Nordson Corporation Reports Fiscal Year 2020 Fourth Quarter and Full Year Results
Fourth Quarter:
-
Sales were
$559 million , a 5% year-over-year decrease - Portfolio strengthening with announced divestiture of screws and barrels product line
-
Operating profit was
$37 million , or 7% of sales -
Adjusted operating profit was
$130 million , or 23% of sales -
Earnings were
$0.31 per diluted share -
Adjusted earnings were
$1.59 per diluted share, an 11% decrease from prior year
Full Year:
-
Sales were
$2.1 billion , a 3% year-over-year decrease -
Earnings were
$4.27 per diluted share -
Adjusted earnings were
$5.48 per diluted share, a 7% decrease from prior year
2021 First Quarter Guidance:
- Fiscal 2021 first quarter sales growth of 2 to 3% over prior year first quarter; adjusted earnings growth in the range of 15 to 20%
Operating profit in the quarter was
Net income was
Commenting on the company’s fiscal fourth quarter 2020 results, Nordson President and Chief Executive Officer
Fourth Quarter Segment Results
Industrial Precision Solutions sales of
Fiscal 2020 Full Year Results
Sales for the fiscal year ended
Outlook
“Throughout this unprecedented year, the safety of our people and the value they deliver to our customers remained among our top priorities,” Nagarajan stated. “We continue to make progress by deploying the NBS Next growth framework and aligning the organization to remain invested in our key strengths during this unique macroeconomic environment. The commitment of our employees combined with the resilience of our diverse end markets resulted in sound financial performance in fiscal 2020. We are entering fiscal 2021 from this solid foundation, and we have strong backlog entering the fiscal first quarter. I am confident in our ability to deliver long-term profitable growth.”
Backlog for the quarter ended
Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on
Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," “target,” or the negative of such terms or comparable terminology. These statements reflect management’s current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to,
|
|||||||||||||||
CONSOLIDATED STATEMENT OF INCOME (Unaudited) (Dollars in thousands except for per-share amounts) |
|||||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Sales |
$ |
558,525 |
|
|
$ |
585,451 |
|
|
$ |
2,121,100 |
|
|
$ |
2,194,226 |
|
Cost of sales |
261,657 |
|
|
266,476 |
|
|
990,632 |
|
|
1,002,123 |
|
||||
Gross profit |
296,868 |
|
|
318,975 |
|
|
1,130,468 |
|
|
1,192,103 |
|
||||
Gross margin % |
53.2 |
% |
|
54.5 |
% |
|
53.3 |
% |
|
54.3 |
% |
||||
|
|
|
|
|
|
|
|
||||||||
Selling & administrative expenses |
172,129 |
|
|
179,315 |
|
|
693,552 |
|
|
708,990 |
|
||||
Assets held for sale impairment charge |
87,371 |
|
|
— |
|
|
87,371 |
|
|
— |
|
||||
Operating profit |
37,368 |
|
|
139,660 |
|
|
349,545 |
|
|
483,113 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense - net |
(6,432) |
|
|
(10,216) |
|
|
(30,479) |
|
|
(45,301) |
|
||||
Other expense - net |
(4,634) |
|
|
(2,162) |
|
|
(17,577) |
|
|
(6,708) |
|
||||
Income before income taxes |
26,302 |
|
|
127,282 |
|
|
301,489 |
|
|
431,104 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Income taxes |
7,827 |
|
|
24,609 |
|
|
51,950 |
|
|
94,013 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income |
$ |
18,475 |
|
|
$ |
102,673 |
|
|
$ |
249,539 |
|
|
$ |
337,091 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
57,988 |
|
|
57,456 |
|
|
57,757 |
|
|
$ |
57,462 |
|
|||
Diluted |
58,679 |
|
|
58,255 |
|
|
58,473 |
|
|
58,202 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic earnings |
$ |
0.32 |
|
|
$ |
1.79 |
|
|
$ |
4.32 |
|
|
$ |
5.87 |
|
Diluted earnings |
$ |
0.31 |
|
|
$ |
1.76 |
|
|
$ |
4.27 |
|
|
$ |
5.79 |
|
|
|||||||
CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
Cash and cash equivalents |
$ |
208,293 |
|
|
$ |
151,164 |
|
Receivables - net |
471,873 |
|
|
530,765 |
|
||
Inventories - net |
277,033 |
|
|
283,399 |
|
||
Other current assets |
43,798 |
|
|
45,867 |
|
||
Assets held for sale |
19,615 |
|
|
— |
|
||
Total current assets |
1,020,612 |
|
|
1,011,195 |
|
||
|
|
|
|
||||
Property, plant & equipment - net |
358,618 |
|
|
398,895 |
|
||
|
1,713,354 |
|
|
1,614,739 |
|
||
Other assets |
582,072 |
|
|
491,618 |
|
||
|
$ |
3,674,656 |
|
|
$ |
3,516,447 |
|
|
|
|
|
||||
Current maturities of long-term debt |
$ |
38,043 |
|
|
$ |
168,738 |
|
Accounts payable and accrued liabilities |
311,898 |
|
|
308,888 |
|
||
Liabilities held for sale |
13,148 |
|
|
— |
|
||
Total current liabilities |
363,089 |
|
|
477,626 |
|
||
|
|
|
|
||||
Long-term debt |
1,067,952 |
|
|
1,075,404 |
|
||
Other liabilities |
484,624 |
|
|
382,372 |
|
||
Total shareholders' equity |
1,758,991 |
|
|
1,581,045 |
|
||
|
$ |
3,674,656 |
|
|
$ |
3,516,447 |
|
|
|
|
|
|
|||||||
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands) |
|||||||
|
Twelve Months Ended |
||||||
|
|
|
|
||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net Income |
$ |
249,539 |
|
|
$ |
337,091 |
|
Depreciation and amortization |
113,302 |
|
|
110,244 |
|
||
Impairment loss on assets held for sale |
87,371 |
|
|
— |
|
||
Other non-cash items |
5,278 |
|
|
19,606 |
|
||
Changes in working capital |
46,931 |
|
|
(84,048) |
|
||
Net cash provided by operating activities |
502,421 |
|
|
382,893 |
|
||
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Additions to property, plant and equipment |
(50,535) |
|
|
(64,244) |
|
||
Acquisitions |
(142,414) |
|
|
(12,486) |
|
||
Other - net |
(1,160) |
|
|
441 |
|
||
Net cash used in investing activities |
(194,109) |
|
|
(76,289) |
|
||
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Repayment of long-term debt |
(153,816) |
|
|
(69,580) |
|
||
Repayment of finance lease obligations |
(7,605) |
|
|
(4,859) |
|
||
Dividends paid |
(88,347) |
|
|
(82,145) |
|
||
Issuance of common shares |
50,853 |
|
|
26,020 |
|
||
Purchase of treasury shares |
(52,614) |
|
|
(120,510) |
|
||
Net cash used in financing activities |
(251,529) |
|
|
(251,074) |
|
||
|
|
|
|
||||
Effective of exchange rate change on cash |
346 |
|
|
(44) |
|
||
Net change in cash and cash equivalents |
57,129 |
|
|
55,486 |
|
||
|
|
|
|
||||
Cash and cash equivalents: |
|
|
|
||||
Beginning of period |
151,164 |
|
|
95,678 |
|
||
End of period |
$ |
208,293 |
|
|
$ |
151,164 |
|
|
|
|
|
|
|||||||||||||||||||
SALES BY GEOGRAPHIC SEGMENT (Unaudited) (Dollars in thousands) |
|||||||||||||||||||
|
Three Months Ended |
|
Sales Variance |
||||||||||||||||
|
|
|
|
|
Organic |
|
Acquisitions |
|
Currency |
|
Total |
||||||||
SALES BY SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Industrial precision solutions |
$ |
308,385 |
|
|
$ |
336,451 |
|
|
(10.0) |
% |
|
— |
% |
|
1.7 |
% |
|
(8.3) |
% |
Advanced technology solutions |
250,140 |
|
|
249,000 |
|
|
(3.1) |
% |
|
2.2 |
% |
|
1.4 |
% |
|
0.5 |
% |
||
Total Sales |
$ |
558,525 |
|
|
$ |
585,451 |
|
|
(7.1) |
% |
|
0.9 |
% |
|
1.6 |
% |
|
(4.6) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SALES BY GEOGRAPHIC REGION |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
194,701 |
|
|
$ |
206,874 |
|
|
(7.1) |
% |
|
1.2 |
% |
|
— |
% |
|
(5.9) |
% |
|
35,452 |
|
|
44,503 |
|
|
(22.5) |
% |
|
6.4 |
% |
|
(4.2) |
% |
|
(20.3) |
% |
||
|
142,082 |
|
|
145,946 |
|
|
(7.4) |
% |
|
0.1 |
% |
|
4.7 |
% |
|
(2.6) |
% |
||
|
36,248 |
|
|
37,190 |
|
|
(4.5) |
% |
|
— |
% |
|
2.0 |
% |
|
(2.5) |
% |
||
|
150,042 |
|
|
150,938 |
|
|
(2.9) |
% |
|
— |
% |
|
2.3 |
% |
|
(0.6) |
% |
||
Total Sales |
$ |
558,525 |
|
|
$ |
585,451 |
|
|
(7.1) |
% |
|
0.9 |
% |
|
1.6 |
% |
|
(4.6) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Twelve Months Ended |
|
Sales Variance |
||||||||||||||||
|
|
|
|
|
Organic |
|
Acquisitions |
|
Currency |
|
Total |
||||||||
SALES BY SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Industrial precision solutions |
$ |
1,143,423 |
|
|
$ |
1,208,376 |
|
|
(4.8) |
% |
|
— |
% |
|
(0.6) |
% |
|
(5.4) |
% |
Advanced technology solutions |
977,677 |
|
|
985,850 |
|
|
(2.3) |
% |
|
1.4 |
% |
|
0.1 |
% |
|
(0.8) |
% |
||
Total Sales |
$ |
2,121,100 |
|
|
$ |
2,194,226 |
|
|
(3.7) |
% |
|
0.6 |
% |
|
(0.2) |
% |
|
(3.3) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SALES BY GEOGRAPHIC REGION |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
755,642 |
|
|
$ |
758,383 |
|
|
(1.1) |
% |
|
0.7 |
% |
|
— |
% |
|
(0.4) |
% |
|
141,473 |
|
|
167,661 |
|
|
(14.8) |
% |
|
3.0 |
% |
|
(3.8) |
% |
|
(15.6) |
% |
||
|
536,636 |
|
|
571,596 |
|
|
(6.4) |
% |
|
0.4 |
% |
|
(0.1) |
% |
|
(6.1) |
% |
||
|
126,601 |
|
|
126,756 |
|
|
(2.1) |
% |
|
0.2 |
% |
|
1.8 |
% |
|
(0.1) |
% |
||
|
560,748 |
|
|
569,830 |
|
|
(1.7) |
% |
|
0.2 |
% |
|
(0.1) |
% |
|
(1.6) |
% |
||
Total Sales |
$ |
2,121,100 |
|
|
$ |
2,194,226 |
|
|
(3.7) |
% |
|
0.6 |
% |
|
(0.2) |
% |
|
(3.3) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED OPERATING PROFIT AND EBITDA (Unaudited) (Dollars in thousands) |
|||||||||||||||||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||
SALES BY SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Industrial precision solutions |
$ |
308,385 |
|
|
|
|
$ |
336,451 |
|
|
|
|
$ |
1,143,423 |
|
|
|
|
$ |
1,208,376 |
|
|
|
||||
Advanced technology solutions |
250,140 |
|
|
|
|
249,000 |
|
|
|
|
977,677 |
|
|
|
|
985,850 |
|
|
|
||||||||
Total sales |
$ |
558,525 |
|
|
|
|
$ |
585,451 |
|
|
|
|
$ |
2,121,100 |
|
|
|
|
$ |
2,194,226 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OPERATING PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Industrial precision solutions |
$ |
425 |
|
|
|
|
$ |
99,353 |
|
|
|
|
$ |
208,028 |
|
|
|
|
$ |
329,054 |
|
|
|
||||
Advanced technology solutions |
50,674 |
|
|
|
|
54,727 |
|
|
|
|
191,602 |
|
|
|
|
205,609 |
|
|
|
||||||||
Corporate |
(13,731) |
|
|
|
|
(14,420) |
|
|
|
|
(50,085) |
|
|
|
|
(51,550) |
|
|
|
||||||||
Total operating profit |
$ |
37,368 |
|
|
|
|
$ |
139,660 |
|
|
|
|
$ |
349,545 |
|
|
|
|
$ |
483,113 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OPERATING PROFIT ADJUSTMENTS (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Industrial precision solutions |
$ |
91,419 |
|
|
|
|
$ |
314 |
|
|
|
|
$ |
94,896 |
|
|
|
|
$ |
2,123 |
|
|
|
||||
Advanced technology solutions |
1,424 |
|
|
|
|
733 |
|
|
|
|
7,807 |
|
|
|
|
1,568 |
|
|
|
||||||||
Corporate |
— |
|
|
|
|
681 |
|
|
|
|
1,387 |
|
|
|
|
873 |
|
|
|
||||||||
Total adjustments |
$ |
92,843 |
|
|
|
|
$ |
1,728 |
|
|
|
|
$ |
104,090 |
|
|
|
|
$ |
4,564 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ADJUSTED OPERATING PROFIT (NON-GAAP) |
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
||||||||||||
Industrial precision solutions |
$ |
91,844 |
|
|
30 |
% |
|
$ |
99,667 |
|
|
30 |
% |
|
$ |
302,924 |
|
|
26 |
% |
|
$ |
331,177 |
|
|
27 |
% |
Advanced technology solutions |
52,098 |
|
|
21 |
% |
|
55,460 |
|
|
22 |
% |
|
199,409 |
|
|
20 |
% |
|
207,177 |
|
|
21 |
% |
||||
Corporate |
(13,731) |
|
|
|
|
(13,739) |
|
|
|
|
(48,698) |
|
|
|
|
(50,677) |
|
|
|
||||||||
Total operating profit - adjusted |
$ |
130,211 |
|
|
23 |
% |
|
$ |
141,388 |
|
|
24 |
% |
|
$ |
453,635 |
|
|
21 |
% |
|
$ |
487,677 |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
DEPRECIATION & AMORTIZATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Industrial precision solutions |
$ |
9,951 |
|
|
|
|
$ |
9,669 |
|
|
|
|
$ |
38,939 |
|
|
|
|
$ |
38,333 |
|
|
|
||||
Advanced technology solutions |
16,710 |
|
|
|
|
15,462 |
|
|
|
|
64,543 |
|
|
|
|
62,836 |
|
|
|
||||||||
Corporate |
2,477 |
|
|
|
|
1,782 |
|
|
|
|
9,820 |
|
|
|
|
9,075 |
|
|
|
||||||||
Total depreciation & amortization |
$ |
29,138 |
|
|
|
|
$ |
26,913 |
|
|
|
|
$ |
113,302 |
|
|
|
|
$ |
110,244 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA (NON-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Industrial precision solutions |
$ |
101,795 |
|
|
33 |
% |
|
$ |
109,336 |
|
|
32 |
% |
|
$ |
341,863 |
|
|
30 |
% |
|
$ |
369,510 |
|
|
31 |
% |
Advanced technology solutions |
68,808 |
|
|
28 |
% |
|
70,922 |
|
|
28 |
% |
|
263,952 |
|
|
27 |
% |
|
270,013 |
|
|
27 |
% |
||||
Corporate |
(11,254) |
|
|
|
|
(11,957) |
|
|
|
|
(38,878) |
|
|
|
|
(41,602) |
|
|
|
||||||||
Total EBITDA |
$ |
159,349 |
|
|
29 |
% |
|
$ |
168,301 |
|
|
29 |
% |
|
$ |
566,937 |
|
|
27 |
% |
|
$ |
597,921 |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents assets held for sale impairment charge, costs and adjustments related to cost structure simplification actions, and charges associated with our 2020 and 2019 acquisitions.
Adjusted operating profit and EBITDA are non-GAAP measures used by management to evaluate the Company's ongoing operations. Adjusted operating profit is defined as operating profit plus certain adjustments, such as an assets held for sale impairment charge, cost structure simplification actions, and non-cash inventory charges related to acquisitions. EBITDA is defined as adjusted operating profit plus depreciation and amortization.
|
|||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES - PROFITABILITY (Unaudited) (Dollars in thousands) |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
GAAP AS REPORTED |
|
|
|
|
|
|
|
||||||||
Operating Profit |
$ |
37,368 |
|
|
$ |
139,660 |
|
|
$ |
349,545 |
|
|
$ |
483,113 |
|
Other / interest income (expense) - net |
(11,066) |
|
|
(12,378) |
|
|
(48,056) |
|
|
(52,009) |
|
||||
Net Income |
18,475 |
|
|
102,673 |
|
|
249,539 |
|
|
337,091 |
|
||||
EPS diluted |
$ |
0.31 |
|
|
$ |
1.76 |
|
|
$ |
4.27 |
|
|
$ |
5.79 |
|
|
|
|
|
|
|
|
|
||||||||
Shares outstanding - diluted |
58,679 |
|
|
58,255 |
|
|
58,473 |
|
|
58,202 |
|
||||
|
|
|
|
|
|
|
|
||||||||
OPERATING PROFIT ADJUSTMENTS |
|
|
|
|
|
|
|
||||||||
Inventory step-up amortization |
$ |
1,298 |
|
|
$ |
342 |
|
|
$ |
2,527 |
|
|
$ |
530 |
|
Severance and other |
4,174 |
|
|
1,386 |
|
|
14,192 |
|
|
4,034 |
|
||||
Assets held for sale impairment charge |
87,371 |
|
|
— |
|
|
87,371 |
|
|
— |
|
||||
|
|
|
|
|
|
|
|
||||||||
NON-OPERATING EXPENSE ADJUSTMENTS |
|
|
|
|
|
|
|
||||||||
Pension settlement loss |
$ |
— |
|
|
$ |
— |
|
|
$ |
2,508 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
||||||||
Total adjustments |
$ |
92,843 |
|
|
$ |
1,728 |
|
|
$ |
106,598 |
|
|
$ |
4,564 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments net of tax |
$ |
76,390 |
|
|
$ |
1,396 |
|
|
$ |
87,214 |
|
|
$ |
3,578 |
|
Other discrete tax items |
$ |
(1,820) |
|
|
$ |
171 |
|
|
$ |
(16,311) |
|
|
$ |
911 |
|
EPS effect of adjustments and other discrete tax items |
$ |
1.27 |
|
|
$ |
0.03 |
|
|
$ |
1.21 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
||||||||
NON-GAAP MEASURES-ADJUSTED PROFITABILITY |
|
|
|
|
|
|
|
||||||||
Operating Profit |
$ |
130,211 |
|
|
$ |
141,388 |
|
|
$ |
453,635 |
|
|
$ |
487,677 |
|
Operating profit % of sales |
23.3 |
% |
|
24.2 |
% |
|
21.4 |
% |
|
22.2 |
% |
||||
Net income |
$ |
93,045 |
|
|
$ |
104,240 |
|
|
$ |
320,442 |
|
|
$ |
341,580 |
|
Diluted earnings |
$ |
1.59 |
|
|
$ |
1.79 |
|
|
$ |
5.48 |
|
|
$ |
5.87 |
|
Adjusted operating profit is defined as operating profit plus certain adjustments such as an assets held for sale impairment charge, cost structure simplification actions and non-cash inventory charges related to acquisitions. Adjusted operating profit as a percentage of sales is defined as adjusted operating profit divided by sales.
Adjusted net income is defined as net income plus tax effected adjustments and other discrete tax items.
Adjusted earnings is defined as GAAP EPS adjusted for tax effected adjustments and other discrete tax items.
Management uses these non-GAAP measures internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201215006049/en/
Vice President,
Investor Relations & Corporate Communications
440.204.9985
Lara.Mahoney@nordson.com
Source:
Lara Mahoney
Vice President,
Investor Relations & Corporate Communications
440.204.9985
Lara.Mahoney@nordson.com