Sensata Technologies (NYSE: ST), a global industrial technology
company and leading provider of sensors, sensor-rich solutions and
electrical protection devices used in mission-critical systems that
create valuable business insights for customers, today announced
financial results for its second quarter ended June 30, 2024.
“We are pleased to report a solid second quarter with
performance in line with expectations," said Martha Sullivan,
Interim President and CEO of Sensata. "Adjusted operating margins
increased sequentially by thirty basis points in the second
quarter, consistent with our expectations of twenty to thirty basis
points of adjusted operating margin expansion per quarter in 2024.
We remain committed to deliver top quartile adjusted operating
margins amongst our peers.”
Operating Results - Second Quarter
Operating results for the second quarter of 2024 compared to the
second quarter of 2023 are summarized below. These results include
non-GAAP financial measures, each of which is defined and
reconciled to the most directly comparable GAAP measure later in
this press release.
Revenue:
- Revenue was $1,035.5 million, a decrease of $26.6 million, or
2.5%, compared to $1,062.1 million in the second quarter of 2023.
Excluding one-time pass-through revenue of $25.9 million in the
second quarter of 2023, revenue was effectively unchanged year over
year.
- On a constant currency basis, revenue decreased 1.2% or $12.7
million as compared to the second quarter of 2023.
Operating income:
- Operating income was $129.9 million, or 12.5% of revenue, an
increase of $11.9 million, or 10.1%, compared to operating income
of $118.0 million, or 11.1% of revenue, in the second quarter of
2023.
- Adjusted operating income was $196.7 million, or 19.0% of
revenue ($201.7 million or 19.2% of revenue on a constant currency
basis), a decrease of $9.1 million, or 4.4%, compared to adjusted
operating income of $205.7 million, or 19.4% of revenue, in the
second quarter of 2023.
Earnings per share:
- Earnings per share was $0.47, an increase of $0.15, or 46.9%,
compared to earnings per share of $0.32 in the second quarter of
2023.
- Adjusted earnings per share was $0.93, a decrease of $0.04, or
4.1% ($0.92 or a decrease of 5.2% on a constant currency basis),
compared to adjusted earnings per share of $0.97 in the second
quarter of 2023.
Sensata generated $143.5 million of operating cash flow in the
second quarter of 2024, compared to $115.8 million in the second
quarter of 2023. Sensata's free cash flow totaled $98.4 million in
the second quarter of 2024, compared to $68.2 million in the second
quarter of 2023.
In June 2024, Sensata completed a $500 million senior notes
issuance. In July 2024, the proceeds from the issuance and cash on
hand were used to repay approximately $700 million in bonds
scheduled to mature in October 2025.
During the second quarter of 2024, Sensata returned
approximately $18.1 million to shareholders through its quarterly
dividend of $0.12 per share paid on May 22, 2024.
Operating Results - Six Months
Operating results for the six months ended June 30, 2024
compared to the six months ended June 30, 2023 are summarized
below. These results include non-GAAP financial measures, each of
which is defined and reconciled to the most directly comparable
GAAP measure later in this press release.
Revenue:
- Revenue was $2,042.2 million, a decrease of $18.0 million, or
0.9%, compared to $2,060.3 million in the six months ended June 30,
2023.
- Revenue increased 0.5% on a constant currency basis, which
excludes a decrease of 1.4% from foreign currency exchange rates
versus the prior year.
Operating income:
- Operating income was $274.7 million, or 13.5% of revenue, an
increase of $7.9 million, or 3.0%, compared to operating income of
$266.9 million, or 13.0% of revenue, in the six months ended June
30, 2023.
- Adjusted operating income was $385.2 million, or 18.9% of
revenue ($399.3 million or 19.3% of revenue on a constant currency
basis), a decrease of $13.4 million, or 3.4%, compared to adjusted
operating income of $398.6 million, or 19.3% of revenue, in the six
months ended June 30, 2023.
Earnings per share:
- Earnings per share was $0.98, an increase of $0.10, or 11.4%,
compared to earnings per share of $0.88 in the six months ended
June 30, 2023.
- Adjusted earnings per share was $1.82, a decrease of $0.07, or
3.7% ($1.85 or a decrease of 2.1% on a constant currency basis),
compared to adjusted earnings per share of $1.89 in the six months
ended June 30, 2023.
Sensata generated $249.9 million of operating cash flow in the
six months ended June 30, 2024, compared to $212.6 million in the
six months ended June 30, 2023. Sensata's free cash flow totaled
$162.8 million in the six months ended June 30, 2024 compared to
$128.2 million in the six months ended June 30, 2023.
During the first six months of 2024, Sensata returned
approximately $36.1 million to shareholders through its quarterly
dividend, and repurchased shares valued at approximately $10.1
million.
Guidance
For the third quarter of 2024, Sensata expects revenue of $970
to $1,000 million and adjusted EPS of $0.82 to $0.88.
Martha Sullivan added: "In the second quarter, we launched an
initiative to identify underperforming products with low growth and
substandard margin profiles. This review resulted in identification
of several products totaling approximately $200 million in annual
revenue. Actions are underway to exit these products. The guidance
range for the third quarter reflects the reduction of approximately
$30 million in revenue related to underperforming products.”
Q3-2024 Guidance
$ in millions, except EPS
Q3-24 Guidance
Q3-23
Y/Y Change
Revenue
$970 - $1,000
$1,001.3
(3%) - 0%
organic growth
(3%) - 0%
Adjusted Operating Income
$184 - $194
$191.6
(4%) - 1%
Adjusted Net Income
$124 - $134
$138.3
(10%) - (3%)
Adjusted EPS
$0.82 - $0.88
$0.91
(10%) - (3%)
Conference Call and Webcast
Sensata will conduct a conference call today at 4:30 p.m.
Eastern Time to discuss its second quarter 2024 financial results
and its outlook for the third quarter of 2024. The dial-in numbers
for the call are 1-844-784-1726 or 1-412-380-7411. Callers should
reference the "Sensata Q2 2024 Financial Results Conference Call."
A live webcast of the conference call will also be available on the
investor relations page of Sensata’s website at
http://investors.sensata.com. Additionally, a replay of the call
will be available until August 5, 2024. To access the replay, dial
1-877-344-7529 or 1-412-317-0088 and enter confirmation code:
2870913.
About Sensata Technologies
Sensata Technologies is a global industrial technology company
striving to create a safer, cleaner, more efficient and electrified
world. Through its broad portfolio of mission-critical sensors,
electrical protection components and sensor-rich solutions, Sensata
helps its customers address increasingly complex engineering and
operating performance requirements. With more than 19,000 employees
and global operations in 15 countries, Sensata serves customers in
the automotive, heavy vehicle & off-road, industrial, and
aerospace markets. Learn more at www.sensata.com and follow Sensata
on LinkedIn, Facebook, X and Instagram.
Non-GAAP Financial Measures
We supplement the reporting of our financial information
determined in accordance with U.S. generally accepted accounting
principles (“GAAP”) with certain non-GAAP financial measures. We
use these non-GAAP financial measures internally to make operating
and strategic decisions, including the preparation of our annual
operating plan, evaluation of our overall business performance, and
as a factor in determining compensation for certain employees. We
believe presenting non-GAAP financial measures is useful for
period-over-period comparisons of underlying business trends and
our ongoing business performance. We also believe presenting these
non-GAAP measures provides additional transparency into how
management evaluates the business.
Non-GAAP financial measures should be considered as supplemental
in nature and are not meant to be considered in isolation or as a
substitute for the related financial information prepared in
accordance with U.S. GAAP. In addition, our non-GAAP financial
measures may not be the same as, or comparable to, similar non-GAAP
measures presented by other companies.
The non-GAAP financial measures referenced by Sensata in this
release include: adjusted net income, adjusted earnings per share
(“EPS”), adjusted operating income, adjusted operating margin, free
cash flow, organic revenue growth, market outgrowth, adjusted
earnings before interest, taxes, depreciation and amortization
("EBITDA"), net debt, and net leverage ratio. We also refer to
changes in certain non-GAAP measures, usually reported either as a
percentage or number of basis points, between two periods. Such
changes are also considered non-GAAP measures.
Adjusted net income (or loss) is defined as net income
(or loss), determined in accordance with U.S. GAAP, excluding
certain non-GAAP adjustments which are detailed in the accompanying
reconciliation tables. Adjusted EPS is calculated by
dividing adjusted net income (or loss) by the number of diluted
weighted-average ordinary shares outstanding in the period. We
believe that these measures are useful to investors and management
in understanding our ongoing operations and in analysis of ongoing
operating trends.
Adjusted operating income (or loss) is defined as
operating income (or loss), determined in accordance with U.S.
GAAP, excluding certain non-GAAP adjustments which are detailed in
the accompanying reconciliation tables. Adjusted operating
margin is calculated by dividing adjusted operating income (or
loss) by net revenue. We believe that these measures are useful to
investors and management in understanding our ongoing operations
and in analysis of ongoing operating trends.
Free cash flow is defined as net cash provided by/(used
in) operating activities less additions to property, plant and
equipment and capitalized software. We believe that this measure is
useful to investors and management as a measure of cash generated
by business operations that will be used to repay scheduled debt
maturities and can be used to fund acquisitions, repurchase
ordinary shares, or for the accelerated repayment of debt
obligations.
Organic revenue growth (or decline) is defined as the
reported percentage change in net revenue calculated in accordance
with U.S. GAAP, excluding the period-over-period impact of foreign
exchange rate differences as well as the net impact of material
acquisitions and divestitures for the 12-month period following the
respective transaction date(s). We believe that this measure is
useful to investors and management in understanding our ongoing
operations and in analysis of ongoing operating trends.
Adjusted EBITDA is defined as net income (or loss),
determined in accordance with U.S. GAAP, excluding interest
expense, net, provision for (or benefit from) income taxes,
depreciation expense, amortization of intangible assets, and the
following non-GAAP adjustments, if applicable: (1) restructuring
related and other, (2) financing and other transaction costs, and
(3) deferred gain or loss on derivative instruments. We believe
that this measure is useful to investors and management in
understanding our ongoing operations and in analysis of ongoing
operating trends.
Gross leverage ratio is defined as gross debt divided by
last twelve months (LTM) adjusted EBITDA. We believe that gross
leverage ratio is a useful measure to management and investors in
understanding trends in our overall financial condition.
Net debt is defined as total debt, finance lease, and
other financing obligations less cash and cash equivalents. We
believe net debt is a useful measure to management and investors in
understanding trends in our overall financial condition.
Net leverage ratio is defined as net debt divided by last
twelve months (LTM) adjusted EBITDA. We believe the net leverage
ratio is a useful measure to management and investors in
understanding trends in our overall financial condition.
In discussing trends in our performance, we may refer to certain
non-GAAP financial measures or the percentage change of certain
non-GAAP financial measures in one period versus another,
calculated on a constant currency basis. Constant currency
is determined by stating revenues and expenses at prior period
foreign currency exchange rates and excludes the impact of foreign
currency exchange rates on all hedges and, as applicable, net
monetary assets. We believe these measures are useful to investors
and management in understanding our ongoing operations and in
analysis of ongoing operating trends.
Safe Harbor Statement
This earnings release includes "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements may be identified by
terminology such as "may," "will," "could," "should," "expect,"
"anticipate," "believe," "estimate," "predict," "project,"
"forecast," "continue," "intend," "plan," "potential,"
"opportunity," "guidance," and similar terms or phrases.
Forward-looking statements involve, among other things,
expectations, projections, and assumptions about future financial
and operating results, objectives, business and market outlook,
megatrends, priorities, growth, shareholder value, capital
expenditures, cash flows, demand for products and services, share
repurchases, and Sensata’s strategic initiatives, including those
relating to acquisitions and dispositions and the impact of such
transactions on our strategic and operational plans and financial
results. These statements are subject to risks, uncertainties, and
other important factors relating to our operations and business
environment, and we can give no assurances that these
forward-looking statements will prove to be correct.
A wide variety of potential risks, uncertainties, and other
factors could materially affect our ability to achieve the results
either expressed or implied by these forward-looking statements,
including, but not limited to, risks related to public health
crises, instability and changes in the global markets, supplier
interruption or non-performance, the acquisition or disposition of
businesses, adverse conditions or competition in the industries
upon which we are dependent, intellectual property, product
liability, warranty, and recall claims, market acceptance of new
product introductions and product innovations, labor disruptions or
increased labor costs, and changes in existing environmental or
safety laws, regulations, and programs.
Investors and others should carefully consider the foregoing
factors and other uncertainties, risks, and potential events
including, but not limited to, those described in Item 1A: Risk
Factors in our most recent Annual Report on Form 10-K and as may be
updated from time to time in Item 1A: Risk Factors in our quarterly
reports on Form 10-Q or other subsequent filings with the United
States Securities and Exchange Commission. All such forward-looking
statements speak only as of the date they are made, and we do not
undertake any obligation to update these statements other than as
required by law.
SENSATA TECHNOLOGIES HOLDING
PLC
Condensed Consolidated
Statements of Operations
(In thousands, except per share
amounts)
(Unaudited)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Net revenue
$
1,035,535
$
1,062,112
$
2,042,244
$
2,060,287
Operating costs and expenses:
Cost of revenue
724,414
732,108
1,413,674
1,402,579
Research and development
45,325
44,857
90,639
90,796
Selling, general and administrative
93,273
91,312
181,319
177,462
Amortization of intangible assets
39,085
54,563
77,600
95,337
Restructuring and other charges, net
3,491
21,259
4,273
27,258
Total operating costs and expenses
905,588
944,099
1,767,505
1,793,432
Operating income
129,947
118,013
274,739
266,855
Interest expense
(40,863
)
(45,759
)
(79,258
)
(94,550
)
Interest income
5,802
7,654
9,540
16,354
Other, net
4,097
(10,924
)
(7,447
)
(9,532
)
Income before taxes
98,983
68,984
197,574
179,127
Provision for income taxes
27,280
19,873
49,850
43,599
Net income
$
71,703
$
49,111
$
147,724
$
135,528
Net income per share:
Basic
$
0.48
$
0.32
$
0.98
$
0.89
Diluted
$
0.47
$
0.32
$
0.98
$
0.88
Weighted-average ordinary shares
outstanding:
Basic
150,845
152,700
150,663
152,609
Diluted
151,129
153,064
151,025
153,194
SENSATA TECHNOLOGIES HOLDING
PLC
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
1,033,052
$
508,104
Accounts receivable, net of allowances
809,411
744,129
Inventories
708,299
713,485
Prepaid expenses and other current
assets
148,842
136,686
Total current assets
2,699,604
2,102,404
Property, plant and equipment, net
884,155
886,010
Goodwill
3,542,713
3,542,770
Other intangible assets, net
806,977
883,671
Deferred income tax assets
128,744
131,527
Other assets
127,249
134,605
Total assets
$
8,189,442
$
7,680,987
Liabilities and shareholders'
equity
Current liabilities:
Current portion of long-term debt and
finance lease obligations
$
702,701
$
2,276
Accounts payable
475,573
482,301
Income taxes payable
22,861
32,139
Accrued expenses and other current
liabilities
320,324
307,002
Total current liabilities
1,521,459
823,718
Deferred income tax liabilities
360,437
359,073
Pension and other post-retirement benefit
obligations
36,217
38,178
Finance lease obligations, less current
portion
21,964
22,949
Long-term debt, net
3,170,804
3,373,988
Other long-term liabilities
67,009
66,805
Total liabilities
5,177,890
4,684,711
Total shareholders' equity
3,011,552
2,996,276
Total liabilities and shareholders'
equity
$
8,189,442
$
7,680,987
SENSATA TECHNOLOGIES HOLDING
PLC
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
For the six months ended June
30,
2024
2023
Cash flows from operating
activities:
Net income
$
147,724
$
135,528
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
67,016
63,560
Amortization of debt issuance costs
3,193
3,421
Gain on sale of business
—
(5,877
)
Share-based compensation
11,944
17,607
Loss on debt financing
—
857
Amortization of intangible assets
77,600
95,337
Deferred income taxes
6,056
13,449
Loss on equity investments, net
14,306
302
Unrealized (gain)/loss on derivative
instruments and other
(9,862
)
14,674
Changes in operating assets and
liabilities, net of effects of acquisitions
(68,034
)
(117,836
)
Acquisition-related compensation
payments
—
(8,380
)
Net cash provided by operating
activities
249,943
212,642
Cash flows from investing
activities:
Additions to property, plant and equipment
and capitalized software
(87,188
)
(84,444
)
Investment in debt and equity
securities
1,994
(390
)
Proceeds from the sale of business, net of
cash sold
—
19,000
Net cash used in investing activities
(85,194
)
(65,834
)
Cash flows from financing
activities:
Proceeds from exercise of stock options
and issuance of ordinary shares
4,605
5,346
Payment of employee restricted stock tax
withholdings
(6,980
)
(11,470
)
Proceeds from borrowings on debt
500,000
—
Payments on debt
(566
)
(448,390
)
Dividends paid
(36,148
)
(35,113
)
Payments to repurchase ordinary shares
(10,052
)
(25,076
)
Purchase of noncontrolling interest in
joint venture
(79,393
)
—
Payments of debt financing costs
(6,376
)
(311
)
Net cash provided by/(used in) financing
activities
365,090
(515,014
)
Effect of exchange rate changes on cash
and cash equivalents
(4,891
)
—
Net change in cash and cash
equivalents
524,948
(368,206
)
Cash and cash equivalents, beginning of
year
508,104
1,225,518
Cash and cash equivalents, end of
period
$
1,033,052
$
857,312
Segment Performance
For the three months ended
June 30,
For the six months ended June
30,
$ in 000s
2024
2023
2024
2023
Performance Sensing (1)
Revenue
$
723,921
$
693,563
$
1,437,239
$
1,361,325
Operating income
$
177,033
$
180,407
$
362,165
$
349,473
% of Performance Sensing revenue
24.5
%
26.0
%
25.2
%
25.7
%
Sensing Solutions
Revenue
$
268,071
$
331,060
$
525,910
$
614,510
Operating income
$
79,839
$
94,154
$
152,318
$
178,174
% of Sensing Solutions revenue
29.8
%
28.4
%
29.0
%
29.0
%
Other (1)
Revenue
$
43,543
$
37,489
$
79,095
$
84,452
Operating income
$
9,204
$
738
$
15,985
$
5,708
% of Other revenue
21.1
%
2.0
%
20.2
%
6.8
%
(1)
In the first quarter of 2024, we moved
Insights from Performance Sensing, creating another operating
segment, which is reported in "Other". We recast Performance
Sensing to exclude Insights. Prior period amounts in the above
table have been recast to reflect this realignment.
Revenue by Business, Geography, and End Market
(Unaudited)
(percent of total revenue)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Performance Sensing (1)
69.9
%
65.3
%
70.4
%
66.1
%
Sensing Solutions
25.9
%
31.2
%
25.8
%
29.8
%
Other (1)
4.2
%
3.5
%
3.9
%
4.1
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
(percent of total revenue)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Americas
44.3
%
46.2
%
43.5
%
45.7
%
Europe
26.8
%
26.7
%
27.5
%
26.9
%
Asia/Rest of World
28.9
%
27.1
%
29.0
%
27.4
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
(percent of total revenue)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Automotive
55.6
%
50.8
%
55.8
%
51.7
%
Heavy vehicle and off-road (1)
18.2
%
17.9
%
18.5
%
17.7
%
Industrial
12.2
%
17.4
%
12.3
%
16.2
%
Appliance and HVAC
5.3
%
4.8
%
5.0
%
4.8
%
Aerospace
4.4
%
4.4
%
4.5
%
4.4
%
All other (1)
4.3
%
4.7
%
3.9
%
5.2
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
(1)
Effective January 1, 2024 we moved
Insights from the Heavy vehicle off-road operating segment within
Performance Sensing, creating another operating segment, which is
reported in "Other". Additionally, we moved the Insights business
to the "other" end market. Prior period information in the tables
above has been recast to reflect this realignment.
GAAP to Non-GAAP Reconciliations
The following unaudited tables provide a reconciliation of the
difference between each of the non-GAAP financial measures
referenced herein and the most directly comparable U.S. GAAP
financial measure. Amounts presented in these tables may not appear
to recalculate due to the effect of rounding.
Operating income and margin, income tax,
net income, and earnings per share
($ in thousands, except per share
amounts)
For the three months ended
June 30, 2024
Operating Income
Operating Margin
Income Taxes
Net Income
Diluted EPS
Reported (GAAP)
$
129,947
12.5
%
$
27,280
$
71,703
$
0.47
Non-GAAP adjustments:
Restructuring related and other
26,804
2.6
%
(809
)
25,995
0.17
Financing and other transaction costs
2,462
0.2
%
(971
)
2,510
0.02
Step-up depreciation and amortization
37,561
3.6
%
—
37,561
0.25
Deferred gain on derivative
instruments
(102
)
(0.0
%)
1,406
(3,673
)
(0.02
)
Amortization of debt issuance costs
—
—
%
—
1,631
0.01
Deferred taxes and other tax related
—
—
%
4,160
4,160
0.03
Total adjustments
66,725
6.4
%
3,786
68,184
0.45
Adjusted (non-GAAP)
$
196,672
19.0
%
$
23,494
$
139,887
$
0.93
($ in thousands, except per share
amounts)
For the three months ended
June 30, 2023
Operating Income
Operating Margin
Income Tax
Net Income
Diluted EPS
Reported (GAAP)
$
118,013
11.1
%
$
19,873
$
49,111
$
0.32
Non-GAAP adjustments:
Restructuring related and other (1)
31,078
2.9
%
(632
)
30,446
0.20
Financing and other transaction costs
4,265
0.4
%
(98
)
3,923
0.03
Step-up depreciation and amortization
(2)
53,326
5.0
%
—
53,326
0.35
Deferred (gain)/loss on derivative
instruments
(947
)
(0.1
%)
(1,090
)
4,232
0.03
Amortization of debt issuance costs
—
—
%
—
1,685
0.01
Deferred taxes and other tax related
—
—
%
6,433
6,433
0.04
Total adjustments
87,722
8.3
%
4,613
100,045
0.65
Adjusted (non-GAAP)
$
205,735
19.4
%
$
15,260
$
149,156
$
0.97
(1)
Includes $26.6 million of charges related
to the exit of the Spear Marine Business in the second quarter of
2023. Refer to our Quarterly Report on Form 10-Q for additional
information
(2)
Includes $13.5 million of accelerated
amortization related to the exit of the Spear Marine Business in
the second quarter of 2023.
($ in thousands, except per share
amounts)
For the six months ended June
30, 2024
Operating Income
Operating Margin
Income Tax
Net Income
Diluted EPS
Reported (GAAP)
$
274,739
13.5
%
$
49,850
$
147,724
$
0.98
Non-GAAP adjustments:
Restructuring related and other
29,198
1.4
%
(1,384
)
27,814
0.18
Financing and other transaction costs
(1)
6,813
0.3
%
(861
)
20,258
0.13
Step-up depreciation and amortization
74,939
3.7
%
—
74,939
0.50
Deferred (gain)/loss on derivative
instruments
(477
)
0.0
%
1,688
(4,865
)
(0.03
)
Amortization of debt issuance costs
—
—
%
—
3,193
0.02
Deferred taxes and other tax related
—
—
%
5,446
5,446
0.04
Total adjustments
110,473
5.4
%
4,889
126,785
0.84
Adjusted (non-GAAP)
$
385,212
18.9
%
$
44,961
$
274,509
$
1.82
(1)
Includes a $14.8 million mark-to-market
loss on an equity investment held under the measurement alternative
due to an observable marketplace transaction in the first quarter
of 2024. This loss is presented in other, net on the condensed
consolidated statement of operations
($ in thousands, except per share
amounts)
For the six months ended June
30, 2023
Operating Income
Operating Margin
Income Tax
Net Income
Diluted EPS
Reported (GAAP)
$
266,855
13.0
%
$
43,599
$
135,528
$
0.88
Non-GAAP adjustments:
Restructuring related and other (1)
34,019
1.7
%
(1,304
)
32,715
0.21
Financing and other transaction costs
8,513
0.4
%
2,776
11,530
0.08
Step-up depreciation and amortization
(2)
92,456
4.5
%
—
92,456
0.60
Deferred (gain)/loss on derivative
instruments
(3,197
)
(0.2
%)
(237
)
936
0.01
Amortization of debt issuance costs
—
—
%
—
3,419
0.02
Deferred taxes and other tax related
—
—
%
13,224
13,224
0.09
Total adjustments
131,791
6.4
%
14,459
154,280
1.01
Adjusted (non-GAAP)
$
398,646
19.3
%
$
29,140
$
289,808
$
1.89
(1)
Includes $26.6 million of charges related
to the exit of the Spear Marine Business in the second quarter of
2023. Refer to our Quarterly Report on Form 10-Q for additional
information
(2)
Includes $13.5 million of accelerated
amortization related to the exit of the Spear Marine Business in
the second quarter of 2023.
Non-GAAP adjustments by location in
statements of operations
(in thousands)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Cost of revenue (1)
$
14,820
$
11,142
$
15,974
$
8,364
Selling, general and administrative
11,106
2,250
15,791
4,022
Amortization of intangible assets (2)
37,308
53,071
74,435
92,147
Restructuring and other charges, net
(3)
3,491
21,259
4,273
27,258
Operating income adjustments
66,725
87,722
110,473
131,791
Interest expense, net
1,631
1,685
3,193
3,419
Other, net (4)
(3,958
)
6,025
8,230
4,611
Provision for income taxes
3,786
4,613
4,889
14,459
Net income adjustments
$
68,184
$
100,045
$
126,785
$
154,280
(1)
The three and six months ended June 30,
2023 include a charge of $10.5 million to write down inventory
related to the exit of the Spear Marine Business in the second
quarter of 2023.
(2)
The three and six months ended June 30,
2023 include accelerated amortization of $13.5 million related to
intangible assets assigned to the Spear Marine Business.
(3)
The three and six months ended June 30,
2023 include certain charges related to the exit of the Spear
Marine Business and recorded in restructuring and other charges,
net, including $1.2 million of severance costs, $1.7 million
related to the write-down of property, plant, and equipment, and
$11.4 million of other charges, including contract termination
costs. The three and six months ended June 30, 2023 include $3.3
million and $10.6 million, respectively, of expense related to
compensation arrangements entered into concurrent with the closing
of certain acquisitions.
(4)
The six months ended June 30, 2024
includes a $14.8 million mark-to-market loss on an equity
investment held under the measurement alternative due to an
observable marketplace transactions.
Free cash flow
For the three months ended
June 30,
For the six months ended June
30,
($ in thousands)
2024
2023
% △
2024
2023
% △
Net cash provided by operating
activities
$
143,456
$
115,754
23.9
%
$
249,943
$
212,642
17.5
%
Additions to property, plant and equipment
and capitalized software
(45,058
)
(47,562
)
5.3
%
(87,188
)
(84,444
)
(3.2
%)
Free cash flow
$
98,398
$
68,192
44.3
%
$
162,755
$
128,198
27.0
%
Adjusted corporate and other
expenses
For the three months ended
June 30,
For the six months ended June
30,
(in thousands)
2024
2023
2024
2023
Corporate and other expenses (GAAP)
$
(93,553
)
$
(81,464
)
$
(173,856
)
$
(143,905
)
Restructuring related and other
24,268
13,110
26,835
11,681
Financing and other transaction costs
1,507
974
4,903
3,593
Step-up depreciation and amortization
253
255
504
309
Deferred gain on derivative
instruments
(102
)
(947
)
(477
)
(3,197
)
Total adjustments
25,926
13,392
31,765
12,386
Adjusted corporate and other expenses
(non-GAAP)
$
(67,627
)
$
(68,072
)
$
(142,091
)
$
(131,519
)
Adjusted EBITDA
For the three months ended
June 30,
For the six months ended June
30,
(in thousands)
LTM
2024
2023
2024
2023
Net income
$
8,287
$
71,703
$
49,111
$
147,724
$
135,528
Interest expense, net
142,382
35,061
38,105
69,718
78,196
Provision for income taxes
28,002
27,280
19,873
49,850
43,599
Depreciation expense
136,561
33,493
32,612
67,016
63,560
Amortization of intangible assets
156,123
39,085
54,563
77,600
95,337
EBITDA
471,355
206,622
194,264
411,908
416,220
Non-GAAP Adjustments
Restructuring related and other
406,673
26,804
31,078
29,198
34,019
Financing and other transaction costs
33,857
3,481
4,021
21,119
8,754
Deferred (gain)/loss on derivative
instruments
(9,732
)
(5,079
)
5,322
(6,553
)
1,173
Adjusted EBITDA
$
902,153
$
231,828
$
234,685
$
455,672
$
460,166
Net debt and leverage
As of
($ in thousands)
June 30, 2024
December 31, 2023
Current portion of long-term debt and
finance lease obligations
$
702,701
$
2,276
Finance lease obligations, less current
portion
21,964
22,949
Long-term debt, net
3,170,804
3,373,988
Total debt and finance lease
obligations
3,895,469
3,399,213
Less: discount, net of premium
(891
)
(1,568
)
Less: deferred financing costs
(28,305
)
(24,444
)
Total gross indebtedness
3,924,665
3,425,225
Adjusted EBITDA (LTM)
$
902,153
$
906,647
Gross leverage ratio
4.4
3.8
Total gross indebtedness
3,924,665
3,425,225
Less: cash and cash equivalents
1,033,052
508,104
Net debt
$
2,891,613
$
2,917,121
Adjusted EBITDA (LTM)
$
902,153
$
906,647
Net leverage ratio
3.2
3.2
Guidance
For the three months ending
September 30, 2024
($ in millions, except per share
amounts)
Operating Income
Net Income
EPS
Low
High
Low
High
Low
High
GAAP
$
115.0
$
118.3
$
49.7
$
52.4
$
0.33
$
0.34
Restructuring related and other
29.0
34.2
29.0
34.2
0.19
0.23
Financing and other transaction costs
3.0
4.0
3.0
4.0
0.02
0.03
Step-up depreciation and amortization
37.0
37.5
37.0
37.5
0.24
0.25
Deferred (gain)/loss on derivative
instruments(1)
—
—
—
—
—
—
Amortization of debt issuance costs
—
—
1.3
1.4
0.01
0.01
Deferred taxes and other tax related
—
—
4.0
4.5
0.03
0.03
Non-GAAP
$
184.0
$
194.0
$
124.0
$
134.0
$
0.82
$
0.88
Weighted-average diluted shares
outstanding (in millions)
151.5
151.5
(1)
We are unable to predict movements in
commodity prices and, therefore, the impact of mark-to-market
adjustments on our commodity forward contracts to our projected
operating results. In prior periods such adjustments have been
significant to our reported GAAP earnings.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240729879370/en/
Media & Investor Contact: investors@sensata.com
Sensata Technologies (NYSE:ST)
過去 株価チャート
から 1 2025 まで 2 2025
Sensata Technologies (NYSE:ST)
過去 株価チャート
から 2 2024 まで 2 2025
