Third quarter results
significantly impacted by lower
sales in Latin
America, channel destocking in all
regions
Third Quarter 2023 Highlights
- Revenue of $982 million, a
decrease of 29 percent versus Q3 2022 and down 29 percent
organically1
- Consolidated GAAP net loss of $4
million, down 103 percent versus Q3 2022
- Adjusted EBITDA of $175 million,
down 33 percent versus Q3 2022
- Consolidated GAAP loss of $0.03
per diluted share, down 103 percent versus Q3 2022
- Adjusted earnings per diluted share of $0.44, down 64 percent versus Q3 2022
Full-Year Outlook2
- Revenue of $4.48 billion to
$4.72 billion, reflecting 21 percent
decline at the midpoint versus 2022
- Adjusted EBITDA of $0.97 billion
to $1.03 billion, reflecting 29
percent decline at the midpoint versus 2022
- Lowers adjusted earnings per diluted share outlook to
$3.57 to $4.13, reflecting 48 percent decrease at the
midpoint versus 2022
- Reduces free cash flow outlook to a range of negative
$860 million to negative $640 million
PHILADELPHIA, Oct. 30,
2023 /PRNewswire/ --
FMC Corporation (NYSE: FMC) today reported third quarter 2023
revenue of $982 million, a decrease
of 29 percent versus third quarter 2022 and down 29 percent
organically. On a GAAP basis, the company reported a net loss
of $0.03 per diluted share in
the third quarter, down 103 percent versus third quarter 2022.
Adjusted earnings were $0.44 per
diluted share, a decrease of 64 percent versus third quarter
2022.
Third Quarter
Adjusted EPS versus Prior-Year Quarter
|
-79
cents
|
Adjusted
EBITDA
|
-59 cents
|
Interest
Expense
|
-15 cents
|
Depreciation &
Amortization
|
-3 cents
|
Minority
Interest
|
-2 cents
|
Taxes
|
-1 cent
|
Share Count
|
+1 cent
|
"Our results were significantly below the prior year driven by
volume headwinds from a continuation of channel destocking behavior
that began in the prior quarter. Destocking was much worse
than anticipated in Brazil.
Despite this, on-the-ground application remains steady as growers
continue to protect their crops," said Mark
Douglas, FMC president and chief executive officer. "Branded
diamides and our new products outperformed the overall portfolio,
which illustrates robustness for differentiated and higher value
products even in challenging environments."
Revenue in the quarter was driven by a 26 percent decline in
volume. Price increases in North
America, EMEA and Asia were
more than offset by price decreases in Latin America. FX impacts were neutral to
revenue. While overall sales were down 29 percent, sales of
products launched in the last five years were up 4 percent
year-over-year, with growth in all regions.
Sales in all regions declined versus the prior-year period as
partners, the distribution channel and growers continued to reduce
inventory levels. In North
America, revenue was down 34 percent year-over-year (down 34
percent organically). EMEA revenue declined 1 percent (down 4
percent organically) compared to third quarter 2022, as higher
pricing and FX tailwinds mostly offset lower volumes. Sales in
Asia declined 28 percent (down 23
percent organically) as continued destocking across the region
negatively impacted volumes. The region reported 16 percent growth
in products launched in the last five years. In Latin America, revenue was down 33 percent
(down 36 percent organically) year-over-year driven mainly by lower
volumes primarily due to severe destocking in Brazil and, to a lesser extent, drought
conditions in Argentina.
Globally, Plant Health revenue was down 20 percent (down 17
percent organically) versus prior year driven by similar, but less
severe channel destocking dynamics.
FMC
Revenue
|
Q3
2023
|
Total Revenue Change
(GAAP)
|
(29 %)
|
Less FX
Impact
|
0 %
|
Organic1
Revenue Change (Non-GAAP)
|
(29 %)
|
|
|
|
|
Third quarter adjusted EBITDA was $175
million, a decrease of 33 percent from the prior-year period
as lower sales more than offset favorable costs, mostly from
inputs. Operating expenses were slightly favorable to prior year
due to increased cost discipline.
Full-Year 2023 Outlook2
Consistent with the company's release on October 23, FMC is forecasting full-year 2023
revenue to be in the range of $4.48
billion to $4.72 billion,
reflecting a 21 percent decline at the midpoint versus 2022.
Full-year adjusted EBITDA is expected to be in the range of
$0.97 billion to $1.03 billion, representing 29 percent decline
year-over-year at the midpoint. The forecast for the 2023 adjusted
earnings range is lowered to $3.57 to
$4.13 per diluted share, representing
a year-over-year decrease of 48 percent at the midpoint. The
company is lowering full-year free cash flow guidance to a range of
negative $860 million to negative
$640 million due to the reduction in
expected second half EBITDA and the impacts to working capital from
higher inventory and lower payables.
Fourth Quarter Outlook2
Fourth quarter revenue is expected to be in the range of
$1.14 billion to $1.38 billion, a 22 percent decrease at the
midpoint compared to fourth quarter 2022. Adjusted EBITDA is
forecasted to be in the range of $246
million to $306 million,
representing a 36 percent decrease at the midpoint versus fourth
quarter 2022. FMC now expects adjusted earnings per diluted share
to be in the range of $0.89 to
$1.38 in the fourth quarter, which
represents a decline of 52 percent at the midpoint versus fourth
quarter 2022.
"The global crop protection market remains challenged with
severe destocking across the channel impacting volume growth this
year. In this environment, we are implementing a company-wide
restructuring program to right-size our cost base. At the same
time, we are continuing to invest in the development and launch of
new products, which are growing and driving market share gains,"
said Douglas.
|
Full Year 2023
Outlook2
|
Q4 2023
Outlook2
|
Revenue
|
$4.48 to $4.72
billion
|
$1.14 to $1.38
billion
|
Growth at midpoint
vs. 2022*
|
-21 %
|
-22 %
|
Adjusted
EBITDA
|
$0.97 to $1.03
billion
|
$246 to $306
million
|
Growth at midpoint
vs. 2022*
|
-29 %
|
-36 %
|
Adjusted
EPS^
|
$3.57 to
$4.13
|
$0.89 to
$1.38
|
Growth at midpoint
vs. 2022*
|
-48 %
|
-52 %
|
|
|
^Adjusted EPS
estimates assume 125.7 million diluted shares for Q4 and full
year.
|
*Percentages are
calculated using whole numbers. Minor differences may exist due to
rounding.
|
Supplemental Information
The company will post supplemental information on the web at
https://investors.fmc.com, including its webcast slides for
tomorrow's earnings call, definitions of non-GAAP terms and
reconciliations of non-GAAP figures to the most directly comparable
GAAP term.
About FMC
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food,
feed, fiber and fuel for an expanding world population
while adapting to a changing environment. FMC's innovative
crop protection solutions – including biologicals, crop nutrition,
digital and precision agriculture – enable growers, crop advisers
and turf and pest management professionals to address their
toughest challenges economically while protecting the environment.
With approximately 6,600 employees at more than 100 sites
worldwide, FMC is committed to discovering new herbicide,
insecticide and fungicide active ingredients, product formulations
and pioneering technologies that are consistently better for the
planet. Visit fmc.com to learn more and follow us
on LinkedIn®.
Statement under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995: FMC and its
representatives may from time to time make written or oral
statements that are "forward-looking" and provide other than
historical information, including statements contained in this
press release, in FMC's other filings with the SEC, and in
presentations, reports or letters to FMC stockholders.
In some cases, FMC has identified these forward-looking
statements by such words or phrases as "outlook", "will likely
result," "is confident that," "expect," "expects," "should,"
"could," "may," "will continue to," "believe," "believes,"
"anticipates," "predicts," "forecasts," "estimates," "projects,"
"potential," "intends" or similar expressions identifying
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including the negative of
those words or phrases. Such forward-looking statements are based
on our current views and assumptions regarding future events,
future business conditions and the outlook for the company based on
currently available information. The forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results to be materially different from any
results, levels of activity, performance or achievements expressed
or implied by any forward-looking statement. These statements are
qualified by reference to the risk factors included in Part I, Item
1A of our Annual Report on Form 10-K for the year ended
December 31, 2022 (the "2022 Form
10-K"), the section captioned "Forward-Looking Information" in Part
II of the 2022 Form 10-K and to similar risk factors and cautionary
statements in all other reports and forms filed with the Securities
and Exchange Commission ("SEC"). Moreover, investors are cautioned
to interpret many of these factors as being impacted as a result of
the residual adverse impacts of COVID and governmental, business,
and societal responses to COVID. We wish to caution readers
not to place undue reliance on any such forward-looking statements,
which speak only as of the date made. Forward-looking
statements are qualified in their entirety by the above cautionary
statement.
We specifically decline to undertake any obligation, and
specifically disclaims any duty, to publicly update or revise any
forward-looking statements that have been made to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events, except as may be
required by law.
This press release contains certain "non-GAAP financial
terms" which are defined on our website www.fmc.com/investors. Such
terms include adjusted EBITDA, adjusted earnings, free cash flow
and organic revenue growth. In addition, we have also provided on
our website reconciliations of non-GAAP terms to the most directly
comparable GAAP term.
- Organic revenue growth (non-GAAP) excludes the impact of
foreign currency changes.
- Although we provide forecasts for adjusted earnings per share,
adjusted EBITDA and free cash flow (non-GAAP financial measures),
we are not able to forecast the most directly comparable measures
calculated and presented in accordance with GAAP. Certain elements
of the composition of the GAAP amounts are not predictable, making
it impractical for us to forecast. Such elements include, but are
not limited to, restructuring, acquisition charges, and
discontinued operations. As a result, no GAAP outlook is
provided.
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited, in
millions, except per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$ 981.9
|
|
$
1,377.2
|
|
$
3,340.7
|
|
$
4,180.3
|
Costs of sales and
services
|
600.7
|
|
899.7
|
|
1,945.4
|
|
2,539.1
|
Gross margin
|
$ 381.2
|
|
$ 477.5
|
|
$
1,395.3
|
|
$
1,641.2
|
Selling, general and
administrative expenses
|
171.3
|
|
179.4
|
|
562.8
|
|
562.7
|
Research and
development expenses
|
80.9
|
|
78.5
|
|
247.0
|
|
229.8
|
Restructuring and other
charges (income)
|
28.2
|
|
9.0
|
|
48.0
|
|
98.9
|
Total costs and
expenses
|
$ 881.1
|
|
$
1,166.6
|
|
$
2,803.2
|
|
$
3,430.5
|
Income from continuing operations before
non-operating pension
and postretirement charges (income), interest
expense, net and
income taxes
|
$
100.8
|
|
$
210.6
|
|
$
537.5
|
|
$ 749.8
|
Non-operating pension
and postretirement charges (income)
|
4.2
|
|
(1.7)
|
|
13.4
|
|
6.5
|
Interest expense,
net
|
64.6
|
|
41.8
|
|
180.5
|
|
107.0
|
Income (loss) from continuing operations before
income taxes
|
$
32.0
|
|
$
170.5
|
|
$
343.6
|
|
$ 636.3
|
Provision (benefit) for
income taxes
|
27.4
|
|
36.0
|
|
77.7
|
|
133.0
|
Income (loss) from
continuing operations
|
$
4.6
|
|
$ 134.5
|
|
$ 265.9
|
|
$ 503.3
|
Discontinued
operations, net of income taxes
|
(8.3)
|
|
(16.2)
|
|
(41.3)
|
|
(42.2)
|
Net income
(loss)
|
$
(3.7)
|
|
$
118.3
|
|
$
224.6
|
|
$ 461.1
|
Less: Net income
(loss) attributable to noncontrolling interests
|
(0.2)
|
|
(2.7)
|
|
1.6
|
|
(1.5)
|
Net income (loss) attributable to FMC
stockholders
|
$
(3.5)
|
|
$
121.0
|
|
$
223.0
|
|
$ 462.6
|
Amounts attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
$
4.8
|
|
$ 137.2
|
|
$ 264.3
|
|
$ 504.8
|
Discontinued
operations, net of tax
|
(8.3)
|
|
(16.2)
|
|
(41.3)
|
|
(42.2)
|
Net income (loss)
|
$
(3.5)
|
|
$
121.0
|
|
$
223.0
|
|
$ 462.6
|
Basic earnings (loss) per common share attributable
to FMC stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.04
|
|
$
1.09
|
|
$
2.11
|
|
$ 3.99
|
Discontinued
operations
|
(0.07)
|
|
(0.13)
|
|
(0.33)
|
|
(0.33)
|
Basic earnings per common
share
|
$
(0.03)
|
|
$
0.96
|
|
$
1.78
|
|
$
3.66
|
Average number of
shares outstanding used in basic earnings per share
computations
|
124.9
|
|
126.2
|
|
125.1
|
|
126.2
|
Diluted earnings (loss) per common share attributable
to FMC stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.04
|
|
$
1.08
|
|
$
2.10
|
|
$ 3.98
|
Discontinued
operations
|
(0.07)
|
|
(0.13)
|
|
(0.33)
|
|
(0.33)
|
Diluted earnings per common
share
|
$
(0.03)
|
|
$
0.95
|
|
$
1.77
|
|
$
3.65
|
Average number of
shares outstanding used in diluted earnings per share
computations
|
125.3
|
|
126.9
|
|
125.7
|
|
126.9
|
|
|
|
|
|
|
|
|
Other Data:
|
|
|
|
|
|
|
|
Capital additions and
other investing activities
|
$
35.5
|
|
$
37.9
|
|
$ 116.6
|
|
$ 102.7
|
Depreciation and
amortization expense
|
45.6
|
|
41.4
|
|
138.4
|
|
126.6
|
FMC
CORPORATION
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
RECONCILIATION
OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO
ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS,
ATTRIBUTABLE TO FMC STOCKHOLDERS (NON-GAAP)
(Unaudited, in
millions, except per share amounts)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$ (3.5)
|
|
$
121.0
|
|
$
223.0
|
|
$
462.6
|
Corporate special
charges (income):
|
|
|
|
|
|
|
|
Restructuring and
other charges (income) (a)
|
28.2
|
|
9.0
|
|
48.0
|
|
98.9
|
Non-operating pension
and postretirement charges (income) (b)
|
4.2
|
|
(1.7)
|
|
13.4
|
|
6.5
|
Income tax expense
(benefit) on Corporate special charges (income)
(c)
|
(4.2)
|
|
(1.0)
|
|
(8.5)
|
|
(2.8)
|
Adjustment for
noncontrolling interest, net of tax on Corporate special charges
(income)
|
0.4
|
|
—
|
|
(1.6)
|
|
—
|
Discontinued operations
attributable to FMC stockholders, net of income taxes
(d)
|
8.3
|
|
16.2
|
|
41.3
|
|
42.2
|
Tax adjustment
(e)
|
22.0
|
|
12.1
|
|
25.5
|
|
32.0
|
Adjusted after-tax earnings from continuing
operations attributable to
FMC stockholders
(Non-GAAP) (1)
|
$
55.4
|
|
$
155.6
|
|
$
341.1
|
|
$
639.4
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$
(0.03)
|
|
$
0.95
|
|
$ 1.77
|
|
$
3.65
|
Corporate special
charges (income) per diluted share, before tax:
|
|
|
|
|
|
|
|
Restructuring and
other charges (income)
|
0.22
|
|
0.07
|
|
0.39
|
|
0.78
|
Non-operating pension
and postretirement charges (income)
|
0.03
|
|
(0.01)
|
|
0.11
|
|
0.05
|
Income tax expense
(benefit) on Corporate special charges (income), per diluted
share
|
(0.03)
|
|
(0.01)
|
|
(0.07)
|
|
(0.02)
|
Adjustment for
noncontrolling interest, net of tax on Corporate special
charges
(income) per diluted
share
|
—
|
|
—
|
|
(0.02)
|
|
—
|
Discontinued operations
attributable to FMC stockholders, net of income taxes
per diluted
share
|
0.07
|
|
0.13
|
|
0.33
|
|
0.33
|
Tax adjustments per
diluted share
|
0.18
|
|
0.10
|
|
0.20
|
|
0.25
|
Diluted adjusted after-tax earnings from continuing
operations per share,
attributable to FMC stockholders
(Non-GAAP)
|
$
0.44
|
|
$
1.23
|
|
$ 2.71
|
|
$
5.04
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in diluted adjusted after-tax
earnings from
continuing operations per share computations
|
125.3
|
|
126.9
|
|
125.7
|
|
126.9
|
____________________
(1)
|
Referred to as Adjusted
earnings. The Company believes that Adjusted earnings, a Non-GAAP
financial measure, and its presentation on a per share basis
provides useful information about the Company's operating results
to management, investors, and securities analysts. Adjusted
earnings excludes the effects of corporate special charges,
tax-related adjustments and the results of our discontinued
operations. The Company also believes that excluding the effects of
these items from operating results allows management and investors
to compare more easily the financial performance of its underlying
business from period to period.
|
|
|
(a)
|
Three Months Ended September 30,
2023:
|
|
|
|
Restructuring and other
charges (income) includes $2.5 million of employee separation and
$0.4 million of other exit costs incurred as part of various
restructuring initiatives. Other charges (income) of $25.3 million
is comprised of $11.9 million in charges resulting from the third
quarter acquisition of in-process research and development assets
that do not meet the criteria for capitalization. Additionally, we
incurred $4.9 million in losses related to the devaluation of the
Argentine peso driven by government actions, $4.5 million of
charges associated with our environmental sites, and $4.0 million
of other miscellaneous charges.
|
|
|
|
Three Months Ended September 30,
2022:
|
|
|
|
Restructuring and other
charges (income) includes charges relating to environmental sites
of $3.4 million, as well as severance and other
restructuring-related charges of $2.0 million from various
restructuring programs and other charges of
$3.6 million.
|
|
|
|
Nine Months Ended September 30,
2023:
|
|
|
|
Restructuring and other
charges (income) includes $6.8 million of employee separation
costs as well as $1.9 million of asset impairment and
other charges related to various global restructuring initiatives.
These restructuring charges were offset by a $5.8 million gain
recognized on the disposition of land related to a previously
closed manufacturing facility. Other charges (income) of
$45.1 million, is comprised of $11.9 million in charges
resulting from the third quarter acquisition of in-process research
and development assets that do not meet the criteria for
capitalization. We recognized a $6.9 million remeasurement charge
triggered during the period as a result of the significant currency
depreciation of the Pakistani Rupee. On January 25, 2023, the
Pakistani Rupee experienced its largest single day drop against the
US dollar in over two decades following the removal of the USD-PKR
exchange cap in place on the country's currency. Additionally, we
incurred $4.9 million in losses related to the devaluation of the
Argentine peso driven by government actions during the period,
$14.3 million of charges associated with our environmental
sites, and $7.1 million of other miscellaneous
charges.
|
|
|
|
Nine Months Ended
September 30, 2022:
|
|
|
|
Restructuring and other
charges (income) is primarily comprised of $76.1 million in
exit charges related to our decision to cease operations and
business in Russia. Restructuring and other charges (income)
also includes charges relating to environmental sites of
$1.0 million, as well as severance and other
restructuring-related charges of $16.6 million from various
restructuring programs and other charges of
$5.2 million.
|
|
|
(b)
|
Our non-operating
pension and postretirement charges (income) are defined as those
costs (benefits) related to interest, expected return on plan
assets, amortized actuarial gains and losses and the impacts of any
plan curtailments or settlements. These are excluded from our
Adjusted Earnings and are primarily related to changes in pension
plan assets and liabilities which are tied to financial market
performance and we consider these costs to be outside our
operational performance. We continue to include the service cost
and amortization of prior service cost in our Adjusted Earnings
results noted above. These elements reflect the current year
operating costs to our businesses for the employment benefits
provided to active
employees.
|
|
|
(c)
|
The income tax expense
(benefit) on Corporate special charges (income) is determined using
the applicable rates in the taxing jurisdictions in which the
corporate special charge or income occurred and includes both
current and deferred income tax expense (benefit) based on the
nature of the non-GAAP performance measure.
|
|
|
(d)
|
Discontinued operations
includes provisions, net of recoveries, for environmental
liabilities and legal reserves and expenses related to previously
discontinued operations and retained liabilities.
|
|
|
(e)
|
We exclude the GAAP tax
provision, including discrete items, from the Non-GAAP measure of
income, and include a Non-GAAP tax provision based upon the
projected annual Non-GAAP effective tax rate. The GAAP tax
provision includes certain discrete tax items including, but are
not limited to: income tax expenses or benefits that are not
related to continuing operating results in the current year; tax
adjustments associated with fluctuations in foreign currency
remeasurement of certain foreign operations; certain changes in
estimates of tax matters related to prior fiscal years; certain
changes in the realizability of deferred tax assets and related
interim accounting impacts; and changes in tax law. Management
believes excluding these discrete tax items assists investors and
securities analysts in understanding the tax provision and the
effective tax rate related to continuing operating results thereby
providing investors with useful supplemental information about
FMC's operational performance.
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(in Millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Non-GAAP tax adjustments
|
|
|
|
|
|
|
|
Foreign currency
remeasurement and other discrete items
|
$ 22.0
|
|
$
12.1
|
|
$ 25.5
|
|
$
32.0
|
Total Non-GAAP tax adjustments
|
$ 22.0
|
|
$
12.1
|
|
$ 25.5
|
|
$
32.0
|
RECONCILIATION OF
NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM
CONTINUING
OPERATIONS, BEFORE
INTEREST, INCOME TAXES, DEPRECIATION AND AMORTIZATION,
AND
NONCONTROLLING
INTERESTS (NON-GAAP)
(Unaudited, in
millions)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income (loss)
(GAAP)
|
$ (3.7)
|
|
$
118.3
|
|
$
224.6
|
|
$
461.1
|
Restructuring and
other charges (income)
|
28.2
|
|
9.0
|
|
48.0
|
|
98.9
|
Non-operating pension
and postretirement charges (income)
|
4.2
|
|
(1.7)
|
|
13.4
|
|
6.5
|
Discontinued
operations, net of income taxes
|
8.3
|
|
16.2
|
|
41.3
|
|
42.2
|
Interest expense,
net
|
64.6
|
|
41.8
|
|
180.5
|
|
107.0
|
Depreciation and
amortization
|
45.6
|
|
41.4
|
|
138.4
|
|
126.6
|
Provision (benefit)
for income taxes
|
27.4
|
|
36.0
|
|
77.7
|
|
133.0
|
Adjusted earnings from continuing operations, before
interest, income taxes, depreciation and amortization, and
noncontrolling interests (Non-GAAP)
(1)
|
$
174.6
|
|
$
261.0
|
|
$
723.9
|
|
$
975.3
|
___________________
(1)
|
Referred to as Adjusted
EBITDA. Defined as operating profit excluding corporate special
charges (income) and depreciation and amortization
expense.
|
RECONCILIATION OF
CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES OF
CONTINUING
OPERATIONS (GAAP) TO FREE CASH FLOW (NON-GAAP)
(Unaudited, in
millions)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided
(required) by operating activities of continuing operations
(GAAP) (1)
|
$
101.6
|
|
$
417.6
|
|
$ (618.2)
|
|
$ 15.7
|
Transaction and
integration costs
|
—
|
|
—
|
|
—
|
|
0.5
|
Adjusted cash from
operations(2)
|
$
101.6
|
|
$
417.6
|
|
$
(618.2)
|
|
$ 16.2
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(33.0)
|
|
(34.7)
|
|
(108.8)
|
|
(108.4)
|
Other investing
activities
|
(2.5)
|
|
(3.2)
|
|
(7.8)
|
|
5.7
|
Capital additions and other investing
activities
|
$
(35.5)
|
|
$
(37.9)
|
|
$
(116.6)
|
|
$
(102.7)
|
|
|
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(34.1)
|
|
(20.2)
|
|
(61.0)
|
|
(51.8)
|
Transaction and
integration costs
|
—
|
|
—
|
|
—
|
|
(0.5)
|
Proceeds from Land
Disposition
|
—
|
|
—
|
|
5.8
|
|
—
|
Legacy and transformation
|
$
(34.1)
|
|
$
(20.2)
|
|
$
(55.2)
|
|
$
(52.3)
|
|
|
|
|
|
|
|
|
Free cash flow
(Non-GAAP)(3)
|
$ 32.0
|
|
$
359.5
|
|
$
(790.0)
|
|
$
(138.8)
|
___________________
(1)
|
The cash provided
(required) by operating activities for the three months ended
September 30, 2023 and 2022 is the calculation of the nine months
ended September 30, 2023 and 2022 less the previously reported six
months ended June 30, 2023 and 2022, respectively.
|
(2)
|
Adjusted cash from
operations is defined as cash provided (required) by operating
activities of continuing operations excluding the effects of
transaction-related cash flows.
|
(3)
|
Free cash flow is
defined as Adjusted cash from operations reduced by spending for
capital additions and other investing activities as well as legacy
and transformation spending. We believe that this Non-GAAP
financial measure provides a useful basis for investors and
securities analysts about the cash generated by routine business
operations, including capital expenditures, in addition to
assessing our ability to repay debt, fund acquisitions and return
capital to shareholders through share repurchases and dividends.
Our use of free cash flow has limitations as an analytical tool and
should not be considered in isolation or as a substitute for an
analysis of our results under U.S. GAAP.
|
RECONCILIATION OF
REVENUE CHANGE (GAAP) TO
ORGANIC REVENUE
CHANGE (NON-GAAP) (1)
(Unaudited)
|
|
|
Three Months Ended
September 30, 2023 vs. 2022
|
|
Nine Months Ended
September 30, 2023 vs. 2022
|
Total Revenue Change (GAAP)
|
(29) %
|
|
(20) %
|
Less: Foreign Currency
Impact
|
— %
|
|
(2) %
|
Organic Revenue Change
(Non-GAAP)
|
(29) %
|
|
(18) %
|
___________________
(1)
|
We believe organic
revenue growth (non-GAAP) provides management and investors with
useful supplemental information regarding our ongoing revenue
performance and trends by presenting revenue growth excluding the
impact of fluctuations in foreign exchange rates.
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited, in
millions)
|
|
|
September 30, 2023
|
|
December 31, 2022
|
Cash and cash
equivalents
|
$
323.8
|
|
$
572.0
|
Trade receivables, net
of allowance of $36.7 in 2023 and $33.9 in 2022
|
2,564.5
|
|
2,871.4
|
Inventories
|
1,998.6
|
|
1,651.6
|
Prepaid and other
current assets
|
435.4
|
|
343.6
|
Total current assets
|
$
5,322.3
|
|
$
5,438.6
|
Property, plant and
equipment, net
|
872.5
|
|
849.6
|
Goodwill
|
1,584.7
|
|
1,589.3
|
Other intangibles,
net
|
2,453.1
|
|
2,508.1
|
Deferred income
taxes
|
209.3
|
|
210.7
|
Other long-term
assets
|
514.5
|
|
575.0
|
Total assets
|
$
10,956.4
|
|
$
11,171.3
|
Short-term debt and
current portion of long-term debt
|
$
1,092.8
|
|
$
540.8
|
Accounts payable, trade
and other
|
662.5
|
|
1,252.2
|
Advanced payments from
customers
|
1.7
|
|
680.5
|
Accrued and other
liabilities
|
673.1
|
|
601.8
|
Accrued customer
rebates
|
809.5
|
|
465.3
|
Guarantees of vendor
financing
|
95.6
|
|
142.0
|
Accrued pensions and
other postretirement benefits, current
|
3.5
|
|
2.3
|
Income taxes
|
107.8
|
|
114.7
|
Total current liabilities
|
$
3,446.5
|
|
$
3,799.6
|
Long-term debt, less
current portion
|
$
3,022.9
|
|
$
2,733.2
|
Long-term
liabilities
|
1,172.5
|
|
1,237.6
|
Equity
|
3,314.5
|
|
3,400.9
|
Total liabilities and equity
|
$
10,956.4
|
|
$
11,171.3
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in
millions)
|
|
|
Nine Months Ended September 30,
|
|
2023
|
|
2022
|
Cash provided
(required) by operating activities of continuing
operations
|
$
(618.2)
|
|
$
15.7
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(61.0)
|
|
(51.8)
|
|
|
|
|
Cash provided
(required) by investing activities of continuing
operations
|
(126.8)
|
|
(294.2)
|
|
|
|
|
Cash provided
(required) by financing activities of continuing
operations
|
562.1
|
|
197.7
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(4.3)
|
|
(20.4)
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
$
(248.2)
|
|
$
(153.0)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
572.0
|
|
$
516.8
|
|
|
|
|
Cash and cash equivalents, end of
period
|
$
323.8
|
|
$
363.8
|
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SOURCE FMC Corporation