- Net sales down 1% versus 2021 driven by the Chubb divestiture;
organic sales up 10%
- GAAP EPS of $1.58 and adjusted
EPS of $0.54
- Operating margin up over 2,500 basis points due to the gain on
the sale of Chubb; adjusted operating margin expansion of 110 basis
points
- Price/cost neutral
- Net cash outflows from operating activities were $202 million and free cash flow usage was
$258 million
- Reaffirming full-year 2022 outlook for sales, adjusted
operating margin, adjusted EPS and free cash flow*
PALM BEACH GARDENS, Fla.,
April 28, 2022 /PRNewswire/ --
Carrier Global Corporation (NYSE:CARR), leading global provider of
healthy, safe, sustainable and intelligent building and cold chain
solutions, today reported financial results for the first quarter
of 2022 and reiterated its full year outlook.
"Demand for our innovative solutions was strong in the first
quarter as customers leverage our differentiated offerings to
improve indoor environments and achieve their sustainability
goals," said Carrier Chairman & CEO Dave Gitlin. "This drove double-digit organic
sales growth and strong adjusted operating margin expansion, both
of which exceeded our expectations. We are encouraged by this
momentum and confident that key secular trends and our
differentiated life-cycle solutions will drive continued strong
growth."
First Quarter 2022 Results
Carrier's first quarter sales of $4.7
billion were down 1% compared to the prior year and organic
sales grew 10% over the same period. Excluding Chubb sales from the
first quarter of 2021, sales were up about 12%. Sales strength
continued in the HVAC segment, with North
America residential, light commercial, and controls all up
over 20% in the quarter. Refrigeration sales were up 1% organically
despite the difficult comparison against a record quarter for the
Container business in 2021. Sales for the Fire and Security segment
were up 4% organically. Excluding Chubb sales from the first
quarter of 2021, Fire and Security segment sales were up 8%.
GAAP operating profit in the quarter of $1.7 billion was up over 200% from last year
driven by the gain on the sale of Chubb and adjusted operating
profit of $650 million was up 7%.
Better than expected price realization helped mitigate
continued supply chain challenges related to cost and availability
headwinds. Price/cost was neutral in the first
quarter.
Net income was $1.4 billion and
adjusted net income was $473 million.
GAAP EPS was $1.58 and adjusted EPS
was $0.54. Net cash flows used in
operating activities were $202
million and capital expenditures were $56 million, resulting in a free cash outflow of
$258 million. The outflow was driven
by working capital increases including the normal seasonal
inventory build and the impact of supply chain challenges. During
the first-quarter, Carrier repurchased $741
million of its common stock, repurchased $1.15 billion of its long-term notes and received
$2.9 billion in cash proceeds from
the divestiture of Chubb.
Full-Year 2022 Outlook**
Carrier reaffirmed the following outlook for 2022, excluding the
pending Toshiba acquisition:
|
2022
Outlook
|
Sales
|
~$20B
Organic* up
HSD
FX
~(1%)
Acquisitions
~1%
Divestitures
~(10%)
|
Adjusted Operating
Margin*
|
Up ~75 bps
Y/Y
|
Adjusted
EPS*
|
$2.20 -
$2.30
|
Free Cash
Flow*
|
~$1.65B
Includes ~$200M in
tax payments
on Chubb
gain
|
*Note: When the company provides expectations for organic
sales, adjusted operating profit, adjusted operating margin,
adjusted 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 generally is not available
without unreasonable effort. See "Use and Definitions of Non-GAAP
Financial Measures" below for additional information.
**As of April 28, 2022
Conference Call
Carrier will host a webcast of its
earnings conference call today, Thursday,
April 28, 2022, at 8:30 a.m.
ET. To access the webcast, visit the Events &
Presentations section of the Carrier Investor Relations site at
ir.carrier.com/news-and-events/events-and-presentations or to
listen to the earnings call by phone, dial (877) 742-9091.
Cautionary Statement
This communication contains
statements which, to the extent they are not statements of
historical or present fact, constitute "forward-looking statements"
under the securities laws. These forward-looking statements are
intended to provide management's current expectations or plans for
Carrier's future operating and financial performance, based on
assumptions currently believed to be valid. Forward-looking
statements can be identified by the use of words such as "believe,"
"expect," "expectations," "plans," "strategy," "prospects,"
"estimate," "project," "target," "anticipate," "will," "should,"
"see," "guidance," "outlook," "confident," "scenario" and other
words of similar meaning in connection with a discussion of future
operating or financial performance or the separation from United
Technologies Corporation (the "Separation"), since renamed Raytheon
Technologies Corporation. Forward-looking statements may include,
among other things, statements relating to future sales, earnings,
cash flow, results of operations, uses of cash, share repurchases,
tax rates and other measures of financial performance or potential
future plans, strategies or transactions of Carrier, the estimated
costs associated with the Separation, Carrier's plans with respect
to its indebtedness and other statements that are not historical
facts. All forward-looking statements involve risks, uncertainties
and other factors that may cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. For additional information on identifying factors that
may cause actual results to vary materially from those stated in
forward-looking statements, see Carrier's reports on Forms 10-K,
10-Q and 8-K filed with or furnished to the U.S. Securities and
Exchange Commission from time to time. Any forward-looking
statement speaks only as of the date on which it is made, and
Carrier assumes no obligation to update or revise such statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
CARR-IR
Contact:
|
Media
Inquiries
|
|
Danielle
Canzanella
|
|
561-365-1101
|
|
Danielle.Canzanella@Carrier.com
|
|
|
|
Investor
Relations
|
|
Sam
Pearlstein
|
|
561-365-2251
|
|
Sam.Pearlstein@Carrier.com
|
SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND
DEFINITIONS
Following are tables that present selected financial data of
Carrier Global Corporation ("Carrier"). Also included are
reconciliations of non-GAAP measures to their most comparable GAAP
measures.
Use and Definitions of Non-GAAP Financial
Measures
Carrier reports its financial results in accordance
with accounting principles generally accepted in the United States ("GAAP").
We supplement the reporting of our financial information
determined under GAAP with certain non-GAAP financial
information. The non-GAAP information presented provides
investors with additional useful information, but should not be
considered in isolation or as substitutes for the related GAAP
measures. Moreover, other companies may define non-GAAP
measures differently, which limits the usefulness of these measures
for comparisons with such other companies. We encourage investors
to review our financial statements and publicly filed reports in
their entirety and not to rely on any single financial measure. A
reconciliation of the non-GAAP measures to the corresponding
amounts prepared in accordance with GAAP appears in the tables
attached to this release. The tables provide additional information
as to the items and amounts that have been excluded from the
adjusted measures.
Organic sales, adjusted operating profit, adjusted operating
margin, incremental margins / earnings conversion, earnings before
interest, taxes and depreciation and amortization ("EBITDA"),
adjusted EBITDA, adjusted net income, adjusted earnings per share
("EPS"), the adjusted effective tax rate, and net debt are non-GAAP
financial measures.
Organic sales represents consolidated net sales (a GAAP
measure), excluding the impact of foreign currency translation,
acquisitions and divestitures completed in the preceding twelve
months and other significant items of a nonoperational nature
(hereinafter referred to as "other significant items"). Adjusted
operating profit represents operating profit (a GAAP measure),
excluding restructuring costs and other significant items.
Adjusted operating margin represents adjusted operating profit as a
percentage of net sales (a GAAP measure). Incremental margins
/ earnings conversion represents the year-over-year change in
adjusted operating profit divided by the year-over-year change in
net sales. EBITDA represents net income attributable to
common shareholders (a GAAP measure), adjusted for interest income
and expense, income tax expense, and depreciation and amortization.
Adjusted EBITDA represents EBITDA, as calculated above, excluding
non-service pension benefit, non-controlling interest in
subsidiaries' earnings from operations, restructuring costs and
other significant items. Adjusted net income represents net
income attributable to common shareowners (a GAAP measure),
excluding restructuring costs and other significant items.
Adjusted EPS represents diluted earnings per share (a GAAP
measure), excluding restructuring costs and other significant
items. The adjusted effective tax rate represents the effective tax
rate (a GAAP measure), excluding restructuring costs and other
significant items. Net debt represents long-term debt (a GAAP
measure) less cash and cash equivalents. For the business
segments, when applicable, adjustments of operating profit and
operating margins represent operating profit, excluding
restructuring and other significant items.
Free cash flow is a non-GAAP financial measure that represents
net cash flows provided by operating activities (a GAAP measure)
less capital expenditures. Management believes free cash flow
is a useful measure of liquidity and an additional basis for
assessing Carrier's ability to fund its activities, including the
financing of acquisitions, debt service, repurchases of Carrier's
common stock and distribution of earnings to shareowners.
When we provide our expectations for organic sales, adjusted
operating profit, adjusted operating margin, adjusted effective tax
rate, incremental margins/earnings conversion, adjusted 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, operating profit, operating
margin, effective tax rate, incremental operating margin, 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, the ultimate outcome of
pending litigation, fluctuations in foreign currency exchange
rates, the impact and timing of potential acquisitions and
divestitures, future restructuring 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.
Carrier Global
Corporation
Condensed
Consolidated Statement of Operations
|
|
|
(Unaudited)
|
|
For the Three Months
Ended
March 31,
|
(In millions,
except per share amounts)
|
2022
|
|
2021
|
Net
sales:
|
|
|
|
Product
sales
|
$
4,170
|
|
$
3,864
|
Service
sales
|
484
|
|
835
|
Total Net
sales
|
4,654
|
|
4,699
|
Costs and
expenses
|
|
|
|
Cost of products
sold
|
(2,998)
|
|
(2,724)
|
Cost of services
sold
|
(363)
|
|
(581)
|
Research and
development
|
(125)
|
|
(121)
|
Selling, general and
administrative
|
(601)
|
|
(743)
|
Total Costs and
expenses
|
(4,087)
|
|
(4,169)
|
Equity method
investment net earnings
|
58
|
|
38
|
Other income (expense),
net
|
1,112
|
|
3
|
Operating
profit
|
1,737
|
|
571
|
Non-service pension
(expense) benefit
|
(1)
|
|
18
|
Interest (expense)
income, net
|
(48)
|
|
(93)
|
Income from
operations before income taxes
|
1,688
|
|
496
|
Income tax (expense)
benefit
|
(301)
|
|
(104)
|
Net income from
operations
|
1,387
|
|
392
|
Less: Non-controlling
interest in subsidiaries' earnings from operations
|
8
|
|
8
|
Net income
attributable to common shareowners
|
$
1,379
|
|
$
384
|
|
|
|
|
Earnings per
share
|
|
|
|
Basic
|
$
1.62
|
|
$
0.44
|
Diluted
|
$
1.58
|
|
$
0.43
|
Weighted average
number of shares outstanding
|
|
|
|
Basic
|
853.3
|
|
869.3
|
Diluted
|
874.1
|
|
889.8
|
Carrier Global
Corporation
Condensed
Consolidated Balance Sheet
|
|
|
|
(Unaudited)
|
(In
millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
3,604
|
|
$
2,987
|
Accounts receivable,
net
|
|
2,599
|
|
2,403
|
Contract assets,
current
|
|
655
|
|
503
|
Inventories,
net
|
|
2,358
|
|
1,970
|
Assets held for
sale
|
|
—
|
|
3,168
|
Other assets,
current
|
|
386
|
|
376
|
Total current
assets
|
|
9,602
|
|
11,407
|
Future income tax
benefits
|
|
517
|
|
563
|
Fixed assets,
net
|
|
1,825
|
|
1,826
|
Operating lease
right-of-use assets
|
|
596
|
|
640
|
Intangible assets,
net
|
|
488
|
|
509
|
Goodwill
|
|
9,288
|
|
9,349
|
Pension and
post-retirement assets
|
|
37
|
|
43
|
Equity method
investments
|
|
1,638
|
|
1,593
|
Other assets
|
|
202
|
|
242
|
Total
Assets
|
|
$
24,193
|
|
$
26,172
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
2,519
|
|
$
2,334
|
Accrued
liabilities
|
|
2,330
|
|
2,561
|
Contract liabilities,
current
|
|
426
|
|
415
|
Liabilities held for
sale
|
|
—
|
|
1,134
|
Current portion of
long-term debt
|
|
256
|
|
183
|
Total current
liabilities
|
|
5,531
|
|
6,627
|
Long-term
debt
|
|
8,305
|
|
9,513
|
Future pension and
post-retirement obligations
|
|
376
|
|
380
|
Future income tax
obligations
|
|
366
|
|
354
|
Operating lease
liabilities
|
|
491
|
|
527
|
Other long-term
liabilities
|
|
1,694
|
|
1,677
|
Total
Liabilities
|
|
16,763
|
|
19,078
|
|
|
|
|
|
Equity
|
|
|
|
|
Common stock
|
|
9
|
|
9
|
Treasury
stock
|
|
(1,270)
|
|
(529)
|
Additional paid-in
capital
|
|
5,415
|
|
5,411
|
Retained
earnings
|
|
4,244
|
|
2,865
|
Accumulated other
comprehensive loss
|
|
(1,297)
|
|
(989)
|
Non-controlling
interest
|
|
329
|
|
327
|
Total
Equity
|
|
7,430
|
|
7,094
|
Total Liabilities
and Equity
|
|
$
24,193
|
|
$
26,172
|
Carrier Global
Corporation
Condensed
Consolidated Statement of Cash Flows
|
|
|
(Unaudited)
|
|
|
For the Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
Net income from
operations
|
|
$
1,387
|
|
$
392
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
79
|
|
83
|
Deferred income tax
provision
|
|
48
|
|
(2)
|
Stock-based
compensation costs
|
|
21
|
|
19
|
Equity method
investment net earnings
|
|
(58)
|
|
(38)
|
Distributions from
equity method investments
|
|
11
|
|
12
|
(Gain) loss on
extinguishment of debt
|
|
(36)
|
|
—
|
(Gain) loss on sale of
investments
|
|
(1,112)
|
|
—
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts receivable,
net
|
|
(207)
|
|
(83)
|
Contract assets,
current
|
|
(154)
|
|
(44)
|
Inventories,
net
|
|
(390)
|
|
(248)
|
Other assets,
current
|
|
(15)
|
|
(23)
|
Accounts payable and
accrued liabilities
|
|
132
|
|
151
|
Contract liabilities,
current
|
|
13
|
|
39
|
Defined benefit plan
contributions
|
|
(4)
|
|
(24)
|
Other operating
activities, net
|
|
83
|
|
(50)
|
Net cash flows provided
by (used in) operating activities
|
|
(202)
|
|
184
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
|
(56)
|
|
(53)
|
Investments in
businesses, net of cash acquired
|
|
(9)
|
|
(6)
|
Disposition of
businesses
|
|
2,935
|
|
—
|
Settlement of
derivative contracts, net
|
|
(32)
|
|
8
|
Other investing
activities, net
|
|
(18)
|
|
2
|
Net cash flows provided
by (used in) investing activities
|
|
2,820
|
|
(49)
|
Financing
Activities
|
|
|
|
|
Increase (decrease) in
short-term borrowings, net
|
|
(33)
|
|
28
|
Issuance of long-term
debt
|
|
14
|
|
51
|
Repayment of long-term
debt
|
|
(1,123)
|
|
(570)
|
Repurchases of common
stock
|
|
(734)
|
|
(36)
|
Dividends paid on
common stock
|
|
(129)
|
|
(104)
|
Dividends paid to
non-controlling interest
|
|
—
|
|
(5)
|
Other financing
activities, net
|
|
(15)
|
|
(7)
|
Net cash flows provided
by (used in) financing activities
|
|
(2,020)
|
|
(643)
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(1)
|
|
(9)
|
Net increase (decrease)
in cash and cash equivalents and restricted cash
|
|
597
|
|
(517)
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
3,025
|
|
3,120
|
Cash, cash equivalents
and restricted cash, end of period
|
|
3,622
|
|
2,603
|
Less: restricted
cash
|
|
18
|
|
4
|
Cash and cash
equivalents, end of period
|
|
$
3,604
|
|
$
2,599
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP)
Operating
Profit
|
|
|
(Unaudited)
|
|
For the Three Months
Ended March 31, 2022
|
(In
millions)
|
HVAC
|
|
Refrigeration
|
|
Fire &
Security
|
|
Eliminations and
Other
|
|
General Corporate
Expenses
|
|
Carrier
|
Net
sales
|
$
2,970
|
|
$
976
|
|
$
818
|
|
$
(110)
|
|
$
—
|
|
$
4,654
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
$
470
|
|
$
107
|
|
$
1,218
|
|
$
(24)
|
|
$
(34)
|
|
$
1,737
|
Reported operating
margin
|
15.8
%
|
|
11.0
%
|
|
148.9
%
|
|
|
|
|
|
37.3
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to segment
operating profit:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
$
4
|
|
$
—
|
|
$
6
|
|
$
—
|
|
$
—
|
|
$
10
|
Chubb gain
|
—
|
|
—
|
|
(1,112)
|
|
—
|
|
—
|
|
(1,112)
|
Acquisition and other
related costs
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
6
|
Russia/Ukraine asset
impairment
|
—
|
|
5
|
|
4
|
|
—
|
|
—
|
|
9
|
Total adjustments to
operating profit
|
$
4
|
|
$
5
|
|
$
(1,102)
|
|
$
—
|
|
$
6
|
|
$
(1,087)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit
|
$
474
|
|
$
112
|
|
$
116
|
|
$
(24)
|
|
$
(28)
|
|
$
650
|
Adjusted operating
margin
|
16.0
%
|
|
11.5
%
|
|
14.2
%
|
|
|
|
|
|
14.0
%
|
|
(Unaudited)
|
|
For the Three Months
Ended March 31, 2021
|
(In
millions)
|
HVAC
|
|
Refrigeration
|
|
Fire &
Security
|
|
Eliminations and
Other
|
|
General Corporate
Expenses
|
|
Carrier
|
Net
sales
|
$
2,486
|
|
$
1,005
|
|
$
1,304
|
|
$
(96)
|
|
$
—
|
|
$
4,699
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
$
365
|
|
$
127
|
|
$
150
|
|
$
(40)
|
|
$
(31)
|
|
$
571
|
Reported operating
margin
|
14.7
%
|
|
12.6
%
|
|
11.5
%
|
|
|
|
|
|
12.2
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to segment
operating profit:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
$
4
|
|
$
2
|
|
$
11
|
|
$
—
|
|
$
1
|
|
$
18
|
Chubb transaction
costs
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
|
3
|
Separation
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
16
|
|
16
|
Total adjustments to
operating profit
|
$
4
|
|
$
2
|
|
$
14
|
|
$
—
|
|
$
17
|
|
$
37
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit
|
$
369
|
|
$
129
|
|
$
164
|
|
$
(40)
|
|
$
(14)
|
|
$
608
|
Adjusted operating
margin
|
14.8
%
|
|
12.8
%
|
|
12.6
%
|
|
|
|
|
|
12.9
%
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Income, Earnings
Per Share, and Effective Tax Rate
|
|
|
(Unaudited)
|
|
For the Three Months
Ended March 31, 2022
|
(In millions,
except per share amounts)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net sales
|
$
4,654
|
|
$
—
|
|
$
4,654
|
|
|
|
|
|
|
Operating
profit
|
$
1,737
|
|
(1,087)
|
a
|
$
650
|
Operating
margin
|
37.3
%
|
|
|
|
14.0
%
|
|
|
|
|
|
|
Income from operations
before income taxes
|
$
1,688
|
|
(1,115)
|
a,b
|
$
573
|
Income tax
expense
|
$
(301)
|
|
209
|
c
|
$
(92)
|
Income tax
rate
|
17.8
%
|
|
|
|
16.0
%
|
|
|
|
|
|
|
Net income
attributable to common shareowners
|
$
1,379
|
|
$
(906)
|
|
$
473
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
10
|
a
|
|
Chubb (gain)
loss
|
|
|
(1,112)
|
a
|
|
Acquisition and
other
|
|
|
6
|
a
|
|
Russia/Ukraine asset
impairment
|
|
|
9
|
a
|
|
Debt extinguishment
(gain), net (1)
|
|
|
(28)
|
b
|
|
Total
adjustments
|
|
|
$
(1,115)
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
209
|
|
|
Total tax
adjustments
|
|
|
$
209
|
c
|
|
|
|
|
|
|
|
Shares outstanding -
Diluted
|
874.1
|
|
|
|
874.1
|
|
|
|
|
|
|
Earnings per share -
Diluted
|
$
1.58
|
|
|
|
$
0.54
|
|
|
(1)
|
The Company repurchased
approximately $1.15 billion of aggregate principal senior notes on
March 30, 2022 and recognized a net gain of $33 million and
wrote-off $5 million of unamortized deferred financing costs
in Interest (expense) income, net on the accompanying
Unaudited Condensed Consolidated Statement of
Operations.
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Income, Earnings
Per Share, and Effective Tax Rate
|
|
|
(Unaudited)
|
|
For the Three Months
Ended March 31, 2021
|
(In millions,
except per share amounts)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net sales
|
$
4,699
|
|
$
—
|
|
$
4,699
|
|
|
|
|
|
|
Operating
profit
|
$
571
|
|
37
|
a
|
$
608
|
Operating
margin
|
12.2
%
|
|
|
|
12.9
%
|
|
|
|
|
|
|
Income from operations
before income taxes
|
$
496
|
|
56
|
a,b
|
$
552
|
Income tax
expense
|
$
(104)
|
|
(13)
|
c
|
$
(117)
|
Income tax
rate
|
21.0
%
|
|
|
|
21.1
%
|
|
|
|
|
|
|
Net income
attributable to common shareowners
|
$
384
|
|
$
43
|
|
$
427
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
18
|
a
|
|
Separation
costs
|
|
|
16
|
a
|
|
Acquisition and other
related costs
|
|
|
3
|
a
|
|
Debt issuance
costs
|
|
|
19
|
b
|
|
Total
adjustments
|
|
|
$
56
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
(13)
|
|
|
Total tax
adjustments
|
|
|
$
(13)
|
c
|
|
|
|
|
|
|
|
Shares outstanding -
Diluted
|
889.8
|
|
|
|
889.8
|
|
|
|
|
|
|
Earnings per share -
Diluted
|
$
0.43
|
|
|
|
$
0.48
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
Components of
Changes in Net Sales
|
|
For the Three Months
Ended March 31, 2022 Compared with the Three Months Ended March 31,
2021
|
|
(Unaudited)
|
|
Factors Contributing
to Total % change in Net Sales
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
HVAC
|
18 %
|
|
(2) %
|
|
3 %
|
|
— %
|
|
19 %
|
Refrigeration
|
1 %
|
|
(4) %
|
|
— %
|
|
— %
|
|
(3) %
|
Fire &
Security
|
4 %
|
|
(1) %
|
|
(40) %
|
|
— %
|
|
(37) %
|
Consolidated
|
10
%
|
|
(1)
%
|
|
(10)
%
|
|
— %
|
|
(1)
%
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
Net Sales Excluding
Impact of Chubb
|
|
|
(Unaudited)
|
|
For the Three
Months Ended
March 31,
2021
|
|
Carrier
|
|
Fire and
Security
|
Net Sales:
|
|
|
|
Reported
|
$
4,699
|
|
$
1,304
|
Chubb
|
(548)
|
|
(548)
|
Net sales
excluding impact of Chubb
|
$
4,151
|
|
$
756
|
|
|
|
|
Percentage increase
in Net sales excluding impact of Chubb
|
12
%
|
|
8 %
|
Free Cash Flow
Reconciliation
|
|
|
|
(Unaudited)
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY
|
|
Q1
|
(In
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
Net cash flows provided
by (used in) operating activities
|
|
$
184
|
|
$
561
|
|
$
579
|
|
$
913
|
|
$
2,237
|
|
$
(202)
|
Less: Capital
expenditures
|
|
53
|
|
79
|
|
74
|
|
138
|
|
344
|
|
56
|
Free cash
flow
|
|
$
131
|
|
$
482
|
|
$
505
|
|
$
775
|
|
$
1,893
|
|
$
(258)
|
Net Debt
Reconciliation
|
|
|
|
(Unaudited)
|
(In
millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
Long-term
debt
|
|
$
8,305
|
|
$
9,513
|
Current portion of
long-term debt
|
|
256
|
|
183
|
Less: Cash and cash
equivalents
|
|
3,604
|
|
2,987
|
Net
debt
|
|
$
4,957
|
|
$
6,709
|
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SOURCE Carrier Global Corporation