Other News Releases in Computer Electronics
NICE to Acquire Orsus, A Leading Provider of Security Management Software Solutions
Market Analysis on Chinese Printed Circuit Board and Equipment Market
ClearOne Granted Amended Permanent Injunction Order in Federal Trade Secret Misappropriation Case; Contempt Order Issued Against DialHD, Inc., Wideband Solutions, Inc., and Others
Other News Releases in Earnings
Escalon(R) Reports First Quarter Fiscal 2010 Results
Electronic Game Card, Inc. Files 10-Q for Period Ending September 30, 2009
Wolverine Tube Reports 2009 Third Quarter Results
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
See more news releases in: Computer Electronics, Health Care & Hospitals, Earnings, Earnings Forecasts & Projections
Tyco International Reports Fourth Quarter Earnings From Continuing Operations Before Special Items of $0.61 Per Share and GAAP Earnings of $0.44 Per Share
SCHAFFHAUSEN, Switzerland, Nov. 10 /PRNewswire-FirstCall/ --
($ millions, except per-share amounts)
Q4 2009 Q4 2008 % Change FY 2009 FY 2008 % Change
------- ------- -------- ------- ------- --------
Revenue $4,421 $5,284 (16)% $17,237 $20,199 (15)%
Income (Loss) from
Continuing
Operations $207 $264 (22)% ($1,833) $1,095 -
Diluted EPS from
Continuing
Operations $0.44 $0.55 (20)% ($3.87) $2.25 -
Special Items ($0.17) ($0.26) ($6.23) ($0.81)
Income from
Continuing Ops
Before Special
Items $291 $387 (25)% $1,122 $1,493 (25)%
Diluted EPS from
Continuing Ops
Before Special
Items $0.61 $0.81 (25)% $2.36 $3.06 (23)%
Tyco International Ltd. (NYSE: TYC) today reported $0.44 in diluted earnings per share (EPS) from continuing operations for the fiscal fourth quarter of 2009 and diluted EPS from continuing operations before special items of $0.61 per share. Revenue in the quarter of $4.4 billion declined 16% versus the prior year with an organic revenue decline of 12%. Cash from operating activities was $985 million in the quarter. The company had free cash flow of $614 million, which included cash payments of $84 million for restructuring and legacy legal matters.
For the full year, revenue of $17.2 billion declined 15%. Organic revenue declined 8%, with half of the decline coming from the Electrical and Metal Products business. Cash from operating activities was $2.43 billion. Free cash flow of $1.22 billion included cash payments of $261 million for restructuring and legacy legal matters.
"Our operating results for the fourth quarter reflect good progress in reducing our overall cost structure while we continue to invest in the future growth of our businesses," said Ed Breen, Tyco Chairman and Chief Executive Officer. "We generated strong cash flow in the quarter, effectively managed our working capital and we finished the year in strong financial condition."
Organic revenue, free cash flow, operating income before special items, operating margin before special items and income and diluted EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as Fourth Quarter Review slides can be found at www.tyco.com on the Investor Relations portion of Tyco's website. Certain tables in this press release contain the symbol "-", where the percent change is not meaningful.
SEGMENT RESULTS
The financial results presented in the tables below are in accordance with GAAP unless otherwise indicated. Beginning in the first quarter of fiscal 2009, certain businesses within the ADT Worldwide and Fire Protection Services segments were realigned resulting in changes to historical segment performance. The revenue and operating income results shown below have been adjusted to reflect these changes. All dollar amounts are pre-tax and stated in millions. All comparisons are to the fiscal fourth quarter or full year of 2008 unless otherwise indicated.
ADT Worldwide
Q4 2009 Q4 2008 % Change FY 2009 FY 2008 % Change
------- ------- -------- ------- ------- --------
Revenue $1,799 $1,981 (9%) $7,015 $7,731 (9%)
Operating Income $226 $203 11% $233 $906 -
Operating Margin 12.6% 10.2% - 11.7%
Special Items ($31) ($48) ($722) ($94)
Operating Income Before
Special Items $257 $251 2% $955 $1,000 (5%)
Operating Margin Before
Special Items 14.3% 12.7% 13.6% 12.9%
Revenue of $1.8 billion declined 9% in the quarter with an organic revenue decline of 5% and a 4% decline due to changes in foreign currency. ADT's recurring revenue grew 4% organically on a global basis. Systems installation and service revenue declined 14% organically, mostly due to weakness in North America and Europe, as a result of continuing lower sales to commercial customers, including the retailer end market.
Operating income was $226 million in the quarter and the operating margin was 12.6%. Special items of $31 million resulted primarily from restructuring activities. Operating income before special items of $257 million increased $6 million despite a $7 million negative impact from foreign currency. The operating margin before special items improved 160 basis points to 14.3%, as cost-containment initiatives, restructuring activities and growth in ADT's higher-margin recurring revenue business more than offset volume declines.
Full year revenue of $7.0 billion decreased 9% with an organic revenue decline of 4%. Operating income was $233 million and included $722 million of special items. Operating income before special items of $955 million decreased $45 million driven by a negative foreign currency impact of $56 million. The operating margin before special items improved 70 basis points to 13.6%.
Flow Control
Q4 2009 Q4 2008 % Change FY 2009 FY 2008 % Change
------- ------- -------- ------- ------- --------
Revenue $1,010 $1,188 (15%) $3,850 $4,418 (13%)
Operating Income $126 $152 (17%) $518 $618 (16%)
Operating Margin 12.5% 12.8% 13.5% 14.0%
Special Items ($15) ($9) ($34) ($14)
Operating Income Before
Special Items $141 $161 (12%) $552 $632 (13%)
Operating Margin Before
Special Items 14.0% 13.6% 14.3% 14.3%
Revenue of $1.0 billion declined 15% in the quarter with an organic revenue decline of 10%. Organic revenue declined 7% in the Valves business, 17% in Water and 12% in Thermal Controls. Backlog of $1.7 billion increased 4% on a quarter sequential basis (a 1% decline excluding the impact of foreign currency).
Operating income was $126 million in the quarter and the operating margin was 12.5%. Special items of $15 million resulted from restructuring activities. The operating income before special items of $141 million included a $9 million negative foreign currency impact. The operating margin before special items improved 40 basis points to 14.0% as cost-containment actions and restructuring activities more than offset the impact of volume declines.
Full year revenue of $3.85 billion decreased 13% primarily due to changes in foreign currency with an organic revenue decline of 3%. Operating income was $518 million and the operating margin was 13.5%. Operating income before special items of $552 decreased $80 million driven primarily by a $76 million negative foreign currency impact. The operating margin before special items remained flat with 2008 at 14.3%.
Fire Protection Services
Q4 2009 Q4 2008 % Change FY 2009 FY 2008 % Change
------- ------- -------- ------- ------- --------
Revenue $904 $1,015 (11%) $3,428 $3,839 (11%)
Operating Income $65 $71 (8%) $68 $325 -
Operating Margin 7.2% 7.0% - 8.5%
Special Items ($31) ($30) ($225) ($34)
Operating Income Before
Special Items $96 $101 (5%) $293 $359 (18%)
Operating Margin Before
Special Items 10.6% 10.0% 8.5% 9.4%
Revenue of $904 million declined 11% in the quarter with an organic revenue decline of 7%. Service revenue declined 5% organically and installation revenue declined 8% driven by continued softness in the North American and EMEA regions. Backlog of $1.2 billion decreased 5% on a quarter sequential basis (a 7% decline excluding the impact of foreign currency).
Operating income was $65 million in the quarter and the operating margin was 7.2%. Special items of $31 million resulted from restructuring activities. Operating income before special items was $96 million and the operating margin before special items improved 60 basis points to 10.6% as cost-containment actions more than offset the decline in revenue.
Full year revenue of $3.4 billion decreased 11% primarily due to changes in foreign currency with an organic revenue decline of 3%. Operating income was $68 million and included $225 million of special items. Operating income before special items of $293 million decreased $66 million primarily due to lower volume and a $12 million negative foreign currency impact.
Electrical and Metal Products
Q4 2009 Q4 2008 % Change FY 2009 FY 2008 % Change
------- ------- -------- ------- ------- --------
Revenue $326 $591 (45%) $1,392 $2,272 (39%)
Operating Income $12 $88 (86%) ($940) $342 -
Operating Margin 3.7% 14.9% - 15.1%
Special Items ($9) ($31) ($957) ($43)
Operating Income Before
Special Items $21 $119 (82%) $17 $385 (96%)
Operating Margin Before
Special Items 6.4% 20.1% 1.2% 16.9%
Revenue of $326 million declined 45% in the quarter with an organic revenue decline of 41%. The decline was primarily due to lower selling prices for both steel and copper products.
Operating income was $12 million in the quarter and included $9 million of special items for restructuring activities. Operating income before special items of $21 million decreased $98 million, primarily due to lower spreads for both steel and copper products. The operating margin before special items was 6.4%.
Full year revenue of $1.4 billion decreased 39% with an organic revenue decline of 35%. Electrical and Metal Products incurred an operating loss of $940 million which included special items of $957 million. Operating income excluding special items was $17 million.
Safety Products
Q4 2009 Q4 2008 % Change FY 2009 FY 2008 % Change
------- ------- -------- ------- ------- --------
Revenue $382 $507 (25%) $1,552 $1,934 (20%)
Operating Income $46 $65 (29%) ($789) $284 -
Operating Margin 12.0% 12.8% - 14.7%
Special Items ($14) ($34) ($1,018) ($73)
Operating Income Before
Special Items $60 $99 (39%) $229 $357 (36%)
Operating Margin Before
Special Items 15.7% 19.5% 14.8% 18.5%
Revenue of $382 million declined 25% in the quarter. Organic revenue declined 22% due to lower volume across the Fire Suppression, Electronic Security and Life Safety businesses resulting from weaker demand in end markets.
Operating income was $46 million in the quarter and the operating margin was 12.0%. Special items of $14 million resulted from restructuring activities. Operating income before special items was $60 million and the operating margin before special items decreased 3.8 percentage points to 15.7% as cost-containment actions and restructuring activities were more than offset by significant volume declines.
Full year revenue of $1.6 billion decreased 20% with an organic revenue decline of 14%. Safety Products incurred an operating loss of $789 million, which included $1.0 billion of special items. Operating income before special items of $229 million includes a $19 million negative foreign currency impact.
OTHER ITEMS
- Corporate expense was $160 million for the quarter and included special items of $11 million. For the full year, corporate expense was $577 million and included special items of $130 million resulting in corporate expense before special items of $447 million.
- The company incurred pre-tax charges of $96 million in the quarter and $253 million for the full year related to restructuring activities.
- Other expense in the quarter of $19 million primarily results from the reduction of tax liabilities for periods prior to Tyco's separation into three companies. These tax liabilities are governed by the Tax Sharing Agreement between Tyco International, Covidien and Tyco Electronics. The reduction in tax liabilities lowered Tyco's tax rate in the quarter and was partially offset by an $18 million reduction in the amounts due from the other two companies, which is reflected in other expense.
- The tax rate for the quarter was 9.9%. The tax rate before special items was 14.6% for the quarter and 15.7% for the full year.
ABOUT TYCO INTERNATIONAL
Tyco International Ltd. (NYSE: TYC) is a diversified, global company that provides vital products and services to customers around the world. Tyco is a leading provider of security products and services, fire protection and detection products and services, valves and controls, and other industrial products. Tyco had 2009 revenue of more than $17 billion and has more than 100,000 employees worldwide. More information on Tyco can be found at www.tyco.com.
CONFERENCE CALL AND WEBCAST
Management will discuss the company's fourth quarter results and outlook for fiscal 2010 during a conference call and webcast today beginning at 8:30 a.m. EST. Today's conference call for investors can be accessed in the following ways:
- At Tyco's website: http://investors.tyco.com.
- By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the telephone dial-in number in the United States is (888) 455-5685. The telephone dial-in number for participants outside the United States is (773) 799-3896. The participant code is TYCO.
- An audio replay of the conference call will be available beginning at 11:00 a.m. on November 10, 2009 and ending on November 17, 2009. The dial-in number for participants in the United States is (866) 346-2432. For participants outside the United States, the replay dial-in number is (203) 369-0008.
NON-GAAP MEASURES
"Organic revenue," "free cash flow (outflow)" (FCF), "income from continuing operations before special items", "earnings per share (EPS) from continuing operations before special items", "operating income before special items" and "operating margin before special items" are non-GAAP measures and should not be considered replacements for GAAP results.
Organic revenue is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net revenue (the most comparable GAAP measure) and organic revenue (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures, and other changes that do not reflect the underlying results and trends (for example, revenue reclassifications and changes to the fiscal year). Organic revenue is a useful measure of the company's performance because it excludes items that: i) are not completely under management's control, such as the impact of foreign currency exchange; or ii) do not reflect the underlying results of the company's existing businesses, such as acquisitions and divestitures. It may be used as a component of the company's compensation programs. The limitation of this measure is that it excludes items that have an impact on the company's revenue. This limitation is best addressed by using organic revenue in combination with the GAAP numbers. See the accompanying tables to this press release for the reconciliation presenting the components of organic revenue.
FCF is a useful measure of the company's cash which is free from any significant existing obligation. The difference between Cash Flows from Operating Activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash outflows that the company believes are useful to identify. FCF permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation. It, or a measure that is based on it, may be used as a component in the company's incentive compensation plans. The difference reflects the impact from:
- net capital expenditures,
- accounts purchased from the ADT dealer network,
- cash paid for purchase accounting and holdback liabilities,
- voluntary pension contributions, and
- the sale of accounts receivable programs.
Capital expenditures and the ADT dealer program are subtracted because they represent long-term commitments. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general corporate uses. Voluntary pension contributions and the impact from the sale of accounts receivable programs are added or subtracted because this activity is driven by economic financing decisions rather than operating activity.
The limitation associated with using FCF is that it subtracts cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. This limitation is best addressed by using FCF in combination with the GAAP cash flow numbers.
FCF as presented herein may not be comparable to similarly titled measures reported by other companies. The measure should be used in conjunction with other GAAP financial measures. Investors are urged to read the company's financial statements as filed with the Securities and Exchange Commission, as well as the accompanying tables to this press release that show all the elements of the GAAP measures of Cash Flows from Operating Activities, Cash Flows from Investing Activities, Cash Flows from Financing Activities and a reconciliation of the company's total cash and cash equivalents for the period. See the accompanying tables to this press release for a cash flow statement presented in accordance with GAAP and a reconciliation presenting the components of FCF.
The company has presented its income and EPS from continuing operations before special items and operating income and margin before special items. Special Items include charges and gains related to divestitures, acquisitions, restructurings, impairments, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends of the company or business segment, as applicable. The company utilizes income and EPS from continuing operations before special items and operating income and margin before special items to assess overall operating performance and segment level core operating performance, as well as to provide insight to management in evaluating overall and segment operating plan execution and underlying market conditions. They may be used as components in the company's incentive compensation plans. Operating income, operating margin, and income and EPS from continuing operations before special items are useful measures for investors because they permit more meaningful comparisons of the company's underlying operating results and business trends between periods. The difference between income and EPS from continuing operations before special items and income and EPS from continuing operations (the most comparable GAAP measures) consists of the impact of charges and gains related to divestitures, acquisitions, restructurings, impairments, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends. Operating income and margin before special items do not reflect any additional adjustments that are not reflected in income from continuing operations before special items. The limitation of these measures is that they exclude the impact (which may be material) of items that increase or decrease the company's reported operating income and margin and operating income and EPS from continuing operations. This limitation is best addressed by using the non-GAAP measures in combination with the most comparable GAAP measures in order to better understand the amounts, character and impact of any increase or decrease on reported results. Tyco provides general corporate services to its segments and those costs are reported in the "Corporate and Other" segment. This segment's operating income (loss) is presented as "Corporate Expense."
FORWARD-LOOKING STATEMENTS
This release may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein and in accompanying conference calls or webcasts that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. The forward-looking statements in this release and accompanying conference calls generally include, but are not limited to, statements addressing Tyco's future financial condition and operating results, as well as its portfolio refinement activities. Economic, business, competitive and/or regulatory factors affecting Tyco's businesses are examples of factors, among others, that could cause actual results to differ materially from those described in the forward-looking statements. Tyco is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. More detailed information about these and other factors is set forth in Tyco's Annual Report on Form 10-K for the fiscal year ended Sept. 26, 2008 and in the interim reports filed on Form 10-Q for subsequent quarterly periods.
TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
(Unaudited)
Quarter Ended Twelve Months Ended
------------- -------------------
September September September September
25, 2009 26, 2008 25, 2009 26, 2008
---- ---- ---- ----
Net revenue $4,421 $5,284 $17,237 $20,199
Cost of sales 2,814 3,417 11,143 13,123
Selling, general and
administrative expenses 1,193 1,301 4,657 4,906
Class action settlement, net - (3) - (10)
Separation costs - - - 4
Goodwill and intangible
asset impairments - 9 2,705 10
Restructuring, asset
impairment and divestiture
charges, net 99 131 219 225
-- --- --- ---
Operating income (loss) $315 $429 $(1,487) $1,941
Interest income 12 11 44 110
Interest expense (76) (73) (301) (396)
Other expense, net (19) (19) (7) (224)
--- --- -- ----
Income (loss) from
continuing operations
before income taxes and
minority interest 232 348 (1,751) 1,431
Income tax expense (23) (86) (78) (335)
Minority interest (expense) income (2) 2 (4) (1)
-- -- -- --
Income (loss) from
continuing operations 207 264 (1,833) 1,095
(Loss) income from
discontinued operations,
net of income taxes (2) 170 35 458
-- --- -- ---
Net income (loss) $205 $434 $(1,798) $1,553
==== ==== ======= ======
Basic earnings per common share:
Income (loss) from
continuing operations $0.44 $0.56 $(3.87) $2.26
(Loss) income from
discontinued operations (0.01) 0.35 0.07 0.95
----- ---- ---- ----
Net income (loss) $0.43 $0.91 $(3.80) $3.21
===== ===== ====== =====
Diluted earnings per common share:
Income (loss) from
continuing operations $0.44 $0.55 $(3.87) $2.25
(Loss) income from
discontinued operations (0.01) 0.36 0.07 0.94
----- ---- ---- ----
Net income (loss) $0.43 $0.91 $(3.80) $3.19
===== ===== ====== =====
Weighted-average number of
shares outstanding:
Basic 474 475 473 484
Diluted 476 478 473 488
NOTE: These financial statements should be read in conjunction with the
Consolidated Financial Statements and accompanying notes contained in the
Company's Annual Report on Form 10-K for the fiscal year ended September
26, 2008 and Quarterly Report on Form 10-Q for the quarterly period ended
June 26, 2009.
TYCO INTERNATIONAL LTD.
RESULTS OF SEGMENTS
(in millions)
(Unaudited)
Quarter Ended
-------------
September 25, September 26,
2009 2008
---- ----
NET REVENUE
ADT Worldwide $1,799 $1,981
Flow Control 1,010 1,188
Fire Protection Services 904 1,015
Electrical and Metal Products 326 591
Safety Products 382 507
Corporate and Other - 2
---- ----
Total Net Revenue $4,421 $5,284
====== ======
OPERATING INCOME / (LOSS) AND MARGIN
ADT Worldwide $226 12.6% $203 10.2%
Flow Control 126 12.5% 152 12.8%
Fire Protection Services 65 7.2% 71 7.0%
Electrical and Metal Products 12 3.7% 88 14.9%
Safety Products 46 12.0% 65 12.8%
Corporate and Other (160) - (150) -
---- ----
Total Operating Income /
(Loss) and Margin $315 7.1% $429 8.1%
==== ====
Twelve Months Ended
-------------------
September 25, September 26,
2009 2008
---- ----
NET REVENUE
ADT Worldwide $7,015 $7,731
Flow Control 3,850 4,418
Fire Protection Services 3,428 3,839
Electrical and Metal Products 1,392 2,272
Safety Products 1,552 1,934
Corporate and Other - 5
---- ----
Total Net Revenue $17,237 $20,199
======= =======
OPERATING INCOME / (LOSS) AND MARGIN
ADT Worldwide $233 - $906 11.7%
Flow Control 518 13.5% 618 14.0%
Fire Protection Services 68 - 325 8.5%
Electrical and Metal Products (940) - 342 15.1%
Safety Products (789) - 284 14.7%
Corporate and Other (577) - (534) -
---- ----
Total Operating Income /
(Loss) and Margin $(1,487) - $1,941 9.6%
======= ======
Note: Certain operating margins have not been presented as management
believes such calculations are not meaningful.
TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
September 25, September 26,
2009 2008
---- ----
Current Assets:
Cash and cash equivalents $2,354 $1,519
Accounts receivable, net 2,629 2,986
Inventories 1,443 1,877
Other current assets 1,385 1,779
Assets held for sale 156 268
--- ---
Total current assets 7,967 8,429
Property, plant and equipment, net 3,497 3,493
Goodwill 8,791 11,619
Intangible assets, net 2,647 2,681
Other assets 2,651 2,582
----- -----
Total Assets $25,553 $28,804
======= =======
Current Liabilities:
Short-term debt and current maturities
of long-term debt $245 $555
Accounts payable 1,244 1,608
Accrued and other current liabilities 2,476 2,717
Deferred revenue 590 594
Liabilities held for sale 161 211
--- ---
Total current liabilities 4,716 5,685
Long-term debt 4,029 3,709
Other liabilities 3,854 3,902
----- -----
Total Liabilities 12,599 13,296
Shareholders' equity 12,954 15,508
------- -------
Total Liabilities and Shareholders'
Equity $25,553 $28,804
======= =======
NOTE: These financial statements should be read in conjunction with the
Consolidated Financial Statements and accompanying notes contained in the
Company's Annual Report on Form 10-K for the fiscal year ended September
26, 2008 and Quarterly Report on Form 10-Q for the quarterly period ended
June 26, 2009.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Quarter Ended Twelve Months Ended
------------- -------------------
September September September September
25, 26, 25, 26,
2009 2008 2009 2008
---- ---- ---- ----
Cash Flows from Operating Activities:
Net income (loss) $205 $434 $(1,798) $1,553
Loss (Income) from
discontinued operations 2 (170) (35) (458)
---- ---- ---- ----
Income (loss) from continuing
operations 207 264 (1,833) 1,095
Adjustments to reconcile net cash
provided by operating activities:
Goodwill and intangible asset
impairments - 9 2,705 10
Depreciation and amortization 294 300 1,133 1,154
Non-cash compensation expense 27 21 103 99
Deferred income taxes 118 21 (83) (94)
Provision for losses on accounts
receivable and inventory 42 36 156 135
(Gain) Loss on extinguishment
of debt - - (2) 258
Other non-cash items 46 62 108 137
Changes in assets and liabilities,
net of the effects of acquisitions
and divestitures:
Accounts receivable, net 23 67 207 (176)
Inventories 186 35 367 (138)
Prepaid expenses and other
current assets 186 2 11 11
Accounts payable 48 119 (352) (16)
Accrued and other liabilities (40) 205 (52) (152)
Income taxes, net (145) (87) (148) (95)
Class action settlement
liability - - - (3,020)
Other (7) (18) 109 (80)
-- --- --- ---
Net cash provided by (used
in) operating activities 985 1,036 2,429 (872)
--- ----- ----- ----
Net cash provided by (used
in) discontinued operating
activities - 7 (8) (18)
Cash Flows from Investing Activities:
Capital expenditures (209) (189) (709) (734)
Proceeds from disposal of
assets 7 14 13 28
Acquisition of businesses,
net of cash acquired (1) (255) (48) (347)
Accounts purchased from ADT
dealer program (182) (107) (543) (376)
Class action settlement escrow - - - 2,960
Other (22) - 18 15
---- ---- ---- ----
Net cash (used in) provided
by investing activities (407) (537) (1,269) 1,546
---- ---- ------ -----
Net cash provided by discontinued
investing activities 25 432 66 911
Cash Flows from Financing Activities:
Net repayments of debt 25 (346) 8 (547)
Proceeds from exercise of
share options - 9 1 49
Dividends paid (101) (71) (388) (292)
Repurchase of common shares
by subsidiary - (98) (3) (854)
Repurchase of common shares
held by treasury - (192) - (192)
Transfers from discontinued
operations 25 439 58 897
Other 8 (5) 9 (72)
---- ---- ---- ----
Net cash used in financing
activities (43) (264) (315) (1,011)
--- ---- ---- ------
Net cash used in discontinued
financing activities (25) (439) (58) (893)
Effect of currency
translation on cash 40 (58) (10) (38)
-- --- --- ---
Net increase (decrease) in
cash and cash equivalents 575 177 835 (375)
Cash and cash equivalents at
beginning of period 1,779 1,342 1,519 1,894
----- ----- ----- -----
Cash and cash equivalents at
end of period $2,354 $1,519 $2,354 $1,519
====== ====== ====== ======
Reconciliation to "Free Cash Flow":
Net cash provided by (used
in) operating activities $985 $1,036 $2,429 $(872)
Sale of accounts receivable (3) 2 10 14
Capital expenditures (202) (175) (696) (706)
Accounts purchased from ADT
dealer program (182) (107) (543) (376)
Purchase accounting and holdback
liabilities - - (2) (2)
Voluntary pension contributions 16 3 22 4
---- ---- ---- ----
Free Cash Flow $614 $759 $1,220 $(1,938)
NOTE: Free cash flow is a non-GAAP measure. See description of non-GAAP
measures contained in this release.
TYCO INTERNATIONAL LTD.
ORGANIC REVENUE RECONCILIATION
(in millions)
(Unaudited)
Quarter Ended September 25, 2009
--------------------------------
Foreign (Acquisition) /
Net Revenue Currency Divestiture
----------- --------- ----------------
ADT Worldwide $1,799 -9.2% $(79) -4.0% $(4) -0.2%
Flow Control 1,010 -15.0% (57) -4.8% (2) 0.0%
Fire Protection
Services 904 -10.9% (37) -3.6% - 0.0%
Electrical and
Metal Products 326 -44.8% (8) -1.4% (12) -1.9%
Safety Products 382 -24.7% (15) -3.0% (1) -0.2%
Corporate and
Other - -100.0% - 0.0% - 0.0%
------ ----- ----
Total Net
Revenue $4,421 -16.3% $(196) -3.7% $(19) -0.3%
====== ===== ====
Net Revenue for the
Organic Quarter Ended
Other Revenue September 26, 2008
----- --------- ----------------------
ADT Worldwide $- 0.0% $(99) -5.0% $1,981
Flow Control 5 0.4% (124) -10.4% 1,188
Fire Protection
Services (5) -0.5% (69) -6.8% 1,015
Electrical and
Metal Products (3) -0.5% (242) -40.9% 591
Safety Products 3 0.6% (112) -22.1% 507
Corporate and
Other - 0.0% (2) -100.0% 2
-- ---- ------
Total Net
Revenue $- 0.0% $(648) -12.3% $5,284
== ===== ======
Twelve Months Ended September 25, 2009
(Acquisition) /
Net Revenue Foreign Currency Divestiture
----------- ---------------- ----------------
ADT Worldwide $7,015 -9.3% $(590) -7.6% $152 1.9%
Flow Control 3,850 -12.9% (462) -10.5% (3) -0.1%
Fire Protection
Services 3,428 -10.7% (294) -7.7% - 0.0%
Electrical and
Metal Products 1,392 -38.7% (52) -2.3% (31) -1.3%
Safety Products 1,552 -19.8% (122) -6.3% (8) -0.5%
Corporate and
Other - -100.0% - 0.0% - 0.0%
-- ---- ------
Total Net
Revenue $17,237 -14.7% $(1,520) -7.5% $110 0.5%
======= ======= ====
Net Revenue for the
Twelve Months Ended
Other Organic Revenue September 26, 2008
----- ---------------- -------------------------
ADT Worldwide $- 0.0% $(278) -3.6% $7,731
Flow Control 26 0.6% (129) -2.9% 4,418
Fire Protection
Services (18) -0.5% (99) -2.6% 3,839
Electrical and
Metal Products (12) -0.5% (785) -34.6% 2,272
Safety Products 12 0.6% (264) -13.7% 1,934
Corporate and
Other - 0.0% (5) -100.0% 5
-- ---- ------
Total Net
Revenue $8 0.0% $(1,560) -7.7% $20,199
== ======= =======
NOTE: Organic revenue is a non-GAAP measure. See description of non-GAAP
measures contained in this release.
Tyco International Ltd.
-----------------------
Earnings Per Share Summary
(Unaudited)
Quarter Ended Year to Date
------------------------------------------- ------------
Dec. 26, March 27, June 26, Sept. 25, Sept. 25,
2008 2009 2009 2009 2009
--------- ---------- -------- ---------- ---------
Diluted EPS
from
Continuing
Operations
(GAAP) $0.57 ($5.40) $0.51 $0.44 ($3.87)
Restructuring
and asset
impairment
charges, net - 0.13 0.04 0.14 0.32
Restructuring
charges in
cost of sales
and SG&A 0.01 0.02 0.01 0.01 0.05
Other
additional
charges
resulting
from
restructuring
actions - 0.01 0.01 - 0.02
Losses on
divestitures - - 0.01 0.01 0.03
Intangible
impairments - 0.09 - - 0.08
Goodwill
impairments - 5.47 - - 5.47
Tax items 0.01 - - - 0.01
Class action
settlement,
net - - - - -
Legacy legal
items 0.02 0.23 - 0.01 0.25
Reserve
adjustment - - - - -
Separation
costs - - - - -
Total Before
Special Items $0.61 $0.55 $0.58 $0.61 $2.36
Quarter Ended Year Ended
------------- ----------
Dec. 28, March 28, June 27, Sept. 26, Sept. 26,
2007 2008 2008 2008 2008
-------- --------- -------- --------- ---------
Diluted EPS
from
Continuing
Operations
(GAAP) $0.72 $0.56 $0.41 $0.55 $2.25
Restructuring
and asset
impairment
charges, net 0.02 0.06 0.06 0.19 0.33
Restructuring
charges in
cost
of sales and
SG&A 0.01 0.01 0.01 0.02 0.04
Other
additional
charges
resulting
from
restructuring
actions - - - - -
Losses on
divestitures - - - - -
Intangible
impairments - - - - -
Goodwill
impairments - - - 0.02 0.02
Tax items 0.04 - - - 0.04
Class action
settlement,
net - - (0.01) (0.01) (0.02)
Legacy legal
items - 0.04 0.02 - 0.06
Reserve
adjustment - (0.01) - - (0.02)
Separation
costs (0.08) 0.01 0.39 0.04 0.36
Total Before
Special Items $0.71 $0.67 $0.88 $0.81 $3.06
Tyco International Ltd.
For the Quarter Ended September 25, 2009
(in millions, except per share data)
(Unaudited)
ADT Fire Electrical Corp-
World- Flow Protection & Metal Safety orate
wide Control Services Products Products & Other Revenue
--------------------------------------------------------------------------
Revenue
(GAAP) $1,799 $1,010 $904 $326 $382 - $4,421
--------------------------------------------------------------------------
Operating Income
----------------
ADT Fire Electrical Corp- Oper-
World- Flow Protection & Metal Safety orate ating
wide Control Services Products Products & Other Income
--------------------------------------------------------------------------
As Reported
(GAAP) $226 $126 $65 $12 $46 ($160) 315
Restruct-
uring
and asset
impair-
ment
charges,
net 24 14 31 9 9 2 89
Restruct-
uring
charges in
cost of
sales and
SG&A 1 - - - 5 - 6
Other
additional
charges
resulting
from
restruct-
uring
actions - 1 - - - - 1
Losses on
divest-
itures 6 - - - - 4 10
Goodwill
impairments - - - - - - -
Tax items - - - - - - -
Legacy
legal
items - - - - - 5 5
Total
Before
Special
Items $257 $141 $96 $21 $60 ($149) $426
Income Diluted
Interest Other from EPS from
Income, Expense, Income Minority Continuing Continuing
net net Taxes Interest Operations Operations
--------------------------------------------------------------------------
As Reported
(GAAP) ($64) ($19) ($23) ($2) 207 $0.44
Restructuring
and asset
impairment
charges, net - - (22) - 67 0.14
Restructuring
charges in
cost of
sales and
SG&A - - (1) - 5 0.01
Other
additional
charges
resulting from
restructuring
actions - - - - 1 -
Losses on
divestitures - - (3) - 7 0.01
Goodwill
impairments - - 2 - 2 0.00
Tax items - - (3) - (3) 0.00
Legacy
legal
items - - - - 5 0.01
Total
Before
Special
Items ($64) ($19) ($50) ($2) $291 $0.61
Diluted Shares Outstanding 476
Diluted Shares Outstanding - Before Special Items 476
Tyco International Ltd.
For the Twelve Months Ended September 25, 2009
(in millions, except per share data)
(Unaudited)
ADT Fire Electrical Corp-
World- Flow Protection & Metal Safety orate
wide Control Services Products Products & Other Revenue
--------------------------------------------------------------------------
Revenue
(GAAP) $7,015 $3,850 $3,428 $1,392 $1,552 - $17,237
--------------------------------------------------------------------------
Operating Income
----------------
ADT Fire Electrical Corp- Oper-
World- Flow Protection & Metal Safety orate ating
wide Control Services Products Products & Other Income
--------------------------------------------------------------------------
As
Reported
(GAAP) $233 $518 $68 ($940) ($789) ($577) ($1,487)
Restruct-
uring
and asset
impairment
charges,
net 76 23 45 16 36 9 205
Restructuring
charges in
cost of
sales
and SG&A 5 2 - 7 18 1 33
Other
additional
charges
resulting
from
restruct-
uring
actions - 5 - 1 9 - 15
Losses on
divest-
itures 6 4 - (2) - 6 14
Intangible
impair-
ments 22 - - - 42 - 64
Goodwill
impair-
ments 613 - 180 935 913 - 2,641
Tax items - - - - - - -
Legacy legal
items - - - - - 114 114
Total
Before
Special
Items $955 $552 $293 $17 $229 ($447) $1,599
Income Diluted
Interest Other from EPS from
Income, Expense, Income Minority Continuing Continuing
net net Taxes Interest Operations Operations
--------------------------------------------------------------------------
As Reported
(GAAP) ($257) ($7) ($78) ($4) ($1,833) ($3.87)
Restructuring
and asset
impairment
charges,
net - - (54) - 151 0.32
Restructuring
charges in
cost of
sales
and SG&A - - (11) - 22 0.05
Other
additional
charges
resulting
from
restructuring
actions - - (4) - 11 0.02
Losses on
divestitures - - (3) - 11 0.03
Intangible
impairments - - (25) - 39 0.08
Goodwill
impairments - - (41) - 2,600 5.47
Tax items - - 3 - 3 0.01
Legacy
legal
items - - 4 - 118 0.25
Total
Before
Special
Items ($257) ($7) ($209) ($4) $1,122 $2.36
Diluted Shares Outstanding 473
Diluted Shares Outstanding - Before Special Items 475
Tyco International Ltd.
For the Quarter Ended September 26, 2008
(in millions, except per share data)
(Unaudited)
ADT Fire Electrical Corp-
World- Flow Protection & Metal Safety orate
wide Control Services Products Products & Other Revenue
-------------------------------------------------------------------------
Previously
Reported
Revenue
(GAAP) $2,052 $1,188 $944 $591 $507 $2 $5,284
Segment
Realign-
ment (71) - 71 - - - -
Recasted
Revenue
(GAAP) $1,981 $1,188 $1,015 $591 $507 $2 $5,284
--------------------------------------------------------------------------
Operating Income
----------------
Total
ADT Fire Electrical Corp- Oper-
World- Flow Protection & Metal Safety orate ating
wide Control Services Products Products & Other Income
--------------------------------------------------------------------------
As Previously
Reported
(GAAP) $200 $152 $74 $88 $65 ($150) $429
Segment
Realignment 3 - (3) - - - -
As Reported
(GAAP) $203 $152 $71 $88 $65 ($150) $429
Restructuring
and asset
impairment
charges,
net 47 3 20 28 32 1 131
Restructuring
charges in
cost of
sales and
SG&A 1 6 1 3 2 - 13
Goodwill
impairment - - 9 - - - 9
Class action
settlement,
net - - - - - (3) (3)
Separation
costs - - - - - - -
Total
Before
Special
Items $251 $161 $101 $119 $99 ($152) $579
Income Diluted EPS
Interest Other from from
Expense, Expense, Income Minority Continuing Continuing
net net Taxes Interest Operations Operations
----------------------------------------------------------
As Previously
Reported
(GAAP) ($62) ($19) ($86) $2 $264 $0.55
Segment
Realignment - - - - - -
As Reported
(GAAP) ($62) ($19) ($86) $2 $264 $0.55
Restructuring and
asset impairment
charges, net - - (39) - 92 0.19
Restructuring
charges in
cost of
sales and SG&A - - (5) - 8 0.02
Goodwill impairment - - - - 9 0.02
Class action
settlement, net - - - - (3) (0.01)
Separation costs - 17 - - 17 0.04
Total
Before
Special
Items ($62) ($2) ($130) $2 $387 $0.81
Diluted Shares Outstanding 478
Diluted Shares Outstanding - Before Special Items 478
Tyco International Ltd.
For the Twelve Months Ended September 26, 2008
(in millions, except per share data)
(Unaudited)
ADT Fire Electrical Corp-
World- Flow Protection & Metal Safety orate
wide Control Services Products Products & Other Revenue
--------------------------------------------------------------------------
Previously
Reported
Revenue
(GAAP) $8,017 $4,418 $3,553 $2,272 $1,934 $5 $20,199
Segment
Realignment (286) - 286 - - - -
Recasted
Revenue
(GAAP) $7,731 $4,418 $3,839 $2,272 $1,934 $5 $20,199
Operating Income
----------------
Total
ADT Fire Electrical Corp- Oper-
World- Flow Protection & Metal Safety orate ating
wide Control Services Products Products & Other Income
--------------------------------------------------------------------------
As Previously
Reported
(GAAP) $910 $618 $321 $342 $284 ($534) $1,941
Segment
Realignment (4) - 4 - - - -
As Reported
(GAAP) $906 $618 $325 $342 $284 ($534) $1,941
Restructuring
and asset
impairment
charges, net 93 5 25 34 67 1 225
Restructuring
charges in
cost of
sales and
SG&A 1 9 - 9 6 3 28
Losses on
Divestitures - - - - - 1 1
Goodwill
impairment - - 9 - - - 9
Tax items - - - - - - -
Class action
settlement,
net - - - - - (10) (10)
Legacy legal
items - - - - - 29 29
Reserve
adjustment - - - - - (9) (9)
Separation
costs - - - - - 5 5
Total Before
Special
Items $1,000 $632 $359 $385 $357 ($514) $2,219
Income Diluted EPS
Interest Other from from
Expense, Expense, Income Minority Continuing Continuing
net net Taxes Interest Operations Operations
----------------------------------------------------------
As Previously
Reported (GAAP) ($286) ($224) ($335) ($1) $1,095 $2.25
Segment
Realignment - - - - - -
As Reported
(GAAP) ($286) ($224) ($335) ($1) $1,095 $2.25
Restructuring
and asset
impairment
charges, net - - (65) - 160 0.33
Restructuring
charges in cost
of sales and
SG&A - - (9) - 19 0.04
Losses
on divestitures - - - - 1 0.00
Goodwill
impairment - - - - 9 0.02
Tax items - - 21 - 21 0.04
Class action
settlement,
net - - - - (10) (0.02)
Legacy legal
items - - - - 29 0.06
Reserve
adjustment - - 3 - (6) (0.02)
Separation
costs 47 225 (102) - 175 0.36
Total Before
Special Items ($239) $1 ($487) ($1) $1,493 $3.06
Diluted Shares Outstanding 488
Diluted Shares Outstanding - Before Special Items 488
SOURCE Tyco International Ltd.