Nordson Corporation Reports Fiscal Year 2022 First Quarter Results and Updates Annual Guidance
Nordson Corporation (Nasdaq: NDSN) reported impressive results for its fiscal first quarter ended January 31, 2022, with sales of $609 million, marking a 16% increase from the prior year. Earnings per share surged to $2.05, up from $1.32. Adjusted operating profit reached $157 million, a 44% increase year-over-year. The company updated its full-year guidance, anticipating revenue growth of 7% to 10% and adjusted earnings growth of 14% to 18% over fiscal 2021, highlighting strong order entry and customer demand despite ongoing supply chain challenges.
- First quarter sales increased by 16% year-over-year, reaching $609 million.
- Adjusted earnings per diluted share grew by 57% to $2.07.
- Adjusted operating profit rose by 44% year-over-year to $157 million.
- Full-year revenue guidance updated to 7% to 10% growth.
- Strong order entry with a backlog exceeding $900 million.
- Unfavorable currency impact of 2% on sales.
First Quarter:
-
Sales were
, a$609 million 16% increase over prior year
-
Earnings per share were
compared to$2.05 in the prior year$1.32
-
Adjusted operating profit was
, a$157 million 44% increase over prior year
-
Adjusted earnings were
per diluted share, a$2.07 57% increase over the prior year
Guidance:
-
Update prior full-year 2022 guidance to the high-end of the range for revenue and earnings: revenue growth in the range of
7% to10% and adjusted earnings per diluted share growth in the range of14% to18% over fiscal 2021
Operating profit in the first quarter was
Net income was
“In line with our expectations, the first quarter results sustained the strong momentum from our record performance in fiscal 2021. Our teams did an outstanding job delivering double-digit sales growth across most end markets in the midst of supply chain constraints and labor shortages. I am very thankful for our employees, who are managing dynamic market conditions, deploying the NBS Next growth framework and ensuring we meet the needs of our customers,” said
First Quarter Segment Results
Industrial Precision Solutions sales of
On
Outlook
Order entry remained strong throughout the first quarter with a favorable book-to-bill ratio growing backlog to over
For the full year, the Company is focusing its guidance to the high end of its previous ranges based upon the strong fiscal first quarter performance. It now expects full-year revenue growth in the range of
Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on
Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “anticipates,” “believes,” “projects,” “forecasts,” “outlook,” “guidance,” “continue,” “target,” or the negative of such terms or comparable terminology. These statements reflect management’s current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to,
|
|||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||
(Dollars in thousands except for per-share amounts) |
|||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
2022 |
|
2021 |
|||||
Sales |
$ |
609,166 |
|
|
$ |
526,566 |
|
Cost of sales |
|
269,032 |
|
|
|
236,606 |
|
Gross profit |
|
340,134 |
|
|
|
289,960 |
|
Gross margin % |
|
55.8 |
% |
|
|
55.1 |
% |
|
|
|
|
||||
Selling & administrative expenses |
|
184,274 |
|
|
|
180,935 |
|
Operating profit |
|
155,860 |
|
|
|
109,025 |
|
|
|
|
|
||||
Interest expense - net |
|
(5,185 |
) |
|
|
(6,552 |
) |
Other income (expense) - net |
|
1,292 |
|
|
|
(4,661 |
) |
Income before income taxes |
|
151,967 |
|
|
|
97,812 |
|
|
|
|
|
||||
Income taxes |
|
31,558 |
|
|
|
20,230 |
|
|
|
|
|
||||
Net income |
$ |
120,409 |
|
|
$ |
77,582 |
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
||||
Basic |
|
58,152 |
|
|
|
58,059 |
|
Diluted |
|
58,819 |
|
|
|
58,755 |
|
|
|
|
|
||||
Earnings per share: |
|
|
|
||||
Basic earnings |
$ |
2.07 |
|
|
$ |
1.34 |
|
Diluted earnings |
$ |
2.05 |
|
|
$ |
1.32 |
|
|
|||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
(Dollars in thousands) |
|||||
|
|
|
|
||
2022 |
|
2021 |
|||
Cash and cash equivalents |
$ |
170,539 |
|
$ |
299,972 |
Receivables - net |
|
465,721 |
|
|
489,389 |
Inventories - net |
|
366,380 |
|
|
327,195 |
Other current assets |
|
51,595 |
|
|
48,282 |
Total current assets |
|
1,054,235 |
|
|
1,164,838 |
|
|
|
|
||
Property, plant & equipment - net |
|
361,567 |
|
|
355,565 |
|
|
1,836,485 |
|
|
1,713,148 |
Other assets |
|
582,703 |
|
|
557,410 |
|
$ |
3,834,990 |
|
$ |
3,790,961 |
|
|
|
|
||
Current maturities of long-term debt and notes payable |
$ |
34,149 |
|
$ |
34,188 |
Accounts payable and accrued liabilities |
|
395,318 |
|
|
411,206 |
Total current liabilities |
|
429,467 |
|
|
445,394 |
|
|
|
|
||
Long-term debt |
|
773,191 |
|
|
781,709 |
Other liabilities |
|
413,704 |
|
|
404,728 |
Total shareholders' equity |
|
2,218,628 |
|
|
2,159,130 |
|
$ |
3,834,990 |
|
$ |
3,790,961 |
|
|
|
|
|
|||||||
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) |
|||||||
(Dollars in thousands) |
|||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
2022 |
|
2021 |
|||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
120,409 |
|
|
$ |
77,582 |
|
Depreciation and amortization |
|
25,390 |
|
|
|
26,020 |
|
Other non-cash items |
|
11,023 |
|
|
|
10,271 |
|
Changes in working capital |
|
(29,217 |
) |
|
|
16,152 |
|
Other |
|
(9,518 |
) |
|
|
13,264 |
|
Net cash provided by operating activities |
|
118,087 |
|
|
|
143,289 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Additions to property, plant and equipment |
|
(12,491 |
) |
|
|
(7,917 |
) |
Acquisition of businesses, net of cash acquired |
|
(171,613 |
) |
|
|
— |
|
Other - net |
|
7 |
|
|
|
22 |
|
Net cash used in investing activities |
|
(184,097 |
) |
|
|
(7,895 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Issuance (repayment) of long-term debt |
|
(1,257 |
) |
|
|
(100,000 |
) |
Repayment of finance lease obligations |
|
(1,640 |
) |
|
|
(1,734 |
) |
Dividends paid |
|
(29,724 |
) |
|
|
(22,672 |
) |
Issuance of common shares |
|
5,721 |
|
|
|
7,438 |
|
Purchase of treasury shares |
|
(35,002 |
) |
|
|
(5,310 |
) |
Net cash used in financing activities |
|
(61,902 |
) |
|
|
(122,278 |
) |
|
|
|
|
||||
Effect of exchange rate change on cash |
|
(1,521 |
) |
|
|
4,329 |
|
Net change in cash and cash equivalents |
|
(129,433 |
) |
|
|
17,445 |
|
|
|
|
|
||||
Cash and cash equivalents: |
|
|
|
||||
Beginning of period |
|
299,972 |
|
|
|
208,293 |
|
End of period |
$ |
170,539 |
|
|
$ |
225,738 |
|
|
|
|
|
|
|||||||||||||||||
SALES BY GEOGRAPHIC SEGMENT (Unaudited) |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
Three Months Ended |
|
Sales Variance |
||||||||||||||
|
|
|
|
|
|
|
Acquisitions / |
|
|
|
|
||||||
2022 |
|
2021 |
|
Organic |
|
Divestitures |
|
Currency |
|
Total |
|||||||
SALES BY SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
||||||
Industrial precision solutions |
$ |
323,933 |
|
$ |
288,416 |
|
12.0 |
% |
|
3.2 |
% |
|
(2.9 |
) % |
|
12.3 |
% |
Advanced technology solutions |
|
285,233 |
|
|
238,150 |
|
20.6 |
% |
|
— |
% |
|
(0.8 |
) % |
|
19.8 |
% |
Total sales |
$ |
609,166 |
|
$ |
526,566 |
|
16.0 |
% |
|
1.6 |
% |
|
(1.9 |
) % |
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
SALES BY GEOGRAPHIC REGION |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
191,377 |
|
$ |
185,316 |
|
2.8 |
% |
|
0.5 |
% |
|
— |
% |
|
3.3 |
% |
|
|
48,525 |
|
|
36,138 |
|
36.6 |
% |
|
(0.9 |
) % |
|
(1.4 |
) % |
|
34.3 |
% |
|
|
155,985 |
|
|
135,151 |
|
16.6 |
% |
|
3.9 |
% |
|
(5.1 |
) % |
|
15.4 |
% |
|
|
25,558 |
|
|
27,115 |
|
3.5 |
% |
|
(0.2 |
) % |
|
(9.0 |
) % |
|
(5.7 |
) % |
|
|
187,721 |
|
|
142,846 |
|
29.4 |
% |
|
2.1 |
% |
|
(0.1 |
) % |
|
31.4 |
% |
Total sales |
$ |
609,166 |
|
$ |
526,566 |
|
16.0 |
% |
|
1.6 |
% |
|
(1.9 |
) % |
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED OPERATING PROFIT AND EBITDA (Unaudited) |
|||||||||||||
(Dollars in thousands) |
|||||||||||||
|
Three Months Ended |
||||||||||||
|
|
|
|
||||||||||
SALES BY SEGMENT |
|
|
|
|
|
|
|
||||||
Industrial precision solutions |
$ |
323,933 |
|
|
|
|
$ |
288,416 |
|
|
|
||
Advanced technology solutions |
|
285,233 |
|
|
|
|
|
238,150 |
|
|
|
||
Total sales |
$ |
609,166 |
|
|
|
|
$ |
526,566 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
OPERATING PROFIT |
|
|
|
|
|
|
|
||||||
Industrial precision solutions |
$ |
102,187 |
|
|
|
|
$ |
83,403 |
|
|
|
||
Advanced technology solutions |
|
76,327 |
|
|
|
|
|
47,201 |
|
|
|
||
Corporate |
|
(22,654 |
) |
|
|
|
|
(21,579 |
) |
|
|
||
Total operating profit |
$ |
155,860 |
|
|
|
|
$ |
109,025 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
OPERATING PROFIT ADJUSTMENTS (1) |
|
|
|
|
|
|
|
||||||
Industrial precision solutions |
$ |
1,563 |
|
|
|
|
$ |
— |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
ADJUSTED OPERATING PROFIT (NON-GAAP) (2) |
|
|
% of Sales |
|
|
|
% of Sales |
||||||
Industrial precision solutions |
$ |
103,750 |
|
|
32 |
% |
|
$ |
83,403 |
|
|
29 |
% |
Advanced technology solutions |
|
76,327 |
|
|
27 |
% |
|
|
47,201 |
|
|
20 |
% |
Corporate |
|
(22,654 |
) |
|
|
|
|
(21,579 |
) |
|
|
||
Total operating profit - adjusted |
$ |
157,423 |
|
|
26 |
% |
|
$ |
109,025 |
|
|
21 |
% |
|
|
|
|
|
|
|
|
||||||
DEPRECIATION & AMORTIZATION |
|
|
|
|
|
|
|
||||||
Industrial precision solutions |
$ |
7,442 |
|
|
|
|
$ |
6,983 |
|
|
|
||
Advanced technology solutions |
|
15,810 |
|
|
|
|
|
16,544 |
|
|
|
||
Corporate |
|
2,138 |
|
|
|
|
|
2,493 |
|
|
|
||
Total depreciation & amortization |
$ |
25,390 |
|
|
|
|
$ |
26,020 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
EBITDA (NON-GAAP) (2) |
|
|
|
|
|
|
|
||||||
Industrial precision solutions |
$ |
111,192 |
|
|
34 |
% |
|
$ |
90,386 |
|
|
31 |
% |
Advanced technology solutions |
|
92,137 |
|
|
32 |
% |
|
|
63,745 |
|
|
27 |
% |
Corporate |
|
(20,516 |
) |
|
|
|
|
(19,086 |
) |
|
|
||
Total EBITDA |
$ |
182,813 |
|
|
30 |
% |
|
$ |
135,045 |
|
|
26 |
% |
|
|
|
|
|
|
|
|
(1) Represents non-cash inventory charges associated with the NDC acquisition.
(2) Adjusted operating profit and EBITDA are non-GAAP measures used by management to evaluate the Company's ongoing operations and non-cash inventory charges related to the NDC acquisition. Adjusted operating profit is defined as operating profit plus certain adjustments, such as non-cash inventory charges associated with the NDC acquisition. EBITDA is defined as adjusted operating profit plus depreciation and amortization.
|
|||||||
RECONCILIATION OF NON-GAAP MEASURES - PROFITABILITY (Unaudited) |
|||||||
(Dollars in thousands) |
|||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
GAAP AS REPORTED |
|
|
|
||||
Operating profit |
$ |
155,860 |
|
|
$ |
109,025 |
|
Other / interest expense - net |
|
(3,893 |
) |
|
|
(11,213 |
) |
Net income |
|
120,409 |
|
|
|
77,582 |
|
Diluted earnings per share |
$ |
2.05 |
|
|
$ |
1.32 |
|
|
|
|
|
||||
Shares outstanding - diluted |
|
58,819 |
|
|
|
58,755 |
|
|
|
|
|
||||
OPERATING PROFIT ADJUSTMENTS |
|
|
|
||||
Inventory step-up amortization |
$ |
1,563 |
|
|
$ |
— |
|
Adjustments net of tax |
$ |
1,238 |
|
|
$ |
— |
|
EPS effect of adjustments |
$ |
0.02 |
|
|
$ |
— |
|
|
|
|
|
||||
NON-GAAP MEASURES-ADJUSTED PROFITABILITY |
|
|
|
||||
Operating profit (1) |
$ |
157,423 |
|
|
$ |
109,025 |
|
Operating profit % of sales |
|
25.8 |
% |
|
|
20.7 |
% |
Net income (2) |
$ |
121,647 |
|
|
$ |
77,582 |
|
Diluted earnings per share (3) |
$ |
2.07 |
|
|
$ |
1.32 |
|
(1) Adjusted operating profit is defined as operating profit plus certain adjustments such as non-cash inventory charges related to the NDC acquisition. Adjusted operating profit as a percentage of sales is defined as adjusted operating profit divided by sales.
(2) Adjusted net income is defined as net income plus tax effected adjustments and other discrete tax items.
(3) Adjusted earnings per share is defined as GAAP EPS adjusted for tax effected adjustments and other discrete tax items.
Management uses these non-GAAP measures internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220222005954/en/
Vice President,
Investor Relations & Corporate Communications
440.204.9985
Lara.Mahoney@nordson.com
Source:
FAQ
What were Nordson Corporation's Q1 2022 earnings results?
What is the updated guidance for Nordson's full-year 2022 revenue?
How did Nordson's Q1 2022 sales perform compared to the previous year?