1Q 2016 Highlights and Operating Resultss21.q4cdn.com/603071597/files/doc_presentations/... ·...
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1Q 2016 Highlights and Operating Results
1
2© 2016 Anixter Inc.
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 SecuritiesLitigation Reform Act of 1995. These forward-looking statements are subject to a number of factors that could cause our actual results to differmaterially from what is indicated here. These factors include but are not limited to general economic conditions, the level of customer demandparticularly for capital projects in the markets we serve, changes in supplier relationships or in supplier sales strategies or financial viability, risksassociated with the sale of nonconforming products and services, political, economic or currency risks related to foreign operations, inventoryobsolescence, copper price fluctuations, customer viability, risks associated with accounts receivable, the impact of regulation and regulatory,investigative and legal proceedings and legal compliance risks, information security risks, risks associated with substantial debt and restrictionscontained in financial and operating covenants in our debt agreements, and risks associated with integration of acquired companies, including, but notlimited to, the risk that the acquisitions may not provide us with the synergies or other benefits that were anticipated. These uncertainties may causeour actual results to be materially different than those expressed in any forward looking statements. We do not undertake to update any forward lookingstatements. Please see our Securities and Exchange Commission (“SEC”) filings for more information.
In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) above, this presentation includes certainfinancial measures computed using non-GAAP components as defined by the SEC. Specifically, net sales comparisons to the prior correspondingperiod, both worldwide and in relevant segments, are discussed in this presentation both on a GAAP and non-GAAP basis. We believe that by providingnon-GAAP organic growth, which adjusts for the impact of acquisitions (when applicable), foreign exchange fluctuations and copper prices, bothmanagement and investors are provided with meaningful supplemental sales information to understand and analyze our underlying trends and otheraspects of our financial performance. We calculate the year-over-year organic sales growth impact relating to the Power Solutions acquisition byincluding its 2015 comparable period results prior to the acquisition with our results (on a "pro forma" basis) as we believe this represents the mostaccurate representation of organic growth, considering the nature of the company we acquired and the synergistic revenues that have been or will beachieved. Historically and from time to time, we may also exclude other items from reported financial results (e.g., impairment charges, inventoryadjustments, restructuring charges, tax items, currency devaluations, etc.) 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.As a result of the acquisitions of Tri-Ed and Power Solutions, beginning in the first quarter of 2016, we have also excluded amortization of intangibleassets associated with purchase accounting from acquisitions from the adjusted amounts discussed below as non-GAAP financial measures.
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, financialinformation presented in compliance with GAAP, and non-GAAP financial measures as reported by us may not be comparable to similarly titled amountsreported by other companies. The non-GAAP financial measures should be considered in conjunction with the Condensed Consolidated FinancialStatements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations. Managementdoes not use these non-GAAP financial measures for any purpose other than the reasons stated above. Unless otherwise stated, all numbers in thispresentation reflect results from continuing operations.
3© 2016 Anixter Inc.
1Q 2016 Highlights and Operating Results
Table of Contents
1. Sales overview2. NSS overview3. EES overview4. UPS overview5. Financial performance trends6. Leverage metrics7. Financial details8. Outlook9. Appendix
4© 2016 Anixter Inc.
Organic Sales Trend
YO
YO
rgan
icG
row
th
1Q 15 2Q 15 3Q15 4Q15 1Q16
2.2%
3.4%
0.7%
(0.5)%
—%
1Q16 Organic Sales Flat
$M
illio
ns
1Q15 PF Currency Copper OrganicGrowth
1Q16
$1,868
$(32)$(20)
$0 $1,816
Sales Growth Drivers• Quarterly sales of $1.82B, up 31%, driven by Power Solutions acquisition• Organic sales flat, with strength in NSS offsetting declines in EES• Currency and copper, combined, negatively impacted sales by $52M or 2.9%• Sequentially, sales decreased (1.1)% on a reported basis and decreased (0.6)% on an organic basis,
excluding $9.1 million of foreign currency• Sales accelerated as the quarter progressed
1. Sales Overview
Total Sales Up 31% driven by Power SolutionsOrganic Sales Flat
5© 2016 Anixter Inc.
1. Sales Overview
Segment Sales Mix
1Q 2016 Sales of $1.82 Billion
NSS - NA
NSS - EMEA
NSS - EM
EES - NA
EES - EMEA
EES - EM
UPS - NA
% of total sales Organic growthNA: 83% 0.8%EMEA: 8% (5.9)%EM: 9% (1.4)%
6© 2016 Anixter Inc.
2. NSS Overview
Network & Security Solutions
• NSS sales of $949.1 million, up 4.1% on an organic basis, driven by strength in North America and Emerging Marketsgeographies
• Sequential sales declined (3.3)% on a reported basis and declined (1.9)% on an organic basis, excluding $13.6 millionof foreign currency, consistent with typical seasonality
• NSS security sales of $384.2 million increased 3% on an organic basis, excluding $6.9 million of foreign currency• Organic growth by geography:
◦ NA up 4.0%◦ EMEA declined (0.4)%◦ EM up 7.6%
NSS Organic Sales Trend
YO
YO
rgan
icG
row
th
1Q15 2Q15 3Q15 4Q15 1Q16
2.7%
5.2%
4.0% 3.8%4.1%
1Q16 Organic Sales Increased 4.1%
$M
illio
ns
1Q15 Currency OrganicGrowth
1Q16
$928
$(17)
$38 $949
7© 2016 Anixter Inc.
2. NSS Overview
NSS Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA margin
NSS Adjusted EBITDA Trend
100
75
50
25
0
$M
illio
ns
Mar
gin
%
1Q15 2Q15 3Q15 4Q15 1Q16
$61$76 $79 $76
$64
6.5%
7.5% 7.6% 7.7%
6.7%
• NSS adjusted EBITDA margin increase versus prior year driven by strong salesgrowth and effective expense control combined with Tri-Ed synergy benefits
8© 2016 Anixter Inc.
• EES sales of $506 million, up 14.8%, driven by Power Solutions acquisition• Excluding the favorable impact of the acquisition and the unfavorable impacts of copper and currency, organic sales
declined by 7.1%, reflecting current weak trends with industrial customers and relatively flat performance with OEMcustomers
• Organic growth by geography:◦ NA down (4.7)% ◦ EMEA down (12.5)% ◦ EM down (19.5)%
3. EES Overview
Electrical & Electronic Solutions
1Q16 Sales Increased 14.8%Organic Sales Decreased (7.1)%
$M
illio
ns
1Q15 Acquisition 1Q15PF
Currency Copper OrganicGrowth
1Q16
$441
$136 $577
$(10)$(20)
$(41)
$506
EES Adjusted EBITDA Trend
$M
illio
ns
PF
AdjM
argi
n%
1Q15 2Q15 3Q15 4Q15 1Q16
$38 $38 $34$25 $25
7.1% 7.3% 6.9%
4.9% 5.0%
• The decline in YOY adjusted EBITDA margin was primarily due to lower pricing and weakness in the industrial sector
9© 2016 Anixter Inc.
• UPS segment includes the High Voltage portion of sales from the Power Solutions acquisition• Sales of $361.1 million increased 1.1% on a pro forma organic basis, negatively impacted by slower
sales growth in Canada and weakness in oil and gas related markets• UPS adjusted EBITDA of $20 million, or 5.6% of sales, declined by 30 basis points from both prior
year and the previous quarter
4. UPS Overview
Utility Power Solutions
1Q16 Organic Sales Increased 1.1%
$M
illio
ns
1Q15PF
Currency Copper OrganicGrowth
1Q16
$363
$(5) $0
$3 $361
UPS Adjusted EBITDA Trend
$M
illio
ns
PF
AdjM
argi
n%
1Q15 2Q15 3Q15 4Q15 1Q16
$22 $22 $25$21 $20
5.9%5.5%
6.0% 5.9% 5.6%
10© 2016 Anixter Inc.
5. Financial Performance Trends
Gross Margin
• Gross profit dollar increase versus prior year driven by Power Solutions acquisition• Sequentially, margin improvement of 20 bps reflects margin improvement in NSS and EES segments
$M
illio
ns
PF
Gro
ssM
argi
n%
1Q15 2Q15 3Q15 4Q15 1Q16
$309$329 $331
$371 $371
20.5%
20.2%20.3%
20.2%
20.4%
11© 2016 Anixter Inc.
5. Financial Performance Trends
Adjusted Operating Expense
• Adjusted operating expense increase versus prior year driven by Power Solutions acquisition• Sequentially, adjusted operating expense increase driven by normalization of incentive compensation
$M
illio
ns
PF
AdjO
pex
as%
ofS
ales
1Q15 2Q15 3Q15 4Q15 1Q16
$245 $245 $240
$280
$299
16.1%
15.1%14.7%
15.2%
16.4%
12© 2016 Anixter Inc.
5. Financial Performance Trends
Adjusted EBITDA
• The decline in adjusted EBITDA margin versus prior year reflects the combined impact of loweraverage copper prices and currency fluctuations and the slowdown in sales growth caused byweakness in industrial markets
• Sequentially, the decline in adjusted EBITDA margin reflects the negative impacts of lower copperprices, currency fluctuations and the weakness in industrial markets
$M
illio
ns
PF
AdjM
argi
n%
1Q15 2Q15 3Q15 4Q15 1Q16
$73
$93$100 $102
$83
4.9%
5.7%6.1%
5.5%
4.6%
13© 2016 Anixter Inc.
5. Financial Performance Trends
Counter-Cyclical Free Cash Flow ProvidesFinancial Flexibility
Free Cash Flow Sales Growth
$M
illio
ns
45%
30%
15%
0%
-15%
-30%
YO
YS
ales
Gro
wth
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q12016
$267
$149
$98
$43
-$15
-$65
$102 $93
$419
$176
$119 $109
$302
$64 $63 $58
Generate Strong Free Cash Flow Throughout the Economic Cycle
14© 2016 Anixter Inc.
Debt / Adjusted EBITDA
4x
3x
2x
1x2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 1Q16*
2.3
3.9 4.0
2.62.9
2.2 2.02.3
3.4
2.8
2.02.4
2.1
2.9
3.8 3.7
6. Leverage Metrics
Near Term Cash Flow Allocation Priority isto Return to Target Debt Levels
Debt-to-Capital
60%
50%
40%
30%2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16
41% 41% 41%
35%
47% 46% 46%51%
45% 47% 45%50%
45%
52%
58% 56%
*2015 and 1Q16 periods include 12 months of Power Solutions earnings on a pro forma basis
Target range:2.5 - 3.0x
Target range:45 - 50%
15© 2016 Anixter Inc.
Continuing Operations
$ millions
GAAP NON-GAAP*
1Q 16 1Q 15YOY Change
Favorable(Unfavorable)
1Q 16 1Q 15YOY Change
Favorable(Unfavorable)
Net Sales $1,816.2 $1,385.1 31.1% $1,816.2 $1,385.1 31.1%
Gross Profit $370.8 $309.3 19.9% $370.8 $309.3 19.9%
Gross Margin % 20.4% 22.3% (190) bps 20.4% 22.3% (190) bps
Operating Expense $310.5 $250.0 (24.2)% $298.6 $244.9 (21.9)%
Operating Expense % 17.1% 18.0% 90 bps 16.4% 17.7% 130 bps
Operating Income $60.3 $59.3 1.6% $72.2 $64.4 12.1%
Operating Margin % 3.3% 4.3% (100) bps 4.0% 4.6% (60) bps
EBITDA $74.2 $65.5 13.3% $83.3 $72.8 14.4%
EBITDA Margin % 4.1% 4.7% (60) bps 4.6% 5.3% (70) bps
7. Financial Details
Income Statement Overview
*See Appendix for definitions and Non-GAAP reconciliations
16© 2016 Anixter Inc.
7. Financial Details
Income Statement Overview
Continuing Operations
$ millions except EPS
GAAP NON-GAAP*
1Q 16 1Q 15YOY Change
Favorable(Unfavorable)
1Q 16 1Q 15YOY Change
Favorable(Unfavorable)
Operating Income $60.3 $59.3 1.6% $72.2 $64.4 12.1%
Operating Margin % 3.3% 4.3% (100) bps 4.0% 4.6% (60) bps
Interest Expense $20.1 $14.2 $(5.9) $20.1 $14.2 $(5.9)
Foreign Exchange andOther $2.8 $4.0 $1.2 $2.8 $3.3 $0.5
Income Before Taxes $37.4 $41.1 $(3.7) $49.3 $46.9 $2.4
Income Tax Expense $14.2 $14.6 $0.4 $18.7 $16.7 $(2.0)
Effective Tax Rate 37.9% 35.6% (230) bps 37.9% 35.6% (230) bps
Net Income $23.2 $26.5 (12.3)% $30.6 $30.2 1.3%
Diluted EPS $0.70 $0.79 (11.4)% $0.92 $0.90 2.2%
Diluted Average Shares(000's) 33.4 33.4 — 33.4 33.4 —
*See Appendix for definitions and Non-GAAP reconciliations
17© 2016 Anixter Inc.
7. Financial Details
Adjusted Diluted EPS Bridge: 1Q 15 to 1Q 16
Q1 2015 Adjusted Diluted EPS $0.90
Power Solutions acquisition (excludes amortization of intangible assets) 0.13
Copper impact (0.08)
Currency impact (0.01)
Impact of change in effective tax rate (0.03)
Core operations 0.01
Q1 2016 Adjusted Diluted EPS $0.92
18© 2016 Anixter Inc.
7. Financial Details
Diluted EPS Bridge: GAAP to Core
Q1 2016 GAAP Diluted EPS $0.70
$2.2M acquisition and integration-related expense 0.04
$9.7M intangible amortization expense 0.18
Q1 2016 Adjusted Diluted EPS $0.92
Currency impact 0.01
Copper impact 0.08
Q1 2016 Core Diluted EPS $1.01
19© 2016 Anixter Inc.
7. Financial Details
Impact of Currency, Copper and M&A on 1Q 2016 Sales
$ millions 1Q 16
Prior Outlook Actual
Organic sales growth (3.0) - 1.0% 0%
Foreign exchange* $(20 - 25) $(31.7)
Copper** $(20 - 25) $(20.4)
Power Solutions acquisition ~$460 $494.3
*1Q 16 foreign exchange outlook based on rates as of December 31, 2015**1Q 16 copper outlook based on average copper price of approximately $2.00
20© 2016 Anixter Inc.
8. Outlook
Sales Trends by Business and Geography
North America EMEA Emerging Markets
NSS é è è
EES è è ê
UPS è
Business Trend 2Q 2016 versus 1Q 2016
é Trend is likely to improve
è Trend is stable
ê Trend is likely to decline
21© 2016 Anixter Inc.
8. Outlook
Estimated Sales Impacts of Currency, Copper and M&A
$ millions 2Q 16 Outlook Full Year 2016 Outlook
Organic sales growth (2.0) - 2.0% (2.0) - 2.0%
Foreign exchange* $(15 - 20) $(50 - 60)
Copper** $(20 - 25) $(45 - 55)
Power Solutions acquisition*** $505 - $515 $1,450 - $1,500
*Foreign exchange outlook based on rates as of March 31, 2016 **Copper outlook based on average copper price of approximately $2.25***Power Solutions acquisition will impact Q1 - Q3 of 2016
22© 2016 Anixter Inc.
Appendix
23© 2016 Anixter Inc.
Glossary
B billionsM millionsBps basis pointsPF pro formaECS Enterprise Cabling & Security SolutionsW&C Electrical and Electronic Wire & Cable PS Power SolutionsNSS Network & Security SolutionsEES Electrical & Electronic SolutionsUPS Utility Power SolutionsETR Effective tax rateOpex total operating expenseEMEAEurope, middle east and AfricaCALA Central and Latin AmericaAPAC Asia Pacific, Australia and ChinaOEM original equipment manufacturerIOU investor owned utilityMRO maintenance, repair and operationsYoY Year-over-yearNA North AmericaEM Emerging marketsUSD US dollarOGP Oil, gas and petrochemical
24© 2016 Anixter Inc.
Anixter International Inc
EBITDA and Adjusted EBITDA ReconciliationContinuing Operations
$ millionsEBITDA and Adjusted EBITDA
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
Net income $26.5 $29.5 $35.4 $5.5 $23.2Interest expense 14.2 12.7 15.8 21.1 20.1Income taxes 14.6 18.8 21.5 31.1 14.2Depreciation 5.1 5.3 5.2 6.6 7.0Amortization of intangible assets 5.1 5.2 5.0 9.6 9.7EBITDA $65.5 $71.5 $82.9 $73.9 $74.2
EBITDA as a % of sales 4.7% 4.8% 5.6% 4.0% 4.1%
EBITDA $65.5 $71.5 $82.9 $73.9 $74.2Foreign exchange and other non-operating expense 4.0 3.5 5.5 8.1 2.8Stock-based compensation 3.3 3.6 3.3 3.7 4.1Restructuring charge — 5.3 — 2.9 —Write-off of capitalized software — 3.1 — — —Latin America assets write-offs — 2.6 — 9.1 —Dilapidation provision — 1.7 — — —Acquisition and integration costs — 1.0 8.1 4.1 2.2Pension divestiture costs — 0.4 — — —Adjusted EBITDA $72.8 $92.7 $99.8 $101.8 $83.3Adjusted EBITDA as a % of sales 5.3% 6.3% 6.7% 5.5% 4.6%
25© 2016 Anixter Inc.
Network & Security Solutions
EBITDA and Adjusted EBITDA Reconciliation
Continuing Operations
$ millionsEBITDA and Adjusted EBITDA
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
Net income $55.7 $66.6 $74.1 $61.8 $58.8Interest expense — — — — —Income taxes — — — — —Depreciation 0.9 0.9 0.9 0.9 0.9Amortization of intangible assets 3.7 3.7 3.7 3.6 3.6EBITDA $60.3 $71.2 $78.7 $66.3 $63.3
EBITDA as a % of sales 6.5% 7.0% 7.5% 6.8% 6.7%
EBITDA $60.3 $71.2 $78.7 $66.3 $63.3Stock-based compensation 0.4 0.6 0.4 0.5 0.5Restructuring charge — 1.8 — 0.6 —Latin America assets write-offs — 2.6 — 8.1 —Adjusted EBITDA $60.7 $76.2 $79.1 $75.5 $63.8Adjusted EBITDA as a % of sales 6.5% 7.5% 7.6% 7.7% 6.7%
26© 2016 Anixter Inc.
Electronic and Electrical Solutions
EBITDA and Adjusted EBITDA Reconciliation
Continuing Operations
$ millionsEBITDA and Adjusted EBITDA
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
Net income $35.8 $33.6 $32.5 $19.2 $22.5Interest expense — — — — —Income taxes — — — — —Depreciation 0.2 0.3 0.2 0.7 0.5Amortization of intangible assets 1.4 1.5 1.3 2.1 2.2EBITDA $37.4 $35.4 $34.0 $22.0 $25.2
EBITDA as a % of sales 8.5% 7.9% 8.0% 4.4% 5.0%
EBITDA $37.4 $35.4 $34.0 $22.0 $25.2Stock-based compensation 0.3 0.4 0.3 0.3 0.2Restructuring charge — 1.8 — 1.4 —Latin America assets write-offs — — — 1.0 —Adjusted EBITDA $37.7 $37.6 $34.3 $24.7 $25.4Adjusted EBITDA as a % of sales 8.6% 8.3% 8.1% 4.9% 5.0%
27© 2016 Anixter Inc.
Utility Power Solutions
EBITDA and Adjusted EBITDA Reconciliation
Continuing Operations
$ millionsEBITDA and Adjusted EBITDA
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
Net income $2.0 $2.4 $2.7 $15.3 $14.3Interest expense — — — — —Income taxes — — — — —Depreciation — — — 1.2 1.4Amortization of intangible assets — — — 3.9 3.9EBITDA $2.0 $2.4 $2.7 $20.4 $19.6
EBITDA as a % of sales 12.1% 12.8% 14.5% 5.8% 5.4%
EBITDA $2.0 $2.4 $2.7 $20.4 $19.6Stock-based compensation — — — 0.1 0.2Restructuring charge — — — 0.1 —Acquisition and integration costs — — — 0.2 0.3Adjusted EBITDA $2.0 $2.4 $2.7 $20.8 $20.1Adjusted EBITDA as a % of sales 12.1% 12.8% 14.5% 5.9% 5.6%
28© 2016 Anixter Inc.
(In millions, except per share amounts)
Positive (Negative) ImpactThree Months Ended
April 1, 2016 April 3, 2015Continuing operationsItems impacting comparability of results:Items impacting operating income:
Acquisition and integration costs $ (2.2) $ —Intangible amortization (9.7) (5.1)Total of items impacting operating income $ (11.9) $ (5.1)
Items impacting other expenses:Foreign exchange loss from the devaluation of foreign currencies $ — $ (0.7)Total of items impacting other expenses $ — $ (0.7)
Total of items impacting pre-tax income $ (11.9) $ (5.8)Items impacting income taxes:
Tax impact of items impacting pre-tax income above $ 4.5 $ 2.1Total of items impacting income taxes $ 4.5 $ 2.1
Net income impact of these items $ (7.4) $ (3.7)Diluted EPS impact of these items $ (0.22) $ (0.11)
GAAP to Non-GAAP Net Income and EPS Reconciliation for continuing operations:Net income from continuing operations – Non-GAAP $ 30.6 $ 30.2Items impacting net income from continuing operations (7.4) (3.7)Net income from continuing operations – GAAP $ 23.2 $ 26.5
Diluted EPS – Non-GAAP $ 0.92 $ 0.90Diluted EPS impact of these items (0.22) (0.11)Diluted EPS – GAAP $ 0.70 $ 0.79
ITEMS IMPACTING COMPARABILITY
29© 2016 Anixter Inc.
Anixter International Inc
Adjusted Operating Expense Reconciliation
$ millionsAdjusted Operating Expense Margin
1Q 15 2Q 15 3Q 15 4Q 15
Operating expense (as reported) $250.0 $264.4 $252.7 $305.6
Items impacting comparability (5.1) (19.3) (13.1) (25.7)
Adjusted operating expense $244.9 $245.1 $239.6 $279.9
Adjusted operating expense as a % of sales 17.7% 16.6% 16.1% 15.2%
Power Solutions $60.6 $61.4 $68.5 $—
Power Solutions items impacting comparability (amortization ofintangible assets and acquisition and integration costs) (4.4) (4.4) (10.4) —
Pro forma adjusted operating expense $301.1 $302.1 $297.7 $279.9
Pro forma adjusted operating expense as a % of sales 16.1% 15.1% 14.7% 15.2%
Anixter International Inc.
Revised Quarter and Year to Date Financial Information
Q1 to Q4 2015 and FY 2014
As more fully described below, for comparison purposes, the Company is furnishing the following revised segment information as a result of the reorganization of its reportable segments
to include a Corporate segment as well as various strategic transactions we’ve completed recently.
In the third quarter of 2014, Anixter International Inc. (sometimes referred to herein as "we", "our" and the "Company"), through its wholly-owned operating subsidiary, Anixter Inc.,
acquired all of the outstanding shares of Tri-Northern Acquisition Holdings, Inc. ("Tri-Ed"). During the second quarter of 2015, we closed the sale of our OEM Supply - Fasteners ("Fasteners")
business and in the fourth quarter of 2015, we completed the acquisition of the HD Supply Power Solutions business ("Power Solutions"). Beginning in the fourth quarter of 2012 and through the
first quarter of 2015, the Company's reporting units were consistent with its operating segments of Enterprise Cabling & Security Solutions ("ECS"), Electrical and Electronic Wire & Cable
("W&C"), and Fasteners. When we closed the sale of the Fasteners business in the second quarter of 2015, our remaining operating segments were ECS and W&C and our Fasteners business was
reported as discontinued operations.
In the fourth quarter of 2015, in connection with the acquisition of Power Solutions, our historical ECS segment was renamed Network & Security Solutions ("NSS"). The low voltage
business of Power Solutions was combined with our historical W&C segment and renamed Electrical & Electronic Solutions ("EES"). The high voltage business of Power Solutions forms the
Utility Power Solutions ("UPS") segment.
The categorization of net sales by end market is determined using a variety of data points including the technical characteristic of the product, the "sold to" customer information, the "ship
to" customer information and the end customer product or application into which our product will be incorporated. We also have largely specialized our sales organization by segment. As data
systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs, we reclassify net sales by end market for prior
periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.
We also incur public company and corporate expenses to obtain and coordinate financing, tax, information technology, legal and other related services. These corporate expenses have
historically been allocated to the segments based primarily on projected sales and estimated use of time. In the first quarter of 2016, we reorganized our reportable segments to include a Corporate
segment. As a result, corporate costs will no longer be allocated to the segments.
This information has been prepared to give effect to the new segment structure, the acquisitions of Tri-Ed and Power Solutions, and our divestiture of the Fasteners business as well as the
reclassification of net sales of various product categories between segments as described above. The unaudited revised pro forma selected financial information is based upon the historical
financial statements of the Company, Tri-Ed and Power Solutions. We have also revised prior periods so that the historical results are comparable to our results from continuing operations as a
result of the sale of our Fastener business and the reorganization of our segments.
3030
Non-GAAP Financial Measures
In addition to reported results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), this information includes certain financial measures computed using non-
GAAP components as defined by the Securities and Exchange Commission. We believe that by reporting this information both management and investors are provided with meaningful
information to understand and analyze our underlying operational trends and other aspects of our financial performance related to our continuing operations. 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, etc.) 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
operational trends of our business. As a result of the acquisitions of Tri-Ed and Power Solutions, beginning in the first quarter of 2016, we plan to begin excluding amortization of intangible asset
charges associated with purchase accounting from acquisitions from our reported financial results.
EBITDA is defined as net income from continuing operations 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 of the type described in the preceding paragraph, from reported financial results.
EBITDA and Adjusted EBITDA are presented because we believe they are useful indicators of our performance and our ability to meet debt service requirements. They are not, however, intended
as an alternative measure of operating results or cash flow from operations as determined in accordance with generally accepted accounting principles.
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 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 our
Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our filings with the Securities and Exchange
Commission. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.
31
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited)
Adjusted Earnings Per Share(In millions, except per share amounts)
April 3, July 3, October 2, January 1, January 1, January 2,
2015 2015 2015 2016 2016 2015
Continuing operations
Items impacting comparability of results:
Items impacting operating income:
Restructuring charge -$ (5.3)$ -$ (2.9)$ (8.2)$ -$
Amortization of intangible assets (5.1) (5.2) (5.0) (9.6) (24.9) (10.6)
Write-off of capitalized software - (3.1) - - (3.1) -
Latin America assets write-offs - (2.6) - (9.1) (11.7) -
Dilapidation provision - (1.7) - - (1.7) -
Acquisition and integration costs - (1.0) (8.1) (4.1) (13.2) (7.2)
Pension divestiture costs - (0.4) - - (0.4) -
Total of items impacting operating income (5.1)$ (19.3)$ (13.1)$ (25.7)$ (63.2)$ (17.8)$
Items impacting interest expense:
Write-off of debt Issuance costs - - - (0.3) (0.3) -
Total of items impacting interest expense -$ -$ -$ (0.3)$ (0.3)$ -$
Items impacting other expenses:
Foreign exchange loss from the devaluation of foreign currencies (0.7) - - (2.9) (3.6) (8.0)
Extinguishment of debt - - - (0.9) (0.9) -
Acquisition financing costs - - - - - (0.3)
Total of items impacting other expenses (0.7)$ -$ -$ (3.8)$ (4.5)$ (8.3)$
Total of items impacting pre-tax income (5.8)$ (19.3)$ (13.1)$ (29.8)$ (68.0)$ (26.1)$
Items impacting income taxes:
Tax impact of items impacting pre-tax income above 2.1 7.2 4.9 12.1 26.3 8.2 (Establishment)/reversal of deferred income tax valuation allowances - - - (11.3) (11.3) 6.9 Tax benefits related to closing prior tax years - - - - - 1.9
Other tax items - - - (0.5) (0.5) -
Total of items impacting income taxes 2.1$ 7.2$ 4.9$ 0.3$ 14.5$ 17.0$ Net loss impact of these items (3.7)$ (12.1)$ (8.2)$ (29.5)$ (53.5)$ (9.1)$
Diluted EPS impact of these items (0.11)$ (0.36)$ (0.24)$ (0.88)$ (1.56)$ (0.27)$
GAAP to Non-GAAP Net Income and EPS Reconciliation:
Reconciliation to most directly comparable GAAP financial measure:
Continuing operations:
Net income from continuing operations– Non-GAAP 30.2$ 41.6$ 43.6$ 35.0$ 150.4$ 172.5$
Items impacting net income from continuing operations (3.7) (12.1) (8.2) (29.5) (53.5) (9.1) Net income from continuing operations– GAAP 26.5$ 29.5$ 35.4$ 5.5$ 96.9$ 163.4$
Diluted EPS – Non-GAAP 0.90$ 1.24$ 1.30$ 1.05$ 4.46$ 5.17$
Diluted EPS impact of these items (0.11) (0.36) (0.24) (0.88) (1.56) (0.27) Diluted EPS – GAAP 0.79$ 0.88$ 1.06$ 0.17$ 2.90$ 4.90$
Twelve Months EndedThree Months Ended
Positive (Negative) impact
32
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited) - continued
Items impacting comparability of operating income by segment(In millions)
Three Months Ended April 3, 2015
NSS EES UPS Corporate Total
Adjusted operating income - Non-GAAP 59.4$ 37.2$ 2.0$ (34.2)$ 64.4$
Adjusted operating margin - Non-GAAP 6.4% 8.4% 12.3% nm 4.6%
Amortization of intangible assets (3.7) (1.4) - - (5.1) Total of items impacting operating income for the three months
ended April 3, 2015 (3.7)$ (1.4)$ -$ -$ (5.1)$
Operating income - GAAP 55.7$ 35.8$ 2.0$ (34.2)$ 59.3$
Operating margin - GAAP 6.0% 8.1% 12.3% nm 4.3%
Three Months Ended July 3, 2015
NSS EES UPS Corporate Total
Adjusted operating income - Non-GAAP 74.7$ 36.9$ 2.4$ (30.2)$ 83.8$
Adjusted operating margin - Non-GAAP 7.4% 8.2% 12.5% nm 5.7%
Amortization of intangible assets (3.7) (1.5) - - (5.2)
Restructuring charge (1.8) (1.8) - (1.7) (5.3)
Write-off of capitalized software - - - (3.1) (3.1)
Latin America assets write-offs (2.6) - - - (2.6)
Dilapidation provision - - - (1.7) (1.7)
Acquisition and integration costs - - - (1.0) (1.0)
Pension divestiture costs - - - (0.4) (0.4) Total of items impacting operating income for the three months
ended July 3, 2015 (8.1)$ (3.3)$ -$ (7.9)$ (19.3)$
Operating income - GAAP 66.6$ 33.6$ 2.4$ (38.1)$ 64.5$ Operating income - GAAP 66.6$ 33.6$ 2.4$ (38.1)$ 64.5$
Operating margin - GAAP 6.6% 7.5% 12.5% nm 4.4%
33
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited) - continued
Items impacting comparability of operating income by segment(In millions)
Three Months Ended October 2, 2015
NSS EES UPS Corporate Total
Adjusted operating income - Non-GAAP 77.8$ 33.8$ 2.7$ (23.0)$ 91.3$
Adjusted operating margin - Non-GAAP 7.4% 8.0% 14.4% nm 6.1%
Amortization of intangible assets (3.7) (1.3) - - (5.0)
Acquisition and integration costs - - - (8.1) (8.1) Total of items impacting operating income for the three months
ended October 2, 2015 (3.7)$ (1.3)$ -$ (8.1)$ (13.1)$
Operating income - GAAP 74.1$ 32.5$ 2.7$ (31.1)$ 78.2$
Operating margin - GAAP 7.1% 7.7% 14.4% nm 5.3%Operating margin - GAAP 7.1% 7.7% 14.4% nm 5.3%
Three Months Ended January 1, 2016
NSS EES UPS Corporate Total
Adjusted operating income - Non-GAAP 74.1$ 23.7$ 19.5$ (25.8)$ 91.5$
Adjusted operating margin - Non-GAAP 7.5% 4.7% 5.5% nm 5.0%
Amortization of intangible assets (3.6) (2.1) (3.9) - (9.6)
Restructuring charge (0.6) (1.4) (0.1) (0.8) (2.9)
Latin America assets write-offs (8.1) (1.0) - - (9.1)
Acquisition and integration costs - - (0.2) (3.9) (4.1) Total of items impacting operating income for the three months
ended January 1, 2016 (12.3)$ (4.5)$ (4.2)$ (4.7)$ (25.7)$
Operating income - GAAP 61.8$ 19.2$ 15.3$ (30.5)$ 65.8$
Operating margin - GAAP 6.3% 3.8% 4.4% nm 3.6%
34
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited) - continued
Items impacting comparability of operating income by segment(In millions)
Twelve Months Ended January 1, 2016
NSS EES UPS Corporate Total
Adjusted operating income - Non-GAAP 286.0$ 131.6$ 26.6$ (113.2)$ 331.0$
Adjusted operating margin - Non-GAAP 7.2% 7.2% 6.6% nm 5.3%
Amortization of intangible assets (14.7) (6.3) (3.9) - (24.9)
Restructuring charge (2.4) (3.2) (0.1) (2.5) (8.2)
Write-off of capitalized software - - - (3.1) (3.1)
Latin America assets write-offs (10.7) (1.0) - - (11.7)
Dilapidation provision - - - (1.7) (1.7)
Acquisition and integration costs - - (0.2) (13.0) (13.2)
Pension divestiture costs - - - (0.4) (0.4) Total of items impacting operating income for the twelve months
ended January 1, 2016 (27.8)$ (10.5)$ (4.2)$ (20.7)$ (63.2)$ ended January 1, 2016 (27.8)$ (10.5)$ (4.2)$ (20.7)$ (63.2)$
Operating income - GAAP 258.2$ 121.1$ 22.4$ (133.9)$ 267.8$
Operating margin - GAAP 6.5% 6.7% 5.5% nm 4.3%
Twelve Months Ended January 2, 2015
NSS EES UPS Corporate Total
Adjusted operating income - Non-GAAP 273.0$ 168.4$ 10.9$ (124.4)$ 327.9$
Adjusted operating margin - Non-GAAP 7.7% 8.8% 15.6% nm 6.0%
Amortization of intangible assets (4.9) (5.7) - - (10.6)
Acquisition and strategic project costs (7.0) (0.2) - - (7.2) Total of items impacting operating income for the twelve months
ended January 2, 2015 (11.9)$ (5.9)$ -$ -$ (17.8)$
Operating income - GAAP 261.1$ 162.5$ 10.9$ (124.4)$ 310.1$ Operating margin - GAAP 7.4% 8.5% 15.6% nm 5.6%
35
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited) - continued
Adjusted Effective Tax Rate(In millions)
April 3, July 3, October 2 January 1, January 1, January 2,
2015 2015 2015 2016 2016 2015
Income from continuing operations before taxes – GAAP 41.1$ 48.3$ 56.9$ 36.6$ 182.9$ 249.6$
Income tax expense – GAAP 14.6$ 18.8$ 21.5$ 31.1$ 86.0$ 86.2$
Effective income tax rate 35.6% 38.8% 37.8% 84.9% 47.0% 34.5%
Total of items impacting pre-tax income above $ (5.8) $ (19.3) $ (13.1) $ (29.8) $ (68.0) $ (26.1)
Total of items impacting income taxes above $ 2.1 $ 7.2 $ 4.9 $ 0.3 $ 14.5 $ 17.0
Income from continuing operations before income taxes – Non-GAAP 46.9$ 67.6$ 70.0$ 66.4$ 250.9$ 275.7$
Income tax expense – Non-GAAP $ 16.7 $ 26.0 $ 26.4 $ 31.4 $ 100.5 $ 103.2
Adjusted effective income tax rate 35.6% 38.5% 37.7% 47.3% 40.1% 37.4%
Three Months Ended Twelve Months Ended
36
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited) - continued
2015 EBITDA by Segment:(In millions)
NSS EES UPS Corporate Total
Net income from continuing operations 55.7$ 35.8$ 2.0$ (67.0)$ 26.5$ Interest expense - - - 14.2 14.2 Income taxes - - - 14.6 14.6 Depreciation 0.9 0.2 - 4.0 5.1 Amortization of intangible assets 3.7 1.4 - - 5.1 EBITDA 60.3$ 37.4$ 2.0$ (34.2)$ 65.5$
EBITDA as a % of sales 6.5% 8.5% 12.1% nm 4.7%
Foreign exchange and other non-operating expense -$ -$ -$ 4.0$ 4.0$ Stock-based compensation 0.4 0.3 - 2.6 3.3 Adjusted EBITDA 60.7$ 37.7$ 2.0$ (27.6)$ 72.8$
Adjusted EBITDA as a % of sales 6.5% 8.6% 12.1% nm 5.3%
Three Months Ended April 3, 2015
NSS EES UPS Corporate Total
Net income from continuing operations 66.6$ 33.6$ 2.4$ (73.1)$ 29.5$ Interest expense - - - 12.7 12.7 Income taxes - - - 18.8 18.8 Depreciation 0.9 0.3 - 4.1 5.3 Amortization of intangible assets 3.7 1.5 - - 5.2 EBITDA 71.2$ 35.4$ 2.4$ (37.5)$ 71.5$
EBITDA as a % of sales 7.0% 7.9% 12.8% nm 4.8%
Foreign exchange and other non-operating expense -$ -$ -$ 3.5$ 3.5$ Stock-based compensation 0.6 0.4 - 2.6 3.6 Restructuring charge 1.8 1.8 - 1.7 5.3 Write-off of capitalized software - - - 3.1 3.1 Latin America assets write-offs 2.6 - - - 2.6 Dilapidation provision - - - 1.7 1.7 Acquisition and integration costs - - - 1.0 1.0 Pension divestiture costs - - - 0.4 0.4 Adjusted EBITDA 76.2$ 37.6$ 2.4$ (23.5)$ 92.7$
Adjusted EBITDA as a % of sales 7.5% 8.3% 12.8% nm 6.3%
Three Months Ended July 3, 2015
nm - not meaningful
37
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited) - continued
2015 EBITDA by Segment:(In millions)
NSS EES UPS Corporate Total
Net income from continuing operations 74.1$ 32.5$ 2.7$ (73.9)$ 35.4$ Interest expense - - - 15.8 15.8 Income taxes - - - 21.5 21.5 Depreciation 0.9 0.2 - 4.1 5.2 Amortization of intangible assets 3.7 1.3 - - 5.0 EBITDA 78.7$ 34.0$ 2.7$ (32.5)$ 82.9$
EBITDA as a % of sales 7.5% 8.0% 14.5% nm 5.6%
Foreign exchange and other non-operating expense -$ -$ -$ 5.5$ 5.5$ Stock-based compensation 0.4 0.3 - 2.6 3.3 Acquisition and integration costs - - - 8.1 8.1 Adjusted EBITDA 79.1$ 34.3$ 2.7$ (16.3)$ 99.8$
Adjusted EBITDA as a % of sales 7.6% 8.1% 14.5% nm 6.7%
Three Months Ended October 2, 2015
NSS EES UPS Corporate Total
Net income from continuing operations 61.8$ 19.2$ 15.3$ (90.8)$ 5.5$
Interest expense - - - 21.1 21.1
Income taxes - - - 31.1 31.1
Depreciation 0.9 0.7 1.2 3.8 6.6
Amortization of intangible assets 3.6 2.1 3.9 - 9.6 EBITDA 66.3$ 22.0$ 20.4$ (34.8)$ 73.9$
EBITDA as a % of sales 6.8% 4.4% 5.8% nm 4.0%
Foreign exchange and other non-operating expense -$ -$ -$ 8.1$ 8.1$
Stock-based compensation 0.5 0.3 0.1 2.8 3.7
Restructuring charge 0.6 1.4 0.1 0.8 2.9
Latin America assets write-offs 8.1 1.0 - - 9.1
Acquisition and integration costs - - 0.2 3.9 4.1 Adjusted EBITDA 75.5$ 24.7$ 20.8$ (19.2)$ 101.8$
Adjusted EBITDA as a % of sales 7.7% 4.9% 5.9% nm 5.5%
nm - not meaningful
Three Months Ended January 1, 2016
nm - not meaningful
38
ANIXTER INTERNATIONAL INC.Financial Measures That Supplement GAAP (Unaudited) - continued
2015 EBITDA by Segment:(In millions)
NSS EES UPS Corporate Total
Net income from continuing operations 258.2$ 121.1$ 22.4$ (304.8)$ 96.9$
Interest expense - - - 63.8 63.8
Income taxes - - - 86.0 86.0
Depreciation 3.6 1.4 1.2 16.0 22.2
Amortization of intangible assets 14.7 6.3 3.9 - 24.9
EBITDA 276.5$ 128.8$ 27.5$ (139.0)$ 293.8$
EBITDA as a % of sales 7.0% 7.1% 6.8% nm 4.7%
Foreign exchange and other non-operating expense -$ -$ -$ 21.1$ 21.1$
Stock-based compensation 1.9 1.3 0.1 10.6 13.9
Restructuring charge 2.4 3.2 0.1 2.5 8.2
Write-off of capitalized software - - - 3.1 3.1
Latin America assets write-offs 10.7 1.0 - - 11.7
Twelve Months Ended January 1, 2016
Latin America assets write-offs 10.7 1.0 - - 11.7
Dilapidation provision - - - 1.7 1.7
Acquisition and integration costs - - 0.2 13.0 13.2
Pension divestiture costs - - - 0.4 0.4
Adjusted EBITDA 291.5$ 134.3$ 27.9$ (86.6)$ 367.1$
Adjusted EBITDA as a % of sales 7.3% 7.4% 6.9% nm 5.9%
2014 EBITDA by Segment:
NSS EES UPS Corporate Total
Net income 261.1$ 162.5$ 10.9$ (271.1)$ 163.4$
Interest expense - - - 44.5 44.5
Income taxes - - - 86.2 86.2
Depreciation 3.0 1.2 - 15.8 20.0
Amortization of intangible assets 4.9 5.7 - - 10.6
EBITDA 269.0$ 169.4$ 10.9$ (124.6)$ 324.7$
EBITDA as a % of sales 7.6% 8.9% 15.6% nm 5.9%
Foreign exchange and other non-operating expense -$ -$ -$ 16.0$ 16.0$
Stock-based compensation 1.7 1.3 - 9.6 12.6
Twelve Months Ended January 2, 2015
Stock-based compensation 1.7 1.3 - 9.6 12.6
Acquisition and strategic project costs 7.0 0.2 - - 7.2
Adjusted EBITDA 277.7$ 170.9$ 10.9$ (99.0)$ 360.5$
Adjusted EBITDA as a % of sales 7.9% 8.9% 15.6% nm 6.5%
nm-not meaningful
39
Pro Forma 2015 and 2014 Results Restated for Corporate Segment and Reclassification of Product Sales
We furnished unaudited pro forma selected financial information as described in the Current Report filed on Form 8-K, dated January 20, 2016. This information was prepared to give
effect to the acquisitions of Tri-Ed and Power Solutions and our divestiture of the Fasteners business. The unaudited pro forma selected financial information was based upon the historical
financial statements of the Company, Tri-Ed and Power Solutions. We also revised prior periods so that our historical results were comparable to our results from continuing operations as a result
of the sale of our Fastener business.
We have further revised the previously furnished unaudited pro forma selected financial information for the years ended January 1, 2016 and January 2, 2015 (and their respective
quarterly periods) to give effect to the new Corporate segment structure as well as the reclassification of net sales of various product categories between segments.
40
Q1 2015 - Restated Pro Forma
Reported 1
Corporate
Adjustment
Segment
Reclasses Restated 1
Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Restated
Pro Forma Reported
Power
Solutions Pro Forma
Net sales 915.8$ -$ 12.2$ 928.0$ 469.3$ 136.2$ -$ (28.5)$ 577.0$ -$ 346.4$ -$ 16.3$ 362.7$ -$ -$ -$ -$ 1,385.1$ 482.6$ 1,867.7$
Gross profit 309.3 73.1 382.4
Gross margin % 22.3% 15.1% 20.5%
Operating expense 250.0 60.6 310.6
Operating income 36.3 17.8 1.6 55.7 26.2 0.6 14.2 (3.6) 37.4 - 11.9 2.4 2.0 16.3 (3.2) - (34.4) (37.6) 59.3 12.5 71.8
Interest expense - - - - - - - - - - - - - - (14.2) (7.4) - (21.6) (14.2) (7.4) (21.6)
Other, net - - - - - - - - - - - - - - (4.0) - - (4.0) (4.0) - (4.0)
Income from continuing operations
before income taxes 36.3 17.8 1.6 55.7 26.2 0.6 14.2 (3.6) 37.4 - 11.9 2.4 2.0 16.3 (21.4) (7.4) (34.4) (63.2) 41.1 5.1 46.2
Income taxes - - - - - - - - - - - - - - 14.6 2.0 - 16.6 14.6 2.0 16.6
Net income from continuing operations 36.3$ 17.8$ 1.6$ 55.7$ 26.2$ 0.6$ 14.2$ (3.6)$ 37.4$ -$ 11.9$ 2.4$ 2.0$ 16.3$ (36.0)$ (9.4)$ (34.4)$ (79.8)$ 26.5$ 3.1$ 29.6$
EBITDA 43.4$ 15.3$ 1.6$ 60.3$ 29.3$ 1.9$ 12.7$ (3.6)$ 40.3$ -$ 16.8$ 2.4$ 2.0$ 21.2$ (7.2)$ -$ (30.4)$ (37.6)$ 65.5$ 18.7$ 84.2$
EBITDA margin % 4.7% 6.5% 6.2% 7.0% 5.8% 4.7% 4.5%
Adjusted EBITDA 45.5$ 13.6$ 1.6$ 60.7$ 30.5$ 2.1$ 11.8$ (3.6)$ 40.8$ -$ 17.2$ 2.4$ 2.0$ 21.6$ (3.2)$ -$ (27.8)$ (31.0)$ 72.8$ 19.3$ 92.1$
Adjusted EBITDA margin % 5.0% 6.5% 6.5% 7.1% 5.9% 5.3% 4.9%
Diluted EPS - Non-GAAP 0.90$ 1.00$
Q2 2015 - Restated Pro Forma
Reported 1
Corporate
Adjustment
Segment
Reclasses Restated 1
Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Restated
Pro Forma Reported
Power
Solutions Pro Forma
Net sales 1,001.6$ -$ 10.1$ 1,011.7$ 478.8$ 145.1$ -$ (29.3)$ 594.6$ -$ 381.7$ -$ 19.2$ 400.9$ -$ -$ -$ -$ 1,480.4$ 526.8$ 2,007.2$
Gross profit 328.9 76.8 405.7
Gross margin % 22.2% 14.6% 20.2%
Operating expense 264.4 61.4 325.8
Operating income 42.2 23.0 1.4 66.6 25.0 3.3 13.4 (3.8) 37.9 - 12.1 2.4 2.4 16.9 (2.7) - (38.8) (41.5) 64.5 15.4 79.9
Interest expense - - - - - - - - - - - - - - (12.7) (7.4) - (20.1) (12.7) (7.4) (20.1)
Other, net - - - - - - - - - - - - - - (3.5) - - (3.5) (3.5) - (3.5)
Income from continuing operations
before income taxes 42.2 23.0 1.4 66.6 25.0 3.3 13.4 (3.8) 37.9 - 12.1 2.4 2.4 16.9 (18.9) (7.4) (38.8) (65.1) 48.3 8.0 56.3
Income taxes - - - - - - - - - - - - - - 18.8 3.0 - 21.8 18.8 3.0 21.8
Net income from continuing operations 42.2$ 23.0$ 1.4$ 66.6$ 25.0$ 3.3$ 13.4$ (3.8)$ 37.9$ -$ 12.1$ 2.4$ 2.4$ 16.9$ (37.7)$ (10.4)$ (38.8)$ (86.9)$ 29.5$ 5.0$ 34.5$
EBITDA 49.6$ 20.2$ 1.4$ 71.2$ 28.0$ 4.6$ 12.2$ (3.8)$ 41.0$ -$ 16.8$ 2.4$ 2.4$ 21.6$ (6.1)$ -$ (34.8)$ (40.9)$ 71.5$ 21.4$ 92.9$
EBITDA margin % 5.0% 7.0% 5.8% 6.9% 5.4% 4.8% 4.6%
Adjusted EBITDA 60.6$ 14.1$ 1.5$ 76.2$ 34.2$ 4.8$ 8.3$ (3.9)$ 43.4$ -$ 17.2$ 2.4$ 2.4$ 22.0$ (2.1)$ -$ (24.8)$ (26.9)$ 92.7$ 22.0$ 114.7$
Adjusted EBITDA margin % 6.1% 7.5% 7.1% 7.3% 5.5% 6.3% 5.7%
Diluted EPS - Non-GAAP 1.24$ 1.39$ 1 The Power Solutions acquisition had no impact on the NSS segment. Therefore, no pro forma adjustments are necessary.
Anixter International Inc.
Restated Pro Forma Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2015
NSS
NSS Consolidated
Consolidated
EES UPS Corporate
EES UPS Corporate
41
Anixter International Inc.
Restated Pro Forma Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2015
Q3 2015 - Restated Pro Forma
Reported 1
Corporate
Adjustment
Segment
Reclasses Restated 1
Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Restated
Pro Forma Reported
Power
Solutions Pro Forma
Net sales 1,035.4$ -$ 11.5$ 1,046.9$ 453.8$ 145.1$ -$ (30.2)$ 568.7$ -$ 388.4$ -$ 18.7$ 407.1$ -$ -$ -$ -$ 1,489.2$ 533.5$ 2,022.7$
Gross profit 330.9 79.0 409.9
Gross margin % 22.2% 14.8% 20.3%
Operating expense 252.7 68.5 321.2
Operating income 61.8 10.7 1.6 74.1 28.6 0.7 9.2 (4.3) 34.2 - 9.8 2.4 2.7 14.9 (12.2) - (22.3) (34.5) 78.2 10.5 88.7
Interest expense - - - - - - - - - - - - - - (15.8) (7.3) - (23.1) (15.8) (7.3) (23.1)
Other, net - - - - - - - - - - - - - - (5.5) - - (5.5) (5.5) - (5.5)
Income from continuing operations
before income taxes 61.8 10.7 1.6 74.1 28.6 0.7 9.2 (4.3) 34.2 - 9.8 2.4 2.7 14.9 (33.5) (7.3) (22.3) (63.1) 56.9 3.2 60.1
Income taxes - - - - - - - - - - - - - - 21.5 1.1 - 22.6 21.5 1.1 22.6
Net income from continuing operations 61.8$ 10.7$ 1.6$ 74.1$ 28.6$ 0.7$ 9.2$ (4.3)$ 34.2$ -$ 9.8$ 2.4$ 2.7$ 14.9$ (55.0)$ (8.4)$ (22.3)$ (85.7)$ 35.4$ 2.1$ 37.5$
EBITDA 68.8$ 8.3$ 1.6$ 78.7$ 31.7$ 2.1$ 7.6$ (4.3)$ 37.1$ -$ 14.8$ 2.4$ 2.7$ 19.9$ (17.6)$ -$ (18.3)$ (35.9)$ 82.9$ 16.9$ 99.8$
EBITDA margin % 6.6% 7.5% 7.0% 6.5% 4.9% 5.6% 4.9%
Adjusted EBITDA 71.0$ 6.5$ 1.6$ 79.1$ 31.8$ 3.7$ 7.8$ (4.3)$ 39.0$ -$ 19.4$ 2.4$ 2.7$ 24.5$ (3.0)$ -$ (16.7)$ (19.7)$ 99.8$ 23.1$ 122.9$
Adjusted EBITDA margin % 6.9% 7.6% 7.0% 6.9% 6.0% 6.7% 6.1%
Diluted EPS - Non-GAAP 1.30$ 1.36$
Q4 2015 - Restated Reported
Reported 1
Corporate
Adjustment
Segment
Reclasses Restated 1
Reported
Power
Solutions 2
Corporate
Adjustment
Segment
Reclasses Restated 2
Reported
Power
Solutions 2
Corporate
Adjustment
Segment
Reclasses Restated 2
Reported
Power
Solutions 2
Corporate
Adjustment Restated 2
Reported
Power
Solutions 2
Pro Forma
Net sales 971.6$ -$ 10.0$ 981.6$ 528.3$ -$ -$ (25.7)$ 502.6$ 335.9$ -$ -$ 15.7$ 351.6$ -$ -$ -$ -$ 1,835.8$ -$ 1,835.8$
Gross profit 371.4 - 371.4
Gross margin % 20.2% 20.2%
Operating expense 305.6 - 305.6
Operating income 49.1 11.2 1.5 61.8 12.7 - 10.5 (4.0) 19.2 10.4 - 2.4 2.5 15.3 (6.4) - (24.1) (30.5) 65.8 - 65.8
Interest expense - - - - - - - - - - - - - - (21.1) - - (21.1) (21.1) - (21.1)
Other, net - - - - - - - - - - - - - - (8.1) - - (8.1) (8.1) - (8.1)
Income from continuing operations
before income taxes 49.1 11.2 1.5 61.8 12.7 - 10.5 (4.0) 19.2 10.4 - 2.4 2.5 15.3 (35.6) - (24.1) (59.7) 36.6 - 36.6
Income taxes - - - - - - - - - - - - - - 31.1 - - 31.1 31.1 - 31.1
Net income from continuing operations 49.1$ 11.2$ 1.5$ 61.8$ 12.7$ -$ 10.5$ (4.0)$ 19.2$ 10.4$ -$ 2.4$ 2.5$ 15.3$ (66.7)$ -$ (24.1)$ (90.8)$ 5.5$ -$ 5.5$
EBITDA 56.0$ 8.8$ 1.5$ 66.3$ 16.8$ -$ 9.2$ (4.0)$ 22.0$ 15.4$ -$ 2.5$ 2.5$ 20.4$ (14.3)$ -$ (20.5)$ (34.8)$ 73.9$ -$ 73.9$
EBITDA margin % 5.8% 6.8% 3.2% 4.4% 4.6% 5.8% 4.0% 4.0%
Adjusted EBITDA 67.5$ 6.5$ 1.5$ 75.5$ 20.8$ -$ 7.9$ (4.0)$ 24.7$ 15.8$ -$ 2.5$ 2.5$ 20.8$ (2.3)$ -$ (16.9)$ (19.2)$ 101.8$ -$ 101.8$
Adjusted EBITDA margin % 6.9% 7.7% 3.9% 4.9% 4.7% 5.9% 5.5% 5.5%
Diluted EPS - Non-GAAP 1.05$ 1.05$ 1 The Power Solutions acquisition had no impact on the NSS segment. Therefore, no pro forma adjustments are necessary.
2 As Power Solutions was acquired on October 5, 2015, amounts in Q4 2015 "Reported" includes actual Power Solutions results. Therefore, no pro forma adjustments are necessary.
NSS EES UPS Corporate
EES UPS CorporateNSS Consolidated
Consolidated
42
Anixter International Inc.
Restated Pro Forma Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2015
Fiscal Year 2015 - Restated Pro Forma
Reported 1
Corporate
Adjustment
Segment
Reclasses Restated 1
Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated
Pro Forma Reported
Power
Solutions
Corporate
Adjustment
Restated
Pro Forma Reported
Power
Solutions Pro Forma
Net sales 3,924.4$ -$ 43.8$ 3,968.2$ 1,930.2$ 426.4$ -$ (113.7)$ 2,242.9$ 335.9$ 1,116.5$ -$ 69.9$ 1,522.3$ -$ -$ -$ -$ 6,190.5$ 1,542.9$ 7,733.4$
Gross profit 1,340.5 228.9 1,569.4
Gross margin % 21.7% 14.8% 20.3%
Operating expense 1,072.7 190.5 1,263.2
Operating income 189.4 62.7 6.1 258.2 92.5 4.6 47.3 (15.7) 128.7 10.4 33.8 9.6 9.6 63.4 (24.5) - (119.6) (144.1) 267.8 38.4 306.2
Interest expense - - - - - - - - - - - - - - (63.8) (22.1) - (85.9) (63.8) (22.1) (85.9)
Other, net - - - - - - - - - - - - - - (21.1) - - (21.1) (21.1) - (21.1)
Income from continuing operations
before income taxes 189.4 62.7 6.1 258.2 92.5 4.6 47.3 (15.7) 128.7 10.4 33.8 9.6 9.6 63.4 (109.4) (22.1) (119.6) (251.1) 182.9 16.3 199.2
Income taxes - - - - - - - - - - - - - - 86.0 6.1 - 92.1 86.0 6.1 92.1
Net income from continuing operations 189.4$ 62.7$ 6.1$ 258.2$ 92.5$ 4.6$ 47.3$ (15.7)$ 128.7$ 10.4$ 33.8$ 9.6$ 9.6$ 63.4$ (195.4)$ (28.2)$ (119.6)$ (343.2)$ 96.9$ 10.2$ 107.1$
EBITDA 217.8$ 52.6$ 6.1$ 276.5$ 105.8$ 8.6$ 41.7$ (15.7)$ 140.4$ 15.4$ 48.4$ 9.7$ 9.6$ 83.1$ (45.2)$ -$ (104.0)$ (149.2)$ 293.8$ 57.0$ 350.8$
EBITDA margin % 5.5% 7.0% 5.5% 6.3% 4.6% 5.5% 4.7% 4.5%
Adjusted EBITDA 244.6$ 40.7$ 6.2$ 291.5$ 117.3$ 10.6$ 35.8$ (15.8)$ 147.9$ 15.8$ 53.8$ 9.7$ 9.6$ 88.9$ (10.6)$ -$ (86.2)$ (96.8)$ 367.1$ 64.4$ 431.5$
Adjusted EBITDA margin % 6.2% 7.3% 6.1% 6.6% 4.7% 5.8% 5.9% 5.6%
Diluted EPS - Non-GAAP 4.46$ 4.76$ 1 The Power Solutions acquisition had no impact on the NSS segment. Therefore, no pro forma adjustments were necessary.
ConsolidatedNSS EES UPS Corporate
43
Fiscal Year 2014
Reported Tri-Ed
Corporate
Adjustment
Segment
Reclasses
Restated Pro
Forma Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated Pro
Forma Reported
Power
Solutions
Corporate
Adjustment
Segment
Reclasses
Restated Pro
Forma Reported Tri-Ed
Power
Solutions
Corporate
Adjustment
Restated Pro
Forma Reported Tri-Ed
Power
Solutions Pro Forma
Net sales 3,481.2$ 419.7$ -$ 44.8$ 3,945.7$ 2,025.8$ 547.8$ -$ (114.7)$ 2,458.9$ -$ 1,356.5$ -$ 69.9$ 1,426.4$ -$ -$ -$ -$ -$ 5,507.0$ 419.7$ 1,904.3$ 7,831.0$
Gross profit 1,239.3 81.6 289.5 1,610.4
Gross margin % 22.5% 19.4% 15.2% 20.6%
Operating expense 929.2 62.4 242.5 1,234.1
Operating income 182.8 19.2 73.0 5.3 280.3 139.0 14.7 43.7 (16.2) 181.2 - 32.3 9.5 10.9 52.7 (11.7) - - (126.2) (137.9) 310.1 19.2 47.0 376.3
Interest expense - - - - - - - - - - - - - - - (44.5) (10.1) (30.4) - (85.0) (44.5) (10.1) (30.4) (85.0)
Other, net - - - - - - - - - - - - - - - (16.0) (0.3) 0.4 - (15.9) (16.0) (0.3) 0.4 (15.9)
Income from continuing
operations before
income taxes 182.8 19.2 73.0 5.3 280.3 139.0 14.7 43.7 (16.2) 181.2 - 32.3 9.5 10.9 52.7 (72.2) (10.4) (30.0) (126.2) (238.8) 249.6 8.8 17.0 275.4
Income taxes - - - - - - - - - - - - - - - 86.2 2.3 6.4 - 94.9 86.2 2.3 6.4 94.9
Net income from
continuing operations 182.8$ 19.2$ 73.0$ 5.3$ 280.3$ 139.0$ 14.7$ 43.7$ (16.2)$ 181.2$ -$ 32.3$ 9.5$ 10.9$ 52.7$ (158.4)$ (12.7)$ (36.4)$ (126.2)$ (333.7)$ 163.4$ 6.5$ 10.6$ 180.5$
EBITDA 200.2$ 30.0$ 63.5$ 5.3$ 299.0$ 152.2$ 19.5$ 37.4$ (16.2)$ 192.9$ -$ 51.7$ 9.5$ 10.9$ 72.1$ (27.7)$ (0.3)$ 0.4$ (110.4)$ (138.0)$ 324.7$ 29.7$ 71.6$ 426.0$
EBITDA margin % 5.8% 7.6% 7.5% 7.8% 5.1% 5.9% 5.4%
Adjusted EBITDA 214.8$ 30.0$ 57.6$ 5.3$ 307.7$ 157.4$ 20.3$ 33.7$ (16.2)$ 195.2$ -$ 57.2$ 9.5$ 10.9$ 77.6$ (11.7)$ 0.0$ 0.0$ (100.8)$ (112.5)$ 360.5$ 30.0$ 77.5$ 468.0$
Adjusted EBITDA margin % 6.2% 7.8% 7.8% 7.9% 5.4% 6.5% 6.0%
Diluted EPS - Non-GAAP 5.17$ 5.68$
ConsolidatedNSS EES UPS Corporate
Anixter International Inc.
Restated Pro Forma Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2014
44
US GAAP 2015 and 2014 Results Restated for Corporate Segment and Reclassification of Product Sales
We have restated the previously disclosed selected financial information for the years ended January 1, 2016 and January 2, 2015 (and their respective quarterly periods) to give effect to
the new Corporate segment structure as well as the reclassification of net sales of various product categories between segments.
45
Q1 2015 - Restated Consolidated
Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment Restated Reported
Net sales 915.8$ -$ 12.2$ 928.0$ 469.3$ -$ (28.5)$ 440.8$ -$ -$ 16.3$ 16.3$ -$ -$ -$ 1,385.1$
Gross profit 309.3
Gross margin % 22.3%
Operating expense 250.0
Operating income 36.3 17.8 1.6 55.7 26.2 13.2 (3.6) 35.8 - - 2.0 2.0 (3.2) (31.0) (34.2) 59.3
Interest expense - - - - - - - - - - - - (14.2) - (14.2) (14.2)
Other, net - - - - - - - - - - - - (4.0) - (4.0) (4.0)
Income from continuing operations
before income taxes 36.3 17.8 1.6 55.7 26.2 13.2 (3.6) 35.8 - - 2.0 2.0 (21.4) (31.0) (52.4) 41.1
Income taxes - - - - - - - - - - - - 14.6 - 14.6 14.6
Net income from continuing operations 36.3$ 17.8$ 1.6$ 55.7$ 26.2$ 13.2$ (3.6)$ 35.8$ -$ -$ 2.0$ 2.0$ (36.0)$ (31.0)$ (67.0)$ 26.5$
EBITDA 43.4$ 15.3$ 1.6$ 60.3$ 29.3$ 11.7$ (3.6)$ 37.4$ -$ -$ 2.0$ 2.0$ (7.2)$ (27.0)$ (34.2)$ 65.5$
EBITDA margin % 4.7% 6.5% 6.2% 8.5% 12.1% 4.7%
Adjusted EBITDA 45.5$ 13.6$ 1.6$ 60.7$ 30.5$ 10.8$ (3.6)$ 37.7$ -$ -$ 2.0$ 2.0$ (3.2)$ (24.4)$ (27.6)$ 72.8$
Adjusted EBITDA margin % 5.0% 6.5% 6.5% 8.6% 12.1% 5.3%
Diluted EPS - Non-GAAP 0.90$
Q2 2015 - Restated Consolidated
Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment Restated Reported
Net sales 1,001.6$ -$ 10.1$ 1,011.7$ 478.8$ -$ (29.3)$ 449.5$ -$ -$ 19.2$ 19.2$ -$ -$ -$ 1,480.4$
Gross profit 328.9
Gross margin % 22.2%
Operating expense 264.4
Operating income 42.2 23.0 1.4 66.6 25.0 12.4 (3.8) 33.6 - - 2.4 2.4 (2.7) (35.4) (38.1) 64.5
Interest expense - - - - - - - - - - - - (12.7) - (12.7) (12.7)
Other, net - - - - - - - - - - - - (3.5) - (3.5) (3.5)
Income from continuing operations
before income taxes 42.2 23.0 1.4 66.6 25.0 12.4 (3.8) 33.6 - - 2.4 2.4 (18.9) (35.4) (54.3) 48.3
Income taxes - - - - - - - - - - - - 18.8 - 18.8 18.8
Net income from continuing operations 42.2$ 23.0$ 1.4$ 66.6$ 25.0$ 12.4$ (3.8)$ 33.6$ -$ -$ 2.4$ 2.4$ (37.7)$ (35.4)$ (73.1)$ 29.5$
EBITDA 49.6$ 20.2$ 1.4$ 71.2$ 28.0$ 11.2$ (3.8)$ 35.4$ -$ -$ 2.4$ 2.4$ (6.1)$ (31.4)$ (37.5)$ 71.5$
EBITDA margin % 5.0% 7.0% 5.8% 7.9% 12.8% 4.8%
Adjusted EBITDA 60.6$ 14.1$ 1.5$ 76.2$ 34.2$ 7.3$ (3.9)$ 37.6$ -$ -$ 2.4$ 2.4$ (2.1)$ (21.4)$ (23.5)$ 92.7$
Adjusted EBITDA margin % 6.1% 7.5% 7.1% 8.3% 12.8% 6.3%
Diluted EPS - Non-GAAP 1.24$
Anixter International Inc.
Restated Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2015
Corporate
CorporateNSS EES UPS
NSS EES UPS
46
Anixter International Inc.
Restated Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2015
Q3 2015 - Restated Consolidated
Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment Restated Reported
Net sales 1,035.4$ -$ 11.5$ 1,046.9$ 453.8$ -$ (30.2)$ 423.6$ -$ -$ 18.7$ 18.7$ -$ -$ -$ 1,489.2$
Gross profit 330.9
Gross margin % 22.2%
Operating expense 252.7
Operating income 61.8 10.7 1.6 74.1 28.6 8.2 (4.3) 32.5 - - 2.7 2.7 (12.2) (18.9) (31.1) 78.2
Interest expense - - - - - - - - - - - - (15.8) - (15.8) (15.8)
Other, net - - - - - - - - - - - - (5.5) - (5.5) (5.5)
Income from continuing operations
before income taxes 61.8 10.7 1.6 74.1 28.6 8.2 (4.3) 32.5 - - 2.7 2.7 (33.5) (18.9) (52.4) 56.9
Income taxes - - - - - - - - - - - - 21.5 - 21.5 21.5
Net income from continuing operations 61.8$ 10.7$ 1.6$ 74.1$ 28.6$ 8.2$ (4.3)$ 32.5$ -$ -$ 2.7$ 2.7$ (55.0)$ (18.9)$ (73.9)$ 35.4$
EBITDA 68.8$ 8.3$ 1.6$ 78.7$ 31.7$ 6.6$ (4.3)$ 34.0$ -$ -$ 2.7$ 2.7$ (17.6)$ (14.9)$ (32.5)$ 82.9$
EBITDA margin % 6.6% 7.5% 7.0% 8.0% 14.5% 5.6%
Adjusted EBITDA 71.0$ 6.5$ 1.6$ 79.1$ 31.8$ 6.8$ (4.3)$ 34.3$ -$ -$ 2.7$ 2.7$ (3.0)$ (13.3)$ (16.3)$ 99.8$
Adjusted EBITDA margin % 6.9% 7.6% 7.0% 8.1% 14.5% 6.7%
Diluted EPS - Non-GAAP 1.30$
Q4 2015 - Restated Consolidated
Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment Restated Reported
Net sales 971.6$ -$ 10.0$ 981.6$ 528.3$ -$ (25.7)$ 502.6$ 335.9$ -$ 15.7$ 351.6$ -$ -$ -$ 1,835.8$
Gross profit 371.4
Gross margin % 20.2%
Operating expense 305.6
Operating income 49.1 11.2 1.5 61.8 12.7 10.5 (4.0) 19.2 10.4 2.4 2.5 15.3 (6.4) (24.1) (30.5) 65.8
Interest expense - - - - - - - - - - - - (21.1) - (21.1) (21.1)
Other, net - - - - - - - - - - - - (8.1) - (8.1) (8.1)
Income from continuing operations
before income taxes 49.1 11.2 1.5 61.8 12.7 10.5 (4.0) 19.2 10.4 2.4 2.5 15.3 (35.6) (24.1) (59.7) 36.6
Income taxes - - - - - - - - - - - - 31.1 - 31.1 31.1
Net income from continuing operations 49.1$ 11.2$ 1.5$ 61.8$ 12.7$ 10.5$ (4.0)$ 19.2$ 10.4$ 2.4$ 2.5$ 15.3$ (66.7)$ (24.1)$ (90.8)$ 5.5$
EBITDA 56.0$ 8.8$ 1.5$ 66.3$ 16.8$ 9.2$ (4.0)$ 22.0$ 15.4$ 2.5$ 2.5$ 20.4$ (14.3)$ (20.5)$ (34.8)$ 73.9$
EBITDA margin % 5.8% 6.8% 3.2% 4.4% 4.6% 5.8% 4.0%
Adjusted EBITDA 67.5$ 6.5$ 1.5$ 75.5$ 20.8$ 7.9$ (4.0)$ 24.7$ 15.8$ 2.5$ 2.5$ 20.8$ (2.3)$ (16.9)$ (19.2)$ 101.8$
Adjusted EBITDA margin % 6.9% 7.7% 3.9% 4.9% 4.7% 5.9% 5.5%
Diluted EPS - Non-GAAP 1.05$
NSS Corporate
Corporate
EES UPS
NSS EES UPS
47
Anixter International Inc.
Restated Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2015
Fiscal Year 2015 - Restated Consolidated
Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment Restated Reported
Net sales 3,924.4$ -$ 43.8$ 3,968.2$ 1,930.2$ -$ (113.7)$ 1,816.5$ 335.9$ -$ 69.9$ 405.8$ -$ -$ -$ 6,190.5$
Gross profit 1,340.5
Gross margin % 21.7%
Operating expense 1,072.7
Operating income 189.4 62.7 6.1 258.2 92.5 44.3 (15.7) 121.1 10.4 2.4 9.6 22.4 (24.5) (109.4) (133.9) 267.8
Interest expense - - - - - - - - - - - - (63.8) - (63.8) (63.8)
Other, net - - - - - - - - - - - - (21.1) - (21.1) (21.1)
Income from continuing operations
before income taxes 189.4 62.7 6.1 258.2 92.5 44.3 (15.7) 121.1 10.4 2.4 9.6 22.4 (109.4) (109.4) (218.8) 182.9
Income taxes - - - - - - - - - - - - 86.0 - 86.0 86.0
Net income from continuing operations 189.4$ 62.7$ 6.1$ 258.2$ 92.5$ 44.3$ (15.7)$ 121.1$ 10.4$ 2.4$ 9.6$ 22.4$ (195.4)$ (109.4)$ (304.8)$ 96.9$
EBITDA 217.8$ 52.6$ 6.1$ 276.5$ 105.8$ 38.7$ (15.7)$ 128.8$ 15.4$ 2.5$ 9.6$ 27.5$ (45.2)$ (93.8)$ (139.0)$ 293.8$
EBITDA margin % 5.5% 7.0% 5.5% 7.1% 4.6% 6.8% 4.7%
Adjusted EBITDA 244.6$ 40.7$ 6.2$ 291.5$ 117.3$ 32.8$ (15.8)$ 134.3$ 15.8$ 2.5$ 9.6$ 27.9$ (10.6)$ (76.0)$ (86.6)$ 367.1$
Adjusted EBITDA margin % 6.2% 7.3% 6.1% 7.4% 4.7% 6.9% 5.9%
Diluted EPS - Non-GAAP 4.46$
CorporateNSS EES UPS
48
Fiscal Year 2014 - Restated Consolidated
Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment
Segment
Reclasses Restated Reported
Corporate
Adjustment Restated Reported
Net sales 3,481.2$ -$ 44.8$ 3,526.0$ 2,025.8$ -$ (114.7)$ 1,911.1$ -$ -$ 69.9$ 69.9$ -$ -$ -$ 5,507.1$
Gross profit 1,239.3
Gross margin % 22.5%
Operating expense 929.2
Operating income 182.8 73.0 5.3 261.1 139.0 39.7 (16.2) 162.5 - - 10.9 10.9 (11.7) (112.7) (124.4) 310.1
Interest expense - - - - - - - - - - - - (44.5) - (44.5) (44.5)
Other, net - - - - - - - - - - - - (16.0) - (16.0) (16.0)
Income from continuing operations
before income taxes 182.8 73.0 5.3 261.1 139.0 39.7 (16.2) 162.5 - - 10.9 10.9 (72.2) (112.7) (184.9) 249.6
Income taxes - - - - - - - - - - - - 86.2 - 86.2 86.2
Net income from continuing operations 182.8$ 73.0$ 5.3$ 261.1$ 139.0$ 39.7$ (16.2)$ 162.5$ -$ -$ 10.9$ 10.9$ (158.4)$ (112.7)$ (271.1)$ 163.4$
EBITDA 200.2$ 63.5$ 5.3$ 269.0$ 152.2$ 33.4$ (16.2)$ 169.4$ -$ -$ 10.9$ 10.9$ (27.7)$ (96.9)$ (124.6)$ 324.7$
EBITDA margin % 5.8% 7.6% 7.5% 8.9% 15.6% 5.9%
Adjusted EBITDA 214.8$ 57.6$ 5.3$ 277.7$ 157.4$ 29.7$ (16.2)$ 170.9$ -$ -$ 10.9$ 10.9$ (11.7)$ (87.3)$ (99.0)$ 360.5$
Adjusted EBITDA margin % 6.2% 7.9% 7.8% 8.9% 15.6% 6.5%
Diluted EPS - Non-GAAP 5.17$
Anixter International Inc.
Restated Selected Financial Information (Unaudited)
(In millions, except per share amounts)
Fiscal Year 2014
CorporateNSS EES UPS
49