Wabtec Corporation (NYSE: WAB) today reported strong sales and EPS
growth for the 2018 third quarter and affirmed its full-year EPS
guidance.
2018 Third Quarter Consolidated Results
- Sales were $1.08 billion, 13 percent higher than the year-ago
quarter. Compared to the year-ago quarter, organic sales
increased $107 million and acquisitions increased sales $32
million, while changes in foreign currency exchange rates decreased
sales by $20 million.
- Income from operations was $125 million including expenses of
$11 million related to the proposed GE Transportation merger,
restructuring actions and a tax law change in India.
Excluding those items, income from operations was $136 million, or
12.6 percent of sales (see reconciliation table). SG&A
expenses increased mainly due to those expenses and
acquisitions.
- Net interest expense was $24 million, including $3.2 million
related to the proposed GE Transportation merger.
- Income tax expense was $17 million for an effective tax rate of
16.2 percent. The quarter included a benefit of $7 million
from the reduction of the estimated transition tax charge that was
initially recorded in the fourth quarter of 2017 due to the 2017
U.S. tax reform act.
- GAAP earnings per diluted share were 91 cents including
expenses for the proposed GE Transportation merger, restructuring
actions and the refinements of the effects of tax law changes in
the U.S. and India, all of which reduced EPS by a net of 4
cents. Excluding those items, adjusted EPS was 95
cents. GAAP EPS in the 2017 third quarter was 70 cents
including expenses of 18 cents per diluted share for contract
adjustments and restructuring actions.
2018 Third Quarter Segment Results
- In the Transit segment, sales increased 11 percent and income
from operations increased 28 percent compared to the year-ago third
quarter. Transit sales increased by $68 million; the increase
resulted from organic sales growth of $61 million and sales from
acquisitions of $21 million, with changes in foreign currency
exchange rates decreasing sales by $14 million. Income from
operations was $61 million, or 8.9 percent of sales, including
expenses of $2.3 million for restructuring and the India tax law
change. Lower-margin contracts in the U.K. also had a
negative effect on income from operations. The year-ago
quarter included expenses of $18 million for contract adjustments
and restructuring actions.
- In the Freight segment, sales increased 15 percent and income
from operations increased 29 percent. Freight sales increased
by $51 million; the increase resulted from organic sales growth of
$46 million and sales from acquisitions of $11 million, with
changes in foreign currency exchange rates decreasing sales by $6
million. Income from operations was $79 million, or 20.3
percent of sales, including restructuring expenses of $700,000. The
year-ago quarter included expenses of $7 million for contract
adjustments and restructuring actions.
Cash Flow and Balance Sheet Summary
- Cash used in operations was $30 million for the third quarter
due mainly to higher working capital, including for lower-margin
contracts in the U.K. During the quarter, the company
incurred $10 million of cash costs for the proposed GE
Transportation merger and other restructuring actions, and $24
million of cash tax payments related to the 2017 U.S. tax law
change.
- At Sept. 30, the company had cash of $411 million, restricted
cash of $1.7 billion and debt of $3.9 billion.
- During the quarter, Wabtec completed the financing for its
proposed merger with GE Transportation. The company issued
$500 million of Floating Rate Senior Notes due 2021, $750 million
of 4.15% Senior Notes due 2024, and $1.25 billion of 4.7% Senior
Notes due 2028. Wabtec intends to use the net proceeds from
these notes, together with borrowings under its credit agreement
and cash on hand, to pay the cash purchase price for the GE
Transportation transaction and for related fees and expenses.
Backlog and New Orders
- At Sept. 30, the company’s total, multi-year backlog was $4.6
billion, slightly lower than at the end of the second
quarter. The company’s 12-month backlog, a subset of the
total, was $2.2 billion.
- Recent new orders included projects in all major markets and
product categories around the world, including train control
hardware, projects and services; transit components in Australia,
China, Germany, Israel, Italy and Switzerland; and multi-year
orders for freight car components in the U.S.
2018 Full-Year GuidanceBased on its
year-to-date results and full-year forecast, Wabtec expects 2018
revenues to be about $4.35 billion and EPS to be about $3.85
excluding estimated costs related to the proposed GE Transportation
merger, expenses for restructuring and the effects of tax law
changes. The company’s adjusted operating margin target for
the full year is about 13 percent. For the year, Wabtec expects
cash flow from operations to be about $200 million.Raymond T.
Betler, Wabtec’s president and chief executive officer, said:
“With a solid backlog and positive trends in our markets, we expect
to finish the year with a strong fourth quarter, both in earnings
and cash flow, to position the company for growth in 2019.
Our freight business continues to show strong growth in revenues
and income from operations, with good market indicators for the
foreseeable future. In transit, we have a near-record backlog
and strong bidding activity, as we take actions to drive
sustainable profitability improvements in the business. We
are making progress toward combining with GE Transportation and are
excited about our strategic opportunities to accelerate innovation
for our customers, while delivering improved earnings, margins and
cash flow for our shareholders.”
Update on GE Transportation Merger In May 2018,
Wabtec entered into a definitive agreement to combine with GE
Transportation, a unit of General Electric Company (NYSE: GE). The
combination will make Wabtec a Fortune 500, global transportation
leader in rail equipment, software and services, with operations in
more than 50 countries.In connection with the proposed combination,
Wabtec will hold a special meeting of stockholders on Nov. 14, 2018
to consider and vote on proposals to amend its charter to increase
the number of authorized shares of Wabtec common stock and to
approve the issuance of Wabtec common stock to effect the
merger. The special meeting will be held at 9 a.m. Eastern
time at The Duquesne Club, 325 Sixth Avenue, Pittsburgh, PA 15222.
Wabtec’s stockholders of record at the close of business on Oct.
11, 2018, are entitled to receive notice of, and to vote at, the
special meeting. Additional information related to the charter
amendment, the share issuance, the proposed combination and the
special meeting is included in the definitive proxy statement dated
and filed with the SEC on Oct. 12, 2018. The definitive proxy
statement was first mailed to Wabtec’s stockholders on or about
Oct. 12, 2018.The proposed combination with GE Transportation is
expected to be completed by early 2019, subject to customary
closing conditions. It is possible that the proposed
combination could be completed at an earlier time if the closing
conditions are satisfied sooner.Wabtec Corporation (www.wabtec.com)
is a leading global provider of equipment, systems and value-added
services for transit and freight rail. Through its
subsidiaries, Wabtec manufactures a range of products for
locomotives, freight cars and passenger transit vehicles. The
company also builds new switcher and commuter locomotives, and
provides aftermarket services. The company has facilities located
throughout the world.
Wabtec will host a call with analysts and investors at
10 a.m., eastern time, today. To listen via webcast, go to
www.wabtec.com and click on “Webcasts” in the “Investor Relations”
section.
Additional Information and Where to Find ItIn
connection with the proposed transaction between General Electric
Company (“GE”) and Wabtec, Transportation Systems Holdings Inc., a
wholly owned subsidiary of GE created for the transaction
(“SpinCo”), has filed with the SEC a registration statement on Form
10 and Wabtec has filed with the SEC a registration statement on
Form S-4 and a definitive proxy statement on Schedule 14A. If the
transaction is effected via an exchange offer, GE will file with
the SEC a Schedule TO with respect thereto and a registration
statement on Form S-4/S-1 containing a prospectus. This
communication is not a substitute for any definitive proxy
statement, registration statement, proxy statement/prospectus or
other documents GE, Wabtec and/or SpinCo may file with the SEC in
connection with the proposed transaction. INVESTORS AND SECURITY
HOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE
DOCUMENTS WHEN THEY BECOME AVAILABLE, ANY AMENDMENTS OR SUPPLEMENTS
TO THESE DOCUMENTS, AND OTHER DOCUMENTS FILED BY GE, WABTEC OR
SPINCO WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION,
BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION.
Investors and security holders will be able to obtain free copies
of these materials and other documents filed with the SEC by GE,
Wabtec and/or SpinCo through the website maintained by the SEC at
www.sec.gov. Investors and security holders will also be able to
obtain free copies of the documents filed by GE, Wabtec and/or
SpinCo with the SEC from the respective companies by directing a
written request to GE and/or SpinCo at General Electric Company, 41
Farnsworth Street, Boston, Massachusetts 02210 or by calling
617-443-3400, or to Wabtec at Wabtec Corporation, 1001 Air Brake
Avenue, Wilmerding, PA 15148 or by calling 412-825-1543.No
Offer or SolicitationThis communication is for
informational purposes only and not intended to and does not
constitute an offer to subscribe for, buy or sell, the solicitation
of an offer to subscribe for, buy or sell, or an invitation to
subscribe for, buy or sell, any securities or the solicitation of
any vote or approval in any jurisdiction pursuant to or in
connection with the proposed transaction or otherwise, nor shall
there be any sale, issuance or transfer of securities in any
jurisdiction in contravention of applicable law. No offer of
securities shall be made except by means of a prospectus meeting
the requirements of Section 10 of the Securities Act of 1933, as
amended, and otherwise in accordance with applicable
law.Participants in the SolicitationThis
communication is not a solicitation of a proxy from any investor or
security holder. GE, Wabtec, SpinCo, their respective directors,
executive officers and other members of their management and
employees may be deemed to be participants in the solicitation of
proxies from shareholders of Wabtec in connection with the proposed
transaction. Information regarding the persons who may, under the
rules of the SEC, be deemed participants in the solicitation of
proxies in connection with the proposed transaction, including a
description of their direct or indirect interests, by security
holdings or otherwise, will be set forth in the relevant materials
when filed with the SEC. Information regarding the directors and
executive officers of GE is contained in GE’s proxy statement for
its 2018 annual meeting of shareholders, filed with the SEC on
March 12, 2018, its Annual Report on Form 10-K for the year ended
December 31, 2017, which was filed with the SEC on February 23,
2018, its Quarterly Report on Form 10-Q for the quarter ended June
30, 2018, which was filed with the SEC on July 27, 2018 and certain
of its Current Reports filed on Form 8-K. Information regarding the
directors and executive officers of Wabtec is contained in Wabtec’s
proxy statement for its 2018 annual meeting of shareholders, filed
with the SEC on April 5, 2018, its definitive proxy statement for
its special meeting of shareholders, which was filed with the SEC
on October 12, 2018, its Annual Report on Form 10-K for the year
ended December 31, 2017, which was filed with the SEC on February
26, 2018, its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018 which was filed with the SEC on July 31, 2018 and
certain of its Current Reports filed on Form 8-K. These documents
can be obtained free of charge from the sources indicated
above.Caution Concerning Forward-Looking
StatementsThis communication contains “forward-looking”
statements as that term is defined in Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended by the Private Securities Litigation Reform
Act of 1995, including statements regarding the proposed
transaction between GE and Wabtec and statements regarding Wabtec’s
expectations about future sales and earnings. All statements, other
than historical facts, including statements regarding the expected
timing and structure of the proposed transaction; the ability of
the parties to complete the proposed transaction considering the
various closing conditions; the expected benefits of the proposed
transaction, including future financial and operating results, the
tax consequences of the proposed transaction, and the combined
company’s plans, objectives, expectations and intentions; legal,
economic and regulatory conditions; and any assumptions underlying
any of the foregoing, are forward-looking
statements.Forward-looking statements concern future circumstances
and results and other statements that are not historical facts and
are sometimes identified by the words “may,” “will,” “should,”
“potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,”
“estimate,” “overestimate,” “underestimate,” “believe,” “could,”
“project,” “predict,” “continue,” “target” or other similar words
or expressions. Forward-looking statements are based upon current
plans, estimates and expectations that are subject to risks,
uncertainties and assumptions. 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)
that one or more closing conditions to the transaction, including
certain regulatory approvals, may not be satisfied or waived, on a
timely basis or otherwise, including that a governmental entity may
prohibit, delay or refuse to grant approval for the consummation of
the proposed transaction, may require conditions, limitations or
restrictions in connection with such approvals or that the required
approval by the shareholders of Wabtec may not be obtained; (2) the
risk that the proposed transaction may not be completed on the
terms or in the time frame expected by GE or Wabtec, or at all; (3)
unexpected costs, charges or expenses resulting from the proposed
transaction; (4) uncertainty of the expected financial performance
of the combined company following completion of the proposed
transaction; (5) failure to realize the anticipated benefits of the
proposed transaction, including as a result of delay in completing
the proposed transaction or integrating the businesses of GE,
Wabtec and SpinCo; (6) the ability of the combined company to
implement its business strategy; (7) difficulties and delays in
achieving revenue and cost synergies of the combined company; (8)
inability to retain and hire key personnel; (9) the occurrence of
any event that could give rise to termination of the proposed
transaction; (10) the risk that shareholder litigation in
connection with the proposed transaction or other settlements or
investigations may affect the timing or occurrence of the proposed
transaction or result in significant costs of defense,
indemnification and liability; (11) evolving legal, regulatory and
tax regimes; (12) changes in general economic and/or industry
specific conditions; (13) changes in the expected timing of
projects; (14) a decrease in freight or passenger rail traffic;
(15) an increase in manufacturing costs; (16) actions by third
parties, including government agencies; and (17) other risk factors
as detailed from time to time in GE’s and Wabtec’s respective
reports filed with the SEC, including GE’s and Wabtec’s annual
reports on Form 10-K, periodic quarterly reports on Form 10-Q,
periodic current reports on Form 8-K and other documents filed with
the SEC. The foregoing list of important factors is not
exclusive.Any forward-looking statements speak only as of the date
of this communication. Neither GE nor Wabtec undertakes any
obligation to update any forward-looking statements, whether as a
result of new information or development, future events or
otherwise, except as required by law. Readers are cautioned not to
place undue reliance on any of these forward-looking
statements.
Contact:
Tim Wesley Phone:
412.825.1543E-mail: twesley@wabtec.com Website: www.wabtec.com
Wabtec Corporation1001 Air Brake AvenueWilmerding, PA 15148
|
WESTINGHOUSE AIR BRAKE
TECHNOLOGIES CORPORATION |
CONDENSED CONSOLIDATED STATEMENT OF
INCOME |
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 2018 AND 2017 |
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE
DATA) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third |
|
Third |
|
For the |
|
For the |
|
Quarter |
|
Quarter |
|
Nine Months |
|
Nine Months |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
1,077,814 |
|
|
$ |
957,931 |
|
|
$ |
3,245,671 |
|
|
$ |
2,806,218 |
|
Cost of sales |
|
(775,802 |
) |
|
|
(704,728 |
) |
|
|
(2,308,811 |
) |
|
|
(2,009,345 |
) |
Gross
profit |
|
302,012 |
|
|
|
253,203 |
|
|
|
936,860 |
|
|
|
796,873 |
|
Gross
profit as a % of Net Sales |
|
28.0 |
% |
|
|
26.4 |
% |
|
|
28.9 |
% |
|
|
28.4 |
% |
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
(146,839 |
) |
|
|
(118,183 |
) |
|
|
(465,197 |
) |
|
|
(368,788 |
) |
Engineering
expenses |
|
(20,132 |
) |
|
|
(24,709 |
) |
|
|
(61,569 |
) |
|
|
(71,511 |
) |
Amortization
expense |
|
(9,862 |
) |
|
|
(8,645 |
) |
|
|
(30,113 |
) |
|
|
(27,039 |
) |
Total
operating expenses |
|
(176,833 |
) |
|
|
(151,537 |
) |
|
|
(556,879 |
) |
|
|
(467,338 |
) |
Operating
expenses as a % of Net Sales |
|
16.4 |
% |
|
|
15.8 |
% |
|
|
17.2 |
% |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
Income
from operations |
|
125,179 |
|
|
|
101,666 |
|
|
|
379,981 |
|
|
|
329,535 |
|
Income
from operations as a % of Net Sales |
|
11.6 |
% |
|
|
10.6 |
% |
|
|
11.7 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
Interest
expense, net |
|
(23,713 |
) |
|
|
(20,038 |
) |
|
|
(75,917 |
) |
|
|
(57,460 |
) |
Other
(expense) income, net |
|
1,201 |
|
|
|
(443 |
) |
|
|
5,958 |
|
|
|
5,304 |
|
Income
from operations before income taxes |
|
102,667 |
|
|
|
81,185 |
|
|
|
310,022 |
|
|
|
277,379 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(16,598 |
) |
|
|
(12,746 |
) |
|
|
(53,225 |
) |
|
|
(64,776 |
) |
Effective
tax rate |
|
16.2 |
% |
|
|
15.7 |
% |
|
|
17.2 |
% |
|
|
23.4 |
% |
|
|
|
|
|
|
|
|
Net
Income |
|
86,069 |
|
|
|
68,439 |
|
|
|
256,797 |
|
|
|
212,603 |
|
|
|
|
|
|
|
|
|
Less:
Net Loss (Gain) attributable to noncontrolling interest |
|
1,670 |
|
|
|
(1,040 |
) |
|
|
3,724 |
|
|
|
710 |
|
|
|
|
|
|
|
|
|
Net
income attributable to Wabtec shareholders |
$ |
87,739 |
|
|
$ |
67,399 |
|
|
$ |
260,521 |
|
|
$ |
213,313 |
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Net
income attributable to Wabtec shareholders |
$ |
0.91 |
|
|
$ |
0.70 |
|
|
$ |
2.71 |
|
|
$ |
2.23 |
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
Net
income attributable to Wabtec shareholders |
$ |
0.91 |
|
|
$ |
0.70 |
|
|
$ |
2.70 |
|
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
96,208 |
|
|
|
95,709 |
|
|
|
95,935 |
|
|
|
95,163 |
|
Diluted |
|
96,637 |
|
|
|
96,316 |
|
|
|
96,436 |
|
|
|
95,808 |
|
|
|
|
|
|
|
|
|
Segment Information |
|
|
|
|
|
|
|
Freight Net Sales |
$ |
391,577 |
|
|
$ |
340,185 |
|
|
$ |
1,183,389 |
|
|
$ |
1,032,959 |
|
Freight Income from
Operations |
$ |
79,420 |
|
|
$ |
61,424 |
|
|
$ |
233,390 |
|
|
$ |
195,811 |
|
Freight Operating
Margin |
|
20.3 |
% |
|
|
18.1 |
% |
|
|
19.7 |
% |
|
|
19.0 |
% |
|
|
|
|
|
|
|
|
Transit Net Sales |
$ |
686,237 |
|
|
$ |
617,746 |
|
|
$ |
2,062,282 |
|
|
$ |
1,773,259 |
|
Transit Income from
Operations |
$ |
60,735 |
|
|
$ |
47,358 |
|
|
$ |
186,794 |
|
|
$ |
155,383 |
|
Transit Operating
Margin |
|
8.9 |
% |
|
|
7.7 |
% |
|
|
9.1 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
Backlog Information (Note: 12-month is a sub-set of
total) |
September 30,
2018 |
|
June 30,
2018 |
|
|
|
|
Freight Total |
$ |
607,903 |
|
|
$ |
649,268 |
|
|
|
|
|
Transit Total |
|
3,959,393 |
|
|
|
4,011,993 |
|
|
|
|
|
Wabtec Total |
$ |
4,567,296 |
|
|
$ |
4,661,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight 12-Month |
$ |
408,527 |
|
|
$ |
464,295 |
|
|
|
|
|
Transit 12-Month |
|
1,791,922 |
|
|
|
2,044,437 |
|
|
|
|
|
Wabtec 12-Month |
$ |
2,200,449 |
|
|
$ |
2,508,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
WESTINGHOUSE AIR BRAKE
TECHNOLOGIES CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
September 30, 2018 |
|
December 31, 2017 |
In
thousands |
|
|
|
Cash and
cash equivalents |
$ |
411,381 |
|
$ |
233,401 |
Restricted cash |
|
1,724,000 |
|
$ |
- |
Receivables, net |
|
1,240,521 |
|
|
1,166,787 |
Inventories |
|
866,205 |
|
|
742,634 |
Current
assets - other |
|
111,441 |
|
|
122,291 |
Total current assets |
|
4,353,548 |
|
|
2,265,113 |
Property, plant and equipment, net |
|
557,423 |
|
|
573,972 |
Goodwill |
|
2,412,554 |
|
|
2,460,103 |
Other
intangibles, net |
|
1,157,424 |
|
|
1,204,432 |
Other
long term assets |
|
72,277 |
|
|
76,360 |
Total assets |
$ |
8,553,226 |
|
$ |
6,579,980 |
Current
liabilities |
$ |
1,530,293 |
|
$ |
1,573,330 |
Long-term debt |
|
3,818,061 |
|
|
1,823,303 |
Long-term liabilities - other |
|
294,520 |
|
|
354,815 |
Total liabilities |
|
5,642,874 |
|
|
3,751,448 |
Shareholders' equity |
|
2,895,170 |
|
|
2,808,868 |
Non-controlling interest |
|
15,182 |
|
|
19,664 |
Total shareholders' equity |
$ |
2,910,352 |
|
$ |
2,828,532 |
Total Liabilities and Shareholders' Equity |
$ |
8,553,226 |
|
$ |
6,579,980 |
|
|
|
|
WESTINGHOUSE AIR BRAKE
TECHNOLOGIES CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
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Unaudited |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
In
thousands |
|
|
|
Net cash
provided by operating activities |
$ |
38,038 |
|
$ |
26,511 |
Net cash
used for investing activities |
(104,160) |
|
(905,872) |
Net cash
provided by (used for) financing activities |
1,995,310 |
|
(70,049) |
Effect
of changes in currency exchange rates |
(27,208) |
|
34,258 |
Increase
(decrease) in cash |
1,901,980 |
|
(915,152) |
Cash,
cash equivalents, and restricted cash, beginning of period |
233,401 |
|
1,143,232 |
Cash,
cash equivalents, and restricted cash, end of period |
$ |
2,135,381 |
|
$ |
228,080 |
|
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|
|
Set forth below is the calculation of the non-GAAP performance
measures included in this press release. We believe that
these measures provide useful supplemental information to assess
our operating performance and to evaluate period-to-period
comparisons. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, Wabtec's reported
results prepared in accordance with GAAP. |
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Wabtec Corporation |
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Reconciliation of Reported Results to Adjusted
Results |
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(in millions) |
Third Quarter 2018 Actual
Results |
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Gross |
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Operating |
|
Income from |
|
Interest & |
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Minority |
|
Wabtec |
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|
Profit |
|
Expenses |
|
Operations |
|
Other Exp |
|
Tax |
|
Net Income |
|
Interest |
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Net Income |
|
EPS |
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Reported
Results |
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$ |
302.0 |
|
$ |
(176.8 |
) |
|
$ |
125.2 |
|
$ |
(22.5 |
) |
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$ |
(16.6 |
) |
|
$ |
86.1 |
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$ |
1.7 |
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$ |
87.7 |
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$ |
0.91 |
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Restructuring cost add-back |
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0.5 |
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1.9 |
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2.4 |
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- |
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(0.5 |
) |
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1.9 |
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- |
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1.9 |
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$ |
0.02 |
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GE transaction costs |
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- |
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7.2 |
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7.2 |
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3.2 |
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(2.3 |
) |
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8.1 |
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- |
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8.1 |
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$ |
0.08 |
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India GST costs |
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- |
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0.8 |
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0.8 |
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- |
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(0.2 |
) |
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0.6 |
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- |
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0.6 |
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$ |
0.01 |
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Tax adjustment related to 2017 U.S. tax law change |
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- |
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- |
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- |
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- |
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(6.5 |
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(6.5 |
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- |
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(6.5 |
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$ |
(0.07 |
) |
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Adjusted Results |
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$ |
302.5 |
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$ |
(166.9 |
) |
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$ |
135.6 |
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$ |
(19.3 |
) |
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$ |
(26.2 |
) |
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$ |
90.1 |
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$ |
1.7 |
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$ |
91.7 |
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$ |
0.95 |
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Fully Diluted Shares Outstanding |
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96.6 |
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Wabtec Corporation |
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Reconciliation of Reported Results to Adjusted
Results |
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(in millions) |
Year-to-Date 2018 Actual Results |
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Gross |
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Operating |
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Income from |
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Interest & |
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Minority |
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Wabtec |
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Profit |
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Expenses |
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Operations |
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Other Exp |
|
Tax |
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Net Income |
|
Interest |
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Net Income |
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EPS |
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Reported Results |
|
$ |
936.9 |
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$ |
(556.9 |
) |
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$ |
380.0 |
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$ |
(70.0 |
) |
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$ |
(53.2 |
) |
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$ |
256.8 |
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$ |
3.7 |
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$ |
260.5 |
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$ |
2.70 |
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Restructuring costs add-back |
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1.7 |
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5.1 |
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6.8 |
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- |
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(1.6 |
) |
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5.2 |
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- |
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5.2 |
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$ |
0.05 |
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GE transaction costs |
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- |
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16.4 |
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16.4 |
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14.8 |
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(7.2 |
) |
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24.0 |
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- |
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24.0 |
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$ |
0.25 |
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India GST costs |
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- |
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4.8 |
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4.8 |
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- |
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(1.1 |
) |
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3.7 |
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- |
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3.7 |
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$ |
0.04 |
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Tax adjustment related to 2017 U.S. tax law change |
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- |
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- |
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- |
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- |
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(19.5 |
) |
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(19.5 |
) |
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- |
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(19.5 |
) |
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$ |
(0.20 |
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Adjusted Results |
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$ |
938.6 |
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$ |
(530.6 |
) |
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$ |
408.0 |
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$ |
(55.2 |
) |
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$ |
(82.7 |
) |
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$ |
270.1 |
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$ |
3.7 |
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$ |
273.8 |
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$ |
2.84 |
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Fully Diluted Shares Outstanding |
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|
96.4 |
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