Slide 1: Q1 2022 Earnings Release
Q1 2022 EARNINGS RELEASE Conference Call | May 4, 2022 Q1 2022 Earnings Release |
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the second quarter and full- year 2022, and the results of our restructuring program. Forward-looking
Slide 3: Executive Summary
Executive Summary Delivered another strong quarter 1 • Exceeded expectations for revenue and EPS • Continued solid demand and execution resulted in 19% organic growth and book to bill of 1.27x Strengthened the balance sheet 2 • Completed the previously-announced Tripwire divestiture for $350M in gro
Slide 4: Strategic Acquisitions
Strategic Acquisitions 1. Macmon Secure GmbH – Industrial Automation market • Closed on January 17, 2022, purchase price of $42M • Leader in advanced network access control software 2. NetModule AG – Industrial Automation market • Closed on March 3, 2022, purchase price of $24M • Leading manufacture
Slide 5: Innovative New Products Enabling Advanced Solutions
Innovative New Products Enabling Advanced Solutions Industrial Automation Solutions: BOBCAT Family of Next Generation Network Switches • Powerful next generation core network switch packages. • Ruggedized and approved for use in the most demanding industrial environments in discrete manufacturing, p
Slide 6: Q1 2022 Financial Highlights
Q1Financial Goals 2022 Highlights Revenue increased 20% EBITDA increased 30% Increased FY 2022 Reduced net leverage year over year year over year to $99M revenue guidance from from 4.1x a year ago to $610M $2.390 - $2.440 billion to to 1.6x EBITDA margin of 16.3%, $2.480 - $2.530 billion, Organic gr
Slide 7: Q1 2022 Financial Summary
Q1 2022 Financial Summary Q1 2022 Q4 2021 Q1 2021 Revenue $610.4M $610.6M $508.7M Gross profit $211.2M $214.0M $170.7M Gross profit percentage 34.6% 35.0% 33.6% EBITDA $99.5M $100.8M $76.6M EBITDA percentage 16.3% 16.5% 15.0% Net Income(1) $59.5M $59.5M $40.4M Earnings Per Share(2) $1.31 $1.30 $0.90
Slide 8: Q1 2022 Segment Results
Q1 2022 Segment Results Industrial Enterprise Automation Consolidated Solutions Solutions Q1 2022 Revenue $341.9M $268.4M $610.4M EBITDA(1) $67.5M $30.8M $99.5M EBITDA Margin 19.7% 11.5% 16.3% Q4 2021 Revenue $316.3M $294.3M $610.6M EBITDA(1) $59.7M $39.8M $100.8M EBITDA Margin 18.9% 13.5% 16.5% Q1
Slide 9: Q1 2022 Balance Sheet Highlights
Q1 2022 Balance Sheet Highlights Q1 2022 Q4 2021 Q1 2021 Cash and Cash Equivalents $560M $642M $369M Days Sales Outstanding 57 56 58 Inventory Turns 4.1x 4.7x 4.9x Total Debt Principal Amount $1.23B $1.48B $1.53B Net Leverage(1) 1.6x 2.1x 4.1x (1) Net leverage is calculated as (A) total debt less ca
Slide 10: Attractive Debt Maturity Schedule
Attractive Debt Maturity Schedule $M $600 Fixed rate, Euro-denominated debt $502 $500 at a pre-tax cost of 3.5% $391 $400 $335 No maturities until 2027 - 2031 $300 $200 No maintenance covenants $100 $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Early repayment of the 2026 notes completed duri
Slide 11: Q1 2022 Cash Flow Highlights
Q1 2022 Cash Flow Highlights Q1 2022 Q1 2021 Cash flows from operating activities ($58.0M) ($41.5M) Less: Net capital expenditures $10.9M $11.2M Free cash flow(1) ($68.9M) ($52.7M) (1) Free cash flow is not a term defined by generally accepted accounting principles (GAAP) and our definition may or m
Slide 12: Outlook
Outlook Q2 2022 • Revenue of $625 - $640 million • Earnings Per Share(1) of $1.35 - $1.45 Full Year 2022 • Revenue of $2.480 - $2.530 billion • Earnings Per Share(1) of $5.55 - $5.85 Full Year 2022 Assumptions • Interest expense of $50 million • Tax rate of 20% • Share count of 45.4 million Adjusted
Slide 13: Investment Thesis
Investment Thesis Organic Growth EBITDA Margin Expansion Strong Balance Sheet Aligned with secular growth markets Solid operating leverage Reduced net leverage of 1.6x Improved solution selling capabilities Improved productivity Robust free cash flow Accelerated new product innovation Improving Our
Slide 14: Questions?
QUESTIONS? Q1 2022 Earnings Release |
Slide 15: Appendix
APPENDIX Q1 2022 Earnings Release |
Slide 16: Statement of Operations
Statement of Operations Q1 2022 Earnings Release | 16
Slide 17: Operating Segment Information
Operating Segment Information Q1 2022 Earnings Release | 17
Slide 18: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Q1 2022 Earnings Release | 18
Slide 19: Balance Sheet
Balance Sheet Q1 2022 Earnings Release | 19
Slide 20: Cash Flow Statement
Cash Flow Statement Q1 2022 Earnings Release | 20
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expense due to pla
Slide 22: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expens
Slide 23: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) Q1 2022 Earnings Release | 23
Slide 24: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) Q1 2022 Earnings Release | 24
Slide 25: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets. We believe free cash flow provides useful information to i
Slide 26: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Our guidance is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under "Forward-Looking Statements" in this release. In addition,