Ireland | 98-1391970 | |||||||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification number) |
☐ | 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 | Name of each exchange on which registered | ||||||
Ordinary Shares, nominal value $0.01 per share | NVT | New York Stock Exchange |
(a) | Financial Statements of Businesses Acquired | |||||||
Not applicable. |
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(b) | Pro Forma Financial Information | |||||||
Not applicable. |
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(c) | Shell Company Transactions | |||||||
Not applicable. |
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(d) | Exhibits |
Exhibit | Description | |||||||
nVent Electric plc press release dated May 3, 2024 announcing earnings results for the first quarter of 2024. |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
nVent Electric plc | ||||||||
Registrant | ||||||||
By | /s/ Sara E. Zawoyski | |||||||
Sara E. Zawoyski | ||||||||
Executive Vice President and Chief Financial Officer |
nVent Electric plc | |||||||||||
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | % / point change |
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Net Sales | $875 | $741 | 18% | ||||||||
Organic | 5% | ||||||||||
Operating Income | $159 | $124 | 28% | ||||||||
Reported ROS | 18.2% | 16.8% | 140 bps | ||||||||
Segment Income | $192 | $148 | 30% | ||||||||
Adjusted ROS | 22.0% | 20.0% | 200 bps |
Enclosures | |||||||||||
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | % / point change |
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Net Sales | $440 | $391 | 13% | ||||||||
Organic | 11% | ||||||||||
ROS | 21.6% | 21.1% | 50 bps |
Electrical & Fastening Solutions | |||||||||||
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | % / point change |
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Net Sales | $292 | $206 | 42% | ||||||||
Organic | -3% | ||||||||||
ROS | 29.2% | 29.8% | -60 bps |
Thermal Management | |||||||||||
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | % / point change |
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Net Sales | $143 | $144 | -1% | ||||||||
Organic | -1% | ||||||||||
ROS | 22.3% | 21.5% | 80 bps |
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||
Three months ended | ||||||||
In millions, except per share data | March 31, 2024 |
March 31, 2023 |
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Net sales | $ | 874.6 | $ | 740.6 | ||||
Cost of goods sold | 519.1 | 437.4 | ||||||
Gross profit | 355.5 | 303.2 | ||||||
% of net sales | 40.6 | % | 40.9 | % | ||||
Selling, general and administrative | 175.5 | 162.4 | ||||||
% of net sales | 20.1 | % | 21.9 | % | ||||
Research and development | 20.8 | 16.7 | ||||||
% of net sales | 2.4 | % | 2.3 | % | ||||
Operating income | 159.2 | 124.1 | ||||||
% of net sales | 18.2 | % | 16.8 | % | ||||
Net interest expense | 22.2 | 7.8 | ||||||
Other expense | 1.2 | 1.2 | ||||||
Income before income taxes |
135.8 | 115.1 | ||||||
Provision for income taxes | 30.7 | 21.3 | ||||||
Effective tax rate | 22.6 | % | 18.5 | % | ||||
Net income | $ | 105.1 | $ | 93.8 | ||||
Earnings per ordinary share | ||||||||
Basic | $ | 0.64 | $ | 0.57 | ||||
Diluted | $ | 0.62 | $ | 0.56 | ||||
Weighted average ordinary shares outstanding | ||||||||
Basic | 165.5 | 165.3 | ||||||
Diluted | 168.5 | 168.0 | ||||||
Cash dividends paid per ordinary share | $ | 0.19 | $ | 0.175 |
nVent Electric plc | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
March 31, 2024 |
December 31, 2023 |
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In millions | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 211.4 | $ | 185.1 | ||||
Accounts and notes receivable, net | 591.5 | 589.5 | ||||||
Inventories | 441.1 | 441.3 | ||||||
Other current assets | 129.9 | 120.2 | ||||||
Total current assets | 1,373.9 | 1,336.1 | ||||||
Property, plant and equipment, net | 383.5 | 390.0 | ||||||
Other assets | ||||||||
Goodwill | 2,571.2 | 2,571.1 | ||||||
Intangibles, net | 1,489.6 | 1,517.0 | ||||||
Other non-current assets | 351.5 | 347.5 | ||||||
Total other assets | 4,412.3 | 4,435.6 | ||||||
Total assets | $ | 6,169.7 | $ | 6,161.7 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt and short-term borrowings | $ | 33.8 | $ | 31.9 | ||||
Accounts payable | 263.2 | 275.7 | ||||||
Employee compensation and benefits | 95.3 | 122.2 | ||||||
Other current liabilities | 298.0 | 303.8 | ||||||
Total current liabilities | 690.3 | 733.6 | ||||||
Other liabilities | ||||||||
Long-term debt | 1,739.8 | 1,748.8 | ||||||
Pension and other post-retirement compensation and benefits | 149.1 | 153.0 | ||||||
Deferred tax liabilities | 202.3 | 204.4 | ||||||
Other non-current liabilities | 175.9 | 179.8 | ||||||
Total liabilities | 2,957.4 | 3,019.6 | ||||||
Equity | 3,212.3 | 3,142.1 | ||||||
Total liabilities and equity | $ | 6,169.7 | $ | 6,161.7 |
nVent Electric plc | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Three months ended | ||||||||
In millions | March 31, 2024 |
March 31, 2023 |
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Operating activities | ||||||||
Net income | $ | 105.1 | $ | 93.8 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities |
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Depreciation | 14.4 | 11.1 | ||||||
Amortization | 25.2 | 17.6 | ||||||
Deferred income taxes | (0.2) | 0.6 | ||||||
Share-based compensation | 6.6 | 5.7 | ||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts and notes receivable | (6.1) | 20.8 | ||||||
Inventories | (7.9) | (17.3) | ||||||
Other current assets | (12.1) | (13.5) | ||||||
Accounts payable | (5.4) | (7.6) | ||||||
Employee compensation and benefits | (26.1) | (30.2) | ||||||
Other current liabilities | (3.3) | (9.3) | ||||||
Other non-current assets and liabilities | (0.2) | (2.3) | ||||||
Net cash provided by (used for) operating activities | 90.0 | 69.4 | ||||||
Investing activities | ||||||||
Capital expenditures | (16.1) | (17.1) | ||||||
Proceeds from sale of property and equipment | 0.3 | 0.2 | ||||||
Net cash provided by (used for) investing activities | (15.8) | (16.9) | ||||||
Financing activities | ||||||||
Repayments of long-term debt | (7.5) | (3.8) | ||||||
Dividends paid | (31.9) | (29.3) | ||||||
Shares issued to employees, net of shares withheld | (0.8) | (2.5) | ||||||
Repurchases of ordinary shares | — | (15.2) | ||||||
Net cash provided by (used for) financing activities | (40.2) | (50.8) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (7.7) | 3.9 | ||||||
Change in cash and cash equivalents | 26.3 | 5.6 | ||||||
Cash and cash equivalents, beginning of period | 185.1 | 297.5 | ||||||
Cash and cash equivalents, end of period | $ | 211.4 | $ | 303.1 |
nVent Electric plc | |||||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | |||||||||||
2024 | 2023 | ||||||||||
In millions | First Quarter |
First Quarter |
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Net sales | |||||||||||
Enclosures | $ | 439.9 | $ | 391.0 | |||||||
Electrical & Fastening Solutions | 292.2 | 205.7 | |||||||||
Thermal Management | 142.5 | 143.9 | |||||||||
Total | $ | 874.6 | $ | 740.6 | |||||||
Segment income (loss) | |||||||||||
Enclosures | $ | 94.8 | $ | 82.5 | |||||||
Electrical & Fastening Solutions | 85.2 | 61.3 | |||||||||
Thermal Management | 31.8 | 30.9 | |||||||||
Other | (19.5) | (26.7) | |||||||||
Total | $ | 192.3 | $ | 148.0 | |||||||
Return on sales | |||||||||||
Enclosures | 21.6 | % | 21.1 | % | |||||||
Electrical & Fastening Solutions | 29.2 | % | 29.8 | % | |||||||
Thermal Management | 22.3 | % | 21.5 | % | |||||||
Total | 22.0 | % | 20.0 | % |
nVent Electric plc | ||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2024 | ||||||||||||||
excluding the effect of adjustments (Unaudited) | ||||||||||||||
Actual | Forecast (1) |
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In millions, except per share data | First Quarter |
Second Quarter |
Full Year | |||||||||||
Net sales | $ | 874.6 | ||||||||||||
Operating income | 159.2 | |||||||||||||
% of net sales | 18.2 | % | ||||||||||||
Adjustments: | ||||||||||||||
Restructuring and other | $ | 1.3 | ||||||||||||
Acquisition transaction and integration costs | 6.6 | |||||||||||||
Intangible amortization | 25.2 | |||||||||||||
Segment income | $ | 192.3 | ||||||||||||
Return on sales | 22.0 | % | ||||||||||||
Net income - as reported | $ | 105.1 | $ | 120 | $ | 468 | ||||||||
Adjustments to operating income | 33.1 | 24 | 105 | |||||||||||
Income tax adjustments | (8.1) | (6) | (24) | |||||||||||
Net income - as adjusted | $ | 130.1 | $ | 138 | $ | 549 | ||||||||
Diluted earnings per ordinary share | ||||||||||||||
Diluted earnings per ordinary share - as reported | $ | 0.62 | $ 0.70 - 0.72 | $ 2.74 - 2.82 | ||||||||||
Adjustments | 0.15 | 0.11 | 0.48 | |||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.77 | $ 0.81 - 0.83 | $ 3.22 - 3.30 | ||||||||||
(1) Forecast information represents an approximation |
nVent Electric plc | |||||||||||||||||
Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2023 | |||||||||||||||||
excluding the effect of 2023 adjustments (Unaudited) | |||||||||||||||||
Actual | |||||||||||||||||
In millions, except per share data | First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full Year |
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Net sales | $ | 740.6 | $ | 803.0 | $ | 858.8 | $ | 861.2 | $ | 3,263.6 | |||||||
Operating income | 124.1 | 146.7 | 156.2 | 160.4 | 587.4 | ||||||||||||
% of net sales | 16.8 | % | 18.3 | % | 18.2 | % | 18.6 | % | 18.0 | % | |||||||
Adjustments: | |||||||||||||||||
Restructuring and other | 4.0 | 2.5 | 5.4 | 0.9 | 12.8 | ||||||||||||
Acquisition transaction and integration costs | 2.3 | 4.9 | 3.0 | 2.8 | 13.0 | ||||||||||||
Intangible amortization | 17.6 | 21.3 | 25.6 | 25.2 | 89.7 | ||||||||||||
Inventory step-up amortization | — | 5.9 | 11.8 | — | 17.7 | ||||||||||||
Segment income | $ | 148.0 | $ | 181.3 | $ | 202.0 | $ | 189.3 | $ | 720.6 | |||||||
Return on sales | 20.0 | % | 22.6 | % | 23.5 | % | 22.0 | % | 22.1 | % | |||||||
Net income - as reported | $ | 93.8 | $ | 112.9 | $ | 105.5 | $ | 254.9 | $ | 567.1 | |||||||
Adjustments to operating income | 23.9 | 34.6 | 45.8 | 28.9 | 133.2 | ||||||||||||
Pension and post-retirement mark-to-market loss | — | — | — | 13.9 | 13.9 | ||||||||||||
Gain on sale of investment | — | (10.2) | — | (0.1) | (10.3) | ||||||||||||
Amortization of bridge financing debt issuance costs | — | 3.6 | — | — | 3.6 | ||||||||||||
Income tax adjustments (1) |
(4.4) | (12.0) | (10.3) | (165.8) | (192.6) | ||||||||||||
Net income - as adjusted | $ | 113.3 | $ | 128.9 | $ | 141.0 | $ | 131.8 | $ | 514.9 | |||||||
Diluted earnings per ordinary share | |||||||||||||||||
Diluted earnings per ordinary share - as reported | $ | 0.56 | $ | 0.67 | $ | 0.63 | $ | 1.51 | $ | 3.37 | |||||||
Adjustments | 0.11 | 0.10 | 0.21 | (0.73) | (0.31) | ||||||||||||
Diluted earnings per ordinary share - as adjusted | $ | 0.67 | $ | 0.77 | $ | 0.84 | $ | 0.78 | $ | 3.06 |
nVent Electric plc | ||||||||||||||
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment | ||||||||||||||
for the quarter ended March 31, 2024 (Unaudited) |
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Q1 Net Sales Growth |
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Organic | Currency | Acq./Div. | Total | |||||||||||
nVent | 4.8 | % | 0.1 | % | 13.2 | % | 18.1 | % | ||||||
Enclosures | 10.8 | % | 0.1 | % | 1.6 | % | 12.5 | % | ||||||
Electrical & Fastening Solutions | (2.6) | % | 0.3 | % | 44.4 | % | 42.1 | % | ||||||
Thermal Management | (1.0) | % | — | % | — | % | (1.0) | % |
Reconciliation of Net Sales Growth to Organic Net Sales Growth | |||||||||||||||||||||||||||||
for the quarter ending June 30, 2024 and year ending December 31, 2024 (Unaudited) | |||||||||||||||||||||||||||||
Forecast (1) |
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Q2 Net Sales Growth | Full Year Net Sales Growth | ||||||||||||||||||||||||||||
Organic | Currency | Acq./Div. | Total | Organic | Currency | Acq./Div. | Total | ||||||||||||||||||||||
nVent | 3 - 5 % | —% | 7% | 10 - 12 % | 3 - 5 % | —% | 5% | 8 - 10 % | |||||||||||||||||||||
(1) Forecast information represents an approximation |
nVent Electric plc | ||||||||
Reconciliation of cash from operating activities to free cash flow (Unaudited) | ||||||||
Three months ended | ||||||||
In millions | March 31, 2024 |
March 31, 2023 |
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Free cash flow | ||||||||
Net cash provided by (used for) operating activities | $ | 90.0 | $ | 69.4 | ||||
Capital expenditures | (16.1) | (17.1) | ||||||
Proceeds from sale of property and equipment | 0.3 | 0.2 | ||||||
Free cash flow | $ | 74.2 | $ | 52.5 |