第99.1展示文本
| 日期： | 2024年10月29日 | 資訊發佈 | ||||||||||||
哈勃集團 40 Waterview Drive Shelton， CT 06484 475-882-4000 | ||||||||||||||
哈勃集團公佈2024年第三季度業績報告
•攤薄後每股收益爲4.05美元；調整後攤薄後每股收益爲4.49美元（同比增長14%）
•第三季度淨銷售額+5％（有機銷售額-1％；淨併購） +6%)
•營業利潤率爲21.1％；調整後的營業利潤率爲23.2％（+180個點子年同比增長）
•2024年攤薄後每股收益展望爲$14.20至$14.40
•將2024財年調整後每股攤薄收益展望提高至$16.35至$16.55
2024年10月29日，哈勃集團（紐交所：HUBB）報告了截至2024年9月30日的第三季度營運業績。
「哈勃集團在第三季度表現出色，實現了穩健的營業利潤率擴張以及營業收入的兩位數增長，」主席、總裁兼首席執行官Gerben Bakker表示。
巴克爾先生繼續說：「在我們的公用事業解決方案部門，傳輸、變電站、電網保護和控制市場表現強勁，因公用事業客戶正在投資以適應負荷增長和連接新的可再生髮電來源。如預期的那樣，季度內電信市場仍然疲弱，而公用事業配電市場繼續反映客戶庫存正常化的影響。公用事業解決方案部門在該季度實現了同比營業利潤率的擴張。我們的電氣解決方案部門交付了又一個季度的強勁運營表現，有着可觀的有機增長和持續的利潤率擴張。本季度的表現主要得益於數據中心和可再生能源垂直領域的實力，以及生產力、運營效率和組合轉型工作的努力。」
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巴克爾先生得出結論，「隨着電網現代化和電氣化的大趨勢加速，哈勃集團仍然處於獨特的位置，以持續爲我們的客戶和股東實現區別化的長期表現。」
本公告中使用的某些術語，包括"淨債務"、"自由現金流"、"有機淨銷售額"、"有機淨銷售增長"、"重組相關成本"、"調整後的EBITDA"以及其他"調整後"指標，在"非美國通用會計準則（Non-GAAP）定義"一節中有定義。更多信息請參閱第9頁。
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第三季度財務亮點
本節審閱中的評論和年度比較基於2024年和2023年第三季度的結果。
2024年第三季度公用事業解決方案部門的淨銷售額爲增加 相較於2023年第三季度報告的83800萬，2024年第三季度淨銷售額增加了11%，達到93300萬美元。有機淨銷售額在該季度內下降了約4%，而收購項目增加了15%。電網基礎設施的淨銷售額約增長15%，電網自動化的淨銷售額約增長4%。部門營業利潤爲21100萬美元，佔2024年第三季度淨銷售額的22.6%，相較於2023年同期的18700萬美元，佔淨銷售額的22.3%。調整後的營業利潤爲23600萬美元，2024年第三季度淨銷售額的25.3%，相較於上一年同期的201 百萬美元，佔淨銷售額的24.0%。營業利潤率和營業利潤變化主要是由於收購、價格/成本/生產力管理和前一年的投資的影響，部分抵消了主要由電信市場驅動的機櫃產品銷量下降所致。 。
2024年第三季度電氣解決方案部門的淨銷售額下降至51000萬美元，低於2023年第三季度報告的53800萬美元。本季度有機淨銷售增長3％，而出售降低了部門淨銷售額8％。部門營業利潤爲9300萬美元，佔淨銷售額的18.3％，而2023年同期爲9000萬美元，佔淨銷售額的16.6％。調整後的營業利潤爲9900萬美元，佔2024年第三季度淨銷售額的19.4％ 與前一年同期的9400萬美元，佔淨銷售額的17.5％相比，營業利潤和營業利潤率的變化主要受成交量增長、價格/成本/生產率管理以及組合轉型和混合影響的驅動。
2024年第三季度調整後的攤薄後每股收益不包括$0.40的收購相關無形資產攤銷和$0.04的交易、整合和分離成本。2023年第三季度調整後的攤薄後每股收益不包括$0.25的收購相關無形資產攤銷。
2024年第三季度經營活動提供的淨現金爲22700萬美元，而2023年同期爲19400萬美元。自由現金流爲2.34億美元，而2023年同期爲1.59億美元。
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總結與展望
到2024年底，哈勃集團預計每股收益的區間爲 $14.20-$14.40 並預計調整後的每股收益("調整後的EPS")在$16.35-$16.55的區間內。調整後的EPS不包括收購相關無形資產的攤銷，公司預計大約爲 $1.75 全年淨損失$0.22的住宅照明業務處置損失，以及$0.17的交易、整合和分離成本。公司認爲，調整後的EPS是對我們收購和剝離策略基本表現的有用衡量標準。
哈勃集團預計2024年全年總銷售額增長約6％，有機淨銷售增長約1％，相較於2023年全年。公司預計收購交易減去住宅照明業務剝離貢獻約5％的全年銷售增長。
攤薄後每股收益和調整後每股收益範圍基於調整後的稅率22.0%至22.5%，幷包括約0.35美元的預期重組和相關投資。公司仍然預計2024年全年自由現金流約爲80000萬美元。
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電話會議
哈勃集團將於2024年第三季度業績發佈當日，即2024年10月29日上午10:00準時舉行業績會議。您可以訪問哈勃集團的"投資者關係-事件/演示"欄目，收聽現場會議的音頻直播。會議結束後，您還可以通過訪問www.hubbell.com網站，點擊頁面底部的"投資者"選項，然後從下拉菜單中選擇"事件/演示"，收聽音頻重播。
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前瞻性聲明
此處包含的某些聲明可能構成《1995年企業證券訴訟改革法案》中規定的前瞻性陳述。這些聲明一般涉及我們對於財務業績、狀況和展望，未來表現的預測，預期增長和終端市場，運營業績的變化，市場和經濟狀況，預期資本資源，流動性，財務績效，養老金資金籌集和運營業績結果，規劃，戰略，機會，發展和生產力舉措，競爭地位以及特定市場或行業的趨勢。此外，與爲客戶和股東實現長期差異化績效，2025年及以後有利的設定，以及上文「摘要與展望」部分中列出的所有陳述相關的陳述，以及其他非嚴格歷史性質的陳述，均屬前瞻性。這些聲明可以通過使用「相信」、「期望」、「預期」、「預測」、「依賴」、「計劃」、「估計」、「預測」、「目標」、「應該」、「可能」、「受限於」、「持續」、「增長」、「有前途」、「預測」、「預期」、「意味着」、「可能」、「如果」、「考慮」、「潛在」、「未決」、「目標」、「預定」、「將」、「很可能是」等前瞻性詞語或短語來識別。此類前瞻性陳述基於我們目前的預期，並涉及許多假設，已知和未知的風險，不確定性和可能導致實際和未來績效或公司的成就明顯不同於任何未來結果，績效或成就的因素，無論是被這種前瞻性陳述所明示或暗示。這些因素包括，但不限於：商業狀況，地緣政治狀況（包括烏克蘭和中東的戰爭，以及與中國的貿易緊張關係）以及特定行業，市場或地理區域的一般經濟狀況的變化，以及電力解決方案部門的電信市場和住宅市場持續低迷，以及可能出現重大經濟放緩，持續通貨膨脹，滯脹或經濟衰退，利率上升，能源成本上升；我們通過價格回收和成交量增長抵消材料和非材料成本增長的能力；不利的外國貨幣兌換率影響以及使用對沖工具來對沖存貨購買的外國貨幣兌換率波動的風險；與對保留金額提供的及其他費用相關的問題的結果相比，包括與養老金提取責任相關的費用；實現銷售水平以滿足收入預期；意外的成本或費用，其中一些可能超出公司的控制範圍；貿易關稅、進口配額和其他貿易限制或美國、墨西哥、英國及其他國家採取的行動的影響，包括目前或未來總統政府可能制定的美國貿易政策變化以及其他國家爲應對美國貿易政策變化而作出的貿易政策變化；未能實現預期的效率、成本節約和降低成本措施水平，包括預期通過我們的精益倡議和戰略採購計劃實現的水平，監管問題。
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changes in tax laws including multijurisdictional implementation of the Organisation for Economic Co-operation and Development’s comprehensive base erosion and profit shifting plan, or changes in geographic profit mix affecting tax rates and availability of tax incentives; the impact of and ability to fully manage and integrate acquired businesses, including the 2023 acquisitions of EI Electronics LLC, Indústria Eletromecânica Balestro Ltda.; and Northern Star Holdings, Inc. (the Systems Control business), as well as the failure to realize expected synergies and benefits anticipated when we make an acquisition due to potential adverse reactions or changes to business or employee relationships resulting from completion of the transaction, competitive responses to the transaction, the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the acquired business, diversion of management’s attention from ongoing business operations and opportunities, and litigation relating to the transaction; the impact of certain divestitures, including the benefits and costs of the sale of the residential lighting business; the ability to effectively develop and introduce new products, expand into new markets and deploy capital; and other factors described in our Securities and Exchange Commission filings, including in the “Business”, “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Forward-Looking Statements” and “Quantitative and Qualitative Disclosures about Market Risk” sections in the Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q.
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About the Company
Hubbell Incorporated is a leading manufacturer of utility and electrical solutions enabling customers to operate critical infrastructure safely, reliably and efficiently. With 2023 revenues of $5.4 billion, Hubbell solutions electrify economies and energize communities. The corporate headquarters is located in Shelton, CT.
Contact:
| Dan Innamorato | ||
| Hubbell Incorporated | ||
| 40 Waterview Drive | ||
| P.O. Box 1000 | ||
| Shelton, CT 06484 | ||
| (475) 882-4000 | ||
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NON-GAAP DEFINITIONS
References to "adjusted" operating measures exclude the impact of certain costs, gains or losses. Management believes these adjusted operating measures provide useful information regarding our underlying performance from period to period and an understanding of our results of operations without regard to items we do not consider a component of our core operating performance. Adjusted operating measures are non-GAAP measures, and include adjusted operating income, adjusted operating margin, adjusted net income attributed to Hubbell Incorporated, adjusted net income available to common shareholders, adjusted earnings per diluted share, and Adjusted EBITDA. These non-GAAP measures exclude, where applicable:
•Amortization of all intangible assets associated with our business acquisitions, including inventory step-up amortization associated with those acquisitions. The intangible assets associated with our business acquisitions arise from the allocation of the purchase price using the acquisition method of accounting in accordance with Accounting Standards Codification 805, “Business Combinations.” These assets consist primarily of customer relationships, developed technology, trademarks and tradenames, and patents, as reported in Note 7—Goodwill and Other Intangible Assets, under the heading “Total Definite-Lived Intangibles,” within the Company’s audited consolidated financial statements set forth in its Annual Report on Form 10-K for Fiscal Year Ended December 31, 2023. The Company excludes these non-cash expenses because we believe it (i) enhances management’s and investors’ ability to analyze underlying business performance, (ii) facilitates comparisons of our financial results over multiple periods, and (iii) provides more relevant comparisons of our results with the results of other companies as the amortization expense associated with these assets may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. Although we exclude amortization of these acquired intangible assets and inventory step-up from our non-GAAP results, we believe that it is important for investors to understand that revenue generated, in part, from such intangibles is included within revenue in determining adjusted net income attributable to Hubbell Incorporated.
•Transaction, integration, and separation costs associated with our business acquisitions and divestitures. The effects that acquisitions and divestitures may have on our results fluctuate significantly based on the timing, size, and number of transactions, and therefore results in significant volatility in the costs to complete transactions and integrate or separate the businesses. The size of acquisition and divestiture actions taken by the Company in the fourth quarter of 2023 has resulted in a significant increase in these costs, as a result we believe excluding costs, relating to these fourth quarter transactions provides useful and more comparative information to investors to better assess our operating performance.
•Gains or losses from the disposition of a business. The Company excludes these gains or losses because we believe it enhances management's and investors' ability to analyze underlying business performance and facilitates comparisons of our financial results over multiple periods. In the first quarter of 2024 the Company recognized a $5.3 million pre-tax loss on the disposition of the residential lighting business.
•The income tax effect directly related to the disposition of the residential lighting business. In the first quarter of 2024 the Company recognized $6.8 million of income tax expense on the sale of the residential lighting business, primarily driven by differences between book and tax basis in goodwill.
•Income tax effects of the above adjustments, which are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction, unless otherwise noted.
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Adjusted EBITDA is a non-GAAP measure that excludes the items noted above and also excludes the Other income (expense), net, Interest expense, net, and Provision for income taxes captions of the Condensed Consolidated Statement of Income, as well as depreciation and amortization expense.
Net debt (defined as total debt less cash and investments) to total capital is a non-GAAP measure that we believe is a useful measure for evaluating the Company's financial leverage and the ability to meet its funding needs.
Free cash flow is a non-GAAP measure that we believe provides useful information regarding the Company's ability to generate cash without reliance on external financing. In addition, management uses free cash flow to evaluate the resources available for investments in the business, strategic acquisitions and further strengthening the balance sheet.
In connection with our restructuring and related actions, we have incurred restructuring costs as defined by U.S. GAAP, which are primarily severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. We also incur restructuring-related costs, which are costs associated with our business transformation initiatives, including the consolidation of back-office functions and streamlining our processes, and certain other costs and gains associated with restructuring actions. We refer to these costs on a combined basis as "restructuring and related costs", which is a non-GAAP measure.
Organic net sales, a non-GAAP measure, represents net sales according to U.S. GAAP, less net sales from acquisitions and divestitures during the first twelve months of ownership or divestiture, respectively, less the effect of fluctuations in net sales from foreign currency exchange. The period-over-period effect of fluctuations in net sales from foreign currency exchange is calculated as the difference between local currency net sales of the prior period translated at the current period exchange rate as compared to the same local currency net sales translated at the prior period exchange rate. We believe this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. When comparing net sales growth between periods excluding the effects of acquisitions, business dispositions and currency exchange rates, those effects are different when comparing results for different periods. For example, because net sales from acquisitions are considered inorganic from the date we complete an acquisition through the end of the first year following the acquisition, net sales from such acquisition are reflected as organic net sales thereafter.
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There are limitations to the use of non-GAAP measures. Non-GAAP measures do not present complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported GAAP financial results, and should be viewed in conjunction with the most comparable GAAP financial measures and the provided reconciliations thereto. We believe, however, that these non-GAAP financial measures, when viewed together with our GAAP results and related reconciliations, provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.
Reconciliations of each of these non-GAAP measures to the most directly comparable GAAP measure can be found in the tables below. When we provide our expectations for organic net sales, adjusted effective tax rate, adjusted diluted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected net sales, effective tax rate, diluted EPS and net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, certain financing costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
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HUBBELL INCORPORATED
Condensed Consolidated Statement of Income
(unaudited)
(in millions, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net sales | $ | 1,442.6 | $ | 1,375.8 | $ | 4,294.2 | $ | 4,027.1 | |||||||||||||||
| Cost of goods sold | 945.5 | 888.4 | 2,840.7 | 2,595.2 | |||||||||||||||||||
| Gross profit | 497.1 | 487.4 | 1,453.5 | 1,431.9 | |||||||||||||||||||
| Selling & administrative expenses | 193.3 | 211.1 | 620.0 | 619.0 | |||||||||||||||||||
| Operating income | 303.8 | 276.3 | 833.5 | 812.9 | |||||||||||||||||||
| Operating income as a % of Net sales | 21.1 | % | 20.1 | % | 19.4 | % | 20.2 | % | |||||||||||||||
| Loss on disposition of business | — | — | (5.3) | — | |||||||||||||||||||
| Interest expense, net | (18.7) | (7.8) | (59.6) | (26.7) | |||||||||||||||||||
| Other expense, net | (5.6) | (3.5) | (7.5) | (12.4) | |||||||||||||||||||
| Total other expense, net | (24.3) | (11.3) | (72.4) | (39.1) | |||||||||||||||||||
| Income before income taxes | 279.5 | 265.0 | 761.1 | 773.8 | |||||||||||||||||||
| Provision for income taxes | 58.5 | 63.0 | 175.8 | 180.2 | |||||||||||||||||||
| Net income | 221.0 | 202.0 | 585.3 | 593.6 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interest | (1.6) | (1.9) | (4.5) | (4.8) | |||||||||||||||||||
| Net income attributable to Hubbell Incorporated | $ | 219.4 | $ | 200.1 | $ | 580.8 | $ | 588.8 | |||||||||||||||
| Earnings Per Share: | |||||||||||||||||||||||
| Basic earnings per share | $ | 4.08 | $ | 3.72 | $ | 10.80 | $ | 10.96 | |||||||||||||||
| Diluted earnings per share | $ | 4.05 | $ | 3.70 | $ | 10.73 | $ | 10.89 | |||||||||||||||
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HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(unaudited)
(in millions)
| September 30, 2024 | December 31, 2023 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 435.7 | $ | 336.1 | |||||||
| Short-term investments | 9.9 | 12.6 | |||||||||
| Accounts receivable (net of allowances of $11.4 and $11.6) | 894.8 | 785.4 | |||||||||
| Inventories, net | 850.0 | 832.9 | |||||||||
| Other current assets | 128.7 | 129.7 | |||||||||
| Assets held for sale - current | — | 70.5 | |||||||||
| TOTAL CURRENT ASSETS | 2,319.1 | 2,167.2 | |||||||||
| Property, plant and equipment, net | 692.6 | 652.6 | |||||||||
| Investments | 85.5 | 75.8 | |||||||||
| Goodwill | 2,523.5 | 2,533.4 | |||||||||
| Other intangible assets, net | 1,108.4 | 1,196.0 | |||||||||
| Other long-term assets | 205.9 | 197.1 | |||||||||
| Assets held for sale - non-current | — | 91.9 | |||||||||
| TOTAL ASSETS | $ | 6,935.0 | $ | 6,914.0 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Short-term debt and current portion of long-term debt | $ | 291.2 | $ | 117.4 | |||||||
| Accounts payable | 547.5 | 563.5 | |||||||||
| Accrued salaries, wages and employee benefits | 120.4 | 173.6 | |||||||||
| Accrued insurance | 77.8 | 79.1 | |||||||||
| Other accrued liabilities | 359.8 | 365.2 | |||||||||
| Liabilities held for sale - current | — | 24.6 | |||||||||
| TOTAL CURRENT LIABILITIES | 1,396.7 | 1,323.4 | |||||||||
| Long-term debt | 1,640.3 | 2,023.2 | |||||||||
| Other non-current liabilities | 669.2 | 660.6 | |||||||||
| Liabilities held for sale - non-current | — | 17.5 | |||||||||
| TOTAL LIABILITIES | 3,706.2 | 4,024.7 | |||||||||
| Hubbell Incorporated Shareholders' Equity | 3,215.0 | 2,877.0 | |||||||||
| Noncontrolling interest | 13.8 | 12.3 | |||||||||
| TOTAL EQUITY | 3,228.8 | 2,889.3 | |||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 6,935.0 | $ | 6,914.0 | |||||||
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HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in millions)
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash Flows From Operating Activities | |||||||||||
| Net income attributable to Hubbell | $ | 580.8 | $ | 588.8 | |||||||
| Depreciation and amortization | 158.8 | 110.1 | |||||||||
| Deferred income taxes | 4.2 | (17.1) | |||||||||
| Stock-based compensation expense | 24.2 | 21.6 | |||||||||
| Provision for bad debt expense | (0.6) | — | |||||||||
| Loss on disposition of business | 5.3 | — | |||||||||
| Loss on sale of assets | 0.7 | 1.5 | |||||||||
| Changes in assets and liabilities, net of acquisitions | |||||||||||
| Accounts receivable, net | (116.0) | (101.0) | |||||||||
| Inventories, net | (30.8) | (39.4) | |||||||||
| Accounts payable | (14.0) | 25.1 | |||||||||
| Current liabilities | (66.2) | (45.2) | |||||||||
| Other assets and liabilities, net | 17.2 | 2.5 | |||||||||
| Contributions to defined benefit pension plans | (1.3) | (10.0) | |||||||||
| Other, net | (3.5) | (1.6) | |||||||||
| Net cash provided by operating activities | 558.8 | 535.3 | |||||||||
| Cash Flows From Investing Activities | |||||||||||
| Capital expenditures | (112.4) | (103.8) | |||||||||
| Acquisition of businesses, net of cash acquired | 5.9 | (60.0) | |||||||||
| Proceeds from disposal of business, net of cash | 122.9 | — | |||||||||
| Purchases of available-for-sale investments | (11.7) | (13.7) | |||||||||
| Proceeds from sales of available-for-sale investments | 14.5 | 15.8 | |||||||||
| Other, net | 0.8 | 0.3 | |||||||||
| Net cash provided by (used in) investing activities | 20.0 | (161.4) | |||||||||
| Cash Flows From Financing Activities | |||||||||||
| Payment of long-term debt | (386.3) | — | |||||||||
| Borrowing (Payment) of short-term debt, net | 173.6 | (1.4) | |||||||||
| Payment of dividends | (196.5) | (180.1) | |||||||||
| Repurchase of common shares | (30.0) | (30.0) | |||||||||
| Other, net | (37.2) | (30.2) | |||||||||
| Net cash used by financing activities | (476.4) | (241.7) | |||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | (3.2) | 0.3 | |||||||||
| Increase in cash, cash equivalents and restricted cash | 99.2 | 132.5 | |||||||||
| Cash and cash equivalents, beginning of year | 336.1 | 440.5 | |||||||||
| Cash and cash equivalents within assets held for sale, beginning of year | — | — | |||||||||
| Restricted cash, included in other assets, beginning of year | 3.2 | 2.8 | |||||||||
| Less: Restricted cash, included in other assets | 2.8 | 3.0 | |||||||||
| Cash and cash equivalents, end of quarter | $ | 435.7 | $ | 572.8 | |||||||
14
HUBBELL INCORPORATED
Earnings Per Share
(unaudited)
(in millions, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||
| Net income attributable to Hubbell (GAAP measure) | $ | 219.4 | $ | 200.1 | 10 | % | $ | 580.8 | $ | 588.8 | (1) | % | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 28.1 | 18.4 | 96.0 | 54.3 | |||||||||||||||||||||||||||||||
| Transaction, integration & separation costs | 2.9 | — | 11.9 | — | |||||||||||||||||||||||||||||||
| Loss on disposition of business | — | — | 5.3 | — | |||||||||||||||||||||||||||||||
| Subtotal | $ | 250.4 | $ | 218.5 | $ | 694.0 | $ | 643.1 | |||||||||||||||||||||||||||
| Income tax effects | 7.5 | 4.6 | 19.4 | 13.4 | |||||||||||||||||||||||||||||||
| Adjusted net income | $ | 242.9 | $ | 213.9 | 14 | % | $ | 674.6 | $ | 629.7 | 7 | % | |||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||||||||||||||
| Net income attributable to Hubbell (GAAP measure) | $ | 219.4 | $ | 200.1 | $ | 580.8 | $ | 588.8 | |||||||||||||||||||||||||||
| Less: Earnings allocated to participating securities | (0.4) | (0.5) | (1.1) | (1.4) | |||||||||||||||||||||||||||||||
| Net income available to common shareholders (GAAP measure) [a] | $ | 219.0 | $ | 199.6 | 10 | % | $ | 579.7 | $ | 587.4 | (1) | % | |||||||||||||||||||||||
| Adjusted net income | $ | 242.9 | $ | 213.9 | $ | 674.6 | $ | 629.7 | |||||||||||||||||||||||||||
| Less: Earnings allocated to participating securities | (0.4) | (0.5) | (1.3) | (1.5) | |||||||||||||||||||||||||||||||
| Adjusted net income available to common shareholders [b] | $ | 242.5 | $ | 213.4 | 14 | % | $ | 673.3 | $ | 628.2 | 7 | % | |||||||||||||||||||||||
| Denominator: | |||||||||||||||||||||||||||||||||||
| Average number of common shares outstanding [c] | 53.7 | 53.6 | 53.7 | 53.6 | |||||||||||||||||||||||||||||||
| Potential dilutive shares | 0.3 | 0.4 | 0.3 | 0.4 | |||||||||||||||||||||||||||||||
| Average number of diluted shares outstanding [d] | 54.0 | 54.0 | 54.0 | 54.0 | |||||||||||||||||||||||||||||||
| Earnings per share (GAAP measure): | |||||||||||||||||||||||||||||||||||
| Basic [a] / [c] | $ | 4.08 | $ | 3.72 | $ | 10.80 | $ | 10.96 | |||||||||||||||||||||||||||
| Diluted [a] / [d] | $ | 4.05 | $ | 3.70 | 9 | % | $ | 10.73 | $ | 10.89 | (1) | % | |||||||||||||||||||||||
Adjusted earnings per diluted share [b] / [d] | $ | 4.49 | $ | 3.95 | 14 | % | $ | 12.46 | $ | 11.64 | 7 | % | |||||||||||||||||||||||
15
HUBBELL INCORPORATED
Segment Information
(unaudited)
(in millions)
| Hubbell Incorporated | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||
| Net Sales [a] | $ | 1,442.6 | $ | 1,375.8 | 5 | % | $ | 4,294.2 | $ | 4,027.1 | 7 | % | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||||||||||||||
| GAAP measure [b] | $ | 303.8 | $ | 276.3 | 10 | % | $ | 833.5 | $ | 812.9 | 3 | % | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 28.1 | 18.4 | 96.0 | 54.3 | |||||||||||||||||||||||||||||||
| Transaction, integration & separation costs | 2.9 | — | 11.9 | — | |||||||||||||||||||||||||||||||
| Adjusted operating income [c] | $ | 334.8 | $ | 294.7 | 14 | % | $ | 941.4 | $ | 867.2 | 9 | % | |||||||||||||||||||||||
| Operating margin | |||||||||||||||||||||||||||||||||||
| GAAP measure [b] / [a] | 21.1 | % | 20.1 | % | +100 bps | 19.4 | % | 20.2 | % | -80 bps | |||||||||||||||||||||||||
| Adjusted operating margin [c] / [a] | 23.2 | % | 21.4 | % | +180 bps | 21.9 | % | 21.5 | % | +40 bps | |||||||||||||||||||||||||
| Utility Solutions | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||
| Net Sales [a] | $ | 933.1 | $ | 837.9 | 11 | % | $ | 2,753.6 | $ | 2,450.3 | 12 | % | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||||||||||||||
| GAAP measure [b] | $ | 210.5 | $ | 186.8 | 13 | % | $ | 564.1 | $ | 563.8 | — | % | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 24.1 | 13.9 | 83.7 | 40.8 | |||||||||||||||||||||||||||||||
| Transaction, integration & separation costs | 1.4 | — | 5.6 | — | |||||||||||||||||||||||||||||||
| Adjusted operating income [c] | $ | 236.0 | $ | 200.7 | 18 | % | $ | 653.4 | $ | 604.6 | 8 | % | |||||||||||||||||||||||
| Operating margin | |||||||||||||||||||||||||||||||||||
| GAAP measure [b] / [a] | 22.6 | % | 22.3 | % | +30 bps | 20.5 | % | 23.0 | % | -250 bps | |||||||||||||||||||||||||
| Adjusted operating margin [c] / [a] | 25.3 | % | 24.0 | % | +130 bps | 23.7 | % | 24.7 | % | -100 bps | |||||||||||||||||||||||||
| Electrical Solutions | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||
| Net Sales [a] | $ | 509.5 | $ | 537.9 | (5) | % | $ | 1,540.6 | $ | 1,576.8 | (2) | % | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||||||||||||||
| GAAP measure [b] | $ | 93.3 | $ | 89.5 | 4 | % | $ | 269.4 | $ | 249.1 | 8 | % | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 4.0 | 4.5 | 12.3 | 13.5 | |||||||||||||||||||||||||||||||
| Transaction, integration & separation costs | 1.5 | — | 6.3 | — | |||||||||||||||||||||||||||||||
| Adjusted operating income [c] | $ | 98.8 | $ | 94.0 | 5 | % | $ | 288.0 | $ | 262.6 | 10 | % | |||||||||||||||||||||||
| Operating margin | |||||||||||||||||||||||||||||||||||
| GAAP measure [b] / [a] | 18.3 | % | 16.6 | % | +170 bps | 17.5 | % | 15.8 | % | +170 bps | |||||||||||||||||||||||||
| Adjusted operating margin [c] / [a] | 19.4 | % | 17.5 | % | +190 bps | 18.7 | % | 16.7 | % | +200 bps | |||||||||||||||||||||||||
16
HUBBELL INCORPORATED
Organic Net Sales Growth
(unaudited)
(in millions and percentage change)
| Hubbell Incorporated | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
| 2024 | Inc/(Dec)% | 2023 | Inc/(Dec)% | 2024 | Inc/(Dec)% | 2023 | Inc/(Dec)% | ||||||||||||||||||||||||||||||||||||||||
| Net sales growth (GAAP measure) | $ | 66.8 | 4.9 | $ | 59.6 | 4.5 | $ | 267.1 | 6.6 | $ | 298.8 | 8.0 | |||||||||||||||||||||||||||||||||||
| Impact of acquisitions | 128.6 | 9.4 | 8.3 | 0.6 | 345.9 | 8.6 | 67.1 | 1.8 | |||||||||||||||||||||||||||||||||||||||
| Impact of divestitures | (45.6) | (3.3) | — | — | (120.9) | (3.0) | — | — | |||||||||||||||||||||||||||||||||||||||
| Foreign currency exchange | (2.4) | (0.2) | 4.7 | 0.4 | (0.4) | — | (1.1) | — | |||||||||||||||||||||||||||||||||||||||
| Organic net sales growth (decline) (non-GAAP measure) | $ | (13.8) | (1.0) | $ | 46.6 | 3.5 | $ | 42.5 | 1.0 | $ | 232.8 | 6.2 | |||||||||||||||||||||||||||||||||||
| Utility Solutions | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
| 2024 | Inc/(Dec)% | 2023 | Inc/(Dec)% | 2024 | Inc/(Dec)% | 2023 | Inc/(Dec)% | ||||||||||||||||||||||||||||||||||||||||
| Net sales growth (GAAP measure) | $ | 95.2 | 11.3 | $ | 63.4 | 8.2 | $ | 303.3 | 12.4 | $ | 295.5 | 13.7 | |||||||||||||||||||||||||||||||||||
| Impact of acquisitions | 128.6 | 15.3 | 8.0 | 1.0 | 345.9 | 14.1 | 23.3 | 1.1 | |||||||||||||||||||||||||||||||||||||||
| Impact of divestitures | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Foreign currency exchange | (1.4) | (0.2) | 2.2 | 0.3 | (1.1) | — | (0.2) | — | |||||||||||||||||||||||||||||||||||||||
| Organic net sales growth (decline) (non-GAAP measure) | $ | (32.0) | (3.8) | $ | 53.2 | 6.9 | $ | (41.5) | (1.7) | $ | 272.4 | 12.6 | |||||||||||||||||||||||||||||||||||
| Electrical Solutions | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
| 2024 | Inc/(Dec)% | 2023 | Inc/(Dec)% | 2024 | Inc/(Dec)% | 2023 | Inc/(Dec)% | ||||||||||||||||||||||||||||||||||||||||
| Net sales growth (decline) (GAAP measure) | $ | (28.4) | (5.3) | $ | (3.8) | (0.7) | $ | (36.2) | (2.3) | $ | 3.3 | 0.2 | |||||||||||||||||||||||||||||||||||
| Impact of acquisitions | — | — | 0.3 | — | — | — | 43.8 | 2.8 | |||||||||||||||||||||||||||||||||||||||
| Impact of divestitures | (45.6) | (8.5) | — | — | (120.9) | (7.6) | — | — | |||||||||||||||||||||||||||||||||||||||
| Foreign currency exchange | (1.0) | (0.2) | 2.5 | 0.5 | 0.7 | — | (0.9) | (0.1) | |||||||||||||||||||||||||||||||||||||||
| Organic net sales growth (decline) (non-GAAP measure) | $ | 18.2 | 3.4 | $ | (6.6) | (1.2) | $ | 84.0 | 5.3 | $ | (39.6) | (2.5) | |||||||||||||||||||||||||||||||||||
17
HUBBELL INCORPORATED
Adjusted EBITDA
(unaudited)
(in millions)
| Three Months Ended September 30, | |||||||||||||||||
| 2024 | 2023 | Change | |||||||||||||||
| Net income | $ | 221.0 | $ | 202.0 | 9 | % | |||||||||||
| Provision for income taxes | 58.5 | 63.0 | |||||||||||||||
| Interest expense, net | 18.7 | 7.8 | |||||||||||||||
| Other expense, net | 5.6 | 3.5 | |||||||||||||||
| Depreciation and amortization | 49.3 | 37.6 | |||||||||||||||
| Subtotal | 132.1 | 111.9 | |||||||||||||||
| Adjusted EBITDA | $ | 353.1 | $ | 313.9 | 12 | % | |||||||||||
| Nine Months Ended September 30, | |||||||||||||||||
| 2024 | 2023 | Change | |||||||||||||||
| Net income | $ | 585.3 | $ | 593.6 | (1) | % | |||||||||||
| Provision for income taxes | 175.8 | 180.2 | |||||||||||||||
| Interest expense, net | 59.6 | 26.7 | |||||||||||||||
| Other expense, net | 7.5 | 12.4 | |||||||||||||||
| Depreciation and amortization | 158.8 | 110.1 | |||||||||||||||
| Loss on disposition of business | 5.3 | — | |||||||||||||||
| Subtotal | 407.0 | 329.4 | |||||||||||||||
| Adjusted EBITDA | $ | 992.3 | $ | 923.0 | 8 | % | |||||||||||
18
HUBBELL INCORPORATED
Restructuring and Related Costs Included in Consolidated Results
(unaudited)
(in millions, except per share amounts)
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Costs of goods sold | S&A expense | Total | |||||||||||||||||||||||||||||||||
| Restructuring costs (GAAP Measure) | $ | 1.3 | $ | 1.0 | $ | — | $ | 0.1 | $ | 1.3 | $ | 1.1 | |||||||||||||||||||||||
| Restructuring related costs | 0.9 | 1.4 | 0.7 | — | 1.6 | 1.4 | |||||||||||||||||||||||||||||
| Restructuring and related costs (non-GAAP measure) | $ | 2.2 | $ | 2.4 | $ | 0.7 | $ | 0.1 | $ | 2.9 | $ | 2.5 | |||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Costs of goods sold | S&A expense | Total | |||||||||||||||||||||||||||||||||
| Restructuring costs (GAAP Measure) | $ | 7.9 | $ | 3.2 | $ | 3.1 | $ | 0.2 | $ | 11.0 | $ | 3.4 | |||||||||||||||||||||||
| Restructuring related costs | 2.8 | 5.0 | 2.1 | 0.2 | 4.9 | 5.2 | |||||||||||||||||||||||||||||
| Restructuring and related costs (non-GAAP measure) | $ | 10.7 | $ | 8.2 | $ | 5.2 | $ | 0.4 | $ | 15.9 | $ | 8.6 | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Restructuring and related costs (benefit) included in Cost of goods sold (non-GAAP measure) | |||||||||||||||||||||||
| Utility Solutions | $ | 0.4 | $ | (0.2) | $ | 3.6 | $ | 2.7 | |||||||||||||||
| Electrical Solutions | 1.8 | 2.6 | 7.1 | 5.5 | |||||||||||||||||||
| Total | $ | 2.2 | $ | 2.4 | $ | 10.7 | $ | 8.2 | |||||||||||||||
| Restructuring and related costs included in Selling & administrative expenses (non-GAAP measure) | |||||||||||||||||||||||
| Utility Solutions | $ | — | $ | 0.1 | $ | 1.6 | $ | 0.3 | |||||||||||||||
| Electrical Solutions | 0.7 | — | 3.6 | 0.1 | |||||||||||||||||||
| Total | $ | 0.7 | $ | 0.1 | $ | 5.2 | $ | 0.4 | |||||||||||||||
| Impact on Income before income taxes (non-GAAP measure) | $ | 2.9 | $ | 2.5 | $ | 15.9 | $ | 8.6 | |||||||||||||||
| Impact on Net income available to Hubbell common shareholders (non-GAAP measure) | 2.2 | 1.9 | 12.0 | 6.5 | |||||||||||||||||||
| Impact on Diluted earnings per share (non-GAAP measure) | $ | 0.04 | $ | 0.04 | $ | 0.22 | $ | 0.12 | |||||||||||||||
19
HUBBELL INCORPORATED
Additional Non-GAAP Financial Measures
(unaudited)
(in millions)
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
| September 30, 2024 | December 31, 2023 | ||||||||||
| Total Debt (GAAP measure) | $ | 1,931.5 | $ | 2,140.6 | |||||||
| Total Hubbell Shareholders’ Equity | 3,215.0 | 2,877.0 | |||||||||
| Total Capital | $ | 5,146.5 | $ | 5,017.6 | |||||||
| Total Debt to Total Capital (GAAP measure) | 38 | % | 43 | % | |||||||
| Less: Cash and Investments | $ | 531.1 | $ | 424.5 | |||||||
| Net Debt (non-GAAP measure) | $ | 1,400.4 | $ | 1,716.1 | |||||||
| Net Debt to Total Capital (non-GAAP measure) | 27 | % | 34 | % | |||||||
Free Cash Flow Reconciliation
Free Cash Flow Reconciliation
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net cash provided by operating activities (GAAP measure) | $ | 227.0 | $ | 193.9 | $ | 558.8 | $ | 535.3 | |||||||||||||||
| Less: Capital expenditures | (38.2) | (34.9) | (112.4) | (103.8) | |||||||||||||||||||
| Free cash flow (non-GAAP measure) | $ | 188.8 | $ | 159.0 | $ | 446.4 | $ | 431.5 | |||||||||||||||
20