- Second quarter 2017 reported net income was $99 million or $0.55
per share; Adjusted net income for the quarter was $106 million or
$0.59 per share, up 23 percent versus the prior year period
- Xylem delivered $1.2 billion in second quarter 2017 revenue, up 25
percent year-over-year including the impact of acquisitions
- Orders exceeded $1.2 billion in the second quarter, growing eight
percent organically
- Reported operating margin increased 20 basis points to 11.9
percent; Adjusted operating margin increased 100 basis points
excluding purchase accounting amortization impact
- Xylem increases its full-year 2017 forecast for adjusted earnings
per share to $2.30 to $2.40, which reflects the expected impact of
foreign exchange translation
Company Website:
http://www.xylem.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 second quarter 2017 net income of $99 million, or $0.55 per
share. The Company delivered adjusted net income of $106 million or
$0.59 per share in the quarter, a 23-percent increase over the prior
year period, excluding the impact of restructuring, realignment and
Sensus acquisition-related charges, and other items. Revenue in the
second quarter, including the contribution from Xylem’s Sensus business,
was $1.2 billion, up 25 percent year-over-year. Xylem’s pro forma
organic revenue, which includes Sensus, grew more than one percent in
the quarter. This includes a two-percent year-over-year increase in the
Sensus business as well as one-percent organic growth in the base Xylem
business. Reported operating margin in the quarter increased 20 basis
points to 11.9 percent, and adjusted operating margin was 13.3 percent.
Excluding the negative impact of purchase accounting amortization
related to the Sensus acquisition, the adjusted operating margin
expanded by 100 basis points year-over-year.
“Our businesses performed well in the second quarter and are
capitalizing on strong order activity that we expect to generate
improved growth,” said Patrick Decker, President and Chief Executive
Officer of Xylem. “In the second quarter, we turned in an eight-percent
increase in orders with double-digit growth in treatment orders, a
strong harbinger for continued strength in the water utility sector. We
are pleased with the growth momentum that continues in Sensus as well as
the progress we’re making in further integrating the business. The team
delivered a signature project win in the electric and gas space in the
quarter, which represents one of Sensus’ largest communication system
deployments to date in the U.S., and includes the installation of the
network as well as electric and gas smart meters.”
“Looking ahead, we have solid plans and are operating in improving end
markets, which reinforce our confidence in our ability to deliver solid
growth and margin expansion in line with our improved guidance for the
full year.”
Full-year 2017 Outlook
Xylem now forecasts full-year 2017 revenue in the range of $4.65 billion
to $4.70 billion, up 24 to 25 percent, including growth from previously
announced acquisitions and projected impacts of foreign exchange
translation. On a pro forma organic basis, Xylem projects revenue growth
of three to four percent. On an organic basis, which excludes the impact
of acquisitions and the impact of foreign exchange translation, Xylem’s
revenue growth is now anticipated to be in the range of two to three
percent.
Full-year 2017 adjusted operating margin is expected to be in the range
of 13.2 to 13.7 percent. The Company increased its forecast for
full-year earnings to reflect its updated assumption for foreign
exchange impact. The Company now expects to deliver adjusted earnings
per share of $2.30 to $2.40. This represents an increase of 13 to 18
percent from Xylem’s 2016 adjusted results. The Company’s adjusted
earnings outlook excludes projected integration, restructuring and
realignment costs, which now are forecast to be approximately $40
million for the year. Excluding revenue, Xylem provides guidance only on
a non-GAAP basis due to the inherent difficulty in forecasting certain
amounts that would be included in GAAP earnings, such as discrete tax
items, without unreasonable effort.
Second Quarter Segment Results
As previously announced, Xylem combined its Analytics, Sensus and
Visenti businesses effective second quarter 2017. As a result of this
change, the Company now reports the financial and operational results
from these businesses as one segment currently referred to as Sensus &
Analytics. Xylem’s Water Infrastructure segment no longer includes the
results of the Analytics business. The Applied Water segment remains
unchanged.
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of
businesses serving clean water delivery, wastewater transport and
treatment, and dewatering.
-
Second quarter 2017 revenue was $482 million, up one percent
organically compared with the second quarter 2016. Strong industrial
sector growth was fueled by dewatering demand in the construction
industry as well as improved conditions in mining and oil and gas.
This strength was partially offset by a decline in the public utility
end market, where the Company faced a challenging comparison to the
15-percent growth generated in the year ago period, which benefited
from the timing of large project deliveries. Growth in Emerging
Markets continued to improve, up 11 percent in the quarter.
-
Second quarter reported operating income for the segment was $74
million. Adjusted operating income for the segment, which excludes $5
million of restructuring and realignment costs, was $79 million, a
10-percent increase over the same period in 2016. Reported operating
margin for the Water Infrastructure segment was 15.4 percent,
reflecting a 180-basis-point increase year-over-year. Adjusted
operating margin increased 150 basis points to 16.4 percent due to
benefits from global procurement and continuous improvement
initiatives as well as operating leverage on volume growth, which was
partially offset by cost inflation.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of businesses in
residential and commercial building services, and industrial
applications.
-
Second quarter 2017 Applied Water revenue was $361 million, reflecting
one-percent growth year-over-year on an organic basis. The U.S.
residential and the commercial end markets continue to show strength,
which was partially offset by softness in agriculture.
-
Second quarter reported operating income for the segment was $49
million, a four-percent decrease versus the prior year. Adjusted
operating income, which excludes $5 million of restructuring and
realignment charges, was flat year-over-year at $54 million. Applied
Water segment reported operating margin was 13.6 percent, down 30
basis points over the prior year period. Adjusted operating margin
increased 20 basis points to 15 percent as cost reductions and
productivity initiatives more than offset inflation.
Sensus & Analytics
Xylem’s Sensus & Analytics segment consists of its portfolio of
businesses in smart metering, network technologies, advanced data
analytics and analytic instrumentation.
-
Second quarter 2017 Sensus & Analytics segment revenue was $321
million, up two percent on a pro forma organic basis over the prior
year period. The Sensus business delivered growth across most
applications, and its results compare with a particularly strong
quarter in the year-ago period, which benefited from a new product
launch and channel stocking.
-
The segment delivered operating income of $29 million, including $5
million of restructuring and acquisition-related costs. Excluding
those costs, adjusted operating income for the segment was $34
million, with an adjusted operating margin of 10.6 percent. Adjusted
operating margin increased 210 basis points primarily due to the
addition of higher operating margins from Sensus. Cost reductions
offset inflation and higher investments for growth. Adjusted operating
margin was 13.1 percent, excluding the impact of Sensus purchase
accounting.
Supplemental information on Xylem’s second quarter 2017 earnings and
reconciliations for certain non-GAAP items is posted at
investors.xyleminc.com. In addition, Sensus historical financial results
for 2016 are also posted at investors.xyleminc.com.
About Xylem
Xylem (XYL) is a leading global water technology company committed to
developing innovative technology solutions to the world’s water
challenges. The Company’s products and services move, treat, analyze,
monitor and return water to the environment in public utility,
industrial, residential and commercial building services settings. With
its October 2016 acquisition of Sensus, Xylem added smart metering,
network technologies and advanced data analytics for water, gas and
electric utilities to its portfolio of solutions. The combined Company’s
nearly 16,000 employees bring broad applications expertise with a strong
focus on identifying comprehensive, sustainable solutions. Headquartered
in Rye Brook, New York with 2016 revenue of $3.8 billion, Xylem does
business in more than 150 countries through a number of market-leading
product brands.
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.xylem.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 successfully
identify, complete and integrate acquisitions, including the integration
of Sensus; 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, 2016, and those described from time to
time in subsequent reports filed with the Securities and Exchange
Commission. 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
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)
(in millions, except per share data)
|
|
|
|
| |
| |
|
|
|
| Three Months | | Six Months |
For the period ended June 30, |
|
|
| 2017 |
|
2016
| | 2017 |
|
2016
|
Revenue
| | | | $ | 1,164 | | |
$
|
932
| | | $ | 2,235 | | |
$
|
1,779
|
Cost of revenue
| | | | 705 |
| |
563
|
| | 1,364 |
| |
1,081
|
Gross profit
| | | | 459 | | |
369
| | | 871 | | |
698
|
Selling, general and administrative expenses
| | | | 270 | | |
227
| | | 542 | | |
446
|
Research and development expenses
| | | | 44 | | |
27
| | | 86 | | |
52
|
Restructuring and asset impairment charges, net
| | | | 6 |
| |
6
|
| | 18 |
| |
12
|
Operating income
| | | | 139 | | |
109
| | | 225 | | |
188
|
Interest expense
| | | | 21 | | |
20
| | | 41 | | |
34
|
Other non-operating income, net
| | | | 3 | | |
1
| | | 2 | | |
1
|
Gain from sale of business
| | | | — |
| |
—
|
| | 5 |
| |
—
|
Income before taxes
| | | | 121 | | |
90
| | | 191 | | |
155
|
Income tax expense
| | | | 21 |
|
|
19
|
|
| 35 |
|
|
18
|
Net income
| | | | 100 | | |
71
| | | 156 | | |
137
|
Less: Net income attributable to non-controlling interests
| | | | 1 |
|
| — |
|
| 1 |
|
| — |
Net income attributable to Xylem
| | | | $ | 99 |
| |
$
|
71
|
| | $ | 155 |
| |
$
|
137
|
Earnings per share:
| | | | | | | | | | |
Basic
| | | | $ | 0.55 | | |
$
|
0.39
| | | $ | 0.87 | | |
$
|
0.77
|
Diluted
| | | | $ | 0.55 | | |
$
|
0.39
| | | $ | 0.86 | | |
$
|
0.76
|
Weighted average number of shares:
| | | | | | | | | | |
Basic
| | | | 179.6 | | |
179.1
| | | 179.6 | | |
178.8
|
Diluted
| | | | 180.6 | | |
179.9
| | | 180.6 | | |
179.6
|
Dividends declared per share
| | | | $ | 0.1800 | | |
$
|
0.1549
| | | $ | 0.3600 | | |
$
|
0.3098
|
| | | | | | | | | | | | | | | | |
|
|
XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except per share amounts)
|
|
|
|
| |
| |
|
|
|
| June 30, 2017 | |
December 31, 2016
|
| | | | | |
|
ASSETS | | | | | | |
Current assets:
| | | | | | |
Cash and cash equivalents
| | | | $ | 288 | | |
$
|
308
| |
Receivables, less allowances for discounts and doubtful accounts of
$28 and $30 in 2017 and 2016, respectively
| | | | 944 | | |
843
| |
Inventories
| | | | 554 | | |
522
| |
Prepaid and other current assets
| | | | 175 |
| |
166
|
|
Total current assets
| | | | 1,961 | | |
1,839
| |
Property, plant and equipment, net
| | | | 627 | | |
616
| |
Goodwill
| | | | 2,717 | | |
2,632
| |
Other intangible assets, net
| | | | 1,184 | | |
1,201
| |
Other non-current assets
| | | | 218 |
| |
186
|
|
Total assets | | | | $ | 6,707 |
| |
$
|
6,474
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Current liabilities:
| | | | | | |
Accounts payable
| | | | $ | 442 | | |
$
|
457
| |
Accrued and other current liabilities
| | | | 515 | | |
521
| |
Short-term borrowings and current maturities of long-term debt
| | | | 243 |
| |
260
|
|
Total current liabilities
| | | | 1,200 | | |
1,238
| |
Long-term debt
| | | | 2,168 | | |
2,108
| |
Accrued postretirement benefits
| | | | 427 | | |
408
| |
Deferred income tax liabilities
| | | | 329 | | |
352
| |
Other non-current accrued liabilities
| | | | 201 |
| |
161
|
|
Total liabilities | | | | 4,325 |
| |
4,267
|
|
| | | | | |
|
Stockholders’ equity:
| | | | | | |
Common Stock – par value $0.01 per share:
| | | | | | |
Authorized 750.0 shares, issued 191.9 shares and 191.4 shares in
2017 and 2016, respectively
| | | | 2 | | |
2
| |
Capital in excess of par value
| | | | 1,894 | | |
1,876
| |
Retained earnings
| | | | 1,117 | | |
1,033
| |
Treasury stock – at cost 12.4 shares and 11.9 shares in 2017 and
2016, respectively
| | | | (428 | ) | |
(403
|
)
|
Accumulated other comprehensive loss
| | | | (220 | ) | |
(318
|
)
|
Total stockholders’ equity | | | | 2,365 |
| |
2,190
|
|
Non-controlling interests
| | | | 17 | | |
17
| |
Total equity | | | | 2,382 |
| |
2,207
|
|
Total liabilities and stockholders’ equity | | | | $ | 6,707 |
| |
$
|
6,474
|
|
| | | | | | | | | |
|
|
XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
|
|
|
|
| |
| |
For the six months ended June 30, |
|
|
| 2017 | |
2016
|
Operating Activities | | | | | | |
Net income
| | | | $ | 156 | | |
$
|
137
| |
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | | | |
Depreciation
| | | | 55 | | |
41
| |
Amortization
| | | | 61 | | |
24
| |
Share-based compensation
| | | | 11 | | |
10
| |
Restructuring and asset impairment charges
| | | | 18 | | |
12
| |
Gain from sale of business
| | | | (5 | ) | |
—
| |
Other, net
| | | | 4 | | |
8
| |
Payments for restructuring
| | | | (17 | ) | |
(6
|
)
|
Changes in assets and liabilities (net of acquisitions):
| | | | | | |
Changes in receivables
| | | | (70 | ) | |
(19
|
)
|
Changes in inventories
| | | | (13 | ) | |
(39
|
)
|
Changes in accounts payable
| | | | (19 | ) | |
9
| |
Other, net
| | | | (30 | ) | |
(52
|
)
|
Net Cash – Operating activities | | | | 151 |
| |
125
|
|
Investing Activities | | | | | | |
Capital expenditures
| | | | (77 | ) | |
(62
|
)
|
Acquisition of business, net of cash acquired
| | | | (6 | ) | |
(70
|
)
|
Proceeds from sale of business
| | | | 11 | | |
—
| |
Other, net
| | | | 3 |
| |
5
|
|
Net Cash – Investing activities | | | | (69 | ) | |
(127
|
)
|
Financing Activities | | | | | | |
Short-term debt issued
| | | | 33 | | |
89
| |
Short-term debt repaid
| | | | (65 | ) | |
(77
|
)
|
Long-term debt issued
| | | | — | | |
540
| |
Long-term debt repaid
| | | | — | | |
(608
|
)
|
Repurchase of common stock
| | | | (25 | ) | |
(3
|
)
|
Proceeds from exercise of employee stock options
| | | | 7 | | |
16
| |
Dividends paid
| | | | (65 | ) | |
(56
|
)
|
Other, net
| | | | — |
| |
1
|
|
Net Cash – Financing activities | | | | (115 | ) | |
(98
|
)
|
Effect of exchange rate changes on cash | | | | 13 |
| |
6
|
|
Net change in cash and cash equivalents
| | | | (20 | ) | |
(94
|
)
|
Cash and cash equivalents at beginning of year
| | | | 308 |
| |
680
|
|
Cash and cash equivalents at end of period | | | | $ | 288 |
| |
$
|
586
|
|
Supplemental disclosure of cash flow information: | | | | | | |
Cash paid during the period for:
| | | | | | |
Interest
| | | | $ | 46 | | |
$
|
34
| |
Income taxes (net of refunds received)
| | | | $ | 47 | | |
$
|
49
| |
| | | | | | | | | |
|
|
Xylem Inc. Non-GAAP Measures
|
|
|
Management reviews key performance indicators including revenue,
gross margins, segment operating income and margins, orders
growth, working capital and backlog, among others. In addition, we
consider certain non-GAAP (or "adjusted") measures to be useful to
management and investors evaluating our operating performance for
the periods presented, and to 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,
including but not limited to, dividends, acquisitions, share
repurchases and debt repayment. Excluding revenue, Xylem provides
guidance only on a non-GAAP basis due to the inherent difficulty
in forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax items, without unreasonable effort.
These adjusted metrics are consistent with how management views
our business and are used to make financial, operating and
planning decisions. 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 operating activities 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
fluctuations in foreign currency translation and contributions from
acquisitions and divestitures. Divestitures include sales of
insignificant portions of our business that did not meet the
criteria for classification as a discontinued operation. The
period-over-period change resulting from foreign currency
translation impacts is determined by translating current period and
prior period activity using the same currency conversion rate.
|
|
“Constant currency” defined as financial results adjusted for
foreign 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
restructuring and realignment costs, Sensus acquisition related
costs, gain from sale of business and special charges. For Sensus
historical adjustments, see Sensus Historical - Adjusted EBITDA
table.
|
|
"Adjusted Operating Income", "Adjusted Segment Operating Income",
"Adjusted Net Income" and “Adjusted EPS” defined as
operating income, segment operating income, adjusted net income and
earnings per share, adjusted to exclude restructuring and
realignment costs, Sensus acquisition related costs, gain from sale
of business, special charges and tax-related special items, as
applicable. For Sensus historical adjustments, see Sensus Historical
- Adjusted Operating Income table.
|
|
“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
flow does not consider certain non-discretionary cash payments, such
as debt.
|
|
“Realignment costs” defined as costs not included in
restructuring costs that are incurred as part of actions taken to
reposition our business, including items such as professional fees,
severance, relocation, travel, facility set-up and other costs.
|
|
“Sensus Acquisition Related Costs" defined as costs
incurred by the Company associated with the acquisition of Sensus
that are being reported within operating income. These costs
include integration costs and costs related to the recognition of
the backlog intangible asset recorded in purchase accounting.
|
|
“Special charges" defined as costs incurred by the
Company, such as non-cash impairment charges, initial acquisition
costs not related to Sensus and other special non-operating items,
as well as interest expense related to the early extinguishment of
debt during Q2 2016.
|
|
“Tax-related special items" defined as tax items, such
as tax return versus tax provision adjustments, tax exam impacts,
tax law change impacts, significant reserves for cash
repatriation, excess tax benefits/losses and other discrete tax
adjustments.
|
|
"Pro forma" defined as including the results of
Sensus for the calendar period prior to the acquisition of Sensus
by Xylem Inc. on October 31, 2016.
|
|
| |
| |
| | | |
| |
Xylem Inc. Non-GAAP Reconciliation
|
Reported vs. Organic & Constant Currency Orders
|
($ Millions)
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
| | | | (As Reported - GAAP) | | (As Adjusted - Organic) | | Constant Currency |
| | | | |
|
(A)
|
|
(B)
|
| | |
(C)
| |
(D)
|
|
(E) = B+C+D
|
|
(F) = E/A
| |
(G) = (E - C) / A
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | |
| |
| |
| | | |
| |
| | |
| | | |
Orders
| |
Orders
| |
Change
2017 v. 2016
| |
% Change
2017 v. 2016
| |
Acquisitions / Divestitures
| |
FX Impact
| |
Change
Adj. 2017 v. 2016
| |
% Change
Adj. 2017 v. 2016
| | |
| | | |
2017
| |
2016
| | | | | | | | | | | | | | |
Six Months Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
2,349
| |
1,811
| |
538
| |
30%
| |
(465)
| |
26
| |
99
| |
5%
| |
31%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
988
| |
944
| |
44
| |
5%
| |
-
| |
16
| |
60
| |
6%
| |
6%
|
Applied Water
| | | |
729
| |
715
| |
14
| |
2%
| |
3
| |
10
| |
27
| |
4%
| |
3%
|
Sensus & Analytics
| | | |
632
| |
152
| |
480
| |
316%
| |
(468)
| |
-
| |
12
| |
8%
| |
316%
|
| | | | | | | | | | | | | | | | | | | |
|
Quarter Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
1,212
| |
923
| |
289
| |
31%
| |
(228)
| |
14
| |
75
| |
8%
| |
33%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
521
| |
483
| |
38
| |
8%
| |
-
| |
9
| |
47
| |
10%
| |
10%
|
Applied Water
| | | |
375
| |
361
| |
14
| |
4%
| |
2
| |
5
| |
21
| |
6%
| |
5%
|
Sensus & Analytics
| | | |
316
| |
79
| |
237
| |
300%
| |
(230)
| |
-
| |
7
| |
9%
| |
300%
|
| | | | | | | | | | | | | | | | | | | |
|
Quarter Ended March 31 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
1,137
| |
888
| |
249
| |
28%
| |
(237)
| |
12
| |
24
| |
3%
| |
29%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
467
| |
461
| |
6
| |
1%
| |
-
| |
7
| |
13
| |
3%
| |
3%
|
Applied Water
| | | |
354
| |
354
| |
-
| |
0%
| |
1
| |
5
| |
6
| |
2%
| |
1%
|
Sensus & Analytics
| | | |
316
| |
73
| |
243
| |
333%
| |
(238)
| |
-
| |
5
| |
7%
| |
333%
|
| | | | | | | | | | | | | | | | | | | |
|
|
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
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | |
| |
| |
| | | |
| |
| | |
| | | |
Revenue
| |
Revenue
| |
Change
2017 v. 2016
| |
% Change
2017 v. 2016
| |
Acquisitions / Divestitures
| |
FX Impact
| |
Change Adj. 2017 v. 2016
| |
% Change
Adj. 2017 v. 2016
| | |
| | | |
2017
| |
2016
| | | | | | | | | | | | | | |
Six Months Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
2,235
| |
1,779
| |
456
| |
26%
| |
(478)
| |
25
| |
3
| |
0%
| |
27%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
901
| |
924
| |
(23)
| |
-2%
| |
-
| |
15
| |
(8)
| |
-1%
| |
-1%
|
Applied Water
| | | |
694
| |
699
| |
(5)
| |
-1%
| |
3
| |
10
| |
8
| |
1%
| |
1%
|
Sensus & Analytics
| | | |
640
| |
156
| |
484
| |
310%
| |
(481)
| |
-
| |
3
| |
2%
| |
310%
|
| | | | | | | | | | | | | | | | | | | |
|
Quarter Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
1,164
| |
932
| |
232
| |
25%
| |
(236)
| |
14
| |
10
| |
1%
| |
26%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
482
| |
484
| |
(2)
| |
0%
| |
-
| |
9
| |
7
| |
1%
| |
1%
|
Applied Water
| | | |
361
| |
366
| |
(5)
| |
-1%
| |
2
| |
5
| |
2
| |
1%
| |
0%
|
Sensus & Analytics
| | | |
321
| |
82
| |
239
| |
291%
| |
(238)
| |
-
| |
1
| |
1%
| |
291%
|
| | | | | | | | | | | | | | | | | | | |
|
Quarter Ended March 31 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
1,071
| |
847
| |
224
| |
26%
| |
(242)
| |
11
| |
(7)
| |
-1%
| |
28%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
419
| |
440
| |
(21)
| |
-5%
| |
-
| |
6
| |
(15)
| |
-3%
| |
-3%
|
Applied Water
| | | |
333
| |
333
| |
-
| |
0%
| |
1
| |
5
| |
6
| |
2%
| |
2%
|
Sensus & Analytics
| | | |
319
| |
74
| |
245
| |
331%
| |
(243)
| |
-
| |
2
| |
3%
| |
331%
|
| | | | | | | | | | | | | | | | | | | |
|
|
Xylem Inc. Non-GAAP Reconciliation - Pro forma with Sensus |
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
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | |
| |
| |
| | | |
| |
| | |
| | | |
Revenue
| |
Revenue
| |
Change
2017 v. 2016
| |
% Change
2017 v. 2016
| |
Acquisitions / Divestitures
| |
FX Impact
| |
Change
Adj. 2017 v. 2016
| |
% Change
Adj. 2017 v. 2016
| | |
| | | |
2017
| |
2016 (a)
| | | | | | | | | | | | | | |
Six Months Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
2,235
| |
2,244
| |
(9)
| |
0%
| |
1
| |
34
| |
26
| |
1%
| |
1%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
901
| |
924
| |
(23)
| |
-2%
| |
-
| |
15
| |
(8)
| |
-1%
| |
-1%
|
Applied Water
| | | |
694
| |
699
| |
(5)
| |
-1%
| |
3
| |
10
| |
8
| |
1%
| |
1%
|
Sensus & Analytics
| | | |
640
| |
621
| |
19
| |
3%
| |
(2)
| |
9
| |
26
| |
4%
| |
5%
|
| | | | | | | | | | | | | | | | | | | |
|
Quarter Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
1,164
| |
1,169
| |
(5)
| |
0%
| |
2
| |
19
| |
16
| |
1%
| |
1%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
482
| |
484
| |
(2)
| |
0%
| |
-
| |
9
| |
7
| |
1%
| |
1%
|
Applied Water
| | | |
361
| |
366
| |
(5)
| |
-1%
| |
2
| |
5
| |
2
| |
1%
| |
0%
|
Sensus & Analytics
| | | |
321
| |
319
| |
2
| |
1%
| |
-
| |
5
| |
7
| |
2%
| |
2%
|
| | | | | | | | | | | | | | | | | | | |
|
Quarter Ended March 31 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Xylem Inc. | | | |
1,071
| |
1,075
| |
(4)
| |
0%
| |
(1)
| |
15
| |
10
| |
1%
| |
1%
|
| | | | | | | | | | | | | | | | | | | |
|
Water Infrastructure
| | | |
419
| |
440
| |
(21)
| |
-5%
| |
-
| |
6
| |
(15)
| |
-3%
| |
-3%
|
Applied Water
| | | |
333
| |
333
| |
-
| |
0%
| |
1
| |
5
| |
6
| |
2%
| |
2%
|
Sensus & Analytics
| | | |
319
| |
302
| |
17
| |
6%
| |
(2)
| |
4
| |
19
| |
6%
| |
7%
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
(a) Includes Sensus and Visenti revenue for the six months ended
June 30, 2016, which was prior to Xylem acquiring the businesses.
|
|
|
Xylem Inc. Non-GAAP Reconciliation
|
Adjusted Operating Income
|
($ Millions)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | Q1 | | | Q2 | | | YTD |
| | | | | 2017 |
| 2016 | | | 2017 |
| 2016 | | | 2017 |
| 2016 |
|
Total Revenue
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
1,071
| |
847
| | |
1,164
| |
932
| | |
2,235
| |
1,779
|
|
• Water Infrastructure
| | | |
419
| |
440
| | |
482
| |
484
|
| |
901
| |
924
|
|
• Applied Water
| | | |
333
| |
333
| | |
361
| |
366
|
| |
694
| |
699
|
|
• Sensus & Analytics
| | | |
319
| |
74
| | |
321
| |
82
| | |
640
| |
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
86
| |
79
| | |
139
| |
109
| | |
225
| |
188
|
|
• Water Infrastructure
| | | |
40
| |
51
| | |
74
| |
66
|
| |
114
| |
117
|
|
• Applied Water
| | | |
36
| |
39
| | |
49
| |
51
|
| |
85
| |
90
|
|
• Sensus & Analytics
| | | |
25
| |
3
| | |
29
| |
4
| | |
54
| |
7
|
|
• Total Segments
| | | |
101
| |
93
| | |
152
| |
121
| | |
253
| |
214
|
| | | | | | | | | | | | | | | | |
|
|
Operating Margin
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
8.0%
| |
9.3%
| | |
11.9%
| |
11.7%
| | |
10.1%
| |
10.6%
|
|
• Water Infrastructure
| | | |
9.5%
| |
11.6%
| | |
15.4%
| |
13.6%
| | |
12.7%
| |
12.7%
|
|
• Applied Water
| | | |
10.8%
| |
11.7%
| | |
13.6%
| |
13.9%
| | |
12.2%
| |
12.9%
|
|
• Sensus & Analytics
| | | |
7.8%
| |
4.1%
| | |
9.0%
| |
4.9%
| | |
8.4%
| |
4.5%
|
|
• Total Segments
|
|
|
|
9.4%
|
|
11.0%
|
|
|
13.1%
|
|
13.0%
|
|
|
11.3%
|
|
12.0%
|
| | | | | | | | | | | | | | | | |
|
|
Sensus Acquisition Related Costs
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
10
| |
-
| | |
4
| |
-
| | |
14
| |
-
|
|
• Water Infrastructure
| | | |
-
| |
-
| | |
-
| |
-
| | |
-
| |
-
|
|
• Applied Water
| | | |
-
| |
-
| | |
-
| |
-
| | |
-
| |
-
|
|
• Sensus & Analytics
| | | |
6
| |
-
| | |
3
| |
-
| | |
9
| |
-
|
|
• Total Segments
| | | |
6
| |
-
| | |
3
| |
-
| | |
9
| |
-
|
| | | | | | | | | | | | | | | | |
|
|
Special Charges
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
5
| |
4
| | |
-
| |
1
| | |
5
| |
5
|
|
• Water Infrastructure
| | | |
-
| |
2
| | |
-
| |
-
| | |
-
| |
2
|
|
• Applied Water
| | | |
5
| |
-
| | |
-
| |
-
| | |
5
| |
-
|
|
• Sensus & Analytics
| | | |
-
| |
2
| | |
-
| |
1
| | |
-
| |
3
|
|
• Total Segments
| | | |
5
| |
4
| | |
-
| |
1
| | |
5
| |
5
|
| | | | | | | | | | | | | | | | |
|
|
Restructuring & Realignment Costs
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
11
| |
9
| | |
12
| |
11
| | |
23
| |
20
|
|
• Water Infrastructure
| | | |
4
| |
3
| | |
5
| |
6
| | |
9
| |
9
|
|
• Applied Water
| | | |
4
| |
3
| | |
5
| |
3
| | |
9
| |
6
|
|
• Sensus & Analytics
| | | |
3
| |
1
| | |
2
| |
2
| | |
5
| |
3
|
|
• Total Segments
| | | |
11
| |
7
| | |
12
| |
11
| | |
23
| |
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
112
| |
92
| | |
155
| |
121
| | |
267
| |
213
|
|
• Water Infrastructure
| | | |
44
| |
56
| | |
79
| |
72
|
| |
123
| |
128
|
|
• Applied Water
| | | |
45
| |
42
| | |
54
| |
54
|
| |
99
| |
96
|
|
• Sensus & Analytics
| | | |
34
| |
6
| | |
34
| |
7
|
| |
68
| |
13
|
|
• Total Segments
| | | |
123
| |
104
| | |
167
| |
133
| | |
290
| |
237
|
| | | | | | | | | | | | | | | | |
|
|
Adjusted Operating Margin
| | | | | | | | | | | | | | | | |
|
• Total Xylem
| | | |
10.5%
| |
10.9%
| | |
13.3%
| |
13.0%
| | |
11.9%
| |
12.0%
|
|
• Water Infrastructure
| | | |
10.5%
| |
12.7%
| | |
16.4%
| |
14.9%
| | |
13.7%
| |
13.9%
|
|
• Applied Water
| | | |
13.5%
| |
12.6%
| | |
15.0%
| |
14.8%
| | |
14.3%
| |
13.7%
|
|
• Sensus & Analytics
| | | |
10.7%
| |
8.1%
| | |
10.6%
| |
8.5%
| | |
10.6%
| |
8.3%
|
|
• Total Segments
|
|
|
|
11.5%
|
|
12.3%
|
|
|
14.3%
|
|
14.3%
|
|
|
13.0%
|
|
13.3%
|
| | | | | | | | | | | | | | | | |
|
|
Xylem Inc. Non-GAAP Reconciliation
|
Adjusted Diluted EPS
|
($ Millions, except per share amounts)
|
| |
|
|
| |
| | | |
| |
| | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | |
| |
|
| | | | | Q2 2017 | | Q2 2016 |
| | | | | As Reported | | Adjustments | | Adjusted | | As Reported | | Adjustments | | Adjusted |
|
Total Revenue
| | | | |
1,164
| | | | | |
1,164
| | | |
932
| | | | | |
932
| |
|
Operating Income
| | | | |
139
| | | |
16
| |
a
| |
155
| | | |
109
| | | |
12
| |
a
| |
121
| |
|
Operating Margin
| | | | | 11.9 | % | | | | | 13.3 | % | | | 11.7 | % | | | | | 13.0 | % |
|
Interest Expense
| | | | |
(21
|
)
| | | | |
(21
|
)
| | |
(20
|
)
| | |
8
| |
b
| |
(12
|
)
|
|
Other Non-Operating Income (Expense)
| | | |
|
3
|
| |
| |
|
3
|
| |
|
1
|
| |
| |
|
1
|
|
|
Income before Taxes
| | | | |
121
| | | |
16
| | | |
137
| | | |
90
| | | |
20
| | | |
110
| |
|
Provision for Income Taxes
| | | | |
(21
|
)
| | |
(9
|
)
|
c
| |
(30
|
)
| | |
(19
|
)
| | |
(4
|
)
|
c
| |
(23
|
)
|
|
Minority interest
| | | |
|
(1
|
)
| |
| |
|
(1
|
)
| |
|
-
|
| |
| |
|
-
|
|
|
Net Income attributable to Xylem
| | | |
|
99
|
| |
|
7
|
| |
|
106
|
| |
|
71
|
| |
|
16
|
| |
|
87
|
|
|
Diluted Shares
|
|
|
|
|
180.6
|
|
|
|
|
|
180.6
|
|
|
|
179.9
|
|
|
|
|
|
179.9
|
|
| Diluted EPS |
|
|
| $ | 0.55 |
|
| $ | 0.04 |
|
| $ | 0.59 |
|
| $ | 0.39 |
|
| $ | 0.09 |
|
| $ | 0.48 |
|
| | | | | | | | | | | | | | |
|
|
Year-over-year currency translation impact on current year diluted
EPS
|
|
|
|
$
|
(0.02
|
)
|
|
|
|
$
|
(0.02
|
)
| | | | | | |
| Diluted EPS at Constant Currency |
|
|
| $ | 0.57 |
|
| $ | 0.04 |
|
| $ | 0.61 |
| | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | |
|
|
|
|
| |
|
|
|
|
|
| | | | | Q2 YTD 2017 | | Q2 YTD 2016 |
| | | | | As Reported | | Adjustments | | Adjusted | | As Reported | | Adjustments | | Adjusted |
|
Total Revenue
| | | | |
2,235
| | | | | |
2,235
| | | |
1,779
| | | | | |
1,779
| |
|
Operating Income
| | | | |
225
| | | |
42
| |
a
| |
267
| | | |
188
| | | |
25
| |
a
| |
213
| |
|
Operating Margin
| | | | | 10.1 | % | | | | | 11.9 | % | | | 10.6 | % | | | | | 12.0 | % |
|
Interest Expense
| | | | |
(41
|
)
| | | | |
(41
|
)
| | |
(34
|
)
| | |
8
| |
b
| |
(26
|
)
|
|
Other Non-Operating Income (Expense)
| | | | |
2
| | | | | |
2
| | | |
1
| | | | | |
1
| |
|
Gain from sale of business
| | | |
|
5
|
| |
|
(5
|
)
| |
|
-
|
| |
|
-
|
| |
| |
|
-
|
|
|
Income before Taxes
| | | | |
191
| | | |
37
| | | |
228
| | | |
155
| | | |
33
| | | |
188
| |
|
Provision for Income Taxes
| | | | |
(35
|
)
| | |
(15
|
)
|
c
| |
(50
|
)
| | |
(18
|
)
| | |
(21
|
)
|
c
| |
(39
|
)
|
|
Minority interest
| | | |
|
(1
|
)
| |
| |
|
(1
|
)
| |
| |
| |
|
|
Net Income attributable to Xylem
| | | |
|
155
|
| |
|
22
|
| |
|
177
|
| |
|
137
|
| |
|
12
|
| |
|
149
|
|
|
Diluted Shares
|
|
|
|
|
180.6
|
|
|
|
|
|
180.6
|
|
|
|
179.6
|
|
|
|
|
|
179.6
|
|
| Diluted EPS |
|
|
| $ | 0.86 |
|
| $ | 0.12 |
|
| $ | 0.98 |
|
| $ | 0.76 |
|
| $ | 0.07 |
|
| $ | 0.83 |
|
| | | | | | | | | | | | | | |
|
|
Year-over-year currency translation impact on current year diluted
EPS
|
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.03
|
)
| | | | | | |
| Diluted EPS at Constant Currency |
|
|
| $ | 0.90 |
|
| $ | 0.11 |
|
| $ | 1.01 |
| | | | | | |
| | | | | | | | | | | | | | |
|
a
|
|
Second quarter: Restructuring & realignment costs of $12 million and
$11 million in 2017 and 2016, respectively, Sensus acquisition
related costs of $4 million in 2017 and special charges of $1
million of initial acquisition costs in 2016.
|
| |
|
| |
First half: Restructuring & realignment costs of $23 million and $20
million in 2017 and 2016, respectively, Sensus acquisition related
costs of $19 million in 2017 and special charges of $5 million of
initial acquisition costs in 2016.
|
| |
|
b
| |
Special charges consisting of $8 million of costs related to the
early extinguishment of debt for the second quarter and first half
of 2016.
|
| |
|
c
| |
Second quarter: Net tax impact on restructuring & realignment
costs of $5 million and $3 million in 2017 and 2016, respectively,
net tax impact on Sensus acquisition related costs of $1 million
in 2017, net tax impact on special charges of $4 million in 2016
and tax-related special items of $3 million of expense in 2017 and
$3 million of benefit in 2016.
|
| |
First half: Net tax impact on restructuring & realignment costs of
$7 million and $5 million in 2017 and 2016, respectively, net tax
impact on Sensus acquisition related costs of $5 million in 2017,
net tax impact on special charges of $2 million and $5 million in
2017 and 2016, respectively, net tax impact of $2 million on the
gain from sale of business in 2017 and tax-related special charges
of $3 million and $11 million in 2017 and 2016, respectively.
|
| |
|
|
Xylem Inc. Non-GAAP Reconciliation
|
Net Cash - Operating Activities vs. Free Cash Flow
|
($ Millions)
|
|
|
|
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | |
|
| | | |
Q1
| |
Q2
| |
Six Months Ended
|
| | | |
2017
| |
2016
| |
2017
| |
2016
| |
2017
| |
2016
|
| | | | | | | | | | | | | |
|
Net Cash - Operating Activities | | | |
$
|
58
| | |
$
|
41
| | |
$
|
93
| | |
$
|
84
| | |
$
|
151
| | |
$
|
125
| |
| | | | | | | | | | | | | |
|
Capital Expenditures
| | | | |
(49
|
)
| | |
(37
|
)
| | |
(28
|
)
| | |
(25
|
)
| | |
(77
|
)
| | |
(62
|
)
|
| | | |
| |
| |
| |
| |
| |
|
Free Cash Flow | | | |
$
|
9
|
| |
$
|
4
|
| |
$
|
65
|
| |
$
|
59
|
| |
$
|
74
|
| |
$
|
63
|
|
| | | | | | | | | | | | | |
|
Cash paid for Sensus acquisition related costs
| | | | |
(17
|
)
| | |
-
| | | |
(5
|
)
| | |
-
| | | |
(22
|
)
| | |
-
| |
| | | |
| |
| |
| |
| |
| |
|
Free Cash Flow, excluding Sensus Acquisition Related Costs | | | |
$
|
26
|
| |
$
|
4
|
| |
$
|
70
|
| |
$
|
59
|
| |
$
|
96
|
| |
$
|
63
|
|
| | | | | | | | | | | | | |
|
Net Income
| | | | |
56
| | | |
66
| | | |
100
| | | |
71
| | | |
156
| | | |
137
| |
| | | | | | | | | | | | | |
|
Gain from sale of business
| | | | |
(5
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
(5
|
)
| | |
-
| |
| | | | | | | | | | | | | |
|
Special Charges - Non-cash impairment
| | | | |
5
| | | |
-
| | | |
-
| | | |
(8
|
)
| | |
5
| | | |
(8
|
)
|
| | | | | | | | | | | | | |
|
Sensus acquisition related costs
| | | |
|
(10
|
)
| |
|
-
|
| |
|
(4
|
)
| |
|
-
|
| |
|
(14
|
)
| |
|
-
|
|
| | | | | | | | | | | | | |
|
Net Income, excluding gain on sale of businesses, non-cash
impairment charges and Sensus Acquisition Related Costs | | | |
$
|
66
|
| |
$
|
66
|
| |
$
|
104
|
| |
$
|
79
|
| |
$
|
170
|
| |
$
|
145
|
|
| | | | | | | | | | | | | |
|
Free Cash Flow Conversion | | | |
|
39
|
%
| |
|
6
|
%
| |
|
67
|
%
| |
|
75
|
%
| |
|
56
|
%
| |
|
43
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Xylem Inc. Non-GAAP Reconciliation
|
EBITDA and Adjusted EBITDA by Quarter
|
|
|
|
| |
| |
| |
| |
| |
($ Millions)
|
| | | | | | | | | | | |
|
| | | | | | 2017 | | | | | | |
| | | |
Q1
| |
Q2
| |
Q3
| |
Q4
| |
Total
|
| | | | | | | | | | | |
|
Net Income
| | | |
56
| |
100
| | | | | |
156
|
| | | | | | | | | | | |
|
Income Tax Expense
| | | |
14
| |
21
| | | | | |
35
|
| | | | | | | | | | | |
|
Interest Expense (Income), net
| | | |
20
| |
20
| | | | | |
40
|
Depreciation
| | | |
28
| |
27
| | | | | |
55
|
Amortization
| | | |
31
| |
30
| | | | | |
61
|
Stock Compensation
| | | |
6
| |
5
| | | | | |
11
|
| | | |
| |
| |
| |
| |
|
EBITDA
| | | |
155
| |
203
| |
-
| |
-
| |
358
|
| | | | | | | | | | | |
|
Restructuring & Realignment
| | | |
11
| |
12
| | | | | |
23
|
| | | | | | | | | | | |
|
Gain on sale of business
| | | |
(5)
| |
-
| | | | | |
(5)
|
| | | | | | | | | | | |
|
Sensus Acquisition Related Costs
| | | |
7
| |
2
| | | | | |
9
|
| | | | | | | | | | | |
|
Special Charges
| | | |
5
| |
-
| | | | | |
5
|
| | | |
| |
| |
| |
| |
|
Adjusted EBITDA
| | | |
173
| |
217
| |
-
| |
-
| |
390
|
| | | | | | | | | | | |
|
Revenue
| | | |
1,071
| |
1,164
| |
| |
| |
2,235
|
| | | | | | | | | | | |
|
Adjusted EBITDA Margin
| | | |
16.2%
| |
18.6%
| |
| |
| |
17.4%
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | 2016 | | | | | | |
| | | |
Q1
| |
Q2
| |
Q3
| |
Q4
| |
Total
|
| | | | | | | | | | | |
|
Net Income
| | | |
66
| |
71
| |
73
| |
50
| |
260
|
| | | | | | | | | | | |
|
Income Tax Expense
| | | |
(1)
| |
19
| |
22
| |
40
| |
80
|
| | | | | | | | | | | |
|
Interest Expense (Income), net
| | | |
14
| |
19
| |
16
| |
19
| |
68
|
Depreciation
| | | |
20
| |
21
| |
20
| |
26
| |
87
|
Amortization
| | | |
12
| |
12
| |
12
| |
28
| |
64
|
Stock Compensation
| | | |
5
| |
5
| |
5
| |
3
| |
18
|
| | | |
| |
| |
| |
| |
|
EBITDA
| | | |
116
| |
147
| |
148
| |
166
| |
577
|
| | | | | | | | | | | |
|
Restructuring & Realignment
| | | |
9
| |
11
| |
12
| |
15
| |
47
|
| | | | | | | | | | | |
|
Sensus Acquisition Related Costs
| | | |
-
| |
-
| |
10
| |
36
| |
46
|
| | | | | | | | | | | |
|
Special Charges
| | | |
4
| |
1
| |
-
| |
-
| |
5
|
| | | |
| |
| |
| |
| |
|
Adjusted EBITDA
| | | |
129
| |
159
| |
170
| |
217
| |
675
|
| | | | | | | | | | | |
|
Revenue
| | | |
847
| |
932
| |
897
| |
1,095
| |
3,771
|
| | | | | | | | | | | |
|
Adjusted EBITDA Margin
| | | |
15.2%
| |
17.1%
| |
19.0%
| |
19.8%
| |
17.9%
|
| | | | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170801005856/en/
Contacts:
Xylem Inc.
Media
Kelly McAndrew, +1-914-323-5969
Kelly.McAndrew@xyleminc.com
or
Investors
Matt
Latino, +1-914-323-5821
Matthew.Latino@xyleminc.com
Source: Xylem Inc.
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