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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Vertiv Holdings LLC | NYSE:VRT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
3.14 | 3.48% | 93.49 | 95.32 | 92.56 | 92.87 | 15,253,921 | 01:00:00 |
UNITED STATES | ||||||||||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
Washington, D. C. 20549 | ||||||||||||||
FORM 10-Q
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☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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For the Quarterly period ended June 30, 2021
|
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or | ||||||||||||||
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from __to__ | ||||||||||||||
Commission File No. 001-38518
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Vertiv Holdings Co | ||||||||||||||
(Exact name of registrant as specified in its charter) | ||||||||||||||
Delaware
(State or other jurisdiction of
incorporation or organization)
|
81-2376902
(I.R.S Employer
Identification No.)
|
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1050 Dearborn Dr, Columbus, Ohio 43085
|
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(Address of principal executive offices including zip code) | ||||||||||||||
614-888-0246
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(Registrant's telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A common stock, $0.0001 par value per share
|
VRT | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
TABLE OF CONTENTS | |||||||||||||||||
Page | |||||||||||||||||
Three months ended June 30, 2021 |
Three months ended June 30, 2020
|
Six months ended June 30, 2021 |
Six months ended June 30, 2020
|
||||||||||||||||||||
Net sales | |||||||||||||||||||||||
Net sales - products | $ | 976.5 | $ | 750.2 | $ | 1,820.5 | $ | 1,397.4 | |||||||||||||||
Net sales - services | 283.8 | 255.5 | 538.2 | 505.6 | |||||||||||||||||||
Net sales | 1,260.3 | 1,005.7 | 2,358.7 | 1,903.0 | |||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||
Cost of sales - products | 686.2 | 515.3 | 1,279.6 | 978.5 | |||||||||||||||||||
Cost of sales - services | 164.8 | 144.0 | 311.8 | 291.1 | |||||||||||||||||||
Cost of sales | 851.0 | 659.3 | 1,591.4 | 1,269.6 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Selling, general and administrative expenses | 271.7 | 226.3 | 521.8 | 491.1 | |||||||||||||||||||
Amortization of intangibles | 31.9 | 32.2 | 63.7 | 64.6 | |||||||||||||||||||
Restructuring costs | 1.1 | 2.4 | 3.1 | 1.3 | |||||||||||||||||||
Foreign currency (gain) loss, net | 4.1 | 2.8 | (2.8) | 4.6 | |||||||||||||||||||
Asset impairments | — | 12.3 | — | 12.3 | |||||||||||||||||||
Other operating expense (income) | (1.7) | (0.2) | (0.5) | 1.1 | |||||||||||||||||||
Operating profit (loss) | 102.2 | 70.6 | 182.0 | 58.4 | |||||||||||||||||||
Interest expense, net | 20.0 | 30.1 | 44.1 | 99.0 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | 0.4 | 174.0 | |||||||||||||||||||
Change in fair value of warrant liabilities | 71.2 | 82.2 | 84.8 | 21.6 | |||||||||||||||||||
Income (loss) before income taxes | 11.0 | (41.7) | 52.7 | (236.2) | |||||||||||||||||||
Income tax expense | 1.3 | 14.3 | 11.3 | 28.1 | |||||||||||||||||||
Net income (loss) | $ | 9.7 | $ | (56.0) | $ | 41.4 | $ | (264.3) | |||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||
Basic | $ | 0.03 | $ | (0.17) | $ | 0.12 | $ | (0.93) | |||||||||||||||
Diluted | $ | 0.03 | $ | (0.17) | $ | 0.12 | $ | (0.93) | |||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||
Basic | 352,199,184 | 328,411,705 | 350,908,612 | 284,534,285 | |||||||||||||||||||
Diluted | 356,652,811 | 328,411,705 | 354,883,869 | 284,534,285 |
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | ||||||||||||||||||||
Net income (loss) | $ | 9.7 | $ | (56.0) | $ | 41.4 | $ | (264.3) | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation | 20.2 | 11.9 | (15.9) | (42.4) | |||||||||||||||||||
Interest rate swaps | (8.6) | (11.5) | 25.3 | (35.5) | |||||||||||||||||||
Tax receivable agreement | (9.4) | (9.7) | (5.3) | 16.2 | |||||||||||||||||||
Pension | 0.2 | — | (0.6) | (0.2) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 2.4 | (9.3) | 3.5 | (61.9) | |||||||||||||||||||
Comprehensive income (loss) | $ | 12.1 | $ | (65.3) | $ | 44.9 | $ | (326.2) |
June 30, 2021 |
December 31, 2020
|
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ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 708.8 | $ | 534.6 | |||||||
Accounts receivable, less allowances of $21.9 and $22.3, respectively
|
1,374.0 | 1,354.4 | |||||||||
Inventories | 551.4 | 446.6 | |||||||||
Other current assets | 215.2 | 183.2 | |||||||||
Total current assets | 2,849.4 | 2,518.8 | |||||||||
Property, plant and equipment, net | 409.2 | 427.6 | |||||||||
Other assets: | |||||||||||
Goodwill | 603.1 | 607.2 | |||||||||
Other intangible assets, net | 1,235.1 | 1,302.5 | |||||||||
Deferred income taxes | 16.5 | 20.9 | |||||||||
Other | 218.7 | 196.8 | |||||||||
Total other assets | 2,073.4 | 2,127.4 | |||||||||
Total assets | $ | 5,332.0 | $ | 5,073.8 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 21.8 | $ | 22.0 | |||||||
Current portion of warrant liabilities | — | 68.5 | |||||||||
Accounts payable | 766.4 | 730.5 | |||||||||
Accrued expenses and other liabilities | 897.2 | 901.8 | |||||||||
Income taxes | 25.4 | 18.8 | |||||||||
Total current liabilities | 1,710.8 | 1,741.6 | |||||||||
Long-term debt, net | 2,122.8 | 2,130.5 | |||||||||
Deferred income taxes | 89.9 | 116.5 | |||||||||
Warrant liabilities | 172.5 | 87.7 | |||||||||
Other long-term liabilities | 492.3 | 485.4 | |||||||||
Total liabilities | 4,588.3 | 4,561.7 | |||||||||
Equity | |||||||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding
|
— | — | |||||||||
Common stock, $0.0001 par value, 700,000,000 shares authorized, 352,331,540 and 342,024,612 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively
|
— | — | |||||||||
Additional paid-in capital | 1,978.5 | 1,791.8 | |||||||||
Accumulated deficit | (1,289.8) | (1,331.2) | |||||||||
Accumulated other comprehensive (loss) income | 55.0 | 51.5 | |||||||||
Total equity | 743.7 | 512.1 | |||||||||
Total liabilities and equity | $ | 5,332.0 | $ | 5,073.8 |
Six months ended June 30, 2021 | Six months ended June 30, 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 41.4 | $ | (264.3) | |||||||
Adjustments to reconcile net income (loss) to net cash used for operating activities: | |||||||||||
Depreciation | 35.2 | 28.5 | |||||||||
Amortization | 70.5 | 72.0 | |||||||||
Deferred income taxes | (22.3) | (5.9) | |||||||||
Amortization of debt discount and issuance costs | 3.3 | 7.6 | |||||||||
Loss on extinguishment of debt | 0.4 | 174.0 | |||||||||
Change in fair value of warrant liabilities | 84.8 | 21.6 | |||||||||
Capitalized software write-off | — | 12.3 | |||||||||
Changes in operating working capital | (126.1) | (168.6) | |||||||||
Stock based compensation | 11.8 | 3.2 | |||||||||
Changes in tax receivable agreement | 1.6 | 16.2 | |||||||||
Other | 19.4 | (18.3) | |||||||||
Net cash provided by (used for) operating activities | 120.0 | (121.7) | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (30.4) | (13.2) | |||||||||
Investments in capitalized software | (5.4) | (6.2) | |||||||||
Net cash used for investing activities | (35.8) | (19.4) | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings from ABL revolving credit facility | — | 324.2 | |||||||||
Repayments of ABL revolving credit facility | — | (199.1) | |||||||||
Proceeds from short-term borrowings | — | 20.2 | |||||||||
Borrowing on Term Loan, net of discount | — | 2,189.0 | |||||||||
Repayment on Term Loan | (10.9) | (5.5) | |||||||||
Repayment on Prior Term Loan | — | (2,070.0) | |||||||||
Repayment of Prior Notes | — | (1,370.0) | |||||||||
Payment of redemption premiums | — | (75.0) | |||||||||
Payment of debt issuance costs | — | (11.2) | |||||||||
Proceeds from reverse recapitalization, net | — | 1,832.5 | |||||||||
Payment to Vertiv Stockholder | — | (341.6) | |||||||||
Proceeds from the exercise of warrants | 107.5 | — | |||||||||
Exercise of employee stock options | 2.1 | — | |||||||||
Employee taxes paid from shares withheld | (7.0) | — | |||||||||
Net cash provided by financing activities | 91.7 | 293.5 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (1.7) | (6.2) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 174.2 | 146.2 | |||||||||
Beginning cash, cash equivalents and restricted cash | 542.6 | 233.7 | |||||||||
Ending cash, cash equivalents and restricted cash | $ | 716.8 | $ | 379.9 | |||||||
Changes in operating working capital | |||||||||||
Accounts receivable | $ | (28.4) | $ | 27.2 | |||||||
Inventories | (107.3) | (66.9) | |||||||||
Other current assets | (8.1) | (1.2) | |||||||||
Accounts payable | 50.9 | (21.1) | |||||||||
Accrued expenses and other liabilities | (16.0) | (116.0) | |||||||||
Income taxes | (17.2) | 9.4 | |||||||||
Total changes in operating working capital | $ | (126.1) | $ | (168.6) |
Share Capital | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019, as originally reported
|
1,000,000 | $ | — | $ | 277.7 | $ | (1,000.6) | $ | 18.1 | $ | (704.8) | |||||||||||||||||||||||||||||||||
Conversion of units of share capital | 117,261,955 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019, as recasted (1)
|
118,261,955 | — | 277.7 | (1,000.6) | 18.1 | (704.8) | ||||||||||||||||||||||||||||||||||||||
Tax Receivable Agreement | — | (133.4) | — | — | (133.4) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | (208.3) | — | (208.3) | |||||||||||||||||||||||||||||||||||||||
Stock issuance | 123,900,000 | — | 1,195.1 | — | — | 1,195.1 | ||||||||||||||||||||||||||||||||||||||
Merger recapitalization (2)
|
86,249,750 | — | 179.5 | — | — | 179.5 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 0.7 | — | — | 0.7 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | (52.6) | (52.6) | ||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020
|
328,411,705 | $ | — | $ | 1,519.6 | $ | (1,208.9) | $ | (34.5) | $ | 276.2 | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (56.0) | — | (56.0) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2.5 | — | — | 2.5 | ||||||||||||||||||||||||||||||||||||||
Other merger adjustment | — | — | (0.4) | — | — | (0.4) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | (9.3) | (9.3) | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020
|
328,411,705 | $ | — | $ | 1,521.7 | $ | (1,264.9) | $ | (43.8) | $ | 213.0 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2020
|
342,024,612 | $ | — | $ | 1,791.8 | $ | (1,331.2) | $ | 51.5 | $ | 512.1 | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 31.7 | — | 31.7 | ||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options | 76,047 | — | 0.9 | — | — | 0.9 | ||||||||||||||||||||||||||||||||||||||
Employee 401K match with Vertiv stock | 69,309 | — | 1.3 | — | — | 1.3 | ||||||||||||||||||||||||||||||||||||||
Exercise of warrants (3)
|
9,346,822 | — | 176.0 | — | — | 176.0 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 5.6 | — | — | 5.6 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | 1.1 | 1.1 | ||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021
|
351,516,790 | $ | — | $ | 1,975.6 | $ | (1,299.5) | $ | 52.6 | $ | 728.7 | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 9.7 | — | 9.7 | ||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options | 120,721 | — | 1.4 | — | — | 1.4 | ||||||||||||||||||||||||||||||||||||||
Stock comp activity, net of withholdings for tax (4)
|
586,139 | — | (0.8) | — | — | (0.8) | ||||||||||||||||||||||||||||||||||||||
Employee 401K match with Vertiv stock | 107,890 | — | 2.3 | — | — | 2.3 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | 2.4 | 2.4 | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021
|
352,331,540 | $ | — | $ | 1,978.5 | $ | (1,289.8) | $ | 55.0 | $ | 743.7 |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||
Americas | Asia Pacific | Europe, Middle East, & Africa | Total | ||||||||||||||||||||
Sales by Product and Service Offering: | |||||||||||||||||||||||
Critical infrastructure & solutions | $ | 305.3 | $ | 239.8 | $ | 181.7 | $ | 726.8 | |||||||||||||||
Services & spares | 179.6 | 106.3 | 77.3 | 363.2 | |||||||||||||||||||
Integrated rack solutions | 80.0 | 51.9 | 38.4 | 170.3 | |||||||||||||||||||
Total | $ | 564.9 | $ | 398.0 | $ | 297.4 | $ | 1,260.3 | |||||||||||||||
Timing of revenue recognition: | |||||||||||||||||||||||
Products and services transferred at a point in time | $ | 403.1 | $ | 315.8 | $ | 248.3 | $ | 967.2 | |||||||||||||||
Products and services transferred over time | 161.8 | 82.2 | 49.1 | 293.1 | |||||||||||||||||||
Total | $ | 564.9 | $ | 398.0 | $ | 297.4 | $ | 1,260.3 |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||
Americas | Asia Pacific | Europe, Middle East, & Africa | Total | ||||||||||||||||||||
Sales by Product and Service Offering: (1)
|
|||||||||||||||||||||||
Critical infrastructure & solutions | $ | 251.1 | $ | 196.8 | $ | 99.4 | $ | 547.3 | |||||||||||||||
Services & spares | 161.1 | 86.1 | 64.7 | 311.9 | |||||||||||||||||||
Integrated rack solutions | 72.5 | 39.9 | 34.1 | 146.5 | |||||||||||||||||||
Total | $ | 484.7 | $ | 322.8 | $ | 198.2 | $ | 1,005.7 | |||||||||||||||
Timing of revenue recognition: | |||||||||||||||||||||||
Products and services transferred at a point in time | $ | 332.4 | $ | 256.8 | $ | 153.4 | $ | 742.6 | |||||||||||||||
Products and services transferred over time | 152.3 | 66.0 | 44.8 | 263.1 | |||||||||||||||||||
Total | $ | 484.7 | $ | 322.8 | $ | 198.2 | $ | 1,005.7 |
Six Months Ended June 30, 2021 | |||||||||||||||||||||||
Americas | Asia Pacific | Europe, Middle East, & Africa | Total | ||||||||||||||||||||
Sales by Product and Service Offering: | |||||||||||||||||||||||
Critical infrastructure & solutions | $ | 584.8 | $ | 455.8 | $ | 314.1 | $ | 1,354.7 | |||||||||||||||
Services & spares | 333.7 | 201.8 | 149.4 | 684.9 | |||||||||||||||||||
Integrated rack solutions | 147.9 | 97.8 | 73.4 | 319.1 | |||||||||||||||||||
Total | $ | 1,066.4 | $ | 755.4 | $ | 536.9 | $ | 2,358.7 | |||||||||||||||
Timing of revenue recognition: | |||||||||||||||||||||||
Products and services transferred at a point in time | $ | 763.6 | $ | 597.4 | $ | 443.3 | $ | 1,804.3 | |||||||||||||||
Products and services transferred over time | 302.8 | 158.0 | 93.6 | 554.4 | |||||||||||||||||||
Total | $ | 1,066.4 | $ | 755.4 | $ | 536.9 | $ | 2,358.7 |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||
Americas | Asia Pacific | Europe, Middle East, & Africa | Total | ||||||||||||||||||||
Sales by Product and Service Offering: (1)
|
|||||||||||||||||||||||
Critical infrastructure & solutions | $ | 491.2 | $ | 310.8 | $ | 204.7 | $ | 1,006.7 | |||||||||||||||
Services & spares | 322.7 | 164.9 | 129.9 | 617.5 | |||||||||||||||||||
Integrated rack solutions | 137.5 | 71.0 | 70.3 | 278.8 | |||||||||||||||||||
Total | $ | 951.4 | $ | 546.7 | $ | 404.9 | $ | 1,903.0 | |||||||||||||||
Timing of revenue recognition: | |||||||||||||||||||||||
Products and services transferred at a point in time | $ | 645.6 | $ | 417.7 | $ | 319.2 | $ | 1,382.5 | |||||||||||||||
Products and services transferred over time | 305.8 | 129.0 | 85.7 | 520.5 | |||||||||||||||||||
Total | $ | 951.4 | $ | 546.7 | $ | 404.9 | $ | 1,903.0 |
Balances at
June 30, 2021
|
Balances at December 31, 2020
|
||||||||||
Deferred revenue - current (1)
|
$ | 231.1 | $ | 199.6 | |||||||
Deferred revenue - noncurrent (2)
|
42.3 | 38.8 | |||||||||
Other contract liabilities - current (1)
|
50.5 | 36.1 |
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | ||||||||||||||||||||
Americas | $ | 1.4 | $ | 0.7 | $ | 2.1 | $ | 1.0 | |||||||||||||||
Asia Pacific | 3.2 | — | 3.4 | 0.2 | |||||||||||||||||||
Europe, Middle East & Africa | (3.8) | 1.6 | (2.7) | 0.8 | |||||||||||||||||||
Corporate | 0.3 | 0.1 | 0.3 | (0.7) | |||||||||||||||||||
Total | $ | 1.1 | $ | 2.4 | $ | 3.1 | $ | 1.3 |
December 31, 2020 | Expense | Paid/Utilized | June 30, 2021 | ||||||||||||||||||||
Severance and benefits | $ | 68.9 | $ | (0.4) | $ | (15.8) | $ | 52.7 | |||||||||||||||
Plant closing and other | 0.4 | 3.5 | (3.6) | 0.3 | |||||||||||||||||||
Total | $ | 69.3 | $ | 3.1 | $ | (19.4) | $ | 53.0 |
December 31, 2019 | Expense | Paid/Utilized | June 30, 2020 | ||||||||||||||||||||
Severance and benefits | $ | 21.6 | $ | 0.6 | $ | (12.7) | $ | 9.5 | |||||||||||||||
Plant closing and other | 0.6 | 0.7 | (0.8) | 0.5 | |||||||||||||||||||
Total | $ | 22.2 | $ | 1.3 | $ | (13.5) | $ | 10.0 |
June 30, 2021 | December 31, 2020 | ||||||||||
Term Loan due 2027 at 2.84% and 3.15% at June 30, 2021 and December 31, 2020, respectively.
|
$ | 2,172.6 | $ | 2,183.5 | |||||||
Unamortized discount and issuance costs | (28.0) | (31.0) | |||||||||
2,144.6 | 2,152.5 | ||||||||||
Less: Current Portion | (21.8) | (22.0) | |||||||||
Total long-term debt, net of current portion | $ | 2,122.8 | $ | 2,130.5 |
Term Loan | |||||||||||||||||
Remainder of 2021 | $ | 10.9 | |||||||||||||||
2022 | 21.8 | ||||||||||||||||
2023 | 21.8 | ||||||||||||||||
2024 | 21.8 | ||||||||||||||||
2025 | 21.8 | ||||||||||||||||
2026 | 21.8 | ||||||||||||||||
Thereafter | 2,052.7 | ||||||||||||||||
Total | $ | 2,172.6 |
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | ||||||||||||||||||||
Operating lease cost | $ | 14.9 | $ | 12.3 | $ | 28.6 | $ | 25.2 | |||||||||||||||
Short-term and variable lease cost | 5.3 | 5.6 | 10.5 | 13.1 | |||||||||||||||||||
Total lease cost | $ | 20.2 | $ | 17.9 | $ | 39.1 | $ | 38.3 |
Six months ended June 30, 2021 | Six months ended June 30, 2020 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash outflows - Payments on operating leases | $ | 27.9 | $ | 25.2 | |||||||
Right-of-use assets obtained in exchange for new lease obligations: | |||||||||||
Operating leases | $ | 45.4 | $ | 24.6 | |||||||
Financial statement line item | June 30, 2021 | December 31, 2020 | ||||||||||||
Operating lease right-of-use assets | Other assets | $ | 163.9 | $ | 145.8 | |||||||||
Operating lease liabilities | Accrued expenses and other liabilities | 43.7 | 42.3 | |||||||||||
Operating lease liabilities | Other long-term liabilities | 124.4 | 107.3 | |||||||||||
Total lease liabilities | $ | 168.1 | $ | 149.6 |
June 30, 2021 | December 31, 2020 | ||||||||||
Weighted Average Remaining Lease Term | 5.7 years | 4.5 years | |||||||||
Weighted Average Discount Rate | 5.5 | % | 5.8 | % | |||||||
June 30, 2021 | December 31, 2020 | ||||||||||||||||
Operating Leases | |||||||||||||||||
2021 | $ | 27.4 | $ | 51.0 | |||||||||||||
2022 | 47.6 | 41.4 | |||||||||||||||
2023 | 39.7 | 33.4 | |||||||||||||||
2024 | 27.1 | 20.9 | |||||||||||||||
2025 | 16.1 | 10.4 | |||||||||||||||
Thereafter | 41.8 | 17.2 | |||||||||||||||
Total Lease Payments | 199.7 | 174.3 | |||||||||||||||
Less: Imputed Interest | (31.6) | (24.7) | |||||||||||||||
Present value of lease liabilities | $ | 168.1 | $ | 149.6 |
June 30, 2021 | December 31, 2020 | ||||||||||
Reconciliation of cash, cash equivalents, and restricted cash | |||||||||||
Cash and cash equivalents | $ | 708.8 | $ | 534.6 | |||||||
Restricted cash included in other current assets | 8.0 | 8.0 | |||||||||
Total cash, cash equivalents, and restricted cash | $ | 716.8 | $ | 542.6 |
June 30, 2021 | December 31, 2020 | ||||||||||
Inventories | |||||||||||
Finished products | $ | 222.9 | $ | 201.0 | |||||||
Raw materials | 177.2 | 155.7 | |||||||||
Work in process | 151.3 | 89.9 | |||||||||
Total inventories | $ | 551.4 | $ | 446.6 | |||||||
June 30, 2021 | December 31, 2020 | ||||||||||
Property, plant and equipment, net | |||||||||||
Machinery and equipment | $ | 341.3 | $ | 322.4 | |||||||
Buildings | 255.0 | 255.5 | |||||||||
Land | 46.9 | 47.4 | |||||||||
Construction in progress | 16.7 | 23.1 | |||||||||
Property, plant and equipment, at cost | 659.9 | 648.4 | |||||||||
Less: Accumulated depreciation | (250.7) | (220.8) | |||||||||
Property, plant and equipment, net | $ | 409.2 | $ | 427.6 | |||||||
June 30, 2021 | December 31, 2020 | ||||||||||
Accrued expenses and other liabilities | |||||||||||
Deferred revenue | $ | 231.1 | $ | 199.6 | |||||||
Accrued payroll and other employee compensation | 119.1 | 138.5 | |||||||||
Litigation reserve (see note 14)
|
96.2 | 96.6 | |||||||||
Contract liabilities (see note 3)
|
50.5 | 36.1 | |||||||||
Operating lease liabilities | 43.7 | 42.3 | |||||||||
Product warranty | 35.9 | 36.5 | |||||||||
Restructuring (see note 4)
|
53.0 | 69.3 | |||||||||
Other | 267.7 | 282.9 | |||||||||
Total | $ | 897.2 | $ | 901.8 |
2021 | 2020 | ||||||||||
Change in product warranty accrual | |||||||||||
Beginning balance, January 1 | $ | 36.5 | $ | 43.3 | |||||||
Provision charge to expense | 11.3 | 13.2 | |||||||||
Paid/utilized | (11.9) | (19.6) | |||||||||
Ending balance, June 30,
|
$ | 35.9 | $ | 36.9 |
Balance Sheet Location | Total | Quoted prices in active markets for identical assets (Level 1) | Other observable inputs (Level 2) | Unobservable inputs (Level 3) | ||||||||||||||||||||||
June 30, 2021
|
||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Interest rate swaps | Other noncurrent assets | $ | 2.7 | $ | — | $ | 2.7 | $ | — | |||||||||||||||||
Total assets | $ | 2.7 | $ | — | $ | 2.7 | $ | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Interest rate swaps | Accrued expenses and other liabilities | $ | 10.2 | $ | — | $ | 10.2 | $ | — | |||||||||||||||||
Tax Receivable Agreement | Other long-term liabilities | 162.5 | — | — | 162.5 | |||||||||||||||||||||
Private warrants | Warrant liabilities | 172.5 | — | 172.5 | — | |||||||||||||||||||||
Total liabilities | $ | 345.2 | $ | — | $ | 182.7 | $ | 162.5 |
Balance Sheet Location | Total | Quoted prices in active markets for identical assets (Level 1) | Other observable inputs (Level 2) | Unobservable inputs (Level 3) | ||||||||||||||||||||||
December 31, 2020
|
||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Tax Receivable Agreement | Other long-term liabilities | $ | 155.6 | $ | — | $ | — | $ | 155.6 | |||||||||||||||||
Interest rate swaps | Accrued expenses and other liabilities | 10.3 | — | 10.3 | — | |||||||||||||||||||||
Interest rate swaps | Other long-term liabilities | 22.5 | — | 22.5 | — | |||||||||||||||||||||
Public warrants | Current portion of warrant liabilities | 68.5 | 68.5 | — | — | |||||||||||||||||||||
Private warrants | Warrant liabilities | 87.7 | — | 87.7 | — | |||||||||||||||||||||
Total liabilities | $ | 344.6 | $ | 68.5 | $ | 120.5 | $ | 155.6 |
2021 | 2020 | ||||||||||||||||
Beginning liability balance, January 1 | $ | 155.6 | $ | — | |||||||||||||
Tax receivable agreement, initially recorded | — | 133.4 | |||||||||||||||
Change in fair value | 6.9 | (0.1) | |||||||||||||||
Ending liability balance, June 30,
|
$ | 162.5 | $ | 133.3 |
Warrant valuation inputs | June 30, 2021 | December 31, 2020 | ||||||||||||
Stock price | $ | 27.30 | $ | 18.67 | ||||||||||
Strike price | $ | 11.50 | $ | 11.50 | ||||||||||
Remaining life | 3.60 | 4.10 | ||||||||||||
Volatility | 32.8 | % | 29.0 | % | ||||||||||
Interest rate (1)
|
0.58 | % | 0.27 | % | ||||||||||
Dividend yield (2)
|
0.04 | % | 0.05 | % |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Fair Value |
Par Value (1)
|
Fair Value |
Par Value (1)
|
||||||||||||||||||||
Term Loan due 2027 | $ | 2,156.3 | $ | 2,172.6 | $ | 2,169.9 | $ | 2,183.5 | |||||||||||||||
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | ||||||||||||||||||||
Foreign currency translation, beginning | $ | 68.8 | $ | (21.4) | $ | 104.9 | $ | 32.9 | |||||||||||||||
Other comprehensive income (loss) | 20.2 | 11.9 | (15.9) | (42.4) | |||||||||||||||||||
Foreign currency translation, ending | 89.0 | (9.5) | 89.0 | (9.5) | |||||||||||||||||||
Interest rate swaps, beginning | 1.1 | (24.0) | (32.8) | — | |||||||||||||||||||
Unrealized gain (loss) deferred during the period (1)
|
(8.6) | (11.5) | 25.3 | (35.5) | |||||||||||||||||||
Interest rate swaps, ending | (7.5) | (35.5) | (7.5) | (35.5) | |||||||||||||||||||
Pension, beginning | (20.5) | (15.0) | (19.7) | (14.8) | |||||||||||||||||||
Actuarial gains (losses) recognized during the period, net of income taxes | 0.2 | — | (0.6) | (0.2) | |||||||||||||||||||
Pension, ending | (20.3) | (15.0) | (20.3) | (15.0) | |||||||||||||||||||
Tax receivable agreement, beginning | 3.2 | 25.9 | (0.9) | — | |||||||||||||||||||
Unrealized gain (loss) during the period (2)
|
(9.4) | (9.7) | (5.3) | 16.2 | |||||||||||||||||||
Tax receivable agreement, ending | (6.2) | 16.2 | (6.2) | 16.2 | |||||||||||||||||||
Accumulated other comprehensive income (loss) | $ | 55.0 | $ | (43.8) | $ | 55.0 | $ | (43.8) |
Sales | Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||||||||||||||
Americas | $ | 568.2 | $ | 488.1 | $ | 1,074.1 | $ | 957.5 | |||||||||||||||
Asia Pacific | 416.3 | 340.6 | 793.9 | 579.6 | |||||||||||||||||||
Europe, Middle East & Africa | 310.2 | 210.1 | 560.6 | 427.8 | |||||||||||||||||||
1,294.7 | 1,038.8 | 2,428.6 | 1,964.9 | ||||||||||||||||||||
Eliminations | (34.4) | (33.1) | (69.9) | (61.9) | |||||||||||||||||||
Total | $ | 1,260.3 | $ | 1,005.7 | $ | 2,358.7 | $ | 1,903.0 |
Intersegment sales (1)
|
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||||||||||||||
Americas | $ | 3.3 | $ | 3.4 | $ | 7.7 | $ | 6.1 | |||||||||||||||
Asia Pacific | 18.3 | 17.8 | 38.5 | 32.9 | |||||||||||||||||||
Europe, Middle East & Africa | 12.8 | 11.9 | 23.7 | 22.9 | |||||||||||||||||||
Total | $ | 34.4 | $ | 33.1 | $ | 69.9 | $ | 61.9 |
Operating profit (loss) (1)
|
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||||||||||||||
Americas | $ | 128.6 | $ | 130.0 | $ | 255.0 | $ | 221.5 | |||||||||||||||
Asia Pacific | 62.8 | 56.1 | 115.9 | 77.0 | |||||||||||||||||||
Europe, Middle East & Africa | 62.4 | 27.5 | 95.8 | 48.3 | |||||||||||||||||||
Total reportable segments | 253.8 | 213.6 | 466.7 | 346.8 | |||||||||||||||||||
Foreign currency gain (loss) | (4.1) | (2.8) | 2.8 | (4.6) | |||||||||||||||||||
Corporate and other | (115.6) | (108.0) | (223.8) | (219.2) | |||||||||||||||||||
Total corporate, other and eliminations | (119.7) | (110.8) | (221.0) | (223.8) | |||||||||||||||||||
Amortization of intangibles | (31.9) | (32.2) | (63.7) | (64.6) | |||||||||||||||||||
Operating profit (loss) | $ | 102.2 | $ | 70.6 | $ | 182.0 | $ | 58.4 |
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | ||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 9.7 | $ | (56.0) | $ | 41.4 | $ | (264.3) | |||||||||||||||
Weighted-average number of ordinary shares outstanding - basic | 352,199,184 | 328,411,705 | 350,908,612 | 284,534,285 | |||||||||||||||||||
Dilutive effect of equity-based compensation and warrants | 4,453,627 | — | 3,975,257 | — | |||||||||||||||||||
Weighted-average number of ordinary shares outstanding - diluted | 356,652,811 | 328,411,705 | 354,883,869 | 284,534,285 | |||||||||||||||||||
Net income per share attributable to common shareholders | |||||||||||||||||||||||
Basic | $ | 0.03 | $ | (0.17) | $ | 0.12 | $ | (0.93) | |||||||||||||||
Diluted | 0.03 | (0.17) | 0.12 | (0.93) |
(Dollars in millions) |
Three months ended June 30, 2021
|
Three months ended June 30, 2020
|
$ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 1,260.3 | $ | 1,005.7 | $ | 254.6 | 25.3 | % | |||||||||||||||||||||
Cost of sales | 851.0 | 659.3 | 191.7 | 29.1 | % | ||||||||||||||||||||||||
Gross profit | 409.3 | 346.4 | 62.9 | 18.2 | % | ||||||||||||||||||||||||
Selling, general and administrative expenses | 271.7 | 226.3 | 45.4 | (20.1) | % | ||||||||||||||||||||||||
Amortization of intangibles | 31.9 | 32.2 | (0.3) | 0.9 | % | ||||||||||||||||||||||||
Restructuring costs | 1.1 | 2.4 | (1.3) | 54.2 | % | ||||||||||||||||||||||||
Foreign currency (gain) loss, net | 4.1 | 2.8 | 1.3 | (46.4) | % | ||||||||||||||||||||||||
Asset impairments | — | 12.3 | (12.3) | 100.0 | % | ||||||||||||||||||||||||
Other operating expense (income) | (1.7) | (0.2) | (1.5) | (750.0) | % | ||||||||||||||||||||||||
Operating profit (loss) | 102.2 | 70.6 | 31.6 | (44.8) | % | ||||||||||||||||||||||||
Interest expense, net | 20.0 | 30.1 | (10.1) | 33.6 | % | ||||||||||||||||||||||||
Change in fair value of warrant liabilities | 71.2 | 82.2 | (11.0) | 13.4 | % | ||||||||||||||||||||||||
Income tax expense (benefit) | 1.3 | 14.3 | (13.0) | 90.9 | % | ||||||||||||||||||||||||
Net income (loss) | $ | 9.7 | $ | (56.0) | $ | 65.7 | 117.3 | % |
(Dollars in millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 564.9 | $ | 484.7 | $ | 80.2 | 16.5 | % | |||||||||||||||||||||
Operating profit (loss) | 128.6 | 130.0 | (1.4) | (1.1) | % | ||||||||||||||||||||||||
Margin | 22.8 | % | 26.8 | % |
(Dollars in millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 398.0 | $ | 322.8 | $ | 75.2 | 23.3 | % | |||||||||||||||||||||
Operating profit (loss) | 62.8 | 56.1 | 6.7 | 11.9 | % | ||||||||||||||||||||||||
Margin | 15.8 | % | 17.4 | % |
(Dollars in millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 297.4 | $ | 198.2 | $ | 99.2 | 50.1 | % | ||||||||||||||||||
Operating profit (loss) | 62.4 | 27.5 | 34.9 | 126.9 | % | |||||||||||||||||||||
Margin | 21.0 | % | 13.9 | % |
(Dollars in millions) | Six months ended June 30, 2021 | Six months ended June 30, 2020 | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 2,358.7 | $ | 1,903.0 | $ | 455.7 | 23.9 | % | |||||||||||||||||||||
Cost of sales | 1,591.4 | 1,269.6 | 321.8 | 25.3 | % | ||||||||||||||||||||||||
Gross profit | 767.3 | 633.4 | 133.9 | 21.1 | % | ||||||||||||||||||||||||
Selling, general and administrative expenses | 521.8 | 491.1 | 30.7 | (6.3) | % | ||||||||||||||||||||||||
Amortization of intangibles | 63.7 | 64.6 | (0.9) | 1.4 | % | ||||||||||||||||||||||||
Restructuring costs | 3.1 | 1.3 | 1.8 | (138.5) | % | ||||||||||||||||||||||||
Foreign currency (gain) loss, net | (2.8) | 4.6 | (7.4) | 160.9 | % | ||||||||||||||||||||||||
Asset impairments | — | 12.3 | (12.3) | 100.0 | % | ||||||||||||||||||||||||
Other operating expense (income) | (0.5) | 1.1 | (1.6) | 145.5 | % | ||||||||||||||||||||||||
Operating profit (loss) | 182.0 | 58.4 | 123.6 | (211.6) | % | ||||||||||||||||||||||||
Interest expense, net | 44.1 | 99.0 | (54.9) | 55.5 | % | ||||||||||||||||||||||||
Loss on extinguishment of debt | 0.4 | 174.0 | (173.6) | 99.8 | % | ||||||||||||||||||||||||
Change in fair value of warrant liabilities | 84.8 | 21.6 | 63.2 | (292.6) | % | ||||||||||||||||||||||||
Income tax expense (benefit) | 11.3 | 28.1 | (16.8) | 59.8 | % | ||||||||||||||||||||||||
Net income (loss) | $ | 41.4 | $ | (264.3) | $ | 305.7 | 115.7 | % |
(Dollars in millions) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 1,066.4 | $ | 951.4 | $ | 115.0 | 12.1 | % | |||||||||||||||||||||
Operating profit (loss) | 255.0 | 221.5 | 33.5 | 15.1 | % | ||||||||||||||||||||||||
Margin | 23.9 | % | 23.3 | % |
(Dollars in millions) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 755.4 | $ | 546.7 | $ | 208.7 | 38.2 | % | |||||||||||||||||||||
Operating profit (loss) | 115.9 | 77.0 | 38.9 | 50.5 | % | ||||||||||||||||||||||||
Margin | 15.3 | % | 14.1 | % |
(Dollars in millions) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 536.9 | $ | 404.9 | $ | 132.0 | 32.6 | % | ||||||||||||||||||
Operating profit (loss) | 95.8 | 48.3 | 47.5 | 98.3 | % | |||||||||||||||||||||
Margin | 17.8 | % | 11.9 | % |
(Dollars in millions) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Net cash provided by (used for) operating activities | $ | 120.0 | $ | (121.7) | $ | 241.7 | (198.6) | % | ||||||||||||||||||
Net cash used for investing activities | (35.8) | (19.4) | (16.4) | 84.5 | ||||||||||||||||||||||
Net cash provided by financing activities | 91.7 | 293.5 | (201.8) | (68.8) | ||||||||||||||||||||||
Capital expenditures | (30.4) | (13.2) | (17.2) | 130.3 | ||||||||||||||||||||||
Investments in capitalized software | (5.4) | (6.2) | 0.8 | (12.9) |
Date: August 2, 2021
|
Vertiv Holdings Co | ||||
/s/ Rob Johnson | |||||
Name: Rob Johnson | |||||
Title: Chief Executive Officer | |||||
/s/ David Fallon | |||||
Name: David Fallon | |||||
Title: Chief Financial Officer |
1 Year Vertiv Chart |
1 Month Vertiv Chart |
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