Second Quarter 2024 Highlights
(Comparisons are year-over-year ("YoY"), unless otherwise
noted)
- Record sales of $1 billion, an
increase of 7%, driven by higher water heater volumes
- Diluted earnings per share (EPS) of $1.06, a YoY increase of 2% and an increase of 5%
compared to prior year adjusted EPS
- Reaffirm 2024 sales outlook of an increase of 3% to 5%
- Narrow EPS guidance to a range of between $3.95 and $4.10
- Recently announced Pureit acquisition expected to close by the
end of 2024
MILWAUKEE, July 23,
2024 /PRNewswire/ -- Global water technology
company A. O. Smith Corporation ("the Company") (NYSE: AOS) today
announced its second quarter 2024 results.
|
Key Financial
Metrics
Second
Quarter
(in millions, except
per share amounts)
|
|
Q2 2024
|
Q2 2023
|
% Change
YoY
|
|
Net sales
|
$1,024.3
|
$
960.8
|
7 %
|
|
Net earnings
|
$
156.2
|
$
157.0
|
-1 %
|
|
Adjusted
earnings
|
$
156.2
|
$
152.51
|
2 %
|
|
Diluted earnings per
share
|
$
1.06
|
$
1.04
|
2 %
|
|
Adjusted earnings per
share
|
$
1.06
|
$
1.011
|
5 %
|
|
|
|
|
|
1
|
Excludes pension
settlement income in 2023. See accompanying GAAP to Non-GAAP
reconciliations for further details.
|
A. O. Smith Reports Record Sales
"A. O. Smith achieved record sales in the second quarter on
higher residential and commercial water heater volumes in
North America, including sales of
our recently launched gas-tankless products, which we began
shipping in the quarter. Additionally, we are pleased to see our
North American boiler business resume its growth trajectory," noted
Kevin J. Wheeler, chairman and chief
executive officer. "I continue to be impressed by our global team's
commitment to execution and meeting our customers' needs to
generate record topline performance. I also look forward to
welcoming the Pureit team to the A. O. Smith family before the end
of the year."
Second Quarter 2024 Segment-level Performance
North America
2024 sales of $790.7 million
improved 9% over 2023, primarily driven by higher water heater and
commercial boilers volumes. 2024 sales also benefited from pricing
actions.
Segment earnings were $198.4
million and segment margin was 25.1% in 2024 compared to
segment earnings of $199.1 million
and segment margin of 27.6% in 2023. The year-over-year decreases
in segment earnings and segment margin were in line with
expectations and were largely a result of higher material costs,
primarily steel, and higher selling expenses to support our sales
growth initiatives including the launch of gas-tankless products.
2023 adjusted segment earnings and adjusted segment margin were
$194.1 million and 26.9%,
respectively.
Rest of World
Sales of $244.8 million were
essentially flat to prior year sales and included inter-segment
sales related to our recently launched tankless water heaters which
are manufactured in China for the
North America market.
Additionally, there was an unfavorable currency translation impact
of approximately $7 million primarily
related to sales in China. Local
currency third party sales in China increased 2% in 2024, primarily driven
by higher volumes of kitchen products and combi boilers, partially
offset by lower sales of residential water treatment products in
China. Sales in India increased 16% in local currency in 2024
driven by continued strong demand.
Segment earnings were $25.9
million and segment margin was 10.6% in 2024 compared to
segment earnings of $28.3 million and
segment margin of 11.6% in the prior year. 2024 segment margin
attributed to third party sales was 11.5%. The lower segment
earnings and segment margin in 2024 compared to segment earnings
and segment margin in 2023, were primarily driven by an unfavorable
product mix and sales promotions in China.
Balance Sheet, Liquidity and Capital Allocation
As of June 30, 2024, cash and
marketable securities balances totaled $233.3 million and debt totaled $140.4 million, resulting in a leverage ratio of
6.8% as measured by total debt-to-total capitalization.
Cash provided by operations was $164.0
million and free cash flow was $119.1
million in the first half of 2024, which decreased
year-over-year primarily as a result of higher inventory and
accounts receivable balances, higher incentive payments associated
with record sales and profits earned in 2023, which more than
offset higher earnings and higher trade accounts payable
balances.
Consistent with its long-standing strategy to grow through
acquisitions and further penetrate high potential markets, the
Company signed an agreement earlier this month to acquire Pureit
from Unilever for $120 million,
subject to customary adjustments. Pureit, a leading water
purification business in South
Asia, offers a broad range of residential water purification
solutions and has annual sales of approximately USD $60 million, primarily in India. The acquisition fits squarely in the
Company's core capabilities and doubles the Company's market
penetration in South Asia. For
full release, click here.
As part of its commitment to return capital to shareholders, the
Company repurchased 1.8 million shares at a cost of $153.2 million in the first half of 2024. As of
June 30, 2024, authority remained to
repurchase approximately 3.7 million additional shares. The Company
expects to spend $300 million
repurchasing shares in 2024.
On July 8, 2024, the Company's
board of directors approved a $0.32
per share dividend for shareholders of record on July 31, payable on August
15. For the full release, click here.
Outlook
|
2024 Outlook
(in millions except per
share amounts)
|
|
|
|
2023
|
|
2024
Outlook
|
|
|
|
Actual
|
|
Low End
|
|
|
High End
|
|
|
|
Net sales
|
$
3,853
|
|
$ 3,970
|
|
|
$ 4,050
|
|
|
|
Diluted earnings per
share
|
$
3.69
|
|
$
3.95
|
|
|
$
4.10
|
|
|
|
Adjusted earnings per
share
|
$ 3.812
|
|
$
3.95
|
|
|
$
4.10
|
|
|
|
|
|
2
|
Excludes restructuring
and impairment expenses. See accompanying GAAP to Non-GAAP
reconciliations
|
"North American water heater industry shipments were resilient
in the first half of the year buoyed by stable replacement demand
and prebuy ahead of our March
1st price increase. We are pleased with our
performance in China in the
quarter; however we see continued economic headwinds and remain
cautious about the second half of the year. As we consider these
and other factors, we reaffirm our 2024 sales projection of an
increase between 3% and 5% year-over-year and narrow our full-year
EPS guidance of a range of between $3.95 and $4.10, a
6% year-over-year increase over adjusted EPS, at the mid-point,"
stated Wheeler.
The Company's guidance excludes the potential impacts from
future acquisitions.
A. O. Smith will host a webcasted conference call at
10:00 a.m. (Eastern Daylight Time)
today. The call can be heard live on the Company's website click
here. An audio replay of the call will be available on the
Company's website after the live event. To access the archived
audio replay, go to the "Investors" page and select the Second
Quarter 2024 Earnings Call link.
To provide improved transparency into the operating results of
its business, the Company is providing non-GAAP measures. Free cash
flow is defined as cash provided by operations less capital
expenditures. Adjusted earnings, adjusted EPS, adjusted segment
earnings and adjusted corporate expenses exclude the impact of
pension settlement income and impairment expenses. Reconciliations
from GAAP measures to non-GAAP measures are provided in the
financial information included in this news release.
Forward-looking Statements
This release contains statements that the Company believes
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally can be identified by the use of words such as
"may," "will," "expect," "intend," "estimate," "anticipate,"
"believe," "forecast," "continue," "guidance," "outlook" or words
of similar meaning. All forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those anticipated as of the date of this release.
Important factors that could cause actual results to differ
materially from these expectations include, among other things, the
following: softening in U.S. residential water heater demand;
negative impacts to the Company, particularly the demand for its
products, resulting from global inflationary pressures or a
potential recession in one or more of the markets in which the
Company participates; the Company's ability to continue to obtain
commodities, components, parts and accessories on a timely basis
through its supply chain and at expected costs; negative impacts to
demand for the Company's products, particularly commercial
products, as a result of changes in commercial property usage that
followed the COVID-19 pandemic; further weakening in U.S.
residential or commercial construction or instability in the
Company's replacement markets; inability of the Company to
implement or maintain pricing actions; inconsistent recovery of the
Chinese economy or a further decline in the growth rate of consumer
spending or housing sales in China; negative impact to the Company's
businesses from international tariffs, trade disputes and
geopolitical differences, including the conflicts in Ukraine, the Middle
East and attacks on commercial shipping vessels in the Red
Sea; potential further weakening in the high-efficiency gas boiler
segment in the U.S.; substantial defaults in payment by, material
reduction in purchases by or the loss, bankruptcy or insolvency of
a major customer; foreign currency fluctuations; the Company's
inability to successfully integrate or achieve its strategic
objectives resulting from acquisitions; the possibility that the
parties will fail to obtain necessary regulatory approvals or to
satisfy any of the other conditions to the proposed acquisition;
failure to realize the expected benefits of acquisitions or
expected synergies; competitive pressures on the Company's
businesses, including new technologies and new competitors; the
impact of potential information technology or data security
breaches; changes in government regulations or regulatory
requirements; the inability to respond to secular trends toward
decarbonization and energy efficiency; and adverse developments in
general economic, political and business conditions in key regions
of the world. Additional factors are discussed in the Company's
filings with Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the year ended
December 31, 2023, quarterly reports
on Form 10-Q and current reports on Form 8-K. Forward-looking
statements included in this news release are made only as of the
date of this release, and the Company is under no obligation to
update these statements to reflect subsequent events or
circumstances. All subsequent written and oral forward-looking
statements attributed to the Company, or persons acting on its
behalf, are qualified entirely by these cautionary
statements.
About A. O. Smith
Celebrating its 150th year of business, A. O. Smith
Corporation, with headquarters in Milwaukee, Wisconsin, is a global leader
applying innovative technology and energy-efficient solutions to
products manufactured and marketed worldwide. Listed on the New
York Stock Exchange (NYSE: AOS), the Company is one of the world's
leading manufacturers of residential and commercial water heating
equipment and boilers, as well as water treatment products. For
more information, visit www.aosmith.com.
|
A. O. SMITH
CORPORATION
Condensed
Consolidated Statement of Earnings
(dollars in millions,
except share data)
(unaudited)
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net sales
|
$
|
1,024.3
|
|
$
|
960.8
|
|
$
|
2,003.1
|
|
$
|
1,927.2
|
|
Cost of products
sold
|
|
628.3
|
|
|
576.1
|
|
|
1,222.4
|
|
|
1,168.4
|
|
Gross profit
|
|
396.0
|
|
|
384.7
|
|
|
780.7
|
|
|
758.8
|
|
Selling, general and
administrative expenses
|
|
188.5
|
|
|
180.3
|
|
|
380.7
|
|
|
367.5
|
|
Impairment
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.6
|
|
Interest
expense
|
|
1.8
|
|
|
4.5
|
|
|
2.8
|
|
|
8.5
|
|
Other income,
net
|
|
(0.9)
|
|
|
(9.0)
|
|
|
(2.1)
|
|
|
(13.0)
|
|
Earnings before
provision for income taxes
|
|
206.6
|
|
|
208.9
|
|
|
399.3
|
|
|
380.2
|
|
Provision for income
taxes
|
|
50.4
|
|
|
51.9
|
|
|
95.5
|
|
|
96.3
|
|
Net earnings
|
$
|
156.2
|
|
$
|
157.0
|
|
$
|
303.8
|
|
$
|
283.9
|
|
Diluted earnings per share of common
stock(1)
|
$
|
1.06
|
|
$
|
1.04
|
|
$
|
2.05
|
|
$
|
1.87
|
|
Average common shares
outstanding (000's omitted)
|
|
147,600
|
|
|
151,541
|
|
|
147,949
|
|
|
151,719
|
|
|
(1) Earnings
per share amounts are calculated discretely and, therefore, may not
add up to the total due to rounding.
|
|
A. O. SMITH
CORPORATION
Condensed
Consolidated Balance Sheet
(dollars in
millions)
|
|
|
(Unaudited)
June 30,
2024
|
|
December
31,
2023
|
|
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
216.1
|
|
$
|
339.9
|
|
Marketable
securities
|
|
|
17.2
|
|
|
23.5
|
|
Receivables
|
|
|
649.9
|
|
|
596.0
|
|
Inventories
|
|
|
544.7
|
|
|
497.4
|
|
Other current
assets
|
|
|
53.4
|
|
|
43.5
|
|
Total Current Assets
|
|
|
1,481.3
|
|
|
1,500.3
|
|
Net property, plant
and equipment
|
|
|
603.2
|
|
|
597.5
|
|
Goodwill and other
intangibles
|
|
|
980.2
|
|
|
970.1
|
|
Operating lease
assets
|
|
|
33.6
|
|
|
37.3
|
|
Other
assets
|
|
|
99.3
|
|
|
108.7
|
|
Total Assets
|
|
$
|
3,197.6
|
|
$
|
3,213.9
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Trade
payables
|
|
$
|
574.6
|
|
$
|
600.4
|
|
Accrued payroll and
benefits
|
|
|
70.4
|
|
|
92.2
|
|
Accrued
liabilities
|
|
|
152.7
|
|
|
177.4
|
|
Product
warranties
|
|
|
64.7
|
|
|
65.3
|
|
Debt due within one
year
|
|
|
10.0
|
|
|
10.0
|
|
Total Current Liabilities
|
|
|
872.4
|
|
|
945.3
|
|
Long-term
debt
|
|
|
130.4
|
|
|
117.3
|
|
Operating lease
liabilities
|
|
|
24.7
|
|
|
27.9
|
|
Other
liabilities
|
|
|
258.5
|
|
|
279.0
|
|
Stockholders'
equity
|
|
|
1,911.6
|
|
|
1,844.4
|
|
Total Liabilities and Stockholders'
Equity
|
|
$
|
3,197.6
|
|
$
|
3,213.9
|
|
A. O. SMITH
CORPORATION
Condensed
Consolidated Statement of Cash Flows
(dollars in
millions)
(unaudited)
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
Operating Activities
|
|
|
|
|
|
|
Net
earnings
|
$
|
303.8
|
|
$
|
283.9
|
|
Adjustments to
reconcile net earnings to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
Depreciation & amortization
|
|
39.2
|
|
|
38.1
|
|
Stock based
compensation expense
|
|
10.4
|
|
|
8.6
|
|
Deferred income
taxes
|
|
(1.5)
|
|
|
—
|
|
Non-cash
impairment
|
|
—
|
|
|
15.6
|
|
Pension settlement
income
|
|
—
|
|
|
(6.0)
|
|
Pension settlement
income non-cash taxes
|
|
—
|
|
|
1.5
|
|
Net changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Current assets and
liabilities
|
|
(173.2)
|
|
|
(66.4)
|
|
Noncurrent assets and
liabilities
|
|
(14.7)
|
|
|
(15.1)
|
|
Cash Provided by Operating
Activities
|
|
164.0
|
|
|
260.2
|
|
Investing Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
(44.9)
|
|
|
(24.2)
|
|
Acquisitions
|
|
(21.3)
|
|
|
—
|
|
Investment in
marketable securities
|
|
(50.9)
|
|
|
(14.7)
|
|
Net proceeds from sale
of marketable securities
|
|
57.0
|
|
|
72.7
|
|
Cash (Used in) Provided by Investing
Activities
|
|
(60.1)
|
|
|
33.8
|
|
Financing Activities
|
|
|
|
|
|
|
Long-term debt
incurred (repaid)
|
|
14.3
|
|
|
(139.3)
|
|
Common stock
repurchases
|
|
(153.2)
|
|
|
(69.6)
|
|
Net proceeds from
stock option activity
|
|
9.4
|
|
|
8.3
|
|
Dividends
paid
|
|
(94.2)
|
|
|
(90.6)
|
|
Cash Used in Financing
Activities
|
|
(223.7)
|
|
|
(291.2)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(4.0)
|
|
|
(15.1)
|
|
Net decrease in cash
and cash equivalents
|
|
(123.8)
|
|
|
(12.3)
|
|
Cash and cash
equivalents - beginning of period
|
|
339.9
|
|
|
391.2
|
|
Cash and Cash Equivalents - End of
Period
|
$
|
216.1
|
|
$
|
378.9
|
|
A. O. SMITH
CORPORATION
Business
Segments
(dollars in
millions)
(unaudited)
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$
|
790.7
|
|
$
|
722.3
|
|
$
|
1,557.0
|
|
$
|
1,475.0
|
|
Rest of
World
|
|
244.8
|
|
|
244.2
|
|
|
471.7
|
|
|
463.3
|
|
Inter-segment
sales
|
|
(11.2)
|
|
|
(5.7)
|
|
|
(25.6)
|
|
|
(11.1)
|
|
$
|
1,024.3
|
|
$
|
960.8
|
|
$
|
2,003.1
|
|
$
|
1,927.2
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America(1)
|
$
|
198.4
|
|
$
|
199.1
|
|
$
|
397.1
|
|
$
|
387.7
|
|
Rest of
World(2)
|
|
25.9
|
|
|
28.3
|
|
|
43.1
|
|
|
33.6
|
|
Inter-segment earnings
elimination
|
|
(0.1)
|
|
|
—
|
|
|
(0.4)
|
|
|
—
|
|
|
224.2
|
|
|
227.4
|
|
|
439.8
|
|
|
421.3
|
|
Corporate
expense(3)
|
|
(15.8)
|
|
|
(14.0)
|
|
|
(37.7)
|
|
|
(32.6)
|
|
Interest
expense
|
|
(1.8)
|
|
|
(4.5)
|
|
|
(2.8)
|
|
|
(8.5)
|
|
Earnings before income
taxes
|
|
206.6
|
|
|
208.9
|
|
|
399.3
|
|
|
380.2
|
|
Provision for incomes
taxes
|
|
50.4
|
|
|
51.9
|
|
|
95.5
|
|
|
96.3
|
|
Net earnings
|
$
|
156.2
|
|
$
|
157.0
|
|
$
|
303.8
|
|
$
|
283.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments: North America
|
|
|
|
|
|
|
|
|
|
|
|
|
includes pension
settlement income of:
|
$
|
—
|
|
$
|
(5.0)
|
|
$
|
—
|
|
$
|
(5.0)
|
|
(2)
Adjustments: Rest of World
|
|
|
|
|
|
|
|
|
|
|
|
|
includes impairment
expense of:
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.5
|
|
(3)
Adjustments: Corporate expense
|
|
|
|
|
|
|
|
|
|
|
|
|
includes pension
settlement income of:
|
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
(1.0)
|
|
includes impairment
expense of:
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
A. O. SMITH
CORPORATION
Adjusted Earnings
and Adjusted Earnings Per Share
(dollars in millions,
except per share data)
(unaudited)
The following is a
reconciliation of net earnings and diluted earnings per share to
adjusted earnings (non-GAAP) and adjusted
earnings per share
(non-GAAP):
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net Earnings (GAAP)
|
$
|
156.2
|
|
$
|
157.0
|
|
$
|
303.8
|
|
$
|
283.9
|
|
Impairment expense,
before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.6
|
|
Pension settlement
income, before tax
|
|
—
|
|
|
(6.0)
|
|
|
—
|
|
|
(6.0)
|
|
Tax effect on above
items
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
Adjusted Earnings (non-GAAP)
|
$
|
156.2
|
|
$
|
152.5
|
|
$
|
303.8
|
|
$
|
295.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share
(GAAP)(1)
|
$
|
1.06
|
|
$
|
1.04
|
|
$
|
2.05
|
|
$
|
1.87
|
|
Impairment expense per
diluted share, before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.10
|
|
Pension settlement
income per diluted share, before tax
|
|
—
|
|
|
(0.04)
|
|
|
—
|
|
|
(0.04)
|
|
Tax effect on above
items per diluted share
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Adjusted Earnings Per Share
(non-GAAP)(1)
|
$
|
1.06
|
|
$
|
1.01
|
|
$
|
2.05
|
|
$
|
1.94
|
|
|
(1) Earnings
per share amounts are calculated discretely and, therefore, may not
add up to the total due to rounding.
|
|
A. O. SMITH
CORPORATION
Adjusted Segment
Earnings
(dollars in
millions)
(unaudited)
The following is a
reconciliation of reported earnings before provision for income
taxes to total segment earnings (non-GAAP)
and adjusted
segment earnings (non-GAAP):
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Earnings Before
Provision for Income Taxes (GAAP)
|
$
|
206.6
|
|
$
|
208.9
|
|
$
|
399.3
|
|
$
|
380.2
|
|
Add: Corporate
expense(1)
|
|
15.8
|
|
|
14.0
|
|
|
37.7
|
|
|
32.6
|
|
Add: Interest
expense
|
|
1.8
|
|
|
4.5
|
|
|
2.8
|
|
|
8.5
|
|
Total Segment Earnings
(non-GAAP)
|
$
|
224.2
|
|
$
|
227.4
|
|
$
|
439.8
|
|
$
|
421.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America(2)
|
$
|
198.4
|
|
$
|
199.1
|
|
$
|
397.1
|
|
$
|
387.7
|
|
Rest of
World(3)
|
|
25.9
|
|
|
28.3
|
|
|
43.1
|
|
|
33.6
|
|
Inter-segment earnings
elimination
|
|
(0.1)
|
|
|
—
|
|
|
(0.4)
|
|
|
—
|
|
Total Segment Earnings
(non-GAAP)
|
$
|
224.2
|
|
$
|
227.4
|
|
$
|
439.8
|
|
$
|
421.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Corporate
expense
|
$
|
(15.8)
|
|
$
|
(14.0)
|
|
$
|
(37.7)
|
|
$
|
(32.6)
|
|
Pension settlement
income, before tax
|
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
(1.0)
|
|
Impairment expense,
before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
Adjusted Corporate
expense (non-GAAP)
|
$
|
(15.8)
|
|
$
|
(15.0)
|
|
$
|
(37.7)
|
|
$
|
(30.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)North
America
|
$
|
198.4
|
|
$
|
199.1
|
|
$
|
397.1
|
|
$
|
387.7
|
|
Pension settlement
income, before tax
|
|
—
|
|
|
(5.0)
|
|
|
—
|
|
|
(5.0)
|
|
Adjusted North America
(non-GAAP)
|
$
|
198.4
|
|
$
|
194.1
|
|
$
|
397.1
|
|
$
|
382.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)Rest of
World
|
$
|
25.9
|
|
$
|
28.3
|
|
$
|
43.1
|
|
$
|
33.6
|
|
Impairment expense,
before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.5
|
|
Adjusted Rest of World
(non-GAAP)
|
$
|
25.9
|
|
$
|
28.3
|
|
$
|
43.1
|
|
$
|
46.1
|
|
A. O. SMITH
CORPORATION
Free Cash
Flow
(dollars in
millions)
(unaudited)
The following is a
reconciliation of reported cash flow from operating activities to
free cash flow (non-GAAP):
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
Cash provided by operating activities
(GAAP)
|
$
|
164.0
|
|
$
|
260.2
|
|
Less: Capital
expenditures
|
|
(44.9)
|
|
|
(24.2)
|
|
Free cash flow (non-GAAP)
|
$
|
119.1
|
|
$
|
236.0
|
|
A. O. SMITH
CORPORATION
2024 Adjusted EPS
Guidance and 2023 Adjusted EPS
(unaudited)
The following is a
reconciliation of diluted EPS to adjusted EPS (non-GAAP) (all items
are net of tax):
|
|
2024
Guidance
|
|
2023
|
|
|
Diluted EPS (GAAP)
|
$
|
3.95 -
4.10
|
|
$
|
3.69
|
|
|
Restructuring and
impairment expense
|
|
—
|
|
|
0.12
|
(1)
|
|
Adjusted EPS (non-GAAP)
|
$
|
3.95 -
4.10
|
|
$
|
3.81
|
|
|
|
|
(1)
|
Includes pre-tax
restructuring and impairment expenses of $15.7 million and $3.1
million, within the Rest of World segment and Corporate expenses,
respectively.
|
SOURCE: A. O. Smith Corporation
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SOURCE A. O. Smith Corporation
