- Second quarter sales grew to $850
million, a 3% increase over the prior year quarter and a 5%
organic increase when excluding the impact of foreign
exchange
- Second quarter GAAP EPS from continuing operations of
$0.36 compared to $0.24 in the prior year quarter
- Second quarter adjusted EPS of $0.76 exceeded guidance of $0.71 and increased 21% over prior year quarter,
driven by organic revenue growth in all regions, favorable input
costs and lower interest expense
- Increasing 2024 full-year adjusted EPS guidance range to
$2.55 to $2.70, from prior guidance of $2.50 to $2.65
given strong second quarter results; Revised guidance reflects 8%
to 14% growth in adjusted EPS over the prior year
- 2023 Sustainability Report published online, detailing
progress toward 2030 Sustainability Goals and ESG performance
ratings
- Investor Day to be held December
4th in New York
City to highlight the company strategy
CLEVELAND, Aug. 6, 2024
/PRNewswire/ -- Avient Corporation (NYSE: AVNT), a leading provider
of specialized and sustainable materials solutions, today announced
its second quarter 2024 results. The company reported second
quarter sales of $849.7 million
compared to $824.4 million in the
prior year quarter.
Second quarter GAAP earnings per share (EPS) from continuing
operations was $0.36 compared to
$0.24 in the prior year quarter. The
company noted that second quarter 2024 GAAP EPS includes
$0.24 of special items (see
Attachment 3) and $0.16 of intangible
amortization expense (see Attachment 1). Second quarter 2024
adjusted EPS was $0.76 compared to
$0.63 in the prior year.
"Building on the positive start to the year, we delivered a
strong second quarter, highlighted by broad-based growth across all
regions and most end markets," said Dr. Ashish Khandpur, President and Chief Executive
Officer of Avient Corporation. "Consolidated sales expanded for the
first time in seven quarters with contributions from both our
Color, Additives and Inks, and Specialty Engineered Materials
segments. This performance reflects our team's focus to capitalize
on growth opportunities across the many end markets we serve, with
particular success this quarter in packaging and consumer, our two
largest end markets."
Dr. Khandpur added, "On a geographic basis, all regions
delivered year-over-year organic sales growth. The US and
Canada grew organic sales 5% and
Latin America had a strong quarter
growing organic sales by 19%. Growth in the Americas was driven by
improving underlying demand trends, as well as winning new
specifications and gaining share in markets supported by secular
trends. We also generated 4% and 1% organic sales growth in EMEA
and Asia, respectively.
Europe and Asia regions benefited largely from restocking
and share gains, particularly in the packaging end market."
2024 Outlook
"Looking ahead to the third quarter, we expect adjusted EPS of
$0.62, a 9% increase over the prior
year," said Jamie Beggs, Senior Vice
President and Chief Financial Officer of Avient Corporation. "We
anticipate continued year-over-year organic sales growth, with both
segments growing earnings."
Ms. Beggs continued, "Our demand outlook for the second half of
the year remains largely unchanged from our previous outlook in
May, so we are updating our full-year guidance to reflect the
strong second quarter results. Accordingly, our revised full-year
guidance for adjusted EBITDA is now $515
million to $540 million, from
our previous range of $510 million to
$535 million. Our revised range for
adjusted EPS is between $2.55 to
$2.70, from our previous range of
$2.50 to $2.65."
"I'm pleased with how we have delivered during the first half of
the year," added Dr. Khandpur. "As we look to the second half, we
expect growth momentum to continue with our teams focused on
providing innovative materials and processing solutions to solve
our customers' challenges to enable a sustainable world. I look
forward to sharing more details in our third quarter earnings call
and at our upcoming investor day in New
York City on December
4th."
Sustainability Report Release
The company also announced the release of its latest
Sustainability Report, now available at
www.avient.com/sustainability.
The report provides an update on Avient's contributions and
impact in creating a more sustainable future, including progress
that the company has made towards its 2030 goals.
"We're extremely proud to share our latest achievements in this
year's report, particularly our upgraded ratings by Ecovadis to
Gold and by CDP to A-. Sustainability is a responsibility we have
to all of our stakeholders, and it is a growth driver for our
company as we enable our customers to achieve their sustainability
goals, ultimately creating value for our shareholders," explained
Ms. Beggs.
Webcast Details
Avient will provide additional details on its 2024 second
quarter and 2024 full-year outlook during its webcast scheduled for
8:00 a.m. Eastern Time on
August 6, 2024.
The webcast can be viewed live at avient.com/investors, or by
clicking on the webcast link here. Conference call
participants in the question and answer session should pre-register
using the link at avient.com/investors, or here, to receive the
dial-in numbers and personal PIN. This information is required to
access the conference call. The question and answer session will
follow the company's presentation and prepared remarks.
A recording of the webcast and the slide presentation will be
available at
avient.com/investors/events-presentations immediately
following the conference call and will be accessible for one
year.
Non-GAAP Financial Measures
The Company uses both GAAP (generally accepted accounting
principles) and non-GAAP financial measures. The non-GAAP financial
measures include adjusted EPS, adjusted operating income, adjusted
EBITDA and adjusted EBITDA margins. Avient's chief operating
decision maker uses these financial measures to monitor and
evaluate the ongoing performance of the Company and each business
segment and to allocate resources.
The Company does not provide reconciliations of forward-looking
non-GAAP financial measures, such as adjusted EPS and adjusted
EBITDA, to the most comparable GAAP financial measures on a
forward-looking basis because the Company is unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and amount of certain items, such as, but not limited to,
environmental remediation costs, mark-to-market adjustments
associated with benefit plans, acquisition related costs, and other
non-routine costs. Each of such adjustments has not yet occurred,
are out of the Company's control and/or cannot be reasonably
predicted. For the same reasons, the Company is unable to address
the probable significance of the unavailable information.
To access Avient's news library online, please visit
www.avient.com/news-events.
About Avient
Avient Corporation (NYSE: AVNT) provides specialized and
sustainable materials solutions that transform customer challenges
into opportunities, bringing new products to life for a better
world. Examples include:
- Dyneema®, the world's strongest fiber™, enables unmatched
levels of performance and protection for end-use applications,
including ballistic personal protection, marine and sustainable
infrastructure and outdoor sports
- Unique technologies that improve the recyclability of products
and enable recycled content to be incorporated, thus advancing a
more circular economy
- Light-weighting solutions that replace heavier traditional
materials like metal, glass and wood, which can improve fuel
efficiency in all modes of transportation and reduce carbon
footprint
- Sustainable infrastructure solutions that increase energy
efficiency, renewable energy, natural resource conservation and
fiber optic / 5G network accessibility
Avient is certified ACC Responsible Care®, a founding member of
the Alliance to End Plastic Waste and certified Great Place to
Work®. For more information, visit https://www.avient.com/.
Forward-looking Statements
In this press release, statements that are not reported
financial results or other historical information are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
and are not guarantees of future performance. They are based on
management's expectations that involve a number of business risks
and uncertainties, any of which could cause actual results to
differ materially from those expressed in or implied by the
forward-looking statements. They use words such as "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," and other words and terms of similar meaning in
connection with any discussion of future operating or financial
condition, performance and/or sales. Factors that could cause
actual results to differ materially from those implied by these
forward-looking statements include, but are not limited to:
disruptions, uncertainty or volatility in the credit markets that
could adversely impact the availability of credit already arranged
and the availability and cost of credit in the future; the effect
on foreign operations of currency fluctuations, tariffs and other
political, economic and regulatory risks; disruptions or
inefficiencies in our supply chain, logistics, or operations;
changes in laws and regulations in jurisdictions where we conduct
business, including with respect to plastics and climate change;
fluctuations in raw material prices, quality and supply, and in
energy prices and supply; demand for our products and services;
production outages or material costs associated with scheduled or
unscheduled maintenance programs; unanticipated developments that
could occur with respect to contingencies such as litigation and
environmental matters; our ability to pay regular quarterly cash
dividends and the amounts and timing of any future dividends;
information systems failures and cyberattacks; amounts for cash and
non-cash charges related to restructuring plans that may differ
from original estimates, including because of timing changes
associated with the underlying actions; our ability to achieve
strategic objectives and successfully integrate acquisitions,
including the implementation of a cloud-based enterprise resource
planning system, S/4HANA; and other factors affecting our business
beyond our control, including without limitation, changes in the
general economy, changes in interest rates, changes in the rate of
inflation, geopolitical conflicts and any recessionary conditions.
The above list of factors is not exhaustive.
Any forward-looking statement speaks only as of the date on
which such statement is made, and we undertake no obligation to
publicly update forward-looking statements, whether as a result of
new information, future events or otherwise. You are advised to
consult any further disclosures we make on related subjects in our
reports on Form 10-Q, 8-K and 10-K that we provide to the
Securities and Exchange Commission.
|
Attachment
1
|
|
Avient
Corporation
|
|
Summary of Condensed
Consolidated Statements of Income (Unaudited)
|
|
(In millions, except
per share data)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Sales
|
$
849.7
|
|
$
824.4
|
|
$
1,678.7
|
|
$
1,670.1
|
|
Operating
Income
|
72.5
|
|
62.3
|
|
166.5
|
|
119.4
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
33.6
|
|
22.1
|
|
83.0
|
|
42.9
|
|
Diluted earnings per
share from continuing operations attributable to Avient
shareholders
|
$
0.36
|
|
$
0.24
|
|
$
0.90
|
|
$
0.47
|
|
|
Senior management uses
comparisons of adjusted net income from continuing operations
attributable to Avient shareholders and diluted adjusted
earnings per share (EPS) from continuing operations attributable to
Avient shareholders, excluding special items, to assess performance
and facilitate comparability of results. Further, as a result of
Avient's portfolio shift to a pure play specialty formulator, it
has completed several acquisitions and divestitures which have
resulted in a significant amount of intangible asset amortization.
Management excludes intangible asset amortization from adjusted EPS
as it believes excluding acquired intangible asset amortization is
a useful measure of current period earnings per share. Senior
management believes these measures are useful to investors because
they allow for comparison to Avient's performance in prior periods
without the effect of items that, by their nature, tend to obscure
Avient's operating results due to the potential variability across
periods based on timing, frequency and magnitude. Non-GAAP
financial measures have limitations as analytical tools and should
not be considered in isolation from, or solely as alternatives to,
financial measures prepared in accordance with GAAP. Below is a
reconciliation of these non-GAAP financial measures to their most
directly comparable financial measures calculated and presented in
accordance with GAAP. See Attachment 3 for a definition and
summary of special items.
|
|
|
Three Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS
|
|
$
|
|
EPS
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
33.6
|
|
$
0.36
|
|
$
22.1
|
|
$
0.24
|
|
Special items,
after-tax (Attachment 3)
|
21.8
|
|
0.24
|
|
19.6
|
|
0.21
|
|
Amortization expense,
after-tax
|
14.8
|
|
0.16
|
|
16.2
|
|
0.18
|
|
Adjusted net income /
EPS
|
$
70.2
|
|
$
0.76
|
|
$
57.9
|
|
$
0.63
|
|
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS
|
|
$
|
|
EPS
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
83.0
|
|
$
0.90
|
|
$
42.9
|
|
$
0.47
|
|
Special items,
after-tax (Attachment 3)
|
27.3
|
|
0.30
|
|
41.9
|
|
0.46
|
|
Amortization expense,
after-tax
|
29.7
|
|
0.32
|
|
31.3
|
|
0.34
|
|
Adjusted net income /
EPS
|
$
140.0
|
|
$
1.52
|
|
$
116.1
|
|
$
1.27
|
|
Attachment
2
|
|
Avient
Corporation
|
|
Condensed
Consolidated Statements of Income (Unaudited)
|
|
(In millions, except
per share data)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Sales
|
$
849.7
|
|
$
824.4
|
|
$
1,678.7
|
|
$
1,670.1
|
|
Cost of
sales
|
592.1
|
|
583.7
|
|
1,142.9
|
|
1,181.8
|
|
Gross margin
|
257.6
|
|
240.7
|
|
535.8
|
|
488.3
|
|
Selling and
administrative expense
|
185.1
|
|
178.4
|
|
369.3
|
|
368.9
|
|
Operating
income
|
72.5
|
|
62.3
|
|
166.5
|
|
119.4
|
|
Interest expense,
net
|
(26.6)
|
|
(29.4)
|
|
(53.2)
|
|
(58.2)
|
|
Other (expense) income,
net
|
(0.9)
|
|
(0.2)
|
|
(1.8)
|
|
0.5
|
|
Income from continuing
operations before income taxes
|
45.0
|
|
32.7
|
|
111.5
|
|
61.7
|
|
Income tax
expense
|
(11.2)
|
|
(10.4)
|
|
(28.0)
|
|
(18.1)
|
|
Net income from
continuing operations
|
33.8
|
|
22.3
|
|
83.5
|
|
43.6
|
|
Loss from discontinued
operations, net of income taxes
|
—
|
|
—
|
|
—
|
|
(0.9)
|
|
Net income
|
$
33.8
|
|
$
22.3
|
|
$
83.5
|
|
$
42.7
|
|
Net income attributable
to noncontrolling interests
|
(0.2)
|
|
(0.2)
|
|
(0.5)
|
|
(0.7)
|
|
Net income attributable
to Avient common shareholders
|
$
33.6
|
|
$
22.1
|
|
$
83.0
|
|
$
42.0
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Avient common shareholders -
Basic:
|
|
|
|
|
|
Continuing
operations
|
$
0.37
|
|
$
0.24
|
|
$
0.91
|
|
$
0.47
|
|
Discontinued
operations
|
—
|
|
—
|
|
—
|
|
(0.01)
|
|
Total
|
$
0.37
|
|
$
0.24
|
|
$
0.91
|
|
$
0.46
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Avient common shareholders -
Diluted:
|
|
|
|
|
|
Continuing
operations
|
$
0.36
|
|
$
0.24
|
|
$
0.90
|
|
$
0.47
|
|
Discontinued
operations
|
—
|
|
—
|
|
—
|
|
(0.01)
|
|
Total
|
$
0.36
|
|
$
0.24
|
|
$
0.90
|
|
$
0.46
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share of common stock
|
$
0.2575
|
|
$
0.2475
|
|
$
0.5150
|
|
$
0.4950
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used to compute earnings per common share:
|
|
|
|
|
|
|
|
|
Basic
|
91.3
|
|
91.1
|
|
91.3
|
|
91.1
|
|
Diluted
|
92.2
|
|
91.9
|
|
92.0
|
|
91.9
|
|
Attachment
3
|
|
Avient
Corporation
|
|
Summary of Special
Items (Unaudited)
|
|
(In millions, except
per share data)
|
|
|
Special items
(1)
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Restructuring costs,
including accelerated depreciation
|
$
0.2
|
|
$
(1.2)
|
|
$
3.8
|
|
$
(7.8)
|
|
Environmental
remediation costs
|
(21.8)
|
|
(13.0)
|
|
(25.8)
|
|
(14.4)
|
|
Impact on cost of
sales
|
(21.6)
|
|
(14.2)
|
|
(22.0)
|
|
(22.2)
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
|
|
|
|
|
Restructuring and
employee separation costs
|
(2.8)
|
|
(0.5)
|
|
(3.5)
|
|
(11.9)
|
|
Legal and
other
|
(2.3)
|
|
(6.4)
|
|
(5.8)
|
|
(10.6)
|
|
Acquisition related
costs
|
(0.5)
|
|
(0.7)
|
|
(2.1)
|
|
(4.2)
|
|
Impact on selling and
administrative expense
|
(5.6)
|
|
(7.6)
|
|
(11.4)
|
|
(26.7)
|
|
|
|
|
|
|
|
|
|
Impact on operating
income
|
(27.2)
|
|
(21.8)
|
|
(33.4)
|
|
(48.9)
|
|
|
|
|
|
|
|
|
|
Interest expense, net
- financing costs
|
(1.0)
|
|
—
|
|
(1.0)
|
|
—
|
|
|
|
|
|
|
|
|
|
Other income
(loss)
|
0.1
|
|
0.1
|
|
0.1
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Impact on income from
continuing operations before income taxes
|
(28.1)
|
|
(21.7)
|
|
(34.3)
|
|
(49.0)
|
|
Income tax benefit on
above special items
|
7.0
|
|
5.5
|
|
8.4
|
|
12.4
|
|
Tax
adjustments(2)
|
(0.7)
|
|
(3.4)
|
|
(1.4)
|
|
(5.3)
|
|
Impact of special
items on net income from continuing operations
|
$
(21.8)
|
|
$
(19.6)
|
|
$
(27.3)
|
|
$
(41.9)
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share impact
|
$
(0.24)
|
|
$
(0.21)
|
|
$
(0.30)
|
|
$
(0.46)
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute adjusted earnings per share:
|
|
|
|
|
|
|
|
|
Diluted
|
92.2
|
|
91.9
|
|
92.0
|
|
91.9
|
|
|
|
(1)
|
Special items
include charges related to specific strategic initiatives or
financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to
acquisitions or divestitures; employee separation costs resulting
from personnel reduction programs, plant realignment costs,
executive separation agreements; asset impairments; settlement
gains or losses and mark-to-market adjustments associated with
gains and losses on pension and other post-retirement benefit
plans; environmental remediation costs, fines, penalties and
related insurance recoveries related to facilities no longer owned
or closed in prior years; gains and losses on the divestiture of
operating businesses, gains and losses on facility or property
sales or disposals; results of litigation, fines or penalties,
where such litigation (or action relating to the fines or
penalties) arose prior to the commencement of the performance
period; one-time, non-recurring items; and the effect of changes in
accounting principles or other such laws or provisions affecting
reported results.
|
|
|
|
(2)
|
Tax adjustments include
the net tax impact from non-recurring income tax items, adjustments
to uncertain tax position reserves and the establishment, reversal
or changes to valuation allowances.
|
|
Attachment
4
|
|
Avient
Corporation
|
|
Condensed
Consolidated Balance Sheets
|
|
(In
millions)
|
|
|
(Unaudited)
June 30,
2024
|
|
December 31,
2023
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
489.4
|
|
$
545.8
|
|
Accounts receivable,
net
|
486.6
|
|
399.9
|
|
Inventories,
net
|
365.9
|
|
347.0
|
|
Other current
assets
|
117.2
|
|
114.9
|
|
Total current
assets
|
1,459.1
|
|
1,407.6
|
|
Property,
net
|
1,019.9
|
|
1,028.9
|
|
Goodwill
|
1,685.1
|
|
1,719.3
|
|
Intangible assets,
net
|
1,515.7
|
|
1,590.8
|
|
Other non-current
assets
|
228.0
|
|
221.9
|
|
Total
assets
|
$
5,907.8
|
|
$
5,968.5
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term and current
portion of long-term debt
|
$
657.7
|
|
$
9.5
|
|
Accounts
payable
|
435.2
|
|
432.3
|
|
Accrued expenses and
other current liabilities
|
405.3
|
|
331.8
|
|
Total current
liabilities
|
1,498.2
|
|
773.6
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
1,420.8
|
|
2,070.5
|
|
Pension and other
post-retirement benefits
|
63.3
|
|
67.2
|
|
Deferred income
taxes
|
276.3
|
|
281.6
|
|
Other non-current
liabilities
|
315.0
|
|
437.6
|
|
Total non-current
liabilities
|
2,075.4
|
|
2,856.9
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Avient shareholders'
equity
|
2,317.5
|
|
2,319.2
|
|
Noncontrolling
interest
|
16.7
|
|
18.8
|
|
Total
equity
|
2,334.2
|
|
2,338.0
|
|
Total liabilities
and equity
|
$
5,907.8
|
|
$
5,968.5
|
|
Attachment
5
|
|
Avient
Corporation
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
(In
millions)
|
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
Operating
Activities
|
|
|
|
|
Net income
|
$
83.5
|
|
$
42.7
|
|
Adjustments to
reconcile net income to net cash provided (used) by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
88.4
|
|
96.2
|
|
Accelerated
depreciation
|
0.8
|
|
1.9
|
|
Share-based
compensation expense
|
9.0
|
|
6.5
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Increase in accounts
receivable
|
(97.0)
|
|
(66.6)
|
|
(Increase) decrease in
inventories
|
(27.3)
|
|
14.0
|
|
Increase (decrease) in
accounts payable
|
11.9
|
|
(26.2)
|
|
Taxes paid on gain on
sale of business
|
—
|
|
(103.0)
|
|
Accrued expenses and
other assets and liabilities, net
|
(6.2)
|
|
9.8
|
|
Net cash provided
(used) by operating activities
|
63.1
|
|
(24.7)
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
(55.8)
|
|
(45.9)
|
|
Net proceeds from
divestiture
|
—
|
|
7.3
|
|
Proceeds from plant
closures
|
3.4
|
|
—
|
|
Other investing
activities
|
(2.1)
|
|
—
|
|
Net cash used by
investing activities
|
(54.5)
|
|
(38.6)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Cash dividends
paid
|
(47.0)
|
|
(45.0)
|
|
Repayment of long-term
debt
|
(4.5)
|
|
(1.0)
|
|
Other financing
activities
|
(3.3)
|
|
(2.3)
|
|
Net cash used by
financing activities
|
(54.8)
|
|
(48.3)
|
|
Effect of exchange rate
changes on cash
|
(10.2)
|
|
(0.8)
|
|
Decrease in cash and
cash equivalents
|
(56.4)
|
|
(112.4)
|
|
Cash and cash
equivalents at beginning of year
|
545.8
|
|
641.1
|
|
Cash and cash
equivalents at end of period
|
$
489.4
|
|
$
528.7
|
|
Attachment
6
|
|
Avient
Corporation
|
|
Business Segment
Operations (Unaudited)
|
|
(In
millions)
|
|
|
Operating income and
earnings before interest, taxes, depreciation and amortization
(EBITDA) at the segment level does not include:
special items as defined in Attachment 3; corporate general
and administration costs that are not allocated to segments;
intersegment
sales and profit eliminations; share-based compensation costs; and
certain other items that are not included in the measure of
segment
profit and loss that is reported to and reviewed by the chief
operating decision maker. These costs are included in
Corporate.
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Sales:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
542.0
|
|
$
524.5
|
|
$
1,057.3
|
|
$
1,061.5
|
|
Specialty
Engineered Materials
|
308.1
|
|
300.8
|
|
622.5
|
|
610.5
|
|
Corporate
|
(0.4)
|
|
(0.9)
|
|
(1.1)
|
|
(1.9)
|
|
Sales
|
$
849.7
|
|
$
824.4
|
|
$
1,678.7
|
|
$
1,670.1
|
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
184.5
|
|
$
164.1
|
|
$
355.7
|
|
$
326.1
|
|
Specialty
Engineered Materials
|
94.7
|
|
91.5
|
|
201.7
|
|
185.4
|
|
Corporate
|
(21.6)
|
|
(14.9)
|
|
(21.6)
|
|
(23.2)
|
|
Gross
margin
|
$
257.6
|
|
$
240.7
|
|
$
535.8
|
|
$
488.3
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
98.4
|
|
$
96.1
|
|
$
194.8
|
|
$
192.5
|
|
Specialty
Engineered Materials
|
51.9
|
|
51.8
|
|
105.5
|
|
102.6
|
|
Corporate
|
34.8
|
|
30.5
|
|
69.0
|
|
73.8
|
|
Selling and
administrative expense
|
$
185.1
|
|
$
178.4
|
|
$
369.3
|
|
$
368.9
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
86.1
|
|
$
68.0
|
|
$
160.9
|
|
$
133.6
|
|
Specialty
Engineered Materials
|
42.8
|
|
39.7
|
|
96.2
|
|
82.8
|
|
Corporate
|
(56.4)
|
|
(45.4)
|
|
(90.6)
|
|
(97.0)
|
|
Operating
income
|
$
72.5
|
|
$
62.3
|
|
$
166.5
|
|
$
119.4
|
|
|
|
|
|
|
|
|
|
Depreciation &
amortization:
|
|
|
|
|
|
|
|
|
Color, Additives and
Inks
|
$
21.8
|
|
$
25.7
|
|
$
43.7
|
|
$
51.5
|
|
Specialty Engineered
Materials
|
20.8
|
|
19.9
|
|
40.4
|
|
41.1
|
|
Corporate
|
2.3
|
|
2.0
|
|
5.1
|
|
5.5
|
|
Depreciation &
amortization
|
$
44.9
|
|
$
47.6
|
|
$
89.2
|
|
$
98.1
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and
amortization (EBITDA):
|
|
|
|
|
|
|
|
|
Color,
Additives and Inks
|
$
107.9
|
|
$
93.7
|
|
$
204.6
|
|
$
185.1
|
|
Specialty
Engineered Materials
|
63.6
|
|
59.6
|
|
136.6
|
|
123.9
|
|
Corporate
|
(54.1)
|
|
(43.4)
|
|
(85.5)
|
|
(91.5)
|
|
Other (expense) income,
net
|
(0.9)
|
|
(0.2)
|
|
(1.8)
|
|
0.5
|
|
EBITDA from continuing
operations
|
$
116.5
|
|
$
109.7
|
|
$
253.9
|
|
$
218.0
|
|
Special items, before
tax
|
28.1
|
|
21.7
|
|
34.3
|
|
49.0
|
|
Interest expense
included in special items
|
(1.0)
|
|
—
|
|
(1.0)
|
|
—
|
|
Depreciation &
amortization included in special items
|
(0.3)
|
|
(0.1)
|
|
(0.8)
|
|
(1.9)
|
|
Adjusted
EBITDA
|
$
143.3
|
|
$
131.3
|
|
$
286.4
|
|
$
265.1
|
|
Attachment
7
|
|
Avient
Corporation
|
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
|
(In millions, except
per share data)
|
|
|
Senior management uses
gross margin before special items and operating income before
special items to assess performance and
allocate resources because senior management believes that these
measures are useful in understanding current profitability
levels
and how it may serve as a basis for future performance. In
addition, operating income before the effect of special items is a
component
of Avient's annual incentive plans and is used in debt covenant
computations. Senior management believes these measures are
useful
to investors because they allow for comparison to Avient's
performance in prior periods without the effect of items that, by
their nature,
tend to obscure Avient's operating results due to the potential
variability across periods based on timing, frequency and
magnitude. Non-
GAAP financial measures have limitations as analytical tools and
should not be considered in isolation from, or solely as
alternatives to,
financial measures prepared in accordance with GAAP. Below is a
reconciliation of these non-GAAP financial measures to their
most
directly comparable financial measures calculated and presented in
accordance with GAAP. See Attachment 3 for a definition
and
summary of special items.
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
Reconciliation to
Consolidated Statements of Income
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Sales
|
$
849.7
|
|
$
824.4
|
|
$
1,678.7
|
|
$
1,670.1
|
|
|
|
|
|
|
|
|
|
Gross margin -
GAAP
|
257.6
|
|
240.7
|
|
535.8
|
|
488.3
|
|
Special items in gross
margin (Attachment 3)
|
21.6
|
|
14.2
|
|
22.0
|
|
22.2
|
|
Adjusted gross
margin
|
$
279.2
|
|
$
254.9
|
|
$
557.8
|
|
$
510.5
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin
as a percent of sales
|
32.9 %
|
|
30.9 %
|
|
33.2 %
|
|
30.6 %
|
|
|
|
|
|
|
|
|
|
Operating income -
GAAP
|
72.5
|
|
62.3
|
|
166.5
|
|
119.4
|
|
Special items in
operating income (Attachment 3)
|
27.2
|
|
21.8
|
|
33.4
|
|
48.9
|
|
Adjusted operating
income
|
$
99.7
|
|
$
84.1
|
|
$
199.9
|
|
$
168.3
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income as a percent of sales
|
11.7 %
|
|
10.2 %
|
|
11.9 %
|
|
10.1 %
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June
30,
|
|
Reconciliation to
EBITDA and Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income from
continuing operations – GAAP
|
$
33.8
|
|
$
22.3
|
|
$
83.5
|
|
$
43.6
|
|
Income tax
expense
|
11.2
|
|
10.4
|
|
28.0
|
|
18.1
|
|
Interest expense,
net
|
26.6
|
|
29.4
|
|
53.2
|
|
58.2
|
|
Depreciation &
amortization
|
44.9
|
|
47.6
|
|
89.2
|
|
98.1
|
|
EBITDA from continuing
operations
|
$
116.5
|
|
$
109.7
|
|
$
253.9
|
|
$
218.0
|
|
Special items, before
tax
|
28.1
|
|
21.7
|
|
34.3
|
|
49.0
|
|
Interest expense
included in special items
|
(1.0)
|
|
—
|
|
(1.0)
|
|
—
|
|
Depreciation &
amortization included in special items
|
(0.3)
|
|
(0.1)
|
|
(0.8)
|
|
(1.9)
|
|
Adjusted
EBITDA
|
$
143.3
|
|
$
131.3
|
|
$
286.4
|
|
$
265.1
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
percent of sales
|
16.9 %
|
|
15.9 %
|
|
17.1 %
|
|
15.9 %
|
|
Year
Ended
December 31,
2023
|
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient shareholders
|
$
75.8
|
|
$
0.83
|
|
Special items,
after-tax
|
79.3
|
|
0.86
|
|
Amortization expense,
after-tax
|
61.5
|
|
0.67
|
|
Adjusted net income /
EPS
|
$
216.6
|
|
$
2.36
|
|
|
|
Three Months
Ended
September 30,
2023
|
|
Reconciliation to
Condensed Consolidated Statements of Income
|
$
|
|
EPS
|
|
|
|
|
|
Net income from
continuing operations attributable to Avient
shareholders
|
$
5.1
|
|
$
0.06
|
|
Special items,
after-tax
|
32.0
|
|
0.35
|
|
Amortization expense,
after-tax
|
15.2
|
|
0.16
|
|
Adjusted net income /
EPS
|
$
52.3
|
|
$
0.57
|
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SOURCE Avient Corporation