PEMBROKE, Bermuda, Aug. 7 /PRNewswire-FirstCall/ -- ($ millions,
except per-share amounts) June 29, June 30, % Change 2007 2006
Revenue $5,085 $4,715 8% Income from Continuing Operations ($3,035)
$170 N/A Diluted EPS from Continuing Operations ($6.13) $0.33 N/A
Special Items ($3,312) ($82) Income from Continuing Ops Before
Special Items $277 $252 10% Diluted EPS from Continuing Ops Before
Special Items $0.55 $0.49 12% - Results Impacted by Charges of $3.3
Billion for Special Items, Primarily from the Previously Disclosed
Settlement of Legacy Securities Class Action Litigation - Spin-off
of Healthcare and Electronics Businesses Completed on June 29, 2007
Tyco International Ltd. (NYSE:TYC)(BSX:TYC) today reported a loss
of $6.13 in diluted GAAP EPS from continuing operations and diluted
earnings per share (EPS) from continuing operations of $0.55 before
special items for the fiscal third quarter of 2007. Revenue in the
quarter increased 8% versus the prior year to $5.1 billion, with
organic revenue growth of 5%. Third quarter income from continuing
operations was negatively impacted by previously disclosed special
items which totaled $3.3 billion after tax or $6.68 per share as
follows: $ in Millions $ Per Share Settlement of Securities Class
Action $2,884 $5.83 Separation Costs $343 $0.69 Goodwill Impairment
$46 $0.09 Restructuring $37 $0.07 Divestitures $2 $0.00 TOTAL
$3,312 $6.68 On June 29, 2007, Tyco International completed the
spin-off of its healthcare and electronics businesses and the
operating results of these businesses have been reclassified as a
single line item, net of tax, in discontinued operations for the
third quarter of 2007 and all prior periods. In conjunction with
the spin-off, Tyco International executed a four-for- one reverse
share split under which each Tyco share was converted into one-
fourth of a share. As a result, share and per share data have been
adjusted to reflect the reverse share split for the third quarter
and all previous periods. Tyco Chairman and Chief Executive Officer
Ed Breen said, "We achieved a significant milestone during the
third quarter by completing the spin-off of our healthcare and
electronics businesses. We also reached an important agreement to
resolve the majority of our legacy securities class action
litigation. Operationally, Tyco International's performance came in
at the high end of our estimates as we had solid growth in revenue
and operating income before special items driven by improvements
across most of our businesses." Organic revenue growth, free cash
flow, operating income before special items, operating margin
before special items, net income from continuing operations before
special items and EPS from continuing operations before special
items are all non-GAAP financial measures and are described below.
For a reconciliation of these non-GAAP measures, see the attached
tables. Additional schedules can be found at http://www.tyco.com/
on the Investor Relations portion of Tyco's website. SEGMENT
RESULTS In connection with the spin-off of the healthcare and
electronics businesses, Tyco International has realigned its
businesses into the following segments: ADT Worldwide; Fire
Protection Services; Flow Control; Safety Products and Electrical
and Metal Products. The financial results presented in the tables
below are in accordance with GAAP unless otherwise indicated. All
dollar amounts are pre-tax and stated in millions. All comparisons
are to the quarter ended June 30, 2006 unless otherwise indicated.
ADT Worldwide June 29, June 30, $ Change % Change 2007 2006 Revenue
$1,909 $1,806 $103 6% Operating Income $205 $242 ($37) (15%)
Operating Margin 10.7% 13.4% Special Items ($57) - Operating Income
Before Special Items $262 $242 $20 8% Operating Margin Before
Special Items 13.7% 13.4% ADT Worldwide designs, sells, installs,
services and monitors electronic security systems to residential,
commercial, industrial and governmental customers. Revenue in this
segment increased 6% in the third quarter with organic revenue
growth of 4%. Geographically, North America and the Europe, Middle
East, and Africa (EMEA) region both had organic growth of 3% while
Asia had growth of 16%. Operating income was $205 million and the
operating margin was 10.7%. Before special items, operating income
increased 8% to $262 million. The operating margin before special
items improved to 13.7%. This reflected the benefit of improved
attrition rates partially offset by lower recurring revenue in
Continental Europe and modest increases in sales and marketing
expenses. Special items in the quarter included $11 million of
restructuring costs, primarily in Europe and a $46 million goodwill
impairment. Fire Protection Services June 29, June 30, $ Change %
Change 2007 2006 Revenue $882 $826 $56 7% Operating Income $57 $61
($4) (7%) Operating Margin 6.5% 7.4% Special Items ($13) ($1)
Operating Income Before Special Items $70 $62 $8 13% Operating
Margin Before Special Items 7.9% 7.5% Fire Protection Services
designs, sells, installs and services fire detection and fire
suppression systems to commercial, industrial and governmental
customers. Revenue in this segment increased 7% in the quarter to
$882 million with organic revenue growth of 4%. Operating income
was $57 million and the operating margin was 6.5%. Before special
items, operating income increased 13% to $70 million. The operating
margin before special items of 7.9% improved due to the benefit of
higher revenue in North America, Asia and Australia partially
offset by weaker performance in Europe. Special items of $13
million in the quarter consisted primarily of restructuring charges
in Europe. Flow Control June 29, June 30, $ Change % Change 2007
2006 Revenue $982 $806 $176 22% Operating Income $124 $87 $37 43%
Operating Margin 12.6% 10.8% Special Items ($2) - Operating Income
Before Special Items $126 $87 $39 45% Operating Margin Before
Special Items 12.8% 10.8% Flow Control designs, manufactures, sells
and services valves, pipes, fittings, valve automation and heat
tracing products for the water and wastewater markets, the energy
markets and other process industries. Revenue in this segment
increased 22% in the quarter with organic revenue growth of 16%
driven by strong double digit growth across all regions. Operating
income was $124 million and the operating margin was 12.6%. Before
special items, operating income increased 45% versus the prior year
to $126 million and the operating margin before special items
improved 200 basis points due to higher revenue and improved
operating efficiency. Safety Products June 29, June 30, $ Change %
Change 2007 2006 Revenue $452 $432 $20 5% Operating Income $73
($20) $93 N/A Operating Margin 16.2% (4.6%) Special Items ($8)
($100) Operating Income Before Special Items $81 $80 $1 1%
Operating Margin Before Special Items 17.9% 18.5% Safety Products
designs, manufactures and sells fire protection, security and life
safety products including fire suppression products, breathing
apparatus, intrusion security, access control and video management
systems. Revenue in this segment increased 5% in the quarter with
organic revenue growth of 2%. Strong revenue growth in fire
suppression and electronic security was partially offset by lower
revenue in the life safety business. Operating income was $73
million and the operating margin was 16.2%. Before special items,
operating income of $81 million was essentially flat versus prior
year. The benefit from volume increases in fire suppression and
electronic security was offset by a decrease in sales in the life
safety business. Special items in the quarter included
restructuring and impairment charges of $8 million. Special items
in the prior year quarter included a $100 million charge for the
estimated cost of a voluntary replacement program for certain fire
sprinkler heads. Electrical and Metal Products June 29, June 30,
$Change % Change 2007 2006 Revenue $519 $526 ($7) (1%) Operating
Income $47 $84 ($37) (44%) Operating Margin 9.1% 16.0% Special
Items - - Operating Income Before Special Items $47 $84 ($37) (44%)
Operating Margin Before Special Items 9.1% 16.0% Electrical and
Metal Products designs, manufactures and sells steel tubing and
pipe products, pre-wired armored cable and flexible conduit
products for commercial construction. Revenue in this segment
decreased 1% in the quarter primarily due to lower volumes and
prices in core steel products. Operating income decreased 44% to
$47 million primarily due to lower steel and copper spreads. On a
quarter sequential basis, operating income improved by $21 million,
as expected. OTHER ITEMS - Revenue in Corporate and Other,
consisting primarily of Infrastructure Services, was $341 million
in the quarter compared to $319 million in 2006. Operating income
for these businesses was $24 million compared to $19 million in the
third quarter of 2006. Beginning in the fourth quarter,
Infrastructure Services will be reported as a discontinued
operation as Tyco explores exiting this business. - Corporate
expense was $3.1 billion in the quarter. Special items in the
quarter consisted primarily of the settlement of the securities
class action litigation. Before special items, corporate expense
totaled $161 million compared to $183 million in the third quarter
of 2006. - Cash from operating activities was $125 million in the
quarter. The company had negative free cash flow of $137 million
and this included $340 million in payments for legacy tax items,
separation and restructuring. - Charges related to Tyco's
previously announced restructuring program totaled $45 million in
the third quarter and $158 million year to date. OUTLOOK For the
fourth quarter of 2007, Tyco expects to achieve revenue growth of 6
to 7% (organic revenue growth of approximately 4%) and an operating
margin before special items of 9.0 to 9.5%. The revenue and
operating margin outlook excludes Infrastructure Services that will
be reported as a discontinued operation in the fourth quarter.
Please see the disclosures at the end of this press release for
additional information. ABOUT TYCO INTERNATIONAL Tyco International
Ltd. (NYSE:TYC) is a diversified, global company that provides
vital products and services to customers in more than 60 countries.
Tyco is a leading provider of security products and services, fire
protection and detection products and services, valves and
controls, and other industrial products. Tyco completed the
spin-off of its healthcare and electronics businesses on June 29,
2007 and today has annual revenues of more than $18 billion and
115,000 employees. More information on Tyco can be found at
http://www.tyco.com/. CONFERENCE CALL AND WEBCAST The company will
hold a conference call for investors today beginning at 8:30 a.m.
ET. The call can be accessed in three ways: - At Tyco's website:
http://investors.tyco.com/. - By telephone: For both "listen-only"
participants and those participants who wish to take part in the
question-and-answer portion of the call, the telephone dial-in
number in the United States is (800) 288-8960. The telephone
dial-in number for participants outside the United States is (612)
288-0337. - An audio replay of the conference call will be
available beginning at 12:00 p.m. on August 7, 2007 and ending at
11:59 p.m. on August 15, 2007. The dial-in number for participants
in the United States is (800) 475-6701. For participants outside
the United States, the replay dial-in number is (320) 365-3844. The
replay access code for all callers is 880300. NON-GAAP MEASURES
"Organic revenue growth," "free cash flow" (FCF), "operating income
before special items," "net income before special items," "earnings
per share (EPS) from continuing operations" and "operating margin
before special items" are non-GAAP measures and should not be
considered replacements for GAAP results. Organic revenue growth is
a useful measure used by the company to measure the underlying
results and trends in the business. The difference between reported
net revenue growth (the most comparable GAAP measure) and organic
revenue growth (the non-GAAP measure) consists of the impact from
foreign currency, acquisitions and divestitures, and other changes
that do not reflect the underlying results and trends (for example,
revenue reclassifications and changes to the fiscal year). Organic
revenue growth is a useful measure of the company's performance
because it excludes items that: i) are not completely under
management's control, such as the impact of foreign currency
exchange; or ii) do not reflect the underlying growth of the
company, such as acquisition and divestiture activity. It is also a
component of the company's compensation programs. The limitation of
this measure is that it excludes items that have an impact on the
company's revenue. This limitation is best addressed by using
organic revenue growth in combination with the GAAP numbers. See
the accompanying tables to this press release for the
reconciliation presenting the components of organic revenue growth.
FCF is a useful measure of the company's cash which is free from
any significant existing obligation. The difference between cash
flows from operating activities (the most comparable GAAP measure)
and FCF (the non-GAAP measure) consists mainly of significant cash
outflows that the company believes are useful to identify. FCF
permits management and investors to gain insight into the number
that management employs to measure cash that is free from any
significant existing obligation. It is also a significant component
in the company's incentive compensation plans. The difference
reflects the impact from: - the sale of accounts receivable
programs, - net capital expenditures, - acquisition of customer
accounts (ADT dealer program), - cash paid for purchase accounting
and holdback liabilities, and - voluntary pension contributions.
The impact from the sale of accounts receivable programs and
voluntary pension contributions is added or subtracted from the
GAAP measure because this activity is driven by economic financing
decisions rather than operating activity. Capital expenditures and
the ADT dealer program are subtracted because they represent
long-term commitments. Cash paid for purchase accounting and
holdback liabilities is subtracted from Cash Flow from Operating
Activities because these cash outflows are not available for
general corporate uses. The limitation associated with using FCF is
that it subtracts cash items that are ultimately within
management's and the Board of Directors' discretion to direct and
that therefore may imply that there is less or more cash that is
available for the company's programs than the most comparable GAAP
measure. This limitation is best addressed by using FCF in
combination with the GAAP cash flow numbers. FCF as presented
herein may not be comparable to similarly titled measures reported
by other companies. The measure should be used in conjunction with
other GAAP financial measures. Investors are urged to read the
company's financial statements as filed with the Securities and
Exchange Commission, as well as the accompanying tables to this
press release that show all the elements of the GAAP measures of
Cash Flows from Operating Activities, Cash Flows from Investing
Activities, Cash Flows from Financing Activities and a
reconciliation of the company's total cash and cash equivalents for
the period. See the accompanying tables to this press release for a
cash flow statement presented in accordance with GAAP and a
reconciliation presenting the components of FCF. The company has
presented and forecast its operating income, net income, EPS and
operating margin before special items. Special Items include
charges and gains related to divestitures, acquisitions,
restructurings (including transaction costs related to the
separations of Tyco Electronics and Tyco Healthcare into separate
public companies), and other income or charges that may mask the
underlying operating results and/or business trends of the company
or business segment, as applicable. The company utilizes operating
income, net income, EPS and operating margin before special items
to assess overall operating performance, segment level core
operating performance and to provide insight to management in
evaluating overall and segment operating plan execution and
underlying market conditions. They are also significant components
in the company's incentive compensation plans. Operating income,
net income, EPS and operating margin before special items are
useful measures for investors because they permit more meaningful
comparisons of the company's underlying operating results and
business trends between periods. Net income and EPS before special
items do not reflect any additional adjustments that are not
reflected in operating income before special items. The difference
between operating income and operating margin before special items
and operating income and operating margin (the most comparable GAAP
measures) consists of the impact of charges and gains related to
divestitures, acquisitions, restructurings (including transaction
costs related to the separations of Tyco Electronics and Tyco
Healthcare into separate public companies), and other income or
charges that may mask the underlying operating results and/or
business trends. The limitation of these measures is that they
exclude the impact (which may be material) of items that increase
or decrease the company's reported operating income, net income,
EPS and operating margin. This limitation is best addressed by
using operating income and operating margin before special items in
combination with the most comparable GAAP measures in order to
better understand the amounts, character and impact of any increase
or decrease on reported results. The company presents its operating
income, net income, EPS and operating margin forecast before
special items to give investors a perspective on the underlying
business results. Because the company often cannot predict the
amount and timing of unusual or special items and associated
charges or gains that may be recorded in the company's financial
statements, it does not present forecasts that include the impact
of those items. See the accompanying tables to this press release
for the reconciliation presenting the components of operating
income before special items. FORWARD-LOOKING STATEMENTS This
release may contain certain "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995. These statements are based on management's current
expectations and are subject to risks, uncertainty and changes in
circumstances, which may cause actual results, performance or
achievements to differ materially from anticipated results,
performance or achievements. All statements contained herein that
are not clearly historical in nature are forward-looking and the
words "anticipate," "believe," "expect," "estimate," "plan," and
similar expressions are generally intended to identify
forward-looking statements. The forward-looking statements in this
release include statements addressing the following subjects:
future financial condition and operating results. Economic,
business, competitive and/or regulatory factors affecting Tyco's
businesses are examples of factors, among others, that could cause
actual results to differ materially from those described in the
forward-looking statements. Tyco is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise. More detailed information about these
and other factors is set forth in Tyco's Annual Report on Form
10-K/A for the fiscal year ended Sept. 29, 2006 and Quarterly
Report on Form 10-Q for the quarterly period ended June 29, 2007.
TYCO INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data) (Unaudited) Quarter Ended Nine
Months Ended June 29, June 30, June 29, June 30, 2007 2006 2007
2006 (Restated) Net revenue $5,085 $4,715 $14,650 $13,661 Cost of
sales 3,410 3,229 9,856 9,205 Selling, general and administrative
expenses 1,236 1,188 3,695 3,525 Class action settlement, net 2,875
- 2,875 - Separation costs 28 19 85 32 Goodwill impairment 46 - 46
- Restructuring and asset impairment charges, net 47 7 159 14
Losses on divestitures 3 1 12 2 Operating (loss) income (2,560) 271
(2,078) 883 Interest income 32 9 64 37 Interest expense (80) (65)
(211) (214) Other expense, net (259) - (257) - (Loss) income from
continuing operations before income taxes and minority interest
(2,867) 215 (2,482) 706 Income taxes (166) (45) (212) (167)
Minority interest (2) - (3) - (Loss) income from continuing
operations (3,035) 170 (2,697) 539 (Loss) income from discontinued
operations, net of income taxes (516) 698 774 1,817 (Loss) income
before cumulative effect of accounting change (3,551) 868 (1,923)
2,356 Cumulative effect of accounting change, net of income taxes -
- - (14) Net (loss) income $(3,551) $868 $(1,923) $2,342 Basic
earnings per common share: (Loss) income from continuing operations
$(6.13) $0.34 $(5.45) $1.07 (Loss) income from discontinued
operations (1.05) 1.38 1.56 3.61 Cumulative effect of accounting
change - - - (0.03) Net (loss) income $(7.18) $1.72 $(3.89) $4.65
Diluted earnings per common share: (Loss) income from continuing
operations $(6.13) $0.33 $(5.45) $1.05 (Loss) income from
discontinued operations (1.05) 1.35 1.56 3.50 Cumulative effect of
accounting change - - - (0.03) Net (loss) income $(7.18) $1.68
$(3.89) $4.52 Weighted-average number of shares outstanding: Basic
495 506 495 504 Diluted 495 518 495 524 Income Reconciliation for
Diluted EPS: (Loss) income from continuing operations $(3,035) $170
$(2,697) $539 Add back of interest expense for convertible debt - 2
- 11 (Loss) income from continuing operations, giving effect to
dilutive adjustments (3,035) 172 (2,697) 550 (Loss) income from
discontinued operations (516) 698 774 1,817 Add back of interest
expense for convertible debt - 2 - 15 Cumulative effect of
accounting change - - - (14) Net (loss) income, giving effect to
dilutive adjustments $(3,551) $872 $(1,923) $2,368 NOTE: These
financial statements should be read in conjunction with the
Consolidated Financial Statements and accompanying notes contained
in the Company's Annual Report on Form 10-K/A for the fiscal year
ended September 29, 2006, Quarterly Report on Form 10-Q/A for the
quarterly period ended December 29, 2006 and Quarterly Report on
Form 10-Q for the quarterly period ended March 30, 2007. TYCO
INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited)
Quarter Ended June 29, June 30, 2007 2006 NET REVENUE ADT Worldwide
$1,909 $1,806 Fire Protection Services 882 826 Flow Control 982 806
Safety Products 452 432 Electrical and Metal Products 519 526
Corporate and Other(1) 341 319 Total Net Revenue $5,085 $4,715
OPERATING (LOSS) INCOME AND MARGIN ADT Worldwide $205 10.7% $242
13.4% Fire Protection Services 57 6.5% 61 7.4% Flow Control 124
12.6% 87 10.8% Safety Products 73 16.2% (20) -4.6% Electrical and
Metal Products 47 9.1% 84 16.0% Corporate and Other(2) (3,066) N/M
(183) N/M Operating (Loss) Income and Margin $(2,560) -50.3% $271
5.7% Nine Months Ended June 29, June 30, 2007 2006 NET REVENUE ADT
Worldwide $5,659 $5,333 Fire Protection Services 2,562 2,386 Flow
Control 2,695 2,264 Safety Products 1,308 1,242 Electrical and
Metal Products 1,441 1,428 Corporate and Other(1) 985 1,008 Total
Net Revenue $14,650 $13,661 OPERATING (LOSS) INCOME AND MARGIN ADT
Worldwide $601 10.6% $658 12.3% Fire Protection Services 171 6.7%
145 6.1% Flow Control 334 12.4% 245 10.8% Safety Products 217 16.6%
122 9.8% Electrical and Metal Products 114 7.9% 237 16.6% Corporate
and Other(2) (3,515) N/M (524) N/M Operating (Loss) Income and
Margin $(2,078) -14.2% $883 6.5% (1) Revenue related primarily to
Infrastructure Services. (2) Includes operating income of $24
million and $19 million for the quarter ended June 29, 2007 and
June 30, 2006, respectively, primarily related to Infrastructure
Services. Includes operating income of $68 million and $63 million
for the nine months ended June 29, 2007 and June 30, 2006,
respectively, primarily related to Infrastructure Services. TYCO
INTERNATIONAL LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (in
millions) (Unaudited) June 29, March 30, September 29, 2007 2007
2006 Current Assets: Cash and cash equivalents $1,310 $3,196 $2,193
Accounts receivable, net 3,320 3,159 2,983 Inventories 1,927 1,928
1,627 Class action settlement escrow 2,972 - - Other current assets
1,836 1,727 1,836 Assets of discontinued operations - 33,825 33,493
Total current assets 11,365 43,835 42,132 Property, plant and
equipment, net 3,531 3,491 3,549 Goodwill 11,502 11,452 11,293
Intangible assets, net 2,668 2,659 2,730 Other assets 3,095 3,034
3,307 Total Assets $32,161 $64,471 $63,011 Current Liabilities:
Short-term debt and current maturities of long-term debt $384
$1,708 $773 Accounts payable 1,635 1,652 1,666 Class action
settlement liability 2,972 - - Accrued and other current
liabilities 3,588 3,691 3,664 Liabilities of discontinued
operations - 7,402 7,643 Total current liabilities 8,579 14,453
13,746 Long-term debt 4,101 8,260 8,877 Other liabilities 4,107
4,862 4,947 Total Liabilities 16,787 27,575 27,570 Minority
interest 37 35 54 Shareholders' equity 15,337 36,861 35,387 Total
Liabilities and Shareholders' Equity $32,161 $64,471 $63,011 NOTE:
These financial statements should be read in conjunction with the
Consolidated Financial Statements and accompanying notes contained
in the Company's Annual Report on Form 10-K/A for the fiscal year
ended September 29, 2006, Quarterly Report on Form 10-Q/A for the
quarterly period ended December 29, 2006 and Quarterly Report on
Form 10-Q for the quarterly period ended March 30, 2007. TYCO
INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in
millions) (Unaudited) Quarter Ended Nine Months Ended June 29, June
30, June 29, June 30, 2007 2006 2007 2006 (Restated) Cash Flows
from Operating Activities: Net (loss) income $(3,551) $868 $(1,923)
$2,342 Loss (income) from discontinued operations 516 (698) (774)
(1,817) Cumulative effect of accounting change - - - 14 (Loss)
income from continuing operations (3,035) 170 (2,697) 539
Adjustments to reconcile net cash provided by operating activities:
Depreciation and amortization 280 298 879 897 Non-cash compensation
expense 40 35 124 116 Deferred income taxes 56 (16) (33) (92)
Provision for losses on accounts receivable and inventory 21 12 63
34 Loss on the retirement of debt 259 - 259 1 Goodwill impairment
46 - 46 - Non-cash restructuring, asset impairment and divestiture
charges, net 10 1 29 5 Other non-cash items 28 4 18 11 Changes in
assets and liabilities, net of the effects of acquisitions and
divestitures: Accounts receivable, net (138) (37) (264) (118)
Inventories 13 (74) (271) (168) Accounts payable (41) 42 (88) (16)
Accrued and other liabilities (130) 166 (178) (205) Income taxes,
net (251) 24 (278) 9 Class action settlement liability 2,972 -
2,972 - Other (5) 42 278 (13) Net cash provided by operating
activities 125 667 859 1,000 Net cash provided by discontinued
operating activities 769 843 2,442 2,162 Cash Flows from Investing
Activities: Capital expenditures (174) (141) (480) (403) Proceeds
from disposal of assets 2 8 15 16 Acquisition of businesses, net of
cash acquired (10) (2) (26) (2) Acquisition of customer accounts
(ADT dealer program) (97) (97) (273) (266) Purchase accounting and
holdback liabilities (1) (2) (5) (6) Divestiture of businesses, net
of cash retained 9 (22) 85 871 Liquidation of rabbi trust
investments - - 271 - (Increase) decrease in investments (3) (13)
13 56 Decrease in restricted cash - 15 6 20 Class action settlement
escrow (2,960) - (2,960) - Other - 2 23 5 Net cash (used in)
provided by investing activities (3,234) (252) (3,331) 291 Net cash
used in discontinued investing activities (294) (288) (868) (890)
Cash Flows from Financing Activities: Net repayments of debt
(6,118) (10) (5,925) (1,079) Proceeds from exercise of share
options 176 75 388 204 Dividends paid (396) (203) (791) (605)
Repurchase of common shares by subsidiary - (1,107) (668) (1,918)
Transfers from discontinued operations 7,535 480 8,525 887 Other 8
1 21 (7) Net cash provided by (used in) financing activities 1,205
(764) 1,550 (2,518) Net cash provided by (used in) discontinued
financing activities 92 (490) (892) (1,142) Effect of currency
translation on cash 18 8 39 10 Effect of currency translation on
cash of discontinued operations 14 3 33 7 Net decrease in cash and
cash equivalents (1,305) (273) (168) (1,080) Less: net increase in
cash related to discontinued operations (581) (68) (715) (137) Cash
and cash equivalents at beginning of period 3,196 1,903 2,193 2,779
Cash and cash equivalents at end of period $1,310 $1,562 $1,310
$1,562 Reconciliation to "Free Cash Flow": Net cash provided by
operating activities $125 $667 $859 $1,000 Decrease in sale of
accounts receivable 3 1 6 7 Capital expenditures, net (172) (133)
(465) (387) Acquisition of customer accounts (ADT dealer program)
(97) (97) (273) (266) Purchase accounting and holdback liabilities
(1) (2) (5) (6) Voluntary pension contributions 5 - 23 - Free Cash
Flow $(137) $436 $145 $348 NOTE: Free cash flow is a non-GAAP
measure. See description of non- GAAP measures contained in this
release. TYCO INTERNATIONAL LTD. ORGANIC REVENUE GROWTH
RECONCILIATION (in millions) (Unaudited) Quarter Ended June 29,
2007 Foreign Acquisition / Net Revenue Currency Divestiture ADT
Worldwide $1,909 5.7% $50 2.8% $(10) -0.6% Fire Protection Services
882 6.8% 25 3.0% (2) -0.3% Flow Control 982 21.8% 54 6.7% (4) -0.5%
Safety Products 452 4.6% 11 2.5% 1 0.4% Electrical and Metal
Products 519 -1.3% 6 1.1% - 0.1% Corporate and Other 341 6.9% 10
3.1% (3) -0.9% Total Net Revenue $5,085 7.8% $156 3.3% $(18) -0.5%
Quarter Ended June 29, 2007 Net Revenue for the Quarter Organic
Ended Revenue June 30, Other Growth 2006 ADT Worldwide $(10) -0.6%
$73 4.1% $1,806 Fire Protection Services - 0.0% 33 4.1% 826 Flow
Control - 0.0% 126 15.6% 806 Safety Products - 0.0% 8 1.7% 432
Electrical and Metal Products - 0.0% (13) -2.5% 526 Corporate and
Other - 0.0% 15 4.7% 319 Total Net Revenue $(10) -0.2% $242 5.2%
$4,715 Nine Months Ended June 29, 2007 Foreign Acquisition / Net
Revenue Currency Divestiture ADT Worldwide $5,659 6.1% $150 2.8%
$(6) -0.1% Fire Protection Services 2,562 7.4% 67 2.8% (25) -1.1%
Flow Control 2,695 19.0% 133 5.9% (4) -0.3% Safety Products 1,308
5.3% 33 2.7% 2 0.1% Electrical and Metal Products 1,441 0.9% 12
0.8% 2 0.2% Corporate and Other 985 -2.3% 26 2.6% (3) -0.3% Total
Net Revenue $14,650 7.2% $421 3.1% $(34) -0.3% Nine Months Ended
June 29, 2007 Net Revenue for the Nine Months Organic Ended Revenue
June 30, Other Growth 2006 ADT Worldwide $(10) -0.2% $192 3.6%
$5,333 Fire Protection Services - 0.0% 134 5.7% 2,386 Flow Control
- 0.0% 302 13.4% 2,264 Safety Products - 0.0% 31 2.5% 1,242
Electrical and Metal Products - 0.0% (1) -0.1% 1,428 Corporate and
Other - 0.0% (46) -4.6% 1,008 Total Net Revenue $(10) -0.1% $612
4.5% $13,661 NOTE: Organic revenue growth is a non-GAAP measure.
See description of non-GAAP measures contained in this release.
TYCO INTERNATIONAL LTD. DEBT RECONCILIATION (in millions)
(Unaudited) Quarter Ended Nine Months Ended June 29, 2007 June 29,
2007 Total debt at beginning of period $9,968 $9,650 Net debt
repayments (6,119) (5,926) Currency translation 17 119 Other 619
642 Total debt at end of period $4,485 $4,485 TYCO INTERNATIONAL
LTD. EARNINGS PER SHARE SUMMARY (Unaudited) Nine Months Quarter
Ended Ended Jun. 30, 2006 Jun. 29, 2007 Jun. 29, 2007 Diluted EPS
from Continuing Operations $0.33 ($6.13) ($5.45) Class action
settlement, net 5.83 5.83 Separation costs 0.04 0.69 0.85 Losses on
divestitures 0.00 0.00 0.02 Restructuring and asset impairment
charges, net 0.07 0.23 Voluntary Replacement Program 0.12 Goodwill
impairment 0.09 0.09 Tax items (0.12) Diluted EPS from Continuing
Operations Before Special Items $0.49 $0.55 $1.45 TYCO
INTERNATIONAL LTD. For the Quarter Ended June 29, 2007 (in
millions, except per share data) Fire ADT Protection Flow Worldwide
Services Control Operating Income $205 $57 $124 Restructuring
charges in cost of sales 1 1 Class action settlement, net
Separation costs Losses on divestitures 1 Restructuring and asset
impairment charges, net 11 11 1 Goodwill impairment 46 Operating
Income Before Special Items $262 $70 $126 TYCO INTERNATIONAL LTD.
For the Quarter Ended June 29, 2007 (in millions, except per share
data) Electrical Safety & Metal Corporate Products Products and
Other Operating Income $73 $47 ($3,066) Restructuring charges in
cost of sales Class action settlement, net 2,884 Separation costs
28 Losses on divestitures 2 Restructuring and asset impairment
charges, net 8 16 Goodwill impairment Operating Income Before
Special Items $81 $47 ($136) TYCO INTERNATIONAL LTD. For the
Quarter Ended June 29, 2007 (in millions, except per share data)
Interest Operating Expense, Other Income net Expense, net Operating
Income ($2,560) ($48) ($259) Restructuring charges in cost of sales
2 Class action settlement, net 2,884 Separation costs 28 259 Losses
on divestitures 3 Restructuring and asset impairment charges, net
47 Goodwill impairment 46 Operating Income Before Special Items
$450 ($48) $0 TYCO INTERNATIONAL LTD. For the Quarter Ended June
29, 2007 (in millions, except per share data) Income Minority Taxes
Interest Operating Income ($166) ($2) Restructuring charges in cost
of sales Class action settlement, net Separation costs 56 Losses on
divestitures (1) Restructuring and asset impairment charges, net
(12) Goodwill impairment Operating Income Before Special Items
($123) ($2) TYCO INTERNATIONAL LTD. For the Quarter Ended June 29,
2007 (in millions, except per share data) Income from Diluted EPS
from Continuing Continuing Operations Operations Operating Income
($3,035) ($6.13) Restructuring charges in cost of sales 2 0.00
Class action settlement, net 2,884 5.83 Separation costs 343 0.69
Losses on divestitures 2 0.00 Restructuring and asset impairment
charges, net 35 0.07 Goodwill impairment 46 0.09 Operating Income
Before Special Items $277 $0.55 Diluted Shares Outstanding 495
Diluted Shares Outstanding - Before Charges 499 DATASOURCE: Tyco
International Ltd. CONTACT: Media, Paul Fitzhenry, +1-609-720-4621,
or Investor Relations, Ed Arditte, +1-609-720-4621, or Karen Chin,
+1-609-720-4398, all for Tyco International Web site:
http://www.tyco.com/ http://investors.tyco.com/
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