Wabtec Corporation (NYSE: WAB) today reported a loss per diluted
share of $0.04 and adjusted earnings per diluted share of $1.06 in
the 2019 first quarter (see reconciliation table). The
company said it generated cash from operations of $31 million for
the quarter. Wabtec also affirmed its full-year guidance for sales
and adjusted earnings per diluted share.
Raymond T. Betler, Wabtec’s president and chief executive
officer, said: “Our first-quarter adjusted results represent
a solid start to the year, and we’re well positioned to meet our
financial targets in 2019 based on our current backlog and expected
market conditions.
“Since completing our merger with GE Transportation in late
February, we have focused on continuing to serve our customers,
integrating our companies and validating the strategic rationale
for the combination. We have also confirmed our target to
deliver operating synergies of $250 million by year four,
demonstrating further confidence in the financial benefits of the
merger. As we drive short-term performance and our synergy
initiatives, we are also investing in our long-term growth
strategies and are confident we can deliver improved earnings,
margins and cash flow in the future.”
2019 First Quarter Consolidated Results
- GAAP sales were $1.59 billion; adjusted sales were $1.64
billion including accounting policy harmonization. The
increase compared to the year-ago quarter resulted mainly from
sales from GE Transportation.
- Income from operations was $67 million and adjusted income from
operations was $220 million (13.4% of adjusted sales).
Adjusted income from operations excluded pre-tax expenses of $153
million related to the GE Transportation merger, as
follows: $80 million for one-time, non-cash purchase price
accounting charges; $59 million for transaction and restructuring
costs; and $14 million for non-cash, accounting policy
harmonization (see reconciliation table). In addition to the
expenses noted above, the company also had pre-tax expense of $20
million for non-cash, recurring purchase price accounting charges
which is not added back to adjusted income from operations.
- Net interest expense was $45 million, including expenses of $14
million related to the GE Transportation merger.
- Other expense was $8 million due to losses on the remeasurement
of certain foreign currency-denominated contracts.
- Income tax expense was $19 million. Excluding the net tax
benefit from transaction costs related to the GE Transportation
merger, adjusted income tax expense was $41 million for an adjusted
effective tax rate of about 23%.
- The loss per diluted share was $0.04 and adjusted earnings per
diluted share based on adjusted shares outstanding of 132.5 million
were $1.06 (see reconciliation table). Adjusted earnings per
diluted share excluded after-tax expenses of $1.10 per diluted
share related to the GE Transportation merger, as follows:
$0.46 for one-time, non-cash purchase price accounting charges;
$0.42 for transaction, restructuring and interest costs; $0.08 for
non-cash, accounting policy harmonization; and $0.14 for the net
tax benefit (see reconciliation table). In addition to the
expenses noted above, the company also had after-tax expense of
$0.12 per diluted share for non-cash, recurring purchase price
accounting charges which is not added back to adjusted earnings per
diluted share.
- EBITDA, which Wabtec defines as income from operations plus
depreciation and amortization, was $123 million and adjusted EBITDA
was $276 million. Adjusted EBITDA excluded pre-tax expenses of $153
million related to the GE Transportation merger, as follows:
$80 million for one-time, non-cash purchase price accounting
charges; $59 million for transaction and restructuring costs; and
$14 million for non-cash, accounting policy harmonization (see
reconciliation table). In addition to the expenses noted
above, the company also had pre-tax expense of $20 million for
non-cash, recurring purchase price accounting charges which is not
added back to adjusted EBITDA.
2019 First Quarter Segment Results
- Freight segment sales increased by 131% or $496 million; the
increase resulted from acquisitions of $495 million and organic
growth of $9 million, which more than offset unfavorable changes in
foreign currency exchange rates of $8 million. Freight
segment income from operations of $75 million was reduced by $99
million of the expenses noted above. Excluding those
expenses, income from operations as a percent of sales was 18.9%.
GE Transportation had a strong quarter due to the timing of
project deliveries.
- Transit segment sales increased by 6% or $41 million; the
increase resulted from organic sales growth of $77 million and
acquisitions of $15 million, which more than offset unfavorable
changes in foreign currency exchange rates of $51 million.
Income from operations as a percent of sales was 8.2% mainly due to
an unfavorable product mix and certain discrete items.
Cash Flow Summary
- The company generated cash from operations of $31 million for
the first quarter compared to cash from operations of $24 million
in the year-ago quarter, with the increase resulting from improved
working capital performance. In the 2019 first quarter, cash
from operations was reduced by about $50 million as a result of
costs related to the GE Transportation merger.
- At March 31, the company had cash of $513 million and debt of
$4.96 billion. Total debt was higher than at the end of 2018
due to the GE Transportation merger.
Backlog
- At March 31, Wabtec’s total, multi-year backlog was $23 billion
and its 12-month backlog was $6.1 billion, higher than year-end
2018 due mainly to the GE Transportation merger.
2019 Financial Guidance and Pro Forma Financial
Information
- Wabtec affirmed 2019 GAAP sales guidance of about $8.4
billion. The company updated GAAP income from operations
guidance to about $800 million and GAAP earnings per diluted share
guidance to between $2.40-$2.60 due to refined estimates for
purchase price accounting charges and transaction and restructuring
costs. Wabtec affirmed its guidance for EBITDA, which Wabtec
defines as income from operations plus depreciation and
amortization, of about $1.3 billion.
- Wabtec affirmed its adjusted financial guidance for 2019:
Adjusted sales of about $8.4 billion, adjusted EBITDA of about $1.6
billion, adjusted income from operations of about $1.2 billion and
adjusted earnings per diluted share of between $4.00-$4.20.
The adjusted guidance excludes estimated expenses for the GE
Transportation merger for transaction and restructuring costs,
one-time purchase price accounting charges, and non-cash accounting
policy harmonization. Excluding these expenses, the company’s
adjusted operating margin target for the full year is about 14% and
its effective tax rate for the full year is expected to be about
24%. This guidance also includes a net synergy benefit of about $20
million. For the year, Wabtec expects GAAP cash flow from
operations to be between $500 million-$600 million including
expenses of about $300 million related to the GE Transportation
merger.
- Compared to its first quarter results, which included about
five weeks of GE Transportation’s results, Wabtec said it expects
second quarter adjusted sales, adjusted net income and adjusted
EBITDA to be higher, with adjusted earnings per diluted share
expected to be lower mainly due to a less favorable product mix and
the fully diluted share count increasing to about 193 million as a
result of the GE Transportation merger. Based on the expected
timing of project deliveries, Wabtec expects its product mix and
adjusted earnings per diluted share to improve during the rest of
the year.
- Following is pro forma adjusted financial information assuming
a full year of GE Transportation’s results and excluding estimated
expenses for the GE Transportation merger for transaction and
restructuring costs, one-time and recurring purchase price
accounting charges and non-cash accounting policy
harmonization: Adjusted sales of about $9.2 billion, adjusted
EBITDA of about $1.7 billion and adjusted income from operations of
about $1.3 billion due to updated estimates for purchase price
accounting charges.
Conference Call InformationWabtec will host a
call with analysts and investors at 10 a.m., ET, today. To
listen via webcast, go to Wabtec’s new website at
www.WabtecCorp.com and click on “Events & Presentations” in the
“Investor Relations” section, or to the old Wabtec website at
www.wabtec.com and click on “Webcasts” in the “Investor Relations”
section. Also, an audio replay of the call will be available
by calling 412-317-0088 (passcode: 466#).
About Wabtec Corporation Wabtec Corporation is
a leading global provider of equipment, systems, digital solutions
and value-added services for freight and transit rail. Drawing on
nearly four centuries of collective experience across Wabtec, GE
Transportation and Faiveley Transport, the company has unmatched
digital expertise, technological innovation, and world-class
manufacturing and services, enabling the digital-rail-and-transit
ecosystems. Wabtec is focused on performance that drives progress,
creating transportation solutions that move and improve the world.
The freight portfolio features a comprehensive line of locomotives,
software applications and a broad selection of mission-critical
controls systems, including Positive Train Control (PTC). The
transit portfolio provides highly engineered systems and services
to virtually every major rail transit system around the world,
supplying an integrated series of components for buses and all
train-related market segments that deliver safety, efficiency and
passenger comfort. Along with its industry-leading
portfolio of products and solutions for the rail and transit
industries, Wabtec is a leader in mining, marine, and industrial
solutions. Based in Wilmerding, PA, Wabtec has approximately 27,000
employees in facilities throughout the world. Visit:
www.WabtecCorp.com or www.wabtec.com.
Information about non-GAAP 2019 Financial Guidance and
Forward-Looking StatementsWabtec’s earnings release and
2019 financial guidance mention certain non-GAAP financial
performance measures, including adjusted operating margin, EBITDA,
adjusted EBITDA, adjusted income from operations and adjusted
earnings per diluted share. Wabtec defines EBITDA as income from
operations plus depreciation and amortization. While Wabtec
believes these are useful supplemental measures for investors, they
are not presented in accordance with GAAP. Investors should not
consider non-GAAP measures in isolation or as a substitute for net
income, cash flows from operations, or any other items calculated
in accordance with GAAP. In addition, the non-GAAP financial
measures included in this presentation have inherent material
limitations as performance measures because they add back certain
expenses incurred by the company to net income, resulting in those
expenses not being taken into account in the applicable financial
measure. Because not all companies use identical calculations,
Wabtec’s presentation of non-GAAP financial measures may not be
comparable to other similarly titled measures of other
companies. Included in this release are reconciliation tables
that provide details about how adjusted results relate to GAAP
results.
This 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 acquisition by Wabtec of GE
Transportation (the “transaction”) and statements regarding
Wabtec’s expectations about future sales and earnings. All
statements, other than historical facts, including statements
regarding the expected benefits of the transaction, including
future financial and operating results, the tax consequences of the
GE Transportation 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)
unexpected costs, charges or expenses resulting from the GE
Transportation transaction; (2) uncertainty of the expected
financial performance of the combined company following completion
of the transaction; (3) failure to realize the anticipated benefits
of the transaction, including as a result of integrating GE
Transportation into Wabtec; (4) the ability of the combined company
to implement its business strategy; (5) difficulties and delays in
achieving revenue and cost synergies of the combined company; (6)
inability to retain and hire key personnel; (7) evolving legal,
regulatory and tax regimes; (8) changes in general economic and/or
industry specific conditions, including the impacts of tax and
tariff programs, industry consolidation and changes in the
financial condition or operating strategies of our customers; (9)
changes in the expected timing of projects; (10) a decrease in
freight or passenger rail traffic; (11) an increase in
manufacturing costs; (12) actions by third parties, including
government agencies; and (13) other risk factors as detailed from
time to time in Wabtec’s reports filed with the SEC, including
Wabtec’s annual report 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. Wabtec does not undertake 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.
Wabtec Investor ContactsTim Wesley /
twesley@wabtec.com / 412-825-1543Kristine Kubacki, CFA /
Kristine.kubacki@wabtec.com / 412-450-2033
Wabtec Media ContactDeia Campanelli /
Deia.Campanelli@Wabtec.com / 773-297-0482
WESTINGHOUSE AIR BRAKE TECHNOLOGIES
CORPORATION |
CONDENSED CONSOLIDATED STATEMENT OF
INCOME |
FOR THE THREE MONTHS ENDED MARCH 31,
2019 AND 2018 |
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE
DATA) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
First |
|
First |
|
Quarter |
|
Quarter |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,593,617 |
|
|
$ |
1,056,177 |
|
Cost of sales |
|
(1,204,600 |
) |
|
|
(745,296 |
) |
Gross
profit |
|
389,017 |
|
|
|
310,881 |
|
Gross
profit as a % of Net Sales |
|
24.4 |
% |
|
|
29.4 |
% |
|
|
|
|
Selling, general and
administrative expenses |
|
(259,723 |
) |
|
|
(147,201 |
) |
Engineering
expenses |
|
(34,545 |
) |
|
|
(22,049 |
) |
Amortization
expense |
|
(27,442 |
) |
|
|
(10,352 |
) |
Total
operating expenses |
|
(321,710 |
) |
|
|
(179,602 |
) |
Operating
expenses as a % of Net Sales |
|
20.2 |
% |
|
|
17.0 |
% |
|
|
|
|
Income
from operations |
|
67,307 |
|
|
|
131,279 |
|
Income
from operations as a % of Net Sales |
|
4.2 |
% |
|
|
12.4 |
% |
|
|
|
|
Interest expense,
net |
|
(44,569 |
) |
|
|
(20,284 |
) |
Other (expense)
income, net |
|
(8,228 |
) |
|
|
2,586 |
|
Income
from operations before income taxes |
|
14,510 |
|
|
|
113,581 |
|
|
|
|
|
Income tax expense |
|
(18,523 |
) |
|
|
(26,124 |
) |
Effective
tax rate |
|
127.7 |
% |
|
|
23.0 |
% |
|
|
|
|
Net
(loss) income |
|
(4,013 |
) |
|
|
87,457 |
|
|
|
|
|
Less: Net (gain) loss
attributable to noncontrolling interest |
|
(459 |
) |
|
|
909 |
|
|
|
|
|
Net
(loss) income attributable to Wabtec shareholders |
$ |
(4,472 |
) |
|
$ |
88,366 |
|
|
|
|
|
Earnings Per Common Share |
|
|
|
Basic |
|
|
|
Net
(loss) income attributable to Wabtec shareholders |
$ |
(0.04 |
) |
|
$ |
0.92 |
|
|
|
|
|
Diluted |
|
|
|
Net
(loss) income attributable to Wabtec shareholders |
$ |
(0.04 |
) |
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
Basic |
|
121,226 |
|
|
|
95,810 |
|
Diluted |
|
121,226 |
|
|
|
96,371 |
|
|
|
|
|
Segment Information |
|
|
|
Freight Net Sales |
$ |
876,434 |
|
|
$ |
379,554 |
|
Freight Income from
Operations |
$ |
75,210 |
|
|
$ |
69,623 |
|
Freight Operating
Margin |
|
8.6 |
% |
|
|
18.3 |
% |
|
|
|
|
Transit Net Sales |
$ |
717,183 |
|
|
$ |
676,623 |
|
Transit Income from
Operations |
$ |
58,933 |
|
|
$ |
68,084 |
|
Transit Operating
Margin |
|
8.2 |
% |
|
|
10.1 |
% |
|
|
|
|
Backlog Information (Note: 12-month is a sub-set of
total) |
March 31, 2019 |
|
December 31, 2018 |
Freight Total |
$ |
19,466,111 |
|
|
$ |
664,656 |
|
Transit Total |
|
3,795,200 |
|
|
|
3,816,925 |
|
Wabtec Total |
$ |
23,261,311 |
|
|
$ |
4,481,581 |
|
|
|
|
|
Freight 12-Month |
$ |
4,061,260 |
|
|
$ |
503,528 |
|
Transit 12-Month |
|
2,048,707 |
|
|
|
1,954,573 |
|
Wabtec 12-Month |
$ |
6,109,967 |
|
|
$ |
2,458,101 |
|
|
|
|
|
WESTINGHOUSE AIR BRAKE TECHNOLOGIES
CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019 |
|
December 31, 2018 |
In
thousands |
|
|
|
Cash and cash
equivalents |
$ |
512,870 |
|
$ |
580,908 |
Restricted cash |
|
- |
|
|
1,761,446 |
Receivables, net |
|
1,726,824 |
|
|
1,146,778 |
Inventories |
|
1,947,220 |
|
|
844,886 |
Current
assets - other |
|
194,223 |
|
|
115,649 |
Total current assets |
|
4,381,137 |
|
|
4,449,667 |
Property, plant and equipment, net |
|
1,634,966 |
|
|
563,737 |
Goodwill |
|
8,142,473 |
|
|
2,396,544 |
Other
intangibles, net |
|
4,364,021 |
|
|
1,129,880 |
Other
long term assets |
|
555,308 |
|
|
109,406 |
Total assets |
$ |
19,077,905 |
|
$ |
8,649,234 |
Current
liabilities |
$ |
3,254,435 |
|
$ |
1,646,690 |
Long-term debt |
|
4,641,286 |
|
|
3,792,774 |
Long-term liabilities - other |
|
1,401,738 |
|
|
340,695 |
Total liabilities |
|
9,297,459 |
|
|
5,780,159 |
Shareholders' equity |
|
9,687,846 |
|
|
2,865,131 |
Non-controlling interest |
|
92,600 |
|
|
3,944 |
Total shareholders' equity |
$ |
9,780,446 |
|
$ |
2,869,075 |
Total Liabilities and Shareholders' Equity |
$ |
19,077,905 |
|
$ |
8,649,234 |
|
|
|
|
WESTINGHOUSE AIR BRAKE TECHNOLOGIES
CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
In
thousands |
|
|
|
Net cash provided by
operating activities |
$ |
31,338 |
|
|
$ |
24,200 |
|
Net cash used for
investing activities |
|
(2,739,648 |
) |
|
|
(43,865 |
) |
Net cash provided by
financing activities |
|
882,990 |
|
|
|
28,668 |
|
Effect of changes in
currency exchange rates |
|
(4,164 |
) |
|
|
7,482 |
|
(Decrease) increase in
cash |
|
(1,829,484 |
) |
|
|
16,485 |
|
Cash, cash equivalents,
and restricted cash, beginning of period |
|
2,342,354 |
|
|
|
233,401 |
|
Cash, cash equivalents,
and restricted cash, end of period |
$ |
512,870 |
|
|
$ |
249,886 |
|
|
|
|
|
|
|
|
|
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.
Wabtec Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q-1 Actual Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
First Quarter 2019 Actual
Results |
|
Net Sales |
|
GrossProfit |
|
OperatingExpenses |
|
Income fromOperations |
|
Interest &Other Exp |
|
Tax |
|
Net Income |
|
MinorityInterest |
|
WabtecNet Income |
|
EPS |
Consolidated Q1 Actual As Reported |
$ |
1,593.6 |
|
$ |
389.0 |
|
$ |
(321.7 |
) |
|
$ |
67.3 |
|
$ |
(52.8 |
) |
|
$ |
(18.5 |
) |
|
$ |
(4.0 |
) |
|
$ |
(0.5 |
) |
|
$ |
(4.5 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and Restructuring Costs |
|
- |
|
|
- |
|
|
58.9 |
|
|
|
58.9 |
|
|
14.4 |
|
|
|
(17.7 |
) |
|
|
55.6 |
|
|
|
- |
|
|
|
55.6 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-time PPA Charges |
|
- |
|
|
80.0 |
|
|
- |
|
|
|
80.0 |
|
|
- |
|
|
|
(19.4 |
) |
|
|
60.6 |
|
|
|
- |
|
|
|
60.6 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy Harmonization |
|
47.0 |
|
|
14.0 |
|
|
- |
|
|
|
14.0 |
|
|
- |
|
|
|
(3.4 |
) |
|
|
10.6 |
|
|
|
- |
|
|
|
10.6 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Adjustment on Transaction Costs |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
18.0 |
|
|
|
18.0 |
|
|
|
- |
|
|
|
18.0 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Results |
$ |
1,640.6 |
|
$ |
483.0 |
|
$ |
(262.8 |
) |
|
$ |
220.2 |
|
$ |
(38.4 |
) |
|
$ |
(41.0 |
) |
|
$ |
140.8 |
|
|
$ |
(0.5 |
) |
|
$ |
140.3 |
|
|
$ |
1.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully Diluted Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
132.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Wabtec Corporation |
|
|
|
|
|
|
|
2019 Q-1 EBITDA Reconciliation |
|
|
|
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
Income fromOperations |
|
Depreciation |
|
Amortization |
|
EBITDA (Income fromOperations plus
Depreciation& Amortization) |
|
|
|
|
|
|
|
|
Consolidated Q1 Actual As Reported |
$ |
67.3 |
|
$ |
27.2 |
|
$ |
28.7 |
|
$ |
123.2 |
|
|
|
|
|
|
|
|
Transaction and Restructuring Costs |
|
58.9 |
|
|
- |
|
|
- |
|
|
58.9 |
|
|
|
|
|
|
|
|
One-time PPA Charges |
|
80.0 |
|
|
- |
|
|
- |
|
|
80.0 |
|
|
|
|
|
|
|
|
Policy Harmonization |
|
14.0 |
|
|
- |
|
|
- |
|
|
14.0 |
|
|
|
|
|
|
|
|
Adjusted Results |
$ |
220.2 |
|
$ |
27.2 |
|
$ |
28.7 |
|
$ |
276.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Set forth below is a reconciliation of the 2019 guidance to the
adjusted guidance included in this press release. We believe
that the adjusted guidance provides useful supplemental information
to assess our forecasted results. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for,
Wabtec's guidance presented in accordance with GAAP.
Wabtec Corporation |
|
|
|
|
|
|
|
|
Reconciliation of Guidance to Adjusted Guidance
* |
|
|
|
|
|
|
|
(in billions) |
|
|
|
|
|
|
|
|
|
Revenue |
|
Income fromOperations |
|
Depreciation& Amortization |
|
EBITDA (Income fromOperations plus
Depreciation& Amortization) |
|
|
|
|
|
|
|
|
|
|
2019
Guidance |
$ |
8.4 |
|
$ |
0.8 |
|
$ |
0.5 |
|
$ |
1.3 |
|
|
|
|
|
|
|
|
|
|
Transaction and Restructuring Costs |
|
- |
|
|
0.1 |
|
|
- |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
One-time PPA Charges |
|
- |
|
|
0.2 |
|
|
- |
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
Policy Harmonization |
|
0.1 |
|
|
0.1 |
|
|
- |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
2019 Adjusted Guidance |
$ |
8.4 |
|
$ |
1.2 |
|
$ |
0.5 |
|
$ |
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Net Income and Earnings Per Diluted Share ("EPS") will be
impacted by a variety of uncertainties including revisions to
purchase price accounting, final transaction costs, and mix of
operations affecting accounting harmonization. The Company does not
further reconcile Income from Operations to Net Income due to the
inherent difficulty, without unreasonable efforts, in forecasting
and quantifying with reasonable accuracy the foregoing significant
items required for the reconciliation. On a GAAP basis, Net Income
is estimated to range from $425 million to $460 million, with an
EPS range of $2.40 to $2.60. On an adjusted basis, Net Income is
estimated to range from $710 million to $740 million, and EPS of
$4.00 to $4.20.
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