Last10K.com

Nvent Electric Plc (NVT) SEC Filing 8-K Material Event for the period ending Thursday, October 25, 2018

Nvent Electric Plc

CIK: 1720635 Ticker: NVT


 

Exhibit 99.1
nventlogorgbf2a04.jpg

News Release
nVent Reports Third Quarter 2018 Financial Results
Quarter Driven by Strong Sales Growth in Enclosures and Electrical & Fastening Solutions

Reported sales of $564 million were up 4%; Organic sales up 5%
Reported EPS of $0.38; Adjusted EPS of $0.46
Reported return on sales of 16.6% or 20.4% on an adjusted basis

Reconciliations of GAAP (reported) to Non-GAAP measures are in the attached financial tables.
LONDON, UNITED KINGDOM – October 25, 2018 – nVent Electric plc (NYSE:NVT) (“nVent”), a global leader in electrical connection and protection solutions, today announced financial results for the third quarter of 2018 and provided guidance for the fourth quarter and full-year 2018.
Third quarter sales of $564 million grew 4 percent relative to the third quarter 2017 and grew 5 percent organically, which excludes the impact from currency fluctuations. Third quarter 2018 earnings per diluted share (“EPS”) were $0.38 while on an adjusted basis, the company had EPS of $0.46. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.
Third quarter 2018 operating income was $94 million, down from $100 million in the same quarter in 2017. On an adjusted basis, segment income excluding corporate and other costs was $128 million, up 5 percent compared to the third quarter of 2017.
"nVent posted strong sales in the third quarter growing 4 percent as reported or over 5 percent organically, which was above the high end of guidance. We are executing on the One nVent strategy to deliver growth as demonstrated in the third quarter," said Beth Wozniak, nVent's Chief Executive Officer. "Reported EPS of $0.38 and adjusted EPS of $0.46 were in line with our prior guidance and we feel confident in our ability to deliver on our 2018 commitments."













(more)

2

THIRD QUARTER PERFORMANCE ($ in millions)
nVent Electric plc
 
 
 
 
Three months ended
 
September 30, 2018
September 30, 2017
% / point
change
Net Sales
$564
$541
4%
Organic
 
 
5%
Operating Income
$94
$100
-6%
Reported ROS
16.6%
18.4%
 
Segment Income
$115
$114
1%
Adjusted ROS
20.4%
21.1%
-70 bps
Enclosures
 
 
 
 
Three months ended
 
September 30, 2018
September 30, 2017
% / point
change
Net Sales
$260
$242
7%
Organic
 
 
8%
ROS
18.3%
18.2%
10 bps
Enclosures sales growth was broad based across geographic regions and verticals. Third quarter ROS improved 10 basis points as the company saw positive price and productivity while continuing to make progress on its commitment to improve segment margin.
Thermal Management
 
 
 
 
Three months ended
 
September 30, 2018
September 30, 2017
% / point
change
Net Sales
$157
$159
-1%
Organic
 
 
2%
ROS
26.6%
27.2%
-60 bps
Thermal Management saw positive organic growth while up against a difficult comparison to 2017. Sales strength was driven by our Industrial Maintenance, Repair and Overhaul and Commercial businesses, and we saw a modest contribution to sales from our longer cycle Energy business.
Electrical & Fastening Solutions ("EFS")
 
 
 
 
Three months ended
 
September 30, 2018
September 30, 2017
% / point
change
Net Sales
$147
$140
5%
Organic
 
 
6%
ROS
26.5%
25.2%
130 bps
EFS saw steady demand for its products across multiple verticals, which resulted in strong sales growth during the quarter. A combination of price plus productivity were the main drivers behind the 130 basis point ROS expansion.



(more)

3

GUIDANCE FOR FULL-YEAR AND FOURTH QUARTER 2018
The company now estimates reported sales growth for the full-year 2018 of 4 to 5 percent, which represents 3 to 4 percent organic growth versus the prior year. The company has narrowed its estimate of guidance for full-year 2018 GAAP EPS to $1.28 to $1.32 and $1.73 to $1.77 on an adjusted basis.
The company estimates reported sales growth for the fourth quarter of 2018 of 1 to 3 percent and 2 to 4 percent on an organic basis. The company estimates fourth quarter 2018 EPS on a GAAP basis of $0.37 to $0.41 and adjusted EPS of $0.44 to $0.48.
DIVIDENDS
nVent previously announced on July 23, 2018 that its Board of Directors approved a regular cash dividend of $0.175 per share, which was paid during the third quarter on August 17, 2018. nVent also announced on September 18, 2018 that its Board of Directors approved a regular cash dividend of $0.175 per share, payable during the fourth quarter on November 2, 2018.

EARNINGS CONFERENCE CALL
nVent’s management team will discuss the company’s third quarter performance on a conference call with analysts and investors at 9:00 a.m. Eastern today. A live audio webcast of the conference call and materials will be available through the “Investor Relations” section of the company’s website (http://investors.nvent.com). To participate, please dial 855-493-3495 or 720-405-2160 along with conference number 5679615 approximately ten minutes before the 9:00 a.m. EDT start. A replay of the conference call will be made accessible once it becomes available and will remain accessible through midnight on November 29, 2018 by dialing 855-859-2056 or 404-537-3406, along with the above conference number.
About nVent

nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London, United Kingdom and our management office in the United States is in Minneapolis, Minnesota. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER.
nVent, CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER are trademarks owned or licensed by nVent Services GmbH or its affiliates.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “forecasts,” “should,” “would,” “positioned,” “strategy,” “future,” or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. All projections in this press release are also forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the ability to realize the anticipated benefits from our separation from Pentair (the “Separation”); adverse effects on our business operations or financial results as a result of the consummation of the Separation; the ability of our business to operate independently following the Separation; overall global economic and business conditions impacting our business; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions; competition and pricing pressures in the markets we serve, including the impacts of tariffs; the strength of housing and related markets; volatility in currency exchange rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply

(more)

4

management and cash flow practices; increased risks associated with operating foreign businesses; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the Securities and Exchange Commission, including nVent’s Registration Statement on Form 10, as amended. All forward-looking statements speak only as of the date of this press release. nVent assumes no obligation, and disclaims any obligation, to update the information contained in this press release.

Investor Contact
J.C. Weigelt
Vice President, Investor Relations
nVent
763.204.7750

Media Contact
Jill Saletta
Vice President, Communications
nVent
763.204.7771




(more)

5


nVent Electric plc
Condensed Consolidated and Combined Statements of Income (Unaudited)
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
In millions, except per-share data
September 30,
2018
September 30,
2017
 
September 30,
2018
September 30,
2017
Net sales
$
563.9

$
540.6

 
$
1,645.5

$
1,556.0

Cost of goods sold
334.8

320.5

 
988.1

927.5

Gross profit
229.1

220.1

 
657.4

628.5

% of net sales
40.6
%
40.7
%
 
40.0
%
40.4
%
Selling, general and administrative
124.1

110.0

 
399.1

339.4

% of net sales
22.0
%
20.3
%
 
24.3
%
21.8
%
Research and development
11.3

10.5

 
33.7

32.4

% of net sales
2.0
%
1.9
%
 
2.0
%
2.1
%
Operating income
93.7

99.6

 
224.6

256.7

% of net sales
16.6
%
18.4
%
 
13.6
%
16.5
%
Net interest expense
11.7

0.2

 
21.6

0.4

Other expense
0.9

1.4

 
7.2

4.2

Income before income taxes
81.1

98.0

 
195.8

252.1

Provision for income taxes
12.9

18.3

 
32.0

46.4

Effective tax rate
15.9
%
18.7
%
 
16.3
%
18.4
%
Net income
$
68.2

$
79.7

 
$
163.8

$
205.7

Earnings per ordinary share
 
 
 
 
 
Basic
$
0.38

$
0.45

 
$
0.92

$
1.15

Diluted
$
0.38

$
0.44

 
$
0.90

$
1.14

Weighted average ordinary shares outstanding
 
 
 
 
 
Basic
179.3

179.0

 
178.8

179.0

Diluted
181.5

181.2

 
181.1

181.2



(more)

6

nVent Electric plc
Condensed Consolidated and Combined Balance Sheets (Unaudited)
 
 
 
 
September 30,
2018
December 31,
2017
In millions
Assets
Current assets
 
 
Cash and cash equivalents
$
106.0

$
26.9

Accounts and notes receivable, net
365.5

349.3

Inventories
237.1

224.1

Other current assets
126.7

132.3

Total current assets
835.3

732.6

Property, plant and equipment, net
264.0

265.8

Other assets
 
 
Goodwill
2,237.6

2,238.2

Intangibles, net
1,190.0

1,236.6

Other non-current assets
56.2

251.8

Total other assets
3,483.8

3,726.6

Total assets
$
4,583.1

$
4,725.0

Liabilities and Equity
Current liabilities
 
 
Current maturities of long-term debt and short-term borrowings
$
11.3

$

Accounts payable
141.9

174.1

Employee compensation and benefits
74.0

75.5

Other current liabilities
198.1

141.3

Total current liabilities
425.3

390.9

Other liabilities
 
 
Long-term debt
932.7


Pension and other post-retirement compensation and benefits
179.0

176.7

Deferred tax liabilities
255.7

279.4

Other non-current liabilities
74.8

86.7

Total liabilities
1,867.5

933.7

Equity
2,715.6

3,791.3

Total liabilities and equity
$
4,583.1

$
4,725.0


(more)

7

nVent Electric plc
Condensed Consolidated and Combined Statements of Cash Flows (Unaudited)
 
 
Nine months ended
In millions
September 30,
2018
September 30,
2017
Operating activities
 
 
Net income
$
163.8

$
205.7

Adjustments to reconcile net income to net cash provided by (used for) operating activities
 
 
Depreciation
27.6

27.3

Amortization
45.8

46.0

Deferred income taxes
(4.3
)
(3.9
)
Share-based compensation
9.3

11.4

Changes in assets and liabilities, net of effects of business acquisitions
 
 
Accounts and notes receivable
(21.7
)
(33.6
)
Inventories
(18.5
)
(13.4
)
Other current assets
(8.2
)
(17.6
)
Accounts payable
(28.1
)
(16.8
)
Employee compensation and benefits
4.0

1.3

Other current liabilities
30.0

57.8

Other non-current assets and liabilities
(17.1
)
34.2

Net cash provided by (used for) operating activities
182.6

298.4

Investing activities
 
 
Capital expenditures
(28.5
)
(25.1
)
Proceeds from sale of property and equipment
2.3

3.9

Acquisitions, net of cash acquired
(2.0
)
(13.6
)
Net cash provided by (used for) investing activities
(28.2
)
(34.8
)
Financing activities
 
 
Net repayments of short-term borrowings
(0.3
)

Proceeds from long-term debt
1,000.0


Repayments of long-term debt
(50.0
)

Debt issuance costs
(9.9
)

Cash provided at separation to Parent
(993.6
)

Dividends paid
(31.4
)

Net transfers to Parent prior to separation

(241.7
)
Shares issued to employees, net of shares withheld
10.1


Net cash provided by (used for) financing activities
(75.1
)
(241.7
)
Effect of exchange rate changes on cash and cash equivalents
(0.2
)
(16.2
)
Change in cash and cash equivalents
79.1

5.7

Cash and cash equivalents, beginning of year
26.9

21.5

Cash and cash equivalents, end of year
$
106.0

$
27.2


(more)

8

nVent Electric plc
Supplemental Financial Information by Reportable Segment (Unaudited)



 




 


2018

2017
In millions
First
Quarter
Second
Quarter
Third
Quarter
Nine
Months

First
Quarter
Second
Quarter
Third
Quarter
Nine
Months
Net sales


 




 

Enclosures
$
254.1

$
255.6

$
259.5

$
769.2


$
226.5

$
234.1

$
241.7

$
702.3

Thermal Management
147.9

139.0

157.4

444.3


145.4

139.9

159.1

444.4

Electrical & Fastening Solutions
136.9

148.1

147.0

432.0


130.3

139.2

139.8

409.3

Total
$
538.9

$
542.7

$
563.9

$
1,645.5


$
502.2

$
513.2

$
540.6

$
1,556.0

Segment income (loss)


 
 







 


Enclosures
$
40.6

$
47.9

$
47.4

$
135.9


$
40.3

$
45.7

$
44.1

$
130.1

Thermal Management
33.5

30.4

41.9

105.8


26.0

27.6

43.3

96.9

Electrical & Fastening Solutions
31.7

40.9

38.9

111.5


31.7

41.3

35.2

108.2

Other
(12.3
)
(12.4
)
(13.2
)
(37.9
)

(9.3
)
(8.9
)
(8.7
)
(26.9
)
Total
$
93.5

$
106.8

$
115.0

$
315.3


$
88.7

$
105.7

$
113.9

$
308.3

Return on sales


 
 







 


Enclosures
16.0
%
18.7
%
18.3
%
17.7
%

17.8
%
19.5
%
18.2
%
18.5
%
Thermal Management
22.7
%
21.9
%
26.6
%
23.8
%

17.9
%
19.7
%
27.2
%
21.8
%
Electrical & Fastening Solutions
23.2
%
27.6
%
26.5
%
25.8
%

24.3
%
29.7
%
25.2
%
26.4
%
Total
17.4
%
19.7
%
20.4
%
19.2
%

17.7
%
20.6
%
21.1
%
19.8
%



(more)

9

nVent Electric plc
Reconciliation of the GAAP year ended December 31, 2018 to the non-GAAP financial measures
excluding the effect of 2018 adjustments (Unaudited)
 
 
 
 
 
 
 
 
Actual
 
Forecast (1)
In millions, except per-share data
First
Quarter
Second
Quarter
Third
Quarter
 
Fourth
Quarter
Full
Year
Net sales
$
538.9

$
542.7

$
563.9

 
 $545 - $560

 $2,190 - $2,205

Operating income
65.6

65.3

93.7

 
 90 - 100

 315 - 325

% of net sales
12.2
%
12.0
%
16.6
%
 
16% - 18%

14% - 15%

Adjustments:
 
 
 
 




Restructuring and other
2.8

2.3

1.3

 

6

Intangible amortization
15.4

15.2

15.2

 
15

61

Separation costs
9.7

24.8

4.8

 

39

Corporate Allocations

(0.8
)

 

(1
)
Segment income
93.5

106.8

115.0

 
 105 - 115

 420 - 430

Return on sales
17.4
%
19.7
%
20.4
%
 
19% - 20%

19% - 20%

Corporate and other costs
12.3

12.4

13.2

 
13

51

Segment income excluding corporate and other costs
105.8

119.2

128.2

 
 118 - 128

 471 - 481

Net income - as reported
52.3

43.3

68.2

 
 68 - 75

 232 - 239

Interest expense adjustment - pro forma
(5.6
)


 

(6
)
Adjustments to operating income
27.9

41.5

21.3

 
15

106

Pension and other post-retirement mark-to-market loss

4.1


 

4

Income tax adjustments
(4.0
)
(9.8
)
(5.5
)
 
(3
)
(22
)
Net income - pro forma adjusted
$
70.6

$
79.1

$
84.0

 
 $80 - $87

 $314 - $321

Diluted earnings per ordinary share - pro forma adjusted
 
 
 
 
 
 
Diluted earnings per ordinary share - pro forma
$
0.29

$
0.24

$
0.38

 
$0.37 - $0.41

$1.28 - $1.32

Adjustments
0.10

0.20

0.08

 
0.07

0.45

Diluted earnings per ordinary share - pro forma adjusted
$
0.39

$
0.44

$
0.46

 
$0.44 - $0.48

$1.73 - $1.77

Diluted weighted average ordinary shares outstanding - pro forma
181.2

180.8

181.5

 
182

182

(1) Forecast information represents an approximation
 
 
 
 
 
 


(more)

10

nVent Electric plc
Reconciliation of the GAAP year ended December 31, 2017 to the non-GAAP financial measures
excluding the effect of 2017 adjustments (Unaudited)
 
 
 
 
 
 
 
In millions
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
 
Full
Year
Net sales
$
502.2

$
513.2

$
540.6

$
541.9

 
$
2,097.9

Operating income
67.6

89.5

99.6

59.4

 
316.1

% of net sales
13.5
%
17.4
%
18.4
%
11.0
%

15.1
%
Adjustments:
 
 
 
 
 
 
Restructuring and other
9.3

3.7



 
13.0

Intangible amortization
15.3

15.3

15.4

15.4

 
61.4

Trade name impairment



16.4

 
16.4

Separation costs

2.2

4.7

9.2

 
16.1

Corporate allocations
(3.5
)
(5.0
)
(5.8
)
0.8

 
(13.5
)
Segment income
88.7

105.7

113.9

101.2

 
409.5

Return on sales
17.7
%
20.6
%
21.1
%
18.7
%

19.5
%
Corporate and other costs
9.3

8.9

8.7

16.2

 
43.1

Segment income excluding corporate and other costs
98.0

114.6

122.6

117.4

 
452.6


(more)

11

nVent Electric plc
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment
for the quarter ended September 30, 2018 (Unaudited)
 
 
 
 
 
 
 
Actual
 
 
 
Q3 Net Sales Growth
 
 
 
 
 
 
Organic
Currency
Acq./Div.
Total
nVent
 
 
 
 
 
5.5
%
(1.2
)%
%
4.3
 %
Enclosures
 
 
 
 
 
7.9
%
(0.5
)%
%
7.4
 %
Thermal Management
 
 
 
 
 
1.6
%
(2.7
)%
%
(1.1
)%
Electrical & Fastening Solutions
 
 
 
 
 
6.0
%
(0.8
)%
%
5.2
 %


nVent Electric plc
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment
for the quarter ended and the year ended December 31, 2018 (Unaudited)
 
 
Forecast (1)
 
Q4 Net Sales Growth
 
Full Year Net Sales Growth
 
Organic
Currency
Acq./Div.
Total
 
Organic
Currency
Acq./Div.
Total
nVent
2 - 4%
(1
)%
%
1 - 3%
 
3 - 4%
1
%
%
4 - 5%
Enclosures
 
 
 
 
 
5 - 6%
1
%
%
6 - 7%
Thermal Management
 
 
 
 
 
0 - 1%
1
%
%
1 - 2%
Electrical & Fastening Solutions
 
 
 
 
 
2 - 4%
1
%
%
3 - 5%
(1) Forecast information represents an approximation



nVent Electric plc
Reconciliation of cash from operating activities to free cash flow (Unaudited)
 
 
Nine months ended
In millions
September 30,
2018
Free cash flow
 
Net cash provided by (used for) operating activities - as reported
$
182.6

Interest expense - pro forma
5.6

Net cash provided by (used for) operating activities - pro forma
177.0

Capital expenditures
(28.5
)
Proceeds from sale of property and equipment
2.3

Free cash flow - pro forma
$
150.8



View differences made from one to another to evaluate Nvent Electric Plc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Nvent Electric Plc.

Continue

Assess how Nvent Electric Plc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Nvent Electric Plc's Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Material Contracts, Statements, Certifications & more

Nvent Electric Plc provided additional information to their SEC Filing as exhibits

Ticker: NVT
CIK: 1720635
Form Type: 8-K Corporate News
Accession Number: 0001720635-18-000022
Submitted to the SEC: Thu Oct 25 2018 6:50:45 AM EST
Accepted by the SEC: Thu Oct 25 2018
Period: Thursday, October 25, 2018
Industry: Special Industry Machinery No Metalworking Machinery
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/nvt/0001720635-18-000022.htm