derivative instruments | (1,753 | ) | (0.1 | %) | — | (4,560 | ) | (0.03 | ) | ||||||||||
Amortization
of debt issuance costs | — | — | % | — | 5,573 | 0.03 | |||||||||||||
Deferred
taxes and other tax related | — | — | % | 40,839 | 40,839 | 0.25 | |||||||||||||
Total
adjustments | 156,996 | 6.0 | % | 39,339 | 205,041 | 1.26 | |||||||||||||
Adjusted
(non-GAAP) | $ | 593,163 | 22.8 | % | $ | 41,310 | $ | 434,217 | $ | 2.67 |
($
in thousands, except per share amounts) | For the nine months ended September 30, 2018 | ||||||||||||||||||
Operating Income | Operating Margin | Income Tax Expense | Net Income | Diluted
EPS | |||||||||||||||
Reported (GAAP) | $ | 548,057 | 20.5 | % | $ | 62,086 | $ | 344,896 | $ | 2.01 | |||||||||
Non-GAAP
adjustments: | |||||||||||||||||||
Restructuring related and other | 18,271 | 0.7 | % | — | 18,271 | 0.11 | |||||||||||||
Financing
and other transaction costs | (52,364 | ) | (2.0 | %) | — | (46,414 | ) | (0.27 | ) | ||||||||||
Step-up
depreciation and amortization | 105,023 | 3.9 | % | — | 105,023 | 0.61 | |||||||||||||
Deferred
loss on derivative instruments | 2,868 | 0.1 | % | — | 13,752 | 0.08 | |||||||||||||
Amortization
of debt issuance costs | — | — | % | — | 5,480 | 0.03 | |||||||||||||
Deferred
taxes and other tax related | — | — | % | 20,783 | 20,783 | 0.12 | |||||||||||||
Total
adjustments | 73,798 | 2.8 | % | 20,783 | 116,895 | 0.68 | |||||||||||||
Adjusted
(non-GAAP) | $ | 621,855 | 23.3 | % | $ | 41,303 | $ | 461,791 | $ | 2.69 |
($ in thousands) | Three months ended September 30, | Nine
months ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Cost
of revenue | $ | 8,226 | $ | 4,102 | $ | 17,538 | $ | 15,375 | ||||||||||
Selling,
general and administrative | 4,480 | 892 | 8,430 | 7,580 | ||||||||||||||
Amortization
of intangible assets | 34,215 | 32,285 | 102,988 | 98,646 | ||||||||||||||
Restructuring
and other charges, net | 6,421 | (51,952 | ) | 28,040 | (47,803 | ) | ||||||||||||
Operating
income adjustments | 53,342 | (14,673 | ) | 156,996 | 73,798 | |||||||||||||
Interest
expense, net | 1,855 | 1,837 | 5,573 | 5,480 | ||||||||||||||
Other,
net | 3,346 | 7,833 | 3,133 | 16,834 | ||||||||||||||
Provision
for income taxes | 15,340 | 9,897 | 39,339 | 20,783 | ||||||||||||||
Net
income adjustments | $ | 73,883 | $ | 4,894 | $ | 205,041 | $ | 116,895 |
($ in thousands) | Three months ended September 30, | %
Change | Nine months ended September 30, | % Change | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net
cash provided by operating activities | $ | 181,361 | $ | 166,226 | 9.1 | % | $ | 433,527 | $ | 420,139 | 3.2 | % | ||||||||||
Additions
to property, plant and equipment and capitalized software | (41,657 | ) | (44,974 | ) | 7.4 | % | (123,206 | ) | (111,275 | ) | (10.7 | %) | ||||||||||
Free
cash flow | $ | 139,704 | $ | 121,252 | 15.2 | % | $ | 310,321 | $ | 308,864 | 0.5 | % |
Three
months ending December 31, 2019 | Full year ending December 31, 2019 | |||||||||||||||
Low End | High End | Low End | High End | |||||||||||||
Projected
GAAP Earnings per diluted share | $ | 0.45 | $ | 0.46 | $ | 1.84 | $ | 1.85 | ||||||||
Restructuring
related and other | 0.10 | 0.11 | 0.37 | 0.38 | ||||||||||||
Financing and other transaction costs | — | 0.01 | 0.09 | 0.10 | ||||||||||||
Deferred
(gain)/loss on derivative instruments* | — | — | (0.03 | ) | (0.03 | ) | ||||||||||
Step-up depreciation and amortization | 0.22 | 0.22 | 0.87 | 0.87 | ||||||||||||
Deferred
taxes and other tax related | 0.07 | 0.08 | 0.32 | 0.33 | ||||||||||||
Amortization of debt issuance costs | 0.01 | 0.01 | 0.05 | 0.05 | ||||||||||||
Projected
adjusted EPS per diluted share | $ | 0.85 | $ | 0.89 | $ | 3.51 | $ | 3.55 | ||||||||
Weighted-average
diluted shares outstanding (in 000s) | 159.3 | 159.3 | 161.9 | 161.9 |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/19 | 10-K, SD | |||
11/6/19 | ||||
Filed on / For Period end: | 10/30/19 | 10-Q | ||
9/30/19 | 10-Q | |||
12/31/18 | 10-K, SD | |||
9/30/18 | 10-Q | |||
List all Filings |