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Press release from PR Newswire

Tyco Reports Second Quarter 2013 Earnings From Continuing Operations Before Special Items of $0.42 Per Share and GAAP Earnings of $0.16 Per Share

Friday, April 26, 2013

Tyco Reports Second Quarter 2013 Earnings From Continuing Operations Before Special Items of $0.42 Per Share and GAAP Earnings of $0.16 Per Share

06:00 EDT Friday, April 26, 2013

SCHAFFHAUSEN, Switzerland, April 26, 2013 /PRNewswire/ --

  • Company reports second quarter revenue of $2.6 billion, with 3% revenue growth and 2% organic growth
  • Segment operating margin before special items improves 90 basis points on a normalized basis*
  • GAAP income from continuing operations of $74 million includes $124 million of charges related to special items
  • Diluted EPS from continuing operations before special items increases 20% over normalized second quarter 2012 results*
  • Company completes $150 million of share buybacks, announces two acquisitions, and reaches definitive agreement to divest North America guarding business

 

(Income and EPS amounts are attributable to Tyco common shareholders)

($ millions, except per-share amounts)

Q2 2013

Q2 2012

% Change

Revenue

$2,608

$2,542

3%

Segment Operating Income

$185

$276

(33)%

Operating Income

$123

$228

(46)%

Income from Continuing Operations

$74

$134

(45)%

Diluted EPS from Continuing Operations

$0.16

$0.29

(45)%

Special Items

$(0.26)

$(0.01)

Segment Operating Income Before Special Items

$321

$300

7%

Income from Continuing Ops Before Special Items

$198

$141

40%

Diluted EPS from Continuing Ops Before Special Items

$0.42

$0.30

40%

*Normalized second quarter 2012 results reflect pro forma adjustments to corporate and interest expense to reflect the impact of the separation, and include dis-synergy costs associated with the separation of the Company's North American security operations from ADT.  See Non-GAAP reconciliations.

Tyco (NYSE: TYC) today reported $0.16 in GAAP diluted earnings per share (EPS) from continuing operations for the fiscal second quarter of 2013 and diluted EPS from continuing operations before special items of $0.42. Revenue in the quarter increased 3% versus the prior year to $2.6 billion. Organic revenue grew 2% in the quarter with 7% growth in products, 3% growth in service and a 3% decline in installation revenue.

Income from continuing operations in the second quarter was negatively impacted by special items totaling $124 million after-tax or $0.26 per share, of which $0.12 was related to a legacy environmental matter at a Global Products facility in Marinette, Wisconsin. Due to unanticipated results from treatability studies completed in the fiscal second quarter of 2013, additional environmental reserves were recorded for this site primarily related to expanded treatment and offsite disposal of contaminated river sediment that will be required. The remaining special items were primarily related to separation and restructuring.

"Tyco delivered a solid quarter operationally with accelerated service growth and operating margin expansion, driving a 20% year-over-year increase in normalized earnings per share," said Tyco Chief Executive Officer George Oliver.  "Our financial performance and strong balance sheet provides us with the flexibility to continue to fund our organic and inorganic growth initiatives while returning capital to shareholders."

"During the quarter we announced two acquisitions that strengthen our position in core platforms by broadening our product and service offerings to customers. First City Care expands our security offerings in the banking vertical and National Fire Solutions Group complements our existing position in the Australian fire protection market.  During the quarter, we also continued to return capital to shareholders by repurchasing $150 million of shares under the existing $750 million share repurchase authority."

Organic revenue, free cash flow, operating income, segment operating income, and diluted and normalized EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as second quarter review slides can be found at 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 fiscal second quarter of 2012 unless otherwise indicated.

North America Systems Installation & Services

Q2 2013

Q2 2012

% Change

Revenue

$953

$953

-

Operating Income

$79

$85

(7)%

Operation Margin

8.3%

8.9%

Special Items

$(25)

$(7)

Operating Income Before Special Items

$104

$92

13%

Operating Margin Before Special Items

10.9%

9.7%

Revenue of $953 million included service growth of 2% and an installation decline of 3% year-over-year. Backlog of $2.5 billion increased 2% on a quarter sequential basis, excluding the impact of foreign currency. Sequentially, the dollar value of installation orders has stabilized and service orders have accelerated.

Operating income for the quarter was $79 million and the operating margin was 8.3%. Special items of $25 million consisted primarily of separation and restructuring charges. Operating income before special items was $104 million and the operating margin improved 120 basis points to 10.9%. This year-over-year margin improvement was driven by a higher mix of service revenue, improved execution in installation, and productivity benefits, partly offset by dis-synergy costs associated with the separation of our North America commercial security business, Tyco Integrated Security, from ADT.

Rest of World Systems Installation & Services

Q2 2013

Q2 2012

% Change

Revenue

$1,077

$1,070

1%

Operating Income

$106

$105

1%

Operation Margin

9.8%

9.8%

Special Items

$(14)

$(14)

Operating Income Before Special Items

$120

$119

1%

Operating Margin Before Special Items

11.1%

11.1%

Revenue of $1.1 billion increased 1% in the quarter. Service revenue increased 5% and installation revenue declined 4% for total organic growth of 1%. A 1% benefit from acquisitions was offset by the negative impact of foreign currency. Backlog of $2.6 billion increased 5% on a quarter sequential basis, excluding the impact of foreign currency.

Operating income for the quarter was $106 million and the operating margin was 9.8%. Special items of $14 million consisted primarily of restructuring charges. Operating income before special items was $120 million, and the operating margin was 11.1%.

Global Products

Q2 2013

Q2 2012

% Change

Revenue

$578

$519

11%

Operating Income

$-

$86

(100)%

Operation Margin

-%

16.6%

Special Items

$(97)

$(3)

Operating Income Before Special Items

$97

$89

9%

Operating Margin Before Special Items

16.8%

17.1%

Revenue of $578 million increased 11% in the quarter, including a 3% benefit due to acquisitions. Organic revenue grew 7% with growth across all three product platforms.

Operating income includes the $94 million pre-tax environmental charge noted above. Additional special items in the quarter of $3 million consisted primarily of restructuring charges. Operating income before special items was $97 million and the operating margin was 16.8%. The additional operating leverage from increased revenue was more than offset by 80 basis points of incremental investment in research and development and sales and marketing.

OTHER ITEMS

  • Cash from operating activities was $246 million and free cash flow was $134 million, which included a cash outflow of $75 million primarily related to separation and restructuring activities. Adjusted free cash flow for the quarter was $209 million. The Company completed the quarter with $430 million in cash and cash equivalents.
  • Corporate expense before special items was $54 million for the quarter, and $62 million on a GAAP basis.
  • The tax rate before special items was 17.9% for the quarter.
  • Company repurchased 4.8 million shares for $150 million under the existing $750 million share repurchase authority.
  • During the quarter, the Company acquired U.K.-based First City Care PLC with expected 2014 annual revenue of $20 million. First City Care PLC is an installation and service provider of access control, video surveillance and intruder alarms and is a security systems integrator. It will be combined with Tyco's installation and services business in the U.K., strengthening the Company's security expertise in banking and finance.
  • In addition, the Company signed a definitive agreement to purchase National Fire Solutions Group ("NFS"), with expected 2014 annual revenue of $65 million. NFS is a leading national provider of fire protection services in Australia, providing installation, inspection and maintenance services. It will be combined with Tyco's Fire Services business, providing increased scale and an enhanced service portfolio. The transaction is expected to close during the Company's fiscal third quarter and is subject to customary closing conditions.
  • Subsequent to quarter end, the Company signed a definitive agreement to sell its North America guarding business, which generated revenue of $75 million in fiscal 2012.

 

ABOUT TYCOTyco (NYSE: TYC) is the world's largest pure-play fire protection and security company. Tyco provides more than three million customers around the globe with the latest fire protection and security products and services. A company with $10+ billion in annual revenue, Tyco has over 70,000 employees in more than 1,000 locations across 50 countries serving various end markets, including commercial, institutional, governmental, retail, industrial, energy, residential and small business. For more information, visit the new www.tyco.com.

CONFERENCE CALL AND WEBCAST CONFERENCE CALL AND WEBCASTManagement will discuss the company's second quarter results for 2013 during a conference call and webcast today beginning at 8:00 a.m. ET. Today's conference call for investors can be accessed in the following 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) 857-9797. The telephone dial-in number for participants outside the United States is (517) 308-9262, passcode "Tyco".
  • An audio replay of the conference call will be available at 10:00 a.m. ET on April 26, 2013 and ending at 11:59 p.m. ET on May 3, 2013. The replay dial-in number for participants in the United States is (888) 562-2791. For participants outside the United States, the replay dial-in number is (402) 998-1448, passcode 8991.
  • A webcast replay of the conference call will be available on the "Presentations & Webcasts" section of Tyco's website: http://investors.tyco.com.

NON-GAAP MEASURES Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income and segment operating income, and normalized EPS, in each case "before special items," are non-GAAP measures and should not be considered replacements for GAAP results.

Organic revenue is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net revenue (the most comparable GAAP measure) and organic revenue (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures, and other changes that either do not reflect the underlying results and trends of the company's businesses or are not completely under management's control. There are limitations associated with organic revenue, such as the fact that, as presented herein, the metric may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using organic revenue in combination with GAAP numbers. Organic revenue may be used as a component in the company's incentive compensation plans.

FCF is a useful measure of the company's cash that permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation and is available to service debt and make investments. The difference between Cash Flows from Operating Activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash flows that the company believes are useful to identify. It, or a measure that is based on it, may be used as a component in the company's incentive compensation plans. The difference reflects the impact from:

  • net capital expenditures,
  • dealer generated accounts and bulk accounts purchased,
  • cash paid for purchase accounting and holdback liabilities, and
  • voluntary pension contributions.

Capital expenditures and dealer generated and bulk accounts purchased are subtracted because they represent long-term investments that are required for normal business activities. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general corporate uses. Voluntary pension contributions are added because this activity is driven by economic financing decisions rather than operating activity. In addition, from time to time the company may present adjusted free cash flow, which is free cash flow, adjusted to exclude the cash impact of the special items highlighted below. This number provides information to investors regarding the cash impact of certain items management believes are useful to identify, as described below.

The limitation associated with using these cash flow metrics is that they adjust for cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. Furthermore, these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using FCF in combination with the GAAP cash flow numbers.

The company has presented its income and EPS from continuing operations, operating income and segment operating income before special items. Special items include charges and gains related to divestitures, acquisitions, restructurings and similar actions, impairments, certain changes to accounting methodologies, legacy legal, environmental and tax charges 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 these measures to assess overall operating performance and segment level core operating performance, as well as to provide insight to management in evaluating overall and segment operating plan execution and underlying market conditions. The Company also presents its effective tax rate as adjusted for special items for consistency, and from time to time presents corporate expense excluding special items. One or more of these measures may be used as components in the company's incentive compensation plans. These measures are useful for investors because they may permit more meaningful comparisons of the company's underlying operating results and business trends between periods. The difference between income and EPS from continuing operations before special items and income and EPS from continuing operations (the most comparable GAAP measures) consists of the impact of the special items noted above on the applicable GAAP measure. 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 GAAP metrics, and these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using the non-GAAP measures 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 provides general corporate services to its segments and those costs are reported in the "Corporate and Other" segment. This segment's operating income (loss) is presented as "Corporate Expense." Segment Operating Income represents Tyco's operating income excluding the Corporate and Other segment, and reflects the results of Tyco's three operating segments. Segment Operating Income before special items reflects GAAP operating income adjusted for the special items noted in the paragraph above.

In order to provide more meaningful comparison of fiscal 2013 results to fiscal 2012 results, normalized EPS before special items is presented. Normalized EPS adjusts fiscal 2012 GAAP results by replacing the GAAP interest and corporate expenses reported for fiscal 2012 (on a pre-separation basis) with the interest and corporate expenses estimated to be incurred in fiscal 2013 (on a post-separation basis), and adding estimated dis-synergy costs related to the separation of the Company's North American security business to fiscal 2012 results. Normalized EPS before special items further adjusts normalized EPS for the special items above.

FORWARD-LOOKING STATEMENTSThis press release contains a number of forward-looking statements. Words, and variations of words, such as "expect", "intend", "will", "anticipate", "believe", "propose", "potential", "continue", "opportunity", "estimate", "project" and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, revenue, operating income and other financial projections, statements regarding the health and growth prospects of the industries and end markets in which Tyco operates, the leadership, resources, potential, priorities, and opportunities for Tyco in the future, statements regarding Tyco's credit profile, capital allocation priorities and other capital market related activities, and statements regarding Tyco's acquisition, divestiture, restructuring and other productivity initiatives. The forward-looking statements in this press release are based on current expectations and assumptions that are subject to risks and uncertainties, many of which are outside of our control, and could cause results to materially differ from expectations. Such risks and uncertainties include, but are not limited to: economic, business, competitive, technological or regulatory factors that adversely impact Tyco or the markets and industries in which it competes; unanticipated expenses such as environmental, litigation or legal settlement expenses; tax law changes; and industry specific events or conditions that may adversely impact revenue or other financial projections. Actual results could differ materially from anticipated results. Tyco is under no obligation (and expressly disclaims any obligation) to update its forward-looking statements. More detailed information about these and other factors is set forth in Tyco's Annual Report on Form 10-K for the fiscal year ended Sept. 28, 2012 and in subsequent filings with the Securities and Exchange Commission.

TYCO INTERNATIONAL LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(Unaudited)

Quarters Ended

Six Months Ended

March 29,

March 30,

March 29,

March 30,

2013

2012

2013

2012

Revenue from product sales

$                  1,437

$                  1,407

$                  2,880

$                  2,776

Service revenue

1,171

1,135

2,328

2,244

    Net revenue

2,608

2,542

5,208

5,020

Cost of product sales 

997

967

2,001

1,902

Cost of services

676

667

1,340

1,311

Selling, general and administrative expenses

790

660

1,472

1,337

Separation costs

-

4

5

4

Restructuring and asset impairment charges, net

22

16

32

52

   Operating income 

123

228

358

414

Interest income

4

4

8

9

Interest expense

(25)

(59)

(49)

(117)

Other (expense), net

(20)

(4)

(29)

(2)

Income from continuing operations before income taxes

82

169

288

304

Income tax expense

(4)

(33)

(43)

(60)

Equity loss in earnings of unconsolidated subsidiaries

(6)

(2)

(12)

(12)

   Income from continuing operations

72

134

233

232

(Loss) income from discontinued operations, net of income taxes

(2)

189

2

413

   Net income

70

323

235

645

Less: noncontrolling interest in subsidiaries net income

(2)

-

-

-

   Net income attributable to Tyco common shareholders

$                       72

$                     323

$                     235

$                     645

Amounts attributable to Tyco common shareholders:

Income from continuing operations

$                       74

$                     134

$                     233

$                     232

(Loss) income from discontinued operations

(2)

189

2

413

Net income attributable to Tyco common shareholders

$                       72

$                     323

$                     235

$                     645

Basic earnings per share attributable to Tyco common shareholders:

Income from continuing operations

$                    0.16

$                    0.29

$                    0.50

$                    0.50

Income from discontinued operations

-

0.41

-

0.89

Net income attributable to Tyco common shareholders

$                    0.16

$                    0.70

$                    0.50

$                    1.39

Diluted earnings per share attributable to Tyco common shareholders:

Income from continuing operations

$                    0.16

$                    0.29

$                    0.49

$                    0.50

Income from discontinued operations

-

0.40

-

0.88

Net income attributable to Tyco common shareholders

$                    0.16

$                    0.69

$                    0.49

$                    1.38

Weighted-average number of shares outstanding:

  Basic

466

463

466

463

  Diluted 

474

469

473

469

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 for the fiscal year ended September 28, 2012 and Form 10-Q for the quarter ended December 28, 2012.

 

TYCO INTERNATIONAL LTD.

RESULTS OF SEGMENTS 

(in millions)

(Unaudited)

Quarters Ended

Six Months Ended

March 29,

March 30,

March 29,

March 30,

2013

2012

2013

2012

Net Revenue

NA Installation & Services

$                 953

$                 953

$             1,929

$             1,915

ROW Installation & Services

1,077

1,070

2,167

2,126

Global Products

578

519

1,112

979

   Total Net Revenue

$              2,608

$              2,542

$             5,208

$             5,020

Operating Income and Margin

NA Installation & Services

$                   79

8.3%

$                   85

8.9%

$                187

9.7%

$                171

8.9%

ROW Installation & Services

106

9.8%

105

9.8%

220

10.2%

215

10.1%

Global Products

-

-

86

16.6%

74

6.7%

167

17.1%

Corporate and Other 

(62)

N/M

(48)

N/M

(123)

N/M

(139)

N/M

    Operating Income and Margin

$                 123

4.7%

$                 228

9.0%

$                358

6.9%

$                414

8.2%

 

TYCO INTERNATIONAL LTD.

CONSOLIDATED BALANCE SHEETS

(in millions)

(Unaudited)

March 29,

September 28,

2013

2012

Assets

    Cash and cash equivalents

$430

$844

    Accounts receivable, net

1,649

1,696

    Inventories

654

634

    Prepaid expenses and other current assets

930

884

    Deferred income taxes

295

295

      Total current assets

3,958

4,353

Property, plant and equipment, net

1,668

1,670

Goodwill

4,345

4,367

Intangible assets, net

735

771

Other assets

1,252

1,204

      Total Assets

$11,958

$12,365

Liabilities and Equity

    Loans payable and current maturities of long-term debt

$11

$10

    Accounts payable

783

897

    Accrued and other current liabilities

1,757

1,788

    Deferred revenue

418

402

      Total current liabilities

2,969

3,097

Long-term debt

1,481

1,481

Deferred revenue

405

424

Other liabilities

2,361

2,341

      Total Liabilities

7,216

7,343

Redeemable noncontrolling interest

12

12

Total Tyco shareholders' equity

4,714

4,994

Nonredeemable noncontrolling interest

16

16

      Total Equity

4,730

5,010

Total Liabilities, Redeemable Noncontrolling Interest and Equity

$11,958

$12,365

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 for the fiscal year ended September 28, 2012 and Quarterly Report on Form 10-Q for the quarter ended December 28, 2012.

 

TYCO INTERNATIONAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

For the Quarters Ended

For the Six Months Ended

March 29, 

March 30, 

March 29, 

March 30, 

2013

2012

2013

2012

Cash Flows From Operating Activities:

Net income attributable to Tyco common shareholders

$                72

$             323

$         235

$         645

Noncontrolling interest in subsidiaries net income

(2)

-

-

-

Loss (income) from discontinued operations, net of income taxes

2

(189)

(2)

(413)

Income from continuing operations

72

134

233

232

Adjustments to reconcile net cash provided by operating activities:

Depreciation and amortization

107

105

212

206

Non-cash compensation expense

17

21

31

42

Deferred income taxes

(55)

(15)

(45)

(13)

Provision for losses on accounts receivable and inventory

20

13

38

24

Loss on divestitures

9

3

6

3

Other non-cash items

42

23

51

63

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

Accounts receivable, net

12

(31)

3

12

Contracts in progress

(11)

(2)

(13)

(16)

Inventories

(4)

(25)

(33)

(58)

Prepaid expenses and other current assets

-

29

31

(23)

Accounts payable

(45)

6

(106)

(28)

Accrued and other liabilities

36

(71)

(192)

(230)

Deferred revenue

54

52

7

24

Other

(8)

40

(16)

(32)

Net cash provided by operating activities

246

282

207

206

Net cash (used in) provided by discontinued operating activities

(2)

434

2

848

Cash Flows From Investing Activities:

Capital expenditures

(102)

(95)

(192)

(185)

Proceeds from disposal of assets

1

1

4

2

Acquisition of businesses, net of cash acquired

(15)

(110)

(38)

(205)

Acquisition of dealer generated customer accounts and bulk account purchases

(6)

(7)

(12)

(13)

Sales and maturities of investments

28

51

39

83

Purchases of investments

(28)

(20)

(119)

(43)

Other

(14)

(1)

(6)

18

Net cash used in investing activities

(136)

(181)

(324)

(343)

Net cash used in discontinued investing activities

-

(287)

-

(566)

Cash Flows From Financing Activities:

Proceeds from issuance of short-term debt

100

469

100

880

Repayment of short-term debt

(101)

(504)

(101)

(880)

Proceeds from exercise of share options

48

59

94

88

Dividends paid

(70)

(115)

(140)

(231)

Repurchase of common shares by treasury

(150)

(100)

(200)

(300)

Transfer (to) from discontinued operations

(1)

112

(30)

194

Other

(1)

-

(17)

(19)

Net cash used in financing activities

(175)

(79)

(294)

(268)

Net cash provided by (used in) discontinued financing activities

1

(114)

30

(196)

Effect of currency translation on cash

(6)

13

(3)

10

Effect of currency translation on cash related to discontinued operations

-

5

-

5

Net (decrease) increase in cash and cash equivalents

(72)

73

(382)

(304)

Less: net increase (decrease) in cash and cash equivalents  related to discontinued operations

(1)

38

32

91

Cash and cash equivalents at beginning of period

501

799

844

1,229

Cash and cash equivalents at end of period

$              430

$             834

$         430

$         834

Reconciliation to "Free Cash Flow":

Net cash provided by operating activities

$              246

$             282

$         207

$         206

Capital expenditures, net

(101)

(94)

(188)

(183)

Acquisition of dealer generated customer accounts and bulk account purchases

(6)

(7)

(12)

(13)

Purchase accounting and holdback liabilities

(5)

(1)

(6)

(1)

Free Cash Flow

$              134

$             180

$             1

$             9

Reconciliation to "Adjusted Free Cash Flow":

Free Cash Flow

$              134

$             180

$             1

$             9

Cash restructuring costs

25

22

44

45

Cash payment / (receipt) from Covidien/TE Connectivity

-

17

(5)

17

Cash acquisition / integration costs

-

2

-

2

Legal settlement

-

-

13

-

Separation costs

32

-

105

-

Separation costs - taxes

7

-

7

-

Separation costs - capital expenditures

3

-

6

-

Net asbestos (recoveries) / payments

8

-

(50)

-

Adjusted Free Cash Flow

$              209

$             221

$         121

$           73

NOTE: Free cash flow is a non-GAAP measure.  See description of non-GAAP measures contained in this release.

 

Tyco International Ltd.

Organic Growth Reconciliation - Revenue

(in millions)

(Unaudited)

Quarter Ended March 29, 2013

Base YearAdjustments

Net Revenue for the Quarter Ended March 30, 2012

(Divestitures)

Adjusted2012 Base Revenue

Foreign Currency

Acquisitions

Other (2)

Organic Revenue (1)

Net Revenue for the Quarter Ended March 29, 2013

NA Installation and Services

$                                                       953

$             -

0.0%

$           953

$                 -

0.0%

$              2

0.2%

$             -

0.0%

$                  (2)

-0.2%

$                              953

0.0%

ROW Installation and Services

1,070

(4)

-0.4%

1,066

(10)

-0.9%

11

1.0%

-

0.0%

10

0.9%

1,077

0.7%

Global Products

519

-

0.0%

519

-

0.0%

15

2.9%

10

1.9%

34

6.6%

578

11.4%

Total Net Revenue

$                                                    2,542

$           (4)

-0.2%

$        2,538

$              (10)

-0.4%

$            28

1.1%

$           10

0.4%

$                  42

1.7%

$                           2,608

2.6%

(1)

Organic revenue growth percentage based on adjusted 2012 base revenue.

(2)

Amount represents contractual revenue from ADT under the 2012 Separation and Distribution Agreement which is excluded from the organic revenue calculation.

Six Months Ended March 29, 2013

Base YearAdjustments

Net Revenue for the Six Months Ended March 30, 2012

(Divestitures) 

Adjusted 2012 Base Revenue

Foreign Currency

Acquisitions

Other (2)

Organic Revenue (1) 

Net Revenue for the Six  Months Ended March 29, 2013

NA Installation and Services

$                                                    1,915

$             -

0.0%

$        1,915

$                 4

0.2%

$              4

0.2%

$             -

0.0%

$                    6

0.3%

$                           1,929

0.7%

ROW Installation and Services

2,126

(10)

-0.5%

2,116

(7)

-0.3%

46

2.2%

-

0.0%

12

0.6%

2,167

1.9%

Global Products

979

-

0.0%

979

2

0.2%

54

5.5%

17

1.7%

60

6.1%

1,112

13.6%

Total Net Revenue

$                                                    5,020

$         (10)

-0.2%

$        5,010

$                (1)

0.0%

$          104

2.1%

$           17

0.3%

$                  78

1.6%

$                           5,208

3.7%

(1)

Organic revenue growth percentage based on adjusted 2012 base revenue.

(2)

Amount represents contractual revenue from ADT under the 2012 Separation and Distribution Agreement which is excluded from the organic revenue calculation.

Earnings Per Share Summary

(Unaudited)

Quarter Ended

Quarter Ended

March 29, 2013

March 30, 2012

Diluted EPS from Continuing Operations Attributable toTyco Shareholders (GAAP)

$0.16

$0.29

expense / (benefit)

Restructuring and repositioning activities

0.04

0.03

Separation costs included in SG&A

0.04

-

(Gains) / losses on divestitures, net

0.02

-

Environmental remediation

0.12

-

Legacy legal items

-

0.04

Former management ERISA reversal

-

(0.07)

Separation costs

-

0.01

2012 Tax Sharing Agreement

0.04

-

Total Before Special Items

$0.42

$0.30

Anticipated dis-synergies in NA I&S segment

(0.01)

Represents 

Corporate expense from $78M to expected $56M

0.04

forecast

amounts

Net interest expense from $55M to expected $25M

0.05

for fiscal

2013

Effective tax rate from 12.3% to expected 19.5%

(0.03)

Q2 FY12 "Normalized" EPS

$0.35

 

Tyco International Ltd.

For the Quarter Ended March 29, 2013

(in millions, except per share data)

(Unaudited)

expense / (benefit)

Segments

NA Installation

ROW Installation

Global

Segment

Corporate 

Total

& Service

& Service

Products

Revenue

and Other

Revenue

Revenue (GAAP)

$953

$1,077

$578

$2,608

-

$2,608

Income

Diluted

from

EPS from

Operating Income

Continuing

Continuing

Operations

Operations

Segment

Total

Equity in earnings

Noncontrolling

Attributable

Attributable

NA Installation

ROW Installation

Global

Operating

Corporate 

Operating

Interest

Other

Income

of unconsolidated

Interest

to Tyco 

to Tyco 

& Service

Margin

& Service

Margin

Products

Margin

Income

Margin

and Other

Margin

Income

Margin

(Expense), net

(Expense), net

Tax (Expense)

subsidiaries

(Expense)

Shareholders

Shareholders

Operating Income (GAAP)

$79

8.3%

$106

9.8%

-

-

$185

7.1%

($62)

N/M

$123

4.7%

($21)

($20)

($4)

($6)

$2

$74

$0.16

Restructuring and repositioning activities

6

13

3

22

4

26

(7)

19

0.04

Separation costs included in SG&A

16

16

16

3

19

0.04

(Gains) / losses on divestitures, net included in SG&A

3

1

4

5

9

9

0.02

Asbestos

(1)

(1)

1

-

-

Environmental remediation

94

94

94

(37)

57

0.12

2012 Tax Sharing Agreement

20

20

0.04

Total Before Special Items 

$104

10.9%

$120

11.1%

$97

16.8%

$321

12.3%

($54)

N/M

$267

10.2%

($21)

-

($44)

($6)

$2

$198

$0.42

 Diluted Shares Outstanding 

474

 Diluted Shares Outstanding - Before Special Items 

474

 

Tyco International Ltd.

For the Quarter Ended March 30, 2012

(in millions, except per share data)

(Unaudited)

expense / (benefit)

Segments

NA Installation

ROW Installation

Global

Segment

Corporate 

Total

& Service

& Service

Products

Revenue

and Other

Revenue

Revenue (GAAP)

$953

$1,070

$519

$2,542

-

$2,542

Income

Diluted

from

EPS from

Operating Income

Continuing

Continuing

Operations

Operations

Segment

Total

Equity (loss) in earnings

Attributable

Attributable

NA Installation

ROW Installation

Global

Operating

Corporate 

Operating

Interest

Other

Income

of unconsolidated

to Tyco 

to Tyco 

& Service

Margin

& Service

Margin

Products

Margin

Income

Margin

and Other

Margin

Income

Margin

(Expense), net

(Expense), net

Tax (Expense)

subsidiary

Shareholders

Shareholders

Operating Income (GAAP)

$85

8.9%

$105

9.8%

$86

16.6%

$276

10.9%

($48)

N/M

$228

9.0%

($55)

($4)

($33)

($2)

$134

$0.29

Restructuring, net

7

8

1

16

(2)

14

(5)

9

0.03

(Gains) / losses on divestitures, net

4

4

(1)

3

(1)

2

-

Acquisition / integration costs

1

1

1

1

-

Asset impairment charges

1

1

2

2

2

-

Legacy legal items

20

20

20

0.04

Former management ERISA reversal

(50)

(50)

18

(32)

(0.07)

Separation costs

1

1

3

4

4

0.01

Tax items

1

1

-

Total Before Special Items 

$92

9.7%

$119

11.1%

$89

17.1%

$300

11.8%

($78)

N/M

$222

8.7%

($55)

($4)

($20)

($2)

$141

$0.30

Anticipated dis-synergies in NA I&S segment

(9)

(9)

Q2FY12 Normalized 

$83

8.7%

$119

11.1%

$89

17.1%

$291

11.4%

 Diluted Shares Outstanding 

469

 Diluted Shares Outstanding - Before Special Items 

469

 

 

SOURCE Tyco

For further information: Investor Relations Contacts: Antonella Franzen, +1-609-720-4665, afranzen@tyco.com, Joe Longo, +1-609-720-4545, jlongo@tyco.com; Media Contacts: Ira Gottlieb, +1-609-610-1999, igottlieb@tycoint.com, Brett Ludwig, +1-609-216-3255, bludwig@tyco.com

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