Strong execution drives third-quarter results,
company raises full-year adjusted EPS outlook
Quarterly Financial Highlights
(All comparisons against the third quarter of 2022, unless
otherwise noted)
- Net earnings per share (EPS) of $1.77, up 36.2% compared with
$1.30; Adjusted EPS of $1.94, up 12.1% compared with $1.73
- Revenues of $917.9 million, up 0.5% on a reported basis and
down 0.6% on an organic basis
- Operating margin of 21.0%, compared with 17.8%; Adjusted
operating margin of 23.2%, up 110 basis points compared with
22.1%
- Mid-teens organic growth for electronics and software
solutions
Full-Year Outlook Highlights
- Raising full-year adjusted EPS outlook to a range of $6.80 to
$6.90
- Affirming full-year 2023 revenue, reported EPS and available
cash flow outlook
Allegion plc (NYSE: ALLE), a leading global
security products and solutions provider, today reported financial
results for its third quarter (ended Sept. 30, 2023).
“Allegion’s third-quarter results were driven by our team’s
outstanding operational execution. We continued to expand margins,
strengthened our balance sheet and significantly increased our
year-to-date cash flow,” said President and CEO John H. Stone.
“Demand for our electronics solutions remains strong. We
delivered mid-teens organic growth in electronics and software
solutions in the quarter, and we continue to see a long runway for
further adoption.”
“Overall, Allegion is on track for a record year of revenue,
adjusted operating income and adjusted EPS results. We are raising
our full-year adjusted EPS outlook, while affirming our full-year
revenue and available cash flow guidance.”
Company Results
(All comparisons against the third quarter of 2022, unless
otherwise noted)
Allegion reported third-quarter 2023 net revenues of $917.9
million and net earnings of $156.3 million, or $1.77 per share.
Excluding charges related to restructuring, acquisition and
integration costs, as well as amortization expense related to
acquired intangible assets, adjusted net earnings were $171.5
million, or $1.94 per share, up 12.1%.
Third-quarter 2023 net revenues increased 0.5%. Excluding
impacts of acquisitions, divestitures and foreign currency
movements, net revenues decreased 0.6% on an organic basis against
a tough comparable of 18.6% organic revenue growth in the
prior-year quarter. Favorable price was more than offset by lower
volumes experienced in the mechanical portfolio. The company had
mid-teens global organic growth in electronics and software
solutions in the quarter. The reported revenue reflects the
positive impact of foreign currency of approximately $8
million.
Third-quarter 2023 operating income was $193.1 million, an
increase of $30.2 million or 18.5%. Adjusted operating income in
third-quarter 2023 was $213.4 million, an increase of $11.1 million
or 5.5%.
Third-quarter 2023 operating margin was 21.0%, compared with
17.8%. The adjusted operating margin in third-quarter 2023 was
23.2%, compared with 22.1%. The 110-basis-point increase in
adjusted operating margin is attributable to positive price and
productivity net of inflation and investments. These increases were
partially offset by lower volumes.
The company’s sustained focus on improving operational execution
has yielded the highest year-to-date adjusted operating margins in
its history.
Segment Results
(All comparisons against the third quarter of 2022, unless
otherwise noted)
The Americas segment revenues were down 0.1% (flat on an organic
basis). Favorable price was more than offset by lower volumes
experienced in the mechanical portfolio. The segment had high-teens
organic growth in electronics in the third quarter. The America’s
non-residential business grew low-single digits, and the Access
Technologies business was up mid-teens. The residential business
continues to be soft and experienced a low-teens decline. The
segment’s results are up against a tough prior-year comparison, as
the non-residential business had organic growth of approximately
30% in the third quarter last year.
The International segment revenues increased 3.0% (down 2.8% on
an organic basis). Soft end markets, especially in the Global
Portable Security business and China, more than offset strength in
electronics and software solutions and positive price realization.
The reported revenue reflects a positive impact from foreign
currency of approximately $9 million.
Additional Items
(All comparisons against the third quarter of 2022, unless
otherwise noted)
Interest expense for third-quarter 2023 was $22.9 million, a
decrease of $0.2 million.
Other expense net for third-quarter 2023 was $0.1 million,
compared to other income net of $1.5 million. In addition, the
prior year included a $7.6 million loss related to a divestiture,
which was excluded from adjusted EPS.
The company’s effective tax rate for third-quarter 2023 was
8.1%, compared with 14.3%. The company’s adjusted effective tax
rate for third-quarter 2023 was 9.9%, compared with 15.4%, driven
by timing of discrete items.
Cash Flow and Liquidity
Year-to-date available cash flow for 2023 was $320.4 million, an
increase of $94.8 million versus the prior-year period. The
year-over-year increase in available cash flow is due to increased
year-to-date net earnings, partially offset by higher capital
expenditures. The company ended third-quarter 2023 with cash and
cash equivalents of $364.3 million, as well as total debt of
$2,017.7 million. The company repaid the remaining $39.0 million of
borrowings on its revolving credit facility in July of 2023.
Updated Full-Year Outlook
The company affirms its revenue growth for full-year 2023, which
is expected to be 11.5% to 12.5%, with organic revenue growth
expected to be 5.5% to 6.5%, excluding the expected impacts of
acquisitions, divestitures and foreign currency movements.
The company is raising the outlook for full-year 2023 adjusted
EPS and expects it to be in the $6.80 to $6.90 range. Reported EPS
is expected to be within the previously stated range of $6.10 to
$6.20.
Adjustments to 2023 EPS include estimated impacts of
approximately $0.40 per share for acquisition-related amortization,
as well as $0.30 per share for restructuring, M&A and
amortization expense related to acquired backlog (approximately $9
million pre-tax).
The outlook assumes a headwind of approximately $0.29 for
interest and other income, a full-year adjusted effective tax rate
of approximately 15% and an average diluted share count for the
full year of approximately 88.3 million shares.
The company affirms its full-year 2023 available cash flow
outlook, which is expected to be approximately $500 to $520
million.
Conference Call Information
On Tuesday, Oct. 31, 2023, President and CEO John H. Stone and
Senior Vice President and Chief Financial Officer Mike Wagnes will
conduct a conference call for analysts and investors, beginning at
8 a.m. ET, to review the company's results.
A real-time, listen-only webcast of the conference call will be
broadcast live online. Individuals wishing to listen may access the
call through the company's website at
https://investor.allegion.com.
About Allegion
Allegion (NYSE: ALLE) is a global pioneer in seamless access,
with leading brands like CISA®, Interflex®, LCN®, Schlage®,
SimonsVoss® and Von Duprin®. Focusing on security around the door
and adjacent areas, Allegion secures people and assets with a range
of solutions for homes, businesses, schools and institutions.
Allegion had $3.3 billion in revenue in 2022, and its security
products are sold around the world.
For more, visit www.allegion.com.
Non-GAAP Measures
This news release includes adjusted non-GAAP financial
information which should be considered supplemental to, not a
substitute for or superior to, the financial measure calculated in
accordance with GAAP. The company presents operating income,
operating margin, net earnings and diluted earnings per share (EPS)
on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis,
revenue growth on a U.S. GAAP basis and organic revenue growth on a
non-GAAP basis, EBITDA, adjusted EBITDA and adjusted EBITDA margin
(all non-GAAP measures) and Available Cash Flow (“ACF”, a non-GAAP
measure). The company presents these non-GAAP measures because
management believes these non-GAAP measures provide management and
investors useful perspective of the company’s underlying business
results and trends and a more comparable measure of
period-over-period results. These measures are also used to
evaluate senior management and are a factor in determining at-risk
compensation. Investors should not consider non-GAAP measures as
alternatives to the related U.S. GAAP measures. Further information
about the adjusted non-GAAP financial tables is attached to this
news release.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, and Section 21E of
the Securities Exchange Act of 1934, including, but not limited to,
statements under the headings “Full-Year Outlook Highlights,”
“Updated Full Year Outlook” and statements regarding the company's
2023 and future financial performance, the company’s business plans
and strategy, the company’s growth strategy, the company’s capital
allocation strategy, the company’s ability to successfully complete
and integrate acquisitions and achieve anticipated strategic and
financial benefits and the performance of the markets in which the
company operates. These forward-looking statements generally are
identified by the words “believe,” “aim,” “project,” “expect,”
“anticipate,” “estimate,” “forecast,” “outlook,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result”
or the negative thereof or variations thereon or similar
expressions generally intended to identify forward-looking
statements. Forward-looking statements may relate to such matters
as projections of revenue, margins, expenses, tax rate and
provisions, earnings, cash flows, benefit obligations, dividends,
share purchases or other financial items; any statements of the
plans, strategies and objectives of management for future
operations, including those relating to any statements concerning
expected development, performance or market share relating to our
products and services; any statements regarding future economic
conditions or our performance; any statements regarding pending
investigations, claims or disputes; any statements of expectation
or belief; and any statements of assumptions underlying any of the
foregoing. Undue reliance should not be placed on any
forward-looking statements, as these statements are based on the
company's currently available information and our current
assumptions, expectations and projections about future events. They
are subject to future events, risks and uncertainties - many of
which are beyond the company’s control - as well as potentially
inaccurate assumptions, that could cause actual results to differ
materially from those in the forward-looking statements. Important
factors and other risks that may affect the company's business or
that could cause actual results to differ materially are included
in filings the company makes with the Securities and Exchange
Commission from time to time, including its Annual Report on Form
10-K and its Quarterly Reports on Form 10-Q and in its other SEC
filings. All forward-looking statements in this press release are
expressly qualified by such cautionary statements and by reference
to the underlying assumptions. The company undertakes no obligation
to update these forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
ALLEGION PLC
Condensed and Consolidated Income
Statements
(In millions, except per share
data)
UNAUDITED
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net revenues
$
917.9
$
913.7
$
2,753.4
$
2,410.4
Cost of goods sold
514.6
545.7
1,557.2
1,438.7
Gross profit
403.3
368.0
1,196.2
971.7
Selling and administrative expenses
210.2
205.1
647.5
544.7
Operating income
193.1
162.9
548.7
427.0
Interest expense
22.9
23.1
70.2
52.2
Loss on divestitures
—
7.6
—
7.6
Other (expense) income, net
0.1
(1.5
)
(1.8
)
(7.1
)
Earnings before income taxes
170.1
133.7
480.3
374.3
Provision for income taxes
13.7
19.1
58.3
51.4
Net earnings
156.4
114.6
422.0
322.9
Less: Net earnings attributable to
noncontrolling interests
0.1
—
0.2
0.2
Net earnings attributable to Allegion
plc
$
156.3
$
114.6
$
421.8
$
322.7
Basic earnings per ordinary
share
attributable to Allegion plc
shareholders:
$
1.78
$
1.30
$
4.80
$
3.67
Diluted earnings per ordinary
share
attributable to Allegion plc
shareholders:
$
1.77
$
1.30
$
4.78
$
3.65
Shares outstanding - basic
87.9
87.9
87.9
88.0
Shares outstanding - diluted
88.2
88.2
88.3
88.4
ALLEGION PLC
Condensed and Consolidated Balance
Sheets
(In millions)
UNAUDITED
September 30, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
364.3
$
288.0
Accounts and notes receivables, net
439.7
395.6
Inventories
468.7
479.0
Other current assets
47.4
48.5
Assets held for sale
—
3.5
Total current assets
1,320.1
1,214.6
Property, plant and equipment, net
334.9
308.7
Goodwill
1,428.1
1,413.1
Intangible assets, net
580.3
608.9
Other noncurrent assets
519.7
445.9
Total assets
$
4,183.1
$
3,991.2
LIABILITIES AND EQUITY
Accounts payable
$
245.7
$
280.7
Accrued expenses and other current
liabilities
391.5
410.3
Short-term borrowings and current
maturities of long-term debt
12.6
12.6
Total current liabilities
649.8
703.6
Long-term debt
2,005.1
2,081.9
Other noncurrent liabilities
296.8
261.2
Equity
1,231.4
944.5
Total liabilities and equity
$
4,183.1
$
3,991.2
ALLEGION PLC
Condensed and Consolidated Statements
of Cash Flows
(In millions)
UNAUDITED
Nine months ended September
30,
2023
2022
Operating Activities
Net earnings
$
422.0
$
322.9
Depreciation and amortization
83.7
69.6
Changes in assets and liabilities and
other non-cash items
(124.6
)
(125.4
)
Net cash provided by operating
activities
381.1
267.1
Investing Activities
Capital expenditures
(60.7
)
(41.5
)
Acquisition of businesses, net of cash
acquired
(31.7
)
(923.1
)
Other investing activities, net
9.0
(1.3
)
Net cash used in investing activities
(83.4
)
(965.9
)
Financing Activities
Net (repayments of) proceeds from debt
(78.5
)
789.6
Debt financing costs
—
(10.2
)
Dividends paid to ordinary
shareholders
(119.2
)
(107.9
)
Repurchase of ordinary shares
(19.9
)
(61.0
)
Other financing activities, net
(2.3
)
(4.4
)
Net cash (used in) provided by financing
activities
(219.9
)
606.1
Effect of exchange rate changes on cash
and cash equivalents
(1.5
)
(23.0
)
Net increase (decrease) in cash and cash
equivalents
76.3
(115.7
)
Cash and cash equivalents - beginning of
period
288.0
397.9
Cash and cash equivalents - end of
period
$
364.3
$
282.2
SUPPLEMENTAL SCHEDULES
ALLEGION PLC
SCHEDULE 1
SELECTED OPERATING SEGMENT
INFORMATION
(In millions)
Due to a reporting change effective
January 1, 2023, results for the Company's Global Portable Security
brands (inclusive of the AXA, Kryptonite and Trelock businesses)
are now fully reflected within the Allegion International segment.
Accordingly, the summary of Net revenues and Operating income
(loss) by reportable segment as presented below for the three and
nine months ended September 30, 2022, has been recast to conform
with the current year presentation.
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net revenues
Allegion Americas
$
740.9
$
741.9
$
2,209.0
$
1,851.1
Allegion International
177.0
171.8
544.4
559.3
Total net revenues
$
917.9
$
913.7
$
2,753.4
$
2,410.4
Operating income (loss)
Allegion Americas
$
200.2
$
178.5
$
582.2
$
454.4
Allegion International
15.7
14.8
40.2
47.4
Corporate unallocated
(22.8
)
(30.4
)
(73.7
)
(74.8
)
Total operating income
$
193.1
$
162.9
$
548.7
$
427.0
ALLEGION PLC
SCHEDULE 2
The Company presents operating income,
operating margin, net earnings and diluted earnings per share (EPS)
on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis,
revenue growth on a U.S. GAAP basis and organic revenue growth on a
non-GAAP basis, EBITDA, adjusted EBITDA and adjusted EBITDA margin
(all non-GAAP measures), and available cash flow ("ACF", a non-GAAP
measure). The Company presents these non-GAAP measures because
management believes they provide useful perspective of the
Company’s underlying business results and trends and a more
comparable measure of period-over-period results. These measures
are also used to evaluate senior management and are a factor in
determining at-risk compensation. Investors should not consider
non-GAAP measures as alternatives to the related U.S. GAAP
measures.
The Company defines the presented non-GAAP
measures as follows:
- Adjustments to operating income, operating margin, net
earnings, EPS and EBITDA include items such as goodwill,
indefinite-lived trade name and other asset impairment charges,
restructuring charges, acquisition and integration costs,
amortization of acquired intangible assets, debt financing costs,
gains or losses related to the divestiture of businesses or equity
method investments and non-operating investment gains or
losses;
- Organic revenue growth is defined as U.S. GAAP revenue growth
excluding the impact of divestitures, acquisitions and currency
effects; and
- Available cash flow is defined as U.S. GAAP net cash from
operating activities less capital expenditures.
These non-GAAP measures may not be defined
and calculated the same as similar measures used by other
companies.
RECONCILIATION OF GAAP TO NON-GAAP NET
EARNINGS
(In millions, except per share
data)
Three months ended September
30, 2023
Three months ended September
30, 2022
Reported
Adjustments
Adjusted (non-GAAP)
Reported
Adjustments
Adjusted (non-GAAP)
Net revenues
$
917.9
$
—
$
917.9
$
913.7
$
—
$
913.7
Operating income
193.1
20.3
(1)
213.4
162.9
39.4
(1)
202.3
Operating margin
21.0
%
23.2
%
17.8
%
22.1
%
Earnings before income taxes
170.1
20.3
(2)
190.4
133.7
47.0
(2)
180.7
Provision for income taxes
13.7
5.1
(3)
18.8
19.1
8.8
(3)
27.9
Effective income tax rate
8.1
%
9.9
%
14.3
%
15.4
%
Net earnings
156.4
15.2
171.6
114.6
38.2
152.8
Noncontrolling interests
0.1
—
0.1
—
—
—
Net earnings attributable to Allegion
plc
$
156.3
$
15.2
$
171.5
$
114.6
$
38.2
$
152.8
Diluted earnings per ordinary share
attributable to
Allegion plc shareholders:
$
1.77
$
0.17
$
1.94
$
1.30
$
0.43
$
1.73
(1)
Adjustments to operating income for the
three months ended September 30, 2023, consist of $5.9 million of
restructuring charges and acquisition and integration expenses and
$14.4 million of amortization expense related to acquired
intangible assets. Adjustments to operating income for the three
months ended September 30, 2022, consist of $18.8 million of
restructuring charges and acquisition and integration expenses,
$15.1 million of amortization expense related to acquired
intangible assets and $5.5 million of amortization expense related
to a fair value of inventory step-up.
(2)
Adjustments to earnings before income
taxes for the three months ended September 30, 2023, consist of the
adjustments to operating income discussed above. Adjustments to
earnings before income taxes for the three months ended September
30, 2022, consist of the adjustments to operating income discussed
above, as well as a $7.6 million loss on divestiture of a
business.
(3)
Adjustments to the provision for income
taxes for the three months ended September 30, 2023, and 2022,
consist of $5.1 million and $8.8 million, respectively, of tax
expense related to the excluded items discussed above.
Nine months ended September
30, 2023
Nine months ended September
30, 2022
Reported
Adjustments
Adjusted (non-GAAP)
Reported
Adjustments
Adjusted (non-GAAP)
Net revenues
$
2,753.4
$
—
$
2,753.4
$
2,410.4
$
—
$
2,410.4
Operating income
548.7
59.7
(1)
608.4
427.0
66.2
(1)
493.2
Operating margin
19.9
%
22.1
%
17.7
%
20.5
%
Earnings before income taxes
480.3
59.7
(2)
540.0
374.3
72.1
(2)
446.4
Provision for income taxes
58.3
15.1
(3)
73.4
51.4
15.5
(3)
66.9
Effective income tax rate
12.1
%
13.6
%
13.7
%
15.0
%
Net earnings
422.0
44.6
466.6
322.9
56.6
379.5
Noncontrolling interests
0.2
0.1
0.3
0.2
—
0.2
Net earnings attributable to Allegion
plc
$
421.8
$
44.5
$
466.3
$
322.7
$
56.6
$
379.3
Diluted earnings per ordinary share
attributable to
Allegion plc shareholders:
$
4.78
$
0.50
$
5.28
$
3.65
$
0.64
$
4.29
(1)
Adjustments to operating income for the
nine months ended September 30, 2023, consist of $17.5 million of
restructuring charges and acquisition and integration expenses and
$42.2 million of amortization expense related to acquired
intangible assets. Adjustments to operating income for the nine
months ended September 30, 2022, consist of $32.1 million of
restructuring charges and acquisition and integration expenses,
$28.6 million of amortization expense related to acquired
intangible assets and $5.5 million of amortization expense related
to a fair value of inventory step-up.
(2)
Adjustments to earnings before income
taxes for the nine months ended September 30, 2023, consist of the
adjustments to operating income discussed above. Adjustments to
operating income for the nine months ended September 30, 2022,
consist of the adjustments to operating income discussed above, as
well as $6.0 million in non-operating investment gains, $4.3
million of debt financing costs and a $7.6 million loss on
divestiture of a business.
(3)
Adjustments to the provision for income
taxes for the nine months ended September 30, 2023, and 2022,
consist of $15.1 million and $15.5 million, respectively, of tax
expense related to the excluded items discussed above.
ALLEGION PLC
SCHEDULE 3
RECONCILIATION OF GAAP TO NON-GAAP
REVENUE AND OPERATING INCOME BY REGION
(In millions)
Three months ended September
30, 2023
Three months ended September
30, 2022
As Reported
Margin
As Reported
Margin
Allegion Americas
Net revenues (GAAP)
$
740.9
$
741.9
Operating income (GAAP)
$
200.2
27.0
%
$
178.5
24.1
%
Restructuring charges
0.8
0.1
%
—
—
%
Acquisition and integration costs
1.1
0.2
%
5.9
0.8
%
Amortization of acquired intangible
assets
8.5
1.1
%
10.4
1.4
%
Amortization of inventory step-up
—
—
%
5.5
0.7
%
Adjusted operating income
210.6
28.4
%
200.3
27.0
%
Depreciation and amortization of
nonacquired intangible assets
8.5
1.2
%
8.3
1.1
%
Adjusted EBITDA
$
219.1
29.6
%
$
208.6
28.1
%
Allegion International
Net revenues (GAAP)
$
177.0
$
171.8
Operating income (GAAP)
$
15.7
8.9
%
$
14.8
8.6
%
Restructuring charges
2.1
1.2
%
0.2
0.1
%
Acquisition and integration costs
—
—
%
0.3
0.2
%
Amortization of acquired intangible
assets
5.9
3.3
%
4.7
2.7
%
Adjusted operating income
23.7
13.4
%
20.0
11.6
%
Depreciation and amortization of
nonacquired intangible assets
4.4
2.5
%
4.0
2.4
%
Adjusted EBITDA
$
28.1
15.9
%
$
24.0
14.0
%
Corporate
Operating loss (GAAP)
$
(22.8
)
$
(30.4
)
Acquisition and integration costs
1.9
12.4
Adjusted operating loss
(20.9
)
(18.0
)
Depreciation and amortization of
nonacquired intangible assets
0.3
0.8
Adjusted EBITDA
$
(20.6
)
$
(17.2
)
Total
Net revenues
$
917.9
$
913.7
Adjusted operating income
$
213.4
23.2
%
$
202.3
22.1
%
Depreciation and amortization of
nonacquired intangible assets
13.2
1.5
%
13.1
1.5
%
Adjusted EBITDA
$
226.6
24.7
%
$
215.4
23.6
%
Nine months ended September
30, 2023
Nine months ended September
30, 2022
As Reported
Margin
As Reported
Margin
Allegion Americas
Net revenues (GAAP)
$
2,209.0
$
1,851.1
Operating income (GAAP)
$
582.2
26.4
%
$
454.4
24.5
%
Restructuring charges
0.8
—
%
—
—
%
Acquisition and integration costs
6.3
0.3
%
5.9
0.4
%
Amortization of acquired intangible
assets
25.3
1.1
%
13.7
0.7
%
Amortization of inventory step-up
—
—
%
5.5
0.3
%
Adjusted operating income
614.6
27.8
%
479.5
25.9
%
Depreciation and amortization of
nonacquired intangible assets
24.9
1.1
%
22.8
1.2
%
Adjusted EBITDA
$
639.5
28.9
%
$
502.3
27.1
%
Allegion International
Net revenues (GAAP)
$
544.4
$
559.3
Operating income (GAAP)
$
40.2
7.4
%
$
47.4
8.5
%
Restructuring charges
6.8
1.2
%
4.7
0.8
%
Acquisition and integration costs
0.4
0.1
%
0.4
0.1
%
Amortization of acquired intangible
assets
16.9
3.1
%
14.9
2.7
%
Adjusted operating income
64.3
11.8
%
67.4
12.1
%
Depreciation and amortization of
nonacquired intangible assets
13.5
2.5
%
12.8
2.2
%
Adjusted EBITDA
$
77.8
14.3
%
$
80.2
14.3
%
Corporate
Operating loss (GAAP)
$
(73.7
)
$
(74.8
)
Acquisition and integration costs
3.2
21.1
Adjusted operating loss
(70.5
)
(53.7
)
Depreciation and amortization of
nonacquired intangible assets
1.2
2.4
Adjusted EBITDA
$
(69.3
)
$
(51.3
)
Total
Net revenues
$
2,753.4
$
2,410.4
Adjusted operating income
$
608.4
22.1
%
$
493.2
20.5
%
Depreciation and amortization of
nonacquired intangible assets
39.6
1.4
%
38.0
1.5
%
Adjusted EBITDA
$
648.0
23.5
%
$
531.2
22.0
%
ALLEGION PLC
SCHEDULE 4
RECONCILIATION OF CASH PROVIDED BY
OPERATING ACTIVITIES TO AVAILABLE CASH FLOW AND NET EARNINGS TO
ADJUSTED EBITDA
(In millions)
Nine months ended September
30,
2023
2022
Net cash provided by operating
activities
$
381.1
$
267.1
Capital expenditures
(60.7
)
(41.5
)
Available cash flow
$
320.4
$
225.6
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net earnings (GAAP)
$
156.4
$
114.6
$
422.0
$
322.9
Provision for income taxes
13.7
19.1
58.3
51.4
Interest expense
22.9
23.1
70.2
52.2
Amortization of acquired intangible
assets
14.4
15.1
42.2
28.6
Amortization of inventory step-up
—
5.5
—
5.5
Depreciation and amortization of
nonacquired intangible assets
13.2
13.1
39.6
38.0
EBITDA
220.6
190.5
632.3
498.6
Other expense (income), net
0.1
(1.5
)
(1.8
)
(7.1
)
Loss on divestitures
—
7.6
—
7.6
Acquisition and integration costs and
restructuring charges
5.9
18.8
17.5
32.1
Adjusted EBITDA
$
226.6
$
215.4
$
648.0
$
531.2
ALLEGION PLC
SCHEDULE 5
RECONCILIATION OF GAAP REVENUE GROWTH
TO NON-GAAP ORGANIC REVENUE GROWTH BY REGION
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Allegion Americas
Revenue growth (GAAP)
(0.1
)%
43.1
%
19.3
%
18.8
%
Acquisitions
—
%
(17.1
)%
(10.8
)%
(5.6
)%
Currency translation effects
0.1
%
0.2
%
0.3
%
0.1
%
Organic growth (non-GAAP)
—
%
26.2
%
8.8
%
13.3
%
Allegion International
Revenue growth (GAAP)
3.0
%
(13.5
)%
(2.7
)%
(7.3
)%
Acquisitions and divestitures
(0.6
)%
(0.1
)%
—
%
0.1
%
Currency translation effects
(5.2
)%
12.5
%
(0.2
)%
10.1
%
Organic growth (non-GAAP)
(2.8
)%
(1.1
)%
(2.9
)%
2.9
%
Total
Revenue growth (GAAP)
0.5
%
27.4
%
14.2
%
11.7
%
Acquisitions and divestitures
(0.1
)%
(12.4
)%
(8.3
)%
(4.1
)%
Currency translation effects
(1.0
)%
3.6
%
0.2
%
2.9
%
Organic growth (non-GAAP)
(0.6
)%
18.6
%
6.1
%
10.5
%
ALLEGION PLC
SCHEDULE 6
RECONCILIATION OF NET EARNINGS TO
ADJUSTED EBITDA
2014
2015
2016
2017
2018
2019
2020
2021
2022
TTM 2023
Revenue
$2,118.3
$2,068.1
$2,238.0
$2,408.2
$2,731.7
$2,854.0
$2,719.9
$2,867.4
$3,271.9
$3,614.9
Net Earnings
175.2
153.9
229.1
273.3
434.9
401.8
314.3
483.0
458.0
557.1
Adjustments to arrive at operating
income:
Income tax provision
84.2
54.6
63.8
119.0
39.8
73.1
50.9
40.7
56.2
63.1
Interest expense (income), net
53.8
52.9
64.3
105.7
54.0
56.0
51.1
50.2
75.9
93.9
Other (income)/expense, net
4.6
104.0
75.0
(8.9)
(3.4)
33.9
(13.0)
(44.1)
(4.0)
(6.3)
Noncontrolling interests
(2.6)
0.4
2.1
3.4
0.5
0.3
0.2
0.4
0.3
0.3
Discontinued operations
11.1
0.4
—
—
—
—
—
—
—
—
Operating Income
326.3
366.2
434.3
492.5
525.8
565.1
403.5
530.2
586.4
708.1
% margin
15.4 %
17.7 %
19.4 %
20.5 %
19.2 %
19.8 %
14.8 %
18.5 %
17.9 %
19.6 %
Restructuring and Other Costs
7.1
16.1
10.8
13.9
6.5
20.4
26.8
5.1
4.9
7.8
Spin Costs
29.3
—
—
—
—
—
—
—
—
—
M&A Costs
—
17.8
2.7
4.6
10.0
2.0
2.4
4.4
30.5
13.1
Backlog Amortization
—
—
—
—
6.3
—
—
—
8.8
11.0
Amortization of Acquired Intangibles
9.3
11.5
19.4
20.6
28.4
29.7
29.6
28.7
35.4
46.6
Inventory Step Up (Access
Technologies)
—
—
—
—
—
—
—
—
6.0
0.5
Goodwill and Intangible asset
Impairment
—
—
—
—
—
5.9
101.7
—
—
—
Loss on asset held for sale (QMI)
—
—
—
—
—
—
37.9
—
—
—
Venezuela Inventory Impairment
33.3
4.2
—
—
—
—
—
—
—
—
Adjusted Operating Income
405.3
415.8
467.2
531.6
577.0
623.1
601.9
568.4
672.0
787.1
% margin
19.1 %
20.1 %
20.9 %
22.1 %
21.1 %
21.8 %
22.1 %
19.8 %
20.5 %
21.8 %
Depreciation & amortization
34.9
37.3
42.0
41.0
47.6
48.4
48.4
50.0
50.9
52.6
Adjusted EBITDA
$440.2
$453.1
$509.2
$572.6
$624.6
$671.5
$650.3
$618.4
$722.9
$839.7
% margin
20.8 %
21.9 %
22.8 %
23.8 %
22.9 %
23.5 %
23.9 %
21.6 %
22.1 %
23.2 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031620111/en/
Media Contact: Whitney Moorman – Reputation Management
Leader 317-810-3241 Whitney.Moorman@allegion.com
Analyst Contact: Jobi Coyle – Director, Investor
Relations 317-810-3107 Jobi.Coyle@allegion.com
Allegion (NYSE:ALLE)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Allegion (NYSE:ALLE)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024