Mativ Announces Fourth Quarter and Full Year 2023 Results
Adjusted measures are reconciled to GAAP at the end of this release. Financial comparisons are to the prior year period unless stated otherwise. Figures may not sum to total due to rounding. "Comparable" non-GAAP measures are used to compare current period
Mativ Fourth Quarter 2023 Highlights (Continuing Operations)
-
Sales were
$452.3 million down 13.7% year over year, reflecting lower volume -
GAAP loss was
$13.6 million , GAAP EPS was$(0.25) , and GAAP Operating Loss was$2.2 million . Results included$10.6 million ($0.19 per share) related to asset write-downs due to footprint rationalization, integration costs from the Merger, and divestiture costs from the EP Divestiture -
Adjusted EBITDA was
$50.0 million , Adjusted income was$13.2 million , and Adjusted EPS was$0.23 (see non-GAAP reconciliations). Adjusted EBITDA was down 20% versus the prior year, as impacts from lower volumes more than offset net benefits of price/input costs and synergies
Mativ Full Year 2023 Highlights (Continuing Operations)
-
Sales increased 24% to
$2,026.0 million , reflecting the full benefit of the Merger; Sales decreased 9% on a comparable basis, reflecting lower volume partly offset by higher selling prices and favorable currency translation -
GAAP Loss was
$507.7 million , GAAP EPS was$(9.33) , and GAAP Operating Loss was$413.9 million , which all included significant expenses related to goodwill impairment, integration, and restructuring -
Adjusted EBITDA was
$213.4 million , Adjusted Income was$47.3 million , and Adjusted EPS was$0.80 ; Adjusted EBITDA was down 17% on a comparable basis, as impacts from lower volumes more than offset benefits of price/input costs and synergies
Management Commentary
Chief Executive Officer
"Throughout these headwinds in 2023, we focused on what we could control and continued to make the right long-term decisions. We divested Engineered Papers, reduced our debt by over 35%, consolidated sites, and achieved our targeted Merger synergies ahead of plan. In
Mativ Fourth Quarter 2023 Financial Results from Continuing Operations
Note: The Reported Results below reflect consolidated
Advanced |
Three Months Ended |
||||||||||||||
(in millions; unaudited) |
|
2023 |
|
|
2022 |
|
Change |
|
2023 |
|
|
2022 |
|
||
|
$ |
362.0 |
|
$ |
409.1 |
|
$ |
(47.1 |
) |
|
|
|
|
||
GAAP Operating Profit & Margin % |
$ |
24.6 |
|
$ |
27.6 |
|
$ |
(3.0 |
) |
|
6.8 |
% |
|
6.7 |
% |
Adjusted EBITDA & Margin % |
$ |
55.9 |
|
$ |
61.6 |
|
$ |
(5.7 |
) |
|
15.4 |
% |
|
15.1 |
% |
Advanced
GAAP Operating Profit in 2023 included
Fiber-Based Solutions (FBS) |
Three Months Ended |
||||||||||||||
(in millions; unaudited) |
|
2023 |
|
|
2022 |
|
Change |
|
2023 |
|
|
2022 |
|
||
|
$ |
90.3 |
|
$ |
115.3 |
|
$ |
(25.0 |
) |
|
|
|
|
||
GAAP Operating Profit & Margin % |
$ |
5.7 |
|
$ |
5.8 |
|
$ |
(0.1 |
) |
|
6.3 |
% |
|
5.0 |
% |
Adjusted EBITDA & Margin % |
$ |
13.1 |
|
$ |
20.1 |
|
$ |
(7.0 |
) |
|
14.5 |
% |
|
17.4 |
% |
Fiber-Based Solutions (FBS)
segment sales, comprised solely of Packaging and Specialty Papers, were
GAAP Operating Profit was
Unallocated |
Three Months Ended |
||||||||||||||||
(in millions; unaudited) |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
2023 |
|
|
2022 |
|
||
GAAP Operating Expense & % of Sales |
$ |
(32.5 |
) |
|
$ |
(31.4 |
) |
|
$ |
(1.1 |
) |
|
(7.2 |
)% |
|
(6.0 |
)% |
Adjusted EBITDA & % of Sales |
$ |
(19.0 |
) |
|
$ |
(19.4 |
) |
|
$ |
0.4 |
|
|
(4.2 |
)% |
|
(3.7 |
)% |
Unallocated GAAP Operating Expenses
included
Interest
expense
was
Other expense, net
was
Tax rate was a 19.3% benefit during 4Q:23.
Non-GAAP Adjustments reflect items included in GAAP operating profit, income, and EPS, but excluded from adjusted results (see non-GAAP reconciliation tables for additional details). The most significant adjustments to fourth quarter 2023 results were as follows:
-
$0.22 per share of purchase accounting expenses (purchase accounting expenses reflect primarily ongoing non-cash intangible asset amortization associated with mergers and acquisitions) -
$0.07 per share of restructuring and other impairment expenses -
$0.07 per share of expenses related to the EP Divestiture -
$0.05 per share of integration expenses related to the Merger
Cash Flow & Debt
Year-to-date 2023 cash provided by operating activities of continuing operations was
Total debt was
Discontinued Operations
Sales related to the Company's discontinued operations, Engineered Papers, were
Dividend & Share Repurchases
On
During 2023, the Company used
Conference Call
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") that are subject to the safe harbor created by that Act and other legal protections. Forward-looking statements include, without limitation, those regarding EPS and other financial guidance, acquisition integration and performance, growth prospects, future end-market trends, future macro-economic trends, the future effects of supply chain challenges and price increases, future cash flows, net leverage, purchase accounting impacts, effective tax rates, planned investments, profitability, and cash flow, the expected benefits of the Merger and the Neenah integration, whether the strategic benefits of the sale of the Company’s Engineered Papers business can be achieved, the expected benefits of our organizational restructuring, our ability to execute our growth strategy for 2024, and integration and other statements generally identified by words such as "believe," "expect," "intend," "guidance," "plan," "forecast," "potential," "anticipate," "confident," "project," "appear," "future," "should," "likely," "could," "may," "will," "typically," and similar words. In addition, the amount of the goodwill impairment charge previously announced was based in part on estimates of future performance, so this announcement should also be considered a forward-looking statement.
These forward-looking statements are prospective in nature and not based on historical facts, but rather on current expectations and on numerous assumptions regarding the business strategies and the environment in which
- Risks associated with the implementation of our strategic growth initiatives, including diversification, and the Company's understanding of, and entry into, new industries and technologies;
- The possibility the Company may be unable to achieve the strategic benefits of the EP Divestiture;
-
Risks associated with acquisitions, dispositions, strategic transactions and global asset realignment initiatives of
Mativ , including the sale of the Company's Engineered Papers business; - Adverse changes in the filtration, release liners, protective solutions, industrials and healthcare sectors impacting key ATM segment customers;
- Changes in the source and intensity of competition in our commercial end-markets;
-
Adverse changes in sales or production volumes, pricing and/or manufacturing costs in our ATM or
FBS operating segments; - Seasonal or cyclical market and industry fluctuations which may result in reduced net sales and operating profits during certain periods;
- Risks associated with our technological advantages in our intellectual property and the likelihood that our current technological advantages are unable to continue indefinitely;
- Supply chain disruptions, including the failure of one or more material suppliers, including energy, resin, fiber, and chemical suppliers, to supply materials as needed to maintain our product plans and cost structure;
- Increases in operating costs due to inflation and continuing increases in the inflation rate or otherwise, such as labor expense, compensation and benefits costs;
- Business disruptions from the Merger that will harm the Company’s business, including current plans and operations;
-
The possibility that
Mativ may be unable to successfully integrate Neenah’s operations with those ofMativ and achieve expected synergies and operating efficiencies within the expected time-frames or at all; - Potential adverse reactions or changes to business relationships resulting from the Merger, including as it relates to the Company’s ability to successfully renew existing client contracts on favorable terms or at all and obtain new clients;
- Our ability to attract and retain key personnel, including as a result of the Merger, labor shortages, labor strikes, stoppages or other disruptions;
-
The substantial indebtedness
Mativ has incurred and assumed in connection with the Merger and the need to generate sufficient cash flows to service and repay such debt; -
Changes in general economic, financial and credit conditions in the
U.S. ,Europe ,China and elsewhere, including the impact thereof on currency exchange rates (including any weakening of the Euro and Real) and on interest rates; - Risks associated with SOFR’s replacement of LIBOR;
- A failure in our risk management and/or currency or interest rate swaps and hedging programs, including the failures of any insurance company or counterparty;
- Changes in the manner in which we finance our debt and future capital needs, including potential acquisitions;
-
Changes in tax rates, the adoption of new
U.S. or international tax legislation or exposure to additional tax liabilities; -
Uncertainty as to the long-term value of the common stock of
Mativ , including the dilution caused byMativ's issuance of additional shares of its common stock in connection with the Merger; -
Changes in employment, wage and hour laws and regulations in the
U.S. ,France and elsewhere, including the loi de Securisation de l'emploi inFrance , unionization rule and regulations by theNational Labor Relations Board in theU.S. , equal pay initiatives, additional anti-discrimination rules or tests and different interpretations of exemptions from overtime laws; - The impact of tariffs, and the imposition of any future additional tariffs and other trade barriers, and the effects of retaliatory trade measures;
- Existing and future governmental regulation and the enforcement thereof that may materially restrict or adversely affect how we conduct business and our financial results;
- Weather conditions, including potential impacts, if any, from climate change, known and unknown, and natural disasters or unusual weather events;
-
International conflicts and disputes, such as the ongoing conflict between
Russia andUkraine , the conflict betweenIsrael andHamas and the broader regional conflict in theMiddle East , which restrict our ability to supply products into affected regions, due to the corresponding effects on demand, the application of international sanctions, or practical consequences on transportation, banking transactions, and other commercial activities in troubled regions; - Compliance with the FCPA and other anti-corruption laws or trade control laws, as well as other laws governing our operations;
- Risks associated with pandemics and other public health emergencies, including the COVID-19 pandemic, or new public health crises that may arise in the future;
-
The number, type, outcomes (by judgment or settlement) and costs of legal, tax, regulatory or administrative proceedings, litigation and/or amnesty programs, including those in
Brazil ,France andGermany ; - Increased scrutiny from stakeholders related to environmental, social and governance (“ESG”) matters, as well as our ability to achieve our broader ESG goals and objectives;
- Costs and timing of implementation of any upgrades or changes to our information technology systems;
- Failure by us to comply with any privacy or data security laws or to protect against theft of customer, employee and corporate sensitive information;
- The impact of cybersecurity risks related to breaches of security pertaining to sensitive Company, customer or vendor information, as well as breaches in the technology that manages operations and other business processes; and
-
Other factors described elsewhere in this document and from time to time in documents that we file with the
U.S. Securities and Exchange Commission (the “SEC”).
All forward-looking statements made in this document are qualified by these cautionary statements. Forward-looking statements herein are made only as of the date of this document, and
Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance unless expressed as such and should only be viewed as historical data. The financial results reported in this release are unaudited.
Non-GAAP Financial Measures
Certain financial measures and comments contained in this press release exclude restructuring and impairment expenses, certain purchase accounting adjustments related to ATM and
The Company believes that the presentation of non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency on the information used by the Company’s management in its financial and operational decision-making. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company’s financial and operational performance in the same way that management evaluates the Company's financial performance. Management believes that providing this information enables investors to better understand the Company’s operating performance and financial condition. These non-GAAP financial measures are not calculated or presented in accordance with, and are not intended to be considered in isolation or as alternatives or substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP, and should be read only in conjunction with the Company's financial measures prepared and presented in accordance with GAAP. The non-GAAP financial measures used in this release may be different from the measures used by other companies.
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) FROM CONTINUING OPERATIONS |
|||||||||||||||||||
(in millions, except per share amounts) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Net sales |
$ |
452.3 |
|
|
$ |
524.4 |
|
|
(13.7)% |
|
$ |
2,026.0 |
|
|
$ |
1,636.9 |
|
|
23.8% |
Cost of products sold |
|
366.4 |
|
|
|
437.0 |
|
|
(16.2) |
|
|
1,670.2 |
|
|
|
1,330.9 |
|
|
25.5 |
Gross profit |
|
85.9 |
|
|
|
87.4 |
|
|
(1.7) |
|
|
355.8 |
|
|
|
306.0 |
|
|
16.3 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling expense |
|
18.3 |
|
|
|
18.7 |
|
|
(2.1) |
|
|
78.9 |
|
|
|
59.8 |
|
|
31.9 |
Research and development expense |
|
4.6 |
|
|
|
6.1 |
|
|
(24.6) |
|
|
21.2 |
|
|
|
18.8 |
|
|
12.8 |
General expense |
|
60.2 |
|
|
|
58.7 |
|
|
2.6 |
|
|
246.0 |
|
|
|
248.5 |
|
|
(1.0) |
Total nonmanufacturing expenses |
|
83.1 |
|
|
|
83.5 |
|
|
(0.5) |
|
|
346.1 |
|
|
|
327.1 |
|
|
5.8 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
— |
|
|
|
— |
|
|
N.M. |
|
|
401.0 |
|
|
|
— |
|
|
N.M. |
Restructuring and other impairment expense |
|
5.0 |
|
|
|
1.8 |
|
|
N.M. |
|
|
22.6 |
|
|
|
19.1 |
|
|
18.3 |
Operating profit (loss) |
|
(2.2 |
) |
|
|
2.1 |
|
|
N.M. |
|
|
(413.9 |
) |
|
|
(40.2 |
) |
|
N.M. |
Interest expense |
|
13.4 |
|
|
|
13.6 |
|
|
(1.5) |
|
|
62.2 |
|
|
|
57.3 |
|
|
8.6 |
Other income (expense), net |
|
(1.2 |
) |
|
|
(4.2 |
) |
|
(71.4) |
|
|
(4.8 |
) |
|
|
1.0 |
|
|
N.M. |
Loss from continuing operations before income taxes |
|
(16.8 |
) |
|
|
(15.7 |
) |
|
7.0 |
|
|
(480.9 |
) |
|
|
(96.5 |
) |
|
N.M. |
Income tax (expense) benefit |
|
3.2 |
|
|
|
13.2 |
|
|
(75.8) |
|
|
(26.8 |
) |
|
|
27.6 |
|
|
N.M. |
Net loss from continuing operations |
|
(13.6 |
) |
|
|
(2.5 |
) |
|
N.M. |
|
|
(507.7 |
) |
|
|
(68.9 |
) |
|
N.M. |
Income from discontinued operations, net of tax |
|
171.3 |
|
|
|
5.0 |
|
|
N.M. |
|
|
198.2 |
|
|
|
62.3 |
|
|
N.M. |
Net income (loss) |
|
157.7 |
|
|
$ |
2.5 |
|
|
N.M. |
|
|
(309.5 |
) |
|
|
(6.6 |
) |
|
N.M. |
Dividends to participating securities |
|
— |
|
|
$ |
(0.2 |
) |
|
N.M. |
|
|
(0.7 |
) |
|
|
(0.9 |
) |
|
(22.2) |
Net income (loss) attributable to common stockholders |
|
157.7 |
|
|
$ |
2.3 |
|
|
N.M. |
|
|
(310.2 |
) |
|
|
(7.5 |
) |
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share - basic: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loss per share from continuing operations |
$ |
(0.25 |
) |
|
$ |
(0.05 |
) |
|
N.M. |
|
$ |
(9.33 |
) |
|
$ |
(1.64 |
) |
|
N.M. |
Income per share from discontinued operations |
|
3.16 |
|
|
|
0.09 |
|
|
N.M. |
|
|
3.64 |
|
|
|
1.46 |
|
|
N.M. |
Basic |
$ |
2.91 |
|
|
$ |
0.04 |
|
|
N.M. |
|
$ |
(5.69 |
) |
|
$ |
(0.18 |
) |
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share – diluted: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loss per share from continuing operations |
$ |
(0.25 |
) |
|
$ |
(0.05 |
) |
|
N.M. |
|
$ |
(9.33 |
) |
|
$ |
(1.64 |
) |
|
N.M. |
Income per share from discontinued operations |
|
3.14 |
|
|
|
0.09 |
|
|
N.M. |
|
|
3.64 |
|
|
|
1.46 |
|
|
N.M. |
Diluted |
$ |
2.89 |
|
|
$ |
0.04 |
|
|
N.M. |
|
$ |
(5.69 |
) |
|
$ |
(0.18 |
) |
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
54,230,400 |
|
|
|
54,389,900 |
|
|
|
|
|
54,506,900 |
|
|
|
42,442,200 |
|
|
|
Diluted |
|
54,499,800 |
|
|
|
54,686,300 |
|
|
|
|
|
54,506,900 |
|
|
|
42,442,200 |
|
|
|
N.M. - Not Meaningful |
|
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(in millions) |
||||||
(Unaudited) |
||||||
|
|
|
|
|||
ASSETS |
|
|
|
|||
Cash and cash equivalents |
$ |
120.2 |
|
$ |
101.1 |
|
Accounts receivable, net |
|
176.5 |
|
|
178.2 |
|
Inventories, net |
|
352.9 |
|
|
414.6 |
|
Income taxes receivable |
|
30.6 |
|
|
19.4 |
|
Other current assets |
|
32.3 |
|
|
27.6 |
|
Current assets held for sale of discontinued operations |
|
— |
|
|
233.8 |
|
Total current assets |
|
712.5 |
|
|
974.7 |
|
Property, plant and equipment, net |
|
672.5 |
|
|
691.5 |
|
Finance lease right-of-use assets |
|
18.2 |
|
|
17.3 |
|
Operating lease right-of-use assets |
|
45.6 |
|
|
30.6 |
|
Deferred income tax benefits |
|
6.4 |
|
|
34.4 |
|
|
|
474.1 |
|
|
844.2 |
|
Intangible assets, net |
|
631.3 |
|
|
710.3 |
|
Other assets |
|
81.8 |
|
|
110.1 |
|
Noncurrent assets held for sale of discontinued operations |
|
— |
|
|
256.1 |
|
Total assets |
$ |
2,642.4 |
|
$ |
3,669.2 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||
Current debt |
$ |
2.8 |
|
$ |
33.6 |
|
Finance lease liabilities |
|
1.4 |
|
|
0.9 |
|
Operating lease liabilities |
|
9.9 |
|
|
8.5 |
|
Accounts payable |
|
139.3 |
|
|
180.6 |
|
Income taxes payable |
|
14.3 |
|
|
10.2 |
|
Accrued expenses and other current liabilities |
|
113.7 |
|
|
129.0 |
|
Current liabilities held for sale of discontinued operations |
|
— |
|
|
103.4 |
|
Total current liabilities |
|
281.4 |
|
|
466.2 |
|
Long-term debt |
|
1,101.8 |
|
|
1,656.4 |
|
Finance lease liabilities, noncurrent |
|
18.2 |
|
|
17.6 |
|
Operating lease liabilities, noncurrent |
|
35.3 |
|
|
25.0 |
|
Long-term income tax payable |
|
7.7 |
|
|
13.9 |
|
Pension and other postretirement benefits |
|
62.2 |
|
|
60.3 |
|
Deferred income tax liabilities |
|
142.3 |
|
|
152.1 |
|
Other liabilities |
|
44.4 |
|
|
31.5 |
|
Noncurrent liabilities held for sale of discontinued operations |
|
— |
|
|
66.9 |
|
Total liabilities |
|
1,693.3 |
|
|
2,489.9 |
|
Stockholders' equity: |
|
|
|
|||
Preferred stock, |
|
— |
|
|
— |
|
Common stock, |
|
5.4 |
|
|
5.5 |
|
Additional paid-in-capital |
|
669.6 |
|
|
658.5 |
|
Retained earnings |
|
235.0 |
|
|
610.7 |
|
Accumulated other comprehensive income (loss), net of tax |
|
39.1 |
|
|
(95.4 |
) |
Total stockholders' equity |
|
949.1 |
|
|
1,179.3 |
|
Total liabilities and stockholders' equity |
$ |
2,642.4 |
|
$ |
3,669.2 |
|
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOW FROM CONTINUING OPERATIONS |
|||||||
(in millions) |
|||||||
(Unaudited) |
|||||||
|
Year Ended |
||||||
|
|
2023 |
|
|
|
2022 |
|
Operating |
|
|
|
||||
Net loss |
$ |
(309.5 |
) |
|
$ |
(6.6 |
) |
Less: Income from discontinued operations |
|
198.2 |
|
|
|
62.3 |
|
Loss from continuing operations |
|
(507.7 |
) |
|
|
(68.9 |
) |
Non-cash items included in net income (loss): |
|
|
|
||||
Depreciation and amortization |
|
147.8 |
|
|
|
109.9 |
|
Amortization of deferred issuance costs |
|
7.6 |
|
|
|
6.4 |
|
Goodwill Impairment |
|
401.0 |
|
|
|
— |
|
Other impairments |
|
18.2 |
|
|
|
13.8 |
|
Deferred income tax |
|
23.8 |
|
|
|
(28.9 |
) |
Pension and other postretirement benefits |
|
(8.3 |
) |
|
|
(6.5 |
) |
Stock-based compensation |
|
10.5 |
|
|
|
20.4 |
|
Gain on sale of assets |
|
— |
|
|
|
(2.9 |
) |
(Gain) loss on foreign currency transactions |
|
4.8 |
|
|
|
(7.5 |
) |
Other non-cash items |
|
(12.7 |
) |
|
|
2.1 |
|
Cash received from settlement of interest swap agreements |
|
16.4 |
|
|
|
23.6 |
|
Other operating |
|
(5.0 |
) |
|
|
— |
|
Net changes in operating working capital |
|
(19.8 |
) |
|
|
63.1 |
|
Net cash provided by operating activities of: |
|
|
|
||||
Continuing operations |
|
76.6 |
|
|
|
124.6 |
|
Discontinued operations |
|
30.0 |
|
|
|
77.6 |
|
Net cash provided by operations |
|
106.6 |
|
|
|
202.2 |
|
Investing |
|
|
|
||||
Capital spending |
|
(66.0 |
) |
|
|
(45.6 |
) |
Capitalized software costs |
|
(0.4 |
) |
|
|
(2.6 |
) |
Acquisitions, net of cash acquired |
|
— |
|
|
|
(462.5 |
) |
Proceeds from sale of assets |
|
— |
|
|
|
7.5 |
|
Cash received from settlement of cross-currency swap contracts |
|
— |
|
|
|
35.8 |
|
Other investing |
|
5.0 |
|
|
|
(1.9 |
) |
Net cash provided by (used in) investing of: |
|
|
|
||||
Continuing operations |
|
(61.4 |
) |
|
|
(469.3 |
) |
Discontinued operations |
|
608.6 |
|
|
|
(12.0 |
) |
Net cash provided by (used in) investing |
|
547.2 |
|
|
|
(481.3 |
) |
Financing |
|
|
|
||||
Cash dividends paid |
|
(55.3 |
) |
|
|
(72.2 |
) |
Proceeds from long-term debt |
|
241.0 |
|
|
|
774.9 |
|
Payments on long-term debt |
|
(834.6 |
) |
|
|
(340.6 |
) |
Payments for debt issuance costs |
|
(1.5 |
) |
|
|
(22.1 |
) |
Payments on financing lease obligations |
|
(1.0 |
) |
|
|
(0.6 |
) |
Purchases of common stock |
|
(10.6 |
) |
|
|
(6.9 |
) |
Net cash provided by (used in) financing of: |
|
|
|
||||
Continuing operations |
|
(662.0 |
) |
|
|
332.5 |
|
Discontinued operations |
|
(0.9 |
) |
|
|
(1.0 |
) |
Net cash provided by (used in) financing |
|
(662.9 |
) |
|
|
331.5 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
4.9 |
|
|
|
(2.7 |
) |
Increase (decrease) in cash and cash equivalents |
|
(4.2 |
) |
|
|
49.7 |
|
Cash and cash equivalents at beginning of period |
|
124.4 |
|
|
|
74.7 |
|
Cash and cash equivalents at end of period |
$ |
120.2 |
|
|
$ |
124.4 |
|
BUSINESS SEGMENT REPORTING FROM CONTINUING OPERATIONS
(in millions)
(Unaudited)
NOTE REGARDING SEGMENT REPORTING AND COMPARABILITY
On
Effective
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||
|
|
2023 |
|
|
2022 |
|
% Change |
|
|
2023 |
|
|
2022 |
|
% Change |
||
ATM |
$ |
362.0 |
|
$ |
409.1 |
|
(11.5 |
)% |
|
$ |
1,610.0 |
|
$ |
1,396.2 |
|
15.3 |
% |
|
|
90.3 |
|
|
115.3 |
|
(21.7 |
)% |
|
|
416.0 |
|
|
240.7 |
|
72.8 |
% |
Total Consolidated |
$ |
452.3 |
|
$ |
524.4 |
|
(13.7 |
)% |
|
$ |
2,026.0 |
|
$ |
1,636.9 |
|
23.8 |
% |
Operating Profit from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
|
|
|
|
|
Return on |
|
|
|
|
|
Return on |
||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
ATM |
$ |
24.6 |
|
|
$ |
27.6 |
|
|
6.8 |
% |
|
6.7 |
% |
|
$ |
(281.5 |
) |
|
$ |
98.8 |
|
|
(17.5 |
)% |
|
7.1 |
% |
|
|
5.7 |
|
|
|
5.8 |
|
|
6.3 |
% |
|
5.0 |
% |
|
|
4.6 |
|
|
|
15.0 |
|
|
1.1 |
% |
|
6.2 |
% |
Unallocated |
|
(32.5 |
) |
|
|
(31.4 |
) |
|
(7.2 |
)% |
|
(6.0 |
)% |
|
|
(137.0 |
) |
|
|
(154.0 |
) |
|
(6.8 |
)% |
|
(9.4 |
)% |
Total Consolidated |
$ |
(2.2 |
) |
|
$ |
2.0 |
|
|
(0.5 |
))% |
|
0.4 |
% |
|
$ |
(413.9 |
) |
|
$ |
(40.2 |
) |
|
(20.4 |
)% |
|
(2.5 |
)% |
Non-GAAP Adjustments to Operating Profit |
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
ATM - Amortization of intangibles and other purchase accounting adjustments |
$ |
14.5 |
|
|
$ |
18.1 |
|
|
$ |
50.4 |
|
|
$ |
56.4 |
|
ATM - Restructuring, impairment, and other expenses |
|
4.1 |
|
|
|
3.1 |
|
|
|
415.3 |
|
|
|
19.6 |
|
|
|
1.0 |
|
|
|
7.7 |
|
|
|
12.0 |
|
|
|
16.3 |
|
|
|
0.3 |
|
|
|
(0.4 |
) |
|
|
10.6 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
(1.0 |
) |
|
|
— |
|
|
|
(0.9 |
) |
|
|
— |
|
Unallocated - Restructuring, impairment, and other expenses |
|
0.4 |
|
|
|
0.4 |
|
|
|
1.5 |
|
|
|
5.6 |
|
Unallocated - Acquisition/Merger and integration costs |
|
3.7 |
|
|
|
8.5 |
|
|
|
32.4 |
|
|
|
68.9 |
|
Unallocated - Divestiture costs |
|
6.0 |
|
|
|
— |
|
|
|
11.2 |
|
|
|
— |
|
Unallocated - Financing fees(1) |
|
2.1 |
|
|
|
— |
|
|
|
4.5 |
|
|
|
— |
|
Total Consolidated |
$ |
31.1 |
|
|
$ |
37.4 |
|
|
$ |
537.0 |
|
|
$ |
167.8 |
|
(1) Financing fees incurred for the Receivables Sales Agreement during Q3 and Q4 of 2023. |
Adjusted Operating Profit from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
|
|
|
|
|
Return on |
|
|
|
|
|
Return on |
||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
ATM |
$ |
43.2 |
|
|
$ |
48.8 |
|
|
11.9 |
% |
|
11.9 |
% |
|
$ |
184.2 |
|
|
$ |
174.8 |
|
|
11.4 |
% |
|
12.5 |
% |
|
|
6.0 |
|
|
|
13.1 |
|
|
6.6 |
% |
|
11.4 |
% |
|
|
26.3 |
|
|
|
32.3 |
|
|
6.3 |
% |
|
13.4 |
% |
Unallocated |
|
(20.3 |
) |
|
|
(22.5 |
) |
|
(4.5 |
)% |
|
(4.3 |
)% |
|
|
(87.4 |
) |
|
|
(79.5 |
) |
|
(4.3 |
)% |
|
(4.9 |
)% |
Total Consolidated |
$ |
28.9 |
|
|
$ |
39.4 |
|
|
6.4 |
% |
|
7.5 |
% |
|
$ |
123.1 |
|
|
$ |
127.6 |
|
|
6.1 |
% |
|
7.8 |
% |
Non-GAAP Adjustments to Adjusted Operating Profit |
|
|
|
|
|
|
|
||||
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
ATM - Depreciation and stock-based compensation |
$ |
12.7 |
|
$ |
12.8 |
|
$ |
52.3 |
|
$ |
40.6 |
|
|
7.1 |
|
|
7.0 |
|
|
30.5 |
|
|
13.9 |
Unallocated - Depreciation and stock-based compensation |
|
1.3 |
|
|
3.1 |
|
|
7.5 |
|
|
11.1 |
Total Consolidated |
$ |
21.1 |
|
$ |
22.9 |
|
$ |
90.3 |
|
$ |
65.6 |
Adjusted EBITDA from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
|
|
|
|
|
Return on |
|
|
|
|
|
Return on |
||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
ATM |
$ |
55.9 |
|
|
$ |
61.6 |
|
|
15.4 |
% |
|
15.1 |
% |
|
$ |
236.5 |
|
|
$ |
215.4 |
|
|
14.7 |
% |
|
15.4 |
% |
|
|
13.1 |
|
|
|
20.1 |
|
|
14.5 |
% |
|
17.4 |
% |
|
|
56.8 |
|
|
|
46.2 |
|
|
13.7 |
% |
|
19.2 |
% |
Unallocated |
|
(19.0 |
) |
|
|
(19.4 |
) |
|
(4.2 |
)% |
|
(3.7 |
))% |
|
|
(79.9 |
) |
|
|
(68.4 |
) |
|
(3.9 |
)% |
|
(4.2 |
)% |
Total Consolidated |
$ |
50.0 |
|
|
$ |
62.3 |
|
|
11.1 |
% |
|
11.9 |
% |
|
$ |
213.4 |
|
|
$ |
193.2 |
|
|
10.5 |
% |
|
11.8 |
% |
Non-GAAP Reconciliation of Organic Net Sales Growth |
|||||||||||
|
|
|
|
|
|
||||||
|
Advanced Technical
|
|
Fiber-Based
|
|
Consolidated |
||||||
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
||||||
|
$ |
409.1 |
|
|
$ |
115.3 |
|
|
$ |
524.4 |
|
Divestiture/closure adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
409.1 |
|
|
$ |
115.3 |
|
|
$ |
524.4 |
|
|
|
|
|
|
|
||||||
|
$ |
362.0 |
|
|
$ |
90.3 |
|
|
$ |
452.3 |
|
Divestiture/closure adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
362.0 |
|
|
$ |
90.3 |
|
|
$ |
452.3 |
|
Organic growth |
|
(11.5 |
)% |
|
|
(21.7 |
)% |
|
|
(13.7 |
)% |
|
|
|
|
|
|
||||||
Currency effects on 2023 |
$ |
6.3 |
|
|
$ |
1.0 |
|
|
$ |
7.3 |
|
|
$ |
355.7 |
|
|
$ |
89.3 |
|
|
$ |
445.0 |
|
Organic constant currency growth |
|
(13.1 |
)% |
|
|
(22.5 |
)% |
|
|
(15.1 |
)% |
|
|
|
|||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA |
|
|
|||||||||||||
(in millions, except per share amounts) |
|
|
|||||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating profit (loss) from continuing operations |
$ |
(2.2 |
) |
|
$ |
2.0 |
|
|
$ |
(413.9 |
) |
|
$ |
(40.2 |
) |
Plus: Restructuring and other impairment related expenses |
|
4.8 |
|
|
|
3.1 |
|
|
|
26.4 |
|
|
|
20.6 |
|
Plus: |
|
— |
|
|
|
— |
|
|
|
401.0 |
|
|
|
— |
|
Plus: Purchase accounting adjustments |
|
15.5 |
|
|
|
25.8 |
|
|
|
62.4 |
|
|
|
72.7 |
|
Plus: Acquisition/merger and integration related costs |
|
3.7 |
|
|
|
8.5 |
|
|
|
32.4 |
|
|
|
68.8 |
|
Plus: Divestiture costs |
|
5.0 |
|
|
|
— |
|
|
|
10.3 |
|
|
|
— |
|
Plus: Cybersecurity expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.7 |
|
Plus: Financing fees |
|
2.1 |
|
|
|
— |
|
|
|
4.5 |
|
|
|
— |
|
Adjusted Operating Profit from continuing operations |
$ |
28.9 |
|
|
$ |
39.4 |
|
|
$ |
123.1 |
|
|
$ |
127.6 |
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations |
$ |
(13.6 |
) |
|
$ |
(2.5 |
) |
|
$ |
(507.7 |
) |
|
$ |
(68.9 |
) |
Plus: Restructuring and other impairment expenses |
|
5.0 |
|
|
$ |
1.8 |
|
|
|
22.6 |
|
|
|
19.1 |
|
Less: Tax impact of restructuring and other impairment expense |
|
(1.1 |
) |
|
$ |
(0.5 |
) |
|
|
(3.0 |
) |
|
|
(4.2 |
) |
Plus: |
|
— |
|
|
$ |
— |
|
|
|
401.0 |
|
|
|
— |
|
Less: Tax impact of goodwill impairment |
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
— |
|
Less: Gain (loss) on sale of assets |
|
0.1 |
|
|
$ |
— |
|
|
|
0.1 |
|
|
|
(2.9 |
) |
Plus: Tax impact on gain on sale of assets |
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
0.8 |
|
Plus: Other restructuring related expenses |
|
(0.5 |
) |
|
$ |
1.5 |
|
|
|
3.7 |
|
|
|
1.5 |
|
Less: Tax impact of other restructuring related expenses |
|
0.1 |
|
|
$ |
(0.3 |
) |
|
|
(0.9 |
) |
|
|
(0.3 |
) |
Plus: Purchase accounting adjustments |
|
15.5 |
|
|
$ |
25.8 |
|
|
|
62.4 |
|
|
|
72.7 |
|
Less: Tax impact of purchase accounting adjustments |
|
(3.4 |
) |
|
$ |
(5.9 |
) |
|
|
(13.6 |
) |
|
|
(16.3 |
) |
Less: Litigation/tax settlement |
|
— |
|
|
$ |
— |
|
|
|
4.9 |
|
|
|
— |
|
Plus: Tax impact of litigation/tax settlement |
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
— |
|
Plus: Cybersecurity expenses |
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
5.7 |
|
Less: Tax impact of cybersecurity expenses |
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
(1.3 |
) |
Plus: Acquisition/merger and integration related costs |
|
3.7 |
|
|
$ |
8.7 |
|
|
|
32.9 |
|
|
|
72.3 |
|
Less: Tax impact on acquisition/merger and integration related costs |
|
(1.0 |
) |
|
$ |
(0.7 |
) |
|
|
(7.8 |
) |
|
|
(10.7 |
) |
Plus: Divestiture costs |
|
5.0 |
|
|
$ |
— |
|
|
|
10.3 |
|
|
|
0.4 |
|
Less: Tax impact of divestiture costs |
|
(1.0 |
) |
|
$ |
(0.1 |
) |
|
|
(2.3 |
) |
|
|
(0.1 |
) |
Less: Luxembourg valuation allowance release |
|
0.9 |
|
|
$ |
— |
|
|
|
32.6 |
|
|
|
— |
|
Plus: Reversal of valuation allowance on prior year tax credits |
|
— |
|
|
$ |
— |
|
|
|
6.4 |
|
|
|
— |
|
Plus: Tax legislative changes, net of other discrete items |
|
3.5 |
|
|
$ |
(0.8 |
) |
|
|
5.7 |
|
|
|
(1.9 |
) |
Adjusted Income from continuing operations |
$ |
13.2 |
|
|
$ |
27.0 |
|
|
$ |
47.3 |
|
|
$ |
65.9 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA |
|
|
|||||||||||||
(in millions, except per share amounts) |
|
|
|||||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Loss per share from continuing operations - diluted |
$ |
(0.25 |
) |
|
$ |
(0.05 |
) |
|
$ |
(9.33 |
) |
|
$ |
(1.64 |
) |
Plus: Restructuring and other impairment related expenses |
|
0.09 |
|
|
|
0.03 |
|
|
|
0.41 |
|
|
|
0.45 |
|
Less: Tax impact of restructuring and other impairment expense |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.05 |
) |
|
|
(0.10 |
) |
Plus: |
|
— |
|
|
|
— |
|
|
|
7.32 |
|
|
|
— |
|
Less: Tax impact of goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
Plus: Tax impact on gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Plus: Other restructuring related expenses |
|
(0.01 |
) |
|
|
0.03 |
|
|
|
0.07 |
|
|
|
0.04 |
|
Less: Tax impact of other restructuring related expenses |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
Plus: Purchase accounting adjustments |
|
0.28 |
|
|
|
0.47 |
|
|
|
1.14 |
|
|
|
1.71 |
|
Less: Tax impact of purchase accounting adjustment |
|
(0.06 |
) |
|
|
(0.11 |
) |
|
|
(0.25 |
) |
|
|
(0.38 |
) |
Less: Litigation/tax settlement |
|
— |
|
|
|
— |
|
|
|
0.09 |
|
|
|
— |
|
Plus: Tax impact of litigation/tax settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Plus: Cybersecurity expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.13 |
|
Less: Tax impact of cybersecurity expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
Plus: Acquisition/merger and integration related costs |
|
0.07 |
|
|
|
0.16 |
|
|
|
0.60 |
|
|
|
1.70 |
|
Less: Tax impact on acquisition/merger and integration related costs |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.14 |
) |
|
|
(0.25 |
) |
Plus: Divestiture costs |
|
0.09 |
|
|
|
— |
|
|
|
0.19 |
|
|
|
0.01 |
|
Less: Tax impact of divestiture costs |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
— |
|
Less: Luxembourg valuation allowance release |
|
0.02 |
|
|
|
— |
|
|
|
0.59 |
|
|
|
— |
|
Plus: Reversal of valuation allowance on prior year tax credits |
|
— |
|
|
|
— |
|
|
|
0.12 |
|
|
|
— |
|
Plus: Tax legislative changes, net of other discrete items |
|
0.06 |
|
|
|
(0.01 |
) |
|
|
0.10 |
|
|
|
(0.04 |
) |
Adjusted Earnings Per Share from continuing operations - diluted |
$ |
0.23 |
|
|
$ |
0.49 |
|
|
$ |
0.80 |
|
|
$ |
1.54 |
|
|
|
|
|||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA |
|
|
|||||||||||||
(in millions, except per share amounts) |
|
|
|||||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net Loss from continuing operations |
$ |
(13.6 |
) |
|
$ |
(2.5 |
) |
|
$ |
(507.7 |
) |
|
$ |
(68.9 |
) |
Plus: Interest expense |
|
13.4 |
|
|
|
13.6 |
|
|
|
62.2 |
|
|
|
57.3 |
|
Plus: Financing fees |
|
2.1 |
|
|
|
— |
|
|
|
4.5 |
|
|
|
— |
|
Plus: Provision for income taxes |
|
(3.2 |
) |
|
|
(13.2 |
) |
|
|
26.8 |
|
|
|
(27.6 |
) |
Plus: Depreciation & amortization |
|
36.1 |
|
|
|
37.3 |
|
|
|
146.6 |
|
|
|
109.8 |
|
Plus: Stock compensation expense |
|
0.9 |
|
|
|
2.3 |
|
|
|
4.9 |
|
|
|
9.5 |
|
Plus: Inventory step up expense |
|
— |
|
|
|
9.3 |
|
|
|
1.4 |
|
|
|
19.3 |
|
Plus: Restructuring and impairment expense |
|
5.0 |
|
|
|
1.8 |
|
|
|
22.6 |
|
|
|
19.1 |
|
Plus: |
|
— |
|
|
|
— |
|
|
|
401.0 |
|
|
|
— |
|
Plus: Other restructuring related expense |
|
(0.5 |
) |
|
|
1.2 |
|
|
|
3.7 |
|
|
|
1.2 |
|
Plus: Cybersecurity expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.7 |
|
Plus: Acquisition/merger and integration related costs |
|
3.7 |
|
|
|
8.4 |
|
|
|
32.4 |
|
|
|
68.9 |
|
Plus: Divestiture costs |
|
4.9 |
|
|
|
— |
|
|
|
10.2 |
|
|
|
— |
|
Plus: Litigation/tax settlement |
|
— |
|
|
|
— |
|
|
|
4.9 |
|
|
|
— |
|
Plus: Other income, net |
|
1.2 |
|
|
|
4.1 |
|
|
|
(0.1 |
) |
|
|
(1.1 |
) |
Adjusted EBITDA from continuing operations |
$ |
50.0 |
|
|
$ |
62.3 |
|
|
$ |
213.4 |
|
|
$ |
193.2 |
|
|
|
|
|
|
|
|
|
||||||||
Cash provided by operating activities of continuing operations |
$ |
38.8 |
|
|
$ |
169.2 |
|
|
$ |
76.6 |
|
|
$ |
124.6 |
|
Less: Capital spending |
|
(16.6 |
) |
|
|
(18.5 |
) |
|
|
(66.0 |
) |
|
|
(45.6 |
) |
Less: Capitalized software costs |
|
0.1 |
|
|
|
(0.5 |
) |
|
|
(0.4 |
) |
|
|
(2.6 |
) |
Free Cash Flow from continuing operations |
$ |
22.3 |
|
|
$ |
150.2 |
|
|
$ |
10.2 |
|
|
$ |
76.4 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
December
|
|
December
|
||||||||
Total Debt |
|
|
|
|
$ |
1,104.6 |
|
|
$ |
1,690.0 |
|
||||
Less: Cash |
|
|
|
|
|
120.2 |
|
|
|
101.1 |
|
||||
Net Debt from continuing operations |
|
|
|
|
$ |
984.4 |
|
|
$ |
1,588.9 |
|
Non-GAAP Reconciliation of Continuing Operations for Comparability |
|
|
|
|
|||||||||||
(in millions) (Unaudited) |
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
||||||||||||||
|
|
|
|
||||||||||||
|
Legacy |
|
Adjustments(1) |
|
|
|
|
||||||||
Advanced |
|
|
|
|
|
|
|
||||||||
|
$ |
409.1 |
|
|
$ |
— |
|
|
$ |
409.1 |
|
|
$ |
362.0 |
|
GAAP Operating Profit |
|
27.6 |
|
|
|
— |
|
|
|
27.6 |
|
|
|
24.6 |
|
Amortization of intangibles and other purchase accounting adjustments |
|
18.1 |
|
|
|
— |
|
|
|
18.1 |
|
|
|
14.5 |
|
Restructuring, impairment, and other expenses |
|
3.1 |
|
|
|
— |
|
|
|
3.1 |
|
|
|
4.1 |
|
Adjusted Operating Profit |
$ |
48.8 |
|
|
$ |
— |
|
|
$ |
48.8 |
|
|
$ |
43.2 |
|
Adjusted Operating Profit Margin |
|
11.9 |
% |
|
|
N/A |
|
|
|
11.9 |
% |
|
|
11.9 |
% |
Depreciation and stock-based compensation expense (2) |
|
12.8 |
|
|
|
— |
|
|
|
12.8 |
|
|
|
12.7 |
|
Adjusted EBITDA |
$ |
61.6 |
|
|
$ |
— |
|
|
$ |
61.6 |
|
|
$ |
55.9 |
|
Adjusted EBITDA Margin |
|
15.1 |
% |
|
|
N/A |
|
|
|
15.1 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
||||||||
Fiber-Based Solutions (FBS) |
|
|
|
|
|
|
|
||||||||
|
$ |
251.0 |
|
|
$ |
(135.7 |
) |
|
$ |
115.3 |
|
|
$ |
90.3 |
|
GAAP Operating Profit |
|
30.7 |
|
|
|
(24.9 |
) |
|
|
5.8 |
|
|
|
5.7 |
|
Amortization of intangibles and other purchase accounting adjustments |
|
7.7 |
|
|
|
— |
|
|
|
7.7 |
|
|
|
1.0 |
|
Restructuring, impairment, and other expenses |
|
(0.4 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
0.3 |
|
Divestiture costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
Adjusted Operating Profit |
$ |
38.0 |
|
|
$ |
(24.9 |
) |
|
$ |
13.1 |
|
|
$ |
6.0 |
|
Adjusted Operating Profit Margin |
|
15.1 |
% |
|
|
N/A |
|
|
|
11.4 |
% |
|
|
6.6 |
% |
Depreciation and stock-based compensation expense (2) |
|
12.2 |
|
|
|
(5.2 |
) |
|
|
7.0 |
|
|
|
7.1 |
|
Adjusted EBITDA |
$ |
50.2 |
|
|
$ |
(30.1 |
) |
|
$ |
20.1 |
|
|
$ |
13.1 |
|
Adjusted EBITDA Margin |
|
20.0 |
% |
|
|
N/A |
|
|
|
17.4 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Reconciliation of Continuing Operations for Comparability |
|
|
|
|
|||||||||||
(in millions) (Unaudited) |
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
||||||||||||||
|
|
|
|
||||||||||||
|
Legacy |
|
Adjustments(1) |
|
|
|
|
||||||||
Corporate Unallocated |
|
|
|
|
|
|
|
||||||||
GAAP Operating Loss |
$ |
(31.4 |
) |
|
$ |
— |
|
|
$ |
(31.4 |
) |
|
$ |
(32.5 |
) |
Restructuring, impairment, and other expenses |
|
0.4 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
0.4 |
|
Acquisition/Merger and integration costs |
|
8.5 |
|
|
|
— |
|
|
|
8.5 |
|
|
|
3.7 |
|
Divestiture costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.0 |
|
Financing fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.1 |
|
Adjusted Operating Loss |
$ |
(22.5 |
) |
|
$ |
— |
|
|
$ |
(22.5 |
) |
|
$ |
(20.3 |
) |
% of total |
|
(3.4 |
)% |
|
|
N/A |
|
|
|
(4.3 |
)% |
|
|
(4.5 |
)% |
Depreciation and stock-based compensation expense (2) |
|
3.1 |
|
|
|
— |
|
|
|
3.1 |
|
|
|
1.3 |
|
Adjusted EBITDA |
$ |
(19.4 |
) |
|
$ |
— |
|
|
$ |
(19.4 |
) |
|
$ |
(19.0 |
) |
% of total |
|
(2.9 |
)% |
|
|
N/A |
|
|
|
(3.7 |
)% |
|
|
(4.2 |
)% |
|
|
|
|
|
|
|
|
||||||||
Consolidated |
|
|
|
|
|
|
|
||||||||
|
$ |
660.1 |
|
|
$ |
(135.7 |
) |
|
$ |
524.4 |
|
|
$ |
452.3 |
|
GAAP Operating Profit |
|
26.9 |
|
|
|
(24.9 |
) |
|
|
2.0 |
|
|
|
(2.2 |
) |
Amortization of intangibles and other purchase accounting adjustments |
|
25.8 |
|
|
|
— |
|
|
|
25.8 |
|
|
|
15.5 |
|
Restructuring, impairment, and other expenses |
|
3.1 |
|
|
|
— |
|
|
|
3.1 |
|
|
|
4.8 |
|
Acquisition/Merger and integration costs |
|
8.5 |
|
|
|
— |
|
|
|
8.5 |
|
|
|
3.7 |
|
Divestiture costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.0 |
|
Financing fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.1 |
|
Adjusted Operating Profit |
$ |
64.3 |
|
|
$ |
(24.9 |
) |
|
$ |
39.4 |
|
|
$ |
28.9 |
|
Adjusted Operating Profit Margin |
|
9.7 |
% |
|
|
N/A |
|
|
|
7.5 |
% |
|
|
6.4 |
% |
Depreciation and stock-based compensation expense (2) |
|
28.1 |
|
|
|
(5.2 |
) |
|
|
22.9 |
|
|
|
21.1 |
|
Adjusted EBITDA |
$ |
92.4 |
|
|
$ |
(30.1 |
) |
|
$ |
62.3 |
|
|
$ |
50.0 |
|
Adjusted EBITDA Margin |
|
14.0 |
% |
|
|
N/A |
|
|
|
11.9 |
% |
|
|
11.1 |
% |
(1) On |
|||||||||||||||
(2) Depreciation and stock-based compensation excludes stock-based compensation included in acquisition/merger and integration costs. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221497218/en/
Director, Investor Relations
+1-770-569-4229
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