Avient Announces Second Quarter 2024 Results
Avient (NYSE: AVNT) reported strong second quarter 2024 results, with sales growing to $850 million, a 3% increase over the prior year quarter and a 5% organic increase excluding foreign exchange impact. GAAP EPS from continuing operations was $0.36, compared to $0.24 in the prior year quarter. Adjusted EPS of $0.76 exceeded guidance of $0.71 and increased 21% over the prior year quarter.
The company has increased its 2024 full-year adjusted EPS guidance range to $2.55 to $2.70, reflecting 8% to 14% growth over the prior year. Avient also announced the release of its 2023 Sustainability Report and plans to hold an Investor Day on December 4th in New York City to highlight company strategy.
Avient (NYSE: AVNT) ha riportato forti risultati del secondo trimestre 2024, con vendite in crescita a $850 milioni, un aumento del 3% rispetto allo stesso trimestre dell'anno precedente e un aumento organico del 5%, escludendo l'impatto dei cambi. GAAP EPS dalle operazioni continuative è stato di $0,36, rispetto a $0,24 nello stesso trimestre dell'anno precedente. Adjusted EPS di $0,76 ha superato le previsioni di $0,71 e ha registrato un incremento del 21% rispetto allo stesso trimestre dell'anno scorso.
L'azienda ha aumentato il proprio range di previsione dell'EPS aggiustato per l'intero anno 2024 a $2,55-$2,70, riflettendo una crescita dell'8% al 14% rispetto all'anno precedente. Avient ha inoltre annunciato il rilascio del suo Rapporto sulla Sostenibilità 2023 e prevede di tenere un Investor Day il 4 dicembre a New York per evidenziare la strategia aziendale.
Avient (NYSE: AVNT) reportó sólidos resultados del segundo trimestre de 2024, con ventas que crecieron a $850 millones, un aumento del 3% en comparación con el mismo trimestre del año anterior y un crecimiento orgánico del 5%, excluyendo el impacto de las divisas. GAAP EPS de las operaciones continuas fue de $0,36, en comparación con $0,24 en el mismo trimestre del año anterior. EPS ajustado de $0,76 superó la guía de $0,71 y aumentó un 21% en comparación con el trimestre del año pasado.
La empresa ha aumentado su rango de guía de EPS ajustado para todo el año 2024 a $2,55 a $2,70, lo que refleja un crecimiento del 8% al 14% en comparación con el año anterior. Avient también anunció la publicación de su Informe de Sostenibilidad 2023 y planea llevar a cabo un Día del Inversor el 4 de diciembre en Nueva York para resaltar la estrategia de la empresa.
Avient (NYSE: AVNT)는 강력한 2024년 2분기 실적을 보고하였으며, 매출이 8억 5천만 달러로 증가했습니다. 이는 전년 동기 대비 3% 증가한 수치이며, 외환 영향을 배제할 경우 5%의 유기적 증가를 보였습니다. GAAP EPS는 계속 운영에서 $0.36로, 전년 동기 대비 $0.24에서 증가하였습니다. 조정 EPS는 $0.76로, $0.71의 가이던스를 초과하였고, 전년 동기 대비 21% 증가했습니다.
회사는 2024년 전체 연도 조정 EPS 가이던스 범위를 $2.55에서 $2.70으로 상향 조정하였으며, 이는 전년 대비 8%에서 14%의 성장을 반영합니다. Avient는 또한 2023 지속 가능성 보고서의 발표와 함께 12월 4일 뉴욕에서 투자자 데이를 개최하여 회사 전략을 강조할 계획이라고 발표했습니다.
Avient (NYSE: AVNT) a rapporté de solides résultats pour le deuxième trimestre 2024, avec des ventes atteignant 850 millions de dollars, soit une augmentation de 3 % par rapport à l'année précédente et une augmentation organique de 5 % en excluant l'impact des taux de change. GAAP EPS des opérations continues s'élevait à 0,36 $, contre 0,24 $ au trimestre de l'année précédente. Adjusted EPS de 0,76 $ a dépassé les prévisions de 0,71 $ et a augmenté de 21 % par rapport au trimestre précédent.
L'entreprise a augmenté sa fourchette de prévisions de l'EPS ajusté pour l'année 2024 à 2,55 $ à 2,70 $, ce qui reflète une croissance de 8 % à 14 % par rapport à l'année précédente. Avient a également annoncé la publication de son Rapport sur la durabilité 2023 et prévoit de tenir un Jour des investisseurs le 4 décembre à New York pour mettre en avant la stratégie de l'entreprise.
Avient (NYSE: AVNT) hat starke Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit einem Umsatz von 850 Millionen Dollar, was einem Anstieg von 3% im Vergleich zum Vorjahresquartal und einem organischen Anstieg von 5% ohne Währungsumrechnungsgewinne entspricht. GAAP EPS aus fortgeführten Geschäftsbereichen betrug $0,36, verglichen mit $0,24 im Vorjahresquartal. Adjusted EPS von $0,76 übertraf die Prognose von $0,71 und stieg um 21% im Vergleich zum Vorjahresquartal.
Das Unternehmen hat seinen Prognosenbereich für das bereinigte EPS für das gesamte Jahr 2024 auf $2,55 bis $2,70 angehoben, was ein Wachstum von 8% bis 14% im Vergleich zum Vorjahr widerspiegelt. Avient gab außerdem die Veröffentlichung seines Nachhaltigkeitsberichts 2023 bekannt und plant, am 4. Dezember in New York City einen Investorentag abzuhalten, um die Unternehmensstrategie hervorzuheben.
- Sales grew to $850 million, a 3% increase over the prior year quarter and 5% organic increase
- Adjusted EPS of $0.76 exceeded guidance of $0.71 and increased 21% over prior year quarter
- Increased 2024 full-year adjusted EPS guidance range to $2.55 to $2.70, reflecting 8% to 14% growth
- Organic sales growth across all regions: US and Canada 5%, Latin America 19%, EMEA 4%, Asia 1%
- Revised full-year guidance for adjusted EBITDA to $515 million to $540 million
- None.
Insights
Avient's Q2 2024 results demonstrate solid performance with 3% sales growth to
The raised full-year adjusted EPS guidance (
Avient's Q2 results reveal encouraging trends across regions:
- US and Canada:
5% organic sales growth - Latin America: Impressive
19% organic sales growth - EMEA:
4% organic sales growth - Asia:
1% organic sales growth
Avient's release of its 2023 Sustainability Report, coupled with improved ESG ratings (EcoVadis Gold and CDP A-), underscores the company's commitment to sustainability. This focus aligns with growing investor interest in ESG factors and could positively impact the company's valuation and access to capital.
Moreover, Avient's emphasis on sustainability as a growth driver, enabling customers to achieve their own sustainability goals, positions the company well in an increasingly environmentally conscious market. This strategy could lead to increased customer loyalty and potentially higher margins for sustainable solutions, contributing to long-term value creation for shareholders.
- Second quarter sales grew to
$850 million 3% increase over the prior year quarter and a5% organic increase when excluding the impact of foreign exchange - Second quarter GAAP EPS from continuing operations of
$0.36 $0.24 - Second quarter adjusted EPS of
$0.76 $0.71 21% over prior year quarter, driven by organic revenue growth in all regions, favorable input costs and lower interest expense - Increasing 2024 full-year adjusted EPS guidance range to
$2.55 $2.70 $2.50 $2.65 8% to14% growth in adjusted EPS over the prior year - 2023 Sustainability Report published online, detailing progress toward 2030 Sustainability Goals and ESG performance ratings
- Investor Day to be held December 4th in
New York City to highlight the company strategy
Second quarter GAAP earnings per share (EPS) from continuing operations was
"Building on the positive start to the year, we delivered a strong second quarter, highlighted by broad-based growth across all regions and most end markets," said Dr. Ashish Khandpur, President and Chief Executive Officer of Avient Corporation. "Consolidated sales expanded for the first time in seven quarters with contributions from both our Color, Additives and Inks, and Specialty Engineered Materials segments. This performance reflects our team's focus to capitalize on growth opportunities across the many end markets we serve, with particular success this quarter in packaging and consumer, our two largest end markets."
Dr. Khandpur added, "On a geographic basis, all regions delivered year-over-year organic sales growth. The US and
2024 Outlook
"Looking ahead to the third quarter, we expect adjusted EPS of
Ms. Beggs continued, "Our demand outlook for the second half of the year remains largely unchanged from our previous outlook in May, so we are updating our full-year guidance to reflect the strong second quarter results. Accordingly, our revised full-year guidance for adjusted EBITDA is now
"I'm pleased with how we have delivered during the first half of the year," added Dr. Khandpur. "As we look to the second half, we expect growth momentum to continue with our teams focused on providing innovative materials and processing solutions to solve our customers' challenges to enable a sustainable world. I look forward to sharing more details in our third quarter earnings call and at our upcoming investor day in
Sustainability Report Release
The company also announced the release of its latest Sustainability Report, now available at www.avient.com/sustainability.
The report provides an update on Avient's contributions and impact in creating a more sustainable future, including progress that the company has made towards its 2030 goals.
"We're extremely proud to share our latest achievements in this year's report, particularly our upgraded ratings by Ecovadis to Gold and by CDP to A-. Sustainability is a responsibility we have to all of our stakeholders, and it is a growth driver for our company as we enable our customers to achieve their sustainability goals, ultimately creating value for our shareholders," explained Ms. Beggs.
Webcast Details
Avient will provide additional details on its 2024 second quarter and 2024 full-year outlook during its webcast scheduled for 8:00 a.m. Eastern Time on August 6, 2024.
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 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 adjusted EPS, adjusted operating income, adjusted EBITDA and adjusted EBITDA margins. 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-events.
About Avient
Avient Corporation (NYSE: AVNT) provides specialized and sustainable materials 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; 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; 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; our ability to achieve strategic objectives and successfully integrate acquisitions, including the implementation of a cloud-based enterprise resource planning system, S/4HANA; 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 | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Sales | $ 849.7 | $ 824.4 | $ 1,678.7 | $ 1,670.1 | |||
Operating Income | 72.5 | 62.3 | 166.5 | 119.4 | |||
Net income from continuing operations attributable to Avient | 33.6 | 22.1 | 83.0 | 42.9 | |||
Diluted earnings per share from continuing operations attributable to Avient | $ 0.36 | $ 0.24 | $ 0.90 | $ 0.47 | |||
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 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, | |||||||
2024 | 2023 | ||||||
Reconciliation to Condensed Consolidated Statements of Income | $ | EPS | $ | EPS | |||
Net income from continuing operations attributable to Avient shareholders | $ 33.6 | $ 0.36 | $ 22.1 | $ 0.24 | |||
Special items, after-tax (Attachment 3) | 21.8 | 0.24 | 19.6 | 0.21 | |||
Amortization expense, after-tax | 14.8 | 0.16 | 16.2 | 0.18 | |||
Adjusted net income / EPS | $ 70.2 | $ 0.76 | $ 57.9 | $ 0.63 | |||
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
Reconciliation to Condensed Consolidated Statements of Income | $ | EPS | $ | EPS | |||
Net income from continuing operations attributable to Avient shareholders | $ 83.0 | $ 0.90 | $ 42.9 | $ 0.47 | |||
Special items, after-tax (Attachment 3) | 27.3 | 0.30 | 41.9 | 0.46 | |||
Amortization expense, after-tax | 29.7 | 0.32 | 31.3 | 0.34 | |||
Adjusted net income / EPS | $ 140.0 | $ 1.52 | $ 116.1 | $ 1.27 | |||
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Sales | $ 849.7 | $ 824.4 | $ 1,678.7 | $ 1,670.1 | |||
Cost of sales | 592.1 | 583.7 | 1,142.9 | 1,181.8 | |||
Gross margin | 257.6 | 240.7 | 535.8 | 488.3 | |||
Selling and administrative expense | 185.1 | 178.4 | 369.3 | 368.9 | |||
Operating income | 72.5 | 62.3 | 166.5 | 119.4 | |||
Interest expense, net | (26.6) | (29.4) | (53.2) | (58.2) | |||
Other (expense) income, net | (0.9) | (0.2) | (1.8) | 0.5 | |||
Income from continuing operations before income taxes | 45.0 | 32.7 | 111.5 | 61.7 | |||
Income tax expense | (11.2) | (10.4) | (28.0) | (18.1) | |||
Net income from continuing operations | 33.8 | 22.3 | 83.5 | 43.6 | |||
Loss from discontinued operations, net of income taxes | — | — | — | (0.9) | |||
Net income | $ 33.8 | $ 22.3 | $ 83.5 | $ 42.7 | |||
Net income attributable to noncontrolling interests | (0.2) | (0.2) | (0.5) | (0.7) | |||
Net income attributable to Avient common shareholders | $ 33.6 | $ 22.1 | $ 83.0 | $ 42.0 | |||
Earnings (loss) per share attributable to Avient common shareholders - Basic: | |||||||
Continuing operations | $ 0.37 | $ 0.24 | $ 0.91 | $ 0.47 | |||
Discontinued operations | — | — | — | (0.01) | |||
Total | $ 0.37 | $ 0.24 | $ 0.91 | $ 0.46 | |||
Earnings (loss) per share attributable to Avient common shareholders - Diluted: | |||||||
Continuing operations | $ 0.36 | $ 0.24 | $ 0.90 | $ 0.47 | |||
Discontinued operations | — | — | — | (0.01) | |||
Total | $ 0.36 | $ 0.24 | $ 0.90 | $ 0.46 | |||
Cash dividends declared per share of common stock | $ 0.2575 | $ 0.2475 | $ 0.5150 | $ 0.4950 | |||
Weighted-average shares used to compute earnings per common share: | |||||||
Basic | 91.3 | 91.1 | 91.3 | 91.1 | |||
Diluted | 92.2 | 91.9 | 92.0 | 91.9 | |||
Attachment 3 | |||||||
Avient Corporation | |||||||
Summary of Special Items (Unaudited) | |||||||
(In millions, except per share data) | |||||||
Special items (1) | Three Months Ended | Six Months Ended | |||||
2024 | 2023 | 2024 | 2023 | ||||
Cost of sales: | |||||||
Restructuring costs, including accelerated depreciation | $ 0.2 | $ (1.2) | $ 3.8 | $ (7.8) | |||
Environmental remediation costs | (21.8) | (13.0) | (25.8) | (14.4) | |||
Impact on cost of sales | (21.6) | (14.2) | (22.0) | (22.2) | |||
Selling and administrative expense: | |||||||
Restructuring and employee separation costs | (2.8) | (0.5) | (3.5) | (11.9) | |||
Legal and other | (2.3) | (6.4) | (5.8) | (10.6) | |||
Acquisition related costs | (0.5) | (0.7) | (2.1) | (4.2) | |||
Impact on selling and administrative expense | (5.6) | (7.6) | (11.4) | (26.7) | |||
Impact on operating income | (27.2) | (21.8) | (33.4) | (48.9) | |||
Interest expense, net - financing costs | (1.0) | — | (1.0) | — | |||
Other income (loss) | 0.1 | 0.1 | 0.1 | (0.1) | |||
Impact on income from continuing operations before income taxes | (28.1) | (21.7) | (34.3) | (49.0) | |||
Income tax benefit on above special items | 7.0 | 5.5 | 8.4 | 12.4 | |||
Tax adjustments(2) | (0.7) | (3.4) | (1.4) | (5.3) | |||
Impact of special items on net income from continuing operations | $ (21.8) | $ (19.6) | $ (27.3) | $ (41.9) | |||
Diluted earnings per common share impact | $ (0.24) | $ (0.21) | $ (0.30) | $ (0.46) | |||
Weighted average shares used to compute adjusted earnings per share: | |||||||
Diluted | 92.2 | 91.9 | 92.0 | 91.9 | |||
(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, 2024 | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 489.4 | $ 545.8 | |
Accounts receivable, net | 486.6 | 399.9 | |
Inventories, net | 365.9 | 347.0 | |
Other current assets | 117.2 | 114.9 | |
Total current assets | 1,459.1 | 1,407.6 | |
Property, net | 1,019.9 | 1,028.9 | |
Goodwill | 1,685.1 | 1,719.3 | |
Intangible assets, net | 1,515.7 | 1,590.8 | |
Other non-current assets | 228.0 | 221.9 | |
Total assets | $ 5,907.8 | $ 5,968.5 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term and current portion of long-term debt | $ 657.7 | $ 9.5 | |
Accounts payable | 435.2 | 432.3 | |
Accrued expenses and other current liabilities | 405.3 | 331.8 | |
Total current liabilities | 1,498.2 | 773.6 | |
Non-current liabilities: | |||
Long-term debt | 1,420.8 | 2,070.5 | |
Pension and other post-retirement benefits | 63.3 | 67.2 | |
Deferred income taxes | 276.3 | 281.6 | |
Other non-current liabilities | 315.0 | 437.6 | |
Total non-current liabilities | 2,075.4 | 2,856.9 | |
SHAREHOLDERS' EQUITY | |||
Avient shareholders' equity | 2,317.5 | 2,319.2 | |
Noncontrolling interest | 16.7 | 18.8 | |
Total equity | 2,334.2 | 2,338.0 | |
Total liabilities and equity | $ 5,907.8 | $ 5,968.5 | |
Attachment 5 | |||
Avient Corporation | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
(In millions) | |||
Six Months Ended June 30, | |||
2024 | 2023 | ||
Operating Activities | |||
Net income | $ 83.5 | $ 42.7 | |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 88.4 | 96.2 | |
Accelerated depreciation | 0.8 | 1.9 | |
Share-based compensation expense | 9.0 | 6.5 | |
Changes in assets and liabilities: | |||
Increase in accounts receivable | (97.0) | (66.6) | |
(Increase) decrease in inventories | (27.3) | 14.0 | |
Increase (decrease) in accounts payable | 11.9 | (26.2) | |
Taxes paid on gain on sale of business | — | (103.0) | |
Accrued expenses and other assets and liabilities, net | (6.2) | 9.8 | |
Net cash provided (used) by operating activities | 63.1 | (24.7) | |
Investing activities | |||
Capital expenditures | (55.8) | (45.9) | |
Net proceeds from divestiture | — | 7.3 | |
Proceeds from plant closures | 3.4 | — | |
Other investing activities | (2.1) | — | |
Net cash used by investing activities | (54.5) | (38.6) | |
Financing activities | |||
Cash dividends paid | (47.0) | (45.0) | |
Repayment of long-term debt | (4.5) | (1.0) | |
Other financing activities | (3.3) | (2.3) | |
Net cash used by financing activities | (54.8) | (48.3) | |
Effect of exchange rate changes on cash | (10.2) | (0.8) | |
Decrease in cash and cash equivalents | (56.4) | (112.4) | |
Cash and cash equivalents at beginning of year | 545.8 | 641.1 | |
Cash and cash equivalents at end of period | $ 489.4 | $ 528.7 | |
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: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Sales: | |||||||
Color, Additives and Inks | $ 542.0 | $ 524.5 | $ 1,057.3 | $ 1,061.5 | |||
Specialty Engineered Materials | 308.1 | 300.8 | 622.5 | 610.5 | |||
Corporate | (0.4) | (0.9) | (1.1) | (1.9) | |||
Sales | $ 849.7 | $ 824.4 | $ 1,678.7 | $ 1,670.1 | |||
Gross margin: | |||||||
Color, Additives and Inks | $ 184.5 | $ 164.1 | $ 355.7 | $ 326.1 | |||
Specialty Engineered Materials | 94.7 | 91.5 | 201.7 | 185.4 | |||
Corporate | (21.6) | (14.9) | (21.6) | (23.2) | |||
Gross margin | $ 257.6 | $ 240.7 | $ 535.8 | $ 488.3 | |||
Selling and administrative expense: | |||||||
Color, Additives and Inks | $ 98.4 | $ 96.1 | $ 194.8 | $ 192.5 | |||
Specialty Engineered Materials | 51.9 | 51.8 | 105.5 | 102.6 | |||
Corporate | 34.8 | 30.5 | 69.0 | 73.8 | |||
Selling and administrative expense | $ 185.1 | $ 178.4 | $ 369.3 | $ 368.9 | |||
Operating income: | |||||||
Color, Additives and Inks | $ 86.1 | $ 68.0 | $ 160.9 | $ 133.6 | |||
Specialty Engineered Materials | 42.8 | 39.7 | 96.2 | 82.8 | |||
Corporate | (56.4) | (45.4) | (90.6) | (97.0) | |||
Operating income | $ 72.5 | $ 62.3 | $ 166.5 | $ 119.4 | |||
Depreciation & amortization: | |||||||
Color, Additives and Inks | $ 21.8 | $ 25.7 | $ 43.7 | $ 51.5 | |||
Specialty Engineered Materials | 20.8 | 19.9 | 40.4 | 41.1 | |||
Corporate | 2.3 | 2.0 | 5.1 | 5.5 | |||
Depreciation & amortization | $ 44.9 | $ 47.6 | $ 89.2 | $ 98.1 | |||
Earnings before interest, taxes, depreciation and | |||||||
Color, Additives and Inks | $ 107.9 | $ 93.7 | $ 204.6 | $ 185.1 | |||
Specialty Engineered Materials | 63.6 | 59.6 | 136.6 | 123.9 | |||
Corporate | (54.1) | (43.4) | (85.5) | (91.5) | |||
Other (expense) income, net | (0.9) | (0.2) | (1.8) | 0.5 | |||
EBITDA from continuing operations | $ 116.5 | $ 109.7 | $ 253.9 | $ 218.0 | |||
Special items, before tax | 28.1 | 21.7 | 34.3 | 49.0 | |||
Interest expense included in special items | (1.0) | — | (1.0) | — | |||
Depreciation & amortization included in special items | (0.3) | (0.1) | (0.8) | (1.9) | |||
Adjusted EBITDA | $ 143.3 | $ 131.3 | $ 286.4 | $ 265.1 | |||
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 | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
Reconciliation to Consolidated Statements of Income | 2024 | 2023 | 2024 | 2023 | |||
Sales | $ 849.7 | $ 824.4 | $ 1,678.7 | $ 1,670.1 | |||
Gross margin - GAAP | 257.6 | 240.7 | 535.8 | 488.3 | |||
Special items in gross margin (Attachment 3) | 21.6 | 14.2 | 22.0 | 22.2 | |||
Adjusted gross margin | $ 279.2 | $ 254.9 | $ 557.8 | $ 510.5 | |||
Adjusted gross margin as a percent of sales | 32.9 % | 30.9 % | 33.2 % | 30.6 % | |||
Operating income - GAAP | 72.5 | 62.3 | 166.5 | 119.4 | |||
Special items in operating income (Attachment 3) | 27.2 | 21.8 | 33.4 | 48.9 | |||
Adjusted operating income | $ 99.7 | $ 84.1 | $ 199.9 | $ 168.3 | |||
Adjusted operating income as a percent of sales | 11.7 % | 10.2 % | 11.9 % | 10.1 % | |||
Three Months Ended | Six Months Ended June 30, | ||||||
Reconciliation to EBITDA and Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||
Net income from continuing operations – GAAP | $ 33.8 | $ 22.3 | $ 83.5 | $ 43.6 | |||
Income tax expense | 11.2 | 10.4 | 28.0 | 18.1 | |||
Interest expense, net | 26.6 | 29.4 | 53.2 | 58.2 | |||
Depreciation & amortization | 44.9 | 47.6 | 89.2 | 98.1 | |||
EBITDA from continuing operations | $ 116.5 | $ 109.7 | $ 253.9 | $ 218.0 | |||
Special items, before tax | 28.1 | 21.7 | 34.3 | 49.0 | |||
Interest expense included in special items | (1.0) | — | (1.0) | — | |||
Depreciation & amortization included in special items | (0.3) | (0.1) | (0.8) | (1.9) | |||
Adjusted EBITDA | $ 143.3 | $ 131.3 | $ 286.4 | $ 265.1 | |||
Adjusted EBITDA as a percent of sales | 16.9 % | 15.9 % | 17.1 % | 15.9 % | |||
Year Ended December 31, 2023 | |||
Reconciliation to Condensed Consolidated Statements of Income | $ | EPS | |
Net income from continuing operations attributable to Avient shareholders | $ 75.8 | $ 0.83 | |
Special items, after-tax | 79.3 | 0.86 | |
Amortization expense, after-tax | 61.5 | 0.67 | |
Adjusted net income / EPS | $ 216.6 | $ 2.36 | |
Three Months Ended September 30, 2023 | |||
Reconciliation to Condensed Consolidated Statements of Income | $ | EPS | |
Net income from continuing operations attributable to Avient shareholders | $ 5.1 | $ 0.06 | |
Special items, after-tax | 32.0 | 0.35 | |
Amortization expense, after-tax | 15.2 | 0.16 | |
Adjusted net income / EPS | $ 52.3 | $ 0.57 | |
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SOURCE Avient Corporation
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