Barnes Reports Fourth Quarter and Full Year 2023 Financial Results
Results Reflect Execution of Portfolio Optimization and Focus on Long-term Profitable Growth Strategy
Comparisons are year-over-year unless noted otherwise
Fourth Quarter 2023:
-
Sales of
$416 million , up 33%; Organic Sales up 2% - Operating Margin of 7.1%; Adjusted Operating Margin of 11.5%, up 30 bps
- Adjusted EBITDA Margin of 18.8%, up 50 bps
-
GAAP EPS of
$0.14 ; Adjusted EPS of$0.41 , down 21% on acquisition-related interest
Full Year 2023:
-
Sales of
$1,451 million , up 15% ; Organic Sales up 5% - Operating Margin of 6.1%; Adjusted Operating Margin of 11.5%, down 10 bps
- Adjusted EBITDA Margin of 18.6%, up 20 bps
-
GAAP EPS of
$0.31 ; Adjusted EPS of$1.65 , down 17% on acquisition-related interest
2024 Outlook:
- Sales Growth of 12% to 16%; Organic Sales Growth of 4% to 8%
- Adjusted EBITDA Margin of 20% to 22%
-
GAAP EPS of
$0.94 to$1.19 ; Adjusted EPS of$1.55 to$1.80
Financial Disclosure Update
-
The Company is introducing Adjusted EBITDA metrics to its reporting and outlook, which management believes are useful measures to evaluate the operating performance and cash generation of the overall business and segments following the
MB Aerospace acquisition(1)
"Barnes has made meaningful progress executing our business transformation and long-term profitable growth strategy. We delivered full year organic sales growth in our Aerospace business, and the acquisition of
Fourth Quarter 2023 Highlights
Comparisons are year-over-year unless noted otherwise
Sales of
Adjusted operating income of
Interest expense was
The Company’s annual effective tax rate was 52% compared with 65% last year. During the quarter, the Company completed an intercompany transaction between related entities in several tax jurisdictions which, based on the tax law in those jurisdictions, provided a favorable tax benefit.
Net income was
Full Year 2023 Highlights
Comparisons are year-over-year unless noted otherwise
Sales of
Adjusted operating profit of
Interest expense was
Other Income was
The Company’s effective tax rate was 52% compared with 65% last year. The 2023 effective tax rate reflects the non-deductibility of a portion of our interest expense, transaction costs associated with the
Net income was
Full year cash provided by operating activities was
Segment Performance
Comparisons are year-over-year unless noted otherwise
Aerospace
Fourth quarter sales were
Full year 2023 sales were
Aerospace OEM backlog ended the year at
Industrial
Fourth quarter sales were
Full year 2023 sales were
Balance Sheet and Liquidity
As of
“In 2022, we set a strategic course to reposition Barnes for long-term value creation and we made considerable progress during 2023. For 2024, we stay focused on profitable growth and disciplined cost management to drive margin expansion and cash flow, which will support our commitment to reduce debt,” said
2024 Full Year Outlook
The Company is providing full year 2024 guidance as follows:
|
|
2024 Guidance |
Organic sales growth |
|
4% to 8% |
Adjusted operating margin |
|
12% to 14% |
Adjusted EBITDA margin |
|
20% to 22% |
Adjusted earnings per share |
|
|
Capital expenditures |
|
|
Free cash flow |
|
|
Adjusted effective tax rate |
|
30% to 32% |
The Company’s 2024 Adjusted EPS guidance excludes
The Company’s outlook assumes that the announced divestiture of the Associated Spring™ and Hänggi™ businesses closes at the end of the first quarter (Link). Accordingly, the outlook includes three months of financial performance forecasted for these businesses.
Conference Call Information
Barnes will conduct a conference call with investors to discuss the fourth quarter and full year 2023 results at
The conference is also available by direct dial at (888) 510-2379 in the
In addition, the call will be recorded and available for playback from
Notes:
(1) While Barnes reports financial results in accordance with
(2) Organic sales growth represents the total reported sales increase within the Company’s ongoing business less the impact of foreign currency translation and acquisition and divestitures completed in the preceding twelve months.
About Barnes
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future operating and financial performance and financial condition, and often contain words such as "anticipate," "believe," "expect," "plan," "estimate," "project," "continue," "will," "should," "may," and similar terms. These forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, among others: the Company’s ability to manage economic, business and geopolitical conditions, including rising interest rates, global price inflation and shortages impacting the availability of materials; the duration and severity of unforeseen events such as an epidemic or a pandemic, including their impacts across our business on demand, supply chains, operations and liquidity; failure to successfully negotiate collective bargaining agreements or potential strikes, work stoppages or other similar events; changes in market demand for our products and services; rapid technological and market change; the ability to protect and avoid infringing upon intellectual property rights; challenges associated with the introduction or development of new products or transfer of work; higher risks in global operations and markets; the impact of intense competition; the physical and operational risks from natural disasters, severe weather events, and climate change which may limit accessibility to sufficient water resources, outbreaks of contagious diseases and other adverse public health developments; acts of war, terrorism and other international conflicts; the failure to achieve anticipated cost savings and benefits associated with workforce reductions and restructuring actions; currency fluctuations and foreign currency exposure; impacts from goodwill impairment and related charges; our dependence upon revenues and earnings from a small number of significant customers; a major loss of customers; inability to realize expected sales or profits from existing backlog due to a range of factors, including changes in customer sourcing decisions, material changes, production schedules and volumes of specific programs; the impact of government budget and funding decisions; our ability to successfully integrate and achieve anticipated synergies associated with recently announced and future acquisitions, including the acquisition of
|
|||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended |
Twelve months ended |
||||||||||||||||||||
2023 |
2022 |
% Change |
2023 |
2022 |
% Change | ||||||||||||||||
Net sales |
$ |
415,542 |
|
$ |
313,473 |
|
32.6 |
|
$ |
1,450,871 |
|
$ |
1,261,868 |
|
15.0 |
|
|||||
Cost of sales |
|
304,426 |
|
|
211,402 |
|
44.0 |
|
|
1,008,786 |
|
|
839,996 |
|
20.1 |
|
|||||
Selling and administrative expenses |
|
81,405 |
|
|
77,914 |
|
4.5 |
|
|
353,093 |
|
|
296,559 |
|
19.1 |
|
|||||
|
|
- |
|
|
- |
|
NM |
|
|
- |
|
|
68,194 |
|
NM |
|
|||||
|
385,831 |
|
|
289,316 |
|
33.4 |
|
|
1,361,879 |
|
|
1,204,749 |
|
13.0 |
|
||||||
Operating income |
|
29,711 |
|
|
24,157 |
|
23.0 |
|
|
88,992 |
|
|
57,119 |
|
55.8 |
|
|||||
Operating margin |
|
7.1 |
% |
|
7.7 |
% |
|
6.1 |
% |
|
4.5 |
% |
|||||||||
Interest expense |
|
23,559 |
|
|
4,375 |
|
438.5 |
|
|
58,171 |
|
|
14,624 |
|
297.8 |
|
|||||
Other expense (income), net |
|
(14 |
) |
|
660 |
|
(102.1 |
) |
|
(2,443 |
) |
|
4,310 |
|
(156.7 |
) |
|||||
Income before income taxes |
|
6,166 |
|
|
19,122 |
|
(67.8 |
) |
|
33,264 |
|
|
38,185 |
|
(12.9 |
) |
|||||
Income taxes |
|
(1,050 |
) |
|
3,553 |
|
NM |
|
|
17,268 |
|
|
24,706 |
|
(30.1 |
) |
|||||
Net income |
$ |
7,216 |
|
$ |
15,569 |
|
(53.7 |
) |
$ |
15,996 |
|
$ |
13,479 |
|
18.7 |
|
|||||
Common dividends |
$ |
8,109 |
|
$ |
8,094 |
|
0.2 |
|
$ |
32,412 |
|
$ |
32,376 |
|
0.1 |
|
|||||
Per common share: | |||||||||||||||||||||
Net income: | |||||||||||||||||||||
Basic |
$ |
0.14 |
|
$ |
0.31 |
|
(54.8 |
) |
$ |
0.31 |
|
$ |
0.26 |
|
19.2 |
|
|||||
Diluted |
|
0.14 |
|
|
0.30 |
|
(53.3 |
) |
|
0.31 |
|
|
0.26 |
|
19.2 |
|
|||||
Dividends |
|
0.16 |
|
|
0.16 |
|
- |
|
|
0.64 |
|
|
0.64 |
|
- |
|
|||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic |
|
51,112,969 |
|
|
50,904,802 |
|
0.4 |
|
|
51,052,963 |
|
|
50,962,447 |
|
0.2 |
|
|||||
Diluted |
|
51,152,276 |
|
|
51,057,653 |
|
0.2 |
|
|
51,205,888 |
|
|
51,084,167 |
|
0.2 |
|
|||||
NM - Not meaningful |
|
||||||||||||||||||||||
OPERATIONS BY REPORTABLE BUSINESS SEGMENT | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three months ended |
Twelve months ended |
|||||||||||||||||||||
2023 |
2022 |
% Change |
2023 |
2022 |
% Change | |||||||||||||||||
Net sales | ||||||||||||||||||||||
Aerospace |
$ |
212,688 |
|
$ |
108,504 |
|
96.0 |
|
$ |
608,050 |
|
$ |
429,153 |
|
41.7 |
|
||||||
Industrial |
|
202,854 |
|
|
204,969 |
|
(1.0 |
) |
|
842,831 |
|
|
832,715 |
|
1.2 |
|
||||||
Intersegment sales |
|
- |
|
|
- |
|
|
(10 |
) |
|
- |
|
||||||||||
Total net sales |
$ |
415,542 |
|
$ |
313,473 |
|
32.6 |
|
$ |
1,450,871 |
|
$ |
1,261,868 |
|
15.0 |
|
||||||
Operating profit (loss) | ||||||||||||||||||||||
Aerospace |
$ |
14,000 |
|
$ |
18,012 |
|
(22.3 |
) |
$ |
52,953 |
|
$ |
76,174 |
|
(30.5 |
) |
||||||
Industrial |
|
15,711 |
|
|
6,145 |
|
155.7 |
|
|
36,039 |
|
|
(19,055 |
) |
NM |
|
||||||
Total operating profit |
$ |
29,711 |
|
$ |
24,157 |
|
23.0 |
|
$ |
88,992 |
|
$ |
57,119 |
|
55.8 |
|
||||||
Operating margin | Change | Change | ||||||||||||||||||||
Aerospace |
|
6.6 |
% |
|
16.6 |
% |
(1,000 |
) |
bps. |
|
8.7 |
% |
|
17.7 |
% |
(900 |
) |
bps. | ||||
Industrial |
|
7.7 |
% |
|
3.0 |
% |
470 |
|
bps. |
|
4.3 |
% |
|
-2.3 |
% |
660 |
|
bps. | ||||
Total operating margin |
|
7.1 |
% |
|
7.7 |
% |
(60 |
) |
bps. |
|
6.1 |
% |
|
4.5 |
% |
160 |
|
bps. | ||||
NM - Not meaningful |
|
|||||
CONSOLIDATED BALANCE SHEETS | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
|
|
||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents |
$ |
89,827 |
$ |
76,858 |
|
Accounts receivable |
|
353,923 |
|
291,883 |
|
Inventories |
|
365,221 |
|
283,402 |
|
Prepaid expenses and other current assets |
|
97,749 |
|
80,161 |
|
Total current assets |
|
906,720 |
|
732,304 |
|
Deferred income taxes |
|
10,295 |
|
18,028 |
|
Property, plant and equipment, net |
|
402,697 |
|
320,139 |
|
|
|
1,183,624 |
|
835,472 |
|
Other intangible assets, net |
|
706,471 |
|
442,492 |
|
Other assets |
|
98,207 |
|
65,295 |
|
Total assets |
$ |
3,308,014 |
$ |
2,413,730 |
|
Liabilities and Stockholders' Equity | |||||
Current liabilities | |||||
Notes and overdrafts payable |
$ |
16 |
$ |
8 |
|
Accounts payable |
|
164,264 |
|
145,060 |
|
Accrued liabilities |
|
221,462 |
|
158,568 |
|
Long-term debt - current |
|
10,868 |
|
1,437 |
|
Total current liabilities |
|
396,610 |
|
305,073 |
|
Long-term debt |
|
1,279,962 |
|
569,639 |
|
Accrued retirement benefits |
|
45,992 |
|
54,352 |
|
Deferred income taxes |
|
120,608 |
|
62,562 |
|
Long-term tax liability |
|
21,714 |
|
39,086 |
|
Other liabilities |
|
80,865 |
|
36,691 |
|
Total stockholders' equity |
|
1,362,263 |
|
1,346,327 |
|
Total liabilities and stockholders' equity |
$ |
3,308,014 |
$ |
2,413,730 |
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
Twelve months ended |
|||||||
2023 |
2022 |
||||||
Operating activities: | |||||||
Net income |
$ |
15,996 |
|
$ |
13,479 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization |
|
115,818 |
|
|
92,150 |
|
|
Loss on disposition of property, plant and equipment |
|
(1,197 |
) |
|
(821 |
) |
|
Stock compensation expense |
|
10,201 |
|
|
12,804 |
|
|
Non-cash goodwill impairment charge |
|
- |
|
|
68,194 |
|
|
Changes in assets and liabilities, net of the effects of acquisition: | |||||||
Accounts receivable |
|
(6,074 |
) |
|
(39,484 |
) |
|
Inventories |
|
622 |
|
|
(48,591 |
) |
|
Prepaid expenses and other current assets |
|
1,321 |
|
|
(9,257 |
) |
|
Accounts payable |
|
(5,493 |
) |
|
15,998 |
|
|
Accrued liabilities |
|
22,673 |
|
|
(25,659 |
) |
|
Deferred income taxes |
|
(16,058 |
) |
|
2,645 |
|
|
Long-term retirement benefits |
|
(17,256 |
) |
|
(1,474 |
) |
|
Long-term tax liability |
|
(13,029 |
) |
|
(6,948 |
) |
|
Other |
|
4,891 |
|
|
2,523 |
|
|
Net cash provided by operating activities |
|
112,415 |
|
|
75,559 |
|
|
Investing activities: | |||||||
Proceeds from disposition of property, plant and equipment |
|
7,921 |
|
|
1,825 |
|
|
Capital expenditures |
|
(55,739 |
) |
|
(35,082 |
) |
|
Business acquisitions, net of cash acquired |
|
(718,782 |
) |
|
- |
|
|
Other |
|
(921 |
) |
|
(2,729 |
) |
|
Net cash used by investing activities |
|
(767,521 |
) |
|
(35,986 |
) |
|
Financing activities: | |||||||
Net change in other borrowings |
|
(257 |
) |
|
(1,333 |
) |
|
Payments on long-term debt |
|
(314,167 |
) |
|
(108,415 |
) |
|
Proceeds from the issuance of long-term debt |
|
1,019,708 |
|
|
98,285 |
|
|
Payments of debt issuance costs |
|
(11,341 |
) |
|
- |
|
|
Proceeds from the issuance of common stock |
|
353 |
|
|
513 |
|
|
Common stock repurchases |
|
- |
|
|
(6,721 |
) |
|
Dividends paid |
|
(32,412 |
) |
|
(32,376 |
) |
|
Withholding taxes paid on stock issuances |
|
(908 |
) |
|
(1,144 |
) |
|
Other |
|
5,586 |
|
|
(13,638 |
) |
|
Net cash provided (used) by financing activities |
|
666,562 |
|
|
(64,829 |
) |
|
Effect of exchange rate changes on cash flows |
|
(545 |
) |
|
(5,525 |
) |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
10,911 |
|
|
(30,781 |
) |
|
Cash, cash equivalents and restricted cash at beginning of the year |
|
81,128 |
|
|
111,909 |
|
|
Cash, cash equivalents and restricted cash at end of year |
|
92,039 |
|
|
81,128 |
|
|
Less: Restricted cash, included in Prepaid expenses and other current assets |
|
(2,212 |
) |
|
(2,135 |
) |
|
Less: Restricted cash, included in Other assets |
|
- |
|
|
(2,135 |
) |
|
Cash and cash equivalents at end of year |
$ |
89,827 |
|
$ |
76,858 |
|
|
|||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
Twelve months ended |
|||||||
2023 |
2022 |
||||||
Free cash flow: | |||||||
Net cash provided by operating activities |
$ |
112,415 |
|
$ |
75,559 |
|
|
Capital expenditures |
|
(55,739 |
) |
|
(35,082 |
) |
|
Free cash flow(1) |
$ |
56,676 |
|
$ |
40,477 |
|
|
Free cash flow to net income cash conversion ratio (as adjusted): | |||||||
Net income |
$ |
15,996 |
|
$ |
13,479 |
|
|
|
|
- |
|
|
68,194 |
|
|
Net income (as adjusted)(2) |
$ |
15,996 |
|
$ |
81,673 |
|
|
Free cash flow to net income cash conversion ratio (as adjusted)(2) |
|
354 |
% |
|
50 |
% |
Notes: |
(1) The Company defines free cash flow as net cash provided by operating activities less capital expenditures. The Company believes that the free cash flow metric is useful to investors and management as a measure of cash generated by business operations that can be used to invest in future growth, pay dividends, repurchase stock and reduce debt. This metric can also be used to evaluate the Company's ability to generate cash flow from business operations and the impact that this cash flow has on the Company's liquidity. |
(2) For the purpose of calculating the cash conversion ratio, the Company has excluded the goodwill impairment charge recorded in the second quarter of 2022 related to the Automation reporting unit from 2022 net income. |
|
||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURE RECONCILIATION | ||||||||||||||||||||||||
ADJUSTED OPERATING PROFIT AND ADJUSTED DILUTED EARNINGS PER SHARE | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three months ended |
Twelve months ended |
|||||||||||||||||||||||
2023 |
2022 |
% Change |
2023 |
2022 |
% Change | |||||||||||||||||||
SEGMENT RESULTS | ||||||||||||||||||||||||
Operating Profit - Aerospace Segment (GAAP) |
$ |
14,000 |
|
$ |
18,012 |
|
|
(22.3 |
) |
$ |
52,953 |
|
$ |
76,174 |
|
(30.5 |
) |
|||||||
Restructuring/reduction in force and transformation related charges |
|
1,295 |
|
|
(250 |
) |
|
7,557 |
|
|
(255 |
) |
||||||||||||
Acquisition transaction costs |
|
776 |
|
|
- |
|
|
12,152 |
|
|
- |
|
||||||||||||
MB Short-term purchase accounting adjustments |
|
11,173 |
|
|
- |
|
|
19,192 |
|
|
- |
|
||||||||||||
Operating Profit - Aerospace Segment as adjusted (Non-GAAP) (1) |
$ |
27,244 |
|
$ |
17,762 |
|
|
53.4 |
|
$ |
91,854 |
|
$ |
75,919 |
|
21.0 |
|
|||||||
Operating Margin - Aerospace Segment (GAAP) |
|
6.6 |
% |
|
16.6 |
% |
|
(1,000 |
) |
bps. |
|
8.7 |
% |
|
17.7 |
% |
(900 |
) |
bps. | |||||
Operating Margin - Aerospace Segment as adjusted (Non-GAAP) (1) |
|
12.8 |
% |
|
16.4 |
% |
|
(360 |
) |
bps. |
|
15.1 |
% |
|
17.7 |
% |
(260 |
) |
bps. | |||||
Operating Profit (Loss) - Industrial Segment (GAAP) |
$ |
15,711 |
|
$ |
6,145 |
|
|
155.7 |
|
$ |
36,039 |
|
$ |
(19,055 |
) |
NM |
|
|||||||
Restructuring/reduction in force and transformation related charges |
|
3,548 |
|
|
11,052 |
|
|
38,259 |
|
|
20,853 |
|
||||||||||||
Divestiture transaction costs |
|
1,174 |
|
|
- |
|
|
1,174 |
|
|
- |
|
||||||||||||
|
|
- |
|
|
- |
|
|
- |
|
|
68,194 |
|
||||||||||||
Operating Profit - Industrial Segment as adjusted (Non-GAAP) (1) |
$ |
20,433 |
|
$ |
17,197 |
|
|
18.8 |
|
$ |
75,472 |
|
$ |
69,992 |
|
7.8 |
|
|||||||
Operating Margin - Industrial Segment (GAAP) |
|
7.7 |
% |
|
3.0 |
% |
|
470 |
|
bps. |
|
4.3 |
% |
|
-2.3 |
% |
660 |
|
bps. | |||||
Operating Margin - Industrial Segment as adjusted (Non-GAAP) (1) |
|
10.1 |
% |
|
8.4 |
% |
|
170 |
|
bps. |
|
9.0 |
% |
|
8.4 |
% |
60 |
|
bps. | |||||
CONSOLIDATED RESULTS | ||||||||||||||||||||||||
Operating Income (GAAP) |
$ |
29,711 |
|
$ |
24,157 |
|
|
23.0 |
|
$ |
88,992 |
|
$ |
57,119 |
|
55.8 |
|
|||||||
Restructuring/reduction in force and transformation related charges |
|
4,843 |
|
|
10,802 |
|
|
45,816 |
|
|
20,598 |
|
||||||||||||
Acquisition transaction costs |
|
776 |
|
|
- |
|
|
12,152 |
|
|
- |
|
||||||||||||
Divestiture transaction costs |
|
1,174 |
|
|
- |
|
|
1,174 |
|
|
- |
|
||||||||||||
MB Short-term purchase accounting adjustments |
|
11,173 |
|
|
- |
|
|
19,192 |
|
|
- |
|
||||||||||||
|
|
- |
|
|
- |
|
|
- |
|
|
68,194 |
|
||||||||||||
Operating Income as adjusted (Non-GAAP) (1) |
$ |
47,677 |
|
$ |
34,959 |
|
|
36.4 |
|
$ |
167,326 |
|
$ |
145,911 |
|
14.7 |
|
|||||||
Operating Margin (GAAP) |
|
7.1 |
% |
|
7.7 |
% |
|
(60 |
) |
bps. |
|
6.1 |
% |
|
4.5 |
% |
160 |
|
bps. | |||||
Operating Margin as adjusted (Non-GAAP) (1) |
|
11.5 |
% |
|
11.2 |
% |
|
30 |
|
bps. |
|
11.5 |
% |
|
11.6 |
% |
(10 |
) |
bps. | |||||
Diluted Net Income per Share (GAAP) |
$ |
0.14 |
|
$ |
0.30 |
|
|
(53.3 |
) |
$ |
0.31 |
|
$ |
0.26 |
|
19.2 |
|
|||||||
Restructuring/reduction in force and transformation related charges |
|
0.07 |
|
|
0.16 |
|
|
0.66 |
|
|
0.33 |
|
||||||||||||
Acquisition transaction costs |
|
0.01 |
|
|
- |
|
|
0.37 |
|
|
- |
|
||||||||||||
Divestiture transaction costs |
|
0.02 |
|
|
- |
|
|
0.02 |
|
|
- |
|
||||||||||||
MB Short-term purchase accounting adjustments |
|
0.17 |
|
|
- |
|
|
0.29 |
|
|
- |
|
||||||||||||
Tax related CEO transition costs |
|
- |
|
|
0.06 |
|
|
- |
|
|
0.06 |
|
||||||||||||
|
|
- |
|
|
- |
|
|
- |
|
|
1.33 |
|
||||||||||||
Diluted Net Income per Share as adjusted (Non-GAAP) (1) |
$ |
0.41 |
|
$ |
0.52 |
|
|
(21.2 |
) |
$ |
1.65 |
|
$ |
1.98 |
|
(16.7 |
) |
|||||||
Full-Year 2024 Outlook | ||||||||||||||||||||||||
Operating Margin (GAAP) |
|
11.5 |
% |
to |
|
13.5 |
% |
|||||||||||||||||
Restructuring/reduction in force and transformation related charges |
0.7 |
% |
||||||||||||||||||||||
Divestiture related impacts |
-0.5 |
% |
||||||||||||||||||||||
MB Short-term purchase accounting adjustments |
0.2 |
% |
||||||||||||||||||||||
Operating Margin as adjusted (Non-GAAP) (1) |
|
12.0 |
% |
to |
|
14.0 |
% |
|||||||||||||||||
Diluted Net Income per Share (GAAP) |
$ |
0.94 |
|
to |
$ |
1.19 |
|
|||||||||||||||||
Restructuring/reduction in force and transformation related charges |
0.17 |
|
||||||||||||||||||||||
Divestiture related impacts |
0.38 |
|
||||||||||||||||||||||
MB Short-term purchase accounting adjustments |
0.06 |
|
||||||||||||||||||||||
Diluted Net Income per Share as adjusted (Non-GAAP) (1) |
$ |
1.55 |
|
to |
$ |
1.80 |
|
|||||||||||||||||
NM - Not meaningful | ||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||
(1) The Company has excluded the following from its "as adjusted" financial measurements for 2023: 1) charges related to restructuring/reduction in force actions at certain businesses and business transformation costs (consulting fees related to transformation initiatives), including |
|
|||||||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURE RECONCILIATION | |||||||||||||||||||||||||||||||
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Three months ended |
|||||||||||||||||||||||||||||||
2023 |
2022 |
||||||||||||||||||||||||||||||
Aerospace | Industrial | Other (1) | Total | Aerospace | Industrial | Other (1) | Total | ||||||||||||||||||||||||
|
$ |
212,688 |
|
|
202,854 |
|
|
- |
|
$ |
415,542 |
|
$ |
108,504 |
|
|
204,969 |
|
|
- |
|
$ |
313,473 |
|
|||||||
Net Income |
$ |
7,216 |
|
$ |
15,569 |
|
|||||||||||||||||||||||||
Interest expense |
|
23,559 |
|
|
4,375 |
|
|||||||||||||||||||||||||
Other expense (income), net |
|
(14 |
) |
|
660 |
|
|||||||||||||||||||||||||
Income taxes |
|
(1,050 |
) |
|
3,553 |
|
|||||||||||||||||||||||||
Operating Profit (GAAP) |
$ |
14,000 |
|
$ |
15,711 |
|
$ |
- |
|
$ |
29,711 |
|
$ |
18,012 |
|
$ |
6,145 |
|
$ |
- |
|
$ |
24,157 |
|
|||||||
Operating Margin (GAAP) |
|
6.6 |
% |
|
7.7 |
% |
|
7.1 |
% |
|
16.6 |
% |
|
3.0 |
% |
|
7.7 |
% |
|||||||||||||
Other expense (income), net |
|
- |
|
|
- |
|
|
14 |
|
|
14 |
|
|
- |
|
|
- |
|
|
(660 |
) |
|
(660 |
) |
|||||||
Depreciation (2) |
|
8,785 |
|
|
6,191 |
|
|
- |
|
|
14,976 |
|
|
4,419 |
|
|
7,640 |
|
|
- |
|
|
12,059 |
|
|||||||
Amortization (3) |
|
15,545 |
|
|
6,101 |
|
|
- |
|
|
21,646 |
|
|
4,784 |
|
|
6,285 |
|
|
- |
|
|
11,069 |
|
|||||||
EBITDA (Non-GAAP) (4) |
$ |
38,330 |
|
$ |
28,003 |
|
$ |
14 |
|
$ |
66,347 |
|
$ |
27,215 |
|
$ |
20,070 |
|
$ |
(660 |
) |
$ |
46,625 |
|
|||||||
EBITDA Margin (Non-GAAP) (4) |
|
18.0 |
% |
|
13.8 |
% |
|
16.0 |
% |
|
25.1 |
% |
|
9.8 |
% |
|
14.9 |
% |
|||||||||||||
Restructuring/reduction in force and transformation related charges |
|
1,295 |
|
|
3,328 |
|
|
- |
|
|
4,623 |
|
|
(250 |
) |
|
11,052 |
|
|
- |
|
|
10,802 |
|
|||||||
Acquisition transaction costs |
|
776 |
|
|
- |
|
|
- |
|
|
776 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
MB Short-term purchase accounting adjustments |
|
5,299 |
|
|
- |
|
|
- |
|
|
5,299 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Divestiture transaction costs |
|
- |
|
|
1,174 |
|
|
- |
|
|
1,174 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Adjusted EBITDA (Non-GAAP) (4) |
$ |
45,700 |
|
$ |
32,505 |
|
$ |
14 |
|
$ |
78,219 |
|
$ |
26,965 |
|
$ |
31,122 |
|
$ |
(660 |
) |
$ |
57,427 |
|
|||||||
Adjusted EBITDA Margin (Non-GAAP) (4) |
|
21.5 |
% |
|
16.0 |
% |
|
18.8 |
% |
|
24.9 |
% |
|
15.2 |
% |
|
18.3 |
% |
|||||||||||||
Twelve months ended |
|||||||||||||||||||||||||||||||
2023 |
2022 |
||||||||||||||||||||||||||||||
Aerospace | Industrial | Other (1) | Total | Aerospace | Industrial | Other (1) | Total | ||||||||||||||||||||||||
|
$ |
608,050 |
|
|
842,831 |
|
|
(10 |
) |
$ |
1,450,871 |
|
$ |
429,153 |
|
|
832,715 |
|
|
- |
|
$ |
1,261,868 |
|
|||||||
Net Income |
$ |
15,996 |
|
$ |
13,479 |
|
|||||||||||||||||||||||||
Interest expense |
|
58,171 |
|
|
14,624 |
|
|||||||||||||||||||||||||
Other expense (income), net |
|
(2,443 |
) |
|
4,310 |
|
|||||||||||||||||||||||||
Income taxes |
|
17,268 |
|
|
24,706 |
|
|||||||||||||||||||||||||
Operating Profit (Loss) (GAAP) |
$ |
52,953 |
|
$ |
36,039 |
|
$ |
- |
|
$ |
88,992 |
|
$ |
76,174 |
|
$ |
(19,055 |
) |
$ |
- |
|
$ |
57,119 |
|
|||||||
Operating Margin (GAAP) |
|
8.7 |
% |
|
4.3 |
% |
|
6.1 |
% |
|
17.7 |
% |
|
-2.3 |
% |
|
4.5 |
% |
|||||||||||||
Other expense (income), net |
|
- |
|
|
- |
|
|
2,443 |
|
|
2,443 |
|
|
- |
|
|
- |
|
|
(4,310 |
) |
|
(4,310 |
) |
|||||||
Depreciation (2) |
|
23,504 |
|
|
28,582 |
|
|
- |
|
|
52,086 |
|
|
18,075 |
|
|
29,088 |
|
|
- |
|
|
47,163 |
|
|||||||
Amortization (3) |
|
38,304 |
|
|
25,428 |
|
|
- |
|
|
63,732 |
|
|
25,644 |
|
|
19,343 |
|
|
- |
|
|
44,987 |
|
|||||||
EBITDA (Non-GAAP) (4) |
$ |
114,761 |
|
$ |
90,049 |
|
$ |
2,443 |
|
$ |
207,253 |
|
$ |
119,893 |
|
$ |
29,376 |
|
$ |
(4,310 |
) |
$ |
144,959 |
|
|||||||
EBITDA Margin (Non-GAAP) (4) |
|
18.9 |
% |
|
10.7 |
% |
|
14.3 |
% |
|
27.9 |
% |
|
3.5 |
% |
|
11.5 |
% |
|||||||||||||
Restructuring/reduction in force and transformation related charges |
|
7,557 |
|
|
34,854 |
|
|
- |
|
|
42,411 |
|
|
(255 |
) |
|
17,668 |
|
|
- |
|
|
17,413 |
|
|||||||
Acquisition transaction costs |
|
12,152 |
|
|
- |
|
|
- |
|
|
12,152 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
MB Short-term purchase accounting adjustments |
|
8,318 |
|
|
- |
|
|
- |
|
|
8,318 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Divestiture transaction costs |
|
- |
|
|
1,174 |
|
|
- |
|
|
1,174 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Pension related (gain)/loss |
|
- |
|
|
- |
|
|
(1,144 |
) |
|
(1,144 |
) |
|
- |
|
|
- |
|
|
1,417 |
|
|
1,417 |
|
|||||||
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
68,194 |
|
|
- |
|
|
68,194 |
|
|||||||
Adjusted EBITDA (Non-GAAP) (4) |
$ |
142,788 |
|
$ |
126,077 |
|
$ |
1,299 |
|
$ |
270,164 |
|
$ |
119,638 |
|
$ |
115,238 |
|
$ |
(2,893 |
) |
$ |
231,983 |
|
|||||||
Adjusted EBITDA Margin (Non-GAAP) (4) |
|
23.5 |
% |
|
15.0 |
% |
|
18.6 |
% |
|
27.9 |
% |
|
13.8 |
% |
|
18.4 |
% |
|||||||||||||
Notes: | |||||||||||||||||||||||||||||||
(1) "Other" includes intersegment sales and items that are included within Other expense (income), net that are not allocated to the Company's reportable business segments. (2) Depreciation expense in 2023 includes (3) Amortization expense in 2023 includes (4) The Company defines EBITDA as net income plus interest expense, income taxes, and depreciation and amortization which the Company incurs in the normal course of business; in addition to these adjustments, the Company also excludes the impact of its "as adjusted items" above ("Adjusted EBITDA"). The Company does not intend EBITDA nor Adjusted EBITDA to represent cash flows from operations as defined by GAAP, and the reader should not consider it as an alternative to net income, net cash provided by operating activities or any other items calculated in accordance with GAAP, or as an indicator of the Company's operating performance. Accordingly, the measurements have limitations depending on their use. |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20240216668980/en/
Investors:
Vice President, Investor Relations
ir@onebarnes.com
860.583.7070
Source: