SPY376.70-4.72 -1.24%
DIA309.58-3.41 -1.09%
IXIC12,723.47-274.28 -2.11%

Press Release: Fortive Reports Fourth Quarter -6-

· 02/04/2021 16:15
CONTACT: Griffin Whitney===== ===== ===== ===== (a) Each of the per share adjustments below was calculated assuming the MCPS Converted Shares had been outstanding. The 0.875% convertible notes did not have an impact on the adjusted diluted shares outstanding. (b) The MCPS were dilutive for the three months and year ended December 31, 2020 and accordingly the "if-converted" method was applied in calculating earning per share. As such, no additional shares were assumed to be converted and net earnings per share for both respective periods was calculated using net earnings from continuing operations. The MCPS were anti-dilutive for the three months and year ended December 31, 2019, ans as such GAAP net earnings per share was calculated using net earnings from continuing operations attributable to common stockholders. (c) The dividend on the MCPS is not tax deductible and therefore the tax effect of the adjustments includes only the amortization of acquisition-related intangible assets, acquisition and other transaction costs, acquisition-related fair value adjustments to deferred revenue and inventory, losses from equity method investments, the gain on the disposition of the Tektronix Video Business, the gain from the disposition of assets, discrete restructuring charges, and the non-cash interest expense associated with the 0.875% convertible notes. The unrealized gain on the fair value change in Vontier common stock had no tax effect. The sum of the components of adjusted diluted net earnings per share from continuing operations may not equal due to rounding. Adjusted Diluted Shares Outstanding Three Months Ended Year Ended ------------------- ---------------------- December 31, December December December (shares in millions) 2020 31, 2019 31, 2020 31, 2019 -------- --------- --------- ----------- Average common diluted stock outstanding 360.7 340.1 359.0 340.0 MCPS Converted Shares (a) -- 18.3 -- 18.3 -------- --------- --------- --------- Adjusted average common stock and common equivalent shares outstanding 360.7 358.4 359.0 358.3 (a) The MCPS were dilutive for the three months and year ended December 31, 2020 and the "if-converted" method was applied to the average common diluted stock outstanding. Therefore, no additional shares were assumed to be converted for both the three months and year ended December 31, 2020. The MCPS were anti-dilutive for the three months and year ended December 31, 2019 and the number of MCPS Converted Shares assumes the conversion of all 1.38 million shares applying the "if-converted" method and using an average 20-day VWAP of $75.19 as of December 31, 2019. The 0.875% convertible notes did not have an impact on the adjusted diluted shares outstanding. Core Revenue Growth % Change Three Months Ended % Change Year Ended December December 31, 2020 vs. 31, 2020 vs. Comparable 2019 Comparable 2019 Period Period ------------------------------ ---------------------------- Total Revenue Growth (GAAP) 4.9% 1.5% -------------- ------------- -------------- ----------- Core (Non-GAAP) 0.7% (5.9)% Acquisitions (Non-GAAP) 2.6% 7.3% Impact of currency translation (Non-GAAP) 1.6% 0.1% Free Cash Flow From Continuing Operations ($ in millions) Three Months Ended Year Ended ---------------------- -------- ---------------------- -------- December December % December December % 31, 2020 31, 2019 Change 31, 2020 31, 2019 Change ---------- ---------- -------- ---------- ---------- -------- Operating Cash Flows from Continuing Operations (GAAP) $ 329.4 $ 247.1 33.3% $ 977.7 $ 702.0 39.3% Less: purchases of property, plant & equipment (capital expenditures) from continuing operations (GAAP) (16.8) (21.9) (75.7) (74.5) --------- --------- -------- --------- --------- -------- Free Cash Flow from Continuing Operations (Non-GAAP) $ 312.6 $ 225.2 38.8% $ 902.0 $ 627.5 43.7% Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations Three Months Year Ending Ending April December 31, 2, 2021 (a) 2021 (a) -------------- ---------------- Low High Low End End End High End ------ ------ ------ -------- Forecasted Diluted Net Earnings Per Share from Continuing Operations Attributable to Common Stockholders $0.18 $0.22 $1.37 $1.52 Anticipated dividends on mandatory convertible preferred stock in the three months ending April 2, 2021 ($17 million) and year ending December 31, 2021 ($35 million) 0.05 0.05 0.10 0.10 Anticipated dilutive impact on Forecasted Diluted Net Earnings Per Share from Continuing Operations if the MCPS Converted Shares (19.4 million shares in the three months ending April 2, 2021 and 9.7 million shares in the year ending December 31, 2021) had been outstanding (0.02) (0.02) (0.04) (0.04) Anticipated pretax amortization of acquisition-related intangible assets in the three months ending April 2, 2021 ($77 million pretax (or $0.21 per share), $68 million after tax (or $0.18 per share)) and year ending December 31, 2021 ($309 million pretax (or $0.85 per share), $267 million after tax (or $0.74 per share)) 0.21 0.21 0.85 0.85 Anticipated pretax significant acquisition and other transaction costs in the three months ending April 2, 2021 ($6 million pretax (or $0.02 per share), $6 million after tax (or $0.02 per share)) and year ending December 31, 2021 ($14 million pretax (or $0.04 per share), $12 million after tax (or $0.04 per share)) 0.02 0.02 0.04 0.04 Anticipated pretax fair value adjustments to deferred revenue and inventory related to significant acquisitions in the three months ending April 2, 2021 ($6 million pretax (or $0.02 per share), $5 million after tax (or $0.02 per share)) and year ending December 31, 2021 ($8 million pretax (or $0.02 per share), $7 million after tax (or $0.02 per share)) 0.02 0.02 0.02 0.02 Anticipated pretax losses from equity method investments in the three months ending April 2, 2021 ($2 million pretax (or $0.01 per share), $2 million after tax (or $0.01 per share)) and year ending December 31, 2021 ($6 million pretax (or $0.02 per share), $5 million after tax (or $0.02 share)) 0.01 0.01 0.02 0.02 Anticipated pretax non-cash interest from 0.875% convertible notes in the three months ending April 2, 2021 ($14 million pretax (or $0.04 per share), $12 million after tax (or $0.04 per share)) and the year ending December 31, 2021 ($36 million pretax (or $0.10 per share), $32 million after tax (or $0.09 per share)) 0.04 0.04 0.10 0.10 Anticipated loss on debt extinguishment, net of the realized gain on Vontier common stock before it was transferred to lenders in exchange for the debt in the three months ending April 2, 2021 ($36 million pretax (or $0.10 per share), $32 million after tax (or $0.09 per share)) and the year ending December 31, 2021 ($36 million pretax (or $0.10 per share), $31 million after tax (or $0.09 per share)) 0.10 0.10 0.10 0.10 Tax effect of the adjustments reflected above (b) (0.05) (0.05) (0.16) (0.16) ----- ----- ----- ----- Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations $0.56 $0.60 $2.40 $2.55 ==== ==== ==== ==== (a) Each of the per share adjustments for the three months ending April 2, 2021 was calculated assuming the MCPS Converted Shares had been outstanding for the entire period. The adjustments for the year ending December 31, 2021 reflect the conversion of the MCPS on July 1, 2021. (b) The MCPS are not tax deductible and therefore the tax effect of the adjustments includes only the amortization of acquisition-related intangible assets, acquisition and other transaction costs, acquisition-related fair value adjustments to deferred revenue and inventory, losses from equity method investments, non-cash interest from 0.875% convertible notes, and the loss on debt extinguishment. The sum of the components of forecasted adjusted diluted net earnings per share from continuing operations may not equal due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204006025/en/

Investor Relations

Fortive Corporation

6920 Seaway Boulevard

Everett, WA 98203

Telephone: (425) 446-5000

(END) Dow Jones Newswires

February 04, 2021 16:15 ET (21:15 GMT)