Colfax Corporation Announces Third Quarter 2021 Results
Colfax Corporation (NYSE: CFX) reported strong third quarter results with a net income of $27 million ($0.17 per share), up from $16 million ($0.12 per share) last year. Adjusted EPS rose 32% to $0.54. Sales reached $966 million, a 20% increase, with organic sales-per-day improving by 15%. Operating income increased to $64 million, while adjusted EBITA rose by 22% to $132 million. The company is on track for a Q1 2022 spin-off of its ESAB business and plans to transition to the new name Enovis. Expected free cash flow for 2021 is approximately $275 million.
- Net income increased by 69% to $27 million from $16 million in the prior year.
- Adjusted EPS rose by 32% to $0.54 compared to $0.41 last year.
- Sales surged by 20% to $966 million, including a 15% organic sales-per-day growth.
- Operating cash flow reached $97 million, a 21% increase from $80 million the previous year.
- Free cash flow improved to $68 million from $49 million in the prior year.
- Strong progress on integration of acquisitions to drive future growth.
- Expected free cash flow of approximately $275 million in 2021.
- COVID-driven headwinds may hinder achieving the upper end of the full year adjusted EPS forecast of $2.10-$2.20.
- Projected higher tax rate may negatively impact full-year results.
- Posted
$0.17 EPS from continuing operations and$0.54 of adjusted EPS - Increased sales
20% to$966 million including a15% organic sales-per-day improvement - Reported strong progress on integration of acquisitions
- Announced continued progress to Q1 2022 separation including new post-separation name for MedTech growth company
WILMINGTON, DE, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Colfax Corporation (NYSE: CFX), a leading diversified technology company, today announced its financial results for the third quarter of 2021 and provided other updates.
The Company reported third quarter net income from continuing operations of
In the third quarter, sales of
“Our businesses performed well and organically grew faster than the market this quarter in a dynamic business environment,” said Matt Trerotola, Colfax President and CEO. “ESAB exceeded our expectations this quarter, as it effectively managed through the inflationary and supply chain pressures to deliver strong growth and operating margin expansion. In MedTech, recent acquisitions drove double-digit growth in the quarter. Organic sales-per-day growth was positive versus 2020 and 2019 despite the rise in COVID cases, which temporarily weighed on elective surgery volumes and further increased supply chain and logistics challenges. We expect gradual improvement in the fourth quarter, creating a strong growth trajectory into 2022. Both of our businesses are operationally and strategically well-positioned for the planned separation of Colfax into two independent companies in the first quarter of 2022.”
Colfax has made strong progress integrating its recent acquisitions. The foot and ankle businesses have been combined into a unified platform that can be leveraged to efficiently scale and rapidly grow at double-digit rates to approximately
Medical Technology segment sales of
Fabrication Technology segment (ESAB) third quarter sales of
The Company commented that it expects a higher projected tax rate and COVID-driven headwinds will lead to results at the lower end of its
Colfax On-Track for Q1 2022 Separation, Announces New Name
The Company is making meaningful progress on its expected tax-free spin-off of its ESAB business to Colfax shareholders in the form of a dividend in the first quarter of 2022. Substantial progress has been made to create two independent Boards with relevant skills, experiences and diversity, and with limited overlap. The Company also announced that it will transition to its new name, Enovis™, at the time of the separation.
“Enovis captures our vision of combining innovation with our passion for continuous improvement to deliver superior patient outcomes,” said Mr. Trerotola. “As we strategically pivot to a company focused on creating medical technology that improves lives, the Enovis brand emphasizes the differentiated value and accretive foresight we will bring healthcare professionals and their patients around the world.”
Conference Call and Webcast
The Company will hold a conference call to discuss its third quarter 2021 results beginning at 8:00 a.m. Eastern on Thursday, November 4, which will be open to the public by calling +1-888-771-4371 (U.S. callers) and +1-847-585-4405 (International callers) and referencing the conference ID number 50243903 and through webcast via Colfax’s website www.colfaxcorp.com under the “Investors” section. Access to a supplemental slide presentation can also be found at the Colfax website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call.
About Colfax Corporation
Colfax Corporation (NYSE: CFX) is a leading diversified technology company that provides orthopedic and fabrication technology products and services to customers around the world, principally under the DJO and ESAB brands. The Company uses its Colfax Business System (“CBS”), a comprehensive set of tools and processes, to create superior value for customers, shareholders and associates. In March of 2021, Colfax announced its intention to separate into two independent and public companies, which is targeted to be completed in the first quarter of 2022 to accelerate strategic momentum and unlock additional value creation potential; one business will focus on specialty medical technologies and the other on fabrication technologies. For more information about Colfax and our separation activities, please visit www.colfaxcorp.com.
Non-GAAP Financial Measures and Other Adjustments
Colfax has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America (“non-GAAP”). These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations, adjusted net income margin from continuing operations, adjusted net income per diluted share from continuing operations, adjusted EBITA (earnings before interest, taxes and amortization), adjusted EBITDA (adjusted EBITA plus depreciation and other amortization), adjusted EBITA margin, organic sales growth, and free cash flow. Colfax also provides adjusted EBITA and adjusted EBITA margin on a segment basis.
Adjusted net income from continuing operations represents net income (loss) from continuing operations excluding restructuring and other related charges, European Union Medical Device Regulation (“MDR”) and other costs, pension settlement gain, debt extinguishment charges, acquisition-related amortization and other non-cash charges, and strategic transaction costs. Adjusted net income includes the tax effect of adjusted pre-tax income at applicable tax rates and other tax adjustments. Colfax also presents adjusted net income margin from continuing operations, which is subject to the same adjustments as adjusted net income from continuing operations.
Adjusted net income per diluted share from continuing operations represents adjusted net income from continuing operations divided by the number of adjusted diluted weighted average shares. Both GAAP and non-GAAP diluted net income per share data are computed based on weighted average shares outstanding and, if there is net income from continuing operations (rather than net loss) during the period, the dilutive impact of share equivalents outstanding during the period. Diluted weighted average shares outstanding and adjusted diluted weighted average shares outstanding are calculated on the same basis except for the net income or loss figure used in determining whether to include such dilutive impact.
Adjusted EBITA represents net income (loss) from continuing operations excluding restructuring and other related charges, MDR and other costs, acquisition-related amortization and other non-cash charges, and strategic transaction costs, as well as income tax expense (benefit) and interest expense, net. Colfax presents adjusted EBITA margin, which is subject to the same adjustments as adjusted EBITA. Further, Colfax presents adjusted EBITA (and adjusted EBITA margin) on a segment basis, which excludes the impact of strategic transaction costs and acquisition-related amortization and other non-cash charges from segment operating income.
Organic sales growth (decline) excludes the impact of acquisitions and foreign exchange rate fluctuations.
Organic sales-per-day growth (decline) represents Organic sales growth (decline) adjusted for additional or fewer selling days calculated based on the global average selling days particular to each segment.
Free cash flow represents cash flow from operating activities less purchases of property, plant and equipment.
These non-GAAP financial measures assist Colfax management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements of the Company. Colfax management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.
In this press release, Colfax presents forward-looking adjusted EPS and free cash flow guidance. Colfax does not provide such outlook on a GAAP basis because changes in the items that Colfax excludes from GAAP to calculate these measures can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of Colfax’s routine operating activities. Additionally, management does not forecast many of the excluded items for internal use and therefore cannot create or rely on an outlook done on a GAAP basis. These excluded items could have a significant impact on the Company’s GAAP financial results.
CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTS
This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Colfax’s plans, objectives, outlook, expectations and intentions, including the intended separation of Colfax’s fabrication technology and specialty medical technology businesses (the “Separation”), and the timing, method and anticipated benefits of the Separation, the expected benefits and contributions of the Mathys acquisition and the timing of such closing, and other statements that are not historical or current fact. Forward-looking statements are based on Colfax’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Colfax’s results to differ materially from current expectations include, but are not limited to, risks related to the impact of the COVID-19 global pandemic, including the rise, prevalence and severity of variants of the virus, actions by governments, businesses and individuals in response to the situation, such as the scope and duration of the outbreak, the nature and effectiveness of government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions, the impact on creditworthiness and financial viability of customers; risks relating to the Separation, including the final approval of the Separation by Colfax’s board of directors, the uncertainty of obtaining regulatory approvals, and a favorable tax opinion and/or ruling from the Internal Revenue Service, Colfax’s ability to satisfactorily complete steps necessary for the Separation and related transactions to be generally tax-free for U.S. federal income tax purposes, the ability to satisfy the necessary conditions to complete the Separation on a timely basis, or at all, the ability to realize the anticipated benefits of the Separation, developments related to the impact of the COVID-19 pandemic on the Separation, and the financial and operating performance of each company following the Separation; other impacts on Colfax’s business and ability to execute business continuity plans; and the other factors detailed in Colfax’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption “Risk Factors,” as well as the other risks discussed in Colfax’s filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. Colfax disclaims any duty to update the information herein.
The term “Colfax” in reference to the activities described in this press release may mean one or more of Colfax’s global operating subsidiaries and/or their internal business divisions and does not necessarily indicate activities engaged in by Colfax Corporation.
Contact:
Mike Macek
Vice President, Finance
Colfax Corporation
+1-302-252-9129
investorrelations@colfaxcorp.com
Colfax Corporation
Condensed Consolidated Statements of Operations
Dollars in thousands, except per share data
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| October 1, 2021 | October 2, 2020 | October 1, 2021 | October 2, 2020 | ||||||||||||||||
| Net sales | $ | 965,891 | $ | 805,931 | $ | 2,831,030 | $ | 2,242,647 | |||||||||||
| Cost of sales | 561,020 | 461,811 | 1,636,098 | 1,309,227 | |||||||||||||||
| Gross profit | 404,871 | 344,120 | 1,194,932 | 933,420 | |||||||||||||||
| Selling, general and administrative expense | 334,424 | 278,060 | 977,711 | 805,984 | |||||||||||||||
| Restructuring and other related charges | 6,457 | 4,129 | 15,983 | 23,589 | |||||||||||||||
| Operating income | 63,990 | 61,931 | 201,238 | 103,847 | |||||||||||||||
| Pension settlement gain | — | — | (11,208) | — | |||||||||||||||
| Interest expense, net | 13,540 | 25,567 | 57,005 | 78,647 | |||||||||||||||
| Debt extinguishment charges | — | — | 29,870 | — | |||||||||||||||
| Income from continuing operations before income taxes | 50,450 | 36,364 | 125,571 | 25,200 | |||||||||||||||
| Income tax expense | 22,349 | 19,528 | 38,421 | 2,638 | |||||||||||||||
| Net income from continuing operations | 28,101 | 16,836 | 87,150 | 22,562 | |||||||||||||||
| Loss from discontinued operations, net of taxes | (1,244) | (2,641) | (10,351) | (10,906) | |||||||||||||||
| Net income | 26,857 | 14,195 | 76,799 | 11,656 | |||||||||||||||
| Less: income attributable to noncontrolling interest, net of taxes | 1,009 | 789 | 3,235 | 2,243 | |||||||||||||||
| Net income attributable to Colfax Corporation | $ | 25,848 | $ | 13,406 | $ | 73,564 | $ | 9,413 | |||||||||||
| Net income (loss) per share - basic | |||||||||||||||||||
| Continuing operations | $ | 0.17 | $ | 0.12 | $ | 0.56 | $ | 0.15 | |||||||||||
| Discontinued operations | $ | (0.01) | $ | (0.02) | $ | (0.07) | $ | (0.08) | |||||||||||
| Consolidated operations | $ | 0.16 | $ | 0.10 | $ | 0.49 | $ | 0.07 | |||||||||||
| Net income (loss) per share - diluted | |||||||||||||||||||
| Continuing operations | $ | 0.17 | $ | 0.12 | $ | 0.55 | $ | 0.15 | |||||||||||
| Discontinued operations | $ | (0.01) | $ | (0.02) | $ | (0.07) | $ | (0.08) | |||||||||||
| Consolidated operations | $ | 0.16 | $ | 0.10 | $ | 0.48 | $ | 0.07 | |||||||||||
Colfax Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Dollars in millions, except per share data
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| October 1, 2021 | October 2, 2020 | October 1, 2021 | October 2, 2020 | ||||||||||||||||
| Adjusted Net Income and Adjusted Net Income Per Share | |||||||||||||||||||
| Net income from continuing operations attributable to Colfax Corporation (1) (GAAP) | $ | 27.1 | $ | 16.0 | $ | 83.9 | $ | 20.3 | |||||||||||
| Restructuring and other related charges - pretax (2) | 6.5 | 6.3 | 16.0 | 28.5 | |||||||||||||||
| MDR and other costs - pretax (3) | 1.9 | 2.6 | 5.6 | 4.5 | |||||||||||||||
| Debt extinguishment charges - pretax | — | — | 29.9 | — | |||||||||||||||
| Acquisition-related amortization and other non-cash charges - pretax (4) | 41.3 | 36.2 | 118.8 | 108.1 | |||||||||||||||
| Strategic transaction costs - pretax (5) | 17.9 | 0.6 | 27.3 | 3.2 | |||||||||||||||
| Pension settlement gain - pretax | — | — | (11.2) | — | |||||||||||||||
| Tax adjustment (6) | (8.1) | (5.2) | (34.0) | (41.5) | |||||||||||||||
| Adjusted net income from continuing operations (non-GAAP) | $ | 86.5 | $ | 56.6 | $ | 236.3 | $ | 123.2 | |||||||||||
| Adjusted net income margin from continuing operations | 9.0 | % | 7.0 | % | 8.3 | % | 5.5 | % | |||||||||||
| Weighted-average shares outstanding - diluted (in millions) | 161.2 | 138.1 | 152.9 | 139.1 | |||||||||||||||
| Adjusted net income per share - diluted from continuing operations (non-GAAP) | $ | 0.54 | $ | 0.41 | $ | 1.55 | $ | 0.89 | |||||||||||
| Net income per share - diluted from continuing operations (GAAP) | $ | 0.17 | $ | 0.12 | $ | 0.55 | $ | 0.15 | |||||||||||
__________
(1) Net income from continuing operations attributable to Colfax Corporation for the respective periods is calculated using Net income from continuing operations less the continuing operations component of the income attributable to noncontrolling interest, net of taxes, of
(2) Restructuring and other related charges includes
(3) Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union Medical Device Regulation of 2017. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations for all periods presented.
(4) Includes amortization of acquired intangibles and fair value charges on acquired inventory.
(5) For the three and nine months ended October 1, 2021, Strategic transaction costs includes costs related to the proposed separation of our fabrication technology and medical technology businesses, and certain transaction and integration costs related to recent acquisitions. For the three and nine months ended October 2, 2020, Strategic transaction costs includes costs incurred for the acquisition of DJO.
(6) The effective tax rates used to calculate adjusted net income and adjusted net income per share were
Colfax Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Dollars in millions
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 1, 2021 | October 2, 2020 | October 1, 2021 | October 2, 2020 | |||||||||||||
| (Dollars in millions) | ||||||||||||||||
| Net income from continuing operations (GAAP) | $ | 28.1 | $ | 16.8 | $ | 87.2 | $ | 22.6 | ||||||||
| Income tax expense | 22.3 | 19.5 | 38.4 | 2.6 | ||||||||||||
| Pension settlement gain | — | — | (11.2) | — | ||||||||||||
| Interest expense, net | 13.5 | 25.6 | 57.0 | 78.6 | ||||||||||||
| Debt extinguishment charges | — | — | 29.9 | — | ||||||||||||
| Restructuring and other related charges(1) | 6.5 | 6.3 | 16.0 | 28.5 | ||||||||||||
| MDR and other costs(2) | 1.9 | 2.6 | 5.6 | 4.5 | ||||||||||||
| Strategic transaction costs(3) | 17.9 | 0.6 | 27.3 | 3.2 | ||||||||||||
| Acquisition-related amortization and other non-cash charges(4) | 41.3 | 36.2 | 118.8 | 108.1 | ||||||||||||
| Adjusted EBITA (non-GAAP) | $ | 131.6 | $ | 107.7 | $ | 368.9 | $ | 248.2 | ||||||||
| Net income margin from continuing operations (GAAP) | 2.9 | % | 2.1 | % | 3.1 | % | 1.0 | % | ||||||||
| Adjusted EBITA margin (non-GAAP) | 13.6 | % | 13.4 | % | 13.0 | % | 11.1 | % | ||||||||
__________
(1) Restructuring and other related charges includes
(2) Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union Medical Device Regulation of 2017. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations for all periods presented.
(3) For the three and nine months ended October 1, 2021, Strategic transaction costs includes costs related to the proposed separation of our fabrication technology and medical technology businesses, and certain transaction and integration costs related to recent acquisitions. For the three and nine months ended October 2, 2020, Strategic transaction costs includes costs incurred for the acquisition of DJO.
(4) Includes amortization of acquired intangibles and fair value charges on acquired inventory.
Colfax Corporation
Reconciliation of GAAP to non-GAAP Financial Measures
Change in Sales
Dollars in millions
(Unaudited)
| Net Sales | ||||||||||||||||||||||
| Fabrication Technology | Medical Technology | Total Colfax | ||||||||||||||||||||
| $ | Change % | $ | Change % | $ | Change % | |||||||||||||||||
| For the three months ended October 2, 2020 | $ | 491.5 | $ | 314.4 | $ | 805.9 | ||||||||||||||||
| Components of Change: | ||||||||||||||||||||||
| Existing businesses(1) | 111.5 | 22.7 | % | (1.3) | (0.4) | % | 110.2 | 13.7 | % | |||||||||||||
| Acquisitions(2) | 0.5 | 0.1 | % | 45.5 | 14.5 | % | 46.0 | 5.7 | % | |||||||||||||
| Foreign currency translation(3) | 2.5 | 0.5 | % | 1.4 | 0.4 | % | 3.9 | 0.5 | % | |||||||||||||
| 114.5 | 23.3 | % | 45.5 | 14.5 | % | 160.0 | 19.9 | % | ||||||||||||||
| For the three months ended October 1, 2021 | $ | 606.0 | $ | 359.9 | $ | 965.9 | ||||||||||||||||
(1) Excludes the impact of foreign exchange rate fluctuations and acquisitions, thus providing a measure of change due to factors such as price, product mix and volume. Includes the unfavorable sales impact of approximately
(2) Represents the incremental sales as a result of acquisitions closed subsequent to the beginning of the prior year respective period.
(3) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
| Net Sales | ||||||||||||||||||||
| Fabrication Technology | Medical Technology | Total Colfax | ||||||||||||||||||
| $ | Change % | $ | Change % | $ | Change % | |||||||||||||||
| For the nine months ended October 2, 2020 | $ | 1,431.4 | $ | 811.2 | $ | 2,242.6 | ||||||||||||||
| Components of Change: | ||||||||||||||||||||
| Existing businesses(1) | 342.5 | 23.9 | % | 119.8 | 14.8 | % | 462.3 | 20.6 | % | |||||||||||
| Acquisitions(2) | 1.6 | 0.1 | % | 82.4 | 10.2 | % | 84.0 | 3.7 | % | |||||||||||
| Foreign currency translation(3) | 28.4 | 2.0 | % | 13.7 | 1.7 | % | 42.1 | 1.9 | % | |||||||||||
| 372.5 | 26.0 | % | 215.9 | 26.7 | % | 588.4 | 26.2 | % | ||||||||||||
| For the nine months ended October 1, 2021 | $ | 1,803.9 | $ | 1,027.1 | $ | 2,831.0 | ||||||||||||||
(1) Excludes the impact of foreign exchange rate fluctuations and acquisitions, thus providing a measure of change due to factors such as price, product mix and volume.
(2) Represents the incremental sales as a result of acquisitions closed subsequent to the beginning of the prior year respective period.
(3) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
Colfax Corporation
Condensed Consolidated Balance Sheets
Dollars in thousands, except share amounts
(Unaudited)
| October 1, 2021 | December 31, 2020 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 177,482 | $ | 97,068 | |||||
| Trade receivables, less allowance for credit losses of | 603,214 | 517,006 | |||||||
| Inventories, net | 780,984 | 564,822 | |||||||
| Prepaid expenses | 85,540 | 69,515 | |||||||
| Other current assets | 78,467 | 113,418 | |||||||
| Total current assets | 1,725,687 | 1,361,829 | |||||||
| Property, plant and equipment, net | 510,828 | 486,960 | |||||||
| Goodwill | 3,497,355 | 3,314,541 | |||||||
| Intangible assets, net | 1,726,955 | 1,663,446 | |||||||
| Lease asset - right of use | 159,118 | 173,942 | |||||||
| Other assets | 352,368 | 350,831 | |||||||
| Total assets | $ | 7,972,311 | $ | 7,351,549 | |||||
| LIABILITIES AND EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Current portion of long-term debt | $ | 14,340 | $ | 27,074 | |||||
| Accounts payable | 472,499 | 330,251 | |||||||
| Accrued liabilities | 488,632 | 454,333 | |||||||
| Total current liabilities | 975,471 | 811,658 | |||||||
| Long-term debt, less current portion | 1,611,690 | 2,204,169 | |||||||
| Non-current lease liability | 127,259 | 139,230 | |||||||
| Other liabilities | 627,367 | 608,618 | |||||||
| Total liabilities | 3,341,787 | 3,763,675 | |||||||
| Equity: | |||||||||
| Common stock, | 155 | 118 | |||||||
| Additional paid-in capital | 4,528,097 | 3,478,008 | |||||||
| Retained earnings | 590,931 | 517,367 | |||||||
| Accumulated other comprehensive loss | (532,642) | (452,106) | |||||||
| Total Colfax Corporation equity | 4,586,541 | 3,543,387 | |||||||
| Noncontrolling interest | 43,983 | 44,487 | |||||||
| Total equity | 4,630,524 | 3,587,874 | |||||||
| Total liabilities and equity | $ | 7,972,311 | $ | 7,351,549 | |||||
Colfax Corporation
Condensed Consolidated Statements of Cash Flows
Dollars in thousands
(Unaudited)
| Nine Months Ended | |||||||||
| October 1, 2021 | October 2, 2020 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 76,799 | $ | 11,656 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation, amortization and other impairment charges | 197,641 | 181,114 | |||||||
| Stock-based compensation expense | 26,235 | 21,642 | |||||||
| Non-cash interest expense | 3,757 | 4,253 | |||||||
| Deferred income tax benefit | (5,904) | (30,946) | |||||||
| (Gain) loss on sale of property, plant and equipment | (1,483) | 523 | |||||||
| Loss on debt extinguishment | 29,870 | — | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Trade receivables, net | (70,407) | 44,592 | |||||||
| Inventories, net | (130,348) | 28,556 | |||||||
| Accounts payable | 143,694 | (42,869) | |||||||
| Other operating assets and liabilities | (9,971) | (45,388) | |||||||
| Net cash provided by operating activities | 259,883 | 173,133 | |||||||
| Cash flows from investing activities: | |||||||||
| Purchases of property, plant and equipment | (73,595) | (81,583) | |||||||
| Proceeds from sale of property, plant and equipment | 2,908 | 4,929 | |||||||
| Acquisitions, net of cash received, and investments | (222,961) | (7,477) | |||||||
| Net cash used in investing activities | (293,648) | (84,131) | |||||||
| Cash flows from financing activities: | |||||||||
| Payments under term credit facility | — | (40,000) | |||||||
| Proceeds from borrowings on revolving credit facilities and other | 515,696 | 794,678 | |||||||
| Repayments of borrowings on revolving credit facilities and other | (409,961) | (866,215) | |||||||
| Repayments of borrowings on senior notes | (700,000) | — | |||||||
| Payment of debt issuance costs | — | (4,560) | |||||||
| Proceeds from issuance of common stock, net | 738,177 | 2,930 | |||||||
| Payment of debt extinguishment costs | (24,375) | — | |||||||
| Deferred consideration payments and other | (7,700) | (12,411) | |||||||
| Net cash provided by (used in) financing activities | 111,837 | (125,578) | |||||||
| Effect of foreign exchange rates on Cash and cash equivalents and Restricted cash | (1,659) | (6,633) | |||||||
| Increase (decrease) in Cash and cash equivalents and Restricted cash | 76,413 | (43,209) | |||||||
| Cash and cash equivalents and Restricted Cash, beginning of period | 101,069 | 109,632 | |||||||
| Cash and cash equivalents, end of period | $ | 177,482 | $ | 66,423 | |||||
FAQ
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