- GAAP EPS of $0.24 includes
special items and amortization expense
- Adjusted EPS of $0.63 exceeded
guidance of $0.60, driven by
better-than-projected margins in both segments
- Full year adjusted EPS guidance of $2.40 maintained reflecting continued weak demand
conditions, offset by adjusted EBITDA margins expected to increase
from 15.6% to 16.0% for the year
- Most recent Sustainability Report published, highlighting
the company's progress on ESG initiatives focused on People,
Products, Planet and Performance
- Sustainability Day for investors to be held on September 20th will focus on Avient's sustainable
solutions portfolio and the demand trends that will drive long-term
growth
CLEVELAND, July 27,
2023 /PRNewswire/ -- Avient Corporation (NYSE: AVNT),
a leading provider of specialized and sustainable solutions, today
announced its second quarter 2023 results. Second quarter
GAAP and adjusted earnings per share (EPS) were $0.24 and $0.63,
respectively.
GAAP EPS includes $0.21 of special
items (see Attachment 3) and $0.18 of
intangible amortization expense (see Attachment 1). Special
items for the second quarter were primarily related to an
adjustment to environmental reserves.
"Adjusted EPS for the second quarter exceeded our guidance as a
result of favorable margins in both segments," said Robert M. Patterson, Chairman, President, and
Chief Executive Officer, Avient Corporation. "Compared to our
prior adjusted EPS expectations, raw material deflation as well as
improving mix from composites and sustainable solutions positively
impacted the quarter and more than offset weaker demand
conditions."
"Sequentially, we've seen modest improvement in Asia, but demand across other regions remains
sluggish, particularly in Europe,
as consumers remain cautious with continued inflation and rising
interest rates," Mr. Patterson added.
"I'm pleased with how well we have executed through the first
half of the year despite persistent demand weakness and customer
inventory destocking," said Mr. Patterson. "The acquisition
of Dyneema has been an outstanding addition to our portfolio.
Sales of our specialty materials into defense, energy, and
transportation end markets have shown resilience during these
challenging times."
"We are maintaining our full year adjusted EPS guidance of
$2.40 on lower estimated sales of
$3.3 billion," said Mr.
Patterson. "We have remained consistent in our view all year
that to the extent demand conditions weakened further, we would be
able to offset that with strength in composites, improving margins
and cost reductions."
Avient will share further information regarding second quarter
results and full-year guidance during its previously scheduled
webcast at 8:00 a.m. Eastern Time on
July 27, 2023.
New Sustainability Report and Upcoming Sustainability
Day
The company also announced the release of its latest
Sustainability Report, now available at
www.avient.com/sustainability. The comprehensive publication is
issued in advance of Avient's upcoming Sustainability Day to be
held on September 20, 2023.
"Sustainability remains a crucial matter in our world today, and
it's also the largest of our four key growth drivers," Mr.
Patterson said. "We are looking forward to sharing how and
where our material science is helping customers achieve their
sustainability goals and the megatrends that are underpinning the
future growth of our sustainable solutions portfolio."
Registration information to access the Sustainability Day event
will be provided in a news release in advance of the
event.
Webcast Details
Avient will host a webcast on Thursday,
July 27, 2023 at 8:00 a.m.
ET. The webcast can be viewed live at
avient.com/investors, or by clicking on the webcast link
here. Conference call participants in the question and answer
session should pre-register using the link at avient.com/investors,
or here, to receive the dial-in numbers and a personal PIN, which
are required to access the conference call. The question and
answer session will follow the company's presentation and prepared
remarks.
A recording of the webcast and the slide presentation will be
available at
avient.com/investors/events-presentations immediately
following the conference call and will be accessible for one
year.
Non-GAAP Financial Measures
The Company uses both GAAP (generally accepted accounting
principles) and non-GAAP financial measures. The non-GAAP financial
measures include adjusted EPS, adjusted operating income, adjusted
gross margin and adjusted EBITDA. Avient's chief operating decision
maker uses these financial measures to monitor and evaluate the
ongoing performance of the Company and each business segment and to
allocate resources.
The Company does not provide reconciliations of forward-looking
non-GAAP financial measures, such as adjusted EPS and adjusted
EBITDA, to the most comparable GAAP financial measures on a
forward-looking basis because the Company is unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and amount of certain items, such as, but not limited to,
environmental remediation costs, mark-to-market adjustments
associated with benefit plans, acquisition related costs, and other
non-routine costs. Each of such adjustments has not yet occurred,
are out of the Company's control and/or cannot be reasonably
predicted. For the same reasons, the Company is unable to address
the probable significance of the unavailable information.
To access Avient's news library online, please visit
www.avient.com/news.
About Avient
Avient Corporation (NYSE: AVNT) provides specialized and
sustainable material solutions that transform customer challenges
into opportunities, bringing new products to life for a better
world. Examples include:
- Dyneema®, the world's strongest fiber™, enables unmatched
levels of performance and protection for end-use applications,
including ballistic personal protection, marine and sustainable
infrastructure and outdoor sports
- Unique technologies that improve the recyclability of products
and enable recycled content to be incorporated, thus advancing a
more circular economy
- Light-weighting solutions that replace heavier traditional
materials like metal, glass and wood, which can improve fuel
efficiency in all modes of transportation and reduce carbon
footprint
- Sustainable infrastructure solutions that increase energy
efficiency, renewable energy, natural resource conservation and
fiber optic / 5G network accessibility
Avient is certified ACC Responsible Care®, a founding member of
the Alliance to End Plastic Waste and certified Great Place to
Work®. For more information, visit https://www.avient.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, but are not limited to:
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 laws and
regulations regarding plastics in jurisdictions where we conduct
business; 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; our
ability to achieve strategic objectives and successfully integrate
acquisitions, including Avient Protective Materials; an inability
to raise or sustain prices for products or services; our ability to
pay regular quarterly cash dividends and the amounts and timing of
any future dividends; information systems failures and
cyberattacks; amounts for cash and non-cash charges related to
restructuring plans that may differ from original estimates,
including because of timing changes associated with the underlying
actions; and other factors affecting our business beyond our
control, including without limitation, changes in the general
economy, changes in interest rates, changes in the rate of
inflation and any recessionary conditions. The above list of
factors is not exhaustive.
Any forward-looking statement speaks only as of the date on
which such statement is made, and 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.
Attachment
1
|
Avient
Corporation
Summary of Condensed
Consolidated Statements of Income (Unaudited)
(In millions, except
per share data)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales
|
$
824.4
|
|
$
891.0
|
|
$
1,670.1
|
|
$
1,783.2
|
Operating
Income
|
62.3
|
|
100.1
|
|
119.4
|
|
202.3
|
Net income from
continuing operations attributable to Avient
shareholders
|
22.1
|
|
62.8
|
|
42.9
|
|
127.2
|
Basic earnings per
share from continuing operations attributable to
Avient
shareholders
|
$
0.24
|
|
$
0.69
|
|
$
0.47
|
|
$
1.39
|
Diluted earnings per
share from continuing operations attributable to
Avient
shareholders
|
$
0.24
|
|
$
0.68
|
|
$
0.47
|
|
$
1.38
|
Senior management uses
comparisons of adjusted net income from continuing operations
attributable to Avient shareholders and diluted adjusted earnings
per share (EPS) from continuing operations attributable to Avient
shareholders, excluding special items, to assess performance and
facilitate comparability of results. Further, as a result of
Avient's portfolio shift to a pure play specialty formulator, it
has completed several acquisitions and divestitures which have
resulted in a significant amount of intangible asset amortization.
Management excludes intangible asset amortization from adjusted EPS
as it believes excluding acquired intangible asset amortization is
a useful measure of current period earnings per share. Senior
management believes these measures are useful to investors because
they allow for comparison to Avient's performance in prior period s
without the effect of items that, by their nature, tend to obscure
Avient'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
June 30,
2023
|
|
Three Months
Ended
June 30,
2022
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS
|
|
$
|
|
EPS
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
22.1
|
|
$
0.24
|
|
$
62.8
|
|
$
0.68
|
Special items, after
tax (Attachment 3)
|
19.6
|
|
0.21
|
|
3.2
|
|
0.03
|
Amortization expense,
after-tax
|
16.2
|
|
0.18
|
|
10.5
|
|
0.12
|
Adjusted net income /
EPS
|
$
57.9
|
|
$
0.63
|
|
$
76.5
|
|
$
0.83
|
|
Six Months
Ended
June 30,
2023
|
|
Six Months
Ended
June 30,
2022
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS
|
|
$
|
|
EPS
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
42.9
|
|
$
0.47
|
|
$
127.2
|
|
$
1.38
|
Special items, after
tax (Attachment 3)
|
41.9
|
|
0.46
|
|
9.6
|
|
0.10
|
Amortization expense,
after-tax
|
31.3
|
|
0.34
|
|
21.3
|
|
0.23
|
Adjusted net income /
EPS
|
$
116.1
|
|
$
1.27
|
|
$
158.1
|
|
$
1.71
|
Attachment
2
|
Avient
Corporation
Condensed
Consolidated Statements of Income (Unaudited)
(In millions, except
per share data)
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Sales
|
$
824.4
|
|
$
891.0
|
|
$
1,670.1
|
|
$
1,783.2
|
Cost of
sales
|
583.7
|
|
630.1
|
|
1,181.8
|
|
1,267.9
|
Gross margin
|
240.7
|
|
260.9
|
|
488.3
|
|
515.3
|
Selling and
administrative expense
|
178.4
|
|
160.8
|
|
368.9
|
|
313.0
|
Operating
income
|
62.3
|
|
100.1
|
|
119.4
|
|
202.3
|
Interest expense,
net
|
(29.4)
|
|
(16.2)
|
|
(58.2)
|
|
(33.1)
|
Other (expense) income,
net
|
(0.2)
|
|
1.6
|
|
0.5
|
|
1.0
|
Income from continuing
operations before income taxes
|
32.7
|
|
85.5
|
|
61.7
|
|
170.2
|
Income tax
expense
|
(10.4)
|
|
(22.7)
|
|
(18.1)
|
|
(42.7)
|
Net income from
continuing operations
|
22.3
|
|
62.8
|
|
43.6
|
|
127.5
|
Income (loss) from
discontinued operations, net of income taxes
|
—
|
|
21.9
|
|
(0.9)
|
|
41.7
|
Net income
|
22.3
|
|
84.7
|
|
42.7
|
|
169.2
|
Net income attributable
to noncontrolling interests
|
(0.2)
|
|
—
|
|
(0.7)
|
|
(0.3)
|
Net income attributable
to Avient common shareholders
|
$
22.1
|
|
$
84.7
|
|
$
42.0
|
|
$
168.9
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Avient common shareholders -
Basic:
|
|
|
|
|
Continuing
operations
|
$
0.24
|
|
$
0.69
|
|
$
0.47
|
|
$
1.39
|
Discontinued
operations
|
—
|
|
0.24
|
|
(0.01)
|
|
0.46
|
Total
|
$
0.24
|
|
$
0.93
|
|
$
0.46
|
|
$
1.85
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Avient common shareholders -
Diluted:
|
|
|
|
|
Continuing
operations
|
$
0.24
|
|
$
0.68
|
|
$
0.47
|
|
$
1.38
|
Discontinued
operations
|
—
|
|
0.24
|
|
(0.01)
|
|
0.45
|
Total
|
$
0.24
|
|
$
0.92
|
|
$
0.46
|
|
$
1.83
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share of common stock
|
$ 0.2475
|
|
$ 0.2375
|
|
$ 0.4950
|
|
$ 0.4750
|
|
|
|
|
|
|
|
|
Weighted-average shares
used to compute earnings per common share:
|
|
|
|
|
|
|
|
Basic
|
91.1
|
|
91.4
|
|
91.1
|
|
91.4
|
Diluted
|
91.9
|
|
92.1
|
|
91.9
|
|
92.2
|
Attachment
3
|
Avient
Corporation
Summary of Special
Items (Unaudited)
(In millions, except
per share data)
|
|
Special items
(1)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cost of
sales:
|
|
|
|
|
|
|
|
Restructuring costs,
including accelerated depreciation
|
$
(1.2)
|
|
$
(2.6)
|
|
$
(7.8)
|
|
$
(7.0)
|
Environmental
remediation costs
|
(13.0)
|
|
(3.0)
|
|
(14.4)
|
|
(5.0)
|
Reimbursement of
previously incurred environmental costs
|
—
|
|
7.6
|
|
—
|
|
8.2
|
Impact on cost of
sales
|
(14.2)
|
|
2.0
|
|
(22.2)
|
|
(3.8)
|
|
|
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
|
|
|
|
Restructuring
|
(0.5)
|
|
(2.9)
|
|
(11.9)
|
|
(1.3)
|
Legal and
other
|
(6.4)
|
|
1.2
|
|
(10.6)
|
|
1.5
|
Acquisition related
costs
|
(0.7)
|
|
(2.1)
|
|
(4.2)
|
|
(5.0)
|
Impact on selling and
administrative expense
|
(7.6)
|
|
(3.8)
|
|
(26.7)
|
|
(4.8)
|
|
|
|
|
|
|
|
|
Impact on operating
income
|
(21.8)
|
|
(1.8)
|
|
(48.9)
|
|
(8.6)
|
|
|
|
|
|
|
|
|
Other income (loss),
net
|
0.1
|
|
0.9
|
|
(0.1)
|
|
1.0
|
|
|
|
|
|
|
|
|
Impact on income from
continuing operations before income taxes
|
(21.7)
|
|
(0.9)
|
|
(49.0)
|
|
(7.6)
|
Income tax expense
(benefit) on above special items
|
5.5
|
|
0.2
|
|
12.4
|
|
2.0
|
Tax
adjustments(2)
|
(3.4)
|
|
(2.5)
|
|
(5.3)
|
|
(4.0)
|
Impact of special
items on net income from continuing operations
|
$
(19.6)
|
|
$
(3.2)
|
|
$
(41.9)
|
|
$
(9.6)
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share impact
|
$
(0.21)
|
|
$
(0.03)
|
|
$
(0.46)
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute adjusted earnings per share:
|
|
|
|
|
|
|
|
Diluted
|
91.9
|
|
92.1
|
|
91.9
|
|
92.2
|
|
|
(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; settlement
gains or losses and mark-to-market adjustments associated
with 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, 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 impact from non-recurring income tax items, adjustments
to uncertain tax position reserves and the establishment, reversal
or changes to valuation allowances.
|
Attachment
4
|
Avient
Corporation
Condensed
Consolidated Balance Sheets
(In
millions)
|
|
|
(Unaudited)
June 30,
2023
|
|
December 31,
2022
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
528.7
|
|
$
641.1
|
Accounts receivable,
net
|
506.4
|
|
440.6
|
Inventories,
net
|
359.0
|
|
372.7
|
Other current
assets
|
116.6
|
|
115.3
|
Total current
assets
|
1,510.7
|
|
1,569.7
|
Property,
net
|
1,007.4
|
|
1,049.2
|
Goodwill
|
1,705.7
|
|
1,671.9
|
Intangible assets,
net
|
1,614.7
|
|
1,597.6
|
Other non-current
assets
|
213.3
|
|
196.6
|
Total
assets
|
$
6,051.8
|
|
$
6,085.0
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
2.2
|
|
$
2.2
|
Accounts
payable
|
428.7
|
|
454.4
|
Accrued expenses and
other current liabilities
|
345.6
|
|
412.8
|
Total current
liabilities
|
776.5
|
|
869.4
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
2,179.2
|
|
2,176.7
|
Pension and other
post-retirement benefits
|
67.3
|
|
67.2
|
Deferred income
taxes
|
304.8
|
|
342.5
|
Other non-current
liabilities
|
370.3
|
|
276.4
|
Total non-current
liabilities
|
2,921.6
|
|
2,862.8
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Avient shareholders'
equity
|
2,334.7
|
|
2,334.5
|
Noncontrolling
interest
|
19.0
|
|
18.3
|
Total
equity
|
2,353.7
|
|
2,352.8
|
Total liabilities
and equity
|
$
6,051.8
|
|
$
6,085.0
|
Attachment
5
|
|
Avient
Corporation
Condensed
Consolidated Statements of Cash Flows (Unaudited)
(In
millions)
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
Net income
|
$
42.7
|
|
$
169.2
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
96.2
|
|
71.1
|
Accelerated
depreciation
|
1.9
|
|
3.2
|
Share-based
compensation expense
|
6.5
|
|
6.3
|
Changes in assets and
liabilities, net of the effect of acquisitions:
|
|
|
|
Increase in accounts
receivable
|
(66.6)
|
|
(133.2)
|
Decrease (increase) in
inventories
|
14.0
|
|
(45.9)
|
(Decrease) increase in
accounts payable
|
(26.2)
|
|
98.5
|
Accrued expenses and
other assets and liabilities, net
|
(93.2)
|
|
(62.5)
|
Net cash (used)
provided by operating activities
|
(24.7)
|
|
106.7
|
Investing
activities
|
|
|
|
Capital
expenditures
|
(45.9)
|
|
(34.0)
|
Settlement of foreign
exchange derivatives
|
—
|
|
75.1
|
Net proceeds from
divestiture
|
7.3
|
|
—
|
Net cash used by
investing activities
|
(38.6)
|
|
41.1
|
Financing
activities
|
|
|
|
Purchase of common
shares for treasury
|
—
|
|
(36.4)
|
Cash dividends
paid
|
(45.0)
|
|
(43.5)
|
Repayment of long-term
debt
|
(1.0)
|
|
(4.4)
|
Other
financing
|
(2.3)
|
|
(4.1)
|
Net cash used by
financing activities
|
(48.3)
|
|
(88.4)
|
Effect of exchange rate
changes on cash
|
(0.8)
|
|
(15.5)
|
Decrease in cash and
cash equivalents
|
(112.4)
|
|
43.9
|
Cash and cash
equivalents at beginning of year
|
641.1
|
|
601.2
|
Cash and cash
equivalents at end of period
|
$
528.7
|
|
$
645.1
|
Attachment
6
|
Avient
Corporation
Business Segment
Operations (Unaudited)
(In
millions)
|
|
Operating income and
earnings before interest, taxes, depreciation and amortization
(EBITDA) 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.
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales:
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
524.5
|
|
$
649.1
|
|
$
1,061.5
|
|
$
1,298.6
|
Specialty
Engineered Materials
|
300.8
|
|
242.3
|
|
610.5
|
|
485.4
|
Corporate
|
(0.9)
|
|
(0.4)
|
|
(1.9)
|
|
(0.8)
|
Sales
|
$
824.4
|
|
$
891.0
|
|
$
1,670.1
|
|
$
1,783.2
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
164.1
|
|
$
193.4
|
|
$
326.1
|
|
$
385.5
|
Specialty
Engineered Materials
|
91.5
|
|
66.0
|
|
185.4
|
|
134.4
|
Corporate
|
(14.9)
|
|
1.5
|
|
(23.2)
|
|
(4.6)
|
Gross
margin
|
$
240.7
|
|
$
260.9
|
|
$
488.3
|
|
$
515.3
|
|
|
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
96.1
|
|
$
99.8
|
|
$
192.5
|
|
$
197.4
|
Specialty
Engineered Materials
|
51.8
|
|
30.8
|
|
102.6
|
|
60.9
|
Corporate
|
30.5
|
|
30.2
|
|
73.8
|
|
54.7
|
Selling and
administrative expense
|
$
178.4
|
|
$
160.8
|
|
$
368.9
|
|
$
313.0
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
68.0
|
|
$
93.6
|
|
$
133.6
|
|
$
188.1
|
Specialty
Engineered Materials
|
39.7
|
|
35.2
|
|
82.8
|
|
73.5
|
Corporate
|
(45.4)
|
|
(28.7)
|
|
(97.0)
|
|
(59.3)
|
Operating
income
|
$
62.3
|
|
$
100.1
|
|
$
119.4
|
|
$
202.3
|
|
|
|
|
|
|
|
|
Depreciation &
amortization:
|
|
|
|
|
|
|
|
Color, Additives and
Inks
|
$
25.7
|
|
$
25.8
|
|
$
51.5
|
|
$
51.9
|
Specialty Engineered
Materials
|
19.9
|
|
7.6
|
|
41.1
|
|
15.5
|
Corporate
|
2.0
|
|
3.1
|
|
5.5
|
|
6.9
|
Depreciation &
Amortization
|
$
47.6
|
|
$
36.5
|
|
$
98.1
|
|
$
74.3
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and
amortization
(EBITDA):
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
93.7
|
|
$
119.4
|
|
$
185.1
|
|
$
240.0
|
Specialty
Engineered Materials
|
59.6
|
|
42.8
|
|
123.9
|
|
89.0
|
Corporate
|
(43.4)
|
|
(25.6)
|
|
(91.5)
|
|
(52.4)
|
Other income (expense),
net
|
(0.2)
|
|
1.6
|
|
0.5
|
|
1.0
|
EBITDA including
special items
|
$
109.7
|
|
$
138.2
|
|
$
218.0
|
|
$
277.6
|
Total Company special
items in EBITDA
|
21.6
|
|
(0.2)
|
|
47.1
|
|
4.4
|
Total Company, EBITDA
adjusted
|
$
131.3
|
|
$
138.0
|
|
$
265.1
|
|
$
282.0
|
Attachment
7
|
|
Avient
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 Avient's
annual incentive plans and is used in debt covenant computations.
Senior management believes these measures are useful to investors
because they allow for comparison to Avient's performance in prior
periods without the effect of items that, by their nature, tend to
obscure Avient'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
June
30,
|
|
Six Months
Ended
June
30,
|
Reconciliation to
Consolidated Statements of Income
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Sales
|
$
824.4
|
|
$
891.0
|
|
$
1,670.1
|
|
$
1,783.2
|
|
|
|
|
|
|
|
|
Gross margin -
GAAP
|
240.7
|
|
260.9
|
|
488.3
|
|
515.3
|
Special items in gross
margin (Attachment 3)
|
14.2
|
|
(2.0)
|
|
22.2
|
|
3.8
|
Adjusted gross
margin
|
$
254.9
|
|
$
258.9
|
|
$ 510.5
|
|
$ 519.1
|
|
|
|
|
|
|
|
|
Adjusted gross margin
as a percent of sales
|
30.9 %
|
|
29.1 %
|
|
30.6 %
|
|
29.1 %
|
|
|
|
|
|
|
|
|
Operating income -
GAAP
|
62.3
|
|
100.1
|
|
119.4
|
|
202.3
|
Special items in
operating income (Attachment 3)
|
21.8
|
|
1.8
|
|
48.9
|
|
8.6
|
Adjusted operating
income
|
$
84.1
|
|
$
101.9
|
|
$ 168.3
|
|
$ 210.9
|
|
|
|
|
|
|
|
|
Adjusted operating
income as a percent of sales
|
10.2 %
|
|
11.4 %
|
|
10.1 %
|
|
11.8 %
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
Reconciliation to
EBITDA and Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income from
continuing operations – GAAP
|
$
22.3
|
|
$
62.8
|
|
$
43.6
|
|
$
127.5
|
Income tax
expense
|
10.4
|
|
22.7
|
|
18.1
|
|
42.7
|
Interest expense,
net
|
29.4
|
|
16.2
|
|
58.2
|
|
33.1
|
Depreciation and
amortization
|
47.6
|
|
36.5
|
|
98.1
|
|
74.3
|
EBITDA from continuing
operations
|
$ 109.7
|
|
$ 138.2
|
|
$ 218.0
|
|
$
277.6
|
Special items, before
tax
|
21.7
|
|
0.9
|
|
49.0
|
|
7.6
|
Depreciation and
amortization included in special items
|
(0.1)
|
|
(1.1)
|
|
(1.9)
|
|
(3.2)
|
Adjusted
EBITDA
|
$ 131.3
|
|
$ 138.0
|
|
$ 265.1
|
|
$
282.0
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a %
of sales
|
15.9 %
|
|
15.5 %
|
|
15.9 %
|
|
15.8 %
|
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SOURCE Avient Corporation