Avient Announces Third Quarter 2024 Results
Avient (AVNT) reported strong Q3 2024 results with sales reaching $815.2 million, an 8% increase from the prior year. GAAP EPS from continuing operations was $0.41, up from $0.06, while adjusted EPS reached $0.65, exceeding guidance of $0.62. The company saw organic growth across all regions, with Latin America and Asia showing notable increases of 27% and 11% respectively. The company narrowed its 2024 full-year adjusted EPS guidance to $2.63-$2.67, projecting 11-13% growth. Additionally, Avient increased its dividend by 5% to $1.08 annually, marking its fourteenth consecutive annual increase.
Avient (AVNT) ha riportato risultati positivi per il terzo trimestre del 2024, con vendite che hanno raggiunto 815,2 milioni di dollari, un aumento dell'8% rispetto all'anno precedente. L'EPS GAAP dalle operazioni continuative è stato di $0,41, in crescita rispetto a $0,06, mentre l'EPS rettificato ha raggiunto $0,65, superando le previsioni di $0,62. L'azienda ha registrato una crescita organica in tutte le regioni, con l'America Latina e l'Asia che hanno mostrato aumenti notevoli del 27% e dell'11% rispettivamente. Inoltre, l'azienda ha ristretto le previsioni dell'EPS rettificato per l'intero anno 2024 a $2,63-$2,67, prevedendo una crescita del 11-13%. Inoltre, Avient ha aumentato il suo dividendo del 5% a $1,08 annuali, segnando il suo quattordicesimo aumento annuale consecutivo.
Avient (AVNT) reportó resultados sólidos para el tercer trimestre de 2024, con ventas que alcanzaron 815,2 millones de dólares, un aumento del 8% en comparación con el año anterior. El EPS GAAP de las operaciones continuas fue de $0,41, frente a $0,06, mientras que el EPS ajustado alcanzó $0,65, superando la guía de $0,62. La empresa vio un crecimiento orgánico en todas las regiones, con América Latina y Asia mostrando aumentos notables del 27% y 11%, respectivamente. La compañía ajustó su guía de EPS ajustado para todo el año 2024 a $2,63-$2,67, proyectando un crecimiento del 11-13%. Además, Avient aumentó su dividendo en un 5% a $1,08 anualmente, marcando su decimocuarto aumento anual consecutivo.
Avient (AVNT)는 2024년 3분기 강력한 실적을 보고했으며, 매출은 8억 1,520만 달러에 달해 전년 대비 8% 증가했습니다. 연속 운영의 GAAP EPS는 $0.41로, $0.06에서 증가했으며, 조정된 EPS는 $0.65에 달해 $0.62의 가이던스를 초과했습니다. 회사는 모든 지역에서 유기적 성장을 보였으며, 라틴 아메리카와 아시아는 각각 27%와 11%의 눈에 띄는 증가를 보였습니다. 회사는 2024년 전체 연도의 조정 EPS 가이던스를 $2.63-$2.67로 좁히며 11-13%의 성장을 예상했습니다. 또한, Avient는 분기 배당금을 5% 인상하여 연간 $1.08로 조정했으며, 이는 14년 연속 증가를 나타냅니다.
Avient (AVNT) a annoncé de solides résultats pour le troisième trimestre de 2024, avec des ventes atteignant 815,2 millions de dollars, soit une augmentation de 8 % par rapport à l'année précédente. Le BPA GAAP des opérations continuées était de 0,41 $, en hausse par rapport à 0,06 $, tandis que le BPA ajusté a atteint 0,65 $, dépassant l'objectif de 0,62 $. L'entreprise a enregistré une croissance organique dans toutes les régions, l'Amérique Latine et l'Asie affichant des augmentations notables de 27 % et 11 % respectivement. De plus, elle a affiné ses prévisions de BPA ajusté pour l'ensemble de l'année 2024 à 2,63 $ - 2,67 $, projetant une croissance de 11-13 %. En outre, Avient a augmenté son dividende de 5 % à 1,08 $ annuellement, marquant sa quatorzième augmentation annuelle consécutive.
Avient (AVNT) berichtete über starke Ergebnisse im 3. Quartal 2024, mit einem Umsatz von 815,2 Millionen Dollar, was einem Anstieg von 8% im Vergleich zum Vorjahr entspricht. Der GAAP EPS aus fortgeführten Tätigkeiten betrug $0,41, im Vergleich zu $0,06, während der bereinigte EPS $0,65 erreichte und die Prognose von $0,62 übertraf. Das Unternehmen verzeichnete organisches Wachstum in allen Regionen, wobei Lateinamerika und Asien bemerkenswerte Zuwächse von 27% bzw. 11% aufwiesen. Das Unternehmen verkleinerte seine Prognose für den gesamten bereinigten EPS für 2024 auf $2,63-$2,67 und prognostizierte ein Wachstum von 11-13%. Zudem erhöhte Avient seine Dividende um 5% auf jährlich $1,08, was die vierzehnte jährliche Erhöhung in Folge darstellt.
- Q3 sales increased 8% YoY to $815.2 million
- Adjusted EPS grew 14% YoY to $0.65, exceeding guidance
- Strong organic growth across all regions (Latin America +27%, Asia +11%)
- 5% dividend increase to $1.08 annually
- Narrowed 2024 guidance projects 11-13% EPS growth
- Adjusted EBITDA guidance of $525-530 million
- None.
Insights
A strong quarter for Avient with impressive organic growth metrics. Q3 sales reached
The narrowed full-year adjusted EPS guidance of
Geographic diversification is proving to be a key strength, with robust growth across all regions. The company's strategic positioning in high-growth markets like packaging and consumer goods is paying off, particularly in emerging markets. Notable success in defense applications and building materials suggests effective market segmentation and product differentiation.
The upcoming investor day could be a catalyst for stock performance, as management hints at a new strategic direction focusing on margin expansion and technology-driven growth. The consistent execution against guidance and strong regional performance, especially in challenging markets like EMEA (
- Third quarter sales increased
8% over the prior year quarter to$815 million - Third quarter GAAP EPS from continuing operations of
$0.41 $0.06 - Third quarter adjusted EPS of
$0.65 $0.62 14% over prior year quarter, driven by organic revenue growth and margin expansion in both segments, as well as lower interest expense - 2024 full-year adjusted EPS guidance range narrowed to
$2.63 $2.67 $2.55 $2.70 11% to13% growth in adjusted EPS over the prior year - Increased dividend
5% to$1.08
Third quarter GAAP earnings per share (EPS) from continuing operations were
"The Avient team delivered another strong quarter, ahead of our expectations, driven by organic revenue growth across all regions and most end markets," said Dr. Ashish Khandpur, President and Chief Executive Officer of Avient Corporation. "Both business segments performed well as we continue to capitalize on winning new business and gaining share, while serving the underlying market demand."
Dr. Khandpur added, "
2024 Outlook
"The year has continued to play out as we expected, and as we look at the fourth quarter, we are in a position to narrow our full-year guidance," said Jamie Beggs, Senior Vice President and Chief Financial Officer of Avient Corporation. "We now expect adjusted EBITDA of
Upcoming Investor Day
"Over the course of 2024, we have been developing our strategic approach for the next chapter of Avient. It will be a future that is focused on delivering growth with margin expansion by intersecting the needs of our customers and secular market trends with our broad portfolio of technologies," said Dr. Khandpur. "We are excited to share the details of our strategy at our investor day in
Avient's investor day will be held at the New York Stock Exchange beginning at 10:00 a.m. eastern standard time. Registration details will be released shortly.
Webcast Details
Avient will provide additional details on its 2024 third quarter results and 2024 full-year outlook during its webcast scheduled for 8:00 a.m. Eastern Time on October 31, 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 | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Sales | $ 815.2 | $ 753.7 | $ 2,493.9 | $ 2,423.8 | |||
Operating income | 77.2 | 34.3 | 243.7 | 153.7 | |||
Net income from continuing operations attributable to Avient | 38.2 | 5.1 | 121.2 | 48.0 | |||
Diluted earnings per share from continuing operations attributable to | $ 0.41 | $ 0.06 | $ 1.32 | $ 0.52 | |||
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 September 30, | |||||||
2024 | 2023 | ||||||
Reconciliation to Condensed Consolidated Statements of Income | $ | EPS(1) | $ | EPS(1) | |||
Net income from continuing operations attributable to Avient shareholders | $ 38.2 | $ 0.41 | $ 5.1 | $ 0.06 | |||
Special items, after-tax (Attachment 3) | 6.6 | 0.07 | 32.0 | 0.35 | |||
Amortization expense, after-tax | 15.0 | 0.16 | 15.2 | 0.16 | |||
Adjusted net income / EPS | $ 59.8 | $ 0.65 | $ 52.3 | $ 0.57 | |||
(1) | Per share amounts may not recalculate from figures presented herein due to rounding |
Nine Months Ended September 30, | |||||||
2024 | 2023 | ||||||
Reconciliation to Condensed Consolidated Statements of Income | $ | EPS(1) | $ | EPS(1) | |||
Net income from continuing operations attributable to Avient shareholders | $ 121.2 | $ 1.32 | $ 48.0 | $ 0.52 | |||
Special items, after-tax (Attachment 3) | 33.9 | 0.37 | 73.9 | 0.81 | |||
Amortization expense, after-tax | 44.7 | 0.49 | 46.5 | 0.51 | |||
Adjusted net income / EPS | $ 199.8 | $ 2.17 | $ 168.4 | $ 1.84 | |||
(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 September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Sales | $ 815.2 | $ 753.7 | $ 2,493.9 | $ 2,423.8 | |||
Cost of sales | 553.8 | 558.4 | 1,696.7 | 1,740.2 | |||
Gross margin | 261.4 | 195.3 | 797.2 | 683.6 | |||
Selling and administrative expense | 184.2 | 161.0 | 553.5 | 529.9 | |||
Operating income | 77.2 | 34.3 | 243.7 | 153.7 | |||
Interest expense, net | (26.9) | (30.3) | (80.1) | (88.5) | |||
Other (expense) income, net | (0.3) | 1.0 | (2.1) | 1.5 | |||
Income from continuing operations before income taxes | 50.0 | 5.0 | 161.5 | 66.7 | |||
Income tax (expense) benefit | (11.3) | 0.1 | (39.3) | (18.0) | |||
Net income from continuing operations | 38.7 | 5.1 | 122.2 | 48.7 | |||
Loss from discontinued operations, net of income taxes | — | — | — | (0.9) | |||
Net income | $ 38.7 | $ 5.1 | $ 122.2 | $ 47.8 | |||
Net income attributable to noncontrolling interests | (0.5) | — | (1.0) | (0.7) | |||
Net income attributable to Avient common shareholders | $ 38.2 | $ 5.1 | $ 121.2 | $ 47.1 | |||
Earnings (loss) per share attributable to Avient common shareholders - Basic: | |||||||
Continuing operations | $ 0.42 | $ 0.06 | $ 1.33 | $ 0.53 | |||
Discontinued operations | — | — | — | (0.01) | |||
Total | $ 0.42 | $ 0.06 | $ 1.33 | $ 0.52 | |||
Earnings (loss) per share attributable to Avient common shareholders - Diluted: | |||||||
Continuing operations | $ 0.41 | $ 0.06 | $ 1.32 | $ 0.52 | |||
Discontinued operations | — | — | — | (0.01) | |||
Total | $ 0.41 | $ 0.06 | $ 1.32 | $ 0.51 | |||
Cash dividends declared per share of common stock | $ 0.2575 | $ 0.2475 | $ 0.7725 | $ 0.7425 | |||
Weighted-average shares used to compute earnings per common share: | |||||||
Basic | 91.3 | 91.1 | 91.3 | 91.1 | |||
Diluted | 92.3 | 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 | Nine Months Ended | |||||
2024 | 2023 | 2024 | 2023 | ||||
Cost of sales: | |||||||
Restructuring costs, including accelerated depreciation | $ 1.8 | $ (2.1) | $ 5.6 | $ (9.9) | |||
Environmental remediation costs | (2.4) | (38.1) | (28.2) | (52.5) | |||
Impact on cost of sales | (0.6) | (40.2) | (22.6) | (62.4) | |||
Selling and administrative expense: | |||||||
Restructuring and employee separation costs | (3.1) | (2.0) | (6.6) | (13.8) | |||
Legal and other | (4.3) | 1.7 | (10.1) | (9.1) | |||
Acquisition related costs | (0.4) | (0.5) | (2.5) | (4.6) | |||
Impact on selling and administrative expense | (7.8) | (0.8) | (19.2) | (27.5) | |||
Impact on operating income | (8.4) | (41.0) | (41.8) | (89.9) | |||
Interest expense, net - financing costs | (1.3) | (2.2) | (2.3) | (2.2) | |||
Other income (loss) | — | — | 0.1 | (0.1) | |||
Impact on income from continuing operations before income taxes | (9.7) | (43.2) | (44.0) | (92.2) | |||
Income tax benefit on special items | 3.5 | 10.8 | 11.9 | 23.2 | |||
Tax adjustments(2) | (0.4) | 0.4 | (1.8) | (4.9) | |||
Impact of special items on net income from continuing operations | $ (6.6) | $ (32.0) | $ (33.9) | $ (73.9) | |||
Diluted earnings per common share impact | $ (0.07) | $ (0.35) | $ (0.37) | $ (0.81) | |||
Weighted average shares used to compute adjusted earnings per share: | |||||||
Diluted | 92.3 | 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 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 and certain adjustments to uncertain tax position reserves and valuation allowances. |
Attachment 4 | |||
Avient Corporation | |||
Condensed Consolidated Balance Sheets | |||
(In millions) | |||
(Unaudited) September 30, | December 31, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 505.7 | $ 545.8 | |
Accounts receivable, net | 465.1 | 399.9 | |
Inventories, net | 377.8 | 347.0 | |
Other current assets | 108.8 | 114.9 | |
Total current assets | 1,457.4 | 1,407.6 | |
Property, net | 973.5 | 1,028.9 | |
Goodwill | 1,716.8 | 1,719.3 | |
Intangible assets, net | 1,542.5 | 1,590.8 | |
Deferred income taxes | 133.1 | 92.3 | |
Other non-current assets | 224.0 | 129.6 | |
Total assets | $ 6,047.3 | $ 5,968.5 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term and current portion of long-term debt | $ 7.8 | $ 9.5 | |
Accounts payable | 425.9 | 432.3 | |
Accrued expenses and other current liabilities | 460.8 | 331.8 | |
Total current liabilities | 894.5 | 773.6 | |
Non-current liabilities: | |||
Long-term debt | 2,059.9 | 2,070.5 | |
Pension and other post-retirement benefits | 63.7 | 67.2 | |
Deferred income taxes | 289.1 | 281.6 | |
Other non-current liabilities | 359.9 | 437.6 | |
Total non-current liabilities | 2,772.6 | 2,856.9 | |
SHAREHOLDERS' EQUITY | |||
Avient shareholders' equity | 2,363.0 | 2,319.2 | |
Noncontrolling interest | 17.2 | 18.8 | |
Total equity | 2,380.2 | 2,338.0 | |
Total liabilities and equity | $ 6,047.3 | $ 5,968.5 | |
Attachment 5 | |||
Avient Corporation | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
(In millions) | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Operating activities | |||
Net income | $ 122.2 | $ 47.8 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 133.1 | 142.6 | |
Accelerated depreciation | 1.2 | 1.9 | |
Share-based compensation expense | 12.5 | 9.7 | |
Changes in assets and liabilities: | |||
Increase in accounts receivable | (65.7) | (5.7) | |
(Increase) decrease in inventories | (30.2) | 16.5 | |
Decrease in accounts payable | (5.7) | (59.1) | |
Taxes paid on gain on sale of business | — | (104.1) | |
Accrued expenses and other assets and liabilities, net | (33.2) | (2.5) | |
Net cash provided by operating activities | 134.2 | 47.1 | |
Investing activities | |||
Capital expenditures | (80.8) | (75.0) | |
Net proceeds from divestiture | — | 7.3 | |
Proceeds from plant closures | 3.4 | — | |
Other investing activities | (2.1) | 2.3 | |
Net cash used by investing activities | (79.5) | (65.4) | |
Financing activities | |||
Proceeds from long-term borrowings | 650.0 | — | |
Payments on long-term borrowings | (659.1) | (103.8) | |
Cash dividends paid | (70.5) | (67.6) | |
Debt financing costs | (9.6) | (2.3) | |
Other financing activities | (4.6) | (2.3) | |
Net cash used by financing activities | (93.8) | (176.0) | |
Effect of exchange rate changes on cash | (1.0) | (7.2) | |
Decrease in cash and cash equivalents | (40.1) | (201.5) | |
Cash and cash equivalents at beginning of year | 545.8 | 641.1 | |
Cash and cash equivalents at end of period | $ 505.7 | $ 439.6 | |
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 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Sales: | |||||||
Color, Additives and Inks | $ 521.5 | $ 486.5 | $ 1,578.8 | $ 1,548.0 | |||
Specialty Engineered Materials | 294.6 | 267.9 | 917.1 | 878.4 | |||
Corporate | (0.9) | (0.7) | (2.0) | (2.6) | |||
Sales | $ 815.2 | $ 753.7 | $ 2,493.9 | $ 2,423.8 | |||
Gross margin: | |||||||
Color, Additives and Inks | $ 172.8 | $ 156.8 | $ 528.5 | $ 482.9 | |||
Specialty Engineered Materials | 89.0 | 78.3 | 290.7 | 263.7 | |||
Corporate | (0.4) | (39.8) | (22.0) | (63.0) | |||
Gross margin | $ 261.4 | $ 195.3 | $ 797.2 | $ 683.6 | |||
Selling and administrative expense: | |||||||
Color, Additives and Inks | $ 97.3 | $ 92.3 | $ 292.1 | $ 284.8 | |||
Specialty Engineered Materials | 52.6 | 48.0 | 158.1 | 150.6 | |||
Corporate | 34.3 | 20.7 | 103.3 | 94.5 | |||
Selling and administrative expense | $ 184.2 | $ 161.0 | $ 553.5 | $ 529.9 | |||
Operating income: | |||||||
Color, Additives and Inks | $ 75.5 | $ 64.5 | $ 236.4 | $ 198.1 | |||
Specialty Engineered Materials | 36.4 | 30.3 | 132.6 | 113.1 | |||
Corporate | (34.7) | (60.5) | (125.3) | (157.5) | |||
Operating income | $ 77.2 | $ 34.3 | $ 243.7 | $ 153.7 | |||
Depreciation & amortization: | |||||||
Color, Additives and Inks | $ 21.9 | $ 24.6 | $ 65.6 | $ 76.1 | |||
Specialty Engineered Materials | 20.7 | 20.5 | 61.1 | 61.6 | |||
Corporate | 2.5 | 1.3 | 7.6 | 6.8 | |||
Depreciation & amortization | $ 45.1 | $ 46.4 | $ 134.3 | $ 144.5 | |||
Earnings before interest, taxes, depreciation and | |||||||
Color, Additives and Inks | $ 97.4 | $ 89.1 | $ 302.0 | $ 274.2 | |||
Specialty Engineered Materials | 57.1 | 50.8 | 193.7 | 174.7 | |||
Corporate | (32.2) | (59.2) | (117.7) | (150.7) | |||
Other (expense) income, net | (0.3) | 1.0 | (2.1) | 1.5 | |||
EBITDA from continuing operations | $ 122.0 | $ 81.7 | $ 375.9 | $ 299.7 | |||
Special items, before tax | 9.7 | 43.2 | 44.0 | 92.2 | |||
Interest expense included in special items | (1.3) | (2.2) | (2.3) | (2.2) | |||
Depreciation & amortization included in special items | (0.4) | — | (1.2) | (1.9) | |||
Adjusted EBITDA | $ 130.0 | $ 122.7 | $ 416.4 | $ 387.8 | |||
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 | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
Reconciliation to Consolidated Statements of Income | 2024 | 2023 | 2024 | 2023 | |||||||
Sales | $ 815.2 | $ 753.7 | $ 2,493.9 | $ 2,423.8 | |||||||
Gross margin - GAAP | 261.4 | 195.3 | 797.2 | 683.6 | |||||||
Special items in gross margin (Attachment 3) | 0.6 | 40.2 | 22.6 | 62.4 | |||||||
Adjusted gross margin | $ 262.0 | $ 235.5 | $ 819.8 | $ 746.0 | |||||||
Adjusted gross margin as a percent of sales | 32.1 % | 31.2 % | 32.9 % | 30.8 % | |||||||
Operating income - GAAP | 77.2 | 34.3 | 243.7 | 153.7 | |||||||
Special items in operating income (Attachment 3) | 8.4 | 41.0 | 41.8 | 89.9 | |||||||
Adjusted operating income | $ 85.6 | $ 75.3 | $ 285.5 | $ 243.6 | |||||||
Adjusted operating income as a percent of sales | 10.5 % | 10.0 % | 11.4 % | 10.1 % | |||||||
Three Months Ended | Nine Months Ended September 30, | ||||||||||
Reconciliation to EBITDA and Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||||||
Net income from continuing operations – GAAP | $ 38.7 | $ 5.1 | $ 122.2 | $ 48.7 | |||||||
Income tax expense (benefit) | 11.3 | (0.1) | 39.3 | 18.0 | |||||||
Interest expense, net | 26.9 | 30.3 | 80.1 | 88.5 | |||||||
Depreciation & amortization | 45.1 | 46.4 | 134.3 | 144.5 | |||||||
EBITDA from continuing operations | $ 122.0 | $ 81.7 | $ 375.9 | $ 299.7 | |||||||
Special items, before tax | 9.7 | 43.2 | 44.0 | 92.2 | |||||||
Interest expense included in special items | (1.3) | (2.2) | (2.3) | (2.2) | |||||||
Depreciation & amortization included in special items | (0.4) | — | (1.2) | (1.9) | |||||||
Adjusted EBITDA | $ 130.0 | $ 122.7 | $ 416.4 | $ 387.8 | |||||||
Adjusted EBITDA as a percent of sales | 15.9 % | 16.3 % | 16.7 % | 16.0 % | |||||||
Year Ended December 31, 2023 | |||||||||||
Reconciliation to Condensed Consolidated Statements of Income | $ | EPS(1) | |||||||||
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 | |||||||||
(1) | Per share amounts may not recalculate from figures presented herein due to rounding |
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SOURCE Avient Corporation
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