Crane NXT, Co. Announces Strong Fourth Quarter and Full Year 2023 Results, Raises Annual Dividend by 14%
- Crane NXT (CXT) delivered robust financial results for Q4 and full year 2023, showcasing core sales growth of 4% and 4.3% respectively.
- Adjusted EPS surpassed expectations at $4.16 for 2023, reflecting strong operational performance.
- The company repaid $245 million of its $350 million term loan facility, reducing net leverage to 1.1x, enhancing financial stability.
- Full year 2024 guidance projects Adjusted EPS between $4.10 to $4.35, demonstrating a positive outlook for future performance.
- None.
Insights
Crane NXT's reported full year and fourth quarter financials highlight several key points of interest to investors and market analysts. The company's ability to exceed its adjusted EPS guidance for the year, posting $4.16 versus the forecast range of $4.00-$4.15, indicates robust earnings management and potentially conservative forecasting. This performance, coupled with a core sales growth of 4.3%, suggests effective market penetration and product demand resilience despite economic uncertainties.
The repayment of a significant portion of its term loan facility, reducing net leverage to 1.1x, is a strong indicator of financial health and strategic debt management. Additionally, the adjusted free cash flow conversion rate of 111% is notably high, reflecting efficient capital use and strong liquidity, which could be attractive to investors looking for companies with solid cash flow dynamics.
However, the guidance for 2024 presents a conservative stance with an adjusted EPS forecast slightly lower than 2023's actual performance. This could imply management's anticipation of potential headwinds or an investment phase that may suppress earnings growth in the short term. The planned capital expenditures, particularly in light of the U.S. currency redesign program, will need to be monitored for their impact on future profitability and cash flows.
The industrial technology sector is witnessing a dynamic shift with companies like Crane NXT adapting to changing market conditions. The reported core sales growth, especially the 8% increase in Crane Currency's core sales, suggests a competitive edge in specialty currency and payment innovation markets, likely driven by heightened global demand for secure transaction technologies.
Despite this, the decline in operating profit margins, both GAAP and adjusted, raises questions about cost pressures and product mix challenges the company may be facing. The margin contraction could be a reflection of broader industry trends, where input costs and transaction expenses are affecting profitability. Investors will be keen on understanding how Crane NXT plans to navigate these challenges without compromising on growth or market share.
The dividend increase of 14% signals confidence in the company's future cash flows and a commitment to shareholder returns, which can be a positive signal to the market. It will be essential to observe how the company balances shareholder returns with the need for reinvestment to sustain long-term growth.
The financial results of Crane NXT need to be contextualized within the broader economic environment. The company's performance, particularly the core sales growth amidst global economic uncertainties, indicates resilience in the industrial technology sector. The favorable foreign exchange impact also hints at the benefits of a diverse international presence, which can buffer against localized economic downturns.
However, the cautious 2024 guidance, with core sales growth projections ranging from -1% to +2%, could be reflecting macroeconomic concerns such as potential recessions in key markets, trade tensions, or currency volatility. These factors are likely being weighed by Crane NXT's management in their strategic planning.
Furthermore, the emphasis on a strong and flexible balance sheet aligns with the economic principle of maintaining liquidity buffers during uncertain times. The company's strategic debt reduction and cash position provide it with the agility to respond to unforeseen economic shifts while pursuing disciplined mergers and acquisitions.
Delivered Full Year GAAP EPS of
Achieved Full Year 2023 Core Sales Growth of
Fourth Quarter 2023 and Recent Highlights
-
Core sales grew
4.1% year-over-year. -
GAAP operating profit margin was
20.3% and Adjusted operating profit margin was23.4% . -
GAAP earnings per diluted share (EPS) was
$0.86 $0.99 -
The Company repaid
$70 million $350 million -
The Company declared a first quarter 2024 dividend of
$0.16 14% over the prior year.
Full Year 2023 Highlights
-
Core sales grew
4.3% year-over-year. -
GAAP operating profit margin was
20.6% and Adjusted operating profit margin was24.8% . -
GAAP earnings per diluted share (EPS) was
$3.28 $4.16 -
The Company repaid
$245.0 million $350 million -
Adjusted free cash flow conversion was
111% .
Full year 2024 Guidance
-
Introducing 2024 guidance with Adjusted EPS of
$4.10 $4.35
Aaron W. Saak, Crane NXT's President, and Chief Executive Officer stated: "We delivered a strong close to 2023, underpinned by outstanding operational performance from both our businesses. We achieved adjusted EPS of
Mr. Saak continued: "With this solid foundation in place, we are well-positioned to execute on our strategy, both organically and through acquisitions. We have a strong and flexible balance sheet, ample liquidity, and a robust pipeline of opportunities for disciplined M&A. As we look to 2024 and beyond, we have a clear path to build on our success, expand the business, and drive long-term, sustainable shareholder value."
Summary of Fourth Quarter 2023 Results
|
|
Three Months Ended December 31, |
|
Change |
|||||||||||
(unaudited, dollars in millions) |
|
|
2023 |
|
|
|
2022 |
|
|
$ |
|
% |
|||
Net sales |
|
$ |
356.9 |
|
|
$ |
338.2 |
|
|
$ |
18.7 |
|
|
5.5 |
% |
Core sales |
|
|
|
|
|
$ |
14.0 |
|
|
4.1 |
% |
||||
Foreign exchange |
|
|
|
|
|
$ |
4.7 |
|
|
1.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
72.4 |
|
|
$ |
73.0 |
|
|
$ |
(0.6 |
) |
|
(0.8 |
) % |
Adjusted operating profit* |
|
$ |
83.4 |
|
|
$ |
88.1 |
|
|
$ |
(4.7 |
) |
|
(5.3 |
) % |
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
20.3 |
% |
|
|
21.6 |
% |
|
|
|
(130bps) |
|||
Adjusted operating profit margin* |
|
|
23.4 |
% |
|
|
26.0 |
% |
|
|
|
(260bps) |
|||
Totals may not sum due to rounding |
|||||||||||||||
*Please see the Non-GAAP Financial Measures tables in this release |
|||||||||||||||
Fourth Quarter 2023 Results
Fourth quarter 2023 sales were
Fourth quarter 2023 operating profit was
Fourth quarter 2023 GAAP EPS was
Fourth Quarter 2023 Segment Results
All comparisons detailed in this section refer to operating results for the fourth quarter 2023 versus the fourth quarter 2022.
Crane Payment Innovations
|
|
Three Months Ended December 31, |
|
Change |
|||||||||||
(unaudited, dollars in millions) |
|
|
2023 |
|
|
|
2022 |
|
|
$ |
|
% |
|||
Net sales |
|
$ |
215.1 |
|
|
$ |
231.1 |
|
|
$ |
(16.0 |
) |
|
(6.9 |
) % |
Core sales |
|
|
|
|
|
$ |
(16.9 |
) |
|
(7.3 |
) % |
||||
Foreign exchange |
|
|
|
|
|
$ |
0.9 |
|
|
0.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
56.5 |
|
|
$ |
61.5 |
|
|
$ |
(5.0 |
) |
|
(8.1 |
) % |
Adjusted operating profit* |
|
$ |
62.3 |
|
|
$ |
73.1 |
|
|
$ |
(10.8 |
) |
|
(14.8 |
) % |
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
26.3 |
% |
|
|
26.6 |
% |
|
|
|
(30bps) |
|||
Adjusted operating profit margin* |
|
|
29.0 |
% |
|
|
31.6 |
% |
|
|
|
(260bps) |
|||
|
|
|
|
|
|
|
|
|
|||||||
Totals may not sum due to rounding |
|
|
|
|
|
|
|
|
|||||||
*Please see the Non-GAAP Financial Measures tables in this release |
|||||||||||||||
Sales of
Crane Currency
|
|
Three Months Ended December 31, |
|
Change |
||||||||||
(unaudited, dollars in millions) |
|
|
2023 |
|
|
|
2022 |
|
|
$ |
|
% |
||
Net sales |
|
$ |
141.8 |
|
|
$ |
107.1 |
|
|
$ |
34.7 |
|
32.4 |
% |
Core sales |
|
|
|
|
|
$ |
31.1 |
|
29.0 |
% |
||||
Foreign exchange |
|
|
|
|
|
$ |
3.6 |
|
3.4 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||
Operating profit |
|
$ |
31.2 |
|
|
$ |
20.3 |
|
|
$ |
10.9 |
|
53.7 |
% |
Adjusted operating profit* |
|
$ |
34.8 |
|
|
$ |
23.8 |
|
|
$ |
11.0 |
|
46.2 |
% |
|
|
|
|
|
|
|
|
|
||||||
Operating profit margin |
|
|
22.0 |
% |
|
|
19.0 |
% |
|
|
|
300bps |
||
Adjusted operating profit margin* |
|
|
24.5 |
% |
|
|
22.2 |
% |
|
|
|
230bps |
||
|
|
|
|
|
|
|
|
|
||||||
Totals may not sum due to rounding |
|
|
|
|
|
|
|
|
||||||
*Please see the Non-GAAP Financial Measures tables in this release |
||||||||||||||
Sales of
Summary of Full Year 2023 Results
|
|
Full Year |
|
Change |
|
|||||||||||
(unaudited, dollars in millions, except per share data) |
|
|
2023 |
|
|
|
2022 |
|
|
$ |
|
% |
2023 Guidance |
|||
Net sales |
|
$ |
1,391.3 |
|
|
$ |
1,339.9 |
|
|
$ |
51.4 |
|
|
3.8 |
% |
|
Core sales |
|
|
|
|
|
$ |
57.5 |
|
|
4.3 |
% |
+ |
||||
Foreign exchange |
|
|
|
|
|
$ |
(6.1 |
) |
|
(0.5 |
) % |
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
286.8 |
|
|
$ |
301.3 |
|
|
$ |
(14.5 |
) |
|
(4.8 |
) % |
|
Adjusted operating profit* |
|
$ |
345.2 |
|
|
$ |
343.5 |
|
|
$ |
1.7 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
20.6 |
% |
|
|
22.5 |
% |
|
|
|
(190bps) |
|
|||
Adjusted operating profit margin* |
|
|
24.8 |
% |
|
|
25.6 |
% |
|
|
|
(80bps) |
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||
GAAP EPS |
|
$ |
3.28 |
|
|
$ |
3.61 |
|
|
|
|
|
|
|||
Adjusted EPS* |
|
$ |
4.16 |
|
|
$ |
4.35 |
|
|
|
|
|
|
|||
Totals may not sum due to rounding |
||||||||||||||||
*Please see the Non-GAAP Financial Measures tables in this release |
||||||||||||||||
Full Year 2023 Results
Full year 2023 sales were
Full year 2023 operating profit was
Full year 2023 GAAP EPS was
Full Year 2023 Cash Flow and Other Financial Metrics
Cash provided by operating activities was
The Company held cash of
Full Year 2024 Guidance
The Company is introducing full year 2024 guidance as shown in the table below. Growth rates below represent growth over full year 2023.
Full Year 2024 Guidance Details |
|
(dollars in millions, except per share data) |
|
CPI Core Sales Growth |
- |
Currency Core Sales Growth |
+ |
Crane NXT Core Sales Growth |
- |
Adjusted EPS |
|
Adjusted Segment Margin |
|
Corporate Expense |
|
Non-Operating Expense, Net |
|
Adjusted Tax Rate |
~ |
Adjusted Free Cash Flow Conversion |
~ |
Diluted Shares |
~57.6 |
Please see the Non-GAAP Financial Measures definitions in this release |
|
First Quarter 2024 Dividend
Crane NXT announced its quarterly dividend of
Conference Call
Crane NXT scheduled a conference call to discuss the fourth quarter and full year financial results, on Thursday, February 15, 2024, at 10:00 A.M. Eastern Time. The earnings call can be accessed via the investor relations section of the Company’s website or by dialing 877-407-6184 or +1-201-389-0877. An accompanying slide presentation and a replay of the live event will also be available on the Company’s website.
About Crane NXT, Co.
Crane NXT is a premier industrial technology company that provides trusted technology solutions to secure, detect, and authenticate what matters most to its customers. Crane NXT is a pioneer in advanced micro-optics technology for securing physical products, and its sophisticated electronic equipment and associated software leverages proprietary core capabilities with detection and sensing technologies. Crane NXT has approximately 4,000 employees with global operations and manufacturing facilities in
On April 3, 2023, Crane NXT, Co. (formerly Crane Holdings, Co.) completed the separation of its wholly-owned subsidiary at that time, Crane Company, in a tax-free distribution of Crane Company shares to Crane NXT stockholders (the "Separation").
Historical financial measures in this release for Crane NXT are presented on a carve-out basis.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations.
Words such as “anticipate(s),” “expect(s),” “intend(s),” “believe(s),” “plan(s),” “may,” “will,” “would,” “could,” “should,” “seek(s),” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. The Company assumes no (and disclaims any) obligation to revise or update these statements to reflect future events or circumstances. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, it can give no assurance that its expectations will be attained. The Company cautions investors not to place undue reliance on any such forward-looking statements.
Risks and uncertainties that could cause actual results to differ materially from the Company's expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations; demand for its products, which is variable and subject to factors beyond its control; fluctuation in the prices of, or disruption in its ability to source, components and raw materials, and delays in the distribution of its products; information systems and technology networks failures, breaches in data security, theft of personally identifiable and other information, and non-compliance with its contractual or other legal obligations regarding such information; risks associated with conducting a substantial portion of its business outside the
Readers should carefully review Crane NXT, Co.’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane NXT, Co.’s Annual Report on Form 10-K for the year ended December 31, 2022 and the other documents Crane NXT, Co. and its subsidiaries file from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
(Financial Tables Follow)
CRANE NXT, CO. AND SUBSIDIARIES Consolidated and Combined Condensed Statements of Operations Data (unaudited, in millions, except per share data) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales: |
|
|
|
|
|
|
|
||||||||
Crane Payment Innovations |
$ |
215.1 |
|
|
$ |
231.1 |
|
|
$ |
886.4 |
|
|
$ |
874.3 |
|
Crane Currency |
|
141.8 |
|
|
|
107.1 |
|
|
|
504.9 |
|
|
|
465.6 |
|
Total net sales |
$ |
356.9 |
|
|
$ |
338.2 |
|
|
$ |
1,391.3 |
|
|
$ |
1,339.9 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss): |
|
|
|
|
|
|
|
||||||||
Crane Payment Innovations |
$ |
56.5 |
|
|
$ |
61.5 |
|
|
$ |
242.8 |
|
|
$ |
217.1 |
|
Crane Currency |
|
31.2 |
|
|
|
20.3 |
|
|
|
116.3 |
|
|
|
117.3 |
|
Corporate |
|
(15.3 |
) |
|
|
(8.8 |
) |
|
|
(72.3 |
) |
|
|
(33.1 |
) |
Total operating profit |
$ |
72.4 |
|
|
$ |
73.0 |
|
|
$ |
286.8 |
|
|
$ |
301.3 |
|
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
0.4 |
|
|
|
0.1 |
|
|
|
1.1 |
|
|
|
0.2 |
|
Interest expense |
|
(10.8 |
) |
|
|
(10.5 |
) |
|
|
(48.1 |
) |
|
|
(41.9 |
) |
Related party interest expense |
|
— |
|
|
|
(3.5 |
) |
|
|
(2.5 |
) |
|
|
(14.4 |
) |
Miscellaneous (expense) income, net |
|
(0.6 |
) |
|
|
(0.2 |
) |
|
|
2.5 |
|
|
|
3.1 |
|
Income before income taxes |
|
61.4 |
|
|
|
58.9 |
|
|
|
239.8 |
|
|
|
248.3 |
|
Provision (benefit) for income taxes |
|
11.9 |
|
|
|
(3.1 |
) |
|
|
51.5 |
|
|
|
43.4 |
|
Net income attributable to common shareholders |
$ |
49.5 |
|
|
$ |
62.0 |
|
|
$ |
188.3 |
|
|
$ |
204.9 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per diluted share1 |
$ |
0.86 |
|
|
$ |
1.09 |
|
|
$ |
3.28 |
|
|
$ |
3.61 |
|
|
|
|
|
|
|
|
|
||||||||
Average diluted shares outstanding1 |
|
57.6 |
|
|
|
56.7 |
|
|
|
57.5 |
|
|
|
56.7 |
|
Average basic shares outstanding1 |
|
56.8 |
|
|
|
56.7 |
|
|
|
56.8 |
|
|
|
56.7 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental data: |
|
|
|
|
|
|
|
||||||||
Cost of sales |
$ |
191.4 |
|
|
$ |
176.9 |
|
|
$ |
737.2 |
|
|
$ |
713.7 |
|
Selling, general and administrative |
|
92.6 |
|
|
|
82.1 |
|
|
|
366.8 |
|
|
|
318.7 |
|
Restructuring charges |
|
0.5 |
|
|
|
6.2 |
|
|
|
0.5 |
|
|
|
6.2 |
|
|
|
|
|
|
|
|
|
||||||||
1 The shares presented for periods prior to the Separation are those of Crane NXT, Co. at April 3, 2023. The shares presented for the three months and twelve months ended December 2023 are based on the average diluted and basic shares outstanding of Crane NXT, Co. after the Separation. |
|||||||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Consolidated and Combined Condensed Balance Sheets (unaudited, in millions) |
|||||
|
|
Balance as of December 31, |
|||
|
|
|
2023 |
|
2022 |
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
|
$ |
227.2 |
$ |
230.7 |
Accounts receivable, net |
|
|
214.9 |
|
205.1 |
Inventories, net |
|
|
157.1 |
|
145.6 |
Other current assets |
|
|
45.2 |
|
41.9 |
Total current assets |
|
|
644.4 |
|
623.3 |
|
|
|
|
||
Property, plant and equipment, net |
|
|
261.2 |
|
261.6 |
Long-term deferred tax assets |
|
|
2.7 |
|
6.3 |
Other assets |
|
|
71.0 |
|
56.7 |
Intangible assets, net |
|
|
308.9 |
|
344.9 |
Goodwill |
|
|
841.2 |
|
836.6 |
Total assets |
|
$ |
2,129.4 |
$ |
2,129.4 |
|
|
|
|
||
Liabilities and equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Short-term borrowings |
|
$ |
4.6 |
$ |
299.7 |
Accounts payable |
|
|
106.5 |
|
109.6 |
Accrued liabilities |
|
|
210.5 |
|
204.2 |
|
|
|
12.8 |
|
17.9 |
Total current liabilities |
|
|
334.4 |
|
631.4 |
|
|
|
|
||
Long-term debt |
|
|
640.3 |
|
545.1 |
Accrued pension and postretirement benefits |
|
|
22.5 |
|
21.1 |
Long-term deferred tax liability |
|
|
104.5 |
|
109.5 |
Other liabilities |
|
|
63.7 |
|
38.5 |
|
|
|
|
||
Total equity |
|
|
964.0 |
|
783.8 |
Total liabilities and equity |
|
$ |
2,129.4 |
$ |
2,129.4 |
CRANE NXT, CO. AND SUBSIDIARIES Consolidated and Combined Condensed Statements of Cash Flows (unaudited, in millions) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
49.5 |
|
|
$ |
62.0 |
|
|
$ |
188.3 |
|
|
$ |
204.9 |
|
Adjustments to reconcile net income to net cash flows provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
18.6 |
|
|
|
19.4 |
|
|
|
77.6 |
|
|
|
78.7 |
|
Stock-based compensation expense |
|
|
2.9 |
|
|
|
2.5 |
|
|
|
10.3 |
|
|
|
9.3 |
|
Defined benefit plans and postretirement credit |
|
|
(0.5 |
) |
|
|
(0.3 |
) |
|
|
(1.1 |
) |
|
|
(0.3 |
) |
Deferred income taxes |
|
|
2.8 |
|
|
|
(41.4 |
) |
|
|
7.6 |
|
|
|
(28.4 |
) |
Cash provided by operating working capital |
|
|
12.2 |
|
|
|
34.8 |
|
|
|
— |
|
|
|
39.3 |
|
Other |
|
|
(7.0 |
) |
|
|
(1.9 |
) |
|
|
(6.4 |
) |
|
|
2.5 |
|
Total provided by operating activities |
|
$ |
78.5 |
|
|
$ |
75.1 |
|
|
$ |
276.3 |
|
|
$ |
306.0 |
|
Investing activities: |
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
(15.0 |
) |
|
|
(9.1 |
) |
|
|
(31.1 |
) |
|
|
(21.3 |
) |
Total used for investing activities |
|
$ |
(15.0 |
) |
|
$ |
(9.1 |
) |
|
$ |
(31.1 |
) |
|
$ |
(21.3 |
) |
Financing activities: |
|
|
|
|
|
|
|
|
||||||||
Dividends paid |
|
|
(7.9 |
) |
|
|
— |
|
|
|
(23.7 |
) |
|
|
— |
|
Stock options exercised, net of shares reacquired |
|
|
2.3 |
|
|
|
— |
|
|
|
4.4 |
|
|
|
— |
|
Debt issuance costs |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(5.7 |
) |
|
|
— |
|
Repayment of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
(300.0 |
) |
|
|
— |
|
Proceeds from revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
20.0 |
|
|
|
— |
|
Repayments of revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
(20.0 |
) |
|
|
— |
|
Proceeds from term loan |
|
|
— |
|
|
|
— |
|
|
|
350.0 |
|
|
|
— |
|
Repayment of term loan |
|
|
(70.0 |
) |
|
|
— |
|
|
|
(245.0 |
) |
|
|
— |
|
Net transfers to Crane |
|
|
— |
|
|
|
(46.4 |
) |
|
|
(32.5 |
) |
|
|
(135.0 |
) |
Total used for financing activities |
|
$ |
(76.0 |
) |
|
$ |
(46.4 |
) |
|
$ |
(252.5 |
) |
|
$ |
(135.0 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate on cash and cash equivalents |
|
|
10.7 |
|
|
|
14.8 |
|
|
|
3.8 |
|
|
|
(20.2 |
) |
(Decrease) increase in cash and cash equivalents |
|
|
(1.8 |
) |
|
|
34.4 |
|
|
|
(3.5 |
) |
|
|
129.5 |
|
Cash and cash equivalents at beginning of period |
|
|
229.0 |
|
|
|
196.3 |
|
|
|
230.7 |
|
|
|
101.2 |
|
Cash and cash equivalents at end of period |
|
$ |
227.2 |
|
|
$ |
230.7 |
|
|
$ |
227.2 |
|
|
$ |
230.7 |
|
CRANE NXT, CO. AND SUBSIDIARIES Order Backlog (unaudited, in millions) |
|||||||||||||||
|
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|||||
Crane Payment Innovations |
|
$ |
216.8 |
|
$ |
231.6 |
|
$ |
300.7 |
|
$ |
348.7 |
|
$ |
372.9 |
Currency |
|
$ |
243.0 |
|
$ |
223.3 |
|
$ |
184.4 |
|
$ |
207.3 |
|
$ |
192.7 |
Total backlog |
|
$ |
459.8 |
|
$ |
454.9 |
|
$ |
485.1 |
|
$ |
556.0 |
|
$ |
565.6 |
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures (unaudited, in millions, except per share data) |
||||||||||||||||
|
|
Three Months Ended December 31, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
||||||||
Net sales (GAAP) |
|
$ |
356.9 |
|
|
|
|
$ |
338.2 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (GAAP) |
|
$ |
72.4 |
|
|
|
|
$ |
73.0 |
|
|
|
||||
Operating profit margin (GAAP) |
|
|
20.3 |
% |
|
|
|
|
21.6 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
|
8.9 |
|
|
|
|
|
8.9 |
|
|
|
||||
Stock-based compensation adjustment1 |
|
|
0.4 |
|
|
|
|
|
— |
|
|
|
||||
Restructuring charges |
|
|
0.5 |
|
|
|
|
|
6.2 |
|
|
|
||||
Transaction related expenses1 |
|
|
1.2 |
|
|
|
|
|
— |
|
|
|
||||
Adjusted operating profit (Non-GAAP) |
|
$ |
83.4 |
|
|
|
|
$ |
88.1 |
|
|
|
||||
Adjusted operating profit margin (Non-GAAP) |
|
|
23.4 |
% |
|
|
|
|
26.0 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders (GAAP) |
|
$ |
49.5 |
|
|
$ |
0.86 |
|
|
$ |
62.0 |
|
|
$ |
1.09 |
|
Intangible asset amortization |
|
|
8.9 |
|
|
|
0.15 |
|
|
|
8.9 |
|
|
|
0.16 |
|
Stock-based compensation adjustment1 |
|
|
0.4 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Restructuring charges |
|
|
0.5 |
|
|
|
0.01 |
|
|
|
6.2 |
|
|
|
0.11 |
|
Transaction related expenses1 |
|
|
2.6 |
|
|
|
0.05 |
|
|
|
— |
|
|
|
— |
|
Impact of pension curtailments and settlements |
|
|
(0.4 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Interest adjustment2 |
|
|
— |
|
|
|
— |
|
|
|
3.5 |
|
|
|
0.06 |
|
Tax adjustments |
|
|
(4.5 |
) |
|
|
(0.08 |
) |
|
|
(4.8 |
) |
|
|
(0.08 |
) |
Adjusted net income (Non-GAAP) |
|
$ |
57.0 |
|
|
$ |
0.99 |
|
|
$ |
75.8 |
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA and Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders (GAAP) |
|
$ |
49.5 |
|
|
|
|
$ |
62.0 |
|
|
|
||||
Net income margin (GAAP) |
|
|
13.9 |
% |
|
|
|
|
18.3 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjustments to net income attributable to common shareholders: |
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
|
11.9 |
|
|
|
|
|
(3.1 |
) |
|
|
||||
Interest expense, net |
|
|
10.4 |
|
|
|
|
|
13.9 |
|
|
|
||||
Depreciation |
|
|
9.0 |
|
|
|
|
|
10.4 |
|
|
|
||||
Intangible asset amortization |
|
|
8.9 |
|
|
|
|
|
8.9 |
|
|
|
||||
Stock-based compensation adjustment1 |
|
|
0.4 |
|
|
|
|
|
— |
|
|
|
||||
Restructuring charges |
|
|
0.5 |
|
|
|
|
|
6.2 |
|
|
|
||||
Transaction related expenses1 |
|
|
2.6 |
|
|
|
|
|
— |
|
|
|
||||
Impact of pension curtailments and settlements |
|
|
(0.4 |
) |
|
|
|
|
— |
|
|
|
||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
92.8 |
|
|
|
|
$ |
98.3 |
|
|
|
||||
Adjusted EBITDA Margin (Non-GAAP) |
|
|
26.0 |
% |
|
|
|
|
29.1 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Totals may not sum due to rounding |
|
|
|
|
|
|
|
|
||||||||
1 Related to the Separation. |
|
|
|
|
|
|
|
|
||||||||
2 Related party interest with Crane Company incurred prior to the Separation. |
|
|
||||||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures (unaudited, in millions, except per share data) |
||||||||||||||||
|
|
Twelve Months Ended December 31, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
||||||||
Net sales (GAAP) |
|
$ |
1,391.3 |
|
|
|
|
$ |
1,339.9 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (GAAP) |
|
$ |
286.8 |
|
|
|
|
$ |
301.3 |
|
|
|
||||
Operating profit margin (GAAP) |
|
|
20.6 |
% |
|
|
|
|
22.5 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
|
35.9 |
|
|
|
|
|
36.0 |
|
|
|
||||
Stock-based compensation adjustment1 |
|
|
1.1 |
|
|
|
|
|
— |
|
|
|
||||
Restructuring charges |
|
|
0.5 |
|
|
|
|
|
6.2 |
|
|
|
||||
Transaction related expenses1 |
|
|
20.9 |
|
|
|
|
|
— |
|
|
|
||||
Adjusted operating profit (Non-GAAP) |
|
$ |
345.2 |
|
|
|
|
$ |
343.5 |
|
|
|
||||
Adjusted operating profit margin (Non-GAAP) |
|
|
24.8 |
% |
|
|
|
|
25.6 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders (GAAP) |
|
$ |
188.3 |
|
|
$ |
3.28 |
|
|
$ |
204.9 |
|
|
$ |
3.61 |
|
Intangible asset amortization |
|
|
35.9 |
|
|
|
0.62 |
|
|
|
36.0 |
|
|
|
0.63 |
|
Stock-based compensation adjustment1 |
|
|
1.1 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Restructuring charges |
|
|
0.5 |
|
|
|
0.01 |
|
|
|
6.2 |
|
|
|
0.11 |
|
Transaction related expenses1 |
|
|
22.3 |
|
|
|
0.39 |
|
|
|
— |
|
|
|
— |
|
Impact of pension curtailments and settlements |
|
|
(0.4 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Interest adjustment2 |
|
|
2.5 |
|
|
|
0.04 |
|
|
|
14.4 |
|
|
|
0.25 |
|
Tax adjustments |
|
|
(10.9 |
) |
|
|
(0.19 |
) |
|
|
(14.6 |
) |
|
|
(0.26 |
) |
Adjusted net income (Non-GAAP) |
|
$ |
239.3 |
|
|
$ |
4.16 |
|
|
$ |
246.9 |
|
|
$ |
4.35 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA and Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders (GAAP) |
|
$ |
188.3 |
|
|
|
|
$ |
204.9 |
|
|
|
||||
Net income margin (GAAP) |
|
|
13.5 |
% |
|
|
|
|
15.3 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjustments to net income attributable to common shareholders: |
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
51.5 |
|
|
|
|
|
43.4 |
|
|
|
||||
Interest expense, net |
|
|
49.5 |
|
|
|
|
|
56.1 |
|
|
|
||||
Depreciation |
|
|
39.6 |
|
|
|
|
|
42.2 |
|
|
|
||||
Intangible asset amortization |
|
|
35.9 |
|
|
|
|
|
36.0 |
|
|
|
||||
Stock-based compensation adjustment1 |
|
|
1.1 |
|
|
|
|
|
— |
|
|
|
||||
Restructuring charges |
|
|
0.5 |
|
|
|
|
|
6.2 |
|
|
|
||||
Transaction related expenses1 |
|
|
22.3 |
|
|
|
|
|
— |
|
|
|
||||
Impact of pension curtailments and settlements |
|
|
(0.4 |
) |
|
|
|
|
— |
|
|
|
||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
388.3 |
|
|
|
|
$ |
388.8 |
|
|
|
||||
Adjusted EBITDA Margin (Non-GAAP) |
|
|
27.9 |
% |
|
|
|
|
29.0 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Totals may not sum due to rounding |
|
|
|
|
|
|
|
|
||||||||
1 Related to the Separation. |
|
|
|
|
|
|
|
|
||||||||
2 Related party interest with Crane Company incurred prior to the Separation. |
|
|
||||||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures by Segment (unaudited, in millions) |
|||||||||||||||
Three Months Ended December 31, 2023 |
Crane Payment Innovations |
|
Crane Currency |
|
Corporate |
|
Total Company |
||||||||
Net sales |
$ |
215.1 |
|
|
$ |
141.8 |
|
|
$ |
— |
|
|
$ |
356.9 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss) (GAAP) |
$ |
56.5 |
|
|
$ |
31.2 |
|
|
$ |
(15.3 |
) |
|
$ |
72.4 |
|
Operating profit margin (GAAP) |
|
26.3 |
% |
|
|
22.0 |
% |
|
|
|
|
20.3 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit (loss): |
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
5.3 |
|
|
|
3.6 |
|
|
|
— |
|
|
|
8.9 |
|
Stock-based compensation adjustment1 |
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
0.4 |
|
Restructuring charges |
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
Transaction related expenses1 |
|
— |
|
|
|
— |
|
|
|
1.2 |
|
|
|
1.2 |
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
62.3 |
|
|
$ |
34.8 |
|
|
$ |
(13.7 |
) |
|
$ |
83.4 |
|
Adjusted operating profit margin (non-GAAP) |
|
29.0 |
% |
|
|
24.5 |
% |
|
|
|
|
23.4 |
% |
||
|
|||||||||||||||
Three Months Ended December 31, 2022 |
Crane Payment Innovations |
|
Crane Currency |
|
Corporate |
|
Total Company |
||||||||
Net sales |
$ |
231.1 |
|
|
$ |
107.1 |
|
|
$ |
— |
|
|
$ |
338.2 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss) (GAAP) |
$ |
61.5 |
|
|
$ |
20.3 |
|
|
$ |
(8.8 |
) |
|
$ |
73.0 |
|
Operating profit margin (GAAP) |
|
26.6 |
% |
|
|
19.0 |
% |
|
|
|
|
21.6 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit (loss): |
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
5.4 |
|
|
|
3.5 |
|
|
|
— |
|
|
|
8.9 |
|
Restructuring charges |
|
6.2 |
|
|
|
— |
|
|
|
— |
|
|
|
6.2 |
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
73.1 |
|
|
$ |
23.8 |
|
|
$ |
(8.8 |
) |
|
$ |
88.1 |
|
Adjusted operating profit margin (non-GAAP) |
|
31.6 |
% |
|
|
22.2 |
% |
|
|
|
|
26.0 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Totals may not sum due to rounding |
|
|
|
|
|||||||||||
1 Related to the Separation. |
|
|
|
|
|||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures by Segment (unaudited, in millions) |
|||||||||||||||
Twelve Months Ended December 31, 2023 |
Crane Payment Innovations |
|
Crane Currency |
|
Corporate |
|
Total Company |
||||||||
Net sales |
$ |
886.4 |
|
|
$ |
504.9 |
|
|
$ |
— |
|
|
$ |
1,391.3 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss) (GAAP) |
$ |
242.8 |
|
|
$ |
116.3 |
|
|
$ |
(72.3 |
) |
|
$ |
286.8 |
|
Operating profit margin (GAAP) |
|
27.4 |
% |
|
|
23.0 |
% |
|
|
|
|
20.6 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit (loss): |
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
21.7 |
|
|
|
14.2 |
|
|
|
— |
|
|
|
35.9 |
|
Stock-based compensation adjustment1 |
|
— |
|
|
|
— |
|
|
|
1.1 |
|
|
|
1.1 |
|
Restructuring charges |
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
Transaction related expenses1 |
|
— |
|
|
|
— |
|
|
|
20.9 |
|
|
|
20.9 |
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
265.0 |
|
|
$ |
130.5 |
|
|
$ |
(50.3 |
) |
|
$ |
345.2 |
|
Adjusted operating profit margin (non-GAAP) |
|
29.9 |
% |
|
|
25.8 |
% |
|
|
|
|
24.8 |
% |
||
|
|||||||||||||||
Twelve Months Ended December 31, 2022 |
Crane Payment Innovations |
|
Crane Currency |
|
Corporate |
|
Total Company |
||||||||
Net sales |
$ |
874.3 |
|
|
$ |
465.6 |
|
|
$ |
— |
|
|
$ |
1,339.9 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss) (GAAP) |
$ |
217.1 |
|
|
$ |
117.3 |
|
|
$ |
(33.1 |
) |
|
$ |
301.3 |
|
Operating profit margin (GAAP) |
|
24.8 |
% |
|
|
25.2 |
% |
|
|
|
|
22.5 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit (loss): |
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
21.8 |
|
|
|
14.2 |
|
|
|
— |
|
|
|
36.0 |
|
Restructuring charges |
|
6.2 |
|
|
|
— |
|
— |
|
— |
|
|
|
6.2 |
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
245.1 |
|
|
$ |
131.5 |
|
|
$ |
(33.1 |
) |
|
$ |
343.5 |
|
Adjusted operating profit margin (non-GAAP) |
|
28.0 |
% |
|
|
28.2 |
% |
|
|
|
|
25.6 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Totals may not sum due to rounding |
|
|
|
|
|||||||||||
1 Related to the Separation. |
|
|
|
|
|||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Free Cash Flow, Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion (unaudited, in millions) |
||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||
Cash Flow Items |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Cash provided by operating activities (GAAP) |
|
$ |
78.5 |
|
$ |
75.1 |
|
|
$ |
276.3 |
|
$ |
306.0 |
|
Less: Capital expenditures |
|
|
(15.0 |
) |
|
(9.1 |
) |
|
|
(31.1 |
) |
|
(21.3 |
) |
Free cash flow |
|
$ |
63.5 |
|
$ |
66.0 |
|
|
$ |
245.2 |
|
$ |
284.7 |
|
Transaction related expenses1 |
|
|
1.3 |
|
|
— |
|
|
|
20.6 |
|
|
— |
|
Adjusted free cash flow (non-GAAP) |
|
$ |
64.8 |
|
$ |
66.0 |
|
|
$ |
265.8 |
|
$ |
284.7 |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income (non-GAAP)* |
|
$ |
57.0 |
|
$ |
75.8 |
|
|
$ |
239.3 |
|
$ |
246.9 |
|
Adjusted free cash flow conversion (non-GAAP) |
|
|
114 |
% |
|
87 |
% |
|
|
111 |
% |
|
115 |
% |
|
|
|
|
|
|
|
||||||||
1 Represents cash paid for transaction related expenses associated with the Separation. |
||||||||||||||
*Please see the Non-GAAP Financial Measures tables in this release. |
|
|
|
|
||||||||||
Net Leverage Ratio (unaudited, in millions, except net leverage ratio) |
||||
|
|
December 31, 2023 |
||
Total debt (excluding deferred financing costs of |
|
$ |
655.0 |
|
Less: Cash |
|
|
(227.2 |
) |
Net debt |
|
$ |
427.8 |
|
|
|
|
||
TTM Adjusted EBITDA (non-GAAP)* |
|
$ |
388.3 |
|
Net leverage ratio |
|
|
1.1 |
|
|
|
|
||
*Please see the Non-GAAP Financial Measures tables in this release. |
|
|
||
Crane NXT reports its financial results in accordance with
Reconciliations of certain forward-looking and projected non-GAAP measures, including Adjusted segment margin and Adjusted EPS, to the closest corresponding GAAP measure are not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, which could have a potentially significant impact on Crane NXT's future GAAP results. Crane NXT calculates Adjusted segment margin and Adjusted EPS as described below.
- "Adjusted segment margin" is calculated as Adjusted segment profit divided by sales. Adjusted segment profit is calculated as segment profit excluding intangible asset amortization, restructuring charges, stock-based compensation adjustment resulting from the Separation and transaction related expenses such as tax charges, professional fees, and incremental costs related to the Separation.
- "Adjusted EPS" is calculated as Adjusted net income divided by diluted shares. Adjusted net income is calculated as net income excluding intangible asset amortization, restructuring charges, impact of pension curtailments and settlements, stock-based compensation adjustment resulting from the Separation, transaction related expenses such as tax charges, professional fees, and incremental costs related to the Separation, and including the tax effect of these adjustments and other discrete tax items.
The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations:
- "Adjusted operating profit" and "Adjusted operating margin" add back to operating profit items which are outside of the Company's core performance, some of which may or may not be non-recurring, and which management believes may complicate the interpretation of the Company’s underlying earnings and operational performance. These items include income and expense such as: intangible asset amortization, restructuring charges, stock-based compensation adjustment resulting from the Separation and transaction related expenses. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Adjusted net income" and "Adjusted EPS" exclude items which are outside of the Company's core performance, some of which may or may not be non-recurring, and which management believes may complicate the presentation of the Company’s underlying earnings and operational performance. These measures include income and expense items that impacted operating profit such as: intangible asset amortization, restructuring charges, impact of pension curtailments and settlements, stock-based compensation adjustment resulting from the Separation, transaction related expenses related to the Separation, the tax effect of these items and other discrete tax items. Additionally, these non-GAAP financial measures exclude income and expense items that impacted net income and earnings per diluted share such as pre-Separation related party interest expense. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- “Free cash flow,” “Adjusted free cash flow” and "Adjusted free cash flow conversion” provide supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of free cash flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company’s long-term debt. Free cash flow is calculated as cash provided by operating activities less capital spending. Adjusted free cash flow is calculated as free cash flow adjusted for certain cash items which management believes may complicate the interpretation of the Company’s underlying free cash flow performance such as certain transaction related cash flow items associated with the Separation. Adjusted free cash flow conversion is calculated as Adjusted free cash flow divided by Adjusted net income. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future cash flows that are complementary to GAAP metrics.
- "Adjusted EBITDA" and "Adjusted EBITDA margin" exclude net interest expense, tax expense and depreciation and amortization expense from net income, as well as Special items such as restructuring charges, impact of pension curtailments and settlements, stock-based compensation adjustment resulting from the Separation and transaction related expenses. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Net leverage ratio" refers to Net debt divided by trailing twelve months (TTM) Adjusted EBITDA. "Net debt" represents total debt (excluding deferred financing costs) less cash and cash equivalents. Management believes that these non-GAAP financial measures provide useful information about our ability to satisfy our debt obligation with currently available funds.
- "Core sales," exclude currency effects and, where applicable, the first-year impacts of acquisitions and divestitures from sales. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in identifying underlying growth trends in our business and facilitate comparison of our sales performance with prior and future periods that are complementary to GAAP metrics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214389708/en/
Rima Hyder
Vice President, Investor Relations
+1-781-755-6886
rima.hyder@cranenxt.com
Source: Crane NXT, Co.
FAQ
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