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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Vwr Corp. (MM) | NASDAQ:VWR | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 33.25 | 33.24 | 33.26 | 0 | 01:00:00 |
|
|
|
|
|
Delaware
|
26-0237871
|
(State of incorporation)
|
(I.R.S. Employer Identification No.)
|
|
|
|
Page
|
|
|
|
|
|
|
|
Description
|
Company, we, us, our
|
VWR Corporation and its consolidated subsidiaries
|
2014 Plan
|
the VWR Corporation 2014 Equity Incentive Plan
|
Americas
|
a segment covering North, Central and South America
|
AOCI
|
accumulated other comprehensive income or loss
|
Annual Report
|
our Annual Report on Form 10-K filed with the SEC on February 24, 2017
|
Avantor
|
Avantor, Inc., a company with which we agreed to merge
|
Biopharma
|
the combination of the pharmaceutical and biotechnology sectors
|
bps
|
basis points
|
EMEA-APAC
|
a segment covering Europe, Middle East, Africa and Asia-Pacific
|
EURIBOR
|
the applicable interest rate determined by the Banking Federation of the European Union
|
FASB
|
the Financial Accounting Standards Board
|
GAAP
|
United States generally accepted accounting principles
|
German, French and UK Plans
|
the defined benefit plans in Germany, France and the United Kingdom
|
ITRA
|
the income tax receivable agreement between us and Varietal
|
LIBOR
|
the applicable British Bankers Association London Interbank Offered Rate
|
SEC
|
the United States Securities and Exchange Commission
|
SG&A expenses
|
selling, general and administrative expenses
|
U.S. Retirement Plan
|
the defined benefit plan in the United States
|
Varietal
|
Varietal Distribution Holdings, LLC, a significant stockholder and affiliate
|
•
|
potential disruption to our business occurring during the period between the announcement of the pending merger with Avantor and the closing of the transaction;
|
•
|
unfavorable political, economic, capital and credit market conditions in the regions where we operate;
|
•
|
changes in our customers’ research, development and production and other scientific endeavors;
|
•
|
changes to the life science industry adversely affecting our business;
|
•
|
increased competition from other companies in our industry or from new companies that may enter our industry, and our ability to increase our market shares in the geographic regions where we operate;
|
•
|
our ability to maintain relationships with our customers and suppliers;
|
•
|
our ability to consummate and integrate prior and future acquisitions;
|
•
|
the international scope of our operations;
|
•
|
the need to record impairment charges against our goodwill, other intangible and/or other long-lived assets;
|
•
|
existing and increased government regulations to which we and our suppliers are subject;
|
•
|
our ability to comply with applicable antitrust or competition laws;
|
•
|
increased costs to comply with environmental, health and safety laws and regulations;
|
•
|
product liability and other claims in the ordinary course of business;
|
•
|
our ability to hire, train and retain executive officers and other key personnel;
|
•
|
significant interruptions in the operations of our distribution centers or the operations of our suppliers;
|
•
|
failure of our information services and its connectivity to our customers, suppliers and/or certain service providers;
|
•
|
our failure to register and in some cases own the existing applications and registrations for our material trademarks or service marks in certain countries where we do business;
|
•
|
foreign currency exchange rate fluctuations;
|
•
|
unanticipated increases to our income tax liabilities;
|
•
|
failure to obtain regulatory approvals required for the pending merger with Avantor to be completed on a timely basis; and
|
•
|
the occurrence of specific circumstances that could give rise to the termination of the merger agreement with Avantor.
|
Item 1.
|
Financial Statements
|
|
Page
|
(in millions, except per share data)
|
September 30,
2017 |
|
December 31,
2016 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
120.3
|
|
|
$
|
168.7
|
|
Trade accounts receivable, net of reserves of $11.8 and $10.5
|
691.1
|
|
|
607.2
|
|
||
Inventories
|
522.2
|
|
|
483.1
|
|
||
Other current assets
|
90.1
|
|
|
93.1
|
|
||
Total current assets
|
1,423.7
|
|
|
1,352.1
|
|
||
Property and equipment, net of accumulated depreciation of $295.1 and $248.9
|
333.0
|
|
|
253.8
|
|
||
Goodwill
|
2,044.8
|
|
|
1,844.0
|
|
||
Other intangible assets, net
|
1,488.0
|
|
|
1,407.8
|
|
||
Other assets
|
119.6
|
|
|
104.8
|
|
||
Total assets
|
$
|
5,409.1
|
|
|
$
|
4,962.5
|
|
Liabilities, Redeemable Equity and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current portion of debt
|
$
|
320.2
|
|
|
$
|
250.1
|
|
Accounts payable
|
513.0
|
|
|
476.3
|
|
||
Employee-related liabilities
|
112.7
|
|
|
79.3
|
|
||
Current amount due to Varietal — ITRA
|
26.0
|
|
|
27.7
|
|
||
Other current liabilities
|
163.6
|
|
|
152.7
|
|
||
Total current liabilities
|
1,135.5
|
|
|
986.1
|
|
||
Debt, net of current portion
|
1,859.8
|
|
|
1,766.9
|
|
||
Amount due to Varietal — ITRA, net of current portion
|
31.3
|
|
|
57.3
|
|
||
Deferred income tax liabilities
|
429.0
|
|
|
477.2
|
|
||
Other liabilities
|
205.3
|
|
|
159.4
|
|
||
Total liabilities
|
3,660.9
|
|
|
3,446.9
|
|
||
Commitments and contingencies (Note 8)
|
|
|
|
||||
Redeemable equity, at redemption value
|
36.2
|
|
|
21.2
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.01 par value; 50.0 shares authorized, no shares issued or outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 750.0 shares authorized, 131.9 and 131.6 shares issued and outstanding
|
1.3
|
|
|
1.3
|
|
||
Additional paid-in capital
|
1,765.7
|
|
|
1,766.0
|
|
||
Retained earnings
|
279.1
|
|
|
154.5
|
|
||
Accumulated other comprehensive loss
|
(334.1
|
)
|
|
(427.4
|
)
|
||
Total stockholders’ equity
|
1,712.0
|
|
|
1,494.4
|
|
||
Total liabilities, redeemable equity and stockholders’ equity
|
$
|
5,409.1
|
|
|
$
|
4,962.5
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions, except per share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales
|
$
|
1,195.2
|
|
|
$
|
1,136.1
|
|
|
$
|
3,509.6
|
|
|
$
|
3,383.9
|
|
Cost of goods sold
|
860.6
|
|
|
822.6
|
|
|
2,524.8
|
|
|
2,436.4
|
|
||||
Gross profit
|
334.6
|
|
|
313.5
|
|
|
984.8
|
|
|
947.5
|
|
||||
Selling, general and administrative expenses
|
251.5
|
|
|
230.3
|
|
|
739.5
|
|
|
700.0
|
|
||||
Operating income
|
83.1
|
|
|
83.2
|
|
|
245.3
|
|
|
247.5
|
|
||||
Interest expense
|
(21.8
|
)
|
|
(20.6
|
)
|
|
(61.1
|
)
|
|
(60.5
|
)
|
||||
Other income (expense), net
|
8.3
|
|
|
(0.4
|
)
|
|
4.8
|
|
|
(0.9
|
)
|
||||
Income before income taxes
|
69.6
|
|
|
62.2
|
|
|
189.0
|
|
|
186.1
|
|
||||
Income tax provision
|
(20.5
|
)
|
|
(21.6
|
)
|
|
(64.4
|
)
|
|
(64.9
|
)
|
||||
Net income
|
$
|
49.1
|
|
|
$
|
40.6
|
|
|
$
|
124.6
|
|
|
$
|
121.2
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.95
|
|
|
$
|
0.92
|
|
Diluted
|
0.37
|
|
|
0.31
|
|
|
0.94
|
|
|
0.92
|
|
||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
131.8
|
|
|
131.5
|
|
|
131.7
|
|
|
131.4
|
|
||||
Diluted
|
133.1
|
|
|
131.9
|
|
|
132.6
|
|
|
131.7
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
49.1
|
|
|
$
|
40.6
|
|
|
$
|
124.6
|
|
|
$
|
121.2
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gain arising during the period
|
36.3
|
|
|
4.7
|
|
|
99.8
|
|
|
27.3
|
|
||||
Derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Net unrealized (loss) gain arising during the period
|
(0.8
|
)
|
|
2.9
|
|
|
(3.3
|
)
|
|
(0.2
|
)
|
||||
Reclassification of net gain into earnings
|
(5.6
|
)
|
|
(0.5
|
)
|
|
(5.9
|
)
|
|
(1.3
|
)
|
||||
Defined benefit plans:
|
|
|
|
|
|
|
|
||||||||
Reclassification of net loss into earnings
|
0.7
|
|
|
0.3
|
|
|
2.7
|
|
|
1.5
|
|
||||
Other comprehensive income
|
30.6
|
|
|
7.4
|
|
|
93.3
|
|
|
27.3
|
|
||||
Comprehensive income
|
$
|
79.7
|
|
|
$
|
48.0
|
|
|
$
|
217.9
|
|
|
$
|
148.5
|
|
|
Redeemable equity, at redemption value
|
|
Stockholders’ equity
|
|||||||||||||||||||||||
|
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
AOCI
|
|
Total
|
||||||||||||||||
(in millions)
|
|
Shares
|
|
Par value
|
|
|
|
|
||||||||||||||||||
Balance at December 31, 2016
|
$
|
21.2
|
|
|
131.6
|
|
|
$
|
1.3
|
|
|
$
|
1,766.0
|
|
|
$
|
154.5
|
|
|
$
|
(427.4
|
)
|
|
$
|
1,494.4
|
|
Issuance of common stock
|
—
|
|
|
0.3
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
9.7
|
|
|
—
|
|
|
—
|
|
|
9.7
|
|
||||||
Reclassifications to state redeemable equity at redemption value
|
15.0
|
|
|
—
|
|
|
—
|
|
|
(15.0
|
)
|
|
—
|
|
|
—
|
|
|
(15.0
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124.6
|
|
|
—
|
|
|
124.6
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93.3
|
|
|
93.3
|
|
||||||
Balance at September 30, 2017
|
$
|
36.2
|
|
|
131.9
|
|
|
$
|
1.3
|
|
|
$
|
1,765.7
|
|
|
$
|
279.1
|
|
|
$
|
(334.1
|
)
|
|
$
|
1,712.0
|
|
|
Nine months ended September 30,
|
||||||
(in millions)
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
124.6
|
|
|
$
|
121.2
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
108.8
|
|
|
96.5
|
|
||
Deferred income tax (benefit) provision
|
(27.5
|
)
|
|
15.9
|
|
||
Stock-based compensation expense
|
9.7
|
|
|
6.1
|
|
||
Other, net
|
0.9
|
|
|
8.5
|
|
||
Changes in working capital, net of business acquisitions:
|
|
|
|
||||
Trade accounts receivable
|
(38.4
|
)
|
|
(29.8
|
)
|
||
Inventories
|
(12.3
|
)
|
|
(30.0
|
)
|
||
Accounts payable
|
5.9
|
|
|
(34.4
|
)
|
||
Other assets and liabilities
|
30.6
|
|
|
32.1
|
|
||
Net cash provided by operating activities
|
202.3
|
|
|
186.1
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Acquisitions of businesses, net of cash acquired
|
(197.3
|
)
|
|
(60.8
|
)
|
||
Capital expenditures
|
(43.0
|
)
|
|
(45.5
|
)
|
||
Other investing activities
|
6.1
|
|
|
—
|
|
||
Net cash used in investing activities
|
(234.2
|
)
|
|
(106.3
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from debt
|
714.2
|
|
|
483.7
|
|
||
Repayment of debt
|
(708.6
|
)
|
|
(497.1
|
)
|
||
Payment to Varietal under ITRA
|
(27.7
|
)
|
|
(78.1
|
)
|
||
Payment of contingent consideration
|
(21.4
|
)
|
|
(4.2
|
)
|
||
Net change in bank overdrafts
|
0.9
|
|
|
16.2
|
|
||
Proceeds from settlement of interest rate swaps
|
9.7
|
|
|
—
|
|
||
Other financing activities
|
5.0
|
|
|
1.3
|
|
||
Net cash used in financing activities
|
(27.9
|
)
|
|
(78.2
|
)
|
||
Effect of exchange rate changes on cash
|
11.4
|
|
|
3.8
|
|
||
Net (decrease) increase in cash and cash equivalents
|
(48.4
|
)
|
|
5.4
|
|
||
Cash and cash equivalents at beginning of period
|
168.7
|
|
|
136.3
|
|
||
Cash and cash equivalents at end of period
|
$
|
120.3
|
|
|
$
|
141.7
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
50.9
|
|
|
$
|
54.7
|
|
Cash paid for income taxes, net
|
64.3
|
|
|
51.5
|
|
(
1
)
|
Nature of Operations and Basis of Presentation
|
•
|
Assets and liabilities have been presented as current or noncurrent, and forward-looking disclosures have been prepared, on the same basis as prior periods; and
|
•
|
Significant commitments and contingencies related to the merger, as discussed further in Note
8
, have been disclosed but not recognized.
|
(
2
)
|
New Accounting Standards
|
(
3
)
|
Earnings per Share
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Reconciliation of weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||
Basic
|
131.8
|
|
|
131.5
|
|
|
131.7
|
|
|
131.4
|
|
Dilutive effect of stock-based instruments
|
1.3
|
|
|
0.4
|
|
|
0.9
|
|
|
0.3
|
|
Diluted
|
133.1
|
|
|
131.9
|
|
|
132.6
|
|
|
131.7
|
|
|
|
|
|
|
|
|
|
||||
Number of anti-dilutive instruments excluded from dilutive effect
|
1.4
|
|
|
2.1
|
|
|
3.1
|
|
|
3.9
|
|
(
4
)
|
Acquisitions
|
(
5
)
|
Goodwill and Other Intangible Assets, net
|
(in millions)
|
Americas
|
|
EMEA-APAC
|
|
Total
|
||||||
Balance at December 31, 2016
|
$
|
1,114.1
|
|
|
$
|
729.9
|
|
|
$
|
1,844.0
|
|
Acquisitions
|
88.5
|
|
|
18.9
|
|
|
107.4
|
|
|||
Currency translation
|
7.0
|
|
|
86.4
|
|
|
93.4
|
|
|||
Balance at September 30, 2017
|
$
|
1,209.6
|
|
|
$
|
835.2
|
|
|
$
|
2,044.8
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(in millions)
|
Gross carrying amount
|
|
Accumulated impairment losses
|
|
Net carrying amount
|
|
Gross carrying amount
|
|
Accumulated impairment losses
|
|
Net carrying amount
|
||||||||||||
Americas
|
$
|
1,416.2
|
|
|
$
|
206.6
|
|
|
$
|
1,209.6
|
|
|
$
|
1,320.7
|
|
|
$
|
206.6
|
|
|
$
|
1,114.1
|
|
EMEA-APAC
|
835.2
|
|
|
—
|
|
|
835.2
|
|
|
729.9
|
|
|
—
|
|
|
729.9
|
|
||||||
Total
|
$
|
2,251.4
|
|
|
$
|
206.6
|
|
|
$
|
2,044.8
|
|
|
$
|
2,050.6
|
|
|
$
|
206.6
|
|
|
$
|
1,844.0
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(in millions)
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
||||||||||||
Customer relationships
|
$
|
1,541.2
|
|
|
$
|
741.7
|
|
|
$
|
799.5
|
|
|
$
|
1,413.0
|
|
|
$
|
651.3
|
|
|
$
|
761.7
|
|
Other
|
73.3
|
|
|
27.7
|
|
|
45.6
|
|
|
49.7
|
|
|
20.1
|
|
|
29.6
|
|
||||||
Amortizable intangible assets
|
1,614.5
|
|
|
769.4
|
|
|
845.1
|
|
|
1,462.7
|
|
|
671.4
|
|
|
791.3
|
|
||||||
Indefinite-lived trademarks and tradenames
|
642.9
|
|
|
—
|
|
|
642.9
|
|
|
616.5
|
|
|
—
|
|
|
616.5
|
|
||||||
Other intangible assets
|
$
|
2,257.4
|
|
|
$
|
769.4
|
|
|
$
|
1,488.0
|
|
|
$
|
2,079.2
|
|
|
$
|
671.4
|
|
|
$
|
1,407.8
|
|
(
6
)
|
Debt
|
|
September 30, 2017
|
|
December 31,
2016 |
|||||||||
(dollars in millions)
|
Interest terms
|
|
Rate
|
|
Amount
|
|
||||||
Accounts receivable securitization facility
|
LIBOR plus 1.15%
|
|
2.38
|
%
|
|
$
|
163.9
|
|
|
$
|
163.9
|
|
Senior credit facility:
|
|
|
|
|
|
|
|
|||||
Multi-currency revolving loan facility
|
Variable
|
|
3.36
|
%
|
|
83.7
|
|
|
31.6
|
|
||
Term A loan, net of discount of $3.9 and $4.8
|
LIBOR plus 2.00%
|
|
3.24
|
%
|
|
826.6
|
|
|
859.7
|
|
||
Term B loan, net of discount of $3.8 and $4.4
|
EURIBOR plus 3.00%
|
|
3.00
|
%
|
|
471.6
|
|
|
423.8
|
|
||
4.625% senior notes, net of discount of $6.3 and $7.0
|
Fixed rate
|
|
4.63
|
%
|
|
588.6
|
|
|
524.9
|
|
||
Capital lease obligations
|
45.6
|
|
|
13.1
|
|
|||||||
Total debt
|
$
|
2,180.0
|
|
|
$
|
2,017.0
|
|
|||||
Classification on condensed consolidated balance sheets:
|
|
|
|
|||||||||
Current portion of debt
|
$
|
320.2
|
|
|
$
|
250.1
|
|
|||||
Debt, net of current portion
|
1,859.8
|
|
|
1,766.9
|
|
|||||||
Total debt
|
$
|
2,180.0
|
|
|
$
|
2,017.0
|
|
(in millions)
|
Accounts receivable securitization facility
|
|
Multi-currency revolving loan facility
|
|
Total
|
||||||
Maximum availability
|
$
|
175.0
|
|
|
$
|
250.0
|
|
|
$
|
425.0
|
|
|
|
|
|
|
|
||||||
Current availability
|
$
|
175.0
|
|
|
$
|
250.0
|
|
|
$
|
425.0
|
|
Undrawn letters of credit outstanding
|
(10.9
|
)
|
|
(1.8
|
)
|
|
(12.7
|
)
|
|||
Outstanding borrowings
|
(163.9
|
)
|
|
(83.7
|
)
|
|
(247.6
|
)
|
|||
Unused availability
|
$
|
0.2
|
|
|
$
|
164.5
|
|
|
$
|
164.7
|
|
(
7
)
|
Financial Instruments and Fair Value Measurements
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
(in millions)
|
Carrying amount
|
|
Fair value
|
|
Carrying amount
|
|
Fair value
|
||||||||
Accounts receivable securitization facility
|
$
|
163.9
|
|
|
$
|
163.9
|
|
|
$
|
163.9
|
|
|
$
|
163.9
|
|
Senior credit facility:
|
|
|
|
|
|
|
|
||||||||
Multi-currency revolving loan facility
|
83.7
|
|
|
83.7
|
|
|
31.6
|
|
|
31.6
|
|
||||
Term A loan
|
826.6
|
|
|
830.5
|
|
|
859.7
|
|
|
856.4
|
|
||||
Term B loan
|
471.6
|
|
|
475.4
|
|
|
423.8
|
|
|
431.9
|
|
||||
4.625% senior notes
|
588.6
|
|
|
622.1
|
|
|
524.9
|
|
|
553.9
|
|
||||
Capital lease obligations
|
45.6
|
|
|
45.6
|
|
|
13.1
|
|
|
13.1
|
|
(in millions)
|
Nine months ended
September 30, 2017 |
||
Beginning balance
|
$
|
34.7
|
|
Acquisitions
|
22.1
|
|
|
Income from changes to estimated fair value
|
(0.8
|
)
|
|
Cash payments
|
(26.2
|
)
|
|
Currency translation
|
0.9
|
|
|
Ending balance
|
$
|
30.7
|
|
•
|
Cash flow hedging
— Until September 2017, we hedged the variable base interest rate of a portion of our term A loan using interest rate swaps to reduce our exposure to changes in variable interest rates;
|
•
|
Net investment hedging
— We hedge a portion of our net investment in euro-denominated foreign operations using our 4.625% senior notes and a portion of our term B loan to reduce the earnings impact of changes in foreign currency exchange rates;
|
•
|
Economic hedge
— We experience opposite foreign currency exchange rate effects related to a euro-denominated intercompany loan and the unhedged portion of our term B loan. The currency effects for these non-derivative instruments are recorded through earnings in the period of change and substantially offset one another; and
|
•
|
Other hedging
activities
— Some of our subsidiaries hedge short-term foreign-denominated business transactions and intercompany financing transactions using foreign currency forward contracts. No additional disclosures are provided for these activities because they were not material to our financial statements.
|
(in millions)
|
Balance sheet classification
|
|
September 30,
2017 |
|
December 31, 2016
|
||||
Cash flow hedging:
|
|
|
|
|
|
||||
Interest rate swaps
|
Other assets
|
|
$
|
—
|
|
|
$
|
11.2
|
|
Net investment hedging:
|
|
|
|
|
|
||||
Portion of term B loan
|
Debt, net of current portion
|
|
418.4
|
|
|
379.2
|
|
||
4.625% senior notes
|
Debt, net of current portion
|
|
622.1
|
|
|
553.9
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Cash flow hedging:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
(0.6
|
)
|
|
$
|
2.5
|
|
|
$
|
(1.6
|
)
|
|
$
|
(2.9
|
)
|
Net investment hedging:
|
|
|
|
|
|
|
|
||||||||
Portion of net investment in foreign operations
|
34.3
|
|
|
12.6
|
|
|
107.2
|
|
|
33.7
|
|
||||
Portion of term B loan
|
(14.3
|
)
|
|
(5.6
|
)
|
|
(44.5
|
)
|
|
(14.5
|
)
|
||||
4.625% senior notes
|
(20.0
|
)
|
|
(7.0
|
)
|
|
(62.7
|
)
|
|
(19.2
|
)
|
(in millions)
|
Income statement classification
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
Interest rate swaps
|
Interest expense
|
|
$
|
0.2
|
|
|
$
|
(0.5
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.9
|
)
|
|
Other income (expense), net
|
|
9.7
|
|
|
—
|
|
|
9.7
|
|
|
—
|
|
(
8
)
|
Commitments and Contingencies
|
•
|
Stock-based compensation
— Upon completion of the merger, all of our stock-based awards would be exchanged for cash. See Note
9
.
|
•
|
Merger costs
— Upon completion of the merger, we would be required to pay a financial advisor approximately
$28 million
related to its assessment of the fairness of the merger consideration to our stockholders. We estimate that we will incur other professional costs ranging from
$5
to
$12 million
.
|
•
|
Associate retention plans
— In contemplation of the pending merger, we adopted two retention plans that authorize us to pay up to
$40.0 million
to management in exchange for continuing service through May 4, 2018. Under those plans, up to
$25.0 million
is payable on the earlier of (i) May 4, 2018 or (ii) the date an associate is terminated by us other than for cause, due to death or disability or leaves for good reason, each as defined in the plan and subject to certain changes if the merger is not completed. In the event that U.S. federal excise taxes become due from certain executives, up to an additional
$15.0 million
is payable to them to keep them in the same position as if no excise tax had applied.
|
•
|
Amount due to Varietal under ITRA
— Upon completion of the merger, the amount due to Varietal under the ITRA would be
$56.2 million
, which is less than its carrying amount and would result in a
$1.1 million
gain. See Note
15
.
|
•
|
Contingent consideration for business acquisitions
— Upon completion of the merger,
$15.0 million
of previously recognized contingent consideration for a business acquisition would become immediately payable. Other contingent consideration remains payable according to the original terms. See Note
7
.
|
•
|
Termination clause
— The merger agreement provides Avantor and us certain termination rights. We would be required to pay Avantor a termination fee of
$85.0 million
for the acceptance of a takeover proposal and
$170.0 million
for acceptance of a superior proposal or the occurrence of an adverse recommendation. We would be entitled to receive a fee of
$300.0 million
from Avantor for certain actions taken by regulators or certain failures of Avantor to satisfy conditions of the merger agreement.
|
(
9
)
|
Stock-Based Compensation
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
2014 Plan:
|
|
|
|
|
|
|
|
||||||||
Stock options
|
$
|
2.9
|
|
|
$
|
2.2
|
|
|
$
|
8.2
|
|
|
$
|
5.7
|
|
Restricted stock units
|
0.6
|
|
|
0.1
|
|
|
1.4
|
|
|
0.2
|
|
||||
Other immaterial plans
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
||||
Total
|
$
|
3.5
|
|
|
$
|
2.3
|
|
|
$
|
9.7
|
|
|
$
|
6.1
|
|
|
Nine months ended September 30, 2017
|
|||||||||||
(options and intrinsic values in millions)
|
Number of stock options
|
|
Weighted average exercise price per option
|
|
Aggregate intrinsic value
|
|
Weighted average remaining term
|
|||||
Outstanding at beginning of period
|
5.8
|
|
|
$
|
22.80
|
|
|
|
|
|
||
Granted
|
1.7
|
|
|
28.26
|
|
|
|
|
|
|||
Exercised
|
(0.2
|
)
|
|
22.08
|
|
|
|
|
|
|||
Forfeited
|
(0.1
|
)
|
|
23.34
|
|
|
|
|
|
|||
Outstanding at end of period
|
7.2
|
|
|
24.09
|
|
|
$
|
64.7
|
|
|
5.1 years
|
|
Expected to vest
|
4.6
|
|
|
24.98
|
|
|
37.1
|
|
|
5.4 years
|
||
Exercisable
|
2.5
|
|
|
22.35
|
|
|
26.8
|
|
|
4.5 years
|
Weighted average grant date fair value
|
$
|
6.88
|
|
Expected stock price volatility
|
25
|
%
|
|
Risk free interest rate
|
1.71
|
%
|
|
Expected dividend rate
|
nil
|
|
|
Expected life of options
|
4.6 years
|
|
|
Nine months ended September 30, 2017
|
|||||
(units in millions)
|
Number of units
|
|
Weighted average grant date fair value per unit
|
|||
Nonvested at beginning of period
|
—
|
|
|
$
|
24.52
|
|
Granted
|
0.3
|
|
|
28.26
|
|
|
Vested
|
—
|
|
|
24.52
|
|
|
Forfeited
|
—
|
|
|
28.26
|
|
|
Nonvested at end of period
|
0.3
|
|
|
28.00
|
|
(
10
)
|
Restructuring
|
(in millions)
|
Three months ended September 30, 2017
|
|
Nine months ended September 30, 2017
|
|
September 30, 2017
|
||||||||||||||
Cumulative charges incurred
|
|
Expected remaining charges
|
|
Total expected charges
|
|||||||||||||||
Employee severance
|
$
|
0.7
|
|
|
$
|
4.8
|
|
|
$
|
17.7
|
|
|
$
|
—
|
|
|
$
|
17.7
|
|
Facility closure
|
0.6
|
|
|
1.0
|
|
|
1.4
|
|
|
2.2
|
|
|
3.6
|
|
|||||
Other
|
0.1
|
|
|
4.0
|
|
|
11.0
|
|
|
2.7
|
|
|
13.7
|
|
|||||
Total
|
$
|
1.4
|
|
|
$
|
9.8
|
|
|
$
|
30.1
|
|
|
$
|
4.9
|
|
|
$
|
35.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas
|
$
|
1.0
|
|
|
$
|
2.8
|
|
|
$
|
4.6
|
|
|
$
|
0.4
|
|
|
$
|
5.0
|
|
EMEA-APAC
|
0.4
|
|
|
7.0
|
|
|
25.5
|
|
|
4.5
|
|
|
30.0
|
|
|||||
Total
|
$
|
1.4
|
|
|
$
|
9.8
|
|
|
$
|
30.1
|
|
|
$
|
4.9
|
|
|
$
|
35.0
|
|
(in millions)
|
Employee severance
|
|
Facility closure
|
|
Total
|
||||||
Balance at December 31, 2016
|
$
|
10.7
|
|
|
$
|
0.4
|
|
|
$
|
11.1
|
|
Restructuring charges
|
4.8
|
|
|
1.0
|
|
|
5.8
|
|
|||
Cash payments
|
(10.3
|
)
|
|
(0.5
|
)
|
|
(10.8
|
)
|
|||
Currency translation
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|||
Balance at September 30, 2017
|
$
|
5.9
|
|
|
$
|
0.9
|
|
|
$
|
6.8
|
|
|
U.S. Retirement Plan
|
|
German, French and UK Plans
|
||||||||||||
|
Three months ended September 30,
|
|
Three months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service cost
|
$
|
1.4
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
Interest cost
|
1.6
|
|
|
1.7
|
|
|
1.0
|
|
|
1.1
|
|
||||
Expected return on plan assets
|
(3.5
|
)
|
|
(3.3
|
)
|
|
(1.2
|
)
|
|
(1.2
|
)
|
||||
Recognized net actuarial loss
|
—
|
|
|
—
|
|
|
1.0
|
|
|
0.8
|
|
||||
Total
|
$
|
(0.5
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
1.2
|
|
|
$
|
1.1
|
|
|
|
|
|
|
|
|
|
||||||||
|
U.S. Retirement Plan
|
|
German, French and UK Plans
|
||||||||||||
|
Nine months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service cost
|
$
|
4.2
|
|
|
$
|
0.5
|
|
|
$
|
1.2
|
|
|
$
|
1.1
|
|
Interest cost
|
4.8
|
|
|
5.1
|
|
|
3.0
|
|
|
3.4
|
|
||||
Expected return on plan assets
|
(10.5
|
)
|
|
(9.8
|
)
|
|
(3.7
|
)
|
|
(3.6
|
)
|
||||
Recognized net actuarial loss
|
—
|
|
|
—
|
|
|
3.0
|
|
|
2.5
|
|
||||
Total
|
$
|
(1.5
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
3.5
|
|
|
$
|
3.4
|
|
(
12
)
|
Leases
|
|
September 30, 2017
|
||||||
(in millions)
|
Capital
leases
|
|
Operating leases
|
||||
Remainder of 2017
|
$
|
0.7
|
|
|
$
|
0.1
|
|
2018
|
2.7
|
|
|
0.4
|
|
||
2019
|
2.6
|
|
|
0.4
|
|
||
2020
|
2.8
|
|
|
0.4
|
|
||
2021
|
2.9
|
|
|
0.2
|
|
||
Thereafter
|
57.3
|
|
|
4.4
|
|
||
Total minimum payments
|
69.0
|
|
|
$
|
5.9
|
|
|
Imputed interest
|
36.6
|
|
|
|
|||
Present value of minimum lease payments
|
$
|
32.4
|
|
|
|
(
13
)
|
Other Income or Expense, net
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net foreign currency remeasurement loss from financing activities
|
$
|
(1.4
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(5.0
|
)
|
|
$
|
(0.9
|
)
|
Gain on settlement of interest rate swaps (Note 7)
|
9.7
|
|
|
—
|
|
|
9.7
|
|
|
—
|
|
||||
Other, net
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Total
|
$
|
8.3
|
|
|
$
|
(0.4
|
)
|
|
$
|
4.8
|
|
|
$
|
(0.9
|
)
|
(
14
)
|
Comprehensive Income or Loss
|
(in millions)
|
Foreign currency translation
|
|
Derivative instruments
|
|
Defined benefit plans
|
|
Total
|
||||||||
Balance at December 31, 2016
|
$
|
(386.5
|
)
|
|
$
|
8.8
|
|
|
$
|
(49.7
|
)
|
|
$
|
(427.4
|
)
|
Net unrealized gain (loss) arising during the period
|
99.8
|
|
|
(3.3
|
)
|
|
—
|
|
|
96.5
|
|
||||
Reclassification of net (gain) loss into earnings
|
—
|
|
|
(5.9
|
)
|
|
2.7
|
|
|
(3.2
|
)
|
||||
Balance at September 30, 2017
|
$
|
(286.7
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(47.0
|
)
|
|
$
|
(334.1
|
)
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
$
|
0.8
|
|
|
$
|
(1.1
|
)
|
|
$
|
0.1
|
|
|
$
|
(2.3
|
)
|
Selling, general and administrative expenses
|
(0.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
||||
Interest expense
|
(0.2
|
)
|
|
0.5
|
|
|
0.1
|
|
|
0.9
|
|
||||
Other income or expense, net
|
(9.7
|
)
|
|
—
|
|
|
(9.7
|
)
|
|
—
|
|
||||
Income tax provision
|
3.6
|
|
|
0.1
|
|
|
3.8
|
|
|
0.1
|
|
||||
Net income
|
$
|
(5.6
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(5.9
|
)
|
|
$
|
(1.3
|
)
|
Defined benefit plans:
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
$
|
1.0
|
|
|
$
|
0.6
|
|
|
$
|
3.8
|
|
|
$
|
2.3
|
|
Income tax provision
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(1.1
|
)
|
|
(0.8
|
)
|
||||
Net income
|
$
|
0.7
|
|
|
$
|
0.3
|
|
|
$
|
2.7
|
|
|
$
|
1.5
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Foreign currency translation:
|
|
|
|
|
|
|
|
||||||||
Net unrealized income tax benefit arising during the period
|
$
|
13.4
|
|
|
$
|
5.0
|
|
|
$
|
41.8
|
|
|
$
|
13.2
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Net unrealized income tax benefit (provision) arising during the period
|
0.4
|
|
|
(1.6
|
)
|
|
1.4
|
|
|
0.6
|
|
||||
Net reclassification of income tax provision into earnings
|
3.6
|
|
|
0.1
|
|
|
3.8
|
|
|
0.1
|
|
||||
Defined benefit plans:
|
|
|
|
|
|
|
|
||||||||
Net reclassification of income tax benefit into earnings
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(1.1
|
)
|
|
(0.8
|
)
|
(
15
)
|
Related Party Transactions
|
(
16
)
|
Segment Financial Information
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
717.6
|
|
|
$
|
707.7
|
|
|
$
|
2,136.8
|
|
|
$
|
2,069.3
|
|
EMEA-APAC
|
477.6
|
|
|
428.4
|
|
|
1,372.8
|
|
|
1,314.6
|
|
||||
Total
|
$
|
1,195.2
|
|
|
$
|
1,136.1
|
|
|
$
|
3,509.6
|
|
|
$
|
3,383.9
|
|
Operating income:
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
42.2
|
|
|
$
|
47.2
|
|
|
$
|
126.3
|
|
|
$
|
134.2
|
|
EMEA-APAC
|
40.9
|
|
|
36.0
|
|
|
119.0
|
|
|
113.3
|
|
||||
Total
|
$
|
83.1
|
|
|
$
|
83.2
|
|
|
$
|
245.3
|
|
|
$
|
247.5
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Net sales
,
organic net sales growth
,
operating income
and
operating income margin
, which we discuss in the section entitled “Results of Operations.” Organic net sales growth is a non-GAAP financial measurement that eliminates the contribution from recently acquired businesses and the impact of changes in foreign currency exchange rates from our reported net sales. We believe that this measurement is useful to investors as an additional way to measure and evaluate our underlying commercial operating performance consistently across the periods presented. This measurement is used by our management for the same reason;
|
•
|
Constant-currency changes in gross profit, SG&A expenses
and
operating income
, which we discuss in the section entitled “Results of Operations.” These are non-GAAP financial measurements that exclude the impact of changes in foreign currency exchange rates from our reported results. We believe that these measurements are useful to investors as an additional way to measure and evaluate our underlying commercial operating performance excluding the effects of currency changes, which we cannot control. These measurements are used by our management for the same reason;
|
•
|
Gross margin,
net income
and
diluted earnings per share
, which we discuss in the section entitled “Results of Operations;”
|
•
|
Adjusted operating income
and
Adjusted EPS
, which we discuss in materials furnished to the SEC and other public materials related to our presentation of quarterly results. Both are non-GAAP financial measurements that exclude the amortization of acquired intangible assets, restructuring charges, impairment charges, changes in foreign currency exchange rates related to financing decisions and certain other items. For Adjusted EPS, we then add or subtract an estimated incremental income tax effect applicable to those items. We believe that these measurements are useful to investors as an additional way to analyze the underlying trends in our business consistently across the periods presented. These measurements are used by our management for the same reason; and
|
•
|
Cash flows, particularly
cash flows from operating activities
, which we discuss in the section entitled “Liquidity and Capital Resources — Historical Cash Flows.”
|
(dollars in millions, except per share amounts)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
|||||||||||||
Net sales
|
$
|
1,195.2
|
|
|
$
|
1,136.1
|
|
|
$
|
59.1
|
|
|
$
|
3,509.6
|
|
|
$
|
3,383.9
|
|
|
$
|
125.7
|
|
Organic net sales growth
|
2.2
|
%
|
|
|
|
|
|
2.9
|
%
|
|
|
|
|
||||||||||
Gross margin
|
28.0
|
%
|
|
27.6
|
%
|
|
40
|
bps
|
|
28.1
|
%
|
|
28.0
|
%
|
|
10
|
bps
|
||||||
Operating income
|
$
|
83.1
|
|
|
$
|
83.2
|
|
|
$
|
(0.1
|
)
|
|
$
|
245.3
|
|
|
$
|
247.5
|
|
|
$
|
(2.2
|
)
|
Operating income margin
|
7.0
|
%
|
|
7.3
|
%
|
|
(30
|
) bps
|
|
7.0
|
%
|
|
7.3
|
%
|
|
(30
|
) bps
|
||||||
Net income
|
$
|
49.1
|
|
|
$
|
40.6
|
|
|
$
|
8.5
|
|
|
$
|
124.6
|
|
|
$
|
121.2
|
|
|
$
|
3.4
|
|
Diluted earnings per share
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.06
|
|
|
$
|
0.94
|
|
|
$
|
0.92
|
|
|
$
|
0.02
|
|
|
September 30,
|
|
Non-GAAP reconciliation
|
||||||||||||||||||||||||||
|
|
Reported change
|
|
Currency translation
|
|
Acquisitions, net of dispositions
|
|
Organic net sales growth
|
|||||||||||||||||||||
(dollars in millions)
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|
|
|
Amount
|
|
%
|
||||||||||||||||
Three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Americas
|
$
|
717.6
|
|
|
$
|
707.7
|
|
|
$
|
9.9
|
|
|
1.4
|
%
|
|
$
|
2.2
|
|
|
$
|
13.7
|
|
|
$
|
(6.0
|
)
|
|
(0.8
|
)%
|
EMEA-APAC
|
477.6
|
|
|
428.4
|
|
|
49.2
|
|
|
11.5
|
%
|
|
18.9
|
|
|
(0.8
|
)
|
|
31.1
|
|
|
7.4
|
%
|
||||||
Total
|
$
|
1,195.2
|
|
|
$
|
1,136.1
|
|
|
$
|
59.1
|
|
|
5.2
|
%
|
|
$
|
21.1
|
|
|
$
|
12.9
|
|
|
$
|
25.1
|
|
|
2.2
|
%
|
Nine months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Americas
|
$
|
2,136.8
|
|
|
$
|
2,069.3
|
|
|
$
|
67.5
|
|
|
3.3
|
%
|
|
$
|
2.1
|
|
|
$
|
45.5
|
|
|
$
|
19.9
|
|
|
1.0
|
%
|
EMEA-APAC
|
1,372.8
|
|
|
1,314.6
|
|
|
58.2
|
|
|
4.4
|
%
|
|
(18.4
|
)
|
|
(2.6
|
)
|
|
79.2
|
|
|
6.1
|
%
|
||||||
Total
|
$
|
3,509.6
|
|
|
$
|
3,383.9
|
|
|
$
|
125.7
|
|
|
3.7
|
%
|
|
$
|
(16.3
|
)
|
|
$
|
42.9
|
|
|
$
|
99.1
|
|
|
2.9
|
%
|
|
September 30,
|
|
Non-GAAP reconciliation
|
||||||||||||||||||||||
|
|
Reported change
|
|
Currency translation
|
|
Constant-currency change
|
|||||||||||||||||||
(dollars in millions)
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
|||||||||||||
Three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit
|
$
|
334.6
|
|
|
$
|
313.5
|
|
|
$
|
21.1
|
|
|
6.7
|
%
|
|
$
|
6.3
|
|
|
$
|
14.8
|
|
|
4.7
|
%
|
Gross margin
|
28.0
|
%
|
|
27.6
|
%
|
|
40
|
|
bps
|
|
|
|
|
|
|
||||||||||
Nine months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit
|
$
|
984.8
|
|
|
$
|
947.5
|
|
|
$
|
37.3
|
|
|
3.9
|
%
|
|
$
|
(5.6
|
)
|
|
$
|
42.9
|
|
|
4.5
|
%
|
Gross margin
|
28.1
|
%
|
|
28.0
|
%
|
|
10
|
|
bps
|
|
|
|
|
|
|
|
September 30,
|
|
Non-GAAP reconciliation
|
||||||||||||||||||||||
|
|
Reported change
|
|
Currency translation
|
|
Constant-currency change
|
|||||||||||||||||||
(dollars in millions)
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
|||||||||||||
Three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses
|
$
|
251.5
|
|
|
$
|
230.3
|
|
|
$
|
21.2
|
|
|
9.2
|
%
|
|
$
|
4.6
|
|
|
$
|
16.6
|
|
|
7.2
|
%
|
% of net sales
|
21.0
|
%
|
|
20.3
|
%
|
|
70
|
|
bps
|
|
|
|
|
|
|
||||||||||
Nine months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses
|
$
|
739.5
|
|
|
$
|
700.0
|
|
|
$
|
39.5
|
|
|
5.6
|
%
|
|
$
|
(4.3
|
)
|
|
$
|
43.8
|
|
|
6.3
|
%
|
% of net sales
|
21.1
|
%
|
|
20.7
|
%
|
|
40
|
|
bps
|
|
|
|
|
|
|
|
September 30,
|
|
Non-GAAP reconciliation
|
||||||||||||||||||||||
|
|
Reported change
|
|
Currency translation
|
|
Constant-currency change
|
|||||||||||||||||||
(dollars in millions)
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
|||||||||||||
Three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
$
|
42.2
|
|
|
$
|
47.2
|
|
|
$
|
(5.0
|
)
|
|
(10.6
|
)%
|
|
$
|
0.1
|
|
|
$
|
(5.1
|
)
|
|
(10.8
|
)%
|
EMEA-APAC
|
40.9
|
|
|
36.0
|
|
|
4.9
|
|
|
13.6
|
%
|
|
1.6
|
|
|
3.3
|
|
|
9.2
|
%
|
|||||
Total
|
$
|
83.1
|
|
|
$
|
83.2
|
|
|
$
|
(0.1
|
)
|
|
(0.1
|
)%
|
|
$
|
1.7
|
|
|
$
|
(1.8
|
)
|
|
(2.2
|
)%
|
Operating income margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
5.9
|
%
|
|
6.7
|
%
|
|
(80
|
)
|
bps
|
|
|
|
|
|
|
||||||||||
EMEA-APAC
|
8.6
|
%
|
|
8.4
|
%
|
|
20
|
|
bps
|
|
|
|
|
|
|
||||||||||
Total
|
7.0
|
%
|
|
7.3
|
%
|
|
(30
|
)
|
bps
|
|
|
|
|
|
|
||||||||||
Nine months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
$
|
126.3
|
|
|
$
|
134.2
|
|
|
$
|
(7.9
|
)
|
|
(5.9
|
)%
|
|
$
|
—
|
|
|
$
|
(7.9
|
)
|
|
(5.9
|
)%
|
EMEA-APAC
|
119.0
|
|
|
113.3
|
|
|
5.7
|
|
|
5.0
|
%
|
|
(1.3
|
)
|
|
7.0
|
|
|
6.2
|
%
|
|||||
Total
|
$
|
245.3
|
|
|
$
|
247.5
|
|
|
$
|
(2.2
|
)
|
|
(0.9
|
)%
|
|
$
|
(1.3
|
)
|
|
$
|
(0.9
|
)
|
|
(0.4
|
)%
|
Operating income margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
5.9
|
%
|
|
6.5
|
%
|
|
(60
|
)
|
bps
|
|
|
|
|
|
|
||||||||||
EMEA-APAC
|
8.7
|
%
|
|
8.6
|
%
|
|
10
|
|
bps
|
|
|
|
|
|
|
||||||||||
Total
|
7.0
|
%
|
|
7.3
|
%
|
|
(30
|
)
|
bps
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
(in millions, except per share amounts)
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Amount
|
||||||||||||
Operating income
|
$
|
83.1
|
|
|
$
|
83.2
|
|
|
$
|
(0.1
|
)
|
|
$
|
245.3
|
|
|
$
|
247.5
|
|
|
$
|
(2.2
|
)
|
Interest expense
|
(21.8
|
)
|
|
(20.6
|
)
|
|
(1.2
|
)
|
|
(61.1
|
)
|
|
(60.5
|
)
|
|
(0.6
|
)
|
||||||
Other income (expense), net
|
8.3
|
|
|
(0.4
|
)
|
|
8.7
|
|
|
4.8
|
|
|
(0.9
|
)
|
|
5.7
|
|
||||||
Income tax provision
|
(20.5
|
)
|
|
(21.6
|
)
|
|
1.1
|
|
|
(64.4
|
)
|
|
(64.9
|
)
|
|
0.5
|
|
||||||
Net income
|
$
|
49.1
|
|
|
$
|
40.6
|
|
|
$
|
8.5
|
|
|
$
|
124.6
|
|
|
$
|
121.2
|
|
|
$
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted earnings per share
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.06
|
|
|
$
|
0.94
|
|
|
$
|
0.92
|
|
|
$
|
0.02
|
|
(in millions)
|
Accounts receivable securitization facility
|
|
Multi-currency revolving loan facility
|
|
Total
|
||||||
Maximum availability
|
$
|
175.0
|
|
|
$
|
250.0
|
|
|
$
|
425.0
|
|
|
|
|
|
|
|
||||||
Current availability
|
$
|
175.0
|
|
|
$
|
250.0
|
|
|
$
|
425.0
|
|
Undrawn letters of credit outstanding
|
(10.9
|
)
|
|
(1.8
|
)
|
|
(12.7
|
)
|
|||
Outstanding borrowings
|
(163.9
|
)
|
|
(83.7
|
)
|
|
(247.6
|
)
|
|||
Unused availability
|
$
|
0.2
|
|
|
$
|
164.5
|
|
|
$
|
164.7
|
|
|
Nine months ended September 30,
|
||||||
(in millions)
|
2017
|
|
2016
|
||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
202.3
|
|
|
$
|
186.1
|
|
Investing activities
|
(234.2
|
)
|
|
(106.3
|
)
|
||
Financing activities
|
(27.9
|
)
|
|
(78.2
|
)
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
|
VWR Corporation
|
||
|
|
||
Date: November 7, 2017
|
By:
|
/s/ Douglas J. Pitts
|
|
|
|
Name:
|
Douglas J. Pitts
|
|
|
Title:
|
Vice President and Corporate Controller
(Chief Accounting Officer and Duly Authorized Officer)
|
Exhibit No.
|
|
Exhibit Description
|
|
Method of Filing
|
|
|
Filed herewith
|
||
|
|
Filed herewith
|
||
|
|
Furnished herewith
|
||
|
|
Furnished herewith
|
||
101
|
|
XBRL exhibits
|
|
Filed herewith
|
1 Year VWR CORP Chart |
1 Month VWR CORP Chart |
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