TYCO INTERNATIONAL LTD. NEUHAUSEN, Switzerland, July 25, 2014 /PRNewswire/ --
-- Revenue of $2.7 billion increases 5%, with 4% organic growth
-- Before special items, segment operating income increases 11% and segment
operating margin improves 80 basis points to a record-high 14.5%
-- Diluted EPS from continuing operations before special items increases
17%
-- As previously announced, the company completed the divestiture of its
ADT Korea security business and remaining interest in Atkore
International for a combined $2.2 billion in proceeds
-- Company repurchased 13 million shares for $556 million during the
quarter
(Income and EPS amounts are attributable to Tyco common shareholders)
($ millions, except per-share amounts)
(All prior periods have been recast to reflect certain businesses as discontinued operations)
Q3 2014 Q3 2013 % Change
------- ------- --------
Revenue $2,662 $2,537 5%
Segment Operating Income $354 $279 27%
Operating Income $296 $162 83%
Income from Continuing
Operations $434 $112 -
Diluted EPS from Continuing
Operations $0.93 $0.24 -
Special Items $0.39 ($0.22)
Segment Operating Income
Before Special Items $386 $348 11%
Income from Continuing Ops
Before Special Items $253 $213 19%
Diluted EPS from Continuing
Ops Before Special Items $0.54 $0.46 17%
Tyco (NYSE: TYC) today reported $0.93 in GAAP diluted earnings per share (EPS) from continuing operations for the fiscal third quarter of 2014 and diluted EPS from continuing operations before special items of $0.54. Revenue in the quarter increased 5% versus the prior year to $2.7 billion. Organic revenue grew 4% in the quarter, with growth across all segments, led by products with a 12% increase from the prior year quarter. Acquisitions contributed 2 percentage points of growth, which was partially offset by the impact of divestitures.
"The investments we have made to expand our product capabilities, combined with continued improvements in our operational execution, drove a 17% increase in earnings per share before special items in the quarter," said Tyco Chief Executive Officer George R. Oliver. "The pickup in revenue growth we started to see last quarter continued, resulting in strong organic growth of 4%. In addition, we moved quickly to deploy the proceeds from our recent divestitures to maximize shareholder value, repurchasing 20 million shares over the past three months."
Organic revenue, free cash flow, operating income, segment operating income, and diluted EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as third quarter review slides can be found in the Investor Relations section of Tyco's website at http://investors.tyco.com. Certain tables contain the symbol "-" to denote that the percentage change is not meaningful.
SEGMENT RESULTS
The financial results presented in the tables below are in accordance with GAAP unless otherwise indicated. All dollar amounts are pre-tax and stated in millions. During the quarter ended June 27, 2014, the company decided to sell certain businesses previously reported within its Rest of World Installation & Services operating segment. These businesses generated $41 million of revenue in fiscal 2013 with an operating loss of $11 million. Additionally, on March 3, 2014, Tyco announced that it reached a definitive agreement to sell its South Korean security business, ADT Korea, and completed the transaction on May 22, 2014. The results of these businesses have been classified as discontinued operations for the current and historical periods. The revenue and operating income results shown below have been adjusted to reflect these changes in all periods presented. All comparisons are to the fiscal third quarter of 2013 unless otherwise indicated.
North America Installation & Services
Q3 2014 Q3 2013 % Change
------- ------- --------
Revenue $968 $966 -
Operating Income $117 $88 33%
Operating Margin 12.1% 9.1%
Special Items ($17) ($29)
Operating Income Before
Special Items $134 $117 15%
Operating Margin Before
Special Items 13.8% 12.1%
Revenue of $968 million was relatively consistent with the prior year as organic revenue growth was offset by the impact of divestitures and changes in foreign currency exchange rates. Both service and installation revenue grew 1% for total organic revenue growth of 1% in the quarter. Backlog of $2.5 billion increased 1% year over year and 1% on a quarter sequential basis, excluding the impact of foreign currency.
Operating income for the quarter was $117 million and the operating margin was 12.1%. Special items of $17 million consisted primarily of separation and restructuring charges. Before special items, operating income was $134 million and the operating margin was 13.8%. The 170 basis point improvement in operating margin before special items resulted from improved execution and the benefit of restructuring and productivity initiatives.
Rest of World Installation & Services
Q3 2014 Q3 2013 % Change
------- ------- --------
Revenue $1,001 $971 3%
Operating Income $101 $77 31%
Operating Margin 10.1% 7.9%
Special Items ($11) ($35)
Operating Income Before
Special Items $112 $112 -
Operating Margin Before
Special Items 11.2% 11.5%
Revenue of $1.0 billion increased 3% compared to the prior year. Organic revenue growth of 2% consisted of 4% growth in installation and 1% growth in service revenue. Acquisitions contributed 3% to revenue growth, which was partially offset by the impact of divestitures. Backlog of $2.3 billion increased 8% year over year and was relatively flat on a quarter sequential basis, excluding the impact of foreign currency.
Operating income for the quarter was $101 million and the operating margin was 10.1%. Special items of $11 million consisted primarily of restructuring charges. Before special items, operating income was $112 million, and the operating margin declined 30 basis points to 11.2%. Year over year, the operating margin was impacted by the mix of businesses contributing to growth, as well as a lower percentage of high-margin service revenue.
Global Products
Q3 2014 Q3 2013 % Change
------- ------- --------
Revenue $693 $600 15.5%
Operating Income $136 $114 19%
Operating Margin 19.6% 19.0%
Special Items ($4) ($5)
Operating Income Before
Special Items $140 $119 18%
Operating Margin Before
Special Items 20.2% 19.8%
Revenue of $693 million increased 15.5% in the quarter, including a 3% benefit from acquisitions. Organic revenue grew 12%, with strong growth across Life Safety, Security, and Fire Protection products. Organic growth in the quarter included a 5 percentage point benefit from increased shipments of Scott Safety Air-Pak X3s that had been building in backlog in advance of a late March regulatory approval.
Operating income for the quarter was $136 million and the operating margin was 19.6%. Special items of $4 million consisted primarily of restructuring charges. Before special items, operating income was $140 million and the operating margin increased 40 basis points to 20.2%. Operating leverage on increased revenue and productivity benefits were partially offset by the timing of incremental R&D investments as well as non-cash purchase accounting. Together, these items impacted the operating margin by 150 basis points.
OTHER ITEMS
-- Cash from operating activities was $152 million and free cash flow was
$74 million, which included a cash outflow of $234 million, primarily
related to a payment under our tax sharing agreements, as well as
restructuring and separation activities. Adjusted free cash flow for the
quarter was $308 million.
-- Corporate expense was $58 million for the quarter both before special
items and on a GAAP basis, as restructuring and repositioning charges
were offset by the benefit of other special items.
-- The tax rate before special items was 16.9% for the quarter.
-- During the quarter and through July 22, 2014, the company repurchased 20
million shares for $876 million. The remaining share repurchase
authorization is now $1.1 billion.
-- During the fiscal third quarter, the company decided to sell certain
businesses previously reported within its Rest of World Installation &
Services operating segment. These businesses generated $41 million of
revenue in fiscal 2013 with an operating loss of $11 million. The
results of these businesses are reflected in discontinued operations for
all periods presented.
-- As previously disclosed on May 22, 2014, the company completed the sale
of its South Korean security business, ADT Korea, in a cash transaction
valued at $1.93 billion. The results of this business are reflected in
discontinued operations for all periods presented.
-- As previously disclosed on April 9, 2014, the company's remaining stake
in Atkore International, Tyco's former electrical and metal products
business, was redeemed by Atkore in a cash transaction for $250 million.
-- During the quarter, the company completed the acquisition of a
commercial and residential security business in Belgium and reached an
agreement to purchase a residential security business in Brazil, for a
total of approximately $45 million in cash. On an annualized basis these
businesses are expected to generate revenue of approximately $35
million.
ABOUT TYCO
Tyco (NYSE: TYC) is the world's largest pure-play fire protection and security company. Tyco provides more than three million customers around the globe with the latest fire protection and security products and services. A company with $10+ billion in annual revenue, Tyco has over 57,000 employees in more than 1,000 locations across 50 countries serving various end markets, including commercial, institutional, governmental, retail, industrial, energy, residential and small business. For more information, visit www.tyco.com.
CONFERENCE CALL AND WEBCAST
Management will discuss the company's third quarter results for 2014 during a conference call and webcast today beginning at 8:00 a.m. Eastern time (ET). Today's conference call for investors can be accessed in the following ways:
-- Live via webcast - through the Investor Relations section of Tyco's
website at http://investors.tyco.com,
-- Live via telephone (for "listen-only" participants and those who would
like to ask a question) - by dialing 800-857-9797 (in the United States)
or 517-308-9262 (outside the United States), passcode "Tyco",
-- Replay via telephone - by dialing 866-456-9373 (in the United States) or
203-369-1274 (outside the United States), passcode 6779, from 10:00 a.m.
(ET) on July 25, 2014, until 11:59 p.m. (ET) on August 1, 2014, and
-- Replay via webcast - through the "Presentations & Webcasts" link on the
Investor Relations section of Tyco's website: http://investors.tyco.com.
NON-GAAP MEASURES
Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income and segment operating income, in each case "before special items," are non-GAAP measures and should not be considered replacements for GAAP results.
Organic revenue is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net revenue (the most comparable GAAP measure) and organic revenue (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures, and other changes that either do not reflect the underlying results and trends of the Company's businesses or are not completely under management's control. There are limitations associated with organic revenue, such as the fact that, as presented herein, the metric may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using organic revenue in combination with the GAAP numbers. Organic revenue may be used as a component in the company's incentive compensation plans.
FCF is a useful measure of the company's cash that permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation and is available to service debt and make investments. The difference between Cash Flows from Operating Activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash flows that the company believes are useful to identify. It, or a measure that is based on it, may be used as a component in the company's incentive compensation plans. The difference reflects the impact from:
-- net capital expenditures,
-- dealer generated accounts and bulk accounts purchased,
-- cash paid for purchase accounting and holdback liabilities, and
-- voluntary pension contributions.
Capital expenditures and dealer generated and bulk accounts purchased are subtracted because they represent long-term investments that are required for normal business activities. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general corporate uses. Voluntary pension contributions are added because this activity is driven by economic financing decisions rather than operating activity. In addition, the company presents adjusted free cash flow, which is free cash flow, adjusted to exclude the cash impact of the special items highlighted below. This number provides information to investors regarding the cash impact of certain items management believes are useful to identify, as described below.
The limitation associated with using these cash flow metrics is that they adjust for cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. Furthermore, these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using FCF in combination with the GAAP cash flow numbers.
The company has presented its income and EPS from continuing operations, operating income and segment operating income before special items. Special items include charges and gains related to divestitures, acquisitions, restructurings, impairments, certain changes to accounting methodologies, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends of the company or business segment, as applicable. The company utilizes these measures to assess overall operating performance and segment level core operating performance, as well as to provide insight to management in evaluating overall and segment operating plan execution and underlying market conditions. The Company also presents its effective tax rate as adjusted for special items for consistency, and presents corporate expense excluding special items. One or more of these measures may be used as components in the company's incentive compensation plans. These measures are useful for investors because they may permit more meaningful comparisons of the company's underlying operating results and business trends between periods. The difference between income and EPS from continuing operations before special items and income and EPS from continuing operations (the most comparable GAAP measures) consists of the impact of the special items noted above on the applicable GAAP measure. The limitation of these measures is that they exclude the impact (which may be material) of items that increase or decrease the company's reported GAAP metrics, and these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using the non-GAAP measures in combination with the most comparable GAAP measures in order to better understand the amounts, character and impact of any increase or decrease on reported results.
The company provides general corporate services to its segments and those costs are reported in the "Corporate and Other" segment. This segment's operating income (loss) is presented as "Corporate Expense." Segment Operating Income represents Tyco's operating income excluding the Corporate and Other segment, and reflects the results of Tyco's three operating segments. Segment Operating Income before special items reflects GAAP operating income adjusted for the special items noted in the paragraph above.
FORWARD-LOOKING STATEMENTS
This press release contains a number of forward-looking statements. In many cases forward-looking statements are identified by words, and variations of words, such as "anticipate", "estimate", "believe", "commit", "confident", "continue", "could", "intend", "may", "plan", "potential", "predict", "positioned", "should", "will", "expect", "objective", "projection", "forecast", "goal", "guidance", "outlook", "effort", "target", and other similar words. However, the absence of these words does not mean the statements are not forward-looking. Examples of forward-looking statements include, but are not limited to, revenue, operating income, earnings per share and other financial projections, statements regarding the health and growth prospects of the industries and end markets in which Tyco operates, the leadership, resources, potential, priorities, and opportunities for Tyco in the future, Tyco's credit profile, capital allocation priorities and other capital market related activities, and statements regarding Tyco's acquisition, divestiture, restructuring and other productivity initiatives. The forward-looking statements in this press release are based on current expectations and assumptions that are subject to risks and uncertainties, many of which are outside of our control, and could cause results to materially differ from expectations. Such risks and uncertainties include, but are not limited to: economic, business, competitive, technological or regulatory factors that adversely impact Tyco or the markets and industries in which it competes; unanticipated expenses such as litigation or legal settlement expenses; tax law changes; and industry specific events or conditions that may adversely impact revenue or other financial projections. Actual results could differ materially from anticipated results. Tyco is under no obligation (and expressly disclaims any obligation) to update its forward-looking statements. More detailed information about these and other factors is set forth in Tyco's Annual Report on Form 10-K for the fiscal year ended Sept. 27, 2013 and in subsequent filings with the Securities and Exchange Commission.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(Unaudited)
Quarters Ended Nine Months Ended
-------------- -----------------
June 27, June 28, June 27, June 28,
2014 2013 2014 2013
---- ---- ---- ----
Revenue from product sales $1,621 $1,484 $4,553 $4,319
Service revenue 1,041 1,053 3,083 3,144
----- ----- ----- -----
Net revenue 2,662 2,537 7,636 7,463
Cost of product sales 1,106 1,000 3,108 2,956
Cost of services 572 606 1,725 1,813
Selling, general and administrative expenses 671 712 1,878 2,129
Separation costs - 4 1 9
Restructuring and asset impairment charges, net 17 53 27 82
--- --- --- ---
Operating income 296 162 897 474
Interest income 4 6 10 13
Interest expense (24) (26) (73) (75)
Other expense, net - (1) (2) (30)
--- --- --- ---
Income from continuing operations before income taxes 276 141 832 382
Income tax expense (55) (23) (164) (56)
Equity gain (loss) in earnings of unconsolidated subsidiaries 215 (6) 206 (18)
--- --- --- ---
Income from continuing operations 436 112 874 308
Income from discontinued operations, net of income taxes 1,016 23 1,057 62
----- --- ----- ---
Net income 1,452 135 1,931 370
Less: noncontrolling interest in subsidiaries net (loss) income 2 - 4 -
Net income attributable to Tyco common shareholders $1,450 $135 $1,927 $370
====== ==== ====== ====
Amounts attributable to Tyco common shareholders:
Income from continuing operations $434 $112 $870 $308
Income from discontinued operations 1,016 23 1,057 62
Net income attributable to Tyco common shareholders $1,450 $135 $1,927 $370
====== ==== ====== ====
Basic earnings per share attributable to Tyco common shareholders:
Income from continuing operations $0.95 $0.24 $1.89 $0.66
Income from discontinued operations 2.22 0.05 2.29 0.14
---- ---- ---- ----
Net income attributable to Tyco common shareholders $3.17 $0.29 $4.18 $0.80
===== ===== ===== =====
Diluted earnings per share attributable to Tyco common shareholders:
Income from continuing operations $0.93 $0.24 $1.85 $0.65
Income from discontinued operations 2.18 0.04 2.26 0.13
Net income attributable to Tyco common shareholders $3.11 $0.28 $4.11 $0.78
===== ===== ===== =====
Weighted average number of shares outstanding:
Basic 458 463 461 465
Diluted 466 471 469 473
Note: These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company's Current Report on Form 8-K filed on May 16, 2014 for the fiscal year ended September 27, 2013 and Quarterly Report on Form 10-Q for the quarter
ended March 28, 2014.
TYCO INTERNATIONAL LTD.
RESULTS OF SEGMENTS
(in millions)
(Unaudited)
Quarters Ended Nine Months Ended
-------------- -----------------
June 27, 2014 June 28, 2013 June 27, 2014 June 28, 2013
------------- ------------- ------------- -------------
Net Revenue
NA Installation & Services $968 $966 $2,864 $2,895
ROW Installation & Services 1,001 971 2,909 2,856
Global Products 693 600 1,863 1,712
Total Net Revenue $2,662 $2,537 $7,636 $7,463
====== ====== ====== ======
Operating Income and Margin
NA Installation & Services $117 12.1% $88 9.1% $333 11.6% $275 9.5%
ROW Installation & Services 101 10.1% 77 7.9% 308 10.6% 250 8.8%
Global Products 136 19.6% 114 19.0% 329 17.7% 188 11.0%
Corporate and Other (58) N/M (117) N/M (73) N/M (239) N/M
--- ---- --- ----
Operating Income and Margin $296 11.1% $162 6.4% $897 11.7% $474 6.4%
==== ==== ==== ====
TYCO INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
June 27, September 27,
2014 2013
---- ----
Assets
Current Assets:
Cash and cash equivalents $1,912 $563
Accounts receivable, net 1,739 1,704
Inventories 650 645
Prepaid expenses and other current
assets 1,141 839
Deferred income taxes 250 250
Assets held for sale 27 856
--- ---
Total Current Assets 5,719 4,857
Property, plant and equipment, net 1,283 1,284
Goodwill 4,212 4,162
Intangible assets, net 765 791
Other assets 797 1,082
---
Total Assets $12,776 $12,176
======= =======
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities
of long-term debt $20 $20
Accounts payable 851 848
Accrued and other current liabilities 1,962 1,852
Deferred revenue 411 393
Liabilities held for sale 15 236
--- ---
Total Current Liabilities 3,259 3,349
Long-term debt 1,443 1,443
Deferred revenue 344 370
Other liabilities 1,689 1,881
----- -----
Total Liabilities 6,735 7,043
Redeemable noncontrolling interest 13 12
Total Tyco shareholders' equity 6,002 5,098
Nonredeemable noncontrolling interest 26 23
--- ---
Total Equity 6,028 5,121
----- -----
Total Liabilities, Redeemable
Noncontrolling Interest and Equity $12,776 $12,176
======= =======
Note: These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying
notes contained in the Company's Current Report on Form 8-K filed on May 16, 2014 for the fiscal year ended September 27,
2013 and Quarterly Report on Form 10-Q for the quarter ended March 28, 2014.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
For the Quarters Ended For the Nine Months Ended
---------------------- -------------------------
June 27, June 28, June 27, June 28,
2014 2013 2014 2013
---- ---- ---- ----
Cash Flows From Operating Activities:
Net income attributable to Tyco common shareholders $1,450 135 1,927 370
Noncontrolling interest in subsidiaries net income 2 - 4 -
Income from discontinued operations, net of income taxes (1,016) (23) (1,057) (62)
------ --- ------ ---
Income from continuing operations 436 112 874 308
Adjustments to reconcile net cash provided by operating activities:
Depreciation and amortization 89 95 270 284
Non-cash compensation expense 17 16 48 47
Deferred income taxes 29 (7) 85 (52)
Provision for losses on accounts receivable and inventory 8 16 31 52
Legacy legal matters - - (92) -
(Gain) loss on divestitures - 4 (2) 10
Loss (gain) on investments (219) 6 (214) 14
Other non-cash items 6 39 20 64
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net (78) (47) (39) (32)
Contracts in progress (44) (4) (49) (13)
Inventories 10 (39) (13) (71)
Prepaid expenses and other current assets (6) 37 (35) 73
Accounts payable 63 45 15 (44)
Accrued and other liabilities (140) (26) (360) (231)
Deferred revenue (23) (6) (13) (1)
Other 4 (33) (6) (48)
--- ---
Net cash provided by operating activities 152 208 520 360
--- ---
Net cash provided by discontinued operating activities 25 60 100 117
--- ---
Cash Flows From Investing Activities:
Capital expenditures (75) (65) (210) (205)
Proceeds from disposal of assets 1 - 7 4
Acquisition of businesses, net of cash acquired (9) (37) (63) (75)
Acquisition of dealer generated customer accounts and bulk account purchases (4) (4) (20) (14)
Sales and maturities of investments 142 64 283 103
Purchases of investments (292) (63) (332) (182)
Sale of equity investment 250 - 250 -
Other (4) 12 2 6
Net cash provided by (used in) investing activities 9 (93) (83) (363)
--- --- --- ----
Net cash provided by (used in) discontinued investing activities 1,846 (28) 1,789 (82)
----- --- ----- ---
Cash Flows From Financing Activities:
Proceeds from issuance of short-term debt 115 280 830 380
Repayment of short-term debt (116) (290) (831) (391)
Proceeds from exercise of share options 17 31 79 125
Dividends paid (83) (74) (231) (214)
Repurchase of common shares by treasury (556) (100) (806) (300)
Transfer from discontinued operations 1,871 94 1,889 65
Other - (18) (10) (35)
--- --- --- ---
Net cash provided by (used in) financing activities 1,248 (77) 920 (370)
----- --- --- ----
Net cash used in discontinued financing activities (1,871) (94) (1,889) (65)
Effect of currency translation on cash 8 (13) (8) (16)
--- --- --- ---
Net increase (decrease) in cash and cash equivalents 1,417 (37) 1,349 (419)
Less: net decrease in cash and cash equivalents related to discontinued operations - (62) - (30)
Cash and cash equivalents at beginning of period 495 430 563 844
Cash and cash equivalents at end of period $1,912 $455 $1,912 $455
====== ==== ====== ====
Reconciliation to "Free Cash Flow":
Net cash provided by operating activities $152 $208 $520 $360
Capital expenditures, net (74) (65) (203) (201)
Acquisition of dealer generated customer accounts and bulk account purchases (4) (4) (20) (14)
Purchase accounting and holdback liabilities - (1) - (7)
Free Cash Flow $74 $138 $297 $138
=== ==== ==== ====
Reconciliation to "Adjusted Free Cash Flow":
CIT settlement $ - $ - $(17) $ -
IRS litigation costs - - 1 -
Separation costs 27 20 71 168
Restructuring and repositioning costs 23 20 79 61
Environmental remediation payments 6 11 60 24
Legal settlements 6 13 6 46
Net asbestos payments (recoveries) 6 26 13 (24)
Cash payment from Covidien/TE Connectivity 147 16 149 11
Cash payment from ADT Resi/Pentair 19 - 30 -
Special Items $234 $106 $392 $286
---- ---- ---- ----
Adjusted Free Cash Flow $308 $244 $689 $424
==== ==== ==== ====
NOTE: Free cash flow is a non-GAAP measure. See description of non-GAAP measures contained in this release.
TYCO INTERNATIONAL LTD.
ORGANIC GROWTH RECONCILIATION - REVENUE
(in millions)
Quarter Ended June 27, 2014
---------------------------
Base Year
Adjustments
-----------
Net Revenue for Divestitures / Other Adjusted
the Fiscal Foreign Currency Acquisitions Organic Revenue(1) Net Revenue for the
Quarter Ended 2013 Base Quarter Ended
June 28, 2013 Revenue June 27, 2014
------------- ------- -------------
NA Installation & Services $966 $(6) (0.6)% $960 $(7) (0.7)% $5 0.5% $10 1.0% $968 0.2%
ROW Installation & Services 971 (20) (2.1)% 951 - - % 27 2.8% 23 2.4% 1,001 3.1%
Global Products 600 - - % 600 1 0.2% 19 3.2% 73 12.2% 693 15.5%
--- --- --- --- --- --- --- --- --- --- ---- --- ----
Total Net Revenue $2,537 $(26) (1.0)% $2,511 $(6) (0.2)% $51 2.0% $106 4.2% $2,662 4.9%
------ ---- ----- ------ --- ----- --- --- ---- --- ------ ---
(1) Organic revenue growth percentage based on adjusted fiscal 2013 base revenue.
Nine Months Ended June 27, 2014
-------------------------------
Base Year
Adjustments
-----------
Net Revenue for Divestitures / Other(2) Adjusted
the Fiscal Foreign Currency Acquisitions Organic Revenue(1) Net Revenue for the
Nine Months Ended 2013 Base Nine Months Ended
June 28, 2013 Revenue June 27, 2014
------------- ------- -------------
NA Installation & Services $2,895 $(42) (1.5)% $2,853 $(24) (0.8)% $14 0.5% $21 0.7% $2,864 (1.1)%
ROW Installation & Services 2,856 (47) (1.6)% 2,809 (52) (1.8)% 99 3.5% 53 1.9% 2,909 1.9%
Global Products 1,712 2 0.1% 1,714 (6) (0.4)% 56 3.3% 99 5.8% 1,863 8.8%
----- --- --- ----- --- ----- --- --- --- --- ----- ---
Total Net Revenue $7,463 $(87) (1.2)% $7,376 $(82) (1.1)% $169 2.3% $ 2.3% $7,636 2.3%
173
---
(1) Organic revenue growth percentage based on adjusted fiscal 2013 base revenue.
(2) Amounts include the transfer of a business from NA Installation & Services to Global Products.
Earnings Per Share Summary
(Unaudited)
Quarter Ended Quarter Ended Year Ended
------------- ------------- ----------
Dec. 27, March 28, 2014 June 27, Dec. 28, March 29, 2013 June 28, Sept. 27, Sept. 27, 2013
2013 2014 2012 2013 2013
---- ---- ---- ---- ----
Diluted EPS from Continuing Operations Attributable to Tyco $0.52 $0.40 $0.93 $0.30 $0.11 $0.24 $0.29 $0.94
Shareholders (GAAP)
expense / (benefit)
Restructuring and repositioning activities 0.01 0.02 0.05 0.01 0.04 0.10 0.06 0.21
Separation costs included in SG&A 0.02 0.02 0.02 0.01 0.04 0.04 0.02 0.10
(Gains) / losses on divestitures, net included in SG&A - - - - 0.02 - 0.02 0.04
Acquisition / integration costs - - - - - - - 0.01
Asbestos - - (0.01) - - 0.03 - 0.03
Environmental remediation - - - 0.01 0.12 - - 0.13
Tyco share of Atkore impairment - - - - - - 0.04 0.03
Legacy legal items - - - - - 0.04 - 0.04
Loss on sale of investment 0.01 - - - - - - -
CIT settlement (0.03) - - - - - - -
Settlement with former management (0.11) - (0.01) - - - - -
Separation costs - - - 0.01 - 0.01 - 0.02
Tax items - 0.01 0.02 0.01 - - 0.04 0.04
2012 Tax Sharing Agreement - 0.01 - 0.02 0.04 - - 0.07
Gain on sale of Atkore divestiture - - (0.46) - - - - -
Total Before Special Items $0.42 $0.46 $0.54 $0.37 $0.37 $0.46 $0.47 $1.66
===== ===== ===== ===== ===== ===== ===== =====
Note: Prior periods have been
recast to present certain
businesses as a discontinued
operation.
Tyco International Ltd.
For the Quarter Ended December
28, 2013
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $957 $971 $565 $2,493 $- $2,493
------------- ---- ---- ---- ------ --- ------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------ ------------
Operating Income (GAAP) $117 12.2% $95 9.8% $86 15.2% $298 12.0% $46 N/M $344 13.8% ($21) ($1) ($70) ($4) ($2) $246 $0.52
---------------------- ---- ---- --- --- --- ---- ---- ---- --- --- ---- ---- ---- --- ---- --- --- ---- -----
Restructuring (2) 4 2 7 9 (2) 7 0.01
and repositioning
activities
Separation costs included in SG&A 14 14 1 15 (6) 9 0.02
(Gains) /losses on divestitures,
net included in SG&A (3) (3) (3) -
Acquisition / integration costs 1 1 1 1 -
Settlement with former management (92) (92) 36 (56) (0.11)
Asbestos 1 1 (1) - -
IRS litigation costs 1 1 1 -
CIT settlement (16) (16) (16) (0.03)
Loss on sale of investment 7 7 7 7 0.01
2012 Tax Sharing Agreement 2 2 -
Total Before Special Items $129 13.5% $103 10.6% $90 15.9% $322 12.9% ($55) N/M $267 10.7% ($21) $1 ($43) ($4) ($2) $198 $0.42
-------------------------- ---- ---- ---- ---- --- ---- ---- ---- ---- --- ---- ---- ---- --- ---- --- --- ---- -----
Note: This period has been recast to present certain businesses as a discontinued operation. Diluted Shares Outstanding 471
--------------------------
Diluted Shares Outstanding - Before Special Items 471
------------------------------------------------- ---
Tyco International Ltd.
For the Quarter Ended March 28,
2014
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $939 $937 $605 $2,481 $- $2,481
------------- ---- ---- ---- ------ --- ------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------ ------------
Operating Income (GAAP) $99 10.5% $112 12.0% $107 17.7% $318 12.8% ($61) N/M $257 10.4% ($22) ($1) ($39) ($5) - $190 $0.40
---------------------- --- ---- ---- ---- ---- ---- ---- ---- ---- --- ---- ---- ---- --- ---- --- --- ---- -----
Restructuring and
repositioning activities 3 4 2 9 7 16 (6) 10 0.02
Separation costs included in
SG&A 15 15 15 (5) 10 0.02
(Gains) /losses on
divestitures, net included
in SG&A 1 1 1 1 -
Acquisition /integration
costs 1 1 1 1 -
IRS litigation costs (1) (1) (1) -
Separation costs 1 1 1 -
Tax items 4 4 0.01
2012 Tax Sharing Agreement 3 3 0.01
Total Before Special Items $117 12.5% $118 12.6% $109 18.0% $344 13.9% ($54) N/M $290 11.7% ($22) $2 ($46) ($5) - $219 $0.46
-------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- ---- ---- ---- --- ---- --- --- ---- -----
Note: This period has been recast to present certain businesses as a discontinued operation. Diluted Shares Outstanding 469
--------------------------
Diluted Shares Outstanding - Before Special Items 469
------------------------------------------------- ---
Tyco International Ltd.
For the Quarter Ended June 27,
2014
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $968 $1,001 $693 $2,662 $- $2,662
------------- ---- ------ ---- ------ --- ------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------ ------------
Operating Income
(GAAP) $117 12.1% $101 10.1% $136 19.6% $354 13.3% ($58) N/M $296 11.1% ($20) - ($55) $215 ($2) $434 $0.93
---------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- ---- ---- ---- --- ---- ---- --- ---- -----
Restructuring and
repositioning
activities 6 11 3 20 10 30 (9) 21 0.05
Separation costs
included in SG&A 11 11 11 (1) 10 0.02
Acquisition /
integration costs 1 1 1 1 -
Settlement with
former management (4) (4) 1 (3) (0.01)
Asbestos (6) (6) 3 (3) (0.01)
Tax items 9 9 0.02
Gain on sale of
Atkore
divestiture (216) (216) (0.46)
Total Before
Special Items $134 13.8% $112 11.2% $140 20.2% $386 14.5% ($58) N/M $328 12.3% ($20) $- ($52) ($1) ($2) $253 $0.54
-------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- ---- ---- ---- --- ---- --- --- ---- -----
Diluted Shares Outstanding 466
--------------------------
Diluted Shares Outstanding - Before Special Items 466
------------------------------------------------- ---
Tyco International Ltd.
For the Quarter Ended December
28, 2012
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $976 $953 $534 $2,463 $- $2,463
------------- ---- ---- ---- ------ --- ------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------ ------------
Operating Income (GAAP) $108 11.1% $94 9.9% $74 13.9% $276 11.2% ($61) N/M $215 8.7% ($20) ($9) ($35) ($6) ($2) $143 $0.30
---------------------- ---- ---- --- --- --- ---- ---- ---- ---- --- ---- --- ---- --- ---- --- --- ---- -----
Restructuring, net 4 2 6 1 7 (1) 6 0.01
Separation costs included in
SG&A 12 12 1 13 (5) 8 0.01
(Gains) /losses on
divestitures, net included in
SG&A (3) (3) (3) -
Acquisition /integration
costs 1 1 1 1 -
Asbestos (1) (1) (1) -
Environmental remediation 6 6 6 (2) 4 0.01
Separation costs 5 5 5 0.01
Tax items 4 4 0.01
2012 Tax Sharing Agreement 10 10 0.02
Total Before Special Items $120 12.3% $98 10.3% $83 15.5% $301 12.2% ($58) N/M $243 9.9% ($20) $1 ($39) ($6) ($2) $177 $0.37
-------------------------- ---- ---- --- ---- --- ---- ---- ---- ---- --- ---- --- ---- --- ---- --- --- ---- -----
Note: This period has been recast to present certain businesses as a discontinued operation. Diluted Shares Outstanding 473
--------------------------
Diluted Shares Outstanding - Before Special Items 473
------------------------------------------------- ---
Tyco International Ltd.
For the Quarter Ended March 29,
2013
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $953 $932 $578 $2,463 $- $2,463
------------- ---- ---- ---- ------ --- ------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------ ------------
Operating Income (GAAP) $79 8.3% $79 8.5% - - $158 6.4% ($61) N/M $97 3.9% ($22) ($20) $2 ($6) $2 $53 $0.11
---------------------- --- --- --- --- --- --- ---- --- ---- --- --- --- ---- ---- --- --- --- --- -----
Restructuring and
repositioning activities 6 13 3 22 4 26 (7) 19 0.04
Separation costs included in
SG&A 16 16 16 3 19 0.04
(Gains) /losses on
divestitures, net included in
SG&A 3 1 4 5 9 9 0.02
Asbestos (1) (1) 1 - -
Environmental remediation 94 94 94 (37) 57 0.12
2012 Tax Sharing Agreement 20 20 0.04
Total Before Special Items $104 10.9% $93 10.0% $97 16.8% $294 11.9% ($53) N/M $241 9.8% ($22) - ($38) ($6) $2 $177 $0.37
-------------------------- ---- ---- --- ---- --- ---- ---- ---- ---- --- ---- --- ---- --- ---- --- --- ---- -----
Note: This period has been recast to present certain businesses as a discontinued operation. Diluted Shares Outstanding 474
--------------------------
Diluted Shares Outstanding - Before Special Items 474
------------------------------------------------- ---
Tyco International Ltd.
For the Quarter Ended June 28,
2013
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $966 $971 $600 $2,537 $- $2,537
------------- ---- ---- ---- ------ --- ------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------
Operating Income (GAAP) $88 9.1% $77 7.9% $114 19.0% $279 11.0% ($117) N/M $162 6.4% ($20) ($1) ($23) ($6) - $112 $0.24
---------------------- --- --- --- --- ---- ---- ---- ---- ----- --- ---- --- ---- --- ---- --- --- ---- -----
Restructuring and repositioning activities 16 34 5 55 3 58 (11) 47 0.10
Separation costs included in SG&A 12 12 6 18 (3) 15 0.04
(Gains) /losses on divestitures, net
included in SG&A 1 1 3 4 (2) 2 -
Acquisition/integration costs 1 1 1 1 -
Asbestos 12 12 (1) 11 0.03
Legacy legal items 27 27 (9) 18 0.04
Separation costs 4 4 4 0.01
Tax items 2 2 -
2012 Tax Sharing Agreement 1 1 -
Total Before Special Items $117 12.1% $112 11.5% $119 19.8% $348 13.7% ($62) N/M $286 11.3% ($20) - ($47) ($6) - $213 $0.46
-------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- ---- ---- ---- --- ---- --- --- ---- -----
Note: This period has been recast to present certain businesses as a discontinued operation. Diluted Shares Outstanding 471
--------------------------
Diluted Shares Outstanding - Before Special Items 471
------------------------------------------------- ---
Tyco International Ltd.
For the Quarter Ended September
27, 2013
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $996 $987 $627 $2,610 $- $2,610
------------- ---- ---- ---- ------ --- ------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------ ------------
Operating Income (GAAP) $113 11.3% $83 8.4% $119 19.0% $315 12.1% ($80) N/M $235 9.0% ($22) $1 ($52) ($30) $3 $135 $0.29
---------------------- ---- ---- --- --- ---- ---- ---- ---- ---- --- ---- --- ---- --- ---- ---- --- ---- -----
Restructuring and
repositioning activities 14 12 2 28 11 39 (14) 25 0.06
Separation costs included in
SG&A 9 9 5 14 (8) 6 0.02
(Gains) /losses on
divestitures, net included
in SG&A (3) 13 10 10 10 0.02
Acquisition /integration
costs 1 1 2 2 2 -
Asset impairment charges 1 1 1 1 -
Asbestos 2 2 2 -
Tyco share of Atkore
impairment 21 21 0.04
Separation costs (1) (1) (1) -
Tax items 16 16 0.04
2012 Tax Sharing Agreement 1 1 -
Total Before Special Items $133 13.4% $110 11.1% $122 19.5% $365 14.0% ($63) N/M $302 11.6% ($22) $2 ($58) ($9) $3 $218 $0.47
-------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- ---- ---- ---- --- ---- --- --- ---- -----
Note: This period has been recast to present certain businesses as a discontinued operation. Diluted Shares Outstanding 471
Diluted Shares Outstanding - Before Special Items 471
------------------------------------------------- ---
Tyco International Ltd.
For the Year Ended September 27,
2013
(in millions, except per share
data)
(Unaudited)
expense / (benefit)
Segments
--------
NA ROW Global Segment Corporate Total
Installation Installation Products Revenue and Other Revenue
& Services & Services
Revenue (GAAP) $3,891 $3,843 $2,339 $10,073 $- $10,073
------------- ------ ------ ------ ------- --- -------
Operating Income
----------------
NA Margin ROW Margin Global Margin Segment Margin Corporate Margin Total Margin Interest Other Income Equity in Noncontrolling Income Diluted
from EPS from
Continuing Continuing
Operations Operations
Installation Installation Products Operating and Operating (Expense), (Expense), Tax earnings of Interest
Attributable
to Tyco
Shareholders Attributable
& Services & Services Income Other Income net net (Expense) unconsolidated
to Tyco
subsidiaries Shareholders
------------ ------------
Operating Income (GAAP) $388 10.0% $333 8.7% $307 13.1% $1,028 10.2% ($319) N/M $709 7.0% ($84) ($29) ($108) ($48) $3 $443 $0.94
---------------------- ---- ---- ---- --- ---- ---- ------ ---- ----- --- ---- --- ---- ---- ----- ---- --- ---- -----
Restructuring and
repositioning activities 36 63 12 111 19 130 (33) 97 0.21
Separation costs included in
SG&A 49 49 12 61 (13) 48 0.10
(Gains) /losses on
divestitures, net included in
SG&A 1 14 15 5 20 (2) 18 0.04
Acquisition /integration
costs 2 2 4 4 4 0.01
Asset impairment charges 1 1 1 1 -
Asbestos 12 12 12 0.03
Environmental remediation 100 100 100 (39) 61 0.13
Tyco share of Atkore
impairment 21 21 0.03
Legacy legal items 27 27 (9) 18 0.04
Separation costs 8 8 8 0.02
Tax items 22 22 0.04
2012 Tax Sharing Agreement 32 32 0.07
Total Before Special Items $474 12.2% $413 10.7% $421 18.0% $1,308 13.0% ($236) N/M $1,072 10.6% ($84) $3 ($182) ($27) $3 $785 $1.66
-------------------------- ---- ---- ---- ---- ---- ---- ------ ---- ----- --- ------ ---- ---- --- ----- ---- --- ---- -----
Note: This period has been recast to present certain businesses as a discontinued operation. Diluted Shares Outstanding 472
--------------------------
Diluted Shares Outstanding - Before Special Items 472
------------------------------------------------- ---
SOURCE Tyco
