- Sales of $750 million, down 2% vs. prior year; Core sales
increased 3%
- GAAP diluted net EPS of $0.60; Adjusted diluted net EPS of
$0.73
- Operating cash flow was $122 million; Adjusted free cash flow
was $109 million, representing 98% Adjusted free cash flow
conversion
- Initiates Q4 2024 guidance for adjusted diluted net EPS of
~$0.79
- Narrows full year 2024 adjusted diluted net EPS to midpoint of
~$2.90
Vontier Corporation (NYSE: VNT), a leading global provider of
critical technologies and solutions to connect, manage and scale
the mobility ecosystem, today announced results for the third
quarter ended September 27, 2024.
Reported sales in the third quarter declined 2.0% year-over-year
to $750.0 million, reflecting the absence of sales from divested
businesses. Core sales increased 2.8% reflecting improved demand
for retail fueling equipment and continued strong demand for
convenience retail payment and enterprise productivity solutions,
partially offset by ongoing macroeconomic pressures on the car wash
and auto repair markets. Operating profit of $131.5 million
declined 7.8% from the prior year, and operating profit margin
decreased approximately 110 basis points, to 17.5%. Adjusted
operating profit of $159.6 million declined 6% from the prior year
and adjusted operating profit margin decreased approximately 80
basis points, to 21.3%. Net earnings were $91.8 million, and
adjusted net earnings were $111.1 million, resulting in GAAP
diluted net earnings per share of $0.60 and adjusted diluted net
earnings per share of $0.73.
“Vontier delivered solid third quarter results overall, with
performance that exceeded our expectations as we continue to
capitalize on strong momentum across our Convenience Retail and
Fueling end markets, where we are gaining traction on new product
introductions,” said Mark Morelli, President and Chief Executive
Officer. “Most of our end markets remain constructive, and we are
seeing encouraging signs of market stabilization in the parts of
our businesses impacted by softer market demand.”
“We continue to advance our Connected Mobility strategy through
innovative solutions that enable our customers’ digital
transformation journey,” Morelli continued. “Vontier is uniquely
positioned to lead this evolution, and I am confident we are on the
right trajectory.”
Segment Results
Environmental & Fueling
Solutions
Q3 2024
Q3 2023
Change
Sales ($M)
$
349.9
$
331.6
5.5
%
Segment Operating Profit ($M)
$
103.0
$
95.7
7.6
%
Segment Operating Profit Margin
29.4
%
28.9
%
50bps
Environmental & Fueling Solutions reported sales increased
5.5% from the prior year. Core sales increased 8.5%, driven by
strong growth in North America and International dispenser
equipment, aftermarket parts and environmental equipment. Segment
operating profit margin expanded 50 basis points resulting from
positive price contribution and ongoing productivity savings.
Mobility Technologies
Q3 2024
Q3 2023
Change
Sales(a) ($M)
$
257.4
$
247.7
3.9
%
Segment Operating Profit ($M)
$
46.6
$
51.4
(9.3
)%
Segment Operating Profit Margin
18.1
%
20.8
%
-270bps
(a) Includes $9.4 million of intersegment
sales for Q3 2024 that are eliminated in consolidation.
Mobility Technologies reported sales increased 3.9% from the
prior year. Core sales also increased 4.2% year-over-year, as
continued demand for convenience retail payment and enterprise
productivity solutions were partially offset by lower demand for
car wash technologies, as anticipated. Segment operating profit
margin declined 270 basis points year-over-year, the result of
unfavorable mix and higher R&D investments at Invenco by
GVR.
Repair Solutions
Q3 2024
Q3 2023
Change
Sales ($M)
$
152.1
$
160.2
(5.1
)%
Segment Operating Profit ($M)
$
32.6
$
43.3
(24.7
)%
Segment Operating Profit Margin
21.4
%
27.0
%
-560bps
Repair Solutions reported sales declined 5.1% from the prior
year. Core sales also declined 5.1%, as a result of ongoing
macroeconomic pressures among service technicians, which impacts
discretionary spending on high ticket items. Segment operating
profit margin declined 560 basis points on lower volumes, sales
mix, and the timing of bad debt reserves.
Other Items
- Repurchased ~$105 million, or ~3.1 million shares during the
quarter (~$165 million year-to-date)
- Net leverage ratio ended Q3 at 2.7x
2024 Outlook
- Total sales $2,955 to $2,985 million; Core sales +0.7% to
+1.7%
- Adjusted operating profit margin approximately flat
year-over-year
- Adjusted diluted net earnings per share in the range of $2.86
to $2.92
- Adjusted free cash flow conversion of ~90%
Q4 2024 Outlook
- Total sales approximately $770 million; Core sales
approximately +1.5%
- Adjusted operating profit margin down approximately 20 basis
points year-over-year
- Adjusted diluted net earnings per share approximately
$0.79
Conference Call Details
Vontier will discuss results and outlook during its quarterly
investor conference call today starting at 8:30 a.m. ET. The call
and an accompanying slide presentation will be webcast on the
“Investors” section of Vontier’s website, www.vontier.com, under
“Events & Presentations.” A replay of the webcast will be
available at the same location shortly after the conclusion of the
presentation.
The call can be accessed via webcast or by dialing +1
800-549-8228, along with the conference ID: 47424. A replay of the
webcast will be available at the same location shortly after the
conclusion of the presentation, or by dialing +1 888-660-6264,
along with the passcode 47424 or under the “Investors” section of
the Vontier website under “Events & Presentations.”
ABOUT VONTIER
Vontier (NYSE: VNT) is a global industrial technology company
uniting productivity, automation and multi-energy technologies to
meet the needs of a rapidly evolving, more connected mobility
ecosystem. Leveraging leading market positions, decades of domain
expertise and unparalleled portfolio breadth, Vontier enables the
way the world moves – delivering smart, safe and sustainable
solutions to our customers and the planet. Vontier has a culture of
continuous improvement and innovation built upon the foundation of
the Vontier Business System and embraced by colleagues worldwide.
Additional information about Vontier is available on the Company’s
website at www.vontier.com.
NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), this earnings
release also references “core sales growth,” “adjusted operating
profit,” “adjusted operating profit margin,” “segment operating
profit,” “segment operating profit margin,” “adjusted net
earnings,” “adjusted diluted net earnings per share,” “free cash
flow,” “adjusted free cash flow,” “adjusted free cash flow
conversion,” “EBITDA,” “adjusted EBITDA” and “net leverage ratio,”
which are non-GAAP financial measures. The reasons why we believe
these measures, when used in conjunction with the GAAP financial
measures, provide useful information to investors, how management
uses such non-GAAP financial measures, a reconciliation of these
measures to the most directly comparable GAAP measures and other
information relating to these measures are included in the
supplemental reconciliation schedule attached. The non-GAAP
financial measures should not be considered in isolation or as a
substitute for the GAAP financial measures, but should instead be
read in conjunction with the GAAP financial measures. The non-GAAP
financial measures used by Vontier in this release may be different
from similarly-titled non-GAAP measures used by other
companies.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the
meaning of the federal securities laws. These statements include,
but are not limited to statements regarding Vontier Corporation’s
(the “Company’s”) business and acquisition opportunities and
anticipated earnings, and any other statements identified by their
use of words like “anticipate,” “expect,” “believe,” “outlook,”
“guidance,” or “will” or other words of similar meaning. There are
a number of important risks and uncertainties that could cause
actual results, developments and business decisions to differ
materially from those suggested or indicated by such
forward-looking statements and you should not place undue reliance
on any such forward-looking statements. These risks and
uncertainties include, among other things, deterioration of or
instability in the economy, the markets we serve, international
trade policies and the financial markets, contractions or lower
growth rates and cyclicality of markets we serve, competition,
changes in industry standards and governmental regulations that may
adversely impact demand for our products or our costs, our ability
to successfully identify, consummate, integrate and realize the
anticipated value of appropriate acquisitions and successfully
complete divestitures and other dispositions, our ability to
develop and successfully market new products, software, and
services and expand into new markets, the potential for improper
conduct by our employees, agents or business partners, impact of
divestitures, contingent liabilities relating to acquisitions and
divestitures, impact of changes to tax laws, our compliance with
applicable laws and regulations and changes in applicable laws and
regulations, risks relating to global economic, political, war or
hostility, legal, compliance and business factors, risks relating
to potential impairment of goodwill and other intangible assets,
currency exchange rates, tax audits and changes in our tax rate and
income tax liabilities, the impact of our debt obligations on our
operations, litigation and other contingent liabilities including
intellectual property and environmental, health and safety matters,
our ability to adequately protect our intellectual property rights,
risks relating to product, service or software defects, product
liability and recalls, risks relating to product manufacturing, our
relationships with and the performance of our channel partners,
commodity costs and surcharges, our ability to adjust purchases and
manufacturing capacity to reflect market conditions, reliance on
sole sources of supply, security breaches or other disruptions of
our information technology systems, adverse effects of
restructuring activities, impact of changes to U.S. GAAP, labor
matters, and disruptions relating to man-made and natural
disasters. Additional information regarding the factors that may
cause actual results to differ materially from these
forward-looking statements is available in our SEC filings,
including our Form 10-K for the year ended December 31, 2023. These
forward-looking statements represent Vontier’s beliefs and
assumptions only as of the date of this release and Vontier does
not assume any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events
and developments or otherwise.
VONTIER CORPORATION AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(in millions)
(unaudited)
September 27, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
330.9
$
340.9
Accounts receivable, net
531.4
497.5
Inventories
333.0
296.6
Prepaid expenses and other current
assets
147.7
141.4
Current assets held for sale
—
56.1
Total current assets
1,343.0
1,332.5
Property, plant and equipment, net
123.5
102.3
Operating lease right-of-use assets
50.2
47.0
Long-term financing receivables, net
288.4
276.2
Other intangible assets, net
508.6
568.3
Goodwill
1,743.9
1,742.4
Other assets
249.5
225.3
Total assets
$
4,307.1
$
4,294.0
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion
of long-term debt
$
5.4
$
106.6
Trade accounts payable
370.2
366.8
Current operating lease liabilities
16.1
14.0
Accrued expenses and other current
liabilities
426.5
435.8
Current liabilities held for sale
—
32.1
Total current liabilities
818.2
955.3
Long-term operating lease liabilities
39.9
37.1
Long-term debt
2,191.1
2,189.0
Other long-term liabilities
214.5
217.0
Total liabilities
3,263.7
3,398.4
Commitments and Contingencies
Equity:
Preferred stock
—
—
Common stock
—
—
Treasury stock
(567.6
)
(403.4
)
Additional paid-in capital
75.8
56.8
Retained earnings
1,419.3
1,132.1
Accumulated other comprehensive income
107.1
104.9
Total Vontier stockholders’ equity
1,034.6
890.4
Noncontrolling interests
8.8
5.2
Total equity
1,043.4
895.6
Total liabilities and equity
$
4,307.1
$
4,294.0
VONTIER CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
EARNINGS
(in millions, except per share
amounts)
(unaudited)
Three Months Ended
Nine Months Ended
September 27, 2024
September 29, 2023
September 27, 2024
September 29, 2023
Sales
$
750.0
$
765.4
$
2,202.2
$
2,306.2
Operating costs and expenses:
Cost of sales, excluding amortization of
acquisition-related intangible assets
(395.8
)
(406.4
)
(1,140.5
)
(1,246.1
)
Selling, general and administrative
expenses
(157.0
)
(157.2
)
(478.7
)
(481.6
)
Research and development expenses
(45.7
)
(39.1
)
(135.3
)
(120.4
)
Amortization of acquisition-related
intangible assets
(20.0
)
(20.1
)
(60.0
)
(61.1
)
Operating profit
131.5
142.6
387.7
397.0
Non-operating income (expense), net:
Interest expense, net
(18.9
)
(22.8
)
(56.2
)
(70.7
)
Gain on sale of business
—
0.3
37.2
34.4
Other non-operating expense, net
(0.3
)
(0.2
)
(1.6
)
(1.6
)
Earnings before income taxes
112.3
119.9
367.1
359.1
Provision for income taxes
(20.5
)
(29.3
)
(68.4
)
(88.4
)
Net earnings
$
91.8
$
90.6
$
298.7
$
270.7
Net earnings per share:
Basic
$
0.60
$
0.59
$
1.94
$
1.74
Diluted
$
0.60
$
0.58
$
1.93
$
1.73
Weighted average shares outstanding:
Basic
152.4
154.8
153.8
155.3
Diluted
153.2
155.8
154.7
156.1
VONTIER CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in millions)
(unaudited)
Nine Months Ended
September 27, 2024
September 29, 2023
Cash flows from operating activities:
Net earnings
$
298.7
$
270.7
Non-cash items:
Depreciation expense
34.5
32.7
Amortization of acquisition-related
intangible assets
60.0
61.1
Stock-based compensation expense
25.3
24.1
Gain on sale of business
(37.2
)
(34.4
)
Change in deferred income taxes
(11.4
)
(16.1
)
Other non-cash items
5.0
2.4
Change in accounts receivable and
long-term financing receivables, net
(46.2
)
(33.6
)
Change in other operating assets and
liabilities
(69.3
)
(16.8
)
Net cash provided by operating
activities
259.4
290.1
Cash flows from investing activities:
Proceeds from sale of business, net of
cash provided
68.4
107.5
Payments for additions to property, plant
and equipment
(62.6
)
(43.5
)
Proceeds from sale of property, plant and
equipment
1.3
4.3
Cash paid for equity investments
(2.3
)
(2.7
)
Proceeds from sale of equity
securities
0.2
20.4
Net cash provided by investing
activities
5.0
86.0
Cash flows from financing activities:
Repayment of long-term debt
(100.0
)
(240.0
)
Net (repayments of) proceeds from
short-term borrowings
(1.2
)
1.4
Payments of common stock cash dividend
(11.5
)
(11.7
)
Purchases of treasury stock
(164.6
)
(61.6
)
Proceeds from stock option exercises
14.4
6.0
Other financing activities
(13.9
)
(7.4
)
Net cash used in financing
activities
(276.8
)
(313.3
)
Effect of exchange rate changes on cash
and cash equivalents
2.4
(3.7
)
Net change in cash and cash
equivalents
(10.0
)
59.1
Beginning balance of cash and cash
equivalents
340.9
204.5
Ending balance of cash and cash
equivalents
$
330.9
$
263.6
VONTIER CORPORATION AND
SUBSIDIARIES
SEGMENT FINANCIAL
SUMMARY
(in millions)
(unaudited)
Three Months Ended
Nine Months Ended
September 27, 2024
September 29, 2023
September 27, 2024
September 29, 2023
Sales
Mobility Technologies
$
257.4
$
247.7
$
737.7
$
732.4
Repair Solutions
152.1
160.2
485.3
500.0
Environmental & Fueling Solutions
349.9
331.6
992.1
984.7
Other
—
25.9
1.3
89.1
Intersegment eliminations
(9.4
)
—
(14.2
)
—
Total Vontier Sales
$
750.0
$
765.4
$
2,202.2
$
2,306.2
Operating Profit (GAAP)
$
131.5
$
142.6
$
387.7
$
397.0
Segment & Adjusted Operating
Profit
Mobility Technologies
$
46.6
$
51.4
$
135.4
$
144.0
Repair Solutions
32.6
43.3
109.4
132.2
Environmental & Fueling Solutions
103.0
95.7
289.6
271.6
Other
—
2.2
(0.4
)
8.2
Segment Operating Profit (Non-GAAP)
182.2
192.6
534.0
556.0
Corporate & Other Unallocated
Costs
(22.6
)
(23.5
)
(66.1
)
(65.6
)
Adjusted Operating Profit (Non-GAAP)
$
159.6
$
169.1
$
467.9
$
490.4
Segment & Adjusted Operating Profit
Margin
Mobility Technologies
18.1
%
20.8
%
18.4
%
19.7
%
Repair Solutions
21.4
%
27.0
%
22.5
%
26.4
%
Environmental & Fueling Solutions
29.4
%
28.9
%
29.2
%
27.6
%
Other
—
%
8.5
%
(30.8
%)
9.2
%
Segment Operating Profit Margin
(Non-GAAP)
24.3
%
25.2
%
24.2
%
24.1
%
Adjusted Operating Profit Margin
(Non-GAAP)
21.3
%
22.1
%
21.2
%
21.3
%
VONTIER CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND
OTHER INFORMATION
Core Sales Growth
We define core sales growth as the change in total sales
calculated according to GAAP but excluding (i) sales from acquired
and certain divested businesses; (ii) the impact of currency
translation; and (iii) certain other items.
- References to sales attributable to acquisitions or acquired
businesses refer to GAAP sales from acquired businesses recorded
prior to the first anniversary of the acquisition less the amount
of sales attributable to certain divested or exited businesses or
product lines not considered discontinued operations.
- The portion of sales attributable to the impact of currency
translation is calculated as the difference between (a) the
period-to-period change in sales (excluding sales from acquired
businesses) and (b) the period-to-period change in sales, including
foreign operations, (excluding sales from acquired businesses)
after applying the current period foreign exchange rates to the
prior year period.
- The portion of sales attributable to other items is calculated
as the impact of those items which are not directly correlated to
core sales which do not have an impact on the current or comparable
period.
Core sales growth should be considered in addition to, and not
as a replacement for or superior to, total sales, and may not be
comparable to similarly titled measures reported by other
companies.
Management believes that reporting the non-GAAP financial
measure of core sales growth provides useful information to
investors by helping identify underlying growth trends in our
business and facilitating easier comparisons of our sales
performance with our performance in prior and future periods and to
our peers. We exclude the effect of acquisitions and certain
divestiture-related items because the nature, size and number of
such transactions can vary dramatically from period to period and
between us and our peers. We exclude the effect of currency
translation and certain other items from core sales because these
items are either not under management’s control or relate to items
not directly correlated to core sales growth. Management believes
the exclusion of these items from core sales growth may facilitate
assessment of underlying business trends and may assist in
comparisons of long-term performance.
Adjusted Operating Profit and Adjusted Operating Profit
Margin
Adjusted operating profit refers to operating profit calculated
in accordance with GAAP, but excluding amortization of
acquisition-related intangible assets, costs associated with
restructurings including one-time termination benefits and related
charges and impairment and other charges associated with facility
closure, contract termination and other related activities, and the
related impact of certain divested or exited businesses or product
lines not considered discontinued operations ("Restructuring- and
divestiture-related adjustments"), transaction- and deal-related
costs, asbestos-related adjustments associated with certain
divested businesses, one-time costs related to the separation,
amortization of acquisition-related inventory fair value step-up,
gains and losses on sale of property, and other charges which
represent charges incurred that are not part of our core operating
results (“Other charges”). Adjusted operating profit margin refers
to adjusted operating profit divided by GAAP sales.
Segment Operating Profit and Segment Operating Profit
Margin
Segment operating profit is used by Vontier’s management in
determining how to allocate resources and assess performance.
Segment operating profit represents total segment sales less
operating costs attributable to the segment, which does not include
unallocated corporate costs and other operating costs not allocated
to the reportable segments as part of management’s assessment of
reportable segment operating performance, including stock-based
compensation expense, amortization of acquisition-related
intangible assets and other costs shown in the reconciliation to
GAAP operating profit below. As part of management’s assessment of
the Repair Solutions segment, a capital charge based on the
segment’s financing receivables portfolio is assessed by Corporate.
Segment operating profit margin refers to segment operating profit
divided by GAAP sales.
Adjusted Net Earnings and Adjusted Diluted Net Earnings per
Share
Adjusted net earnings refers to net earnings calculated in
accordance with GAAP, but excluding on a pretax basis amortization
of acquisition-related intangible assets, Restructuring- and
divestiture-related adjustments, transaction- and deal-related
costs, asbestos-related adjustments associated with certain
divested businesses, one-time costs related to the separation,
amortization of acquisition-related inventory fair value step-up,
gains and losses on sale of property, Other charges, non-cash
write-offs of deferred financing costs, gains and losses on sale of
businesses and gains and losses on investments, including the tax
effect of these adjustments and other tax adjustments. The tax
effect of such adjustments was calculated by applying our estimated
adjusted effective tax rate to the pretax amount of each
adjustment. Adjusted diluted net earnings per share refers to
adjusted net earnings divided by the weighted average diluted
shares outstanding.
Free Cash Flow, Adjusted Free Cash Flow and Adjusted Free
Cash Flow Conversion
Free cash flow refers to cash flow from operations calculated
according to GAAP but excluding capital expenditures. Adjusted free
cash flow refers to free cash flow adjusted for cash received from
the sale of property, plant and equipment and cash paid for
Restructuring- and divestiture-related adjustments, transaction-
and deal-related costs and Other charges. Adjusted free cash flow
conversion refers to adjusted free cash flow divided by adjusted
net earnings.
Net Leverage Ratio, EBITDA and Adjusted EBITDA
EBITDA refers to net earnings calculated in accordance with
GAAP, excluding interest, taxes, depreciation and amortization of
acquisition-related intangible assets. Adjusted EBITDA refers to
EBITDA adjusted for Restructuring- and divestiture-related
adjustments, transaction- and deal-related costs, asbestos-related
adjustments associated with certain divested businesses, one-time
costs related to the separation, amortization of
acquisition-related inventory fair value step-up, gains and losses
on sale of property, Other charges, non-cash write-offs of deferred
financing costs, gains and losses on sale of businesses and gains
and losses on investments. Net leverage ratio refers to net debt
divided by Adjusted EBITDA.
Management believes that these non-GAAP financial measures
provide useful information to investors by reflecting additional
ways of viewing aspects of our operations that, when reconciled to
the corresponding GAAP measure, help our investors to understand
the long-term profitability trends of our business, and facilitate
comparisons of our profitability to prior and future periods and to
our peers.
These non-GAAP measures should be considered in addition to, and
not as a replacement for or superior to, the comparable GAAP
measures, and may not be comparable to similarly titled measures
reported by other companies.
A reconciliation of each of the projected Core Sales Growth,
Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings Per
Share and Adjusted Free Cash Flow Conversion, which are
forward-looking non-GAAP financial measures, to the most directly
comparable GAAP financial measure, is not provided because the
company is unable to provide such reconciliation without
unreasonable effort. The inability to provide each reconciliation
is due to the unpredictability of the amounts and timing of events
affecting the items we exclude from the non-GAAP measure.
Components of Sales
Growth
% Change Three Months Ended
September 27, 2024 vs. Comparable 2023 Period
Mobility Technologies
Repair Solutions
Environmental & Fueling
Solutions
Total
Total Sales Growth (GAAP)
3.9
%
(5.1
)%
5.5
%
(2.0
)%
Core sales growth (Non-GAAP)
4.2
%
(5.1
)%
8.5
%
2.8
%
Acquisitions and divestitures
(Non-GAAP)
—
%
—
%
(2.3
)%
(4.4
)%
Currency exchange rates (Non-GAAP)
(0.3
)%
—
%
(0.7
)%
(0.4
)%
% Change Nine Months Ended
September 27, 2024 vs. Comparable 2023 Period
Mobility Technologies
Repair Solutions
Environmental & Fueling
Solutions
Other Segment
Total
Total Sales Growth (GAAP)
0.7
%
(2.9
)%
0.8
%
(98.5
)%
(4.5
)%
Core sales growth (Non-GAAP)
1.9
%
(2.9
)%
4.2
%
—
%
1.2
%
Acquisitions and divestitures
(Non-GAAP)
—
%
—
%
(2.7
)%
(98.5
)%
(5.0
)%
Currency exchange rates (Non-GAAP)
(1.2
)%
—
%
(0.7
)%
—
%
(0.7
)%
Reconciliation of Operating Profit to
Adjusted Operating Profit and Segment Operating
Profit
Three Months Ended
Nine Months Ended
$ in millions
September 27, 2024
September 29, 2023
September 27, 2024
September 29, 2023
Operating Profit (GAAP)
$
131.5
$
142.6
$
387.7
$
397.0
Amortization of acquisition-related
intangible assets
20.0
20.1
60.0
61.1
Restructuring- and divestiture-related
adjustments
4.2
3.5
12.8
22.3
Transaction- and deal-related costs
0.2
2.1
—
8.8
Asbestos-related adjustments
3.3
—
6.6
—
One-time costs related to separation
0.4
0.8
1.3
2.7
Amortization of acquisition-related
inventory fair value step-up
—
—
—
1.3
Gain on sale of property
—
—
(0.5
)
(2.8
)
Adjusted Operating Profit
(Non-GAAP)
159.6
169.1
467.9
490.4
Corporate & Other Unallocated
Costs
22.6
23.5
66.1
65.6
Segment Operating Profit
(Non-GAAP)
$
182.2
$
192.6
$
534.0
$
556.0
Operating Profit Margin (GAAP)
17.5
%
18.6
%
17.6
%
17.2
%
Adjusted Operating Profit Margin
(Non-GAAP)
21.3
%
22.1
%
21.2
%
21.3
%
Segment Operating Profit Margin
(Non-GAAP)
24.3
%
25.2
%
24.2
%
24.1
%
Reconciliation of Net Earnings to
Adjusted Net Earnings
Three Months Ended
Nine Months Ended
($ in millions)
September 27, 2024
September 29, 2023
September 27, 2024
September 29, 2023
Net Earnings (GAAP)
$
91.8
$
90.6
$
298.7
$
270.7
Amortization of acquisition-related
intangible assets
20.0
20.1
60.0
61.1
Restructuring- and divestiture-related
adjustments
4.2
3.5
12.8
22.3
Transaction- and deal-related costs
0.2
2.1
—
8.8
Asbestos-related adjustments
3.3
—
6.6
—
One-time costs related to separation
0.4
0.8
1.3
2.7
Amortization of acquisition-related
inventory fair value step-up
—
—
—
1.3
Gain on sale of property
—
—
(0.5
)
(2.8
)
Non-cash write-off of deferred financing
costs
—
0.1
—
0.2
Gain on sale of business
—
(0.3
)
(37.2
)
(34.4
)
Loss on equity investments
0.2
0.2
0.4
1.0
Tax effect of the Non-GAAP adjustments and
other tax adjustments
(9.0
)
(3.7
)
(17.7
)
(6.0
)
Adjusted Net Earnings
(Non-GAAP)
$
111.1
$
113.4
$
324.4
$
324.9
Diluted weighted average shares
outstanding
153.2
155.8
154.7
156.1
Diluted Net Earnings Per Share
(GAAP)
$
0.60
$
0.58
$
1.93
$
1.73
Adjusted Diluted Net Earnings Per Share
(Non-GAAP)
$
0.73
$
0.73
$
2.10
$
2.08
Reconciliation of Operating Cash Flow
to Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash
Flow Conversion
Three Months Ended
Nine Months Ended
($ in millions)
September 27, 2024
September 29, 2023
September 27, 2024
September 29, 2023
Operating Cash Flow (GAAP)
$
121.8
$
131.6
$
259.4
$
290.1
Less: Purchases of property, plant &
equipment (capital expenditures)
(18.6
)
(17.4
)
(62.6
)
(43.5
)
Free Cash Flow (Non-GAAP)
$
103.2
$
114.2
$
196.8
$
246.6
Restructuring- and divestiture-related
adjustments
2.6
6.6
8.3
16.1
Transaction- and deal-related costs
2.4
7.6
6.2
16.1
Proceeds from sale of property, plant and
equipment
0.3
—
1.3
4.3
Adjusted Free Cash Flow
(Non-GAAP)
$
108.5
$
128.4
$
212.6
$
283.1
Adjusted Net Earnings
(Non-GAAP)
$
111.1
$
113.4
$
324.4
$
324.9
Adjusted Free Cash Flow Conversion
(Non-GAAP)
97.7
%
113.2
%
65.5
%
87.1
%
Net Leverage Ratio and Reconciliation
from Net Earnings to EBITDA to Adjusted EBITDA
Total Debt
$
2,205.4
Less: Cash
(330.9
)
Net Debt
$
1,874.5
Adjusted EBITDA (Non-GAAP)
$
687.3
Net Leverage Ratio
2.7
Three Months Ended
LTM
($ in millions)
September 27, 2024
September 27, 2024
Net Earnings (GAAP)
$
91.8
$
404.9
Interest expense, net
18.9
79.2
Income tax expense
20.5
86.6
Depreciation and amortization expense
32.0
125.7
EBITDA (Non-GAAP)
$
163.2
$
696.4
Restructuring- and divestiture-related
adjustments
4.2
16.5
Transaction- and deal-related costs
0.2
3.2
Asbestos-related adjustments
3.3
6.6
One-time costs related to separation
0.4
1.8
Gain on sale of property
—
(0.5
)
Gain on sale of business
—
(37.2
)
Loss on equity investments
0.2
0.5
Adjusted EBITDA (Non-GAAP)
$
171.5
$
687.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031881089/en/
INVESTOR RELATIONS: Ryan Edelman Vice President,
Investor Relations +1 (984) 238-1929 ryan.edelman@vontier.com
MEDIA: Nicole Beck Vontier Corporation
nicole.beck@vontier.com
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