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EX-99.1 2 q12017pressrelease.htm EX 99.1 - PRESS RELEASE Exhibit


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SENSATA TECHNOLOGIES REPORTS FIRST QUARTER 2017 FINANCIAL RESULTS

Hengelo, the Netherlands – April 25, 2017 - Sensata Technologies (NYSE: ST) today announced financial results for its first quarter ended March 31, 2017 .
Revenue was $807.3 million in the first quarter of 2017 , an increase of $10.7 million , or 1.3% , from revenue of $796.5 million in the first quarter of 2016 . Excluding a 2.2% negative effect from changes in foreign exchange rates, Sensata reported organic revenue growth of 3.5% in the first quarter of 2017 .
Net income was $71.7 million in the first quarter 2017 , which was 8.9% of revenue or $0.42 per diluted share. This compares to net income of $60.6 million in the first quarter 2016 , which was 7.6% of revenue or $0.35 per diluted share. Adjusted net income was $121.5 million in the first quarter of 2017 , which was 15.0% of revenue or $0.71 per diluted share. This compares to adjusted net income of $113.2 million in the first quarter of 2016, which was 14.2% of revenue or $0.66 per diluted share. Changes in foreign exchange rates reduced Sensata's adjusted earnings per share by ($0.03) in the first quarter of 2017 compared to the prior year period.
Sensata’s ending cash balance at March 31, 2017 was $431.7 million. In the first quarter of 2017 operating cash flow was $119.7 million , a decrease of 12.1% from the first quarter of 2016, and free cash flow was $86.6 million , a decrease of 15.0% from the prior year period. The Company’s net debt at March 31, 2017 was $2.882 billion, an improvement of $91 million from December 31, 2016.
"We started the year off strong, delivering solid organic revenue growth, margin expansion, and double-digit organic EPS growth during the first quarter of 2017," said Martha Sullivan, President and Chief Executive Officer. "Our revenue growth was balanced between both segments, while China continues to be our strongest geographic region . We delivered impressive year-over-year margin expansion despite facing foreign exchange headwinds and higher integration costs. As we move ahead, we remain focused on pursuing strategic investments that will drive future growth, while continuing to expand margins and improve profitability."

1


Segment Performance
 
 
Three months ended
$ in 000s
 
March 31, 2017
 
March 31, 2016
Performance Sensing revenue
 
$
600,143

 
$
597,175

Performance Sensing profit from operations
 
151,736

 
145,787

    % of Performance Sensing revenue
 
25.3
%
 
24.4
%
 
 
 
 
 
Sensing Solutions revenue
 
$
207,128

 
$
199,374

Sensing Solutions profit from operations
 
67,438

 
63,248

    % of Sensing Solutions revenue
 
32.6
%
 
31.7
%
Performance Sensing’s profit from operations as a percentage of revenue totaled 25.3% in the first quarter of 2017. Excluding the impact of changes in foreign exchange rates, Performance Sensing’s profit from operations as a percentage of revenue was 25.7% in the first quarter of 2017, representing an increase of 130 basis points from the first quarter of 2016. Sensing Solutions' profit from operations as a percentage of revenue totaled 32.6% in the first quarter of 2017. Excluding the impact of changes in foreign exchange rates, Sensing Solutions' profit from operations as a percentage of revenue was 32.3% in the first quarter of 2017, representing an increase of 60 basis points compared to the first quarter of 2016. Higher year-over-year integration costs reduced Sensing Solutions’ profit from operations as a percentage of revenue by 30 basis points in the first quarter of 2017.
Guidance
Sensata anticipates revenue to be between $820 and $844 million in the second quarter of 2017 compared to $827.5 million in the second quarter of 2016. Additionally, the Company expects adjusted net income to be between $131 and $137 million and adjusted earnings per share to be between $0.76 and $0.80 in the second quarter of 2017. Sensata expects to incur approximately $8 to $9 million of integration-related expenses in the second quarter of 2017.
For the full year 2017, the Company anticipates revenue to be between $3.165 and $3.265 billion, which would represent organic revenue growth of between 1 and 3 percent. For full year 2017, Sensata expects adjusted EBIT to be between $734 and $756 million. Additionally, the Company expects adjusted net income to be between $528 million and $550 million and adjusted earnings per share to be between $3.08 and $3.20 for full year 2017, which would represent organic growth of 8 to 12 percent. Sensata expects that changes in foreign currency exchange rates will lower revenue by approximately $52 million and will lower adjusted earnings per share by ($0.02) to ($0.03) for the full year 2017. Sensata expects to incur approximately $19 to 20 million of integration-related expenses for the full year 2017.
Conference Call & Webcast
Sensata will conduct a conference call today at 8:00 AM eastern time to discuss its first quarter 2017 financial results and its outlook for the second quarter and full year 2017. The dial-in numbers for the call are 1-877-317-6789 or +1-412-317-6789 and callers can reference the Sensata Q1 2017 Earnings Call. A live webcast and a replay of the conference call will also be available on the investor relations page of the Company’s website at http://investors.sensata.com . Additionally, a replay of the call will be available until May 2nd, 2017. To access the replay dial 1-877-344-7529 or

2


1-412-317-0088 and enter confirmation code: 10103598.
About Sensata Technologies
Sensata Technologies is one of the world's leading suppliers of sensing, electrical protection, control and power management solutions with operations and business centers in thirteen countries. Sensata's products improve safety, efficiency, and comfort for millions of people every day in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, ventilation, and air conditioning, data, telecommunications, recreational vehicle, and marine applications. For more information, please visit Sensata's website at www.sensata.com .
Non-GAAP Financial Measures
We supplement the reporting of our financial information determined in accordance with U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measures. We use these non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance, and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures is useful for period-over-period comparisons of underlying business trends and our ongoing business performance. We also believe presenting these non-GAAP measures provides additional transparency into how management evaluates our business.
Non-GAAP financial measures should be considered as supplemental in nature and are not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, our non-GAAP financial measures may not be the same as, or comparable to, similar non-GAAP measures presented by other companies.
The non-GAAP financial measures referenced by Sensata in this release include: adjusted net income, adjusted net income margin, adjusted earnings per share (“EPS”), adjusted earnings before interest and taxes (“EBIT”), adjusted EBIT margin, free cash flow, net debt, organic revenue growth, and segment profit margin excluding the effects of period-over-period foreign exchange rate differences. In discussing trends in our business, we also refer to the percentage change of certain non-GAAP measures in one period versus another, determined on either a reported or an organic (which excludes the impact of acquisitions, net of exited businesses that occurred within the previous year, and the effect of changes in foreign currency exchange rates) basis. These period-over-period changes are also considered non-GAAP measures.
Adjusted net income is defined as net income, determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are described in the accompanying reconciliation tables. Adjusted net income margin is calculated by dividing adjusted net income by net revenue. Adjusted EPS is calculated by dividing adjusted net income by the number of diluted weighted average ordinary shares outstanding in the period. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Adjusted EBIT is defined as net income, determined in accordance with U.S. GAAP, excluding interest expense, net, provision for/(benefit from) income taxes, and certain non-GAAP adjustments which are described in the accompanying reconciliation tables. Adjusted EBIT margin is calculated by dividing adjusted EBIT by net revenue. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

3


Free cash flow is defined as net cash provided by operating activities, determined in accordance with U.S. GAAP, less additions to property, plant, and equipment and capitalized software. We believe that this measure is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to fund acquisitions, repurchase ordinary shares, or accelerate the repayment of debt obligations.
Net debt is defined as total debt, capital lease and other financing obligations, determined in accordance with U.S. GAAP, less cash and cash equivalents. We believe that this measure is useful to investors and management as an indicator of trends in our overall financial condition.
Organic revenue growth is defined as the reported percentage change in net revenue calculated in accordance with U.S. GAAP, excluding the impact of acquisitions, net of exited businesses that occurred within the previous year, and the effect of changes in foreign currency exchange rates. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Segment profit margin excluding the effects of period-over-period foreign exchange rate differences is defined as segment profit margin in the current period calculated on a constant foreign exchange rate basis with the comparison prior period. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Safe Harbor Statement
This earnings release contains forward-looking statements within the meaning of the federal securities laws. These statements relate to analyses and other information, which are based on forecasts of future results and estimates of amounts not yet determinable, and our future prospects, developments, and business strategies. Such forward-looking statements include, among other things, our anticipated results for the second quarter and full year 2017. Such statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Factors that might cause these differences include, but are not limited to, risks associated with: adverse conditions in the automotive industry; competitive pressures that could require us to lower prices or could result in reduced demand for our products; integration of acquired companies, including CST and Schrader; the assumption of known and unknown liabilities in the acquisition of CST and Schrader; risks associated with our non-U.S. operations and international business; litigation and disputes involving us, including the extent of intellectual property, product liability, warranty, and recall claims asserted against us; risks associated with our historical and future tax positions; risks associated with labor disruptions or increased labor costs; risks associated with our indebtedness; and risks associated with breaches and other disruptions to our information technology infrastructure. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made; and we undertake no obligation to publicly update or revise any forward-looking statements, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our filings are available from our Investor Relations department or from the SEC website, www.sec.gov .



4



SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Statements of Operations
(Unaudited)

(In 000s, except per share amounts)
 
 
 
 
 
 
For the three months ended
 
 
March 31, 2017
 
March 31, 2016
Net revenue
 
$
807,271

 
$
796,549

Operating costs and expenses:
 
 
 
 
Cost of revenue
 
532,726

 
528,378

Research and development
 
31,814

 
31,351

Selling, general and administrative
 
70,274

 
71,931

Amortization of intangible assets
 
40,258

 
50,447

Restructuring and special charges
 
11,050

 
855

Total operating costs and expenses
 
686,122

 
682,962

Profit from operations
 
121,149

 
113,587

Interest expense, net
 
(40,277
)
 
(42,268
)
Other, net
 
5,196

 
5,488

Income before taxes
 
86,068

 
76,807

Provision for income taxes
 
14,332

 
16,195

Net income
 
$
71,736

 
$
60,612

 
 
 
 
 
Net income per share:
 
 
 
 
Basic
 
$
0.42

 
$
0.36

Diluted
 
$
0.42

 
$
0.35

 
 
 
 
 
Weighted-average ordinary shares outstanding:
 
 
Basic
 
170,947

 
170,404

Diluted
 
171,905

 
171,257



5



SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

($ in 000s)
 
 
 
 
 
 
 
For the three months ended
 
 
 
March 31, 2017
 
March 31, 2016
 
Net income
 
$
71,736

 
$
60,612

 
Other comprehensive income/(loss), net of tax:
 
 
 
 
 
Deferred gain/(loss) on derivative instruments, net of reclassifications
 
132

 
(16,703
)
 
Defined benefit and retiree healthcare plans
 
480

 
208

 
Other comprehensive income/(loss)
 
612

 
(16,495
)
 
Comprehensive income
 
$
72,348

 
$
44,117

 


6



SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Balance Sheets
(Unaudited)

($ in 000s)
 
 
 
 
 
 
March 31, 2017
 
December 31, 2016
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
431,700

 
$
351,428

Accounts receivable, net of allowances
 
533,126

 
500,211

Inventories
 
407,198

 
389,844

Prepaid expenses and other current assets
 
101,259

 
100,002

Total current assets
 
1,473,283

 
1,341,485

Property, plant and equipment, net
 
723,418

 
724,046

Goodwill
 
3,005,464

 
3,005,464

Other intangible assets, net
 
1,036,054

 
1,075,431

Deferred income tax assets
 
20,694

 
20,695

Other assets
 
71,658

 
73,855

Total assets
 
$
6,330,571

 
$
6,240,976

 
 
 
 
 
Liabilities and shareholders’ equity
 
 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt, capital lease and other financing obligations
 
$
7,363

 
$
14,643

Accounts payable
 
301,605

 
299,198

Income taxes payable
 
26,988

 
23,889

Accrued expenses and other current liabilities
 
259,238

 
245,566

Total current liabilities
 
595,194

 
583,296

Deferred income tax liabilities
 
396,092

 
392,628

Pension and other post-retirement benefit obligations
 
34,707

 
34,878

Capital lease and other financing obligations, less current portion
 
31,260

 
32,369

Long-term debt, net of discount and deferred financing costs, less current portion
 
3,225,965

 
3,226,582

Other long-term liabilities
 
27,096

 
29,216

Total liabilities
 
4,310,314

 
4,298,969

Total shareholders’ equity
 
2,020,257

 
1,942,007

Total liabilities and shareholders’ equity
 
$
6,330,571

 
$
6,240,976



7


SENSATA TECHNOLOGIES HOLDING N.V.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
($ in 000s)
 
For the three months ended
 
 
March 31, 2017
 
March 31, 2016
Cash flows from operating activities:
 
 
 
 
Net income
 
$
71,736

 
$
60,612

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation
 
28,795

 
25,999

Amortization of deferred financing costs and original issue discounts
 
1,857

 
1,844

Currency remeasurement loss on debt
 
54

 
128

Share-based compensation
 
3,952

 
3,516

Amortization of inventory step-up to fair value
 

 
2,319

Amortization of intangible assets
 
40,258

 
50,447

Deferred income taxes
 
3,400

 
5,547

Unrealized loss/(gain) on hedges and other non-cash items
 
2,066

 
(3,974
)
Changes in operating assets and liabilities, net of effects of acquisitions
 
(32,417
)
 
(10,236
)
Net cash provided by operating activities
 
119,701

 
136,202

 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
Acquisition of CST, net of cash received
 

 
(3,360
)
Additions to property, plant and equipment and capitalized software
 
(33,059
)
 
(34,235
)
Investment in equity securities
 

 
(50,000
)
Proceeds from the sale of assets
 
2,937

 

Net cash used in investing activities
 
(30,122
)
 
(87,595
)
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
Proceeds from exercise of stock options and issuance of ordinary shares
 
2,450

 
128

Payments on debt
 
(11,122
)
 
(40,308
)
Payments to repurchase ordinary shares
 
(498
)
 
(2,494
)
Payments of debt issuance costs
 
(137
)
 
(209
)
Net cash used in financing activities
 
(9,307
)
 
(42,883
)
Net change in cash and cash equivalents
 
80,272

 
5,724

Cash and cash equivalents, beginning of period
 
351,428

 
342,263

Cash and cash equivalents, end of period
 
$
431,700

 
$
347,987


8


Revenue by Business, Geography, and End Market (Unaudited)

(% of total revenue)
 
Three months ended March 31,
 
 
2017
 
2016
Performance Sensing
 
74.3
%
 
75.0
%
Sensing Solutions
 
25.7
%
 
25.0
%
Total
 
100.0
%
 
100.0
%


(% of total revenue)
 
Three months ended March 31,
 
 
2017
 
2016
Americas
 
42.3
%
 
43.5
%
Europe
 
31.3
%
 
33.4
%
Asia/Rest of World
 
26.4
%
 
23.1
%
Total
 
100.0
%
 
100.0
%


(% of total revenue) 1
 
Three months ended March 31,
 
 
2017
 
2016
European automotive
 
23.9
%
 
25.9
%
North American automotive
 
19.9
%
 
20.3
%
Asian automotive
 
18.0
%
 
16.1
%
Rest of world automotive
 
0.2
%
 
0.3
%
Heavy vehicle off-road
 
14.0
%
 
13.9
%
Appliance and heating, ventilation and air-conditioning
 
6.6
%
 
5.7
%
Industrial
 
9.5
%
 
9.2
%
Aerospace
 
4.7
%
 
4.6
%
All other
 
3.2
%
 
4.0
%
Total
 
100.0
%
 
100.0
%

1 Reclassification of certain acquired product lines has led to retrospective adjustments of certain end-market percentages.


9


The following unaudited table reconciles the Company’s net income to adjusted net income for the three months ended March 31, 2017 and 2016.
(In 000s, except per share amounts)
 
Three months ended March 31,
 
 
2017
 
2016
Net income
 
$
71,736

 
$
60,612

Restructuring and special charges
 
7,691

 
3,639

Financing and other transaction costs
 

 
781

Deferred (gain)/loss on other hedges
 
(5,340
)
 
(13,273
)
Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory
 
41,994

 
53,866

Deferred income tax and other tax expense/(benefit)
 
3,542

 
5,757

Amortization of deferred financing costs
 
1,857

 
1,844

Total adjustments
 
$
49,744

 
$
52,614

Adjusted net income
 
$
121,480

 
$
113,226

Weighted average diluted shares outstanding
 
171,905

 
171,257

Adjusted net income per diluted share
 
$
0.71

 
$
0.66

Sensata's definition of adjusted net income excludes the deferred provision for/(benefit from) income taxes and other tax expense/(benefit). Sensata's deferred provision for/(benefit from) income taxes includes adjustments for book-to-tax basis differences primarily related to the step-up in fair value of fixed and intangible assets and goodwill, utilization of net operating losses and adjustments to our U.S. valuation allowance in connection with certain acquisitions. Other tax expense/(benefit) includes certain adjustments to unrecognized tax positions.
As Sensata treats deferred income tax and other tax expense/(benefit) as an adjustment to compute adjusted net income, the deferred income tax effect associated with the reconciling items, above, would not change adjusted net income for any period presented.
The current income tax (benefit)/expense associated with the reconciling items above, which is included in adjusted net income, would be as follows: Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory: $(0.0) million and ($0.0) million for the three months ended March 31, 2017 and 2016, respectively; and Restructuring and special charges of ($0.1) million and ($0.1) million for the three months ended March 31, 2017 and 2016, respectively.

10


The following unaudited table identifies where in the Condensed Consolidated Statements of Operations the adjustments to reconcile net income to adjusted net income were recorded for the three months ended March 31, 2017 and 2016.

($ in 000s)
 
Three months ended March 31,
 
 
2017
 
2016
Cost of revenue
 
$
5,177

 
$
3,373

Selling, general and administrative
 
1,303

 
1,645

Amortization of intangible assets
 
38,929

 
49,068

Restructuring and special charges
 
4,276

 
800

Interest expense, net
 
1,857

 
1,844

Other, net
 
(5,340
)
 
(9,873
)
Provision for income taxes
 
3,542

 
5,757

Total adjustments
 
$
49,744

 
$
52,614

The following unaudited table reconciles the Company’s net cash provided by operating activities to free cash flow.
($ in 000s)
 
Three months ended March 31,
 
% Change
 
 
2017
 
2016
 
 
Net cash provided by operating activities
 
$
119,701

 
$
136,202

 
(12.1
)%
Additions to property, plant and equipment and capitalized software
 
(33,059
)
 
(34,235
)
 
3.4
 %
Free cash flow
 
$
86,642

 
$
101,967

 
(15.0
)%

11


The following unaudited table reconciles the Company’s diluted net income per share to organic earnings growth. The amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding .
 
 
Three months ended March 31,
 
 
2017
 
2016
 
 
 
 
 
Diluted net income per share
 
$
0.42

 
$
0.35

Non-GAAP adjustments:
 
 
 
 
Restructuring and special charges
 
0.04

 
0.02

Financing and other transaction costs
 
0.00

 
0.00

Deferred (gain)/loss on other hedges
 
(0.03
)
 
(0.08
)
Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory
 
0.24

 
0.31

Deferred income tax expense and other tax expense/(benefit)
 
0.02

 
0.03

Amortization of deferred financing costs
 
0.01

 
0.01

Adjusted EPS
 
$
0.71

 
$
0.66

 
 
 
 
 
Percentage change in adjusted EPS
 
7.6
%
 
 
Less: year-over-year impact due to:
 
 
 
 
Foreign exchange rates
 
(4.5%)

 
 
Organic adjusted EPS growth
 
12.1
%
 


The following unaudited table reconciles the Company’s total debt, capital and other financing obligations, determined in accordance with U.S. GAAP, to net debt, a non-GAAP financial measure .

 
 
Balance as of
 
 
($ in 000s)
 
March 31, 2017
 
December 31, 2016
 
Change ($)
Current portion of long-term debt, capital lease and other financing obligations
 
$
7,363

 
$
14,643

 
$
(7,280
)
Capital lease and other financing obligations, less current portion
 
31,260

 
32,369

 
(1,109
)
Long-term debt, net of discount and deferred financing costs, less current portion
 
3,225,965

 
3,226,582

 
(617
)
Total debt, capital lease and other financing obligations
 
3,264,588

 
3,273,594

 
(9,006
)
Less: Discounts
 
(17,041
)
 
(17,655
)
 
614

Less: Deferred financing costs
 
(32,413
)
 
(33,656
)
 
1,243

Gross indebtedness
 
3,314,042

 
3,324,905

 
(10,863
)
Less: Cash and cash equivalents
 
431,700

 
351,428

 
80,272

Net debt
 
$
2,882,342

 
$
2,973,477

 
$
(91,135
)

12


The following unaudited table reconciles the Company’s net income, determined in accordance with U.S. GAAP, to adjusted EBIT, a non-GAAP financial measure. Percentage amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding.
 
$ in thousands
% of net revenue
 
Q1 2017
Q1 2016
Q1 2017
Q1 2016
Net income
$
71,736

$
60,612

8.9%
7.6%
Interest expense, net
40,277

42,268

5.0%
5.3%
Provision for income taxes
14,332

16,195

1.8%
2.0%
Earnings before interest and taxes (“EBIT”)
126,345

119,075

15.7%
14.9%
Non-GAAP adjustments:
 
 
 
Restructuring and special charges
7,691

3,639

1.0%
0.5%
Financing and other transaction costs

781

0.1%
Deferred gains on other hedges
(5,340
)
(13,273
)
(0.7%)
(1.7%)
Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory
41,994

53,866

5.2%
6.8%
Adjusted EBIT
$
170,690

$
164,088

21.1%
20.6%
 
 
 
 
Change (Q1 2017 vs. Q1 2016)
4.0%

 
50 bps
 
Less: year-over-year impact due to:
 
 
 
 
Foreign exchange rates
(3.9%)

 
(40 bps)
 
Organic growth
7.9%

 
90 bps
 

13


The following unaudited table reconciles the Company’s projected GAAP net income per diluted share to projected adjusted earnings per share for the three months ended June 30, 2017 and full year ended December 31, 2017 . The amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding.
 
 
Three months ended June 30, 2017
 
Full year ended December 31, 2017
 
 
Low End
 
High End
 
Low End
 
High End
 
 
 
 
 
 
 
 
 
Projected GAAP net income per diluted share
 
$
0.45

 
$
0.46

 
$
1.88

 
$
1.96

Restructuring and special charges
 
0.02

 
0.04

 
0.08

 
0.10

Deferred (gain)/loss on other hedges *
 

 

 
(0.03
)
 
(0.03
)
Depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory
 
0.24

 
0.24

 
0.96

 
0.96

Deferred income tax and other tax expense/(benefit)
 
0.04

 
0.05

 
0.15

 
0.17

Amortization of deferred financing costs
 
0.01

 
0.01

 
0.04

 
0.04

Projected adjusted earnings per share
 
$
0.76

 
$
0.80

 
$
3.08

 
$
3.20

Weighted average diluted shares outstanding (in 000s)
 
171,700

 
171,700

 
171,700

 
171,700

* We are unable to predict movements in commodity prices and, therefore, the impact of mark-to-market adjustments on our commodity forward contracts to our 2017 GAAP net income per diluted share. In prior years such adjustments have been significant to our reported GAAP earnings.

# # #
Contacts:
 
 
 
 
 
Investors:
 
Media:
Joshua Young
 
Alexia Taxiarchos
(508) 236-2196
 
(508) 236-1761
Joshua.young@sensata.com
 
ataxiarchos@sensata.com


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