- Fourth quarter sales increased 4% to $747 million and full year sales increased 3% to
$3,240 million
- Organic sales, which excludes the impact of foreign
exchange, grew 5% and 4% in the fourth quarter and full year,
respectively, driven by positive growth in all regions
- Fourth quarter and full year GAAP EPS from continuing
operations of $0.52 and $1.84 compared to $0.30 and $0.83 in
the prior year
- Fourth quarter adjusted EPS of $0.49, above mid-point of guidance range of
$0.46 to $0.50 and includes a $0.01 unfavorable impact from foreign
exchange
- 2024 full year adjusted EPS of $2.66 represents an increase of 13% over the
prior year, driven by sales growth and margin expansion in both
segments
- 2025 full year adjusted EPS expected to range from
$2.70 to $2.94; the mid-point represents 11% growth when
excluding the unfavorable impact of foreign exchange of
$0.12
CLEVELAND, Feb. 13,
2025 /PRNewswire/ -- Avient Corporation (NYSE: AVNT),
an innovator of materials solutions, today announced its fourth
quarter and full year results for 2024. Fourth quarter and full
year GAAP earnings per share (EPS) were $0.52 and $1.84,
compared to $0.30 and $0.83 in the prior year, respectively.
The company noted that full year 2024 GAAP EPS includes special
items of $0.17 (see attachment 3) and
$0.65 of intangible amortization
expense (see attachment 1). Full year 2024 adjusted EPS was
$2.66 compared to $2.36 in the prior year.
"Our teams remained focused and delivered 5% organic sales
growth in the quarter with a backdrop of U.S. elections, inflation
fears, and a changing geopolitical climate," said Dr. Ashish Khandpur, President and Chief Executive
Officer, Avient Corporation. "Organic sales grew in all geographic
regions with the U.S. and Canada
growing at 6%, EMEA at 1%, Asia at
7% and Latin America at
14%."
Commenting on full year 2024 results, Dr. Khandpur said, "I'm
also very pleased to finish with full year adjusted EPS of
$2.66, reflecting a 13% increase over
the prior year. We grew organic sales in each of the regions with
both our Color, Additives and Inks and Specialty Engineered
Materials segments growing at 3% and 6%, respectively, while
expanding adjusted EBITDA margins 90 and 110 basis points,
respectively, over 2023."
"Our goal was to generate organic sales growth with margin
expansion, and we delivered both in 2024," said Dr. Khandpur. "By
continuing to focus on our customers, our team achieved these
results against a choppy macro environment."
Dr. Khandpur added, "In addition, our 2024 safety performance
represented the safest year in company history and evidenced that
we'll continue to build upon the many proven foundational strengths
of Avient as we execute our new strategy."
2025 Outlook
"As we shared at our Investor Day in December, we laid out a
path to grow organic sales 100 – 200 basis points above GDP with
margin expansion by intersecting high growth markets and secular
trends with our technologies to create platforms that scale," said
Jamie Beggs, Senior Vice President
and Chief Financial Officer, Avient Corporation. "As we begin 2025,
we are poised to execute our strategy to deliver value for our
shareholders by prioritizing our portfolio, amplifying innovation,
leveraging digital technologies and harnessing the collective
strengths of our more than 9,000 global employees."
"Looking ahead, we are projecting first quarter adjusted EPS to
be $0.76, which is in-line with the
prior year quarter and includes a $0.04 foreign exchange headwind due to the
stronger U.S. dollar," added Ms. Beggs. "This translates to 6%
adjusted EPS growth, excluding the impact of foreign exchange, and
an encouraging start to the year, especially considering the
outsized timing of defense orders that benefited the first quarter
last year."
"The current macro environment presents several uncertainties
related to policy, inflation, foreign exchange and interest rates
which provides for a broader set of potential outcomes for the
year," Ms. Beggs said. "Our best full year forecast using present
information is an adjusted EBITDA range of $540 to $570
million and adjusted EPS range of $2.70 to $2.94. The
mid-point of the adjusted EPS range of $2.82 represents 11% growth, excluding the
unfavorable impact from foreign exchange of $0.12 for the full year."
Dr. Khandpur added, "Despite the near-term uncertainties in the
macro environment, we remain focused on what we can control:
staying close to our customers and executing our strategy. Building
off our strong performance in 2024, I remain optimistic in our
team's ability to achieve the long-term financial targets we shared
at Investor Day last December."
Webcast Details
Avient will provide additional details on its 2024 fourth
quarter and full year results, as well as its 2025 full year
outlook during its webcast scheduled for 8:00 a.m. Eastern Time on February 13, 2025.
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 number and
personal PIN. This information is 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 organic performance (which excludes the impact of
foreign exchange), adjusted EPS, adjusted operating income,
adjusted EBITDA, adjusted EBITDA margins, free cash flow and
adjusted free cash flow. 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 and associated recoveries,
mark-to-market adjustments on pension and other post-retirement
obligations, acquisition-related charges, 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
Our purpose at Avient Corporation (NYSE: AVNT) is to be an
innovator of materials solutions that help our customers succeed,
while enabling a sustainable world. Our local touch and customer
engagement, combined with our global presence, allows us to serve
customers with agility. We harness the collective strength of more
than 9,000 employees worldwide to collaborate and build on each
other's ideas. In doing so, we innovate solutions that help our
customers overcome their challenges or capitalize on opportunities
provided by the fast-changing world and secular trends. Our
expanding portfolio of offerings includes colorants, advanced
composites, functional additives, engineered materials, and
Dyneema®, the world's strongest fiber™. By intersecting our broad
portfolio of technologies with the product roadmaps of our
customers, we help create differentiated and high-performance
products that make the world better and more sustainable. Visit
www.avient.com to learn more.
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; disruptions or
inefficiencies in our supply chain, logistics, or operations;
changes in laws and regulations in jurisdictions where we conduct
business, including with respect to plastics and climate change;
fluctuations in raw material prices, quality and supply, and in
energy prices and supply; demand for our products and services;
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 pay regular quarterly cash
dividends and the amounts and timing of any future dividends;
information systems failures and cyberattacks; our ability to
service our indebtedness and restrictions on our current and future
operations due to our indebtedness; 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, geopolitical conflicts 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
December
31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Sales
|
$
746.5
|
|
$
719.0
|
|
$
3,240.4
|
|
$
3,142.8
|
|
Operating
income
|
85.6
|
|
43.1
|
|
329.3
|
|
196.8
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
48.3
|
|
27.8
|
|
169.5
|
|
75.8
|
|
Diluted earnings per
share from continuing operations attributable to
Avient shareholders
|
$
0.52
|
|
$
0.30
|
|
$
1.84
|
|
$
0.83
|
|
|
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 strategic shift to an innovator of materials solutions, 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 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
December 31,
|
|
2024
|
|
2023
|
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS(1)
|
|
$
|
|
EPS(1)
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
48.3
|
|
$
0.52
|
|
$
27.8
|
|
$
0.30
|
|
Special items,
after-tax (Attachment 3)
|
(18.0)
|
|
(0.20)
|
|
5.4
|
|
0.06
|
|
Amortization expense,
after-tax
|
14.8
|
|
0.17
|
|
15.0
|
|
0.16
|
|
Adjusted net income /
EPS
|
$
45.1
|
|
$
0.49
|
|
$
48.2
|
|
$
0.52
|
|
|
|
(1)
|
Per share amounts
may not recalculate from figures presented herein due to
rounding
|
|
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS(1)
|
|
$
|
|
EPS(1)
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
169.5
|
|
$
1.84
|
|
$
75.8
|
|
$
0.83
|
|
Special items,
after-tax (Attachment 3)
|
15.9
|
|
0.17
|
|
79.3
|
|
0.86
|
|
Amortization expense,
after-tax
|
59.5
|
|
0.65
|
|
61.5
|
|
0.67
|
|
Adjusted net income /
EPS
|
$
244.9
|
|
$
2.66
|
|
$
216.6
|
|
$
2.36
|
|
|
|
(1)
|
Per share amounts
may not recalculate from figures presented herein due to
rounding
|
|
Attachment
2
|
|
|
Avient
Corporation
|
|
Condensed
Consolidated Statements of Income (Unaudited)
|
|
(In millions, except
per share data)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Sales
|
$
746.5
|
|
$
719.0
|
|
$
3,240.4
|
|
$
3,142.8
|
|
Cost of
sales
|
487.0
|
|
510.1
|
|
2,183.7
|
|
2,250.3
|
|
Gross margin
|
259.5
|
|
208.9
|
|
1,056.7
|
|
892.5
|
|
Selling and
administrative expense
|
173.9
|
|
165.8
|
|
727.4
|
|
695.7
|
|
Operating
income
|
85.6
|
|
43.1
|
|
329.3
|
|
196.8
|
|
Interest expense,
net
|
(25.5)
|
|
(26.8)
|
|
(105.6)
|
|
(115.3)
|
|
Other income,
net
|
3.2
|
|
4.3
|
|
1.1
|
|
5.8
|
|
Income from continuing
operations before income taxes
|
63.3
|
|
20.6
|
|
224.8
|
|
87.3
|
|
Income tax (expense)
benefit
|
(14.8)
|
|
7.0
|
|
(54.1)
|
|
(11.0)
|
|
Net income from
continuing operations
|
48.5
|
|
27.6
|
|
170.7
|
|
76.3
|
|
Income (loss) from
discontinued operations, net of income taxes
|
—
|
|
0.8
|
|
—
|
|
(0.1)
|
|
Net income
|
48.5
|
|
28.4
|
|
170.7
|
|
76.2
|
|
Net (income) loss
attributable to noncontrolling interests
|
(0.2)
|
|
0.2
|
|
(1.2)
|
|
(0.5)
|
|
Net income attributable
to Avient common shareholders
|
$
48.3
|
|
$
28.6
|
|
$
169.5
|
|
$
75.7
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Avient common shareholders - Basic:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.53
|
|
$
0.30
|
|
$
1.86
|
|
$
0.83
|
|
Discontinued
operations
|
—
|
|
0.01
|
|
—
|
|
—
|
|
Total
|
$
0.53
|
|
$
0.31
|
|
$
1.86
|
|
$
0.83
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Avient common shareholders - Diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.52
|
|
$
0.30
|
|
$
1.84
|
|
$
0.83
|
|
Discontinued
operations
|
—
|
|
0.01
|
|
—
|
|
—
|
|
Total
|
$
0.52
|
|
$
0.31
|
|
$
1.84
|
|
$
0.83
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share of common stock
|
$ 0.2700
|
|
$ 0.2575
|
|
$ 1.0425
|
|
$ 1.0000
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used to compute earnings per common share:
|
|
|
|
|
|
|
|
|
Basic
|
91.4
|
|
91.2
|
|
91.3
|
|
91.1
|
|
Diluted
|
92.2
|
|
91.9
|
|
92.0
|
|
91.8
|
|
Attachment
3
|
|
|
Avient
Corporation
|
|
Summary of Special
Items (Unaudited)
|
|
(In millions, except
per share data)
|
|
|
Special items
(1)
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Restructuring costs,
including accelerated depreciation
|
$
(4.6)
|
|
$
(2.0)
|
|
$
1.0
|
|
$ (11.9)
|
|
Environmental
remediation costs
|
(6.8)
|
|
(17.2)
|
|
(35.0)
|
|
(69.7)
|
|
Reimbursement of
previously incurred environmental costs
|
34.7
|
|
1.6
|
|
34.7
|
|
1.6
|
|
Impact on cost of
sales
|
23.3
|
|
(17.6)
|
|
0.7
|
|
(80.0)
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
|
|
|
|
|
Restructuring and
employee separation costs
|
(2.6)
|
|
(1.1)
|
|
(9.2)
|
|
(14.9)
|
|
Legal and
other
|
(0.3)
|
|
(6.1)
|
|
(10.4)
|
|
(15.2)
|
|
Acquisition related
costs
|
—
|
|
(1.3)
|
|
(2.5)
|
|
(5.9)
|
|
Impact on selling and
administrative expense
|
(2.9)
|
|
(8.5)
|
|
(22.1)
|
|
(36.0)
|
|
|
|
|
|
|
|
|
|
Impact on operating
income
|
20.4
|
|
(26.1)
|
|
(21.4)
|
|
(116.0)
|
|
|
|
|
|
|
|
|
|
Interest expense, net
- financing costs
|
—
|
|
(0.1)
|
|
(2.3)
|
|
(2.3)
|
|
|
|
|
|
|
|
|
|
Pension and post
retirement mark-to-market adjustments and other
|
3.5
|
|
3.8
|
|
3.6
|
|
3.7
|
|
Impact on other
income, net
|
3.5
|
|
3.8
|
|
3.6
|
|
3.7
|
|
|
|
|
|
|
|
|
|
Impact on income from
continuing operations before income taxes
|
23.9
|
|
(22.4)
|
|
(20.1)
|
|
(114.6)
|
|
Income tax (expense)
benefit on above special items
|
(5.8)
|
|
4.5
|
|
6.1
|
|
27.7
|
|
Tax
adjustments(2)
|
(0.1)
|
|
12.5
|
|
(1.9)
|
|
7.6
|
|
Impact of special
items on net income from continuing operations
|
$
18.0
|
|
$
(5.4)
|
|
$ (15.9)
|
|
$ (79.3)
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share impact
|
$
0.20
|
|
$
(0.06)
|
|
$ (0.17)
|
|
$ (0.86)
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute adjusted earnings per share:
|
|
|
|
|
|
|
|
|
Diluted
|
92.2
|
|
91.9
|
|
92.0
|
|
91.8
|
|
|
|
(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 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 and certain
adjustments to uncertain tax position reserves and valuation
allowances.
|
|
Attachment
4
|
|
|
Avient
Corporation
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(In
millions)
|
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
544.5
|
|
$
545.8
|
|
Accounts receivable,
net
|
399.5
|
|
399.9
|
|
Inventories,
net
|
346.8
|
|
347.0
|
|
Other current
assets
|
131.3
|
|
114.9
|
|
Total current
assets
|
1,422.1
|
|
1,407.6
|
|
Property,
net
|
955.3
|
|
1,028.9
|
|
Goodwill
|
1,659.7
|
|
1,719.3
|
|
Intangible assets,
net
|
1,450.4
|
|
1,590.8
|
|
Operating lease assets,
net
|
89.1
|
|
65.3
|
|
Deferred income tax
assets
|
81.3
|
|
92.3
|
|
Other non-current
assets
|
153.2
|
|
64.3
|
|
Total
assets
|
$
5,811.1
|
|
$
5,968.5
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term and current
portion of long-term debt
|
$
7.7
|
|
$
9.5
|
|
Accounts
payable
|
417.4
|
|
432.3
|
|
Accrued expenses and
other current liabilities
|
331.0
|
|
331.8
|
|
Total current
liabilities
|
756.1
|
|
773.6
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
2,059.3
|
|
2,070.5
|
|
Deferred income
taxes
|
260.4
|
|
281.6
|
|
Other non-current
liabilities
|
405.7
|
|
504.8
|
|
Total non-current
liabilities
|
2,725.4
|
|
2,856.9
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Avient shareholders'
equity
|
2,313.8
|
|
2,319.2
|
|
Noncontrolling
interest
|
15.8
|
|
18.8
|
|
Total
equity
|
2,329.6
|
|
2,338.0
|
|
Total liabilities
and equity
|
$
5,811.1
|
|
$
5,968.5
|
|
Attachment
5
|
|
|
Avient
Corporation
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
(In
millions)
|
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
Operating
activities
|
|
|
|
|
Net income
|
$
170.7
|
|
$
76.2
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
179.7
|
|
188.8
|
|
Increase in
environmental insurance receivable
|
(34.0)
|
|
—
|
|
Deferred income tax
benefit
|
(23.8)
|
|
(61.3)
|
|
Share-based
compensation expense
|
15.4
|
|
13.2
|
|
Changes in assets and
liabilities, net of the effect of acquisitions:
|
|
|
|
|
(Increase) decrease in
accounts receivable
|
(15.2)
|
|
38.6
|
|
(Increase) decrease in
inventories
|
(13.7)
|
|
24.3
|
|
Increase (decrease) in
accounts payable
|
0.3
|
|
(22.2)
|
|
Decrease in pension,
retirement benefits and deferred compensation
|
(34.3)
|
|
(8.7)
|
|
Taxes paid on gain on
sale of business
|
—
|
|
(104.1)
|
|
(Decrease) increase in
environmental obligations
|
(11.2)
|
|
38.9
|
|
Accrued expenses and
other assets and liabilities, net
|
22.9
|
|
17.9
|
|
Net cash provided by
operating activities
|
256.8
|
|
201.6
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
(121.9)
|
|
(119.4)
|
|
Net proceeds from
divestiture
|
—
|
|
7.3
|
|
Proceeds from plant
closures
|
3.4
|
|
7.6
|
|
Other investing
activities
|
(2.1)
|
|
10.3
|
|
Net cash used by
investing activities
|
(120.6)
|
|
(94.2)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from long-term
borrowings
|
650.0
|
|
—
|
|
Payments on long-term
borrowings
|
(660.9)
|
|
(105.8)
|
|
Cash dividends
paid
|
(94.0)
|
|
(90.2)
|
|
Payments on withholding
tax on share awards
|
(6.4)
|
|
(3.4)
|
|
Debt financing
costs
|
(9.6)
|
|
(2.3)
|
|
Net cash used by
financing activities
|
(120.9)
|
|
(201.7)
|
|
Effect of exchange rate
changes on cash
|
(16.6)
|
|
(1.0)
|
|
Decrease in cash and
cash equivalents
|
(1.3)
|
|
(95.3)
|
|
Cash and cash
equivalents at beginning of year
|
545.8
|
|
641.1
|
|
Cash and cash
equivalents at end of year
|
$
544.5
|
|
$
545.8
|
|
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
December
31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Sales:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
467.7
|
|
$
459.4
|
|
$
2,046.5
|
|
$
2,007.4
|
|
Specialty
Engineered Materials
|
279.7
|
|
259.8
|
|
1,196.8
|
|
1,138.2
|
|
Corporate
|
(0.9)
|
|
(0.2)
|
|
(2.9)
|
|
(2.8)
|
|
Sales
|
$
746.5
|
|
$
719.0
|
|
$
3,240.4
|
|
$
3,142.8
|
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
152.6
|
|
$
148.3
|
|
$
681.1
|
|
$
631.2
|
|
Specialty
Engineered Materials
|
84.2
|
|
78.1
|
|
374.9
|
|
341.8
|
|
Corporate
|
22.7
|
|
(17.5)
|
|
0.7
|
|
(80.5)
|
|
Gross
margin
|
$
259.5
|
|
$
208.9
|
|
$
1,056.7
|
|
$
892.5
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
92.8
|
|
$
86.5
|
|
$
384.9
|
|
$
371.3
|
|
Specialty
Engineered Materials
|
49.6
|
|
48.7
|
|
207.7
|
|
199.3
|
|
Corporate
|
31.5
|
|
30.6
|
|
134.8
|
|
125.1
|
|
Selling and
administrative expense
|
$
173.9
|
|
$
165.8
|
|
$
727.4
|
|
$
695.7
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
59.8
|
|
$
61.8
|
|
$
296.2
|
|
$
259.9
|
|
Specialty
Engineered Materials
|
34.6
|
|
29.4
|
|
167.2
|
|
142.5
|
|
Corporate
|
(8.8)
|
|
(48.1)
|
|
(134.1)
|
|
(205.6)
|
|
Operating
income
|
$
85.6
|
|
$
43.1
|
|
$
329.3
|
|
$
196.8
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
Color, Additives and
Inks
|
$
21.9
|
|
$
22.2
|
|
$
87.5
|
|
$
98.3
|
|
Specialty Engineered
Materials
|
21.0
|
|
19.8
|
|
82.1
|
|
81.5
|
|
Corporate
|
2.5
|
|
2.2
|
|
10.1
|
|
9.0
|
|
Depreciation and
amortization
|
$
45.4
|
|
$
44.2
|
|
$
179.7
|
|
$
188.8
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and
amortization (EBITDA):
|
|
|
|
|
|
|
|
|
Color, Additives and
Inks
|
$
81.7
|
|
$
84.0
|
|
$
383.7
|
|
$
358.2
|
|
Specialty Engineered
Materials
|
55.6
|
|
49.2
|
|
249.3
|
|
224.0
|
|
Corporate
|
(6.3)
|
|
(45.9)
|
|
(124.0)
|
|
(196.6)
|
|
Other income,
net
|
3.2
|
|
4.3
|
|
1.1
|
|
5.8
|
|
EBITDA from continuing
operations
|
$
134.2
|
|
$
91.6
|
|
$
510.1
|
|
$
391.4
|
|
Special items, before
tax
|
(23.9)
|
|
22.4
|
|
20.1
|
|
114.6
|
|
Interest expense
included in special items
|
—
|
|
(0.1)
|
|
(2.3)
|
|
(2.3)
|
|
Depreciation and
amortization included in special items
|
(0.3)
|
|
—
|
|
(1.5)
|
|
(1.9)
|
|
Adjusted
EBITDA
|
$
110.0
|
|
$
113.9
|
|
$
526.4
|
|
$
501.8
|
|
Attachment
7
|
|
|
Avient
Corporation
|
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
|
(In millions, except
per share data)
|
|
|
Senior management uses
operating income before special items to assess performance and
allocate resources because senior management believes
that this measure is most 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 this measure is useful to
investors because it allows 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
December
31,
|
|
Year
Ended
December
31,
|
|
Reconciliation to
Consolidated Statements of Income:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Sales
|
$ 746.5
|
|
$ 719.0
|
|
$
3,240.4
|
|
$
3,142.8
|
|
|
|
|
|
|
|
|
|
Gross margin -
GAAP
|
259.5
|
|
208.9
|
|
1,056.7
|
|
892.5
|
|
Special items in gross
margin (Attachment 3)
|
(23.3)
|
|
17.6
|
|
(0.7)
|
|
80.0
|
|
Adjusted gross
margin
|
$ 236.2
|
|
$ 226.5
|
|
$
1,056.0
|
|
$ 972.5
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin
as a percent of sales
|
31.6 %
|
|
31.5 %
|
|
32.6 %
|
|
30.9 %
|
|
|
|
|
|
|
|
|
|
Operating income -
GAAP
|
85.6
|
|
43.1
|
|
329.3
|
|
196.8
|
|
Special items in
operating income (Attachment 3)
|
(20.4)
|
|
26.1
|
|
21.4
|
|
116.0
|
|
Adjusted operating
income
|
$
65.2
|
|
$
69.2
|
|
$ 350.7
|
|
$ 312.8
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income as a percent of sales
|
8.7 %
|
|
9.6 %
|
|
10.8 %
|
|
10.0 %
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
Reconciliation to
EBITDA and Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income from
continuing operations – GAAP
|
$
48.5
|
|
$
27.6
|
|
$ 170.7
|
|
$
76.3
|
|
Income tax expense
(benefit)
|
14.8
|
|
(7.0)
|
|
54.1
|
|
11.0
|
|
Interest
expense
|
25.5
|
|
26.8
|
|
105.6
|
|
115.3
|
|
Depreciation and
amortization from continuing operations
|
45.4
|
|
44.2
|
|
179.7
|
|
188.8
|
|
EBITDA from continuing
operations
|
$ 134.2
|
|
$
91.6
|
|
$ 510.1
|
|
$ 391.4
|
|
Special items, before
tax
|
(23.9)
|
|
22.4
|
|
20.1
|
|
114.6
|
|
Interest expense
included in special items
|
—
|
|
(0.1)
|
|
(2.3)
|
|
(2.3)
|
|
Depreciation and
amortization included in special items
|
(0.3)
|
|
—
|
|
(1.5)
|
|
(1.9)
|
|
Adjusted
EBITDA
|
$ 110.0
|
|
$ 113.9
|
|
$ 526.4
|
|
$ 501.8
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
percent of sales
|
14.7 %
|
|
15.8 %
|
|
16.2 %
|
|
16.0 %
|
|
|
Three Months Ended
March 31, 2024
|
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS(1)
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
49.4
|
|
$
0.54
|
|
Special items,
after-tax
|
5.5
|
|
0.06
|
|
Amortization expense,
after-tax
|
14.9
|
|
0.16
|
|
Adjusted net income /
EPS
|
$
69.8
|
|
$
0.76
|
|
|
(1) Per share amounts may not
recalculate from figures presented herein due to
rounding
|
|
|
Year Ended December
31,
|
|
Adjusted Free Cash
Flow Calculation
|
2024
|
|
2023
|
|
Cash provided by
operating activities
|
$
256.8
|
|
$
201.6
|
|
Taxes paid on gain on
sale of business
|
—
|
|
104.1
|
|
One-time payout
associated with deferred compensation plans
|
20.8
|
|
—
|
|
Adjusted cash provided
by operating activities
|
$
277.6
|
|
$
305.7
|
|
Capital
expenditures
|
(121.9)
|
|
(119.4)
|
|
Adjusted free cash
flow
|
$
155.7
|
|
$
186.3
|
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SOURCE Avient Corporation
