Mativ Announces Third Quarter 2022 Results
Mativ Holdings, Inc. (NYSE: MATV) reported a strong third quarter of 2022 with sales reaching $674.1 million, a 76% increase, and 12% organic growth. The merger with Neenah led to significant sales in various sectors. However, the company reported a GAAP EPS of $(0.43) due to merger expenses. Adjusted EPS stood at $0.74, showcasing operational resilience. The ongoing integration and $65 million cost synergy plan are on track. Despite challenges from inflation and a cybersecurity incident, Mativ expects EBITDA growth to continue into 2023 with net leverage projected below 3.75x by year-end.
- Sales increased by 76% to $674.1 million.
- 12% organic sales growth, despite currency impacts.
- Adjusted operating profit rose 24% on a comparable basis.
- On track with a $65 million cost synergy plan post-merger.
- GAAP EPS was $(0.43) due to merger-related expenses.
- Operating loss of $13.9 million reported.
- Cybersecurity incident reduced sales during the quarter.
- Global economic uncertainties and rising energy costs impacted performance.
Adjusted measures are reconciled to GAAP at the end of this release. Financial and operating comparisons are versus the prior year period unless stated otherwise. Figures may not sum to total due to rounding. "Organic" – is a pro forma non-GAAP measure to reflect acquired/merged companies as if they were owned/merged for the full comparable periods, and adjusted to exclude sales related to assets that have been sold or closed. "Comparable" - is a pro forma non-GAAP measure used to compare current period
Mativ Third Quarter 2022 Highlights
-
Sales increased
76% to with$674.1 million 12% constant currency organic sales growth, or7% organic growth including negative currency impacts; strong sales growth in release liners, protective solutions, filtration, and paper and specialty packaging led the portfolio -
GAAP EPS was
, and included significant expenses related to the Neenah merger closing and integration; Adjusted EPS was$(0.43) $0.74 -
GAAP Operating Loss was
; Adjusted Operating Profit was$13.9 million , up$65.5 million 24% on a comparable basis (see non-GAAP reconciliation) - Pricing actions across the Company driving top-line gains and offsetting raw material cost increases, with margin expansion across most categories
- Macro trends such as negative currency changes, increasing global economic uncertainty, and European energy inflation impacted results, as did a cybersecurity incident (unrelated to the integration of the Neenah merger) during the quarter
-
The Company now expects 4Q:22 Adjusted EBITDA to be consistent with 3Q:22 Adjusted EBITDA of
and continued year-over-year Adjusted EBITDA growth into 2023$93.0 million - The Company still expects net leverage to be at 3.75x or below by year-end with the benefit of enhanced working capital programs, and to be within the 2.5x to 3.5x target range during 2023
Management Commentary
"Despite these positive performance trends, several factors are converging since mid-year to push second half 2022 EBITDA below our original expectations of
Mativ Third Quarter 2022 Financial Results
Note: The current period reflects consolidated
Advanced
(In millions; unaudited) |
Three Months Ended |
|||||||||||||
|
|
2022 |
|
|
2021 |
|
Change |
|
2022 |
|
|
2021 |
|
|
|
$ |
426.1 |
|
$ |
260.1 |
|
$ |
166.0 |
|
|
|
|
||
Operating Profit & Margin % |
$ |
31.5 |
|
$ |
15.9 |
|
|
15.6 |
|
7.4 |
% |
|
6.1 |
% |
Adjusted Operating Profit & Margin % |
$ |
49.8 |
|
$ |
27.2 |
|
|
22.6 |
|
11.7 |
% |
|
10.5 |
% |
Adjusted EBITDA & Margin % |
$ |
62.2 |
|
$ |
34.4 |
|
|
27.8 |
|
14.6 |
% |
|
13.2 |
% |
Fiber-Based Solutions (FBS) segment sales were
(In millions; unaudited) |
Three Months Ended |
|||||||||||||
|
|
2022 |
|
|
2021 |
|
Change |
|
2022 |
|
|
2021 |
|
|
|
$ |
248.0 |
|
$ |
123.5 |
|
$ |
124.5 |
|
|
|
|
||
Operating Profit & Margin % |
$ |
27.8 |
|
$ |
24.0 |
|
|
3.8 |
|
11.2 |
% |
|
19.4 |
% |
Adjusted Operating Profit & Margin % |
$ |
36.9 |
|
$ |
26.4 |
|
|
10.5 |
|
14.9 |
% |
|
21.4 |
% |
Adjusted EBITDA & Margin % |
$ |
49.0 |
|
$ |
32.3 |
|
|
16.7 |
|
19.8 |
% |
|
26.2 |
% |
Unallocated expenses reflected the merged Company expenses in the quarter compared to only legacy SWM expenses in the prior year period. The Company generated early-stage synergy savings, but also incurred expenses to remediate the cybersecurity incident and merger-related expenses.
(In millions; unaudited) |
Three Months Ended |
|||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
2022 |
|
2021 |
|
Operating Expense & % of Sales |
$ |
(73.2 |
) |
|
$ |
(16.9 |
) |
|
(56.3 |
) |
|
(10.9) % |
|
(4.4) % |
Adjusted Operating Expense & % of Sales |
$ |
(21.2 |
) |
|
|
(13.6 |
) |
|
(7.6 |
) |
|
(3.1) % |
|
(3.5) % |
Adjusted EBITDA & Margin % |
$ |
(18.2 |
) |
|
|
(11.9 |
) |
|
(6.3 |
) |
|
(2.7) % |
|
(3.1) % |
Interest expense was
Taxes were
Non-GAAP Adjustments reflect items included in GAAP operating profit, income, and EPS, but excluded from Adjusted Operating Profit, income, and EPS (see non-GAAP reconciliation tables for additional details). The most significant adjustments to third quarter 2022 results were as follows:
-
per share of purchase accounting expenses (purchase accounting expenses reflect primarily ongoing non-cash intangible asset amortizations associated with mergers and acquisitions)$0.36 -
per share of expenses related to the Neenah merger, which included closing costs and associated third-party fees, integration, and severance expenses$0.78 -
per share related to incurred costs to remediate the cybersecurity incident$0.08
Cash Flow, Debt, & Dividend
Year-to-date 2022 cash provided by operating activities was
Total debt was
The Company announced a quarterly cash dividend of
Conference Call
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created by that Act and other legal protections. Forward-looking statements include, without limitation, those regarding EPS and other financial guidance, acquisition integration and performance, growth prospects, future end-market trends, the future effects of supply chain challenges and price increases, future cash flows, net leverage, purchase accounting impacts, effective tax rates, planned investments, impacts of the COVID-19 pandemic on our operations, profitability, and cash flow, the expected benefits and accretion of the Neenah merger and Scapa acquisition and integration and other statements generally identified by words such as "believe," "expect," "intend," "guidance," "plan," "forecast," "potential," "anticipate," "confident," "project," "appear," "future," "should," "likely," "could," "may,", "will", "typically," and similar words.
These forward-looking statements are prospective in nature and not based on historical facts, but rather on current expectations and on numerous assumptions regarding the business strategies and the environment in which
All forward-looking statements made in this document are qualified by these cautionary statements. Forward-looking statements herein are made only as of the date of this document, and
Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance unless expressed as such and should only be viewed as historical data. The financial results reported in this release are unaudited.
Non-GAAP Financial Measures
Certain financial measures and comments contained in this press release exclude restructuring and impairment expenses, certain purchase accounting adjustments related to ATM and
In this press release the Company has provided guidance with respect to Adjusted EBITDA, which is a financial metric that has not been determined in accordance with GAAP and is therefore a non-GAAP financial measure. The Company has not provided a reconciliation to estimated GAAP net income, which the Company believes is the most directly comparable GAAP measure. Such a reconciliation is not available at this time without unreasonable effort in light of the complexities of projecting certain financial data and required purchase accounting expense analyses (primarily valuation of intangible assets) for the post-merger combined company.
The Company believes that the presentation of non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency on the information used by the Company’s management in its financial and operational decision-making. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company’s financial and operational performance in the same way that management evaluates the Company's financial performance. Management believes that providing this information enables investors to better understand the Company’s operating performance and financial condition. These non-GAAP financial measures are not calculated or presented in accordance with, and are not intended to be considered in isolation or as alternatives or substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP, and should be read only in conjunction with the Company's financial measures prepared and presented in accordance with GAAP. The non-GAAP financial measures used in this release may be different from the measures used by other companies.
Combined Legacy Financial Information
Due to the significance of the Neenah merger and the resulting change in our reportable segments,
The supplemental combined legacy financial information in the attached schedules is not necessarily indicative of the operating results of the combined companies had the Neenah merger been completed at the beginning of or prior to the periods presented or of the operating results of the combined company in the future. The supplemental combined legacy financial information for periods prior to the date of the Neenah merger does not reflect cost savings or other synergies anticipated as a result of the merger. The supplemental combined legacy financial information is not pro forma information prepared in accordance with Article 11 of Regulation S-X of the
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) |
||||||||
(in millions, except per share amounts) |
||||||||
(Unaudited) |
||||||||
|
Three Months Ended |
|
|
|||||
|
|
2022 |
|
|
|
2021 |
|
% Change |
Net sales |
$ |
674.1 |
|
|
$ |
383.6 |
|
|
Cost of products sold |
|
551.0 |
|
|
|
298.4 |
|
|
Gross profit |
|
123.1 |
|
|
|
85.2 |
|
|
|
|
|
|
|
|
|||
Selling expense |
|
22.3 |
|
|
|
13.2 |
|
|
Research and development expense |
|
7.7 |
|
|
|
5.7 |
|
|
General expense |
|
105.2 |
|
|
|
41.4 |
|
N.M. |
Total nonmanufacturing expenses |
|
135.2 |
|
|
|
60.3 |
|
N.M. |
|
|
|
|
|
|
|||
Restructuring and impairment expense |
|
1.8 |
|
|
|
1.9 |
|
(5.3)% |
Operating profit/(loss) |
|
(13.9 |
) |
|
|
23.0 |
|
N.M. |
Interest expense |
|
23.8 |
|
|
|
15.3 |
|
|
Other income, net |
|
2.4 |
|
|
|
3.7 |
|
(35.1)% |
Income/(loss) before income taxes and income from equity affiliates |
|
(35.3 |
) |
|
|
11.4 |
|
N.M. |
Income tax expense (benefit) |
|
(11.5 |
) |
|
|
1.5 |
|
N.M. |
Income from equity affiliates, net of income taxes |
|
1.3 |
|
|
|
2.3 |
|
(43.5)% |
Net income/(loss) |
$ |
(22.5 |
) |
|
$ |
12.2 |
|
N.M. |
|
|
|
|
|
|
|||
Net income/(loss) per share |
|
|
|
|
|
|||
Basic |
$ |
(0.43 |
) |
|
$ |
0.38 |
|
N.M. |
Diluted |
$ |
(0.43 |
) |
|
$ |
0.38 |
|
N.M. |
|
|
|
|
|
|
|||
Cash dividends declared per share |
$ |
0.40 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|||
Weighted average shares outstanding |
|
|
|
|
|
|||
Basic |
|
52,593,900 |
|
|
|
31,046,100 |
|
|
Diluted |
|
52,593,900 |
|
|
|
31,401,000 |
|
|
N.M. - Not Meaningful |
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) |
||||||||
(in millions, except per share amounts) |
||||||||
(Unaudited) |
||||||||
|
Nine Months Ended |
|
|
|||||
|
|
2022 |
|
|
|
2021 |
|
% Change |
Net sales |
$ |
1,507.3 |
|
|
$ |
1,049.6 |
|
|
Cost of products sold |
|
1,192.0 |
|
|
|
795.5 |
|
|
Gross profit |
|
315.3 |
|
|
|
254.1 |
|
|
|
|
|
|
|
|
|||
Selling expense |
|
51.6 |
|
|
|
34.2 |
|
|
Research and development expense |
|
18.3 |
|
|
|
14.9 |
|
|
General expense |
|
203.5 |
|
|
|
126.7 |
|
|
Total nonmanufacturing expenses |
|
273.4 |
|
|
|
175.8 |
|
|
|
|
|
|
|
|
|||
Restructuring and impairment expense |
|
17.4 |
|
|
|
5.9 |
|
N.M. |
Operating profit |
|
24.5 |
|
|
|
72.4 |
|
(66.2)% |
Interest expense |
|
58.7 |
|
|
|
31.3 |
|
|
Other income, net |
|
15.2 |
|
|
|
0.8 |
|
N.M. |
Income/(loss) before income taxes and income from equity affiliates |
|
(19.0 |
) |
|
|
41.9 |
|
N.M. |
Income tax expense (benefit) |
|
(4.8 |
) |
|
|
12.4 |
|
N.M. |
Income from equity affiliates, net of income taxes |
|
5.1 |
|
|
|
6.1 |
|
(16.4)% |
Net income/(loss) |
$ |
(9.1 |
) |
|
$ |
35.6 |
|
N.M. |
|
|
|
|
|
|
|||
Net income/(loss) per share |
|
|
|
|
|
|||
Basic |
$ |
(0.25 |
) |
|
$ |
1.13 |
|
N.M. |
Diluted |
$ |
(0.25 |
) |
|
$ |
1.12 |
|
N.M. |
|
|
|
|
|
|
|||
Cash dividends declared per share |
$ |
1.24 |
|
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|||
Weighted average shares outstanding |
|
|
|
|
|
|||
Basic |
|
38,415,900 |
|
|
|
31,022,100 |
|
|
Diluted |
|
38,415,900 |
|
|
|
31,381,600 |
|
|
N.M. - Not Meaningful |
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(in millions) |
|||||
(Unaudited) |
|||||
|
|
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
82.3 |
|
$ |
74.7 |
Accounts receivable, net |
|
454.3 |
|
|
238.0 |
Inventories |
|
485.4 |
|
|
259.5 |
Assets held for sale |
|
10.5 |
|
|
— |
Other current assets |
|
31.5 |
|
|
22.4 |
Property, plant and equipment, net |
|
843.4 |
|
|
463.9 |
|
|
849.0 |
|
|
648.3 |
Other noncurrent assets |
|
956.3 |
|
|
713.5 |
Total Assets |
$ |
3,712.7 |
|
$ |
2,420.3 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current debt |
$ |
1.8 |
|
$ |
3.2 |
Other current liabilities |
|
437.5 |
|
|
227.9 |
Long-term debt |
|
1,826.7 |
|
|
1,267.1 |
Pension and other postretirement benefits |
|
94.5 |
|
|
39.0 |
Deferred income tax liabilities |
|
140.5 |
|
|
95.1 |
Long-term income tax payable |
|
13.9 |
|
|
16.6 |
Other noncurrent liabilities |
|
64.9 |
|
|
89.2 |
Stockholders’ equity |
|
1,132.9 |
|
|
682.2 |
Total Liabilities and Stockholders’ Equity |
$ |
3,712.7 |
|
$ |
2,420.3 |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
|||||||
(in millions) |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
Operating |
|
|
|
||||
Net income/(loss) |
$ |
(9.1 |
) |
|
$ |
35.6 |
|
Non-cash items included in net income: |
|
|
|
||||
Depreciation and amortization |
|
92.3 |
|
|
|
70.3 |
|
Impairments |
|
13.7 |
|
|
|
— |
|
Deferred income tax |
|
(8.7 |
) |
|
|
2.4 |
|
Pension and other postretirement benefits |
|
(4.7 |
) |
|
|
(0.2 |
) |
Stock-based compensation |
|
16.5 |
|
|
|
6.3 |
|
Income from equity affiliates |
|
(5.1 |
) |
|
|
(6.1 |
) |
|
|
— |
|
|
|
(6.1 |
) |
Gain on sale of assets |
|
(2.9 |
) |
|
|
— |
|
Cash dividends received from equity affiliates |
|
1.1 |
|
|
|
0.8 |
|
Gain on foreign currency transactions |
|
(19.8 |
) |
|
|
(3.9 |
) |
Other items |
|
1.2 |
|
|
|
(0.5 |
) |
Cash received from settlement of interest swap agreements |
|
23.6 |
|
|
|
— |
|
Changes in operating working capital |
|
(80.9 |
) |
|
|
(71.1 |
) |
Cash provided by operations |
|
17.2 |
|
|
|
27.5 |
|
|
|
|
|
||||
Investing |
|
|
|
||||
Capital spending |
|
(36.5 |
) |
|
|
(23.8 |
) |
Capitalized software costs |
|
(2.1 |
) |
|
|
(1.9 |
) |
Acquisitions, net of cash acquired |
|
(462.5 |
) |
|
|
(630.6 |
) |
Cash received from settlement of cross-currency swap contracts |
|
35.8 |
|
|
|
— |
|
Other investing |
|
3.7 |
|
|
|
(2.0 |
) |
Cash used in investing |
|
(461.6 |
) |
|
|
(658.3 |
) |
|
|
|
|
||||
Financing |
|
|
|
||||
Cash dividends paid |
|
(50.1 |
) |
|
|
(41.5 |
) |
Proceeds from issuances of long-term debt |
|
720.4 |
|
|
|
729.7 |
|
Payments on long-term debt |
|
(180.6 |
) |
|
|
(19.5 |
) |
Payments for debt issuance costs |
|
(22.6 |
) |
|
|
(14.6 |
) |
Payments on financing lease obligations |
|
(0.4 |
) |
|
|
— |
|
Purchases of common stock |
|
(6.4 |
) |
|
|
(3.1 |
) |
Cash provided by financing |
|
460.3 |
|
|
|
651.0 |
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
(8.3 |
) |
|
|
(1.3 |
) |
|
|
|
|
||||
Increase in cash and cash equivalents |
$ |
7.6 |
|
|
$ |
18.9 |
|
BUSINESS SEGMENT REPORTING
(in millions)
(Unaudited)
NOTE RE: SEGMENT REPORTING & COMPARABILITY
Effective
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
2022 |
|
|
2021 |
|
% Change |
|
|
2022 |
|
|
2021 |
|
% Change |
||
ATM |
$ |
426.1 |
|
$ |
260.1 |
|
63.8 |
% |
|
$ |
987.1 |
|
$ |
675.1 |
|
46.2 |
% |
|
|
248.0 |
|
|
123.5 |
|
100.8 |
% |
|
|
520.2 |
|
|
374.5 |
|
38.9 |
% |
Total Consolidated |
$ |
674.1 |
|
$ |
383.6 |
|
75.7 |
% |
|
$ |
1,507.3 |
|
$ |
1,049.6 |
|
43.6 |
% |
Operating Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
|
|
|
Return on |
|
|
|
|
|
Return on |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
2021 |
ATM |
$ |
31.5 |
|
|
$ |
15.9 |
|
|
|
|
|
|
$ |
71.2 |
|
|
$ |
56.1 |
|
|
|
|
|
|
|
27.8 |
|
|
|
24.0 |
|
|
|
|
|
|
|
75.9 |
|
|
|
78.1 |
|
|
|
|
|
Unallocated |
|
(73.2 |
) |
|
|
(16.9 |
) |
|
(10.9) % |
|
(4.4) % |
|
|
(122.6 |
) |
|
|
(61.8 |
) |
|
(8.1) % |
|
(5.9) % |
Total Consolidated |
$ |
(13.9 |
) |
|
$ |
23.0 |
|
|
(2.1) % |
|
|
|
$ |
24.5 |
|
|
$ |
72.4 |
|
|
|
|
|
Non-GAAP Adjustments to Operating Profit |
|
|
|
|
|
|
|
|||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
ATM - Restructuring, impairment and other expenses (1) |
$ |
2.2 |
|
$ |
— |
|
$ |
16.5 |
|
|
$ |
— |
ATM - Purchase accounting adjustments |
|
16.1 |
|
|
11.3 |
|
|
38.3 |
|
|
|
32.1 |
|
|
0.5 |
|
|
2.4 |
|
|
(0.1 |
) |
|
|
6.4 |
|
|
8.6 |
|
|
— |
|
|
8.6 |
|
|
|
— |
Unallocated - Restructuring, impairment and other expenses (1) |
|
5.2 |
|
|
— |
|
|
5.2 |
|
|
|
— |
Unallocated - Acquisition/Merger and integration related costs |
|
46.8 |
|
|
3.3 |
|
|
60.4 |
|
|
|
19.0 |
Total Consolidated |
$ |
79.4 |
|
$ |
17.0 |
|
$ |
128.9 |
|
|
$ |
57.5 |
(1)Other charges include a tax settlement in |
Adjusted Operating Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
|
|
|
Return on |
|
|
|
|
|
Return on |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
2021 |
ATM |
$ |
49.8 |
|
|
$ |
27.2 |
|
|
|
|
|
|
$ |
126.0 |
|
|
$ |
88.2 |
|
|
|
|
|
|
|
36.9 |
|
|
|
26.4 |
|
|
|
|
|
|
|
84.4 |
|
|
|
84.5 |
|
|
|
|
|
Unallocated |
|
(21.2 |
) |
|
|
(13.6 |
) |
|
(3.1) % |
|
(3.5) % |
|
|
(57.0 |
) |
|
|
(42.8 |
) |
|
(3.8) % |
|
(4.1) % |
Total Consolidated |
$ |
65.5 |
|
|
$ |
40.0 |
|
|
|
|
|
|
$ |
153.4 |
|
|
$ |
129.9 |
|
|
|
|
|
Non-GAAP Adjustments to Adjusted Operating Profit |
|
|
|
|
|
|
|
||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
ATM - Depreciation and Stock-based compensation |
$ |
12.4 |
|
$ |
7.2 |
|
$ |
27.9 |
|
$ |
18.5 |
|
|
12.1 |
|
|
5.9 |
|
|
22.4 |
|
|
17.4 |
Unallocated - Depreciation and Stock-based compensation |
|
3.0 |
|
|
1.7 |
|
|
9.1 |
|
|
6.4 |
Total Consolidated |
$ |
27.5 |
|
$ |
14.8 |
|
$ |
59.4 |
|
$ |
42.3 |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||
|
|
|
|
|
Return on |
|
|
|
|
|
Return on |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
2022 |
|
2021 |
ATM |
$ |
62.2 |
|
|
$ |
34.4 |
|
|
|
|
|
|
$ |
153.9 |
|
|
$ |
106.7 |
|
|
|
|
|
|
49.0 |
|
|
|
32.3 |
|
|
|
|
|
|
|
106.8 |
|
|
|
101.9 |
|
|
|
|
Unallocated |
|
(18.2 |
) |
|
|
(11.9 |
) |
|
(2.7) % |
|
(3.1) % |
|
|
(47.9 |
) |
|
|
(36.4) |
|
(3.2) % |
|
(3.5) % |
Total Consolidated |
$ |
93.0 |
|
|
$ |
54.8 |
|
|
|
|
|
|
$ |
212.8 |
|
|
$ |
172.2 |
|
|
|
|
Non-GAAP Reconciliation of Combined Legacy Neenah and SWM Operating Profit |
|||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||
|
Legacy Neenah |
|
Legacy SWM |
|
|
|
|
||||||||||||
|
(As Reported) |
|
(Adjusted for
|
|
(As Reported) |
|
(Combined for
|
|
(As Reported) |
||||||||||
Advanced |
|
|
|
|
|
|
|
|
|||||||||||
|
$ |
172.7 |
|
|
$ |
155.3 |
|
|
$ |
260.1 |
|
|
$ |
415.4 |
|
|
$ |
426.1 |
|
GAAP Operating Profit |
|
10.0 |
|
|
|
10.8 |
|
|
|
15.9 |
|
|
|
26.7 |
|
|
|
31.5 |
|
Purchase accounting adjustments |
|
— |
|
|
|
— |
|
|
|
11.3 |
|
|
|
11.3 |
|
|
|
16.1 |
|
Restructuring, impairment, and other expenses |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
2.2 |
|
Acquisition/Merger & integration costs |
|
0.6 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
Other |
|
0.6 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
Adjusted Operating Profit |
$ |
10.8 |
|
|
$ |
11.6 |
|
|
$ |
27.2 |
|
|
$ |
38.8 |
|
|
$ |
49.8 |
|
Adjusted Operating Profit Margin |
|
6.3 |
% |
|
|
7.5 |
% |
|
|
10.5 |
% |
|
|
9.3 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiber-Based Solutions(FBS) (2) |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
95.2 |
|
|
$ |
112.6 |
|
|
$ |
123.5 |
|
|
$ |
236.1 |
|
|
$ |
248.0 |
|
GAAP Operating Profit |
|
6.4 |
|
|
|
8.3 |
|
|
|
24.0 |
|
|
|
32.3 |
|
|
|
27.8 |
|
Purchase accounting adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.6 |
|
Restructuring, impairment, and other expenses |
|
— |
|
|
|
— |
|
|
|
2.4 |
|
|
|
2.4 |
|
|
|
0.5 |
|
Acquisition/Merger & integration costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Adjusted Operating Profit |
$ |
6.6 |
|
|
$ |
8.5 |
|
|
$ |
26.4 |
|
|
$ |
34.9 |
|
|
$ |
36.9 |
|
Adjusted Operating Profit Margin |
|
6.9 |
% |
|
|
7.5 |
% |
|
|
21.4 |
% |
|
|
14.8 |
% |
|
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate Unallocated |
|
|
|
|
|
|
|
|
|
||||||||||
GAAP Operating Profit |
$ |
(5.0 |
) |
|
$ |
(7.7 |
) |
|
$ |
(16.9 |
) |
|
$ |
(24.6 |
) |
|
$ |
(73.2 |
) |
Restructuring, impairment, and other expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.2 |
|
Acquisition/Merger & integration costs |
|
— |
|
|
|
— |
|
|
|
3.3 |
|
|
|
3.3 |
|
|
|
46.8 |
|
Other |
|
0.3 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
Adjusted Operating Profit |
$ |
(4.7 |
) |
|
$ |
(7.4 |
) |
|
$ |
(13.6 |
) |
|
$ |
(21.0 |
) |
|
$ |
(21.2 |
) |
% of total |
|
(1.8 |
)% |
|
|
(2.8 |
)% |
|
|
(3.5 |
)% |
|
|
(3.2 |
)% |
|
|
(3.1 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
267.9 |
|
|
$ |
267.9 |
|
|
$ |
383.6 |
|
|
$ |
651.5 |
|
|
$ |
674.1 |
|
GAAP Operating Profit |
|
11.4 |
|
|
|
11.4 |
|
|
|
23.0 |
|
|
|
34.4 |
|
|
|
(13.9 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
— |
|
|
|
11.3 |
|
|
|
11.3 |
|
|
|
24.7 |
|
Restructuring, impairment, and other expenses |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
2.4 |
|
|
|
2.0 |
|
|
|
7.9 |
|
Acquisition/Merger & integration costs |
|
0.6 |
|
|
|
0.6 |
|
|
|
3.3 |
|
|
|
3.9 |
|
|
|
46.8 |
|
Other |
|
1.1 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
Adjusted Operating Profit |
$ |
12.7 |
|
|
$ |
12.7 |
|
|
$ |
40.0 |
|
|
$ |
52.7 |
|
|
$ |
65.5 |
|
Adjusted Operating Profit Margin |
|
4.7 |
% |
|
|
4.7 |
% |
|
|
10.4 |
% |
|
|
8.1 |
% |
|
|
9.7 |
% |
(1) Effective with the merger certain Assets/ |
|||||||||||||||||||
(2)
|
Non-GAAP Reconciliation of Organic Net Sales Growth |
|||||||||||
|
|
|
|
|
|
||||||
|
Advanced
|
|
Fiber-Based
|
|
Consolidated
|
||||||
|
|
|
|
|
|
||||||
SWM 3Q:21 Reported |
$ |
260.1 |
|
|
$ |
123.5 |
|
|
$ |
383.6 |
|
Neenah 3Q:21 Reported |
|
155.3 |
|
|
|
112.6 |
|
|
|
267.9 |
|
|
|
415.4 |
|
|
|
236.1 |
|
|
|
651.5 |
|
Divestiture/closure adjustments |
|
(14.7 |
) |
|
|
— |
|
|
|
(14.7 |
) |
|
$ |
400.7 |
|
|
$ |
236.1 |
|
|
$ |
636.8 |
|
|
|
|
|
|
|
||||||
|
|
426.1 |
|
|
|
248.0 |
|
|
|
674.1 |
|
|
|
4.0 |
|
|
|
5.5 |
|
|
|
9.5 |
|
Divestiture/closure adjustments |
|
(3.7 |
) |
|
|
— |
|
|
|
(3.7 |
) |
|
$ |
426.4 |
|
|
$ |
253.5 |
|
|
$ |
679.9 |
|
Organic growth |
|
6.4 |
% |
|
|
7.4 |
% |
|
|
6.8 |
% |
|
|
|
|
|
|
||||||
Currency effects on 3Q:22 |
|
(20.4 |
) |
|
|
(11.0 |
) |
|
|
(31.4 |
) |
|
$ |
446.8 |
|
|
$ |
264.5 |
|
|
$ |
711.3 |
|
Organic constant currency growth |
|
11.5 |
% |
|
|
12.0 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
||||||
(1) Effective with the Merger certain Assets/ |
|||||||||||
(2) Adjustment for estimated |
|
|||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA |
|||||||||||||||
(in millions, except per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating profit/(loss) |
$ |
(13.9 |
) |
|
$ |
23.0 |
|
|
$ |
24.5 |
|
|
$ |
72.4 |
|
Plus: Restructuring and impairment related expenses |
|
1.8 |
|
|
|
2.4 |
|
|
|
17.7 |
|
|
|
6.4 |
|
Plus: Purchase accounting adjustments |
|
24.7 |
|
|
|
11.3 |
|
|
|
46.9 |
|
|
|
32.1 |
|
Plus: Acquisition/merger and integration related costs |
|
46.8 |
|
|
|
3.3 |
|
|
|
60.4 |
|
|
|
19.0 |
|
Plus: Cybersecurity expenses |
|
6.1 |
|
|
|
— |
|
|
|
6.1 |
|
|
|
— |
|
Less: |
|
— |
|
|
|
— |
|
|
|
(2.2 |
) |
|
|
— |
|
Adjusted Operating Profit |
$ |
65.5 |
|
|
$ |
40.0 |
|
|
$ |
153.4 |
|
|
$ |
129.9 |
|
|
|
|
|
|
|
|
|
||||||||
Income/(loss) |
$ |
(22.5 |
) |
|
$ |
12.2 |
|
|
$ |
(9.1 |
) |
|
$ |
35.6 |
|
Plus: Restructuring and impairment expenses |
|
1.8 |
|
|
|
1.9 |
|
|
|
17.7 |
|
|
|
5.9 |
|
Less: Tax impact of restructuring and impairment expense |
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(3.8 |
) |
|
|
(1.5 |
) |
Less: Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
(2.9 |
) |
|
|
— |
|
Plus: Tax impact on gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
Plus: Plant closure |
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
Less: Tax impact of plant closure |
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Plus: Purchase accounting adjustments |
|
24.7 |
|
|
|
11.3 |
|
|
|
46.9 |
|
|
|
32.1 |
|
Less: Tax impact of purchase accounting adjustments |
|
(5.8 |
) |
|
|
(2.2 |
) |
|
|
(10.4 |
) |
|
|
(6.4 |
) |
Plus: |
|
— |
|
|
|
— |
|
|
|
(2.8 |
) |
|
|
(6.1 |
) |
Less: Tax impact of |
|
— |
|
|
|
0.3 |
|
|
|
1.0 |
|
|
|
2.8 |
|
Plus: Cybersecurity expenses |
|
6.1 |
|
|
|
— |
|
|
|
6.1 |
|
|
|
— |
|
Less: Tax impact of cybersecurity expenses |
|
(1.4 |
) |
|
|
— |
|
|
|
(1.4 |
) |
|
|
— |
|
Plus: Acquisition/merger and integration related costs |
|
47.2 |
|
|
|
3.3 |
|
|
|
64.1 |
|
|
|
19.0 |
|
Less: Tax impact on acquisition/merger and integration related costs |
|
(6.4 |
) |
|
|
(0.8 |
) |
|
|
(10.2 |
) |
|
|
(4.2 |
) |
Plus: Acquisition related foreign currency exchange impacts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.9 |
|
Less: Tax legislative changes, net of other discrete items |
|
(3.9 |
) |
|
|
(0.1 |
) |
|
|
(0.9 |
) |
|
|
2.1 |
|
Adjusted Income |
$ |
39.3 |
|
|
$ |
25.8 |
|
|
$ |
95.1 |
|
|
$ |
86.6 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings/(loss) per share - diluted |
$ |
(0.43 |
) |
|
$ |
0.38 |
|
|
$ |
(0.25 |
) |
|
$ |
1.12 |
|
Plus: Restructuring and impairment related expenses |
|
0.03 |
|
|
|
0.06 |
|
|
|
0.46 |
|
|
|
0.19 |
|
Less: Tax impact of restructuring and impairment expense |
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.10 |
) |
|
|
(0.05 |
) |
Less: Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
|
|
— |
|
Plus: Tax impact on gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Plus: Plant closure |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
Plus: Purchase accounting adjustments |
|
0.47 |
|
|
|
0.36 |
|
|
|
1.22 |
|
|
|
1.02 |
|
Less: Tax impact of purchase accounting adjustment |
|
(0.11 |
) |
|
|
(0.07 |
) |
|
|
(0.27 |
) |
|
|
(0.21 |
) |
Plus: |
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
|
|
(0.20 |
) |
Less: Tax impact of |
|
— |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.09 |
|
Plus: Cybersecurity expenses |
|
0.11 |
|
|
|
— |
|
|
|
0.16 |
|
|
|
— |
|
Less: Tax impact of cybersecurity expenses |
|
(0.03 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
— |
|
Plus: Acquisition/merger and integration related costs |
|
0.90 |
|
|
|
0.10 |
|
|
|
1.65 |
|
|
|
0.60 |
|
Less: Tax impact on acquisition/merger and integration related costs |
|
(0.12 |
) |
|
|
(0.02 |
) |
|
|
(0.26 |
) |
|
|
(0.13 |
) |
Plus: Acquisition related foreign currency exchange impacts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.22 |
|
Less: Tax legislative changes, net of other discrete items |
|
(0.07 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
0.07 |
|
Adjusted Earnings Per Share - Diluted |
$ |
0.74 |
|
|
$ |
0.82 |
|
|
$ |
2.46 |
|
|
$ |
2.74 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA (in millions, except per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income/(loss) |
$ |
(22.5 |
) |
|
$ |
12.2 |
|
|
$ |
(9.1 |
) |
|
$ |
35.6 |
|
Plus: Interest expense on debt |
|
23.8 |
|
|
|
15.3 |
|
|
|
59.4 |
|
|
|
35.8 |
|
Plus: Interest income on |
|
— |
|
|
|
— |
|
|
|
(0.7 |
) |
|
|
(4.5 |
) |
Plus: Provision for income taxes |
|
(11.5 |
) |
|
|
1.5 |
|
|
|
(4.8 |
) |
|
|
12.4 |
|
Plus: Depreciation and amortization |
|
39.7 |
|
|
|
24.1 |
|
|
|
87.2 |
|
|
|
67.5 |
|
Plus: Stock Compensation Expense |
|
2.5 |
|
|
|
2.0 |
|
|
|
9.1 |
|
|
|
6.9 |
|
Plus: Inventory step up expense |
|
10.0 |
|
|
|
— |
|
|
|
10.0 |
|
|
|
— |
|
Plus: Restructuring and impairment related expenses |
|
1.8 |
|
|
|
1.9 |
|
|
|
17.7 |
|
|
|
5.9 |
|
Plus: Inventory write-down expense related to plant closure |
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
Plus: Cybersecurity expenses |
|
6.1 |
|
|
|
— |
|
|
|
6.1 |
|
|
|
— |
|
Plus: Acquisition/merger and integration related costs |
|
46.8 |
|
|
|
3.3 |
|
|
|
60.4 |
|
|
|
19.0 |
|
Plus: Income from equity affiliates |
|
(1.3 |
) |
|
|
(2.3 |
) |
|
|
(5.1 |
) |
|
|
(6.1 |
) |
Plus: Other income, net |
|
(2.4 |
) |
|
|
(3.7 |
) |
|
|
(15.2 |
) |
|
|
(6.1 |
) |
Plus: Acquisition related foreign currency exchange impacts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.9 |
|
Plus: |
|
— |
|
|
|
— |
|
|
|
(2.2 |
) |
|
|
(1.6 |
) |
Adjusted EBITDA |
$ |
93.0 |
|
|
$ |
54.8 |
|
|
$ |
212.8 |
|
|
$ |
172.2 |
|
|
|
|
|
|
|
|
|
||||||||
Cash provided by (used in) operating activities |
$ |
(0.8 |
) |
|
$ |
7.7 |
|
|
$ |
17.2 |
|
|
$ |
27.5 |
|
Less: Capital spending |
|
(18.7 |
) |
|
|
(7.5 |
) |
|
|
(36.5 |
) |
|
|
(23.8 |
) |
Less: Capitalized software costs |
|
(0.5 |
) |
|
|
(0.6 |
) |
|
|
(2.1 |
) |
|
|
(1.9 |
) |
Free Cash Flow |
$ |
(20.0 |
) |
|
$ |
(0.4 |
) |
|
$ |
(21.4 |
) |
|
$ |
1.8 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Total Debt |
|
|
|
|
$ |
1,828.5 |
|
|
$ |
1,270.3 |
|
||||
Less: Cash |
|
|
|
|
|
82.3 |
|
|
|
74.7 |
|
||||
Net Debt |
|
|
|
|
$ |
1,746.2 |
|
|
$ |
1,195.6 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005796/en/
Chief Financial Officer
+1-770-569-4271
or
Director of Investor Relations
+1-770-569-4229
Website: http://www.mativ.com
Source:
FAQ
What were Mativ's sales figures for Q3 2022?
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