- Allegion PLC (NYSE:ALLE) reported a fourth-quarter FY21 revenue decline of 2.5% year-over-year to $709.2 million, -1.4% on an organic basis, beating the consensus of $680.39 million.
- The Allegion Americas segment revenues decreased 4.2% Y/Y to $499.5 million, and the Allegion International segment revenues increased 1.7% Y/Y to $209.7 million.
- Adjusted EPS decreased to $1.11 compared to $1.49 in 4Q20, beating the consensus of $1.02.
- The gross margin contracted by 360 bps to 40.4%. The operating income decreased by 2.2% Y/Y to $115.1 million, and the margin was flat at 16.2%. Adjusted operating margin declined by 610 bps to 16.4%.
- Adjusted EBITDA was down 25.8% Y/Y to $136.3 million, and margin contracted by 604 bps to 19.2%.
- Allegion generated cash from operating activities of $488.6 million in FY21, compared to $490.3 million a year ago. Free cash flow was $443.2 million. It held cash and equivalents of $397.9 million and total debt of $1.44 billion.
- The company repurchased ~1.5 million shares for $200.1 million during the quarter. Allegion's quarterly dividend of $0.41 per share, an increase of 14% over the prior dividend, is payable March 31, 2022, to shareholders of record on March 16, 2022.
- FY22 Outlook: Allegion expects revenues to increase 6% - 7.5% on a reported basis and increase 7% - 8.5% organically.
- It expects reported EPS of $5.50 - $5.70 and Adjusted EPS of $5.55 - $5.75 (consensus $5.72).
- Additionally, Allegion announced the appointment of Michael (Mike) Wagnes as SVP and CFO, effective March 1, 2022.
- He succeeds Patrick Shannon, who announced plans to retire by September 2, 2022, and will serve as an advisor during the transition.
- The company also announced the appointment of David (Dave) Ilardi as SVP of Allegion Americas, effective March 1, 2022, succeeding Luis Orbegoso, who has stepped down to pursue other opportunities.
- Price Action: ALLE shares are trading lower by 0.04% at $118.28 on the last check Tuesday.
