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Raises Full Year 2023 Guidance Range
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Authorizes $3 Billion Share Repurchase Plan Over Four Years
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Raises 2023 Dividend
NEW YORK--(BUSINESS WIRE)--
Vertiv (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, will host its
previously announced Investor Conference today at the New York Stock Exchange from 10 a.m. to 3 p.m. Eastern
Time. Vertiv’s management team will update investors on the Company’s vision and strategy, current business and
operations, accelerated growth opportunities and financial performance. A webcast of the live event and
presentation materials can be accessed in the Investor Relations section of Vertiv’s website at investors.vertiv.com. A replay of Vertiv’s 2023 Investor Conference will also be available
for 30 days following the webcast and can be accessed at investors.vertiv.com.
Vertiv also announced that effective today, its Board of Directors approved a share repurchase program
authorizing the company to repurchase up to $3 billion of common stock over the next four years. The program is
intended to provide the company with flexibility in returning capital to shareholders. Vertiv expects that the
repurchases will be effected from time-to-time through open market purchases, privately negotiated transactions,
Rule 10b5-1 plans, accelerated stock repurchases, block trades, derivative contracts or otherwise, including in
compliance with Rule 10b-18. The specific timing of any repurchases will be determined at management’s
discretion and will depend on a number of factors, including available liquidity, the company's stock price, the
company's financial outlook, and alternative investment options. The share repurchase program does not obligate
Vertiv to repurchase any specific dollar amount or number of shares and the Board's authorization of the program
may be modified, suspended or discontinued at any time.
Vertiv’s Board has declared an increase in the company’s annual cash dividend for 2023 to $0.025 per share of
the company’s Class A common stock. The cash dividend will be payable on December 27, 2023 to shareholders of
record of Class A common stock at the close of business on December 11, 2023.
The company has increased 2023 financial guidance as it continues to see strong market demand for its critical
digital infrastructure products and services.
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Current
Full Year 2023 Guidance
(3)
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Previous
Full Year 2023 Guidance
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Net sales
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$6,875M - $6,895M
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$6,826M - $6,851M
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Organic net sales growth(2)
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21.9% - 22.3%
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20.9% - 21.4%
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Adjusted operating profit(1)
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$1,035M - $1,045M
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$1,020M - $1,030M
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Adjusted operating margin(2)
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15.0% - 15.2%
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14.6% - 15.4%
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Adjusted diluted EPS(1)
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$1.72 - $1.76
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$1.69 - $1.73
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Adjusted free cash flow(2)
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$600M - $650M
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$600M - $650M
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(1)
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This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP
measures and an explanation of the non-GAAP measures and reasons for their use, please refer to
sections of this release entitled “Non-GAAP Financial Measures” and “Reconciliation of GAAP and
non-GAAP Financial Measures.”
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(2)
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This is a forward-looking non-GAAP financial measure that cannot be reconciled for those reasons
set forth under “Non-GAAP Financial Measures” of this release.
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(3)
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In connection with our Investor Conference being held today, we have decided to update our
existing guidance to factor in our financial performance through the end of October and our
current outlook for the remainder of the year to address this special circumstance. We do not
anticipate making a practice of issuing interim guidance in future and no inference should be
made from the failure to do so. Please refer to the cautionary language under “Forward Looking
Statements” below.
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About Vertiv
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers’
vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the
most important challenges facing today’s data centers, communication networks and commercial and industrial
facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the
cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130
countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act. These statements
are only a prediction. Actual events or results may differ materially from those in the forward-looking
statements set forth herein. Readers are referred to Vertiv’s filings with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form
10-Q for a discussion of these and other important risk factors concerning Vertiv and its operations. Vertiv is
under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking
statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to full-year 2023
guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not
available without unreasonable effort due to high variability, complexity and uncertainty with respect to
forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we
are unable to compute the probable significance of the unavailable information, which could have a potentially
unpredictable, and potentially significant, impact on our future GAAP financial results.
See “Reconciliation of GAAP and Non-GAAP Financial Measures” in this release for Vertiv’s reconciliations of
non-GAAP financial measures to the most directly comparable GAAP financial measures.
Reconciliation of GAAP and non-GAAP Financial Measures
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Vertiv Holdings Co
2023 Adjusted Guidance
Reconciliation of Diluted EPS to Adjusted Diluted EPS
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Full Year 2023
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Operating profit
(loss)
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Interest expense,
net
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Change in Warrant
Liability
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Income tax
expense
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Net income (loss)
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Diluted EPS(1)
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GAAP
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$
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862.4
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$
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179.5
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$
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103.4
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$
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187.3
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$
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392.2
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$
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1.01
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Amortization of intangibles
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177.6
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—
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—
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—
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177.6
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0.46
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Change in warrant liability
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—
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—
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(103.4
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)
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—
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103.4
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0.27
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Non-GAAP Adjusted
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$
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1,040.0
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$
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179.5
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$
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—
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$
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187.3
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$
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673.2
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$
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1.74
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| (1) |
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Diluted EPS and adjusted diluted EPS based on 386.1 million shares (includes 380.2 million basic
shares and a weighted average 5.9 million potential dilutive stock options and restricted stock
units).
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Category: Financial News
View source version on businesswire.com:
https://www.businesswire.com/news/home/20231128608893/en/
For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
T +1 614-841-6776
E : lynne.maxeiner@vertiv.com
For media inquiries, please contact:
Peter Poulos
FleishmanHillard for Vertiv
T +1 646-284-4991
E: peter.poulos@fleishman.com
Source: Vertiv Holdings Co