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$ALLE Event Update: Allegion, plc, a leading global security products & solutions provider, will release its 2Q15 financial results on July 30, 2015, before market opens. Later that morning, David Petratis, chairman & CEO;& Patrick Shannon, SVP & CFO will conduct a conference call for analysts & investors at 8:30AM EDT, to review company's results.
$ALLE completed the redemption of its outstanding $600MM high yield senior notes, $300MM of 5.750% notes due 2021, and $300MM of 5.875% notes due 2023. Also, on Oct. 2, the company closed new bond offering of $400MM of 3.2% senior notes due 2024 and $400MM of 3.55% senior notes due 2027.
Security solutions provider $ALLE said it completed refinancing of its senior secured credit facility. The new credit facility provides Allegion with $700MM of term loans and $500MM of commitments for revolving loans. The company intends to use a portion of loans for letters of credit and swingline loans.
$ALLE expects 2017 reported and organic revenues to increase 5.5-6.5% when compared to 2016. Full-year 2017 reported and adjusted EPS is expected to be in the range of $3.55 to $3.70. This reflects an increase of 6.3-10.8% versus adjusted 2016 EPS. The company is targeting available cash flow of about $300-320MM.
$ALLE's revenue in the Asia Pacific segment for 4Q16 declined 8.5% on a reported and down 0.7% on an organic basis from last year. Reported revenues were impacted by the divestiture of the system integration business. The decline in organic revenue was primarily due to timing of orders, as well as large non-recurring projects in 4Q15.
$ALLE's revenue in the EMEIA segment for 4Q16 rose 0.2% on a reported and up 1.4% on an organic basis from last year. This reflects continued pricing performance offset by unfavorable foreign currency. The organic growth was driven by solid growth in portable security and steady growth in the SimonsVoss business.
$ALLE's revenue in the Americas segment for 4Q16 increased 7% on both a reported and an organic basis from last year. The region had strong growth in both mechanical and electronic product categories. The organic growth was driven by high-single digit non-residential and mid-single digit residential growth.
$ALLE reported a rise in 4Q16 earnings as strong performance in the Americas segment drove organic growth higher. Net income rose to $74.8MM or $0.77 per share from $71.9MM or $0.74 per share last year. Revenue grew to $569.7MM from $545.4MM. Non-GAAP EPS decreased to $0.81 from $0.89.
$ALLE said it experienced higher commodity prices in 3Q16. The company expects additional commodity inflation pressure to continue. Investments triggered 60 basis points headwinds in the quarter, and the company expects additional investment headwinds to continue through the remainder of the year.
$ALLE expects full-year EPS in a range of $2.40 to $2.45, or $3.38 to $3.43 per share on an adjusted basis. Adjustments to 2016 EPS include estimated impacts for known impairment, restructuring and acquisition activities. The company increased its full-year available cash flow guidance to approximately $300MM.
Security products maker $ALLE reported a 3Q16 profit on a GAAP basis as the latest quarter included lower charges compared to the year-ago period. It reported earnings from cont. ops of $0.02 inclusive of impairment charge of $0.87, compared with 2015 EPS loss of $0.28 inclusive of loss on divestiture charges of $1.14. Revenue rose 7% to $581.1MM.
$ALLE said it continues to guide full year available cash flow of $280-300MM, an increase of 26-35% compared to the year ago. The company said it remains focused on growing its portfolio through acquisitions. During 2Q16, $ALLE completed the acquisition of Trelock and said it will continue to evaluate acquisitions that are core to its business.
$ALLE stated that investments had modest headwind YTD and said it expects additional investment headwind to be back-end loaded for the Americas segment. $ALLE's acquisitions delivered approx. $35MM in incremental revenue. And on the Brexit referendum, the company said it did not see any meaningful impact.
$ALLE said it delivered 8.9% organic growth in 2Q16 with contributions from all regions, with each region contributing to price realization and volume growth. Foreign currency was a modest headwind in the quarter, while acquisitions contributed approx. $40MM of incremental revenue or 7.7% growth, which more than offset the impact of divestitures.
$ALLE said that the company made significant progress in 2Q16 to improve throughput and reduce the associated backlog, though it ended 1Q16 with elevated levels of backlog associated with the ERP implementation. YTD 2016, $ALLE continues to see an improvement of 13% by forecasting on risk and a reduction of injuries at home and at work.
$ALLE said the company is raising its FY16 revenue guidance with YoverY growth of 8-9% and organic growth estimates of 5-6%. The increase is driven by stronger volume in all regions. $ALLE also updated FY16 reported EPS in the range of $3.20-3.35, or $3.30-3.40 per share on an adjusted basis. FY16 available cash flow is expected between $280-300MM.
$ALLE said its revenue in the Americas segment for 2Q16 rose by 8.6% and up 3.4% on an organic basis, driven by continued growth in residential and non-residential markets. The EMEIA segment revenues rose 44.9%, or up 3% on an organic basis, reflecting acquisitions, improved pricing, slightly improving markets and favorable foreign currency.
Security device maker $ALLE posted higher 2Q16 results driven by acquisitions, organic growth and higher revenues. Net income rose 48.66% to $95MM or $0.98 per share from $63.9MM or $0.66 per share a year ago. Net revenues grew 12.58% to $584.9MM from $519.5MM. Excluding items, $ALLE earned $0.99 per share.