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$PNR 1Q15 10-Q: Total assets at the end of 1Q15 were $10.57Bil, including cash and cash equivalents of $131MM and goodwill of $4.68Bil. Total liabilities at the end of 1Q15 were $6.15Bil, including long-term debt of $3.40Bil and accounts payable of $504MM. Total equity as of March 31, 2015 was $4.42Bil.
$PNR has named Lynnette Heath as EVP & Chief Human Resources Officer, Jon Lammers as EVP, General Counsel & Secretary, and Ben Sommerness as EVP, Chief Growth and Strategy Officer for its Electrical business, which is expected to separate from the Water business in 2Q18, forming two independent, publicly-traded companies.
$PNR said certain of its subsidiaries have determined the Reference Yield and Total Consideration for the previously announced cash tender offer for certain series of outstanding notes for an aggregate purchase price of up to $1.75Bil, plus accrued and unpaid interest on the Notes.
$PNR announced plan to separate into two public companies. Upon separation, $PNR's CFO John Stauch will become Water's CEO and Karl Frykman, the current President of $PNR's Water segment, will become Water's COO. Beth Wozniak, the current President of $PNR's Electrical segment, will become CEO of Electrical.
$PNR said the transaction will create a global water company, which will retain the Pentair name and ticker symbol, and a high-performance electrical company, which will be named at a later date. The separation is expected to occur through a tax-free spin-off of Electrical by $PNR to its shareholders. $PNR expects to close separation in 2Q18.
$PNR's BoD unanimously approved a plan to separate into two independent, publicly-traded companies. Both companies will benefit from positions in their respective industries, well-recognized brands, attractive margin profiles, strong free cash flow generation and compelling growth opportunities.
$PNR said that the sale of its Valves & Controls business remains on track to close in early 2017. The company said it continues to make good progress on aligning its cost structure, as well as repositioning the company with the divestiture of the Valves & Controls business.
$PNR expects 1Q17 EPS of about $0.50 and adjusted EPS of about $0.61, about flat on an adjusted basis versus last year. The company expects 1Q17 revenue to be about $1.14Bil, which would be down about 4% on a reported and core basis compared to 1Q16 revenue.
$PNR swung to a 4Q16 profit from a loss last year, driven by lower income tax and last year's loss from discontinued operations. Net income was $131MM or $0.71 per share compared to a loss of $453.3MM or $2.52 per share last year. Sales fell to $1.19Bil from $1.29Bil. Adjusted EPS dropped to $0.78 from $0.88.
$PNR's BoD approved a 3% increase in regular annual cash dividend rate for 2017 to $1.38 per share from $1.34 per share paid in 2016. The BoD declared a regular quarterly cash dividend of $0.345 per share, payable on Feb. 10, 2017 to shareholders of record on Jan. 27, 2017.