Company increases quarterly cash dividend by 10 percent
- Fourth quarter 2014 adjusted net income was $114 million or $0.62
per share, up 11 percent over fourth quarter 2013; GAAP net income was
$96 million or $0.52 per share
- Full-year 2014 adjusted net income was $362 million or $1.97 per
share, an increase of 18 percent; Full-year GAAP net income was $337
million or $1.83 per share
- Xylem delivered $1.04 billion in fourth quarter 2014 revenue,
growth of 6 percent organically
- Xylem’s fourth quarter 2014 adjusted operating margin increased 70
basis points, resulting in six consecutive quarters of adjusted
operating margin expansion
- Company projects full-year 2015 adjusted EPS of $1.85 to $1.95 per
share; Excluding the expected unfavorable impact of foreign exchange
translation, adjusted earningsgrowth of 5 to 10 percent is
expected on organic revenue growth of 1 to 3 percent
Company Website:
http://www.xyleminc.com
RYE BROOK, N.Y. -- (Business Wire)
Xylem Inc. (NYSE:XYL), a leading global water technology company
dedicated to solving the world’s most challenging water issues, today
reported fourth quarter 2014 net income of $96 million, or $0.52 per
share. Excluding the impact of restructuring, realignment and other
special charges, the Company delivered adjusted net income of $114
million or $0.62 per share in the quarter, an 11-percent increase over
the comparable period in 2013. Fourth quarter organic revenue grew 6
percent to $1.04 billion, reflecting stronger results from emerging
markets and the U.S., as well as across all end markets. Fourth quarter
adjusted operating margins improved 70 basis points, driven by higher
volume and the impact of efficiency measures undertaken throughout the
year.
For the full year 2014, Xylem generated $3.92 billion in revenue, an
organic increase of 3 percent over 2013. Full-year reported net income
was $337 million, or $1.83 per share, with an operating margin of 11.8
percent. Adjusted net income, which excludes the impact of
restructuring, realignment and other special items, was $362 million or
$1.97 per share. Xylem delivered a full-year 2014 adjusted operating
margin of 12.9 percent. Free cash flow was $297 million, up 50 percent
versus last year.
“Xylem delivered strong results in the fourth quarter, closing out 2014
with a clear strategic focus, stronger execution and a renewed drive in
research and innovation,” said Patrick Decker, president and chief
executive officer of Xylem. “We generated growth in each of our key
regions in the fourth quarter, with notably strong results in China and
the emerging markets in general. Solid growth in the U.S. and more
effective execution across the company helped us to mitigate slower
growth in Europe.”
Decker continued, “During 2015, we will continue to strengthen critical
organization capabilities in the areas of commercial excellence,
innovation and technology, and emerging markets in order to accelerate
Xylem’s growth. Our commitment to building a continuous improvement
culture across the organization will drive efficiencies and enable us to
continue to expand margins and reinvest for growth in our business. Our
core fundamentals are strong and our 2015 plan tracks well with our
long-term commitments to grow the company and our shareholders’ return.”
Xylem today also announced that its Board of Directors declared a
dividend in the amount of $0.1408 per share for the first quarter of
2015, an increase of 10 percent. The dividend is payable on March 18,
2015 to shareholders of record as of February 18, 2015.
Full-year 2015 Outlook
Xylem forecasts full-year 2015 revenue of approximately $3.7 billion, a
decrease of 5 to 7 percent over the 2014 results, including the
projected unfavorable impact of foreign exchange translation. On an
organic basis, Xylem’s revenue growth is anticipated to be in the range
of 1 to 3 percent.
Full-year 2015 adjusted operating income is expected to be in the range
of $480 to $505 million, resulting in adjusted earnings per share of
$1.85 to $1.95. This represents a decline of 1 to 6 percent from Xylem’s
2014 adjusted results. Excluding the projected unfavorable impact of
foreign exchange translation, Xylem’s adjusted earnings per share growth
is anticipated to be in the range of 5 to 10 percent. The company’s
adjusted earnings outlook reflects projected restructuring and
realignment costs of $20 million for the year.
Fourth Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its businesses serving
clean water delivery, wastewater transport and treatment, dewatering and
analytical instrumentation.
-
Fourth quarter 2014 revenue was $672 million, up 6 percent organically
compared with the fourth quarter 2013, reflecting growth across all
business lines and all geographic regions.
-
Fourth quarter adjusted operating income for the segment, which
excludes $9 million of restructuring, realignment and other special
items, was $113 million, a 2-percent improvement over the same period
in 2013. Adjusted operating margin for the quarter expanded 30 basis
points reflecting the benefits of cost reduction actions taken
throughout the year.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of businesses in
residential and commercial building services, industrial and
agricultural applications.
-
Fourth quarter 2014 revenue increased 7 percent organically
year-over-year to $370 million with growth coming from all
applications, and exceptionally strong performances in the U.S. and
emerging markets.
-
Fourth quarter adjusted operating income for the segment, which
excludes $2 million of restructuring and realignment costs, was $50
million, 6 percent higher than the comparable period last year.
Adjusted operating margin grew 40 basis points, reflecting the
benefits of cost reduction actions taken throughout the year,
partially offset by unfavorable foreign exchange translation impacts.
Supplemental information on Xylem’s fourth quarter and full year 2014
earnings and reconciliations for certain non-GAAP items is posted at investors.xyleminc.com.
About Xylem
Xylem (XYL) is a leading global water technology provider, enabling
customers to transport, treat, test and efficiently use water in public
utility, residential and commercial building services, industrial and
agricultural settings. The company does business in more than 150
countries through a number of market-leading product brands, and its
people bring broad applications expertise with a strong focus on finding
local solutions to the world’s most challenging water and wastewater
problems. Xylem is headquartered in Rye Brook, New York, with 2014
revenues of $3.9 billion and approximately 12,500 employees worldwide.
Xylem was named to the Dow Jones Sustainability Index for the last three
years for advancing sustainable business practices and solutions
worldwide.
The name Xylem is derived from classical Greek and is the tissue that
transports water in plants, highlighting the engineering efficiency of
our water-centric business by linking it with the best water
transportation of all -- that which occurs in nature. For more
information, please visit us at www.xyleminc.com.
Forward-Looking Statements
This press release contains information that may constitute
“forward-looking statements.” Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. Generally,
the words “anticipate,” “estimate,” “expect,” “project,” “intend,”
“plan,” “forecast,” “believe,” “target,” “will,” “could,” “would,”
“should” and similar expressions identify forward-looking statements,
which generally are not historical in nature. However, the absence of
these words or similar expressions does not mean that a statement is not
forward-looking.
These forward-looking statements include statements about the
capitalization of Xylem Inc. (the “Company”), the Company’s
restructuring and realignment, future strategic plans and other
statements that describe the Company’s business strategy, outlook,
objectives, plans, intentions or goals. All statements that address
operating or financial performance, events or developments that we
expect or anticipate will occur in the future – including statements
relating to orders, revenues, operating margins and earnings per share
growth, and statements expressing general views about future operating
results – are forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other important
factors that could cause actual results to differ materially from those
expressed or implied in, or reasonably inferred from, such
forward-looking statements.
Factors that could cause results to differ materially from those
anticipated include: economic, political and other risks associated with
our international operations, including military actions, economic
sanctions or trade embargoes that could affect customer markets, and
non-compliance with laws, including foreign corrupt practice laws,
export and import laws and competition laws; potential for unexpected
cancellations or delays of customer orders in our reported backlog; our
exposure to fluctuations in foreign currency exchange rates; competition
and pricing pressures in the markets we serve; the strength of housing
and related markets; ability to retain and attract key members of
management; our relationship with and the performance of our channel
partners; our ability to borrow or to refinance our existing
indebtedness and availability of liquidity sufficient to meet our needs;
changes in the value of goodwill or intangible assets; risks relating to
product defects, product liability and recalls; governmental
investigations; security breaches or other disruptions of our
information technology systems; litigation and contingent liabilities;
and other factors set forth in Item 1A of our Annual Report on Form 10-K
for the year ended December 31, 2013, and those described from time to
time in subsequent reports filed with the Securities and Exchange
Commission.
All forward-looking statements made herein are based on information
currently available to the Company. The Company undertakes no obligation
to publicly update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise, except as
required by law.
|
XYLEM INC. AND SUBSIDIARIES CONSOLIDATED INCOME
STATEMENTS (In Millions, except per share data)
|
|
|
|
|
| Unaudited |
| |
| |
Year Ended December 31,
|
|
|
| 2014 | |
2013
| |
2012
|
Revenue
| | | | $ | 3,916 | | |
$
|
3,837
| | |
$
|
3,791
|
Cost of revenue
| | | | 2,403 |
| |
2,338
|
| |
2,289
|
Gross profit
| | | | 1,513 | | |
1,499
| | |
1,502
|
Selling, general and administrative expenses
| | | | 920 | | |
986
| | |
914
|
Research and development expenses
| | | | 104 | | |
104
| | |
106
|
Separation costs
| | | | — | | |
4
| | |
22
|
Restructuring and asset impairment charges
| | | | 26 |
| |
42
|
| |
17
|
Operating income
| | | | 463 | | |
363
| | |
443
|
Interest expense
| | | | 54 | | |
55
| | |
55
|
Other non-operating income (expense), net
| | | | 1 | | |
(10
|
)
| |
—
|
Gain from sale of business
| | | | 11 |
| |
—
|
| |
—
|
Income before taxes
| | | | 421 | | |
298
| | |
388
|
Income tax expense
| | | | 84 |
| |
70
|
| |
91
|
Net income
| | | | $ | 337 |
| |
$
|
228
|
| |
$
|
297
|
Earnings per share:
| | | | | | | | | | |
Basic
| | | | $ | 1.84 | | |
$
|
1.23
| | |
$
|
1.60
|
Diluted
| | | | $ | 1.83 | | |
$
|
1.22
| | |
$
|
1.59
|
Weighted average number of shares:
| | | | | | | | | | |
Basic
| | | | 183.1 | | |
185.2
| | |
185.8
|
Diluted
| | | | 184.2 | | |
186.0
| | |
186.2
|
Dividends declared per share
| | | | $ | 0.5120 | | |
$
|
0.4656
| | |
$
|
0.4048
|
|
|
XYLEM INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In
Millions, except per share amounts)
|
|
|
|
| Unaudited | |
| |
December 31,
|
|
| 2014 |
| |
2013
|
ASSETS | | | | | | | |
Current assets:
| | | | | | | |
Cash and cash equivalents
| | | $ | 663 | | |
$
|
533
| |
Receivables, less allowances for discounts and doubtful accounts of
$34 and $31 in 2014 and 2013, respectively
| | | 771 | | |
817
| |
Inventories
| | | 486 | | |
475
| |
Prepaid and other current assets
| | | 144 | | |
143
| |
Deferred income tax assets
| | | 38 |
| |
41
|
|
Total current assets
| | | 2,102 | | |
2,009
| |
Property, plant and equipment, net
| | | 461 | | |
488
| |
Goodwill
| | | 1,635 | | |
1,718
| |
Other intangible assets, net
| | | 431 | | |
488
| |
Other non-current assets
| | | 235 |
| |
193
|
|
Total assets | | | $ | 4,864 |
| |
$
|
4,896
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
Current liabilities:
| | | | | | | |
Accounts payable
| | | $ | 338 | | |
$
|
332
| |
Accrued and other current liabilities
| | | 481 | | |
479
| |
Short-term borrowings and current maturities of long-term debt
| | | 89 |
| |
42
|
|
Total current liabilities
| | | 908 | | |
853
| |
Long-term debt
| | | 1,199 | | |
1,199
| |
Accrued postretirement benefits
| | | 388 | | |
348
| |
Deferred income tax liabilities
| | | 158 | | |
191
| |
Other non-current accrued liabilities
| | | 84 |
| |
64
|
|
Total liabilities | | | 2,737 |
| |
2,655
|
|
| | | | | | |
|
Stockholders’ equity:
| | | | | | | |
Common Stock — par value $0.01 per share:
| | | | | | | |
Authorized 750.0 shares, issued 188.9 and 187.6 shares in 2014 and
2013, respectively
| | | 2 | | |
2
| |
Capital in excess of par value
| | | 1,796 | | |
1,753
| |
Retained earnings
| | | 648 | | |
405
| |
Treasury stock – at cost 6.6 shares and 3.0 shares in 2014 and 2013,
respectively
| | | (220 | ) | |
(86
|
)
|
Accumulated other comprehensive income
| | | (99 | ) | |
167
|
|
Total stockholders’ equity | | | 2,127 |
| |
2,241
|
|
Total liabilities and stockholders’ equity | | | $ | 4,864 |
| |
$
|
4,896
|
|
|
|
XYLEM INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
CASH FLOWS (In Millions)
|
|
|
|
| Unaudited | |
| |
| |
Year Ended December 31,
|
|
| 2014 |
| |
2013
| |
2012
|
Operating Activities | | | | | | | | | | |
Net income
| | | $ | 337 | | |
$
|
228
| | |
$
|
297
| |
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | | | | | | | |
Depreciation
| | | 95 | | |
99
| | |
94
| |
Amortization
| | | 47 | | |
51
| | |
48
| |
Deferred income taxes
| | | (29 | ) | |
(14
|
)
| |
1
| |
Share-based compensation
| | | 18 | | |
27
| | |
22
| |
Restructuring and asset impairment charges, net
| | | 26 | | |
42
| | |
17
| |
Gain from sale of business
| | | (11 | ) | |
—
| | |
—
| |
Other, net
| | | 2 | | |
15
| | |
2
| |
Payments of restructuring
| | | (26 | ) | |
(35
|
)
| |
(9
|
)
|
Contributions to postretirement benefit plans
| | | (35 | ) | |
(43
|
)
| |
(46
|
)
|
Changes in assets and liabilities (net of acquisitions):
| | | | | | | | | | |
Changes in receivables
| | | (37 | ) | |
(47
|
)
| |
2
| |
Changes in inventories
| | | (49 | ) | |
(39
|
)
| |
5
| |
Changes in accounts payable
| | | 17 | | |
4
| | |
(4
|
)
|
Changes in accrued liabilities
| | | 3 | | |
18
| | |
(28
|
)
|
Changes in accrued taxes
| | | 25 | | |
20
| | |
(17
|
)
|
Net changes in other assets and liabilities
|
|
| 33 |
| |
(2
|
)
| |
12
|
|
Net Cash — Operating activities |
|
| 416 |
| |
324
|
| |
396
|
|
Investing Activities | | | | | | | | | | |
Capital expenditures
| | | (119 | ) | |
(126
|
)
| |
(112
|
)
|
Proceeds from the sale of property, plant and equipment
| | | 2 | | |
6
| | |
5
| |
Acquisitions of businesses and assets, net of cash acquired
| | | — | | |
(81
|
)
| |
(41
|
)
|
Proceeds from sale of business
| | | 30 | | |
—
| | |
—
| |
Other, net
|
|
| 1 |
| |
2
|
| |
1
|
|
Net Cash — Investing activities |
|
| (86 | ) | |
(199
|
)
| |
(147
|
)
|
Financing Activities | | | | | | | | | | |
Net transfer to former parent
| | | — | | |
—
| | |
(9
|
)
|
Issuance of short-term debt
| | | 52 | | |
39
| | |
13
| |
Principal payments of debt and capital lease obligations
| | | — | | |
(2
|
)
| |
(14
|
)
|
Repurchase of common stock
| | | (134 | ) | |
(73
|
)
| |
(13
|
)
|
Proceeds from exercise of employee stock options
| | | 26 | | |
22
| | |
24
| |
Excess tax benefit from share based compensation
| | | 2 | | |
1
| | |
—
| |
Dividends paid
| | | (94 | ) | |
(87
|
)
| |
(75
|
)
|
Other, net
|
|
| 1 |
| |
—
|
| |
—
|
|
Net Cash — Financing activities |
|
| (147 | ) | |
(100
|
)
| |
(74
|
)
|
Effect of exchange rate changes on cash |
|
| (53 | ) | |
4
|
| |
11
|
|
Net change in cash and cash equivalents
| | | 130 | | |
29
| | |
186
| |
Cash and cash equivalents at beginning of year
|
|
| 533 |
| |
504
|
| |
318
|
|
Cash and cash equivalents at end of year |
|
| $ | 663 |
| |
$
|
533
|
| |
$
|
504
|
|
Supplemental disclosure of cash flow information:
| | | | | | | | | | |
Cash paid during the year for:
| | | | | | | | | | |
Interest
| | | $ | 51 | | |
$
|
51
| | |
$
|
53
| |
Income taxes (net of refunds received)
| | | $ | 81 | | |
$
|
65
| | |
$
|
104
| |
|
Xylem Inc. Non-GAAP Measures
Management views key performance indicators including revenue, gross
margins, segment operating income and margins, orders growth, free cash
flow, working capital, and backlog, among others. In addition, we
consider certain measures to be useful to management and investors
evaluating our operating performance for the periods presented, and
provide a tool for evaluating our ongoing operations, liquidity and
management of assets. This information can assist investors in assessing
our financial performance and measures our ability to generate capital
for deployment among competing strategic alternatives and initiatives.
These metrics, however, are not measures of financial performance under
GAAP and should not be considered a substitute for revenue, operating
income, net income, earnings per share (basic and diluted) or net cash
from operations as determined in accordance with GAAP. We consider the
following non-GAAP measures, which may not be comparable to similarly
titled measures reported by other companies, to be key performance
indicators:
“Organic revenue" and "Organic orders” defined as
revenue and orders, respectively, excluding the impact of foreign
currency fluctuations and contributions from acquisitions and
divestitures. Divestitures include sales of portions of our business
that did not meet the criteria for classification as a discontinued
operation or insignificant portions of our business that we did not
classify as a discontinued operation. The period-over-period change
resulting from foreign currency fluctuations assumes no change in
exchange rates from the prior period.
“Constant currency” defined as financial results adjusted for
currency translation impacts by translating current period and prior
period activity using the same currency conversion rate. This approach
is used for countries whose functional currency is not the U.S. dollar.
“EBITDA” defined as earnings before interest, taxes,
depreciation, amortization expense, and share-based compensation. “Adjusted
EBITDA” reflects the adjustment to EBITDA to exclude non-recurring
restructuring and realignment costs, gain on sale of business and
special charges.
"Adjusted Operating Income", "Adjusted Segment Operating Income", and
“Adjusted EPS” defined as operating income, segment operating income
and earnings per share, adjusted to exclude non-recurring restructuring
and realignment costs, gain on sale of business, special charges and
tax-related special items, as applicable.
“Free Cash Flow” defined as net cash from operating activities,
as reported in the Statement of Cash Flow, less capital expenditures as
well as adjustments for other significant items that impact current
results which management believes are not related to our ongoing
operations and performance. Our definition of free cash flows does not
consider non-discretionary cash payments, such as debt.
“Realignment costs” defined as non-recurring costs not included
in restructuring costs that are incurred as part of actions taken to
reposition our business, including items such as professional fees,
relocation, travel and other costs.
“Special charges” defined as costs incurred by the Company
associated with the settlement of legal proceedings with Xylem Group LLC
and certain costs incurred for the change in chief executive officer
made during the third quarter of 2013, as well as costs incurred in the
fourth quarter of 2013 for the contractual indemnification of federal
tax obligations to ITT and costs associated with a legal judgment
arising from a historical acquisition matter.
|
Xylem Inc. Non-GAAP Reconciliation
|
Reported vs. Organic & Constant Currency Order Growth
|
($ Millions)
|
|
|
|
|
|
|
|
|
| | | (As Reported - GAAP) | | (As Adjusted - Organic) | | Constant Currency |
| | | |
|
(A)
|
|
(B)
|
| | |
(C)
|
|
(D)
|
|
(E) = B+C+D
|
|
(F) = E/A
| |
(G) = (E - C) / A
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | |
Change
| |
% Change
| |
Acquisitions /
| | | |
Change
| |
% Change
| | |
| | |
Orders
| |
Orders
| |
2014 v. 2013
| |
2014 v. 2013
| |
Divestitures
| |
FX Contribution
| |
Adj. 2014 v. 2013
| |
Adj. 2014 v. 2013
| | |
| | |
2014
| |
2013
| | | | | | | | | | | | | | |
Year Ended December 31 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
4,021
| |
3,912
| |
109
| |
3%
| |
1
| |
43
| |
153
| |
4%
| |
4%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
2,511
| |
2,443
| |
68
| |
3%
| |
(8)
| |
40
| |
100
| |
4%
| |
4%
|
Applied Water
| | |
1,510
| |
1,469
| |
41
| |
3%
| |
9
| |
3
| |
53
| |
4%
| |
3%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended December 31 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
970
| |
986
| |
(16)
| |
-2%
| |
4
| |
46
| |
34
| |
3%
| |
3%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
596
| |
630
| |
(34)
| |
-5%
| |
-
| |
35
| |
1
| |
0%
| |
0%
|
Applied Water
| | |
374
| |
356
| |
18
| |
5%
| |
4
| |
11
| |
33
| |
9%
| |
8%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended September 30 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
1,027
| |
955
| |
72
| |
8%
| |
5
| |
2
| |
79
| |
8%
| |
8%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
664
| |
601
| |
63
| |
10%
| |
-
| |
-
| |
63
| |
10%
| |
10%
|
Applied Water
| | |
363
| |
354
| |
9
| |
3%
| |
5
| |
2
| |
16
| |
5%
| |
3%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended June 30 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
1,031
| |
1,009
| |
22
| |
2%
| |
(1)
| |
(8)
| |
13
| |
1%
| |
1%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
654
| |
629
| |
25
| |
4%
| |
(1)
| |
1
| |
25
| |
4%
| |
4%
|
Applied Water
| | |
377
| |
380
| |
(3)
| |
-1%
| |
-
| |
(8)
| |
(11)
| |
-3%
| |
-3%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended March 31 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
993
| |
962
| |
31
| |
3%
| |
(7)
| |
3
| |
27
| |
3%
| |
4%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
597
| |
583
| |
14
| |
2%
| |
(7)
| |
4
| |
11
| |
2%
| |
3%
|
Applied Water
| | |
396
| |
379
| |
17
| |
4%
| |
-
| |
(2)
| |
15
| |
4%
| |
4%
|
| | | | | | | | | | | |
|
|
Xylem Inc. Non-GAAP Reconciliation
|
Reported vs. Organic & Constant Currency Revenue
|
($ Millions)
|
|
|
|
|
|
|
|
|
| | | (As Reported - GAAP) | | (As Adjusted - Organic) | | Constant Currency |
| | | |
|
(A)
|
|
(B)
|
| | |
(C)
|
|
(D)
|
|
(E) = B+C+D
|
|
(F) = E/A
| |
(G) = (E - C) / A
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | |
Change
| |
% Change
| |
Acquisitions /
| | | |
Change
| |
% Change
| | |
| | |
Revenue
| |
Revenue
| |
2014 v. 2013
| |
2014 v. 2013
| |
Divestitures
| |
FX Contribution
| |
Adj. 2014 v. 2013
| |
Adj. 2014 v. 2013
| | |
| | |
2014
| |
2013
| | | | | | | | | | | | | | |
Year Ended December 31 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
3,916
| |
3,837
| |
79
| |
2%
| |
6
| |
49
| |
134
| |
3%
| |
3%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
2,442
| |
2,384
| |
58
| |
2%
| |
(6)
| |
47
| |
99
| |
4%
| |
4%
|
Applied Water
| | |
1,474
| |
1,453
| |
21
| |
1%
| |
12
| |
2
| |
35
| |
2%
| |
2%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended December 31 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
1,042
| |
1,033
| |
9
| |
1%
| |
5
| |
50
| |
64
| |
6%
| |
6%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
672
| |
673
| |
(1)
| |
0%
| |
-
| |
39
| |
38
| |
6%
| |
6%
|
Applied Water
| | |
370
| |
360
| |
10
| |
3%
| |
5
| |
11
| |
26
| |
7%
| |
6%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended September 30 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
963
| |
965
| |
(2)
| |
0%
| |
7
| |
2
| |
7
| |
1%
| |
0%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
602
| |
602
| |
-
| |
0%
| |
-
| |
1
| |
1
| |
0%
| |
0%
|
Applied Water
| | |
361
| |
363
| |
(2)
| |
-1%
| |
7
| |
-
| |
5
| |
1%
| |
-1%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended June 30 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
1,005
| |
960
| |
45
| |
5%
| |
(1)
| |
(7)
| |
37
| |
4%
| |
4%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
616
| |
577
| |
39
| |
7%
| |
(1)
| |
2
| |
40
| |
7%
| |
7%
|
Applied Water
| | |
389
| |
383
| |
6
| |
2%
| |
-
| |
(7)
| |
(1)
| |
0%
| |
0%
|
| | | | | | | | | | | | | | | | | | |
|
Quarter Ended March 31 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | |
906
| |
879
| |
27
| |
3%
| |
(5)
| |
4
| |
26
| |
3%
| |
4%
|
| | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | |
552
| |
532
| |
20
| |
4%
| |
(5)
| |
5
| |
20
| |
4%
| |
5%
|
Applied Water
| | |
354
| |
347
| |
7
| |
2%
| |
-
| |
(2)
| |
5
| |
1%
| |
1%
|
|
|
Xylem Inc. Non-GAAP Reconciliation
|
Adjusted Operating Income
|
($ Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | Q4 | | | YTD |
| | | | 2014 |
|
| 2013 | | | 2014 |
|
| 2013 |
Total Revenue
| | | | |
• Total Xylem
| | | |
1,042
| | |
1,033
| | |
3,916
| | |
3,837
|
• Water Infrastructure
| | |
|
672
| | |
673
| | |
2,442
| | |
2,384
|
• Applied Water
| | |
|
370
| | |
360
| | |
1,474
| | |
1,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
| | | | |
• Total Xylem
| | | |
141
| | |
129
| | |
463
| | |
363
|
• Water Infrastructure
| | |
|
104
| | |
99
| | |
321
| | |
263
|
• Applied Water
| | |
|
48
| | |
43
| | |
193
| | |
175
|
• Total Segments
| | | |
152
| | |
142
| | |
514
| | |
438
|
| | | | | | | | | | | | |
|
Operating Margin
| | | | |
• Total Xylem
| | | |
13.5%
| | |
12.5%
| | |
11.8%
| | |
9.5%
|
• Water Infrastructure
| | | |
15.5%
| | |
14.7%
| | |
13.1%
| | |
11.0%
|
• Applied Water
| | | |
13.0%
| | |
11.9%
| | |
13.1%
| | |
12.0%
|
• Total Segments
|
|
|
|
14.6%
|
|
|
13.7%
|
|
|
13.1%
|
|
|
11.4%
|
| | | | | | | | | | | | |
|
Special Charges
| | | | |
• Total Xylem
| | | |
-
| | |
4
| | |
-
| | |
24
|
• Water Infrastructure
| | | |
-
| | |
4
| | |
-
| | |
4
|
• Applied Water
| | | |
-
| | |
-
| | |
-
| | |
-
|
• Total Segments
| | | |
-
| | |
4
| | |
-
| | |
4
|
| | | | | | | | | | | | |
|
Restructuring & Realignment Costs
| | | | |
• Total Xylem
| | | |
12
| | |
12
| | |
43
| | |
64
|
• Water Infrastructure
| | | |
9
| | |
8
| | |
29
| | |
48
|
• Applied Water
| | | |
2
| | |
4
| | |
13
| | |
16
|
• Total Segments
| | | |
11
| | |
12
| | |
42
| | |
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income*
| | | | |
• Total Xylem
| | | |
153
| | |
145
| | |
506
| | |
451
|
• Water Infrastructure
| | |
|
113
| | |
111
| | |
350
| | |
315
|
• Applied Water
| | |
|
50
| | |
47
| | |
206
| | |
191
|
• Total Segments
| | | |
163
| | |
158
| | |
556
| | |
506
|
| | | | | | | | | | | | |
|
Adjusted Operating Margin*
| | | | |
• Total Xylem
| | | |
14.7%
| | |
14.0%
| | |
12.9%
| | |
11.8%
|
• Water Infrastructure
| | | |
16.8%
| | |
16.5%
| | |
14.3%
| | |
13.2%
|
• Applied Water
| | | |
13.5%
| | |
13.1%
| | |
14.0%
| | |
13.1%
|
• Total Segments
|
|
|
|
15.6%
|
|
|
15.3%
|
|
|
14.2%
|
|
|
13.2%
|
|
*Adjusted Operating Income excludes restructuring & realignment costs
and special charges.
|
Xylem Inc. Non-GAAP Reconciliation
|
Adjusted Diluted EPS
|
($ Millions, except per share amounts)
|
|
|
|
|
|
|
|
| | | Q4 2013 | | Q4 2014 |
| | | As Reported |
| Adjustments |
| |
| Adjusted | | As Reported |
| Adjustments |
| |
| Adjusted |
Total Revenue
| | |
1,033
| | | | | |
1,033
| |
1,042
| | | | | |
1,042
|
Operating Income
| | |
129
| |
16
| |
a
| |
145
| |
141
| |
12
| |
d
| |
153
|
Operating Margin
| | | 12.5% | | | | | | 14.0% | | 13.5% | | | | | | 14.7% |
Interest Expense
| | |
(14)
| | | | | |
(14)
| |
(13)
| | | | | |
(13)
|
Other Non-Operating Income (Expense)
| | |
(8)
| |
8
| |
b
| |
-
| |
-
| | | | | |
-
|
Gain on sale of business
| | |
-
| |
| | | |
-
| |
-
| |
-
| | | |
-
|
Income before Taxes
| | |
107
| |
24
| | | |
131
| |
128
| |
12
| | | |
140
|
Provision for Income Taxes
| | |
(39)
| |
11
| |
c
| |
(28)
| |
(32)
| |
6
| |
c
| |
(26)
|
Net Income
| | |
68
| |
35
| | | |
103
| |
96
| |
18
| | | |
114
|
Diluted Shares
|
|
|
185.6
|
|
|
|
|
|
185.6
|
|
183.3
|
|
|
|
|
|
183.3
|
Diluted EPS |
|
| $ 0.37 |
| $ 0.19 |
|
|
| $ 0.56 |
| $ 0.52 |
| $ 0.10 |
|
|
| $ 0.62 |
| | | | | | | | | | | | | | | | |
|
| | |
| |
|
| | | Q4 YTD 2013 | | Q4 YTD 2014 |
| | | As Reported | | Adjustments | | | | Adjusted | | As Reported | | Adjustments | | | | Adjusted |
Total Revenue
| | |
3,837
| | | | | |
3,837
| |
3,916
| | | | | |
3,916
|
Operating Income
| | |
363
| |
88
| |
a
| |
451
| |
463
| |
43
| |
d
| |
506
|
Operating Margin
| | | 9.5% | | | | | | 11.8% | | 11.8% | | | | | | 12.9% |
Interest Expense
| | |
(55)
| | | | | |
(55)
| |
(54)
| | | | | |
(54)
|
Other Non-Operating Income (Expense)
| | |
(10)
| |
8
| |
b
| |
(2)
| |
1
| | | | | |
1
|
Gain on sale of business
| | |
-
| |
| | | |
-
| |
11
| |
(11)
| | | |
-
|
Income before Taxes
| | |
298
| |
96
| | | |
394
| |
421
| |
32
| | | |
453
|
Provision for Income Taxes
| | |
(70)
| |
(13)
| |
c
| |
(83)
| |
(84)
| |
(7)
| |
c
| |
(91)
|
Net Income
| | |
228
| |
83
| | | |
311
| |
337
| |
25
| | | |
362
|
Diluted Shares
|
|
|
186.0
|
|
|
|
|
|
186.0
|
|
184.2
|
|
|
|
|
|
184.2
|
Diluted EPS |
|
| $ 1.22 |
| $ 0.45 |
|
|
| $ 1.67 |
| $ 1.83 |
| $ 0.14 |
|
|
| $ 1.97 |
|
|
| |
a
| |
Restructuring & realignment costs and special charges
|
b
| |
Special charges
|
c
| |
Net tax impact of restructuring & realignment costs, special charges
and special tax items
|
d
| |
Restructuring & realignment costs
|
| |
|
|
Xylem Inc. Non-GAAP Reconciliation
|
Net Cash - Operating Activities vs. Free Cash Flow
|
($ Millions)
|
|
|
|
| |
|
| |
| | | | | | |
|
| | | |
Year Ended
|
| | | |
2014
| | |
2013
|
| | | | | | |
|
Net Cash - Operating Activities | | | |
$
|
416
| | | |
$
|
324
| |
| | | | | | |
|
Capital Expenditures
| | | | |
(119
|
)
| | | |
(126
|
)
|
| | | |
| | |
|
Free Cash Flow | | | |
$
|
297
|
| | |
$
|
198
|
|
| | | | | | |
|
Net Income
| | | | |
337
| | | | |
228
| |
| | | | | | |
|
Gain on Sale of Business
| | | |
|
11
|
| | |
|
-
|
|
| | | | | | |
|
Net Income, excluding gain on sale of business | | | |
$
|
326
|
| | |
$
|
228
|
|
| | | | | | |
|
Free Cash Flow Conversion | | | |
|
91
|
%
| | |
|
87
|
%
|
|
Contacts:
For Xylem Inc.
Media
Kelly McAndrew, +1-914-323-5969
Kelly.McAndrew@xyleminc.com
or
Investors
Phil
DeSousa, +1-914-323-5930
Phil.DeSousa@xyleminc.com
Source: Xylem Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.