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EX - 99.1 2 exhibit991vrt - july282021.htm EX - 99.1 News Release VERTIVM Vertiv Reports 25 % Net Sales Growth and Record Backlog in Second Quarter ; Raises Full Year Guidance for 2021 Diluted earnings per share of $ 0.03 increased $ 0.20 and adjusted diluted earnings per share of $ 0.31 ( ¹ ) increased $ 0.15 from last year's second quarter . Customer demand remains robust with net sales growth of 25 % and organic net sales growth of 20 % from last year's second quarter , with double - digit sales growth in all regions . Record backlog of $ 2.3 billion at the end of June . Order growth of 24 % compared to prior year's second quarter . Second quarter operating profit of $ 102 million increased $ 32 million , or 45 % , and adjusted operating profit of $ 134 million increased $ 31 million , or 30 % , from last year's second quarter . Adjusted operating margin of 10.6 % , up 40 basis points . Strong June month - ending liquidity of $ 1.1 billion . Year - to - date net operating cash flow of $ 120 million increased $ 242 million , and year - to - date free cash flow of $ 84 million increased $ 225 million from the prior year first half . Increasing full year guidance for sales , adjusted operating profit and adjusted diluted earnings per share . COLUMBUS , Ohio [ July 28 , 2021 ] - Vertiv Holdings Co ( NYSE : VRT ) , a global provider of critical digital infrastructure and continuity solutions , today reported strong financial results for its second quarter ended June 30 , 2021 . Net sales were $ 1,260 million , an increase of $ 255 million , or 25.3 % , from last year's second quarter and a 20.4 % organic sales increase excluding the impact of foreign currency . EMEA net sales increased 50.1 % ( 41.5 % organic ) with recovery continuing from 2020 with strength in colocation data centers . APAC net sales increased 23.3 % ( 15.2 % organic ) , positively impacted by strong sales recovery from COVID - 19 impacts in telecom , IT channel and services businesses . Americas net sales increased 16.5 % ( 15.2 % organic ) , led by growth in critical infrastructure and solutions . Orders in the second quarter were up 24.4 % compared with the prior year quarter , led by growth in integrated rack solutions . Vertiv's backlog continued to grow , reaching another record level of $ 2.3 billion at the end of June , an increase of approximately $ 525 million from the prior year quarter - end , and up approximately $ 430 million versus year - end 2020 . Second quarter operating profit of $ 102 million increased $ 32 million , and adjusted operating profit of $ 134 million increased $ 31 million from the prior year quarter . Higher adjusted operating profit was driven by an $ 80 million benefit from the profit flowthrough from higher organic volume offset primarily by an approximate $ 25 million headwind from net material and freight inflation and $ 20 million higher fixed costs in part due to discrete COVID - 19 cost actions taken in last year's second quarter . The $ 25 million of net material and freight inflation includes an approximate $ 10 million offset for year - over - year pricing . We expect pricing to ramp - up as we progress through 2021 and to completely offset gross material and freight inflation within the fourth quarter . Diluted earnings per share of $ 0.03 increased $ 0.20 , and adjusted diluted earnings per share of $ 0.31 increased $ 0.15 from the prior year quarter . The $ 0.15 improvement in adjusted diluted earnings per share in the second quarter included the benefit of $ 0.07 from items outside adjusted operating profit , primarily lower tax and interest expense . " Following a strong start to 2021 , we are pleased to report that through the first half of the year , Vertiv performance remains on track , " said Rob Johnson , Vertiv's Chief Executive Officer . " On a quarterly basis , our headline results continue to highlight strong order growth and related sales , and our outlook remains very positive . While inflation is a challenge facing all companies , we are navigating this with additional pricing actions and fixed - cost reductions . We decided in the second quarter to increase spot buys of key electronic components and use expedited freight to best meet the customer requirements of an incredibly strong demand environment . We feel good about market activity levels and coupled with our growth programs , pricing 1 This release contains certain non - GAAP metrics . For reconciliations to the relevant GAAP measures and an explanation of the non - GAAP measures and reasons for their use , please refer to Exhibit 99.1 . 1