PEMBROKE, Bermuda, Nov. 11 /PRNewswire-FirstCall/ --
($ millions, except per-share amounts)
Q4 Q4 % FY FY %
2008 2007 Change 2008 2007 Change
Revenue $5,284 $4,952 7% $20,199 $18,477 9%
Income (Loss) from
Continuing Operations $264 $209 26% $1,095 ($2,524) N/A
Diluted EPS from Continuing
Operations $0.55 $0.42 31% $2.25 ($5.10) N/A
Special Items ($0.26) ($0.15) ($0.81) ($6.99)
Income from Continuing Ops
Before Special Items $387 $284 36% $1,493 $948 57%
Diluted EPS from Continuing
Ops Before Special Items $0.81 $0.57 42% $3.06 $1.89 62%
-- Revenue increased 7% with organic revenue growth of 4%
-- Company achieved operating margin of 8.1% and operating margin before
special items of 11.0%
-- Company had strong cash flow quarter
-- Quarterly dividend increased 33% during the quarter to $0.20 per share
-- Company's long-term debt rating improved to BBB+
Tyco International Ltd. (NYSE: TYC; BSX: TYC) today reported $0.55 in
diluted earnings per share (EPS) from continuing operations for the fiscal
fourth quarter of 2008 and diluted EPS from continuing operations before
special items of $0.81. Diluted EPS from continuing operations was negatively
impacted by special items which totaled $0.26 per share, primarily for
restructuring activities. Diluted EPS from continuing operations before
special items increased 42% compared to the fourth quarter of 2007.
Revenue in the quarter increased 7% to $5.3 billion, with organic revenue
growth of 4%. The company's operating margin was 8.1% and the operating
margin before special items was 11.0%. For the full year, revenue increased
9% to $20.2 billion, with organic revenue growth of 5%. The company's
operating margin for the full year was 9.6% and the operating margin before
special items was 11.0%.
Cash from operating activities was $1.0 billion in the quarter. The
company had free cash flow of $759 million which was negatively impacted by
$62 million primarily for restructuring activities.
Tyco Chairman and Chief Executive Officer Ed Breen said, "We delivered
solid results in the fourth quarter and for the full year, with good revenue
growth and operating income improvement. We continued to make progress on our
key initiatives to improve our operations, refine our portfolio and carefully
allocate our capital. While we always take a disciplined approach to managing
our businesses, this is an area of intense focus in this period of economic
uncertainty. Our strong balance sheet and cash flow provide us with
flexibility to strengthen our businesses through internal investments and
bolt-on acquisitions."
Organic revenue growth, free cash flow, operating income before special
items, operating margin before special items, income from continuing
operations before special items and diluted 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 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 fourth quarter of 2007 unless
otherwise indicated.
ADT Worldwide
Q4 Q4 % FY FY %
2008 2007 Change 2008 2007 Change
Revenue $2,052 $1,989 3% $8,017 $7,648 5%
Operating Income $200 $241 (17%) $910 $842 8%
Operating Margin 9.7% 12.1% 11.4% 11.0%
Special Items ($48) ($16) ($97) ($129)
Operating Income Before
Special Items $248 $257 (4%) $1,007 $971 4%
Operating Margin Before
Special Items 12.1% 12.9% 12.6% 12.7%
Revenue increased 3% in the quarter with organic revenue growth of 0.5%.
Recurring revenue grew 5% organically and improved across all regions. Systems
installation and service revenue declined 3.5% organically due to weakness in
North America and Europe, mostly as a result of lower sales to the retailer
end market in North America and Europe and softness in the U.K. commercial
market. This was partially offset by continued strong growth in the rest of
the world.
Operating income was $200 million in the quarter and the operating margin
was 9.7%. Special items consisted of $48 million of restructuring charges.
Operating income before special items was $248 million and the operating
margin before special items was 12.1% which was negatively impacted by 70
basis points primarily for legal matters and by approximately 40 basis points
related to the acquisition of First Service Security.
For the full year, revenue increased 5% to $8 billion with organic revenue
growth of 2%. Operating income was $910 million and the operating margin was
11.4%. Operating income before special items increased 4% to more than $1
billion and the operating margin before special items was 12.6%, which was
adversely impacted by approximately 50 basis points related to the analog-to-
digital conversion.
Flow Control
Q4 Q4 % FY FY %
2008 2007 Change 2008 2007 Change
Revenue $1,188 $1,071 11% $4,418 $3,766 17%
Operating Income $152 $123 24% $618 $457 35%
Operating Margin 12.8% 11.5% 14.0% 12.1%
Special Items ($9) ($12) ($14) ($29)
Operating Income Before
Special Items $161 $135 19% $632 $486 30%
Operating Margin Before
Special Items 13.6% 12.6% 14.3% 12.9%
Revenue increased 11% in the quarter with organic revenue growth of 6.5%
led by continued growth in the Valves business, which grew 15% organically.
This was offset by a 6% organic revenue decline in the Water business
primarily due to reduced water pipeline project activity in Australia.
Operating income was $152 million in the quarter and the operating margin
was 12.8%. Operating income before special items increased 19% to $161
million and the operating margin before special items improved by 100 basis
points to 13.6%. The increase in the operating income and margin before
special items was led by the Valves and Thermal Controls businesses.
For the full year, revenue increased 17% to $4.4 billion with organic
revenue growth of 9%. Operating income was $618 million and the operating
margin was 14.0%. Operating income before special items increased 30% to $632
million and the operating margin before special items improved by 140 basis
points to 14.3% due to higher revenue and productivity improvements.
Fire Protection Services
Q4 Q4 % FY FY %
2008 2007 Change 2008 2007 Change
Revenue $944 $911 4% $3,553 $3,366 6%
Operating Income $74 $80 (8%) $321 $258 24%
Operating Margin 7.8% 8.8% 9.0% 7.7%
Special Items ($30) ($8) ($31) ($23)
Operating Income Before
Special Items $104 $88 18% $352 $281 25%
Operating Margin Before
Special Items 11.0% 9.7% 9.9% 8.3%
Revenue increased 4% in the quarter with organic revenue growth of 2%.
The North America SimplexGrinnell business grew 7% organically due to higher
levels of service and installation activities. The international fire
businesses declined due to the planned exit of certain non-core fire
activities.
Operating income was $74 million in the quarter and the operating margin
was 7.8%. Special items of $30 million consisted primarily of restructuring
charges in Europe. Operating income before special items increased 18% to
$104 million and the operating margin before special items increased 130 basis
points to 11.0%, with improvements in SimplexGrinnell as well as our
international businesses.
For the full year, revenue increased 6% to $3.6 billion with organic
revenue growth of 2%. Operating income was $321 million and the operating
margin was 9%. Operating income before special items increased 25% to $352
million and the operating margin before special items improved 160 basis
points to 9.9%.
Electrical and Metal Products
Q4 Q4 % FY FY %
2008 2007 Change 2008 2007 Change
Revenue $591 $533 11% $2,272 $1,974 15%
Operating Income $88 $45 96% $342 $159 115%
Operating Margin 14.9% 8.4% 15.1% 8.1%
Special Items ($31) ($7) ($43) ($7)
Operating Income Before
Special Items $119 $52 129% $385 $166 132%
Operating Margin Before
Special Items 20.1% 9.8% 16.9% 8.4%
Revenue increased 11% in the quarter with organic revenue growth of 9%.
The increase in revenue was driven by better pricing for steel tubular and
copper products partially offset by lower volume.
Operating income was $88 million in the quarter and the operating margin
was 14.9%. Special items consisted of $31 million of restructuring charges.
Operating income before special items of $119 million improved primarily due
to better metal spreads and continuing productivity improvements.
For the full year, revenue increased 15% to $2.3 billion with organic
revenue growth of 13%. Operating income was $342 million and the operating
margin was 15.1%. Operating income before special items more than doubled to
$385 million. The operating margin before special items was 16.9%.
Safety Products
Q4 Q4 % FY FY %
2008 2007 Change 2008 2007 Change
Revenue $507 $447 13% $1,934 $1,719 13%
Operating Income $65 $65 0% $284 $274 4%
Operating Margin 12.8% 14.5% 14.7% 15.9%
Special Items ($34) ($19) ($73) ($39)
Operating Income Before
Special Items $99 $84 18% $357 $313 14%
Operating Margin Before
Special Items 19.5% 18.8% 18.5% 18.2%
Revenue increased 13% in the quarter with organic revenue growth of 11%
led by the fire suppression and life safety businesses.
Operating income was $65 million in the quarter and the operating margin
was 12.8%. Special items consisted of $34 million of restructuring charges.
Operating income before special items increased 18% to $99 million and the
operating margin before special items improved 70 basis points to 19.5% due to
higher revenue and productivity while investments in R&D and sales and
marketing increased.
For the full year, revenue increased 13% to $1.9 billion with organic
revenue growth of 8%. Operating income was $284 million and the operating
margin was 14.7%. Special items for the full year consisted of $73 million of
restructuring charges. Operating income before special items was $357 million
and the operating margin before special items was 18.5%.
OTHER ITEMS
-- Corporate and Other expense in the quarter was $150 million including
$2 million of income from special items. Corporate expense was negatively
impacted by certain foreign exchange transactions.
-- Restructuring charges of $111 million in the fourth quarter were
incurred as part of the company's previously-announced restructuring program.
-- The GAAP tax rate for the quarter was 24.7% and was favorably impacted
by 50 basis points for tax benefits related to special items. The GAAP tax
rate for the full year was 23.4% and was favorably impacted by 1.2 percentage
points of tax benefits related to special items.
-- Since announcing a new $1 billion share repurchase program in July, the
company repurchased 2.5 million shares for $100 million.
-- In September, the company announced a 33% increase in its fourth
quarter dividend from $0.15 to $0.20.
-- During September, Standard & Poors and Fitch Ratings each raised their
long-term debt rating on Tyco to BBB+ from BBB.
-- Tyco continues to make progress in its portfolio refinement activities
including last month's acquisition of Vue Technology, Inc., a leading provider
of radio frequency identification (RFID) technology for its Sensormatic
business.
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 had 2008 revenue of more than $20 billion and has more than
110,000 employees worldwide. More information on Tyco can be found at
www.tyco.com.
CONFERENCE CALL AND WEBCAST
Management will discuss the company's fourth quarter results and 2009
outlook during a conference call and webcast for investors today beginning at
8:30 am 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 (888) 455-5685. The
telephone dial-in number for participants outside the United States is (773)
799-3896. The passcode for the call is TYCO.
-- An audio replay of the conference call will be available beginning at
11:00 a.m. on November 11, 2008 and ending at 10:59 p.m. on November 18, 2008.
The dial-in number for participants in the United States is (866) 465-1306.
For participants outside the United States, the replay dial-in number is (203)
369-1423.
NON-GAAP MEASURES
"Organic revenue growth," "free cash flow" (FCF), "operating income before
special items", "earnings per share (EPS) from continuing operations before
special items" 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, or a measure that is based on
it, may be used as 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,
-- accounts purchased from ADT dealer network,
-- 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 are 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 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 its operating income from continuing operations,
operating income and operating margin before special items and EPS from
continuing operations before special items, and forecast its EPS from
continuing operations before special items. Special Items include charges and
gains related to divestitures, acquisitions, restructurings 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
income from continuing operations, EPS and operating income and margin, in
each case 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 may be used as significant components in the company's
incentive compensation plans. Operating income, operating margin, income from
continuing operations before special items and EPS 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 income from continuing operations before special
items. The difference between income from continuing operations before special
items and operating income and margin before special items versus income from
continuing operations, operating income and operating margin (the most
comparable GAAP measures) consists of the impact of charges and gains related
to divestitures, acquisitions, restructurings 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 from continuing operations, EPS and operating income and 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 EPS 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
company's future financial condition and operating results, as well as its
portfolio refinement activities. 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 for the fiscal year ended Sept. 28,
2007 and Quarterly Report on Form 10-Q for the quarterly period ended June 27,
2008.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(Unaudited)
Quarter Ended Twelve Months Ended
Sept 26, Sept 28, Sept 26, Sept 28,
2008 2007 2008 2007
Net revenue $5,284 $4,952 $20,199 $18,477
Cost of sales 3,417 3,274 13,123 12,217
Selling, general and administrative
expenses 1,301 1,218 4,906 4,776
Class action settlement, net (3) (13) (10) 2,862
Separation costs - 20 4 105
Goodwill impairment 9 - 9 46
Restructuring, asset impairment and
divestiture charges, net 131 56 226 203
Operating income (loss) 429 397 1,941 (1,732)
Interest income 11 50 110 104
Interest expense (73) (105) (396) (313)
Other (expense) income, net (19) 2 (224) (255)
Income (loss) from continuing
operations before income
taxes and minority interest 348 344 1,431 (2,196)
Income taxes (86) (134) (335) (324)
Minority interest 2 (1) (1) (4)
Income (loss) from continuing
operations 264 209 1,095 (2,524)
Income (loss) from discontinued
operations, net of income taxes 170 (28) 458 782
Net income (loss) $434 $181 $1,553 $(1,742)
Basic earnings per common share:
Income (loss) from continuing
operations $0.56 $0.42 $2.26 $(5.10)
Income (loss) from discontinued
operations 0.35 (0.06) 0.95 1.58
Net income (loss) $0.91 $0.36 $3.21 $(3.52)
Diluted earnings per common share:
Income (loss) from continuing
operations $0.55 $0.42 $2.25 $(5.10)
Income (loss) from discontinued
operations 0.36 (0.06) 0.94 1.58
Net income (loss) $0.91 $0.36 $3.19 $(3.52)
Weighted-average number of shares
outstanding:
Basic 475 496 484 495
Diluted 478 500 488 495
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,
2007 and Quarterly Report on Form 10-Q for the quarterly period ended June 27,
2008.
TYCO INTERNATIONAL LTD.
RESULTS OF SEGMENTS
(in millions)
(Unaudited)
Quarter Ended
Sept 26, 2008 Sept 28, 2007
NET REVENUE
ADT Worldwide $2,052 $1,989
Flow Control 1,188 1,071
Fire Protection Services 944 911
Electrical and Metal Products 591 533
Safety Products 507 447
Corporate and Other 2 1
Total Net Revenue $5,284 $4,952
OPERATING INCOME AND MARGIN
ADT Worldwide $200 9.7% $241 12.1%
Flow Control 152 12.8% 123 11.5%
Fire Protection Services 74 7.8% 80 8.8%
Electrical and Metal Products 88 14.9% 45 8.4%
Safety Products 65 12.8% 65 14.5%
Corporate and Other (150) N/M (157) N/M
Operating Income (Loss)
and Margin $429 8.1% $397 8.0%
Twelve Months Ended
Sept 26, 2008 Sept 28, 2007
NET REVENUE
ADT Worldwide $8,017 $7,648
Flow Control 4,418 3,766
Fire Protection Services 3,553 3,366
Electrical and Metal Products 2,272 1,974
Safety Products 1,934 1,719
Corporate and Other 5 4
Total Net Revenue $20,199 $18,477
OPERATING INCOME AND MARGIN
ADT Worldwide $910 11.4% $842 11.0%
Flow Control 618 14.0% 457 12.1%
Fire Protection Services 321 9.0% 258 7.7%
Electrical and Metal Products 342 15.1% 159 8.1%
Safety Products 284 14.7% 274 15.9%
Corporate and Other (534) N/M (3,722) N/M
Operating Income (Loss)
and Margin $1,941 9.6% $(1,732) -9.4%
TYCO INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
Sept 26, 2008 Sept 28, 2007
Current Assets:
Cash and cash equivalents $1,519 $1,894
Accounts receivable, net 2,987 2,900
Inventories 1,865 1,783
Class action settlement escrow - 2,992
Other current assets 1,257 1,157
Deferred income taxes 529 458
Assets held for sale 384 1,385
Total current assets 8,541 12,569
Property, plant and equipment, net 3,503 3,526
Goodwill 11,498 11,499
Intangible assets, net 2,655 2,653
Other assets 2,607 2,568
Total Assets $28,804 $32,815
Current Liabilities:
Short-term debt and current maturities
of long-term debt $555 $380
Accounts payable 1,611 1,637
Class action settlement liability - 2,992
Accrued and other current liabilities 2,756 2,869
Deferred revenue 607 583
Liabilities held for sale 128 662
Total current liabilities 5,657 9,123
Long-term debt 3,709 4,082
Other liabilities 3,930 3,919
Total Liabilities 13,296 17,124
Minority interest 14 67
Shareholders' equity 15,494 15,624
Total Liabilities and Shareholders' Equity $28,804 $32,815
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, 2007 and Quarterly Report on Form 10-Q for the quarterly period ended
June 27, 2008.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Quarter Ended Twelve Months Ended
Sept 26, Sept 28, Sept 26, Sept 28,
2008 2007 2008 2007
Cash Flows from Operating
Activities:
Net income (loss) $434 $181 $1,553 $(1,742)
(Income) loss from discontinued
operations (170) 28 (458) (782)
Income from continuing operations 264 209 1,095 (2,524)
Adjustments to reconcile net cash
provided by operating activities:
Depreciation and amortization 300 281 1,154 1,148
Non-cash compensation expense 21 52 99 173
Deferred income taxes 21 58 (94) (16)
Provision for losses on accounts
receivable and inventory 36 32 135 94
Loss on the retirement of debt - - 258 259
Goodwill impairment 9 - 9 46
Other non-cash items 62 21 138 56
Changes in assets and liabilities,
net of the effects of acquisitions
and divestitures:
Accounts receivable, net 67 72 (176) (136)
Inventories 35 103 (138) (163)
Other current assets 2 52 11 154
Accounts payable 119 148 (16) 65
Accrued and other liabilities 205 147 (152) (68)
Class action settlement
liability - - (3,020) 2,992
Income taxes, net (87) (20) (95) (250)
Other (18) (152) (80) (16)
Net cash provided by (used in)
operating activities 1,036 1,003 (872) 1,814
Net cash provided by (used in)
discontinued operating activities 7 8 (18) 2,498
Cash Flows from Investing
Activities:
Capital expenditures (189) (195) (734) (666)
Proceeds from disposal of
assets 14 9 28 23
Acquisition of businesses, net
of cash acquired (255) (5) (347) (31)
Accounts purchased from ADT
dealer network (107) (136) (376) (409)
Liquidation of rabbi trust
investments - - - 271
Class action settlement escrow - - 2,960 (2,960)
Other 17 (5) 32 32
Net cash (used in) provided by
investing activities (520) (332) 1,563 (3,740)
Net cash provided by (used in)
discontinued investing activities 415 (18) 894 (810)
Cash Flows from Financing
Activities:
Net repayments of debt (347) (1) (547) (5,928)
Proceeds from exercise of share
options 9 18 49 406
Dividends paid (71) - (292) (791)
Repurchase of common shares by
subsidiary (98) (59) (854) (727)
Repurchase of common shares
held in Treasury (192) - (192) -
Transfers from discontinued
operations 422 (67) 880 8,585
Other (4) (9) (72) 12
Net cash (used in) provided by
financing activities (281) (118) (1,028) 1,557
Net cash (used in) provided by
discontinued financing activities (422) 66 (876) (950)
Effect of currency translation on
cash (58) 31 (38) 70
Effect of currency translation on
cash of discontinued operations - - - 33
Net increase (decrease) in cash and
cash equivalents 177 640 (375) 472
Less: net increase in cash related
to discontinued operations - (56) - (771)
Cash and cash equivalents at
beginning of period 1,342 1,310 1,894 2,193
Cash and cash equivalents at end of
period $1,519 $1,894 $1,519 $1,894
Reconciliation to "Free Cash Flow":
Net cash provided by (used in)
operating activities $1,036 $1,003 $(872) $1,814
Decrease in sale of accounts
receivable 2 1 14 7
Capital expenditures, net (175) (186) (706) (643)
Accounts purchased from ADT dealer
network (107) (136) (376) (409)
Purchase accounting and holdback
liabilities - (5) (2) (10)
Voluntary pension contributions 3 - 4 23
Free Cash Flow $759 $677 $(1,938) $782
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 26, 2008
Foreign Acquisition/
Net Revenue Currency Divestiture
ADT Worldwide $2,052 3.2% $4 0.2% $50 2.5%
Flow Control 1,188 10.9% 44 4.1% 6 0.5%
Fire Protection Services 944 3.6% 11 1.2% - 0.0%
Electrical and Metal Products 591 10.9% 10 1.9% 1 0.2%
Safety Products 507 13.4% 9 2.0% 2 0.4%
Corporate and Other 2 100.0% (1) -100.0% - 0.0%
Total Net Revenue $5,284 6.7% $77 1.6% $59 1.2%
Net Revenue
for the
Quarter Ended
Organic September
Other Revenue Growth 28, 2007
ADT Worldwide $- 0.0% $9 0.5% $1,989
Flow Control (3) -0.3% 70 6.5% 1,071
Fire Protection Services - 0.0% 22 2.4% 911
Electrical and Metal Products - 0.0% 47 8.8% 533
Safety Products - 0.0% 49 11.0% 447
Corporate and Other - 0.0% 2 200.0% 1
Total Net Revenue $(3) -0.1% $199 4.0% $4,952
Twelve Months Ended September 26, 2008
Foreign Acquisition/
Net Revenue Currency Divestiture
ADT Worldwide $8,017 4.8% $213 2.8% $49 0.6%
Flow Control 4,418 17.3% 314 8.3% 16 0.4%
Fire Protection Services 3,553 5.6% 125 3.8% - 0.0%
Electrical and Metal Products 2,272 15.1% 44 2.2% 1 0.1%
Safety Products 1,934 12.5% 76 4.4% 1 0.1%
Corporate and Other 5 25.0% - 0.0% - 0.0%
Total Net Revenue $20,199 9.3% $772 4.2% $67 0.4%
Net Revenue
for the
Twelve
Months Ended
Organic Revenue September
Other Growth 28, 2007
ADT Worldwide $(22) -0.3% $129 1.7% $7,648
Flow Control (10) -0.3% 332 8.8% 3,766
Fire Protection Services - 0.0% 62 1.8% 3,366
Electrical and Metal Products - 0.0% 253 12.8% 1,974
Safety Products - 0.0% 138 8.0% 1,719
Corporate and Other - 0.0% 1 25.0% 4
Total Net Revenue $(32) -0.2% $915 5.0% $18,477
NOTE: Organic revenue growth is a non-GAAP measure. See description of
non-GAAP measures contained in this release.
Tyco International Ltd.
Earnings Per Share Summary
Quarter Ended Year
Ended
Dec. 29, March 30, June 29, Sept. 28, Sept. 28,
2006 2007 2007 2007 2007
Diluted EPS from
Continuing Operations $0.31 $0.33 ($6.17) $0.42 ($5.10)
Restructuring charges
in cost of sales and
SG&A 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 (0.00)
Restructuring and asset
impairment charges,
net 0.10 0.02 0.07 0.07 0.26
Goodwill impairment 0.09 0.09
Tax items (0.12) (0.12)
Voluntary Replacement
Program 0.01 0.01
Reserve Adjustment
Legacy Legal Settlement
Diluted EPS from
Continuing Operations
Before Special Items $0.48 $0.33 $0.51 $0.57 $1.89
Year
Quarter Ended Ended
Dec. 28, March 28, June 27, Sept. 26, Sept. 26,
2007 2008 2008 2008 2008
Diluted EPS from
Continuing Operations $0.72 $0.56 $0.41 $0.55 $2.25
Restructuring charges
in cost of sales
and SG&A 0.01 0.01 0.01 0.02 0.04
Class action settlement,
net (0.01) (0.01) (0.02)
Separation costs (0.08) 0.01 0.39 0.04 0.36
Losses on divestitures 0.00 0.00
Restructuring and asset
impairment charges,
net 0.02 0.06 0.06 0.19 0.33
Goodwill impairment 0.02 0.02
Tax items 0.04 0.00 0.04
Voluntary Replacement
Program
Reserve Adjustment (0.01) (0.02)
Legacy Legal Settlement 0.04 0.02 0.06
Diluted EPS from
Continuing Operations
Before Special Items $0.71 $0.67 $0.88 $0.81 $3.06
Tyco International Ltd.
For the Twelve Months Ended September 26, 2008
(in millions, except per share data)
Fire Electrical Corp-
ADT Flow Protection & Metal Safety orate
Worldwide Control Services Products Products & Other Revenue
Revenue $2,052 $1,188 $944 $591 $507 $2 $5,284
Fire Electrical Corp- Oper-
ADT Flow Protection & Metal Safety orate ating
Worldwide Control Services Products Products & Other Income
Operating
Income $200 $152 $74 $88 $65 ($150) $429
Restructur
-ing charges
in cost of
sales and
SG&A 1 6 1 3 2 13
Class action
settlement,
net (3) (3)
Separation
costs
Losses on
divestitures
Restructuring
and asset
impairment
charges,
net 47 3 20 28 32 1 131
Goodwill
impairment 9 9
Tax items
Voluntary
Replacement
Program
Reserve
Adjustment
Legacy Legal
Settlement
Operating
Income
Before
Special
Items $248 $161 $104 $119 $99 ($152) $579
Income Diluted
Interest Other from EPS from
Expense, Expense, Income Minority Continuing Continuing
net net Taxes Interest Operations Operations
Operating
Income ($62) ($19) ($86) $2 $264 $0.55
Restructuring
charges in
cost of sales
and SG&A (5) 8 0.02
Class action
settlement,
net (3) (0.01)
Separation
costs 17 17 0.04
Losses on
divestitures
Restructuring
and asset
impairment
charges, net (39) 92 0.19
Goodwill
impairment 9 0.02
Tax items
Voluntary
Replacement
Program
Reserve
Adjustment
Legacy
Legal
Settlement
Operating
Income
Before
Special
Items ($62) ($2) ($130) $2 $387 $0.81
Diluted Shares Outstanding 478
Diluted Shares Outstanding - Before Special Items 478
Tyco International Ltd.
For the Twelve Months Ended September 26, 2008
(in millions, except per share data)
Fire Electrical Corp-
ADT Flow Protection & Metal Safety orate
Worldwide Control Services Products Products & Other Revenue
Revenue $8,017 $4,418 $3,553 $2,272 $1,934 $5 $20,199
Fire Electrical Corp- Oper-
ADT Flow Protection & Metal Safety orate ating
Worldwide Control Services Products Products & Other Income
Operating
Income $910 $618 $321 $342 $284 ($534) $1,941
Restructuring
charges in
cost of
sales and
SG&A 1 9 9 6 3 28
Class action
settlement,
net (10) (10)
Separation costs 5 5
Losses on
divestitures 1 1
Restructuring
and asset
impairment
charges,
net 96 5 22 34 67 1 225
Goodwill
impairment 9 9
Tax items
Voluntary
Replacement
Program
Reserve
Adjustment (9) (9)
Legacy Legal
Settlement 29 29
Operating
Income
Before
Special
Items $1,007 $632 $352 $385 $357 $(514) $2,219
Income Diluted
Interest Other from EPS from
Expense, Expense, Income Minority Continuing Continuing
net net Taxes Interest Operations Operations
Operating
Income ($286) ($224) ($335) ($1) $1,095 $2.25
Restructuring
charges in
cost of sales
and SG&A (6) 22 0.04
Class action
settlement, net (10) (0.02)
Separation
costs 47 225 (102) 175 0.36
Losses on
divestitures 1 0.00
Restructuring
and asset
impairment
charges, net (65) 160 0.33
Goodwill
impairment 9 0.02
Tax items 21 21 0.04
Voluntary
Replacement
Program
Reserve
Adjustment (9) (0.02)
Legacy Legal
Settlement 29 0.06
Operating
Income
Before
Special
Items ($239) $1 ($487) ($1) $1,493 $3.06
Diluted Shares Outstanding 488
Diluted Shares Outstanding - Before Special Items 488
