Slide 1: Q4 2021 Earnings Release
Q4 2021 EARNINGS RELEASE Conference Call | February 9, 2022 Q4 2021 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 first quarter and full- year 2022, the Tripwire divestiture, and the results of our restructuring
Slide 3: Executive Summary
Executive Summary Delivered another strong quarter of profitable growth • Exceeded expectations for revenue, EPS and cash flow 1 • Continued solid demand and execution resulted in 21% organic growth and a book to bill of 1.20x • Gained further momentum with solution selling strategy and new product
Slide 4: Tripwire Divestiture
Tripwire Divestiture Strategic • Monetizing the business while turning our focus exclusively to industrial cybersecurity • Maintaining a commercial relationship with Tripwire to act as an exclusive reseller in Rationale industrial markets Transaction • Buyer: HelpSystems, a cybersecurity and automat
Slide 5: Pro Forma Portfolio Excluding Tripwire
Pro Forma Portfolio Excluding Tripwire FY 2021 Pro Forma 20211 FOLLOWING THE TRIPWIRE DIVSTITURE: • Minimal impact on EPS or free cash flow • Pro forma EBITDA margin Revenues Revenues expansion of 50 basis $2.408B $2.301B points 55% EBITDA Margin 45% 53% EBITDA Margin 47% • Pro forma year-end 2021 1
Slide 6: Acquisition of Macmon Secure GmbH
Acquisition of Macmon Secure GmbH Transaction closed on January 17, 2022 • Purchase price of $43M • Expected 2022 revenue contribution of approximately $12M 1 • Will be reported in the Industrial Solutions Segment Macmon Secure GmbH is a leader in advanced network access control software • Software
Slide 7: Q4 2021 Financial Highlights
Q4Financial Goals 2021 Highlights Revenue increased 28% EBITDA increased 37% EPS increased 47% year over year to $638M year over year to $101M year over year to $1.32 Organic growth of EBITDA margin increased 21% year over year 110 basis points to 15.9% Continued robust orders, book-to-bill of 1.20x
Slide 8: FY 2021 Financial Highlights
FYFinancial Goals 2021 Highlights Revenue increased 29% EBITDA increased 51% Free cash flow increased Signed a definitive to $2.408B to $376M 145% to $211M agreement to divest Tripwire for $350M Organic growth of 20% EBITDA margin increased Cash balance increased subsequent to year end 220 basis poi
Slide 9: Q4 2021 Financial Summary
Q4 2021 Financial Summary Q4 2021 Q3 2021 Q4 2020 Revenue $637.6M $631.3M $498.5M Gross profit $234.7M $227.9M $176.3M Gross profit percentage 36.8% 36.1% 35.4% EBITDA $101.3M $100.7M $74.0M EBITDA percentage 15.9% 16.0% 14.8% Net Income(1) $60.2M $59.6M $40.5M Earnings Per Share(2) $1.32 $1.31 $0.9
Slide 10: Q4 2021 Segment Results
Q4 2021 Segment Results Industrial Enterprise Consolidated Solutions Solutions Q4 2021 Revenue $343.2M $294.3M $637.6M EBITDA(1) $60.3M $39.7M $101.3M EBITDA Margin 17.6% 13.5% 15.9% Q3 2021 Revenue $345.1M $286.2M $631.3M EBITDA(1) $59.6M $40.2M $100.7M EBITDA Margin 17.3% 14.0% 16.0% Q4 2020 Reven
Slide 11: Q4 2021 Balance Sheet Highlights
Q4 2021 Balance Sheet Highlights Q4 2021 Q3 2021 Q4 2020 Cash and Cash Equivalents $644M $458M $502M Working Capital Turns 11.2x 7.8x 10.3x Days Sales Outstanding 53 56 50 Inventory Turns 4.7x 5.2x 5.2x Total Debt Principal Amount $1.48B $1.51B $1.59B Net Leverage(1) 2.1x 2.8x 4.0x (1) Net leverage
Slide 12: Q4 2021 Cash Flow Highlights
Q4 2021 Cash Flow Highlights FY FY Q4 2021 Q4 2020 2021 2020 Cash flows from operating activities(1)(2) $170.1M $134.7M $272.1M $173.4M Less: Net capital expenditures(2) $35.4M $33.4M $87.8M $87.1M Plus: Proceeds from sale-leaseback $27.0M -- $27.0M -- Free cash flow(3) $161.7M $101.3M $211.3M $86.3
Slide 13: Outlook
Outlook Q1 2022 • Revenue of $558 - $573 million • Earnings Per Share(1) of $1.03 - $1.13 Full Year 2022 • Revenue of $2.390 - $2.440 billion • Earnings Per Share(1) of $5.00 - $5.35 Full Year 2022 Assumptions • Interest expense of $62 million • Tax rate of 20% • Share count approximately 46.3 milli
Slide 14: 2022 High End of Guidance
2022 High End of Guidance Revenue $142M $12M ($10M) ($5M) $2.440B $2.408B ($107M) $2.301B EPS $0.64 $0.04 ($0.01) ($0.07) $5.35 $4.78 ($0.03) $4.75 2021 Actual Tripwire 2021 Volume / Macmon Brazil Oil & Gas Copper Prices, Tax, Interest, 2022 Guidance Divestiture Pro Forma Operations Acquistion Dives
Slide 15: Investment Thesis
Investment Thesis Accelerating Organic Growth Expanding EBITDA Margin Strengthening Balance Sheet Aligned with secular growth markets Solid operating leverage Robust free cash flow growth Improved solution selling capabilities Improving productivity Reduced net leverage of 2.1x EBITDA (1.2x pro form
Slide 16: Questions?
QUESTIONS? Q4 2021 Earnings Release |
Slide 17: Appendix
APPENDIX Q4 2021 Earnings Release |
Slide 18: Statement of Operations
Statement of Operations Q4 2021 Earnings Release | 18
Slide 19: Operating Segment Information
Operating Segment Information Q4 2021 Earnings Release | 19
Slide 20: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Q4 2021 Earnings Release | 20
Slide 21: Balance Sheet
Balance Sheet Q4 2021 Earnings Release | 21
Slide 22: Cash Flow Statement
Cash Flow Statement Q4 2021 Earnings Release | 22
Slide 23: 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 24: 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 25: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) Q4 2021 Earnings Release | 25
Slide 26: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) Q4 2021 Earnings Release | 26
Slide 27: 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 28: 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,