Press Release

Xylem Reports First Quarter 2019 Results

May 2, 2019
  • First quarter 2019 reported net income was $79 million or $0.43 per share; Adjusted net income for the quarter was $94 million or $0.52 per share, up 12% excluding foreign exchange translation
  • Delivered $1.2 billion in revenue for the first quarter, up 6% organically
  • Cash flow from operations up 32%
  • Reaffirms full-year 2019 organic revenue growth guidance of 4 to 6% and updates full-year guidance for adjusted earnings per share to $3.12 to $3.32

RYE BROOK, N.Y.--(BUSINESS WIRE)--May 2, 2019-- Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today reported first quarter 2019 net income of $79 million, or $0.43 per share. Excluding the impact of restructuring, realignment and special charges, the Company delivered adjusted net income of $94 million or $0.52 per share in the quarter. Excluding the impact of foreign exchange translation, adjusted earnings per share was up 12 percent. First quarter revenue was $1.2 billion, up 6 percent organically driven by strength across all end markets and double-digit growth in the U.S. and Emerging Markets. Reported operating margin in the quarter was 8.8 percent and adjusted operating margin was 10.8 percent, down 30 basis points compared to the prior year due primarily to the impact of unfavorable sales mix and lower absorption of overhead costs.

“We continue to see robust momentum in the demand for our solutions as we help our customers solve their water challenges and drive the digital transformation of the sector,” said Patrick Decker, President and Chief Executive Officer of Xylem. “While we’re disappointed with our margin performance in the quarter, we’re confident in our long-term growth outlook and in continuing to achieve attractive margin expansion.”

Full-year 2019 Outlook

Xylem continues to forecast full-year 2019 revenue in the range of $5.3 to $5.4 billion, up 2 to 4 percent. On an organic basis, Xylem’s revenue growth also remains unchanged in the range of 4 to 6 percent.

Xylem is revising its full-year 2019 adjusted operating margin outlook from 14.7 to 15.2 percent to 14.5 to 14.9 percent due to the impact of foreign exchange translation and the results from the first quarter. The full-year adjusted earnings per share is now expected to be $3.12 to $3.32 down from $3.20 to $3.40. The Company’s adjusted earnings outlook excludes projected restructuring and realignment costs, which are now expected to be approximately $60 to $70 million for the year as a result of actions to simplify the organization. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.

First Quarter Segment Results

Water Infrastructure

Xylem’s Water Infrastructure segment consists of its portfolio of businesses primarily serving wastewater operations for utility and industrial customers through transport, dewatering and treatment applications.

  • First quarter 2019 revenue was $482 million, up seven percent organically compared with first quarter 2018. Double digit organic growth in Emerging Markets and the U.S. from strength in the Utilities and Industrial end markets led top-line performance at the high end of guidance.
  • First quarter reported operating income for the segment was $51 million. Adjusted operating income for the segment, which excludes $9 million of restructuring and realignment costs, was $60 million, an 11-percent increase over the same period a year ago. Reported operating margin for the Water Infrastructure segment was 10.6 percent, up 40 basis points versus the prior year. Adjusted operating margins of 12.4 percent were up 110 basis points versus prior year as cost reductions, volume leverage and price realization more than offset inflation, lower absorption of overhead costs and growth investments.

Applied Water

Xylem’s Applied Water segment consists of its portfolio of businesses primarily serving the end users of water through industrial water management, commercial building services and residential applications.

  • First quarter 2019 Applied Water revenue was $379 million, a seven percent increase organically year-over-year, driven by growth in the U.S. and Emerging Markets. There was strength in all end markets led by 12 percent organic revenue growth in the Commercial end market.
  • First quarter reported operating income for the segment was $56 million and adjusted operating income, which excludes $3 million of restructuring and realignment costs, was $59 million, an 11-percent increase over the comparable period last year. The segment’s reported operating margin was 14.8 percent and adjusted operating margin was 15.6 percent, both up 110 basis points over the prior year period. Cost reductions and price realization more than offset inflationary pressures, lower absorption of overhead costs and foreign exchange headwinds.

Measurement & Control Solutions

Xylem’s Measurement & Control Solutions segment consists of its portfolio of businesses primarily serving the clean water and energy operations for utility and industrial customers through smart metering, network technologies, advanced infrastructure analytics and analytic instrumentation applications.

  • First quarter 2019 Measurement & Control Solutions revenue was $376 million, up five percent organically versus the prior year. Revenue growth was driven by strength in the North American water business and partially offset by the lapping of a large electric project deployment and software sale in the first quarter of 2018.
  • First quarter reported operating income for the segment was $16 million, and adjusted operating income, which excludes $12 million of restructuring and realignment costs and special charges, was $28 million. The Measurement & Control Solutions segment reported operating margin was 4.3 percent. Adjusted operating margin contracted 420 basis points over the prior year period to 7.4 percent as higher volume and cost reductions were more than offset by inflation, higher investments for growth and unfavorable mix.

Supplemental information on Xylem’s first quarter 2019 earnings and reconciliations for certain non-GAAP items is posted at www.xylem.com/investors.

About Xylem

Xylem (XYL) is a leading global water technology company committed to developing innovative technology solutions to the world’s water challenges. The Company’s products and services move, treat, analyze, monitor and return water to the environment in public utility, industrial, residential and commercial building services settings. Xylem also provides a leading portfolio of smart metering, network technologies and advanced infrastructure analytics solutions for water, electric and gas utilities. The Company’s approximately 17,000 employees bring broad applications expertise with a strong focus on identifying comprehensive, sustainable solutions. Headquartered in Rye Brook, New York, with 2018 revenue of $5.2 billion, Xylem does business in more than 150 countries through a number of market-leading product brands.

The name Xylem is derived from classical Greek and is the tissue that transports water in plants, highlighting the engineering efficiency of our water-centric business by linking it with the best water transportation of all – that which occurs in nature. For more information, please visit us at www.xylem.com.

Forward-Looking Statements

This press release contains information that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” “believe,” “target,” “will,” “could,” “would,” “should” and similar expressions identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These forward-looking statements include any statements that are not historical in nature, including any statements about the capitalization of Xylem Inc. (the “Company”), the Company’s restructuring and realignment, future strategic plans and other statements that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals. All statements that address operating or financial performance, events or developments that we expect or anticipate will occur in the future — including statements relating to orders, revenues, operating margins and earnings per share growth, and statements expressing general views about future operating results — are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements.

Factors that could cause results to differ materially from those anticipated include: overall economic and business conditions, political and other risks associated with our international operations, including military actions, economic sanctions or trade barriers including tariffs and embargoes that could affect customer markets and our business, and non-compliance with laws, including foreign corrupt practice laws, export and import laws and competition laws; potential for unexpected cancellations or delays of customer orders in our reported backlog; our exposure to fluctuations in foreign currency exchange rates; competition and pricing pressures in the markets we serve; the strength of housing and related markets; weather conditions; ability to retain and attract talent and key members of management; our relationship with and the performance of our channel partners; our ability to successfully identify, complete and integrate acquisitions; our ability to borrow or to refinance our existing indebtedness and availability of liquidity sufficient to meet our needs; changes in the value of goodwill or intangible assets; risks relating to product defects, product liability and recalls; claims or investigations by governmental or regulatory bodies; security breaches or other disruptions of our information technology systems; litigation and contingent liabilities; and other factors set forth under “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2018 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).

All forward-looking statements made herein are based on information currently available to the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)
(in millions, except per share data)

     
For the three months ended March 31,     2019 2018
Revenue $ 1,237 $ 1,217
Cost of revenue 763   757
Gross profit 474 460
Selling, general and administrative expenses 303 296
Research and development expenses 51 41
Restructuring and asset impairment charges 11   10
Operating income 109 113
Interest expense 18 21
Other non-operating income, net 2 3
Gain from sale of business 1   —
Income before taxes 94 95
Income tax expense 15     16
Net income $ 79   $ 79
Earnings per share:
Basic $ 0.44 $ 0.44
Diluted $ 0.43 $ 0.43
Weighted average number of shares:
Basic 179.7 179.9
Diluted 181.1 181.4
 
 

XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except per share amounts)

 
      March 31,
2019		   December 31,
2018
ASSETS    
Current assets:
Cash and cash equivalents $ 275 $ 296
Receivables, less allowances for discounts and doubtful accounts of $28 and $35 in 2019 and 2018, respectively 1,020 1,031
Inventories 617 595
Prepaid and other current assets 169   172  
Total current assets 2,081 2,094
Property, plant and equipment, net 653 656
Goodwill 2,988 2,976
Other intangible assets, net 1,219 1,232
Other non-current assets 527   264  
Total assets $ 7,468   $ 7,222  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 548 $ 586
Accrued and other current liabilities 589 546
Short-term borrowings and current maturities of long-term debt 304   257  
Total current liabilities 1,441 1,389
Long-term debt 2,044 2,051
Accrued postretirement benefits 394 400
Deferred income tax liabilities 312 303
Other non-current accrued liabilities 469   297  
Total liabilities 4,660   4,440  
 
Stockholders’ equity:
Common Stock – par value $0.01 per share:
Authorized 750.0 shares, issued 193.6 shares and 192.9 shares in 2019 and 2018, respectively 2 2
Capital in excess of par value 1,962 1,950
Retained earnings 1,674 1,639
Treasury stock – at cost 13.7 shares and 13.2 shares in 2019 and 2018, respectively (526 ) (487 )
Accumulated other comprehensive loss (316 ) (336 )
Total stockholders’ equity 2,796   2,768  
Non-controlling interests 12 14
Total equity 2,808   2,782  
Total liabilities and stockholders’ equity $ 7,468   $ 7,222  
 
 

XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)

 
For the three months ended March 31,     2019   2018
Operating Activities    
Net income $ 79 $ 79
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 29 29
Amortization 35 38
Share-based compensation 9 9
Restructuring and asset impairment charges 11 10
Gain from sale of business (1 ) —
Other, net 1 (4 )
Payments for restructuring (4 ) (5 )
Changes in assets and liabilities (net of acquisitions):
Changes in receivables 7 (9 )
Changes in inventories (25 ) (40 )
Changes in accounts payable (17 ) 6
Other, net (41 ) (50 )
Net Cash – Operating activities 83   63  
Investing Activities
Capital expenditures (69 ) (61 )
Acquisitions of businesses, net of cash acquired (5 ) (430 )
Other, net (3 ) —  
Net Cash – Investing activities (77 ) (491 )
Financing Activities
Short-term debt issued, net 50 371
Repurchase of common stock (39 ) (33 )
Proceeds from exercise of employee stock options 4 3
Dividends paid (44 ) (38 )
Other, net —   (1 )
Net Cash – Financing activities (29 ) 302  
Effect of exchange rate changes on cash 2   9  
Net change in cash and cash equivalents (21 ) (117 )
Cash and cash equivalents at beginning of year 296   414  
Cash and cash equivalents at end of period $ 275   $ 297  
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 13 $ 14
Income taxes (net of refunds received) $ 18 $ 17
 

Xylem Inc. Non-GAAP Measures

Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity and management of assets. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to, dividends acquisitions, share repurchases and debt repayment. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. These adjusted metrics are consistent with how management views our business and are used to make financial, operating and planning decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following non-GAAP measures, which may not be comparable to similarly titled measures reported by other companies, to be key performance indicators:

“Organic revenue" and "Organic orders” defined as revenue and orders, respectively, excluding the impact of fluctuations in foreign currency translation and contributions from acquisitions and divestitures. Divestitures include sales of insignificant portions of our business that did not meet the criteria for classification as a discontinued operation. The period-over-period change resulting from foreign currency translation impacts is determined by translating current period and prior period activity using the same currency conversion rate.

“Constant currency” defined as financial results adjusted for foreign currency translation impacts by translating current period and prior period activity using the same currency conversion rate. This approach is used for countries whose functional currency is not the U.S. dollar.

“EBITDA” defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude share-based compensation charges, restructuring and realignment costs, Sensus acquisition related costs, gain or loss from sale of businesses and special charges.

"Adjusted Operating Income", "Adjusted Segment Operating Income", "Adjusted Net Income" and “Adjusted EPS” defined as operating income, segment operating income, adjusted net income and earnings per share, adjusted to exclude restructuring and realignment costs, Sensus acquisition related costs, gain or loss from sale of businesses, special charges and tax-related special items, as applicable.

“Free Cash Flow” defined as net cash from operating activities, as reported in the Statement of Cash Flow, less capital expenditures as well as adjustments for other significant items that impact current results which management believes are not related to our ongoing operations and performance. Our definition of free cash flow does not consider certain non-discretionary cash payments, such as debt.

“Realignment costs” defined as costs not included in restructuring costs that are incurred as part of actions taken to reposition our business, including items such as professional fees, severance, relocation, travel, facility set-up and other costs.

“Sensus Acquisition Related Costs" defined as costs incurred by the Company associated with the acquisition of Sensus that are being reported within operating income. These costs include integration costs, acquisition costs, costs related to the recognition of the backlog intangible asset amortization recorded in purchase accounting.

“Special charges" defined as costs incurred by the Company, such as acquisition and integration related costs not included in "Sensus Acquisition Related Costs", non-cash impairment charges and other special non-operating items.

“Tax-related special items" defined as tax items, such as tax return versus tax provision adjustments, tax exam impacts, tax law change impacts, significant reserves for cash repatriation, excess tax benefits/losses and other discrete tax adjustments.

 

Xylem Inc. Non-GAAP Reconciliation

Reported vs. Organic & Constant Currency Orders
($ Millions)
                                     
(As Reported - GAAP) (As Adjusted - Organic) Constant Currency
  (A)   (B)   (C)   (D)   (E) = B+C+D   (F) = E/A (G) = (E - C) / A
 
Change % Change

Acquisitions /

 Change % Change
Orders Orders 2019 v. 2018 2019 v. 2018

Divestitures

FX Impact Adj. 2019 v. 2018 Adj. 2019 v. 2018
2019 2018  

Quarter Ended March 31
 
Xylem Inc. 1,315 1,320 (5) 0% 2 56 53 4% 4%
 
Water Infrastructure 532 554 (22) -4% - 35 13 2% 2%
Applied Water 394 384 10 3% - 12 22 6% 6%
Measurement & Control Solutions 389 382 7 2% 2 9 18 5% 4%
 
 

Xylem Inc. Non-GAAP Reconciliation

Reported vs. Organic & Constant Currency Revenue
($ Millions)
                                     
(As Reported - GAAP) (As Adjusted - Organic)

Constant
Currency
  (A)   (B)   (C)   (D)   (E) = B+C+D   (F) = E/A (G) = (E - C) / A
 
Change % Change

Acquisitions /

Change % Change
Revenue Revenue 2019 v. 2018 2019 v. 2018

Divestitures

FX Impact Adj. 2019 v. 2018 Adj. 2019 v. 2018
2019 2018  

Quarter Ended March 31
 
Xylem Inc. 1,237 1,217 20 2% 5 51 76 6% 6%
 
Water Infrastructure 482 480 2 0% - 30 32 7% 7%
Applied Water 379 366 13 4% - 12 25 7% 7%
Measurement & Control Solutions 376 371 5 1% 5 9 19 5% 4%
 
 
Xylem Inc. Non-GAAP Reconciliation
Adjusted Operating Income
($ Millions)
           
Q1

2019

  

2018
Total Revenue
• Total Xylem 1,237 1,217
• Water Infrastructure 482 480
• Applied Water 379 366
• Measurement & Control Solutions 376 371
           
Operating Income
• Total Xylem 109 113
• Water Infrastructure 51 49
• Applied Water 56 50
• Measurement & Control Solutions 16 33
• Total Segments 123 132
 
Operating Margin
• Total Xylem 8.8% 9.3%
• Water Infrastructure 10.6% 10.2%
• Applied Water 14.8% 13.7%
• Measurement & Control Solutions 4.3% 8.9%
• Total Segments     9.9%   10.8%
 
Special Charges
• Total Xylem 4 6
• Water Infrastructure - -
• Applied Water - -
• Measurement & Control Solutions 4 2
• Total Segments 4 2
 
Restructuring & Realignment Costs
• Total Xylem 20 16
• Water Infrastructure 9 5
• Applied Water 3 3
• Measurement & Control Solutions 8 8
• Total Segments 20 16
           
Adjusted Operating Income
• Total Xylem 133 135
• Water Infrastructure 60 54
• Applied Water 59 53
• Measurement & Control Solutions 28 43
• Total Segments 147 150
 
Adjusted Operating Margin
• Total Xylem 10.8% 11.1%
• Water Infrastructure 12.4% 11.3%
• Applied Water 15.6% 14.5%
• Measurement & Control Solutions 7.4% 11.6%
• Total Segments     11.9%   12.3%
 
 
Xylem Inc. Non-GAAP Reconciliation
Adjusted Diluted EPS
($ Millions, except per share amounts)
                 
 
 
 
   
Q1 2019 Q1 2018

As Reported

Adjustments

Adjusted

As Reported

Adjustments

Adjusted
Total Revenue 1,237 - 1,237 1,217 - 1,217
Operating Income 109 24 a 133 113 22 a 135
Operating Margin 8.8 % 10.8 % 9.3 % 11.1 %
Interest Expense (18 ) - (18 ) (21 ) - (21 )
Other Non-Operating Income (Expense) 2 2 3 - 3
Gain/(Loss) From Sale of Businesses   1     (1 )   -     -     -     -  
Income before Taxes 94 23 117 95 22 117
Provision for Income Taxes   (15 )   (8 ) b   (23 )   (16 )   (8 ) b   (24 )
Net Income Attributable to Xylem   79     15     94     79     14     93  
Diluted Shares       181.1               181.1       181.4               181.4  
Diluted EPS     $ 0.43     $ 0.09         $ 0.52     $ 0.43     $ 0.08         $ 0.51  
 
Year-over-year currency translation impact on current year diluted EPS     $ (0.05 )   $ -         $ (0.05 )
Diluted EPS at Constant Currency     $ 0.48     $ 0.09         $ 0.57  
 
 
a   Restructuring & realignment costs of $20 million and $16 million in 2019 and 2018, respectively; special charges of $4 million in 2019 ($1 million of acquisition related costs and $3 million of intangible asset impairment) and $6 million of acquisition related costs in 2018.
b Net tax impact on restructuring & realignment costs of $4 million in both 2019 and 2018; net tax impact on special charges of $0 million and $1 million in 2019 and 2018, respectively; and tax-related special items of $3 million of expense in both 2019 and 2018.
 
 
Xylem Inc. Non-GAAP Reconciliation
Net Cash - Operating Activities vs. Free Cash Flow
($ Millions)
       
 
Q1
2019 2018
 
Net Cash - Operating Activities $ 83 $ 63
 
Capital Expenditures (69 ) (61 )
   
Free Cash Flow $ 14   $ 2  
 
Cash paid for Sensus acquisition related costs - (1 )
   
Free Cash Flow, excluding Sensus Acquisition Related Costs $ 14   $ 3  
 
Net Income 79 79
 
Gain/(Loss) from sale of businesses 1 -
 
Special Charges - non-cash impairment (3 ) -
 
Net Income, excluding gain on sale of businesses and non-cash impairment charges $ 81   $ 79  
 
Free Cash Flow Conversion   17 %   4 %
 
 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter
 
($ Millions)
 
2019
    Q1   Q2   Q3   Q4   Total
 
Net Income 79 79
 
Income Tax Expense 15 15
 
Interest Expense (Income), net 17 17
Depreciation 29 29
Amortization 35       35
EBITDA 175 175
 
Share-based Compensation 9 9
 
Restructuring & Realignment 20 20
 
Loss/(Gain) from sale of business (1) (1)
 
Special Charges 4 4
         
Adjusted EBITDA 207       207
 
Revenue 1,237       1,237
 
Adjusted EBITDA Margin 16.7%       16.7%
 
2018
Q1 Q2 Q3 Q4 Total
 
Net Income 79 115 130 225 549
 
Income Tax Expense 16 35 31 (46) 36
 
Interest Expense (Income), net 20 20 20 18 78
Depreciation 29 29 29 30 117
Amortization 38 36 34 36 144
EBITDA 182 235 244 263 924
 
Share-based Compensation 9 7 7 7 30
 
Restructuring & Realignment 16 9 11 11 47
 
Loss/(Gain) from sale of business - 2 (2) - -
 
Special Charges 6 1 1 4 12
         
Adjusted EBITDA 213 254 261 285 1,013
 
Revenue 1,217 1,317 1,287 1,386 5,207
 
Adjusted EBITDA Margin 17.5% 19.3% 20.3% 20.6% 19.5%
 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter
Water Infrastructure
($ Millions)
           
2019
Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income 50 50
 
Interest Expense (Income), net (1) (1)
Depreciation 11 11
Amortization 4       4
EBITDA 64 64
 
Share-based Compensation 1 1
 
Restructuring & Realignment 9 9
 
Special Charges - -
         
Adjusted EBITDA 74       74
 
Revenue 482       482
 
Adjusted EBITDA Margin 15.4%       15.4%
 
2018
Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income 47 90 98 117 352
 
Interest Expense (Income), net - (1) (1) - (2)
Depreciation 12 11 12 11 46
Amortization 5 5 5 5 20
EBITDA 64 105 114 133 416
 
Share-based Compensation 1 - 1 - 2
 
Restructuring & Realignment 5 5 5 5 20
 
Special Charges - 2 2
         
Adjusted EBITDA 70 110 120 140 440
 
Revenue 480 546 541 609 2,176
 
Adjusted EBITDA Margin 14.6% 20.1% 22.2% 23.0% 20.2%
 
 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter
Applied Water
($ Millions)
           
2019
Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income 57 57
 
Interest Expense (Income), net - -
Depreciation 5 5
Amortization 1       1
EBITDA 63 63
 
Share-based Compensation 1 1
 
Restructuring & Realignment 3 3
         
Adjusted EBITDA 67       67
 
Revenue 379       379
 
Adjusted EBITDA Margin 17.7%       17.7%
 
2018
Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income 50 61 60 66 237
 
Interest Expense (Income), net - - - - -
Depreciation 5 5 5 5 20
Amortization - 1 1 - 2
EBITDA 55 67 66 71 259
 
Share-based Compensation 1 1 - 1 3
 
Restructuring & Realignment 3 2 2 3 10
         
Adjusted EBITDA 59 70 68 75 272
 
Revenue 366 388 378 402 1,534
 
Adjusted EBITDA Margin 16.1% 18.0% 18.0% 18.7% 17.7%
 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter
Measurement & Control Solutions
($ Millions)
           
2019
Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income 16 16
 
Interest Expense (Income), net - -
Depreciation 9 9
Amortization 27       27
EBITDA 52 52
 
Share-based Compensation 1 1
 
Restructuring & Realignment 8 8
 
Loss/(Gain) from sale of business (1) (1)
 
Special Charges 4 4
         
Adjusted EBITDA 64       64
 
Revenue 376       376
 
Adjusted EBITDA Margin 17.0%       17.0%
 
2018
Q1 Q2 Q3 Q4 Total
 
Pre-Tax Income 33 28 33 23 117
 
Interest Expense (Income), net - - - (1) (1)
Depreciation 8 9 8 10 35
Amortization 29 27 26 27 109
EBITDA 70 64 67 59 260
 
Share-based Compensation 1 1 1 1 4
 
Restructuring & Realignment 8 3 4 3 18
 
Loss/(Gain) from sale of business - 2 (2) - -
 
Special Charges 2 1 - 2 5
         
Adjusted EBITDA 81 71 70 65 287
 
Revenue 371 383 368 375 1,497
 
Adjusted EBITDA Margin 21.8% 18.5% 19.0% 17.3% 19.2%
 

Source: Xylem Inc.

Media
Jenny Rider +1 (914) 323-5745
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Investors
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Matthew.Latino@xyleminc.com