Page 1

ALLEGION PIONEERING SAFETY " Allegion Reports First - Quarter 2021 Financial Results , Raises Full - Year 2021 Outlook • First - quarter 2021 net earnings per share ( EPS ) of $ 1.18 , compared with 2020 EPS of $ 0.00 ; First - quarter 2021 adjusted EPS of $ 1.20 , up 15.4 percent compared with 2020 adjusted EPS of $ 1.04 First - quarter 2021 revenues of $ 694.3 million , up 2.9 percent compared to 2020 and up 0.5 percent on an organic basis • First - quarter 2021 operating margin of 18.9 percent , compared with 2020 operating margin of 4.3 percent ; Adjusted operating margin of 19.3 percent , up 30 basis points compared with 2020 adjusted operating margin of 19 percent • Raising outlook for 2021 full - year revenue growth to a range of 3 to 4 percent on a reported basis and 2 to 3 percent organically • Raising full - year 2021 EPS outlook to a range of $ 4.85 to $ 5.05 and adjusted EPS outlook to a range of $ 5.00 to $ 5.15 DUBLIN -- ( BUSINESS WIRE ) -- Allegion plc ( NYSE : ALLE ) , a leading global provider of security products and solutions , today reported first - quarter 2021 net revenues of $ 694.3 million and net earnings of $ 108 million , or $ 1.18 per share . Excluding charges related to restructuring , adjusted net earnings were $ 109.6 million , or $ 1.20 per share , up 15.4 percent when compared with first - quarter 2020 adjusted EPS of $ 1.04 . Reported net earnings for first - quarter 2020 includes $ 1.01 per share for non - cash charges related to goodwill and intangible asset impairments related to our non - U.S . operations . First - quarter 2021 net revenues increased 2.9 percent when compared to the prior - year period ( up 0.5 percent on an organic basis ) . The organic revenue increase was driven by strength in the Americas residential and Allegion International businesses , offsetting continued softness in the Americas non - residential end markets . Reported revenues also reflect benefits from foreign currency that more than offset the impact of divestitures . The Allegion Americas segment revenues decreased 2.6 percent ( down 2.9 percent on an organic basis ) . The non - residential business was down , as expected , low - double digits percent and was partially offset by the residential business , which experienced low - twenties percent growth . The Allegion International segment revenues increased 20.2 percent ( up 11 percent on an organic basis ) , reflecting strong growth across all its major geographies and businesses . The organic growth was driven by continued recovery in end markets and includes the impact of lapping last year's COVID- related shutdowns . First - quarter 2021 operating income was $ 131.3 million , an increase of $ 102.4 million or 354.3 percent compared to 2020. First - quarter 2020 operating income includes $ 96.3 million in charges from goodwill and intangible asset impairments . Adjusted operating income in first - quarter 2021 was $ 134 million , an increase of $ 5.8 million or 4.5 percent compared to 2020 . First - quarter 2021 operating margin was 18.9 percent , compared with 4.3 percent in 2020. The adjusted operating margin in first - quarter 2021 was 19.3 percent , compared with 19 percent in 2020. The 30 - basis - point increase in adjusted operating margin is attributable to volume leverage , cost control measures and continued benefits of restructuring actions in the Allegion International segment that offset non - residential weakness experienced in the Americas region . " Allegion is off to a great start in 2021. We delivered solid top - line growth and margin expansion against a tough comparable from the first quarter of last year , " said David D. Petratis , Allegion chairman , president and CEO . " The Allegion International business has continued to rebound and meet increased demand , while the Americas residential business remained strong . I am also pleased with the margin expansion delivered as cost reduction and mitigation actions taken last year continue to provide benefits . " Additional Items Interest expense for first - quarter 2021 was $ 12.3 million , down from $ 12.9 million for first - quarter 2020 . Other income net for first - quarter 2021 was $ 3.5 million , compared to other expense net of $ 4 million in the same period of 2020. The year - over - year favorability was primarily due to unrealized investment gains in first - quarter 2021 compared to unrealized investment losses in 2020 . The company's effective tax rate for first - quarter 2021 was 11.7 percent , compared with 95.8 percent in 2020. The higher effective tax rate in 2020 was driven by the unfavorable tax impact related to the goodwill and intangible asset impairment charges . The company's adjusted effective tax rate for first - quarter 2021 was 12.3 percent , compared with 12.4 percent in 2020 . Cash Flow and Liquidity Year - to - date available cash flow for 2021 was $ 105.5 million , an increase of $ 86.5 million versus the prior year . The year - over - year increase in available cash flow is due to improvements in net working capital , higher net earnings and lower capital expenditures . The company ended first - quarter 2021 with cash and