|(In millions, except per share information)||Third Quarter Ended|
|October 2,2016||September 27,2015||% Change|
|Net income (loss)||$||21.9||$||(25.7||)||185||%|
|Diluted earnings (loss) per share||$||0.63||$||(0.73||)||186||%|
|Special items (1)||0.08||1.40|
|Adjusted earnings per share (1)||$||0.71||$||0.67||6||%|
Watts Water Technologies, Inc. (NYSE: WTS) today announced third quarter 2016 results. Sales of $341.1 million decreased 7% compared to the same period in 2015. Third quarter GAAP EPS was $0.63 as compared to ($0.73) for the same period last year. The significant increase in GAAP EPS was primarily due to the 2015 settlement of the Company's pension plan and other benefit obligations. Adjusted EPS was $0.71, up 6%, as compared to $0.67 for the same period last year. Remarking on operating results, Chief Executive Officer, Robert J. Pagano Jr., said, "We delivered another strong quarter of EPS growth and operating margin expansion despite some top-line headwinds. Margins continued to benefit from our transformation and productivity initiatives. We had a strong quarter in cash flow generation, and we expect that trend to continue through the fourth quarter." Commenting on the acquisition of PVI Industries, LLC, Mr. Pagano noted, "We are excited about adding PVI to our portfolio. PVI is a market leader in high capacity commercial water heaters and complements AERCO's position in high efficiency boilers. Like AERCO, PVI is focused on differentiated product design for project specific customer applications." Summarized third quarter results:
(1) Special items and adjusted earnings per share represent non-GAAP financial measures. For a reconciliation of GAAP to non-GAAP items please see the tables attached to this press release.