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Nvent Electric Plc (NVT) SEC Filing 8-K Material Event for the period ending Thursday, October 28, 2021

Nvent Electric Plc

CIK: 1720635 Ticker: NVT
Exhibit 99.1
nventlogorgbf2a08.jpg

News Release
nVent Announces Third Quarter 2021 Financial Results
Another quarter of strong execution delivers results above guidance; raising full-year sales and EPS guidance

Reported sales of $643 million, up 26%; Organically up 20%; Robust growth across all segments
Reported Return on Sales of 15.2%; Adjusted Return on Sales of 18.4%
Reported EPS of $0.44; Adjusted EPS of $0.53
Generated Cash Flows from Operations of $115 million; Free Cash Flow of $108 million, up versus 2020
Raising full-year sales and EPS guidance due to continued strong performance

Reconciliations of GAAP (reported) to Non-GAAP measures are in the attached financial tables.
LONDON, UNITED KINGDOM – October 28, 2021 – nVent Electric plc (NYSE:NVT) (“nVent”), a global leader in electrical connection and protection solutions, today announced financial results for the third quarter of 2021 and provided guidance for the fourth quarter and full-year 2021.
“Our third quarter results are a testament to the strong execution of our nVent team during a challenging supply chain environment. Third quarter sales grew 26% as we continued to see broad-based growth across verticals and geographies. We generated strong cash flow, up more than $50 million dollars year-to-date. I am grateful to our teams who are working tirelessly to meet customer commitments,” said nVent Chief Executive Officer Beth Wozniak.

“Based on the strength in the business year-to-date and higher order trends, we are raising our full-year sales and EPS guidance. With the Electrification of Everything we are seeing strong demand for our products and solutions. The execution of our strategy on high growth verticals, new products, global expansion and strategic acquisitions is driving our growth. We are continuing to manage through supply chain challenges and delivering strong results. It is certainly an exciting time to be at nVent.”

Third quarter 2021 sales of $643 million were up 26% relative to third quarter 2020 and increased 20% organically, which excludes the impact from currency fluctuations and acquisitions. Third quarter 2021 earnings (loss) per diluted share (“EPS”) were $0.44, up from $(0.82) in the prior year, while on an adjusted basis, the company had EPS of $0.53, up 18% from $0.45. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.
Third quarter 2021 operating income was $98 million, compared to an operating loss of $142 million in the prior year period. On an adjusted basis, segment income was $118 million, compared to $101 million in the prior year period.
nVent had net cash provided by operating activities of $115 million in the third quarter, and free cash flow was $108 million.


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THIRD QUARTER PERFORMANCE ($ in millions)
nVent Electric plc
Three months ended
September 30, 2021September 30, 2020% / point
change
Net Sales$643$50926%
Organic20%
Operating Income$98$(142)169%
Reported ROS15.2%(27.8)%
Segment Income$118$10117%
Adjusted ROS18.4%19.8%-140 bps
Enclosures
Three months ended
September 30, 2021September 30, 2020% / point
change
Net Sales$335$24537%
Organic25%
ROS16.8%18.0%-120 bps
Electrical & Fastening Solutions
Three months ended
September 30, 2021September 30, 2020% / point
change
Net Sales$169$14815%
Organic14%
ROS28.6%27.6%100 bps
Thermal Management
Three months ended
September 30, 2021September 30, 2020% / point
change
Net Sales$138$11718%
Organic16%
ROS22.8%21.8%100 bps









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GUIDANCE FOR FULL-YEAR AND FOURTH QUARTER 2021
The company now estimates reported sales growth for full-year 2021 of up 19% to 20% versus prior guidance of up 15% to 18%. This new guidance range represents 14% to 15% organic sales growth versus prior guidance of 10% to 13% growth. Reported sales guidance includes approximately two to three points of benefit from acquisitions. The company now expects full-year 2021 EPS of $1.57 to $1.60 on a GAAP basis and adjusted EPS of $1.91 to $1.94, versus prior guidance of $1.51 to $1.57 on a GAAP basis and adjusted EPS of $1.84 to $1.90.

The company estimates reported sales for the fourth quarter of 2021 to be up 13% to 16%, which represents an increase of 9% to 12% on an organic basis. Reported sales guidance includes approximately four points of benefit from acquisitions. The company estimates fourth quarter 2021 EPS on a GAAP basis of $0.36 to $0.39 and adjusted EPS of $0.45 to $0.48.

DIVIDENDS
nVent previously announced on September 27, 2021 that its Board of Directors approved a regular cash dividend of $0.175 per share, payable during the fourth quarter on November 5, 2021.

EARNINGS CONFERENCE CALL
nVent’s management team will discuss the company’s third quarter performance on a conference call with analysts and investors at 9:30 a.m. Eastern Time (ET) 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 7165697 approximately 10 minutes before the 9:30 a.m. ET start. A replay of the conference call will be made accessible once it becomes available and will remain accessible through midnight on Jan. 28, 2022 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 and our management office is in Minneapolis. 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.














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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,” “are confident,” 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 adverse effects on our business operations or financial results, including due to the impact of the COVID-19 pandemic and potential impairment of goodwill and trade names; 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 management and cash flow practices; inability to mitigate material and other cost inflation; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation; 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 our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. 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
JC.Weigelt@nVent.com

Media Contact
Stacey Wempen
Director, External Communications
nVent
763.204.7857
Stacey.Wempen@nVent.com
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nVent Electric plc
Condensed Consolidated Statements of Income (Loss) (Unaudited)
Three months endedNine months ended
In millions, except per-share dataSeptember 30,
2021
September 30,
2020
September 30,
2021
September 30,
2020
Net sales$642.8 $509.3 $1,793.0 $1,477.4 
Cost of goods sold392.3 312.5 1,098.3 925.0 
Gross profit250.5 196.8 694.7 552.4 
% of net sales39.0 %38.6 %38.7 %37.4 %
Selling, general and administrative139.7 107.4 392.1 334.8 
% of net sales21.7 %21.1 %21.9 %22.7 %
Research and development13.1 10.5 36.2 33.1 
% of net sales2.0 %2.1 %2.0 %2.2 %
Impairment of goodwill and trade names— 220.5 — 220.5 
Operating income (loss)97.7 (141.6)266.4 (36.0)
% of net sales15.2 %(27.8 %)14.9 %(2.4 %)
Net interest expense8.2 8.5 24.4 27.8 
Other expense0.6 0.7 1.8 2.2 
Income (loss) before income taxes 88.9 (150.8)240.2 (66.0)
Provision (benefit) for income taxes14.6 (12.1)34.3 28.3 
Effective tax rate16.4 %8.0 %14.3 %(42.9 %)
Net income (loss)$74.3 $(138.7)$205.9 $(94.3)
Earnings (loss) per ordinary share
Basic$0.44 $(0.82)$1.23 $(0.56)
Diluted$0.44 $(0.82)$1.21 $(0.56)
Weighted average ordinary shares outstanding
Basic168.2 170.0 168.0 169.9 
Diluted170.1 170.0 169.5 169.9 
Cash dividends paid per ordinary share$0.175 $0.175 $0.525 $0.525 

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nVent Electric plc
Condensed Consolidated Balance Sheets (Unaudited)
 September 30,
2021
December 31,
2020
In millions
Assets
Current assets
Cash and cash equivalents$46.0 $122.5 
Accounts and notes receivable, net428.5 313.8 
Inventories301.4 235.2 
Other current assets113.8 92.9 
Total current assets889.7 764.4 
Property, plant and equipment, net287.6 289.4 
Other assets
Goodwill2,187.2 2,098.2 
Intangibles, net1,162.6 1,105.5 
Other non-current assets151.8 108.6 
Total other assets3,501.6 3,312.3 
Total assets$4,678.9 $4,366.1 
Liabilities and Equity
Current liabilities
Current maturities of long-term debt and short-term borrowings$5.0 $20.0 
Accounts payable227.5 171.1 
Employee compensation and benefits110.3 70.4 
Other current liabilities228.4 188.5 
Total current liabilities571.2 450.0 
Other liabilities
Long-term debt971.5 928.0 
Pension and other post-retirement compensation and benefits227.4 237.9 
Deferred tax liabilities230.6 230.1 
Other non-current liabilities136.6 110.3 
Total liabilities2,137.3 1,956.3 
Equity2,541.6 2,409.8 
Total liabilities and equity$4,678.9 $4,366.1 

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nVent Electric plc
Condensed Consolidated Statements of Cash Flows (Unaudited)
 Nine months ended
In millionsSeptember 30,
2021
September 30,
2020
Operating activities
Net income (loss)205.9 $(94.3)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities
Depreciation30.0 28.8 
Amortization49.7 48.1 
Deferred income taxes(0.8)6.2 
Share-based compensation11.4 10.0 
Impairment of goodwill and trade names— 220.5 
Changes in assets and liabilities, net of effects of business acquisitions
Accounts and notes receivable(91.7)7.8 
Inventories(50.4)9.3 
Other current assets(19.3)22.2 
Accounts payable41.7 (46.1)
Employee compensation and benefits39.0 (3.5)
Other current liabilities36.5 (3.4)
Other non-current assets and liabilities6.1 (1.9)
Net cash provided by (used for) operating activities258.1 203.7 
Investing activities
Capital expenditures(25.2)(25.4)
Proceeds from sale of property and equipment0.1 1.5 
Acquisitions, net of cash acquired(235.1)(27.0)
Net cash provided by (used for) investing activities(260.2)(50.9)
Financing activities
Net receipts of revolving long-term debt45.3 — 
Proceeds from long-term debt100.0 — 
Repayments of long-term debt(117.5)(12.5)
Debt issuance costs(2.3)— 
Dividends paid(88.3)(89.2)
Shares issued to employees, net of shares withheld12.1 4.7 
Repurchases of ordinary shares(20.0)(3.2)
Net cash provided by (used for) financing activities(70.7)(100.2)
Effect of exchange rate changes on cash and cash equivalents(3.7)0.8 
Change in cash and cash equivalents(76.5)53.4 
Cash and cash equivalents, beginning of period122.5 106.4 
Cash and cash equivalents, end of period$46.0 $159.8 

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nVent Electric plc
Supplemental Financial Information by Reportable Segment (Unaudited)
2021
In millionsFirst
Quarter
Second
Quarter
Third
Quarter
Nine
Months
Net sales
Enclosures$277.0 $300.4 $335.2 $912.6 
Electrical & Fastening Solutions147.9 169.2 169.3 486.4 
Thermal Management124.0 131.7 138.3 394.0 
Total$548.9 $601.3 $642.8 $1,793.0 
Segment income (loss)
Enclosures$48.8 $53.7 $56.4 $158.9 
Electrical & Fastening Solutions39.2 48.9 48.4 136.5 
Thermal Management21.0 24.9 31.6 77.5 
Other(11.9)(17.3)(18.2)(47.4)
Total$97.1 $110.2 $118.2 $325.5 
Return on sales
Enclosures17.6 %17.9 %16.8 %17.4 %
Electrical & Fastening Solutions26.5 %28.9 %28.6 %28.1 %
Thermal Management16.9 %18.9 %22.8 %19.7 %
Total17.7 %18.3 %18.4 %18.2 %

2020
In millionsFirst
Quarter
Second
Quarter
Third
Quarter
Nine
Months
Net sales
Enclosures$258.5 $219.3 $244.7 $722.5 
Electrical & Fastening Solutions141.9 132.1 147.7 421.7 
Thermal Management120.5 95.8 116.9 333.2 
Total$520.9 $447.2 $509.3 $1,477.4 
Segment income (loss)
Enclosures$40.9 $28.2 $44.0 $113.1 
Electrical & Fastening Solutions33.5 34.7 40.7 108.9 
Thermal Management20.3 14.4 25.5 60.2 
Other(13.2)(9.0)(9.3)(31.5)
Total$81.5 $68.3 $100.9 $250.7 
Return on sales
Enclosures15.8 %12.9 %18.0 %15.7 %
Electrical & Fastening Solutions23.6 %26.3 %27.6 %25.8 %
Thermal Management16.8 %15.0 %21.8 %18.1 %
Total15.6 %15.3 %19.8 %17.0 %





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nVent Electric plc
Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2021
excluding the effect of adjustments (Unaudited)
Actual
Forecast (1)
In millions, except per-share dataFirst
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Full
Year
Net sales$548.9 $601.3 $642.8 
Operating income80.4 88.3 97.7 
% of net sales14.6 %14.7 %15.2 %
Adjustments:
Restructuring and other0.8 4.3 1.9 
 Acquisition transaction and integration costs — 1.6 0.8 
Intangible amortization15.9 16.0 17.8 
Segment income$97.1 $110.2 $118.2 
Return on sales17.7 %18.3 %18.4 %
Net income (loss) - as reported$65.4 $66.2 $74.3 $64 $270 
Adjustments to operating income16.7 21.9 20.5 18 77 
Income tax adjustments(8.7)(3.8)(4.0)(3)(20)
Net income - as adjusted$73.4 $84.3 $90.8 $79 $327 
Diluted earnings (loss) per ordinary share
Diluted earnings (loss) per ordinary share - as reported$0.39 $0.39 $0.44 $0.36 - $0.39$1.57 - $1.60
Adjustments0.04 0.11 0.09 0.090.34
Diluted earnings per ordinary share - as adjusted$0.43 $0.50 $0.53 $0.45 - $0.48$1.91 - $1.94
(1) Forecast information represents an approximation
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nVent Electric plc
Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2020
excluding the effect of 2020 adjustments (Unaudited)
Actual
In millions, except per-share dataFirst
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Full
Year
Net sales$520.9 $447.2 $509.3 $521.2 $1,998.6 
Operating income (loss)60.3 45.3 (141.6)74.4 38.4 
% of net sales11.6 %10.1 %(27.8 %)14.3 %1.9 %
Adjustments:
Restructuring and other4.3 6.2 5.4 6.1 22.0 
Acquisition transaction and integration costs
0.9 0.8 0.5 0.3 2.5 
Intangible amortization
16.0 16.0 16.1 16.1 64.2 
Impairment of goodwill— — 212.3 — 212.3 
Impairment of trade names— — 8.2 — 8.2 
Segment income$81.5 $68.3 $100.9 $96.9 $347.6 
Return on sales15.6 %15.3 %19.8 %18.6 %17.4 %
Net income (loss) - as reported$18.6 $25.8 $(138.7)$47.1 $(47.2)
Adjustments to operating income (loss)21.2 23.0 242.5 22.5 309.2 
Pension and other post-retirement mark-to-market loss— — — 8.7 8.7 
Income tax adjustments18.3 0.2 (27.7)(5.5)(14.8)
Net income - as adjusted$58.1 $49.0 $76.1 $72.8 $255.9 
Diluted earnings (loss) per ordinary share
Diluted earnings (loss) per ordinary share - as reported$0.11 $0.15 $(0.82)$0.28 $(0.28)
Adjustments0.23 0.14 1.27 0.15 1.78 
Diluted earnings per ordinary share - as adjusted$0.34 $0.29 $0.45 $0.43 $1.50 

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nVent Electric plc
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment
for the quarter ended September 30, 2021 (Unaudited)
Q3 Net Sales Growth
OrganicCurrencyAcq./Div.Total
nVent20.0 %1.1 %5.1 %26.2 %
Enclosures25.4 %0.9 %10.7 %37.0 %
Electrical & Fastening Solutions13.8 %0.8 %— %14.6 %
Thermal Management16.4 %1.9 %— %18.3 %

Reconciliation of Net Sales Growth to Organic Net Sales Growth
for the quarter ending December 31, 2021 and year ending December 31, 2021 (Unaudited)
Forecast (1)
Q4 Net Sales GrowthFull Year Net Sales Growth
OrganicCurrencyAcq./Div.TotalOrganicCurrencyAcq./Div.Total
nVent9 - 12 % %4 %13 - 16%14 - 15 %2 %2 - 3%19 - 20%
(1) Forecast information represents an approximation


Reconciliation of cash from operating activities to free cash flow (Unaudited)
 Three months endedNine months ended
In millionsSeptember 30,
2021
September 30,
2020
September 30,
2021
September 30,
2020
Net cash provided by (used for) operating activities$114.8 $113.2 $258.1 $203.7 
Capital expenditures(7.3)(8.2)(25.2)(25.4)
Proceeds from sale of property and equipment— 0.1 0.1 1.5 
Free cash flow$107.5 $105.1 $233.0 $179.8 


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Ticker: NVT
CIK: 1720635
Form Type: 8-K Corporate News
Accession Number: 0001720635-21-000056
Submitted to the SEC: Thu Oct 28 2021 6:45:51 AM EST
Accepted by the SEC: Thu Oct 28 2021
Period: Thursday, October 28, 2021
Industry: Special Industry Machinery No Metalworking Machinery
Events:
  1. Earnings Release
  2. Financial Exhibit

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