Orders and Revenue Support Robust Outlook
for 2024
Fourth Quarter 2023 Highlights
(All comparisons against the fourth quarter of 2022 unless
otherwise noted)
Strong performance driven by its competitive differentiator -
Ingersoll Rand Execution Excellence (IRX):
- Reported orders of $1,670 million, up 13%, or up 3%
organic
- Reported revenues of $1,821 million, up 12%, or up 4%
organic1
- Reported net income attributable to Ingersoll Rand Inc. of $230
million, or earnings of $0.56 per share
- Adjusted net income from continuing operations, net of tax1 of
$355 million, or $0.86 per share
- Adjusted EBITDA1 of $501 million, up 19%, with a margin of
27.5%, up 160 basis points year over year, and incremental margin
of 41%
- Reported operating cash flow from continuing operations of $581
million and free cash flow from continuing operations1 of $552
million, up 72%
- Liquidity of $3.6 billion as of December 31, 2023, including
$1.6 billion of cash on hand and undrawn capacity of $2.0 billion
under available credit facilities
- Backlog remains near historically high levels, up 8%
Full Year 2023 Highlights
(All comparisons against 2022 unless otherwise noted)
- Reported orders of $6,822 million, up 7%, or up 2% organic
- Reported revenues of $6,876 million, up 16%, or up 10%
organic1
- Reported net income attributable to Ingersoll Rand Inc. of $779
million, or earnings of $1.90 per share
- Adjusted net income from continuing operations, net of tax1 of
$1,216 million, or $2.96 per share
- Adjusted EBITDA1 of $1,787 million, up 25%, with a margin of
26.0%, up 170 basis points year over year, and incremental margin
of 37%
- Reported operating cash flow from continuing operations of
$1,377 million and free cash flow from continuing operations1 of
$1,272 million, up 65%
- Returned $295 million of value to shareholders through share
repurchase and dividends
2024 Guidance
- Expect full-year 2024 revenue growth of 5% to 7% and Adjusted
EBITDA1 of $1,915 to $1,975 million, up 7% to 11% over prior
year
- 2024 Adjusted EPS1 expected to be in a range of $3.14 to $3.24,
up 6% to 9% over prior year
Ingersoll Rand Inc. (NYSE: IR), a global provider of
mission-critical flow creation and industrial solutions, reported a
strong finish in the fourth quarter of 2023.
“2023 marked another record year for Ingersoll Rand, and we
expect to continue to unlock new heights in 2024,” said Vicente
Reynal, Chairman and CEO. “Our fourth quarter and full year results
outperformed on revenue, Adjusted EBITDA, Adjusted EPS, and Free
Cash Flow targets, keeping us on track to achieve our 2025 goals
and positioning us well for the aggressive 2027 targets we set at
our Investor Day. Our results support that using IRX, being nimble
and pivoting to high-growth sustainable end markets continue to
enhance the long-term durability of our business.”
Reynal added, “Ingersoll Rand’s success wouldn't be possible
without our more than 18,000 global employees. Our unique ownership
mindset has fueled employee sense of belonging and has led to
numerous accolades, including recognition as a great place to work
across several countries, notable employee learning and development
programs, and several awards for our industry-leading
sustainability program. We are living out the Company’s purpose of
making life better for our people and our planet.”
Fourth Quarter 2023 Segment Review
(All comparisons against the fourth quarter of 2022 unless
otherwise noted.)
Industrial Technologies and Services Segment: broad range
of compressor, vacuum, blower, and air treatment solutions as well
as industrial technologies including power tools and lifting
equipment
- Reported Orders of $1,377 million, up 16%, or up 5%
organic
- Reported Revenues of $1,509 million, up 15%, or up 5%
organic2
- Reported Segment Adjusted EBITDA of $453 million, up 26%
with an incremental margin of 48%
- Reported Segment Adjusted EBITDA Margin of 30.0%, up 260
basis points, fueled by the use of IRX to drive strong operational
execution
- Core industrial end markets saw continued strong organic demand
with orders up 5%, including strong positive momentum across
Americas and Europe. Excluding FX, orders for total compressor
offerings, which represent approximately 65% of the total segment,
were up low double digits.
Precision and Science Technologies Segment: highly
specialized fluid management solutions including precision liquid
and gas pumps and niche compression technologies
- Reported Orders of $293 million, flat, or down 2%
organic
- Reported Revenues of $313 million, up 1%, or flat
organic2
- Reported Segment Adjusted EBITDA of $94 million, up 2%
with an incremental margin of 33%
- Reported Segment Adjusted EBITDA Margin of 30.1%, flat,
driven primarily by improvement in pricing as compared to cost as
well as synergy delivery in recently completed M&A offsetting
expected margin headwinds from volume declines in the life sciences
businesses
- Order declines were primarily driven by the life sciences
businesses, which continue to experience softness in the oxygen
concentration and biopharma end markets. In the industrial
businesses, short cycle orders were positive both sequentially and
year over year driven by demand generation activities, use of IRX,
and continued lead time reductions.
Balance Sheet and Cash Flow
Ingersoll Rand remains in a strong financial position with ample
liquidity of $3.6 billion. On a reported basis, the Company
generated $581 million of cash flow from operating activities from
continuing operations and invested $30 million in capital
expenditures, resulting in free cash flow from continuing
operations2 of $552 million, compared to cash flow from operating
activities from continuing operations of $355 million and free cash
flow from continuing operations2 of $321 million in the prior year
period. Net debt to Adjusted EBITDA2 leverage was 0.6x for the
fourth quarter, which was an improvement of 0.2x as compared to the
prior year.
Consistent with our comprehensive capital allocation strategy
led by M&A, in the fourth quarter Ingersoll Rand deployed $39
million to M&A. In addition, the Company recently closed on the
acquisition of Friulair S.r.l which is recognized globally for its
design and production of dryers, filters, aftercoolers, and
accessories for the treatment of compressed air as well as its
chiller product line. The Company also returned $138 million to
shareholders through $130 million in share repurchases and $8
million through its quarterly dividend payment in the fourth
quarter.
2024 Guidance34
Ingersoll Rand is establishing full-year 2024 guidance based on
expected continued strong demand trends and operational execution
in 2024:
Key Metrics
Phasing
Revenue - Total Ingersoll Rand
5-7%
H1 Growth: 4-6% H2 Growth:
6-8%
Ingersoll Rand (Organic)
2-4%
Industrial Technologies & Services
(Organic)
2-4%
Precision & Science Technologies
(Organic)
2-4%
FX Impact
~1%
H1 Growth: 0-1% H2 Growth:
~1%
M&A3
~$160M
Corporate Costs
(~$160M)
Evenly by quarter
Adjusted EBITDA4
$1,915M - $1,975M (+7% -
+11%)
Adjusted EPS4
$3.14 - $3.24 (+6% -
+9%)
Reconciliations of non-GAAP measures related to full-year 2024
guidance have not been provided due to the unreasonable efforts it
would take to provide such reconciliations due to the high
variability, complexity and uncertainty with respect to forecasting
and quantifying certain amounts that are necessary for such
reconciliations, including net income (loss) and adjustments that
could be made for acquisitions-related expenses, restructuring and
other business transformation costs, gains or losses on foreign
currency exchange and the timing and magnitude of other amounts in
the reconciliation of historic numbers. For the same reasons, we
are unable to address the probable significance of the unavailable
information, which could have a potentially unpredictable, and
potentially significant, impact on our future GAAP financial
results.
Conference Call
Ingersoll Rand will host a live earnings conference call to
discuss the fourth quarter and full year results on Friday,
February 16, 2024 at 8:00 a.m. (Eastern Time). To participate in
the call, please dial 1-888-330-3073, domestically, or
1-646-960-0683, internationally, and use conference ID, 8970061, or
ask to be joined into the Ingersoll Rand call. A real-time audio
webcast of the presentation can be accessed via the Events and
Presentations section of the Ingersoll Rand Investor Relations
website (https://investors.irco.com), where related materials will
be posted prior to the conference call. A replay of the webcast
will be available after conclusion of the conference and can be
accessed on the Ingersoll Rand Investor Relations website.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements related to Ingersoll Rand Inc.’s (the
“Company” or “Ingersoll Rand”) expectations regarding the
performance of its business, its financial results, its liquidity
and capital resources and other non-historical statements. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,”
“forecast,” “outlook,” “target,” “endeavor,” “seek,” “predict,”
“intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,”
“would,” “will be,” “on track to” “will continue,” “will likely
result,” “guidance” or the negative thereof or variations thereon
or similar terminology generally intended to identify
forward-looking statements. All statements other than historical
facts are forward-looking statements.
These forward-looking statements are based on Ingersoll Rand’s
current expectations and are subject to risks and uncertainties,
which may cause actual results to differ materially from these
current expectations. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated
or anticipated by such forward-looking statements. The inclusion of
such statements should not be regarded as a representation that
such plans, estimates or expectations will be achieved. Important
factors that could cause actual results to differ materially from
such plans, estimates or expectations include, among others, (1)
adverse impact on our operations and financial performance due to
natural disaster, catastrophe, global pandemics, geopolitical
tensions, cyber events, or other events outside of our control; (2)
unexpected costs, charges or expenses resulting from completed and
proposed business combinations; (3) uncertainty of the expected
financial performance of the Company; (4) failure to realize the
anticipated benefits of completed and proposed business
combinations; (5) the ability of the Company to implement its
business strategy; (6) difficulties and delays in achieving revenue
and cost synergies; (7) inability of the Company to retain and hire
key personnel; (8) evolving legal, regulatory and tax regimes; (9)
changes in general economic and/or industry specific conditions;
(10) actions by third parties, including government agencies; and
(11) other risk factors detailed in Ingersoll Rand’s most recent
Annual Report on Form 10-K filed with the Securities and Exchange
Commission (the “SEC”), as such factors may be updated from time to
time in its periodic filings with the SEC, which are available on
the SEC’s website at http://www.sec.gov. The foregoing list of
important factors is not exclusive.
Any forward-looking statements speak only as of the date of this
release. Ingersoll Rand undertakes no obligation to update any
forward-looking statements, whether as a result of new information
or developments, future events or otherwise, except as required by
law. Readers are cautioned not to place undue reliance on any of
these forward-looking statements.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial
spirit and ownership mindset, is dedicated to Making Life Better
for our employees, customers, shareholders, and planet. Customers
lean on us for exceptional performance and durability in
mission-critical flow creation and industrial solutions. Supported
by over 80+ respected brands, our products and services excel in
the most complex and harsh conditions. Our employees develop
customers for life through their daily commitment to expertise,
productivity, and efficiency. For more information, visit
www.IRCO.com.
Non-U.S. GAAP Measures of Financial Performance
In addition to consolidated GAAP financial measures, Ingersoll
Rand reviews various non-GAAP financial measures, including
“Organic Revenue Growth,” “Adjusted EBITDA,” “Adjusted Net Income,”
“Adjusted Diluted EPS” and “Free Cash Flow.”
Ingersoll Rand believes Adjusted EBITDA, Adjusted Net Income,
and Adjusted Diluted EPS are helpful supplemental measures to
assist management and investors in evaluating the Company’s
operating results as they exclude certain items that are unusual in
nature or whose fluctuation from period to period do not
necessarily correspond to changes in the operations of Ingersoll
Rand’s business. Ingersoll Rand believes Organic Revenue Growth is
a helpful supplemental measure to assist management and investors
in evaluating the Company’s operating results as it excludes the
impact of foreign currency and acquisitions on revenue growth.
Adjusted EBITDA represents net income before interest, taxes,
depreciation, amortization and certain non-cash, non-recurring and
other adjustment items. Adjusted Net Income is defined as net
income including interest, depreciation and amortization of
non-acquisition related intangible assets and excluding other items
used to calculate Adjusted EBITDA and further adjusted for the tax
effect of these exclusions. Organic Revenue Growth is defined as As
Reported Revenue growth less the impacts of Foreign Currency and
Acquisitions. Ingersoll Rand believes that the adjustments applied
in presenting Adjusted EBITDA and Adjusted Net Income are
appropriate to provide additional information to investors about
certain material non-cash items and about non-recurring items that
the Company does not expect to continue at the same level in the
future. Adjusted Diluted EPS is defined as Adjusted Net Income
divided by Adjusted Diluted Average Shares Outstanding.
Incrementals/Decrementals are defined as the change in Adjusted
EBITDA versus the prior year period divided by the change in
revenue versus the prior year period.
Ingersoll Rand uses Free Cash Flow to review the liquidity of
its operations. Ingersoll Rand measures Free Cash Flow as cash
flows from operating activities less capital expenditures.
Ingersoll Rand believes Free Cash Flow is a useful supplemental
financial measures for management and investors in assessing the
Company’s ability to pursue business opportunities and investments
and to service its debt. Free Cash Flow is not a measure of our
liquidity under GAAP and should not be considered as an alternative
to cash flows from operating activities.
Management and Ingersoll Rand’s board of directors regularly use
these measures as tools in evaluating the Company’s operating and
financial performance and in establishing discretionary annual
compensation. Such measures are provided in addition to, and should
not be considered to be a substitute for, or superior to, the
comparable measures under GAAP. In addition, Ingersoll Rand
believes that Organic Revenue Growth, Adjusted EBITDA, Adjusted Net
Income, Adjusted Diluted EPS, Incrementals/Decrementals and Free
Cash Flow are frequently used by investors and other interested
parties in the evaluation of issuers, many of which also present
Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and
Free Cash Flow when reporting their results in an effort to
facilitate an understanding of their operating and financial
results and liquidity.
Organic Revenue Growth, Adjusted EBITDA, Adjusted Net Income,
Adjusted Diluted EPS and Free Cash Flow should not be considered as
alternatives to revenue growth, net income, diluted earnings per
share or any other performance measure derived in accordance with
GAAP, or as alternatives to cash flow from operating activities as
a measure of our liquidity. Organic Revenue Growth, Adjusted
EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Free Cash
Flow have limitations as analytical tools, and you should not
consider such measures either in isolation or as substitutes for
analyzing Ingersoll Rand’s results as reported under GAAP.
Reconciliations of Organic Revenue Growth, Adjusted EBITDA,
Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow to
their most comparable U.S. GAAP financial metrics for historical
periods are presented in the tables below.
Reconciliations of non-GAAP measures related to full year 2024
guidance have not been provided due to the unreasonable efforts it
would take to provide such reconciliations due to the high
variability, complexity and uncertainty with respect to forecasting
and quantifying certain amounts that are necessary for such
reconciliations, including net income (loss) and adjustments that
could be made for acquisitions-related expenses, restructuring and
other business transformation costs, gains or losses on foreign
currency exchange and the timing and magnitude of other amounts in
the reconciliation of historic numbers. For the same reasons, we
are unable to address the probable significance of the unavailable
information, which could have a potentially unpredictable, and
potentially significant, impact on our future GAAP financial
results.
__________________ 1 Non-GAAP measure (definitions and/or
reconciliations in appendix). 2 Non-GAAP measure (definitions
and/or reconciliations in appendix).
3 Reflects all completed and closed
M&A as of February 1, 2024.
4 Non-GAAP measure (definitions and/or
reconciliations in appendix).
INGERSOLL RAND INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited; in millions, except
per share amounts)
For the Three Month Period
Ended December 31,
For the Twelve Month Period
Ended December 31,
2023
2022
2023
2022
Revenues
$
1,821.4
$
1,623.7
$
6,876.1
$
5,916.3
Cost of sales
1,040.2
969.3
3,993.9
3,590.7
Gross Profit
781.2
654.4
2,882.2
2,325.6
Selling and administrative expenses
330.8
276.0
1,272.7
1,095.8
Amortization of intangible assets
93.2
84.0
367.5
347.6
Other operating expense, net
24.0
21.5
77.7
64.9
Operating Income
333.2
272.9
1,164.3
817.3
Interest expense
37.4
34.4
156.7
103.2
Loss on extinguishment of debt
—
—
13.5
1.1
Other income, net
(11.6
)
(7.4
)
(37.0
)
(29.2
)
Income from Continuing Operations
Before Income Taxes
307.4
245.9
1,031.1
742.2
Provision for income taxes
71.1
45.0
240.0
149.6
Income (loss) on equity method
investments
(4.8
)
3.2
(6.0
)
0.7
Income from Continuing
Operations
231.5
204.1
785.1
593.3
Income from discontinued operations, net
of tax
—
14.6
—
15.2
Net Income
231.5
218.7
785.1
608.5
Less: Net income attributable to
noncontrolling interests
1.7
1.3
6.4
3.8
Net Income Attributable to Ingersoll
Rand Inc.
$
229.8
$
217.4
$
778.7
$
604.7
Amounts attributable to Ingersoll Rand
Inc. common stockholders:
Income from continuing operations, net of
tax
$
229.8
$
202.8
$
778.7
$
589.5
Income from discontinued operations, net
of tax
—
14.6
—
15.2
Net income attributable to Ingersoll Rand
Inc.
$
229.8
$
217.4
$
778.7
$
604.7
Basic earnings per share of common
stock:
Earnings from continuing operations
$
0.57
$
0.50
$
1.92
$
1.45
Earnings from discontinued operations
—
0.04
—
0.04
Net earnings
0.57
0.54
1.92
1.49
Diluted earnings per share of common
stock:
Earnings from continuing operations
$
0.56
$
0.50
$
1.90
$
1.44
Earnings from discontinued operations
—
0.04
—
0.04
Net earnings
0.56
0.53
1.90
1.47
INGERSOLL RAND INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(Unaudited; in millions, except
share amounts)
December 31, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
1,595.5
$
1,613.0
Accounts receivable, net of allowance for
credit losses of $53.8 and $47.2, respectively
1,234.2
1,122.0
Inventories
1,001.1
1,025.4
Other current assets
219.6
206.9
Total current assets
4,050.4
3,967.3
Property, plant and equipment, net of
accumulated depreciation of $500.8 and $417.4, respectively
711.4
624.4
Goodwill
6,609.7
6,064.2
Other intangible assets, net
3,611.1
3,578.6
Deferred tax assets
31.5
22.3
Other assets
549.4
509.1
Total assets
$
15,563.5
$
14,765.9
Liabilities and Stockholders'
Equity
Current liabilities:
Short-term borrowings and current
maturities of long-term debt
$
30.6
$
36.5
Accounts payable
801.2
778.7
Accrued liabilities
995.5
858.8
Total current liabilities
1,827.3
1,674.0
Long-term debt, less current
maturities
2,693.0
2,716.1
Pensions and other postretirement
benefits
150.0
147.2
Deferred income tax liabilities
612.6
610.6
Other liabilities
433.9
360.8
Total liabilities
$
5,716.8
$
5,508.7
Stockholders' equity:
Common stock, $0.01 par value;
1,000,000,000 shares authorized; 428,589,061 and 426,327,805 shares
issued as of December 31, 2023 and 2022, respectively
4.3
4.3
Capital in excess of par value
9,550.8
9,476.8
Retained earnings
1,697.2
950.9
Accumulated other comprehensive loss
(227.6
)
(251.7
)
Treasury stock at cost; 25,241,667 and
21,210,095 shares as of December 31, 2023 and 2022,
respectively
(1,240.9
)
(984.5
)
Total Ingersoll Rand stockholders'
equity
$
9,783.8
$
9,195.8
Noncontrolling interests
62.9
61.4
Total equity
$
9,846.7
$
9,257.2
Total liabilities and equity
$
15,563.5
$
14,765.9
INGERSOLL RAND INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited; in millions)
Twelve Month Period Ended
December 31,
2023
2022
Cash Flows From Operating Activities
From Continuing Operations:
Net income
$
785.1
$
608.5
Income from discontinued operations, net
of tax
—
15.2
Income from continuing operations
785.1
593.3
Adjustments to reconcile net income from
continuing operations to net cash provided by operating activities
from continuing operations:
Amortization of intangible assets
367.5
347.6
Depreciation
91.6
85.2
Non-cash restructuring charges
2.7
6.0
Stock-based compensation expense
51.9
78.9
Loss (income) on equity method
investments
6.0
(0.7
)
Foreign currency transaction losses
(gains), net
5.1
(5.9
)
Non-cash adjustments to carrying value of
LIFO inventories
12.0
36.1
Loss on extinguishment of debt
13.5
1.1
Deferred income taxes
(76.9
)
(85.8
)
Other non-cash adjustments
8.3
7.0
Changes in assets and liabilities:
Receivables
(48.6
)
(195.2
)
Inventories
117.3
(225.6
)
Accounts payable
(23.9
)
120.4
Accrued liabilities
94.8
101.2
Other assets and liabilities, net
(29.0
)
1.8
Net cash provided by operating activities
from continuing operations
1,377.4
865.4
Cash Flows From Investing Activities
From Continuing Operations:
Capital expenditures
(105.4
)
(94.6
)
Net cash paid in acquisitions
(963.0
)
(246.8
)
Disposals of property, plant and
equipment
7.6
—
Other investing
0.3
4.1
Net cash used in investing activities from
continuing operations
(1,060.5
)
(337.3
)
Cash Flows From Financing Activities
From Continuing Operations:
Principal payments on long-term debt
(1,518.0
)
(655.6
)
Proceeds from long-term debt
1,490.4
—
Purchases of treasury stock
(263.0
)
(261.1
)
Cash dividends on common stock
(32.4
)
(32.4
)
Proceeds from stock option exercises
30.3
19.3
Payments of interest rate cap premiums
—
(13.4
)
Payments of deferred and contingent
acquisition consideration
(17.5
)
(4.6
)
Payments of debt issuance costs
(18.5
)
—
Other financing
(8.8
)
(6.2
)
Net cash used in financing activities from
continuing operations
(337.5
)
(954.0
)
Cash Flows From Discontinued
Operations:
Net cash used in operating activities
—
(5.1
)
Net cash provided by investing
activities
—
4.4
Net cash used in discontinued
operations
—
(0.7
)
Effect of exchange rate changes on cash
and cash equivalents
3.1
(70.0
)
Net increase (decrease) in cash and cash
equivalents
(17.5
)
(496.6
)
Cash and cash equivalents, beginning of
year
1,613.0
2,109.6
Cash and cash equivalents, end of year
$
1,595.5
$
1,613.0
INGERSOLL RAND INC. AND
SUBSIDIARIES
UNAUDITED ADJUSTED FINANCIAL
INFORMATION
(Dollars in millions)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2023
2022
2023
2022
Revenues
$
1,821.4
$
1,623.7
$
6,876.1
$
5,916.3
Adjusted EBITDA
$
500.5
$
420.2
$
1,786.8
$
1,434.8
Adjusted EBITDA Margin
27.5
%
25.9
%
26.0
%
24.3
%
INGERSOLL RAND INC. AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME
TO ADJUSTED NET INCOME
(Unaudited; in millions)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2023
2022
2023
2022
Net Income
$
231.5
$
218.7
$
785.1
$
608.5
Less: Income (Loss) from Discontinued
Operations
—
(0.3
)
—
0.5
Less: Income Tax Benefit from Discontinued
Operations
—
14.9
—
14.7
Income from Continuing
Operations
231.5
204.1
785.1
593.3
Plus:
Provision for income taxes
71.1
45.0
240.0
149.6
Amortization of acquisition related
intangible assets
90.8
80.6
357.5
328.8
Restructuring and related business
transformation costs
10.5
1.4
22.9
32.3
Acquisition related expenses and non-cash
charges
17.3
13.7
63.9
40.7
Stock-based compensation
16.7
16.3
51.9
85.6
Foreign currency transaction losses
(gains), net
4.1
6.4
5.1
(5.9
)
Loss (income) on equity method
investments
4.8
(3.2
)
6.0
(0.7
)
Loss on extinguishment of debt
—
—
13.5
1.1
Adjustments to LIFO inventories
(2.0
)
3.1
12.0
36.1
Cybersecurity incident costs
—
—
2.3
—
Gain on settlement of post-acquisition
contingencies
—
—
—
(6.2
)
Other adjustments
(7.6
)
(5.0
)
(28.0
)
(23.7
)
Minus:
Income tax provision, as adjusted
92.7
72.5
345.2
267.3
Interest income on cash and cash
equivalents
(10.1
)
(5.0
)
(28.8
)
(8.0
)
Adjusted Net Income
$
354.6
$
294.9
$
1,215.8
$
971.7
INGERSOLL RAND INC. AND
SUBSIDIARIES
RECONCILIATION OF DILUTED NET
INCOME PER SHARE TO ADJUSTED DILUTED NET INCOME PER SHARE FROM
CONTINUING OPERATIONS
(Unaudited; in millions, except
per share amounts)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2023
2022
2023
2022
Diluted Net Income Per Share (As
Reported)1
$
0.56
$
0.53
$
1.90
$
1.47
Less: Diluted Net Income Per Share from
Discontinued Operations (As Reported)1
—
0.04
—
0.04
Diluted Net Income Per Share from
Continuing Operations (As Reported)1
0.56
0.50
1.90
1.44
Plus:
Provision for income taxes
0.18
0.11
0.59
0.36
Amortization of acquisition related
intangible assets
0.22
0.20
0.87
0.80
Restructuring and related business
transformation costs
0.03
—
0.06
0.08
Acquisition related expenses and non-cash
charges
0.04
0.03
0.16
0.10
Stock-based compensation
0.04
0.04
0.13
0.21
Foreign currency transaction losses
(gains), net
0.01
0.02
0.01
(0.01
)
Loss (income) on equity method
investments
0.01
(0.01
)
0.01
—
Loss on extinguishment of debt
—
—
0.03
—
Adjustments to LIFO inventories
—
0.01
0.03
0.09
Cybersecurity incident costs
—
—
0.01
—
Gain on settlement of post-acquisition
contingencies
—
—
—
(0.02
)
Other adjustments
(0.02
)
(0.01
)
(0.07
)
(0.06
)
Minus:
Income tax provision, as adjusted
0.23
0.18
0.84
0.65
Interest income on cash and cash
equivalents
(0.02
)
(0.01
)
(0.07
)
(0.02
)
Adjusted Diluted Net Income Per Share
from Continuing Operations2
$
0.86
$
0.72
$
2.96
$
2.36
Average shares outstanding:
Basic, as reported
404.2
405.0
404.8
405.3
Diluted, as reported
408.2
409.3
409.0
410.2
Adjusted diluted2
408.2
409.3
409.0
410.2
1 Basic and diluted earnings (loss) per
share (as reported) are calculated by dividing net income (loss)
attributable to Ingersoll Rand Inc. by the basic and diluted
average shares outstanding for the respective periods.
2 Adjusted diluted share count and adjusted diluted earnings per
share include incremental dilutive shares, using the treasury stock
method, which are added to average shares outstanding.
INGERSOLL RAND INC. AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME
TO ADJUSTED EBITDA AND ADJUSTED INCOME FROM CONTINUING OPERATIONS,
NET OF TAX AND CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS TO FREE CASH FLOW
(Unaudited; in millions)
For the Three Month Period
Ended December 31,
For the Twelve Month Period
Ended December 31,
2023
2022
2023
2022
Net Income
$
231.5
$
218.7
$
785.1
$
608.5
Less: Income (loss) from discontinued
operations
—
(0.3
)
—
0.5
Less: Income tax benefit from discontinued
operations
—
14.9
—
14.7
Income from Continuing Operations, Net
of Tax
231.5
204.1
785.1
593.3
Plus:
Interest expense
37.4
34.4
156.7
103.2
Provision for income taxes
71.1
45.0
240.0
149.6
Depreciation expense
23.5
20.0
87.9
81.8
Amortization expense
93.2
84.0
367.5
347.6
Restructuring and related business
transformation costs
10.5
1.4
22.9
32.3
Acquisition related expenses and non-cash
charges
17.3
13.7
63.9
40.7
Stock-based compensation
16.7
16.3
51.9
85.6
Foreign currency transaction losses
(gains), net
4.1
6.4
5.1
(5.9
)
Loss (income) on equity method
investments
4.8
(3.2
)
6.0
(0.7
)
Loss on extinguishment of debt
—
—
13.5
1.1
Adjustments to LIFO inventories
(2.0
)
3.1
12.0
36.1
Cybersecurity incident costs
—
—
2.3
—
Gain on settlement of post-acquisition
contingencies
—
—
—
(6.2
)
Other adjustments
(7.6
)
(5.0
)
(28.0
)
(23.7
)
Adjusted EBITDA
$
500.5
$
420.2
$
1,786.8
$
1,434.8
Minus:
Interest expense
37.4
34.4
156.7
103.2
Income tax provision, as adjusted
92.7
72.5
345.2
267.3
Depreciation expense
23.5
20.0
87.9
81.8
Amortization of non-acquisition related
intangible assets
2.4
3.4
10.0
18.8
Interest income on cash and cash
equivalents
(10.1
)
(5.0
)
(28.8
)
(8.0
)
Adjusted Income from Continuing
Operations, Net of Tax
$
354.6
$
294.9
$
1,215.8
$
971.7
Free Cash Flow from Continuing
Operations:
Cash Flows from Operating Activities
from Continuing Operations
581.4
354.8
1,377.4
865.4
Minus:
Capital expenditures
29.6
33.5
105.4
94.6
Free Cash Flow
$
551.8
$
321.3
$
1,272.0
$
770.8
INGERSOLL RAND INC. AND
SUBSIDIARIES
RECONCILIATION OF SEGMENT
ADJUSTED EBITDA TO NET INCOME
(Unaudited; in millions)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2023
2022
2023
2022
Orders
Industrial Technologies and Services
$
1,377.4
$
1,191.5
$
5,618.9
$
5,120.1
Precision and Science Technologies
293.0
292.9
1,203.5
1,247.5
Total Orders
$
1,670.4
$
1,484.4
$
6,822.4
$
6,367.6
Revenue
Industrial Technologies and Services
$
1,508.8
$
1,315.4
$
5,632.8
$
4,705.1
Precision and Science Technologies
312.6
308.3
1,243.3
1,211.2
Total Revenue
$
1,821.4
$
1,623.7
$
6,876.1
$
5,916.3
Segment Adjusted EBITDA
Industrial Technologies and Services
$
453.3
$
360.6
$
1,587.3
$
1,214.0
Precision and Science Technologies
94.1
92.7
372.8
347.5
Total Segment Adjusted EBITDA
$
547.4
$
453.3
$
1,960.1
$
1,561.5
Less items to reconcile Segment Adjusted
EBITDA to Income from Continuing Operations Before Income
Taxes:
Corporate expenses not allocated to
segments
$
46.9
$
33.1
$
173.3
$
126.7
Interest expense
37.4
34.4
156.7
103.2
Depreciation and amortization expense
116.7
104.0
455.4
429.4
Restructuring and related business
transformation costs
10.5
1.4
22.9
32.3
Acquisition related expenses and non-cash
charges
17.3
13.7
63.9
40.7
Stock-based compensation
16.7
16.3
51.9
85.6
Foreign currency transaction losses
(gains), net
(8.4
)
6.4
5.1
(5.9
)
Loss on extinguishment of debt
12.5
—
13.5
1.1
Adjustments to LIFO inventories
(2.0
)
3.1
12.0
36.1
Cybersecurity incident costs
—
—
2.3
—
Gain on settlement of post-acquisition
contingencies
—
—
—
(6.2
)
Other adjustments
(7.6
)
(5.0
)
(28.0
)
(23.7
)
Income from Continuing Operations
Before Income Taxes
307.4
245.9
1,031.1
742.2
Provision for income taxes
71.1
45.0
240.0
149.6
Income (loss) on equity method
investments
(4.8
)
3.2
(6.0
)
0.7
Income from Continuing
Operations
231.5
204.1
785.1
593.3
Income from discontinued operations, net
of tax
—
14.6
—
15.2
Net Income
$
231.5
$
218.7
$
785.1
$
608.5
INGERSOLL RAND INC. AND
SUBSIDIARIES
ORDERS AND REVENUE
GROWTH/(DECLINE) BY SEGMENT(1)
(Unaudited)
Three Month Period Ended
December 31, 2023
Orders
Revenue
Ingersoll Rand
Organic growth
3.4
%
3.8
%
Impact of foreign currency
1.7
%
1.7
%
Impact of acquisitions
7.5
%
6.7
%
Total adjusted orders and revenue
growth
12.6
%
12.2
%
Industrial Technologies &
Services
Organic growth
4.6
%
4.8
%
Impact of foreign currency
1.6
%
1.6
%
Impact of acquisitions
9.4
%
8.3
%
Total adjusted orders and revenue
growth
15.6
%
14.7
%
Precision & Science
Technologies
Organic decline
(1.6
%)
(0.4
%)
Impact of foreign currency
1.7
%
1.8
%
Impact of acquisitions
—
%
—
%
Total adjusted orders and revenue
growth
0.1
%
1.4
%
(1)
Organic growth/(decline), impact of
foreign currency, and impact of acquisitions are non-GAAP measures.
References to “impact of acquisitions” refer to GAAP sales from
acquired businesses recorded prior to the first anniversary of the
acquisition. The portion of GAAP revenue attributable to currency
translation is calculated as the difference between (a) the
period-to-period change in revenue (excluding acquisition sales)
and (b) the period-to-period change in revenue (excluding
acquisition sales) after applying prior year foreign exchange rates
to the current year period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240215339613/en/
Investor Relations: Matthew Fort
matthew.fort@irco.com
Media: Sara Hassell Sara.Hassell@irco.com
Grafico Azioni Ingersoll Rand (NYSE:IR)
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