filings.toolsItem 6. SELECTED FINANCIAL DATA
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Item 6. SELECTED FINANCIAL DATA
Set forth below is our selected consolidated financial data as of the dates and for the periods indicated. The selected consolidated financial data as of December 31, 2020 and 2019 and for the fiscal years ended December 31, 2020, 2019 and 2018 have been derived from our audited consolidated financial statements and related notes to our audited consolidated financial statements included elsewhere in this Form 10-K. The selected consolidated financial data as of December 31, 2018, 2017 and 2016, and for the fiscal years ended December 31, 2017 and 2016, have been derived from our audited consolidated financial statements and related notes to our audited consolidated financial statements not included in this Form 10-K.
The selected historical consolidated financial data set forth below should be read in conjunction with, and are qualified by reference to, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our audited consolidated financial statements and related notes to our audited consolidated financial statements included elsewhere in this Form 10-K.
| (in millions, except per share amounts) | For the Years Ended December 31, | ||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
| Consolidated Statements of Operations: | |||||||||||||||||||||||||||||
| Revenues | $ | 4,910.2 | $ | 2,451.9 | $ | 2,689.8 | $ | 2,375.4 | $ | 1,939.4 | |||||||||||||||||||
| Cost of sales | 3,296.8 | 1,540.2 | 1,677.3 | 1,477.5 | 1,222.7 | ||||||||||||||||||||||||
| Gross profit | 1,613.4 | 911.7 | 1,012.5 | 897.9 | 716.7 | ||||||||||||||||||||||||
| Selling and administrative expenses | 894.8 | 436.4 | 434.6 | 446.2 | 415.1 | ||||||||||||||||||||||||
| Amortization of intangible assets | 395.8 | 124.3 | 125.8 | 118.9 | 124.2 | ||||||||||||||||||||||||
| Impairment of goodwill | — | — | — | — | — | ||||||||||||||||||||||||
| Impairment of other intangible assets | 19.9 | — | — | 1.6 | 25.3 | ||||||||||||||||||||||||
| Other operating expense, net | 217.2 | 75.7 | 9.1 | 222.1 | 48.6 | ||||||||||||||||||||||||
| Operating income (loss) | 85.7 | 275.3 | 443.0 | 109.1 | 103.5 | ||||||||||||||||||||||||
| Interest expense | 111.1 | 88.9 | 99.6 | 140.7 | 170.3 | ||||||||||||||||||||||||
| Loss on extinguishment of debt | 2.0 | 0.2 | 1.1 | 84.5 | — | ||||||||||||||||||||||||
| Other income, net | (8.0) | (4.7) | (7.2) | (3.4) | (3.6) | ||||||||||||||||||||||||
| Income (loss) before income taxes | (19.4) | 190.9 | 349.5 | (112.7) | (63.2) | ||||||||||||||||||||||||
| Provision (benefit) for income taxes | 13.0 | 31.8 | 80.1 | (131.2) | (31.9) | ||||||||||||||||||||||||
| Net income (loss) | (32.4) | 159.1 | 269.4 | 18.5 | (31.3) | ||||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | 0.9 | — | — | 0.1 | 5.3 | ||||||||||||||||||||||||
| Net income (loss) attributable to Ingersoll Rand Inc. | $ | (33.3) | $ | 159.1 | $ | 269.4 | $ | 18.4 | $ | (36.6) | |||||||||||||||||||
| Earnings (loss) per share, basic | $ | (0.09) | $ | 0.78 | $ | 1.34 | $ | 0.1 | $ | (0.25) | |||||||||||||||||||
| Earnings (loss) per share, diluted | $ | (0.09) | $ | 0.76 | $ | 1.29 | $ | 0.1 | $ | (0.25) | |||||||||||||||||||
| Weighted average shares, basic | 382.8 | 203.5 | 201.6 | 182.2 | 149.2 | ||||||||||||||||||||||||
| Weighted average shares, diluted | 382.8 | 208.9 | 209.1 | 188.4 | 149.2 | ||||||||||||||||||||||||
| Statement of Cash Flow Data: | |||||||||||||||||||||||||||||
| Cash flows - operating activities | $ | 914.3 | $ | 343.3 | $ | 444.5 | $ | 200.5 | $ | 165.6 | |||||||||||||||||||
| Cash flows - investing activities | (37.9) | (54.3) | (235.0) | (60.8) | (82.1) | ||||||||||||||||||||||||
| Cash flows - financing activities | 328.7 | (11.5) | (373.0) | (17.4) | (43.0) | ||||||||||||||||||||||||
| Balance Sheet Data (at period end): | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,750.9 | $ | 505.5 | $ | 221.2 | $ | 393.3 | $ | 255.8 | |||||||||||||||||||
| Total assets | 16,058.6 | 4,628.4 | 4,487.1 | 4,621.2 | 4,316.0 | ||||||||||||||||||||||||
| Total liabilities | 6,869.1 | 2,758.5 | 2,811.1 | 3,144.4 | 4,044.2 | ||||||||||||||||||||||||
| Total stockholders’ equity | 9,189.5 | 1,869.9 | 1,676.0 | 1,476.8 | 271.8 | ||||||||||||||||||||||||
| Other Financial Data (unaudited): | |||||||||||||||||||||||||||||
| Adjusted EBITDA(1) | $ | 1,017.6 | $ | 561.7 | $ | 683.4 | $ | 561.5 | $ | 400.7 | |||||||||||||||||||
| Adjusted net income(1) | 599.0 | 329.3 | 396.3 | 249.3 | 133.6 | ||||||||||||||||||||||||
| Capital expenditures | 48.7 | 43.2 | 52.2 | 56.8 | 74.4 | ||||||||||||||||||||||||
| Free cash flow(1) | 865.6 | 300.1 | 392.3 | 143.7 | 91.2 |
(1)We report our financial results in accordance with GAAP. To supplement this information, we also use the following measures in this Form 10-K: “Adjusted EBITDA,” “Adjusted Net Income” and “Free Cash Flow.” Management believes that Adjusted EBITDA and Adjusted Net Income are helpful supplemental measures to assist us and investors in evaluating our operating results as they exclude certain items whose fluctuation from period to period do not necessarily correspond to changes in the operations of our business. Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation and amortization, as further adjusted to exclude certain non-cash, non-recurring and other adjustment items. We believe that the adjustments applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about non-recurring items that we do not expect to continue at the same level in the future. Adjusted Net Income is defined as net income (loss) including interest, depreciation and amortization of non-acquisition related intangible assets and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions.
We use Free Cash Flow to review the liquidity of our operations. We measure Free Cash Flow as cash flows from operating activities less capital expenditures. We believe Free Cash Flow is a useful supplemental financial measure for us and investors in assessing our ability to pursue business opportunities and investments and to service our debt. Free Cash Flow is not a measure of our liquidity under GAAP and should not be considered as an alternative to cash flows from operating activities.
As a result, we and our board of directors regularly use these measures as tools in evaluating our operating and financial performance and in establishing discretionary annual compensation. Such measures are provided in addition to, and should not be considered to be a substitute for, or superior to, the comparable measure under GAAP. In addition, we believe that Adjusted EBITDA, Adjusted Net Income and Free Cash Flow are frequently used by investors, analysts and other interested parties in the evaluation of issuers, many of which also present Adjusted EBITDA, Adjusted Net Income and Free Cash Flow when reporting their results in an effort to facilitate an understanding of their operating and financial results and liquidity.
Adjusted EBITDA, Adjusted Net Income and Free Cash Flow should not be considered as alternatives to net income (loss) or other performance measures calculated in accordance with GAAP, or as alternatives to cash flow from operating activities as a measure of our liquidity. Adjusted EBITDA, Adjusted Net Income and Free Cash Flow have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing our results as reported under GAAP.
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