Allegion Q4 Results Surpass Expectation; Names Michael Wagnes As Finance Chief - Allegion (NYSE:ALLE)

Allegion PLC ALLE reported a fourth-quarter FY21 revenue decline of 2.5% year-over-year to $709.2 million, -1.4% on an organic basis, beating the consensus of $680.39 million.
The Allegion Americas segment revenues decreased 4.2% Y/Y to $499.5 million, and the Allegion International segment revenues increased 1.7% Y/Y to $209.7 million.
Adjusted EPS decreased to $1.11 compared to $1.49 in 4Q20, beating the consensus of $1.02.
The gross margin contracted by 360 bps to 40.4%. The operating income decreased by 2.2% Y/Y to $115.1 million, and the margin was flat at 16.2%. Adjusted operating margin declined by 610 bps to 16.4%.
Adjusted EBITDA was down 25.8% Y/Y to $136.3 million, and margin contracted by 604 bps to 19.2%.
Allegion generated cash from operating activities of $488.6 million in FY21, compared to $490.3 million a year ago. Free cash flow was $443.2 million. It held cash and equivalents of $397.9 million and total debt of $1.44 billion.
The company repurchased ~1.5 million shares for $200.1 million during the quarter. Allegion's quarterly dividend of $0.41 per share, an increase of 14% over the prior dividend, is payable March 31, 2022, to shareholders of record on March 16, 2022.
FY22 Outlook: Allegion expects revenues to increase 6% - 7.5% on a reported basis and increase 7% - 8.5% organically.
It expects reported EPS of $5.50 - $5.70 and Adjusted EPS of $5.55 - $5.75 (consensus $5.72).
Additionally, Allegion announced the appointment of Michael (Mike) Wagnes as SVP and CFO, effective March 1, 2022.
He succeeds Patrick Shannon, who announced plans to retire by September 2, 2022, and will serve as an advisor during the transition.
The company also announced the appointment of David (Dave) Ilardi as SVP of Allegion Americas, effective March 1, 2022, succeeding Luis Orbegoso, who has stepped down to pursue other opportunities.
Price Action: ALLE shares are trading lower by 0.04% at $118.28 on the last check Tuesday.

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