Allegion (NYSE: ALLE) Reports Q4, Full-Year 2023 Financial Results, Introduces 2024 Outlook
Solid Q4 execution, record full-year results
Quarterly Financial Highlights
(All comparisons against the fourth quarter of 2022, unless otherwise noted)
-
Net earnings per share (EPS) of
$1.34 , down 12.4% compared with$1.53 ; Adjusted EPS of$1.68 , down 0.6% compared with$1.69 -
Revenues of
$897.4 million , up 4.2% on a reported basis and up 2.6% on an organic basis - Operating margin of 17.8%, compared with 18.5%; Adjusted operating margin of 22.0%, up 130 basis points compared with 20.7%
Full-Year Financial Highlights
(All comparisons against the full year of 2022, unless otherwise noted)
-
EPS of
$6.12 , up 17.9% compared with$5.19 ; Adjusted EPS of$6.96 , up 16.2% compared with$5.99 -
Revenues of
$3,650.8 million , up 11.6% on a reported basis and up 5.2% on an organic basis - Operating margin of 19.4%, compared with 17.9%; Adjusted operating margin of 22.1%, up 160 basis points compared with 20.5%
-
Available cash flow, which is defined as net cash from operating activities minus capital expenditures, was
$516.4 million for 2023, an increase of 30.6% versus the prior year
2024 Full-Year Outlook Highlights
- Full-year reported revenue growth is estimated to be 1.5% to 3.5%, with organic revenue growth estimated to be 1% to 3%
-
Full-year adjusted EPS is estimated to be
$7.00 to$7.15 -
Available cash flow is estimated to be
$540 to$570 million
“Allegion’s fourth quarter reflected strong execution, margin expansion and cash generation by our team,” said President and CEO
“As we look ahead to 2024, we are focused on consistent execution of our strategy and balanced capital deployment, against what we expect to be a stable market backdrop. Committed to our vision of enabling seamless access and a safer world, we’ll deliver yet another year of growth.”
Q4 2023 Company Results
(All comparisons against the fourth quarter of 2022, unless otherwise noted)
Fourth-quarter 2023 net revenues increased 4.2%. Net revenues increased 2.6% on an organic basis, excluding impacts of acquisitions, divestitures and foreign currency movements. Solid growth in the company’s non-residential
Fourth-quarter 2023 operating income was
Fourth-quarter 2023 operating margin was 17.8%, compared with 18.5%. The adjusted operating margin in fourth-quarter 2023 was 22.0%, compared with 20.7%. The 130-basis-point increase in adjusted operating margin is attributable to positive price and productivity net of inflation and investments. These increases were partially offset by lower volumes.
Q4 2023 Segment Results
(All comparisons against the fourth quarter of 2022, unless otherwise noted)
The
The International segment revenues increased 5.9% (down 1.3% on an organic basis). Positive price realization was more than offset by the impact of soft end markets. The reported revenue reflects a positive impact from foreign currency and acquisitions.
Full-Year 2023 Company Results
(All comparisons against the full year of 2022, unless otherwise noted)
Full-year 2023 net revenues increased 11.6%. Net revenues increased 5.2% on an organic basis, excluding impacts of acquisitions, divestitures and foreign currency movements. Favorable price was more than offset by lower volumes experienced in the mechanical portfolio. The company had approximately 20% global organic growth in electronics and software solutions in the year. The reported revenue reflects a positive impact from foreign currency and acquisitions.
Full-year 2023 operating income was
Full-year 2023 operating margin was 19.4%, compared with 17.9%. The adjusted operating margin for full-year 2023 was 22.1%, compared with 20.5%. The 160-basis-point increase in adjusted operating margin is attributable to positive price and productivity net of inflation and investments. These increases were partially offset by lower volumes.
Additional Items
(All comparisons against the fourth quarter of 2022, unless otherwise noted)
Interest expense for fourth-quarter 2023 was
Other income, net for fourth-quarter 2023 was
The company’s effective tax rate for fourth-quarter 2023 was 13.4%, compared with 3.4%. The company’s adjusted effective tax rate for fourth-quarter 2023 was 16.4%, compared with 6.2%, driven by timing of discrete items. The company’s adjusted effective tax rate for full-year 2023 was 14.3%, compared with 12.7% in 2022.
Cash Flow and Liquidity
Year-to-date available cash flow for 2023 was
Share Repurchase and Dividends
For the year, the company repurchased approximately 0.5 million shares for approximately
2024 Full-Year Outlook
The company expects full-year 2024 revenues to increase 1.5% to 3.5% on a reported basis and increase 1% to 3% organically, when compared to 2023, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.
Full-year 2024 reported EPS is expected to be in the range of
Adjustments to 2024 EPS include estimated impacts of approximately
The outlook assumes an average diluted share count for the full year of approximately 88 million shares.
The company expects full-year available cash flow of approximately
Conference Call Information
On
A real-time, listen-only webcast of the conference call will be broadcast live online. Individuals wishing to listen may access the call through the company's website at https://investor.allegion.com.
About
For more, visit www.allegion.com.
Non-GAAP Measures
This news release includes adjusted non-GAAP financial information which should be considered supplemental to, not a substitute for or superior to, the financial measure calculated in accordance with GAAP. The company presents operating income, operating margin, effective tax rate, net earnings and diluted earnings per share (EPS) on both a
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements under the headings “2024 Full-Year Outlook Highlights,” “2024 Full-Year Outlook” and statements regarding the company's 2024 and future financial performance, the company’s business plans and strategy, the company’s growth strategy, the company’s capital allocation strategy, the company’s ability to successfully complete and integrate acquisitions and achieve anticipated strategic and financial benefits and the performance of the markets in which the company operates. These forward-looking statements generally are identified by the words “believe,” “aim,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax rate and provisions, earnings, cash flows, benefit obligations, dividends, share purchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Undue reliance should not be placed on any forward-looking statements, as these statements are based on the company's currently available information and our current assumptions, expectations and projections about future events. They are subject to future events, risks and uncertainties - many of which are beyond the company’s control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Important factors and other risks that may affect the company's business or that could cause actual results to differ materially are included in filings the company makes with the
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Condensed and Consolidated Income Statements |
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(In millions, except per share data) |
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UNAUDITED |
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Three months ended |
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Year ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net revenues |
$ |
897.4 |
|
|
$ |
861.5 |
|
|
$ |
3,650.8 |
|
|
$ |
3,271.9 |
|
Cost of goods sold |
|
512.1 |
|
|
|
510.8 |
|
|
|
2,069.3 |
|
|
|
1,949.5 |
|
Gross profit |
|
385.3 |
|
|
|
350.7 |
|
|
|
1,581.5 |
|
|
|
1,322.4 |
|
|
|
|
|
|
|
|
|
||||||||
Selling and administrative expenses |
|
218.1 |
|
|
|
191.3 |
|
|
|
865.6 |
|
|
|
736.0 |
|
Impairment of intangible assets |
|
7.5 |
|
|
|
— |
|
|
|
7.5 |
|
|
|
— |
|
Operating income |
|
159.7 |
|
|
|
159.4 |
|
|
|
708.4 |
|
|
|
586.4 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
22.9 |
|
|
|
23.7 |
|
|
|
93.1 |
|
|
|
75.9 |
|
Loss on divestitures |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.6 |
|
Other income, net |
|
(0.1 |
) |
|
|
(4.5 |
) |
|
|
(1.9 |
) |
|
|
(11.6 |
) |
Earnings before income taxes |
|
136.9 |
|
|
|
140.2 |
|
|
|
617.2 |
|
|
|
514.5 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
18.3 |
|
|
|
4.8 |
|
|
|
76.6 |
|
|
|
56.2 |
|
Net earnings |
|
118.6 |
|
|
|
135.4 |
|
|
|
540.6 |
|
|
|
458.3 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Net earnings attributable
|
|
— |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings attributable to |
$ |
118.6 |
|
|
$ |
135.3 |
|
|
$ |
540.4 |
|
|
$ |
458.0 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per ordinary share |
|
|
|
|
|
|
|
||||||||
attributable to |
$ |
1.35 |
|
|
$ |
1.54 |
|
|
$ |
6.15 |
|
|
$ |
5.20 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per ordinary share |
|
|
|
|
|
|
|
||||||||
attributable to |
$ |
1.34 |
|
|
$ |
1.53 |
|
|
$ |
6.12 |
|
|
$ |
5.19 |
|
|
|
|
|
|
|
|
|
||||||||
Shares outstanding - basic |
|
87.8 |
|
|
|
87.9 |
|
|
|
87.9 |
|
|
|
88.0 |
|
Shares outstanding - diluted |
|
88.2 |
|
|
|
88.3 |
|
|
|
88.3 |
|
|
|
88.3 |
|
|
|||||
Condensed and Consolidated Balance Sheets |
|||||
(In millions) |
|||||
|
|||||
UNAUDITED |
|||||
|
|
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
468.1 |
|
$ |
288.0 |
Accounts and notes receivables, net |
|
412.8 |
|
|
395.6 |
Inventories |
|
438.5 |
|
|
479.0 |
Other current assets |
|
41.5 |
|
|
48.5 |
Assets held for sale |
|
— |
|
|
3.5 |
Total current assets |
|
1,360.9 |
|
|
1,214.6 |
Property, plant and equipment, net |
|
358.1 |
|
|
308.7 |
|
|
1,443.1 |
|
|
1,413.1 |
Intangible assets, net |
|
572.8 |
|
|
608.9 |
Other noncurrent assets |
|
576.6 |
|
|
445.9 |
Total assets |
$ |
4,311.5 |
|
$ |
3,991.2 |
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
||
Accounts payable |
$ |
259.2 |
|
$ |
280.7 |
Accrued expenses and other current liabilities |
|
407.9 |
|
|
410.3 |
Short-term borrowings and current maturities of long-term debt |
|
412.6 |
|
|
12.6 |
Total current liabilities |
|
1,079.7 |
|
|
703.6 |
Long-term debt |
|
1,602.4 |
|
|
2,081.9 |
Other noncurrent liabilities |
|
311.1 |
|
|
261.2 |
Equity |
|
1,318.3 |
|
|
944.5 |
Total liabilities and equity |
$ |
4,311.5 |
|
$ |
3,991.2 |
|
|||||||
Condensed and Consolidated Statements of Cash Flows |
|||||||
(In millions) |
|||||||
|
|||||||
UNAUDITED |
|||||||
|
Year ended |
||||||
|
2023 |
|
2022 |
||||
Operating Activities |
|
|
|
||||
Net earnings |
$ |
540.6 |
|
|
$ |
458.3 |
|
Depreciation and amortization |
|
111.6 |
|
|
|
97.9 |
|
Changes in assets and liabilities and other non-cash items |
|
(51.6 |
) |
|
|
(96.7 |
) |
Net cash provided by operating activities |
|
600.6 |
|
|
|
459.5 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures |
|
(84.2 |
) |
|
|
(64.0 |
) |
Acquisition of and equity investments in businesses, net of cash acquired |
|
(31.7 |
) |
|
|
(923.1 |
) |
Other investing activities, net |
|
(13.2 |
) |
|
|
(7.0 |
) |
Net cash used in investing activities |
|
(129.1 |
) |
|
|
(994.1 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Net (repayments on) proceeds from debt |
|
(81.6 |
) |
|
|
656.4 |
|
Debt financing costs |
|
— |
|
|
|
(10.2 |
) |
Dividends paid to ordinary shareholders |
|
(158.7 |
) |
|
|
(143.9 |
) |
Repurchase of ordinary shares |
|
(59.9 |
) |
|
|
(61.0 |
) |
Other financing activities, net |
|
1.5 |
|
|
|
(4.3 |
) |
Net cash provided by (used in) financing activities |
|
(298.7 |
) |
|
|
437.0 |
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
7.3 |
|
|
|
(12.3 |
) |
Net increase (decrease) in cash and cash equivalents |
|
180.1 |
|
|
|
(109.9 |
) |
Cash and cash equivalents - beginning of period |
|
288.0 |
|
|
|
397.9 |
|
Cash and cash equivalents - end of period |
$ |
468.1 |
|
|
$ |
288.0 |
|
SUPPLEMENTAL SCHEDULES |
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SCHEDULE 1 |
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SELECTED OPERATING SEGMENT INFORMATION |
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(In millions) |
|||||||||||||||
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|
|
|
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|
Three months ended |
|
Year ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net revenues |
|
|
|
|
|
|
|
||||||||
Allegion Americas |
$ |
704.6 |
|
|
$ |
679.5 |
|
|
$ |
2,913.6 |
|
|
$ |
2,530.7 |
|
|
|
192.8 |
|
|
|
182.0 |
|
|
|
737.2 |
|
|
|
741.2 |
|
Total net revenues |
$ |
897.4 |
|
|
$ |
861.5 |
|
|
$ |
3,650.8 |
|
|
$ |
3,271.9 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (expense) |
|
|
|
|
|
|
|
||||||||
Allegion Americas |
$ |
175.0 |
|
|
$ |
156.8 |
|
|
$ |
757.2 |
|
|
$ |
611.2 |
|
|
|
17.9 |
|
|
|
23.0 |
|
|
|
58.1 |
|
|
|
70.4 |
|
Corporate unallocated |
|
(33.2 |
) |
|
|
(20.4 |
) |
|
|
(106.9 |
) |
|
|
(95.2 |
) |
Total operating income |
$ |
159.7 |
|
|
$ |
159.4 |
|
|
$ |
708.4 |
|
|
$ |
586.4 |
|
|
SCHEDULE 2 |
|
|
The Company presents operating income, operating margin, net earnings and diluted earnings per share (EPS) on both a |
|
|
|
The Company defines the presented non-GAAP measures as follows: |
|
|
|
These non-GAAP measures may not be defined and calculated the same as similar measures used by other companies. |
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP NET EARNINGS |
|
|
|
(In millions, except per share data) |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||
|
Reported |
|
Adjustments |
|
Adjusted
|
|
Reported |
|
Adjustments |
|
Adjusted
|
||||||||||
Net revenues |
$ |
897.4 |
|
|
$ |
— |
|
$ |
897.4 |
|
|
$ |
861.5 |
|
|
$ |
— |
|
$ |
861.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
159.7 |
|
|
|
37.5 |
(1) |
|
197.2 |
|
|
|
159.4 |
|
|
|
19.3 |
(1) |
|
178.7 |
|
Operating margin |
|
17.8 |
% |
|
|
|
|
22.0 |
% |
|
|
18.5 |
% |
|
|
|
|
20.7 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings before income taxes |
|
136.9 |
|
|
|
40.7 |
(2) |
|
177.6 |
|
|
|
140.2 |
|
|
|
19.2 |
(2) |
|
159.4 |
|
Provision for income taxes |
|
18.3 |
|
|
|
10.8 |
(3) |
|
29.1 |
|
|
|
4.8 |
|
|
|
5.1 |
(3) |
|
9.9 |
|
Effective income tax rate |
|
13.4 |
% |
|
|
|
|
16.4 |
% |
|
|
3.4 |
% |
|
|
|
|
6.2 |
% |
||
Net earnings |
|
118.6 |
|
|
|
29.9 |
|
|
148.5 |
|
|
|
135.4 |
|
|
|
14.1 |
|
|
149.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noncontrolling interests |
|
— |
|
|
|
— |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings attributable to
|
$ |
118.6 |
|
|
$ |
29.9 |
|
$ |
148.5 |
|
|
$ |
135.3 |
|
|
$ |
14.1 |
|
$ |
149.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per ordinary
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
1.34 |
|
|
$ |
0.34 |
|
$ |
1.68 |
|
|
$ |
1.53 |
|
|
$ |
0.16 |
|
$ |
1.69 |
|
(1) |
Adjustments to operating income for the three months ended |
|
(2) |
Adjustments to earnings before income taxes for the three months ended |
|
(3) |
Adjustments to the provision for income taxes for the three months ended |
|
Year ended |
|
Year ended |
||||||||||||||||||
|
Reported |
|
Adjustments |
|
Adjusted
|
|
Reported |
|
Adjustments |
|
Adjusted
|
||||||||||
Net revenues |
$ |
3,650.8 |
|
|
$ |
— |
|
$ |
3,650.8 |
|
|
$ |
3,271.9 |
|
|
$ |
— |
|
$ |
3,271.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
708.4 |
|
|
|
97.2 |
(1) |
|
805.6 |
|
|
|
586.4 |
|
|
|
85.6 |
(1) |
|
672.0 |
|
Operating margin |
|
19.4 |
% |
|
|
|
|
22.1 |
% |
|
|
17.9 |
% |
|
|
|
|
20.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings before income taxes |
|
617.2 |
|
|
|
100.4 |
(2) |
|
717.6 |
|
|
|
514.5 |
|
|
|
91.4 |
(2) |
|
605.9 |
|
Provision for income taxes |
|
76.6 |
|
|
|
25.9 |
(3) |
|
102.5 |
|
|
|
56.2 |
|
|
|
20.8 |
(3) |
|
77.0 |
|
Effective income tax rate |
|
12.4 |
% |
|
|
|
|
14.3 |
% |
|
|
10.9 |
% |
|
|
|
|
12.7 |
% |
||
Net earnings |
|
540.6 |
|
|
|
74.5 |
|
|
615.1 |
|
|
|
458.3 |
|
|
|
70.6 |
|
|
528.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noncontrolling interests |
|
0.2 |
|
|
|
— |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
— |
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings attributable to
|
$ |
540.4 |
|
|
$ |
74.5 |
|
$ |
614.9 |
|
|
$ |
458.0 |
|
|
$ |
70.6 |
|
$ |
528.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per ordinary
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
6.12 |
|
|
$ |
0.84 |
|
$ |
6.96 |
|
|
$ |
5.19 |
|
|
$ |
0.80 |
|
$ |
5.99 |
|
(1) |
Adjustments to operating income for the year ended |
|
(2) |
Adjustments to earnings before income taxes for the year ended |
|
(3) |
Adjustments to the provision for income taxes for the year ended |
|
SCHEDULE 3 |
||||||||||||
|
|||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP REVENUE AND OPERATING INCOME BY REGION |
|||||||||||||
(In millions) |
|||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||
|
As Reported |
|
Margin |
|
As Reported |
|
Margin |
||||||
Allegion Americas |
|
|
|
|
|
|
|
||||||
Net revenues (GAAP) |
$ |
704.6 |
|
|
|
|
$ |
679.5 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Operating income (GAAP) |
$ |
175.0 |
|
|
24.8 |
% |
|
$ |
156.8 |
|
|
23.1 |
% |
Restructuring charges |
|
2.9 |
|
|
0.4 |
% |
|
|
— |
|
|
— |
% |
Acquisition and integration costs |
|
2.1 |
|
|
0.3 |
% |
|
|
2.1 |
|
|
0.3 |
% |
Amortization of acquired intangible assets |
|
8.4 |
|
|
1.2 |
% |
|
|
10.7 |
|
|
1.5 |
% |
Amortization of inventory step up |
|
— |
|
|
— |
% |
|
|
0.5 |
|
|
0.1 |
% |
Adjusted operating income |
|
188.4 |
|
|
26.7 |
% |
|
|
170.1 |
|
|
25.0 |
% |
Depreciation and amortization |
|
8.9 |
|
|
1.3 |
% |
|
|
8.1 |
|
|
1.1 |
% |
Adjusted EBITDA |
$ |
197.3 |
|
|
28.0 |
% |
|
$ |
178.2 |
|
|
26.1 |
% |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
Net revenues (GAAP) |
$ |
192.8 |
|
|
|
|
$ |
182.0 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Operating income (loss) (GAAP) |
$ |
17.9 |
|
|
9.3 |
% |
|
$ |
23.0 |
|
|
12.6 |
% |
Restructuring charges |
|
1.2 |
|
|
0.6 |
% |
|
|
0.2 |
|
|
0.1 |
% |
Acquisition and integration costs |
|
0.4 |
|
|
0.2 |
% |
|
|
0.7 |
|
|
0.4 |
% |
Amortization of acquired intangible assets |
|
5.3 |
|
|
2.8 |
% |
|
|
4.7 |
|
|
2.6 |
% |
Impairment of intangible assets |
|
7.5 |
|
|
3.9 |
% |
|
|
— |
|
|
— |
% |
Adjusted operating income |
|
32.3 |
|
|
16.8 |
% |
|
|
28.6 |
|
|
15.7 |
% |
Depreciation and amortization |
|
4.3 |
|
|
2.2 |
% |
|
|
4.2 |
|
|
2.3 |
% |
Adjusted EBITDA |
$ |
36.6 |
|
|
19.0 |
% |
|
$ |
32.8 |
|
|
18.0 |
% |
|
|
|
|
|
|
|
|
||||||
Corporate |
|
|
|
|
|
|
|
||||||
Operating loss (GAAP) |
$ |
(33.2 |
) |
|
|
|
$ |
(20.4 |
) |
|
|
||
Restructuring charges |
|
1.0 |
|
|
|
|
|
— |
|
|
|
||
Acquisition and integration costs |
|
8.7 |
|
|
|
|
|
0.4 |
|
|
|
||
Adjusted operating loss |
|
(23.5 |
) |
|
|
|
|
(20.0 |
) |
|
|
||
Depreciation and amortization |
|
0.1 |
|
|
|
|
|
0.7 |
|
|
|
||
Adjusted EBITDA |
$ |
(23.4 |
) |
|
|
|
$ |
(19.3 |
) |
|
|
||
|
|
|
|
|
|
|
|
||||||
Total |
|
|
|
|
|
|
|
||||||
Net revenues |
$ |
897.4 |
|
|
|
|
$ |
861.5 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Adjusted operating income |
$ |
197.2 |
|
|
22.0 |
% |
|
$ |
178.7 |
|
|
20.7 |
% |
Depreciation and amortization |
|
13.3 |
|
|
1.5 |
% |
|
|
13.0 |
|
|
1.6 |
% |
Adjusted EBITDA |
$ |
210.5 |
|
|
23.5 |
% |
|
$ |
191.7 |
|
|
22.3 |
% |
|
Year ended |
|
Year ended |
||||||||||
|
As Reported |
|
Margin |
|
As Reported |
|
Margin |
||||||
Allegion Americas |
|
|
|
|
|
|
|
||||||
Net revenues (GAAP) |
$ |
2,913.6 |
|
|
|
|
$ |
2,530.7 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Operating income (GAAP) |
$ |
757.2 |
|
|
26.0 |
% |
|
$ |
611.2 |
|
|
24.2 |
% |
Restructuring charges |
|
3.7 |
|
|
0.1 |
% |
|
|
— |
|
|
— |
% |
Acquisition and integration costs |
|
8.4 |
|
|
0.3 |
% |
|
|
8.0 |
|
|
0.3 |
% |
Amortization of acquired intangible assets |
|
33.7 |
|
|
1.1 |
% |
|
|
24.6 |
|
|
1.0 |
% |
Amortization of inventory step up |
|
— |
|
|
— |
% |
|
|
6.0 |
|
|
0.2 |
% |
Adjusted operating income |
|
803.0 |
|
|
27.5 |
% |
|
|
649.8 |
|
|
25.7 |
% |
Depreciation and amortization |
|
33.8 |
|
|
1.2 |
% |
|
|
30.7 |
|
|
1.2 |
% |
Adjusted EBITDA |
$ |
836.8 |
|
|
28.7 |
% |
|
$ |
680.5 |
|
|
26.9 |
% |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
Net revenues (GAAP) |
$ |
737.2 |
|
|
|
|
$ |
741.2 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Operating income (loss) (GAAP) |
|
58.1 |
|
|
7.9 |
% |
|
|
70.4 |
|
|
9.5 |
% |
Restructuring charges |
|
8.0 |
|
|
1.1 |
% |
|
|
4.9 |
|
|
0.7 |
% |
Acquisition and integration costs |
|
0.8 |
|
|
0.1 |
% |
|
|
1.1 |
|
|
0.1 |
% |
Amortization of acquired intangible assets |
|
22.2 |
|
|
3.0 |
% |
|
|
19.6 |
|
|
2.7 |
% |
Impairment of intangible assets |
|
7.5 |
|
|
1.0 |
% |
|
|
— |
|
|
— |
% |
Adjusted operating income |
|
96.6 |
|
|
13.1 |
% |
|
|
96.0 |
|
|
13.0 |
% |
Depreciation and amortization |
|
17.8 |
|
|
2.4 |
% |
|
|
17.0 |
|
|
2.3 |
% |
Adjusted EBITDA |
$ |
114.4 |
|
|
15.5 |
% |
|
$ |
113.0 |
|
|
15.3 |
% |
|
|
|
|
|
|
|
|
||||||
Corporate |
|
|
|
|
|
|
|
||||||
Operating loss (GAAP) |
$ |
(106.9 |
) |
|
|
|
$ |
(95.2 |
) |
|
|
||
Restructuring charges |
|
1.0 |
|
|
|
|
|
— |
|
|
|
||
Acquisition and integration costs |
|
11.9 |
|
|
|
|
|
21.4 |
|
|
|
||
Adjusted operating loss |
|
(94.0 |
) |
|
|
|
|
(73.8 |
) |
|
|
||
Depreciation and amortization |
|
1.3 |
|
|
|
|
|
3.2 |
|
|
|
||
Adjusted EBITDA |
$ |
(92.7 |
) |
|
|
|
$ |
(70.6 |
) |
|
|
||
|
|
|
|
|
|
|
|
||||||
Total |
|
|
|
|
|
|
|
||||||
Net revenues |
$ |
3,650.8 |
|
|
|
|
$ |
3,271.9 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Adjusted operating income |
$ |
805.6 |
|
|
22.1 |
% |
|
$ |
672.0 |
|
|
20.5 |
% |
Depreciation and amortization |
|
52.9 |
|
|
1.4 |
% |
|
|
50.9 |
|
|
1.6 |
% |
Adjusted EBITDA |
$ |
858.5 |
|
|
23.5 |
% |
|
$ |
722.9 |
|
|
22.1 |
% |
|
SCHEDULE 4 |
||||||
|
|||||||
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO AVAILABLE CASH FLOW AND NET EARNINGS TO ADJUSTED EBITDA |
|||||||
(In millions) |
|||||||
|
Year ended |
||||||
|
2023 |
|
2022 |
||||
Net cash from operating activities |
$ |
600.6 |
|
|
$ |
459.5 |
|
Capital expenditures |
|
(84.2 |
) |
|
|
(64.0 |
) |
Available cash flow |
$ |
516.4 |
|
|
$ |
395.5 |
|
|
Three months ended |
|
Year ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net earnings (GAAP) |
$ |
118.6 |
|
|
$ |
135.4 |
|
|
$ |
540.6 |
|
|
$ |
458.3 |
|
Provision for income taxes |
|
18.3 |
|
|
|
4.8 |
|
|
|
76.6 |
|
|
|
56.2 |
|
Interest expense |
|
22.9 |
|
|
|
23.7 |
|
|
|
93.1 |
|
|
|
75.9 |
|
Amortization of acquired intangible assets |
|
13.7 |
|
|
|
15.4 |
|
|
|
55.9 |
|
|
|
44.2 |
|
Amortization of inventory step-up |
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
6.0 |
|
Depreciation and amortization of nonacquired intangible assets |
|
13.3 |
|
|
|
13.0 |
|
|
|
52.9 |
|
|
|
50.9 |
|
EBITDA |
|
186.8 |
|
|
|
192.8 |
|
|
|
819.1 |
|
|
|
691.5 |
|
|
|
|
|
|
|
|
|
||||||||
Other income, net |
|
(0.1 |
) |
|
|
(4.5 |
) |
|
|
(1.9 |
) |
|
|
(11.6 |
) |
Impairment of intangible assets |
|
7.5 |
|
|
|
— |
|
|
|
7.5 |
|
|
|
— |
|
Loss on divestitures |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.6 |
|
Acquisition and integration costs and restructuring charges |
|
16.3 |
|
|
|
3.4 |
|
|
|
33.8 |
|
|
|
35.4 |
|
Adjusted EBITDA |
$ |
210.5 |
|
|
$ |
191.7 |
|
|
$ |
858.5 |
|
|
$ |
722.9 |
|
|
SCHEDULE 5 |
||||||||||
|
|||||||||||
RECONCILIATION OF GAAP REVENUE GROWTH TO NON-GAAP ORGANIC REVENUE GROWTH BY SEGMENT |
|||||||||||
|
Three months ended |
|
Year ended |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Allegion Americas |
|
|
|
|
|
|
|
||||
Revenue growth (GAAP) |
3.7 |
% |
|
37.5 |
% |
|
15.1 |
% |
|
23.5 |
% |
Acquisitions and divestitures |
— |
% |
|
(19.7 |
)% |
|
(7.9 |
)% |
|
(9.1 |
)% |
Currency translation effects |
— |
% |
|
0.5 |
% |
|
0.2 |
% |
|
0.2 |
% |
Organic growth (non-GAAP) |
3.7 |
% |
|
18.3 |
% |
|
7.4 |
% |
|
14.6 |
% |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Revenue growth (GAAP) |
5.9 |
% |
|
(15.3 |
)% |
|
(0.5 |
)% |
|
(9.3 |
)% |
Acquisitions and divestitures |
(2.8 |
)% |
|
1.1 |
% |
|
(0.7 |
)% |
|
0.3 |
% |
Currency translation effects |
(4.4 |
)% |
|
9.5 |
% |
|
(1.3 |
)% |
|
9.8 |
% |
Organic growth (non-GAAP) |
(1.3 |
)% |
|
(4.7 |
)% |
|
(2.5 |
)% |
|
0.8 |
% |
|
|
|
|
|
|
|
|
||||
Total |
|
|
|
|
|
|
|
||||
Revenue growth (GAAP) |
4.2 |
% |
|
21.5 |
% |
|
11.6 |
% |
|
14.1 |
% |
Acquisitions and divestitures |
(0.6 |
)% |
|
(13.4 |
)% |
|
(6.2 |
)% |
|
(6.4 |
)% |
Currency translation effects |
(1.0 |
)% |
|
3.3 |
% |
|
(0.2 |
)% |
|
3.0 |
% |
Organic growth (non-GAAP) |
2.6 |
% |
|
11.4 |
% |
|
5.2 |
% |
|
10.7 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220977809/en/
Media Contact:
317-810-3241
Whitney.Moorman@allegion.com
Analyst Contacts:
317-810-3107
Jobi.Coyle@allegion.com
463-210-8595
Joshua.Pokrzywinski@allegion.com
Source: