Market Overview

Anixter International Inc. Reports First Quarter 2019 Diluted EPS of $1.14 and Adjusted Diluted EPS of $1.33, up 15%

Share:

First Quarter Highlights

  • Record first quarter sales of $2.1 billion, up 7.3%, organic sales
    growth of 7.7%
  • Organic sales growth in all segments
  • Gross margin up 30 basis points
  • Operating margin up 40 basis points; Strong operating leverage

Anixter International Inc. (NYSE:AXE) today announced its results for
the first quarter of 2019.

"Sales growth was above our outlook range, driven by strong results in
our NSS and UPS segments. In addition to strong sales growth, we were
pleased to continue to deliver meaningful improvement in gross margin
and operating margin, driven by margin initiatives implemented across
the business," commented Bill Galvin, President and Chief Executive
Officer.

The following results are for the 13 weeks ended March 29, 2019,
compared to the 13 weeks ended March 30, 2018. Unless otherwise noted,
all comparisons are versus the prior year quarter. Both the current and
prior year quarters had 64 billing days.

  • Sales increased 7.3% to $2.1 billion. Current quarter sales include
    the favorable impact of the security acquisitions completed in the
    second quarter of 2018 and the unfavorable impacts of lower average
    copper prices and generally weaker foreign currencies. Adjusting for
    these impacts, organic sales increased 7.7%, as detailed in the table
    on page 9 of this release.
  • Gross profit increased 8.9% to $418.9 million. Gross margin of 19.9%
    increased by 30 basis points year over year.
  • Operating expense of $344.3 million compares to $323.2 million.
    Operating expense ratio of 16.3% compares to 16.5%.
  • Operating income increased 21.1% to $74.6 million. Operating margin of
    3.5% compares to 3.1%.
  • Interest expense of $20.4 million compares to $18.2 million.
  • Other, net income of $1.8 million compares to $2.3 million.
  • The effective tax rate of 30.3% compares to 29.7%.
  • Net income of $39.1 million compares to $32.1 million.
  • Earnings per diluted share of $1.14 compares to $0.94.
  • 2019 cash flow used from operations of $114.2 million compares to
    $71.2 million.
  • 2019 capital expenditures of $5.9 million compares to $10.9 million.
  • Working capital as a percentage of sales of 19.6% compares to 20.0%.

Non-GAAP Measures

Please refer to the tables on pages 9 - 12 for the reconciliations of
our reported results prepared in accordance with U.S. GAAP to the
non-GAAP measures. Unless otherwise noted, all non-GAAP financial
metrics that follow exclude the expense items detailed on page 10 of
this release.

  • Adjusted operating expense of $335.8 million compares to $313.4
    million, up 7.1%. Adjusted operating expense ratio of 15.9% compares
    to 16.0%. The increase in adjusted operating expense is due to $7.5
    million of incremental expense from the acquisitions and $7.0 million
    of investment in innovation and business transformation strategies,
    combined with higher volume-related costs.
  • Adjusted operating income of $83.1 million compares to $71.4 million.
    Adjusted operating margin of 3.9% compares to 3.6%.
  • Adjusted EBITDA of $96.5 million compares to $83.4 million. Adjusted
    EBITDA margin of 4.6% compares to 4.2%.
  • Adjusted effective tax rate of 29.8% compares to 28.5%.
  • Adjusted net income increased 14.3% to $45.4 million.
  • Adjusted diluted earnings per share increased 14.7% to $1.33.

Ted Dosch, EVP and Chief Financial Officer, commented, "Our strong year
over year gross margin performance helped drive the increase in adjusted
EBITDA margin of 40 basis points over the first quarter of 2018, and
operating leverage of 2.1 times. This improvement in gross margin will
help fund our investment in innovation and business transformation, as
we continue to invest in customer-facing technologies that will enhance
our digital capabilities and enterprise efficiencies and drive long term
EBITDA growth."

Segment Update

Network & Security Solutions ("NSS") reported record first quarter sales
of $1.1 billion, an increase of 11.8%, or 10.7% on an organic basis. NSS
security sales of $476.0 million, which represents approximately 43% of
segment sales, increased 15.3%. Adjusted EBITDA increased 33.3% to $78.0
million. Adjusted EBITDA margin of 7.0% compares to 5.9%, driven by
strong volume growth and gross margin improvement.

Electrical & Electronic Solutions ("EES") reported first quarter sales
of $566.0 million, a decrease of 0.4% and an increase of 2.3%
organically. Adjusted EBITDA decreased 6.0% to $32.6 million. Adjusted
EBITDA margin decreased by 30 basis points to 5.8%, as volume decrease
offset the benefit of improved gross margins.

Utility Power Solutions ("UPS") reported record first quarter sales of
$430.0 million, an increase of 7.2%, or 7.9% on an organic basis.
Adjusted EBITDA increased 8.6% to $22.7 million. Adjusted EBITDA margin
increased 10 basis points to 5.3%, driven by volume growth and strong
operating leverage.

Cash Flow and Credit Metrics

In the first quarter of 2019 we used $114.2 million of cash flow from
operations, which compares to $71.2 million used in the first quarter of
2018, driven primarily by an increase in working capital to support
growth in the business. Working capital as a percentage of sales was
19.6%, which compares to 20.0% in the prior year quarter. We invested
$5.9 million in capital expenditures in the first quarter of 2019, which
compares to $10.9 million in the first quarter of 2018, primarily
reflecting investment in facilities and information technology.

Key capital structure and credit-related statistics for the quarter:

  • Debt-to-total capital ratio of 45.8%, compares to 44.4% at the end of
    2018
  • Debt-to-adjusted EBITDA ratio of 3.2 times compares to 3.0 times at
    the end of 2018
  • Weighted average cost of borrowed capital of 5.3%, compares to 5.3% in
    the prior year quarter
  • $484.1 million available under secured accounts receivable, inventory
    facilities and revolving lines of credit

Outlook

Galvin commented,"We are optimistic that favorable sales trends that we
realized in the first quarter of 2019 will continue, based on our strong
backlog and pipeline trends, and discussions with our customers and
suppliers. We continue to see strong demand, tempered by macro economic
uncertainty in certain markets. Based on current conditions, we have
increased our 2019 organic sales growth to the 4% - 6.5% range, with
second quarter 2019 organic sales growth in the 3% - 5% range. Based on
our outlook for low-to-mid single digit sales growth and the related
investment in working capital to support that growth, combined with our
ongoing investment in innovation and business transformation, we
reaffirm our previous estimate for full year cash flow from operations
of $150 - $175 million and capital expenditures of $55 - $60 million,
which will result in free cash flow of $95 - $115 million."

Financial Results

 
Three Months Ended
(In millions, except per share amounts) March 29,
2019
  March 30,
2018
 

Percent
Change

Net Sales $ 2,108.5 $ 1,964.2 7 %
Operating Income $ 74.6 $ 61.6 21 %
Net Income $ 39.1 $ 32.1 22 %
Diluted Earnings Per Share $ 1.14 $ 0.94 21 %
Diluted Weighted Shares 34.2 34.1 %
 

Conference Call Details

Today's conference call to discuss these results will begin at 9:30 a.m.
Central Time. The call will be available as a live audio webcast and can
be accessed at the Investor Relations portion of our website at anixter.com/investor.
Dial-in numbers for the call are as follows:

U.S./Canada toll-free dial-in: (833) 235-7649
International
dial-in: (647) 689-4538
Conference ID: 408 8738

A replay of the call will be available at anixter.com/investor for 15
days following the call. Prior to the beginning of the call a
supplemental presentation titled "First Quarter 2019 Highlights and
Operating Results" will be available on the Investor Relations section
of our website.

About Anixter

Anixter International is a leading global distributor of Network &
Security Solutions, Electrical & Electronic Solutions and Utility Power
Solutions. We help build, connect, protect, and power valuable assets
and critical infrastructures. From enterprise networks to industrial MRO
supply to video surveillance applications to electric power
distribution, we offer full-line solutions, and intelligence, that
create reliable, resilient systems that sustain businesses and
communities. Through our unmatched global distribution network along
with our supply chain and technical expertise, we help lower the cost,
risk and complexity of our customers' supply chains.

Anixter adds value to the distribution process by providing
approximately 130,000 customers access to 1) innovative supply chain
solutions, 2) nearly 600,000 products and over $1.0 billion in
inventory, 3) 316 warehouses/branch locations with over 9.0 million
square feet of space and 4) locations in over 300 cities in
approximately 50 countries. Founded in 1957 and headquartered near
Chicago, Anixter trades on the New York Stock Exchange under the symbol
AXE.

Safe Harbor Statement

The statements in this release other than historical facts are
forward-looking statements made in reliance upon the safe harbor of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to a number of factors that could cause our
actual results to differ materially from what is indicated here. These
factors include but are not limited to general economic conditions, the
level of customer demand particularly for capital projects in the
markets we serve, changes in supplier relationships or in supplier sales
strategies or financial viability, risks associated with the sale of
nonconforming products and services, political, economic or currency
risks related to foreign operations, inventory obsolescence, copper
price fluctuations, customer viability, risks associated with accounts
receivable, risks associated with pension expense and funding,
compliance with laws and regulations, the impact of investigative and
legal proceedings and legal compliance risks, information security
risks, disruption or failure of information systems, disruptions to
logistics capability or supply chain, risks associated with substantial
debt and restrictions contained in financial and operating covenants in
our debt agreements, the impact and the uncertainty concerning the
timing and terms of the withdrawal by the United Kingdom from the
European Union, unanticipated change in our tax provision and tax
liabilities related to the enactment of the Tax Cuts and Jobs Act and
risks associated with integration of acquired companies, including, but
not limited to, the risk that the acquisitions may not provide us with
the synergies or other benefits that were anticipated. These
uncertainties may cause our actual results to be materially different
than those expressed in any forward looking statements. We do not
undertake to update any forward looking statements. Please see our
Securities and Exchange Commission ("SEC") filings for more information.

Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. Generally
Accepted Accounting Principles ("U.S. GAAP") above, this release
includes certain financial measures computed using non-GAAP components
as defined by the SEC. Specifically, net sales comparisons to the prior
corresponding period, both worldwide and in relevant segments, are
discussed in this release both on an U.S. GAAP and non-GAAP basis. We
believe that by providing non-GAAP organic growth, which adjusts for the
impact of acquisitions (when applicable), foreign exchange fluctuations,
copper prices and the number of billing days (when applicable), both
management and investors are provided with meaningful supplemental sales
information to understand and analyze our underlying trends and other
aspects of our financial performance. Historically and from time to
time, we may also exclude other items from reported financial results
(e.g., impairment charges, inventory adjustments, restructuring charges,
tax items, currency devaluations, pension settlements, etc.) in
presenting adjusted operating expense, adjusted operating income,
adjusted income taxes and adjusted net income so that both management
and financial statement users can use these non-GAAP financial measures
to better understand and evaluate our performance period over period and
to analyze the underlying trends of our business. We have also excluded
amortization of intangible assets associated with purchase accounting
from acquisitions from the adjusted amounts for comparison of the
non-GAAP financial measures period over period.

EBITDA is defined as net income before interest, income taxes,
depreciation and amortization. Adjusted EBITDA is defined as EBITDA
before foreign exchange and other non-operating expense and non-cash
stock-based compensation, excluding the other items from reported
financial results, as defined above. Adjusted EBITDA leverage is defined
as the percentage change in Adjusted EBITDA divided by the percentage
change in net sales. We believe that adjusted operating income, EBITDA,
Adjusted EBITDA and Adjusted EBITDA leverage provide relevant and useful
information, which is widely used by analysts, investors and competitors
in our industry as well as by our management in assessing both
consolidated and business segment performance. Adjusted operating income
provides an understanding of the results from the primary operations of
our business by excluding the effects of certain items that do not
reflect the ordinary earnings of our operations. We use adjusted
operating income to evaluate our period-over-period operating
performance because we believe this provides a more comparable measure
of our continuing business excluding certain items that are not
reflective of expected ongoing operations. This measure may be useful to
an investor in evaluating the underlying performance of our business.
EBITDA provides us with an understanding of earnings before the impact
of investing and financing charges and income taxes. Adjusted EBITDA
further excludes the effects of foreign exchange and other non-cash
stock-based compensation, and certain items that do not reflect the
ordinary earnings of our operations and that are also excluded for
purposes of calculating adjusted net income, adjusted earnings per share
and adjusted operating income. EBITDA and Adjusted EBITDA are used by
our management for various purposes including as measures of performance
of our operating segments and as a basis for strategic planning and
forecasting. Adjusted EBITDA and Adjusted EBITDA leverage may be useful
to an investor because this measure is widely used to evaluate a
company's operating performance without regard to items excluded from
the calculation of such measure, which can vary substantially from
company to company depending on the accounting methods, book value of
assets, capital structure and the method by which the assets were
acquired, among other factors. They are not, however, intended as an
alternative measure of operating results or cash flow from operations as
determined in accordance with U.S. GAAP.

Non-GAAP financial measures provide insight into selected financial
information and should be evaluated in the context in which they are
presented. These non-GAAP financial measures have limitations as
analytical tools, and should not be considered in isolation from, or as
a substitute for, financial information presented in compliance with
U.S. GAAP, and non-GAAP financial measures as reported by us may not be
comparable to similarly titled amounts reported by other companies. The
non-GAAP financial measures should be considered in conjunction with the
Condensed Consolidated Financial Statements, including the related
notes, and Management's Discussion and Analysis of Financial Condition
and Results of Operations included. Management does not use these
non-GAAP financial measures for any purpose other than the reasons
stated above.

Additional information about Anixter is available at www.anixter.com

 
ANIXTER INTERNATIONAL INC.
Condensed Consolidated Statements of Operations (Unaudited)
   
Three Months Ended

March 29,
2019

March 30,
2018

(In millions, except per share amounts)
Net sales $ 2,108.5 $ 1,964.2
Cost of goods sold 1,689.6   1,579.4  
Gross profit 418.9 384.8
Operating expenses 344.3   323.2  
Operating income 74.6 61.6
Other expense:
Interest expense (20.4 ) (18.2 )
Other, net 1.8   2.3  
Income before income taxes 56.0 45.7
Income tax expense 16.9   13.6  
Net income $ 39.1   $ 32.1  
Income per share:
Basic $ 1.15 $ 0.95
Diluted $ 1.14 $ 0.94
 
Weighted-average common shares outstanding:
Basic 33.9 33.7
Diluted 34.2 34.1
 
Reportable Segments
Net sales:
Network & Security Solutions $ 1,112.5 $ 994.8
Electrical & Electronic Solutions 566.0 568.4
Utility Power Solutions 430.0   401.0  
$ 2,108.5   $ 1,964.2  
Operating income:
Network & Security Solutions $ 70.9 $ 53.5
Electrical & Electronic Solutions 29.1 31.4
Utility Power Solutions 18.5 16.4
Corporate (43.9 ) (39.7 )
$ 74.6   $ 61.6  
 
 
ANIXTER INTERNATIONAL INC.
Condensed Consolidated Balance Sheets
(Unaudited)  

March 29,
2019

December 28,
2018

(In millions)
 
ASSETS
Current assets:
Cash and cash equivalents $ 77.0 $ 81.0
Accounts receivable, net 1,593.7 1,600.0
Inventories 1,443.8 1,440.4
Other current assets 43.6   50.6
Total current assets 3,158.1 3,172.0
Property and equipment, net 161.7 163.3
Operating leases, net 234.2
Goodwill 834.9 832.0
Intangible assets, net 385.3 392.9
Other assets 95.5   92.9
Total assets $ 4,869.7   $ 4,653.1
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,164.0 $ 1,320.0
Accrued expenses 278.9 309.0
Current operating lease obligations 58.7  

Total current liabilities

1,501.6 1,629.0
Long-term debt 1,368.3 1,252.7
Operating lease obligations 181.4
Other liabilities 197.7   201.0
Total liabilities 3,249.0 3,082.7
Total stockholders' equity 1,620.7   1,570.4
Total liabilities and stockholders' equity $ 4,869.7   $ 4,653.1
 
 
ANIXTER INTERNATIONAL INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
Three Months Ended

March 29,
2019

March 30,
2018

(In millions)
 
Operating activities:
Net income $ 39.1 $ 32.1
Adjustments to reconcile net income to net cash used in operating
activities:
Depreciation 9.3 7.4
Amortization of intangible assets 8.8 9.3
Stock-based compensation 4.1 4.6
Deferred income taxes 0.1 0.4
Pension plan contributions (2.1 ) (2.3 )
Pension plan expenses 1.4 1.2
Changes in current assets and liabilities, net (175.8 ) (124.9 )
Other, net 0.9   1.0  
Net cash used in operating activities (114.2 ) (71.2 )
Investing activities:
Capital expenditures, net (5.9 ) (10.9 )
Other   4.1  
Net cash used in investing activities (5.9 ) (6.8 )
Financing activities:
Proceeds from borrowings 1,241.5 531.3
Repayments of borrowings (1,127.4 ) (493.0 )
Proceeds from stock options exercised 1.0 0.8
Other, net (0.2 )  
Net cash provided by financing activities 114.9   39.1  
Decrease in cash and cash equivalents (5.2 ) (38.9 )
Effect of exchange rate changes on cash balances 1.2 1.6
Cash and cash equivalents at beginning of period 81.0   116.0  
Cash and cash equivalents at end of period $ 77.0   $ 78.7  
 
 
ANIXTER INTERNATIONAL INC.
Financial Measures That Supplement U.S. GAAP (Unaudited)
                                       
First Quarter 2019 Sales Growth Trends
  Q1 2019   Q1 2018    
    Foreign         Adjusted Growth/(Decline)
(In millions) As
Reported

Exchange
Impact

Copper
Impact

As
Adjusted
As
Reported

Acquisitions
Impact

for
Acquisitions

Actual Organic
 
Network & Security Solutions
North America $ 824.8 $ 5.5 $ $ 830.3 $ 768.5 $ $ 768.5 7.3 % 8.0 %
EMEA 93.6 6.2 99.8 98.3 1.1 99.4 (4.8 )% 0.4 %
Emerging Markets 194.1   7.0     201.1   128.0   25.9   153.9   51.7 % 30.7 %
NSS $ 1,112.5   $ 18.7   $   $ 1,131.2   $ 994.8   $ 27.0   $ 1,021.8   11.8 % 10.7 %
 
Electrical & Electronic Solutions
North America $ 443.0 $ 4.0 $ 5.1 $ 452.1 $ 442.9 $ $ 442.9 % 2.1 %
EMEA 58.9 4.1 0.5 63.5 70.3 70.3 (16.1 )% (9.6 )%
Emerging Markets 64.1   1.0   0.6   65.7   55.2     55.2   16.1 % 19.0 %
EES $ 566.0   $ 9.1   $ 6.2   $ 581.3   $ 568.4   $   $ 568.4   (0.4 )% 2.3 %
 
Utility Power Solutions
North America $ 430.0   $ 2.5   $ 0.2   $ 432.7   $ 401.0   $   $ 401.0   7.2 % 7.9 %
UPS $ 430.0   $ 2.5   $ 0.2   $ 432.7   $ 401.0   $   $ 401.0   7.2 % 7.9 %
             
Total $ 2,108.5   $ 30.3   $ 6.4   $ 2,145.2   $ 1,964.2   $ 27.0   $ 1,991.2   7.3 % 7.7 %
 
Geographic Sales
North America $ 1,697.8 $ 12.0 $ 5.3 $ 1,715.1 $ 1,612.4 $ $ 1,612.4 5.3 % 6.4 %
EMEA 152.5 10.3 0.5 163.3 168.6 1.1 169.7 (9.5 )% (3.8 )%
Emerging Markets 258.2   8.0   0.6   266.8   183.2   25.9   209.1   41.0 % 27.6 %
Total $ 2,108.5   $ 30.3   $ 6.4   $ 2,145.2   $ 1,964.2   $ 27.0   $ 1,991.2   7.3 % 7.7 %
 
  Note: There were 64 billing days in the first quarter of 2019
and 2018. Adjustment for billing days unnecessary.
       
         
ANIXTER INTERNATIONAL INC.    
Financial Measures That Supplement U.S. GAAP (Unaudited) -
continued
     
(In millions, except per share amounts) Positive (Negative) impact
Three Months Ended

March 29,
2019

March 30,
2018

Items impacting comparability of results:
Items impacting operating expense and operating income:
Amortization of intangible assets $ (8.8 ) $ (9.3 )
Acquisition and integration costs 0.3 (0.3 )
U.K. facility relocation costs   (0.2 )
Total of items impacting operating expense and operating income $ (8.5 ) $ (9.8 )
Total of items impacting pre-tax income $ (8.5 ) $ (9.8 )
Items impacting income taxes:
Tax impact of items impacting pre-tax income above $ 2.2   $ 2.2  
Total of items impacting income taxes $ 2.2   $ 2.2  
Net income impact of these items $ (6.3 ) $ (7.6 )
Diluted EPS impact of these items $ (0.19 ) $ (0.22 )
 
U.S. GAAP to Non-GAAP Net Income and EPS Reconciliation:
Net income – U.S. GAAP $ 39.1 $ 32.1
Items impacting net income 6.3   7.6  
Net income – Non-GAAP $ 45.4   $ 39.7  
 
Diluted EPS – U.S. GAAP $ 1.14 $ 0.94
Diluted EPS impact of these items 0.19   0.22  
Diluted EPS – Non-GAAP $ 1.33   $ 1.16  
                 
   
Items Impacting Comparability of Operating Income by Segment   Three Months Ended March 29, 2019
(In millions) NSS   EES   UPS   Corporate   Total
 
Operating income - U.S. GAAP $ 70.9 $ 29.1 $ 18.5 $ (43.9 ) $ 74.6
Operating margin - U.S. GAAP 6.4 % 5.1 % 4.3 % nm 3.5 %
         
Total of items impacting operating income $ 4.1   $ 1.4   $ 3.2   $ (0.2 ) $ 8.5  
 
Adjusted operating income - Non-GAAP $ 75.0 $ 30.5 $ 21.7 $ (44.1 ) $ 83.1
Adjusted operating margin - Non-GAAP 6.7 % 5.4 % 5.1 % nm 3.9 %
 
nm - not meaningful                    
   
Items Impacting Comparability of Operating Income by Segment   Three Months Ended March 30, 2018
(In millions) NSS   EES   UPS   Corporate   Total
 
Operating income - U.S. GAAP $ 53.5 $ 31.4 $ 16.4 $ (39.7 ) $ 61.6
Operating margin - U.S. GAAP 5.4 % 5.5 % 4.1 % nm 3.1 %
         
Total of items impacting operating income $ 3.8   $ 2.4   $ 3.3   $ 0.3   $ 9.8  
 
Adjusted operating income - Non-GAAP $ 57.3 $ 33.8 $ 19.7 $ (39.4 ) $ 71.4
Adjusted operating margin - Non-GAAP 5.8 % 5.9 % 4.9 % nm 3.6 %
 
nm - not meaningful                    
         
ANIXTER INTERNATIONAL INC.    
Financial Measures That Supplement U.S. GAAP (Unaudited) -
continued
   
         
2019 and 2018 Effective Tax Rate – U.S. GAAP and Non-GAAP
Three Months Ended
March 29, March 30,
(In millions) 2019 2018
Income before taxes – U.S. GAAP $ 56.0 $ 45.7
Income tax expense – U.S. GAAP $ 16.9 $ 13.6
Effective income tax rate 30.3 % 29.7 %
 
Total of items impacting pre-tax income above $ 8.5   $ 9.8  
Total of items impacting income taxes above $ 2.2   $ 2.2  
 
Income before income taxes – Non-GAAP $ 64.5 $ 55.5
Income tax expense – Non-GAAP $ 19.1 $ 15.8
Adjusted effective income tax rate 29.8 % 28.5 %
             
 
2019 EBITDA and Adjusted EBITDA by Segment
  Three Months Ended March 29, 2019
(In millions) NSS   EES   UPS   Corporate   Total
Net income $ 70.9 $ 29.1 $ 18.5 $ (79.4 ) $ 39.1
Interest expense 20.4 20.4
Income taxes 16.9 16.9
Depreciation 2.4 1.8 0.9 4.2 9.3
Amortization of intangible assets 4.1   1.4   3.3     8.8  
EBITDA $ 77.4   $ 32.3   $ 22.7   $ (37.9 ) $ 94.5  
EBITDA leverage 2.8x nm 1.4x 0.7x 2.3x
EBITDA as a % of sales 7.0 % 5.7 % 5.3 % nm 4.5 %
 
Foreign exchange and other non-operating (income) $ $ $ $ (1.8 ) $ (1.8 )
Stock-based compensation 0.6 0.3 0.1 3.1 4.1
Restructuring charge (0.1 ) 0.1
Acquisition and integration costs       (0.3 ) (0.3 )
Adjusted EBITDA $ 78.0   $ 32.6   $ 22.7   $ (36.8 ) $ 96.5  
Adjusted EBITDA leverage 2.8x nm 1.2x 0.8x 2.1x
Adjusted EBITDA as a % of sales 7.0 % 5.8 % 5.3 % nm 4.6 %
 
nm - not meaningful                    
     
ANIXTER INTERNATIONAL INC.  
Financial Measures That Supplement U.S. GAAP (Unaudited) -
continued
   
                     
2018 EBITDA and Adjusted EBITDA by Segment
  Three Months Ended March 30, 2018
(In millions) NSS   EES   UPS   Corporate Total
Net income $ 53.5 $ 31.4 $ 16.4 $ (69.2 ) $ 32.1
Interest expense 18.2 18.2
Income taxes 13.6 13.6
Depreciation 0.8 0.5 0.9 5.2 7.4
Amortization of intangible assets 3.8   2.2   3.3     9.3  
EBITDA $ 58.1   $ 34.1   $ 20.6   $ (32.2 ) $ 80.6  
EBITDA leverage -12.1x 1.5x 0.1x nm -1.4x
EBITDA as a % of sales 5.8 % 6.0 % 5.1 % nm 4.1 %
 
Foreign exchange and other non-operating (income) $ $ $ $ (2.3 ) $ (2.3 )
Stock-based compensation 0.4 0.4 0.3 3.5 4.6
Acquisition and integration costs 0.3 0.3
U.K. facility relocation costs   0.2       0.2  
Adjusted EBITDA $ 58.5   $ 34.7   $ 20.9   $ (30.7 ) $ 83.4  
Adjusted EBITDA leverage -12.0x 1.8x 0.0x nm -1.9x
Adjusted EBITDA as a % of sales 5.9 % 6.1 % 5.2 % nm 4.2 %
 
nm - not meaningful                    

View Comments and Join the Discussion!
 
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com