Crane NXT, Co. Announces Strong Second Quarter Results and Raises 2023 Guidance
- Crane NXT reported strong second quarter results with GAAP EPS of $0.75 and Adjusted EPS of $1.12. Core sales grew by 6%. The company raised its full year Adjusted EPS guidance to a range of $3.85 to $4.15. Crane NXT declared a third quarter dividend of $0.14 per share.
- None.
Second Quarter Highlights
-
GAAP earnings per diluted share (EPS) of
, and Adjusted EPS of$0.75 .$1.12
-
Second quarter core sales growth of
6% 1.
-
GAAP operating profit margin of
19.5% , and Adjusted operating profit margin of26.5% .
-
Raising full year Adjusted EPS guidance to a range of
to$3.85 , from prior range of$4.15 to$3.75 .$4.05
-
Declaring third quarter dividend of
per share.$0.14
Aaron W. Saak, Crane NXT's President and Chief Executive Officer, stated: "We delivered very strong second quarter results, our first quarter as a newly independent company. Core sales increased
Mr. Saak continued: "Our results over the last two quarters were very strong. That performance, along with continued customer demand and our sizeable backlog, give us confidence in our outlook for the second half of 2023. As a result of those factors, we are raising the midpoint of our adjusted EPS guidance range by
_____________________________________
1 References to "core sales," "core backlog" and "core growth" exclude currency effects and, where applicable, the first-year impacts of acquisitions and divestitures.
Second Quarter 2023 Segment Results
All comparisons detailed in this section refer to operating results for the second quarter 2023 versus the second quarter 2022.
Crane Payment Innovations
|
|
Three Months Ended
|
|
Change |
|||||||||||
(dollars in millions) |
|
2023 |
|
2022 |
|
$ |
|
% |
|||||||
Net sales |
|
$ |
226 |
|
|
$ |
211 |
|
|
$ |
15 |
|
|
|
|
Core sales |
|
|
|
|
|
$ |
17 |
|
|
|
|||||
Foreign exchange |
|
|
|
|
|
$ |
(2 |
) |
|
(1)% |
|||||
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
65 |
|
|
$ |
51 |
|
|
$ |
14 |
|
|
|
|
Adjusted operating profit* |
|
$ |
70 |
|
|
$ |
57 |
|
|
$ |
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
28.7 |
% |
|
|
24.3 |
% |
|
|
|
440bps |
|||
Adjusted operating profit margin* |
|
|
31.1 |
% |
|
|
26.8 |
% |
|
|
|
430bps |
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Crane Currency
|
|
Three Months Ended
|
|
Change |
|||||||||||
(dollars in millions) |
|
2023 |
|
2022 |
|
$ |
|
% |
|||||||
Net sales |
|
$ |
127 |
|
|
$ |
123 |
|
|
$ |
4 |
|
|
|
|
Core sales |
|
|
|
|
|
$ |
5 |
|
|
|
|||||
Foreign exchange |
|
|
|
|
|
$ |
(1 |
) |
|
(1)% |
|||||
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
35 |
|
|
$ |
29 |
|
|
$ |
5 |
|
|
|
|
Adjusted operating profit* |
|
$ |
38 |
|
|
$ |
33 |
|
|
$ |
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
27.4 |
% |
|
|
24.0 |
% |
|
|
|
340bps |
|||
Adjusted operating profit margin* |
|
|
30.2 |
% |
|
|
26.9 |
% |
|
|
|
330bps |
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Cash Flow and Other Financial Metrics
During the second quarter of 2023, cash provided by operating activities was
As of June 30, 2023, the Company held cash of
2023 Updated Outlook and Guidance
The Company is revising its full year 2023 Adjusted EPS guidance range to
Key assumptions for the Company's revised guidance include:
-
Core sales growth of +
3% to +5% (prior +2% to +4% ).
-
Adjusted segment margin of
27% + (unchanged).
-
Corporate costs of
~ (unchanged).$50 million
-
Net non-operating expense of
~ (unchanged).$50 million
-
Adjusted tax rate of ~
20% (unchanged).
- Diluted shares of ~57.3 million (unchanged).
Additional details of the Company's outlook and guidance are included in the presentation that accompanies this earnings release and are available on the Company's website at www.cranenxt.com under the "Investors, Events & Presentation" section.
Declaring Third Quarter Dividend
Crane NXT announced its quarterly dividend of
Conference Call
Crane NXT scheduled a conference call to discuss the second quarter financial results on Tuesday, August 8, 2023, at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at www.cranenxt.com. An archived webcast will also be available to replay this conference call directly from the Company’s website under the "Investors, Events & Presentations" section. Slides that accompany the conference call will 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
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 that may harm its business, results of operation and stock price; business and economic disruptions associated with extraordinary public health issues such as large-scale health epidemics or pandemics; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-compliance with its contractual or other legal obligations regarding such information; its ability to source components and raw materials from suppliers, including disruptions and delays in its supply chain; demand for its products, which is variable and subject to factors beyond its control; governmental regulations and failure to comply with those regulations; fluctuations in the prices of its components and raw materials; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow its business as planned; risks from environmental liabilities, costs, litigation and violations that could adversely affect its financial condition, results of operations, cash flows and reputation; 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's 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales: |
|
|
|
|
|
|
|
||||||||
Crane Payment Innovations |
$ |
225.9 |
|
|
$ |
211.4 |
|
|
$ |
449.7 |
|
|
$ |
422.4 |
|
Crane Currency |
|
126.5 |
|
|
|
122.6 |
|
|
|
231.8 |
|
|
|
244.2 |
|
Total net sales |
$ |
352.4 |
|
|
$ |
334.0 |
|
|
$ |
681.5 |
|
|
$ |
666.6 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss): |
|
|
|
|
|
|
|
||||||||
Crane Payment Innovations |
$ |
64.8 |
|
|
$ |
51.3 |
|
|
$ |
126.6 |
|
|
$ |
100.3 |
|
Crane Currency |
|
34.7 |
|
|
|
29.4 |
|
|
|
52.3 |
|
|
|
64.6 |
|
Corporate |
|
(30.7 |
) |
|
|
(7.3 |
) |
|
|
(44.2 |
) |
|
|
(14.6 |
) |
Total operating profit |
$ |
68.8 |
|
|
$ |
73.4 |
|
|
$ |
134.7 |
|
|
$ |
150.3 |
|
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
0.2 |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.1 |
|
Interest expense |
|
(14.1 |
) |
|
|
(10.5 |
) |
|
|
(24.5 |
) |
|
|
(21.0 |
) |
Related party interest expense |
|
— |
|
|
|
(3.6 |
) |
|
|
(2.5 |
) |
|
|
(7.3 |
) |
Miscellaneous income, net |
|
1.0 |
|
|
|
2.1 |
|
|
|
2.4 |
|
|
|
2.9 |
|
Income before income taxes |
|
55.9 |
|
|
|
61.5 |
|
|
|
110.5 |
|
|
|
125.0 |
|
Provision for income taxes |
|
12.7 |
|
|
|
12.7 |
|
|
|
23.6 |
|
|
|
26.7 |
|
Net income attributable to common shareholders |
$ |
43.2 |
|
|
$ |
48.8 |
|
|
$ |
86.9 |
|
|
$ |
98.3 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per diluted share1 |
$ |
0.75 |
|
|
$ |
0.86 |
|
|
$ |
1.51 |
|
|
$ |
1.73 |
|
|
|
|
|
|
|
|
|
||||||||
Average diluted shares outstanding1 |
|
57.4 |
|
|
|
56.7 |
|
|
|
57.4 |
|
|
|
56.7 |
|
Average basic shares outstanding1 |
|
56.8 |
|
|
|
56.7 |
|
|
|
56.8 |
|
|
|
56.7 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental data: |
|
|
|
|
|
|
|
||||||||
Cost of sales |
$ |
184.0 |
|
|
$ |
182.8 |
|
|
$ |
358.4 |
|
|
$ |
361.9 |
|
Selling, general and administrative |
|
99.6 |
|
|
|
77.8 |
|
|
|
188.4 |
|
|
|
154.4 |
|
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 six months ended June 2023 are the second quarter average diluted and basic shares outstanding of Crane NXT, Co. |
CRANE NXT, CO. AND SUBSIDIARIES Consolidated and Combined Condensed Balance Sheets (unaudited, in millions) |
|||||
|
|
June 30,
|
December 31,
|
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
|
$ |
276.9 |
$ |
230.7 |
Accounts receivable, net of allowance for credit losses of |
|
|
200.9 |
|
205.1 |
Inventories, net |
|
|
173.8 |
|
145.6 |
Other current assets |
|
|
49.6 |
|
41.9 |
Total current assets |
|
|
701.2 |
|
623.3 |
|
|
|
|
||
Property, plant and equipment, net |
|
|
251.3 |
|
261.6 |
Long-term deferred tax assets |
|
|
4.3 |
|
6.3 |
Other assets |
|
|
77.9 |
|
56.7 |
Intangible assets, net |
|
|
325.0 |
|
344.9 |
Goodwill |
|
|
835.3 |
|
836.6 |
Total assets |
|
$ |
2,195.0 |
$ |
2,129.4 |
|
|
|
|
||
Liabilities and equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Short-term borrowings |
|
$ |
9.4 |
$ |
299.7 |
Accounts payable |
|
|
100.8 |
|
109.6 |
Accrued liabilities |
|
|
198.5 |
|
204.2 |
|
|
|
8.2 |
|
17.9 |
Total current liabilities |
|
|
316.9 |
|
631.4 |
|
|
|
|
||
Long-term debt |
|
|
829.6 |
|
545.1 |
Accrued pension and postretirement benefits |
|
|
20.4 |
|
21.1 |
Long-term deferred tax liability |
|
|
105.1 |
|
109.5 |
Other liabilities |
|
|
67.8 |
|
38.5 |
|
|
|
|
||
Total equity |
|
|
855.2 |
|
783.8 |
Total liabilities and equity |
|
$ |
2,195.0 |
$ |
2,129.4 |
CRANE NXT, CO. AND SUBSIDIARIES Consolidated and Combined Condensed Statements of Cash Flows (unaudited, in millions) |
|||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||||||
Operating activities: |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
43.2 |
|
|
$ |
48.8 |
|
|
$ |
86.9 |
|
|
$ |
98.3 |
|
|
Adjustments to reconcile net income to net cash flows provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
19.5 |
|
|
|
20.0 |
|
|
|
38.5 |
|
|
|
39.9 |
|
|
Stock-based compensation expense |
|
|
2.4 |
|
|
|
2.4 |
|
|
|
4.7 |
|
|
|
4.5 |
|
|
Defined benefit plans and postretirement credit |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
Deferred income taxes |
|
|
1.7 |
|
|
|
3.6 |
|
|
|
4.8 |
|
|
|
7.6 |
|
|
Cash (used for) provided by operating working capital |
|
|
(8.0 |
) |
|
|
10.8 |
|
|
|
(36.7 |
) |
|
|
(35.9 |
) |
|
Other |
|
|
0.9 |
|
|
|
5.8 |
|
|
|
(2.8 |
) |
|
|
6.8 |
|
|
Total provided by operating activities |
|
$ |
59.5 |
|
|
$ |
91.3 |
|
|
$ |
95.0 |
|
|
$ |
121.1 |
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
(4.5 |
) |
|
|
(5.1 |
) |
|
|
(8.5 |
) |
|
|
(7.6 |
) |
|
Total used for investing activities |
|
$ |
(4.5 |
) |
|
$ |
(5.1 |
) |
|
$ |
(8.5 |
) |
|
$ |
(7.6 |
) |
|
Financing activities: |
|
|
|
|
|
|
|
|
|
||||||||
Dividends paid |
|
|
(7.9 |
) |
|
|
— |
|
|
|
(7.9 |
) |
|
|
— |
|
|
Stock options exercised, net of shares reacquired |
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
Debt issuance costs |
|
|
(1.2 |
) |
|
|
— |
|
|
|
(5.2 |
) |
|
|
— |
|
|
Repayment of long-term debt |
|
|
(300.0 |
) |
|
|
— |
|
|
|
(300.0 |
) |
|
|
— |
|
|
Proceeds from term loan |
|
|
— |
|
|
|
— |
|
|
|
350.0 |
|
|
|
— |
|
|
Repayment of term loan |
|
|
(50.0 |
) |
|
|
— |
|
|
|
(50.0 |
) |
|
|
— |
|
|
Net transfers from (to) Crane |
|
|
360.1 |
|
|
|
(50.0 |
) |
|
|
(32.5 |
) |
|
|
(72.9 |
) |
|
Total provided by (used for) financing activities |
|
$ |
2.9 |
|
|
$ |
(50.0 |
) |
|
$ |
(43.7 |
) |
|
$ |
(72.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate on cash and cash equivalents |
|
|
0.8 |
|
|
|
(10.3 |
) |
|
|
3.4 |
|
|
|
(12.6 |
) |
|
Increase in cash and cash equivalents |
|
|
58.7 |
|
|
|
25.9 |
|
|
|
46.2 |
|
|
|
28.0 |
|
|
Cash and cash equivalents at beginning of period |
|
|
218.2 |
|
|
|
103.3 |
|
|
|
230.7 |
|
|
|
101.2 |
|
|
Cash and cash equivalents at end of period |
|
$ |
276.9 |
|
|
$ |
129.2 |
|
|
$ |
276.9 |
|
|
$ |
129.2 |
|
|
CRANE NXT, CO. AND SUBSIDIARIES Order Backlog (unaudited, in millions) |
|||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|||||
Crane Payment Innovations |
|
$ |
300.7 |
|
$ |
348.7 |
|
$ |
372.9 |
|
$ |
373.6 |
|
$ |
386.8 |
Currency |
|
|
184.4 |
|
|
207.3 |
|
|
192.7 |
|
|
126.2 |
|
|
95.2 |
Total backlog |
|
$ |
485.1 |
|
$ |
556.0 |
|
$ |
565.6 |
|
$ |
499.8 |
|
$ |
482.0 |
Revenue (unaudited, in millions) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Change |
|||||||||
|
|
2023 |
|
2022 |
|
$ |
|
% |
|||||
Net sales |
|
$ |
352 |
|
$ |
334 |
|
$ |
18 |
|
|
5 |
% |
Core sales |
|
|
|
|
|
|
21 |
|
|
6 |
% |
||
Foreign exchange |
|
|
|
|
|
|
(3 |
) |
|
(1 |
)% |
||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Six Months Ended June 30, |
|
Change |
|||||||||
|
|
2023 |
|
2022 |
|
$ |
|
% |
|||||
Net sales |
|
$ |
682 |
|
$ |
667 |
|
$ |
15 |
|
|
2 |
% |
Core sales |
|
|
|
|
|
|
30 |
|
|
4 |
% |
||
Foreign exchange |
|
|
|
|
|
|
(15 |
) |
|
(2 |
)% |
||
|
|
|
|
|
|
|
|
|
|||||
|
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures (unaudited, in millions, except per share data) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2023 |
|
2023 |
||||||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
||||||||
Net sales (GAAP) |
|
$ |
352.4 |
|
|
|
|
$ |
681.5 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (GAAP) |
|
$ |
68.8 |
|
|
|
|
$ |
134.7 |
|
|
|
||||
Operating profit margin (GAAP) |
|
|
19.5 |
% |
|
|
|
|
19.8 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
|
9.0 |
|
|
|
|
|
18.1 |
|
|
|
||||
Stock-based compensation adjustment1 |
|
|
0.4 |
|
|
|
|
|
0.4 |
|
|
|
||||
Transaction related expenses |
|
|
15.2 |
|
|
|
|
|
17.0 |
|
|
|
||||
Adjusted operating profit (Non-GAAP) |
|
$ |
93.4 |
|
|
|
|
$ |
170.2 |
|
|
|
||||
Adjusted operating profit margin (Non-GAAP) |
|
|
26.5 |
% |
|
|
|
|
25.0 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders (GAAP) |
|
$ |
43.2 |
|
|
$ |
0.75 |
|
|
$ |
86.9 |
|
|
$ |
1.51 |
|
Intangible asset amortization |
|
|
9.0 |
|
|
|
0.16 |
|
|
|
18.1 |
|
|
|
0.32 |
|
Stock-based compensation adjustment1 |
|
|
0.4 |
|
|
|
0.01 |
|
|
|
0.4 |
|
|
|
0.01 |
|
Transaction related expenses |
|
|
15.2 |
|
|
|
0.26 |
|
|
|
17.0 |
|
|
|
0.30 |
|
Interest adjustment2 |
|
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
|
0.04 |
|
Tax effect of the Non-GAAP adjustments |
|
|
(3.5 |
) |
|
|
(0.06 |
) |
|
|
(5.2 |
) |
|
|
(0.09 |
) |
Adjusted net income (Non-GAAP) |
|
$ |
64.3 |
|
|
$ |
1.12 |
|
|
$ |
119.7 |
|
|
$ |
2.09 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA and Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders (GAAP) |
|
$ |
43.2 |
|
|
|
|
$ |
86.9 |
|
|
|
||||
Net income margin (GAAP) |
|
|
12.3 |
% |
|
|
|
|
12.8 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjustments to net income attributable to common shareholders: |
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
12.7 |
|
|
|
|
|
23.6 |
|
|
|
||||
Interest expense, net |
|
|
13.9 |
|
|
|
|
|
26.6 |
|
|
|
||||
Depreciation |
|
|
9.8 |
|
|
|
|
|
19.6 |
|
|
|
||||
Intangible asset amortization |
|
|
9.0 |
|
|
|
|
|
18.1 |
|
|
|
||||
Stock-based compensation adjustment1 |
|
|
0.4 |
|
|
|
|
|
0.4 |
|
|
|
||||
Transaction related expenses |
|
|
15.2 |
|
|
|
|
|
17.0 |
|
|
|
||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
104.2 |
|
|
|
|
$ |
192.2 |
|
|
|
||||
Adjusted EBITDA Margin (Non-GAAP) |
|
|
29.6 |
% |
|
|
|
|
28.2 |
% |
|
|
Totals may not sum due to rounding |
||||||
1 Stock-based compensation adjustment resulting from the separation. |
||||||
2 Pre-separation related party interest with Crane Company, a business of Crane Holdings, Co., at March 31, 2023. |
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures by Segment (unaudited, in millions) |
|||||||||||||||
Three Months Ended June 30, 2023 |
Crane Payment
|
|
Crane Currency |
|
Corporate |
|
Total Company |
||||||||
Net sales |
$ |
225.9 |
|
|
$ |
126.5 |
|
|
$ |
— |
|
|
$ |
352.4 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss) (GAAP) |
$ |
64.8 |
|
|
$ |
34.7 |
|
|
$ |
(30.7 |
) |
|
$ |
68.8 |
|
Operating profit margin (GAAP) |
|
28.7 |
% |
|
|
27.4 |
% |
|
|
|
|
19.5 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
5.5 |
|
|
|
3.5 |
|
|
|
— |
|
|
|
9.0 |
|
Stock-based compensation adjustment1 |
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
0.4 |
|
Transaction related expenses |
|
— |
|
|
|
— |
|
|
|
15.2 |
|
|
|
15.2 |
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
70.3 |
|
|
$ |
38.2 |
|
|
$ |
(15.1 |
) |
|
$ |
93.4 |
|
Adjusted operating profit margin (non-GAAP) |
|
31.1 |
% |
|
|
30.2 |
% |
|
|
|
|
26.5 |
% |
||
|
Three Months Ended June 30, 2022 |
Crane Payment
|
|
Crane Currency |
||||
Net sales |
$ |
211.4 |
|
|
$ |
122.6 |
|
|
|
|
|
||||
Operating profit (GAAP) |
$ |
51.3 |
|
|
$ |
29.4 |
|
Operating profit margin (GAAP) |
|
24.3 |
% |
|
|
24.0 |
% |
|
|
|
|
||||
Special items impacting operating profit: |
|
|
|
||||
Intangible asset amortization |
|
5.4 |
|
|
|
3.6 |
|
Adjusted operating profit (non-GAAP) |
$ |
56.7 |
|
|
$ |
33.0 |
|
Adjusted operating profit margin (non-GAAP) |
|
26.8 |
% |
|
|
26.9 |
% |
Totals may not sum due to rounding |
1 Stock-based compensation adjustment resulting from the separation. |
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures by Segment (unaudited, in millions) |
|||||||||||||||
Six Months Ended June 30, 2023 |
Crane Payment
|
|
Crane Currency |
|
Corporate |
|
Total Company |
||||||||
Net sales |
$ |
449.7 |
|
|
$ |
231.8 |
|
|
$ |
— |
|
|
$ |
681.5 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss) (GAAP) |
$ |
126.6 |
|
|
$ |
52.3 |
|
|
$ |
(44.2 |
) |
|
$ |
134.7 |
|
Operating profit margin (GAAP) |
|
28.2 |
% |
|
|
22.6 |
% |
|
|
|
|
19.8 |
% |
||
|
|
|
|
|
|
|
|
||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
||||||||
Intangible asset amortization |
|
11.0 |
|
|
|
7.1 |
|
|
|
— |
|
|
|
18.1 |
|
Stock-based compensation adjustment1 |
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
0.4 |
|
Transaction related expenses |
|
— |
|
|
|
— |
|
|
|
17.0 |
|
|
|
17.0 |
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
137.6 |
|
|
$ |
59.4 |
|
|
$ |
(26.8 |
) |
|
$ |
170.2 |
|
Adjusted operating profit margin (non-GAAP) |
|
30.6 |
% |
|
|
25.6 |
% |
|
|
|
|
25.0 |
% |
||
|
Six Months Ended June 30, 2022 |
Crane Payment Innovations |
|
Crane Currency |
||||
Net sales |
$ |
422.4 |
|
|
$ |
244.2 |
|
|
|
|
|
||||
Operating profit (GAAP) |
$ |
100.3 |
|
|
$ |
64.6 |
|
Operating profit margin (GAAP) |
|
23.7 |
% |
|
|
26.5 |
% |
|
|
|
|
||||
Special items impacting operating profit: |
|
|
|
||||
Intangible asset amortization |
|
11.0 |
|
|
|
7.2 |
|
Adjusted operating profit (non-GAAP) |
$ |
111.3 |
|
|
$ |
71.8 |
|
Adjusted operating profit margin (non-GAAP) |
|
26.3 |
% |
|
|
29.4 |
% |
|
|
|
|
Totals may not sum due to rounding |
1 Stock-based compensation adjustment resulting from the separation. |
CRANE NXT, CO. AND SUBSIDIARIES Free Cash Flow (unaudited, in millions) |
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
Cash Flow Items |
|
|
|
|
||||
Cash provided by operating activities (GAAP) |
|
$ |
59.5 |
|
|
$ |
95.0 |
|
Less: Capital expenditures |
|
|
(4.5 |
) |
|
|
(8.5 |
) |
Free cash flow |
|
$ |
55.0 |
|
|
$ |
86.5 |
|
Transaction related expenses (a) |
|
|
15.2 |
|
|
|
17.0 |
|
Adjusted free cash flow (non-GAAP) |
|
$ |
70.2 |
|
|
$ |
103.5 |
|
(a) Represents transaction related expenses associated with the separation. |
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, 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, 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.
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, 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, stock-based compensation adjustment resulting from the separation and transaction related expenses. 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” and “Adjusted free cash flow” 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 related to 2022 portfolio actions. 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" excludes net interest expense, tax expense and depreciation and amortization expense from net income, as well as Special items such as 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230807855371/en/
Jason D. Feldman
Vice President, Investor Relations
203-363-7329
www.cranenxt.com
Source: Crane NXT, Co.
FAQ
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