SEC Filings

8-K
LINCOLN ELECTRIC HOLDINGS INC filed this Form 8-K on 10/27/2017
Entire Document
 

Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
 Non-GAAP Financial Measures
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Operating income as reported
 
$
133,070

 
$
81,829

 
$
302,198

 
$
205,203

Special items (pre-tax):
 
 
 
 
 
 
 
 
Pension settlement charges (2)
 
5,283

 

 
5,283

 

Loss on deconsolidation of Venezuelan subsidiary (3)
 

 

 

 
34,348

Acquisition transaction and integration costs (4)
 
3,273

 

 
11,386

 

Amortization of step up in value of acquired inventories (4)
 
2,314

 

 
2,314

 

Bargain purchase gain (4)
 
(51,585
)
 

 
(51,585
)
 

Adjusted operating income (1)
 
$
92,355

 
$
81,829

 
$
269,596

 
$
239,551

As a percent of total sales
 
13.8
%
 
14.4
%
 
14.4
%
 
14.0
%
 
 
 
 
 
 
 
 
 
Net income as reported
 
$
106,126

 
$
60,049

 
$
223,322

 
$
145,004

Special items (after-tax):
 
 

 
 

 
 
 
 
Pension settlement charges (2)
 
3,260

 

 
3,260

 

Loss on deconsolidation of Venezuelan subsidiary (3)
 

 

 

 
33,251

Income tax valuation reversals (5)
 

 

 

 
(7,196
)
Acquisition transaction and integration costs (4)
 
2,229

 

 
8,457

 

Amortization of step up in value of acquired inventories (4)
 
1,745

 

 
1,745

 

Bargain purchase gain (4)
 
(51,585
)
 

 
(51,585
)
 

Adjusted net income (1)
 
$
61,775

 
$
60,049

 
$
185,199

 
$
171,059

 
 
 
 
 
 
 
 
 
Diluted earnings per share as reported
 
$
1.59

 
$
0.89

 
$
3.35

 
$
2.11

Special items
 
(0.66
)
 

 
(0.57
)
 
0.38

Adjusted diluted earnings per share (1)
 
$
0.93

 
$
0.89

 
$
2.78

 
$
2.49

 
 
 
 
 
 
 
 
 
Weighted average shares (diluted)
 
66,702

 
67,182

 
66,679

 
68,784


(1)
Adjusted operating income, Adjusted net income and Adjusted diluted earnings per share are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.
(2)
Related to lump sum pension payments.
(3)
Related to the deconsolidation of the Company's Venezuelan subsidiary in the second quarter 2016.
(4)
Related to the acquisition of Air Liquide Welding.
(5)
Related to the reversal of an income tax valuation allowance as a result of a legal entity change.