* Results Were Negatively Impacted by Net Charges of $0.06 Per
Share for Special Items PEMBROKE, Bermuda, Nov. 16 /PRNewswire/ --
Tyco International Ltd. (NYSE:TYC)(BSX:TYC) today reported diluted
GAAP earnings per share from continuing operations (EPS) of $0.42
for the fourth fiscal quarter of 2005, compared with $0.27 in the
fourth fiscal quarter of 2004. Last year's results included net
charges of $0.18 per share related to the early retirement of debt,
as well as restructuring and divestiture charges. Revenue in the
fourth quarter totaled $10.0 billion, with organic revenue growth
of 2 percent. Cash flow from operating activities was $2.1 billion,
and the company generated free cash flow of $1.7 billion in the
quarter. Beginning in the fourth quarter, the Plastics &
Adhesives segment is classified as a discontinued operation and
results of this segment are reported accordingly. Plastics &
Adhesives revenue was $465 million, and operating income was $32
million. In the current quarter, EPS from continuing operations
included net charges of $0.06 per share for special items as
follows: * Charge for a previously disclosed legal matter in
Healthcare $0.08 * Charge for early retirement of convertible debt
securities $0.05 * Charge related to divestitures $0.01 * Income
from Plastics & Adhesives segment, now classified as a
discontinued operation $0.02 * Income related to the resolution of
certain legacy matters ($0.10) ------- Total net charges from
special items $0.06 The company's fourth quarter GAAP tax rate was
approximately 1 percent, and the fourth quarter tax rate adjusted
for special items was 21 percent. The company's full-year GAAP tax
rate was 23.5 percent, and the full-year tax rate adjusted for
special items was 24.8 percent. During the quarter, the company
resolved certain legacy matters which resulted in $0.10 per share
of income. Included in these legacy matters were $0.07 of income
related to the resolution of certain tax matters, $0.05 of income
related to a restitution award by the court for losses suffered as
a result of misconduct by certain former executives of the company,
and a $0.02 charge for certain potential liabilities relating to
other former executives' employment. For the full year, Tyco had
revenue of $39.7 billion, with net income of $3.0 billion and
organic revenue growth of 3 percent. Cash flow from operating
activities totaled $6.1 billion and the company generated free cash
flow including Plastics & Adhesives of $4.7 billion. "During
2005, Tyco made important progress in investing for growth,
building balance sheet strength and returning capital to our
shareholders," said Chairman and Chief Executive Officer Ed Breen.
"Tyco is well-positioned for further progress in 2006." Organic
revenue growth, free cash flow, net debt and tax rate adjusted for
special items are non-GAAP financial measures and are described
below. For a reconciliation of these non-GAAP measures, see the
attached tables. To further assist in understanding the special
items included in Tyco's GAAP results for fiscal 2005, the company
has provided summary schedules attached to this document. A set of
detailed schedules can be found at http://www.tyco.com/ on the
Investor Relations portion of Tyco's website. HIGHLIGHTS * Equity
Retirement Activities -- In the fourth quarter, the company used
approximately $450 million of cash to repurchase convertible debt
securities and $300 million to repurchase shares in the open
market. In the two weeks following the quarter, the company used
approximately $200 million of cash to repurchase additional shares.
In total, these actions reduced Tyco's diluted shares outstanding
by approximately 34 million shares. Since the convertible debt and
share repurchases began in the fourth quarter of 2004, the company
has used $4.2 billion of cash and reduced diluted shares
outstanding by 130 million -- representing 6 percent of diluted
shares outstanding. * Strengthening the Balance Sheet -- For the
full year, total debt declined $4.0 billion to $12.6 billion. The
company's total debt-to- capital ratio improved to 28 percent, from
35 percent at the close of 2004. * Investing for Growth --
Healthcare acquired Vivant Medical Inc., a leading developer of
microwave ablation technology, and also acquired a controlling
interest in Floreane Medical Implants, a manufacturer of surgical
mesh products. Both of these transactions strengthen Healthcare's
surgical product portfolio. * Contract Win -- Tyco Electronics'
M/A-COM business signed a contract to design, deploy, operate and
maintain New York's Statewide Wireless Network, one of the largest
statewide public safety communications projects to be awarded in
the United States. SEGMENT RESULTS The financial results presented
in the tables below are in accordance with GAAP. All dollar amounts
are pretax and stated in millions. All comparisons are to the
quarter ended Sept. 30, 2004, unless otherwise indicated. Fire
& Security Sept. 30, Sept. 30, $ Change % Change 2005 2004
Revenue $2,894 $2,894 -- -- Operating Income $321 $159 $162 102%
Operating Margin 11.1% 5.5% Organic revenue growth was 1.4 percent.
The Worldwide Fire business had 5 percent organic revenue growth,
while Worldwide Security excluding Continental Europe was
essentially flat. Operating income increased by $162 million, due
to lower restructuring and divestiture charges. While operating
expenses were essentially flat, significant investments in sales
and marketing were offset by further reductions in general and
administrative costs. Operating income in the quarter included a $6
million charge related to divestitures, compared to $170 million of
restructuring, impairment and divestiture charges in the fourth
quarter of 2004. Electronics Sept. 30, Sept. 30, $ Change % Change
2005 2004 Revenue $3,064 $3,080 ($16) (1%) Operating Income $430
$481 ($51) (11%) Operating Margin 14.0% 15.6% Organic revenue
growth was 3 percent. Organic revenue growth of 5 percent in
connector and cable assemblies was driven by aerospace,
communication service providers, communications equipment,
automotive, computer, consumer electronics, and energy markets.
This growth was partially offset by a significant revenue decline
in the Printed Circuit Board business. Operating income decreased
$51 million and the operating margin was 14 percent. The operating
margin was adversely impacted by 90 basis points due to continued
cost escalation in metals and other commodities, 30 basis points
due to a customer bankruptcy filing, and the remainder primarily
due to North American and European fixed cost under-absorption.
Healthcare Sept. 30, Sept. 30, $ Change % Change 2005 2004 Revenue
$2,415 $2,387 $28 1% Operating Income $338 $631 ($293) (46%)
Operating Margin 14.0% 26.4% Organic revenue growth was 1 percent,
driven by strong growth in the International, Surgical and
Pharmaceutical businesses, primarily offset by a significant
revenue decline in the Retail business. Operating income decreased
$293 million primarily due to a $277 million charge for a
previously disclosed legal matter. Profit improvement in the
International, Surgical and Pharmaceutical businesses was offset by
a $43 million profit decline in the Retail business. Engineered
Products & Services Sept. 30, Sept. 30, $ Change % Change 2005
2004 Revenue $1,657 $1,621 $36 2% Operating Income $157 $158 ($1)
(1%) Operating Margin 9.5% 9.7% Revenue increased $36 million, or 2
percent, while organic revenue growth was 1 percent. Three of the
four business units posted combined 7 percent organic revenue
growth, which was offset by an approximate $80 million revenue
decline at Infrastructure Services as a result of a strategic
decision to be more selective in bidding for new projects. In
Electrical & Metal Products, steel price declines were offset
by volume growth -- resulting in modest organic revenue growth.
Operating income decreased $1 million, with profit improvement at
Flow Control and Fire & Building products offset by a $58
million decline at Electrical & Metal Products due to higher
steel raw material costs and reduced steel selling prices.
Prior-year fourth quarter operating income included $45 million in
restructuring, impairment and divestiture charges. OUTLOOK In
fiscal 2006, the company expects EPS from continuing operations
excluding special items to increase by approximately 10 percent
over full-year 2005 results. The company further expects that 2006
free cash flow, excluding the cash impact of previously disclosed
legal items, will exceed net income excluding special items. In the
first quarter of fiscal 2006, Tyco will adopt Statement of
Financial Accounting Standards (SFAS) No. 123R, which requires
compensation costs related to share-based payments to be recognized
in the financial statements. This is expected to negatively impact
earnings by $0.06 to $0.07 per share for the full year. The
Plastics & Adhesives segment is reported as a discontinued
operation and is excluded from 2006 guidance. For the first
quarter, the company expects to achieve EPS from continuing
operations excluding special items of $0.40 to $0.42. This guidance
includes approximately $0.02 per share charge from the adoption of
SFAS No. 123R discussed above. EPS from continuing operations
excluding special items is a non-GAAP financial measure and is
described below. ABOUT TYCO INTERNATIONAL Tyco International Ltd.
is a global, diversified company that provides vital products and
services to customers in four business segments: Fire &
Security, Electronics, Healthcare, and Engineered Products &
Services. With 2005 revenue of $40 billion, Tyco employs
approximately 250,000 people worldwide. More information on Tyco
can be found at http://www.tyco.com/. CONFERENCE CALL AND WEBCAST
The company will hold a conference call for investors today
beginning at 8:30 a.m. ET. The call can be accessed in two ways: *
At Tyco's website: http://investors.tyco.com/. A replay of the call
will be available through Nov. 30, 2005 at the same website. * By
telephone: For both "listen-only" participants and those
participants who wish to take part in the question-and-answer
portion of the call, the telephone dial-in number in the United
States is (800) 700-7860. The telephone dial-in number for
participants outside the United States is (612) 332-0637. An audio
replay of the conference call will be available beginning at 12:00
p.m. on Nov. 16, 2005 and ending at 11:59 p.m. on Nov. 23, 2005.
The dial-in number for participants in the United States is (800)
475-6701. For participants outside the United States, the replay
dial-in number is (320) 365-3844. The replay access code for all
callers is 796502. NON-GAAP MEASURES "EPS from continuing
operations excluding special items," "free cash flow" (FCF),
"organic revenue growth" and "tax rate adjusted for special items"
are non-GAAP measures and should not be considered replacements for
GAAP results. The company has forecast its EPS from continuing
operations results excluding special items related to divestitures,
early retirement of debt, and other income or charges that may mask
the underlying results and trends and make it difficult to give
investors perspective on underlying business results. Because the
company cannot predict the amount and timing of such items and the
associated charges or gains that will be taken, it is difficult to
include the impact of those items in the forecast. The company has
forecast its cash flow results excluding any voluntary pension
contributions because it has not yet made a determination about the
amount and timing of any future such contributions. In addition,
the company's forecast excludes the impact of special items because
the company cannot predict the amount and timing of such items. The
difference between cash flows from operating activities (the most
comparable GAAP measure) and FCF (the non-GAAP measure) consists
mainly of significant cash outflows that the company believes are
useful to identify. FCF permits management and investors to gain
insight into the number that management employs to measure cash
that is free from any significant existing obligation. It is also a
significant component in the company's incentive compensation
plans. The difference reflects the impact from: * the sale of
accounts receivable programs, * net capital expenditures, *
acquisition of customer accounts (ADT dealer program), * cash paid
for purchase accounting and holdback/earn-out liabilities and, *
voluntary pension contributions. See the accompanying tables to
this press release for a cash flow statement presented in
accordance with GAAP and a reconciliation presenting the components
of FCF. The impact from the sale of accounts receivable programs
and voluntary pension contributions is added or subtracted from the
GAAP measure because this activity is driven by economic financing
decisions rather than operating activity. Capital expenditures and
the ADT dealer program are subtracted because they represent
long-term commitments. Cash paid for purchase accounting and
holdback/earn-out liabilities is subtracted from Cash Flow from
Operating Activities because these cash outflows are not available
for general corporate uses. The limitation associated with using
FCF is that it subtracts cash items that are ultimately within
management's and the Board of Directors' discretion to direct and
that therefore may imply that there is less or more cash that is
available for the company's programs than the most comparable GAAP
measure. This limitation is best addressed by using FCF in
combination with the GAAP cash flow numbers. FCF as presented
herein may not be comparable to similarly titled measures reported
by other companies. The measure should be used in conjunction with
other GAAP financial measures. Investors are urged to read the
company's financial statements as filed with the Securities and
Exchange Commission, as well as the accompanying tables to this
press release that show all the elements of the GAAP measures of
Cash Flows from Operating Activities, Cash Flows from Investing
Activities, Cash Flows from Financing Activities and a
reconciliation of the company's total cash and cash equivalents for
the period. "Organic revenue growth" is a useful measure used by
the company to measure the underlying results and trends in the
business. The difference between reported net revenue growth (the
most comparable GAAP measure) and organic revenue growth (the
non-GAAP measure) consists of the impact from foreign currency,
acquisitions and divestitures, and other changes that do not
reflect the underlying results and trends (for example, revenue
reclassifications and changes to the fiscal year). Organic revenue
growth is a useful measure of the company's performance because it
excludes items that: i) are not completely under management's
control, such as the impact of foreign currency exchange; or ii) do
not reflect the underlying growth of the company, such as
acquisition and divestiture activity, or revenue reclassification.
It is also a component of the company's compensation programs. The
limitation of this measure is that it excludes items that have an
impact on the company's revenue. This limitation is best addressed
by using organic revenue growth in combination with the GAAP
numbers. See the accompanying tables to this press release for the
reconciliation presenting the components of organic revenue growth.
Net debt is a non-GAAP measure and should not be considered a
replacement for GAAP results. Net debt is total debt (the most
comparable GAAP measure) minus cash and cash equivalents.
Management believes net debt is an important measure of liquidity,
which it uses as a tool to measure the company's ability to meet
its future debt obligations. Cash and cash equivalents are
subtracted from the GAAP measure because they could be used to
reduce our debt obligations. See the accompanying table to this
press release for the reconciliation of net debt. The limitation
associated with using net debt is that it subtracts cash items and
therefore may imply that there is less company debt than the most
comparable GAAP measure indicates and may include certain cash
items that are not readily available for repaying debt. This
limitation is best addressed by using net debt in combination with
total debt because net debt may be significantly lower than the
GAAP measure. Net debt should be used in conjunction with other
GAAP financial measures. "Tax rate adjusted for special items" is a
measure used by the company to determine and analyze the underlying
results and trends in the business. The difference between the
reported tax rate (the most comparable GAAP measure) and the tax
rate adjusted for special items (the non-GAAP measure) consists of
the tax impact of special items related to divestitures, early
retirement of debt, and other pretax income or charges that may
mask the underlying results and trends and make it difficult to
give management and investors perspective on underlying business
results. The tax rate adjusted for special items may also exclude
large legacy tax settlements with U.S. and non-U.S. taxing
authorities that, if included in the rate, would mask the after-tax
result of the current-period operations. "Tax rate adjusted for
special items" is a useful measure in evaluating the company's
performance because it excludes items that do not reflect the
underlying operations of the company, such as settlements of legacy
tax matters with taxing authorities and the attendant tax impacts
of special items for which management has adjusted in "EPS from
continuing operations excluding special items" as noted above. The
limitation of this measure is that it excludes items that have an
impact on the company's GAAP tax rate. This limitation is best
addressed by using the tax rate adjusted for special items in
combination with the GAAP numbers. See the accompanying tables to
this press release for the reconciliation presenting the components
of the tax rate adjusted for special items. FORWARD-LOOKING
STATEMENTS This release may contain certain "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations and are subject to
risks, uncertainty and changes in circumstances, which may cause
actual results, performance or achievements to differ materially
from anticipated results, performance or achievements. All
statements contained herein that are not clearly historical in
nature are forward-looking and the words "anticipate," "believe,"
"expect," "estimate," "plan," and similar expressions are generally
intended to identify forward-looking statements. The
forward-looking statements in this release include statements
addressing the following subjects: future financial condition and
operating results. Economic, business, competitive and/or
regulatory factors affecting Tyco's businesses are examples of
factors, among others, that could cause actual results to differ
materially from those described in the forward-looking statements.
Tyco is under no obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements
whether as a result of new information, future events or otherwise.
More detailed information about these and other factors is set
forth in Tyco's Annual Report on Form 10-K for the fiscal year
ended Sept. 30, 2004, and Quarterly Report on Form 10-Q for the
quarterly period ended July 1, 2005. TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except
per share data) (Unaudited) Quarter Ended Twelve Months Ended Sept.
30 Sept. 30 Sept. 30 Sept. 30 2005 2004 2005 2004 Net revenue
$10,030 $9,989 $39,727 $38,411 Cost of sales 6,647 6,412 25,959
24,660 Selling, general and administrative expenses 2,326 2,072
8,231 8,141 Restructuring and long-lived asset impairment charges,
net 3 190 16 258 Losses (gains) and impairments on divestitures,
net 10 33 (274) 116 Operating income 1,044 1,282 5,795 5,236
Interest income 31 36 123 91 Interest expense (193) (247) (815)
(956) Other income (expense), net 4 (248) (911) (286) Income from
continuing operations before income taxes and minority interest 886
823 4,192 4,085 Income taxes (7) (244) (984) (1,123) Minority
interest (3) (3) (9) (14) Income from continuing operations 876 576
3,199 2,948 Income (loss) from discontinued operations, net of
income taxes 41 (122) (188) (69) Income before cumulative effect of
accounting change 917 454 3,011 2,879 Cumulative effect of
accounting change, net of income taxes - - 21 - Net income $917
$454 $3,032 $2,879 Basic earnings per common share: Income from
continuing operations $0.43 $0.29 $1.59 $1.47 Income (loss) from
discontinued operations 0.02 (0.06) (0.09) (0.03) Cumulative effect
of accounting change - - 0.01 - Net income $0.45 $0.23 $1.51 $1.44
Diluted earnings per common share: Income from continuing
operations $0.42 $0.27 $1.51 $1.38 Income (loss) from discontinued
operations 0.02 (0.05) (0.09) (0.03) Cumulative effect of
accounting change - - 0.01 - Net income $0.44 $0.22 $1.43 $1.35
Weighted-average number of shares outstanding: Basic 2,017 2,005
2,012 2,001 Diluted 2,127 2,217 2,167 2,221 Income Reconciliation
for Diluted EPS: Income from continuing operations $876 $576 $3,199
$2,948 Add back of interest expense for convertible debt 13 26 74
113 Income from continuing operations, giving effect to dilutive
adjustments 889 602 3,273 3,061 Income (loss) from discontinued
operations 41 (122) (188) (69) Cumulative effect of accounting
change - - 21 - Net income, giving effect to dilutive adjustments
$930 $480 $3,106 $2,992 NOTE: In the fourth quarter of fiscal 2005,
Plastics and Adhesives was reclassified to discontinued operations
for all periods presented. NOTE: These financial statements should
be read in conjunction with the Consolidated Financial Statements
and accompanying notes contained in the Company's Annual Report on
Form 10-K for the fiscal year ended September 30, 2004 and
Quarterly Reports on Form 10-Q for the quarterly periods ended
December 31, 2004, April 1, 2005 and July 1, 2005. TYCO
INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited)
Quarter Ended September 30, September 30, 2005 2004 NET REVENUE
Fire and Security $2,894 $2,894 Electronics 3,064 3,080 Healthcare
2,415 2,387 Engineered Products and Services 1,657 1,621 Corporate
and Other - 7 Total Net Revenue $10,030 $9,989 OPERATING INCOME AND
MARGIN Fire and Security $321 11.1% $159 5.5% Electronics 430 14.0%
481 15.6% Healthcare 338 14.0% 631 26.4% Engineered Products and
Services 157 9.5% 158 9.7% Corporate and Other (202) (147)
Operating Income and Margin $1,044 10.4% $1,282 12.8% TYCO
INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited)
Twelve Months Ended September 30, September 30, 2005 2004 NET
REVENUE Fire and Security $11,503 $11,447 Electronics 12,196 11,822
Healthcare 9,543 9,110 Engineered Products and Services 6,456 6,007
Corporate and Other 29 25 Total Net Revenue $39,727 $38,411
OPERATING INCOME AND MARGIN Fire and Security $1,216 10.6% $899
7.9% Electronics 1,852 15.2% 1,749 14.8% Healthcare 2,286 24.0%
2,365 26.0% Engineered Products and Services 672 10.4% 620 10.3%
Corporate and Other (231) (397) Operating Income and Margin $5,795
14.6% $5,236 13.6% NOTE: In the fourth quarter of fiscal 2005,
Plastics and Adhesives was reclassified to discontinued operations
for all periods presented. TYCO INTERNATIONAL LTD. CONDENSED
CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) Sept. 30,
July 1, Sept. 30, 2005 2005 2004 Current Assets: Cash and cash
equivalents $3,196 $2,666 $4,467 Accounts receivable, net 6,732
6,794 6,096 Inventories 4,197 4,384 4,179 Prepaid expenses and
other current assets 3,057 2,674 2,722 Assets held for sale 1,355
1,375 2,170 Total current assets 18,537 17,893 19,634 Property,
plant and equipment, net 9,238 9,196 9,314 Goodwill 24,557 24,686
24,800 Intangible assets, net 5,085 5,077 5,311 Other assets 5,204
4,725 4,608 Total Assets $62,621 $61,577 $63,667 Current
Liabilities: Current maturities of long-term debt $1,954 $1,129
$2,037 Accounts payable 3,065 2,854 2,625 Accrued and other current
liabilities 6,536 5,633 5,739 Liabilities held for sale 280 294 875
Total current liabilities 11,835 9,910 11,276 Long-term debt 10,600
11,926 14,542 Other liabilities 7,675 7,637 7,489 Total Liabilities
30,110 29,473 33,307 Minority interest 61 59 68 Shareholders'
equity 32,450 32,045 30,292 Total Liabilities and Shareholders'
Equity $62,621 $61,577 $63,667 NOTE: In the fourth quarter of
fiscal 2005, Plastics and Adhesives was reclassified to
discontinued operations for all periods presented. NOTE: These
financial statements should be read in conjunction with the
Consolidated Financial Statements and accompanying notes contained
in the Company's Annual Report on Form 10-K for the fiscal year
ended September 30, 2004 and Quarterly Report on Form 10-Q for the
quarterly periods ended December 31, 2004, April 1, 2005 and July
1, 2005. TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH
FLOWS (in millions) (Unaudited) Quarter Ended Twelve Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2005 2004 2005 2004 Cash
Flows from Operating Activities: Net income $917 $454 $3,032 $2,879
Cumulative Effect of Accounting Change - - (21) - (Income) loss
from discontinued operations (41) 122 188 69 Income from continuing
operations 876 576 3,199 2,948 Adjustments to reconcile net cash
provided by operating activities: Non-cash restructuring and
long-lived asset impairment charges, net - 35 (12) 18 (Gains)
losses and impairments on divestitures, net 10 33 (271) 111
Depreciation and amortization 528 517 2,100 2,119 Deferred income
taxes (131) (59) (41) 167 Provision for losses on accounts
receivable and inventory 46 72 234 318 Loss on the retirement of
debt 105 241 1,013 284 Other non-cash items 51 45 138 149 Changes
in assets and liabilities, net of the effects of acquisitions and
divestitures: Accounts receivable, net 35 36 (714) (145) Decrease
in sale of accounts receivable (2) (396) (18) (929) Inventories 171
36 (124) (246) Accounts payable 212 130 424 79 Accrued and other
liabilities 338 111 320 306 Other (119) 52 (111) 100 Net cash
provided by operations 2,120 1,429 6,137 5,279 Net cash provided by
discontinued operating activities 51 54 77 134 Cash Flows from
Investing Activities: Capital expenditures, net (358) (330) (1,272)
(987) Acquisition of businesses, net of cash acquired (67) (2) (82)
(15) Acquisition of customer accounts (ADT dealer program) (100)
(69) (328) (254) Purchase accounting and holdback/earn-out
liabilities (17) (22) (47) (105) Divestiture of businesses, net of
cash retained by businesses sold (8) 91 295 236 (Increase) decrease
in investments (119) 30 (272) 423 Decrease (increase) in restricted
cash (7) 39 (2) 342 Other 10 (12) (16) (25) Net cash used in
investing activities (666) (275) (1,724) (385) Net cash used in
discontinued investing activities (8) (27) (30) (46) Cash Flows
from Financing Activities: Net repayments of debt (548) (752)
(4,990) (4,768) Proceeds from exercise of share options 55 30 226
155 Dividends paid (201) (25) (628) (100) Repurchase of common
shares (300) - (300) (1) Other (3) (4) (23) (24) Net cash used in
financing activities (997) (751) (5,715) (4,738) Net cash used in
discontinued financing activities (1) (3) (81) (8) Effect of
currency translation on cash 31 18 65 45 Net increase (decrease) in
cash and cash equivalents 530 445 (1,271) 281 Cash and cash
equivalents at beginning of period 2,666 4,022 4,467 4,186 Cash and
cash equivalents at end of period $3,196 $4,467 $3,196 $4,467
Reconciliation to "Free Cash Flow": Net cash provided by operating
activities $2,120 $1,429 $6,137 $5,279 Decrease in sale of accounts
receivable 2 396 18 929 Capital expenditures, net (358) (330)
(1,272) (987) Acquisition of customer accounts (ADT dealer program)
(100) (69) (328) (254) Cash paid for purchase accounting and
holdback/earn-out liabilities (17) (22) (47) (105) Voluntary
pension contributions 33 397 115 567 Free Cash Flow $1,680 $1,801
$4,623 $5,429 Plastics and Adhesives Free Cash Flow 51 (14) 119 76
Free Cash Flow including Plastics and Adhesives $1,731 $1,787
$4,742 $5,505 NOTE: In the fourth quarter of fiscal 2005, Plastics
and Adhesives was reclassified to discontinued operations for all
periods presented. NOTE: Free cash flow is a non-GAAP measure. See
description of non-GAAP measures contained in this release. TYCO
INTERNATIONAL LTD. ORGANIC REVENUE GROWTH RECONCILIATION (in
millions) (Unaudited) Quarter Ended September 30, 2005 Net Revenue
Foreign Currency Fire and Security $2,894 0.0% $31 1.1% Electronics
3,064 -0.5% 25 0.8% Healthcare 2,415 1.2% 10 0.4% Engineered
Products and Services 1,657 2.2% 28 1.7% Corporate and Other - NM -
NM Total Net Revenue $10,030 0.4% $94 0.9% Plastics and Adhesives
465 2.6% 2 0.4% Total Net Revenue Including Plastics and Adhesives
$10,495 0.5% $96 0.9% TYCO INTERNATIONAL LTD. ORGANIC REVENUE
GROWTH RECONCILIATION (in millions) (Unaudited) Quarter Ended
September 30, 2005 Acquisition / Divestiture Other Fire and
Security $(70) -2.5% $- 0.0% Electronics (90) -2.9% (32) (1) -1.1%
Healthcare (2) -0.1% - 0.0% Engineered Products and Services (2)
-0.1% - 0.0% Corporate and Other (7) NM - NM Total Net Revenue
$(171) -1.7% $(32) -0.3% Plastics and Adhesives 1 0.3% 23 (2) 4.9%
Total Net Revenue Including Plastics and Adhesives $(170) -1.6%
$(9) -0.1% TYCO INTERNATIONAL LTD. ORGANIC REVENUE GROWTH
RECONCILIATION (in millions) (Unaudited) Quarter Ended September
30, 2005 Net Revenue for the Quarter Ended Organic Revenue
September 30, Growth 2004 Fire and Security $39 1.4% $2,894
Electronics 81 2.7% 3,080 Healthcare 20 0.9% 2,387 Engineered
Products and Services 10 0.6% 1,621 Corporate and Other - NM 7
Total Net Revenue $150 1.5% $9,989 Plastics and Adhesives (14)
-3.0% 453 Total Net Revenue Including Plastics and Adhesives $136
1.3% $10,442 Twelve Months Ended September 30, 2005 Net Revenue
Foreign Currency Fire and Security $11,503 0.5% $274 2.4%
Electronics 12,196 3.2% 294 2.5% Healthcare 9,543 4.8% 141 1.5%
Engineered Products and Services 6,456 7.5% 167 2.8% Corporate and
Other 29 NM - NM Total Net Revenue $39,727 3.4% $876 2.3% Plastics
and Adhesives 1,851 6.3% 11 0.6% Total Net Revenue Including
Plastics and Adhesives $41,578 3.5% $887 2.2% Twelve Months Ended
September 30, 2005 Acquisition / Divestiture Other Fire and
Security $(315) -2.8% $- 0.0% Electronics (346) -3.0% 39 (1) 0.3%
Healthcare (18) -0.1% - 0.0% Engineered Products and Services (14)
-0.3% (18) (3) -0.3% Corporate and Other 4 NM - NM Total Net
Revenue $(689) -1.9% $21 0.1% Plastics and Adhesives 5 0.3% 82 (2)
4.8% Total Net Revenue Including Plastics and Adhesives $(684)
-1.8% $103 0.3% Twelve Months Ended September 30, 2005 Net Revenue
for the Twelve Months Ended Organic Revenue September 30, Growth
2004 Fire and Security $97 0.9% $11,447 Electronics 387 3.4% 11,822
Healthcare 310 3.4% 9,110 Engineered Products and Services 314 5.3%
6,007 Corporate and Other - NM 25 Total Net Revenue $1,108 2.9%
$38,411 Plastics and Adhesives 11 0.6% 1,742 Total Net Revenue
Including Plastics and Adhesives $1,119 2.8% $40,153 (1) Effective
October 1, 2004, Tyco changed its fiscal year from a calendar year
to a 52/53-week year and conformed the closing periods of certain
subsidiaries. (2) Reflects the reclassification of customer
reimbursed freight costs from revenue to cost of goods sold. (3)
Reflects the deconsolidation of several joint ventures as a result
of the adoption of FIN 46R during the second quarter of fiscal
2004. NOTE: In the fourth quarter of fiscal 2005, Plastics and
Adhesives was reclassified to discontinued operations for all
periods presented. NOTE: Organic revenue growth is a non-GAAP
measure. See description of non-GAAP measures contained in this
release. TYCO INTERNATIONAL LTD. NET DEBT RECONCILIATION (in
millions) (Unaudited) Twelve Months Quarter Ended Ended September
30, September 30, 2005 2005 Total debt at beginning of period
$13,055 $16,579 Net debt repayments (450) (4,013) Currency
translation adjustments on debt (18) (31) Other (33) 19 Total debt
at end of period 12,554 12,554 Less: cash and cash equivalents at
end of period (3,196) (3,196) Net debt at end of period $9,358
$9,358 NOTE: Net debt is a non-GAAP measure. See description of
non-GAAP measures contained in this release. Tyco International
Ltd. Earnings Per Share Summary Quarter Ended Dec. 31, April 1,
July 1, 2004 2005 2005 Diluted EPS from Continuing Operations as
previously reported (GAAP) $0.35 $0.11 $0.56 (Income) / Loss from
Plastics & Adhesives (Discontinued Operations) (0.01) 0.09 0.01
Diluted EPS from Continuing Operations (GAAP) $0.34 $0.20 $0.57
Divestiture Losses / (Gains) 0.00 0.00 (0.15)(2) Loss on the
Retirement of Debt 0.07 0.26 0.09 SEC Investigation - 0.02 -
Healthcare Legal Matter - - - Legacy Contingencies - Former
Executives - - - Court Restitution Award - - - Tax Matters - - -
Note: Income / (Loss) from Plastics and Adhesives excluding charges
0.01 0.00 (0.00) Tyco International Ltd. Earnings Per Share Summary
Quarter Ended Year Ended September 30, September 30, 2005 (1) 2005
Diluted EPS from Continuing Operations as previously reported
(GAAP) (Income) / Loss from Plastics & Adhesives (Discontinued
Operations) Diluted EPS from Continuing Operations (GAAP) $0.42
$1.51 Divestiture Losses / (Gains) 0.01 (0.14) Loss on the
Retirement of Debt 0.05 0.47 SEC Investigation - 0.02 Healthcare
Legal Matter 0.08 0.08 Legacy Contingencies - Former Executives
0.02 0.03 Court Restitution Award (0.05) (0.05) Tax Matters (0.07)
(0.07) Note: Income / (Loss) from Plastics and Adhesives excluding
charges 0.02 0.03 (1) In the fourth quarter of fiscal 2005,
Plastics and Adhesives was reclassified to discontinued operations
for all periods presented (2) Reflects the gain on the sale of Tyco
Global Network TYCO INTERNATIONAL LTD. Tax Rate Adjusted for
Special Items Reconciliation $ Millions For Quarter Ended December
31, 2004 April 1, 2005 Pretax Income Tax Pretax Income Tax Income
Taxes Rate Income Taxes Rate As Previously Reported (GAAP - From
Cont. Ops.) 1,054 310 29.4% 588 366 62.2% Plastics and Adhesives
(24) (4) 185 7 GAAP 1,030 306 29.7% 773 373 48.3% Special Items
Healthcare Legal Matter Early Retirement of Debt 156 - 573 -
Impairment Charges 202 21 Divestitures Losses/(Gains) 18 4 2 1 SEC
Investigation 50 - Legacy Tax Matters Potential Liabilities -
Former Executives Court Restitution Award Income / (Loss) from
Discontinued Operations 24 4 (185) (7) Adjusted for Special Items
1,228 314 25.6% 1,415 388 27.4% TYCO INTERNATIONAL LTD. Tax Rate
Adjusted for Special Items Reconciliation $ Millions For Quarter
Ended July 1, 2005 September 30, 2005 Pretax Income Tax Pretax
Income Tax Income Taxes Rate Income Taxes Rate As Previously
Reported (GAAP - From Cont. Ops.) 1,525 326 21.4% Plastics and
Adhesives (22) (28) GAAP 1,503 298 19.8% 886 7 0.8% Special Items
Healthcare Legal Matter 277 107 Early Retirement of Debt 179 - 105
- Impairment Charges Divestitures Losses/(Gains) (301) 25 14 (6)
SEC Investigation Legacy Tax Matters - 152 Potential Liabilities -
Former Executives 70 19 Court Restitution Award (109) - Income /
(Loss) from Discontinued Operations 22 28 31 (11) Adjusted for
Special Items 1,403 351 25.0% 1,274 268 21.0% TYCO INTERNATIONAL
LTD. Tax Rate Adjusted for Special Items Reconciliation $ Millions
Year Ended September 30, 2005 Pretax Income Income Taxes Tax Rate
As Previously Reported (GAAP - From Cont. Ops.) Plastics and
Adhesives GAAP 4,192 984 23.5% Special Items Healthcare Legal
Matter 277 107 Early Retirement of Debt 1,013 - Impairment Charges
202 21 Divestitures Losses/(Gains) (267) 24 SEC Investigation 50 -
Legacy Tax Matters - 152 Potential Liabilities - Former Executives
70 19 Court Restitution Award (109) - Income / (Loss) from
Discontinued Operations (108) 14 Adjusted for Special Items 5,320
1,321 24.8% NOTE: Tax rate adjusted for special items is a non-GAAP
measure. See description of non-GAAP measures contained in this
release. DATASOURCE: Tyco International Ltd. CONTACT: Media
Relations: Sheri Woodruff, +1-609-720-4399, or Investor Relations:
Ed Arditte, +1-609-720-4621, or John Roselli, +1-609-720-4624 Web
site: http://www.tyco.com/ Company News On-Call:
http://www.prnewswire.com/comp/897850.html
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