Sign In  |  Register  |  About Burlingame  |  Contact Us

Burlingame, CA
September 01, 2020 10:18am
7-Day Forecast | Traffic
  • Search Hotels in Burlingame

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Xylem Reports Fourth Quarter and Full-Year 2021 Earnings

  • Full-year organic growth, adjusted EBITDA margin expansion, adjusted earnings per share in line with November guidance
  • Full-year revenue of $5.2 billion, up 7% on a reported basis, up 4% organically
  • Full-year reported earnings per share of $2.35, up 68%; adjusted earnings per share of $2.49, up 21%
  • Strong demand drives continuing commercial momentum in all business segments; fourth quarter and full-year reported and organic orders growth in excess of 20%
  • Provides 2022 organic revenue growth guidance range of 3% to 5% and adjusted earnings per share range of $2.35 to $2.70, reflecting ongoing chip constraints across the technology sector

Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today reported fourth quarter revenue of $1.32 billion, and full-year 2021 revenue of $5.20 billion, in line with previous guidance.

Fourth quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin decreased 260 basis points to 16.2 percent. Inflation and strategic investments drove the margin decline, exceeding the benefits of price realization and productivity savings. Xylem generated net income of $113 million, or $0.62 per share, and adjusted net income of $115 million, or $0.63 per share, which excludes the impact of restructuring, realignment and special charges.

For the full year, Xylem delivered adjusted EBITDA margin of 17.1 percent, up 80 basis points year-over-year. Productivity and volume drove the increase, exceeding inflation impacts. Full-year reported net income was $427 million, or $2.35 per share, and adjusted net income, which excludes the impact of restructuring, realignment and special charges, was $452 million, or $2.49 per share. The Company generated $538 million of operating cash flow, representing a 126 percent conversion, and $330 million of free cash flow, representing a 77 percent conversion.

“The team closed out 2021 with a strong performance, delivering full-year margin expansion alongside solid growth in revenue and earnings in the face of accelerating supply chain headwinds through the quarter,” said Patrick Decker, president and CEO of Xylem. “To mitigate the effects of inflation, the team also drove solid productivity improvements and price realization above our expectations. Market demand was clearly robust, as evidenced by continued strong orders and backlog growth in both the quarter and the year.”

“We expect the first half of 2022 to continue to be supply constrained due to ongoing chip shortages,” Decker continued. “Order-to-revenue conversion is set to pick up pace progressively, as we expect those constraints to begin easing in the latter part of the year. Overall, we expect full-year growth in the mid-single digits, with significant margin expansion in the second half, keeping us on track to achieve our 2025 growth and strategic milestones.”

Xylem announced that its Board of Directors declared a dividend in the amount of $0.30 per share, an increase of 7 percent. The dividend is payable on March 17, 2022, to shareholders of record as of February 17, 2022.

Full-year 2022 Outlook

Xylem forecasts full-year 2022 revenue in the range of $5.25 to $5.35 billion, up 1 to 3 percent on a reported basis and up 3 to 5 percent on an organic basis.

Full-year 2022 adjusted EBITDA margin is expected to be in the range of 16 to 17 percent. This results in adjusted earnings per share of $2.35 to $2.70, which represents a decline of 6 percent to an increase of 8 percent from Xylem’s 2021 adjusted results. Further 2022 planning assumptions are included in Xylem’s fourth quarter 2021 earnings materials posted at www.xylem.com/investors. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.

Fourth Quarter Segment Results

Water Infrastructure

Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving clean water delivery, wastewater transport and treatment, and dewatering.

  • Fourth quarter 2021 revenue was $622 million, a 2 percent increase compared with fourth quarter 2020. This result was driven by healthy growth in the industrial end market, particularly in the Emerging Markets, partially offset by delayed revenue conversion in the U.S. utilities market primarily due to extended lead-times for ocean transit.
  • Fourth quarter adjusted EBITDA margin was 21.7 percent, down 50 basis points from the prior year. Reported operating income for the segment was $122 million. Adjusted operating income for the segment, which excludes $2 million of restructuring and realignment, was $124 million, flat versus the comparable period last year. Reported operating margin for the segment was 19.6 percent, up 60 basis points versus the prior year, and adjusted operating margin was 19.9 percent, down 20 basis points versus prior year. Productivity benefits and price realization were more than offset by inflation and investments.

Applied Water

Xylem’s Applied Water segment consists of its portfolio of businesses in residential and commercial building services, and industrial applications.

  • Fourth quarter 2021 Applied Water revenue was $406 million, a 3 percent increase organically year-over-year. Industrial end-market strength in Emerging Markets, US and Western Europe was partially offset by weakness in the residential market in China particularly in light of strong prior-year performance.
  • Fourth quarter adjusted EBITDA margin was 13.8 percent, down 340 basis points from the prior year. Reported operating income for the segment was $50 million and adjusted operating income, which excludes $2 million of restructuring and realignment costs, was $52 million, a 16 percent decrease versus the comparable period last year. The segment reported operating margin was 12.3 percent, down 310 basis points versus the prior year period. Adjusted operating margin declined 290 basis points to 12.8 percent. Productivity benefits and price realization were more than offset by inflation.

Measurement & Control Solutions

Xylem’s Measurement & Control Solutions segment consists of its portfolio of businesses in smart metering, network technologies, advanced infrastructure analytics and analytic instrumentation.

  • Fourth quarter 2021 Measurement & Control Solutions revenue was $295 million, down 17 percent organically versus the prior year. The decline is in-line with our expectations and a result of the ongoing chip supply shortage and the outsized impact to our North American smart metering business.
  • Fourth quarter adjusted EBITDA margin was 7.1 percent, down 750 basis points from the prior year. Reported operating income for the segment was -$17 million, and adjusted operating income, which excludes $2 million of restructuring and realignment costs, was -$15 million, a 194 percent decrease versus the comparable period last year. The Measurement & Control Solutions segment reported operating margin was -5.8 percent, down 970 basis points versus the prior year period. Adjusted operating margin of -5.1 percent also decreased 950 basis points over the prior year period. Volume declines from component shortages as well as inflation more than offset productivity savings and modest price realization.

Supplemental information on Xylem’s fourth quarter 2021 earnings and reconciliations for certain non-GAAP items is posted at www.xylem.com/investors.

About Xylem

Xylem (XYL) is a leading global water technology company committed to solving critical water and infrastructure challenges with innovation. Our 17,000 diverse employees delivered revenue of $5.2 billion in 2021. We are creating a more sustainable world by enabling our customers to optimize water and resource management, and helping communities in more than 150 countries become water-secure. Join us at www.xylem.com.

Forward-Looking Statements

This press release contains “forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” "contemplate," "predict," “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,” "potential," "may" and similar expressions or their negative, may, but are not necessary to, identify forward-looking statements. By their nature, forward-looking statements address uncertain matters and include any statements that: are not historical, such as statements about our strategy, financial plans, outlook, objectives, plans, intentions or goals (including those related to our social, environmental and other sustainability goals); or address possible or future results of operations or financial performance, including statements relating to orders, revenues, operating margins and earnings per share growth.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Additionally, many of these risks and uncertainties are, and may continue to be, amplified by the ongoing coronavirus (“COVID-19”) pandemic. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include, among others, the following: overall industry and economic conditions, including industrial, governmental and private sector spending and the strength of the residential and commercial real estate markets; geopolitical, regulatory, economic and other risks associated with international operations; continued uncertainty around the ongoing COVID-19 pandemic’s magnitude, duration and impacts on our business, operations, growth, and financial condition; actual or potential other epidemics, pandemics or global health crises; availability, shortage or delays in receiving products, parts, electronic components and raw materials from our supply chain; manufacturing and operating cost increases due to inflation, prevailing price changes, tariffs and other factors; demand for our products, disruption, competition, pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of information technology systems on which we rely, or involving our products; disruptions in operations at our facilities or that of third parties upon which we rely; ability to retain and attract senior management and other diverse and key talent, as well as increasing competition for overall talent and labor; difficulty predicting our financial results; defects, security, warranty and liability claims, and recalls with respect to products; availability, regulation or interference with radio spectrum used by certain of our products; uncertainty related to restructuring and realignment actions and related charges and savings; our ability to continue strategic investments for growth; our ability to successfully identify, execute and integrate acquisitions; volatility in served markets or impacts on business and operations due to weather conditions, including the effects of climate change; fluctuations in foreign currency exchange rates; our ability to borrow or refinance our existing indebtedness and the availability of liquidity sufficient to meet our needs; risk of future impairments to goodwill and other intangible assets; failure to comply with, or changes in, laws or regulations, including those pertaining to anti-corruption, data privacy and security, export and import, competition, domestic content requirements, and the environment and climate change; changes in our effective tax rates or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and associated contingent liabilities; and other factors set forth under "Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in subsequent filings we have made or may make with the Securities and Exchange Commission (“SEC”).

Forward-looking and other statements in this press release regarding our environmental and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking social, environmental and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

All forward-looking statements made herein are based on information currently available to us as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS (Unaudited)

(In Millions, except per share data)

Year Ended December 31,

2021

 

2020

 

2019

Revenue

$

5,195

 

$

4,876

 

 

$

5,249

 

Cost of revenue

 

3,220

 

 

3,046

 

 

 

3,203

 

Gross profit

 

1,975

 

 

1,830

 

 

 

2,046

 

Selling, general and administrative expenses

 

1,179

 

 

1,143

 

 

 

1,158

 

Research and development expenses

 

204

 

 

187

 

 

 

191

 

Restructuring and asset impairment charges

 

7

 

 

75

 

 

 

63

 

Goodwill impairment charge

 

 

 

58

 

 

 

148

 

Operating income

 

585

 

 

367

 

 

 

486

 

Interest expense

 

76

 

 

77

 

 

 

67

 

Other non-operating (expense) income, net

 

 

 

(5

)

 

 

(4

)

Gain on sale of businesses

 

2

 

 

 

 

 

1

 

Income before taxes

 

511

 

 

285

 

 

 

416

 

Income tax expense

 

84

 

 

31

 

 

 

15

 

Net income

 

427

 

 

254

 

 

 

401

 

Earnings per share:

 

 

 

 

 

Basic

$

2.37

 

$

1.41

 

 

$

2.23

 

Diluted

$

2.35

 

$

1.40

 

 

$

2.21

 

Weighted average number of shares:

 

 

 

 

 

Basic

 

180.2

 

 

180.1

 

 

 

180.0

 

Diluted

 

181.5

 

 

181.1

 

 

 

181.2

 

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In Millions, except per share amounts)

 

December 31,

2021

 

2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,349

 

 

$

1,875

 

Receivables, less allowances for discounts, returns and credit losses of $44 and $46 in 2021 and 2020, respectively

 

953

 

 

 

923

 

Inventories

 

700

 

 

 

558

 

Prepaid and other current assets

 

158

 

 

 

167

 

Total current assets

 

3,160

 

 

 

3,523

 

Property, plant and equipment, net

 

644

 

 

 

657

 

Goodwill

 

2,792

 

 

 

2,854

 

Other intangible assets, net

 

1,016

 

 

 

1,093

 

Other non-current assets

 

664

 

 

 

623

 

Total assets

$

8,276

 

 

$

8,750

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

639

 

 

$

569

 

Accrued and other current liabilities

 

752

 

 

 

787

 

Short-term borrowings and current maturities of long-term debt

 

 

 

 

600

 

Total current liabilities

 

1,391

 

 

 

1,956

 

Long-term debt, net

 

2,440

 

 

 

2,484

 

Accrued post-retirement benefits

 

438

 

 

 

519

 

Deferred income tax liabilities

 

287

 

 

 

242

 

Other non-current accrued liabilities

 

494

 

 

 

573

 

Total liabilities

 

5,050

 

 

 

5,774

 

Stockholders’ equity:

 

 

 

Common stock — par value $0.01 per share:

 

 

 

Authorized 750.0 shares, issued 195.6 and 194.9 shares in 2021 and 2020, respectively

 

2

 

 

 

2

 

Capital in excess of par value

 

2,089

 

 

 

2,037

 

Retained earnings

 

2,154

 

 

 

1,930

 

Treasury stock – at cost 15.2 shares and 14.5 shares in 2021 and 2020, respectively

 

(656

)

 

 

(588

)

Accumulated other comprehensive loss

 

(371

)

 

 

(413

)

Total stockholders’ equity

 

3,218

 

 

 

2,968

 

Non-controlling interest

 

8

 

 

 

8

 

Total equity

 

3,226

 

 

 

2,976

 

Total liabilities and stockholders’ equity

$

8,276

 

 

$

8,750

 

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions) (Unaudited)

 

Year Ended December 31,

2021

 

2020

 

2019

Operating Activities

 

 

 

 

 

Net income

$

427

 

 

$

254

 

 

$

401

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation

 

118

 

 

 

117

 

 

 

117

 

Amortization

 

127

 

 

 

134

 

 

 

140

 

Deferred income taxes

 

10

 

 

 

(31

)

 

 

(77

)

Share-based compensation

 

33

 

 

 

26

 

 

 

29

 

Restructuring and asset impairment charges

 

7

 

 

 

75

 

 

 

63

 

Goodwill impairment charge

 

 

 

 

58

 

 

 

148

 

Gain from sale of businesses

 

(2

)

 

 

 

 

 

(1

)

Other, net

 

8

 

 

 

46

 

 

 

9

 

Payments for restructuring

 

(25

)

 

 

(36

)

 

 

(30

)

Contributions to post-retirement benefit plans

 

(29

)

 

 

(27

)

 

 

(19

)

Changes in assets and liabilities (net of acquisitions):

 

 

 

 

 

Changes in receivables

 

(70

)

 

 

109

 

 

 

(23

)

Changes in inventories

 

(167

)

 

 

(5

)

 

 

47

 

Changes in accounts payable

 

81

 

 

 

(39

)

 

 

29

 

Changes in accrued liabilities

 

7

 

 

 

101

 

 

 

15

 

Changes in accrued taxes

 

(9

)

 

 

20

 

 

 

(13

)

Net changes in other assets and liabilities

 

22

 

 

 

22

 

 

 

4

 

Net Cash — Operating activities

 

538

 

 

 

824

 

 

 

839

 

Investing Activities

 

 

 

 

 

Capital expenditures

 

(208

)

 

 

(183

)

 

 

(226

)

Acquisitions of businesses and assets, net of cash acquired

 

 

 

 

 

 

 

(18

)

Proceeds from sale of businesses

 

10

 

 

 

 

 

 

 

Cash received from investments

 

3

 

 

 

200

 

 

 

11

 

Cash paid for investments

 

 

 

 

(200

)

 

 

(7

)

Cash received from cross-currency swaps

 

14

 

 

 

12

 

 

 

9

 

Other, net

 

(2

)

 

 

2

 

 

 

 

Net Cash — Investing activities

 

(183

)

 

 

(169

)

 

 

(231

)

Financing Activities

 

 

 

 

 

Short-term debt issued, net

 

 

 

 

359

 

 

 

281

 

Short-term debt repaid, net

 

 

 

 

(640

)

 

 

(254

)

Long-term debt issued, net

 

 

 

 

985

 

 

 

 

Long-term debt repaid, net

 

(600

)

 

 

 

 

 

 

Repurchase of common stock

 

(68

)

 

 

(61

)

 

 

(40

)

Proceeds from exercise of employee stock options

 

19

 

 

 

20

 

 

 

13

 

Dividends paid

 

(203

)

 

 

(188

)

 

 

(174

)

Other, net

 

(3

)

 

 

(2

)

 

 

(3

)

Net Cash — Financing activities

 

(855

)

 

 

473

 

 

 

(177

)

Effect of exchange rate changes on cash

 

(26

)

 

 

23

 

 

 

(3

)

Net change in cash and cash equivalents

 

(526

)

 

 

1,151

 

 

 

428

 

Cash and cash equivalents at beginning of year

 

1,875

 

 

 

724

 

 

 

296

 

Cash and cash equivalents at end of year

$

1,349

 

 

$

1,875

 

 

$

724

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

$

99

 

 

$

77

 

 

$

77

 

Income taxes (net of refunds received)

$

83

 

 

$

41

 

 

$

107

 

Xylem Inc. Non-GAAP Measures
 
Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity and management of assets. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to, dividends, acquisitions, share repurchases and debt repayment. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. These adjusted metrics are consistent with how management views our business and are used to make financial, operating and planning decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following items to represent the non-GAAP measures we consider to be key performance indicators, as well as the related reconciling items to the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
 
“Organic revenue" and "Organic orders” defined as revenue and orders, respectively, excluding the impact of fluctuations in foreign currency translation and contributions from acquisitions and divestitures. Divestitures include sales or discontinuance of insignificant portions of our business that did not meet the criteria for classification as a discontinued operation. The period-over-period change resulting from foreign currency translation impacts is determined by translating current period and prior period activity using the same currency conversion rate.
 
“Constant currency” defined as financial results adjusted for foreign currency translation impacts by translating current period and prior period activity using the same currency conversion rate. This approach is used for countries whose functional currency is not the U.S. dollar.
 
“EBITDA” defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” and "Adjusted Segment EBITDA" reflects the adjustments to EBITDA and segment EBITDA, respectively, to exclude share-based compensation charges, restructuring and realignment costs, gain or loss from sale of businesses and special charges.
 
"Adjusted EBITDA Margin" and "Adjusted Segment EBITDA margin" defined as adjusted EBITDA and adjusted segment EBITDA divided by total revenue and segment revenue, respectively.
 
"Adjusted Operating Income", "Adjusted Segment Operating Income", "Adjusted Net Income" and “Adjusted EPS” defined as operating income, segment operating income, net income and earnings per share, adjusted to exclude restructuring and realignment costs, gain or loss from sale of businesses, special charges and tax-related special items, as applicable.
 
"Adjusted Operating Margin" and "Adjusted Segment Operating Margin" defined as adjusted operating income and adjusted segment operating income divided by total revenue and segment revenue, respectively.
 
“Free Cash Flow” defined as net cash from operating activities, as reported in the Statement of Cash Flows, less capital expenditures, and "Free Cash Flow Conversion" defined as Free Cash Flows divided by net income, excluding the gain on sale of businesses, non-cash impairment charges and significant deferred tax items. Our definitions of "free cash flow" and "free cash flow conversion" do not consider certain non-discretionary cash payments, such as debt.
 
“Realignment costs” defined as costs not included in restructuring costs that are incurred as part of actions taken to reposition our business, including items such as professional fees, severance, relocation, travel, facility set-up and other costs.
 
“Special charges" defined as costs incurred by the Company, such as acquisition and integration related costs, non-cash impairment charges and both operating and non-operating adjustments for costs related to the UK pension plan buyout.
 
“Tax-related special items" defined as tax items, such as tax return versus tax provision adjustments, tax exam impacts, tax law change impacts, excess tax benefits/losses and other discrete tax adjustments.
Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & Constant Currency Orders ($ Millions)
 
(As Reported - GAAP) (As Adjusted - Organic) Constant Currency
(A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A
Change % Change Acquisitions /

Divestitures
Change % Change
Orders Orders 2021 v. 2020 2021 v. 2020 FX Impact Adj. 2021 v. 2020 Adj. 2021 v. 2020

2021

2020

Year Ended December 31
Xylem Inc.

6,300

5,033

1,267

25

%

12

(140

)

1,139

23

%

22

%

Water Infrastructure

2,471

2,134

337

16

%

-

(76

)

261

12

%

12

%

Applied Water

1,860

1,483

377

25

%

-

(39

)

338

23

%

23

%

Measurement & Control Solutions

1,969

1,416

553

39

%

12

(25

)

540

38

%

37

%

 
Quarter Ended December 31
Xylem Inc.

1,584

1,294

290

22

%

2

7

 

299

23

%

23

%

Water Infrastructure

598

464

134

29

%

-

4

 

138

30

%

30

%

Applied Water

451

410

41

10

%

-

1

 

42

10

%

10

%

Measurement & Control Solutions

535

420

115

27

%

2

2

 

119

28

%

28

%

 
Quarter Ended September 30
Xylem Inc.

1,518

1,246

272

22

%

2

(24

)

250

20

%

20

%

Water Infrastructure

623

558

65

12

%

-

(12

)

53

9

%

9

%

Applied Water

446

375

71

19

%

-

(7

)

64

17

%

17

%

Measurement & Control Solutions

449

313

136

43

%

2

(5

)

133

42

%

42

%

 
Quarter Ended June 30
Xylem Inc.

1,660

1,232

428

35

%

1

(74

)

355

29

%

29

%

Water Infrastructure

639

598

41

7

%

-

(41

)

-

0

%

0

%

Applied Water

486

326

160

49

%

-

(20

)

140

43

%

43

%

Measurement & Control Solutions

535

308

227

74

%

1

(13

)

215

70

%

69

%

 
Quarter Ended March 31
Xylem Inc.

1,538

1,261

277

22

%

7

(49

)

235

19

%

18

%

Water Infrastructure

611

514

97

19

%

-

(27

)

70

14

%

14

%

Applied Water

477

372

105

28

%

-

(13

)

92

25

%

25

%

Measurement & Control Solutions

450

375

75

20

%

7

(9

)

73

19

%

18

%

Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & Constant Currency Revenue ($ Millions)
 
(As Reported - GAAP) (As Adjusted - Organic) Constant Currency
(A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A
Change % Change Acquisitions /

Divestitures
Change % Change
Revenue Revenue 2021 v. 2020 2021 v. 2020 FX Impact Adj. 2021 v. 2020 Adj. 2021 v. 2020

2021

2020

Year Ended December 31
Xylem Inc.

5,195

4,876

319

 

7

%

13

(122

)

210

 

4

%

4

%

Water Infrastructure

2,247

2,079

168

 

8

%

-

(65

)

103

 

5

%

5

%

Applied Water

1,613

1,434

179

 

12

%

-

(34

)

145

 

10

%

10

%

Measurement & Control Solutions

1,335

1,363

(28

)

(2

%)

13

(23

)

(38

)

(3

%)

(4

%)

 
Quarter Ended December 31
Xylem Inc.

1,323

1,373

(50

)

(4

%)

6

8

 

(36

)

(3

%)

(3

%)

Water Infrastructure

622

616

6

 

1

%

-

5

 

11

 

2

%

2

%

Applied Water

406

395

11

 

3

%

-

2

 

13

 

3

%

3

%

Measurement & Control Solutions

295

362

(67

)

(19

%)

6

1

 

(60

)

(17

%)

(18

%)

 
Quarter Ended September 30
Xylem Inc.

1,265

1,220

45

 

4

%

2

(20

)

27

 

2

%

2

%

Water Infrastructure

547

524

23

 

4

%

-

(10

)

13

 

2

%

2

%

Applied Water

400

364

36

 

10

%

-

(7

)

29

 

8

%

8

%

Measurement & Control Solutions

318

332

(14

)

(4

%)

2

(3

)

(15

)

(5

%)

(5

%)

 
Quarter Ended June 30
Xylem Inc.

1,351

1,160

191

 

16

%

3

(66

)

128

 

11

%

11

%

Water Infrastructure

569

501

68

 

14

%

-

(36

)

32

 

6

%

6

%

Applied Water

414

337

77

 

23

%

-

(18

)

59

 

18

%

18

%

Measurement & Control Solutions

368

322

46

 

14

%

3

(12

)

37

 

11

%

11

%

 
Quarter Ended March 31
Xylem Inc.

1,256

1,123

133

 

12

%

2

(44

)

91

 

8

%

8

%

Water Infrastructure

509

438

71

 

16

%

-

(24

)

47

 

11

%

11

%

Applied Water

393

338

55

 

16

%

-

(11

)

44

 

13

%

13

%

Measurement & Control Solutions

354

347

7

 

2

%

2

(9

)

-

 

0

%

(1

%)

Xylem Inc. Non-GAAP Reconciliation
Adjusted Operating Income ($ Millions)
 
 
Q1 Q2 Q3 Q4 YTD

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

Total Revenue
• Total Xylem

1,256

 

1,123

 

1,351

 

1,160

 

1,265

 

1,220

 

1,323

 

1,373

 

5,195

 

4,876

 

• Water Infrastructure

509

 

438

 

569

 

501

 

547

 

524

 

622

 

616

 

2,247

 

2,079

 

• Applied Water

393

 

338

 

414

 

337

 

400

 

364

 

406

 

395

 

1,613

 

1,434

 

• Measurement & Control Solutions

354

 

347

 

368

 

322

 

318

 

332

 

295

 

362

 

1,335

 

1,363

 

 
Operating Income (Loss)
• Total Xylem

133

 

61

 

160

 

54

 

152

 

73

 

140

 

179

 

585

 

367

 

• Water Infrastructure

71

 

39

 

93

 

73

 

101

 

89

 

122

 

117

 

387

 

318

 

• Applied Water

66

 

47

 

64

 

41

 

60

 

56

 

50

 

61

 

240

 

205

 

• Measurement & Control Solutions

9

 

(12

)

13

 

(46

)

7

 

(62

)

(17

)

14

 

12

 

(106

)

• Total Segments

146

 

74

 

170

 

68

 

168

 

83

 

155

 

192

 

639

 

417

 

 
Operating Margin
• Total Xylem

10.6

%

5.4

%

11.8

%

4.7

%

12.0

%

6.0

%

10.6

%

13.0

%

11.3

%

7.5

%

• Water Infrastructure

13.9

%

8.9

%

16.3

%

14.6

%

18.5

%

17.0

%

19.6

%

19.0

%

17.2

%

15.3

%

• Applied Water

16.8

%

13.9

%

15.5

%

12.2

%

15.0

%

15.4

%

12.3

%

15.4

%

14.9

%

14.3

%

• Measurement & Control Solutions

2.5

%

(3.5

%)

3.5

%

(14.3

%)

2.2

%

(18.7

%)

(5.8

%)

3.9

%

0.9

%

(7.8

%)

• Total Segments

11.6

%

6.6

%

12.6

%

5.9

%

13.3

%

6.8

%

11.7

%

14.0

%

12.3

%

8.6

%

 
Special Charges
• Total Xylem

2

 

-

 

-

 

11

 

1

 

70

 

1

 

-

 

4

 

81

 

• Water Infrastructure

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

• Applied Water

1

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

• Measurement & Control Solutions

-

 

-

 

-

 

10

 

-

 

69

 

-

 

-

 

-

 

79

 

• Total Segments

1

 

-

 

-

 

10

 

-

 

69

 

-

 

-

 

1

 

79

 

 
Restructuring & Realignment Costs
• Total Xylem

8

 

9

 

6

 

43

 

2

 

15

 

6

 

10

 

22

 

77

 

• Water Infrastructure

5

 

5

 

4

 

8

 

1

 

8

 

2

 

7

 

12

 

28

 

• Applied Water

1

 

2

 

2

 

4

 

2

 

2

 

2

 

1

 

7

 

9

 

• Measurement & Control Solutions

2

 

2

 

-

 

31

 

(1

)

5

 

2

 

2

 

3

 

40

 

• Total Segments

8

 

9

 

6

 

43

 

2

 

15

 

6

 

10

 

22

 

77

 

 
Adjusted Operating Income (Loss)
• Total Xylem

143

 

70

 

166

 

108

 

155

 

158

 

147

 

189

 

611

 

525

 

• Water Infrastructure

76

 

44

 

97

 

81

 

102

 

97

 

124

 

124

 

399

 

346

 

• Applied Water

68

 

49

 

66

 

45

 

62

 

58

 

52

 

62

 

248

 

214

 

• Measurement & Control Solutions

11

 

(10

)

13

 

(5

)

6

 

12

 

(15

)

16

 

15

 

13

 

• Total Segments

155

 

83

 

176

 

121

 

170

 

167

 

161

 

202

 

662

 

573

 

 
Adjusted Operating Margin
• Total Xylem

11.4

%

6.2

%

12.3

%

9.3

%

12.3

%

13.0

%

11.1

%

13.8

%

11.8

%

10.8

%

• Water Infrastructure

14.9

%

10.0

%

17.0

%

16.2

%

18.6

%

18.5

%

19.9

%

20.1

%

17.8

%

16.6

%

• Applied Water

17.3

%

14.5

%

15.9

%

13.4

%

15.5

%

15.9

%

12.8

%

15.7

%

15.4

%

14.9

%

• Measurement & Control Solutions

3.1

%

(2.9

%)

3.5

%

(1.6

%)

1.9

%

3.6

%

(5.1

%)

4.4

%

1.1

%

1.0

%

• Total Segments

12.3

%

7.4

%

13.0

%

10.4

%

13.4

%

13.7

%

12.2

%

14.7

%

12.7

%

11.8

%

Xylem Inc. Non-GAAP Reconciliation
Adjusted Diluted EPS
($ Millions, except per share amounts)
 
Q4 2021 Q4 2020
As Reported Adjustments Adjusted As Reported Adjustments Adjusted
Total Revenue

 

1,323

 

 

-

 

 

1,323

 

 

1,373

 

 

-

 

 

1,373

 

Operating Income

 

140

 

 

7

 

a

 

147

 

 

179

 

 

10

 

a

 

189

 

Operating Margin

 

10.6

%

 

11.1

%

 

13.0

%

 

13.8

%

Interest Expense

 

(13

)

 

-

 

 

(13

)

 

(21

)

 

-

 

 

(21

)

Other Non-Operating Income (Expense)

 

(1

)

 

3

 

b

 

2

 

 

-

 

 

1

 

b

 

1

 

Gain/(Loss) From Sale of Business

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Income before Taxes

 

126

 

 

10

 

 

136

 

 

158

 

 

11

 

 

169

 

Provision for Income Taxes

 

(13

)

 

(8

)

c

 

(21

)

 

(10

)

 

(14

)

c

 

(24

)

Net Income Attributable to Xylem

 

113

 

 

2

 

 

115

 

 

148

 

 

(3

)

 

145

 

Diluted Shares

 

181.6

 

 

181.6

 

 

181.5

 

 

181.5

 

Diluted EPS

$

0.62

 

$

0.01

 

$

0.63

 

$

0.82

 

$

(0.01

)

$

0.81

 

 
Year-over-year currency translation impact on current year diluted EPS

$

(0.01

)

$

-

 

$

(0.01

)

Diluted EPS at Constant Currency

$

0.63

 

$

0.01

 

$

0.64

 

 
 
 
Q4 YTD 2021 Q4 YTD 2020
As Reported Adjustments Adjusted As Reported Adjustments Adjusted
Total Revenue

 

5,195

 

 

-

 

 

5,195

 

 

4,876

 

 

-

 

 

4,876

 

Operating Income

 

585

 

 

26

 

a

 

611

 

 

367

 

 

158

 

a

 

525

 

Operating Margin

 

11.3

%

 

11.8

%

 

7.5

%

 

10.8

%

Interest Expense

 

(76

)

 

-

 

 

(76

)

 

(77

)

 

-

 

 

(77

)

Other Non-Operating Income (Expense)

 

-

 

 

8

 

b

 

8

 

 

(5

)

 

5

 

b

 

-

 

Gain/(Loss) From Sale of Business

 

2

 

 

(2

)

 

-

 

 

-

 

 

-

 

 

-

 

Income before Taxes

 

511

 

 

32

 

 

543

 

 

285

 

 

163

 

 

448

 

Provision for Income Taxes

 

(84

)

 

(7

)

c

 

(91

)

 

(31

)

 

(43

)

c

 

(74

)

Net Income Attributable to Xylem

 

427

 

 

25

 

 

452

 

 

254

 

 

120

 

 

374

 

Diluted Shares

 

181.5

 

 

181.5

 

 

181.1

 

 

181.0

 

Diluted EPS

$

2.35

 

$

0.14

 

$

2.49

 

$

1.40

 

$

0.66

 

$

2.06

 

 
Year-over-year currency translation impact on current year diluted EPS

$

0.08

 

$

0.01

 

$

0.09

 

Diluted EPS at Constant Currency

$

2.27

 

$

0.13

 

$

2.40

 

a   Quarter-to-date: Restructuring & realignment costs of $6 million in 2021 and $10 million in 2020, as well as special charges of $1 million in 2021.
  Year-to-date: Restructuring & realignment costs of $22 million and $77 million in 2021 and 2020, respectively; special charges of $4 million ($1 million of intangible asset impairment charges and $3 million of other charges) and $81 million of special charges in 2020 ($79 million of intangible asset and goodwill impairment charges and $2 million of other charges).
b   Quarter-to-date: Special non-operating charges consist of $3 million in 2021 and $1 million in 2020 for costs related to the UK pension plan that is going to be part of a buyout.
  Year-to-date: Special non-operating charges consist of $8 million in 2021 and $5 million in 2020 for costs related to the UK pension plan that is going to be part of a buyout .
c   Quarter-to-date: Net tax impact on restructuring & realignment costs of $1 million in 2021 and $2 million in 2020; $1 million net tax impact on special charges in each of 2021 and 2020 and $6 million and $11 million in 2021 and 2020, respectively, of negative impact from tax related special benefits to GAAP tax.
  Year-to-date: Net tax impact on restructuring & realignment costs of $5 million and $17 million in 2021 and 2020, respectively; $2 million and $10 million of net tax impact on special charges in 2021 and 2020, respectively; and $16 million in 2020 of negative impact from tax related special benefits to GAAP tax.
Xylem Inc. Non-GAAP Reconciliation
Net Cash - Operating Activities vs. Free Cash Flow ($ Millions)
 

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 
Net Cash - Operating Activities

$

(26

)

$

(2

)

$

232

 

$

181

 

$

112

 

$

275

 

$

220

 

$

370

 

$

538

 

$

824

 

Capital Expenditures - PP&E

 

(22

)

 

(32

)

 

(25

)

 

(24

)

 

(33

)

 

(24

)

 

(62

)

 

(29

)

 

(142

)

 

(109

)

Capital Expenditures - Software

 

(17

)

 

(19

)

 

(16

)

 

(20

)

 

(14

)

 

(17

)

 

(19

)

 

(18

)

 

(66

)

 

(74

)

Capital Expenditures

 

(39

)

 

(51

)

 

(41

)

 

(44

)

 

(47

)

 

(41

)

 

(81

)

 

(47

)

 

(208

)

 

(183

)

Free Cash Flow

$

(65

)

$

(53

)

$

191

 

$

137

 

$

65

 

$

234

 

$

139

 

$

323

 

$

330

 

$

641

 

Net Income

 

87

 

 

38

 

 

113

 

 

31

 

 

114

 

 

37

 

 

113

 

 

148

 

 

427

 

 

254

 

Gain/(Loss) from sale of business

 

-

 

 

-

 

 

2

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2

 

 

-

 

Restructuring & Realignment Charges - non-cash impairment

 

(1

)

 

-

 

 

-

 

 

(17

)

 

-

 

 

(3

)

 

-

 

 

(1

)

 

(1

)

 

(21

)

Special Charges - non-cash impairment

 

(1

)

 

-

 

 

-

 

 

(10

)

 

-

 

 

(69

)

 

-

 

 

-

 

 

(1

)

 

(79

)

Net Income, excluding gain on sale of businesses, non-cash impairment charges and significant deferred tax items

$

89

 

$

38

 

$

111

 

$

58

 

$

114

 

$

109

 

$

113

 

$

149

 

$

427

 

$

354

 

 
Operating Cash Flow Conversion

 

(30

%)

 

(5

%)

 

205

%

 

584

%

 

98

%

 

743

%

 

195

%

 

250

%

 

126

%

 

324

%

Free Cash Flow Conversion

 

(73

%)

 

(139

%)

 

172

%

 

236

%

 

57

%

 

215

%

 

123

%

 

217

%

 

77

%

 

181

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
 
 

2021

Q1 Q2 Q3 Q4 Total
 
Net Income

87

 

113

 

114

 

113

 

427

 

Income Tax Expense

27

 

25

 

19

 

13

 

84

 

Interest Expense (Income), net

19

 

19

 

20

 

11

 

69

 

Depreciation

30

 

29

 

31

 

28

 

118

 

Amortization

32

 

33

 

31

 

31

 

127

 

EBITDA

195

 

219

 

215

 

196

 

825

 

Share-based Compensation

9

 

8

 

8

 

8

 

33

 

Restructuring & Realignment

8

 

6

 

2

 

6

 

22

 

Loss/(Gain) from sale of business

-

 

(2

)

-

 

-

 

(2

)

Special Charges

3

 

3

 

2

 

4

 

12

 

Adjusted EBITDA

215

 

234

 

227

 

214

 

890

 

Revenue

1,256

 

1,351

 

1,265

 

1,323

 

5,195

 

Adjusted EBITDA Margin

17.1

%

17.3

%

17.9

%

16.2

%

17.1

%

 

2020

Q1 Q2 Q3 Q4 Total
 
Net Income

38

 

31

 

37

 

148

 

254

 

Income Tax Expense

4

 

4

 

13

 

10

 

31

 

Interest Expense (Income), net

14

 

16

 

20

 

20

 

70

 

Depreciation

29

 

29

 

30

 

29

 

117

 

Amortization

35

 

33

 

33

 

33

 

134

 

EBITDA

120

 

113

 

133

 

240

 

606

 

Share-based Compensation

8

 

8

 

3

 

7

 

26

 

Restructuring & Realignment

9

 

43

 

15

 

10

 

77

 

Special Charges

1

 

13

 

71

 

1

 

86

 

Adjusted EBITDA

138

 

177

 

222

 

258

 

795

 

Revenue

1,123

 

1,160

 

1,220

 

1,373

 

4,876

 

Adjusted EBITDA Margin

12.3

%

15.3

%

18.2

%

18.8

%

16.3

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Water Infrastructure
 

2021

Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income

70

 

92

 

102

 

121

 

385

 

Interest Expense (Income), net

(1

)

(1

)

-

 

(1

)

(3

)

Depreciation

11

 

11

 

11

 

10

 

43

 

Amortization

2

 

2

 

1

 

3

 

8

 

EBITDA

82

 

104

 

114

 

133

 

433

 

Share-based Compensation

1

 

-

 

1

 

-

 

2

 

Restructuring & Realignment

5

 

4

 

1

 

2

 

12

 

Adjusted EBITDA

88

 

108

 

116

 

135

 

447

 

Revenue

509

 

569

 

547

 

622

 

2,247

 

Adjusted EBITDA Margin

17.3

%

19.0

%

21.2

%

21.7

%

19.9

%

 

2020

Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income

37

 

71

 

85

 

116

 

309

 

Interest Expense (Income), net

-

 

(1

)

-

 

-

 

(1

)

Depreciation

11

 

11

 

11

 

11

 

44

 

Amortization

4

 

5

 

2

 

2

 

13

 

EBITDA

52

 

86

 

98

 

129

 

365

 

Share-based Compensation

-

 

1

 

-

 

1

 

2

 

Restructuring & Realignment

5

 

8

 

8

 

7

 

28

 

Adjusted EBITDA

57

 

95

 

106

 

137

 

395

 

Revenue

438

 

501

 

524

 

616

 

2,079

 

Adjusted EBITDA Margin

13.0

%

19.0

%

20.2

%

22.2

%

19.0

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Applied Water
 

2021

Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income

66

 

65

 

60

 

48

 

239

 

Interest Expense (Income), net

-

 

-

 

-

 

-

 

-

 

Depreciation

5

 

5

 

5

 

5

 

20

 

Amortization

1

 

1

 

-

 

-

 

2

 

EBITDA

72

 

71

 

65

 

53

 

261

 

Share-based Compensation

1

 

1

 

1

 

1

 

4

 

Restructuring & Realignment

1

 

2

 

2

 

2

 

7

 

Loss/(Gain) from sale of business

-

 

(2

)

-

 

-

 

(2

)

Special Charges

1

 

-

 

-

 

-

 

1

 

Adjusted EBITDA

75

 

72

 

68

 

56

 

271

 

Revenue

393

 

414

 

400

 

406

 

1,613

 

Adjusted EBITDA Margin

19.1

%

17.4

%

17.0

%

13.8

%

16.8

%

 

2020

Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income

47

 

42

 

55

 

60

 

204

 

Interest Expense (Income), net

-

 

-

 

-

 

-

 

-

 

Depreciation

5

 

5

 

6

 

5

 

21

 

Amortization

1

 

-

 

1

 

1

 

3

 

EBITDA

53

 

47

 

62

 

66

 

228

 

Share-based Compensation

1

 

1

 

-

 

1

 

3

 

Restructuring & Realignment

2

 

4

 

2

 

1

 

9

 

Adjusted EBITDA

56

 

52

 

64

 

68

 

240

 

Revenue

338

 

337

 

364

 

395

 

1,434

 

Adjusted EBITDA Margin

16.6

%

15.4

%

17.6

%

17.2

%

16.7

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Measurement & Control Solutions
 

2021

Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income

*

8

 

12

 

7

 

(17

)

10

 

Interest Expense (Income), net

-

 

-

 

-

 

-

 

-

 

Depreciation

9

 

10

 

11

 

8

 

38

 

Amortization

27

 

27

 

27

 

26

 

107

 

EBITDA

44

 

49

 

45

 

17

 

155

 

Share-based Compensation

1

 

2

 

1

 

2

 

6

 

Restructuring & Realignment

2

 

-

 

(1

)

2

 

3

 

Adjusted EBITDA

47

 

51

 

45

 

21

 

164

 

Revenue

354

 

368

 

318

 

295

 

1,335

 

Adjusted EBITDA Margin

13.3

%

13.9

%

14.2

%

7.1

%

12.3

%

 

2020

Q1 Q2 Q3 Q4 Total
 
Pre-Tax (Loss) Income

(13

)

(46

)

(62

)

14

 

(107

)

Interest Expense (Income), net

-

 

-

 

-

 

-

 

-

 

Depreciation

9

 

8

 

9

 

9

 

35

 

Amortization

27

 

26

 

27

 

27

 

107

 

EBITDA

23

 

(12

)

(26

)

50

 

35

 

Share-based Compensation

2

 

1

 

1

 

1

 

5

 

Restructuring & Realignment

2

 

31

 

5

 

2

 

40

 

Special Charges

-

 

10

 

69

 

-

 

79

 

Adjusted EBITDA

27

 

30

 

49

 

53

 

159

 

Revenue

347

 

322

 

332

 

362

 

1,363

 

Adjusted EBITDA Margin

7.8

%

9.3

%

14.8

%

14.6

%

11.7

%

*Revised from previously reported Q1 income to adjust for a one-time income item that offsets with Corporate and Other in consolidation.

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Burlingame.com & California Media Partners, LLC. All rights reserved.