Univar Solutions Reports Strong 2021 Second Quarter Financial Results and Raises Guidance for Full Year 2021
Univar Solutions (NYSE: UNVR) reported second-quarter 2021 results showing a significant increase in net income to $153.2 million from $1.8 million year-over-year. Adjusted earnings per diluted share rose to $0.57, up from $0.33, with Adjusted EBITDA of $197.5 million, a 21.0% increase. Total consolidated net sales reached $2.4 billion, marking a 19.2% growth. Despite a decrease in net cash provided by operating activities to $83.7 million, the outlook for Adjusted EBITDA guidance for the full year has been raised to between $705 million and $725 million.
- Net income increased to $153.2 million from $1.8 million, reflecting strong operational performance.
- Adjusted earnings per diluted share rose to $0.57 from $0.33, indicating improved profitability.
- Adjusted EBITDA grew by $34.3 million, or 21.0%, reaching $197.5 million.
- Total consolidated net sales increased by 19.2% to $2.4 billion, driven by higher industrial demand.
- Full year Adjusted EBITDA guidance raised to $705 million-$725 million, up from $635.8 million.
- Net cash provided by operating activities decreased to $83.7 million from $151.7 million, indicating higher working capital use.
DOWNERS GROVE, Ill., Aug. 2, 2021 /PRNewswire/ -- Univar Solutions Inc. (NYSE: UNVR) ("Univar Solutions" or "the Company"), a global chemical and ingredient distributor and provider of value-added services, announced today its financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Highlights
- Net income of
$153.2 million compared to$1.8 million in the prior year second quarter. Adjusted net income(1) of$97.4 million compared to$55.7 million in the prior year second quarter. - Earnings per diluted share of
$0.90 compared to$0.01 per diluted share in the prior year second quarter. Adjusted earnings per diluted share(1) of$0.57 in the quarter increased from$0.33 in the prior year second quarter. - Adjusted EBITDA(1) of
$197.5 million compared to$163.2 million in the prior year second quarter. Adjusted EBITDA margin(1) of 8.2 percent compared to 8.1 percent in the prior year second quarter. - Net cash provided by operating activities decreased to
$83.7 million from$151.7 million in the prior year second quarter. - Liquidity as of June 30, 2021 was
$882.3 million , inclusive of$207.0 million of cash-on-hand and additional availability under committed, asset-based credit facilities. - Full year outlook for Adjusted EBITDA(1) is raised and expected to be in a range of
$705 million to$725 million .
"We are pleased with another strong quarter of results based on the successful execution of our growing together strategy, the advancement of our Streamline 2022 (S22) program, and market share growth," said David Jukes, president and chief executive officer. "In a period of strong customer demand and constrained supply, we believe our operating infrastructure and ability to identify trends, grow our supplier and customer relationships, as well as build on investments in both digital and our growing global specialty end market verticals, has us well-positioned to support our customer and supplier partners."
"As we enter the back half of 2021, we expect more normalized margins and continued market share growth as we keep the customer at the center of all we do. Given these factors, we expect third quarter Adjusted EBITDA to be in a range of
(1) | Non-GAAP financial measure. See "Use of non-GAAP Financial Measures" for further discussion and related schedules attached hereto for reconciliations to the most directly comparable GAAP financial measure and related explanations of ratios or percentages, as applicable. |
Company Performance
Univar Solutions operating performance results are described below and, unless otherwise indicated, are a comparison of second quarter 2021 results with second quarter 2020 results.
(Unaudited) | |||||||||||||||||
Three months ended June 30, | % change excl. | ||||||||||||||||
(in millions) | 2021 | 2020 | $ change | % change | currency(1) | ||||||||||||
Segment External Sales(2) | |||||||||||||||||
USA | $ | 1,500.2 | $ | 1,169.4 | $ | 330.8 | 28.3 | % | 28.3 | % | |||||||
EMEA | 504.0 | 409.6 | 94.4 | 23.0 | % | 14.3 | % | ||||||||||
Canada | 238.6 | 331.5 | (92.9) | (28.0) | % | (36.1) | % | ||||||||||
LATAM | 151.3 | 98.7 | 52.6 | 53.3 | % | 41.1 | % | ||||||||||
Total Consolidated Net Sales | $ | 2,394.1 | $ | 2,009.2 | $ | 384.9 | 19.2 | % | 15.4 | % | |||||||
Gross Profit (exclusive of depreciation)(3)(4) | |||||||||||||||||
USA | $ | 381.9 | $ | 302.6 | $ | 79.3 | 26.2 | % | 26.2 | % | |||||||
EMEA | 128.1 | 106.6 | 21.5 | 20.2 | % | 11.3 | % | ||||||||||
Canada | 58.9 | 55.6 | 3.3 | 5.9 | % | (6.1) | % | ||||||||||
LATAM | 33.6 | 24.3 | 9.3 | 38.3 | % | 26.7 | % | ||||||||||
Total Consolidated Gross Profit (exclusive of depreciation)(3) | $ | 602.5 | $ | 489.1 | $ | 113.4 | 23.2 | % | 19.3 | % | |||||||
Total Consolidated Net Income | $ | 153.2 | $ | 1.8 | $ | 151.4 | N/M | N/M | |||||||||
Adjusted EBITDA(3) | |||||||||||||||||
USA | $ | 125.6 | $ | 95.2 | $ | 30.4 | 31.9 | % | 31.9 | % | |||||||
EMEA | 47.8 | 39.7 | 8.1 | 20.4 | % | 11.1 | % | ||||||||||
Canada | 25.0 | 25.2 | (0.2) | (0.8) | % | (12.7) | % | ||||||||||
LATAM | 13.3 | 11.0 | 2.3 | 20.9 | % | 10.0 | % | ||||||||||
Other(5) | (14.2) | (7.9) | (6.3) | (79.7) | % | (79.7) | % | ||||||||||
Total Consolidated Adjusted EBITDA(3) | $ | 197.5 | $ | 163.2 | $ | 34.3 | 21.0 | % | 16.2 | % | |||||||
(1) | Represents percentage change for the comparative periods using a constant currency. See "Use of non-GAAP Financial Measures" for further discussion. |
(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 further discussion 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 decreased to
The Company's leverage ratio(1) at June 30, 2021 was 3.2x compared to 3.6x in the prior year second quarter.
(1) | Non-GAAP financial measure. See "Use of non-GAAP Financial Measures" for further discussion and related schedules attached hereto for reconciliations to the most directly comparable GAAP financial measure and related explanations of ratios or percentages, as applicable. |
(2) | Essential end markets include markets that provide products and services that are essential for maintaining clean drinking water, waste water treatment, home, industrial and health care facility sanitization, and that are used in the manufacturing of food and pharmaceuticals. |
Segment Results
USA:
- USA external sales increased 28.3 percent during the quarter primarily due to higher industrial end market demand and chemical price inflation.
- Gross profit (exclusive of depreciation) was higher by 26.2 percent. Gross margin decreased 40 basis points to 25.5 percent, driven by unfavorable product mix.
- Adjusted EBITDA(1) increased 31.9 percent to
$125.6 million driven primarily by higher industrial end market demand, chemical price inflation, and Nexeo net synergies, partially offset by higher WS&A. The increase in WS&A was primarily due to higher variable compensation and other operating costs. Adjusted EBITDA margin(1) increased by 30 basis points to 8.4 percent primarily due to operating leverage and the realization of Nexeo net synergies.
EMEA:
- EMEA external sales increased 23.0 percent, or 14.3 percent on a constant currency basis(1) primarily due to chemical price inflation and higher industrial end market demand, and partially offset by the effects of the Distrupol divestiture.
- Gross profit (exclusive of depreciation) increased 20.2 percent, or 11.3 percent on a constant currency basis(1), and gross margin decreased 60 basis points to 25.4 percent driven by unfavorable changes in pricing from certain essential end markets(2) as compared to the prior year.
- Adjusted EBITDA(1) increased 20.4 percent to
$47.8 million on a reported basis, or 11.1 percent on a constant currency basis(1), compared to the prior year quarter. This increase was primarily driven by chemical price inflation as well as higher industrial and consumer solutions end market demand, partially offset by the Distrupol divestiture, anticipated declines in pharmaceutical finished goods, and higher WS&A, primarily due to higher variable compensation and other operating costs. Adjusted EBITDA margin(1) decreased 20 basis points to 9.5 percent primarily due to lower gross margins.
(1) | Non-GAAP financial measure. See "Use of non-GAAP Financial Measures" for further discussion and related schedules attached hereto for reconciliations to the most directly comparable GAAP financial measure and related explanations of ratios or percentages, as applicable. |
(2) | Essential end markets include markets that provide products and services that are essential for maintaining clean drinking water, waste water treatment, home, industrial and health care facility sanitization, and that are used in the manufacturing of food and pharmaceuticals. |
CANADA:
- Canada external sales decreased by 28.0 percent, or 36.1 percent on a constant currency basis(1), primarily due to the effects of the Canadian Agriculture wholesale distribution exit and Canadian Agriculture services divestiture.
- Gross profit (exclusive of depreciation) increased by 5.9 percent, or decreased by 6.1 percent on a constant currency basis(1), and gross margin increased 790 basis points to 24.7 percent, driven by the exit from the Canadian Agriculture wholesale distribution business and favorable product mix.
- Adjusted EBITDA(1) decreased 0.8 percent to
$25.0 million on a reported basis, or 12.7 percent on a constant currency basis(1) compared to the prior year. The decrease in Adjusted EBITDA(1) was primarily due to the effects of the Canadian Agriculture wholesale distribution exit and Canadian Agriculture services divestiture, partially offset by chemical price inflation and higher industrial demand. Adjusted EBITDA margin(1) increased by 290 basis points to 10.5 percent, primarily due to higher gross margins.
LATAM:
- LATAM external sales increased by 53.3 percent, or 41.1 percent on a constant currency basis(1), largely due to higher demand for products in industrial solutions as well as chemical price inflation.
- Gross profit (exclusive of depreciation) increased by 38.3 percent, or 26.7 percent on a constant currency basis(1) and gross margin decreased 240 basis points to 22.2 percent, primarily driven by unfavorable changes in pricing from certain essential end markets(2) as compared to the prior year.
- Adjusted EBITDA(1) increased 20.9 percent to
$13.3 million on a reported basis, or 10.0 percent on a constant currency basis(1). Adjusted EBITDA(1) increased primarily due to higher demand for products in industrial solutions and chemical price inflation. Adjusted EBITDA margin(1) decreased 230 basis points to 8.8 percent, primarily due to lower gross margins.
(1) | Non-GAAP financial measure. See "Use of non-GAAP Financial Measures" for further discussion and related schedules attached hereto for reconciliations to the most directly comparable GAAP financial measure and related explanations of ratios or percentages, as applicable. |
(2) | Essential end markets include markets that provide products and services that are essential for maintaining clean drinking water, waste water treatment, home, industrial and health care facility sanitization, and that are used in the manufacturing of food and pharmaceuticals. |
Nexeo integration & Streamline 2022 (S22) Update
The Company continues to actively manage its expense base in an effort to maintain financial strength while continuing to serve the needs of its suppliers and customers. The Company expects to achieve the targeted
The Company made significant progress in the second quarter on its previously announced S22 Program, which is designed to improve operational agility, drive faster sales growth, particularly in North America, and maximize net free cash flow conversion. Under the S22 Program, the Company is also focused on improving Adjusted EBITDA margins(1) to nine percent by the end of 2022 and expects to reduce leverage to 2.7x or lower by the end of 2021.
Outlook
The Company expects Adjusted EBITDA(1) to be between approximately
The Company is forecasting 2021 year-end liquidity to be greater than
Univar Solutions to Host Webcast on August 3, 2021 at 9:00 a.m. ET
The Company will host a webcast with investors to discuss 2021 second quarter results at 9:00 a.m. ET on August 3, 2021, 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 further discussion and related schedules attached hereto for reconciliations to the most directly comparable GAAP financial measure and related explanations of ratios or percentages, as applicable. |
(2) | Essential end markets include markets that provide products and services that are essential for maintaining clean drinking water, waste water treatment, home, industrial and health care facility sanitization, and that are used in the manufacturing of food and pharmaceuticals. |
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 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.
Adjusted EBITDA, Adjusted EBITDA margin, gross profit (exclusive of depreciation), adjusted gross profit (exclusive of depreciation), gross margin, Adjusted net income, Adjusted earnings per diluted share, leverage ratio, net free cash flow and constant currency are not measures 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 specialty chemical and ingredient distributor representing a premier portfolio from the world's leading producers. With the industry's largest private transportation fleet and North American sales force, unparalleled logistics know-how, deep market and regulatory knowledge, world-class 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. Univar Solutions is committed to helping customers and suppliers innovate and grow together. Learn more at www.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 and potential recoveries the sustained geographic spread of the COVID-19 pandemic; the duration and severity of the COVID-19 pandemic; current and new actions that may be taken by governmental authorities to address or otherwise mitigate the impact of the COVID-19 pandemic; the potential negative impacts of COVID-19 on the global economy and our employees, customers, vendors and suppliers; and the overall impact of the COVID-19 pandemic on 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; 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; potential business disruptions and security breaches, including cybersecurity incidents; an inability to generate sufficient working capital; increases in transportation and fuel costs and changes in our relationship with third party providers; accidents, safety failures, environmental damage, product quality issues; delivery failures or potential 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; risks associated with integration of legacy business systems; possible impairment of goodwill and intangible assets; an inability to integrate the business and systems of the 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; and the other factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, 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. | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in millions, except per share data) | 2021 | 2020 | 2021 | 2020 | |||||||||||
Net sales | $ | 2,394.1 | $ | 2,009.2 | $ | 4,549.5 | $ | 4,220.4 | |||||||
Cost of goods sold (exclusive of depreciation) | 1,791.6 | 1,520.1 | 3,404.6 | 3,198.7 | |||||||||||
Operating expenses: | |||||||||||||||
Outbound freight and handling | $ | 97.8 | $ | 80.7 | $ | 189.2 | $ | 172.2 | |||||||
Warehousing, selling and administrative | 307.2 | 245.5 | 576.0 | 525.0 | |||||||||||
Other operating expenses, net(1) | 29.9 | 24.8 | 74.1 | 55.2 | |||||||||||
Depreciation | 37.3 | 40.4 | 81.1 | 82.1 | |||||||||||
Amortization | 13.2 | 14.8 | 26.3 | 30.6 | |||||||||||
Impairment charges | 2.1 | 16.9 | 2.1 | 16.9 | |||||||||||
Total operating expenses | $ | 487.5 | $ | 423.1 | $ | 948.8 | $ | 882.0 | |||||||
Operating income | $ | 115.0 | $ | 66.0 | $ | 196.1 | $ | 139.7 | |||||||
Other income (expense): | |||||||||||||||
Interest income | $ | 0.7 | $ | 0.2 | $ | 1.1 | $ | 1.2 | |||||||
Interest expense | (26.4) | (30.1) | (53.4) | (59.2) | |||||||||||
Gain (loss) on sale of business | 87.6 | — | 88.2 | (8.6) | |||||||||||
Loss on extinguishment of debt | (2.0) | — | (2.2) | (1.8) | |||||||||||
Other income (expense), net(1) | 5.3 | (22.7) | 34.2 | (2.3) | |||||||||||
Total other income (expense) | $ | 65.2 | $ | (52.6) | $ | 67.9 | $ | (70.7) | |||||||
Income before income taxes | $ | 180.2 | $ | 13.4 | $ | 264.0 | $ | 69.0 | |||||||
Income tax expense | 27.0 | 11.6 | 44.6 | 11.3 | |||||||||||
Net income | $ | 153.2 | $ | 1.8 | $ | 219.4 | $ | 57.7 | |||||||
Income per common share: | |||||||||||||||
Basic income per common share | $ | 0.90 | $ | 0.01 | $ | 1.29 | $ | 0.34 | |||||||
Diluted income per common share | $ | 0.90 | $ | 0.01 | $ | 1.29 | $ | 0.34 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 169.9 | 168.9 | 169.6 | 168.8 | |||||||||||
Diluted | 170.9 | 169.6 | 170.4 | 169.6 | |||||||||||
(1) | For the three and six months ended June 30, 2020, 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. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
(in millions, except per share data) | June 30, 2021 | December 31, 2020 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 207.0 | $ | 386.6 | |||
Trade accounts receivable, net of allowance for doubtful accounts of | 1,532.8 | 1,239.8 | |||||
Inventories | 786.1 | 674.0 | |||||
Prepaid expenses and other current assets | 175.4 | 151.5 | |||||
Total current assets | $ | 2,701.3 | $ | 2,451.9 | |||
Property, plant and equipment, net | $ | 1,028.4 | $ | 1,065.7 | |||
Goodwill | 2,281.0 | 2,270.4 | |||||
Intangible assets, net | 227.5 | 251.9 | |||||
Deferred tax assets | 29.2 | 29.6 | |||||
Other assets | 280.8 | 285.5 | |||||
Total assets | $ | 6,548.2 | $ | 6,355.0 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Short-term financing | $ | 8.4 | $ | 2.1 | |||
Trade accounts payable | 953.1 | 765.1 | |||||
Current portion of long-term debt | 129.1 | 163.5 | |||||
Accrued compensation | 131.2 | 102.2 | |||||
Other accrued expenses | 344.8 | 374.1 | |||||
Total current liabilities | $ | 1,566.6 | $ | 1,407.0 | |||
Long-term debt | $ | 2,215.1 | $ | 2,477.1 | |||
Pension and other postretirement benefit liabilities | 295.2 | 308.8 | |||||
Deferred tax liabilities | 38.8 | 39.3 | |||||
Other long-term liabilities | 333.9 | 330.5 | |||||
Total liabilities | $ | 4,449.6 | $ | 4,562.7 | |||
Stockholders' equity: | |||||||
Preferred stock, 200.0 million shares authorized at | $ | — | $ | — | |||
Common stock, 2.0 billion shares authorized at | 1.7 | 1.7 | |||||
Additional paid-in capital | 3,025.8 | 2,983.3 | |||||
Accumulated deficit | (586.2) | (805.6) | |||||
Accumulated other comprehensive loss | (342.7) | (387.1) | |||||
Total stockholders' equity | $ | 2,098.6 | $ | 1,792.3 | |||
Total liabilities and stockholders' equity | $ | 6,548.2 | $ | 6,355.0 | |||
Univar Solutions Inc. | |||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||
Operating activities: | |||||||||||||||
Net income | $ | 153.2 | $ | 1.8 | $ | 219.4 | $ | 57.7 | |||||||
Adjustments to reconcile net income to net cash used by operating activities: | |||||||||||||||
Depreciation and amortization | 50.5 | 55.2 | 107.4 | 112.7 | |||||||||||
Impairment charges | 2.1 | 16.9 | 2.1 | 16.9 | |||||||||||
Amortization of deferred financing fees and debt discount | 1.6 | 1.7 | 3.4 | 3.3 | |||||||||||
Amortization of pension (credits) cost from accumulated other comprehensive loss | (0.2) | 0.1 | (3.1) | 0.1 | |||||||||||
(Gain) loss on sale of business | (87.6) | — | (88.2) | 8.6 | |||||||||||
Gain on sale of property, plant and equipment | (2.0) | (2.2) | (3.1) | (7.5) | |||||||||||
Loss on extinguishment of debt | 2.0 | — | 2.2 | 1.8 | |||||||||||
Deferred income taxes | (4.0) | (1.0) | (2.0) | (4.5) | |||||||||||
Stock-based compensation expense | 3.3 | 2.6 | 9.2 | 8.3 | |||||||||||
Fair value adjustment for warrants(1) | (8.2) | 18.8 | (33.8) | (7.5) | |||||||||||
Other | 1.1 | 1.8 | 2.3 | 1.8 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Trade accounts receivable, net | (100.1) | 148.3 | (321.0) | (111.1) | |||||||||||
Inventories | (51.8) | 72.5 | (122.6) | 22.0 | |||||||||||
Prepaid expenses and other current assets | (8.4) | 33.7 | (42.7) | (24.6) | |||||||||||
Trade accounts payable | 69.3 | (135.0) | 207.4 | 30.3 | |||||||||||
Pensions and other postretirement benefit liabilities | (8.2) | (2.8) | (16.0) | (8.1) | |||||||||||
Other, net(1) | 71.1 | (60.7) | 70.5 | (26.7) | |||||||||||
Net cash provided (used) by operating activities | $ | 83.7 | $ | 151.7 | $ | (8.6) | $ | 73.5 | |||||||
Investing activities: | |||||||||||||||
Purchases of property, plant and equipment | $ | (22.6) | $ | (20.9) | $ | (38.9) | $ | (45.0) | |||||||
Proceeds from sale of property, plant, and equipment | 3.2 | 5.4 | 8.5 | 13.0 | |||||||||||
Proceeds (payments) from sale of business | 136.7 | — | 136.3 | (8.2) | |||||||||||
Other | (1.5) | (0.8) | (2.3) | (7.0) | |||||||||||
Net cash provided (used) by investing activities | $ | 115.8 | $ | (16.3) | $ | 103.6 | $ | (47.2) | |||||||
Financing activities: | |||||||||||||||
Proceeds from issuance of long-term debt, net | $ | 995.0 | $ | — | $ | 995.0 | $ | — | |||||||
Payments on long-term debt and finance lease obligations | (1,273.8) | (8.7) | (1,330.0) | (189.3) | |||||||||||
Net proceeds under revolving credit facilities | 106.5 | 38.5 | 25.5 | 384.4 | |||||||||||
Short-term financing, net | 3.5 | (2.8) | 7.6 | 3.5 | |||||||||||
Financing fees paid | (1.0) | — | (1.0) | — | |||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (0.4) | (0.1) | (2.5) | (1.4) | |||||||||||
Stock option exercises | 6.3 | — | 7.8 | 0.7 | |||||||||||
Proceeds from the exercise of warrants | 27.1 | — | 27.1 | — | |||||||||||
Other | 0.8 | 0.7 | 0.8 | 0.7 | |||||||||||
Net cash (used) provided by financing activities | $ | (136.0) | $ | 27.6 | $ | (269.7) | $ | 198.6 | |||||||
Effect of exchange rate changes on cash and cash equivalents | $ | 2.1 | $ | 4.7 | $ | (4.9) | $ | (7.8) | |||||||
Net increase (decrease) in cash and cash equivalents | 65.6 | 167.7 | (179.6) | 217.1 | |||||||||||
Cash and cash equivalents at beginning of period | 141.4 | 379.7 | 386.6 | 330.3 | |||||||||||
Cash and cash equivalents at end of period | $ | 207.0 | $ | 547.4 | $ | 207.0 | $ | 547.4 | |||||||
(1) | For the three and six months ended June 30, 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
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 and six months ended June 30, 2021.
Univar Solutions Inc. | |||||||||||||||||||||||||||||||
Reconciliation of GAAP Net Income to Adjusted Net Income and | |||||||||||||||||||||||||||||||
Diluted Earnings per Share to Adjusted Diluted Earnings per Share | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
(in millions, except per share data) | Amount | per share (2) | Amount | per share (2) | Amount | per share (2) | Amount | per share (2) | |||||||||||||||||||||||
Net income and diluted EPS | $ | 153.2 | $ | 0.90 | $ | 1.8 | $ | 0.01 | $ | 219.4 | $ | 1.29 | $ | 57.7 | $ | 0.34 | |||||||||||||||
Amortization(1) | 13.2 | 0.08 | 14.8 | 0.09 | 26.3 | 0.16 | 30.6 | 0.18 | |||||||||||||||||||||||
Exchange loss(3) | 3.5 | 0.02 | 6.0 | 0.04 | 5.4 | 0.03 | 6.6 | 0.04 | |||||||||||||||||||||||
Derivative loss (gain)(3) | 0.4 | — | (0.9) | (0.01) | 0.8 | — | 5.9 | 0.03 | |||||||||||||||||||||||
(Gain) loss on sale of business | (87.6) | (0.52) | — | — | (88.2) | (0.52) | 8.6 | 0.05 | |||||||||||||||||||||||
Nexeo employee severance and other facility closure costs(1)(4) | 2.0 | 0.01 | 1.0 | — | 2.9 | 0.02 | 3.8 | 0.02 | |||||||||||||||||||||||
Shared service employee severance and other facility closure costs(1)(4) | (0.1) | — | 1.0 | — | — | — | 1.9 | 0.01 | |||||||||||||||||||||||
Intangible asset impairment charges(1) | — | — | 12.8 | 0.09 | — | — | 12.8 | 0.09 | |||||||||||||||||||||||
Brazil VAT charge | — | — | 0.3 | — | — | — | 0.3 | — | |||||||||||||||||||||||
Loss on extinguishment of debt and debt refinancing costs(3) | 8.9 | 0.05 | — | — | 9.1 | 0.05 | 1.9 | 0.01 | |||||||||||||||||||||||
Nexeo acquisition and integration related expenses(1)(4) | 16.7 | 0.10 | 14.3 | 0.10 | 32.8 | 0.19 | 31.8 | 0.19 | |||||||||||||||||||||||
Fair value adjustment for warrants(3) | (8.2) | (0.05) | 18.8 | 0.11 | (33.8) | (0.20) | (7.5) | (0.04) | |||||||||||||||||||||||
Non-operating retirement benefits(1)(3) | (4.0) | (0.02) | (2.1) | (0.02) | (10.7) | (0.06) | (4.3) | (0.03) | |||||||||||||||||||||||
Multi-employer pension plan exit liability(3) | 12.8 | 0.07 | — | — | 31.2 | 0.18 | — | — | |||||||||||||||||||||||
Income tax benefit related to reconciling items(1)(5) | (15.0) | (0.08) | (7.7) | (0.05) | (26.3) | (0.15) | (21.8) | (0.13) | |||||||||||||||||||||||
Other discrete tax items(6) | 1.6 | 0.01 | (4.4) | (0.03) | 2.1 | 0.01 | (13.4) | (0.08) | |||||||||||||||||||||||
Adjusted net income and diluted EPS | $ | 97.4 | $ | 0.57 | $ | 55.7 | $ | 0.33 | $ | 171.0 | $ | 1.00 | $ | 114.9 | $ | 0.68 | |||||||||||||||
GAAP diluted common shares outstanding(2) | 171.1 | 169.6 | 170.6 | 169.6 | |||||||||||||||||||||||||||
(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 D 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 and other. |
(4) | For the three months ended June 30, 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 stock compensation expense in the current year and the tax law changes in the prior year. |
Schedule B
Univar Solutions Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | YTD Q2'20 | YTD Q2'21 | LTM(2) Q1'20 | LTM(2) Q2'20 | LTM(2) Q1'21 | LTM(2) Q2'21 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 16.3 | $ | 2.5 | $ | (55.1) | $ | 55.9 | $ | 1.8 | $ | 28.9 | $ | (33.7) | $ | 66.2 | $ | 153.2 | $ | 57.7 | $ | 219.4 | $ | 19.6 | $ | 5.1 | $ | 63.2 | $ | 214.6 | |||||||||||||||||||
Net loss from discontinued operations | 0.7 | — | — | — | — | — | — | — | — | — | — | 0.7 | — | — | — | ||||||||||||||||||||||||||||||||||
Depreciation | 39.7 | 41.6 | 40.5 | 41.7 | 40.4 | 41.6 | 39.2 | 43.8 | 37.3 | 82.1 | 81.1 | 163.5 | 164.2 | 165.0 | 161.9 | ||||||||||||||||||||||||||||||||||
Amortization | 18.6 | 12.1 | 14.6 | 15.8 | 14.8 | 14.7 | 14.7 | 13.1 | 13.2 | 30.6 | 26.3 | 61.1 | 57.3 | 57.3 | 55.7 | ||||||||||||||||||||||||||||||||||
Interest expense, net | 37.9 | 36.8 | 30.6 | 28.1 | 29.9 | 27.7 | 26.7 | 26.6 | 25.7 | 58.0 | 52.3 | 133.4 | 125.4 | 110.9 | 106.7 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 18.5 | 43.2 | 66.1 | (0.3) | 11.6 | 2.7 | (7.9) | 17.6 | 27.0 | 11.3 | 44.6 | 127.5 | 120.6 | 24.0 | 39.4 | ||||||||||||||||||||||||||||||||||
EBITDA | $ | 131.7 | $ | 136.2 | $ | 96.7 | $ | 141.2 | $ | 98.5 | $ | 115.6 | $ | 39.0 | $ | 167.3 | $ | 256.4 | $ | 239.7 | $ | 423.7 | $ | 505.8 | $ | 472.6 | $ | 420.4 | $ | 578.3 | |||||||||||||||||||
Other operating expenses, net(1)(3) | 62.0 | 34.4 | 25.6 | 30.4 | 24.8 | 20.3 | 13.9 | 44.2 | 29.9 | 55.2 | 74.1 | 152.4 | 115.2 | 103.2 | 108.3 | ||||||||||||||||||||||||||||||||||
Other expense (income), net(1)(3) | 7.4 | 1.3 | 67.1 | (20.4) | 22.7 | (1.3) | 58.2 | (28.9) | (5.3) | 2.3 | (34.2) | 55.4 | 70.7 | 50.7 | 22.7 | ||||||||||||||||||||||||||||||||||
Impairment charges | — | 7.0 | — | — | 16.9 | 20.7 | 2.6 | — | 2.1 | 16.9 | 2.1 | 7.0 | 23.9 | 40.2 | 25.4 | ||||||||||||||||||||||||||||||||||
(Gain) loss on sale of business | — | — | (41.4) | 8.6 | — | 9.3 | 32.7 | (0.6) | (87.6) | 8.6 | (88.2) | (32.8) | (32.8) | 41.4 | (46.2) | ||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 19.1 | 1.8 | — | — | — | 0.2 | 2.0 | 1.8 | 2.2 | 20.9 | 20.9 | 0.2 | 2.2 | ||||||||||||||||||||||||||||||||||
Brazil VAT (recovery) charge | — | — | (8.3) | — | 0.3 | — | — | — | — | 0.3 | — | (8.3) | (8.0) | 0.3 | — | ||||||||||||||||||||||||||||||||||
Inventory step-up adjustment | — | 5.3 | — | — | — | — | — | — | — | — | — | 5.3 | 5.3 | — | — | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 201.1 | $ | 184.2 | $ | 158.8 | $ | 161.6 | $ | 163.2 | $ | 164.6 | $ | 146.4 | $ | 182.2 | $ | 197.5 | $ | 324.8 | $ | 379.7 | $ | 705.7 | $ | 667.8 | $ | 656.4 | $ | 690.7 | |||||||||||||||||||
(1) | Refer to Schedule D for more information for the three and six months ended June 30, 2021 and 2020. |
(2) | Last Twelve Month (LTM) Adjusted EBITDA is a component used in the calculation of the Company's leverage ratio as of a particular period end. |
(3) | For periods prior to Q1'21, the fair value adjustment for warrants is included in "other expense (income), net," which was previously included in "other operating expenses, net," to conform to the current year presentation. |
Schedule C
Univar Solutions Inc. | |||||||||||||||||||||||
Gross Profit (exclusive of depreciation) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations(1) | Consolidated | ||||||||||||||||||
(in millions) | Three months ended June 30, 2021 | ||||||||||||||||||||||
External customers | $ | 1,500.2 | $ | 504.0 | $ | 238.6 | $ | 151.3 | $ | — | $ | 2,394.1 | |||||||||||
Inter-segment | 19.5 | 1.9 | 1.3 | — | (22.7) | — | |||||||||||||||||
Total net sales | $ | 1,519.7 | $ | 505.9 | $ | 239.9 | $ | 151.3 | $ | (22.7) | $ | 2,394.1 | |||||||||||
Cost of goods sold (exclusive of depreciation) | $ | 1,137.8 | $ | 377.8 | $ | 181.0 | $ | 117.7 | $ | (22.7) | $ | 1,791.6 | |||||||||||
Outbound freight and handling | 68.8 | 16.1 | 9.9 | 3.0 | — | 97.8 | |||||||||||||||||
Warehousing, selling and administrative | 187.5 | 64.2 | 24.0 | 17.3 | 14.2 | 307.2 | |||||||||||||||||
Adjusted EBITDA | $ | 125.6 | $ | 47.8 | $ | 25.0 | $ | 13.3 | $ | (14.2) | $ | 197.5 | |||||||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations(1) | Consolidated | ||||||||||||||||||
(in millions) | Three months ended June 30, 2021 | ||||||||||||||||||||||
Net sales | $ | 1,519.7 | $ | 505.9 | $ | 239.9 | $ | 151.3 | $ | (22.7) | $ | 2,394.1 | |||||||||||
Cost of goods sold (exclusive of depreciation) | 1,137.8 | 377.8 | 181.0 | 117.7 | (22.7) | 1,791.6 | |||||||||||||||||
Gross profit (exclusive of depreciation) | $ | 381.9 | $ | 128.1 | $ | 58.9 | $ | 33.6 | $ | — | $ | 602.5 | |||||||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations(1) | Consolidated | ||||||||||||||||||
(in millions) | Three months ended June 30, 2020 | ||||||||||||||||||||||
External customers | $ | 1,169.4 | $ | 409.6 | $ | 331.5 | $ | 98.7 | $ | — | $ | 2,009.2 | |||||||||||
Inter-segment | 23.0 | 0.9 | 0.7 | — | (24.6) | — | |||||||||||||||||
Total net sales | $ | 1,192.4 | $ | 410.5 | $ | 332.2 | $ | 98.7 | $ | (24.6) | $ | 2,009.2 | |||||||||||
Cost of goods sold (exclusive of depreciation) | $ | 889.8 | $ | 303.9 | $ | 276.6 | $ | 74.4 | $ | (24.6) | $ | 1,520.1 | |||||||||||
Outbound freight and handling | 55.7 | 13.4 | 9.4 | 2.2 | — | 80.7 | |||||||||||||||||
Warehousing, selling and administrative | 151.7 | 53.5 | 21.0 | 11.4 | 7.9 | 245.5 | |||||||||||||||||
Brazil VAT charge(2) | — | — | — | 0.3 | — | 0.3 | |||||||||||||||||
Adjusted EBITDA(2) | $ | 95.2 | $ | 39.7 | $ | 25.2 | $ | 11.0 | $ | (7.9) | $ | 163.2 | |||||||||||
USA | EMEA | Canada | LATAM | Other/ Eliminations(1) | Consolidated | ||||||||||||||||||
(in millions) | Three months ended June 30, 2020 | ||||||||||||||||||||||
Net sales | $ | 1,192.4 | $ | 410.5 | $ | 332.2 | $ | 98.7 | $ | (24.6) | $ | 2,009.2 | |||||||||||
Cost of goods sold (exclusive of depreciation) | 889.8 | 303.9 | 276.6 | 74.4 | (24.6) | 1,520.1 | |||||||||||||||||
Gross profit (exclusive of depreciation) | $ | 302.6 | $ | 106.6 | $ | 55.6 | $ | 24.3 | $ | — | $ | 489.1 | |||||||||||
Brazil VAT charge(2) | — | — | — | 0.4 | — | 0.4 | |||||||||||||||||
Adjusted gross profit (exclusive of depreciation)(2) | $ | 302.6 | $ | 106.6 | $ | 55.6 | $ | 24.7 | $ | — | $ | 489.5 | |||||||||||
(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 D
Univar Solutions Inc. | |||||||||||||||
Detail of Other operating expenses, net and | |||||||||||||||
Other income (expense), net | |||||||||||||||
(Unaudited) | |||||||||||||||
Other operating expenses, net | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||
Acquisition and integration related expenses | $ | 16.4 | $ | 14.3 | $ | 32.8 | $ | 31.8 | |||||||
Stock-based compensation expense | 3.3 | 2.6 | 9.2 | 8.3 | |||||||||||
Restructuring (credits) charges | (0.1) | 6.3 | 0.1 | 8.8 | |||||||||||
Other employee severance costs | 2.0 | 2.8 | 4.9 | 8.3 | |||||||||||
Other facility closure costs | 0.5 | 0.1 | 0.5 | 2.0 | |||||||||||
Multi-employer pension plan exit liability | 12.8 | — | 31.2 | — | |||||||||||
Gain on sale of property, plant and equipment | (2.0) | (2.2) | (3.1) | (7.5) | |||||||||||
Other | (3.0) | 0.9 | (1.5) | 3.5 | |||||||||||
Total other operating expenses, net | $ | 29.9 | $ | 24.8 | $ | 74.1 | $ | 55.2 | |||||||
Other income (expense), net | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||
Foreign currency transactions | $ | (3.5) | $ | (5.6) | $ | (5.3) | $ | (6.4) | |||||||
Foreign currency denominated loans revaluation | — | (0.4) | (0.1) | (0.2) | |||||||||||
Undesignated foreign currency derivative instruments | (0.1) | 2.1 | (1.8) | 0.1 | |||||||||||
Undesignated interest rate and cross currency swap contracts | (0.3) | (1.2) | 1.0 | (6.0) | |||||||||||
Non-operating retirement benefits | 4.0 | 2.1 | 10.7 | 4.3 | |||||||||||
Debt refinancing costs | (6.9) | — | (6.9) | (0.1) | |||||||||||
Fair value adjustment for warrants(1) | 8.2 | (18.8) | 33.8 | 7.5 | |||||||||||
Other | 3.9 | (0.9) | 2.8 | (1.5) | |||||||||||
Total other income (expense), net | $ | 5.3 | $ | (22.7) | $ | 34.2 | $ | (2.3) | |||||||
(1) | For the three and six months ended June 30, 2020, 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. |
Schedule E
Univar Solutions Inc. | |||||||||||||||
Reconciliation of GAAP Debt to Net Debt | |||||||||||||||
(Unaudited) | |||||||||||||||
June 30, | March 31, | ||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||
Total short-term and long-term debt | $ | 2,344.2 | $ | 2,929.1 | $ | 2,510.7 | $ | 2,887.7 | |||||||
Add: Short-term financing | 8.4 | 0.9 | 4.5 | 1.1 | |||||||||||
Less: Cash and cash equivalents | (207.0) | (547.4) | (141.4) | (379.7) | |||||||||||
Total net debt | $ | 2,145.6 | $ | 2,382.6 | $ | 2,373.8 | $ | 2,509.1 | |||||||
LTM Adjusted EBITDA(1)(2) | $ | 678.7 | $ | 654.8 | $ | 656.4 | $ | 685.7 | |||||||
Leverage ratio (Total net debt/LTM Adjusted EBITDA) | 3.2 | x | 3.6 | x | 3.6 | x | 3.7 | x | |||||||
(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 June 30, 2021, LTM Adjusted EBITDA excludes nine months of Adjusted EBITDA of |
(2) | Refer to Schedule B for more information on LTM Adjusted EBITDA before the adjustments discussed in the note above. |
Schedule F
Univar Solutions Inc. | |||||||||||||||||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA Guidance | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Year ended | Guidance | ||||||||||||||||||||||
December 31, | Q3 2021 | Full year 2021 | |||||||||||||||||||||
(in millions) | Q2 2021 | 2020 | Low | High | Low | High | |||||||||||||||||
Net income(1) | $ | 153.2 | $ | 52.9 | $ | 44 | $ | 68 | $ | 263 | $ | 315 | |||||||||||
Depreciation(1) | 37.3 | 162.9 | 42 | 38 | 165 | 155 | |||||||||||||||||
Amortization (1) | 13.2 | 60.0 | 14 | 13 | 55 | 50 | |||||||||||||||||
Interest expense, net(1) | 25.7 | 112.4 | 27 | 25 | 105 | 100 | |||||||||||||||||
Income tax expense(1) | 27.0 | 6.1 | 18 | 26 | 105 | 123 | |||||||||||||||||
Other operating expenses, net(1)(2) | 29.9 | 89.4 | 30 | 20 | 135 | 115 | |||||||||||||||||
Other (income) expense, net(1)(2) | (5.3) | 59.2 | — | (5) | (39) | (49) | |||||||||||||||||
Loss on extinguishment of debt(1) | 2.0 | 1.8 | — | — | 2 | 2 | |||||||||||||||||
(Gain) loss on sale of business(1) | (87.6) | 50.6 | — | — | (88) | (88) | |||||||||||||||||
Impairment charges(1) | 2.1 | 40.2 | — | — | 2 | 2 | |||||||||||||||||
Brazil VAT charge(1) | — | 0.3 | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | $ | 197.5 | $ | 635.8 | $ | 175 | $ | 185 | $ | 705 | $ | 725 | |||||||||||
(1) | Adjusted EBITDA 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 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 due to the impact of the items of the type identified above. |
(2) | For the year ended December 31, 2020, the fair value adjustment for warrants is included in "other (income) expense, net," which was previously included in "other operating expenses, net," to conform to the current year presentation. |
Schedule G
Univar Solutions Inc. | |||||||||||
Reconciliation of GAAP Cash Flow from Operations to Net Free Cash Flow | |||||||||||
(Unaudited) | |||||||||||
Year ended | Guidance | ||||||||||
December 31, | Full Year 2021 | ||||||||||
(in millions) | 2020 | Low | High | ||||||||
Net cash provided by operating activities(1) | $ | 226.9 | $ | 410 | $ | 420 | |||||
Capital expenditures(1)(2) | (111.3) | (130) | (120) | ||||||||
Net free cash flow | $ | 115.6 | $ | 280 | $ | 300 | |||||
Net cash (used) provided by investing activities(1) | $ | (41.3) | $ | 13 | $ | 23 | |||||
Net cash used by financing activities(1) | $ | (140.0) | $ | (450) | $ | (350) | |||||
(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. |
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SOURCE Univar Solutions Inc.
FAQ
What were Univar Solutions' earnings results for Q2 2021?
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