Trane Technologies Reports Record Second-Quarter 2022 Results; Raises Full-Year Revenue and EPS Guidance | Trane Technologies – Trane Technologies
Highlights (second-quarter 2022 versus second-quarter 2021, unless otherwise noted):
* This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations.
SWORDS, Ireland–(BUSINESS WIRE)– Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $2.17 for the second quarter of 2022. Adjusted continuing EPS was $2.16, up 13 percent, which excludes a net gain of $3.3 million related primarily to non-cash adjustments, transformation and other restructuring costs.
Second-Quarter 2022 Results
Financial Comparisons – Second-Quarter Continuing Operations
$, millions except EPS
Q2 2022
Q2 2021
Y-O-Y
Change
Organic Y-O-Y
Change
Bookings
$4,645
$4,384
6%
7%
Net Revenues
$4,190
$3,830
9%
11%
GAAP Operating Income
$711
$651
9%
GAAP Operating Margin
17.0%
17.0%
flat
Adjusted Operating Income*
$707
$656
8%
Adjusted Operating Margin*
16.9%
17.1%
(20 bps)
Adjusted EBITDA*
$786
$731
8%
Adjusted EBITDA Margin*
18.7%
19.1%
(40 bps)
GAAP Continuing EPS
$2.17
$1.91
14%
Adjusted Continuing EPS
$2.16
$1.92
13%
Restructuring and Transformation Costs**
$3.3
($5.3)
$8.6
**Primarily related to non-cash adjustments, transformation and other restructuring costs. For details see table 2 of the news release.
“Trane Technologies delivered another record quarter of financial performance thanks to strong execution of our purpose-driven sustainability strategy,” said Dave Regnery, chair and CEO of Trane Technologies. “Customer demand for our innovative solutions in decarbonization and healthy, efficient spaces has never been higher, with second-quarter bookings of $4.6 billion eclipsing any quarter in the company’s history.
“With the strength of our global team and the power of our business operating system, we remain confident in our ability to navigate persistent macro challenges and have raised our full-year guidance for revenue and EPS. As we look forward, our record backlog, financial strength, and leading innovation across a resilient portfolio of products and services position us well to deliver differentiated financial performance and shareholder returns in 2022 and over the long-term.”
Highlights from the Second Quarter of 2022 (all comparisons against second quarter of 2021 unless otherwise noted)
Second-Quarter Business Review (all comparisons against second quarter of 2021 unless otherwise noted)
Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating and cooling systems, building controls, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.
$, millions
Q2 2022
Q2 2021
Y-O-Y Change
Organic Y-O-Y
Change
Bookings
$3,714.5
$3,359.0
11%
10%
Net Revenues
$3,386.3
$2,971.6
14%
13%
GAAP Operating Income
$643.7
$560.1
15%
GAAP Operating Margin
19.0%
18.8%
20 bps
Adjusted Operating Income
$635.2
$561.8
13%
Adjusted Operating Margin
18.8%
18.9%
(10 bps)
Adjusted EBITDA
$702.2
$621.0
13%
Adjusted EBITDA Margin
20.7%
20.9%
(20 bps)
Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating and cooling systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions.
$, millions
Q2 2022
Q2 2021
Y-O-Y Change
Organic Y-O-Y
Change
Bookings
$493.6
$629.8
(22)%
(12)%
Net Revenues
$521.6
$523.2
flat
11%
GAAP Operating Income
$83.7
$99.1
(16)%
GAAP Operating Margin
16.0%
18.9%
(290 bps)
Adjusted Operating Income
$86.3
$99.5
(13)%
Adjusted Operating Margin
16.5%
19.0%
(250 bps)
Adjusted EBITDA
$92.4
$107.3
(14)%
Adjusted EBITDA Margin
17.7%
20.5%
(280 bps)
Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating and cooling systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.
$, millions
Q2 2022
Q2 2021
Y-O-Y Change
Organic Y-O-Y
Change
Bookings
$437.4
$394.9
11%
16%
Net Revenues
$282.5
$334.9
(16)%
(12)%
GAAP Operating Income
$40.6
$57.8
(30)%
GAAP Operating Margin
14.4%
17.3%
(290 bps)
Adjusted Operating Income
$40.4
$57.5
(30)%
Adjusted Operating Margin
14.3%
17.2%
(290 bps)
Adjusted EBITDA
$43.2
$63.0
(31)%
Adjusted EBITDA Margin
15.3%
18.8%
(350 bps)
Balance Sheet and Cash Flow
$, millions
Q2 2022
Q2 2021
Y-O-Y Change
Cash From Continuing Operating Activities Y-T-D
$418
$752
($334)
Free Cash Flow Y-T-D*
$387
$696
($309)
Working Capital/Revenue*
4.0%
1.5%
250 bps increase
Cash Balance 30 June
$1,090
$2,912
($1,822)
Debt Balance 30 June
$4,837
$4,965
($128)
Raises Full-Year 2022 Revenue and EPS Guidance
This news release includes “forward-looking statements,” which are statements that are not historical facts, including statements that relate to our future performance, statements relating to the continued impact of the COVID-19 global pandemic, capital deployment including the amount and timing of our dividends, our share repurchase program including the amount of shares to be repurchased and the timing of such repurchases and our capital allocation strategy including acquisitions, if any; our projected free cash flow and usage of such cash; our available liquidity; performance of the markets in which we operate; restructuring activity and cost savings associated with such activity; our projected financial performance and targets including assumptions regarding our effective tax rate. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, the impact of the global COVID-19 pandemic on our business, our suppliers and our customers; cybersecurity risks, global economic conditions taking into account the global COVID-19 pandemic, and the war in Ukraine and potential recessions and economic downturns; commodity shortages, supply chain constraints and price increases; the outcome of any litigation, risks and uncertainties associated with Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; demand for our products and services; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2021, as well as our subsequent reports on Form 10-Q and other SEC filings. We assume no obligation to update these forward-looking statements.
This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release.
All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies’ ordinary shareholders.
Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com.
# # #
8/3/22
(See Accompanying Tables)
*Q2 Non-GAAP measures definitions
Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions. Organic bookings is defined as reported orders in the current period adjusted for the impact of currency and acquisitions.
Adjusted operating income in 2022 is defined as GAAP operating income plus restructuring costs, transformation costs and non-cash adjustments for contingent consideration. Adjusted operating income 2021 is defined as GAAP operating income plus restructuring costs and transformation costs. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of the news release.
Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues.
Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q2 2022) less the prior period (e.g. Q2 2021), divided by the change in net revenues for the current period less the prior period.
Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2022 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc plus restructuring costs, transformation costs and non-cash adjustments for contingent consideration, net of tax impacts. Adjusted net earnings in 2021 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc plus restructuring costs and transformation costs, net of tax impacts. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release.
Adjusted continuing EPS in 2022 is defined as GAAP continuing EPS plus restructuring costs, transformation costs and non-cash adjustments for contingent consideration, net of tax impacts. Adjusted continuing EPS in 2021 is defined as GAAP continuing EPS plus restructuring costs and transformation costs, net of tax impacts. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release.
Adjusted EBITDA in 2022 and 2021 is defined as adjusted operating income plus depreciation and amortization expense plus or minus other income / (expense), net. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and 5 of the news release.
Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues.
Free cash flow in 2022 is defined as net cash provided by (used in) continuing operating activities, less capital expenditures, plus cash payments for restructuring costs, transformation costs and the continuing operations component of the qualified settlement fund (QSF) Funding. Free cash flow in 2021 is defined as net cash provided by (used in) continuing operating activities, less capital expenditures, plus cash payments for restructuring costs and transformation costs. Please refer to the free cash flow reconciliation on table 8 of the news release.
Working capital measures a firm’s operating liquidity position and its overall effectiveness in managing the enterprise’s current accounts.
Adjusted effective tax rate for 2022 is defined as the ratio of income tax expense less the net tax effect of adjustments for restructuring costs, transformation costs and non-cash adjustments for contingent consideration divided by earnings from continuing operations before income taxes plus restructuring costs, transformation costs and non-cash adjustments for contingent consideration. Adjusted effective tax rate for 2021 is defined as the ratio of income tax expense less the net tax effect of adjustments for restructuring costs and transformation costs divided by earnings from continuing operations before income taxes plus restructuring costs and transformation costs. This measure allows for a direct comparison of the effective tax rate between periods.
The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). The following schedules provide non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP.
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations.
Non-GAAP financial measures assist investors with analyzing our business results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. Presentation of these non-GAAP financial measures helps investors and management to assess the operating performance of the Company.
As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
Table 1
TRANE TECHNOLOGIES PLC
Condensed Consolidated Income Statement
(In millions, except per share amounts)
UNAUDITED
For the quarter
For the six months
ended June 30,
ended June 30,
2022
2021
2022
2021
Net revenues
$
4,190.4
$
3,829.7
$
7,545.9
$
6,847.3
Cost of goods sold
(2,867.0
)
(2,559.0
)
(5,233.5
)
(4,623.4
)
Selling and administrative expenses
(612.8
)
(619.7
)
(1,213.6
)
(1,219.7
)
Operating income
710.6
651.0
1,098.8
1,004.2
Interest expense
(55.9
)
(59.3
)
(111.9
)
(120.0
)
Other income/(expense), net
(1.6
)
0.3
(2.3
)
(6.9
)
Earnings before income taxes
653.1
592.0
984.6
877.3
Provision for income taxes
(136.6
)
(122.8
)
(197.7
)
(171.2
)
Earnings from continuing operations
516.5
469.2
786.9
706.1
Discontinued operations, net of tax
(1.6
)
(0.2
)
(8.6
)
0.7
Net earnings
514.9
469.0
778.3
706.8
Less: Net earnings from continuing operations attributable to noncontrolling interests
(5.6
)
(4.3
)
(8.8
)
(6.9
)
Net earnings attributable to Trane Technologies plc
$
509.3
$
464.7
$
769.5
$
699.9
Amounts attributable to Trane Technologies plc ordinary shareholders:
Continuing operations
$
510.9
$
464.9
$
778.1
$
699.2
Discontinued operations
(1.6
)
(0.2
)
(8.6
)
0.7
Net earnings
$
509.3
$
464.7
$
769.5
$
699.9
Diluted earnings (loss) per share attributable to Trane Technologies plc ordinary shareholders:
Continuing operations
$
2.17
$
1.91
$
3.29
$
2.87
Discontinued operations
(0.01
)
—
(0.03
)
0.01
Net earnings
$
2.16
$
1.91
$
3.26
$
2.88
Weighted-average number of common shares outstanding:
Diluted
235.7
243.4
236.4
243.3
Table 2
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
For the quarter ended June 30, 2022
For the six months ended June 30, 2022
As
As
As
As
Reported
Adjustments
Adjusted
Reported
Adjustments
Adjusted
Net revenues
$
4,190.4
$
—
$
4,190.4
$
7,545.9
$
—
$
7,545.9
Operating income
710.6
(3.3
)
(a,b,c)
707.3
1,098.8
(6.6
)
(a,b,c)
1,092.2
Operating margin
17.0
%
16.9
%
14.6
%
14.5
%
Earnings from continuing operations before income taxes
653.1
(3.3
)
(a,b,c)
649.8
984.6
(6.6
)
(a,b,c)
978.0
Benefit (Provision) for income taxes
(136.6
)
1.1
(d)
(135.5
)
(197.7
)
1.9
(d)
(195.8
)
Tax rate
20.9
%
20.9
%
20.1
%
20.0
%
Earnings from continuing operations attributable to Trane Technologies plc
$
510.9
$
(2.2
)
(e)
$
508.7
$
778.1
$
(4.7
)
(e)
$
773.4
Diluted earnings per common share
Continuing operations
$
2.17
$
(0.01
)
$
2.16
$
3.29
$
(0.02
)
$
3.27
Weighted-average number of common shares outstanding:
Diluted
235.7
—
235.7
236.4
—
236.4
Detail of Adjustments:
(a)
Non-cash adjustments for contingent consideration (SG&A)
$
(9.6
)
$
(16.1
)
(b)
Restructuring costs (COGS & SG&A)
4.1
5.4
(c)
Transformation costs (SG&A)
2.2
4.1
(d)
Tax impact of adjustments (a,b,c)
1.1
1.9
(e)
Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc
$
(2.2
)
$
(4.7
)
Pre-tax impact of adjustments on cost of goods sold
$
1.3
$
4.5
Pre-tax impact of adjustments on selling & administrative expenses
(4.6
)
(11.1
)
Pre-tax impact of adjustments on operating income
$
(3.3
)
$
(6.6
)
Table 3
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
For the quarter ended June 30, 2021
For the six months ended June 30, 2021
As
As
As
As
Reported
Adjustments
Adjusted
Reported
Adjustments
Adjusted
Net revenues
$
3,829.7
$
—
$
3,829.7
$
6,847.3
$
—
$
6,847.3
Operating income
651.0
5.3
(a,b)
656.3
1,004.2
20.0
(a,b)
1,024.2
Operating margin
17.0
%
17.1
%
14.7
%
15.0
%
Earnings from continuing operations before income taxes
592.0
5.3
(a,b)
597.3
877.3
20.0
(a,b)
897.3
Provision for income taxes
(122.8
)
(1.8
)
(c)
(124.6
)
(171.2
)
(5.4
)
(c)
(176.6
)
Tax rate
20.7
%
20.9
%
19.5
%
19.7
%
Earnings from continuing operations attributable to Trane Technologies plc
$
464.9
$
3.5
(d)
$
468.4
$
699.2
$
14.6
(d)
$
713.8
Diluted earnings per common share
Continuing operations
$
1.91
$
0.01
$
1.92
$
2.87
$
0.06
$
2.93
Weighted-average number of common shares outstanding:
Diluted
243.4
—
243.4
243.3
—
243.3
Detail of Adjustments:
(a)
Restructuring costs (COGS & SG&A)
$
1.5
$
11.8
(b)
Transformation costs (SG&A)
3.8
8.2
(c)
Tax impact of adjustments (a,b)
(1.8
)
(5.4
)
(d)
Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc
$
3.5
$
14.6
Pre-tax impact of adjustments on cost of goods sold
$
0.8
$
2.6
Pre-tax impact of adjustments on selling & administrative expenses
4.5
17.4
Pre-tax impact of adjustments on operating income
$
5.3
$
20.0
Table 4
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions)
UNAUDITED
For the quarter ended
June 30, 2022
For the quarter ended
June 30, 2021
As Reported
Margin
As Reported
Margin
Americas
Net revenues
$
3,386.3
$
2,971.6
Segment operating income
$
643.7
19.0
%
$
560.1
18.8
%
Restructuring/Other (a)
(8.5
)
(0.2
)%
1.7
0.1
%
Adjusted operating income *
635.2
18.8
%
561.8
18.9
%
Depreciation and amortization
63.4
1.9
%
56.3
1.9
%
Other income/(expense), net
3.6
—
%
2.9
0.1
%
Adjusted EBITDA *
$
702.2
20.7
%
$
621.0
20.9
%
Europe, Middle East & Africa
Net revenues
$
521.6
$
523.2
Segment operating income
$
83.7
16.0
%
$
99.1
18.9
%
Restructuring
2.6
0.5
%
0.4
0.1
%
Adjusted operating income
86.3
16.5
%
99.5
19.0
%
Depreciation and amortization
6.9
1.3
%
8.6
1.6
%
Other income/(expense), net
(0.8
)
(0.1
)%
(0.8
)
(0.1
)%
Adjusted EBITDA
$
92.4
17.7
%
$
107.3
20.5
%
Asia Pacific
Net revenues
$
282.5
$
334.9
Segment operating income
$
40.6
14.4
%
$
57.8
17.3
%
Restructuring
(0.2
)
(0.1
)%
(0.3
)
(0.1
)%
Adjusted operating income
40.4
14.3
%
57.5
17.2
%
Depreciation and amortization
4.2
1.5
%
4.5
1.3
%
Other income/(expense), net
(1.4
)
(0.5
)%
1.0
0.3
%
Adjusted EBITDA
$
43.2
15.3
%
$
63.0
18.8
%
Corporate
Unallocated corporate expense
$
(57.4
)
$
(66.0
)
Restructuring/Other (b)
2.8
3.5
Adjusted corporate expense
(54.6
)
(62.5
)
Depreciation and amortization
5.3
5.4
Other income/(expense), net
(3.0
)
(2.8
)
Adjusted EBITDA
$
(52.3
)
$
(59.9
)
Total Company
Net revenues
$
4,190.4
$
3,829.7
Operating income
$
710.6
17.0
%
$
651.0
17.0
%
Restructuring/Other (a,b)
(3.3
)
(0.1
)%
5.3
0.1
%
Adjusted operating income
707.3
16.9
%
656.3
17.1
%
Depreciation and amortization
79.8
1.9
%
74.8
2.0
%
Other income/(expense), net
(1.6
)
(0.1
)%
0.3
—
%
Adjusted EBITDA
$
785.5
18.7
%
$
731.4
19.1
%
*Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions.
(a) Other within the Americas segment includes a non-cash adjustment for contingent consideration of $9.6M in 2022
(b) Other within Corporate includes Transformation costs of $2.2M in 2022 and $3.8M in 2021
Table 5
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions)
UNAUDITED
For the quarter
ended June 30,
2022
2021
Total Company
Adjusted EBITDA *
$
785.5
$
731.4
Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc
Depreciation and amortization
(79.8
)
(74.8
)
Interest expense
(55.9
)
(59.3
)
Provision for income taxes
(136.6
)
(122.8
)
Restructuring
(4.1
)
(1.5
)
Transformation Costs
(2.2
)
(3.8
)
Non-cash adjustments for contingent consideration
9.6
—
Discontinued operations, net of tax
(1.6
)
(0.2
)
Net earnings from continuing operations attributable to noncontrolling interests
(5.6
)
(4.3
)
Net earnings attributable to Trane Technologies plc
$
509.3
$
464.7
*Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions.
Table 6
TRANE TECHNOLOGIES PLC
Condensed Consolidated Balance Sheets
(In millions)
UNAUDITED
June 30,
December 31,
2022
2021
ASSETS
Cash and cash equivalents
$
1,090.2
$
2,159.2
Accounts and notes receivable, net
2,758.2
2,429.4
Inventories
1,886.9
1,530.8
Other current assets
389.9
351.5
Total current assets
6,125.2
6,470.9
Property, plant and equipment, net
1,425.9
1,398.8
Goodwill
5,456.6
5,504.8
Intangible assets, net
3,282.5
3,305.6
Other noncurrent assets
1,390.6
1,379.7
Total assets
$
17,680.8
$
18,059.8
LIABILITIES AND EQUITY
Accounts payable
$
2,000.2
$
1,787.3
Accrued expenses and other current liabilities
2,580.3
2,614.7
Short-term borrowings and current maturities of long-term debt
1,049.8
350.4
Total current liabilities
5,630.3
4,752.4
Long-term debt
3,786.7
4,491.7
Other noncurrent liabilities
2,524.5
2,542.6
Shareholders’ Equity
5,739.3
6,273.1
Total liabilities and equity
$
17,680.8
$
18,059.8
Table 7
TRANE TECHNOLOGIES PLC
Condensed Consolidated Statement of Cash Flows
(In millions)
UNAUDITED
For the six months
ended June 30,
2022
2021
Operating Activities
Earnings from continuing operations
$
786.9
$
706.1
Depreciation and amortization
157.1
150.8
Changes in assets and liabilities and other non-cash items
(526.3
)
(105.1
)
Net cash provided by (used in) continuing operating activities
417.7
751.8
Net cash provided by (used in) discontinued operating activities
(184.2
)
(1.2
)
Net cash provided by (used in) operating activities
233.5
750.6
Investing Activities
Capital expenditures, net
(143.9
)
(77.5
)
Acquisition of businesses, net of cash acquired
(109.6
)
(12.8
)
Other investing activities, net
(4.6
)
(71.8
)
Net cash provided by (used in) continuing investing activities
(258.1
)
(162.1
)
Net cash provided by (used in) discontinued investing activities
(0.6
)
—
Net cash provided by (used in) investing activities
(258.7
)
(162.1
)
Financing Activities
Payments of long-term debt
(7.5
)
(307.5
)
Dividends paid to ordinary shareholders
(310.9
)
(281.6
)
Repurchase of ordinary shares
(650.1
)
(354.2
)
Other financing activities, net
(33.1
)
5.7
Net cash provided by (used in) financing activities of continuing operations
(1,001.6
)
(937.6
)
Effect of exchange rate changes on cash and cash equivalents
(42.2
)
(28.4
)
Net increase (decrease) in cash and cash equivalents
(1,069.0
)
(377.5
)
Cash and cash equivalents – beginning of period
2,159.2
3,289.9
Cash and cash equivalents – end of period
$
1,090.2
$
2,912.4
Table 8
TRANE TECHNOLOGIES PLC
Balance Sheet Metrics and Free Cash Flow
($ in millions)
UNAUDITED
June 30,
June 30,
December 31,
2022
2021
2021
Net Receivables
$
2,758
$
2,532
$
2,429
Days Sales Outstanding
60.1
60.3
62.1
Net Inventory
$
1,887
$
1,386
$
1,531
Inventory Turns
6.1
7.4
6.6
Accounts Payable
$
2,000
$
1,833
$
1,787
Days Payable Outstanding
63.7
65.4
64.5
——————————————————————————————————————————————————-
Six months ended
Six months ended
June 30, 2022
June 30, 2021
Cash flow provided by continuing operating activities
$
417.7
$
751.8
Capital expenditures
(143.9
)
(77.5
)
Cash payments for restructuring
14.2
15.7
Transformation costs paid
7.4
6.4
QSF funding (continuing operations component)1
91.8
—
Free cash flow *
$
387.2
$
696.4
1 On March 2, 2022, the Company funded $270.0 million to the qualified settlement fund (QSF), of which $91.8 million was allocated to continuing operations and $178.2 million was allocated to discontinued operations
*Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005213/en/
Media:
Jennifer Regina
704-712-5721, jennifer.regina@tranetechnologies.com
Investors:
Zac Nagle
704-990-3913, InvestorRelations@tranetechnologies.com
Source: Trane Technologies
Multimedia Files:
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© Trane Technologies plc, | 170/175 Lakeview Drive, Airside Business Park, Swords, Co. Dublin, Ireland REGISTERED IN IRELAND WITH LIMITED LIABILITY REGISTERED NUMBER 469272
Trane Technologies is a diverse and inclusive environment. We are an equal opportunity employer and are dedicated to hiring qualified protected veterans and individuals with disabilities.
Some information on these pages may relate to historical data for Trane Technologies plc (formerly known as Ingersoll-Rand plc) as a combined company operating with two business segments: Climate and Industrial. In the first quarter 2020, we completed a spin-off of our Industrial business which was subsequently combined with Gardner Denver Holdings, Inc. (“GDI”). GDI was subsequently renamed Ingersoll-Rand, Inc.