Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Gardner Denver — Q4 2018 Earnings Presentation
18 slides from Ingersoll Rand's earnings presentation, Feb 19, 2019
Slide 1: Q4 and Full Year 2018 Earnings Presentation
Gardner Denver Q4 and Full Year 2018 Earnings Presentation February 19, 2019
Slide 2: Replay Information
Replay Information ▪ Dial toll-free: +1.877.344.7529 ▪ International: +1.412.317.0088 ▪ Conference ID: #10128510 ▪ Log on to: http://investors.gardnerdenver.com 2
Slide 3: Disclaimer
Disclaimer Forward-Looking Statements During the course of this presentation, we may make “forward-looking statements” within the meaning of the US federal securities laws. In fact, all statements made during this presentation other than statements of historical fact are forward-looking statements.
Slide 4: Agenda
Agenda ▪ Company Highlights ▪ Segment Highlights ▪ Financial Performance ▪ Guidance ▪ Q&A 4
Slide 5: Highlights
Highlights Q4’181 Revenue of $713M, up 7%, and up 10% excluding the impact of FX Adjusted EPS of $0.57, up 19%2 Adjusted EBITDA of $190M, up 10%, and margin of 26.6%, a 60 bps improvement Free cash flow generation of $126M, up $30M, including 570 bps improvement in working capital as % of
Slide 6: Our Strategy
Our Strategy Engagement initiative driving Deploy Talent 570 bps improvement in Net Operating Working Capital as % of revenues in 2018 Balanced execution of growth Expand Margins and operational initiatives driving record Adj EBITDA margin of 26.6% in Q4’18 Accelerate FY’18 revenue growth of 13% wit
Slide 7: Industrials Segment – Q4 & FY Highlights
Industrials Segment – Q4 & FY Highlights (Dollars in millions) Q4 2018 FY 2018 As YOY Ex-FX YOY As YOY Ex-FX YOY Reported Change Change Reported Change Change Revenue $338 8.3% 11.2% Revenue $1,303 15.3% 13.3% Adj EBITDA $78 13.3% 16.1% Adj EBITDA $288 18.7% 16.3% Adj EBITDA Margin 23.2% 110 bps Adj
Slide 8: Energy Segment – Q4 & FY Highlights
Energy Segment – Q4 & FY Highlights (Dollars in millions) Q4 2018 FY 2018 As YOY Ex-FX YOY As YOY Ex-FX YOY Reported Change Change Reported Change Change Revenue $307 4.0% 5.9% Revenue $1,121 10.5% 10.4% Adj EBITDA $95 (1.7)% 0.1% Adj EBITDA $338 14.1% 14.4% Adj EBITDA Margin 31.0% (180) bps Adj EBI
Slide 9: Medical Segment – Q4 & FY Highlights
Medical Segment – Q4 & FY Highlights (Dollars in millions) Q4 2018 FY 2018 As YOY Ex-FX YOY As YOY Ex-FX YOY Reported Change Change Reported Change Change Revenue $68 17.0% 19.2% Revenue $265 15.3% 13.1% Adj EBITDA $21 32.9% 35.5% Adj EBITDA $75 20.2% 17.8% Adj EBITDA Margin 30.2% 360 bps Adj EBITDA
Slide 10: Q4 2018 Financial Performance
Q4 2018 Financial Performance (Dollars in millions, excl. EPS) Revenue Adjusted EBITDA Adjusted EPS1 Up 7% Up 10% Up 19% Margin Up 60 bps $713 $190 $0.57 $665 $173 $0.48 26.6% 26.0% Margin Margin Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 1 Adjusted EPS is defined as adjusted net income divided
Slide 11: FY 2018 Financial Performance
FY 2018 Financial Performance (Dollars in millions, excl. EPS) Revenue Adjusted EBITDA Adjusted EPS1 Up 13% Up 21% Up 43% Margin Up 170 bps $2,690 $1.89 $682 $2,375 $562 $1.32 25.3% Margin 23.6% Margin 2017 2018 2017 2018 2017 2018 1 Adjusted EPS is defined as adjusted net income divided by adjusted
Slide 12: FY 2018 Financial Performance
FY 2018 Financial Performance (Dollars in millions) Working Capital Free Cash Flow1 Leverage (Op. Working Capital as % of LTM Sales) (Net Debt / LTM Adjusted EBITDA) Improved 570 bps Up $249M Improved 0.8x (Q4’18: Up $30M) Over Prior Year $392 4.2x 29.7% 2.9x 2.1x 24.0% $144 2017 2018 2017 2018 Q1'1
Slide 13: 2019 Guidance – Revenue & EBITDA
2019 Guidance – Revenue & EBITDA Revenue Adjusted Phasing Growth1 EBITDA Revenue Growth1 Excluding impact of FX: Industrials up MSD Medical up MSD Mid and Downstream Energy up MSD Upstream Energy down LDD to HSD Corporate -- Total Gardner Denver ~$710M - $740M H1: up LSD to MSD up LSD to MSD (Before
Slide 14: 2019 Guidance – Other Key Metrics
2019 Guidance – Other Key Metrics Capital Expenditures ~$50M - $60M Tax Rate 24% to 26% Year End Net Debt Leverage1 1.5x to 1.7x Average Shares Outstanding2 ~208M 1 Excluding the impact of any potential future acquisitions or share repurchases 2 Represents the full year expectation of weighted avera
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
Reconciliation of Net Income and Earnings per Share to Adjusted Net Income and Adjusted Earnings per Share GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME AND EARNINGS PER SHARE TO ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (Dollars in millions, except per share
Slide 17: Reconciliation of Net Income to Adjusted EBITDA and CFOA to Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME AND CASH FLOWS - OPERATING ACTIVITIES TO FREE CASH FLOW (Dollars in millions) (Una
Slide 18: Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes
Reconciliation of Segment Adjusted EBITDA to Income/(Loss) Before Income Taxes GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO INCOME (LOSS) BEFORE INCOME TAXES (Dollars in millions) (Unaudited) For the Three For the Month Period Ended Year Ended December