Financial Release

Wabtec Reports Strong 2nd Quarter 2022 Results

August 5, 2022 at 6:30 AM EDT
  • Total Backlog of $23.23 Billion, Up $1.70 Billion and Up $2.27 Billion on Constant Currency Basis; Provides Strong Multi-Year Momentum
  • Second Quarter Reported GAAP Earnings Per Share of $0.91; Adjusted Earnings Per Share of $1.23, Up 16.0%
  • Sales Growth of 1.8% to $2.05 Billion; GAAP Operating Margin of 12.9%; Adjusted Operating Margin of 16.7%, Up 1.5 pts
  • Closed Two Strategic Bolt-on Acquisitions and Repurchased $103 Million Shares During the Second Quarter

PITTSBURGH--(BUSINESS WIRE)--Aug. 5, 2022-- Wabtec Corporation (NYSE: WAB) today reported second quarter 2022 GAAP earnings per diluted share of $0.91, up 37.9% versus the second quarter of 2021. Adjusted earnings per diluted share were $1.23, up 16.0% versus the same quarter a year ago. Second quarter sales were $2.05 billion and cash from operations was $263 million.

“The Wabtec team executed a strong quarter by delivering profitable growth, continued margin expansion and significant increase in backlog,” said Rafael Santana, Wabtec’s President and CEO. “The strength of the business and our team’s relentless focus on disciplined execution was evident in the quarterly financial results despite rising costs, continued supply chain challenges and significant unfavorable foreign currency exchange.

“We continued to progress against our long-term strategy as is evidenced by the 8% year-over-year growth in our backlog driven by strategic multi-year orders for modernizations, new locomotives and digital solutions. Looking forward, the Wabtec team is focused on delivering for our customers, executing against our value creation framework and is well-positioned to drive profitable growth. The breadth and unique capability of the Wabtec products and technologies, combined with our installed base and multi-year backlog, provides us with increasing momentum in 2022 and beyond.”

2022 Second Quarter Consolidated Results

 

$ in millions except earnings per share and percentages; margin change in percentage points (pts)

Second Quarter

2022

2021

Change

Net Sales

$ 2,048

$ 2,012

1.8%

 

 

 

 

GAAP Gross Margin

31.5%

28.8%

2.7 pts

Adjusted Gross Margin

31.6%

29.9%

1.7 pts

GAAP Operating Margin

12.9%

10.1%

2.8 pts

Adjusted Operating Margin

16.7%

15.2%

1.5 pts

 

 

 

 

GAAP Diluted EPS

$0.91

$0.66

37.9%

Adjusted Diluted EPS

$1.23

$1.06

16.0%

 

 

 

 

Cash Flow from Operations

$ 263

$ 223

17.9%

Operating Cash Flow Conversion

92%

89%

 

  • Sales increased compared to the year-ago quarter driven by higher Freight segment sales, partially offset by lower Transit segment sales. On a constant currency basis sales were up 5.6%.
  • Both GAAP and adjusted operating margin increased from last year as a result of higher sales, increased pricing, improved mix and strong productivity, partially offset by escalating costs associated with metals, transportation and labor.
  • GAAP and adjusted EPS increased from the year-ago quarter primarily due to higher sales and increased operating margins. GAAP EPS further benefited from lower restructuring and transaction costs.

2022 Second Quarter Freight Segment Results

 

Net sales $ in millions; margin change in percentage points (pts)

Second Quarter

2022

2021

Change

Net Sales

$ 1,490

$ 1,336

11.5%

GAAP Gross Margin

33.0%

30.9%

2.1 pts

Adjusted Gross Margin

33.2%

31.2%

2.0 pts

GAAP Operating Margin

15.7%

13.0%

2.7 pts

Adjusted Operating Margin

20.3%

18.5%

1.8 pts

  • Freight Segment sales for the second quarter were up across all product lines, with very strong growth in Equipment and Services.
  • Both GAAP and adjusted operating margin benefited from higher sales, favorable mix/price and operational efficiencies, partially offset by higher costs. GAAP operating margin also improved year-over-year as a result of lower restructuring and transaction costs.

2022 Second Quarter Transit Segment Results

 

Net sales $ in millions; margin change in percentage points (pts)

Second Quarter

2022

2021

Change

Net Sales

$ 558

$ 676

(17.5%)

GAAP Gross Margin

27.4%

24.6%

2.8 pts

Adjusted Gross Margin

27.5%

27.3%

0.2 pts

GAAP Operating Margin

9.0%

6.7%

2.3 pts

Adjusted Operating Margin

10.3%

10.8%

(0.5 pts)

  • Transit segment sales for the second quarter were down versus last year primarily due to unfavorable foreign currency exchange and supply chain disruptions.
  • GAAP operating margin was up significantly as a result of lower restructuring and transaction costs, while adjusted operating margin was down modestly as a result of increased input costs and lower fixed cost absorption.

Backlog

 

Backlog $ in millions

June 30,

2022

2021

Change

12-Month Backlog

$ 6,566

$ 5,823

12.8%

Total Backlog

$ 23,227

$ 21,530

7.9%

At June 30, 2022 the multi-year backlog was $1.70 billion higher than June 30, 2021 due primarily to increased orders for the Freight segment. Unfavorable foreign exchange adversely impacted the total backlog by $568 million.

Cash Flow and Liquidity Summary

  • During the second quarter, the Company generated cash from operations of $263 million versus $223 million in the year ago period behind increased net income.
  • At the end of the quarter, the Company had cash and cash equivalents of $501 million and total debt of $4.21 billion. At June 30, 2022 the Company’s total available liquidity was $1.48 billion, which includes cash and cash equivalents plus $0.98 billion available under current credit facilities.
  • During the second quarter, the Company completed the acquisitions of Beena Vision and ARINC for $69 million, as well as repurchased $103 million of Wabtec shares.

2022 Financial Guidance

  • Wabtec updated its 2022 financial guidance with sales to be in a range of $8.30 billion to $8.60 billion and adjusted earnings per diluted share to be in a range of $4.70 to $5.00 versus previous guidance of $4.65 to $5.05.
  • For full year 2022, Wabtec expects strong cash flow generation with operating cash flow conversion of greater than 90 percent.

Conference Call Information

Wabtec will host a call with analysts and investors at 8:30 a.m., ET, today. To listen via webcast, go to Wabtec’s new website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. Also, an audio replay of the call will be available by calling 1-877-344-7529 or 1-412-317-0088 (access code: 3578102).

About Wabtec Corporation

Wabtec Corporation (NYSE: WAB) is focused on creating transportation solutions that move and improve the world. The Company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 150 years and has a vision to achieve a zero-emission rail system in the U.S. and worldwide. Visit Wabtec’s website at: www.WabtecCorp.com

Information about non-GAAP Financial Information and Forward-Looking Statements

Wabtec’s earnings release and 2022 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, EBITDA, adjusted EBITDA, adjusted effective tax rate, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense adjusted earnings per diluted share and operating cash flow conversion. Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results.

This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the impact of acquisitions by Wabtec, statements regarding Wabtec’s expectations about future sales and earnings, and statements about the impact of evolving global conditions on Wabtec’s business. All statements, other than historical facts, including statements regarding synergies and other expected benefits from acquisitions; statements regarding Wabtec’s plans, objectives, expectations and intentions; and statements regarding macro-economic conditions and evolving production and demand conditions; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) changes in general economic and/or industry specific conditions, including the impacts of tax and tariff programs, inflation, supply chain disruptions, foreign currency exchange, and industry consolidation; (2) changes in the financial condition or operating strategies of Wabtec’s customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the severity and duration of the evolving COVID-19 pandemic and the resulting impact on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability, and volatility in global markets from the imposition of economic sanctions on Russia resulting from the invasion of Ukraine; (12) cybersecurity and data protection risks and (13) other risk factors as detailed from time to time in Wabtec’s reports filed with the SEC, including Wabtec’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021
(AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA)
(UNAUDITED)

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net sales

$

2,048

 

$

2,012

 

$

3,975

 

$

3,842

 

Cost of sales

 

(1,403

)

 

(1,432

)

 

(2,735

)

 

(2,728

)

Gross profit

 

645

 

 

580

 

 

1,240

 

 

1,114

 

Gross profit as a % of Net Sales

 

31.5

%

 

28.8

%

 

31.2

%

 

29.0

%

Selling, general and administrative expenses

 

(259

)

 

(263

)

 

(497

)

 

(497

)

Engineering expenses

 

(50

)

 

(42

)

 

(95

)

 

(80

)

Amortization expense

 

(72

)

 

(72

)

 

(145

)

 

(142

)

Total operating expenses

 

(381

)

 

(377

)

 

(737

)

 

(719

)

Operating expenses as a % of Net Sales

 

18.6

%

 

18.7

%

 

18.5

%

 

18.7

%

Income from operations

 

264

 

 

203

 

 

503

 

 

395

 

Income from operations as a % of Net Sales

 

12.9

%

 

10.1

%

 

12.7

%

 

10.3

%

Interest expense, net

 

(44

)

 

(45

)

 

(87

)

 

(93

)

Other income, net

 

7

 

 

11

 

 

11

 

 

25

 

Income before income taxes

 

227

 

 

169

 

 

427

 

 

327

 

Income tax expense

 

(58

)

 

(44

)

 

(108

)

 

(87

)

Effective tax rate

 

25.5

%

 

25.8

%

 

25.3

%

 

26.6

%

Net income

 

169

 

 

125

 

 

319

 

 

240

 

Less: Net income attributable to noncontrolling interest

 

(3

)

 

-

 

 

(4

)

 

(3

)

Net income attributable to Wabtec shareholders

$

166

 

$

125

 

$

315

 

$

237

 

Earnings Per Common Share
Basic
Net income attributable to Wabtec shareholders

$

0.91

 

$

0.66

 

$

1.71

 

$

1.25

 

Diluted
Net income attributable to Wabtec shareholders

$

0.91

 

$

0.66

 

$

1.71

 

$

1.25

 

Basic

 

181.9

 

 

188.6

 

 

183.2

 

 

188.5

 

Diluted

 

182.4

 

 

188.9

 

 

183.7

 

 

188.9

 

Segment Information
Freight Net Sales

$

1,490

 

$

1,336

 

$

2,812

 

$

2,519

 

Freight Income from Operations

$

233

 

$

173

 

$

422

 

$

315

 

Freight Operating Margin

 

15.7

%

 

13.0

%

 

15.0

%

 

12.5

%

Transit Net Sales

$

558

 

$

676

 

$

1,163

 

$

1,323

 

Transit Income from Operations

$

50

 

$

45

 

$

115

 

$

115

 

Transit Operating Margin

 

9.0

%

 

6.7

%

 

9.9

%

 

8.7

%

Backlog Information (Note: 12-month is a sub-set of total) June 30, 2022 March 31, 2022 June 30, 2021
Freight Total

$

19,679

 

$

19,024

 

$

17,837

 

Transit Total

 

3,548

 

 

3,735

 

 

3,693

 

Wabtec Total

$

23,227

 

$

22,759

 

$

21,530

 

Freight 12-Month

$

4,821

 

$

4,812

 

$

4,098

 

Transit 12-Month

 

1,745

 

 

1,819

 

 

1,725

 

Wabtec 12-Month

$

6,566

 

$

6,631

 

$

5,823

 

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
 
June 30, 2022 December 31, 2021
In millions
Cash and cash equivalents

$

501

$

473

Receivables, net

 

1,422

 

1,477

Inventories

 

1,918

 

1,689

Other current assets

 

205

 

193

Total current assets

 

4,046

 

3,832

Property, plant and equipment, net

 

1,428

 

1,497

Goodwill

 

8,459

 

8,587

Other intangible assets, net

 

3,531

 

3,705

Other noncurrent assets

 

869

 

833

Total assets

$

18,333

$

18,454

Current liabilities

$

3,190

$

2,910

Long-term debt

 

3,987

 

4,056

Long-term liabilities - other

 

1,209

 

1,249

Total liabilities

 

8,386

 

8,215

Shareholders' equity

 

9,905

 

10,201

Noncontrolling interest

 

42

 

38

Total shareholders' equity

 

9,947

 

10,239

Total Liabilities and Shareholders' Equity

$

18,333

$

18,454

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
Six Months Ended June 30,

 

2022

 

 

2021

 

In millions
Operating activities
Net income

$

319

 

$

240

 

Non-cash expense

 

238

 

 

253

 

Receivables

 

45

 

 

(29

)

Inventories

 

(256

)

 

8

 

Accounts Payable

 

185

 

 

82

 

Other assets and liabilities

 

(107

)

 

(39

)

Net cash provided by operating activities

 

424

 

 

515

 

 
Net cash used for investing activities

 

(117

)

 

(452

)

 
Net cash used for financing activities

 

(256

)

 

(213

)

 
Effect of changes in currency exchange rates

 

(23

)

 

5

 

 
Increase (decrease) in cash

 

28

 

 

(145

)

 
Cash and cash equivalents, beginning of period

 

473

 

 

599

 

Cash and cash equivalents, end of period

$

501

 

$

454

 

Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.
 
Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions)

Second Quarter 2022 Actual Results

 

 

Gross

 

Operating

 

Income from

 

Interest &

 

 

 

 

 

Noncontrolling

 

Wabtec

 

 

Net Sales

 

Profit

 

Expenses

 

Operations

 

Other Exp

 

Tax

 

Net Income

 

Interest

 

Net Income

 

EPS

 
Reported Results

$

2,048

$

645

$

(381

)

$

264

$

(37

)

$

(58

)

$

169

$

(3

)

$

166

$

0.91

 
Restructuring & Transaction costs

 

-

 

2

 

2

 

 

4

 

-

 

 

(1

)

 

3

 

-

 

 

3

$

0.02

 
Non-cash Amortization expense

 

-

 

-

 

72

 

 

72

 

-

 

 

(18

)

 

54

 

-

 

 

54

$

0.30

 
Adjusted Results

$

2,048

$

647

$

(307

)

$

340

$

(37

)

$

(77

)

$

226

$

(3

)

$

223

$

1.23

 
Fully Diluted Shares Outstanding

 

182.4

 
 
 
Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions)

Second Quarter Year-to-Date 2022 Actual Results

 

 

Gross

 

Operating

 

Income from

 

Interest &

 

 

 

 

 

Noncontrolling

 

Wabtec

 

 

Net Sales

 

Profit

 

Expenses

 

Operations

 

Other Exp

 

Tax

 

Net Income

 

Interest

 

Net Income

 

EPS

 
Reported Results

$

3,975

$

1,240

$

(737

)

$

503

$

(76

)

$

(108

)

$

319

$

(4

)

$

315

$

1.71

 
Restructuring & Transaction costs

 

-

 

7

 

4

 

 

11

 

-

 

 

(3

)

 

8

 

-

 

 

8

$

0.05

 
Non-cash Amortization expense

 

-

 

-

 

145

 

 

145

 

-

 

 

(36

)

 

109

 

-

 

 

109

$

0.59

 
Adjusted Results

$

3,975

$

1,247

$

(588

)

$

659

$

(76

)

$

(147

)

$

436

$

(4

)

$

432

$

2.35

 
Fully Diluted Shares Outstanding

 

183.7

 
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.
 
Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions) Second Quarter 2021 Actual Results
Gross Operating Income from Interest & Noncontrolling Wabtec
Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS
 
Reported Results

$

2,012

$

580

$

(377

)

$

203

$

(34

)

$

(44

)

$

125

 

$

-

 

$

125

 

$

0.66

 

 
Restructuring & Transaction costs

 

-

 

21

 

9

 

 

30

 

-

 

 

(7

)

 

23

 

 

-

 

 

23

 

$

0.12

 

 
Non-cash Amortization expense

 

-

 

-

 

72

 

 

72

 

-

 

 

(19

)

 

53

 

 

-

 

 

53

 

$

0.29

 

 
Foreign Exchange Gain

 

-

 

-

 

-

 

 

-

 

(2

)

 

1

 

 

(1

)

 

-

 

 

(1

)

$

(0.01

)

 
Adjusted Results

$

2,012

$

601

$

(296

)

$

305

$

(36

)

$

(69

)

$

200

 

$

-

 

$

200

 

$

1.06

 

 
Fully Diluted Shares Outstanding

 

188.9

 

 
 
 
Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions) Second Quarter Year-to-Date 2021 Actual Results
Gross Operating Income from Interest & Noncontrolling Wabtec
Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS
 
Reported Results

$

3,842

$

1,114

$

(719

)

$

395

$

(68

)

$

(87

)

$

240

 

$

(3

)

$

237

 

$

1.25

 

 
Restructuring & Transaction costs

 

-

 

25

 

20

 

 

45

 

-

 

 

(11

)

 

34

 

 

-

 

 

34

 

$

0.18

 

 
Non-cash Amortization expense

 

-

 

-

 

142

 

 

142

 

-

 

 

(38

)

 

104

 

 

-

 

 

104

 

$

0.55

 

 
Foreign Exchange Gain

 

-

 

-

 

-

 

 

-

 

(11

)

 

4

 

 

(7

)

 

-

 

 

(7

)

$

(0.04

)

 
Adjusted Results

$

3,842

$

1,139

$

(557

)

$

582

$

(79

)

$

(132

)

$

371

 

$

(3

)

$

368

 

$

1.94

 

 
Fully Diluted Shares Outstanding

 

188.9

 

 
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.
 
Wabtec Corporation
2022 Q2 EBITDA Reconciliation
(in millions)

Reported Income

+

Other Income

+

Depreciation &

=

EBITDA

+

Restructuring &

=

Adjusted

from Operations

(Expense)

Amortization

Transaction Costs

EBITDA

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

$264

 

$7

 

$116

 

$387

 

$4

 

$391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wabtec Corporation

 

 

 

 

 

 

 

 

 

 

 

2022 Q2 YTD EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

Reported Income

+

Other Income

+

Depreciation &

=

EBITDA

+

Restructuring &

=

Adjusted

from Operations

(Expense)

Amortization

Transaction Costs

EBITDA

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

$503

 

$11

 

$237

 

$751

 

$11

 

$762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wabtec Corporation

 

 

 

 

 

 

 

 

 

 

 

2021 Q2 EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

Reported Income

+

Other Income

+

Depreciation &

=

EBITDA

+

Restructuring &

=

Adjusted

from Operations

(Expense)

Amortization

Transaction Costs

EBITDA

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

$203

 

$11

 

$124

 

$338

 

$30

 

$368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wabtec Corporation

 

 

 

 

 

 

 

 

 

 

 

2021 Q2 YTD EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

Reported Income

+

Other Income

+

Depreciation &

=

EBITDA

+

Restructuring &

=

Adjusted

from Operations

(Expense)

Amortization

Transaction Costs

EBITDA

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

$395

 

$25

 

$243

 

$663

 

$45

 

$708

 

 

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION

SALES BY PRODUCT LINE
(UNAUDITED)
 

Three Months Ended June 30,

In millions

 

2022

 

 

2021

Freight Segment
Equipment

$

381

$

328

Components

 

234

 

224

Digital Electronics

 

164

 

162

Services

 

711

 

622

Total Freight Segment

$

1,490

$

1,336

 
Transit Segment
Original Equipment Manufacturer

$

259

$

320

Aftermarket

 

299

 

356

Total Transit Segment

$

558

$

676

 
 

Six Months Ended June 30,

In millions

 

2022

 

 

2021

Freight Segment
Equipment

$

655

$

590

Components

 

463

 

427

Digital Electronics

 

317

 

318

Services

 

1,377

 

1,184

Total Freight Segment

$

2,812

$

2,519

 
Transit Segment
Original Equipment Manufacturer

$

551

$

607

Aftermarket

 

612

 

716

Total Transit Segment

$

1,163

$

1,323

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT
(UNAUDITED)
 

Three Months Ended June 30,

 

Six Months Ended June 30,

2022

 

2021

 

2022

 

2021

In millions

Gross Profit

Income from
Operations

 

Gross Profit

Income from
Operations

 

Gross Profit

Income from
Operations

 

Gross Profit

Income from
Operations

 
Freight Segment Reported Results

$

493

 

$

233

 

$

414

 

$

173

 

$

917

 

$

422

 

$

770

 

$

315

 

Freight Segment Reported Margin

 

33.0

%

 

15.7

%

 

30.9

%

 

13.0

%

 

32.6

%

 

15.0

%

 

30.6

%

 

12.5

%

 
Restructuring & Transaction costs

 

1

 

 

1

 

 

4

 

 

7

 

 

3

 

 

3

 

 

5

 

 

14

 

Non-cash Amortization expense

 

-

 

 

67

 

 

-

 

 

67

 

 

-

 

 

135

 

 

-

 

 

132

 

 
Freight Segment Adjusted Results

$

494

 

$

301

 

$

418

 

$

247

 

$

920

 

$

560

 

$

775

 

$

461

 

Freight Segment Adjusted Margin

 

33.2

%

 

20.3

%

 

31.2

%

 

18.5

%

 

32.7

%

 

20.0

%

 

30.6

%

 

18.3

%

 
 
Transit Segment Reported Results

$

152

 

$

50

 

$

166

 

$

45

 

$

323

 

$

115

 

$

344

 

$

115

 

Transit Segment Reported Margin

 

27.4

%

 

9.0

%

 

24.6

%

 

6.7

%

 

27.7

%

 

9.9

%

 

26.0

%

 

8.7

%

 
Restructuring & Transaction costs

 

1

 

 

3

 

 

17

 

 

23

 

 

4

 

 

7

 

 

20

 

 

27

 

Non-cash Amortization expense

 

-

 

 

5

 

 

-

 

 

5

 

 

-

 

 

10

 

 

-

 

 

10

 

 
Transit Segment Adjusted Results

$

153

 

$

58

 

$

183

 

$

73

 

$

327

 

$

132

 

$

364

 

$

152

 

Transit Segment Adjusted Margin

 

27.5

%

 

10.3

%

 

27.3

%

 

10.8

%

 

28.1

%

 

11.4

%

 

27.6

%

 

11.5

%

 
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT
(UNAUDITED)
 
Three Months Ended June 30,
In millions Freight Transit Consolidated
 
2021 Net Sales

$

1,336

 

$

676

 

$

2,012

 

 
Acquisitions

 

5

 

 

1

 

 

6

 

Foreign Exchange

 

(16

)

 

(60

)

 

(76

)

Organic

 

165

 

 

(59

)

 

106

 

 
2022 Net Sales

$

1,490

 

$

558

 

$

2,048

 

 
Change ($)

 

154

 

 

(118

)

 

36

 

Change (%)

 

11.5

%

 

-17.5

%

 

1.8

%

 
 
Six Months Ended June 30,
Freight Transit Consolidated
 
2021 Net Sales

$

2,519

 

$

1,323

 

$

3,842

 

 
Acquisitions

 

44

 

 

2

 

 

46

 

Foreign Exchange

 

(20

)

 

(93

)

 

(113

)

Organic

 

269

 

 

(69

)

 

200

 

 
2022 Net Sales

$

2,812

 

$

1,163

 

$

3,975

 

 
Change ($)

 

293

 

 

(160

)

 

133

 

Change (%)

 

11.6

%

 

-12.1

%

 

3.5

%

 
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.
 
Wabtec Corporation
2022 Q2 Cash Conversion Calculation
(in millions)

Reported Cash

÷

(Net Income

+

Depreciation &
Amortization)

=

Cash Conversion

from Operations

 

 

 

 

 

 

 

Consolidated Results

$263

 

$169

 

$118

 

92%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wabtec Corporation

 

 

 

 

 

 

 

2022 Q2 YTD Cash Conversion Calculation

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

Reported Cash

÷

(Net Income

+

Depreciation &
Amortization)

=

Cash Conversion

from Operations

 

 

 

 

 

 

 

Consolidated Results

$424

 

$319

 

$240

 

76%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wabtec Corporation

 

 

 

 

 

 

 

2021 Q2 Cash Conversion Calculation

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

Reported Cash

÷

(Net Income

+

Depreciation &
Amortization)

=

Cash Conversion

from Operations

 

 

 

 

 

 

 

Consolidated Results

$223

 

$125

 

$126

 

89%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wabtec Corporation

 

 

 

 

 

 

 

2021 Q2 YTD Cash Conversion Calculation

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

Reported Cash

÷

(Net Income

+

Depreciation &
Amortization)

=

Cash Conversion

from Operations

 

 

 

 

 

 

 

Consolidated Results

$515

 

$240

 

$246

 

106%

 

 

Wabtec Investor Contact
Kristine Kubacki, CFA / Kristine.Kubacki@wabtec.com / 412-450-2033

Wabtec Media Contact
Deia Campanelli / Deia.Campanelli@wabtec.com / 773-297-0482

Source: Wabtec Corporation