Crane NXT, Co. Reports Third Quarter 2024 Results
Crane NXT (NYSE: CXT) reported its Q3 2024 financial results, highlighting a 14.3% increase in sales to $403 million and a 4.7% core sales growth. The company achieved a GAAP EPS of $0.81 and an Adjusted EPS of $1.16. Operating profit margins were 18.6% GAAP and 23.9% Adjusted. Key acquisitions included De La Rue Authentication Solutions and Smart Packaging assets of Tru Tag Technologies. The company repaid $65 million of debt, reducing net leverage to 1.7X. For the full year 2024, Crane NXT narrowed its Adjusted EPS guidance to $4.22-$4.30 and expects sales growth of 6%-8%. Adjusted Free Cash Flow conversion is projected at 70%.
Segment-wise, Crane Payment Innovations saw a 1.5% rise in sales to $224.9 million with an Adjusted operating profit margin of 31.1%. Security and Authentication Technologies experienced a 36% sales increase to $178.6 million, though its Adjusted operating profit margin fell to 21.9%.
Cash provided by operating activities was $66.7 million, a 39.5% decrease from the previous year. The company declared a quarterly dividend of $0.16 per share, payable on December 11, 2024.
Crane NXT (NYSE: CXT) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando un incremento delle vendite del 14,3% a 403 milioni di dollari e una crescita delle vendite core del 4,7%. L'azienda ha registrato un EPS GAAP di 0,81 dollari e un EPS adeguato di 1,16 dollari. I margini di profitto operativo erano 18,6% GAAP e 23,9% adeguati. Tra le acquisizioni chiave vi sono state De La Rue Authentication Solutions e gli asset di Smart Packaging di Tru Tag Technologies. L'azienda ha rimborsato 65 milioni di dollari di debito, riducendo la leva finanziaria netta a 1,7X. Per l'intero anno 2024, Crane NXT ha ristretto la sua previsione di EPS adeguato a $4,22-$4,30 e si aspetta una crescita delle vendite del 6%-8%. La conversione del Flusso di Cassa Libero Adeguato è prevista al 70%.
Per segmento, Crane Payment Innovations ha visto un aumento delle vendite dell'1,5% a 224,9 milioni di dollari con un margine di profitto operativo adeguato del 31,1%. Le Tecnologie di Sicurezza e Autenticazione hanno registrato un incremento delle vendite del 36% a 178,6 milioni di dollari, sebbene il suo margine di profitto operativo adeguato sia sceso al 21,9%.
Il flusso di cassa fornito dalle attività operative è stato di 66,7 milioni di dollari, con una diminuzione del 39,5% rispetto all'anno precedente. L'azienda ha dichiarato un dividendo trimestrale di 0,16 dollari per azione, da pagare il 11 dicembre 2024.
Crane NXT (NYSE: CXT) reportó sus resultados financieros del tercer trimestre de 2024, destacando un aumento del 14.3% en las ventas a $403 millones y un crecimiento del 4.7% en las ventas principales. La empresa alcanzó un EPS GAAP de $0.81 y un EPS ajustado de $1.16. Los márgenes de beneficio operativo fueron 18.6% GAAP y 23.9% ajustados. Las adquisiciones clave incluyeron De La Rue Authentication Solutions y activos de Smart Packaging de Tru Tag Technologies. La empresa pagó $65 millones de deuda, reduciendo el apalancamiento neto a 1.7X. Para todo el año 2024, Crane NXT ajustó su guía de EPS ajustado a $4.22-$4.30 y espera un crecimiento de ventas del 6%-8%. Se proyecta que la conversión de Flujo de Caja Libre Ajustado sea del 70%.
Segmentalmente, Crane Payment Innovations vio un aumento del 1.5% en las ventas a $224.9 millones con un margen de beneficio operativo ajustado del 31.1%. Las Tecnologías de Seguridad y Autenticación experimentaron un aumento del 36% en las ventas a $178.6 millones, aunque su margen de beneficio operativo ajustado cayó al 21.9%.
El efectivo proporcionado por las actividades operativas fue de $66.7 millones, una disminución del 39.5% con respecto al año anterior. La empresa declaró un dividendo trimestral de $0.16 por acción, pagadero el 11 de diciembre de 2024.
크레인 NXT (NYSE: CXT)는 2024년 3분기 재무 실적을 보고하며 매출이 14.3% 증가하여 4억 3백만 달러에 달하고 핵심 매출 성장률이 4.7%라고 강조했습니다. 이 회사는 GAAP EPS가 0.81달러 및 조정 EPS가 1.16달러를 달성했습니다. 운영 이익률은 GAAP 기준 18.6% 및 조정 기준 23.9%로 나타났습니다. 주요 인수는 De La Rue 인증 솔루션과 Tru Tag Technologies의 스마트 포장 자산이 포함되었습니다. 회사는 6,500만 달러의 부채를 상환하여 순 레버리지를 1.7배로 낮췄습니다. 2024년 전체 연도에 대해 크레인 NXT는 자신의 조정 EPS 지침을 4.22~4.30달러로 좁혔으며 6%~8%의 매출 성장을 예상하고 있습니다. 조정 후 자유 현금 흐름 전환율은 70%로 예상됩니다.
부문별로 크레인 결제 혁신이 2.5% 증가하여 2억 2,490만 달러의 매출을 올렸으며 조정된 운영 이익률은 31.1%로 나타났습니다. 보안 및 인증 기술은 36%의 매출 증가를 보였고 1억 7,860만 달러에 이르렀지만 조정된 운영 이익률은 21.9%로 하락했습니다.
운영 활동으로 제공된 현금은 6,670만 달러로 전년 대비 39.5% 감소했습니다. 회사는 주당 0.16달러의 분기 배당금을 선언했으며, 2024년 12월 11일 지급될 예정입니다.
Crane NXT (NYSE: CXT) a publié ses résultats financiers du troisième trimestre 2024, mettant en avant une augmentation de 14,3% des ventes à 403 millions de dollars et une croissance des ventes principales de 4,7%. L'entreprise a atteint un EPS GAAP de 0,81 dollar et un EPS ajusté de 1,16 dollar. Les marges de bénéfice opérationnel étaient de 18,6% GAAP et de 23,9% ajustées. Les acquisitions clés comprenaient De La Rue Authentication Solutions et des actifs de Smart Packaging de Tru Tag Technologies. L'entreprise a remboursé 65 millions de dollars de dettes, réduisant ainsi l'effet de levier net à 1,7X. Pour l'ensemble de l'année 2024, Crane NXT a réduit ses prévisions d'EPS ajusté à 4,22-4,30 dollars et s'attend à une croissance des ventes de 6% à 8%. La conversion du flux de trésorerie disponible ajusté est projetée à 70%.
Segmentation, Crane Payment Innovations a enregistré une augmentation des ventes de 1,5% à 224,9 millions de dollars avec une marge bénéficiaire opérationnelle ajustée de 31,1%. Les Technologies de Sécurité et d'Authentification ont connu une augmentation de 36% des ventes à 178,6 millions de dollars, bien que sa marge bénéficiaire opérationnelle ajustée soit tombée à 21,9%.
La trésorerie générée par les activités opérationnelles s'est élevée à 66,7 millions de dollars, soit une diminution de 39,5% par rapport à l'année précédente. L'entreprise a déclaré un dividende trimestriel de 0,16 dollar par action, payable le 11 décembre 2024.
Crane NXT (NYSE: CXT) hat seine Finanzzahlen für das 3. Quartal 2024 veröffentlicht und hebt einen Umsatzanstieg von 14,3% auf 403 Millionen USD und ein Kernvertriebswachstum von 4,7% hervor. Das Unternehmen erzielte ein GAAP EPS von 0,81 USD und ein bereinigtes EPS von 1,16 USD. Die operativen Gewinnmargen betrugen 18,6% GAAP und 23,9% bereinigt. Zu den wichtigen Akquisitionen zählen De La Rue Authentication Solutions sowie die Smart Packaging-Vermögenswerte von Tru Tag Technologies. Das Unternehmen hat 65 Millionen USD an Schulden zurückgezahlt und damit die Nettoverschuldung auf 1,7X reduziert. Für das gesamte Jahr 2024 hat Crane NXT die Prognose für das bereinigte EPS auf 4,22 bis 4,30 USD eingegrenzt und erwartet ein Umsatzwachstum von 6% bis 8%. Der bereinigte Free Cash Flow wird voraussichtlich bei 70% liegen.
Segmentweise verzeichnete Crane Payment Innovations einen Umsatzanstieg von 1,5% auf 224,9 Millionen USD mit einer bereinigten operativen Gewinnmarge von 31,1%. Sicherheits- und Authentifizierungstechnologien erlebten einen Umsatzanstieg von 36% auf 178,6 Millionen USD, während die bereinigte operative Gewinnmarge auf 21,9% fiel.
Der durch operative Tätigkeiten erwirtschaftete Cashflow betrug 66,7 Millionen USD, was einem Rückgang von 39,5% im Vergleich zum Vorjahr entspricht. Das Unternehmen gab eine vierteljährliche Dividende von 0,16 USD pro Aktie bekannt, die am 11. Dezember 2024 zahlbar ist.
- Sales increased by 14.3% to $403 million.
- Core sales growth of 4.7%.
- Adjusted EPS of $1.16.
- Operating profit margins of 18.6% GAAP and 23.9% Adjusted.
- Repayment of $65 million in debt.
- Acquisitions of De La Rue Authentication Solutions and Smart Packaging assets.
- Full year Adjusted EPS guidance narrowed to $4.22-$4.30.
- Operating profit decreased by 5.9% to $75 million.
- GAAP operating profit margin declined by 400bps to 18.6%.
- Adjusted operating profit margin decreased by 210bps to 23.9%.
- Cash provided by operating activities decreased by 39.5% to $66.7 million.
- Decrease in cash and cash equivalents from $227.2 million to $165.1 million.
- Increase in total debt from $644.9 million to $793.2 million.
Insights
The Q3 results show mixed performance with notable strengths and challenges. Core sales growth of
The acquisition strategy is aggressive but disciplined, with De La Rue Authentication Solutions pending and successful integration of OpSec Security. The balance sheet remains healthy with net leverage at 1.7X and
The segmental performance reveals important trends. The Payment Innovations segment showed modest
The strategic focus on trusted technology solutions through acquisitions is positioning CXT well in high-value security and authentication markets. The reduced free cash flow guidance suggests integration costs and working capital needs are higher than initially expected, but the debt reduction of
Delivers sales growth of
Narrows full year Adjusted EPS guidance to
WALTHAM, Mass., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, today announced its financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights
- Signed agreement to acquire De La Rue Authentication Solutions, with anticipated closing in the first half of 2025.
- Acquired the Smart Packaging assets of Tru Tag Technologies.
- GAAP earnings per diluted share (EPS) of
$0.81 , and Adjusted EPS of$1.16 . - Sales of
$403 million , up14.3% year-over-year, with4.7% core sales growth. - GAAP operating profit margin of
18.6% , and Adjusted operating profit margin of23.9% . - Repaid approximately
$65 million of outstanding debt.
Full Year 2024 Outlook
- Narrowing full year sales growth guidance to
6% to8% and full year Adjusted EPS guidance to$4.22 t o$4.30 . - Updating full-year guidance for Adjusted Free Cash Flow conversion to approximately
70% .
Aaron W. Saak, Crane NXT's President and Chief Executive Officer, stated: “This quarter we announced that we signed an agreement to acquire De La Rue Authentication Solutions and that we acquired the Smart Packaging assets of Tru Tag Technologies. These transactions, along with the acquisition of OpSec Security which we completed earlier this year, continue to expand and diversify the Company and accelerate our strategy as a market leader in providing trusted technology solutions that secure, detect, and authenticate our customers’ most valuable assets.”
Mr. Saak continued: "Our third quarter results were in line with our expectations, with core sales growth of nearly
Summary of Third Quarter 2024 Results
Three Months Ended September 30, | Change | |||||||||||||
(dollars in millions) | 2024 | 2023 | $ | % | ||||||||||
Net sales | $ | 403.5 | $ | 352.9 | $ | 50.6 | 14.3 | % | ||||||
Core sales | $ | 16.7 | 4.7 | % | ||||||||||
Acquisitions | $ | 32.3 | 9.1 | % | ||||||||||
Foreign exchange | $ | 1.6 | 0.5 | % | ||||||||||
Operating profit | $ | 75.0 | $ | 79.7 | $ | (4.7 | ) | (5.9 | )% | |||||
Adjusted operating profit* | $ | 96.5 | $ | 91.6 | $ | 4.9 | 5.3 | % | ||||||
Operating profit margin | 18.6 | % | 22.6 | % | (400bps) | |||||||||
Adjusted operating profit margin* | 23.9 | % | 26.0 | % | (210bps) | |||||||||
Totals may not sum due to rounding *Please see the Non-GAAP Financial Measures tables in this release | ||||||||||||||
Third Quarter 2024 Results
Third quarter 2024 sales were
Third quarter 2024 operating profit was
Third Quarter 2024 Segment Results
All comparisons detailed in this section refer to operating results for the third quarter 2024 versus the third quarter 2023.
Crane Payment Innovations
Three Months Ended September 30, | Change | ||||||||||||||
(dollars in millions) | 2024 | 2023 | $ | % | |||||||||||
Net sales | $ | 224.9 | $ | 221.6 | $ | 3.3 | 1.5 | % | |||||||
Core sales | $ | 3.3 | 1.5 | % | |||||||||||
Foreign exchange | $ | — | — | % | |||||||||||
Operating profit | $ | 64.6 | $ | 59.7 | $ | 4.9 | 8.2 | % | |||||||
Adjusted operating profit* | $ | 70.0 | $ | 65.1 | $ | 4.9 | 7.5 | % | |||||||
Operating profit margin | 28.7 | % | 26.9 | % | 180bps | ||||||||||
Adjusted operating profit margin* | 31.1 | % | 29.4 | % | 170bps | ||||||||||
Totals may not sum due to rounding | |||||||||||||||
*Please see the Non-GAAP Financial Measures tables in this release | |||||||||||||||
Sales of
Security and Authentication Technologies
Three Months Ended September 30, | Change | ||||||||||||||
(dollars in millions) | 2024 | 2023 | $ | % | |||||||||||
Net sales | $ | 178.6 | $ | 131.3 | $ | 47.3 | 36.0 | % | |||||||
Core sales | $ | 13.4 | 10.2 | % | |||||||||||
Acquisitions | $ | 32.3 | 24.6 | % | |||||||||||
Foreign exchange | $ | 1.6 | 1.2 | % | |||||||||||
Operating profit | $ | 29.3 | $ | 32.8 | $ | (3.5 | ) | (10.7 | )% | ||||||
Adjusted operating profit* | $ | 39.2 | $ | 36.3 | $ | 2.9 | 8.0 | % | |||||||
Operating profit margin | 16.4 | % | 25.0 | % | (860bps) | ||||||||||
Adjusted operating profit margin* | 21.9 | % | 27.6 | % | (570bps) | ||||||||||
Totals may not sum due to rounding | |||||||||||||||
*Please see the Non-GAAP Financial Measures tables in this release | |||||||||||||||
Sales of
Cash Flow and Other Financial Metrics
For the third quarter of 2024, cash provided by operating activities was
The Company held cash and cash equivalents of
Full Year 2024 Guidance
The Company is updating its full year guidance for Sales Growth, Adjusted EPS, and Adjusted Free Cash Flow Conversion.
Full Year 2024 Guidance Details | ||
(dollars in millions, except per share data) | Prior Guidance | Updated Guidance |
Crane NXT Sales Growth* | + | + |
Adjusted EPS | ||
Adjusted Segment Operating Margin | ||
Corporate Expense | ~ | ~ |
Non-Operating Expense, Net | ~ | ~ |
Adjusted Tax Rate | ~ | ~ |
Adjusted Free Cash Flow Conversion | ~ | ~ |
Diluted Shares | ~57.6 | ~57.6 |
*Includes FX impact of | ||
Please see the Non-GAAP Financial Measures definitions in this release | ||
Declaring Fourth Quarter Dividend
Crane NXT announced its quarterly dividend of
Conference Call
Crane NXT scheduled a conference call to discuss the third quarter financial results on Thursday, November 7, 2024, at 10:00 A.M. (Eastern). Interested parties may listen to a live webcast of the conference call by visiting the Events section of the Investor Relations section of the Company’s website. For those wishing to participate in the Q&A session of the call, please pre-register here. Pre-registration may be completed at any time up to the call start time. 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. Through its two industry-leading business segments, Security & Authentication Technologies and Crane Payment Innovations, Crane NXT provides customers with advanced technologies to secure high-value physical products, sophisticated detection equipment and systems, and proprietary products and services that protect brand identity and digital content. Crane NXT’s approximately 4,500 employees help our customers protect their most important assets and ensure secure, seamless transactions around the world every day. For more information, visit www.cranenxt.com.
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 U.S.; being unable to successfully develop and introduce new products, which would limit its ability to grow and maintain its competitive position; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow its business as planned; being unable to identify or complete acquisitions, or to successfully integrate the businesses the Company acquires; governmental regulations and failure to comply with those regulations; risks from litigation, claims and investigations, including those related to product liability and warranties, and employee, commercial, intellectual property and environmental matters; risks related to its ability to improve productivity, reduce costs and align manufacturing capacity with customer demand; the ability to protect its intellectual property; significant competition in the Company's markets; adverse impacts from intangible asset impairment charges; additional tax expenses or exposures; inadequate or ineffective internal controls; and risks related to the Separation, including not obtaining the intended tax treatment of the Separation transaction, failure of Crane Company to perform under the various transaction agreements and actual or potential conflicts of interest with Crane Company.
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, 2023 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales: | |||||||||||||||
Crane Payment Innovations | $ | 224.9 | $ | 221.6 | $ | 658.3 | $ | 671.3 | |||||||
Security and Authentication Technologies | 178.6 | 131.3 | 429.4 | 363.1 | |||||||||||
Total net sales | $ | 403.5 | $ | 352.9 | $ | 1,087.7 | $ | 1,034.4 | |||||||
Operating profit (loss): | |||||||||||||||
Crane Payment Innovations | $ | 64.6 | $ | 59.7 | $ | 178.7 | $ | 186.3 | |||||||
Security and Authentication Technologies | 29.3 | 32.8 | 73.5 | 85.1 | |||||||||||
Corporate | (18.9 | ) | (12.8 | ) | (54.2 | ) | (57.0 | ) | |||||||
Total operating profit | $ | 75.0 | $ | 79.7 | $ | 198.0 | $ | 214.4 | |||||||
Interest income | 0.4 | 0.3 | 1.4 | 0.7 | |||||||||||
Interest expense | (13.4 | ) | (12.8 | ) | (35.7 | ) | (37.3 | ) | |||||||
Related party interest expense | — | — | — | (2.5 | ) | ||||||||||
Miscellaneous income, net | 1.3 | 0.7 | 1.7 | 3.1 | |||||||||||
Income before income taxes | 63.3 | 67.9 | 165.4 | 178.4 | |||||||||||
Provision for income taxes | 16.2 | 16.0 | 38.9 | 39.6 | |||||||||||
Net income attributable to common shareholders | $ | 47.1 | $ | 51.9 | $ | 126.5 | $ | 138.8 | |||||||
Earnings per diluted share1 | $ | 0.81 | $ | 0.90 | $ | 2.19 | $ | 2.42 | |||||||
Average diluted shares outstanding1 | 57.8 | 57.5 | 57.8 | 57.4 | |||||||||||
Average basic shares outstanding1 | 57.2 | 56.8 | 57.1 | 56.8 | |||||||||||
Supplemental data: | |||||||||||||||
Cost of sales | $ | 232.2 | $ | 187.4 | $ | 603.1 | $ | 545.8 | |||||||
Selling, general and administrative | 96.3 | 85.8 | 283.9 | 274.2 | |||||||||||
Restructuring charges, net | — | — | 2.7 | — | |||||||||||
1 The shares presented for the three months and nine months ended September 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 Condensed Balance Sheets (unaudited, in millions) | ||||||
September 30, 2024 | December 31, 2023 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 165.1 | $ | 227.2 | ||
Accounts receivable, net of allowance for credit losses of | 215.2 | 214.9 | ||||
U.S. and foreign taxes on income | 18.0 | — | ||||
Inventories, net | 169.8 | 157.1 | ||||
Other current assets | 62.5 | 45.2 | ||||
Total current assets | 630.6 | 644.4 | ||||
Property, plant and equipment, net | 278.0 | 261.2 | ||||
Long-term deferred tax assets | 0.9 | 2.7 | ||||
Intangible assets, net | 440.2 | 308.9 | ||||
Goodwill | 965.4 | 841.2 | ||||
Other assets | 95.5 | 71.0 | ||||
Total assets | $ | 2,410.6 | $ | 2,129.4 | ||
Liabilities and equity | ||||||
Current liabilities: | ||||||
Short-term borrowings | $ | 155.0 | $ | 4.6 | ||
Accounts payable | 108.4 | 106.5 | ||||
Accrued liabilities | 183.1 | 210.5 | ||||
U.S. and foreign taxes on income | 9.9 | 12.8 | ||||
Total current liabilities | 456.4 | 334.4 | ||||
Long-term debt | 638.2 | 640.3 | ||||
Accrued pension and postretirement benefits | 22.6 | 22.5 | ||||
Long-term deferred tax liability | 130.8 | 104.5 | ||||
Other liabilities | 91.9 | 63.7 | ||||
Total equity | 1,070.7 | 964.0 | ||||
Total liabilities and equity | $ | 2,410.6 | $ | 2,129.4 |
CRANE NXT, CO. AND SUBSIDIARIES Consolidated and Combined Condensed Statements of Cash Flows (unaudited, in millions) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Operating activities: | |||||||||||||||
Net income attributable to common shareholders | $ | 47.1 | $ | 51.9 | $ | 126.5 | $ | 138.8 | |||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||
Depreciation and amortization | 24.7 | 20.5 | 63.4 | 59.0 | |||||||||||
Stock-based compensation expense | 2.8 | 2.7 | 7.7 | 7.4 | |||||||||||
Defined benefit plans and postretirement credit | (1.6 | ) | (0.2 | ) | (1.9 | ) | (0.6 | ) | |||||||
Deferred income taxes | (0.5 | ) | — | (0.3 | ) | 4.8 | |||||||||
Cash (used for) provided by operating working capital | (13.4 | ) | 24.5 | (71.8 | ) | (12.2 | ) | ||||||||
Other | 7.6 | 3.4 | 9.4 | 0.6 | |||||||||||
Total provided by operating activities | $ | 66.7 | $ | 102.8 | $ | 133.0 | $ | 197.8 | |||||||
Investing activities: | |||||||||||||||
Payment for acquisitions, net of cash acquired | (0.1 | ) | — | (269.9 | ) | — | |||||||||
Proceeds from settlement of forward contract | — | — | 0.1 | — | |||||||||||
Capital expenditures | (13.2 | ) | (7.6 | ) | (34.6 | ) | (16.1 | ) | |||||||
Total used for investing activities | $ | (13.3 | ) | $ | (7.6 | ) | $ | (304.4 | ) | $ | (16.1 | ) | |||
Financing activities: | |||||||||||||||
Dividends paid | (9.1 | ) | (7.9 | ) | (27.4 | ) | (15.8 | ) | |||||||
Proceeds from stock options exercised | 1.1 | 0.2 | 3.0 | 2.1 | |||||||||||
Payment of tax withholding on equity awards vested | (0.1 | ) | — | (6.5 | ) | — | |||||||||
Debt issuance costs | — | (0.1 | ) | — | (5.3 | ) | |||||||||
Repayment of long-term debt | — | — | — | (300.0 | ) | ||||||||||
Proceeds from revolving credit facility | 30.5 | 20.0 | 310.5 | 20.0 | |||||||||||
Repayments of revolving credit facility | (95.5 | ) | (20.0 | ) | (160.5 | ) | (20.0 | ) | |||||||
Proceeds from term loan | — | — | — | 350.0 | |||||||||||
Repayment of term loan | (1.3 | ) | (125.0 | ) | (3.3 | ) | (175.0 | ) | |||||||
Net transfers to Crane | — | — | — | (32.5 | ) | ||||||||||
Total (used for) provided by financing activities | $ | (74.4 | ) | $ | (132.8 | ) | $ | 115.8 | $ | (176.5 | ) | ||||
Effect of exchange rates on cash, cash equivalents and restricted cash | 11.9 | (10.3 | ) | 2.4 | (6.9 | ) | |||||||||
Decrease in cash, cash equivalents and restricted cash | (9.1 | ) | (47.9 | ) | (53.2 | ) | (1.7 | ) | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 183.1 | 276.9 | 227.2 | 230.7 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 174.0 | $ | 229.0 | $ | 174.0 | $ | 229.0 | |||||||
CRANE NXT, CO. AND SUBSIDIARIES Order Backlog (unaudited, in millions) | |||||||||||||||||||
September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
Crane Payment Innovations | $ | 133.4 | $ | 166.5 | $ | 188.6 | $ | 216.8 | $ | 231.6 | |||||||||
Security and Authentication Technologies1 | $ | 351.4 | $ | 335.4 | $ | 233.4 | $ | 243.0 | $ | 223.3 | |||||||||
Total backlog | $ | 484.8 | $ | 501.9 | $ | 422.0 | $ | 459.8 | $ | 454.9 | |||||||||
1 Includes | |||||||||||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures (unaudited, in millions, except per share data) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2024 | 2023 | ||||||||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin | $ | Per Share | $ | Per Share | |||||||||||
Net sales (GAAP) | $ | 403.5 | $ | 352.9 | |||||||||||
Operating profit (GAAP) | $ | 75.0 | $ | 79.7 | |||||||||||
Operating profit margin (GAAP) | 18.6 | % | 22.6 | % | |||||||||||
Special items impacting operating profit: | |||||||||||||||
Acquired intangible asset amortization | 13.4 | 8.9 | |||||||||||||
Transaction related expenses | 6.2 | 3.0 | |||||||||||||
Impact of acquisition related fair value step-up | 1.9 | — | |||||||||||||
Adjusted operating profit (Non-GAAP) | $ | 96.5 | $ | 91.6 | |||||||||||
Adjusted operating profit margin (Non-GAAP) | 23.9 | % | 26.0 | % | |||||||||||
Adjusted Net Income and Adjusted Net Income per Share | |||||||||||||||
Net income attributable to common shareholders (GAAP) | $ | 47.1 | $ | 0.81 | $ | 51.9 | $ | 0.90 | |||||||
Acquired intangible asset amortization | 13.4 | 0.23 | 8.9 | 0.15 | |||||||||||
Transaction related expenses | 6.2 | 0.11 | 3.0 | 0.06 | |||||||||||
Impact of acquisition related fair value step-up | 1.9 | 0.03 | — | — | |||||||||||
Tax adjustments | (1.9 | ) | (0.02 | ) | (1.2 | ) | (0.02 | ) | |||||||
Adjusted net income (Non-GAAP) | $ | 66.7 | $ | 1.16 | $ | 62.6 | $ | 1.09 | |||||||
Adjusted EBITDA and Adjusted EBITDA margin | |||||||||||||||
Net income attributable to common shareholders (GAAP) | $ | 47.1 | $ | 51.9 | |||||||||||
Net income margin (GAAP) | 11.7 | % | 14.7 | % | |||||||||||
Adjustments to net income attributable to common shareholders: | |||||||||||||||
Income tax expense | 16.2 | 16.0 | |||||||||||||
Intangible asset amortization | 13.5 | 8.9 | |||||||||||||
Interest expense, net | 13.0 | 12.5 | |||||||||||||
Depreciation | 9.3 | 11.0 | |||||||||||||
Transaction related expenses | 6.2 | 3.0 | |||||||||||||
Impact of acquisition related fair value step-up | 1.9 | — | |||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 107.2 | $ | 103.3 | |||||||||||
Adjusted EBITDA Margin (Non-GAAP) | 26.6 | % | 29.3 | % | |||||||||||
Totals may not sum due to rounding | |||||||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures (unaudited, in millions, except per share data) | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | ||||||||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin | $ | Per Share | $ | Per Share | |||||||||||
Net sales (GAAP) | $ | 1,087.7 | $ | 1,034.4 | |||||||||||
Operating profit (GAAP) | $ | 198.0 | $ | 214.4 | |||||||||||
Operating profit margin (GAAP) | 18.2 | % | 20.7 | % | |||||||||||
Special items impacting operating profit: | |||||||||||||||
Acquired intangible asset amortization | 33.6 | 27.0 | |||||||||||||
Transaction related expenses | 16.8 | 20.4 | |||||||||||||
Impact of acquisition related fair value step-up | 5.9 | — | |||||||||||||
Restructuring charges, net | 2.7 | — | |||||||||||||
Adjusted operating profit (Non-GAAP) | $ | 257.0 | $ | 261.8 | |||||||||||
Adjusted operating profit margin (Non-GAAP) | 23.6 | % | 25.3 | % | |||||||||||
Adjusted Net Income and Adjusted Net Income per Share | |||||||||||||||
Net income attributable to common shareholders (GAAP) | $ | 126.5 | $ | 2.19 | $ | 138.8 | $ | 2.42 | |||||||
Acquired intangible asset amortization | 33.6 | 0.58 | 27.0 | 0.47 | |||||||||||
Transaction related expenses | 17.4 | 0.30 | 20.4 | 0.35 | |||||||||||
Impact of acquisition related fair value step-up | 5.9 | 0.10 | — | — | |||||||||||
Restructuring charges, net | 2.7 | 0.05 | — | — | |||||||||||
Interest adjustment1 | — | — | 2.5 | 0.04 | |||||||||||
Tax adjustments | (9.2 | ) | (0.16 | ) | (6.4 | ) | (0.10 | ) | |||||||
Adjusted net income (Non-GAAP) | $ | 176.9 | $ | 3.06 | $ | 182.3 | $ | 3.18 | |||||||
Adjusted EBITDA and Adjusted EBITDA margin | |||||||||||||||
Net income attributable to common shareholders (GAAP) | $ | 126.5 | $ | 138.8 | |||||||||||
Net income margin (GAAP) | 11.6 | % | 13.4 | % | |||||||||||
Adjustments to net income attributable to common shareholders: | |||||||||||||||
Income tax expense | 38.9 | 39.6 | |||||||||||||
Interest expense, net | 34.3 | 39.1 | |||||||||||||
Intangible asset amortization | 33.7 | 27.0 | |||||||||||||
Depreciation | 27.8 | 30.6 | |||||||||||||
Transaction related expenses | 17.4 | 20.4 | |||||||||||||
Impact of acquisition related fair value step-up | 5.9 | — | |||||||||||||
Restructuring charges, net | 2.7 | — | |||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 287.2 | $ | 295.5 | |||||||||||
Adjusted EBITDA Margin (Non-GAAP) | 26.4 | % | 28.6 | % | |||||||||||
Totals may not sum due to rounding | |||||||||||||||
1 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 September 30, 2024 | Crane Payment Innovations | Security and Authentication Technologies | Corporate | Total Company | |||||||||||
Net sales | $ | 224.9 | $ | 178.6 | $ | — | $ | 403.5 | |||||||
Operating profit (loss) (GAAP) | $ | 64.6 | $ | 29.3 | $ | (18.9 | ) | $ | 75.0 | ||||||
Operating profit margin (GAAP) | 28.7 | % | 16.4 | % | 18.6 | % | |||||||||
Special items impacting operating profit: | |||||||||||||||
Acquired intangible asset amortization | 5.4 | 8.0 | — | 13.4 | |||||||||||
Impact of acquisition related fair value step-up | — | 1.9 | — | 1.9 | |||||||||||
Transaction related expenses | — | — | 6.2 | 6.2 | |||||||||||
Adjusted operating profit (loss) (non-GAAP) | $ | 70.0 | $ | 39.2 | $ | (12.7 | ) | $ | 96.5 | ||||||
Adjusted operating profit margin (non-GAAP) | 31.1 | % | 21.9 | % | 23.9 | % | |||||||||
Three Months Ended September 30, 2023 | Crane Payment Innovations | Security and Authentication Technologies | Corporate | Total Company | |||||||||||
Net sales | $ | 221.6 | $ | 131.3 | $ | — | $ | 352.9 | |||||||
Operating profit (loss) (GAAP) | $ | 59.7 | $ | 32.8 | $ | (12.8 | ) | $ | 79.7 | ||||||
Operating profit margin (GAAP) | 26.9 | % | 25.0 | % | 22.6 | % | |||||||||
Special items impacting operating profit: | |||||||||||||||
Acquired intangible asset amortization | 5.4 | 3.5 | — | 8.9 | |||||||||||
Transaction related expenses | — | — | 3.0 | 3.0 | |||||||||||
Adjusted operating profit (loss) (non-GAAP) | $ | 65.1 | $ | 36.3 | $ | (9.8 | ) | $ | 91.6 | ||||||
Adjusted operating profit margin (non-GAAP) | 29.4 | % | 27.6 | % | 26.0 | % | |||||||||
Totals may not sum due to rounding | |||||||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Non-GAAP Financial Measures by Segment (unaudited, in millions) | |||||||||||||||
Nine Months Ended September 30, 2024 | Crane Payment Innovations | Security and Authentication Technologies | Corporate | Total Company | |||||||||||
Net sales | $ | 658.3 | $ | 429.4 | $ | — | $ | 1,087.7 | |||||||
Operating profit (loss) (GAAP) | $ | 178.7 | $ | 73.5 | $ | (54.2 | ) | $ | 198.0 | ||||||
Operating profit margin (GAAP) | 27.1 | % | 17.1 | % | 18.2 | % | |||||||||
Special items impacting operating profit: | |||||||||||||||
Acquired intangible asset amortization | 15.9 | 17.7 | — | 33.6 | |||||||||||
Impact of acquisition related fair value step-up | — | 5.9 | — | 5.9 | |||||||||||
Restructuring charges, net | 2.7 | — | — | 2.7 | |||||||||||
Transaction related expenses | 0.7 | — | 16.1 | 16.8 | |||||||||||
Adjusted operating profit (loss) (non-GAAP) | $ | 198.0 | $ | 97.1 | $ | (38.1 | ) | $ | 257.0 | ||||||
Adjusted operating profit margin (non-GAAP) | 30.1 | % | 22.6 | % | 23.6 | % | |||||||||
Nine Months Ended September 30, 2023 | Crane Payment Innovations | Security and Authentication Technologies | Corporate | Total Company | |||||||||||
Net sales | $ | 671.3 | $ | 363.1 | $ | — | $ | 1,034.4 | |||||||
Operating profit (GAAP) | $ | 186.3 | $ | 85.1 | $ | (57.0 | ) | $ | 214.4 | ||||||
Operating profit margin (GAAP) | 27.8 | % | 23.4 | % | 20.7 | % | |||||||||
Special items impacting operating profit: | |||||||||||||||
Acquired intangible asset amortization | 16.4 | 10.6 | — | 27.0 | |||||||||||
Transaction related expenses | — | — | 20.4 | 20.4 | |||||||||||
Adjusted operating profit (non-GAAP) | $ | 202.7 | $ | 95.7 | $ | (36.6 | ) | $ | 261.8 | ||||||
Adjusted operating profit margin (non-GAAP) | 30.2 | % | 26.4 | % | 25.3 | % | |||||||||
Totals may not sum due to rounding | |||||||||||||||
CRANE NXT, CO. AND SUBSIDIARIES Free Cash Flow and Adjusted Free Cash Flow (unaudited, in millions) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Cash Flow Items | 2024 | 2023 | 2024 | 2023 | |||||||||||
Cash provided by operating activities (GAAP) | $ | 66.7 | $ | 102.8 | $ | 133.0 | $ | 197.8 | |||||||
Less: Capital expenditures | (13.2 | ) | (7.6 | ) | (34.6 | ) | (16.1 | ) | |||||||
Free cash flow | $ | 53.5 | $ | 95.2 | $ | 98.4 | $ | 181.7 | |||||||
Transaction related expenses1 | 5.5 | 2.3 | 12.8 | 19.3 | |||||||||||
Adjusted free cash flow (non-GAAP) | $ | 59.0 | $ | 97.5 | $ | 111.2 | $ | 201.0 | |||||||
Adjusted net income (non-GAAP)* | $ | 66.7 | $ | 62.6 | $ | 176.9 | $ | 182.3 | |||||||
Adjusted free cash flow conversion (non-GAAP) | 88.5 | % | 155.8 | % | 62.9 | % | 110.3 | % | |||||||
1 Represents cash paid for transaction related expenses. | |||||||||||||||
*Please see the Non-GAAP Financial Measures tables in this release. | |||||||||||||||
Net Leverage Ratio (unaudited, in millions, except net leverage ratio) | |||
September 30, 2024 | |||
Total debt (excluding deferred financing costs of | $ | 801.7 | |
Less: Cash and cash equivalents | (165.1 | ) | |
Net debt | $ | 636.6 | |
TTM Adjusted EBITDA (non-GAAP)* | $ | 380.0 | |
Net leverage ratio | 1.7 | ||
*Please refer to the Non-GAAP Financial Measures tables in prior quarter releases and in this release. | |||
Crane NXT reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow, and Adjusted free cash flow, that are not prepared in accordance with GAAP. These non-GAAP measures are an addition, and not a substitute for or superior, to measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to operating income, net income or any other performance measures derived in accordance with GAAP. The Company's management believes that these non-GAAP measures of financial results (including on a forward-looking or projected basis) provide useful supplemental information to investors about Crane NXT. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore the Company's non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Reconciliations of certain forward-looking and projected non-GAAP measures, including Adjusted segment operating 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 operating margin and Adjusted EPS as described below.
- "Adjusted segment operating margin" is calculated as Adjusted segment profit divided by sales. Adjusted segment profit is calculated as segment profit excluding acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, and transaction related expenses. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation.
- "Adjusted EPS" is calculated as Adjusted net income divided by diluted shares. Adjusted net income is calculated as net income excluding acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, transaction related expenses, the tax effect of these adjustments and other discrete tax items. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with 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: acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, and transaction related expenses. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation. 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: acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, transaction related expenses, the tax effect of these adjustments and other discrete tax items. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation. Additionally, these non-GAAP financial measures exclude income and expense items that impacted net income and earnings per diluted share such as related party interest with Crane Company incurred prior to the Separation. 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 expenditures. 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. 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 acquisition related fair value step-up, and transaction related expenses. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation. 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.
- References to "core," such as "core sales," exclude currency effects and, where applicable, the first-year impacts of acquisitions and divestitures. 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, for example, with prior and future periods that are complementary to GAAP metrics.
Contact:
Investor Relations
ContactUs@cranenxt.com
FAQ
What were Crane NXT's Q3 2024 sales?
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