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© Welbilt, Inc.© Welbilt, Inc.
Investor Presentation
August 9, 2018
© Welbilt, Inc.© Welbilt, Inc.
Safe Harbor Statement
2
Certain statements in this presentation constitute “forward-looking statements” within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Statements contained in this presentation that are not
historical facts are forward-looking statements and include, for example, descriptions of the Company’s
operating and strategic plans, the Company’s growth objectives, and any assumptions on which those plans or
objectives are based. Such forward-looking statements involve known and unknown risks and uncertainties,
and our actual results could differ materially from future results expressed or implied in these forward-looking
statements. The forward-looking statements included in this presentation are based on our current beliefs and
expectations and speak only as of the date hereof. These statements are not guarantees or indicative of future
performance. Important assumptions, risks, uncertainties and factors that could cause actual results to differ
materially from those forward-looking statements are described in more detail under the caption "Risk
Factors" in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other
filings with the Securities and Exchange Commission. We do not intend, and, except as required by law, we
undertake no obligation, to update any of our forward-looking statements after the date of this presentation
to reflect any future events or circumstances. Given these risks and uncertainties, readers are cautioned not to
place undue reliance on such forward-looking statements.
© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.
Agenda1. Welbilt Introduction2. Global Foodservice Equipment Industry 3. Strategy4. Financials
© Welbilt, Inc.© Welbilt, Inc.
Welbilt at a Glance
4
Offering: Full-line of hot/cold products & systems
End Markets: All commercial kitchen operatorsChannels: 3500+ distributors & dealersEmployees: Approx. 5,800 globallyPresence: 52 locations in 15 countries Capabilities: World class design, manufacturing,
parts & service
2017 Revenue $1.45B
72% Americas
17% EMEA
11% APAC
by Region
by End Market1 by Channel2
Other 2%
Retail 8%
Business & Industry 10%
Education 6%
Healthcare 8%
Travel & Leisure 8%
Restaurants58%
Other General Markets 5%
Key Accounts 22%
Other Chains 6%
Dealers,Distributors,Buying Groups64%
1Estimate for WBT Americas 2Reflects gross sales for 2017. Includes all third party product sales.
Dealers,Distributors,
Buying Groups
67%
© Welbilt, Inc.© Welbilt, Inc.
Our heritage in the industry stretches back over a century, and our experience and expertise has grown tremendously over the years
5
1902 1945 1971 1995 20152008 20161966 1993 1997
1851 1910 1994 1995 1999 2000 2002 2004 20081982
Berisford 1929Henry and Alexander Hirsch establish the Welbilt Stove Co.
1995Berisford acquires Welbilt Corp. in the United States
1955Welbilt acquires Detroit-Michigan Stove Co (parent company of Garland) to become Welbilt Corp.
1982Frymaster joins the portfolio
1989Cleveland Range and Merco join the portfolio
1994Lincoln joins the portfolio
2000Berisford changes its name to Enodis
1998-1999Convotherm and Delfield join the portfolio
2008The Manitowoc Company acquires Enodis
1966Manitowoc Ice begins producing ice-machines
1995MTW acquires Kolpak
2000Merrychef and Multiplex join the portfolio
2016Manitowoc Foodservice spins-off from The Manitowoc Company
2015MFS launches its FitKitchen® (“Food Inspiring Technology”) initiative
2017Manitowoc Foodservice changes its name to Welbilt
2018Crem joins the portfolio
© Welbilt, Inc.© Welbilt, Inc.
Full Line Product Offering with Leading Brands that command #1 or #2 market share positions
6
CommercialFryers, Hot Holding
Beverage Equipment
Cold products (~40-45% revenue) Hot products (40-45% revenue) Parts & Service(~15-20% revenue)
Walk-inRefrigeration
Refrigeration &Prep. Stations
Ranges, Grills, Induction Steamers, Kettles & Skillets
Combi, Conveyor & High Speed Ovens
Ice-cubemachines
System Solutions Aftermarket Parts
© Welbilt, Inc.© Welbilt, Inc.
Top 5 Global End Customers
Long Standing Customer Relationships with large End Customers as well as US Channel Partners
7
Large End Customers typically designated as “Key Accounts”
US Channel Partners typically referred to as “General Market”
2017
Customer % of FY17 Revenue
# ofYears¹
End Customer 1 7.7% 55End Customer 2 3.8% 28End Customer 3 3.0% 58End Customer 4 2.3% 36End Customer 5 2.1% 51
2017
Customer % of FY17 Revenue
# ofYears¹
Dealer Customer 1 6.1% 30Dealer Customer 2 4.5% 9Dealer Customer 3 4.4% 9Dealer Customer 4 2.8% 29Dealer Customer 5 2.4% 23
Top 5 North America Buying Group Customers
Over 45 years average relationship with our top 5 end customers and
20 years average relationship with our top 5 dealer customers
1Source: Company estimates.
© Welbilt, Inc.© Welbilt, Inc.
2018U.S. Foodservice Equipment Needs1
Stable Revenue Base from Significant Replacement Demand and Large Installed Base
8
Predictable product replacement cycles support stable Welbilt revenue
Provides recurring, higher margin revenue and aids in maintaining customers
Over 75% of demand expected to be driven by replacement and renovations in 2018,
supporting stable revenue base
~15-20% of revenue generated by stable KitchenCare aftermarket
parts and service offering
KitchenCare
KitchenCare protects, services, and maintains foodservice equipment throughout the product lifecycle
Each new piece of Welbilt equipment comes with KitchenCare warranty Multiple levels of support available, depending on customer needProvides a stable source of recurring revenue
1 Foodservice Equipment and Supplies
Replacement51%
New Construction12%
Eco Friendly5%Site Expansion/
Add’l Dayparts6%
Renovations26%
© Welbilt, Inc.© Welbilt, Inc.
Awards & Recognitions for Leading Product Innovations
9
© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.
Agenda1. Welbilt Introduction2. Global Foodservice Equipment Industry 3. Strategy4. Financials
© Welbilt, Inc.© Welbilt, Inc.
SteadilyGrowing
FoodserviceIndustry
Positive Industry Fundamentals
11
Population & Income Growth
Health & Safety
New Concepts & New Markets
© Welbilt, Inc.© Welbilt, Inc.
Changing parameters for the Foodservice Equipment Market
12
Growing World PopulationPopulation tripled since 1950s;set to reach 9 billion by 2050
Augmenting per Capita IncomeExpected to exhibit continuedgrowth over 2015-2030 period
Enduring Customer Growth
Positive outlook for GM and QSRs with relatively
low volatility
Progressing Customer NeedsHigher focus on
customized & connected solutions, design, services
Changing Competitive LandscapeConsolidating industry with new
entrants and growing digital focus
Growing Global Competition Competition for and from new
markets e.g. Brazil, India, Nigeria
Increasing Consumer Choices
New / innovative dining concepts sought beyond
the mainstream
Evolving Consumer Lifestyles
Nutrition & safety top of mind, growing
customization demand
CAGR* 2.6%
CAGR* 2.7%
$24.0 $24.6 $25.2 $25.8 $26.5 $27.2 $28.0
2015 2016 2017 2018 2019 2020 2021*CAGR = Compound Annual Growth Rate
Global Industry Development in $B1
1 Management estimates derived from multiple third-party sources.
© Welbilt, Inc.© Welbilt, Inc.
47 Years of Restaurant-Industry1 Sales Demonstrate Non-Cyclicality of Foodservice Industry
13
Real (inflation-adjusted) percentage growth
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
1971 1976 1981 1986 1991 1996 2001 2006 2011 2016
1 National Restaurant Association defines restaurant industry as encompassing all meals prepared away from home including all takeout meals and beverages.Source: National Restaurant Association, 2017 Restaurant Industry Forecast
© Welbilt, Inc.© Welbilt, Inc.
Global Health & Food Safety Concerns also Drive Foodservice Equipment Demand
14
• Food safety a top priority
• Professional foodservice equipment facilitates proper food handling and reduces the risk of infection
• Environmental sustainability
• Reduction of unusable portions and waste
• Preventing premature food spoilage “Woman was sickened by
E. coli after eating contaminated lettuce”April 18, 2018
“Celebrity Chefs Hope to Press Congress on Food Waste”May 25, 2016
“Food Shippers in the U.S. Face New Rules”April 5, 2016
“Food safety: Five things to watch out for”May 23, 2016
“Here’s what it costs restaurants when a foodborne illness outbreak occurs”April 18, 2018
“Hotel Ice Machines Could Be Making You Sick”February 14, 2018
© Welbilt, Inc.© Welbilt, Inc.
Foodservice Operator Cost Pressures Are Fueling Demand for Innovation
15
TargetedInnovative
Product Solutions & Systems withShort Payback
Increasing Labor Cost
Increasing Real Estate Cost
Increasing Energy Cost
Need for Waste Avoidance
© Welbilt, Inc.© Welbilt, Inc.
Product Solutions Deliver Short Payback For Operators
16
Solution Performance Benefit to the Operator Typical Payback
Multiplex Fresh Blender
Next Generation – Self serve beverage station. Combines core MFS technologies: ice machine, beverage dispensing , blending and automated cleaningSingle piece of equipment to do multiple beverages vs. multiple pieces of equipment to do one beverage
Fully Automated self beverage station.Dispense, blend and serve – in the same cup serves hundreds of beverages per dayReduces waste and saves laborDrives incremental revenue & profitability
An average of 70 drinks per day provides an
operator payback as short as 6 months
Merrychef eikon® e2s
Up to 15x faster than conventional cooking methods: Toasted sandwich in 50 secondsVentless countertop oven with easy plug-n-play installation
Speed of service to meet consumer demand in all segmentsFlexibility to cover any part of the day with high quality foodEasy to use small footprint with big productionCertified ventlessAllows menu expansion to drive incremental revenue & profitability
An average of 150 food items sold a day provides an
operator payback as short as 3 monthsDue to versatility of Merrychef technology, further savings and quicker ROI can be obtained from removal of multiple appliances that Merrychef eikon e2s replaces
Convotherm 4 Multi-use and flexible foundation of the kitchen Superior menu versatility with unwavering quality Simplifies & optimizes kitchen operations
Extremely flexibleDelivers the highest quality, most-even cooking results possibleThe new standard for flexible, reliable self-cleaningRobust, high quality and reliabilityReduced operating costs
An average of 150 food items sold a day provides an
operator payback as short as 4 months Due to versatility of Convotherm technology, further savings and quicker ROI can be obtained from removal of multiple appliances that Convotherm 4 replaces
© Welbilt, Inc.© Welbilt, Inc.17
Digital – Welbilt’s view of the future
We’re designing the kitchen of the future to drive continuous improvements in performance for our customers. As their partners in navigating a new digital world, we will help them leverage data to optimize their processes and bottom line, improve the guest experience they deliver, and over time provide a platform that will enable them to continually adapt to our changing world.
OPTIMIZE TODAY’S BUSINESS MODEL
PERFECT TOMORROW’SCUSTOMER EXPERIENCE
TRANSFORMTHE FUTURE
Current State Future Vision
© Welbilt, Inc.© Welbilt, Inc.18
KitchenConnect – Re-envisioning the relationship customers have with Welbilt products and services
KITCHENCONNECTKITCHENCONNECT
PLATFORM
APPLICATIONS
INDIVIDUAL APPLIANCE
MENUALERTS
Developing functionality and management capability to deploy individual and sets of applications to individual product categories
Individual applications for individual product categories
KITCHENCONNECT
Unified complete application suites across all individual
product categories
Complete individual Systems
Unified complete application suites and establish
interconnectivity throughout the entire kitchen
Complete unifiedSystems
© Welbilt, Inc.© Welbilt, Inc.
19
Integrate, automate & simplify
FitKitchen - Bringing ideas to reality
• Provide solutions to customer kitchen performance problems• Reduce footprint & capital costs• Improving speed of service & food quality• Reduce complexity in the kitchen• Introduce new technologies and products• Digitally connected smarter kitchen systems & solutions• Intelligently automate • Complete systems & solutions
FitKitchen … Listening to hear the required solution
Research Analysis Synthesis Realization
© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.
Agenda1. Welbilt Introduction2. Global Foodservice Equipment Industry 3. Strategy4. Financials
© Welbilt, Inc.© Welbilt, Inc.
Vision, Mission & Values Set the Ambition
21
VisionWe are the global leader in professional foodservice equipment and systems.
MissionWe create value for customers, employees and shareholders by integrating food, technology and people to build and deliver the highest quality, innovative products and systems, offer best-in-class global service, and enable healthy and safe food experiences.
ValuesINTEGRITY – PASSION – TEAMWORK – ENTREPRENEURSHIP – ACCOUNTABILITY
© Welbilt, Inc.© Welbilt, Inc.
Clear Strategic Objectives and Thrusts ...
22
Strategic Objectives Strategic Thrusts
AchievingProfitable Growth
• Strive for # 1 or #2 market share in every segment addressed• Grow organically short term, buy and build mid-term to outgrow market• Right-size and simplify to improve profitability
CreatingInnovative Products & Solutions
• Create game-changing product & system solutions in the entire kitchen• Actively address product competitiveness and lifecycle extensions• Move to global platforms to enhance cost position
DrivingOperational Excellence
• Move assembly closer to end markets and localize products• Use strategic sourcing to streamline vendor base• Drive lean manufacturing principles throughout the organization
Guaranteeing Customer Satisfaction
• Grow KitchenCare parts & service to a bigger proportion of total business • Enhance process and delivery planning• Develop next generation distribution
Developing Great People
• Provide incentive schemes that motivate and drive performance• Identify, develop and grow key talent• Make Welbilt the employer of choice in our industry
© Welbilt, Inc.© Welbilt, Inc.
Sustainable, Above-Market Organic Growth
23
Target: 1-2% growth above industry
Large Chains
General Market
Disruptors
© Welbilt, Inc.© Welbilt, Inc.
...are the Levers that will Bridge the Gap to our Margin Ambition
24
2015EBITDA1
Margins “Mid-teens”
Purchasing &Supply Chain
Simplification
LeanMfg.
New Productsand Systems
Right-Sizing 80/20
PLS & CLS
The “1000 BPS Challenge” of gap closure is a multi-year journey.
Plant Rationalization
HeadcountReductions
KitchenCareImprovements
Product Costs& Platforms
Achieved2016
EBITDA1
Margin Ambition
“Mid-to-high twenties
still to go“
Achieved2017
= Later Stage
“Runway Remaining”:Stage of Initiative Progress
= Mid Stage
= Early Stage
1 See Welbilt’s 2018 Q1 earnings release for the reconciliations from GAAP to non-GAAP measures.
Guidance Range2018
© Welbilt, Inc.© Welbilt, Inc.
2018 Priorities
25
Deliver profitable growth and operational excellence objectives1
Drive new product and new system solutions to fuel sales growth2
Delever the balance sheet3
Execute and integrate acquisitions4
© Welbilt, Inc.© Welbilt, Inc.26
Crem International Overview
Note: Financials converted from SEK into $ with SEK / USD FX rate 2017 average of 0.1172 26
2017 Revenue: ~SEK 767 M~US$90 M
Manufacturing Plants: 3Technology Centers: 3Sales Offices: 6Employees: ~400
Customers: 900+ in 80 countries
Installed Base: 700K+
Complete Coffee Offering Strong Brands
Geographic Footprint Served Markets
Hotels, Restaurants,
Catering
Office Coffee
Services
Convenience Stores
Espresso machines
Filter machines
Instant, liquid, freestanding
Aftermarket
Manual
Automatic
Manual
Automatic
© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.
Agenda1. Welbilt Introduction2. Global Foodservice Equipment Industry 3. Strategy4. Financials
© Welbilt, Inc.© Welbilt, Inc.
2018 Second Quarter Results
28
US$ in millions (except per share data) 2018 Q2 2017 Q2 Δ
- Organic Net Sales1 $395.3 $371.1 +6.5%
- Impact from acquisition2 $18.6 --- +5.0%
- FX translation impact2 $6.8 --- +1.9%
Net sales $420.7 $371.1 +13.4%
Adjusted Operating EBITDA1
Adjusted Operating EBITDA margin1
- Organic business contribution- Crem acquisition contribution
$75.517.9%
$66.918.0%
+12.9%(10 bps)
+10 bps(20 bps)
Adjusted Net Earnings1 $28.8 $31.8 (9.4%)
Adjusted Diluted EPS1 $0.20 $0.23 (13.0%)
Delivers sales and Adjusted Operating EBITDA growth over prior year1
1 See Welbilt’s 2018 Q2 earnings release for the reconciliations from GAAP to non-GAAP measures.2 Reflects percentage impact of adjusting items between net sales and Organic Net Sales.
© Welbilt, Inc.© Welbilt, Inc.
12 Consecutive Quarters of YOY Adjusted Operating EBITDA1 Growth
29
1 See Welbilt’s 2018 Q2 earnings release for the reconciliations from GAAP to non-GAAP measures.2 Amounts presented for the years 2014, 2015 and 2016 and the respective quarters within those years do not include the impact of adoption of accounting guidance in Accounting Standards Update (“ASU”) 2017-07 related to the presentation of net periodic pension and postretirement benefit costs. The impact of this ASU results in the reclassification of certain costs from “Selling, general and administrative expenses” to “Other expense – net” in the consolidated statement of operations.
$62.6 $47.7
$29.4
$62.5 $68.5 $69.3
$229.7
$50.1
$63.8 $76.3 $69.8
$260.0
$53.0
$66.9 $81.9 $75.1
$276.9
$55.3 $75.5
$0
$50
$100
$150
$200
$250
$300
Q1 Q2 Q3 Q4 FY/YTD
Adju
sted
Ope
ratin
g EB
ITDA
1(in
$ m
illio
ns)
2014 2015 2016 2017 20182 22
© Welbilt, Inc.© Welbilt, Inc.
2018 YTD Results
30
US$ in millions (except per share data) 2018 YTD 2017 YTD Δ
- Organic Net Sales1 $735.4 $699.1 +5.2%
- Impact from acquisition2 $18.6 --- +2.7%
- FX translation impact2 $17.1 --- +2.4%
Net sales $771.1 $699.1 +10.3%
Adjusted Operating EBITDA1
Adjusted Operating EBITDA margin1$130.817.0%
$119.917.2%
+9.1%(20 bps)
Adjusted Net Earnings1 $50.1 $43.6 +14.9%
Adjusted Diluted EPS1 $0.35 $0.31 +12.9%
Delivers sales, Adjusted Operating EBITDA and EPS growth over prior year1
1 See Welbilt’s 2018 Q2 earnings release for the reconciliations from GAAP to non-GAAP measures.2 Reflects percentage impact of adjusting items between net sales and Organic Net Sales.
© Welbilt, Inc.© Welbilt, Inc.
2018 Full-Year Guidance Details
31
Organic Net Sales growth
Now between 2% and 5% (previously between 1% and 4%)
- General market gradually improves in 2H- Continued sales increases from large chains- Incremental sales from initial FitKitchen® system rollouts
Adjusted Operating EBITDA margin
Now between 19.1% and 20.1% (previously between 19.5% and 21.0%)
- Crem acquisition (~-20 bps)- Section 301 tariffs (~-20 bps)
Adjusted Diluted EPS
Between $0.80 and $0.90 per share
- Interest expense ~$90 million- Effective tax rate of 28% to 30%- Assumes 141.0 million fully diluted shares outstanding- Includes $0.02 from Crem acquisition
(excludes restructuring, gains or losses from impairment or disposal of assets, acquisition transaction/integration costs, debt extinguishment expenses and foreign currency transaction gains and losses)
© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.
32
Appendix: Additional Materials
© Welbilt, Inc.© Welbilt, Inc.
2018 Second Quarter Results - GAAP
33
US$ in millions (except % and per share data) 2018 Q2 2017 Q2 Δ
Net sales $420.7 $371.1 +13.4%
Earnings from operations margin1 13.2% 14.7% (150 bps)
Interest expense $23.1 $21.0
Loss on early extinguishment of debt --- $0.2
Other expense – net1 $15.3 $3.3
Effective tax rate 29.7% (0.7%)
Net earnings $12.1 $30.1 (59.8%)
Diluted EPS $0.09 $0.21 (57.1%)
1 Prior year presentation adjusted for $0.4 million of periodic pension costs that have been reclassified from Selling, general and administrative expenses to Other expense – net in accordance with the adoption of accounting guidance in Accounting Standards Update 2017-07.
© Welbilt, Inc.© Welbilt, Inc.
2018 Adjusted Operating EBITDA by Quarter
34
(US$ in millions) Q1 Q2 Q3 Q4 2018-YTD
Net earnings $12.5 $12.1 $24.6
Incomes taxes 0.3 5.1 5.4
Other expense - net 8.5 15.3 23.8
Interest expense 20.3 23.1 43.4(Gain) from impairment or disposal of assets – net (0.1) (0.1) (0.2)
Restructuring expense 0.4 1.4 1.8
Separation expense 0.1 --- 0.1
Amortization expense 7.9 9.4 17.3
Depreciation expense 4.2 4.5 8.7
Transaction costs1 1.2 4.7 5.9
Adjusted Operating EBITDA $55.3 $75.5 $130.8
Adjusted Operating EBITDA margin2 15.8% 17.9% 17.0%
1 Transaction costs include professional services and other direct acquisition costs in connection with the acquisition of Crem.2 Adjusted Operating EBITDA margin is calculated by dividing Adjusted Operating EBITDA by net sales.
© Welbilt, Inc.© Welbilt, Inc.
2017 Adjusted Operating EBITDA by Quarter
35
(US$ in millions) Q1 Q2 Q3 Q4 FY2017
Net earnings $5.0 $30.1 $33.1 $65.8 $134.0
Incomes taxes 2.1 (0.2) 11.9 (29.0) (15.2)
Other expense – net1 1.8 3.3 3.0 2.4 10.5
Loss on early extinguishment of debt 3.2 0.2 1.0 --- 4.4
Interest expense 23.2 21.0 21.7 21.0 86.9(Gain) loss from impairment or disposal of assets – net 0.4 (0.6) (3.9) 0.1 (4.0)
Restructuring expense 4.6 1.1 2.8 2.3 10.8
Separation expense 0.9 0.3 0.3 0.1 1.6
Amortization expense 7.8 7.7 7.9 7.8 31.2
Depreciation expense 4.0 4.0 4.1 4.6 16.7
Adjusted Operating EBITDA $53.0 $66.9 $81.9 $75.1 $276.9
Adjusted Operating EBITDA margin2 16.2% 18.0% 21.5% 20.5% 19.2%
1 Adjusted for periodic pension costs that have been reclassified from Selling, general and administrative to Other expense – net in accordance with the adoption of accounting guidance in Accounting Standards Update 2017-07.2 Adjusted Operating EBITDA margin is calculated by dividing Adjusted Operating EBITDA by net sales.
© Welbilt, Inc.© Welbilt, Inc.
2018 Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share by Quarter
36
(US$ in millions) Q1 Q2 Q3 Q4 2018-YTD
Net earnings $12.5 $12.1 $24.6(Gain) from impairment or disposal of assets –net (0.1) (0.1) (0.2)
Restructuring expense 0.4 1.4 1.8
Separation expense 0.1 --- 0.1
Transaction costs1 9.0 6.9 15.9
Foreign currency transaction gains/losses2 (0.8) 11.2 10.4
Tax effect of adjustments3 0.2 (2.7) (2.5)
Adjusted Net Earnings $21.3 $28.8 $50.1
(US$) Q1 Q2 Q3 Q4 2018-YTD
Diluted earnings per share $0.09 $0.09 $0.17(Gain) from impairment or disposal of assets –net per share --- --- ---
Restructuring expense per share --- 0.01 0.01
Separation expense per share --- --- ---
Transaction costs per share1 0.06 0.04 0.12Foreign currency transaction gains/losses per share2 --- 0.08 0.07
Tax effect of adjustments per share3 --- (0.02) (0.02)
Adjusted Diluted Net Earnings Per Share $0.15 $0.20 $0.35
1 Transaction costs include a loss related to a foreign currency hedge of the acquisition purchase price and professional services and other direct acquisition costs in connection with the acquisition of Crem.2 Foreign currency transaction gains/losses are inclusive of gains/losses on related foreign currency exchange contracts not designated as hedging instruments for accounting purposes.3 The tax effect of adjustments is determined using the statutory rates for the countries comprising such adjustments.
© Welbilt, Inc.© Welbilt, Inc.
2017 Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share by Quarter
37
(US$ in millions) Q1 Q2 Q3 Q4 FY2017
Net earnings $5.0 $30.1 $33.1 $65.8 $134.0(Gain) loss from impairment or disposal of assets – net 0.4 (0.6) (3.9) 0.1 (4.0)
Restructuring expense 4.6 1.1 2.8 2.3 10.8
Separation expense 0.9 0.3 0.3 0.1 1.6
Loss on early extinguishment of debt 3.2 0.2 1.0 --- 4.4
Foreign currency transaction loss1 1.6 1.5 1.9 1.5 6.5
Tax Cuts and Jobs Act --- --- --- (32.0) (32.0)
Tax effect of adjustments2 (3.9) (0.8) (2.0) (0.9) (7.6)
Adjusted Net Earnings $11.8 $31.8 $33.2 $36.9 $113.7
(US$) Q1 Q2 Q3 Q4 FY2017
Diluted earnings per share $0.04 $0.21 $0.24 $0.47 $0.95(Gain) loss from impairment or disposal of assets – net per share --- --- (0.03) --- (0.03)
Restructuring expense per share 0.03 0.01 0.02 0.02 0.08
Separation expense per share 0.01 --- --- --- 0.01
Loss on early extinguishment of debt per share 0.02 --- 0.01 --- 0.03
Foreign currency transaction loss per share1 0.01 0.01 0.01 --- 0.05
Tax Cuts and Jobs Act --- --- --- (0.23) (0.23)
Tax effect of adjustments per share2 (0.03) --- (0.01) --- (0.05)
Adjusted Diluted Net Earnings Per Share $0.08 $0.23 $0.24 $0.26 $0.81
1 Foreign currency transaction gains/losses are inclusive of gains/losses on related foreign currency exchange contracts not designated as hedging instruments for accounting purposes.2 The tax effect of adjustments is determined using the statutory rates for the countries comprising such adjustments.
© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.© Welbilt, Inc.
38