PEMBROKE, Bermuda, Nov. 15 /PRNewswire-FirstCall/ --
($ millions, except per-share amounts)
Q4 2007 Q4 2006 % Change FY 2007 FY 2006 % Change
Revenue $5,028 $4,616 9% $18,781 $17,336 8%
Income from
Continuing
Operations $210 $326 (36%) ($2,519) $823 N/A
Diluted EPS from
Continuing
Operations $0.42 $0.64 (34%) ($5.09) $1.60 N/A
Special Items ($0.15) $0.17 ($7.02) $0.00
Income from
Continuing Ops
Before Special
Items $285 $238 20% $964 $824 17%
Diluted EPS from
Continuing Ops
Before Special
Items $0.57 $0.47 21% $1.93 $1.60 21%
-- Company records revenue growth of 9% with organic revenue growth of
5.4%
-- Company has strong cash flow quarter
-- Company began repurchasing shares during the quarter in connection with
previously-announced $1 billion share repurchase program
-- Results adversely impacted by higher tax rate
Tyco International Ltd. (NYSE: TYC; BSX: TYC) today reported $0.42 in
diluted GAAP earnings per share (EPS) from continuing operations and
diluted EPS from continuing operations of $0.57 before special items for
the fiscal fourth quarter of 2007. Diluted GAAP EPS from continuing
operations was negatively impacted by special items which totaled $0.15 per
share, consisting primarily of restructuring and separation-related costs.
The GAAP tax rate of approximately 40% for the fourth quarter was
negatively impacted by approximately 5 percentage points by the special
items. Revenue in the quarter increased 9% versus the prior year to $5.0
billion, with organic revenue growth of 5.4%. Diluted EPS from continuing
operations before special items increased 21% in the quarter.
Cash from operating activities was $1.015 billion in the quarter. The
company had free cash flow of $690 million which was reduced by $67 million
in separation and restructuring charges. For the fiscal year 2007, cash
from operating activities was $1.8 billion and free cash flow of $801
million was reduced by $322 million consisting of: $295 million for certain
legacy tax items, $93 million of separation-related costs and $70 million
of restructuring-related payments offset by cash proceeds of $136 million
of restitution payments from former executives.
Tyco Chairman and Chief Executive Officer Ed Breen said, "Our results
for the fourth quarter and the full year reflect good revenue growth,
improved operating performance and strong cash flow. We had a good finish
to the year and made progress on a number of key initiatives that we expect
to drive solid earnings growth in 2008."
Organic revenue growth, free cash flow, operating income before special
items, operating margin before special items, income from continuing
operations before special items and EPS from continuing operations before
special items are all non-GAAP financial measures and are described below.
For a reconciliation of these non-GAAP measures, see the attached tables.
Additional schedules can be found at http://www.tyco.com on the Investor Relations
portion of Tyco's Website.
SEGMENT RESULTS
The financial results presented in the tables below are in accordance with
GAAP unless otherwise indicated. All dollar amounts are pre-tax and stated in
millions. All comparisons are to the quarter ended September 29, 2006 unless
otherwise indicated.
ADT Worldwide
Q4 2007 Q4 2006 % Change FY 2007 FY 2006 % Change
Revenue $1,989 $1,872 6% $7,648 $7,205 6%
Operating Income $241 $249 (3%) $842 $907 (7%)
Operating Margin 12.1% 13.3% 11.0% 12.6%
Special Items ($16) -- ($129) ($2)
Operating Income
Before Special
Items $257 $249 3% $971 $909 7%
Operating Margin
Before Special
Items 12.9% 13.3% 12.7% 12.6%
ADT Worldwide designs, sells, installs, services and monitors
electronic security systems to residential, commercial, industrial and
governmental customers. Revenue increased 6% in the fourth quarter with
organic revenue growth of 3%. Geographically, North America had organic
revenue growth of 3%, the Europe, Middle East, and Africa region grew 2%
and Asia grew 14%.
Operating income was $241 million in the quarter and the operating
margin was 12.1%. Special items in the quarter consisted of $16 million of
restructuring charges incurred primarily in Europe. Before special items,
operating income increased 3% to $257 million and the operating margin
before special items was 12.9%. Operating income before special items
included expenses of $10 million to convert certain North American
customers to digital services in advance of the February 2008
analog-to-digital transition for wireless phone services; and $7 million
related to a legal matter.
For the full year, revenue increased 6% with organic revenue growth of
4%. Operating income was $842 million and the operating margin was 11.0%.
Before special items, operating income increased 7% to $971 million and the
operating margin before special items was 12.7%.
Fire Protection Services
Q4 2007 Q4 2006 % Change FY 2007 FY 2006 % Change
Revenue $944 $895 5% $3,506 $3,281 7%
Operating Income $82 $94 (13%) $253 $239 6%
Operating Margin 8.7% 10.5% 7.2% 7.3%
Special Items ($8) $1 ($34) $1
Operating Income
Before Special
Items $90 $93 (3%) $287 $238 21%
Operating Margin
Before Special
Items 9.5% 10.4% 8.2% 7.3%
Fire Protection Services designs, sells, installs and services fire
detection and fire suppression systems to commercial, industrial and
governmental customers. Revenue increased 5% to a quarterly sales record of
$944 million. The fiscal fourth quarter is traditionally the strongest
quarter of the year for this business due to higher levels of service and
installation activity during the summer months. Organic revenue growth in
the quarter was 2% with relatively similar growth rates across the North
American SimplexGrinnell business and the international fire businesses.
Operating income was $82 million and the operating margin was 8.7%.
Special items in the quarter consisted of $8 million in restructuring
charges. Before special items, the operating income was $90 million and the
operating margin was 9.5%.
For the full year, revenue increased 7% to $3.5 billion with organic
revenue growth of 5%. Operating income was $253 million for the full year and
the operating margin was 7.2%. Operating income before special items
increased 21% to $287 million and the operating margin before special items
improved 90 basis points to 8.2% driven by strong performance in the
SimplexGrinnell business.
Flow Control
Q4 2007 Q4 2006 % Change FY 2007 FY 2006 % Change
Revenue $1,071 $871 23% $3,766 $3,135 20%
Operating Income $123 $111 11% $457 $356 28%
Operating Margin 11.5% 12.7% 12.1% 11.4%
Special Items ($12) -- ($29) --
Operating Income
Before Special
Items $135 $111 22% $486 $356 37%
Operating Margin
Before Special
Items 12.6% 12.7% 12.9% 11.4%
Flow Control designs, manufactures, sells and services valves, pipes,
fittings, valve automation and heat tracing products for the water and
wastewater markets, the energy markets and other process industries.
Revenue increased 23% in the quarter with organic revenue growth of 16%
driven by strong double digit growth across all businesses including
industrial valves, water and thermal controls.
Operating income was $123 million and the operating margin was 11.5%.
Special items in the quarter consisted of $12 million in restructuring
charges. Operating income before special items increased 22% to $135
million, led by the valves business in Europe and the Australian water
business.
For the full year, revenue increased 20% to $3.8 billion, with organic
revenue growth of 14%. Operating income was $457 million and the operating
margin was 12.1%. Operating income before special items increased 37% to $486
million while the operating margin before special items improved 150 basis
points for the full year to 12.9% due to higher volume and productivity
improvements.
Safety Products
Q4 2007 Q4 2006 % Change FY 2007 FY 2006 % Change
Revenue $459 $433 6% $1,767 $1,675 6%
Operating Income $69 $80 (14%) $286 $202 42%
Operating Margin 15.0% 18.5% 16.2% 12.1%
Special Items ($19) -- ( $39) ($100)
Operating Income
Before Special
Items $88 $80 10% $325 $302 8%
Operating Margin
Before Special
Items 19.2% 18.5% 18.4% 18.0%
Safety Products designs, manufactures and sells fire protection,
security and life safety products including fire suppression products,
breathing apparatus, intrusion security, access control and video
management systems. Revenue increased 6% in the quarter with organic
revenue growth of 3% led by fire suppression, video and access control
products.
Operating income was $69 million and the operating margin was 15.0%.
Special items in the quarter consisted of two items: $9 million in
restructuring and impairment charges and $10 million of charges to conclude
a voluntary replacement program (VRP) initiated in 2001 for the replacement
of certain fire sprinkler heads. The deadline for submitting claims under
the VRP expired during the quarter. Operating income before special items
increased 10% due to higher volumes and better productivity.
For the full year, revenue increased 6% to $1.8 billion with organic
revenue growth of 3%. Strong revenue growth in fire suppression, video and
access control products was partially offset by lower revenue in life
safety. Operating income was $286 million and the operating margin was
16.2%. Operating income before special items was $325 million and the
operating margin before special items was 18.4%.
Electrical and Metal Products
Q4 2007 Q4 2006 % Change FY 2007 FY 2006 % Change
Revenue $533 $521 2% $1,974 $1,949 1%
Operating Income $45 $82 (45%) $159 $319 (50%)
Operating Margin 8.4% 15.7% 8.1% 16.4%
Special Items ($7) -- ($7)
Operating Income
Before Special
Items $52 $82 (37%) $166 $319 (48%)
Operating Margin
Before Special
Items 9.8% 15.7% 8.4% 16.4%
Electrical and Metal Products designs, manufactures and sells steel
tubing and pipe products, pre-wired armored cable and flexible conduit
products for commercial construction. Revenue increased 2% in the quarter
with better volume for steel tubular products partially offset by lower
steel and copper spreads year over year.
Operating income was $45 million. Special items in the quarter
consisted of $7 million in restructuring charges. Operating income before
special items of $52 million was lower year over year, but higher on a
quarter sequential basis.
For the full year, revenue increased 1% to $2 billion and was
essentially flat organically. Operating income was $159 million and the
operating margin was 8.1%. The operating margin before special items was
8.4%. Operating income before special items declined 48% or $153 million to
$166 million due to lower steel and copper spreads.
OTHER ITEMS
-- Corporate and Other expense was $158 million in the quarter and
included $28 million of net charges primarily for restructuring and
separation. Revenue from operations in Corporate and Other was $32
million in the quarter and operating income for these businesses was $5
million.
-- Charges related to Tyco's previously-announced restructuring program
totaled $60 million in the fourth quarter and $217 million for full
year 2007.
-- Beginning this quarter, the results of the Infrastructure Services
business are classified as discontinued operations as Tyco pursues the
sale of this business. As previously announced, the company reached an
agreement to sell the Brazilian operation of the Infrastructure
Services business for approximately $300 million. The Infrastructure
Services business had operating income of $14 million for the quarter
and $53 million for the full year.
-- Special items of $0.15 per share in the quarter consisted of charges of
$0.08 for restructuring and impairment activities, $0.08 for separation
expenses, and $0.01 for the VRP program, partially offset by a benefit
of $0.02 for an insurance recovery related to the class action
settlement. Special items of $0.17 per share in the fourth quarter of
2006 consisted of income of $0.14 from an insurance related settlement
with a former executive and income of $0.06 from a reduction in
estimated workers' compensation liabilities, partially offset by a
charge of $0.03 for separation expenses.
Management will discuss the company's outlook for the fiscal first
quarter and full year 2008 during a conference call today beginning at 8:30
a.m. EST.
ABOUT TYCO INTERNATIONAL
Tyco International (NYSE: TYC) is a diversified, global company that
provides vital products and services to customers in more than 60
countries. Tyco is a leading provider of security products and services,
fire protection and detection products and services, valves and controls,
and other industrial products. Tyco completed the spin-off of its
healthcare and electronics businesses on June 29, 2007. More information on
Tyco can be found at http://www.tyco.com.
CONFERENCE CALL AND WEBCAST
Today's conference call for investors can be accessed in three ways:
-- At Tyco's Website: http://investors.tyco.com.
-- By telephone: For both "listen-only" participants and those
participants who wish to take part in the question-and-answer portion
of the call, the telephone dial-in number in the United States is (800)
230-1092. The telephone dial-in number for participants outside the
United States is (612) 332-0107.
-- An audio replay of the conference call will be available beginning at
12:00 p.m. on November 15, 2007 and ending at 11:59 p.m. on November
23, 2007. The dial-in number for participants in the United States is
(800) 475-6701. For participants outside the United States, the replay
dial-in number is (320) 365-3844. The replay access code for all
callers is 890559.
NON-GAAP MEASURES
"Organic revenue growth," "free cash flow" (FCF), "operating income
before special items", "earnings per share (EPS) from continuing
operations" and "operating margin before special items" are non-GAAP
measures and should not be considered replacements for GAAP results.
Organic revenue growth is a useful measure used by the company to
measure the underlying results and trends in the business. The difference
between reported net revenue growth (the most comparable GAAP measure) and
organic revenue growth (the non-GAAP measure) consists of the impact from
foreign currency, acquisitions and divestitures, and other changes that do
not reflect the underlying results and trends (for example, revenue
reclassifications and changes to the fiscal year). Organic revenue growth
is a useful measure of the company's performance because it excludes items
that: i) are not completely under management's control, such as the impact
of foreign currency exchange; or ii) do not reflect the underlying growth
of the company, such as acquisition and divestiture activity. It may be
used as a component of the company's compensation programs. The limitation
of this measure is that it excludes items that have an impact on the
company's revenue. This limitation is best addressed by using organic
revenue growth in combination with the GAAP numbers. See the accompanying
tables to this press release for the reconciliation presenting the
components of organic revenue growth.
FCF is a useful measure of the company's cash which is free from any
significant existing obligation. The difference between cash flows from
operating activities (the most comparable GAAP measure) and FCF (the
non-GAAP measure) consists mainly of significant cash outflows that the
company believes are useful to identify. FCF permits management and
investors to gain insight into the number that management employs to
measure cash that is free from any significant existing obligation. It is
also a significant component in the company's incentive compensation plans.
The difference reflects the impact from:
-- the sale of accounts receivable programs,
-- net capital expenditures,
-- acquisition of customer accounts (ADT dealer program),
-- cash paid for purchase accounting and holdback liabilities, and
-- voluntary pension contributions.
The impact from the sale of accounts receivable programs and voluntary
pension contributions is added or subtracted from the GAAP measure because
this activity is driven by economic financing decisions rather than
operating activity. Capital expenditures and the ADT dealer program are
subtracted because they represent long-term commitments. Cash paid for
purchase accounting and holdback liabilities is subtracted from Cash Flow
from Operating Activities because these cash outflows are not available for
general corporate uses.
The limitation associated with using FCF is that it subtracts cash
items that are ultimately within management's and the Board of Directors'
discretion to direct and that therefore may imply that there is less or
more cash that is available for the company's programs than the most
comparable GAAP measure. This limitation is best addressed by using FCF in
combination with the GAAP cash flow numbers.
FCF as presented herein may not be comparable to similarly titled
measures reported by other companies. The measure should be used in
conjunction with other GAAP financial measures. Investors are urged to read
the company's financial statements as filed with the Securities and
Exchange Commission, as well as the accompanying tables to this press
release that show all the elements of the GAAP measures of Cash Flows from
Operating Activities, Cash Flows from Investing Activities, Cash Flows from
Financing Activities and a reconciliation of the company's total cash and
cash equivalents for the period. See the accompanying tables to this press
release for a cash flow statement presented in accordance with GAAP and a
reconciliation presenting the components of FCF.
The company has presented and forecast its operating income, income
from continuing operations before special items, EPS and operating margin
before special items. Special Items include charges and gains related to
divestitures, acquisitions, restructurings (including transaction costs
related to the separations of Tyco Electronics and Covidien into separate
public companies), and other income or charges that may mask the underlying
operating results and/or business trends of the company or business
segment, as applicable. The company utilizes operating income, EPS and
operating margin before special items to assess overall operating
performance, segment level core operating performance and to provide
insight to management in evaluating overall and segment operating plan
execution and underlying market conditions. They are also significant
components in the company's incentive compensation plans. Operating income,
EPS and operating margin before special items are useful measures for
investors because they permit more meaningful comparisons of the company's
underlying operating results and business trends between periods. EPS
before special items does not reflect any additional adjustments that are
not reflected in operating income before special items. The difference
between operating income and operating margin before special items and
operating income and operating margin (the most comparable GAAP measures)
consists of the impact of charges and gains related to divestitures,
acquisitions, restructurings (including transaction costs related to the
separations of Tyco Electronics and Covidien into separate public
companies), and other income or charges that may mask the underlying
operating results and/or business trends. The limitation of these measures
is that they exclude the impact (which may be material) of items that
increase or decrease the company's reported operating income, EPS and
operating margin. This limitation is best addressed by using operating
income and operating margin before special items in combination with the
most comparable GAAP measures in order to better understand the amounts,
character and impact of any increase or decrease on reported results.
The company presents its operating income, EPS and operating margin
forecast before special items to give investors a perspective on the
underlying business results. Because the company often cannot predict the
amount and timing of unusual or special items and associated charges or
gains that may be recorded in the company's financial statements, it does
not present forecasts that include the impact of those items. See the
accompanying tables to this press release for the reconciliation presenting
the components of operating income before special items.
FORWARD-LOOKING STATEMENTS
This release may contain certain "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act
of 1995. These statements are based on management's current expectations
and are subject to risks, uncertainty and changes in circumstances, which
may cause actual results, performance or achievements to differ materially
from anticipated results, performance or achievements. All statements
contained herein that are not clearly historical in nature are
forward-looking and the words "anticipate," "believe," "expect,"
"estimate," "plan," and similar expressions are generally intended to
identify forward-looking statements. The forward-looking statements in this
release include statements addressing the following subjects: future
financial condition and operating results. Economic, business, competitive
and/or regulatory factors affecting Tyco's businesses are examples of
factors, among others, that could cause actual results to differ materially
from those described in the forward-looking statements. Tyco is under no
obligation to (and expressly disclaims any such obligation to) update or
alter its forward-looking statements whether as a result of new
information, future events or otherwise. More detailed information about
these and other factors is set forth in Tyco's Annual Report on Form 10-K/A
for the fiscal year ended Sept. 29, 2006 and Quarterly Report on Form 10-Q
for the quarterly period ended June 29, 2007.
TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
(Unaudited)
Quarter Ended Twelve Months Ended
September September September September
28, 2007 29, 2006 28, 2007 29, 2006
Net revenue $5,028 $4,616 $18,781 $17,336
Cost of sales 3,329 3,024 12,441 11,427
Selling, general and
administrative expenses 1,234 1,039 4,828 4,475
Class action settlement, net (13) -- 2,862 --
Separation costs 20 17 105 49
Goodwill impairment -- -- 46 --
Restructuring, asset
impairment and divestiture
charges (credits), net 56 (1) 214 15
Operating income (loss) 402 537 (1,715) 1,370
Interest income 50 12 102 43
Interest expense (105) (66) (313) (279)
Other expense, net 2 -- (255) --
Income (loss) from
continuing operations
before income taxes
and minority interest 349 483 (2,181) 1,134
Income taxes (138) (156) (334) (310)
Minority interest (1) (1) (4) (1)
Income (loss) from
continuing operations 210 326 (2,519) 823
(Loss) income from
discontinued operations,
net of income taxes (29) 922 777 2,781
Income (loss) before
cumulative effect of
accounting change 181 1,248 (1,742) 3,604
Cumulative effect of
accounting change, net of
income taxes -- -- -- (14)
Net income (loss) $181 $1,248 $(1,742) $3,590
Basic earnings per common
share:
Income (loss) from
continuing operations $0.42 $0.65 $(5.09) $1.64
(Loss) income from
discontinued
operations (0.06) 1.85 1.57 5.53
Cumulative effect of
accounting change -- -- -- (0.03)
Net income (loss) $0.36 $2.50 $(3.52) $7.14
Diluted earnings per common
share:
Income (loss) from
continuing operations $0.42 $0.64 $(5.09) $1.60
(Loss) income from
discontinued
operations (0.06) 1.81 1.57 5.38
Cumulative effect of
accounting change -- -- -- (0.03)
Net income (loss) $0.36 $2.45 $(3.52) $6.95
Weighted-average number
of shares outstanding:
Basic 496 499 495 503
Diluted 500 511 495 521
Income Reconciliation for
Diluted EPS:
Income (loss) from
continuing operations $210 $326 $(2,519) $823
Add back of interest
expense for
convertible debt -- 2 -- 12
Income (loss) from
continuing operations,
giving effect to
dilutive adjustments 210 328 (2,519) 835
(Loss) income from
discontinued
operations (29) 922 777 2,781
Add back of interest
expense for convertible
debt -- 3 -- 19
Cumulative effect of
accounting change -- -- -- (14)
Net income (loss),
giving effect to
dilutive adjustments $181 $1,253 $(1,742) $3,621
NOTE: These financial statements should be read in conjunction with the
Consolidated Financial Statements and accompanying notes contained
in the Company's Annual Report on Form 10-K/A for the fiscal year
ended September 29, 2006, Quarterly Report on Form 10-Q/A for the
quarterly period ended December 29, 2006, Quarterly Report on Form
10-Q for the quarterly period ended March 30, 2007, and Quarterly
Report on Form 10-Q for the quarterly period ended June 29, 2007.
TYCO INTERNATIONAL LTD.
RESULTS OF SEGMENTS
(in millions)
(Unaudited)
Quarter Ended
September 28, September 29,
2007 2006
NET REVENUE
ADT Worldwide $1,989 $1,872
Fire Protection Services 944 895
Flow Control 1,071 871
Safety Products 459 433
Electrical and Metal
Products 533 521
Corporate and Other(1) 32 24
Total Net Revenue $5,028 $4,616
OPERATING INCOME (LOSS) AND MARGIN
ADT Worldwide $241 12.1% $249 13.3%
Fire Protection Services 82 8.7% 94 10.5%
Flow Control 123 11.5% 111 12.7%
Safety Products 69 15.0% 80 18.5%
Electrical and Metal
Products 45 8.4% 82 15.7%
Corporate and Other(2) (158) N/M (79) N/M
Operating Income
(Loss) and Margin $402 8.0% $537 11.6%
Twelve Months Ended
September 28, September 29,
2007 2006
NET REVENUE
ADT Worldwide $7,648 $7,205
Fire Protection Services 3,506 3,281
Flow Control 3,766 3,135
Safety Products 1,767 1,675
Electrical and Metal
Products 1,974 1,949
Corporate and Other(1) 120 91
Total Net Revenue $18,781 $17,336
OPERATING INCOME (LOSS)
AND MARGIN
ADT Worldwide $842 11.0% $907 12.6%
Fire Protection Services 253 7.2% 239 7.3%
Flow Control 457 12.1% 356 11.4%
Safety Products 286 16.2% 202 12.1%
Electrical and Metal
Products 159 8.1% 319 16.4%
Corporate and Other(2) (3,712) N/M (653) N/M
Operating Income
(Loss) and Margin $(1,715) -9.1% $1,370 7.9%
(1) Revenue related to certain international building products businesses.
(2) Includes operating income of $5 million for both the quarter ended
September 28, 2007 and September 29, 2006, primarily related to
certain international building products businesses. Includes
operating income of $24 million and $18 million for the twelve months
ended September 28, 2007 and September 29, 2006, respectively,
primarily related to certain international building products
businesses.
TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
September 28, September 29,
2007 2006
Current Assets:
Cash and cash equivalents $1,894 $2,193
Accounts receivable, net 3,010 2,748
Inventories 1,835 1,619
Class action settlement escrow 2,992 --
Other current assets 1,645 1,787
Assets of discontinued operations 969 34,224
Total current assets 12,345 42,571
Property, plant and equipment, net 3,556 3,501
Goodwill 11,691 11,293
Intangible assets, net 2,697 2,730
Other assets 2,526 2,916
Total Assets $32,815 $63,011
Current Liabilities:
Short-term debt and current
maturities of long-term debt $380 $771
Accounts payable 1,715 1,557
Class action settlement liability 2,992 --
Accrued and other current liabilities 3,505 3,488
Liabilities of discontinued operations 509 7,997
Total current liabilities 9,101 13,813
Long-term debt 4,076 8,853
Other liabilities 3,947 4,904
Total Liabilities 17,124 27,570
Minority interest 67 54
Shareholders' equity 15,624 35,387
Total Liabilities and Shareholders' Equity $32,815 $63,011
NOTE: These financial statements should be read in conjunction with the
Consolidated Financial Statements and accompanying notes contained
in the Company's Annual Report on Form 10-K/A for the fiscal year
ended September 29, 2006, Quarterly Report on Form 10-Q/A for the
quarterly period ended December 29, 2006, Quarterly Report on Form
10-Q for the quarterly period ended March 30, 2007 and Quarterly
Report on Form 10-Q for the quarterly period ended June 29, 2007.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Quarter Ended Twelve Months Ended
September September September September
28, 2007 29, 2006 28, 2007 29, 2006
Cash Flows from Operating
Activities:
Net income (loss) $181 $1,248 $(1,742) $3,590
Loss (income) from
discontinued operations 29 (922) (777) (2,781)
Cumulative effect of
accounting change -- -- -- 14
Income (loss) from continuing
operations 210 326 (2,519) 823
Adjustments to reconcile net
cash provided by operating
activities:
Depreciation and amortization 282 294 1,151 1,182
Non-cash compensation expense 52 38 173 151
Deferred income taxes 62 (321) (11) (414)
Provision for losses on accounts
receivable and inventory 32 23 94 56
Loss on the retirement of debt -- -- 259 1
Goodwill impairment -- -- 46 --
Non-cash restructuring, asset
impairment and divestiture
charges (credits), net 8 (1) 28 4
Other non-cash items 13 (67) 28 (36)
Changes in assets and
liabilities, net of
the effects of acquisitions
and divestitures:
Accounts receivable, net 82 (22) (128) (151)
Inventories 103 63 (166) (106)
Accounts payable 144 199 54 172
Accrued and other
liabilities 147 48 (56) (166)
Income taxes, net (19) 399 (244) 408
Class action settlement
liability -- -- 2,992 --
Other (101) 82 135 69
Net cash provided by operating
activities 1,015 1,061 1,836 1,993
Net cash provided by
discontinued operating
activities (6) 1,345 2,475 3,574
Cash Flows from Investing
Activities:
Capital expenditures (194) (162) (669) (558)
Proceeds from disposal of
assets 9 23 23 39
Acquisition of businesses,
net of cash acquired (5) (3) (31) (5)
Acquisition of customer
accounts (ADT dealer
program) (136) (107) (409) (373)
Divestiture of businesses,
net of cash retained 2 5 8 11
Liquidation of rabbi trust
investments -- -- 271 --
(Increase) decrease in
investments (2) (3) 4 58
(Increase) decrease in
restricted cash (1) (1) 5 20
Class action settlement escrow -- -- (2,960) --
Other (4) (10) 14 (20)
Net cash (used in) provided by
investing activities (331) (258) (3,744) (828)
Net cash used in discontinued
investing activities (17) (571) (805) (599)
Cash Flows from Financing
Activities:
Net repayments of debt (2) (9) (5,928) (1,090)
Proceeds from exercise of
share options 18 45 406 249
Dividends paid -- (201) (791) (806)
Repurchase of common shares
by subsidiary (59) (626) (727) (2,544)
Transfers (to) from
discontinued operations (79) 610 8,567 2,429
Other (9) (2) 12 (10)
Net cash (used in) provided by
financing activities (131) (183) 1,539 (1,772)
Net cash provided by (used in)
discontinued financing
activities 79 (615) (932) (2,687)
Effect of currency translation
on cash 31 11 70 21
Effect of currency translation on
cash of discontinued operations -- 14 33 21
Net increase (decrease) in cash
and cash equivalents 640 804 472 (277)
Less: net increase in cash
related to discontinued
operations (56) (173) (771) (309)
Cash and cash equivalents at
beginning of period 1,310 1,562 2,193 2,779
Cash and cash equivalents at
end of period $1,894 $2,193 $1,894 $2,193
Reconciliation to "Free Cash
Flow":
Net cash provided by operating
activities $1,015 $1,061 $1,836 $1,993
Decrease in sale of accounts
receivable 1 1 7 8
Capital expenditures, net (185) (139) (646) (519)
Acquisition of customer
accounts (ADT dealer program) (136) (107) (409) (373)
Purchase accounting and holdback
liabilities (5) (1) (10) (7)
Voluntary pension contributions -- -- 23 --
Free Cash Flow $690 $815 $801 $1,102
NOTE: Free cash flow is a non-GAAP measure. See description of non-GAAP
measures contained in this release.
TYCO INTERNATIONAL LTD.
ORGANIC REVENUE GROWTH RECONCILIATION
(in millions)
(Unaudited)
Quarter Ended September 28, 2007
Foreign Acquisition /
Net Revenue Currency Divestiture
ADT Worldwide $1,989 6.3% $63 3.4% $3 0.2%
Fire Protection Services 944 5.5% 31 3.5% (3) -0.3%
Flow Control 1,071 23.0% 65 7.5% (6) -0.7%
Safety Products 459 6.0% 16 3.7% (2) -0.5%
Electrical and Metal Products 533 2.3% 7 1.3% -- 0.0%
Corporate and Other 32 33.3% 2 8.3% -- 0.0%
Total Net Revenue $5,028 8.9% $184 4.0% $(8) -0.3%
Net Revenue
for the
Organic Quarter Ended
Revenue September
Other Growth 29, 2006
ADT Worldwide $(11) -0.6% $62 3.3% $1,872
Fire Protection Services -- 0.0% 21 2.3% 895
Flow Control -- 0.0% 141 16.2% 871
Safety Products -- 0.0% 12 2.8% 433
Electrical and Metal Products -- 0.0% 5 1.0% 521
Corporate and Other -- 0.0% 6 25.0% 24
Total Net Revenue $(11) -0.2% $247 5.4% $4,616
Twelve Months Ended September 28, 2007
Foreign Acquisition /
Net Revenue Currency Divestiture
ADT Worldwide $7,648 6.1% $213 3.0% $(3) -0.2%
Fire Protection Services 3,506 6.9% 99 3.0% (30) -0.9%
Flow Control 3,766 20.1% 197 6.3% (16) -0.6%
Safety Products 1,767 5.5% 48 2.9% -- 0.0%
Electrical and Metal Products 1,974 1.3% 20 1.0% 1 0.1%
Corporate and Other 120 31.9% 9 9.9% -- 0.0%
Total Net Revenue $18,781 8.3% $586 3.4% $(48) -0.4%
Net Revenue
for the
Twelve Months
Organic Ended
Revenue September
Other Growth 29, 2006
ADT Worldwide $(21) -0.2% $254 3.5% $7,205
Fire Protection Services -- 0.0% 156 4.8% 3,281
Flow Control -- 0.0% 450 14.4% 3,135
Safety Products -- 0.0% 44 2.6% 1,675
Electrical and Metal Products -- 0.0% 4 0.2% 1,949
Corporate and Other -- 0.0% 20 22.0% 91
Total Net Revenue $(21) -0.1% $928 5.4% $17,336
NOTE: Organic revenue growth is a non-GAAP measure. See description of
non-GAAP measures contained in this release.
TYCO INTERNATIONAL LTD.
DEBT RECONCILIATION
(in millions)
(Unaudited)
Quarter Ended Twelve Months Ended
September 28, 2007 September 28, 2007
Total debt at beginning of period $4,456 $9,624
Net debt repayments (2) (5,928)
Currency translation 1 118
Other 1 642
Total debt at end of period $4,456 $4,456
Tyco International Ltd.
Earnings Per Share Summary
Quarter Ended Year Ended
Dec. 30, March 31, June 30, Sept. 29, Sept. 29,
2005 2006 2006 2006 2006
Diluted EPS from
Continuing
Operations $0.29 $0.37 $0.31 $0.64 $1.60
Restructuring
charges in cost
of sales -- -- -- -- --
Class action
settlement, net -- -- -- -- --
Separation costs -- 0.02 0.03 0.03 0.07
Losses on
divestitures 0.01 (0.01) 0.00 -- 0.01
Restructuring and
asset impairment
charges, net -- -- -- -- --
Goodwill impairment -- -- -- -- --
Tax Items -- -- -- -- --
Reduction in estimated
workers' compensation
liabilities -- -- -- (0.06) (0.06)
Voluntary Replacement
Program -- -- 0.12 -- 0.12
Former Management
Settlement -- -- -- (0.14) (0.14)
Diluted EPS from
Continuing
Operations Before
Special Items $0.30 $0.38 $0.46 $0.47 $1.60
Quarter Ended Year Ended
Dec. 30, March 30, June 29, Sept. 28, Sept. 28,
2006 2007 2007 2007 2007
Diluted EPS from
Continuing
Operations $0.33 $0.31 ($6.16) $0.42 ($5.09)
Restructuring
charges in
cost of sales -- 0.00 0.00 0.01 0.01
Class action
settlement,
net -- -- 5.83 (0.02) 5.81
Separation
costs 0.07 0.10 0.69 0.08 0.93
Losses on
divestitures -- 0.00 0.00 -- 0.01
Restructuring
and asset
impairment
charges, net 0.10 0.05 0.07 0.07 0.28
Goodwill
impairment -- -- 0.09 -- 0.09
Tax Items -- (0.12) -- -- (0.12)
Reduction in
estimated
workers'
compensation
liabilities
Voluntary
Replacement
Program -- -- -- 0.01 0.01
Former
Management
Settlement -- -- -- -- --
Diluted EPS
from Continuing
Operations
Before
Special Items $0.50 $0.34 $0.52 $0.57 $1.93
SOURCE Tyco International Ltd.
 back to top
Related links:
http://www.tyco.com
CONTACT:
Media, Paul Fitzhenry, +1-609-720-4621, or
Investor Relations, Ed Arditte, +1-609-720-4621, or Karen Chin,
609-720-4398, all of Tyco International Ltd.
|
