|
|
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
|
||
|
||
(Principal Executive Office)
|
||
Telephone Number: (
|
||
|
||
Former name or former address, if changed since last report
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Exhibit No.
|
Description
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL Document)
|
ITT Inc.
|
||
(Registrant)
|
||
February 9, 2023
|
By:
|
/s/ Lori B. Marino
|
Name: Lori B. Marino
|
||
Title: Senior Vice President and General Counsel
|
||
(Authorized Officer of Registrant)
|
STAMFORD, Conn.--(BUSINESS WIRE)--February 9, 2023--ITT Inc. (NYSE: ITT) today reported financial results for the fourth quarter ended December 31, 2022. The company reported a year-over-year revenue increase of 13%, up 17% on an organic basis, primarily driven by Friction OE and rail growth in Motion Technologies (MT), pump project activity in Industrial Process (IP), demand in connectors and components in Connect & Control Technologies (CCT), and pricing recovery across all segments. The acquisition of Habonim contributed 2% to total revenue growth. This was partially offset by a 6% unfavorable impact from U.S. dollar appreciation.
Fourth quarter segment operating income of $159 million increased 30% (16% adjusted) compared to prior year, and segment operating margin of 20.6% increased 270 basis points versus prior year. The increases were due primarily to pricing recovery, productivity, higher volumes and a gain on sale of facilities in IP, which more than offset higher raw material and overhead costs. On an adjusted basis, segment operating margin expanded 40 basis points to 18.6%.
Earnings per share for the fourth quarter of $1.39 increased 16% versus prior year primarily due to higher adjusted segment operating income, earnings from acquisitions, benefits from share repurchases, and the gain on sale of facilities in IP, partially offset by foreign currency headwinds and higher interest expense. Excluding the impact of the gain on sale and other items, adjusted earnings per share of $1.29 for the fourth quarter increased 22% compared to prior year.
Operating cash flow for the fourth quarter of $163 million increased 36% and free cash flow for the fourth quarter of $132 million increased 58% versus prior year driven by strong accounts receivable collections. For the full year 2022, operating cash flow increased $286 million versus prior year to $278 million, compared to an outflow in 2021 of $8 million, which included a $398 million payment to fund the asbestos liability divestiture. Excluding the impact of the asbestos-related payment in 2021, operating cash flow for the full year declined $112 million driven by an increase in working capital to support sales growth and to mitigate continued supply chain disruptions.
Table 1. Fourth Quarter Performance |
||||||||||||
Q4 2022 | Q4 2021 | Change | ||||||||||
Revenue | $ |
774.6 |
$ |
685.4 |
13.0 |
% |
||||||
Organic Growth |
17.5 |
% |
||||||||||
Segment Operating Income | $ |
159.4 |
$ |
122.6 |
30.0 |
% |
||||||
Segment Operating Margin |
20.6 |
% |
17.9 |
% |
270 |
bps | ||||||
Adjusted Segment Operating Income | $ |
144.3 |
$ |
124.7 |
15.7 |
% |
||||||
Adjusted Segment Operating Margin |
18.6 |
% |
18.2 |
% |
40 |
bps | ||||||
Earnings Per Share | $ |
1.39 |
$ |
1.20 |
15.8 |
% |
||||||
Adjusted Earnings Per Share | $ |
1.29 |
$ |
1.06 |
21.7 |
% |
||||||
Operating Cash Flow | $ |
162.5 |
$ |
119.5 |
36.0 |
% |
||||||
Free Cash Flow | $ |
132.3 |
$ |
83.7 |
58.1 |
% |
||||||
Note: all results unaudited; dollars in millions except per share amounts |
Management Commentary
“Our results this quarter and throughout 2022 have shown the resilience of our ITTers and our business model. During an unpredictable time, our team’s focus on our customers never wavered, which drove strong orders growth across all businesses. Our commercial actions to drive share gains and price recovery, coupled with productivity, led to a record segment operating margin in the fourth quarter. We overcame more than $200 million of cost inflation, significant foreign currency headwinds and the loss of business in Russia in 2022, and delivered on our original revenue and adjusted earnings per share guidance. We deployed over $600 million of capital for the year, including for the acquisition of Habonim, a specialty valves manufacturer which expanded the Industrial Process portfolio and provided strong returns in its first year. As a result of all our achievements, we’re entering 2023 with a solid foundation for growth and value creation and a record backlog. I remain confident in our ability to reach our long-term financial and sustainability targets,” said Luca Savi, ITT’s Chief Executive Officer and President.
Table 2. Fourth Quarter Segment Results | |||||||||||||||
Revenue | Operating Income | ||||||||||||||
Q4 2022 | Reported Increase / (Decrease) |
Organic Growth |
Q4 2022 | Reported Increase / (Decrease) |
Adjusted Increase / (Decrease) |
||||||||||
Motion Technologies | $ |
330.4 |
2.1 |
% |
12.1 |
% |
$ |
47.8 |
(25.2) |
% |
(23.9) |
% |
|||
Industrial Process |
280.7 |
29.8 |
% |
26.7 |
% |
80.0 |
150.8 |
% |
87.7 |
% |
|||||
Connect & Control Technologies |
164.6 |
12.9 |
% |
16.2 |
% |
31.6 |
17.9 |
% |
17.9 |
% |
|||||
Total segment results |
774.6 |
13.0 |
% |
17.5 |
% |
159.4 |
30.0 |
% |
15.7 |
% |
|||||
Note: all results unaudited; excludes intercompany eliminations of $1.1 million; comparisons to Q4 2021; dollars in millions except per share amounts |
Motion Technologies revenue increased, primarily driven by growth in Friction OE from share gains and pricing recovery and strength in the rail business, partially offset by an unfavorable foreign currency translation of $32 million. Operating income decreased 25% to $48 million due to a prior year gain on sale of property, higher raw material costs, unfavorable foreign currency impacts and the loss of Russia business, partially offset by favorable pricing and productivity actions.
Industrial Process revenue increased, primarily driven by growth across end-markets in both pump projects and short-cycle baseline pumps, parts and service, and from the addition of Habonim, which was acquired in April 2022. This was partially offset by an unfavorable foreign currency translation of $9 million. Operating income increased to $80 million driven by a $16 million gain on sale of facilities, pricing recovery, higher volume, and productivity actions, partially offset by higher raw material and overhead costs, the mix of project and short-cycle revenue and unfavorable foreign currency impacts.
Connect & Control Technologies revenue increased, primarily driven by connectors share gains and growth in components, with particular strength in the aerospace and defense and industrial markets. This was partially offset by an unfavorable foreign currency translation of $5 million. Operating income increased to $32 million driven by pricing recovery, higher volume, and productivity actions, partially offset by higher raw material costs and unfavorable foreign currency impacts.
Table 3. 2022 Full Year Results | ||||||||||
FY 2022 | FY 2021 | Change | ||||||||
Revenue | $ |
2,987.7 |
$ |
2,765.0 |
8.1 |
% |
||||
Organic Growth |
12.2 |
% |
||||||||
Segment Operating Income | $ |
511.9 |
$ |
466.7 |
9.7 |
% |
||||
Segment Operating Margin |
17.1 |
% |
16.9 |
% |
20 |
bps | ||||
Adjusted Segment Operating Income | $ |
514.0 |
$ |
476.7 |
7.8 |
% |
||||
Adjusted Segment Operating Margin |
17.2 |
% |
17.2 |
% |
— |
bps |
||||
Earnings Per Share | $ |
4.40 |
$ |
3.64 |
20.9 |
% |
||||
Adjusted Earnings Per Share | $ |
4.44 |
$ |
4.05 |
9.6 |
% |
||||
Operating Cash Flow | $ |
277.7 |
$ |
(8.4) |
3,406.0 |
% |
||||
Free Cash Flow | $ |
173.8 |
$ |
(96.8) |
279.5 |
% |
||||
Note: all results unaudited; dollars in millions except per share amounts |
Quarterly Dividend Increase
The company announced today an increase in its quarterly dividend of 10% to $0.29 per share on the company’s outstanding common stock. ITT’s Board of Directors approved the cash dividend for the first quarter of 2023, which will be payable on April 3, 2023, to shareholders of record as of the close of business on March 9, 2023. The 10% increase in the quarterly dividend announced today follows increases of 30% and 20% in 2021 and 2022, respectively.
2023 Guidance
We expect revenue growth of 7% to 9%, up 6% to 8% on an organic basis; segment operating margin of 17.0% to 17.8%, and adjusted segment operating margin of 17.3% to 18.1%, up 10 to 90 bps; EPS of $4.38 to $4.78, and adjusted EPS of $4.55 to $4.95, representing growth of 7% at the midpoint; and free cash flow of $350 million to $400 million, representing free cash flow margin of 11% to 12% for the full year 2023.
It is not possible, without unreasonable efforts, to estimate the impacts of foreign currency fluctuations, acquisitions and certain other special items that may occur in 2023 as these items are inherently uncertain and difficult to predict. As a result, we are unable to quantify certain amounts that would be included in a reconciliation of organic revenue growth and adjusted segment operating margin to the most directly comparable GAAP financial measures without unreasonable efforts and we have not provided reconciliations for these forward-looking non-GAAP financial measures.
Investor Conference Call Details
ITT’s management will host a conference call for investors on Thursday, February 9 at 8:30 a.m., Eastern Time. The briefing can be accessed live via webcast which is available on the company’s website: https://investors.itt.com. A replay of the webcast will be available for 90 days following the presentation. A replay will also be available telephonically from two hours after the webcast until Thursday, February 23, 2023, at midnight, Eastern Time. Reconciliations of non-GAAP financial performance metrics to their most comparable U.S. GAAP financial performance metrics are defined and presented below and should not be considered a substitute for, nor superior to, the financial data prepared in accordance with U.S. GAAP.
Safe Harbor Statement
This release contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In addition, the conference call (including the financial results presentation material) may include, and officers and representatives of ITT may from time to time make and discuss, projections, goals, assumptions, and statements that may constitute “forward-looking statements”. These forward-looking statements are not historical facts, but rather represent only a belief regarding future events based on current expectations, estimates, assumptions and projections about our business, future financial results and the industry in which we operate, and other legal, regulatory, and economic developments. These forward-looking statements include, but are not limited to, future strategic plans and other statements that describe the company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future events and future operating or financial performance.
We use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “future,” “may,” “will,” “could,” “should,” “potential,” “continue,” “guidance” and other similar expressions to identify forward-looking statements. Forward-looking statements are uncertain and, by their nature, many are inherently unpredictable and outside of ITT’s control, and are subject to 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.
Where in any forward-looking statement we express an expectation or belief as to future results or events, such expectation or belief is based on current plans and expectations of our management, expressed in good faith and believed to have a reasonable basis. However, we cannot provide any assurance that the expectation or belief will occur or that anticipated results will be achieved or accomplished.
Among the factors that could cause our results to differ materially from those indicated by forward-looking statements are risks and uncertainties inherent in our business including, without limitation:
The forward-looking statements included in this release speak only as of the date hereof. We undertake no obligation (and expressly disclaim any obligation) to update any forward-looking statements, whether written or oral or as a result of new information, future events or otherwise.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |||||||||||||
Three Months Ended | Full Year | ||||||||||||
December 31, 2022 |
December 31, 2021 |
December 31, 2022 |
December 31, 2021 |
||||||||||
Revenue | $ |
774.6 |
$ |
685.4 |
$ |
2,987.7 |
$ |
2,765.0 |
|||||
Cost of revenue |
526.3 |
461.5 |
2,065.4 |
1,865.5 |
|||||||||
Gross profit |
248.3 |
223.9 |
922.3 |
899.5 |
|||||||||
General and administrative expenses |
51.6 |
52.9 |
211.6 |
221.3 |
|||||||||
Sales and marketing expenses |
38.6 |
38.4 |
156.9 |
150.8 |
|||||||||
Research and development expenses |
22.8 |
24.9 |
96.5 |
94.9 |
|||||||||
Gain on sale of long-lived assets |
(15.9) |
(6.8) |
(16.3) |
(7.0) |
|||||||||
Asbestos-related benefit, net |
- |
- |
- |
(74.4) |
|||||||||
Restructuring costs |
0.3 |
1.4 |
3.8 |
9.6 |
|||||||||
Asset impairment charges |
- |
- |
1.8 |
- |
|||||||||
Operating income |
150.9 |
113.1 |
468.0 |
504.3 |
|||||||||
Interest expense (income), net |
3.1 |
(0.4) |
6.4 |
(1.1) |
|||||||||
Non-operating postretirement costs (benefit), net |
0.1 |
(2.5) |
1.1 |
(1.3) |
|||||||||
Miscellaneous expense (income), net |
0.4 |
2.4 |
(1.3) |
(2.4) |
|||||||||
Income from continuing operations before income tax expense |
147.3 |
113.6 |
461.8 |
509.1 |
|||||||||
Income tax expense |
31.2 |
6.9 |
91.1 |
189.6 |
|||||||||
Income from continuing operations |
116.1 |
106.7 |
370.7 |
319.5 |
|||||||||
Income (loss) from discontinued operations, net of tax benefit (expense) of $0.1, $(0.3), $0.4 and $0.2, respectively |
- |
0.6 |
(1.3) |
1.5 |
|||||||||
Net income |
116.1 |
107.3 |
369.4 |
321.0 |
|||||||||
Less: Income attributable to noncontrolling interests |
0.9 |
3.7 |
2.4 |
4.7 |
|||||||||
Net income attributable to ITT Inc. | $ |
115.2 |
$ |
103.6 |
$ |
367.0 |
$ |
316.3 |
|||||
Amounts attributable to ITT Inc.: | |||||||||||||
Income from continuing operations | $ |
115.2 |
$ |
103.0 |
$ |
368.3 |
$ |
314.8 |
|||||
Income (loss) from discontinued operations, net of tax |
- |
0.6 |
(1.3) |
1.5 |
|||||||||
Net income attributable to ITT Inc. | $ |
115.2 |
$ |
103.6 |
$ |
367.0 |
$ |
316.3 |
|||||
Earnings (loss) per share attributable to ITT Inc.: | |||||||||||||
Basic: | |||||||||||||
Continuing operations | $ |
1.39 |
$ |
1.20 |
$ |
4.42 |
$ |
3.66 |
|||||
Discontinued operations |
- |
0.01 |
(0.02) |
0.02 |
|||||||||
Net income | $ |
1.39 |
$ |
1.21 |
$ |
4.40 |
$ |
3.68 |
|||||
Diluted: | |||||||||||||
Continuing operations | $ |
1.39 |
$ |
1.20 |
$ |
4.40 |
$ |
3.64 |
|||||
Discontinued operations |
- |
- |
(0.02) |
0.02 |
|||||||||
Net income | $ |
1.39 |
$ |
1.20 |
$ |
4.38 |
$ |
3.66 |
|||||
Weighted average common shares – basic |
82.7 |
85.6 |
83.4 |
86.0 |
|||||||||
Weighted average common shares – diluted |
83.1 |
86.1 |
83.7 |
86.5 |
|||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) |
|||||||
As of the Period Ended |
December 31, |
December 31, |
|||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ |
561.2 |
$ |
647.5 |
|||
Receivables, net |
628.8 |
555.1 |
|||||
Inventories, net |
533.9 |
430.9 |
|||||
Other current assets |
112.9 |
88.6 |
|||||
Total current assets |
1,836.8 |
1,722.1 |
|||||
Non-current assets: | |||||||
Plant, property and equipment, net |
526.8 |
509.1 |
|||||
Goodwill |
964.8 |
924.3 |
|||||
Other intangible assets, net |
112.8 |
85.7 |
|||||
Other non-current assets |
339.1 |
324.2 |
|||||
Total non-current assets |
1,943.5 |
1,843.3 |
|||||
Total assets | $ |
3,780.3 |
$ |
3,565.4 |
|||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Commercial paper and current maturities of long-term debt | $ |
451.0 |
$ |
197.6 |
|||
Accounts payable |
401.1 |
373.4 |
|||||
Accrued and other current liabilities |
333.4 |
357.3 |
|||||
Total current liabilities |
1,185.5 |
928.3 |
|||||
Non-current liabilities: | |||||||
Postretirement benefits |
137.2 |
199.9 |
|||||
Other non-current liabilities |
200.2 |
206.5 |
|||||
Total non-current liabilities |
337.4 |
406.4 |
|||||
Total liabilities |
1,522.9 |
1,334.7 |
|||||
Shareholders’ equity: | |||||||
Common stock: | |||||||
Authorized – 250.0 shares, $1 par value per share | |||||||
Issued and outstanding – 82.7 shares and 85.5 shares, respectively |
82.7 |
85.5 |
|||||
Retained earnings |
2,509.7 |
2,461.6 |
|||||
Accumulated other comprehensive loss: | |||||||
Postretirement benefit plans |
3.6 |
(40.8) |
|||||
Cumulative translation adjustments |
(347.9) |
(280.5) |
|||||
Total ITT Inc. shareholders’ equity |
2,248.1 |
2,225.8 |
|||||
Noncontrolling interests |
9.3 |
4.9 |
|||||
Total shareholders’ equity |
2,257.4 |
2,230.7 |
|||||
Total liabilities and shareholders’ equity | $ |
3,780.3 |
$ |
3,565.4 |
|||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
(IN MILLIONS) | |||||||
For the Year Ended | December 31, 2022 |
December 31, 2021 |
|||||
Operating Activities | |||||||
Income from continuing operations attributable to ITT Inc. | $ |
368.3 |
$ |
314.8 |
|||
Adjustments to income from continuing operations: | |||||||
Depreciation and amortization |
107.4 |
113.1 |
|||||
Equity-based compensation |
18.1 |
16.5 |
|||||
Asbestos-related benefit, net |
- |
(74.4) |
|||||
Deferred income tax expense |
2.9 |
115.7 |
|||||
Gain on sale of long-lived assets |
(16.3) |
(7.0) |
|||||
Asset impairment charges |
1.8 |
- |
|||||
Other non-cash charges, net |
27.5 |
28.3 |
|||||
Contibution to divest asbestos-related assets and liabilities |
- |
(398.0) |
|||||
Contribution to postretirement plans |
(11.0) |
(10.5) |
|||||
Changes in assets and liabilities: | |||||||
Change in receivables |
(90.7) |
(62.2) |
|||||
Change in inventories |
(99.5) |
(82.7) |
|||||
Change in contract assets |
(7.4) |
(2.5) |
|||||
Change in contract liabilities |
23.3 |
(3.6) |
|||||
Change in accounts payable |
39.4 |
77.6 |
|||||
Change in accrued expenses |
(36.9) |
15.8 |
|||||
Change in income taxes |
(13.5) |
8.2 |
|||||
Other, net |
(35.7) |
(57.5) |
|||||
Net Cash – Operating Activities |
277.7 |
(8.4) |
|||||
Investing Activities | |||||||
Capital expenditures |
(103.9) |
(88.4) |
|||||
Proceeds from sale of long-lived assets |
20.9 |
8.0 |
|||||
Acquisitions, net of cash acquired |
(146.9) |
- |
|||||
Payments to acquire interest in unconsolidated subsidiaries |
(25.6) |
(1.9) |
|||||
Other, net |
0.4 |
- |
|||||
Net Cash – Investing Activities |
(255.1) |
(82.3) |
|||||
Financing Activities | |||||||
Commercial paper, net borrowings |
259.7 |
95.4 |
|||||
Long-term debt, repayments |
(2.1) |
(2.4) |
|||||
Share repurchases under repurchase plan |
(245.3) |
(104.8) |
|||||
Payments for taxes related to net share settlement of stock incentive plans |
(8.8) |
(11.7) |
|||||
Dividends paid |
(87.9) |
(75.8) |
|||||
Other, net |
1.1 |
(0.5) |
|||||
Net Cash – Financing Activities |
(83.3) |
(99.8) |
|||||
Exchange rate effects on cash and cash equivalents |
(25.8) |
(22.6) |
|||||
Net cash – operating activities of discontinued operations |
0.1 |
0.8 |
|||||
Net change in cash and cash equivalents |
(86.4) |
(212.3) |
|||||
Cash and cash equivalents – beginning of year (includes restricted cash of $0.8 and $0.8, respectively) |
648.3 |
860.6 |
|||||
Cash and Cash Equivalents – end of year (includes restricted cash of $0.7 and $0.8, respectively) | $ |
561.9 |
$ |
648.3 |
|||
Supplemental Disclosures of Cash Flow Information | |||||||
Cash paid during the year for: | |||||||
Interest | $ |
10.8 |
$ |
3.3 |
|||
Income taxes, net of refunds received | $ |
92.7 |
$ |
61.3 |
|||
Key Performance Indicators and Non-GAAP Measures |
Management reviews a variety of key performance indicators including revenue, segment operating income and margins, earnings per share, order growth, and backlog, some of which are calculated on a non-GAAP basis. In addition, we consider certain measures to be useful to management and investors when evaluating our operating performance for the periods presented. These measures provide a tool for evaluating our ongoing operations and management of assets from period to period. 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, acquisitions, dividends, and share repurchases. Some of these metrics, however, are not measures of financial performance under accounting principles generally accepted in the United States of America (GAAP) and should not be considered a substitute for measures 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 for purposes of our reconciliation tables. |
Organic Revenues and Organic Orders are defined, respectively, as revenue and orders, excluding the impacts of foreign currency fluctuations and acquisitions. The period-over-period change resulting from foreign currency fluctuations is estimated using a fixed exchange rate for both the current and prior periods. Management believes that reporting organic revenue and organic orders provides useful information to investors by helping identify underlying trends in our business and facilitating comparisons of our revenue performance with prior and future periods and to our peers. |
Adjusted Operating Income and Adjusted Segment Operating Income are defined, respectively, as total operating income and segment operating income, adjusted to exclude special items that include, but are not limited to, certain gain on sale of long-lived assets, restructuring, severance, certain asset impairment charges, certain acquisition-related impacts, unusual or infrequent operating items and, for 2021, asbestos-related impacts. Special items represent charges or credits that impact current results, which management views as unrelated to the Company's ongoing operations and performance. Adjusted Operating Margin and Adjusted Segment Operating Margin are defined as adjusted operating income or adjusted segment operating income, respectively, divided by revenue. We believe these financial measures are useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors. |
Adjusted Income from Continuing Operations is defined as income from continuing operations attributable to ITT Inc. adjusted to exclude special items that include, but are not limited to, certain gain on sale of long-lived assets, restructuring, severance, certain asset impairment charges, pension termination and settlement impacts, certain acquisition-related impacts, income tax settlements or adjustments, unusual or infrequent items and, for 2021, asbestos-related impacts. Special items represent charges or credits, on an after-tax basis, that impact current results, which management views as unrelated to the Company’s ongoing operations and performance. The after-tax basis of each special item is determined using the jurisdictional tax rate of where the expense or benefit occurred. Adjusted income from continuing operations per diluted share (adjusted EPS) is defined as adjusted income from continuing operations divided by diluted weighted average common shares outstanding. We believe that adjusted income from continuing operations and adjusted EPS are useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors. |
Free Cash Flow is defined as net cash provided by operating activities less capital expenditures. Free Cash Flow Margin is defined as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin provides useful information to investors as it provides insight into a primary cash flow metric used by management to monitor and evaluate cash flows generated by our operations. |
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||
Reported vs. Organic Revenue / Orders | ||||||||||||||||||||||||||||
Fourth Quarter 2022 & 2021 | ||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||
(As Reported - GAAP) | (As Adjusted - Organic) | |||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) = A-D-E | (G) =C-D-E | (H) = G / B | |||||||||||||||||||||
$ Change | % Change | Revenue / | $ Change | % Change | ||||||||||||||||||||||||
2022 vs. 2021 |
2022 vs. 2021 |
Acquisitions | FX Impact | Orders | Adj. 2022 vs. 2021 |
Adj. 2022 vs. 2021 |
||||||||||||||||||||||
Q4 2022 | Q4 2021 | Q4 2022 | Q4 2022 | Q4 2022 | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
ITT Inc. |
$ |
774.6 |
$ |
685.4 |
$ |
89.2 |
13.0 |
% |
$ |
15.7 |
$ |
(46.2 |
) |
$ |
805.1 |
$ |
119.7 |
17.5 |
% |
|||||||||
Motion Technologies |
|
330.4 |
|
323.6 |
|
6.8 |
2.1 |
% |
|
- |
|
(32.3 |
) |
|
362.7 |
|
39.1 |
12.1 |
% |
|||||||||
Industrial Process |
|
280.7 |
|
216.3 |
|
64.4 |
29.8 |
% |
|
15.7 |
|
(9.0 |
) |
|
274.0 |
|
57.7 |
26.7 |
% |
|||||||||
Connect & Control Technologies |
|
164.6 |
|
145.8 |
|
18.8 |
12.9 |
% |
|
- |
|
(4.8 |
) |
|
169.4 |
|
23.6 |
16.2 |
% |
|||||||||
Orders | ||||||||||||||||||||||||||||
ITT Inc. |
$ |
776.2 |
$ |
722.2 |
$ |
54.0 |
7.5 |
% |
$ |
15.4 |
$ |
(47.3 |
) |
$ |
808.1 |
$ |
85.9 |
11.9 |
% |
|||||||||
Motion Technologies |
|
337.4 |
|
325.2 |
|
12.2 |
3.8 |
% |
|
- |
|
(32.9 |
) |
|
370.3 |
|
45.1 |
13.9 |
% |
|||||||||
Industrial Process |
|
271.1 |
|
251.6 |
|
19.5 |
7.8 |
% |
|
15.4 |
|
(9.8 |
) |
|
265.5 |
|
13.9 |
5.5 |
% |
|||||||||
Connect & Control Technologies |
|
168.6 |
|
145.9 |
|
22.7 |
15.6 |
% |
|
- |
|
(4.5 |
) |
|
173.1 |
|
27.2 |
18.6 |
% |
|||||||||
Note: Excludes intercompany eliminations | ||||||||||||||||||||||||||||
Immaterial differences due to rounding |
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||
Reported vs Adjusted Segment Operating Income & Segment Operating Margin | ||||||||||||||||||||||||||||||
Fourth Quarter 2022 & 2021 | ||||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||||
Q4 2022 | Q4 2022 | Q4 2022 | Q4 2021 | Q4 2021 | Q4 2021 | % Change | % Change | |||||||||||||||||||||||
As Reported |
Special Items |
As Adjusted |
As Reported |
Special Items |
As Adjusted |
As Reported 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
|||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Motion Technologies |
$ |
330.4 |
|
$ |
330.4 |
|
$ |
323.6 |
|
$ |
323.6 |
|
2.1 |
% |
2.1 |
% |
||||||||||||||
Industrial Process |
|
280.7 |
|
|
280.7 |
|
|
216.3 |
|
|
216.3 |
|
29.8 |
% |
29.8 |
% |
||||||||||||||
Connect & Control Technologies |
|
164.6 |
|
|
164.6 |
|
|
145.8 |
|
|
145.8 |
|
12.9 |
% |
12.9 |
% |
||||||||||||||
Intersegment eliminations |
|
(1.1 |
) |
|
(1.1 |
) |
|
(0.3 |
) |
|
(0.3 |
) |
||||||||||||||||||
Total Revenue |
$ |
774.6 |
|
$ |
774.6 |
|
$ |
685.4 |
|
$ |
685.4 |
|
13.0 |
% |
13.0 |
% |
||||||||||||||
Operating Margin: | ||||||||||||||||||||||||||||||
Motion Technologies |
|
14.5 |
% |
|
20 |
|
BP |
|
14.7 |
% |
|
19.7 |
% |
|
- |
|
BP |
|
19.7 |
% |
(520 |
) |
BP |
(500 |
) |
BP | ||||
Industrial Process |
|
28.5 |
% |
|
(560 |
) |
BP |
|
22.9 |
% |
|
14.7 |
% |
|
110 |
|
BP |
|
15.8 |
% |
1,380 |
|
BP |
710 |
|
BP | ||||
Connect & Control Technologies |
|
19.2 |
% |
|
- |
|
BP |
|
19.2 |
% |
|
18.4 |
% |
|
- |
|
BP |
|
18.4 |
% |
80 |
|
BP |
80 |
|
BP | ||||
Total Operating Segments |
|
20.6 |
% |
|
(200 |
) |
BP |
|
18.6 |
% |
|
17.9 |
% |
|
30 |
|
BP |
|
18.2 |
% |
270 |
|
BP |
40 |
|
BP | ||||
Operating Income: | ||||||||||||||||||||||||||||||
Motion Technologies |
$ |
47.8 |
|
$ |
0.7 |
|
$ |
48.5 |
|
$ |
63.9 |
|
$ |
(0.2 |
) |
$ |
63.7 |
|
(25.2 |
%) |
(23.9 |
%) |
||||||||
Industrial Process |
|
80.0 |
|
|
(15.8 |
) |
|
64.2 |
|
|
31.9 |
|
|
2.3 |
|
|
34.2 |
|
150.8 |
% |
87.7 |
% |
||||||||
Connect & Control Technologies |
|
31.6 |
|
|
- |
|
|
31.6 |
|
|
26.8 |
|
|
- |
|
|
26.8 |
|
17.9 |
% |
17.9 |
% |
||||||||
Total Segment Operating Income |
$ |
159.4 |
|
$ |
(15.1 |
) |
$ |
144.3 |
|
$ |
122.6 |
|
$ |
2.1 |
|
$ |
124.7 |
|
30.0 |
% |
15.7 |
% |
||||||||
Note: Immaterial differences due to rounding. | ||||||||||||||||||||||||||||||
Special items include, but are not limited to, restructuring, severance costs, acquisition-related expenses, and other unusual or infrequent items. |
ITT Inc. Non-GAAP Reconciliation | |||||||||||||||||||||||||||||
Reported vs. Adjusted Income from Continuing Operations & Adjusted EPS | |||||||||||||||||||||||||||||
Fourth Quarter 2022 & 2021 | |||||||||||||||||||||||||||||
(In Millions, except per share amounts) | |||||||||||||||||||||||||||||
(all amounts unaudited) | |||||||||||||||||||||||||||||
Q4 2022 | Q4 2022 | Q4 2021 | Q4 2021 | $ Change | % Change | ||||||||||||||||||||||||
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Adjusted 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
||||||||||||||||||||||
Segment operating income |
$ |
159.4 |
|
$ |
(15.1 |
) |
#A |
$ |
144.3 |
|
$ |
122.6 |
|
$ |
2.1 |
|
#A |
$ |
124.7 |
|
|||||||||
Corporate and other costs |
|
(8.5 |
) |
|
0.2 |
|
#B |
|
(8.3 |
) |
|
(9.5 |
) |
|
0.1 |
|
#B |
|
(9.4 |
) |
|||||||||
Operating income |
|
150.9 |
|
|
(14.9 |
) |
|
136.0 |
|
|
113.1 |
|
|
2.2 |
|
|
115.3 |
|
|
20.7 |
18.0 |
% |
|||||||
Operating margin |
|
19.5 |
% |
|
17.6 |
% |
|
16.5 |
% |
|
16.8 |
% |
|||||||||||||||||
Interest income (expense), net |
|
(3.1 |
) |
|
- |
|
|
(3.1 |
) |
|
0.4 |
|
|
- |
|
|
0.4 |
|
|||||||||||
Other income (expense), net |
|
(0.5 |
) |
|
- |
|
|
(0.5 |
) |
|
0.1 |
|
|
- |
|
|
0.1 |
|
|||||||||||
Income from continuing operations before tax |
|
147.3 |
|
|
(14.9 |
) |
|
132.4 |
|
|
113.6 |
|
|
2.2 |
|
|
115.8 |
|
|||||||||||
Income tax expense |
|
(31.2 |
) |
|
7.1 |
|
#C |
|
(24.1 |
) |
|
(6.9 |
) |
|
(13.8 |
) |
#C |
|
(20.7 |
) |
|||||||||
Income from continuing operations |
|
116.1 |
|
|
(7.8 |
) |
|
108.3 |
|
|
106.7 |
|
|
(11.6 |
) |
|
95.1 |
|
|||||||||||
Less: Income attributable to noncontrolling interests |
|
0.9 |
|
|
- |
|
|
0.9 |
|
|
3.7 |
|
|
- |
|
|
3.7 |
|
|||||||||||
Income from continuing operations - ITT Inc. |
$ |
115.2 |
|
$ |
(7.8 |
) |
$ |
107.4 |
|
$ |
103.0 |
|
$ |
(11.6 |
) |
$ |
91.4 |
|
|||||||||||
EPS from continuing operations |
$ |
1.39 |
|
$ |
(0.10 |
) |
$ |
1.29 |
|
$ |
1.20 |
|
$ |
(0.14 |
) |
$ |
1.06 |
|
$ |
0.23 |
21.7 |
% |
|||||||
Note: Amounts may not calculate due to rounding. | ||||||||||||||||||||||||||
Total Operating Margin is defined as reported operating income or adjusted operating income divided by total revenue. | ||||||||||||||||||||||||||
Per share amounts are based on diluted weighted average common shares outstanding. | ||||||||||||||||||||||||||
#A - |
2022 includes gain on sale of property ($15.5M) and restructuring costs ($0.4M). |
|||||||||||||||||||||||||
#A - |
2021 includes restructuring costs ($1.5M) and acquisition-related costs ($0.6M). |
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||
#B - |
2022 includes accelerated amortization of an intangible asset ($0.1M) and other costs ($0.1M). |
|||||||||||||||||||||||||
#B - |
2021 includes accelerated amortization of an intangible asset ($0.1M). |
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||
#C - |
2022 includes the net tax expense of special items #A and #B ($4.5M), tax expense on future distribution of foreign earnings ($5.5M), and other tax-related special items, partially offset by tax benefits on return to accrual adjustments ($4.2M). |
|||||||||||||||||||||||||
#C - |
2021 includes the net tax benefit of special items #A and #B ($0.4M), benefit resulting from an uncertain tax position release ($15.3M), audit settlement expense ($9.5M) and other tax-related special items. |
ITT Inc. Non-GAAP Reconciliation |
|||||||||||||||||||||||||||||
Reported vs. Organic Revenue / Orders | |||||||||||||||||||||||||||||
Full Year 2022 & 2021 | |||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
(all amounts unaudited) | |||||||||||||||||||||||||||||
(As Reported - GAAP) | (As Adjusted - Organic) | ||||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) = A-D-E | (G) =C-D-E | (H) = G / B | ||||||||||||||||||||||
$ Change | % Change | Revenue / | $ Change | % Change | |||||||||||||||||||||||||
2022 vs. 2021 |
2022 vs. 2021 |
Acquisitions | FX Impact | Orders | Adj. 2022 vs. 2021 |
Adj. 2022 vs. 2021 |
|||||||||||||||||||||||
12M 2022 |
12M 2021 |
12M 2022 |
12M 2022 |
|
12M 2022 |
||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
ITT Inc. |
$ |
2,987.7 |
$ |
2,765.0 |
$ |
222.7 |
|
8.1 |
% |
$ |
46.5 |
$ |
(160.9 |
) |
$ |
3,102.1 |
$ |
337.1 |
12.2 |
% |
|||||||||
Motion Technologies |
|
1,374.0 |
|
1,368.6 |
|
5.4 |
|
0.4 |
% |
|
- |
|
(114.4 |
) |
|
1,488.4 |
|
119.8 |
8.8 |
% |
|||||||||
Industrial Process |
|
971.0 |
|
843.2 |
|
127.8 |
|
15.2 |
% |
|
46.5 |
|
(28.2 |
) |
|
952.7 |
|
109.5 |
13.0 |
% |
|||||||||
Connect & Control Technologies |
|
645.6 |
|
554.7 |
|
90.9 |
|
16.4 |
% |
|
- |
|
(18.3 |
) |
|
663.9 |
|
109.2 |
19.7 |
% |
|||||||||
Orders | |||||||||||||||||||||||||||||
ITT Inc. |
$ |
3,176.3 |
$ |
2,922.4 |
$ |
253.9 |
|
8.7 |
% |
$ |
43.7 |
$ |
(166.9 |
) |
$ |
3,299.5 |
$ |
377.1 |
12.9 |
% |
|||||||||
Motion Technologies |
|
1,376.6 |
|
1,377.7 |
|
(1.1 |
) |
(0.1 |
%) |
|
- |
|
(114.8 |
) |
|
1,491.4 |
|
113.7 |
8.3 |
% |
|||||||||
Industrial Process |
|
1,101.9 |
|
940.8 |
|
161.1 |
|
17.1 |
% |
|
43.7 |
|
(33.6 |
) |
|
1,091.8 |
|
151.0 |
16.1 |
% |
|||||||||
Connect & Control Technologies |
|
701.3 |
|
605.7 |
|
95.6 |
|
15.8 |
% |
|
- |
|
(18.4 |
) |
|
719.7 |
|
114.0 |
18.8 |
% |
|||||||||
Note: Excludes intercompany eliminations | |||||||||||||||||||||||||||||
Immaterial differences due to rounding |
ITT Inc. Non-GAAP Reconciliation | |||||||||||||||||||||||||||||
Reported vs Adjusted Segment Operating Income & Operating Margin | |||||||||||||||||||||||||||||
Full Year 2022 & 2021 | |||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
(all amounts unaudited) | |||||||||||||||||||||||||||||
|
12M 2022 |
|
|
12M 2022 |
|
|
12M 2022 |
|
|
12M 2021 |
|
|
12M 2021 |
|
12M 2021 |
|
% Change | % Change | |||||||||||
As Reported |
Special Items |
As Adjusted |
As Reported |
Special Items |
As Adjusted |
As Reported 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Motion Technologies |
$ |
1,374.0 |
|
$ |
1,374.0 |
|
$ |
1,368.6 |
|
$ |
1,368.6 |
|
0.4 |
% |
0.4 |
% |
|||||||||||||
Industrial Process |
|
971.0 |
|
|
971.0 |
|
|
843.2 |
|
|
843.2 |
|
15.2 |
% |
15.2 |
% |
|||||||||||||
Connect & Control Technologies |
|
645.6 |
|
|
645.6 |
|
|
554.7 |
|
|
554.7 |
|
16.4 |
% |
16.4 |
% |
|||||||||||||
Intersegment eliminations |
|
(2.9 |
) |
|
(2.9 |
) |
|
(1.5 |
) |
|
(1.5 |
) |
|||||||||||||||||
Total Revenue |
$ |
2,987.7 |
|
$ |
2,987.7 |
|
$ |
2,765.0 |
|
$ |
2,765.0 |
|
8.1 |
% |
8.1 |
% |
|||||||||||||
Operating Margin: | |||||||||||||||||||||||||||||
Motion Technologies |
|
15.2 |
% |
|
50 |
|
BP |
|
15.7 |
% |
|
18.9 |
% |
|
30 |
BP |
|
19.2 |
% |
(370 |
) |
BP |
(350 |
) |
BP | ||||
Industrial Process |
|
19.3 |
% |
|
(50 |
) |
BP |
|
18.8 |
% |
|
15.0 |
% |
|
50 |
BP |
|
15.5 |
% |
430 |
|
BP |
330 |
|
BP | ||||
Connect & Control Technologies |
|
17.9 |
% |
|
- |
|
BP |
|
17.9 |
% |
|
14.7 |
% |
|
50 |
BP |
|
15.2 |
% |
320 |
|
BP |
270 |
|
BP | ||||
Total Operating Segments |
|
17.1 |
% |
|
10 |
|
BP |
|
17.2 |
% |
|
16.9 |
% |
|
30 |
BP |
|
17.2 |
% |
20 |
|
BP |
- |
|
BP | ||||
Operating Income: | |||||||||||||||||||||||||||||
Motion Technologies |
$ |
208.5 |
|
$ |
7.1 |
|
$ |
215.6 |
|
$ |
258.2 |
|
$ |
3.9 |
$ |
262.1 |
|
(19.2 |
%) |
(17.7 |
%) |
||||||||
Industrial Process |
|
187.6 |
|
|
(5.0 |
) |
|
182.6 |
|
|
126.8 |
|
|
3.7 |
|
130.5 |
|
47.9 |
% |
39.9 |
% |
||||||||
Connect & Control Technologies |
|
115.8 |
|
|
- |
|
|
115.8 |
|
|
81.7 |
|
|
2.4 |
|
84.1 |
|
41.7 |
% |
37.7 |
% |
||||||||
Total Segment Operating Income |
$ |
511.9 |
|
$ |
2.1 |
|
$ |
514.0 |
|
$ |
466.7 |
|
$ |
10.0 |
$ |
476.7 |
|
9.7 |
% |
7.8 |
% |
||||||||
Note: Immaterial differences due to rounding. | |||||||||||||||||||||||||||||
Special items include, but are not limited to, restructuring costs, certain asset impairment charges, acquisition-related expenses, and other unusual or infrequent items. |
ITT Inc. Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||
Reported vs. Adjusted Income from Continuing Operations & Adjusted EPS | ||||||||||||||||||||||||||||||
Full Year 2022 & 2021 | ||||||||||||||||||||||||||||||
(In Millions, except per share amounts) | ||||||||||||||||||||||||||||||
(all amounts unaudited) | ||||||||||||||||||||||||||||||
|
12M 2022 |
|
|
12M 2022 |
|
|
12M 2021 |
|
|
12M 2021 |
|
$ Change | % Change | |||||||||||||||||
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Reported |
Non-GAAP Adjustments |
As Adjusted |
As Adjusted 2022 vs. 2021 |
As Adjusted 2022 vs. 2021 |
|||||||||||||||||||||||
Segment operating income |
$ |
511.9 |
|
$ |
2.1 |
|
#A |
$ |
514.0 |
|
$ |
466.7 |
|
$ |
10.0 |
|
#A |
$ |
476.7 |
|
||||||||||
Corporate and other costs |
|
(43.9 |
) |
|
3.7 |
|
#B |
|
(40.2 |
) |
|
37.6 |
|
|
(71.7 |
) |
#B |
|
(34.1 |
) |
||||||||||
Operating income |
|
468.0 |
|
|
5.8 |
|
|
473.8 |
|
|
504.3 |
|
|
(61.7 |
) |
|
442.6 |
|
|
31.2 |
7.0 |
% |
||||||||
Operating margin |
|
15.7 |
% |
|
15.9 |
% |
|
18.2 |
% |
|
16.0 |
% |
||||||||||||||||||
Interest income (expense), net |
|
(6.4 |
) |
|
- |
|
|
(6.4 |
) |
|
1.1 |
|
|
- |
|
|
1.1 |
|
||||||||||||
Other income (expense), net |
|
0.2 |
|
|
- |
|
|
0.2 |
|
|
3.7 |
|
|
(3.4 |
) |
#C |
|
0.3 |
|
|||||||||||
Income from continuing operations before tax |
|
461.8 |
|
|
5.8 |
|
|
467.6 |
|
|
509.1 |
|
|
(65.1 |
) |
|
444.0 |
|
||||||||||||
Income tax expense |
|
(91.1 |
) |
|
(2.6 |
) |
#D |
|
(93.7 |
) |
|
(189.6 |
) |
|
100.8 |
|
#D |
|
(88.8 |
) |
||||||||||
Income from continuing operations |
|
370.7 |
|
|
3.2 |
|
|
373.9 |
|
|
319.5 |
|
|
35.7 |
|
|
355.2 |
|
||||||||||||
Less: Income attributable to noncontrolling interests |
|
2.4 |
|
|
- |
|
|
2.4 |
|
|
4.7 |
|
|
- |
|
|
4.7 |
|
||||||||||||
Income from continuing operations - ITT Inc. |
$ |
368.3 |
|
$ |
3.2 |
|
$ |
371.5 |
|
$ |
314.8 |
|
$ |
35.7 |
|
$ |
350.5 |
|
||||||||||||
EPS from continuing operations |
$ |
4.40 |
|
$ |
0.04 |
|
$ |
4.44 |
|
$ |
3.64 |
|
$ |
0.41 |
|
$ |
4.05 |
|
$ |
0.39 |
9.6 |
% |
||||||||
Note: Amounts may not calculate due to rounding. | ||||||||||||||||
Total Operating Margin is defined as reported operating income or adjusted operating income divided by total revenue. | ||||||||||||||||
Per share amounts are based on diluted weighted average common shares outstanding. | ||||||||||||||||
#A - | 2022 includes gain related to sale of property ($15.5M), unfavorable impacts from the Russia-Ukraine war ($7.9M), restructuring costs ($4.0M), acquisition-related expenses ($3.2M), severance costs ($2.7M) and other income ($0.2M). | |||||||||||||||
#A - | 2021 includes restructuring costs ($9.4M) and acquisition-related costs ($0.6M). | |||||||||||||||
#B - | 2022 includes an asset impairment charge ($1.7M), severance costs ($1.3M), acquisition-related costs ($0.5M), accelerated amortization of an intangible asset ($0.4M), and a restructuring benefit ($0.2M). | |||||||||||||||
#B - | 2021 includes a pre-tax gain on divestiture of asbestos-related assets and liabilities ($88.8M), asbestos-related expense ($14.4M), accelerated amortization of an intangible asset ($2.3M), restructuring costs ($0.2M), and other costs ($0.2M). | |||||||||||||||
#C - | 2021 includes a pre-tax gain related to the finalization of pension termination funding. | |||||||||||||||
#D - | 2022 includes the net tax benefit of special items #A and #B ($0.3M), tax benefit on return to accrual adjustments ($4.6M), and other tax-related special items, partially offset by tax expense related to a write-down of a tax receivable ($2.1M). | |||||||||||||||
#D - | 2021 includes the net tax benefit of special items #A through #C ($5.6M), tax expense on the deferred tax asset write-off resulting from the asbestos sale ($116.9M) and other tax-related special items. |
ITT Inc. Non-GAAP Reconciliation |
||||||||||||||
Free Cash Flow | ||||||||||||||
Three and Twelve Months Ended 2022 & 2021 | ||||||||||||||
(In Millions) | ||||||||||||||
(all amounts unaudited) | ||||||||||||||
Q4 2022 | Q4 2021 |
|
12M 2022 |
|
12M 2021 |
|
||||||||
Net Cash - Operating Activities |
$ |
162.5 |
$ |
119.5 |
$ |
277.7 |
$ |
(8.4 |
) |
|||||
Less: Capital expenditures |
|
30.2 |
|
35.8 |
|
103.9 |
|
88.4 |
|
|||||
Free Cash Flow |
$ |
132.3 |
$ |
83.7 |
$ |
173.8 |
$ |
(96.8 |
) |
|||||
ITT Inc. Non-GAAP Reconciliation | ||||||
GAAP vs. Adjusted EPS Guidance | ||||||
Full Year 2023 | ||||||
(Per share amounts) | ||||||
(all amounts unaudited) | ||||||
2023 Full-Year Guidance | ||||||
Low | High | |||||
EPS from Continuing Operations - GAAP |
$ |
4.38 |
$ |
4.78 |
||
Estimated restructuring, net of tax |
|
0.10 |
|
0.10 |
||
Other tax special Items |
|
0.07 |
|
0.07 |
||
EPS from Continuing Operations - Adjusted |
$ |
4.55 |
$ |
4.95 |
||
Note: |
The Company has provided forward-looking non-GAAP financial measures for organic revenue growth and adjusted segment operating margin. It is not possible, without unreasonable efforts, to estimate the impacts of foreign currency fluctuations, acquisitions and certain other special items that may occur in 2023 as these items are inherently uncertain and difficult to predict. As a result, the Company is unable to quantify certain amounts that would be included in a reconciliation of organic revenue growth and adjusted segment operating margin to the most directly comparable GAAP financial measures without unreasonable efforts and has not provided reconciliations for these forward looking non-GAAP financial measures. |
ITT Inc. Non-GAAP Reconciliation |
|||||||||
Free Cash Flow and Free Cash Flow Margin Guidance | |||||||||
Full Year 2023 | |||||||||
(In Millions) | |||||||||
(all amounts unaudited) | |||||||||
2023 Full-Year Guidance | |||||||||
Low | High | ||||||||
Net Cash - Operating Activities |
$ |
470 |
|
$ |
520 |
|
|||
Less: Capital expenditures |
|
120 |
|
|
120 |
|
|||
Free Cash Flow |
$ |
350 |
|
$ |
400 |
|
|||
Revenue #A |
$ |
3,225 |
|
$ |
3,225 |
|
|||
Free Cash Flow margin |
|
11 |
% |
|
12 |
% |
|||
#A Represents expected revenue growth of 8%, reflecting the midpoint of the 7% to 9% range. |
Investor Contact
Mark Macaluso
+1 914-641-2064
mark.macaluso@itt.com
Media Contact
Kellie Harris
+1 914-641-2103
kellie.harris@itt.com