- Third-quarter 2022 net earnings per share (EPS) of $1.30,
compared with 2021 EPS of $1.59; Third-quarter 2022 adjusted EPS of
$1.64, up 5.1 percent compared with 2021 adjusted EPS of
$1.56
- Third-quarter 2022 revenues of $913.7 million, up 27.4
percent on a reported basis and up 18.6 percent on an organic
basis
- Third-quarter 2022 operating margin of 17.8 percent,
compared with 2021 operating margin of 19.3 percent; Adjusted
operating margin of 21 percent, up 100 basis points compared with
2021 adjusted operating margin of 20 percent
- Affirming full-year 2022 reported revenue growth outlook of
13 to 14 percent; Increasing full-year 2022 organic revenue growth
outlook to a range of 9.5 to 10.5 percent
- Revising full-year 2022 EPS outlook to a range of $4.90 to
$5.00 and adjusted EPS outlook to a range of $5.40 to
$5.50
Allegion plc (NYSE: ALLE), a leading global provider of security
products and solutions, today reported third-quarter 2022 net
revenues of $913.7 million and net earnings of $114.6 million, or
$1.30 per share. Excluding charges related to restructuring,
acquisition and integration costs, amortization expense related to
acquired backlog revenue and a fair value of inventory step-up, and
a loss on the sale of a business, adjusted net earnings were $144.7
million, or $1.64 per share, up 5.1 percent when compared with
third-quarter 2021 adjusted EPS of $1.56.
Third-quarter 2022 net revenues increased 27.4 percent when
compared to the prior-year period (up 18.6 percent on an organic
basis). The organic revenue increase was driven by robust price
realization and strong volume in the Allegion Americas businesses
offsetting weakness experienced in the Allegion International
businesses. Foreign currency exchange rate headwinds continued with
a nearly $26 million impact on reported revenues.
“I am extremely impressed with the resilience of our people and
the strong customer relationships we have built over many years,”
said John H. Stone, Allegion president and CEO. “The hard work by
the entire Allegion team delivered outstanding operational
performance in the quarter, and we look to build on this momentum
going forward, creating seamless access and a safer world.”
The Allegion Americas segment revenues increased 42.5 percent
(up 25.8 percent on an organic basis). The organic increase was
driven by continued strength in price realization and volume growth
in both the non-residential and residential businesses. The Access
Technologies acquisition contributed 16.9 percent to total growth.
The non-residential business grew approximately 30 percent,
excluding Access Technologies, and the residential business grew
mid-teens percent. Electronics growth for the segment came in at
nearly 30 percent.
The Allegion International segment revenues declined 13.6
percent (down 0.8 percent on an organic basis). The organic
decrease was driven by softening markets in the region,
particularly in mechanical products, nearly offset by price
realization. The reported revenue reflects the negative impact of
currency movements in the region.
Third-quarter 2022 operating income was $162.9 million, an
increase of $24.5 million or 17.7 percent compared to 2021.
Adjusted operating income in third-quarter 2022 was $191.6 million,
an increase of $48.4 million or 33.8 percent compared to 2021.
Third-quarter 2022 operating margin was 17.8 percent, compared
with 19.3 percent in 2021. Acquisition expenses were a
330-basis-point headwind in the quarter. The adjusted operating
margin in third-quarter 2022 was 21 percent, compared with 20
percent in 2021. The 100-basis-point increase in adjusted operating
margin is attributable to a favorable price, productivity,
inflation dynamic and positive business mix along with volume
leverage associated with the Allegion Americas growth.
Additional Items
Interest expense for third-quarter 2022 was $23.1 million, an
increase from $12.3 million for third-quarter 2021. This was driven
by increased debt as a result of the Access Technologies
acquisition along with an increase in variable interest rates.
In the third quarter, the company recorded a $7.6 million loss
($0.10 per share) on the divestiture of Milre Systek Co. Ltd.
(“Milre”) in South Korea that is excluded from adjusted EPS.
Other income net for third-quarter 2022 was $1.5 million,
compared to other income net of $14.7 million in the same period of
2021. The 2021 figure includes a $6.4 million gain on the sale of
an equity method investment that is excluded from adjusted EPS.
The company’s effective tax rate for third-quarter 2022 was 14.3
percent, compared with negative 2 percent in 2021. The company’s
adjusted effective tax rate for third-quarter 2022 was 14.9
percent, compared with negative 1.1 percent in 2021. The negative
2021 tax rates were driven by favorable resolution of uncertain tax
positions and a benefit related to the mix of income earned in
lower tax jurisdictions.
Cash Flow and Liquidity
Year-to-date available cash flow for 2022 was $225.6 million, a
decrease of $102.1 million versus the prior year. The
year-over-year decrease in available cash flow is due to increases
in net working capital and lower year-to-date net earnings.
Available cash flow continues to be consistent with pre-pandemic
trends.
The company ended third-quarter 2022 with cash and cash
equivalents of $282.2 million, as well as total debt of $2,227.1
million. These amounts are inclusive of the July 2022 draw on the
company’s revolving facility that, along with the issuance of $600
million of senior notes in June, funded its acquisition of Access
Technologies in July. Further, as of Sept. 30, 2022, approximately
80 percent of the company’s debt has fixed interest rates and is,
therefore, not exposed to the risk of variable interest rates.
Updated 2022 Outlook
The company is affirming its full-year 2022 revenue growth
outlook of 13 to 14 percent and increasing its organic revenue
growth outlook to 9.5 to 10.5 percent, which excludes the expected
impacts of acquisitions, divestitures and foreign currency
movements. The increase in the organic outlook is driven primarily
by strength in Allegion Americas offset by weakness in Allegion
International.
The company is revising its full-year 2022 reported EPS to be in
the $4.90 to $5.00 range, with adjusted EPS between $5.40 to $5.50.
The revised outlook now assumes approximately negative $0.05
adjusted EPS impact related to Access Technologies and associated
costs of the acquisition, with the $0.05 improvement to prior
outlook driven by lower intangible asset amortization.
Adjustments to 2022 EPS of approximately $0.50 per share include
expected charges for restructuring, acquisition and integration
expenses, amortization expense related to acquired backlog revenue
and a fair value of inventory step-up, debt financing costs, a loss
on the sale of a business, as well as non-operating investment
gains and losses. The increase in adjustments versus prior outlook
reflects the loss on the divestiture of Milre and purchase
accounting updates related to the recently acquired Access
Technologies business.
The outlook includes incremental investment of approximately
$0.17 per share; assumes a full-year adjusted effective tax rate of
approximately 13.5 percent; and assumes an average diluted share
count for the full year of approximately 88.3 million shares.
The company continues to expect full-year 2022 available cash
flow of approximately $420 to $440 million.
“Our team is motivated by and proud of the performance in Q3 –
and we are committed to delivering our full-year results and
long-term shareholder return,” Stone added. “We will continue
driving price to offset inflationary impacts and making organic and
inorganic investments to support our seamless access strategy and
technology-led solutions.”
Conference Call Information
On Thursday, Oct. 27, 2022, 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 $2.9 billion in revenue in 2021, and its security
products are sold around the world.
For more, visit www.allegion.com.
Non-GAAP Measures
This news release also 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, and adjusted EBITDA and adjusted EBITDA margin
(both non-GAAP measures). The company presents these non-GAAP
measures because management believes they provide useful
perspective of the company’s underlying business results, 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 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 statements regarding
the continued impacts of the global COVID-19 pandemic, supply chain
constraints, electronic component and labor shortages, inflation,
rising freight and material costs, impacts of Russia’s invasion of
Ukraine including further supply chain disruptions and the
increased risk of cyber-attacks in connection with such invasion,
the company's 2022 financial performance, the company’s business
plans and strategy, the company’s growth strategy, the company’s
capital allocation strategy, the company’s tax planning strategies,
and the performance of the markets in which the company operates.
These forward-looking statements generally are identified by the
words “believe,” “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 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. 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.
Further information on these factors and other risks that may
affect the company's business is included in filings it makes with
the Securities and Exchange Commission from time to time, including
its Form 10-K for the year ended Dec. 31, 2021, Form 10-Q for the
quarters ended March 31, 2022, June 30, 2022, and Sept. 30, 2022,
and in its other SEC filings. The company undertakes no obligation
to update these forward-looking statements.
ALLEGION PLC
Condensed and Consolidated Income
Statements
(In millions, except per share
data)
UNAUDITED
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net revenues
$
913.7
$
717.0
$
2,410.4
$
2,158.2
Cost of goods sold
545.7
416.5
1,438.7
1,239.8
Gross profit
368.0
300.5
971.7
918.4
Selling and administrative expenses
205.1
162.1
544.7
503.3
Operating income
162.9
138.4
427.0
415.1
Interest expense
23.1
12.3
52.2
37.0
Loss on divestitures
7.6
—
7.6
—
Other income, net
(1.5
)
(14.7
)
(7.1
)
(21.4
)
Earnings before income taxes
133.7
140.8
374.3
399.5
Provision for (benefit from) income
taxes
19.1
(2.8
)
51.4
28.9
Net earnings
114.6
143.6
322.9
370.6
Less: Net earnings attributable to
noncontrolling interests
—
0.1
0.2
0.4
Net earnings attributable to Allegion
plc
$
114.6
$
143.5
$
322.7
$
370.2
Basic earnings per ordinary
share
attributable to Allegion plc
shareholders:
$
1.30
$
1.60
$
3.67
$
4.11
Diluted earnings per ordinary
share
attributable to Allegion plc
shareholders:
$
1.30
$
1.59
$
3.65
$
4.08
Shares outstanding - basic
87.9
89.7
88.0
90.1
Shares outstanding - diluted
88.2
90.3
88.4
90.7
ALLEGION PLC
Condensed and Consolidated Balance
Sheets
(In millions)
UNAUDITED
September 30, 2022
December 31, 2021
ASSETS
Cash and cash equivalents
$
282.2
$
397.9
Accounts and notes receivables, net
422.5
283.3
Inventories
477.9
380.4
Other current assets
53.3
56.0
Total current assets
1,235.9
1,117.6
Property, plant and equipment, net
290.7
283.7
Goodwill
1,373.5
803.8
Intangible assets, net
599.7
447.5
Other noncurrent assets
443.5
398.4
Total assets
$
3,943.3
$
3,051.0
LIABILITIES AND EQUITY
Accounts payable
$
266.4
$
259.1
Accrued expenses and other current
liabilities
410.2
329.5
Short-term borrowings and current
maturities of long-term debt
12.6
12.6
Total current liabilities
689.2
601.2
Long-term debt
2,214.5
1,429.5
Other noncurrent liabilities
246.0
257.9
Equity
793.6
762.4
Total liabilities and equity
$
3,943.3
$
3,051.0
ALLEGION PLC
Condensed and Consolidated Statements
of Cash Flows
(In millions)
UNAUDITED
Nine months ended September
30,
2022
2021
Operating Activities
Net earnings
$
322.9
$
370.6
Depreciation and amortization
69.6
62.0
Changes in assets and liabilities and
other non-cash items
(125.4
)
(76.2
)
Net cash provided by operating
activities
267.1
356.4
Investing Activities
Capital expenditures
(41.5
)
(28.7
)
Acquisition of and equity investments in
businesses, net of cash acquired
(923.1
)
(6.5
)
Other investing activities, net
(1.3
)
20.3
Net cash used in investing activities
(965.9
)
(14.9
)
Financing Activities
Net proceeds from (repayments of) debt
789.6
(0.1
)
Debt financing costs
(10.2
)
—
Dividends paid to ordinary
shareholders
(107.9
)
(96.9
)
Repurchase of ordinary shares
(61.0
)
(212.7
)
Other financing activities, net
(4.4
)
0.4
Net cash provided by (used in) financing
activities
606.1
(309.3
)
Effect of exchange rate changes on cash
and cash equivalents
(23.0
)
(8.7
)
Net (decrease) increase in cash and cash
equivalents
(115.7
)
23.5
Cash and cash equivalents - beginning of
period
397.9
480.4
Cash and cash equivalents - end of
period
$
282.2
$
503.9
SUPPLEMENTAL
SCHEDULES
ALLEGION PLC
SCHEDULE 1
SELECTED OPERATING SEGMENT
INFORMATION
(In millions)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net revenues
Allegion Americas
$
747.2
$
524.4
$
1,867.7
$
1,572.7
Allegion International
166.5
192.6
542.7
585.5
Total net revenues
$
913.7
$
717.0
$
2,410.4
$
2,158.2
Operating income (loss)
Allegion Americas
$
178.4
$
133.7
$
455.9
$
419.5
Allegion International
14.9
20.5
45.9
54.0
Corporate unallocated
(30.4
)
(15.8
)
(74.8
)
(58.4
)
Total operating income
$
162.9
$
138.4
$
427.0
$
415.1
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, and
adjusted EBITDA and adjusted EBITDA margin (both non-GAAP
measures). 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:
(1)
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,
debt financing costs, gains or losses related to the divestiture of
businesses or equity method investments and non-operating
investment gains or losses;
(2)
Organic revenue growth is defined as U.S.
GAAP revenue growth excluding the impact of divestitures,
acquisitions and currency effects; and
(3)
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, 2022
Three months ended September
30, 2021
Reported
Adjustments
Adjusted (non-GAAP)
Reported
Adjustments
Adjusted (non-GAAP)
Net revenues
$
913.7
$
—
$
913.7
$
717.0
$
—
$
717.0
Operating income
162.9
28.7
(1)
191.6
138.4
4.8
(1)
143.2
Operating margin
17.8
%
21.0
%
19.3
%
20.0
%
Earnings before income taxes
133.7
36.3
(2)
170.0
140.8
(1.6
)
(2)
139.2
Provision for (benefit from) income
taxes
19.1
6.2
(3)
25.3
(2.8
)
1.2
(3)
(1.6
)
Effective income tax rate
14.3
%
14.9
%
(2.0
)%
(1.1
)%
Net earnings
114.6
30.1
144.7
143.6
(2.8
)
140.8
Noncontrolling interests
—
—
—
0.1
—
0.1
Net earnings attributable to Allegion
plc
$
114.6
$
30.1
$
144.7
$
143.5
$
(2.8
)
$
140.7
Diluted earnings per ordinary share
attributable to
Allegion plc shareholders:
$
1.30
$
0.34
$
1.64
$
1.59
$
(0.03
)
$
1.56
(1)
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 and
$9.9 million of amortization expense related to acquired backlog
revenue and a fair value of inventory step-up. Adjustments to
operating income for the three months ended September 30, 2021,
consist of $4.8 million of restructuring charges and acquisition
and integration expenses.
(2)
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. Adjustments to operating
income for the three months ended September 30, 2021, consist of
the adjustments to operating income discussed above and a $6.4
million gain on the sale of the Company's interest in an equity
method affiliate.
(3)
Adjustments to the provision for (benefit
from) income taxes for the three months ended September 30, 2022
and 2021, consist of $6.2 million and $1.2 million, respectively,
of tax expense related to the excluded items discussed above.
Nine months ended September
30, 2022
Nine months ended September
30, 2021
Reported
Adjustments
Adjusted (non-GAAP)
Reported
Adjustments
Adjusted (non-GAAP)
Net revenues
$
2,410.4
$
—
$
2,410.4
$
2,158.2
$
—
$
2,158.2
Operating income
427.0
42.0
(1)
469.0
415.1
8.3
(1)
423.4
Operating margin
17.7
%
19.5
%
19.2
%
19.6
%
Earnings before income taxes
374.3
47.9
(2)
422.2
399.5
1.9
(2)
401.4
Provision for income taxes
51.4
9.6
(3)
61.0
28.9
2.5
(3)
31.4
Effective income tax rate
13.7
%
14.4
%
7.2
%
7.8
%
Net earnings
322.9
38.3
361.2
370.6
(0.6
)
370.0
Noncontrolling interests
0.2
—
0.2
0.4
—
0.4
Net earnings attributable to Allegion
plc
$
322.7
$
38.3
$
361.0
$
370.2
$
(0.6
)
$
369.6
Diluted earnings per ordinary share
attributable to
Allegion plc shareholders:
$
3.65
$
0.43
$
4.08
$
4.08
$
—
$
4.08
(1)
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 and
$9.9 million of amortization expense related to acquired backlog
revenue and a fair value of inventory step-up. Adjustments to
operating income for the nine months ended September 30, 2021,
consist of $8.3 million of restructuring charges and acquisition
and integration expenses.
(2)
Adjustments to earnings before income
taxes for the nine 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 and $4.3 million of debt
financing costs, partially offset by $6.0 million in non-operating
investment gains. Adjustments to earnings before income taxes for
the nine months ended September 30, 2021, consist of the
adjustments to operating income discussed above and a $6.4 million
gain on the sale of the Company's interest in an equity method
affiliate.
(3)
Adjustments to the provision for income
taxes for the nine months ended September 30, 2022 and 2021,
consist of $9.6 million and $2.5 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, 2022
Three months ended September
30, 2021
As Reported
Margin
As Reported
Margin
Allegion Americas
Net revenues (GAAP)
$
747.2
$
524.4
Operating income (GAAP)
$
178.4
23.9
%
$
133.7
25.5
%
Acquisition and integration costs
5.9
0.8
%
—
—
%
Amortization of backlog and inventory
step-up
9.9
1.3
%
—
—
%
Adjusted operating income
194.2
26.0
%
133.7
25.5
%
Depreciation and amortization
14.3
1.9
%
8.5
1.6
%
Adjusted EBITDA
$
208.5
27.9
%
$
142.2
27.1
%
Allegion International
Net revenues (GAAP)
$
166.5
$
192.6
Operating income (GAAP)
$
14.9
8.9
%
$
20.5
10.6
%
Restructuring charges
0.2
0.2
%
0.8
0.5
%
Acquisition and integration costs
0.3
0.2
%
—
—
%
Adjusted operating income
15.4
9.3
%
21.3
11.1
%
Depreciation and amortization
8.7
5.2
%
9.7
5.0
%
Adjusted EBITDA
$
24.1
14.5
%
$
31.0
16.1
%
Corporate
Operating loss (GAAP)
$
(30.4
)
$
(15.8
)
Restructuring charges
—
0.2
Acquisition and integration costs
12.4
3.8
Adjusted operating loss
(18.0
)
(11.8
)
Depreciation and amortization
0.8
0.9
Adjusted EBITDA
$
(17.2
)
$
(10.9
)
Total
Net revenues
$
913.7
$
717.0
Adjusted operating income
$
191.6
21.0
%
$
143.2
20.0
%
Depreciation and amortization
23.8
2.6
%
19.1
2.6
%
Adjusted EBITDA
$
215.4
23.6
%
$
162.3
22.6
%
Nine months ended September
30, 2022
Nine months ended September
30, 2021
As Reported
Margin
As Reported
Margin
Allegion Americas
Net revenues (GAAP)
$
1,867.7
$
1,572.7
Operating income (GAAP)
$
455.9
24.4
%
$
419.5
26.7
%
Restructuring charges
—
—
%
0.1
—
%
Acquisition and integration costs
5.9
0.3
%
0.1
—
%
Amortization of backlog and inventory
step-up
9.9
0.6
%
—
—
%
Adjusted operating income
471.7
25.3
%
419.7
26.7
%
Depreciation and amortization
32.1
1.7
%
26.1
1.6
%
Adjusted EBITDA
$
503.8
27.0
%
$
445.8
28.3
%
Allegion International
Net revenues (GAAP)
$
542.7
$
585.5
Operating income (GAAP)
$
45.9
8.5
%
$
54.0
9.2
%
Restructuring charges
4.7
0.8
%
3.8
0.7
%
Acquisition and integration costs
0.4
0.1
%
—
—
%
Adjusted operating income
51.0
9.4
%
57.8
9.9
%
Depreciation and amortization
27.7
5.1
%
29.4
5.0
%
Adjusted EBITDA
$
78.7
14.5
%
$
87.2
14.9
%
Corporate
Operating loss (GAAP)
$
(74.8
)
$
(58.4
)
Restructuring charges
—
0.3
Acquisition and integration costs
21.1
4.0
Adjusted operating loss
(53.7
)
(54.1
)
Depreciation and amortization
2.4
3.2
Adjusted EBITDA
$
(51.3
)
$
(50.9
)
Total
Net revenues
$
2,410.4
$
2,158.2
Adjusted operating income
$
469.0
19.5
%
$
423.4
19.6
%
Depreciation and amortization
62.2
2.5
%
58.7
2.7
%
Adjusted EBITDA
$
531.2
22.0
%
$
482.1
22.3
%
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,
2022
2021
Net cash provided by operating
activities
$
267.1
$
356.4
Capital expenditures
(41.5
)
(28.7
)
Available cash flow
$
225.6
$
327.7
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net earnings (GAAP)
$
114.6
$
143.6
$
322.9
$
370.6
Provision for (benefit from) income
taxes
19.1
(2.8
)
51.4
28.9
Interest expense
23.1
12.3
52.2
37.0
Amortization of backlog and inventory
step-up
9.9
—
9.9
—
Depreciation and amortization
23.8
19.1
62.2
58.7
EBITDA
190.5
172.2
498.6
495.2
Other income, net
(1.5
)
(14.7
)
(7.1
)
(21.4
)
Loss on divestitures
7.6
—
7.6
—
Acquisition and integration costs and
restructuring charges
18.8
4.8
32.1
8.3
Adjusted EBITDA
$
215.4
$
162.3
$
531.2
$
482.1
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,
2022
2021
2022
2021
Allegion Americas
Revenue growth (GAAP)
42.5
%
(2.7
)%
18.8
%
5.2
%
Acquisitions
(16.9
)%
—
%
(5.6
)%
—
%
Currency translation effects
0.2
%
(0.3
)%
0.1
%
(0.5
)%
Organic growth (non-GAAP)
25.8
%
(3.0
)%
13.3
%
4.7
%
Allegion International
Revenue growth (GAAP)
(13.6
)%
1.7
%
(7.3
)%
17.8
%
Acquisitions and divestitures
—
%
2.4
%
0.1
%
2.3
%
Currency translation effects
12.8
%
(1.6
)%
10.1
%
(7.8
)%
Organic growth (non-GAAP)
(0.8
)%
2.5
%
2.9
%
12.3
%
Total
Revenue growth (GAAP)
27.4
%
(1.6
)%
11.7
%
8.3
%
Acquisitions and divestitures
(12.4
)%
0.6
%
(4.1
)%
0.6
%
Currency translation effects
3.6
%
(0.6
)%
2.9
%
(2.3
)%
Organic growth (non-GAAP)
18.6
%
(1.6
)%
10.5
%
6.6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221027005200/en/
Media Contact: Whitney
Moorman – Reputation Management Leader
317-810-3241 Whitney.Moorman@allegion.com Analyst Contact:
Tom Martineau – Vice President, Investor Relations, and Treasurer
317-810-3759 Tom.Martineau@allegion.com
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