FMC Corporation Reports Fourth Quarter Results In-Line with Pre-Release and 2021 Guidance Reflects Strong Growth
FMC Corporation reported fourth-quarter 2020 revenue of $1.15 billion, a 4% decline year-over-year, but an organic growth of 2% excluding foreign currency impacts. GAAP net income surged to $47 million from a loss of $3 million in Q4 2019. For the full year, revenue was $4.64 billion, marking a 1% growth. Looking ahead, FMC anticipates 2021 revenue between $4.9 billion and $5.1 billion, representing an 8% increase at the midpoint. However, Q1 2021 is projected to see a revenue decrease of 7% compared to Q1 2020.
- GAAP net income of $47 million in Q4 2020, up from a loss of $3 million in Q4 2019.
- Full-year 2020 cash flow from operations increased by 33% to $737 million.
- Free cash flow rose significantly by 80% year-over-year to $544 million.
- Projected revenue growth of 8% in 2021 at the midpoint, reaching between $4.9 and $5.1 billion.
- Q4 2020 revenue down 4% versus Q4 2019 primarily due to supply chain disruptions.
- Adjusted EBITDA decreased by 9% in Q4 2020 compared to Q4 2019.
- Q1 2021 revenue expected to decline by 7% compared to Q1 2020.
PHILADELPHIA, Feb. 9, 2021 /PRNewswire/ --
Fourth Quarter 2020 Highlights
- Revenue of
$1.15 billion , down 4 percent versus Q4 2019, up 2 percent organically1 - GAAP net income of
$47 million , versus a loss of$3 million in Q4 2019 - Adjusted EBITDA of
$290 million , down 9 percent versus Q4 2019 - GAAP earnings of
$0.38 per diluted share, versus a loss of$0.02 per diluted share in Q4 2019 - Adjusted earnings per diluted share of
$1.42 , down 19 percent versus Q4 2019
Full-Year 2020 Highlights
- Revenue of
$4.64 billion , reflecting 1 percent growth and 7 percent organic growth1 - GAAP net income of
$551 million , up 15 percent versus 2019 - Adjusted EBITDA of
$1.25 billion , up 2 percent versus 2019 - GAAP earnings of
$4.22 per diluted share, up 17 percent versus 2019 - Adjusted earnings per diluted share of
$6.19 , up 2 percent versus 2019 - GAAP cash flow from operations of
$737 million , up 33 percent versus 2019 - Free cash flow of
$544 million , up 80 percent versus 2019
Full-Year 2021 Outlook2
- Revenue in the range of
$4.9 to$5.1 billion , reflecting 8 percent growth at the midpoint versus 2020 - Adjusted EBITDA in the range of
$1.32 to$1.42 billion , reflecting 10 percent growth at the midpoint versus 2020 - 2021 adjusted earnings are expected to be in the range of
$6.65 to$7.35 per diluted share, reflecting 13 percent growth at the midpoint versus 2020, excluding any impact from 2021 share repurchases - Free cash flow is expected to be in the range of
$530 to$620 million , reflecting 6 percent growth at the midpoint versus 2020 - Company expects to repurchase
$400 to$500 million of FMC shares in 2021, beginning in Q1
FMC Corporation (NYSE:FMC) today reported fourth quarter 2020 results that were in-line with the company's updated outlook from January 19, 2021. Fourth quarter revenue was approximately
2020 Fourth Quarter Adjusted EPS | vs. Q4 2019 |
Adjusted EBITDA | -22 cents |
Depreciation and amortization | -2 cents |
Interest expense | +6 cents |
Tax rate | -18 cents |
Non-controlling interest | +2 cents |
Total EPS Change | -34 cents |
Mark Douglas, FMC president and CEO said: "While our fourth quarter performance was impacted heavily by external factors, some of which are expected to persist into the first quarter of 2021, we posted solid full-year 2020 results and grew the business in a very challenging economic environment."
The revenue decrease was driven by a 5 percent FX headwind and a 3 percent volume decrease, partially offset by a 4 percent increase in pricing. Strong volume growth in EMEA and Asia was more than offset by weakness in North America and Latin America. Sales in EMEA increased 45 percent year over year, due to a particularly strong quarter for our diamide insecticides and cereal herbicides in addition to significant pre-ordering in the UK in advance of Brexit. In Asia, revenue increased 11 percent year over year, driven by broad volume growth in India, China, Japan and Australia. In North America, sales decreased 34 percent year over year. The majority of this decline was due to supply chain disruptions, including COVID-related factors associated with logistics and a U.S.-based tolling partner. The remainder of the decrease was due to reduced volume in lower-value pre-emergent herbicides. Latin America sales decreased 9 percent year over year but grew 4 percent excluding significant FX headwinds. In addition to the headwind from foreign currency, Brazil sales were lower than forecasted due to severe drought that delayed the start of the season and persisted throughout the fourth quarter, resulting in fewer application days. In Argentina, substantial product inventory located in bonded warehouses was not released by customs officials in a timely manner.
FMC Revenue | Q4 2020 | Full Year 2020 |
Organic Growth1 | | |
FX Impact | ( | ( |
Total Revenue Growth | ( | |
* Contributing factors do not sum | ||
For the full year, FMC reported revenue of
2020 Full Year Adjusted EPS | vs. 2019 |
Adjusted EBITDA | +20 cents |
Depreciation and amortization | -9 cents |
Interest expense | +5 cents |
Tax rate | -15 cents |
Non-controlling interest | +3 cents |
Share count | +7 cents |
Total EPS Growth | +10 cents* |
* Contributing factors do not sum to 10 cents, due to rounding | |
On a GAAP basis, cash flow from operations was
2021 Outlook2
The company is forecasting full-year 2021 revenue to be in the range of
"Looking ahead at 2021, we see an improved ag macro environment, and we expect to deliver strong revenue and earnings growth, once again driven by the strength of our portfolio and our balanced geographic and crop exposure. Our projected 2021 growth rates keep us firmly on track to deliver our 5-year growth targets of 5 to 7 percent revenue and 7 to 9 percent adjusted EBITDA compounded annual growth for 2018 through 2023," said Douglas.
First Quarter 2021 Outlook2
First quarter revenue is expected to be in the range of
Full Year Outlook2 | Q1 2021 Outlook2 | |
Revenue | ||
Organic Growth1 | ( | |
Estimated FX Impact | ( | ( |
Growth at midpoint vs. 2020 | ( | |
Adjusted EBITDA | ||
Growth at midpoint vs. 2020 | ( | |
Adjusted EPS^ | ||
Growth at midpoint vs. 2020 | ( | |
^ EPS estimates assume 131 million diluted shares. | ||
Supplemental Information
The company will post supplemental information on the web at https://investors.fmc.com, including its webcast slides for tomorrow's earnings call, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the nearest available GAAP term.
About FMC
FMC Corporation, an agricultural sciences company, provides innovative solutions to growers around the world with a robust product portfolio fueled by a market-driven discovery and development pipeline in crop protection, plant health, and professional pest and turf management. This powerful combination of advanced technologies includes leading insect control products based on Rynaxypyr® and Cyazypyr® active ingredients; Authority®, Boral®, Centium®, Command® and Gamit® branded herbicides; Talstar® and Hero® branded insecticides; and flutriafol-based fungicides. The FMC portfolio also includes biologicals such as Quartzo® and Presence® bionematicides. FMC Corporation employs approximately 6,400 employees around the globe. To learn more, please visit www.fmc.com.
FMC, the FMC logo, Rynaxypyr, Cyazypyr, Authority, Boral, Centium, Command, Gamit, Talstar, Hero, Quartzo and Presence are trademarks of FMC Corporation or an affiliate. Always read and follow all label directions, restrictions and precautions for use. Products listed here may not be registered for sale or use in all states, countries or jurisdictions. Hero® insecticide is a restricted use pesticide in the United States.
The Company's investor relations website, located at https://investors.fmc.com, should be considered as a recognized channel of distribution, and the Company may periodically post important information to the website for investors, including information that the Company may wish to disclose publicly for purposes of complying with the federal securities laws. After April 27, 2021, this type of information will no longer be provided by press release but will continue to be posted on the investor relations website.
Statement under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: FMC and its representatives may from time to time make written or oral statements that are "forward-looking" and provide other than historical information, including statements contained in this press release, in FMC's other filings with the SEC, and in reports or letters to FMC stockholders.
In some cases, FMC has identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on management's current views and assumptions regarding future events, future business conditions and the outlook for the company based on currently available information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. Currently, one of the most significant factors is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of FMC, which is substantially influenced by the potential adverse effect of the pandemic on FMC's customers and suppliers and the global economy and financial markets. The extent to which COVID-19 impacts us will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Additional factors include, among other things, the risk factors and cautionary statements included within FMC's 2019 Form 10-K and FMC's Form 10-Q for the quarter ended September 30, 2020. Moreover, investors are cautioned to interpret many of these factors as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.
FMC cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Forward-looking statements are qualified in their entirety by the above cautionary statement. FMC undertakes no obligation, and specifically disclaims any duty, to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law.
This press release contains certain "non-GAAP financial terms" which are defined on our website https://investors.fmc.com. In addition, we have also provided on our website reconciliations of non-GAAP terms to the most directly comparable GAAP term.
- Organic revenue growth (non-GAAP) excludes the impact of foreign currency changes.
- Although we provide forecasts for adjusted earnings per share, adjusted EBITDA and free cash flow (non-GAAP financial measures), we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements include, but are not limited to, restructuring, acquisition charges, and discontinued operations. As a result, no GAAP outlook is provided.
FMC CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(In Millions, Except Per Share Data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenue | $ | 1,152.2 | $ | 1,197.3 | $ | 4,642.1 | $ | 4,609.8 | |||||||
Costs of sales and services | 650.8 | 641.3 | 2,590.1 | 2,526.2 | |||||||||||
Gross margin | $ | 501.4 | $ | 556.0 | $ | 2,052.0 | $ | 2,083.6 | |||||||
Selling, general and administrative expenses | $ | 181.6 | $ | 223.8 | $ | 729.7 | $ | 792.9 | |||||||
Research and development expenses | 84.6 | 76.4 | 287.9 | 298.1 | |||||||||||
Restructuring and other charges (income) | 88.3 | 143.7 | 132.2 | 171.0 | |||||||||||
Total costs and expenses | $ | 1,005.3 | $ | 1,085.2 | $ | 3,739.9 | $ | 3,788.2 | |||||||
Income (loss) from continuing operations before equity in (earnings) loss of affiliates, non-operating pension and postretirement charges (income), interest expense, net and income taxes | $ | 146.9 | $ | 112.1 | $ | 902.2 | $ | 821.6 | |||||||
Non-operating pension and postretirement charges (income) | 5.2 | 2.6 | 21.2 | 8.1 | |||||||||||
Interest expense, net | 34.2 | 42.9 | 151.2 | 158.5 | |||||||||||
Income (loss) from continuing operations before income taxes | $ | 107.5 | $ | 66.6 | $ | 729.8 | $ | 655.0 | |||||||
Provision (benefit) for income taxes | 68.6 | 35.9 | 150.9 | 111.5 | |||||||||||
Income (loss) from continuing operations | $ | 38.9 | $ | 30.7 | $ | 578.9 | $ | 543.5 | |||||||
Discontinued operations, net of income taxes | 8.4 | (33.5) | (28.3) | (63.3) | |||||||||||
Net income (loss) | $ | 47.3 | $ | (2.8) | $ | 550.6 | $ | 480.2 | |||||||
Less: Net income (loss) attributable to noncontrolling interests | (2.2) | 0.4 | (0.9) | 2.8 | |||||||||||
Net income (loss) attributable to FMC stockholders | $ | 49.5 | $ | (3.2) | $ | 551.5 | $ | 477.4 | |||||||
Amounts attributable to FMC stockholders: | |||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 41.1 | $ | 30.3 | $ | 579.8 | $ | 540.7 | |||||||
Discontinued operations, net of tax | 8.4 | (33.5) | (28.3) | (63.3) | |||||||||||
Net income (loss) | $ | 49.5 | $ | (3.2) | $ | 551.5 | $ | 477.4 | |||||||
Basic earnings (loss) per common share attributable to FMC stockholders: | |||||||||||||||
Continuing operations | $ | 0.32 | $ | 0.23 | $ | 4.46 | $ | 4.12 | |||||||
Discontinued operations | 0.06 | (0.25) | (0.22) | (0.48) | |||||||||||
Basic earnings per common share | $ | 0.38 | $ | (0.02) | $ | 4.24 | $ | 3.64 | |||||||
Average number of shares outstanding used in basic earnings per share computations | 129.8 | 129.7 | 129.7 | 130.8 | |||||||||||
Diluted earnings (loss) per common share attributable to FMC stockholders: | |||||||||||||||
Continuing operations | $ | 0.32 | $ | 0.23 | $ | 4.44 | $ | 4.10 | |||||||
Discontinued operations | 0.06 | (0.25) | (0.22) | (0.48) | |||||||||||
Diluted earnings per common share | $ | 0.38 | $ | (0.02) | $ | 4.22 | $ | 3.62 | |||||||
Average number of shares outstanding used in diluted earnings per share computations | 130.7 | 130.9 | 130.6 | 132.0 | |||||||||||
Other Data: | |||||||||||||||
Capital additions and other investing activities | $ | 29.3 | $ | 70.4 | $ | 87.6 | $ | 147.9 | |||||||
Depreciation and amortization expense | 42.0 | 39.0 | 162.7 | 150.1 | |||||||||||
FMC CORPORATION | |||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) | |||||||||||||||
TO ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS, | |||||||||||||||
ATTRIBUTABLE TO FMC STOCKHOLDERS (NON-GAAP) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(In Millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income (loss) attributable to FMC stockholders (GAAP) | $ | 49.5 | $ | (3.2) | $ | 551.5 | $ | 477.4 | |||||||
Corporate special charges (income): | |||||||||||||||
Restructuring and other charges (income) (a) | 88.3 | 143.7 | 132.2 | 171.0 | |||||||||||
Non-operating pension and postretirement charges (income) (b) | 5.2 | 2.6 | 21.2 | 8.1 | |||||||||||
Transaction-related charges (c) | 12.9 | 25.2 | 53.3 | 77.8 | |||||||||||
Income tax expense (benefit) on Corporate special charges (income) (d) | (6.9) | (37.2) | (23.8) | (49.2) | |||||||||||
Discontinued operations attributable to FMC stockholders, net of income taxes (e) | (8.4) | 33.5 | 28.3 | 63.3 | |||||||||||
Tax adjustment (f) | 44.7 | 65.4 | 46.3 | 55.3 | |||||||||||
Adjusted after-tax earnings from continuing operations attributable to FMC stockholders (Non-GAAP) (1) | $ | 185.3 | $ | 230.0 | $ | 809.0 | $ | 803.7 | |||||||
Diluted earnings per common share (GAAP) | $ | 0.38 | $ | (0.02) | $ | 4.22 | $ | 3.62 | |||||||
Corporate special charges (income) per diluted share, before tax: | |||||||||||||||
Restructuring and other charges (income) | 0.67 | 1.10 | 1.01 | 1.29 | |||||||||||
Non-operating pension and postretirement charges (income) | 0.04 | 0.02 | 0.16 | 0.06 | |||||||||||
Transaction-related charges | 0.10 | 0.19 | 0.41 | 0.59 | |||||||||||
Income tax expense (benefit) on Corporate special charges (income), per diluted share | (0.05) | (0.28) | (0.18) | (0.37) | |||||||||||
Discontinued operations attributable to FMC stockholders, net of income taxes per diluted share | (0.06) | 0.25 | 0.22 | 0.48 | |||||||||||
Tax adjustments per diluted share | 0.34 | 0.50 | 0.35 | 0.42 | |||||||||||
Diluted adjusted after-tax earnings from continuing operations per share, attributable to FMC stockholders (Non-GAAP) | $ | 1.42 | $ | 1.76 | $ | 6.19 | $ | 6.09 | |||||||
Average number of shares outstanding used in diluted adjusted after-tax earnings from continuing operations per share computations | 130.7 | 130.9 | 130.6 | 132.0 | |||||||||||
(1) | The Company believes that the Non-GAAP financial measure "Adjusted After-Tax Earnings from Continuing Operations, Attributable to FMC Stockholders", and its presentation on a per share basis, provides useful information about the Company's operating results to investors and securities analysts. Adjusted earnings excludes the effects of Corporate special charges, tax-related adjustments and the results of our discontinued operations. The Company also believes that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of its underlying businesses from period to period. | ||||
(a) | Three Months Ended December 31, 2020: | ||||
Restructuring and other charges (income) is primarily comprised of our previously disclosed asset acquisition for full global rights to the Fluindapyr active ingredient from Isagro S.p.A. ("Isagro"), which closed on October 2, 2020, with charges in the quarter totaling | |||||
Three Months Ended December 31, 2019: | |||||
Restructuring and other charges (income) is primarily comprised of charges of environmental sites of | |||||
Twelve Months Ended December 31, 2020: | |||||
Restructuring and other charges (income) is primarily comprised of the asset acquisition for full global rights to the Fluindapyr active ingredient from Isagro S.p.A. ("Isagro") mentioned above with charges for the year totaling | |||||
Twelve Months Ended December 31, 2019: | |||||
Restructuring and other charges (income) primarily consists of charges of environmental sites of | |||||
(b) | Our non-operating pension and postretirement charges (income) are defined as those costs (benefits) related to interest, expected return on plan assets, amortized actuarial gains and losses and the impacts of any plan curtailments or settlements. These are excluded from our Adjusted Earnings and are primarily related to changes in pension plan assets and liabilities which are tied to financial market performance and we consider these costs to be outside our operational performance. We continue to include the service cost and amortization of prior service cost in our Adjusted Earnings results noted above. These elements reflect the current year operating costs to our businesses for the employment benefits provided to active employees. | ||||
(c) | Charges related to legal and professional fees associated with acquisition activities. Except for the completion of certain in-flight initiatives, primarily associated with the finalization of our worldwide ERP system, we completed the integration of the DuPont Crop Protection Business as of June 30, 2020. The transition services agreement is terminated and the last phase of the ERP system transition went live in November 2020 with a stabilization period that will go into the first quarter of 2021. Estimated remaining charges are expected to be less than | ||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
DuPont Crop Protection Acquisition | |||||||||||||||
Legal and professional fees (1) | $ | 12.9 | $ | 25.2 | $ | 53.3 | $ | 77.8 | |||||||
Total transaction-related charges | $ | 12.9 | $ | 25.2 | $ | 53.3 | $ | 77.8 | |||||||
(1) | Represents transaction costs, costs for transitional employees, other acquired employees related costs, and transactional-related costs such as legal and professional third-party fees. These charges are recorded as a component of "Selling, general and administrative expense" on the condensed consolidated statements of income (loss). | |||||
(d) | The income tax expense (benefit) on Corporate special charges (income) is determined using the applicable rates in the taxing jurisdictions in which the Corporate special charge or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure. | |||||
(e) | Three and Twelve Months Ended December 31, 2020 and 2019: | |||||
Discontinued operations, net of income taxes for the three and twelve months ended December 31, 2020 includes a gain on sale of approximately | ||||||
(f) | We exclude the GAAP tax provision, including discrete items, from the Non-GAAP measure of income, and instead include a Non-GAAP tax provision based upon the annual Non-GAAP effective tax rate. The GAAP tax provision includes certain discrete tax items including, but not limited to: income tax expenses or benefits that are not related to ongoing business operations in the current year; unusual or infrequently occurring items; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets; and changes in tax law. Management believes excluding these discrete tax items assists investors and securities analysts in understanding the tax provision and the effective tax rate related to ongoing operations thereby providing investors with useful supplemental information about FMC's operational performance. | |||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Tax adjustments: | |||||||||||||||
Revisions to valuation allowances of historical deferred tax assets | 13.5 | 34.9 | 13.1 | 35.5 | |||||||||||
Foreign currency remeasurement and other discrete items | 31.2 | 30.5 | 33.2 | 19.8 | |||||||||||
Total Non-GAAP tax adjustments | $ | 44.7 | $ | 65.4 | $ | 46.3 | $ | 55.3 | |||||||
RECONCILIATION OF NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING | |||||||||||||||
OPERATIONS, BEFORE INTEREST AND INCOME TAXES, DEPRECIATION AND AMORTIZATION, AND | |||||||||||||||
NONCONTROLLING INTERESTS (NON-GAAP) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(In Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income (loss) (GAAP) | $ | 47.3 | $ | (2.8) | $ | 550.6 | $ | 480.2 | |||||||
Restructuring and other charges (income) | 88.3 | 143.7 | 132.2 | 171.0 | |||||||||||
Non-operating pension and postretirement charges (income) | 5.2 | 2.6 | 21.2 | 8.1 | |||||||||||
Transaction-related charges | 12.9 | 25.2 | 53.3 | 77.8 | |||||||||||
Discontinued operations, net of income taxes | (8.4) | 33.5 | 28.3 | 63.3 | |||||||||||
Interest expense, net | 34.2 | 42.9 | 151.2 | 158.5 | |||||||||||
Depreciation and amortization | 42.0 | 39.0 | 162.7 | 150.1 | |||||||||||
Provision (benefit) for income taxes | 68.6 | 35.9 | 150.9 | 111.5 | |||||||||||
Adjusted earnings from continuing operations, before interest, income taxes, depreciation and amortization, and noncontrolling interests (Non-GAAP) (1) | $ | 290.1 | $ | 320.0 | $ | 1,250.4 | $ | 1,220.5 | |||||||
(1) | Referred to as Adjusted EBITDA. Adjusted EBITDA is defined as operating profit excluding depreciation and amortization expense. | ||||
RECONCILIATION OF CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES (GAAP) TO | |||||||||||||||
FREE CASH FLOW (NON-GAAP) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(In Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Cash provided (required) by operating activities of continuing operations (GAAP) (1) | $ | 423.3 | $ | 489.8 | $ | 736.8 | $ | 555.6 | |||||||
Transaction and integration costs | 10.6 | 15.6 | 63.9 | 77.1 | |||||||||||
Adjusted cash from operations (2) | $ | 433.9 | $ | 505.4 | $ | 800.7 | $ | 632.7 | |||||||
Capital expenditures | $ | (32.0) | $ | (37.1) | $ | (67.2) | $ | (93.9) | |||||||
Other investing activities | 2.7 | (33.3) | (20.4) | (54.0) | |||||||||||
Capital additions and other investing activities | $ | (29.3) | $ | (70.4) | $ | (87.6) | $ | (147.9) | |||||||
Cash provided (required) by operating activities of discontinued operations | $ | (22.7) | $ | (30.9) | $ | (89.0) | $ | (67.1) | |||||||
Cash provided (required) by investing activities of discontinued operations | 30.0 | — | 31.1 | 9.2 | |||||||||||
Transaction and integration costs | (10.6) | (15.6) | (63.9) | (77.1) | |||||||||||
Investment in Enterprise Resource Planning system | (5.0) | (6.0) | (47.2) | (48.0) | |||||||||||
Legacy and transformation | $ | (8.3) | $ | (52.5) | $ | (169.0) | $ | (183.0) | |||||||
Free cash flow (Non-GAAP) (3) | $ | 396.3 | $ | 382.5 | $ | 544.1 | $ | 301.8 | |||||||
(1) | The cash provided (required) by operating activities for the three months ended December 31, 2020 and 2019 is the calculation of the twelve months ended December 31, 2020 and 2019 less the previously reported nine months ended September 30, 2020 and 2019, respectively. | ||||
(2) | Adjusted cash from operations is defined as cash provided (required) by operating activities of continuing operations excluding the effects of transaction-related cash flows. | ||||
(3) | Free cash flow is defined as Adjusted cash from operations reduced by spending for capital additions and other investing activities as well as legacy and transformation spending. We believe that this Non-GAAP financial measure provides a useful basis for investors and securities analysts about the cash generated by routine business operations, including capital expenditures, in addition to assessing our ability to repay debt, fund acquisitions and return capital to shareholders through share repurchases and dividends. | ||||
RECONCILIATION OF REVENUE CHANGE (GAAP) TO | ||||
ORGANIC REVENUE CHANGE (NON-GAAP) (1) | ||||
(Unaudited) | ||||
Three Months Ended | Twelve Months Ended | |||
Total Revenue Change (GAAP) | ( | |||
Less: Foreign Currency Impact | ( | ( | ||
Organic Revenue Change (Non-GAAP) | ||||
*Contributing factors do not sum | ||||
Full Year 2021 Outlook | Q1 2021 Outlook | |||
Projected Total Revenue Change at Midpoint (GAAP) | ( | |||
Less: Estimated Foreign Currency Impact | ( | ( | ||
Projected Organic Revenue Change (Non-GAAP) | ( | |||
(1) | We believe organic revenue growth (non-GAAP) provides management and investors with useful supplemental information regarding our ongoing revenue performance and trends by presenting revenue growth excluding the impact of fluctuations in foreign exchange rates. | ||||
FMC CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(In Millions) | December 31, 2020 | December 31, 2019 | |||||
Cash and cash equivalents | $ | 568.9 | $ | 339.1 | |||
Trade receivables, net of allowance of | 2,330.3 | 2,231.2 | |||||
Inventories | 1,095.6 | 1,017.0 | |||||
Prepaid and other current assets | 380.8 | 487.5 | |||||
Total current assets | $ | 4,375.6 | $ | 4,074.8 | |||
Property, plant and equipment, net | 771.7 | 758.0 | |||||
Goodwill | 1,468.9 | 1,467.5 | |||||
Other intangibles, net | 2,625.2 | 2,629.0 | |||||
Deferred income taxes | 229.6 | 257.4 | |||||
Other long-term assets | 715.4 | 686.0 | |||||
Total assets | $ | 10,186.4 | $ | 9,872.7 | |||
Short-term debt and current portion of long-term debt | $ | 338.3 | $ | 227.7 | |||
Accounts payable, trade and other | 946.7 | 900.1 | |||||
Advanced payments from customers | 347.1 | 492.7 | |||||
Accrued and other liabilities | 674.7 | 680.6 | |||||
Accrued customer rebates | 295.2 | 280.6 | |||||
Guarantees of vendor financing | 140.6 | 75.7 | |||||
Accrued pensions and other postretirement benefits, current | 4.2 | 4.3 | |||||
Income taxes | 82.2 | 62.2 | |||||
Total current liabilities | $ | 2,829.0 | $ | 2,723.9 | |||
Long-term debt, less current portion | $ | 2,929.5 | $ | 3,031.1 | |||
Long-term liabilities | 1,443.7 | 1,556.3 | |||||
Equity | 2,984.2 | 2,561.4 | |||||
Total liabilities and equity | $ | 10,186.4 | $ | 9,872.7 | |||
FMC CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Year Ended December 31, | |||||||
(In Millions) | 2020 | 2019 | |||||
Cash provided (required) by operating activities of continuing operations | $ | 736.8 | $ | 555.6 | |||
Cash provided (required) by operating activities of discontinued operations | (89.0) | (67.1) | |||||
Cash provided (required) by investing activities of continuing operations | (200.4) | (195.9) | |||||
Cash provided (required) by investing activities of discontinued operations | 31.1 | 9.2 | |||||
Cash provided (required) by financing activities of continuing operations | (250.3) | (87.0) | |||||
Cash provided (required) by financing activities of discontinued operations | — | (37.2) | |||||
Effect of exchange rate changes on cash | 1.6 | (0.2) | |||||
Increase (decrease) in cash and cash equivalents | $ | 229.8 | $ | 177.4 | |||
Cash and cash equivalents of continuing operations, beginning of period | $ | 339.1 | $ | 134.4 | |||
Cash and cash equivalents of discontinued operations | — | 27.3 | |||||
Cash and cash equivalents, beginning of period | 339.1 | 161.7 | |||||
Less: cash and cash equivalent of discontinued operations, end of period | — | — | |||||
Cash and cash equivalents of continuing operations, end of period | $ | 568.9 | $ | 339.1 | |||
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SOURCE FMC Corporation
