Ingersoll Rand(US:IR)2022-05-05 16:00Financial Performance - Revenues for the three-month period ended March 31, 2022, were $1,337.0 million, an increase of $207.5 million, or 18.4%, compared to $1,129.5 million for the same period in 2021[165] - Gross profit for the same period was $526.1 million, an increase of $74.0 million, or 16.4%, with a gross profit margin of 39.3% compared to 40.0% in 2021[166] - Selling and administrative expenses were $265.5 million, an increase of $13.2 million, or 5.2%, with expenses as a percentage of revenues decreasing to 19.9% from 22.3%[167] - Adjusted EBITDA for the three-month period was $303.6 million, representing 22.7% of revenues, compared to 21.6% in the same period of 2021[164] - Net income attributable to Ingersoll Rand Inc. was $103.7 million for the three-month period, compared to a loss of $90.4 million in the same period of 2021[164] - Net income for the three-month period ended March 31, 2022, was $104.5 million, a significant increase from a net loss of $90.1 million in the same period in 2021[172] - Adjusted net income increased by $33.2 million to $201.2 million for the three-month period ended March 31, 2022, compared to $168.0 million in 2021[175] Cash Flow and Working Capital - Free Cash Flow for the three-month period was $32.2 million, down from $73.2 million in the same period of 2021[164] - The company reported a free cash flow from continuing operations of $32.2 million for the three-month period ended March 31, 2022, down from $73.2 million in 2021[177] - Cash flows provided by operating activities decreased by $37.4 million to $50.1 million for the three months ended March 31, 2022, compared to $87.5 million in the same period in 2021[206] - Free cash flow decreased by $41.0 million to $32.2 million in the three months ended March 31, 2022, from $73.2 million in the same period in 2021[211] - Net working capital of continuing operations increased by $84.2 million to $2,732.9 million as of March 31, 2022, compared to $2,648.7 million as of December 31, 2021[203] - Operating working capital rose by $118.1 million to $1,093.5 million as of March 31, 2022, driven by higher inventories and accounts receivable[203] Segment Performance - Segment revenues for the Industrial Technologies and Services segment increased by 13.8% to $1,039.6 million for the three-month period ended March 31, 2022, compared to $913.8 million in 2021[184] - Orders in the Industrial Technologies and Services segment reached $1,292.8 million in Q1 2022, reflecting a 24.0% increase over Q1 2021[189] - Segment revenues for the Precision and Science Technologies segment increased by 37.9% to $297.4 million for the three-month period ended March 31, 2022, compared to $215.7 million in 2021[187] - Orders in the Precision and Science Technologies segment amounted to $337.1 million in Q1 2022, marking a 30.6% increase over Q1 2021[190] Expenses and Charges - Interest expense decreased to $19.0 million, down $4.1 million from $23.1 million in the same period of 2021, primarily due to the prepayment of the Dollar Term Loan Series A[169] - The company recognized restructuring charges of $12.5 million for the three-month period ended March 31, 2022, compared to $2.4 million in the same period of 2021[155] - The effective income tax provision rate increased to 22.7% for the three-month period ended March 31, 2022, up from 10.5% in the same period in 2021[171] Risks and Controls - The company is exposed to interest rate risk due to variable-rate borrowings and manages this risk using pay-fixed interest rate swaps[216] - The company faces foreign currency risks from global operations, which may adversely affect revenues and earnings if the U.S. dollar strengthens[216] - To mitigate foreign currency risks, the company conducts international operations primarily in functional currencies and uses foreign currency forward exchange contracts[217] - The company maintains effective disclosure controls and procedures to ensure timely reporting of required information[219] - An evaluation of the effectiveness of disclosure controls and procedures was conducted, concluding they provide reasonable assurance of compliance with SEC rules[219] - There have been no changes in internal control over financial reporting that materially affect its effectiveness during the fiscal quarter[220] Other Financial Information - The company experienced a foreign currency impact of $26.3 million on revenues, with approximately 56% of revenues denominated in currencies other than the U.S. dollar[150] - Cash used in financing activities was $116.1 million for the three months ended March 31, 2022, primarily due to treasury stock purchases of $101.1 million[209] - As of March 31, 2022, the company had $1,094.3 million of unused availability under its Revolving Credit Facility[195] - The company recorded a deferred income tax liability of $65.6 million as of March 31, 2022, primarily related to withholding taxes on repatriating non-U.S. earnings[202] - The loss from discontinued operations for the three months ended March 31, 2022, was $1.2 million, compared to a loss of $201.7 million in the same period in 2021[194] - As of March 31, 2022, there have been no material changes to environmental matters disclosed in the annual report on Form 10-K for the fiscal year ended December 31, 2021[213] - As of March 31, 2022, there have been no material changes to the market risk assessment previously disclosed in the annual report on Form 10-K for the fiscal year ended December 31, 2021[217]