Univar Solutions Reports Strong 2021 Fourth Quarter and Full Year Financial Results; Issues Guidance for 2022
Univar Solutions reported strong financial results for Q4 and the entire fiscal year 2021, highlighting a net income of $156.8 million, significantly up from a loss of $33.7 million in Q4 2020. Adjusted EBITDA grew by 41.5% to $207.1 million. Full-year net income was $460.6 million, a substantial jump from $52.9 million in the prior year. The company anticipates continued demand growth in 2022, projecting full-year Adjusted EBITDA between $860 million and $890 million, alongside capital returns to shareholders and strategic acquisitions.
- Net income increased to $156.8 million in Q4 2021, compared to a loss of $33.7 million in Q4 2020.
- Adjusted EBITDA rose 41.5% to $207.1 million in Q4 2021.
- Full-year 2021 net income at $460.6 million, up from $52.9 million in 2020.
- Projected full-year 2022 Adjusted EBITDA between $860 million and $890 million.
- Higher Warehousing, Selling and Administrative costs impacting profitability.
DOWNERS GROVE, Ill., Feb. 24, 2022 /PRNewswire/ -- Univar Solutions Inc. (NYSE: UNVR) ("Univar Solutions" or "the Company"), a leading global commodity and specialty chemical and ingredient distributor, announced today its financial results for the fourth quarter and fiscal year ended December 31, 2021.
Fourth Quarter 2021 Highlights
- Net income (loss) of
$156.8 million compared to$(33.7) million in the prior year fourth quarter; Adjusted net income(1) of$103.8 million compared to$57.0 million in the prior year fourth quarter. - Earnings (loss) per diluted share of
$0.91 compared to$(0.20) per diluted share in the prior year fourth quarter. Adjusted earnings per diluted share(1) of$0.60 increased from$0.34 in the prior year fourth quarter. - Adjusted EBITDA(1) of
$207.1 million compared to$146.4 million in the prior year fourth quarter. Adjusted EBITDA margin(1) of 8.3 percent compared to 7.2 percent in the prior year fourth quarter. - Net cash provided by operating activities increased to
$175.2 million from$145.3 million in the prior year fourth quarter. - Leverage ratio(1) as of December 31, 2021 was 2.5x compared to 2.8x at September 30, 2021.
$50 million of capital returned to shareholders during the fourth quarter through share repurchases.
Full Year 2021 Financial, Operating and Strategic Highlights
- Net income of
$460.6 million compared to$52.9 million in the prior year; Adjusted net income(1) of$381.1 million compared to$224.0 million in the prior year. - Earnings (loss) per diluted share of
$2.69 , compared to$0.31 per diluted share in the prior year. Adjusted earnings per diluted share(1) of$2.22 compared to$1.32 in the prior year. - Adjusted EBITDA(1) increased 25.5 percent to
$797.7 million , and Adjusted EBITDA margin(1) expanded 70 basis points to 8.4 percent from the prior year. - Net cash provided by operating activities increased to
$290.3 million from$226.9 million in the prior year.
Full year 2022 outlook for Adjusted EBITDA(1) is in the range of
"Over the past three years, we've transformed the business, putting the customer at the centre of all we do while working to take full advantage of every opportunity to drive growth. We've developed an agile commercial culture, supported by our enviable digital investments, and I'm delighted that these results truly reflect the hard work of our committed workforce. Together, we have overcome constrained supply, transport challenges and the ongoing pandemic to deliver outstanding financial results, all while furthering our ESG progress including our path to carbon neutrality by 2050," said David Jukes, president and chief executive officer. "For 2022, we expect continued strong demand as we capture share growth through our robust supplier relationships, Ingredients & Specialties authorizations, installed asset base, owned trucking fleet and digital backbone. We are targeting a strong full year Adjusted EBITDA in the range of
"We also remain committed to our disciplined capital allocation policy to drive growth, including selective acquisitions, as we look to enhance shareholder returns while maintaining strong operational and financial discipline," Jukes added.
Company Performance
Univar Solutions' operating performance results are described below and, unless otherwise indicated, are a comparison of fourth quarter 2021 results with fourth quarter 2020 results.
(Unaudited) | ||||||||||
Three months ended December 31, | % change excl. currency (1) | |||||||||
(in millions) | 2021 | 2020 | $ change | % change | ||||||
Segment External Sales (2) | ||||||||||
USA | $ 1,614.0 | $ 1,224.9 | $ 389.1 | 31.8 % | 31.8 % | |||||
EMEA | 480.9 | 427.8 | 53.1 | 12.4 % | 19.3 % | |||||
Canada | 245.4 | 258.5 | (13.1) | (5.1) % | (8.5) % | |||||
LATAM | 157.8 | 124.2 | 33.6 | 27.1 % | 23.8 % | |||||
Total Consolidated Net Sales | $ 2,498.1 | $ 2,035.4 | $ 462.7 | 22.7 % | 23.5 % | |||||
Gross Profit (exclusive of depreciation) (3,4) | ||||||||||
USA | $ 419.0 | $ 302.1 | $ 116.9 | 38.7 % | 38.7 % | |||||
EMEA | 117.4 | 104.8 | 12.6 | 12.0 % | 18.8 % | |||||
Canada | 61.1 | 50.5 | 10.6 | 21.0 % | 16.8 % | |||||
LATAM | 34.4 | 27.1 | 7.3 | 26.9 % | 25.1 % | |||||
Total Consolidated Gross Profit (exclusive of depreciation) (3) | $ 631.9 | $ 484.5 | $ 147.4 | 30.4 % | 31.4 % | |||||
Total Consolidated Net Income (Loss) | $ 156.8 | $ (33.7) | $ 190.5 | NM | NM | |||||
Adjusted EBITDA (3) | ||||||||||
USA | $ 130.6 | $ 91.1 | $ 39.5 | 43.4 % | 43.4 % | |||||
EMEA | 37.8 | 29.4 | 8.4 | 28.6 % | 36.1 % | |||||
Canada | 28.9 | 20.6 | 8.3 | 40.3 % | 35.4 % | |||||
LATAM | 12.3 | 10.6 | 1.7 | 16.0 % | 16.0 % | |||||
Other (5) | (2.5) | (5.3) | 2.8 | 52.8 % | 52.8 % | |||||
Total Consolidated Adjusted EBITDA (3) | $ 207.1 | $ 146.4 | $ 60.7 | 41.5 % | 42.3 % | |||||
(1) | Represents percentage change for the comparative periods using a constant currency. See "Use of non-GAAP Financial Measures" for additional information. |
(2) | Segment external sales represent sales to third party customers. Inter-segment sales are excluded from segment external sales. |
(3) | Non-GAAP financial measures. See "Use of non-GAAP Financial Measures" for additional information and related schedules attached hereto for reconciliation to the most directly comparable GAAP financial measure. |
(4) | Gross profit (exclusive of depreciation) is defined as segment net sales inclusive of inter-segment sales less cost of goods sold (exclusive of depreciation). |
(5) | Other represents unallocated corporate costs that do not directly benefit segments. |
Consolidated Results
Univar Solutions reported net sales of
Gross profit (exclusive of depreciation) of
Univar Solutions reported net income of
Adjusted earnings per diluted share(1) of
Adjusted EBITDA(1) of
Net cash provided by operating activities increased to
Liquidity as of December 31, 2021 was
Segment Results
USA:
- USA external sales increased 31.8 percent during the quarter, primarily due to chemical price inflation, operational execution and market share gains.
- Gross profit (exclusive of depreciation) increased by 38.7 percent. Gross margin increased by 130 basis points to 26.0 percent, primarily driven by chemical price inflation, operational execution and market share gains. The gross margin increase was partially offset by input cost inflation.
- Adjusted EBITDA(1) increased 43.4 percent to
$130.6 million , driven primarily by higher gross profit, partially offset by higher WS&A. The increase in WS&A was primarily due to higher other operating costs and variable compensation. Adjusted EBITDA margin(1) increased by 70 basis points to 8.1 percent primarily due to higher gross margins and partially offset by higher WS&A.
EMEA:
- EMEA external sales increased 12.4 percent, or 19.3 percent on a constant currency basis(1). The increase was primarily due to chemical price inflation, operational execution, market share gains and higher consumer solutions end market demand, partially offset by the effects of the Distrupol divestiture.
- Gross profit (exclusive of depreciation) increased 12.0 percent, or 18.8 percent on a constant currency basis(1), and gross margin decreased 10 basis points to 24.4 percent driven by input cost inflation.
- Adjusted EBITDA(1) increased 28.6 percent to
$37.8 million on a reported basis, or 36.1 percent on a constant currency basis(1), compared to the prior year quarter. This increase was primarily driven by higher gross profit, partially offset by the effects of the Distrupol divestiture. Adjusted EBITDA margin(1) increased 100 basis points to 7.9 percent primarily due to cost management.
CANADA:
- Canada external sales decreased by 5.1 percent, or 8.5 percent on a constant currency basis(1), primarily due to the effects of exiting the Canadian Agriculture wholesale distribution business and divesting the Canadian Agriculture services business, partially offset by chemical price inflation, operational execution and market share gains.
- Gross profit (exclusive of depreciation) increased by 21.0 percent, or 16.8 percent on a constant currency basis(1), and gross margin increased 540 basis points to 24.9 percent, largely driven by the exit from the Canadian Agriculture wholesale distribution business. The gross margin increase was partially offset by input cost inflation.
- Adjusted EBITDA(1) increased 40.3 percent to
$28.9 million on a reported basis, or 35.4 percent on a constant currency basis(1), compared to the prior year. The increase in Adjusted EBITDA(1) was primarily due to higher gross profit. Adjusted EBITDA margin(1) increased by 380 basis points to 11.8 percent, primarily due to higher gross margins.
LATAM:
- LATAM external sales increased by 27.1 percent, or 23.8 percent on a constant currency basis(1). The increase was largely due to chemical price inflation, operational execution, and market share gains.
- Gross profit (exclusive of depreciation) increased by 26.9 percent, or 25.1 percent on a constant currency basis(1), and gross margin remained flat at 21.8 percent as higher chemical price inflation, operational execution and market share gains were offset by input cost inflation.
- Adjusted EBITDA(1) increased 16.0 percent to
$12.3 million on a reported basis, and also 16.0 percent on a constant currency basis(1). Adjusted EBITDA(1) increased primarily due to higher gross profit and contribution from the Sweetmix acquisition. Adjusted EBITDA margin(1) was 7.8 percent, lower by 70 basis points, primarily due to higher WS&A given increased corporate cost allocation as a result of the SAP implementation and input cost inflation.
Outlook
The Company expects Adjusted EBITDA(1) to be between
As outlined at the company's recent Analyst Day in November 2021, we recently highlighted the following 2024 objectives:
- Ingredients & Specialties (I&S) organic growth of greater than 200bps above economic consensus
- Chemicals & Services (C&S) organic growth above economic consensus
- Improving Adjusted EBITDA(1) margins to greater than nine percent
50% Net Free Cash Flow(1) conversion- Maintain leverage between 2.0x-2.5x
- Average annual capital return to shareholders of
20% -30% of Adjusted Net Income(1)
The Company continues to expect to achieve the targeted
Univar Solutions to Host Webcast on February 25, 2022 at 9:00 a.m. ET
The Company will host a webcast with investors to discuss 2021 Fourth Quarter and Full Year Financial Results at 9:00 a.m. ET on February 25, 2022, which can be accessed on the Investor Relations section of its website at http://investors.univarsolutions.com. After the live webcast, a replay of the webcast will be available on the same website.
(1) | Non-GAAP financial measure. See "Use of non-GAAP Financial Measures" for additional information and related schedules attached hereto for reconciliations to the most directly comparable GAAP financial measure and related explanations of ratios or percentages, as applicable. |
Use of Non-GAAP Measures
In this press release, the Company's financial results are provided both in accordance with accounting principles generally accepted in the United States of America (GAAP) and using certain non-GAAP financial measures. In particular, the Company presents the non-GAAP financial measures of gross profit (exclusive of depreciation), adjusted gross profit (exclusive of depreciation), gross margin defined as gross profit (exclusive of depreciation) divided by net sales on a consolidated level and by external sales on a segment level, Adjusted EBITDA, Adjusted EBITDA margin defined as Adjusted EBITDA divided by net sales on a consolidated level and by external sales on a segment level, Adjusted net income, Adjusted earnings per diluted share, leverage ratio, net free cash flow, net free cash flow conversion (defined as net cash provided by operating activities, less capital expenditures divided by Adjusted EBITDA) and results on a constant currency basis. The non-GAAP financial measures are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help investors' ability to analyze underlying trends in the Company's business, evaluate its performance relative to other companies in its industry and provide useful information to both management and investors by excluding certain items that may not be indicative of the Company's core operating results. Additionally, the Company has used, and may continue to use, Adjusted EBITDA and Adjusted earnings per diluted share in setting performance incentive targets to align management compensation with operational performance.
The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing information on a constant currency basis provides valuable supplemental information regarding its results of operations, consistent with how it evaluates its performance. The Company calculates constant currency percentages and other information by converting its financial results in local currency for a period using the average exchange rate for the prior period to which it is comparing.
The non-GAAP financial measures noted above are not calculated in accordance with GAAP and should not be considered a substitute for net income or any other measure of financial performance presented in accordance with GAAP. Additionally, other companies may calculate Adjusted EBITDA and other such metrics differently than the Company does, limiting their usefulness as comparative measures. For further information related to the Company's use of non-GAAP financial measures, and the reconciliations to the most directly comparable GAAP measures, see the schedules attached hereto.
About Univar Solutions
Univar Solutions (NYSE: UNVR) is a leading global commodity and specialty chemical and ingredient distributor representing a premier portfolio from the world's leading producers. With the industry's largest private transportation fleet and technical sales force, unparalleled logistics know-how, deep market and regulatory knowledge, formulation and recipe development, and leading digital tools, the Company is well-positioned to offer tailored solutions and value-added services to a wide range of markets, industries, and applications. While fulfilling its purpose to help keep communities healthy, fed, clean and safe, Univar Solutions is committed to helping customers and suppliers innovate and focus on Growing Together. Learn more at univarsolutions.com.
Forward-Looking Statements
This press release includes certain statements relating to future events and our intentions, beliefs, expectations, and outlook for the future, which are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the impacts of the effects of COVID-19 on the Company, the Company's anticipated future results and financial performance, liquidity position and cash flows, actions regarding expense control and cost reductions, expected net synergies from the Nexeo acquisition, capital expenditures and other statements regarding the Company's Streamline 2022 Program and other initiatives. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions. A detailed discussion of these factors and uncertainties is contained in the Company's filings with the Securities and Exchange Commission. Potential factors that could affect such forward-looking statements include, among others: general economic conditions, particularly fluctuations in industrial production and consumption and the timing and extent of economic downturns; the ongoing and evolving COVID-19 pandemic, including impacts on the global economy, our employees, customers, vendors and suppliers, and our business, results of operations and financial condition; significant changes in the business strategies of producers or in the operations of our customers; increased competitive pressures, including as a result of competitor consolidation; potential supply chain disruptions; significant changes in the pricing, demand and availability of chemicals; our indebtedness, the restrictions imposed by, and costs associated with, our debt instruments, and our ability to obtain additional financing; the broad spectrum of laws and regulations that we are subject to, including extensive environmental, health and safety laws and regulations and changes in tax laws; potential cybersecurity incidents, including security breaches; an inability to generate sufficient working capital; transportation related challenges, including increases in transportation and fuel costs, changes in our relationship with third party transportation providers, and ability to attract and retain qualified drivers; accidents, safety failures, environmental damage, product quality issues; delivery failures or hazards and risks related to our operations and the hazardous materials we handle, potential inability to obtain adequate insurance coverage; ongoing litigation, potential product liability claims and recalls, and other environmental, legal and regulatory risks; challenges associated with international operations; exposure to interest rate and currency fluctuations; possible impairment of goodwill and intangible assets; an inability to integrate the business and systems of companies we acquire, including failure to realize the anticipated benefits of such acquisitions; negative developments affecting our pension plans and multi-employer pensions; labor disruptions associated with the unionized portion of our workforce; our ability to attract or retain a qualified and diverse workforce; and the other factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as other filings with the Securities and Exchange Commission. We caution you that the forward-looking information presented in this press release is not a guarantee of future events or results, and that actual events or results may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek, "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
Univar Solutions Inc. | ||||||||
Consolidated Statements of Operations | ||||||||
(Unaudited) | ||||||||
Three months ended December 31, | Year ended December 31, | |||||||
(in millions, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||
Net sales | $ 2,498.1 | $ 2,035.4 | $ 9,535.5 | $ 8,265.0 | ||||
Cost of goods sold (exclusive of depreciation) | 1,866.2 | 1,550.9 | 7,142.3 | 6,262.8 | ||||
Operating expenses: | ||||||||
Outbound freight and handling | 108.7 | 86.3 | 403.7 | 344.4 | ||||
Warehousing, selling and administrative | 316.1 | 251.8 | 1,191.8 | 1,022.3 | ||||
Other operating expenses, net (1) | 15.7 | 13.9 | 107.5 | 89.4 | ||||
Depreciation | 33.1 | 39.2 | 150.9 | 162.9 | ||||
Amortization | 13.8 | 14.7 | 52.5 | 60.0 | ||||
Impairment charges | — | 2.6 | 3.0 | 40.2 | ||||
Total operating expenses | $ 487.4 | $ 408.5 | $ 1,909.4 | $ 1,719.2 | ||||
Operating income | $ 144.5 | $ 76.0 | $ 483.8 | $ 283.0 | ||||
Other income (expense): | ||||||||
Interest income | 1.7 | 0.4 | 4.3 | 2.1 | ||||
Interest expense | (24.4) | (27.1) | (101.5) | (114.5) | ||||
(Loss) gain on sale of business | — | (32.7) | 88.2 | (50.6) | ||||
Loss on extinguishment of debt | — | — | (2.3) | (1.8) | ||||
Other income (expense), net (1) | 77.3 | (58.2) | 112.7 | (59.2) | ||||
Total other income (expense) | $ 54.6 | $ (117.6) | $ 101.4 | $ (224.0) | ||||
Income (loss) before income taxes | 199.1 | (41.6) | 585.2 | 59.0 | ||||
Income tax expense (benefit) from continuing operations | 42.3 | (7.9) | 124.6 | 6.1 | ||||
Net income (loss) | $ 156.8 | $ (33.7) | $ 460.6 | $ 52.9 | ||||
Income (loss) per common share: | ||||||||
Basic income (loss) per common share | $ 0.92 | $ (0.20) | $ 2.71 | $ 0.31 | ||||
Diluted income (loss) per common share | $ 0.91 | $ (0.20) | $ 2.69 | $ 0.31 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 170.8 | 169.1 | 170.2 | 169.0 | ||||
Diluted | 172.4 | 169.1 | 171.4 | 169.8 | ||||
(1) | For the years ended December 31, 2020 and 2019, the fair value adjustment for warrants was reclassified to other income (expense), net, from other operating expenses, net, to conform to the current year presentation. |
Univar Solutions Inc. | ||||
Consolidated Balance Sheets | ||||
(Unaudited) | ||||
(in millions, except per share data) | December 31, 2021 | December 31, 2020 | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 251.5 | $ 386.6 | ||
Trade accounts receivable, net of allowance for doubtful accounts of | 1,539.5 | 1,239.8 | ||
Inventories | 932.2 | 674.0 | ||
Prepaid expenses and other current assets | 169.1 | 151.5 | ||
Total current assets | $ 2,892.3 | $ 2,451.9 | ||
Property, plant and equipment, net | 1,031.0 | 1,065.7 | ||
Goodwill | 2,310.4 | 2,270.4 | ||
Intangible assets, net | 211.7 | 251.9 | ||
Deferred tax assets | 29.4 | 29.6 | ||
Other assets | 303.0 | 285.5 | ||
Total assets | $ 6,777.8 | $ 6,355.0 | ||
Liabilities and stockholders' equity | ||||
Current liabilities: | ||||
Short-term financing | $ — | $ 2.1 | ||
Trade accounts payable | 1,009.3 | 765.1 | ||
Current portion of long-term debt | 41.5 | 163.5 | ||
Accrued compensation | 196.4 | 102.2 | ||
Other accrued expenses | 420.4 | 374.1 | ||
Total current liabilities | $ 1,667.6 | $ 1,407.0 | ||
Long-term debt | 2,223.5 | 2,477.1 | ||
Pension and other postretirement benefit liabilities | 211.7 | 308.8 | ||
Deferred tax liabilities | 56.1 | 39.3 | ||
Other long-term liabilities | 326.4 | 330.5 | ||
Total liabilities | $ 4,485.3 | $ 4,562.7 | ||
Stockholders' equity:(1) | ||||
Common stock | 1.7 | 1.7 | ||
Additional paid-in capital | 3,048.5 | 2,983.3 | ||
Treasury stock | (50.0) | — | ||
Accumulated deficit | (345.0) | (805.6) | ||
Accumulated other comprehensive loss | (362.7) | (387.1) | ||
Total stockholders' equity | $ 2,292.5 | $ 1,792.3 | ||
Total liabilities and stockholders' equity | $ 6,777.8 | $ 6,355.0 | ||
(1) | Preferred stock, 200.0 million shares authorized at |
Univar Solutions Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Three months ended December 31, | Year ended December 31, | |||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | ||||
Operating activities: | ||||||||
Net income (loss) | $ 156.8 | $ (33.7) | $ 460.6 | $ 52.9 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 46.9 | 53.9 | 203.4 | 222.9 | ||||
Impairment charges | — | 2.6 | 3.0 | 40.2 | ||||
Amortization of deferred financing fees and debt discount | 1.3 | 1.8 | 6.2 | 6.5 | ||||
Loss (gain) on sale of business | — | 32.7 | (88.2) | 50.6 | ||||
Gain on sale of property, plant and equipment | (3.8) | (15.4) | (10.1) | (23.7) | ||||
Pension mark to market (gain) loss | (75.9) | 52.8 | (75.9) | 52.8 | ||||
Loss on extinguishment of debt | — | — | 2.3 | 1.8 | ||||
Deferred income taxes | (9.4) | (37.6) | 6.4 | (32.4) | ||||
Stock-based compensation expense | 9.4 | 3.6 | 25.4 | 14.5 | ||||
Fair value adjustment for warrants (1) | — | 7.2 | (33.8) | 0.8 | ||||
Other | 1.1 | 0.8 | 1.1 | 3.6 | ||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable, net | 35.6 | 60.2 | (328.6) | (66.0) | ||||
Inventories | (85.4) | 36.4 | (270.2) | 126.0 | ||||
Prepaid expenses and other current assets | (10.5) | 20.4 | (35.0) | 1.2 | ||||
Trade accounts payable | 48.0 | (15.9) | 255.1 | (139.3) | ||||
Other, net (1) | 61.1 | (24.5) | 168.6 | (85.5) | ||||
Net cash provided by operating activities | $ 175.2 | $ 145.3 | $ 290.3 | $ 226.9 | ||||
Investing activities: | ||||||||
Purchases of property, plant and equipment | $ (42.0) | $ (29.2) | $ (110.9) | $ (111.3) | ||||
Purchases of businesses, net of cash acquired | (28.7) | (4.6) | (28.7) | (4.6) | ||||
Proceeds from sale of property, plant and equipment | 15.3 | 28.8 | 29.0 | 46.5 | ||||
Proceeds from sale of business | — | 39.3 | 136.5 | 37.3 | ||||
Other | — | (1.4) | (2.3) | (9.2) | ||||
Net cash (used) provided by investing activities | $ (55.4) | $ 32.9 | $ 23.6 | $ (41.3) | ||||
Financing activities: | ||||||||
Proceeds from issuance of long-term debt, net | $ — | $ — | $ 995.0 | $ — | ||||
Payments on long-term debt and finance lease obligations | (51.5) | (8.5) | (1,440.5) | (205.3) | ||||
Net proceeds (payments) under revolving credit facilities | 18.9 | (71.7) | 32.4 | 65.5 | ||||
Financing fees paid | — | — | (1.0) | — | ||||
Taxes paid related to net share settlements of share-based compensation awards | — | (0.9) | (2.6) | (2.9) | ||||
Reacquired shares | (50.0) | — | (50.0) | — | ||||
Stock option exercises | 4.9 | 0.4 | 13.4 | 1.1 | ||||
Proceeds from the exercise of warrants | — | — | 27.1 | — | ||||
Other | 0.5 | (0.4) | 1.6 | 1.6 | ||||
Net cash used by financing activities | $ (77.2) | $ (81.1) | $ (424.6) | $ (140.0) | ||||
Effect of exchange rate changes on cash and cash equivalents | $ (11.9) | $ 15.8 | $ (24.4) | $ 10.7 | ||||
Net increase (decrease) in cash and cash equivalents | $ 30.7 | $ 112.9 | $ (135.1) | $ 56.3 | ||||
Cash and cash equivalents at beginning of period | 220.8 | 273.7 | 386.6 | 330.3 | ||||
Cash and cash equivalents at end of period | $ 251.5 | $ 386.6 | $ 251.5 | $ 386.6 | ||||
(1) | For the three months and year ended December 31, 2020, the amount included in "fair value adjustment for warrants," which was previously included in "other, net," is now presented separately to conform to the current year presentation. |
Schedule A | ||||||||||
Univar Solutions Inc. | ||||||||||
Full Year 2021 Segment Detail | ||||||||||
(Unaudited) | ||||||||||
Year ended December 31, | % change excl. | |||||||||
(in millions) | 2021 | 2020 | $ change | % change | ||||||
Segment External Sales (2) | ||||||||||
USA | $ 6,024.0 | $ 5,006.2 | $ 1,017.8 | 20.3 % | 20.3 % | |||||
EMEA | 1,971.1 | 1,697.1 | 274.0 | 16.1 % | 13.8 % | |||||
Canada | 930.0 | 1,110.7 | (180.7) | (16.3) % | (21.7) % | |||||
LATAM | 610.4 | 451.0 | 159.4 | 35.3 % | 31.5 % | |||||
Total Consolidated Net Sales | $ 9,535.5 | $ 8,265.0 | $ 1,270.5 | 15.4 % | 13.9 % | |||||
Gross Profit (exclusive of depreciation) (3)(4) | ||||||||||
USA | $ 1,537.5 | $ 1,258.3 | $ 279.2 | 22.2 % | 22.2 % | |||||
EMEA | 486.8 | 425.8 | 61.0 | 14.3 % | 11.6 % | |||||
Canada | 233.1 | 215.1 | 18.0 | 8.4 % | 1.3 % | |||||
LATAM | 135.8 | 103.0 | 32.8 | 31.8 % | 29.9 % | |||||
Total Consolidated Gross Profit (exclusive of depreciation) (3) | $ 2,393.2 | $ 2,002.2 | $ 391.0 | 19.5 % | 18.1 % | |||||
Total Consolidated Net Income | $ 460.6 | $ 52.9 | $ 407.7 | 770.7 % | 739.1 % | |||||
Adjusted EBITDA (3) | ||||||||||
USA | $ 498.2 | $ 393.2 | $ 105.0 | 26.7 % | 26.7 % | |||||
EMEA | 170.6 | 142.7 | 27.9 | 19.6 % | 16.2 % | |||||
Canada | 104.2 | 89.7 | 14.5 | 16.2 % | 8.6 % | |||||
LATAM | 56.9 | 43.0 | 13.9 | 32.3 % | 31.4 % | |||||
Other (5) | (32.2) | (32.8) | 0.6 | 1.8 % | 1.8 % | |||||
Total Consolidated Adjusted EBITDA (3) | $ 797.7 | $ 635.8 | $ 161.9 | 25.5 % | 23.6 % | |||||
(1) | Represents percentage change for the comparative periods using a constant currency. See "Use of non-GAAP Financial Measures" for discussion. |
(2) | Segment external sales represent sales to third party customers. Inter-segments sales are excluded from segment external sales. |
(3) | Non-GAAP financial measures. See "Use of non-GAAP Financial Measures" for further discussion and related schedules attached hereto for reconciliation to the most comparable GAAP financial measure. |
(4) | Gross profit (exclusive of depreciation) is defined as segment net sales inclusive of inter-segment sales less cost of goods sold (exclusive of depreciation). |
(5) | Other represents unallocated corporate costs that do not directly benefit segments. |
Schedule B | ||||||||||||||||
Beginning in Q1 2021, the Company excluded amortization expense and non-operating retirement benefits from its Adjusted EPS measure but continued to include restructuring, employee severance and other facility closure costs other than Nexeo acquisition-related items, the gain or loss on sale of property, plant and equipment and certain other non-operating items. The table below presents a reconciliation for Adjusted EPS on this new basis for the three months and year ended December 31, 2021. | ||||||||||||||||
Univar Solutions Inc. | ||||||||||||||||
Reconciliation of GAAP Net (Loss) Income to Adjusted Net Income and | ||||||||||||||||
Diluted Earnings per Share to Adjusted Diluted Earnings per Share | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in millions, except per share data) | Amount | per share(1) (2) | Amount | per share(1) (2) | Amount | per share(1) (2) | Amount | per share(1) (2) | ||||||||
Net income (loss) and diluted EPS | $ 156.8 | $ 0.91 | $ (33.7) | $ (0.20) | $ 460.6 | $ 2.69 | $ 52.9 | $ 0.31 | ||||||||
Pension mark to market (gain) loss(3) | (75.9) | (0.44) | 52.8 | 0.31 | (75.9) | (0.44) | 52.8 | 0.31 | ||||||||
Pension curtailment and settlement gains(3) | (0.3) | — | (0.6) | — | (0.3) | — | (0.6) | — | ||||||||
Amortization | 13.8 | 0.08 | 14.7 | 0.09 | 52.5 | 0.31 | 60.0 | 0.35 | ||||||||
Exchange loss(3) | 9.1 | 0.05 | 0.7 | — | 15.9 | 0.09 | 6.8 | 0.04 | ||||||||
Derivative loss (gain)(3) | (7.2) | (0.04) | (0.7) | — | (5.8) | (0.03) | 4.8 | 0.03 | ||||||||
(Gain) loss on sale of business | — | — | 32.7 | 0.19 | (88.2) | (0.52) | 50.6 | 0.30 | ||||||||
Nexeo employee severance and other facility closure costs(4) | 2.6 | 0.02 | 1.4 | — | 8.1 | 0.05 | 5.9 | 0.03 | ||||||||
Shared service employee severance and other facility closure costs(4) | (0.3) | — | 0.4 | — | (0.3) | — | 3.5 | 0.02 | ||||||||
Intangible asset impairment charges | — | — | — | — | — | — | 12.8 | 0.08 | ||||||||
Brazil VAT charge | — | — | — | — | — | — | 0.3 | — | ||||||||
Loss on extinguishment of debt and debt refinancing costs(3) | — | — | — | — | 9.3 | 0.05 | 1.9 | 0.01 | ||||||||
Nexeo acquisition and integration related expenses(4) | 10.7 | 0.06 | 16.0 | 0.11 | 55.5 | 0.32 | 61.6 | 0.37 | ||||||||
Fair value adjustment for warrants(3) | — | — | 7.2 | 0.04 | (33.8) | (0.20) | 0.8 | — | ||||||||
Non-operating retirement benefits(3) | (4.0) | (0.03) | (2.0) | (0.01) | (18.5) | (0.11) | (8.5) | (0.05) | ||||||||
Multi-employer pension plan exit liability(3) | — | — | — | — | 31.2 | 0.18 | — | — | ||||||||
Income tax benefit related to reconciling items(5) | (9.1) | (0.05) | (46.6) | (0.28) | (39.5) | (0.23) | (69.0) | (0.41) | ||||||||
Other discrete tax items(6) | 7.6 | 0.04 | 14.7 | 0.09 | 10.3 | 0.06 | (12.6) | (0.07) | ||||||||
Adjusted net income and diluted EPS | $ 103.8 | $ 0.60 | $ 57.0 | $ 0.34 | $ 381.1 | $ 2.22 | $ 224.0 | $ 1.32 | ||||||||
GAAP diluted common shares outstanding(2) | 172.4 | 169.1 | 171.4 | 169.8 | ||||||||||||
Effect of dilutive securities: stock compensation plans | — | 0.9 | — | — | ||||||||||||
Adjusted diluted common shares outstanding(2) | 172.4 | 170.0 | 171.4 | 169.8 | ||||||||||||
(1) | Immaterial differences may exist in the calculation of per share amounts due to rounding. |
(2) | Diluted and adjusted diluted earnings per share is calculated using net income or adjusted net income available to common shareholders divided by diluted weighted average shares outstanding during each period, respectively, which includes unvested restricted shares. Diluted earnings per share considers the impact of potential dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Adjusted earnings per diluted share is based on the GAAP dilutive share count, except where adjustments to GAAP net loss result in an adjusted net income position. |
(3) | Reconciling items represent certain items disclosed on Schedule E included in this document, excluding stock-based compensation, restructuring charges, gain on sale of property, plant and equipment, certain employee severance and facility closure costs, certain acquisition and integration related expenses, and other. |
(4) | For the three months ended December 31, 2021 and 2020, Nexeo employee severance and other facility closure costs represent |
(5) | Tax on reconciling items is calculated as the difference between the tax provisions on US GAAP pre-tax earnings and Adjusted pre-tax earnings utilizing the appropriate tax rates and laws of each jurisdiction. |
(6) | Discrete tax items primarily relate to changes in valuation allowances, stock compensation expense and tax law changes. |
Schedule C | |||||||||||||||||
Univar Solutions Inc. | |||||||||||||||||
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(in millions) | Q4'19 | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | LTM(2) Q3'20 | LTM(2) Q4'20 | LTM(2) Q3'21 | LTM(2) Q4'21 | ||||
Net (loss) income | $ (55.1) | $ 55.9 | $ 1.8 | $ 28.9 | $ (33.7) | $ 66.2 | $ 153.2 | $ 84.4 | $ 156.8 | $ 31.5 | $ 52.9 | $ 270.1 | $ 460.6 | ||||
Depreciation | 40.5 | 41.7 | 40.4 | 41.6 | 39.2 | 43.8 | 37.3 | 36.7 | 33.1 | 164.2 | 162.9 | 157.0 | 150.9 | ||||
Amortization | 14.6 | 15.8 | 14.8 | 14.7 | 14.7 | 13.1 | 13.2 | 12.4 | 13.8 | 59.9 | 60.0 | 53.4 | 52.5 | ||||
Interest expense, net | 30.6 | 28.1 | 29.9 | 27.7 | 26.7 | 26.6 | 25.7 | 22.2 | 22.7 | 116.3 | 112.4 | 101.2 | 97.2 | ||||
Income tax expense (benefit) | 66.1 | (0.3) | 11.6 | 2.7 | (7.9) | 17.6 | 27.0 | 37.7 | 42.3 | 80.1 | 6.1 | 74.4 | 124.6 | ||||
EBITDA | 96.7 | 141.2 | 98.5 | 115.6 | 39.0 | 167.3 | 256.4 | 193.4 | 268.7 | 452.0 | 394.3 | 656.1 | 885.8 | ||||
Other operating expenses, net (1) | 25.6 | 30.4 | 24.8 | 20.3 | 13.9 | 44.2 | 29.9 | 17.7 | 15.7 | 101.1 | 89.4 | 105.7 | 107.5 | ||||
Other expense (income), net (1) | 67.1 | (20.4) | 22.7 | (1.3) | 58.2 | (28.9) | (5.3) | (1.2) | (77.3) | 68.1 | 59.2 | 22.8 | (112.7) | ||||
Impairment charges | — | — | 16.9 | 20.7 | 2.6 | — | 2.1 | 0.9 | — | 37.6 | 40.2 | 5.6 | 3.0 | ||||
(Gain) loss on sale of business | (41.4) | 8.6 | — | 9.3 | 32.7 | (0.6) | (87.6) | — | — | (23.5) | 50.6 | (55.5) | (88.2) | ||||
Loss on extinguishment of debt | 19.1 | 1.8 | — | — | — | 0.2 | 2.0 | 0.1 | — | 20.9 | 1.8 | 2.3 | 2.3 | ||||
Brazil VAT (recovery) charge | (8.3) | — | 0.3 | — | — | — | — | — | — | (8.0) | 0.3 | — | — | ||||
Adjusted EBITDA | $ 158.8 | $ 161.6 | $ 163.2 | $ 164.6 | $ 146.4 | $ 182.2 | $ 197.5 | $ 210.9 | $ 207.1 | $ 648.2 | $ 635.8 | $ 737.0 | $ 797.7 | ||||
(1) | Refer to Schedule E for more information for the three months and years ended December 31, 2021 and 2020. |
(2) | Last Twelve Month (LTM) Adjusted EBITDA is a component used in the calculation of the Company's leverage ratio. |
Schedule D | ||||||||||||
Univar Solutions Inc. | ||||||||||||
Gross Profit (exclusive of depreciation) and | ||||||||||||
Adjusted Gross Profit (exclusive of depreciation) | ||||||||||||
(Unaudited) | ||||||||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations (1) | Consolidated | |||||||
(in millions) | Three Months Ended December 31, 2021 | |||||||||||
External customers | $ 1,614.0 | $ 480.9 | $ 245.4 | $ 157.8 | $ — | $ 2,498.1 | ||||||
Inter-segment | 26.3 | 0.7 | 1.8 | — | (28.8) | — | ||||||
Total net sales | $ 1,640.3 | $ 481.6 | $ 247.2 | $ 157.8 | $ (28.8) | $ 2,498.1 | ||||||
Cost of goods sold (exclusive of depreciation) | 1,221.3 | 364.2 | 186.1 | 123.4 | (28.8) | 1,866.2 | ||||||
Outbound freight and handling | 81.2 | 15.7 | 8.4 | 3.4 | — | 108.7 | ||||||
Warehousing, selling and administrative | 207.2 | 63.9 | 23.8 | 18.7 | 2.5 | 316.1 | ||||||
Adjusted EBITDA | $ 130.6 | $ 37.8 | $ 28.9 | $ 12.3 | $ (2.5) | $ 207.1 | ||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations (1) | Consolidated | |||||||
(in millions) | Three Months Ended December 31, 2021 | |||||||||||
Net sales | $ 1,640.3 | $ 481.6 | $ 247.2 | $ 157.8 | $ (28.8) | $ 2,498.1 | ||||||
Cost of goods sold (exclusive of depreciation) | 1,221.3 | 364.2 | 186.1 | 123.4 | (28.8) | 1,866.2 | ||||||
Gross profit (exclusive of depreciation) | $ 419.0 | $ 117.4 | $ 61.1 | $ 34.4 | $ — | $ 631.9 | ||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations (1) | Consolidated | |||||||
(in millions) | Three Months Ended December 31, 2020 | |||||||||||
External customers | $ 1,224.9 | $ 427.8 | $ 258.5 | $ 124.2 | $ — | $ 2,035.4 | ||||||
Inter-segment | 17.9 | 0.8 | 0.5 | — | (19.2) | — | ||||||
Total net sales | $ 1,242.8 | $ 428.6 | $ 259.0 | $ 124.2 | $ (19.2) | $ 2,035.4 | ||||||
Cost of goods sold (exclusive of depreciation) | 940.7 | 323.8 | 208.5 | 97.1 | (19.2) | 1,550.9 | ||||||
Outbound freight and handling | 60.4 | 13.7 | 9.5 | 2.7 | — | 86.3 | ||||||
Warehousing, selling and administrative | 150.6 | 61.7 | 20.4 | 13.8 | 5.3 | 251.8 | ||||||
Adjusted EBITDA | $ 91.1 | $ 29.4 | $ 20.6 | $ 10.6 | $ (5.3) | $ 146.4 | ||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations (1) | Consolidated | |||||||
(in millions) | Three Months Ended December 31, 2020 | |||||||||||
Net sales | $ 1,242.8 | $ 428.6 | $ 259.0 | $ 124.2 | $ (19.2) | $ 2,035.4 | ||||||
Cost of goods sold (exclusive of depreciation) | 940.7 | 323.8 | 208.5 | 97.1 | (19.2) | 1,550.9 | ||||||
Gross profit (exclusive of depreciation) | $ 302.1 | $ 104.8 | $ 50.5 | $ 27.1 | $ — | $ 484.5 | ||||||
USA | EMEA | Canada | LATAM | Other/Eliminations (1) | Consolidated | |||||||
(in millions) | Year Ended December 31, 2021 | |||||||||||
External customers | $ 6,024.0 | $ 1,971.1 | $ 930.0 | $ 610.4 | $ — | $ 9,535.5 | ||||||
Inter-segment | 92.1 | 4.3 | 4.4 | 0.7 | (101.5) | — | ||||||
Total net sales | $ 6,116.1 | $ 1,975.4 | $ 934.4 | $ 611.1 | $ (101.5) | $ 9,535.5 | ||||||
Cost of goods sold (exclusive of depreciation) | 4,578.6 | 1,488.6 | 701.3 | 475.3 | (101.5) | 7,142.3 | ||||||
Outbound freight and handling | 291.0 | 64.0 | 36.2 | 12.5 | — | 403.7 | ||||||
Warehousing, selling and administrative | 748.3 | 252.2 | 92.7 | 66.4 | 32.2 | 1,191.8 | ||||||
Adjusted EBITDA | $ 498.2 | $ 170.6 | $ 104.2 | $ 56.9 | $ (32.2) | $ 797.7 | ||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations (1) | Consolidated | |||||||
(in millions) | Year Ended December 31, 2021 | |||||||||||
Net sales | $ 6,116.1 | $ 1,975.4 | $ 934.4 | $ 611.1 | $ (101.5) | $ 9,535.5 | ||||||
Cost of goods sold (exclusive of depreciation) | 4,578.6 | 1,488.6 | 701.3 | 475.3 | (101.5) | 7,142.3 | ||||||
Gross profit (exclusive of depreciation) | $ 1,537.5 | $ 486.8 | $ 233.1 | $ 135.8 | $ — | $ 2,393.2 | ||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations (1) | Consolidated | |||||||
(in millions) | Year Ended December 31, 2020 | |||||||||||
External customers | $ 5,006.2 | $ 1,697.1 | $ 1,110.7 | $ 451.0 | $ — | $ 8,265.0 | ||||||
Inter-segment | 81.2 | 3.1 | 2.5 | — | (86.8) | — | ||||||
Total net sales | $ 5,087.4 | $ 1,700.2 | $ 1,113.2 | $ 451.0 | $ (86.8) | $ 8,265.0 | ||||||
Cost of goods sold (exclusive of depreciation) | 3,829.1 | 1,274.4 | 898.1 | 348.0 | (86.8) | 6,262.8 | ||||||
Outbound freight and handling | 239.3 | 56.5 | 38.9 | 9.7 | — | 344.4 | ||||||
Warehousing, selling and administrative | 625.8 | 226.6 | 86.5 | 50.6 | 32.8 | 1,022.3 | ||||||
Brazil VAT charge (2) | — | — | — | 0.3 | — | 0.3 | ||||||
Adjusted EBITDA (2) | $ 393.2 | $ 142.7 | $ 89.7 | $ 43.0 | $ (32.8) | $ 635.8 | ||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations (1) | Consolidated | |||||||
(in millions) | Year Ended December 31, 2020 | |||||||||||
Net sales | $ 5,087.4 | $ 1,700.2 | $ 1,113.2 | $ 451.0 | $ (86.8) | $ 8,265.0 | ||||||
Cost of goods sold (exclusive of depreciation) | 3,829.1 | 1,274.4 | 898.1 | 348.0 | (86.8) | 6,262.8 | ||||||
Gross profit (exclusive of depreciation) | $ 1,258.3 | $ 425.8 | $ 215.1 | $ 103.0 | $ — | $ 2,002.2 | ||||||
Brazil VAT recovery (2) | — | — | — | 0.4 | — | 0.4 | ||||||
Adjusted gross profit (exclusive of depreciation) (2) | $ 1,258.3 | $ 425.8 | $ 215.1 | $ 103.4 | $ — | $ 2,002.6 | ||||||
(1) | Other/Eliminations represents the elimination of intersegment transactions as well as unallocated corporate costs consisting of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively. |
(2) | Adjusted EBITDA excludes a |
Schedule E | ||||||||
Univar Solutions Inc. | ||||||||
Detail of Other operating expenses, net and | ||||||||
Other income (expense), net | ||||||||
(Unaudited) | ||||||||
Other operating expenses, net | ||||||||
Three months ended December 31, | Year ended December 31, | |||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | ||||
Acquisition and integration related expenses | $ 11.0 | $ 16.5 | $ 55.8 | $ 62.4 | ||||
Stock-based compensation expense | 9.4 | 3.6 | 25.4 | 14.5 | ||||
Restructuring charges | — | 4.2 | 0.2 | 13.9 | ||||
Other employee severance costs | 2.0 | 3.6 | 8.7 | 14.8 | ||||
Other facility closure costs | 0.1 | 0.5 | 1.2 | 2.7 | ||||
Multi-employer pension plan exit liability | — | — | 31.2 | — | ||||
Gain on sale of property, plant and equipment | (3.8) | (15.4) | (10.1) | (23.7) | ||||
Other | (3.0) | 0.9 | (4.9) | 4.8 | ||||
Total other operating expenses, net | $ 15.7 | $ 13.9 | $ 107.5 | $ 89.4 | ||||
Other income (expense), net | ||||||||
Three months ended December 31, | Year ended December 31, | |||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | ||||
Pension mark to market gain (loss) | $ 75.9 | $ (52.8) | $ 75.9 | $ (52.8) | ||||
Pension curtailment and settlement gains | 0.3 | 0.6 | 0.3 | 0.6 | ||||
Non-operating retirement benefits | 4.0 | 2.0 | 18.5 | 8.5 | ||||
Foreign currency transactions | (1.8) | (0.8) | (7.6) | (6.9) | ||||
Foreign currency denominated loans revaluation | (7.3) | 0.1 | (8.3) | 0.1 | ||||
Undesignated foreign currency derivative instruments | 5.6 | 2.6 | 2.8 | 3.2 | ||||
Undesignated interest rate and cross currency swap contracts | 1.6 | (1.9) | 3.0 | (8.0) | ||||
Debt refinancing costs | — | — | (7.0) | (0.1) | ||||
Fair value adjustment for warrants (1) | — | (7.2) | 33.8 | (0.8) | ||||
Other | (1.0) | (0.8) | 1.3 | (3.0) | ||||
Total other income (expense), net | $ 77.3 | $ (58.2) | $ 112.7 | $ (59.2) | ||||
(1) | For the three months and year ended December 31, 2020, the fair value adjustment for warrants was reclassified to "other expense, net," from "other operating expenses, net," to conform to the current year presentation. |
Schedule F | ||||||||
Univar Solutions Inc. | ||||||||
Reconciliation of GAAP Debt to Net Debt | ||||||||
(Unaudited) | ||||||||
December 31, | September 30, | |||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | ||||
Total short-term and long-term debt | $ 2,265.0 | $ 2,640.6 | $ 2,278.9 | $ 2,688.0 | ||||
Add: Short-term financing | — | 2.1 | — | 0.4 | ||||
Less: Cash and cash equivalents | (251.5) | (386.6) | (220.8) | (273.7) | ||||
Total net debt | $ 2,013.5 | $ 2,256.1 | $ 2,058.1 | $ 2,414.7 | ||||
LTM Adjusted EBITDA (1)(2) | $ 799.7 | $ 635.8 | $ 728.0 | $ 641.2 | ||||
Leverage ratio (Total net debt/LTM Adjusted EBITDA) | 2.5x | 3.5x | 2.8x | 3.8x | ||||
(1) | LTM Adjusted EBITDA, as defined by the Company's credit agreements, includes adjustments for acquisitions and divestitures and excludes the impact of synergies not yet realized. For December 31, 2021 and September 31, 2021, LTM Adjusted EBITDA excludes three and six months of Adjusted EBITDA of |
(2) | Refer to Schedule C for more information on LTM Adjusted EBITDA before the adjustments discussed in the note above. |
Schedule G | ||||||||||||
Univar Solutions Inc. | ||||||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA Guidance | ||||||||||||
(Unaudited) | ||||||||||||
Year ended | Guidance | |||||||||||
Q1 2022 | Full year 2022 | |||||||||||
(in millions) | Q4 2021 | Low | High | Low | High | |||||||
Net income (1) | $ 156.8 | $ 460.6 | $ 121 | $ 143 | $ 357 | $ 410 | ||||||
Depreciation (1) | 33.1 | 150.9 | 40 | 38 | 160 | 150 | ||||||
Amortization (1) | 13.8 | 52.5 | 12 | 11 | 47 | 43 | ||||||
Interest expense, net (1) | 22.7 | 97.2 | 25 | 23 | 100 | 90 | ||||||
Income tax expense (1) | 42.3 | 124.6 | 50 | 58 | 146 | 167 | ||||||
Other operating expenses, net (1) | 15.7 | 107.5 | 15 | 10 | 60 | 40 | ||||||
Other income, net (1) | (77.3) | (112.7) | (3) | (3) | (10) | (10) | ||||||
Loss on extinguishment of debt (1) | — | 2.3 | — | — | — | — | ||||||
Gain on sale of business (1) | — | (88.2) | — | — | — | — | ||||||
Impairment charges (1) | — | 3.0 | — | — | — | — | ||||||
Adjusted EBITDA | $ 207.1 | $ 797.7 | $ 260 | $ 280 | $ 860 | $ 890 | ||||||
(1) | Adjusted EBITDA guidance excludes from forecasted net income the impact of gains and losses of foreign currency and on divestitures, refinancing costs, potential impairments, discrete tax items and other unusual or nonrecurring items that might materially impact reported GAAP net income. We have not provided a further reconciliation of Adjusted EBITDA to GAAP net income as such reconciliation is not available without unreasonable efforts because the additional components in deriving Adjusted EBITDA are evaluated on an ongoing basis, can be highly variable and cannot reasonably be predicted. In addition, forecasted net income presented within this reconciliation is provided for informational purposes only and should not be viewed as guidance, as reported GAAP net income may differ materially from forecasted net income presented herein due to the impact of the items of the type identified above. |
Schedule H | ||||||
Univar Solutions Inc. | ||||||
Reconciliation of GAAP Cash Flow from Operations to Net Free Cash Flow | ||||||
(Unaudited) | ||||||
Year ended | Guidance Full Year 2022 | |||||
(in millions) | Low | High | ||||
Net cash provided by operating activities(1) | $ 290.3 | $ 565 | $ 580 | |||
Capital expenditures(1)(2) | (110.9) | (135) | (135) | |||
Net free cash flow | $ 179.4 | $ 430 | $ 445 | |||
Net cash provided (used) by investing activities(1) | $ 23.6 | $ (135) | $ (135) | |||
Net cash used by financing activities(1)(3) | $ (424.6) | $ (30) | $ (30) | |||
(1) | The forecasted net cash provided by operating and investing activities and used by financing activities presented within this reconciliation excludes certain unusual or infrequent items, such as refinancing costs, potential impairments, discrete tax items and other unusual or nonrecurring items, impacting GAAP financial metrics. While the Company expects that these unusual or infrequent items may occur in future periods, it is not possible to estimate the amount or significance of these unusual or infrequent items without unreasonable efforts because these items are evaluated on an ongoing basis, can be highly variable and cannot reasonably be predicted. As such, we have included above the impact of only those items about which we are aware, can be reasonable predicted and are reasonably likely to occur during the guidance period covered. These financial measures are included within this reconciliation for informational purposes only and should not be viewed as guidance, as reported GAAP measures may differ materially from such forecasted amounts due to the impact of the items of the type identified above. |
(2) | Excludes additions from finance leases. |
(3) | Excludes anticipated share repurchases in FY2022. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/univar-solutions-reports-strong-2021-fourth-quarter-and-full-year-financial-results-issues-guidance-for-2022-301490162.html
SOURCE Univar Solutions Inc.
FAQ
What were Univar Solutions' Q4 2021 financial results?
What is Univar Solutions' outlook for 2022?
How did Univar Solutions perform in fiscal year 2021?
What were the major contributors to Univar Solutions' revenue growth in Q4 2021?
