Market Overview

CommScope Reports Strong Second Quarter 2018 Results

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- Reaffirms full year 2018 outlook -

  • Second Quarter 2018 Performance
    • Sales of $1.24 billion, up 6 percent year over year
    • GAAP operating income of $165 million
    • Non-GAAP adjusted operating income (excluding special items) of
      $251 million
    • GAAP net income of $0.34 per diluted share
    • Non-GAAP adjusted net income (excluding special items) of $0.68
      per diluted share, up 13 percent year over year and at high end of
      guidance range

CommScope Holding Company, Inc. (NASDAQ:COMM), a global leader in
infrastructure solutions for communications networks, today reported
results for the quarter ended June 30, 2018.

The company reported sales of $1.24 billion for the second quarter,
compared with $1.17 billion during the same period in the prior year.
During the second quarter of 2018, CommScope achieved net income of $66
million, or $0.34 per diluted share, which was an increase from the
prior year period's net income of $55 million, or $0.28 per diluted
share. Non-GAAP adjusted net income for the second quarter of 2018 was
$133 million, or $0.68 per diluted share, versus $119 million, or $0.60
per diluted share, in the second quarter of 2017. A reconciliation of
reported GAAP results to non-GAAP results is attached.

"We are pleased to deliver solid second quarter results, which reflect
our team's focus on capitalizing on growth opportunities in our core
markets while managing costs effectively," said President and Chief
Executive Officer Eddie Edwards. "The strong year-over-year growth in
North America in our Mobility segment and Outdoor Network Solutions
business reflects our industry-leading technology, scale and customer
relationships.

"We remain committed to identifying and pursuing opportunities to drive
solid growth in core and adjacent markets through innovation and
accretive acquisitions. We are confident that the continued prudent
investment in our business, strategic allocation of capital toward
accretive M&A and a focus on operational efficiency will enable us to
deliver continued growth and value to shareholders. Our platform of
world-class, differentiated solutions and services continues to set
CommScope apart."

Second Quarter 2018 Overview

Sales were in line with expectations and increased 6 percent year over
year as growth in the North America and Europe, Middle East and Africa
(EMEA) regions more than offset lower sales in the Asia-Pacific region.
Foreign exchange rate changes favorably impacted net sales by less than
1 percent.

GAAP operating income in the second quarter of 2018 increased 21 percent
year over year to $165 million. Non-GAAP adjusted operating income,
which excludes amortization of purchased intangibles, restructuring
costs and other special items, increased 4 percent year over year to
$251 million, or 20 percent of net sales. The increases in GAAP and
non-GAAP adjusted operating income were primarily driven by higher North
American sales volumes and cost reduction initiatives. These were
partially offset by lower selling prices, higher input costs and the
impact of unfavorable foreign exchange rate changes. In addition, GAAP
operating income benefited from lower integration and restructuring
costs.

Second Quarter 2018 Segment Overview

Second quarter Connectivity Solutions segment sales increased 2 percent
year over year to $740 million driven primarily by strength in the EMEA
region. Foreign exchange rate changes positively benefited net sales by
less than 1 percent.

Connectivity Solutions GAAP operating income increased 15 percent year
over year to $85 million largely due to lower integration and
restructuring costs. Non-GAAP adjusted operating income decreased 2
percent year over year to $143 million, or 19 percent of segment net
sales. Non-GAAP adjusted operating income decreased primarily due to
higher input costs, lower selling prices and the impact of unfavorable
foreign exchange rate changes. These declines were partially offset by
the benefits from cost reduction initiatives and higher sales volumes.

Second quarter Mobility Solutions segment sales increased 11 percent
year over year to $499 million driven by double-digit growth in North
America coupled with less pronounced increases in Latin America and
EMEA. This growth was offset by lower sales in the Asia-Pacific region.
Foreign exchange rate changes favorably impacted net sales by
approximately 1 percent.

Mobility Solutions GAAP operating income increased 27 percent year over
year to $79 million, and non-GAAP adjusted operating income increased 13
percent year over year to $108 million, or 22 percent of segment net
sales. Both GAAP and non-GAAP adjusted operating income benefited from
higher North American sales volumes partially offset by lower selling
prices and the impact of unfavorable foreign exchange rate changes.

Debt Repayment

CommScope has made solid progress identifying new opportunities to
accelerate its long-term growth prospects. The company believes that
enhancing strategic balance sheet flexibility will provide the best way
to support long-term value creation.

As a result, the company will repay $400 million of its term loan on
July 31, 2018 by utilizing $250 million of cash on hand and borrowing
$150 million under its asset-backed revolving credit facility.

Outlook

CommScope management issued third quarter 2018 guidance and reaffirmed
its guidance range for the full year 2018.

Third Quarter 2018 Guidance:

  • Revenue of $1.19 billion – $1.24 billion
  • Operating income of $145 million – $169 million
  • Non-GAAP adjusted operating income of $225 million – $250 million
  • Non-GAAP adjusted effective tax rate of approximately 29 percent – 30
    percent
  • Earnings per diluted share of $0.41 – $0.45, based on 195 million
    weighted average diluted shares
  • Non-GAAP adjusted earnings per diluted share of $0.63 – $0.68

Full Year 2018 Guidance:

  • Revenue of $4.675 billion – $4.825 billion
  • Operating income of $540 million – $585 million
  • Non-GAAP adjusted operating income of $870 million – $920 million
  • Non-GAAP adjusted effective tax rate of 29 percent – 30 percent
  • Earnings per diluted share of $1.18 – $1.30, based on 196 million
    weighted average diluted shares
  • Non-GAAP adjusted earnings per diluted share of $2.33 – $2.48
  • Cash flow from operations > $550 million

A reconciliation of GAAP to non-GAAP outlook is attached.

Conference Call, Webcast and Investor Presentation

As previously announced, CommScope will host a conference call today at
8:30 a.m. ET in which management will discuss second quarter 2018
results and third quarter and full year 2018 guidance. The conference
call will also be webcast.

To participate in the conference call, dial +1 844-397-6169 (US and
Canada only) or +1 478-219-0508. The conference identification number is
4825208. Please plan to dial in 15 minutes before the start of the call
to facilitate a timely connection. The live, listen-only audio of the
call and corresponding presentation will be available through a link on CommScope's
Investor Relations page
.

A webcast replay will be archived on CommScope's
website
for a limited period of time following the conference call.

About CommScope

CommScope
(NASDAQ:COMM) helps design, build and manage wired and wireless
networks around the world. As a communications infrastructure leader, we
shape the always-on networks of tomorrow. For more than 40 years, our
global team of more than 20,000 employees, innovators and technologists
have empowered customers in all regions of the world to anticipate
what's next and push the boundaries of what's possible. Discover more at http://www.commscope.com/

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Non-GAAP Financial Measures

CommScope management believes that presenting certain non-GAAP financial
measures enhances an investor's understanding of our financial
performance. CommScope management further believes that these financial
measures are useful in assessing CommScope's operating performance from
period to period by excluding certain items that we believe are not
representative of our core business. CommScope management also uses
certain of these financial measures for business planning purposes and
in measuring CommScope's performance relative to that of its
competitors. CommScope management believes these financial measures are
commonly used by investors to evaluate CommScope's performance and that
of its competitors. However, CommScope's use of the terms non-GAAP
adjusted operating income, non-GAAP adjusted EBITDA, non-GAAP adjusted
net income and non-GAAP adjusted earnings per share may vary from that
of others in its industry. These financial measures should not be
considered as alternatives to operating income (loss), net income (loss)
or any other performance measures derived in accordance with U.S. GAAP
as measures of operating performance, operating cash flows or liquidity.

Forward Looking Statements

These statements are subject to various risks and uncertainties, many of
which are outside our control, including, without limitation, our
dependence on customers' capital spending on data and communication
systems; concentration of sales among a limited number of customers and
channel partners; changes in technology; industry competition and the
ability to retain customers through product innovation, introduction and
marketing; risks associated with our sales through channel partners;
changes to the regulatory environment in which our customers operate;
product quality or performance issues and associated warranty claims;
our ability to maintain effective management information systems and to
successfully implement major systems initiatives; cyber-security
incidents, including data security breaches, ransomware or computer
viruses; the risk our global manufacturing operations suffer production
or shipping delays, causing difficulty in meeting customer demands; the
risk that internal production capacity or that of contract manufacturers
may be insufficient to meet customer demand or quality standards;
changes in cost and availability of key raw materials, components and
commodities and the potential effect on customer pricing; risks
associated with our dependence on a limited number of key suppliers for
certain raw material and components; the risk that contract
manufacturers we rely on encounter production, quality, financial or
other difficulties; our ability to integrate and fully realize
anticipated benefits from prior or future acquisitions or equity
investments; potential difficulties in realigning global manufacturing
capacity and capabilities among our global manufacturing facilities that
may affect our ability to meet customer demands for products; possible
future restructuring actions; substantial indebtedness and maintaining
compliance with debt covenants; our ability to incur additional
indebtedness; our ability to generate cash to service our indebtedness;
possible future impairment charges for fixed or intangible assets,
including goodwill; income tax rate variability and ability to recover
amounts recorded as deferred tax assets; our ability to attract and
retain qualified key employees; labor unrest; obligations under our
defined benefit employee benefit plans may require plan contributions in
excess of current estimates; significant international operations
exposing us to economic, political and other risks, including the impact
of variability in foreign exchange rates; our ability to comply with
governmental anti-corruption laws and regulations and export and import
controls worldwide; our ability to compete in international markets due
to export and import controls to which we may be subject; changes in the
laws and policies in the United States affecting trade, including the
risk and uncertainty related to tariffs or a potential global trade war
that may impact our products; costs of protecting or defending
intellectual property; costs and challenges of compliance with domestic
and foreign environmental laws; risks associated with stockholder
activism, which could cause us to incur significant expense, hinder
execution of our business strategy and impact the trading value of our
securities; and other factors beyond our control. These and other
factors are discussed in greater detail in our 2017 Annual Report on
Form 10-K. Although the information contained in this Quarterly Report
on Form 10-Q represents our best judgment as of the date of this report
based on information currently available and reasonable assumptions, we
can give no assurance that the expectations will be attained or that any
deviation will not be material. Given these uncertainties, we caution
you not to place undue reliance on these forward-looking statements,
which speak only as of the date made. We are not undertaking any duty or
obligation to update this information to reflect developments or
information obtained after the date of this report, except as otherwise
may be required by law.

CommScope Holding Company, Inc.
Condensed Consolidated Statements of Operations
(Unaudited -- In thousands, except per share amounts)
       
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
Net sales $ 1,239,856 $ 1,174,090 $ 2,360,373 $ 2,311,375
Operating costs and expenses:
Cost of sales 768,546 702,325 1,477,663 1,385,803
Selling, general and administrative 185,197 207,640 370,328 419,461
Research and development 47,765 46,982 97,629 95,970
Amortization of purchased intangible assets 66,442 66,981 133,671 134,619
Restructuring costs, net   7,218   13,773   12,668   19,161
Total operating costs and expenses   1,075,168   1,037,701   2,091,959   2,055,014
Operating income 164,688 136,389 268,414 256,361
Other income (expense), net (3,094 ) 2,900 (2,111 ) (12,457 )
Interest expense (60,726 ) (61,417 ) (120,533 ) (130,971 )
Interest income   2,057   1,730   3,491   2,604
Income before income taxes 102,925 79,602 149,261 115,537
Income tax expense   (37,003 )   (24,138 )   (49,604 )   (26,511 )
Net income $ 65,922 $ 55,464 $ 99,657 $ 89,026
 
Earnings per share:
Basic $ 0.34 $ 0.29 $ 0.52 $ 0.46
Diluted (a) $ 0.34 $ 0.28 $ 0.51 $ 0.45
 
Weighted average shares outstanding:
Basic 192,162 193,092 191,767 193,555
Diluted (a) 195,186 197,218 195,346 198,173
 
(a) Calculation of diluted earnings per share:
Net income (basic and diluted) $ 65,922 $ 55,464 $ 99,657 $ 89,026
 
Weighted average shares (basic) 192,162 193,092 191,767 193,555
Dilutive effect of equity-based awards   3,024   4,126   3,579   4,618
Denominator (diluted)   195,186   197,218   195,346   198,173
 
See notes to unaudited condensed consolidated financial statements
included in our Form 10-Q.
 
CommScope Holding Company, Inc.
Condensed Consolidated Balance Sheets
(Unaudited -- In thousands, except share amounts)
   
 
June 30, 2018 December 31, 2017
Assets
Cash and cash equivalents $ 545,701 $ 453,977

Accounts receivable, less allowance for doubtful accounts of
$19,123 and $13,976, respectively

 

1,023,716 898,829
Inventories, net 479,468 444,941
Prepaid expenses and other current assets   123,371   146,112
Total current assets 2,172,256 1,943,859

Property, plant and equipment, net of accumulated depreciation of
$413,832 and $390,389, respectively

446,954 467,289
Goodwill 2,866,319 2,886,630
Other intangible assets, net 1,491,007 1,636,084
Other noncurrent assets   129,344   107,804
Total assets $ 7,105,880 $ 7,041,666
Liabilities and Stockholders' Equity
Accounts payable $ 487,521 $ 436,737
Other accrued liabilities   297,755   286,980
Total current liabilities 785,276 723,717
Long-term debt 4,374,209 4,369,401
Deferred income taxes 108,529 134,241
Pension and other postretirement benefit liabilities 23,006 25,140
Other noncurrent liabilities   111,591   141,341
Total liabilities 5,402,611 5,393,840
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value: Authorized shares: 200,000,000;
Issued and outstanding shares: None
Common stock, $0.01 par value: Authorized shares: 1,300,000,000;
Issued and outstanding shares: 192,214,497 and 190,906,110,
respectively 1,989 1,972
Additional paid-in capital 2,361,365 2,334,071
Retained earnings (accumulated deficit) (290,337 ) (395,998 )
Accumulated other comprehensive loss (148,632 ) (86,603 )

Treasury stock, at cost: 6,735,330 shares and 6,336,144 shares,
respectively

  (221,116 )   (205,616 )
Total stockholders' equity   1,703,269   1,647,826
Total liabilities and stockholders' equity $ 7,105,880 $ 7,041,666
 

See notes to unaudited condensed consolidated financial statements
included in our Form 10-Q.

 
CommScope Holding Company, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited -- In thousands)
       
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
Operating Activities:
Net income $ 65,922 $ 55,464 $ 99,657 $ 89,026
Adjustments to reconcile net income to net cash generated

by operating activities:

Depreciation and amortization 88,944 90,052 178,349 190,453
Equity-based compensation 11,849 11,186 22,396 20,598
Deferred income taxes (19,166 ) 2,371 (24,610 ) (14,073 )
Changes in assets and liabilities:
Accounts receivable (65,915 ) 24,292 (137,023 ) 43,975
Inventories (22,786 ) (23,111 ) (47,993 ) (42,243 )
Prepaid expenses and other assets 23,894 10,541 (608 ) (1,773 )
Accounts payable and other liabilities 25,469 (92,745 ) 40,881 (120,777 )
Other   (8,408 )   9,194   4,014   24,847
Net cash generated by operating activities 99,803 87,244 135,063 190,033
Investing Activities:
Additions to property, plant and equipment (17,268 ) (17,667 ) (30,844 ) (30,577 )
Proceeds from sale of property, plant and equipment 3,241 4,623 6,225 4,978
Proceeds upon settlement of net investment hedge 1,331 1,331
Other     6,139     6,778
Net cash used in investing activities (12,696 ) (6,905 ) (23,288 ) (18,821 )
Financing Activities:
Long-term debt repaid (30,379 ) (780,379 )
Long-term debt proceeds 30,379 780,379
Debt issuance and modification costs (2,248 ) (8,363 )
Debt extinguishment costs (14,800 )
Cash paid for repurchase of common stock (41,230 ) (100,000 )
Proceeds from the issuance of common shares under

equity-based compensation plans

986 2,701 4,915 8,506
Tax withholding payments for vested equity-based

compensation awards

  (94 )   (100 )   (15,500 )   (14,858 )
Net cash generated by (used in) financing activities 892 (40,877 ) (10,585 ) (129,515 )
Effect of exchange rate changes on cash and cash equivalents   (15,031 )   7,392   (9,466 )   14,566
Change in cash and cash equivalents 72,968 46,854 91,724 56,263
Cash and cash equivalents at beginning of period   472,733   437,637   453,977   428,228
Cash and cash equivalents at end of period $ 545,701 $ 484,491 $ 545,701 $ 484,491
 
See notes to unaudited condensed consolidated financial statements
included in our Form 10-Q.
 
CommScope Holding Company, Inc.
Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures
(Unaudited -- In millions, except per share amounts)
       
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017   2018 2017
Operating income, as reported $ 164.7 $ 136.4 $ 268.4 $ 256.4
Adjustments:
Amortization of purchased intangible assets 66.4 67.0 133.7 134.6
Restructuring costs, net 7.2 13.8 12.7 19.2
Equity-based compensation 11.8 11.2 22.4 20.6
Integration and transaction costs   1.0   12.6   2.5 26.2
Total adjustments to operating income   86.4   104.6   171.3 200.6
Non-GAAP adjusted operating income $ 251.1 $ 241.0 $ 439.7 $ 457.0
Income before income taxes, as reported $ 102.9 $ 79.6 $ 149.3 $ 115.5
Income tax expense, as reported   (37.0 )   (24.1 )   (49.6 )   (26.5 )
Net income, as reported $ 65.9 $ 55.5 $ 99.7 $ 89.0
Adjustments:
Total pretax adjustments to operating income 86.4 104.6 171.3 200.6
Pretax amortization of deferred financing costs & OID (1) 2.6 2.8 5.2 15.6
Pretax loss on debt transactions (2) 1.1 16.0
Pretax net investment gains (2) (6.0 ) (6.6 )
Tax effects of adjustments and other tax items (3)   (21.8 )   (39.4 )   (48.0 )   (92.8 )
Non-GAAP adjusted net income $ 133.1 $ 118.6 $ 228.2 $ 221.8
Diluted EPS, as reported $ 0.34 $ 0.28 $ 0.51 $ 0.45
Non-GAAP adjusted diluted EPS $ 0.68 $ 0.60 $ 1.17 $ 1.12
 
(1) Included in interest expense.
(2) Included in other income (expense), net.
(3) The tax rates applied to adjustments reflect the tax expense or
benefit based on the tax jurisdiction of the entity generating the
adjustment. There are certain items for which we expect little or no
tax effect.
 
Note: Components may not sum to total due to rounding
See Description of Non-GAAP Financial Measures
 
CommScope Holding Company, Inc.
Sales by Region
(Unaudited -- In millions)
           

Sales by Region

% Change
Q2 2018 Q2 2017 YOY
United States $ 714.6 $ 643.9 11.0 %
Europe, Middle East and Africa 253.4 235.8 7.5
Asia Pacific 183.2 203.8 (10.1 )
Caribbean and Latin America 61.6 56.1 9.8
Canada   27.1   34.5 (21.4 )
Total Net Sales $ 1,239.9 $ 1,174.1 5.6 %
 
CommScope Holding Company, Inc.
Segment Information
(Unaudited -- In millions)
                   

Sales by Segment

% Change
Q2 2018 Q1 2018   Q2 2017   Sequential YOY
Connectivity Solutions $ 740.5 $ 673.6 $ 725.7 9.9 % 2.0 %
Mobility Solutions   499.4   446.9   448.4 11.7 % 11.4 %
Total Net Sales $ 1,239.9 $ 1,120.5 $ 1,174.1 10.7 % 5.6 %
 
 

Non-GAAP Adjusted Operating Income by
Segment

% Change
Q2 2018 Q1 2018   Q2 2017   Sequential YOY
Connectivity Solutions $ 142.9 $ 108.7 $ 145.6 31.5 % (1.9 ) %
Mobility Solutions   108.2   79.9   95.4 35.4 % 13.4 %
Total Non-GAAP Adjusted Operating Income $ 251.1 $ 188.6 $ 241.0 33.1 % 4.2 %
 
CommScope Holding Company, Inc.
Reconciliation of GAAP to Non-GAAP Adjusted Operating Income by
Segment
(Unaudited -- In millions)
     

Second Quarter 2018 Non-GAAP Adjusted
Operating Income Reconciliation by Segment

 
Connectivity Mobility
Solutions Solutions Total
Operating income, as reported $ 85.4 $ 79.3 $ 164.7
Amortization of purchased intangible assets 45.0 21.4 66.4
Restructuring costs, net 4.7 2.5 7.2
Equity-based compensation 7.2 4.6 11.8
Integration and transaction costs   0.7   0.3   1.0
Non-GAAP adjusted operating income $ 142.9 $ 108.2 $ 251.1
Non-GAAP adjusted operating margin % 19.3 % 21.7 % 20.3 %
 

First Quarter 2018 Non-GAAP Adjusted
Operating Income Reconciliation by Segment

 
Connectivity Mobility
Solutions Solutions Total
Operating income, as reported $ 53.2 $ 50.5 $ 103.7
Amortization of purchased intangible assets 45.5 21.8 67.2
Restructuring costs, net 2.4 3.1 5.5
Equity-based compensation 6.4 4.1 10.5
Integration and transaction costs   1.2   0.4   1.7
Non-GAAP adjusted operating income $ 108.7 $ 79.9 $ 188.6
Non-GAAP adjusted operating margin % 16.1 % 17.9 % 16.8 %
 

Second Quarter 2017 Non-GAAP Adjusted
Operating Income Reconciliation by Segment

 
Connectivity Mobility
Solutions Solutions Total
Operating income, as reported $ 74.1 $ 62.3 $ 136.4
Amortization of purchased intangible assets 42.9 24.1 67.0
Restructuring costs, net 9.6 4.2 13.8
Equity-based compensation 6.5 4.7 11.2
Integration and transaction costs   12.5   0.2   12.6
Non-GAAP adjusted operating income $ 145.6 $ 95.4 $ 241.0
Non-GAAP adjusted operating margin % 20.1 % 21.3 % 20.5 %
 
Components may not sum to total due to rounding
See Description of Non-GAAP Financial Measures
 
CommScope Holding Company, Inc.
Adjusted Free Cash Flow
(Unaudited -- In millions)
   

Adjusted Free Cash Flow

 
Q2 2018 Q2 2017
Cash flow from operations $ 99.8 $ 87.2
Integration and transaction costs 16.7
Capital expenditures   (17.3 )   (17.7 )
Adjusted Free Cash Flow $ 82.5 $ 86.2
 
See Description of Non-GAAP Financial Measures
 
CommScope Holding Company, Inc.
Quarterly Adjusted Operating Income and Adjusted EBITDA
(Unaudited -- In millions)
         

GAAP to Non-GAAP Adjusted Operating
Income and Adjusted EBITDA Reconciliation

 
Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017
Operating income, as reported $ 164.7 $ 103.7 $ 90.3 $ 125.4 $ 136.4
Amortization of purchased intangible assets 66.4 67.2 68.1 68.3 67.0
Restructuring costs, net 7.2 5.5 19.3 5.4 13.8
Equity-based compensation 11.8 10.5 10.3 11.0 11.2
Integration and transaction costs   1.0   1.7   9.8   12.0   12.6
Non-GAAP adjusted operating income $ 251.1 $ 188.6 $ 197.7 $ 222.1 $ 241.0
Non-GAAP adjusted operating margin % 20.3 % 16.8 % 17.6 % 19.7 % 20.5 %
Depreciation   19.9   19.6   20.8   20.6   20.2
Non-GAAP adjusted EBITDA $ 271.1 $ 208.1 $ 218.5 $ 242.7 $ 261.3
 
Components may not sum to total due to rounding
See Description of Non-GAAP Financial Measures
 
CommScope Holding Company, Inc.
Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures
(Unaudited -- In millions, except per share amounts)
       
Outlook
Three Months Ended  
September 30, Full Year
2018 2018
 
Operating income $145 - $169 $540 - $585
Adjustments:
Amortization of purchased intangible assets $66 $265
Equity-based compensation $12 $50
Restructuring costs, integration costs and other (1) $2 - $3 $15 - $20
Total adjustments to operating income $80 - $81 $330 - $335
Non-GAAP adjusted operating income $225 - $250 $870 - $920
 
Diluted earnings per share $0.41 - $0.45 $1.18 - $1.30
Adjustments (2):
Total adjustments to operating income $0.31 - $0.33 $1.25 - $1.30
Debt-related costs and other special items (3) $(0.09) - $(0.10) $(0.10) - $(0.12)
Non-GAAP adjusted diluted earnings per share $0.63 - $0.68 $2.33 - $2.48
 
 
(1) Reflects projections for restructuring costs, integration costs
and other special items. Actual adjustments may vary from
projections.
(2) The tax rates applied to projected adjustments reflect the tax
expense or benefit based on the expected tax jurisdiction of the
entity generating the projected adjustments. There are certain items
for which we expect little or no tax effect.
(3) Reflects projections for amortization of debt issuance costs,
loss on debt extinguishment, gains on defined benefit plan
terminations and tax items. Actual adjustments may vary from
projections.
 
Our actual results may be impacted by additional events for which
information is not currently available, such as additional
restructuring activities, asset impairments, debt extinguishments,
additional transaction and integration costs, foreign exchange rate
fluctuations and other gains or losses related to events that are
not currently known or measurable.
 
See Caution Regarding Forward-Looking Statements and Description of
Non-GAAP Financial Measures.

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