EVERETT, Wash.--(BUSINESS WIRE)--Fortive Corporation (“Fortive”) (NYSE: FTV) today announced results for
the first quarter 2019.
For the first quarter ended March 29, 2019, net earnings from continuing
operations attributable to common stockholders were $146.7 million. For
the same period, adjusted net earnings from continuing operations were
$245.6 million. Diluted net earnings per share from continuing
operations for the first quarter ended March 29, 2019 were $0.43. For
the same period, adjusted diluted net earnings per share from continuing
operations were $0.69.
For the first quarter of 2019, revenues from continuing operations
increased 6.7% year-over-year to $1.6 billion, with core revenue growth
of 3.7%.
James A. Lico, President and Chief Executive Officer, stated, “Our first
quarter results provided a solid start to 2019, setting us up to deliver
another year of strong double-digit earnings growth. Our first quarter
performance was in line with our expectations, despite pressures from
tariffs, foreign exchange rates, and some near-term headwinds in
Professional Instrumentation. We also generated strong free cash flow
growth of 31% for the quarter, reflecting the application of the Fortive
Business System and the underlying vitality of our portfolio.”
For the second quarter of 2019, Fortive anticipates diluted net earnings
per share from continuing operations to be in the range of $0.47 to
$0.51 and adjusted diluted net earnings per share from continuing
operations to be in the range of $0.86 to $0.90. For the full year 2019,
Fortive expects diluted net earnings per share from continuing
operations to be in the range of $2.36 to $2.46. For the full year 2019,
Fortive expects adjusted diluted net earnings per share from continuing
operations to be in the range of $3.55 to $3.65, which includes $0.20
from the Advanced Sterilization Products business. The updated full year
2019 adjusted diluted net earnings per share guidance also includes a
reduction of $0.05 to reflect the impact of the recently announced
transaction combining the Tektronix video test and monitoring business
with Telestream.
Mr. Lico added, “On April 1st, we closed the acquisition of the Advanced
Sterilization Products business from Johnson & Johnson, welcoming the
business and its employees to the Fortive family. The $2.7 billion
transaction represents Fortive’s largest acquisition to date and we are
pleased that we closed on time, in just under ten months. With a strong
global installed base and leading brands, ASP brings growth, high
recurring revenue, and significant earnings potential to the Fortive
portfolio.”
Fortive will discuss results and outlook during its quarterly investor
conference call today starting at 5:30 p.m. ET. The call and an
accompanying slide presentation will be webcast on the “Investors”
section of Fortive’s website, www.fortive.com,
under “Events & Presentations.” A replay of the webcast will be
available at the same location shortly after the conclusion of the
presentation and will remain available until the next quarterly earnings
call.
The conference call can be accessed by dialing 844-443-2871 within the
U.S. or by dialing 213-660-0916 outside the U.S. a few minutes before
5:30 p.m. ET and notifying the operator that you are dialing in for
Fortive’s earnings conference call (access code 5294205). A replay of
the conference call will be available two hours after the completion of
the call until Friday, May 10, 2019. Once available, you can access the
conference call replay by dialing 800-585-8367 within the U.S. or
404-537-3406 outside the U.S. (access code 5294205) or visit the
“Investors” section of the website under “Events & Presentations.”
ABOUT FORTIVE
Fortive is a diversified industrial technology growth company comprised
of Professional Instrumentation and Industrial Technologies businesses
that are recognized leaders in attractive markets. Fortive’s well-known
brands hold leading positions in field solutions, product realization,
sensing technologies, transportation technologies, and franchise
distribution. Fortive is headquartered in Everett, Washington and
employs a team of more than 25,000 research and development,
manufacturing, sales, distribution, service and administrative employees
in more than 50 countries around the world. With a culture rooted in
continuous improvement, the core of our company’s operating model is the
Fortive Business System. For more information please visit: www.fortive.com.
DIVESTITURE OF THE A&S BUSINESS
On October 1, 2018, Fortive completed the previously announced split-off
of its Automation & Specialty platform (excluding Fortive’s Hengstler
and Dynapar businesses) (the “A&S Business”) and the operating results
and related assets and liabilities of the A&S Business are presented as
discontinued operations for all periods.
NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), this earnings release
also references “adjusted net earnings,” “adjusted diluted net earnings
per share,” and “core revenue,” which are non-GAAP financial measures.
The reasons why we believe these measures, when used in conjunction with
the GAAP financial measures, provide useful information to investors,
how management uses such non-GAAP financial measures, a reconciliation
of these measures to the most directly comparable GAAP measures and
other information relating to these measures are included in the
supplemental reconciliation schedule attached. The non-GAAP financial
measures should not be considered in isolation or as a substitute for
the GAAP financial measures, but should instead be read in conjunction
with the GAAP financial measures. The non-GAAP financial measures used
by Fortive in this release may be different from similarly-titled
non-GAAP measures used by other companies.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical, statements
regarding Fortive’s anticipated earnings, business and acquisition
opportunities, impact of acquisitions and dispositions, anticipated
revenue growth, anticipated operating margin expansion, anticipated cash
flow, economic conditions, future prospects, shareholder value, and any
other statements identified by their use of words like “anticipate,”
“expect,” “believe,” “outlook,” “guidance,” or “will” or other words of
similar meaning are “forward-looking” statements within the meaning of
the federal securities laws. There are a number of important factors
that could cause actual results, developments and business decisions to
differ materially from those suggested or indicated by such
forward-looking statements and you should not place undue reliance on
any such forward-looking statements. These factors include, among other
things: deterioration of or instability in the economy, the markets we
serve, international trade policies and the financial markets, trade
relations with China, contractions or lower growth rates and cyclicality
of markets we serve, competition, changes in industry standards and
governmental regulations, our ability to successfully identify,
consummate, integrate and realize the anticipated value of appropriate
acquisitions and successfully complete divestitures and other
dispositions, our ability to develop and successfully market new
products, software, and services and expand into new markets, the
potential for improper conduct by our employees, agents or business
partners, impact of divestitures, contingent liabilities relating to
acquisitions and divestitures, impact of changes to tax laws, our
compliance with applicable laws and regulations and changes in
applicable laws and regulations, risks relating to international
economic, political, legal, compliance and business factors, risks
relating to potential impairment of goodwill and other intangible
assets, currency exchange rates, tax audits and changes in our tax rate
and income tax liabilities, the impact of our debt obligations on our
operations, litigation and other contingent liabilities including
intellectual property and environmental, health and safety matters, our
ability to adequately protect our intellectual property rights, risks
relating to product, service or software defects, product liability and
recalls, risks relating to product manufacturing, our relationships with
and the performance of our channel partners, commodity costs and
surcharges, our ability to adjust purchases and manufacturing capacity
to reflect market conditions, reliance on sole sources of supply,
security breaches or other disruptions of our information technology
systems, adverse effects of restructuring activities, impact of changes
to U.S. GAAP, labor matters, and disruptions relating to man-made and
natural disasters. Additional information regarding the factors that may
cause actual results to differ materially from these forward-looking
statements is available in our SEC filings, including our Annual Report
on Form 10-K for the year ended December 31, 2018. These forward-looking
statements speak only as of the date of this release, and Fortive does
not assume any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events and
developments or otherwise.
|
FORTIVE CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
($ and shares in millions, except per share amounts)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
March 29, 2019
|
|
March 30, 2018
|
Sales
|
|
$
|
1,592.9
|
|
|
$
|
1,492.2
|
|
Cost of sales
|
|
(780.2
|
)
|
|
(725.9
|
)
|
Gross profit
|
|
812.7
|
|
|
766.3
|
|
Operating costs:
|
|
|
|
|
Selling, general, and administrative expenses
|
|
(486.4
|
)
|
|
(388.5
|
)
|
Research and development expenses
|
|
(109.0
|
)
|
|
(99.9
|
)
|
Operating profit
|
|
217.3
|
|
|
277.9
|
|
Non-operating income (expense):
|
|
|
|
|
Interest expense, net
|
|
(25.3
|
)
|
|
(23.3
|
)
|
Other non-operating expenses
|
|
0.4
|
|
|
(0.7
|
)
|
Earnings from continuing operations before income taxes
|
|
192.4
|
|
|
253.9
|
|
Income taxes
|
|
(28.4
|
)
|
|
(39.9
|
)
|
Net earnings from continuing operations
|
|
164.0
|
|
|
214.0
|
|
Earnings from discontinued operations, net of income taxes
|
|
0.4
|
|
|
47.2
|
|
Net earnings
|
|
164.4
|
|
|
261.2
|
|
Mandatory convertible preferred dividends
|
|
(17.3
|
)
|
|
—
|
|
Net earnings attributable to common stockholders
|
|
$
|
147.1
|
|
|
$
|
261.2
|
|
|
|
|
|
|
Net earnings per share from continuing operations:
|
|
|
|
|
Basic
|
|
$
|
0.44
|
|
|
$
|
0.61
|
|
Diluted
|
|
$
|
0.43
|
|
|
$
|
0.61
|
|
Net earnings per share from discontinued operations:
|
|
|
|
|
Basic
|
|
$
|
—
|
|
|
$
|
0.14
|
|
Diluted
|
|
$
|
—
|
|
|
$
|
0.13
|
|
Net earnings per share:
|
|
|
|
|
Basic
|
|
$
|
0.44
|
|
|
$
|
0.75
|
|
Diluted
|
|
$
|
0.43
|
|
|
$
|
0.74
|
|
Average common stock and common equivalent shares outstanding:
|
|
|
|
|
Basic
|
|
335.1
|
|
|
348.6
|
|
Diluted
|
|
339.5
|
|
|
354.4
|
|
|
|
|
|
|
|
|
This information is for reference only. A complete copy of
Fortive’s Form 10-Q financial statements is available on the
Company’s website (www.fortive.com).
|
|
|
|
|
FORTIVE CORPORATION AND SUBSIDIARIES
|
SEGMENT INFORMATION
|
($ in millions)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
March 29, 2019
|
|
March 30, 2018
|
Sales:
|
|
|
|
|
Professional Instrumentation
|
|
$
|
947.3
|
|
|
$
|
871.7
|
|
Industrial Technologies
|
|
645.6
|
|
|
620.5
|
|
Total
|
|
$
|
1,592.9
|
|
|
$
|
1,492.2
|
|
|
|
|
|
|
Operating Profit:
|
|
|
|
|
Professional Instrumentation
|
|
$
|
136.2
|
|
|
$
|
206.4
|
|
Industrial Technologies
|
|
105.3
|
|
|
94.2
|
|
Other (a)
|
|
(24.2
|
)
|
|
(22.7
|
)
|
Total
|
|
$
|
217.3
|
|
|
$
|
277.9
|
|
|
|
|
|
|
Operating Margins:
|
|
|
|
|
Professional Instrumentation
|
|
14.4
|
%
|
|
23.7
|
%
|
Industrial Technologies
|
|
16.3
|
%
|
|
15.2
|
%
|
Total
|
|
13.6
|
%
|
|
18.6
|
%
|
|
|
|
|
|
(a) Operating profit amounts in the Other category
consist of unallocated corporate costs and other costs not
considered part of our evaluation of reportable segment operating
performance.
|
|
This information is for reference only. A complete copy of
Fortive’s Form 10-Q financial statements is available on the
Company’s website (www.fortive.com).
|
|
FORTIVE CORPORATION AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
AND OTHER INFORMATION
Adjusted Net Earnings from Continuing Operations and Adjusted Diluted
Net Earnings per Share from Continuing Operations
We disclose the non-GAAP measures of historical adjusted net earnings
from continuing operations and historical and forecasted adjusted
diluted net earnings per share from continuing operations, which make
the following adjustments to GAAP net earnings and GAAP diluted net
earnings per share:
-
Excluding on a pretax basis amortization of acquisition-related
intangible assets;
-
Excluding on a pretax basis acquisition-related costs deemed
significant (“Transaction Costs”);
-
Excluding on a pretax basis the effect of deferred revenue and
inventory fair value adjustments related to significant acquisitions;
-
Excluding on a pretax basis the non-cash interest expense associated
with our 0.875% convertible senior notes; and
-
Excluding the tax effect of the adjustments noted above. The tax
effect of such adjustments was calculated by applying our overall
estimated effective tax rate to the pretax amount of each adjustment
(unless the nature of the item and/or the tax jurisdiction in which
the item has been recorded requires application of a specific tax rate
or tax treatment, in which case the tax effect of such item is
estimated by applying such specific tax rate or tax treatment). We
expect to apply our overall estimated effective tax rate to each
adjustment going forward, and, as such, we are applying the estimated
effective tax rate to each adjustment for the forecasted periods to
facilitate comparisons in future periods;
-
Excluding the 2017 provisional amount estimated in connection with the
Tax Cut and Jobs Act and subsequent adjustments to the provisional
estimates (the “TCJA Adjustments”); and
-
Including the impact of the assumed conversion of our Mandatory
Convertible Preferred Stock.
While we have a history of acquisition activity, we do not acquire
businesses on a predictable cycle, and the amount of an acquisition’s
purchase price allocated to intangible assets and related amortization
term and the deferred revenue and inventory fair value adjustments are
unique to each acquisition and can vary significantly from acquisition
to acquisition. In addition, the Transaction Costs are unique to each
transaction, are impacted from period to period depending on the number
of acquisitions or divestitures evaluated, pending or completed during
such period, and the complexity of such transactions. We believe,
however, that it is important for investors to understand that such
intangible assets contribute to revenue generation and that intangible
assets and deferred revenue fair value adjustments related to past
acquisitions will recur in future periods until such intangible assets
and deferred revenue fair value adjustments, as applicable, have been
fully amortized.
In June 2018, we issued $1.38 billion in aggregate liquidation
preference of shares of our 5.00% Mandatory Convertible Preferred Stock
(“MCPS”). Dividends on the MCPS are payable on a cumulative basis at an
annual rate of 5.00% on the liquidation preference of $1,000 per share.
Unless earlier converted, each share of the MCPS will automatically
convert on July 1, 2021 into between, after giving effect to the prior
anti-dilution adjustment, 10.9041 and 13.3575 shares of our common
stock, subject to further anti-dilution adjustments. The number of
shares of our common stock issuable on conversion of the Mandatory
Convertible Preferred Stock will be determined based on the average
volume weighted average price (“VWAP”) per share of our common stock
over the 20 consecutive trading day period beginning on and including
the 22nd scheduled trading day immediately preceding July 1, 2021. For
the purposes of calculating adjusted earnings and adjusted earnings per
share, we have excluded the MCPS dividend and, for the purposes of
adjusted earnings per share, assumed the “if-converted” method of share
dilution (the incremental shares of common stock deemed outstanding
applying the “if-converted” method of share dilution, the “Converted
Shares”). We believe that using the “if-converted” method provides
additional insight to investors on the potential impact of the MCPS once
they are converted into common stock no later than July 1, 2021.
On February 22, 2019, we issued $1.4 billion in aggregate principal
amount of our 0.875% Convertible Senior Notes due 2022 (the “Convertible
Notes”), including $187.5 million in aggregate principal amount
resulting from an exercise in full of an over-allotment option. The
Convertible Notes bear interest at a rate of 0.875% per year, payable
semiannually in arrears on February 15 and August 15 of each year,
beginning on August 15, 2019. The Notes mature on February 15, 2022,
unless earlier repurchased or converted in accordance with their terms
prior to such date.
Of the proceeds received from the issuance of the Convertible Notes,
$1.3 billion was classified as debt and $102.2 million was classified as
equity, using an assumed effective interest rate of 3.38%. We recognize
interest expense using the 3.38% assumed rate, and pay interest to
holders of the notes at a coupon rate of 0.875%. We believe that
adjusting for the non-cash imputed interest expense between the assumed
rate and coupon rate provides additional insight into our cash interest
expense.
The TCJA Adjustments identified above have been excluded from the GAAP
measures identified above because items of this nature and/or size occur
with inconsistent frequency or occur for reasons that may be unrelated
to our commercial performance during the period and/or because we
believe the corresponding adjustments are useful in assessing our
potential ongoing operating costs or gains in a given period. We will
adjust for, and identify as significant, acquisition and
divestiture-related transaction costs, acquisition related fair value
adjustments to inventory and deferred revenue, and corresponding
restructuring charges primarily related to acquisitions, in each case,
incurred in a given period, if we determine that such costs and
adjustments exceed the range of our typical transaction costs and
adjustments, respectively, in a given period.
The forecasted adjusted diluted net earnings per share from continuing
operations does not reflect certain adjustments that are inherently
difficult to predict or estimate due to their unknown timing, effect
and/or significance.
Management believes that these non-GAAP financial measures provide
useful information to investors by reflecting additional ways of viewing
aspects of our operations that, when reconciled to the corresponding
GAAP measure, help our investors to understand the long-term
profitability trends of our business, and facilitate comparisons of our
profitability to prior and future periods and to our peers.
These non-GAAP measures should be considered in addition to, and not as
a replacement for or superior to, the comparable GAAP measures, and may
not be comparable to similarly titled measures reported by other
companies.
Core Revenue
We use the term “core revenue” when referring to a corresponding GAAP
revenue measure, excluding (1) the impact from acquired businesses and
(2) the impact of currency translation. References to sales attributable
to acquisitions or acquired businesses refer to GAAP sales from acquired
businesses recorded prior to the first anniversary of the acquisition
less the amount of sales attributable to certain divested businesses or
product lines not considered discontinued operations prior to the first
anniversary of the divestiture. The portion of sales attributable to the
impact of currency translation is calculated as the difference between
(a) the period-to-period change in sales (excluding sales impact from
acquired businesses) and (b) the period-to-period change in sales
(excluding sales impact from acquired businesses) after applying the
current period foreign exchange rates to the prior year period. This
non-GAAP measure should be considered in addition to, and not as a
replacement for or superior to, the comparable GAAP measure, and may not
be comparable to similarly titled measures reported by other companies.
Management believes that this non-GAAP measure provides useful
information to investors by helping identify underlying growth trends in
our business and facilitating comparisons of our revenue performance
with prior and future periods and to our peers. We exclude the effect of
acquisitions and divestiture related items because the nature, size and
number of such transactions can vary dramatically from period to period
and between us and our peers. We exclude the effect of currency
translation from sales measures because currency translation is not
under management’s control and is subject to volatility. We believe that
such exclusions, when presented with the corresponding GAAP measures,
may assist in assessing the business trends and making comparisons of
long-term performance.
|
|
|
|
Adjusted Net Earnings From Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
($ in millions)
|
|
|
March 29, 2019
|
|
March 30, 2018
|
Net Earnings From Continuing Operations Attributable to Common
Stockholders (GAAP)
|
|
|
$
|
146.7
|
|
|
$
|
214.0
|
|
Dividends on the mandatory convertible preferred stock to apply
if-converted method
|
|
|
17.3
|
|
|
—
|
|
Net Earnings from Continuing Operations (GAAP)
|
|
|
164.0
|
|
|
214.0
|
|
Pretax amortization of acquisition-related intangible assets in the
three months ($52 million pretax, $43 million after tax) ended March
29, 2019, and in the three months ($25 million pretax, $21 million
after tax) ended March 30, 2018
|
|
|
52.2
|
|
|
24.9
|
|
Pretax acquisition-related transaction costs in the three months
($28 million pretax, $23 million after tax) ended March 29, 2019
|
|
|
28.2
|
|
|
—
|
|
Pretax acquisition-related fair value adjustments to deferred
revenue related to significant acquisitions in the three months ($16
million pretax, $13 million after tax) ended March 29, 2019
|
|
|
15.7
|
|
|
—
|
|
Pretax non-cash interest expense associated with our 0.875%
convertible notes in the three months ($3 million pretax, $3 million
after tax) ended March 29, 2019
|
|
|
3.2
|
|
|
—
|
|
Tax effect of the adjustments reflected above (a)
|
|
|
(17.7
|
)
|
|
(4.5
|
)
|
TCJA adjustments
|
|
|
—
|
|
|
(4.2
|
)
|
Adjusted Net Earnings from Continuing Operations (Non-GAAP)
|
|
|
$
|
245.6
|
|
|
$
|
230.2
|
|
|
|
|
|
|
|
(a) The MCPS are not tax deductible and therefore the tax effect of
the adjustments includes only the amortization of
acquisition-related intangible assets, acquisition-related
transaction costs, acquisition-related fair value adjustments to
deferred revenue, and the non-cash interest expense associated with
the convertible notes.
|
|
|
|
|
|
Adjusted Diluted Net Earnings Per Share from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
(a)
|
|
|
|
March 29, 2019
|
|
March 30, 2018
|
Diluted Net Earnings Per Share from Continuing Operations
Attributable to Common Stockholders (GAAP)
|
|
|
$
|
0.43
|
|
|
$
|
0.61
|
|
Dividends on the mandatory convertible preferred stock to apply
if-converted method
|
|
|
0.05
|
|
|
—
|
|
Assumed dilutive impact on the Diluted Net Earnings Per Share
Attributable to Common Stockholders if the Converted Shares had been
outstanding
|
|
|
(0.02
|
)
|
|
—
|
|
Pretax amortization of acquisition-related intangible assets in the
three months ($52 million pretax, $43 million after tax) ended March
29, 2019, and in the three months ($25 million pretax, $21 million
after tax) ended March 30, 2018
|
|
|
0.15
|
|
|
0.07
|
|
Pretax acquisition-related transaction costs in the three months
($28 million pretax, $23 million after tax) ended March 29, 2019
|
|
|
0.08
|
|
|
—
|
|
Pretax acquisition-related fair value adjustments to deferred
revenue related to significant acquisitions in the three months ($16
million pretax, $13 million after tax) ended March 29, 2019
|
|
|
0.04
|
|
|
—
|
|
Pretax non-cash interest expense associated with our 0.875%
convertible notes in the three months ($3 million pretax, $3 million
after tax) ended March 29, 2019
|
|
|
0.01
|
|
|
—
|
|
Tax effect of the adjustments reflected above (b)
|
|
|
(0.05
|
)
|
|
(0.01
|
)
|
TCJA Adjustments
|
|
|
—
|
|
|
(0.01
|
)
|
Adjusted Diluted Net Earnings Per Share from Continuing
Operations (Non-GAAP)
|
|
|
$
|
0.69
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
(a) Each of the per share adjustments below was calculated assuming
the Converted Shares had been outstanding. The 0.875% convertible
notes did not have an impact on the adjusted diluted shares
outstanding.
|
(b) The MCPS are not tax deductible and therefore the tax effect of
the adjustments includes only the amortization of
acquisition-related intangible assets, acquisition-related
transaction costs, acquisition-related fair value adjustments to
deferred revenue, and the non-cash interest expense associated with
the 0.875% convertible notes.
|
|
The sum of the components of adjusted diluted net earnings per share
from continuing operations may not equal due to rounding.
|
|
|
|
Adjusted Diluted Shares Outstanding
|
|
|
|
|
|
|
|
Three Months Ended
|
(shares in millions)
|
|
March 29, 2019
|
|
March 30, 2018
|
Average common diluted stock outstanding
|
|
339.5
|
|
|
354.4
|
Converted Shares (a)
|
|
16.7
|
|
|
—
|
Adjusted average common stock and common equivalent shares
outstanding
|
|
356.2
|
|
|
354.4
|
|
|
|
|
|
(a) The number of Converted Shares assumes the conversion of all
1.38 million shares applying the “if-converted” method and using an
average 20-day VWAP of $82.66 as of March 29, 2019. The 0.875%
convertible notes did not have an impact on the adjusted diluted
shares outstanding.
|
|
|
|
|
Core Revenue Growth
|
|
|
|
|
|
|
|
% Change
Three Months Ended
March 29,
2019 vs.
Comparable 2018
Period
|
Total Revenue Growth (GAAP)
|
|
6.7
|
%
|
Core (Non-GAAP)
|
|
3.7
|
%
|
Acquisitions (Non-GAAP)
|
|
5.8
|
%
|
Impact of currency translation (Non-GAAP)
|
|
(2.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
Forecasted Adjusted Diluted Net Earnings Per Share from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending
June 28, 2019
|
|
Year Ending
December 31, 2019
|
|
|
|
Low End
|
|
High End
|
|
Low End
|
|
High End
|
Forecasted Diluted Net Earnings Per Share from Continuing
Operations Attributable to Common Stockholders
|
|
|
$
|
0.47
|
|
|
$
|
0.51
|
|
|
$
|
2.36
|
|
|
$
|
2.46
|
|
Anticipated dividends on mandatory convertible preferred stock in
the three months ending June 28, 2019 ($17 million) and year ending
December 31, 2019 ($69 million)
|
|
|
0.05
|
|
|
0.05
|
|
|
0.20
|
|
|
0.20
|
|
Anticipated dilutive impact on Forecasted Diluted Net Earnings Per
Share from Continuing Operations if the Converted Shares (16 million
shares in the three months ending June 28, 2019 and year ending
December 31, 2019) had been outstanding
|
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|
(0.12
|
)
|
|
(0.12
|
)
|
Anticipated pretax amortization of acquisition-related intangible
assets in the three months ending June 28, 2019 ($74 million pretax
(or $0.21 per share), $61 million after tax (or $0.17 per share))
and year ending December 31, 2019 ($274 million pretax (or $0.77 per
share), $225 million after tax (or $0.63 per share))
|
|
|
0.21
|
|
|
0.21
|
|
|
0.77
|
|
|
0.77
|
|
Anticipated pretax significant acquisition-related transaction costs
in the three months ending June 28, 2019 ($36 million pretax (or
$0.10 per share), $30 million after tax (or $0.08 per share)) and
the year ending December 31, 2019 ($103 million pretax (or $0.29 per
share), $84 million after tax (or $0.24 per share))
|
|
|
0.10
|
|
|
0.10
|
|
|
0.29
|
|
|
0.29
|
|
Anticipated pretax fair value adjustments to deferred revenue and
inventory related to significant acquisitions in the three months
ending June 28, 2019 ($39 million pretax (or $0.11 per share), $32
million after tax (or $0.09 per share)) and year ending December 31,
2019 ($74 million pretax (or $0.21 per share), $61 million after tax
(or $0.17 share))
|
|
|
0.11
|
|
|
0.11
|
|
|
0.21
|
|
|
0.21
|
|
Anticipated pretax non-cash interest from 0.875% convertible notes
in the three months ending June 28, 2019 ($8 million pretax (or
$0.02 per share), $7 million after tax (or $0.02 per share)) and the
year ending December 31, 2019 ($28 million pretax (or $0.08 per
share), $23 million after tax (or $0.07 per share))
|
|
|
0.02
|
|
|
0.02
|
|
|
0.08
|
|
|
0.08
|
|
Tax effect of the adjustments reflected above (a)
|
|
|
(0.08
|
)
|
|
(0.08
|
)
|
|
(0.24
|
)
|
|
(0.24
|
)
|
Forecasted Adjusted Diluted Net Earnings Per Share from
Continuing Operations
|
|
|
$
|
0.86
|
|
|
$
|
0.90
|
|
|
$
|
3.55
|
|
|
$
|
3.65
|
|
|
|
|
|
|
|
|
|
|
|
(a) The MCPS are not tax deductible and therefore the tax effect of
the adjustments includes only the amortization of
acquisition-related intangible assets, acquisition-related
transaction costs, acquisition-related fair value adjustments to
deferred revenue and inventory, and non-cash interest from 0.875%
convertible notes.
|
|
The above forecasted diluted net earnings per share from continuing
operations attributable to common stockholders does not include the
anticipated gain on the disposition of the Tektronix Video business.
|
|
The sum of the components of forecasted adjusted diluted net
earnings per share from continuing operations may not equal due to
rounding.
|
Griffin Whitney
Investor Relations
Fortive Corporation
6920 Seaway Boulevard
Everett, WA 98203
Telephone: (425) 446-5000