CLEVELAND, April 21, 2020 /PRNewswire/ -- PolyOne
Corporation (NYSE: POL) today reported its first quarter results
for 2020. GAAP earnings per share from continuing operations
were $0.38 in the first quarter of
2020 compared to $0.29 in the first
quarter of 2019.
Adjusted earnings per share excluding the impact of the
additional shares issued in February of 2020 were $0.53. Inclusive of the additional shares,
adjusted EPS was $0.48.
"The COVID-19 pandemic is having a significant impact on the
world and our first priority is the health and safety of our
associates, customers and all stakeholders. We are strictly
adhering to government guidelines and protocols as well as other
preventative measures to help stop the spread of the virus," said
Robert M. Patterson, Chairman,
President and Chief Executive Officer, PolyOne Corporation.
"I'm very grateful for our dedicated associates around the world
who continue to serve our customers. We have 61 global
manufacturing facilities, and all but two continue to operate, as
we are an essential source of supply related to coronavirus support
and recovery," said Mr. Patterson.
The company noted its materials enable food, beverage and
medical supplies to continue to be produced, packaged, shipped and
used. This includes masks, protective garments, medical
tubing and packaging for personal care products. In addition,
the company's materials are critical to infrastructure, electronics
and telecommunications.
Commenting on the company's first quarter results, Mr. Patterson
said, "Improving margins in all three of our segments and an uptick
in orders in Asia at the end of
the quarter led to even better results than we expected and shared
during our conference call on March 20,
2020. The pandemic has negatively impacted every region and
many end markets, but certain end markets such as healthcare and
packaging are holding up well."
The company noted that it ended the quarter with $1.28 billion in cash, which also exceeded its
previous guidance.
"Market conditions remain challenged, as most of the world
outside of China remains under
stay-at-home orders. While our business is essential in the
supply chain for our customers, we are adjusting to and expecting
reduced demand in the coming months most notably for transportation
and consumer discretionary items," Mr. Patterson added.
"Fortunately, the actions we have taken in the past to strengthen
our portfolio and our balance sheet have us well positioned to
navigate these challenges."
The company plans to provide more details on its first quarter
performance and the status of the Clariant transaction on its call
with investors and analysts on April 21,
2020 (details below). Given the uncertainty in global
markets, the company does not plan to provide specific guidance for
the second quarter or the balance of the year at this
time.
Conference Call
The company will conduct a conference call at 8:00 a.m. Eastern Time on April 21, 2020. To participate in the conference
call, dial 1-844-835-7433 (domestic) or 1-914-495-8589
(international) and provide conference ID number 7899356. A
simultaneous webcast of the call will be accessible via the
Company's website at www.polyone.com/investor.
A recording of the call will also be available for one week,
beginning at 12:00 p.m. Eastern Time
on April 21, 2020. To listen to this
recording, dial 1-855-859-2056 (domestic) or 1-404-537-3406
(international) and enter conference ID number 7899356.
About PolyOne
PolyOne Corporation (NYSE: POL), with 2019 revenues of
$2.9 billion, is a premier provider
of specialized polymer materials, services and sustainable
solutions. The company adds value to global customers and improves
sustainability through formulating materials, such as:
- Barrier technologies that preserve the shelf-life and quality
of food, beverages, medicine and other perishable goods through
high-performance materials that require less plastic
- Light-weighting solutions that replace heavier traditional
materials like metal, glass and wood, which can improve fuel
efficiency in all modes of transportation
- Breakthrough technologies that minimize wastewater and improve
the recyclability of materials and packaging across a spectrum of
end uses
PolyOne employs approximately 5,600 associates and is certified
ACC Responsible Care® and a founding member of the Alliance to End
Plastic Waste. For more information, visit www.polyone.com
Forward-looking Statements
In this press release, statements that are not reported
financial results or other historical information are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
and are not guarantees of future performance. They are based on
management's expectations that involve a number of business risks
and uncertainties, any of which could cause actual results to
differ materially from those expressed in or implied by the
forward-looking statements. They use words such as "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," and other words and terms of similar meaning in
connection with any discussion of future operating or financial
condition, performance and/or sales. Factors that could cause
actual results to differ materially from those implied by these
forward-looking statements include the impact the COVID-19 pandemic
has on our business, results from operations, financial condition
and liquidity; the time required to consummate the acquisition of
Clariant's color and additive masterbatch business; the
satisfaction or waiver of conditions in the purchase agreements;
any material adverse changes in Clariant's color and additive
masterbatch business; the ability to obtain required regulatory or
other third-party approvals and consents and otherwise consummate
the proposed acquisition of Clariant's color and additive
masterbatch business; our ability to achieve the strategic and
other objectives relating to the proposed acquisition of Clariant's
color and additive masterbatch business, including any expected
synergies; our ability to successfully integrate Clariant's color
and additive masterbatch business and achieve the expected results
of the acquisition of Clariant's color and additive masterbatch
business, including, without limitation, the acquisition being
accretive; disruptions, uncertainty or volatility in the credit
markets that could adversely impact the availability of credit
already arranged and the availability and cost of credit in the
future; the effect on foreign operations of currency fluctuations,
tariffs and other political, economic and regulatory risks; changes
in polymer consumption growth rates and laws and regulations
regarding plastics in jurisdictions where we conduct business;
changes in global industry capacity or in the rate at which
anticipated changes in industry capacity come online; fluctuations
in raw material prices, quality and supply, and in energy prices
and supply; production outages or material costs associated with
scheduled or unscheduled maintenance programs; unanticipated
developments that could occur with respect to contingencies such as
litigation and environmental matters; an inability to raise or
sustain prices for products or services; an ability to achieve or
delays in achieving or achievement of less than the anticipated
financial benefit from initiatives related to acquisitions and
integration, working capital reductions, costs reductions and
employee productivity goals; information systems failures and
cyberattacks; and other factors affecting our business beyond our
control, including, without limitation, changes in the general
economy, changes in interest rates and changes in the rate of
inflation. The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise. You are advised to consult any further disclosures we
make on related subjects in our reports on Form 10-Q, 8-K and 10-K
that we provide to the Securities and Exchange Commission.
To access PolyOne's news library online, please visit
www.polyone.com/news.
Attachment 1
PolyOne
Corporation
Summary of
Condensed Consolidated Statements of Income
(Unaudited)
(In millions, except
per share data)
|
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
|
|
|
|
Sales
|
$
|
711.5
|
|
|
$
|
750.6
|
|
Operating
income
|
52.8
|
|
|
47.1
|
|
Net income from
continuing operations attributable to PolyOne
shareholders
|
33.1
|
|
|
22.4
|
|
Basic earnings per
share from continuing operations attributable to PolyOne
shareholders
|
$
|
0.38
|
|
|
$
|
0.29
|
|
Diluted earnings per
share from continuing operations attributable to PolyOne
shareholders
|
$
|
0.38
|
|
|
$
|
0.29
|
|
Senior management
uses comparisons of adjusted net income from continuing operations
attributable to PolyOne shareholders and diluted adjusted earnings
per share (EPS) from continuing operations attributable to PolyOne
shareholders, excluding special items, to assess performance and
facilitate comparability of results. Senior management believes
these measures are useful to investors because they allow for
comparison to PolyOne's performance in prior periods without the
effect of items that, by their nature, tend to obscure PolyOne's
operating results due to the potential variability across periods
based on timing, frequency and magnitude. Non-GAAP financial
measures have limitations as analytical tools and should not be
considered in isolation from, or solely as alternatives to,
financial measures prepared in accordance with GAAP. Below is a
reconciliation of these non-GAAP financial measures to their most
directly comparable financial measures calculated and presented in
accordance with GAAP. See Attachment 3 for a definition and
summary of special items.
|
|
Three Months
Ended
March 31, 2020
|
|
Three Months
Ended
March 31, 2019
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS
|
|
$
|
|
EPS
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to PolyOne
shareholders
|
$
|
33.1
|
|
|
$
|
0.38
|
|
|
$
|
22.4
|
|
|
$
|
0.29
|
|
Special items, after
tax (Attachment 3)
|
8.6
|
|
|
0.10
|
|
|
11.0
|
|
|
0.14
|
|
Adjusted net income /
EPS - excluding special items
|
$
|
41.7
|
|
|
$
|
0.48
|
|
|
$
|
33.4
|
|
|
$
|
0.43
|
|
Attachment 2
PolyOne
Corporation
Condensed
Consolidated Statements of Income (Unaudited)
(In millions, except
per share data)
|
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
|
|
|
|
Sales
|
$
|
711.5
|
|
|
$
|
750.6
|
|
Cost of
sales
|
540.0
|
|
|
582.5
|
|
Gross
margin
|
171.5
|
|
|
168.1
|
|
Selling and
administrative expense
|
118.7
|
|
|
121.0
|
|
Operating
income
|
52.8
|
|
|
47.1
|
|
Interest expense,
net
|
(9.4)
|
|
|
(15.9)
|
|
Other income,
net
|
1.6
|
|
|
0.1
|
|
Income from
continuing operations before income taxes
|
45.0
|
|
|
31.3
|
|
Income
taxes
|
(11.9)
|
|
|
(8.8)
|
|
Net income from
continuing operations
|
33.1
|
|
|
22.5
|
|
(Loss) income from
discontinued operations, net of income taxes
|
(0.3)
|
|
|
15.8
|
|
Net income
|
32.8
|
|
|
38.3
|
|
Net income
attributable to noncontrolling interests
|
—
|
|
|
(0.1)
|
|
Net income
attributable to PolyOne common shareholders
|
$
|
32.8
|
|
|
$
|
38.2
|
|
|
|
|
|
Earnings per share
attributable to PolyOne common shareholders - Basic:
|
|
|
|
Continuing
operations
|
$
|
0.38
|
|
|
$
|
0.29
|
|
Discontinued
operations
|
—
|
|
|
0.20
|
|
Total
|
$
|
0.38
|
|
|
$
|
0.49
|
|
|
|
|
|
Earnings per share
attributable to PolyOne common shareholders - Diluted:
|
|
|
|
Continuing
operations
|
$
|
0.38
|
|
|
$
|
0.29
|
|
Discontinued
operations
|
—
|
|
|
0.20
|
|
Total
|
$
|
0.38
|
|
|
$
|
0.49
|
|
|
|
|
|
Cash dividends
declared per share of common stock
|
$
|
0.2025
|
|
|
$
|
0.1950
|
|
|
|
|
|
Weighted-average
shares used to compute earnings per common share:
|
|
|
|
Basic
|
86.3
|
|
|
77.8
|
|
Diluted
|
86.7
|
|
|
78.2
|
|
Attachment 3
PolyOne
Corporation
Summary of Special
Items (Unaudited)
(In millions, except
per share data)
|
|
|
Special items
(1)
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
Cost of
sales:
|
|
|
|
Restructuring
costs
|
$
|
—
|
|
|
$
|
0.1
|
|
Environmental
remediation costs
|
(0.4)
|
|
|
(2.1)
|
|
Reimbursement of
previously incurred environmental costs
|
0.2
|
|
|
—
|
|
Acquisition related
costs
|
—
|
|
|
(2.0)
|
|
Impact on cost of
sales
|
(0.2)
|
|
|
(4.0)
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
Restructuring, legal
and other
|
(3.7)
|
|
|
(6.0)
|
|
Acquisition earn-out
adjustments
|
(1.0)
|
|
|
—
|
|
Acquisition related
costs
|
(4.8)
|
|
|
(2.3)
|
|
Impact on selling and
administrative expense
|
(9.5)
|
|
|
(8.3)
|
|
|
|
|
|
Impact on operating
income
|
(9.7)
|
|
|
(12.3)
|
|
|
|
|
|
Other income,
net
|
0.1
|
|
|
0.1
|
|
Impact on income from
continuing operations before income taxes
|
(9.6)
|
|
|
(12.2)
|
|
Income tax benefit on
above special items
|
2.0
|
|
|
3.1
|
|
Tax
adjustments(2)
|
(1.0)
|
|
|
(1.9)
|
|
Impact of special
items on net income from continuing operations attributable to
PolyOne Shareholders
|
$
|
(8.6)
|
|
|
$
|
(11.0)
|
|
|
|
|
|
Diluted earnings per
common share impact
|
$
|
(0.10)
|
|
|
$
|
(0.14)
|
|
|
|
|
|
Weighted average shares
used to compute adjusted earnings per share:
|
|
|
|
Diluted
|
86.7
|
|
78.2
|
(1)
|
Special items include
charges related to specific strategic initiatives or financial
restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to
acquisitions or divestitures; employee separation costs resulting
from personnel reduction programs, plant realignment costs,
executive separation agreements; asset impairments; mark-to-market
adjustments associated with actuarial gains and losses on pension
and other post-retirement benefit plans; environmental remediation
costs, fines, penalties and related insurance recoveries related to
facilities no longer owned or closed in prior years; gains and
losses on the divestiture of operating businesses, joint ventures
and equity investments; gains and losses on facility or property
sales or disposals; results of litigation, fines or penalties,
where such litigation (or action relating to the fines or
penalties) arose prior to the commencement of the performance
period; one-time, non-recurring items; and the effect of changes in
accounting principles or other such laws or provisions affecting
reported results.
|
|
|
(2)
|
Tax adjustments
include the net tax benefit/(expense) from one-time income tax
items, the set-up or reversal of uncertain tax position reserves
and deferred income tax valuation allowance adjustments.
|
Attachment 4
PolyOne
Corporation
Condensed
Consolidated Balance Sheets
(In
millions)
|
|
|
(Unaudited)
March 31, 2020
|
|
December
31,
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,280.2
|
|
|
$
|
864.7
|
|
Accounts receivable,
net
|
382.4
|
|
|
330.0
|
|
Inventories,
net
|
271.1
|
|
|
260.9
|
|
Other current
assets
|
56.9
|
|
|
57.7
|
|
Total current
assets
|
1,990.6
|
|
|
1,513.3
|
|
Property,
net
|
400.8
|
|
|
407.4
|
|
Goodwill
|
684.2
|
|
|
685.7
|
|
Intangible assets,
net
|
461.4
|
|
|
469.3
|
|
Operating lease
assets, net
|
58.9
|
|
|
63.8
|
|
Other non-current
assets
|
146.8
|
|
|
133.8
|
|
Total
assets
|
$
|
3,742.7
|
|
|
$
|
3,273.3
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term and
current portion of long-term debt
|
$
|
18.2
|
|
|
$
|
18.4
|
|
Accounts
payable
|
329.6
|
|
|
287.7
|
|
Current operating
lease obligations
|
19.6
|
|
|
21.0
|
|
Accrued expenses and
other current liabilities
|
320.4
|
|
|
375.4
|
|
Total current
liabilities
|
687.8
|
|
|
702.5
|
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,209.7
|
|
|
1,210.9
|
|
Pension and other
post-retirement benefits
|
55.9
|
|
|
56.6
|
|
Non-current operating
lease obligations
|
39.3
|
|
|
42.8
|
|
Other non-current
liabilities
|
211.4
|
|
|
207.8
|
|
Total non-current
liabilities
|
1,516.3
|
|
|
1,518.1
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
PolyOne shareholders'
equity
|
1,538.6
|
|
|
1,051.9
|
|
Noncontrolling
interest
|
—
|
|
|
0.8
|
|
Total
equity
|
1,538.6
|
|
|
1,052.7
|
|
Total liabilities
and equity
|
$
|
3,742.7
|
|
|
$
|
3,273.3
|
|
Attachment 5
PolyOne
Corporation
Condensed
Consolidated Statements of Cash Flows (Unaudited)
(In
millions)
|
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
Operating
Activities
|
|
|
|
Net income
|
$
|
32.8
|
|
|
$
|
38.3
|
|
Adjustments to
reconcile net income to net cash used by operating
activities:
|
|
|
|
Depreciation and
amortization
|
19.9
|
|
|
23.3
|
|
Share-based
compensation expense
|
2.1
|
|
|
2.5
|
|
Changes in assets and
liabilities, net of the effect of acquisitions:
|
|
|
|
Increase in accounts
receivable
|
(56.9)
|
|
|
(53.0)
|
|
Increase in
inventories
|
(13.0)
|
|
|
(12.0)
|
|
Increase in accounts
payable
|
44.6
|
|
|
1.2
|
|
Decrease in pension
and other post-retirement benefits
|
(3.2)
|
|
|
(1.9)
|
|
Increase in
post-acquisition earnout liabilities
|
1.0
|
|
|
—
|
|
Decrease in accrued
expenses and other assets and liabilities, net
|
(19.1)
|
|
|
(23.1)
|
|
Payment of
post-acquisition date earnout liability
|
(21.0)
|
|
|
—
|
|
Net cash used by
operating activities
|
(12.8)
|
|
|
(24.7)
|
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(11.1)
|
|
|
(9.9)
|
|
Business
acquisitions, net of cash acquired
|
—
|
|
|
(119.6)
|
|
Net proceeds from
divestiture
|
7.1
|
|
|
—
|
|
Net proceeds from
other assets
|
5.2
|
|
|
1.6
|
|
Net cash provided
(used) by investing activities
|
1.2
|
|
|
(127.9)
|
|
Financing
Activities
|
|
|
|
Borrowings under
credit facilities
|
—
|
|
|
374.7
|
|
Repayments under
credit facilities
|
—
|
|
|
(269.2)
|
|
Purchase of common
shares for treasury
|
(13.6)
|
|
|
—
|
|
Cash dividends
paid
|
(15.6)
|
|
|
(15.6)
|
|
Repayment of
long-term debt
|
(2.0)
|
|
|
(1.6)
|
|
Payments of
withholding tax on share awards
|
(1.3)
|
|
|
(1.3)
|
|
Proceeds from equity
offering, net of underwriting discount and issuance
costs
|
496.3
|
|
|
—
|
|
Payment of
acquisition date earnout liability
|
(32.9)
|
|
|
—
|
|
Net cash provided by
financing activities
|
430.9
|
|
|
87.0
|
|
Effect of exchange
rate changes on cash
|
(3.8)
|
|
|
3.0
|
|
Increase (decrease)
in cash and cash equivalents
|
415.5
|
|
|
(62.6)
|
|
Cash and cash
equivalents at beginning of year
|
864.7
|
|
|
170.9
|
|
Cash and cash
equivalents at end of period
|
$
|
1,280.2
|
|
|
$
|
108.3
|
|
Attachment 6
PolyOne
Corporation
Business Segment
Operations (Unaudited)
(In
millions)
|
|
|
Operating income at
the segment level does not include: special items as defined in
Attachment 3; corporate general and administration costs
that are not allocated to segments; intersegment sales and profit
eliminations; share-based compensation costs; and certain other
items that are not included in the measure of segment profit and
loss that is reported to and reviewed by the chief operating
decision maker. These costs are included in Corporate and
eliminations.
|
|
|
|
Three Months
Ended
March 31,
|
|
2020
|
|
2019
|
Sales:
|
|
|
|
Color,
Additives and Inks
|
$
|
256.5
|
|
|
$
|
263.3
|
|
Specialty Engineered Materials
|
185.3
|
|
|
189.9
|
|
Distribution
|
289.5
|
|
|
317.3
|
|
Corporate and eliminations
|
(19.8)
|
|
|
(19.9)
|
|
Sales
|
$
|
711.5
|
|
|
$
|
750.6
|
|
|
|
|
|
Gross
margin:
|
|
|
|
Color,
Additives and Inks
|
$
|
89.4
|
|
|
$
|
89.5
|
|
Specialty Engineered Materials
|
52.6
|
|
|
50.4
|
|
Distribution
|
33.6
|
|
|
34.2
|
|
Corporate and eliminations
|
(4.1)
|
|
|
(6.0)
|
|
Gross
margin
|
$
|
171.5
|
|
|
$
|
168.1
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
Color,
Additives and Inks
|
$
|
48.9
|
|
|
$
|
50.0
|
|
Specialty Engineered Materials
|
30.3
|
|
|
29.9
|
|
Distribution
|
14.2
|
|
|
14.7
|
|
Corporate and eliminations
|
25.3
|
|
|
26.4
|
|
Selling and
administrative expense
|
$
|
118.7
|
|
|
$
|
121.0
|
|
|
|
|
|
Operating
income:
|
|
|
|
Color,
Additives and Inks
|
$
|
40.5
|
|
|
$
|
39.5
|
|
Specialty Engineered Materials
|
22.3
|
|
|
20.5
|
|
Distribution
|
19.4
|
|
|
19.5
|
|
Corporate and eliminations
|
(29.4)
|
|
|
(32.4)
|
|
Operating
income
|
$
|
52.8
|
|
|
$
|
47.1
|
|
Attachment 7
PolyOne
Corporation
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
(In millions, except
per share data)
|
|
|
Senior management
uses gross margin before special items and operating income before
special items to assess performance and allocate resources because
senior management believes that these measures are useful in
understanding current profitability levels and how it may serve as
a basis for future performance. In addition, operating income
before the effect of special items is a component of PolyOne annual
and long-term employee incentive plans and is used in debt covenant
computations. Senior management believes these measures are useful
to investors because they allow for comparison to PolyOne's
performance in prior periods without the effect of items that, by
their nature, tend to obscure PolyOne's operating results due to
the potential variability across periods based on timing, frequency
and magnitude. Non-GAAP financial measures have limitations as
analytical tools and should not be considered in isolation from, or
solely as alternatives to, financial measures prepared in
accordance with GAAP. Below is a reconciliation of these non-GAAP
financial measures to their most directly comparable financial
measures calculated and presented in accordance with GAAP. See
Attachment 3 for a definition and summary of special
items.
|
|
|
|
Three Months
Ended
March 31,
|
Reconciliation to
Consolidated Statements of Income
|
2020
|
|
2019
|
|
|
|
|
Sales
|
$
|
711.5
|
|
|
$
|
750.6
|
|
|
|
|
|
Gross margin -
GAAP
|
171.5
|
|
|
168.1
|
|
Special items in
gross margin (Attachment 3)
|
0.2
|
|
|
4.0
|
|
Adjusted Gross
margin
|
$
|
171.7
|
|
|
$
|
172.1
|
|
|
|
|
|
Adjusted Gross margin
as a percent of sales
|
24.1
|
%
|
|
22.9
|
%
|
|
|
|
|
Operating income -
GAAP
|
52.8
|
|
|
47.1
|
|
Special items in
operating income (Attachment 3)
|
9.7
|
|
|
12.3
|
|
Adjusted
Operating income
|
$
|
62.5
|
|
|
$
|
59.4
|
|
|
|
|
|
Adjusted Operating
income as a percent of sales
|
8.8
|
%
|
|
7.9
|
%
|
The table below
reconciles pre-special income tax expense and the pre-special
effective tax rate to their most comparable US GAAP
figures.
|
|
|
|
|
|
Three Months
Ended
March 31, 2020
|
|
Three Months
Ended
March 31, 2019
|
|
GAAP
Results
|
|
Special
Items
|
|
Adjusted
Results
|
|
GAAP
Results
|
|
Special
Items
|
|
Adjusted
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before
income taxes
|
$
|
45.0
|
|
|
$
|
9.6
|
|
|
$
|
54.6
|
|
|
$
|
31.3
|
|
|
$
|
12.2
|
|
|
$
|
43.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense -
GAAP
|
(11.9)
|
|
|
—
|
|
|
(11.9)
|
|
|
(8.8)
|
|
|
—
|
|
|
(8.8)
|
|
Income tax impact of
special items (Attachment 3)
|
—
|
|
|
(2.0)
|
|
|
(2.0)
|
|
|
—
|
|
|
(3.1)
|
|
|
(3.1)
|
|
Tax adjustments
(Attachment 3)
|
—
|
|
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
1.9
|
|
|
1.9
|
|
Income tax
expense
|
$
|
(11.9)
|
|
|
$
|
(1.0)
|
|
|
$
|
(12.9)
|
|
|
$
|
(8.8)
|
|
|
$
|
(1.2)
|
|
|
$
|
(10.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate(1)
|
26.5
|
%
|
|
|
|
23.7
|
%
|
|
28.1
|
%
|
|
|
|
23.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Rates may not recalculate
from figures presented herein due to rounding.
|
Senior management has
referenced adjusted EPS excluding the impact of additional shares
issued in February 2020. On January 28, 2020, prior to the issuance
of the additional shares, the Company provided guidance for
adjusted EPS for the first quarter of 2020. This guidance
excluded the impact of the additional shares subsequently issued in
February. Accordingly, for purposes of comparability to the January
28, 2020 guidance, and prior year, management has referenced
adjusted EPS excluding the impact of the additional shares issued
in February. In addition, and again for comparability, adjusted EPS
also excludes the benefit of interest income earned on cash raised
in connection with the February share issuance.
|
|
Below is a
reconciliation of this non-GAAP financial measure to the most
directly comparable financial measure calculated and presented in
accordance with GAAP.
|
Reconciliation to
Adjusted EPS Excluding Special Items and Impacts of February 2020
Equity Offering
|
Three Months
Ended
March 31, 2020
|
Net income from
continuing operations – GAAP
|
$
|
33.1
|
|
Special items, after
tax (Attachment 3)
|
8.6
|
|
After tax interest
income earned on equity proceeds, included in Interest expense,
net
|
(0.7)
|
|
Adjusted net income
excluding special items and impact of interest income on equity
proceeds
|
$
|
41.0
|
|
|
|
Diluted
weighted-average shares used to compute earnings per common
share
|
86.7
|
|
Weighted-average
impact of 15.3 million shares issued in February 2020 equity
offering
|
(9.3)
|
|
Diluted
weighted-average shares excluding impact of shares issued in
February 2020 equity offering
|
77.4
|
|
|
|
Adjusted EPS -
excluding special items and the net impact of equity
offering
|
$
|
0.53
|
|
View original
content:http://www.prnewswire.com/news-releases/polyone-announces-first-quarter-2020-results-301044225.html
SOURCE PolyOne Corporation