Call scheduled for Tuesday, May 15, 2018 at 8:00 a.m. Eastern Time
MILWAUKEE--(BUSINESS WIRE)--May 14, 2018--
Rexnord Corporation (NYSE:RXN):
Fourth Quarter Highlights
-
Net sales were $575 million and up 14% year over year (+7% core sales(1),
+4% acquisitions, +3% foreign currency translation).
-
Net loss(2) was $68 million, including a $111 million
goodwill impairment charge related to the anticipated divestiture of
our VAG operations, (diluted loss per share of $0.65), compared with
net income of $22 million (diluted EPS of $0.21) in the year-ago
quarter.
-
Adjusted EPS(1) was $0.42, compared with $0.35 in the
year-ago quarter.
-
Adjusted EBITDA(1) was $111 million (19.3% of net sales),
compared with $98 million (19.5% of sales) in last year's fourth
quarter.
-
Completed the Centa Power Transmission acquisition in our Process &
Motion Control platform.
Fiscal 2018 Highlights
-
Net sales were $2.066 billion for fiscal 2018 and up 8% year over year
(+5% core sales, +2% acquisitions, +2% foreign currency translation,
-1% impact from the Rodney Hunt Fontaine (“RHF”) product line exit).
-
Net income(2) was $53 million (diluted EPS of $0.50),
compared with $67 million (diluted EPS of $0.64) in the prior year.
-
Adjusted EPS(1) was $1.39, compared with $1.32 in the prior
year.
-
Adjusted EBITDA(1) of $390 million (18.9% of net sales),
compared with $347 million (18.1% of net sales) in the prior year.
-
Free cash flow(1) was $188 million.
-
Net debt leverage of 2.7x at March 31, 2018.
Todd A. Adams, President and Chief Executive Officer, commented, “Our
fourth-quarter results were slightly ahead of our expectations and
punctuated the important progress we made during the year with our
strategic initiatives around product innovation, core growth, and
structural cost reductions. Our operating cash flow has accelerated as
we expected, and our financial leverage has continued to decline. We
successfully completed our first round of Supply Chain Optimization and
Footprint Repositioning (“SCOFR”) initiatives in fiscal 2018 and have
launched the next wave of SCOFR actions that we estimate will deliver
approximately $15 million of annualized structural cost reduction once
completed in our fiscal 2020. Looking into our fiscal 2019, we see a
favorable demand environment and expect ongoing contributions from our
commercial and operational excellence initiatives. We believe that we
are well positioned to continue to drive solid growth, improved
profitability and higher levels of free cash flow given the trajectory
of our organic growth initiatives along with our relentless focus on
operational excellence. We have a high degree of confidence in our
ability to favorably manage in an inflationary environment, underpinned
by the competitive advantages of our business model and deployment of
the Rexnord Business System.
“Our Process & Motion Control platform delivered another quarter of six
percent core revenue growth and margin expansion. We continue to
experience growing demand from OEMs and end users, and have seen
improved activity in our domestic industrial distribution channels. The
integration of Centa Power Transmission is well under way, and the
deployment of RBS reinforces our confidence that we can capture the
significant opportunities that Centa presents for margin expansion and
value creation. As we look forward, we expect fiscal 2019 to mark
significant progress with our digital enterprise strategy as we leverage
our DiRXN (pronounced “Direction”) digital customer productivity
platform and broaden our offering of digitally-connected products.”
"In our Water Management platform, core growth accelerated to eight
percent as Zurn gained momentum and VAG also delivered high-single-digit
core growth in its water and wastewater infrastructure markets. Going
forward, we plan to focus and build our Water Management platform around
our Zurn specification-grade commercial plumbing products and anticipate
divesting our non-strategic VAG operations that serve global water and
wastewater infrastructure end markets. In our fiscal 2018, Zurn
delivered revenue of $610 million with 4% core growth and an adjusted
EBITDA margin at 25%. Looking into our fiscal 2019, we expect our
RBS-driven innovation, market expansion, and productivity initiatives to
generate year-over-year margin expansion and above-market core growth in
our Water Management platform.”
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(1)
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Refer to "Non-GAAP Measures" for a definition of this non-GAAP
metric, as well as the accompanying reconciliations to GAAP.
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(2)
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Net Income reflects net income attributable to Rexnord common
stockholders.
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Fiscal 2019 Outlook
Adams continued, “Our initial outlook for fiscal 2019 is based on our
assumption of mid-single-digit core growth for the full year. We expect
to fully offset materials cost inflation while we deliver incremental
savings from our structural cost reduction programs and solid operating
leverage on our sales growth, partially offset by investments to
accelerate our innovation and growth. We expect our GAAP net income(2)
to be in a range of $129 million to $143 million, our Adjusted EBITDA(1)
to be in a range of $420 million to $440 million, and our free
cash flow(1) to exceed net income. Please note that our
fiscal 2019 outlook excludes VAG as we anticipate reporting VAG within
Discontinued Operations beginning with our first quarter of fiscal 2019.”
Fourth Quarter Fiscal 2018 Segment Highlights
Process & Motion Control
Process & Motion Control ("PMC") net sales increased 15% year over year
to $361 million in the fourth quarter of fiscal 2018 as core sales
increased 6% year over year, the acquisition of Centa contributed 5% to
growth and foreign currency translation added 4%. The increase in core
sales is the result of favorable demand trends across the majority of
PMC's served end markets.
PMC income from operations for the fourth quarter of fiscal 2018 was $61
million or 16.9% of net sales. Income from operations as a percentage of
net sales increased year over year by 300 basis points primarily due to
the core sales increase, RBS-led productivity gains and benefits from
footprint repositioning actions and lower restructuring-related expenses
year over year, partially offset by higher incentive compensation
accruals and incremental investments in our innovation and market
expansion initiatives.
PMC Adjusted EBITDA(1) in the fourth quarter was $86 million
and Adjusted EBITDA as a percentage of sales increased by 150 basis
points year over year to 23.8%.
Water Management
Water Management net sales increased by 13% year over year to $215
million in the fourth quarter of fiscal 2018. Core net sales increased
8% year over year, excluding a 2% contribution from the World Dryer
acquisition and a 3% favorable impact from foreign currency translation.
Growth rates were similar in our nonresidential construction and water
and wastewater infrastructure end markets.
Water Management reported a loss from operations in the fourth quarter
of $89 million that includes a $111 million goodwill impairment charge
associated with the anticipated divestiture of our VAG operations.
Operating income as a percentage of net sales decreased year over year
as the benefit from core sales volume growth was more than offset by the
impairment charge, adverse mix in project shipments to our water and
water infrastructure markets, higher incentive compensation accruals,
and incremental investments in our innovation and market expansion
initiatives.
Water Management Adjusted EBITDA(1) in the fourth quarter was
$35 million and Adjusted EBITDA as a percentage of sales decreased by
170 basis points year over year to 16.3%.
| (1) |
|
Refer to "Non-GAAP Measures" for a definition of this non-GAAP
metric, as well as the accompanying reconciliations to GAAP.
|
| (2) |
|
Our guidance for GAAP net income is based upon the extent of
information available as of the date of this filing regarding events
and conditions that will impact our future operating results for the
periods noted above. Our actual net income may be materially
impacted by events for which information is not available, such as
asset impairments, purchase accounting effects related to future
acquisitions, future restructuring actions, gains (losses)
recognized on the disposal of tangible and intangible assets, gains
(losses) on debt extinguishment, actuarial gains (losses) on our
defined benefit plans, and other gains (losses) related to events or
conditions not yet known. Consequently, we have not included
incremental gains or (losses) for these items in our forward-looking
guidance since that information is not reasonably available.
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Non-GAAP Financial Measures
The following non-GAAP financial measures are utilized by management in
comparing our operating performance on a consistent basis. We believe
that these financial measures are appropriate to enhance an overall
understanding of our underlying operating performance trends compared to
historical and prospective periods and our peers. Management also
believes that these measures are useful to investors in their analysis
of our results of operations and provide improved comparability between
fiscal periods as well as insight into the compliance with our debt
covenants. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information calculated
in accordance with GAAP. Investors are encouraged to review the
reconciliation of these non-GAAP measures to their most directly
comparable GAAP financial measures. A reconciliation of non-GAAP
financial measures presented above to our GAAP results has been provided
in the financial tables included in this press release.
Core Sales
Core sales excludes the impact of acquisitions (such as the Centa, World
Dryer and Cambridge acquisitions), divestitures (such as the RHF product
line exit) and foreign currency translation. Management believes that
core sales facilitates easier and more meaningful comparison of our net
sales performance with prior and future periods and to our peers. We
exclude the effect of acquisitions and divestitures because the nature,
size and number of acquisitions and divestitures can vary dramatically
from period to period and between us and our peers, and can also obscure
underlying business trends and make comparisons of long-term performance
difficult. We exclude the effect of foreign currency translation from
this measure because the volatility of currency translation is not under
management's control.
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted net income and adjusted earnings per share (calculated on a
diluted basis) exclude actuarial gains and losses on pension and
postretirement benefit obligations, restructuring and other similar
charges, gains or losses on divestitures, gains or losses on
extinguishment of debt, the impact of acquisition-related fair value
adjustments in connection with purchase accounting, amortization of
intangible assets, and other non-operational, non-cash or non-recurring
losses, net of their income tax impact. The tax rates used to calculate
adjusted net income and adjusted earnings per share are based on a
transaction specific basis. For the purpose of calculating the ultimate
impact of our mandatory convertible preferred stock, we show the impact
to our adjusted earnings per share by excluding the mandatory
convertible preferred stock dividend and using the “if-converted” method
of share dilution. This provides insight into how our diluted shares
will be affected after these preferred shares are converted to common
shares. We believe that adjusted net income and adjusted earnings per
share are useful in assessing our financial performance by excluding
items that are not indicative of our core operating performance or that
may obscure trends useful in evaluating our continuing results of
operations. All references to Net Income and EPS within this earnings
release refer to net income attributable to Rexnord common stockholders
and net income per diluted share attributable to Rexnord common
stockholders, respectively.
EBITDA
EBITDA represents earnings before interest, taxes, depreciation and
amortization. EBITDA is presented because it is an important
supplemental measure of performance and it is frequently used by
analysts, investors and other interested parties in the evaluation of
companies in our industry. EBITDA is also presented and compared by
analysts and investors in evaluating our ability to meet debt service
obligations. Other companies in our industry may calculate EBITDA
differently. EBITDA is not a measurement of financial performance under
GAAP and should not be considered as an alternative to cash flow from
operating activities or as a measure of liquidity or an alternative to
net income as indicators of operating performance or any other measures
of performance derived in accordance with GAAP. Because EBITDA is
calculated before recurring cash charges, including interest expense and
taxes, and is not adjusted for capital expenditures or other recurring
cash requirements of the business, it should not be considered as a
measure of discretionary cash available to invest in the growth of the
business.
Adjusted EBITDA
“Adjusted EBITDA” is the term we use to describe EBITDA as defined and
adjusted in our credit agreement, which is net income, adjusted for the
items summarized in the table below. Adjusted EBITDA is intended to show
our unleveraged, pre-tax operating results and therefore reflects our
financial performance based on operational factors, excluding
non-operational, non-cash or non-recurring losses or gains. In view of
our debt level, it is also provided to aid investors in understanding
our compliance with our debt covenants. Adjusted EBITDA is not a
presentation made in accordance with GAAP, and our use of the term
Adjusted EBITDA varies from others in our industry. This measure should
not be considered as an alternative to net income, income from
operations (as it relates to our two reportable segments, we adjust from
income from operations because “non-operating” expenses such as interest
and income taxes are not allocated to our segments and therefore net
income is not presented at the segment level) or any other performance
measures derived in accordance with GAAP. Adjusted EBITDA has important
limitations as an analytical tool, and you should not consider it in
isolation, or as a substitute for, analysis of our results as reported
under GAAP. For example, Adjusted EBITDA does not reflect: (a) our
capital expenditures, future requirements for capital expenditures or
contractual commitments; (b) changes in, or cash requirements for, our
working capital needs; (c) the significant interest expenses, or the
cash requirements necessary to service interest or principal payments,
on our debt; (d) tax payments that represent a reduction in cash
available to us; (e) any cash requirements for the assets being
depreciated and amortized that may have to be replaced in the future; or
(f) the impact of earnings or charges resulting from matters that we and
the lenders under our credit agreement may not consider indicative of
our ongoing operations. In particular, our definition of Adjusted EBITDA
allows us to add back certain non-cash, non-operating or non-recurring
charges that are deducted in calculating net income, even though these
are expenses that may recur, vary greatly and are difficult to predict
and can represent the effect of long-term strategies as opposed to
short-term results.
In addition, certain of these expenses can represent the reduction of
cash that could be used for other corporate purposes. Further, although
not included in the calculation of Adjusted EBITDA below, the measure
may at times allow us to add estimated cost savings and operating
synergies related to operational changes ranging from acquisitions to
dispositions to restructurings and/or exclude one-time transition
expenditures that we anticipate we will need to incur to realize cost
savings before such savings have occurred. Further, management and
various investors use the ratio of total debt less cash to Adjusted
EBITDA (which includes a full pro-forma last-twelve-month impact of
acquisitions), or "net debt leverage", as a measure of our financial
strength and ability to incur incremental indebtedness when making key
investment decisions and evaluating us against peers.
Free Cash Flow
We define Free Cash Flow as cash flow from operations less capital
expenditures, and we use this metric in analyzing our ability to service
and repay our debt and to forecast future periods. However, this measure
does not represent funds available for investment or other discretionary
uses since it does not deduct cash used to service our debt.
About Rexnord
Headquartered in Milwaukee, Wisconsin, Rexnord is comprised of two
strategic platforms, Process & Motion Control and Water Management, with
approximately 8,300 employees worldwide. The Process & Motion Control
platform designs, manufactures, markets and services specified,
highly-engineered mechanical components used within complex systems. The
Water Management platform designs, procures, manufactures and markets
products that provide and enhance water quality, safety, flow control
and conservation. Additional information about the Company can be found
at www.rexnord.com.
Conference Call Details
Rexnord will hold a conference call on Tuesday, May 15, 2018 at 8:00
a.m. Eastern Time to discuss its fiscal 2018 fourth quarter results and
provide a general business update. Rexnord President and CEO, Todd
Adams, and Senior Vice President and CFO, Mark Peterson, will co-host
the call. The conference call can be accessed via telephone as follows:
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Domestic toll-free #: 888-771-4371
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International toll #: 847-585-4405
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Access Code: 4690 5789
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A live webcast of the call will also be available on the Company’s
investor relations website. Please go to the website
(investors.rexnordcorporation.com) at least fifteen minutes prior to the
start of the call to register, download and install any necessary audio
software.
If you are unable to participate during the live teleconference, a
replay of the conference call will be available from 10:30 a.m. Eastern
Time, May 15, 2018 until 11:59 p.m. Eastern Time, May 22, 2018. To
access the replay, please dial 888-843-7419 (domestic) or 630-652-3042
(international). The passcode for the replay is: 4690 5789#. The replay
will also be available as a webcast on the Company’s investor relations
website.
Cautionary Statement on Forward-Looking Statements
Information in this release may involve outlook, expectations, beliefs,
plans, intentions, strategies or other statements regarding the future,
which are forward-looking statements. These forward-looking statements
involve risks and uncertainties. All forward-looking statements included
in this release are based upon information available to Rexnord
Corporation as of the date of the release, and Rexnord Corporation
assumes no obligation to update any such forward-looking statements. The
statements in this release are not guarantees of future performance, and
actual results could differ materially from current expectations.
Numerous factors could cause or contribute to such differences. Please
refer to "Risk Factors" and "Cautionary Notice Regarding Forward-Looking
Statements" in the Company's Form 10-K for the fiscal year ended
March 31, 2018 as well as the Company's annual, quarterly and current
reports filed on Forms 10-K, 10-Q and 8-K from time to time with the
Securities and Exchange Commission for a further discussion of the
factors and risks associated with the business.
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| Rexnord Corporation and Subsidiaries |
| Consolidated Statements of Operations |
| (in Millions, except share and per share amounts) (Unaudited) |
|
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|
|
|
|
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|
|
March 31, 2018 |
|
March 31, 2017 |
|
March 31, 2018 |
|
March 31, 2017 |
|
Net sales
|
|
$
|
575.2
|
|
|
$
|
503.6
|
|
|
$
|
2,066.0
|
|
|
$
|
1,918.2
|
|
|
Cost of sales
|
|
365.5
|
|
|
328.0
|
|
|
1,309.1
|
|
|
1,250.2
|
|
|
Gross profit
|
|
209.7
|
|
|
175.6
|
|
|
756.9
|
|
|
668.0
|
|
|
Selling, general and administrative expenses
|
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122.9
|
|
|
100.1
|
|
|
449.5
|
|
|
413.2
|
|
|
Restructuring and other similar charges
|
|
7.2
|
|
|
9.9
|
|
|
18.8
|
|
|
31.6
|
|
|
Actuarial gain on pension and postretirement benefit obligations
|
|
(3.3
|
)
|
|
(2.6
|
)
|
|
(3.3
|
)
|
|
(2.6
|
)
|
|
Amortization of intangible assets
|
|
8.8
|
|
|
8.4
|
|
|
33.6
|
|
|
42.1
|
|
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Goodwill impairment
|
|
111.2
|
|
|
—
|
|
|
111.2
|
|
|
—
|
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(Loss) income from operations
|
|
(37.1
|
)
|
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59.8
|
|
|
147.1
|
|
|
183.7
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Non-operating expense:
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Interest expense, net
|
|
(16.7
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)
|
|
(19.3
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)
|
|
(75.6
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)
|
|
(88.7
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)
|
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Loss on the extinguishment of debt
|
|
—
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|
|
—
|
|
|
(11.9
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)
|
|
(7.8
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)
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Other expense, net
|
|
(0.6
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)
|
|
(1.9
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)
|
|
(3.1
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)
|
|
(5.2
|
)
|
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(Loss) income from operations before income taxes
|
|
(54.4
|
)
|
|
38.6
|
|
|
56.5
|
|
|
82.0
|
|
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Provision (benefit) for income taxes
|
|
7.5
|
|
|
11.2
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|
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(19.5
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)
|
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7.9
|
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Net (loss) income
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(61.9
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)
|
|
27.4
|
|
|
76.0
|
|
|
74.1
|
|
|
Non-controlling interest income
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
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Net (loss) income attributable to Rexnord
|
|
(62.0
|
)
|
|
27.4
|
|
|
75.9
|
|
|
74.1
|
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Dividends on preferred stock
|
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(5.8
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)
|
|
(5.8
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)
|
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(23.2
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)
|
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(7.3
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)
|
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Net (loss) income attributable to Rexnord common stockholders
|
|
$
|
(67.8
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)
|
|
$
|
21.6
|
|
|
$
|
52.7
|
|
|
$
|
66.8
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss) income per share attributable to Rexnord common
stockholders:
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(0.65
|
)
|
|
$
|
0.21
|
|
|
$
|
0.51
|
|
|
$
|
0.65
|
|
|
Diluted (loss) income per share attributable to Rexnord common
stockholders:
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(0.65
|
)
|
|
$
|
0.21
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|
|
$
|
0.50
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|
|
$
|
0.64
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Weighted-average number of shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
Basic
|
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104,094
|
|
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103,482
|
|
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103,889
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|
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102,753
|
|
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Effect of dilutive stock options
|
|
—
|
|
|
1,486
|
|
|
2,110
|
|
|
2,031
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|
Diluted
|
|
104,094
|
|
|
104,968
|
|
|
105,999
|
|
|
104,784
|
|
|
|
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| Rexnord Corporation and Subsidiaries |
| Reconciliation of GAAP to Non-GAAP Financial Measures |
| Fourth Quarter and Fiscal Year |
| (in Millions, except share and per share amounts) (Unaudited) |
|
|
|
|
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Fourth Quarter Ended |
|
Fiscal Year Ended |
| Adjusted EBITDA |
|
March 31, 2018 |
|
March 31, 2017 |
|
March 31, 2018 |
|
March 31, 2017 |
|
Net (loss) income attributable to Rexnord common stockholders
|
|
$
|
(67.8
|
)
|
|
$
|
21.6
|
|
|
$
|
52.7
|
|
|
$
|
66.8
|
|
|
Dividends on preferred stock
|
|
5.8
|
|
|
5.8
|
|
|
23.2
|
|
|
7.3
|
|
|
Non-controlling interest income
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
Income tax provision (benefit)
|
|
7.5
|
|
|
11.2
|
|
|
(19.5
|
)
|
|
7.9
|
|
|
Other expense, net (1)
|
|
0.6
|
|
|
1.9
|
|
|
3.1
|
|
|
5.2
|
|
|
Loss on the extinguishment of debt
|
|
—
|
|
|
—
|
|
|
11.9
|
|
|
7.8
|
|
|
Interest expense, net
|
|
16.7
|
|
|
19.3
|
|
|
75.6
|
|
|
88.7
|
|
|
(Loss) income from operations
|
|
(37.1
|
)
|
|
59.8
|
|
|
147.1
|
|
|
183.7
|
|
|
|
|
|
|
|
|
|
|
| Adjustments |
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
24.4
|
|
|
26.3
|
|
|
89.7
|
|
|
105.4
|
|
|
Actuarial gain on pension and postretirement benefit obligations
|
|
(3.3
|
)
|
|
(2.6
|
)
|
|
(3.3
|
)
|
|
(2.6
|
)
|
|
Goodwill impairment
|
|
111.2
|
|
|
—
|
|
|
111.2
|
|
|
—
|
|
|
Restructuring and other similar charges
|
|
7.2
|
|
|
9.9
|
|
|
18.8
|
|
|
31.6
|
|
|
Acquisition-related fair value adjustment
|
|
0.9
|
|
|
—
|
|
|
1.8
|
|
|
4.3
|
|
|
Stock-based compensation expense
|
|
4.6
|
|
|
3.6
|
|
|
20.5
|
|
|
13.4
|
|
|
Impact of RHF product line exit (2)
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
12.2
|
|
|
Last-in first-out inventory adjustments
|
|
2.6
|
|
|
(2.1
|
)
|
|
3.3
|
|
|
(2.3
|
)
|
|
Other, net (1)
|
|
0.5
|
|
|
0.4
|
|
|
0.9
|
|
|
0.8
|
|
|
Subtotal of adjustments
|
|
148.1
|
|
|
38.2
|
|
|
242.9
|
|
|
162.8
|
|
| Adjusted EBITDA |
|
$
|
111.0
|
|
|
$
|
98.0
|
|
|
$
|
390.0
|
|
|
$
|
346.5
|
|
|
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
| Adjusted Net (Loss) Income and Earnings Per Share |
|
March 31, 2018 |
|
March 31, 2017 |
|
March 31, 2018 |
|
March 31, 2017 |
|
Net (loss) income attributable to Rexnord common stockholders
|
|
$
|
(67.8
|
)
|
|
$
|
21.6
|
|
|
$
|
52.7
|
|
|
$
|
66.8
|
|
|
Non-controlling interest income
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
Actuarial gain on pension and postretirement benefit obligations
|
|
(3.3
|
)
|
|
(2.6
|
)
|
|
(3.3
|
)
|
|
(2.6
|
)
|
|
Supply chain optimization and footprint repositioning initiatives (3)
|
|
1.3
|
|
|
4.4
|
|
|
2.3
|
|
|
9.6
|
|
|
Impact of RHF product line exit (2)
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
12.7
|
|
|
Loss on the extinguishment of debt
|
|
—
|
|
|
—
|
|
|
11.9
|
|
|
7.8
|
|
|
Restructuring and other similar charges
|
|
7.2
|
|
|
9.9
|
|
|
18.8
|
|
|
31.6
|
|
|
Acquisition-related fair value adjustment
|
|
0.9
|
|
|
—
|
|
|
1.8
|
|
|
4.3
|
|
|
Amortization of intangible assets
|
|
8.8
|
|
|
8.4
|
|
|
33.6
|
|
|
42.1
|
|
|
Other, net (1)
|
|
1.1
|
|
|
2.3
|
|
|
4.0
|
|
|
6.0
|
|
|
Dividends on preferred stock
|
|
5.8
|
|
|
5.8
|
|
|
—
|
|
|
7.3
|
|
|
Goodwill impairment
|
|
111.2
|
|
|
—
|
|
|
111.2
|
|
|
—
|
|
|
Non-recurring U.S. tax reform adjustment
|
|
(7.8
|
)
|
|
—
|
|
|
(62.6
|
)
|
|
—
|
|
|
Tax effect on above items
|
|
(5.8
|
)
|
|
(9.3
|
)
|
|
(23.3
|
)
|
|
(39.3
|
)
|
| Adjusted net income |
|
$
|
51.7
|
|
|
$
|
43.2
|
|
|
$
|
147.2
|
|
|
$
|
146.3
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net (loss) income per share attributable to Rexnord
common stockholders
|
|
$
|
(0.65
|
)
|
|
$
|
0.21
|
|
|
$
|
0.50
|
|
|
$
|
0.64
|
|
|
Adjusted earnings per share - diluted
|
|
$
|
0.42
|
|
|
$
|
0.35
|
|
|
$
|
1.39
|
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding (in thousands)
|
|
GAAP diluted weighted-average shares
|
|
106,697
|
|
|
104,968
|
|
|
105,999
|
|
|
104,784
|
|
|
Adjustment for assumed conversion of preferred stock into common
stock
|
|
15,979
|
|
|
18,009
|
|
|
—
|
|
|
5,833
|
|
|
Adjusted diluted weighted-average shares
|
|
122,676
|
|
|
122,977
|
|
|
105,999
|
|
|
110,617
|
|
|
(1)
|
|
Includes the impact of foreign currency transactions, sale of
long-lived assets, and other miscellaneous expenses. See "Management
Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's Form 10-K for the fiscal year ended
March 31, 2018.
|
|
(2)
|
|
During fiscal 2016, the Company announced its decision to exit the
RHF flow control gate product line within its Water Management
platform. The operating loss (excluding restructuring and other
similar charges) is not included in Adjusted EBITDA in accordance
with our credit agreement. Further, to enhance comparability between
historical periods, the pre-tax loss of the RHF product line exit
has also been excluded from our Adjusted earnings per share.
|
|
(3)
|
|
Represents accelerated depreciation and other non-cash expenses
associated with our strategic supply chain optimization and
footprint repositioning initiatives.
|
|
|
|
|
|
Fourth Quarter Ended |
|
|
March 31, 2018 |
|
March 31, 2017 |
| Adjusted EBITDA by Segment |
|
Process & Motion Control |
|
Water Management |
|
Corporate |
|
Process & Motion Control |
|
Water Management |
|
Corporate |
|
Income (loss) from operations
|
|
$
|
60.9
|
|
|
$
|
(88.9
|
)
|
|
$
|
(9.1
|
)
|
|
$
|
43.6
|
|
|
$
|
22.0
|
|
|
$
|
(5.8
|
)
|
| Operating margin |
|
16.9 |
% |
|
(41.4 |
)% |
|
|
|
13.9 |
% |
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gain on pension and postretirement benefit obligations
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
Goodwill impairment
|
|
—
|
|
|
111.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and amortization
|
|
15.6
|
|
|
8.8
|
|
|
—
|
|
|
18.1
|
|
|
8.2
|
|
|
—
|
|
|
Restructuring and other similar charges
|
|
5.6
|
|
|
1.6
|
|
|
—
|
|
|
8.8
|
|
|
1.1
|
|
|
—
|
|
|
Acquisition-related fair value adjustment
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Stock-based compensation expense
|
|
1.1
|
|
|
0.7
|
|
|
2.8
|
|
|
0.6
|
|
|
0.7
|
|
|
2.3
|
|
|
Impact of RHF product line exit (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
Last-in first-out inventory adjustments
|
|
1.1
|
|
|
1.5
|
|
|
—
|
|
|
(1.2
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
Other, net
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|
—
|
|
| Adjusted EBITDA |
|
$
|
85.7
|
|
|
$
|
34.9
|
|
|
$
|
(9.6
|
)
|
|
$
|
70.0
|
|
|
$
|
34.1
|
|
|
$
|
(6.1
|
)
|
| Adjusted EBITDA margin (2) |
|
23.8 |
% |
|
16.3 |
% |
|
|
|
22.3 |
% |
|
18.0 |
% |
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
March 31, 2018 |
|
March 31, 2017 |
| Adjusted EBITDA by Segment |
|
Process & Motion Control |
|
Water Management |
|
Corporate |
|
Process & Motion Control |
|
Water Management |
|
Corporate |
|
Income (loss) from operations
|
|
193.8
|
|
|
(3.0
|
)
|
|
(43.7
|
)
|
|
134.9
|
|
|
85.1
|
|
|
(36.3
|
)
|
| Operating margin |
|
15.6 |
% |
|
(0.4 |
)% |
|
|
|
11.9 |
% |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gain on pension and postretirement benefit obligations
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
Goodwill impairment
|
|
—
|
|
|
111.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and amortization
|
|
56.0
|
|
|
33.7
|
|
|
—
|
|
|
69.9
|
|
|
35.5
|
|
|
—
|
|
|
Restructuring and other similar charges
|
|
13.3
|
|
|
5.5
|
|
|
—
|
|
|
23.4
|
|
|
8.2
|
|
|
—
|
|
|
Acquisition-related fair value adjustment
|
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
Stock-based compensation expense
|
|
5.0
|
|
|
3.5
|
|
|
12.0
|
|
|
3.1
|
|
|
2.1
|
|
|
8.2
|
|
|
Impact of RHF product line exit (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.2
|
|
|
—
|
|
|
Last-in first-out inventory adjustments
|
|
1.4
|
|
|
1.9
|
|
|
—
|
|
|
(0.7
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
Other, net
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.3
|
|
|
—
|
|
| Adjusted EBITDA |
|
$
|
271.3
|
|
|
$
|
153.7
|
|
|
$
|
(35.0
|
)
|
|
$
|
235.4
|
|
|
$
|
141.8
|
|
|
$
|
(30.7
|
)
|
| Adjusted EBITDA margin (2) |
|
21.9 |
% |
|
18.6 |
% |
|
|
|
20.7 |
% |
|
18.4 |
% |
|
|
|
(1)
|
|
During fiscal 2016, the Company announced its decision to exit the
RHF flow control gate product line within its Water Management
platform. The operating loss (excluding restructuring and other
similar charges) is not included in Adjusted EBITDA in accordance
with our credit agreement.
|
|
(2)
|
|
Calculation of Adjusted EBITDA margin for our Water Management
platform excludes sales associated with the RHF product line. See
reconciliation included within the supplemental data for additional
details.
|
|
|
|
|
|
Fiscal Year Ended |
|
|
March 31, 2018 |
|
March 31, 2017 |
|
Cash provided by operating activities
|
|
$
|
228.5
|
|
|
$
|
195.1
|
|
|
Expenditures for property, plant and equipment
|
|
(40.7
|
)
|
|
(54.5
|
)
|
| Free cash flow |
|
$
|
187.8
|
|
|
$
|
140.6
|
|
|
|
|
| Fiscal 2019 Earnings Outlook Reconciliation (1) |
|
Earnings Guidance for |
|
|
the Fiscal Year Ending |
|
|
March 31, 2019 |
|
Net income attributable to Rexnord common stockholders
|
|
$129 million to $143 million
|
|
Dividends on preferred stock
|
|
23
|
|
Provision for income taxes
|
|
68
|
|
Interest expense, net
|
|
73
|
|
Depreciation and amortization
|
|
90
|
|
Restructuring and other similar charges
|
|
15
|
|
Stock-based compensation expense
|
|
25
|
|
Adjusted EBITDA
|
|
$420 million to $440 million
|
|
(1)
|
|
Our outlook is based upon the extent of information available as of
the date of this filing regarding events and conditions that will
impact our future operating results for our fiscal year 2019. Our
actual results may be materially impacted by events for which
information is not available, such as asset impairments, purchase
accounting effects related to future acquisitions, future
restructuring actions, gains (losses) recognized on the disposal of
tangible and intangible assets, gains (losses) on debt
extinguishment, actuarial gains (losses) on our defined benefit
plans, and other gains (losses) related to events or conditions not
yet known. Consequently, we have not included incremental gains or
(losses) for these items in our forward-looking guidance since that
information is not reasonably available.
|
|
|
|
| Rexnord Corporation and Subsidiaries |
| Consolidated Statements of Comprehensive Income |
| (in Millions) (Unaudited) |
|
|
|
|
|
Twelve Months Ended |
|
|
March 31, 2018 |
|
March 31, 2017 |
|
Net income attributable to Rexnord
|
|
$
|
75.9
|
|
|
$
|
74.1
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
57.1
|
|
|
(12.8
|
)
|
|
Unrealized income on interest rate derivatives, net of tax
|
|
5.8
|
|
|
7.4
|
|
|
Change in pension and other postretirement defined benefit plans,
net of tax
|
|
—
|
|
|
7.4
|
|
|
Other comprehensive income, net of tax
|
|
62.9
|
|
|
2.0
|
|
|
Non-controlling interest income
|
|
0.1
|
|
|
—
|
|
|
Total comprehensive income
|
|
$
|
138.9
|
|
|
$
|
76.1
|
|
|
|
|
|
|
| Rexnord Corporation and Subsidiaries |
| Consolidated Balance Sheets |
| (in Millions, except share amounts) (Unaudited) |
|
|
|
|
|
|
|
March 31, 2018 |
|
March 31, 2017 |
| Assets |
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
217.6
|
|
|
$
|
490.1
|
|
|
Receivables, net
|
|
373.2
|
|
|
322.9
|
|
|
Inventories
|
|
344.8
|
|
|
314.9
|
|
|
Income tax receivable
|
|
19.1
|
|
|
10.9
|
|
|
Other current assets
|
|
43.0
|
|
|
39.3
|
|
|
Total current assets
|
|
997.7
|
|
|
1,178.1
|
|
|
Property, plant and equipment, net
|
|
456.4
|
|
|
400.9
|
|
|
Intangible assets, net
|
|
577.5
|
|
|
558.6
|
|
|
Goodwill
|
|
1,276.1
|
|
|
1,318.2
|
|
|
Other assets
|
|
116.0
|
|
|
83.5
|
|
|
Total assets
|
|
$
|
3,423.7
|
|
|
$
|
3,539.3
|
|
| Liabilities and stockholders' equity |
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Current maturities of debt
|
|
$
|
3.9
|
|
|
$
|
16.5
|
|
|
Trade payables
|
|
226.0
|
|
|
197.8
|
|
|
Compensation and benefits
|
|
70.0
|
|
|
54.3
|
|
|
Current portion of pension and postretirement benefit obligations
|
|
4.5
|
|
|
4.3
|
|
|
Other current liabilities
|
|
149.8
|
|
|
127.4
|
|
|
Total current liabilities
|
|
454.2
|
|
|
400.3
|
|
|
|
|
|
|
|
Long-term debt
|
|
1,352.1
|
|
|
1,606.2
|
|
|
Pension and postretirement benefit obligations
|
|
169.2
|
|
|
174.4
|
|
|
Deferred income taxes
|
|
156.6
|
|
|
208.8
|
|
|
Other liabilities
|
|
78.8
|
|
|
79.0
|
|
|
Total liabilities
|
|
2,210.9
|
|
|
2,468.7
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01 par value; 200,000,000 shares authorized; shares
issued and outstanding: 104,179,037 at March 31, 2018 and
103,600,540 at March 31, 2017
|
|
1.0
|
|
|
1.0
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized;
shares of 5.75% Series A Mandatory Convertible Preferred Stock
issued and outstanding: 402,500 at March 31, 2018 and 2017
|
|
0.0
|
|
|
—
|
|
|
Additional paid-in capital
|
|
1,277.8
|
|
|
1,262.1
|
|
|
Retained earnings (deficit)
|
|
8.0
|
|
|
(55.5
|
)
|
|
Accumulated other comprehensive loss
|
|
(74.1
|
)
|
|
(137.0
|
)
|
|
Total Rexnord stockholders' equity
|
|
1,212.7
|
|
|
1,070.6
|
|
|
Non-controlling interest
|
|
0.1
|
|
|
—
|
|
|
Total stockholders' equity
|
|
1,212.8
|
|
|
1,070.6
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,423.7
|
|
|
$
|
3,539.3
|
|
|
|
|
| Rexnord Corporation and Subsidiaries |
| Consolidated Statements of Cash Flows |
| (in Millions) (Unaudited) |
|
|
|
|
|
Year Ended |
|
|
March 31, 2018 |
|
March 31, 2017 |
| Operating activities |
|
|
|
|
|
Net income
|
|
$
|
76.0
|
|
|
$
|
74.1
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
|
56.1
|
|
|
63.3
|
|
|
Amortization of intangible assets
|
|
33.6
|
|
|
42.1
|
|
|
Amortization of deferred financing costs
|
|
1.9
|
|
|
2.4
|
|
|
Non-cash goodwill impairment
|
|
111.2
|
|
|
—
|
|
|
Non-cash asset impairment
|
|
0.8
|
|
|
1.5
|
|
|
Loss on dispositions of property, plant and equipment
|
|
0.9
|
|
|
0.2
|
|
|
Deferred income taxes
|
|
(77.5
|
)
|
|
(18.4
|
)
|
|
Actuarial gain on pension and post retirement benefit obligations
|
|
(3.3
|
)
|
|
(2.6
|
)
|
|
Other non-cash charges (credits)
|
|
2.3
|
|
|
(1.0
|
)
|
|
Loss on extinguishment of debt
|
|
11.9
|
|
|
7.8
|
|
|
Stock-based compensation expense
|
|
20.5
|
|
|
13.4
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Receivables
|
|
(31.0
|
)
|
|
(5.8
|
)
|
|
Inventories
|
|
11.5
|
|
|
22.5
|
|
|
Other assets
|
|
(16.6
|
)
|
|
(9.2
|
)
|
|
Accounts payable
|
|
13.0
|
|
|
(5.3
|
)
|
|
Accruals and other
|
|
17.2
|
|
|
10.1
|
|
|
Cash provided by operating activities
|
|
228.5
|
|
|
195.1
|
|
|
|
|
|
|
| Investing activities |
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
(40.7
|
)
|
|
(54.5
|
)
|
|
Acquisitions, net of cash acquired
|
|
(173.6
|
)
|
|
(213.7
|
)
|
|
Proceeds from dispositions of property, plant and equipment
|
|
5.5
|
|
|
4.2
|
|
|
Cash used for investing activities
|
|
(208.8
|
)
|
|
(264.0
|
)
|
|
|
|
|
|
| Financing activities |
|
|
|
|
|
Proceeds from borrowings of debt
|
|
1,529.8
|
|
|
1,590.3
|
|
|
Repayments of long-term debt
|
|
(1,791.9
|
)
|
|
(1,885.8
|
)
|
|
Proceeds from borrowings of short-term debt
|
|
—
|
|
|
16.1
|
|
|
Repayments of short-term debt
|
|
(24.3
|
)
|
|
(19.5
|
)
|
|
Payment of debt issuance costs
|
|
(11.0
|
)
|
|
(11.8
|
)
|
|
Deferred acquisition payment
|
|
—
|
|
|
(5.7
|
)
|
|
Proceeds from issuance of preferred stock, net of direct offering
costs
|
|
—
|
|
|
389.7
|
|
|
Payment of preferred stock dividends
|
|
(23.2
|
)
|
|
(4.4
|
)
|
|
Proceeds from financing lease obligations
|
|
5.8
|
|
|
—
|
|
|
Proceeds from exercise of stock options
|
|
6.0
|
|
|
11.0
|
|
|
Cash (used for) provided by financing activities
|
|
(308.8
|
)
|
|
79.9
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
|
|
16.6
|
|
|
(5.5
|
)
|
|
(Decrease) increase in cash, cash equivalents and restricted cash
|
|
(272.5
|
)
|
|
5.5
|
|
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
490.1
|
|
|
484.6
|
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
217.6
|
|
|
$
|
490.1
|
|
|
|
|
| Rexnord Corporation and Subsidiaries |
| Supplemental Pro forma(1) Data (in Millions) (Unaudited) |
| Fiscal 2018 and Fiscal 2017 Quarterly Results |
|
|
|
|
|
Fiscal 2018 |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
| Net sales |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
$
|
287.7
|
|
|
$
|
300.4
|
|
|
$
|
292.5
|
|
|
$
|
360.6
|
|
|
$
|
1,241.2
|
|
|
Water Management
|
|
200.0
|
|
|
210.4
|
|
|
199.8
|
|
|
214.6
|
|
|
824.8
|
|
|
Total
|
|
$
|
487.7
|
|
|
$
|
510.8
|
|
|
$
|
492.3
|
|
|
$
|
575.2
|
|
|
$
|
2,066.0
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales growth |
|
|
|
|
|
|
|
|
|
|
|
Core growth
|
|
3% |
|
4% |
|
6% |
|
7% |
|
5% |
|
Currency translation
|
|
(1)% |
|
1% |
|
2% |
|
3% |
|
2% |
|
Acquisition/divestiture
|
|
1% |
|
(1)% |
|
1% |
|
4% |
|
1% |
|
Reported growth
|
|
3% |
|
4% |
|
9% |
|
14% |
|
8% |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
$
|
57.5
|
|
|
$
|
62.2
|
|
|
$
|
65.9
|
|
|
$
|
85.7
|
|
|
$
|
271.3
|
|
|
Water Management
|
|
37.2
|
|
|
44.4
|
|
|
37.2
|
|
|
34.9
|
|
|
153.7
|
|
|
Corporate
|
|
(8.7
|
)
|
|
(8.5
|
)
|
|
(8.2
|
)
|
|
(9.6
|
)
|
|
(35.0
|
)
|
|
Total
|
|
$
|
86.0
|
|
|
$
|
98.1
|
|
|
$
|
94.9
|
|
|
$
|
111.0
|
|
|
$
|
390.0
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA % |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
20.0
|
%
|
|
20.7
|
%
|
|
22.5
|
%
|
|
23.8
|
%
|
|
21.9
|
%
|
|
Water Management
|
|
18.6
|
%
|
|
21.1
|
%
|
|
18.6
|
%
|
|
16.3
|
%
|
|
18.6
|
%
|
|
Total (including Corporate)
|
|
17.6
|
%
|
|
19.2
|
%
|
|
19.3
|
%
|
|
19.3
|
%
|
|
18.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation & amortization of intangible assets |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
$
|
14.4
|
|
|
$
|
13.0
|
|
|
$
|
13.0
|
|
|
$
|
15.6
|
|
|
$
|
56.0
|
|
|
Water Management
|
|
8.1
|
|
|
8.1
|
|
|
8.7
|
|
|
8.8
|
|
|
33.7
|
|
|
Total
|
|
$
|
22.5
|
|
|
$
|
21.1
|
|
|
$
|
21.7
|
|
|
$
|
24.4
|
|
|
$
|
89.7
|
|
|
|
|
|
|
Fiscal 2017 |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
| Net sales |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
$
|
263.7
|
|
|
$
|
286.9
|
|
|
$
|
270.3
|
|
|
$
|
313.8
|
|
|
$
|
1,134.7
|
|
|
Water Management, as adjusted (1)
|
|
201.6
|
|
|
198.6
|
|
|
179.1
|
|
|
189.5
|
|
|
768.8
|
|
|
Total, as adjusted (1)
|
|
465.3
|
|
|
485.5
|
|
|
449.4
|
|
|
503.3
|
|
|
1,903.5
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales growth |
|
|
|
|
|
|
|
|
|
|
|
Core growth
|
|
(1)% |
|
(2)% |
|
(5)% |
|
—% |
|
(2)% |
|
Currency translation
|
|
(1)% |
|
—% |
|
(1)% |
|
—% |
|
(1)% |
|
Acquisition/divestiture
|
|
(1)% |
|
3% |
|
4% |
|
2% |
|
3% |
|
Reported growth
|
|
(3)% |
|
1% |
|
(2)% |
|
2% |
|
—% |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
$
|
49.0
|
|
|
$
|
60.7
|
|
|
$
|
55.7
|
|
|
$
|
70.0
|
|
|
$
|
235.4
|
|
|
Water Management
|
|
38.3
|
|
|
37.9
|
|
|
31.5
|
|
|
34.1
|
|
|
141.8
|
|
|
Corporate
|
|
(8.3
|
)
|
|
(8.3
|
)
|
|
(8.0
|
)
|
|
(6.1
|
)
|
|
(30.7
|
)
|
|
Total
|
|
$
|
79.0
|
|
|
$
|
90.3
|
|
|
$
|
79.2
|
|
|
$
|
98.0
|
|
|
$
|
346.5
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA % |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
18.6
|
%
|
|
21.2
|
%
|
|
20.6
|
%
|
|
22.3
|
%
|
|
20.7
|
%
|
|
Water Management
|
|
19.0
|
%
|
|
19.1
|
%
|
|
17.6
|
%
|
|
18.0
|
%
|
|
18.4
|
%
|
|
Total (including Corporate)
|
|
17.0
|
%
|
|
18.6
|
%
|
|
17.6
|
%
|
|
19.5
|
%
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation & amortization of intangible assets |
|
|
|
|
|
|
|
|
|
|
|
Process & Motion Control
|
|
$
|
19.3
|
|
|
$
|
15.5
|
|
|
$
|
17.0
|
|
|
$
|
18.1
|
|
|
$
|
69.9
|
|
|
Water Management, as adjusted (1) (2)
|
|
9.4
|
|
|
8.6
|
|
|
8.8
|
|
|
8.2
|
|
|
35.0
|
|
|
Total, as adjusted (1) (2)
|
|
$
|
28.7
|
|
|
$
|
24.1
|
|
|
$
|
25.8
|
|
|
$
|
26.3
|
|
|
$
|
104.9
|
|
|
(1)
|
|
During the fourth quarter of fiscal 2016, the Company announced its
decision to exit the RHF flow control gate product line within its
Water Management platform. To improve the comparability of
historical and prospective financial information, this supplementary
schedule presents pro forma Water Management and consolidated
financial information that has been adjusted to exclude the RHF
product line. Refer to the "Reconciliation of GAAP to Non-GAAP
Financial Measures" schedules below.
|
|
(2)
|
|
Water Management depreciation and amortization includes depreciation
associated with RHF of $0.3 million and $0.2 million, in the first
and second quarters of fiscal 2017, respectively.
|
|
|
|
| Rexnord Corporation and Subsidiaries |
| Reconciliation of GAAP to Non-GAAP Financial Measures |
| Fiscal 2017 Quarterly Results |
| (in Millions) (Unaudited) |
|
|
| Reconciliation of Water Management Net Sales to Water Management
Net Sales Excluding RHF: |
|
|
|
|
|
Fiscal 2017 |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
Water Management net sales, as reported
|
|
$
|
208.1
|
|
|
$
|
204.1
|
|
|
$
|
181.5
|
|
|
$
|
189.8
|
|
|
$
|
783.5
|
|
|
Less RHF net sales (1)
|
|
(6.5
|
)
|
|
(5.5
|
)
|
|
(2.4
|
)
|
|
(0.3
|
)
|
|
(14.7
|
)
|
|
Water Management net sales, as adjusted (1)
|
|
$
|
201.6
|
|
|
$
|
198.6
|
|
|
$
|
179.1
|
|
|
$
|
189.5
|
|
|
$
|
768.8
|
|
|
(1)
|
|
During fiscal 2016, the Company announced its decision to exit the
RHF flow control gate product line within its Water Management
platform. To improve the comparability of historical and prospective
financial information, this supplementary schedule presents pro
forma Water Management net sales that has been adjusted to exclude
the RHF product line.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180514006426/en/
Source: Rexnord Corporation
Rexnord Corporation
Rob McCarthy
Vice President - Investor
Relations
414.223.1615