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0001477294false00014772942024-04-292024-04-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
 __________________________________________
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2024
 
__________________________________________ 
SENSATA TECHNOLOGIES HOLDING PLC
(Exact name of Registrant as specified in its charter)
 
 __________________________________________
England and Wales   001-34652   98-1386780
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

529 Pleasant Street
Attleboro, Massachusetts 02703, United States
(Address of Principal executive offices, including Zip Code)
+1(508) 236 3800
(Registrant's telephone number, including area code) 
Not Applicable
(Former name or former address, if changed since last report)
 
 __________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of exchange on which registered
Ordinary Shares - nominal value €0.01 per share ST New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o On April 29, 2024, Sensata Technologies Holding plc (the "Company") issued a press release announcing its financial results for the first quarter ended March 31, 2024.



Item 2.02 Results of Operations and Financial Condition.
The press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
The Company will conduct a conference call on April 29, 2024 at 4:30 PM eastern time to discuss its first quarter 2024 financial results and its outlook for the second quarter of 2024. The dial in numbers for the call are 1-844-784-1726 or 1-412-380-7411. Callers should reference the "Sensata Q1 2024 Financial Results Conference Call." A live webcast of the conference call will also be available on the investor relations page of the Company’s website at http://investors.sensata.com. Additional information relating to the Company's financial results will be contained in a presentation that will be referenced during the webcast, and that is being made available on the investor relations page of the Company’s website. Additionally, a replay of the call will be available until May 6, 2024. To access the replay, dial 1-877-344-7529 or 1-412-317-0088 and enter confirmation code: 2357389.
The information contained in, or incorporated into, this Current Report on Form 8-K is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1
104 Cover Page Interactive Data File (embedded within inline XBRL document)
2



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SENSATA TECHNOLOGIES HOLDING PLC
/s/ Brian Roberts
Date: April 29, 2024 Name: Brian Roberts
Title: Executive Vice President and Chief Financial Officer


3
EX-99.1 2 q124pressrelease.htm EX 99.1 - PRESS RELEASE Document

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SENSATA TECHNOLOGIES REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

Swindon, United Kingdom – April 29, 2024 - Sensata Technologies (NYSE: ST), a global industrial technology company and leading provider of sensors, sensor-rich solutions and electrical protection devices used in mission-critical systems that create valuable business insights for customers, today announced financial results for its first quarter ended March 31, 2024.

“We are pleased to report a solid start to 2024, with first quarter revenue and adjusted operating margins towards the high end of our guidance range,” said Jeff Cote, CEO and President of Sensata. "We are the trusted electrification partner of choice as evidenced by more than $1.3 billion in electrification wins during the past three years and our safe and efficient capabilities remain a durable, proven, and profitable business driving value for our shareholders."
Operating Results - First Quarter
Operating results for the first quarter of 2024 compared to the first quarter of 2023 are summarized below. These results include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in this press release.
Revenue:
•Revenue was $1,006.7 million, an increase of $8.5 million, or 0.9%, compared to $998.2 million in the first quarter of 2023.
•On a constant currency basis, revenue increased 2.3% as compared to the first quarter of 2023.
Operating income:
•Operating income was $144.8 million, or 14.4% of revenue, a decrease of $4.1 million, or 2.7%, compared to operating income of $148.8 million, or 14.9% of revenue, in the first quarter of 2023.
•Adjusted operating income was $188.5 million, or 18.7% of revenue ($197.6 million or 19.4% of revenue on a constant currency basis), a decrease of $4.4 million, or 2.3%, compared to adjusted operating income of $192.9 million, or 19.3% of revenue, in the first quarter of 2023.
Earnings per share:
•Earnings per share was $0.50, a decrease of $0.06, or 10.7%, compared to earnings per share of $0.56 in the first quarter of 2023.
•Adjusted earnings per share was $0.89, a decrease of $0.03, or 3.3% ($0.93 or an increase of 1.1% on a constant currency basis), compared to adjusted earnings per share of $0.92 in the first quarter of 2023.
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Sensata generated $106.5 million of operating cash flow in the first quarter of 2024, compared to $96.9 million in the prior year period. Sensata's free cash flow totaled $64.4 million in the first quarter of 2024, compared to $60.0 million in the prior year period.
During the first quarter of 2024, Sensata returned approximately $28.1 million to shareholders, including $18.1 million through its quarterly dividend of $0.12 per share paid on February 28, 2024, and approximately $10.1 million of shares repurchased.
Guidance
For the second quarter of 2024, Sensata expects revenue of $1,025 to $1,055 million and adjusted EPS of $0.89 to $0.95.
Q2-2024 Guidance
$ in millions, except EPS
Q2-24 Guidance
Q2-23 Y/Y Change
Revenue
$1,025 - $1,055
$1,062.1
(3%) - (1%)
organic growth
(2%) - 1%
Adjusted Operating Income
$192 - $202
$205.7
(7%) - (2%)
Adjusted Net Income
$134 - $144
$149.2
(10%) - (4%)
Adjusted EPS
$0.89 - $0.95
$0.97
(8%) - (2%)
Versus the prior year period, Sensata expects that changes in foreign currency exchange rates will decrease revenue by approximately $13 million at the midpoint and decrease adjusted EPS by approximately $0.02 at the midpoint in the second quarter of 2024.
Conference Call and Webcast
Sensata will conduct a conference call today at 4:30 p.m. Eastern Time to discuss its first quarter 2024 financial results and its outlook for the second quarter of 2024. The dial-in numbers for the call are 1-844-784-1726 or 1-412-380-7411. Callers should reference the "Sensata Q1 2024 Financial Results Conference Call." A live webcast of the conference call will also be available on the investor relations page of Sensata’s website at http://investors.sensata.com. Additionally, a replay of the call will be available until May 6, 2024. To access the replay, dial 1-877-344-7529 or 1-412-317-0088 and enter confirmation code: 2357389.
About Sensata Technologies
Sensata Technologies is a global industrial technology company striving to create a cleaner, more efficient, electrified and connected world. Through its broad portfolio of sensors, electrical protection components and sensor-rich solutions which create valuable business insights, Sensata helps its customers address increasingly complex engineering and operating performance requirements. With more than 21,000 employees and global operations in 16 countries, Sensata serves customers in the automotive, heavy vehicle & off-road, industrial, and aerospace markets. Learn more at www.sensata.com and follow Sensata on LinkedIn, Facebook, X and Instagram.
Non-GAAP Financial Measures
We supplement the reporting of our financial information determined in accordance with U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measures. We use these non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance, and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures is useful for period-over-period comparisons of underlying business trends and our ongoing business performance.
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We also believe presenting these non-GAAP measures provides additional transparency into how management evaluates the business.
Non-GAAP financial measures should be considered as supplemental in nature and are not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, our non-GAAP financial measures may not be the same as, or comparable to, similar non-GAAP measures presented by other companies.
The non-GAAP financial measures referenced by Sensata in this release include: adjusted net income, adjusted earnings per share (“EPS”), adjusted operating income, adjusted operating margin, free cash flow, organic revenue growth, market outgrowth, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), net debt, and net leverage ratio. We also refer to changes in certain non-GAAP measures, usually reported either as a percentage or number of basis points, between two periods. Such changes are also considered non-GAAP measures.
Adjusted net income (or loss) is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are detailed in the accompanying reconciliation tables. Adjusted EPS is calculated by dividing adjusted net income (or loss) by the number of diluted weighted-average ordinary shares outstanding in the period. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Adjusted operating income (or loss) is defined as operating income (or loss), determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are detailed in the accompanying reconciliation tables. Adjusted operating margin is calculated by dividing adjusted operating income (or loss) by net revenue. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Free cash flow is defined as net cash provided by/(used in) operating activities less additions to property, plant and equipment and capitalized software. We believe that this measure is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to fund acquisitions, repurchase ordinary shares, or for the accelerated repayment of debt obligations.
Organic revenue growth (or decline) is defined as the reported percentage change in net revenue calculated in accordance with U.S. GAAP, excluding the period-over-period impact of foreign exchange rate differences as well as the net impact of material acquisitions and divestitures for the 12-month period following the respective transaction date(s). We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Adjusted EBITDA is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense, net, provision for (or benefit from) income taxes, depreciation expense, amortization of intangible assets, and the following non-GAAP adjustments, if applicable: (1) restructuring related and other, (2) financing and other transaction costs, and (3) deferred gain or loss on derivative instruments. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Gross leverage ratio is defined as gross debt divided by last twelve months (LTM) adjusted EBITDA. We believe that gross leverage ratio is a useful measure to management and investors in understanding trends in our overall financial condition.
3


Net debt is defined as total debt, finance lease, and other financing obligations less cash and cash equivalents. We believe net debt is a useful measure to management and investors in understanding trends in our overall financial condition.
Net leverage ratio is defined as net debt divided by last twelve months (LTM) adjusted EBITDA. We believe the net leverage ratio is a useful measure to management and investors in understanding trends in our overall financial condition.
In discussing trends in our performance, we may refer to certain non-GAAP financial measures or the percentage change of certain non-GAAP financial measures in one period versus another, calculated on a constant currency basis. Constant currency is determined by stating revenues and expenses at prior period foreign currency exchange rates and excludes the impact of foreign currency exchange rates on all hedges and, as applicable, net monetary assets. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

4


Safe Harbor Statement
This earnings release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as "may," "will," "could," "should," "expect," "anticipate," "believe," "estimate," "predict," "project," "forecast," "continue," "intend," "plan," "potential," "opportunity," "guidance," and similar terms or phrases. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business and market outlook, megatrends, priorities, growth, shareholder value, capital expenditures, cash flows, demand for products and services, share repurchases, and Sensata’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. These statements are subject to risks, uncertainties, and other important factors relating to our operations and business environment, and we can give no assurances that these forward-looking statements will prove to be correct.
A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements, including, but not limited to, risks related to public health crises, instability and changes in the global markets, supplier interruption or non-performance, the acquisition or disposition of businesses, adverse conditions or competition in the industries upon which we are dependent, intellectual property, product liability, warranty, and recall claims, market acceptance of new product introductions and product innovations, labor disruptions or increased labor costs, and changes in existing environmental or safety laws, regulations, and programs.
Investors and others should carefully consider the foregoing factors and other uncertainties, risks, and potential events including, but not limited to, those described in Item 1A: Risk Factors in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A: Risk Factors in our quarterly reports on Form 10-Q or other subsequent filings with the United States Securities and Exchange Commission. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.
5


SENSATA TECHNOLOGIES HOLDING PLC
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
For the three months ended March 31,
2024 2023
Net revenue $ 1,006,709  $ 998,175 
Operating costs and expenses:
Cost of revenue 689,260  670,471 
Research and development 45,314  45,939 
Selling, general and administrative 88,046  86,150 
Amortization of intangible assets 38,515  40,774 
Restructuring and other charges, net 782  5,999 
Total operating costs and expenses 861,917  849,333 
Operating income 144,792  148,842 
Interest expense (38,395) (48,791)
Interest income 3,738  8,700 
Other, net (11,544) 1,392 
Income before taxes 98,591  110,143 
Provision for income taxes 22,570  23,726 
Net income $ 76,021  $ 86,417 
Net income per share:
Basic $ 0.51  $ 0.57 
Diluted $ 0.50  $ 0.56 
Weighted-average ordinary shares outstanding:
Basic 150,480  152,518 
Diluted 150,921  153,324 
6


SENSATA TECHNOLOGIES HOLDING PLC
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31,
2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents $ 460,359  $ 508,104 
Accounts receivable, net of allowances 760,092  744,129 
Inventories 720,628  713,485 
Prepaid expenses and other current assets 157,441  136,686 
Total current assets 2,098,520  2,102,404 
Property, plant and equipment, net 883,851  886,010 
Goodwill 3,542,725  3,542,770 
Other intangible assets, net 845,555  883,671 
Deferred income tax assets 127,491  131,527 
Other assets 117,808  134,605 
Total assets $ 7,615,950  $ 7,680,987 
Liabilities and shareholders' equity
Current liabilities:
Current portion of long-term debt, finance lease and other financing obligations $ 2,340  $ 2,276 
Accounts payable 469,342  482,301 
Income taxes payable 33,762  32,139 
Accrued expenses and other current liabilities 288,525  307,002 
Total current liabilities 793,969  823,718 
Deferred income tax liabilities 361,172  359,073 
Pension and other post-retirement benefit obligations 38,053  38,178 
Finance lease and other financing obligations, less current portion 22,587  22,949 
Long-term debt, net 3,375,511  3,373,988 
Other long-term liabilities 49,824  66,805 
Total liabilities 4,641,116  4,684,711 
Total shareholders' equity 2,974,834  2,996,276 
Total liabilities and shareholders' equity $ 7,615,950  $ 7,680,987 
7


SENSATA TECHNOLOGIES HOLDING PLC
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
For the three months ended March 31,
2024 2023
Cash flows from operating activities:
Net income $ 76,021  $ 86,417 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 33,523  30,948 
Amortization of debt issuance costs 1,562  1,734 
Gain on sale of business —  (5,877)
Share-based compensation 8,133  7,206 
Loss on debt financing —  485 
Amortization of intangible assets 38,515  40,774 
Deferred income taxes 2,574  6,491 
Loss on equity investments, net 13,287  — 
Unrealized (gain)/loss on derivative instruments and other (4,184) 3,107 
Changes in operating assets and liabilities, net of effects of acquisitions (62,944) (71,397)
Acquisition-related compensation payments —  (3,000)
Net cash provided by operating activities 106,487  96,888 
Cash flows from investing activities:
Additions to property, plant and equipment and capitalized software (42,130) (36,882)
Proceeds from the sale of business, net of cash sold —  14,000 
Net cash used in investing activities (42,130) (22,882)
Cash flows from financing activities:
Proceeds from exercise of stock options and issuance of ordinary shares —  2,762 
Payment of employee restricted stock tax withholdings (129) (123)
Payments on debt (279) (250,944)
Dividends paid (18,056) (16,777)
Payments to repurchase ordinary shares (10,052) — 
Purchase of noncontrolling interest in joint venture (79,393) — 
Payments of debt financing costs (39) (308)
Net cash used in financing activities (107,948) (265,390)
Effect of exchange rate changes on cash and cash equivalents (4,154) — 
Net change in cash and cash equivalents (47,745) (191,384)
Cash and cash equivalents, beginning of period 508,104  1,225,518 
Cash and cash equivalents, end of period $ 460,359  $ 1,034,134 
8


Segment Performance
For the three months ended March 31,
$ in 000s 2024 2023
Performance Sensing (1)
Revenue $ 713,318  $ 667,762 
Operating income $ 185,132  $ 169,066 
% of Performance Sensing revenue 26.0  % 25.3  %
Sensing Solutions
Revenue $ 257,839  $ 283,450 
Operating income $ 72,479  $ 84,020 
% of Sensing Solutions revenue 28.1  % 29.6  %
Other (1)
Revenue $ 35,552  $ 46,963 
Operating income $ 6,781  $ 4,970 
% of Other revenue 19.1  % 10.6  %
(1)    In the first quarter of 2024, we moved Insights from Performance Sensing, creating another operating segment, which is reported in "Other". We recast Performance Sensing to exclude Insights. Prior year amounts in the above table have been recast to reflect this realignment, which was effective as of January 1, 2024.
9


Revenue by Business, Geography, and End Market (Unaudited)
(percent of total revenue) For the three months ended March 31,
2024 2023
Performance Sensing (1)
70.9  % 66.9  %
Sensing Solutions 25.6  % 28.4  %
Other (1)
3.5  % 4.7  %
Total 100.0  % 100.0  %
(percent of total revenue) For the three months ended March 31,
2024 2023
Americas 42.6  % 45.3  %
Europe 28.3  % 27.2  %
Asia/Rest of World 29.1  % 27.5  %
Total 100.0  % 100.0  %
(percent of total revenue) For the three months ended March 31,
2024 2023
Automotive 55.9  % 52.6  %
Heavy vehicle and off-road(1)
18.8  % 17.5  %
Industrial 12.4  % 14.9  %
Appliance and HVAC 4.7  % 4.8  %
Aerospace 4.6  % 4.4  %
All other (1)
3.6  % 5.8  %
Total 100.0  % 100.0  %
(1)    Effective January 1, 2024 we moved Insights from the Heavy vehicle off-road operating segment within Performance Sensing, creating another operating segment, which is reported in "Other". Additionally, we moved the Insights business to the "other" end market. Prior year information in the tables above has been recast to reflect this realignment.
10


GAAP to Non-GAAP Reconciliations
The following unaudited tables provide a reconciliation of the difference between each of the non-GAAP financial measures referenced herein and the most directly comparable U.S. GAAP financial measure. Amounts presented in these tables may not appear to recalculate due to the effect of rounding.
Operating income and margin, income tax, net income, and earnings per share
($ in thousands, except per share amounts) For the three months ended March 31, 2024
Operating Income Operating Margin Income Taxes Net Income Diluted EPS
Reported (GAAP) $ 144,792  14.4  % $ 22,570  $ 76,021  $ 0.50 
Non-GAAP adjustments:
Restructuring related and other 2,394  0.2  % (575) 1,819  0.01 
Financing and other transaction costs (1)
4,351  0.4  % 110  17,748  0.12 
Step-up depreciation and amortization 37,378  3.7  % —  37,378  0.25 
Deferred gain on derivative instruments (375) (0.0  %) 282  (1,192) (0.01)
Amortization of debt issuance costs —  —  % —  1,562  0.01 
Deferred taxes and other tax related —  —  % 1,286  1,286  0.01 
Total adjustments 43,748  4.3  % 1,103  58,601  0.39 
Adjusted (non-GAAP) $ 188,540  18.7  % $ 21,467  $ 134,622  $ 0.89 
(1)    Includes a $14.8 million mark-to-market loss on an equity investment held under the measurement alternative due to an observable marketplace transaction. This loss is presented in other, net on the condensed consolidated statement of operations
($ in thousands, except per share amounts) For the three months ended March 31, 2023
Operating Income Operating Margin Income Tax Net Income Diluted EPS
Reported (GAAP) $ 148,842  14.9  % $ 23,726  $ 86,417  $ 0.56 
Non-GAAP adjustments:
Restructuring related and other 2,941  0.3  % (672) 2,269  0.01 
Financing and other transaction costs 4,248  0.4  % 2,874  7,607  0.05 
Step-up depreciation and amortization 39,130  3.9  % —  39,130  0.26 
Deferred gain on derivative instruments (2,250) (0.2  %) 853  (3,296) (0.02)
Amortization of debt issuance costs —  —  % —  1,734  0.01 
Deferred taxes and other tax related —  —  % 6,791  6,791  0.04 
Total adjustments 44,069  4.4  % 9,846  54,235  0.35 
Adjusted (non-GAAP) $ 192,911  19.3  % $ 13,880  $ 140,652  $ 0.92 
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Non-GAAP adjustments by location in statements of operations
(in thousands) For the three months ended March 31,
2024 2023
Cost of revenue $ 1,154  $ (2,778)
Selling, general and administrative 4,685  1,772 
Amortization of intangible assets 37,127  39,076 
Restructuring and other charges, net 782  5,999 
Operating income adjustments 43,748  44,069 
Interest expense, net 1,562  1,734 
Other, net (1)
12,188  (1,414)
Provision for income taxes 1,103  9,846 
Net income adjustments $ 58,601  $ 54,235 
(1)    The three months ended March 31, 2024 includes a $14.8 million mark-to-market loss on an equity investment held under the measurement alternative due to an observable marketplace transactions.
Free cash flow
For the three months ended March 31,
($ in thousands) 2024 2023 % △
Net cash provided by operating activities $ 106,487  $ 96,888  9.9  %
Additions to property, plant and equipment and capitalized software (42,130) (36,882) (14.2  %)
Free cash flow $ 64,357  $ 60,006  7.3  %

Adjusted corporate and other expenses
For the three months ended March 31,
(in thousands) 2024 2023
Corporate and other expenses (GAAP) $ (80,303) $ (62,441)
Restructuring related and other 2,567  (1,429)
Financing and other transaction costs 3,396  2,619 
Step-up depreciation and amortization 251  54 
Deferred gain on derivative instruments (375) (2,250)
Total adjustments 5,839  (1,006)
Adjusted corporate and other expenses (non-GAAP) $ (74,464) $ (63,447)
12


Adjusted EBITDA
For the three months ended March 31,
(in thousands) LTM 2024 2023
Net income $ (14,305) $ 76,021  $ 86,417 
Interest expense, net 145,426  34,657  40,091 
Provision for income taxes 20,595  22,570  23,726 
Depreciation expense 135,680  33,523  30,948 
Amortization of intangible assets 171,601  38,515  40,774 
EBITDA 458,997  205,286  221,956 
Non-GAAP Adjustments
Restructuring related and other 410,947  2,394  2,941 
Financing and other transaction costs 34,397  17,638  4,733 
Deferred loss/(gain) on derivative instruments 669  (1,474) (4,149)
Adjusted EBITDA $ 905,010  $ 223,844  $ 225,481 
Net debt and leverage
As of
($ in thousands) March 31,
2024
December 31, 2023
Current portion of long-term debt and finance lease obligations $ 2,340  $ 2,276 
Finance lease obligations, less current portion 22,587  22,949 
Long-term debt, net 3,375,511  3,373,988 
Total debt and finance lease obligations 3,400,438  3,399,213 
Less: discount, net of premium (1,230) (1,568)
Less: deferred financing costs (23,259) (24,444)
Total gross indebtedness 3,424,927  3,425,225 
Adjusted EBITDA (LTM) $ 905,010  $ 906,647 
Gross leverage ratio 3.8  3.8 
Total gross indebtedness 3,424,927  3,425,225 
Less: cash and cash equivalents 460,359  508,104 
Net debt $ 2,964,568  $ 2,917,121 
Adjusted EBITDA (LTM) $ 905,010  $ 906,647 
Net leverage ratio 3.3 3.2

13


Guidance
For the three months ending June 30, 2024
($ in millions, except per share amounts) Operating Income Net Income EPS
Low High Low High Low High
GAAP $ 140.5  $ 145.0  $ 77.0  $ 80.3  $ 0.50  $ 0.53 
Restructuring related and other 12.0  15.0  12.0  15.0  0.08  0.10 
Financing and other transaction costs 2.5  4.0  2.5  4.0  0.02  0.03 
Step-up depreciation and amortization 37.0  38.0  37.0  38.0  0.24  0.25 
Deferred (gain)/loss on derivative instruments(1)
—  —  —  —  —  — 
Amortization of debt issuance costs —  —  1.5  1.7  0.01  0.01 
Deferred taxes and other tax related —  —  4.0  5.0  0.03  0.03 
Non-GAAP $ 192.0  $ 202.0  $ 134.0  $ 144.0  $ 0.89  $ 0.95 
Weighted-average diluted shares outstanding (in millions) 151.3 151.3
(1)    We are unable to predict movements in commodity prices and, therefore, the impact of mark-to-market adjustments on our commodity forward contracts to our projected operating results. In prior periods such adjustments have been significant to our reported GAAP earnings.

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Media & Investor Contact:
Alexia Taxiarchos
(508) 236-1761
ataxiarchos@sensata.com
investors@sensata.com
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